/raid1/www/Hosts/bankrupt/TCRLA_Public/200508.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

                 L A T I N   A M E R I C A

          Friday, May 8, 2020, Vol. 21, No. 93

                           Headlines



A R G E N T I N A

EDENOR: Has ARS12.1BB Comprehensive Profit for Year Ended Dec. 31
[*] Fitch Takes Action on Argentine Banks on Operating Envi Drop


B R A Z I L

BRAZIL: Entrepreneurs' Confidence Sees Sharpest Drops in 5 Years
BRAZIL: Fitch Affirms 'BB-' LT IDR, Alters Outlook to Negative
EMBRAER SA: Turns to Arbitration With Boeing, Claims Damages
IPIRANGA PRODUTOS: Moody's Affirms Sr. Unsec. Debentures at Ba1
OI SA: Mulls Sale of Mobile Biz, Non-Core Assets

OI SA: Obtains Covenant Waivers from BNDES
OI SA: Posts R$9.095-Bil. Net Loss in 2019
TELEMAR NORTE: Bank Debt Trades at 97.7% Discount
TV GLOBO: Bolsonaro Casts Doubt on the Concession Renewal
ULTRAPAR PARTICIPACOES: Moody's Affirms Ba1 CFR, Outlook Now Neg.



C A Y M A N   I S L A N D S

SHELF DRILLING: Moody's Cuts CFR to Caa1, Outlook Negative


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: 65% of Locals Dissatisfied With Current Economy
DOMINICAN REPUBLIC: Business Climate Index Drops 21% Since 4Q 2019
DOMINICAN REPUBLIC: Workers Mark Their Day With A 'Pink Slip'


X X X X X X X X

CARIBBEAN: IMF Predicts 6.2% Contraction of Economies

                           - - - - -


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A R G E N T I N A
=================

EDENOR: Has ARS12.1BB Comprehensive Profit for Year Ended Dec. 31
-----------------------------------------------------------------
Empresa Distribuidora y Comercializadora Norte S.A. (edenor) filed
with the U.S. Securities and Exchange Commission its annual report
on Form 20-F, disclosing a comprehensive profit of
ARS12,129,009,000 on ARS89,943,794,000 of revenue for the year
ended Dec. 31, 2019, compared to a comprehensive profit of
ARS6,602,144,000 on ARS86,039,928,000 of revenue for the year ended
in 2018.

The audit report of Price Waterhouse & Co. S.R.L. states that the
Company's current economic and financial situation raises
substantial doubt about its ability to continue as a going concern.


The Company's balance sheet at Dec. 31, 2019, showed total assets
of ARS119,472,609,000, total liabilities of ARS60,321,760,000, and
ARS59,150,849,000 in total equity.

A copy of the Form 20-F is available at:

                       https://is.gd/1wr5Hj

Empresa Distribuidora y Comercializadora Norte S.A. (edenor), a
public service company, engages in the distribution and sale of
electricity in Argentina. It serves approximately 9 million people
in the northwestern part of the greater Buenos Aires metropolitan
area and the northern part of the City of Buenos Aires through the
concession of 4,637 square kilometers. The company was formerly
known as Empresa Distribuidora Norte Sociedad Anonima and changed
its name to Empresa Distribuidora y Comercializadora Norte S.A. in
June 1996. The company was founded in 1992 and is based in Buenos
Aires, Argentina. Empresa Distribuidora y Comercializadora Norte
S.A. is a subsidiary of Pampa Energia S.A.


[*] Fitch Takes Action on Argentine Banks on Operating Envi Drop
----------------------------------------------------------------
Fitch Ratings has reviewed the ratings of selected Argentine banks
following the adjustment of Fitch's operating environment
assessment and the recent sovereign rating actions taken by Fitch.

The affected entities are the following:

  -- Banco Santander Rio S.A. (Santander Argentina);

  -- Banco BBVA Argentina (BBVA Argentina);

  -- Banco Macro S.A. (Macro);

  -- Banco de la Ciudad de Buenos Aires (Banco Ciudad);

  -- Banco Hipotecario S.A. (Hipotecario).

These entities are among the largest banks in the country and are
rated above the sovereign's Long-Term Issuer Default Ratings. These
rating actions follow the recent downgrade of Argentina's Long-Term
IDR to 'C' from 'CC'. Despite the sovereign's imminent default on
its foreign currency debt, Fitch believes that these banks will
likely retain the capacity to service their obligations in foreign
currency as their intrinsic financial profiles should be sufficient
to continue servicing their obligations, even after a sovereign
default. More specifically, most of these banks' direct exposure to
the central government and state-owned enterprises is low while
liquidity as measured by liquid assets to deposits and short-term
funding provides a sufficient buffer to withstand a market closure
or near-term deposit outflows. Additionally, Fitch currently
believes that the sovereign is unlikely to impose restrictions on
the banks' ability to service their obligations following its own
default in the near term, though this view would be reassessed in
the event of the announcement of stricter capital controls.

While the ultimate economic and financial market implications of
the coronavirus pandemic are unclear, risks to Argentina's
operating environment are clearly skewed to the downside. This
underpins the agency's revision of its outlook on the operating
environment and asset quality scores to negative from stable for
these banks. Fitch's assessment of the operating environment has a
direct influence on these banks' ratings, and this is a high
influence factor for all banks in this review. The economic
disruption from a potential sovereign default in foreign currency
and the impact of the coronavirus crisis will adversely impact
these banks' already stressed financial performance. Market
volatility, a sustained contraction in real terms of loans, rising
nonperforming loans, higher credit costs and rising administrative
expenses due to high inflation will weigh on financial profiles.

KEY RATING DRIVERS

SANTANDER Argentina AND BBVA Argentina

The downgrade of the IDRs and Viability Ratings of Santander
Argentina and BBVA Argentina to 'CC' and 'cc', respectively, the
affirmation of their support ratings at '5' and the assignment of
the Support Rating Floor to No Floor reflects Fitch's opinion that
the likelihood of these entities receiving support from their
respective parents (Banco Santander, S.A. (SAN; A-/Negative
Outlook) and Banco Bilbao Vizcaya Argentaria, S.A. (BBVA; A-/
Rating Watch Negative)), has decreased given the higher risk of
government intervention in the financial system as the sovereign
nears default. Fitch has assigned a SRF of 'No Floor' as there is
no reasonable assumption that sovereign support will be forthcoming
given the sovereign's imminent default. These banks' ratings are
highly influenced by the operating environment.

MACRO

Macro's VR and IDRs are highly influenced by the operating
environment. These ratings have been downgraded by one notch to
'cc' and 'CC' due to the deterioration of the operating environment
and the likely impact on the bank's asset quality and profitability
due to the coronavirus pandemic. The rating of Macro's subordinated
debt is one notch below the bank's VR due to ratings compression at
the current low levels. The current rating was under criteria
observation to conform to the new base case of two notches. If
ratings compression is reversed in the future, the notching will be
increased to two notches.

HIPOTECARIO

Hipotecario's VR and IDRs of 'cc' and 'CC', respectively, are
highly influenced by the operating environment. The affirmed
ratings also consider the bank's large upcoming international
market debt maturity in November that will pressure its liquidity
position relative to other large commercial banks in Argentina with
moderate importance.

BANCO CIUDAD

Fitch believes Banco Ciudad's parent, the City of Buenos Aires
(CBA; CCC), demonstrates adequate capacity and propensity to
provide extraordinary support to the bank, should it be needed,
driving the affirmation of its ratings at 'CCC'. Argentina's
sovereign rating represents a constraint on the ratings of Banco
Ciudad's sole shareholder, the CBA. Equalization of the bank's IDRs
with those of its parent is supported by CBA's legal guarantee of
the bank's operations (including deposits, debt securities and
wholesale funding), its full ownership stake, and the bank's
integral role in government operations such as tax collection and
payment of city employee salaries. Banco Ciudad's VR was affirmed
at 'cc' and is highly influenced by the operating environment.
Fitch also revised the midpoint of Banco Ciudad's asset quality
score to 'ccc-' from 'ccc' given its comparably higher direct
exposure to the federal government.

RATING SENSITIVITIES

IDRS, VR AND SENIOR DEBT

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

  -- The IDRs and VRs of these banks would be pressured by a
deterioration in the local operating environment beyond current
expectations that leads to a significant deterioration in their
financial profiles;

  -- Any policy announcement s that would be detrimental to the
banks' ability to service their obligations, including a tightening
of capital controls, would be negative for creditworthiness.

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

  -- The IDRs and VRs would benefit from an upgrade of Argentina's
sovereign rating, which seems unlikely in the near future.

SUPPORT RATING AND SUPPORT RATING FLOOR

  -- Over the medium or long term, SRs and SRFs can be revised
upward if there are positive changes on Fitch's support factors
assessment.

SUBORDINATED DEBT

Ratings on subordinated debt are primarily sensitive to any change
in Macro's VR.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Financial Institutions
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING

The principal sources of information used in the analysis are
described in the Applicable Criteria.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

Ratings of Banco de la Ciudad de Buenos Aires are driven by the
support of the City of Buenos Aires.

ESG CONSIDERATIONS

Banco de la Ciudad de Buenos Aires: 4; Governance Structure: 4

Banco de la Ciudad de Buenos Aires has an ESG Relevance Score of 4
for Governance Structure as it is owned by a sub-national
government, therefore limiting the board's independence and
effectiveness as it can be potentially affected by the government's
plans and incentives. This has a negative impact on the credit
profile, and is relevant to the ratings in conjunction with other
factors.

Except for the matters discussed, the highest level of ESG credit
relevance, if present, is a score of 3 - ESG issues are credit
neutral or have only a minimal credit impact on the entity(ies),
either due to their nature or the way in which they are being
managed by the entity(ies).

Banco de la Ciudad de Buenos Aires

  - LT IDR CCC; Affirmed

  - ST IDR C; Affirmed

  - LC LT IDR CCC; Affirmed

  - LC ST IDR C; Affirmed

  - Viability cc; Affirmed

  - Support 5; Affirmed

Banco Santander Rio S.A.

  - LT IDR CC; Downgrade

  - ST IDR C; Affirmed

  - LC LT IDR CC; Downgrade

  - LC ST IDR C; Affirmed

  - Viability cc; Downgrade

  - Support 5; Affirmed

  - Support Floor NF; New Rating   

Banco Macro S.A.

  - LT IDR CC; Downgrade

  - ST IDR C; Affirmed

  - LC LT IDR CC; Downgrade

  - LC ST IDR C; Affirmed

  - Viability cc; Downgrade

  - Support 5; Affirmed

  - Support Floor NF; Affirmed

  - Senior unsecured; LT CC; Downgrade

  - Subordinated; LT C; Downgrade

Banco BBVA Argentina S.A.

  - LT IDR CC; Downgrade

  - ST IDR C; Affirmed

  - LC LT IDR CC; Downgrade

  - LC ST IDR C; Affirmed

  - Viability cc; Downgrade

  - Support 5; Affirmed

  - Support Floor NF; New Rating   

Banco Hipotecario S.A.

  - LT IDR CC; Affirmed

  - ST IDR C; Affirmed

  - LC LT IDR CC; Affirmed

  - LC ST IDR C; Affirmed

  - Viability cc; Affirmed

  - Support 5; Affirmed

  - Support Floor NF; Affirmed

  - Senior unsecured; LT CC; Affirmed



===========
B R A Z I L
===========

BRAZIL: Entrepreneurs' Confidence Sees Sharpest Drops in 5 Years
----------------------------------------------------------------
Lachlan Williams at Rio Times Online reports that the Trade
Entrepreneur Confidence Index (ICEC) dropped 5.3 percent between
March and April.  It is the second successive decline and the
largest percentage drop since April 2015, at 6.4 percent, according
to Rio Times Online. The data was released April 29 by the National
Confederation of Trade in Goods, Services and Tourism (CNC), the
report notes.

The drop compared to April 2019 was 3.6 percent.  According to the
CNC, the optimism of commercial entrepreneurs was strongly
influenced by the economic crisis caused by the novel coronavirus
pandemic (covid-19), the report relays.

As reported in the Troubled Company Reporter-Latin America on April
10, 2020, S&P Global Ratings revised on April 6, 2020, its outlook
on its long-term ratings on Brazil to stable from positive.  At the
same time, S&P affirmed its 'BB-/B' long- and short-term foreign
and local currency sovereign credit ratings. S&P also affirmed its
'brAAA' national scale rating and its transfer and convertibility
assessment of 'BB+'. The outlook on the national scale rating
remains stable.

BRAZIL: Fitch Affirms 'BB-' LT IDR, Alters Outlook to Negative
--------------------------------------------------------------
Fitch Ratings has affirmed Brazil's Long-Term Foreign Currency
Issuer Default Rating at 'BB-' and has revised the Rating Outlook
to Negative.

KEY RATING DRIVERS

The Outlook revision to Negative reflects the deterioration of
Brazil's economic and fiscal outlook, and downside risks to both
given renewed political uncertainty, including tensions between the
executive and congress, and uncertainty over the duration and
intensity of the coronavirus pandemic. These factors could hinder
the government's capacity for fiscal adjustment and implementation
of economic reforms after the coronavirus pandemic and a sizeable
emergency policy response. Brazil entered the current period of
stress with a relatively weak fiscal balance sheet and low economic
growth. The pandemic and the related recession will further
increase public indebtedness, eroding fiscal flexibility and
increasing vulnerability to shocks. Conversely, Brazil's ratings
are supported by its large and diverse economy, high per capita
income relative to peers and a capacity to absorb external shocks
underpinned by its flexible exchange rate, moderate external
imbalances, robust international reserves and deep domestic
government debt market.

Brazil's economy is expected to contract by 4% in 2020 with risks
biased to the downside. Average growth of -0.6% over the last five
years reflects a slow recovery after a long and deep recession in
2015/2016. The economic outlook has deteriorated sharply due to
rising external challenges including the global recession, China's
significant slowdown (a key trading partner), lower commodity
prices and tightening external financing conditions. In addition,
the coronavirus pandemic and the concomitant social distancing
measures will lead to a sharp contraction in domestic economic
activity and higher unemployment rates.

Fitch forecasts the economy to grow by 3% in 2021 as it recovers
from the pandemic and responds to the comprehensive set of fiscal,
quasi-fiscal and monetary measures adopted by the authorities to
prevent a deeper economic collapse. In Fitch's view, a faster
recovery in 2021 may be hindered by the lingering fiscal, political
and reform uncertainties in the context of increased public
indebtedness.

Brazil's public finances remain structurally weak and will suffer
further in the current crisis. Fitch forecasts the general
government deficit to reach 13% of GDP (compared to the current
'BB' median of 6.8%) due to the economic recession, lower oil
prices and a sizeable fiscal support package. The package includes
measures to protect vulnerable populations, boost healthcare
spending, preserve jobs and provide aid to regional governments.
Fitch forecasts the general government deficit to decline to 6.5%
of GDP in 2021 as these measures are unwound, the economic recovery
takes hold, some concessions/asset sales resume and expenditures
are controlled by the adherence to the spending cap. However,
uncertainty around the economic (and tax revenue) recovery pose
risks to the 2021 deficit projections.

Fitch believes that given the high uncertainty of the pandemic's
duration, additional fiscal measures (including extension of
time-bound tax deferment and spending measures) cannot be ruled
out. The congress has approved a public calamity law that frees the
government from meeting its original 2020 primary deficit target.
The government will also channel the COVID-19 related fiscal
measures in a separate "war budget" to be approved by congress, to
avoid them becoming permanent. While the authorities are strongly
committed to meeting the spending cap (an important fiscal anchor)
in 2021, challenges could arise with new spending initiatives to
stimulate the economy post-crisis or an extension of the existing
measures, especially in the context of limited flexibility to cut
discretionary spending.

Brazil's general government debt burden is already high, having
fallen slightly to 75.8% of GDP in 2019 from 76.6% in 2018. Fitch
forecasts it to reach 89.4% of GDP in 2020 (compared to the current
'BB' median of 58.4%) and continue to rise gradually in the absence
of faster growth, fiscal consolidation, or sizeable non-recurrent
revenues from concessions/privatizations.

The current low domestic interest rate environment, which reduces
the government's borrowing costs, and the low share of foreign
currency debt, are near-term mitigants to debt sustainability risks
associated with the high and growing public debt burden. Moreover,
over the coming years, the government has scope to limit the pace
of public debt increase through one-off measures, including the
prepayments of BNDES loans to the Treasury (suspended for 2020).
Similarly, sale of international reserves can reduce the central
bank's outstanding repos (backed by Treasury securities) at 16.3%
of GDP in end-March 2020 that are included in gross general
government debt. While the increase in Brazil's fiscal deficits
will put pressure on the domestic markets, the Treasury's cash
buffers and proactive liability management efforts should help it
navigate this period of higher investor risk aversion. Brazil's
deep domestic capital markets and access to international capital
markets and the multilaterals underpin financing flexibility.

The political environment is marked by a volatile relationship
between the executive and congress, which has been further
contaminated in recent weeks by the resignation of an important
justice minister, who led the Lava Jato corruption cases, and his
accusations of President Bolsonaro's political interference in the
federal police. While the administration and congress worked
together to pass an important pension reform in 2019, and the
recent emergency measures to support the economy, periodic
frictions have reduced the predictability of economic and political
outcomes and cloud post-pandemic reform prospects.

The administration had submitted a series of reforms (including
constitutional amendments) to congress last year to strengthen the
outlook for public finances in addition to the central bank
autonomy bill. Congress also discussed tax reform to simplify the
complex system. The reform agenda has been de-prioritized in light
of the pandemic, but its resumption remains uncertain given the
October municipal elections, the administration's lack of a stable
coalition in congress and the current polarized political
environment.

Macroeconomic stability is supported by Brazil's falling inflation
rate and a moderate current account deficit (CAD), forecast to
remain below 3% of GDP in 2020. While forecast to decline, foreign
direct investment will cover the CAD in 2020. The central bank has
cut interest rates to historically low levels of 3.75%, and Fitch
expects additional cuts in the coming months. To provide liquidity
and improve the functioning of the FX market amid higher risk
aversion and capital outflows, the central bank has been
intervening in the spot and derivatives market. Despite the spot
sales of USD14.48 billion (January through April 24th), the
international reserves remain strong (with projected coverage of
current external payments of around 13 months by end-2020),
providing a strong capacity to cope with external shocks. The
central bank also has access to a USD60 billion U.S. Fed swap
line.

The banking system's adequate capitalization, coupled with a series
of liquidity measures by the central bank, should help it cope with
the pressures arising from the current crisis. The central bank
could also gain the power to buy private sector and Treasury
securities until year-end as part of the "war budget" proposal,
expanding its tool kit to deal with the crisis.

ESG - Governance: Brazil has an ESG Relevance Score of 5 for both
Political Stability and Rights and for the Rule of Law,
Institutional and Regulatory Quality and Control of Corruption, as
is the case for all sovereigns. Theses scores reflect the high
weight that the World Bank Governance Indicators have in Fitch's
proprietary Sovereign Rating Model. Brazil has a medium WBGI
percentile ranking of 42.2%, reflecting a recent track record of
peaceful political transitions even amid heightened political
uncertainty, a moderate level of rights for participation in the
political process, moderate institutional capacity, established
rule of law and a high level of corruption.

SOVEREIGN RATING MODEL (SRM) AND QUALITATIVE OVERLAY (QO)

Fitch's proprietary SRM assigns Brazil a score equivalent to a
rating of 'BBB-' on the Long-Term Foreign-Currency (LT FC) IDR
scale.

Fitch's sovereign rating committee adjusted the output from the SRM
to arrive at the final LT FC IDR by applying its QO, relative to
rated peers, as follows:

  -- Macro: -1 notch, to reflect weak growth prospects and
potential, largely held back by a low investment rate and
structural impediments such as a difficult business environment,
which make it more challenging to consolidate the public finances
and address social pressures.

  -- Public Finances: -1 notch, to reflect Brazil's general
government burden is approaching very high levels. The SRM is
estimated on the basis of linear approach to government debt/GDP
and does not fully capture the risk as high debt levels. Fiscal
flexibility is hampered by the highly rigid spending profile and a
heavy tax burden that makes adjustment to economic shocks
difficult.

  -- Structural Features: -1 notch, to reflect Brazil's fragmented
congress, periodic frictions between the executive and legislative
branches and corruption-related issues that have hampered timely
progress on reforms to improve the medium-term trajectory of public
finances. In addition, high income inequality adds to social
pressures.

Fitch's SRM is the agency's proprietary multiple regression rating
model that employs 18 variables based on three-year centered
averages, including one year of forecasts, to produce a score
equivalent to a LT FC IDR. Fitch's QO is a forward-looking
qualitative framework designed to allow for adjustment to the SRM
output to assign the final rating, reflecting factors within its
criteria that are not fully quantifiable and/or not fully reflected
in the SRM.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

  -- A weakening of the fiscal framework and/or rapid increases in
the public debt burden that undermine confidence in the medium-term
public debt sustainability;

  -- A severe deterioration in the sovereign's domestic and/or
external market borrowing conditions; for example, due to a severe
political shock or economic policy mismanagement;

  -- Sharp erosion of international reserve buffer and the broader
external balance sheet.

Factors that could, individually or collectively, lead to positive
rating action/upgrade are:

  -- Increased confidence in the fiscal consolidation path that
improves prospects for government debt stabilization and eventual
debt reduction, for example through fiscal consolidation, higher
growth and progress on reforms;

  -- An improvement in the growth outlook without increasing
macroeconomic imbalances.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Public Finance issuers have a
best-case rating upgrade scenario (defined as the 99th percentile
of rating transitions, measured in a positive direction) of three
notches over a three-year rating horizon; and a worst-case rating
downgrade scenario (defined as the 99th percentile of rating
transitions, measured in a negative direction) of three notches
over three years. The complete span of best- and worst-case
scenario credit ratings for all rating categories ranges from 'AAA'
to 'D'. Best- and worst-case scenario credit ratings are based on
historical performance.

KEY ASSUMPTIONS

Fitch assumes that the global economy performs broadly in line with
the Global Economic Outlook published on April 22, while
acknowledging that there is a higher than usual level of
uncertainty around its macro-economic forecasts.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING

The principal sources of information used in the analysis are
described in the Applicable Criteria.

ESG CONSIDERATIONS

Brazil has an ESG Relevance Score of 5 for Political Stability and
Rights as World Bank Governance Indicators have the highest weight
in Fitch's SRM and a highly fragmented congress has made timely
passage of corrective policy adjustments difficult; this is highly
relevant to the rating and a key driver with a high weight.

Brazil has an ESG Relevance Score of 5 for Rule of Law,
Institutional & Regulatory Quality and Control of Corruption as
World Bank Governance Indicators have the highest weight in Fitch's
SRM and the corruption related issues exposed in recent years have
severely hit political dynamics and economic activity; this is
highly relevant to the rating and a key rating driver with a high
weight.

Brazil has an ESG Relevance Score of 4 for Human Rights and
Political Freedoms as strong social stability and voice and
accountability are reflected in the World Bank Governance
Indicators that have the highest weight in the SRM. They are
relevant to the rating and a rating driver.

Brazil has an ESG Relevance Score of 4 for Creditor Rights as
willingness to service and repay debt is relevant to the rating and
is a rating driver for the Brazil, as for all sovereigns.

Except for the matters discussed, the highest level of ESG credit
relevance, if present, is a score of 3. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or to the way in which they are being
managed by the entity.

EMBRAER SA: Turns to Arbitration With Boeing, Claims Damages
------------------------------------------------------------
Rio Times Online reports that following the failed partnership with
American aircraft giant Boeing in the commercial jet unit, an
agreement that was terminated, Brazilian aircraft manufacturer
Embraer is pursuing a pragmatic strategy to succeed on its own, in
a market severely impacted by the novel coronavirus pandemic.

Boeing, which had signed a partnership contract with the Brazilian
regional jet manufacturer, rescinded the agreement over the
weekend, notes the report.

Embraer will also claim damages from Boeing for what, in its
opinion, is a willful breach of contract: it has just announced
that it has initiated an arbitration proceeding against its
long-standing partner in other ventures, according to Rio Times
Online.

The largest Brazilian technology exporter is renegotiating
contracts with suppliers, the report relays.

                    About Embraer SA

Headquartered in Brazil, Empresa Brasileira de Aeronautica SA
(Embraer) -- http://www.embraer.com-- is a company engaged in the
manufacture of aircrafts for commercial aviation, executive jet
and defense and government purposes.  The Company has developed a
line of executive jets based on one of its regional jet platforms
and launched executive jets in the entry-level, light, ultra-large
and mid-light/mid-size categories, the Phenom 100/300 family, the
Lineage 1000 and the Legacy 450/500 family, respectively.  The
Company supplies defense aircraft for the Brazilian Air Force
based on number of aircraft sold, and sells aircraft to military
forces in Europe, Asia and Latin America.  In July 2008, the
Company acquired a 40% interest owned by Liebherr Aerospace SAS in
ELEB?Equipamentos Ltda (ELEB).  ELEB is an aerospace system and
component manufacturer, and its products include landing gear
systems, hydraulics and electro-mechanical sub-assemblies, such as
actuators, valves, accumulators and pylons.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on May
6, 2020, Moody's Investors Service downgraded its ratings for
Embraer S.A. and its subsidiaries (Embraer Overseas Limited and
Embraer Netherlands Finance BV; collectively "Embraer"), including
the company's corporate family rating and senior unsecured debt
ratings (each to Ba2 from Ba1). The ratings outlook is negative.

On May 5, 2020, Fitch Ratings has downgraded Embraer S.A.'s
Long-Term Foreign- and Local-Currency Issuer Default Rating to
'BB+' from 'BBB-', and has affirmed Embraer's National Scale Rating
at 'AAA(bra)'. The Rating
Watch Negative has been removed. The Rating Outlook for the IDRs is
Negative.

On April 16, 2020, Egan-Jones Ratings Company, on March 30, 2020,
downgraded the foreign currency and local currency senior unsecured
ratings on debt issued by Embraer SA to BB from BBB-.

The TCR-LA reported on Feb. 2, 2010, Bloomberg News said that
Embraer expects its share of the global market for regional jets
seating as many as 120 passengers to fall to 40% from 54% within
five years.  According
to a TCRLA report on Feb. 23, 2009, citing Bloomberg News, Embraer
would lay off around 4,200 workers, which represents 20% of its
21,362 employees, and reduced its 2009 revenue forecast by 13% due
to the global recession.

IPIRANGA PRODUTOS: Moody's Affirms Sr. Unsec. Debentures at Ba1
---------------------------------------------------------------
Moody's America Latina has affirmed Ultrapar Participacoes S.A.'s
Aaa.br national scale rating Corporate Family Rating. The ratings
on the Ba1/Aaa.br senior unsecured debentures issued by Ipiranga
Produtos de Petroleo S.A. and guaranteed by Ultrapar were also
affirmed. In a related action, Moody's Investors Service affirmed
Ultrapar's Ba1 Corporate Family Rating and the Ba1 ratings of the
backed senior unsecured notes issued by Ultrapar International S.A,
guaranteed by Ultrapar and by Ipiranga Produtos de Petroleo S.A.
The outlook was changed to negative from stable.

Ratings affirmed:

Issuer: Ultrapar Participacoes S.A.

  - Corporate Family Rating (national scale rating), Affirmed
Aaa.br

Issuer: Ipiranga Produtos de Petroleo S.A.

  - BRL 730.4 million senior unsecured debentures due 2022,
Affirmed Ba1/Aaa.br

  - BRL 660.1 million senior unsecured debentures due 2022,
Affirmed Ba1/Aaa.br

  - BRL 660 million senior unsecured debentures due 2023, Affirmed
Ba1/Aaa.br

  - BRL 213.7 million senior unsecured debentures due 2024,
Affirmed Ba1/Aaa.br

  - BRL 352.4 million senior unsecured debentures due 2024,
Affirmed Ba1/Aaa.br

  - BRL 240 million senior unsecured debentures due 2025, Affirmed
Ba1/Aaa.br

The outlook changed to negative from stable

RATINGS RATIONALE

The rapid and widening spread of the coronavirus outbreak,
deteriorating global economic outlook, falling oil prices, and
asset price declines are creating a severe and extensive credit
shock across many sectors, regions and markets. The combined credit
effects of these developments are unprecedented. The fuel
distribution sector in Brazil has been significantly affected by
corona virus related shut-downs and changes in daily habits leading
to a sharp reduction in fuel demand. More specifically, the lower
sales volumes will lead to lower operating profit and a drop in
EBITDA, therefore increasing gross leverage in 2020 from an already
high level of 4.7x in 2018 and 2019. Moody's regards the
coronavirus outbreak as a social risk under its ESG framework,
given the substantial implications for public health and safety.

The change in outlook to negative was prompted by its expectation
that leverage will remain high with lower EBITDA generation and
lower operating profit margins leading to pressured metrics in the
next 12 months to 18 months.

Ultrapar's Ba1 ratings reflect the company's solid business model,
stable cash flow and leading positions in different segments in
Brazil: fuel and liquefied petroleum gas distribution, specialty
chemicals, and storage of liquid bulk. Liquidity is adequate. In
December 2019, Ultrapar had BRL 5.7 billion in cash, BRL 1.1
billion in short-term debt and a debt profile with an average
maturity of five years. Early in March, because of coronavirus
uncertainties, Ultrapar raised an additional BRL1.5 billion in bank
lines to reinforce its cash balance and reduced programmed capex by
30% to BRL 1.2 billion in 2020 to preserve liquidity.

Ultrapar ratings are primarily constrained by the current high
leverage, reduced operating margin, dependence on a few key
suppliers for raw materials and the cyclical nature of its chemical
business leading to high EBITDA volatility for the segment. In
2019, gross leverage was 4.7x, the same level as in 2018, and
Moody's Adjusted EBITDA declined to BRL3.4 billion, 17.6% lower
than the 5 years average of BRL4.1 billion. Operating profit margin
reached 2.0% last year compared to an average of 3.5% in the last
five years. As such, Ultrapar enters the volatility period Moody's
expected in the next few months with operating margins and EBITDA
levels below what it anticipates for the company in a normalized
level. In the next couple of years, Moody's expects operating
margins to approach 3.0% and EBITDA to reach BRL3.8 billion in 2021
and BRL4.4 billion in 2022.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

The ratings are unlikely to be upgraded in the short term. Positive
rating pressure will not arise until the coronavirus outbreak is
brought under control and fuel demand is normalized. Ultrapar would
need to show an improvement in operating margins, reduction in
gross leverage, and the maintenance of a strong liquidity profile.

Negative actions on Brazil's sovereign rating could trigger a
downgrade of Ultrapar's ratings. Quantitatively, a downgrade could
happen with a deterioration in the group's liquidity position, the
maintenance of: gross leverage, as measured by debt/EBITDA, above
4.0x without prospects of deleveraging; interest coverage, as
measured by EBIT/interest expense, below 2.5x and; operating
margins below 3.0%.

The principal methodology used in these ratings was Retail Industry
published in May 2018.

Ultrapar Participacoes S.A., headquartered in Sao Paulo, Brazil, is
engaged in fuel (Ipiranga) and liquefied petroleum gas (Ultragaz)
distribution, specialty chemicals production (Oxiteno), storage for
liquid bulk (Ultracargo) and retail drugstore (Extrafarma). In
2019, Ultrapar reported consolidated net revenues of BRL 89.3
billion (about $22.6 billion). Ipiranga is the group's largest
business segment, representing 84% of consolidated net revenues and
86% of EBITDA in the same period.

OI SA: Mulls Sale of Mobile Biz, Non-Core Assets
------------------------------------------------
Oi S.A. disclosed in a regulatory filing with the U.S. Securities
and Exchange Commission that it intends to seek to amend its
bankruptcy-exit plan to facilitate asset sales contemplated by its
strategic plan, including the potential sale of its mobile business
and the proposed sales of other non-core assets.

According to the Company, "We continue to discuss the terms of the
proposed amendment with various constituencies of our company and
can provide no assurances with respect to the specific terms of the
proposed amendment that will be presented to" the 7th Commercial
Court of the Judicial District of the State Capital of Rio de
Janeiro, Brazil.

In June 2016, after considering the challenges arising from its
economic and financial situation in connection with the maturity
schedule of its financial debts, the threats to its cash flows
represented by imminent attachments or freezing of assets in
judicial lawsuits, and the urgent need to adopt measures that
protect the company, Oi concluded that filing of a request for
judicial reorganization (recuperacao judicial) in Brazil would be
the most appropriate course of action (1) to preserve the
continuity of its offering of quality services to customers, within
the rules and commitments undertaken with ANATEL, (2) to preserve
the value of the company, (3) to maintain the continuity of its
operations and corporate activities in an organized manner that
protects the interests of the company, customers, shareholders and
other stakeholders, and (4) to protect its cash and cash
equivalents.

On June 20, 2016, Oi, together with the other RJ Debtors, filed a
joint voluntary petition for judicial reorganization pursuant to
the Brazilian Bankruptcy Law with the RJ Court, pursuant to an
urgent measure approved by the Company's board of directors.

On December 19 and 20, 2017, a General Creditors' Meeting was held
to consider approval of the RJ Plan. This GCM concluded on December
20, 2017 following the approval of the RJ Plan reflecting
amendments to the RJ Plan presented at this GCM as negotiated
during the course of this GCM.

On January 8, 2018, the RJ Court entered the Brazilian Confirmation
Order, ratifying and confirming the RJ Plan, according to its
terms, but modifying certain provisions of the RJ Plan. The
Brazilian Confirmation Order was published in the Official Gazette
of the State of Rio de Janeiro on February 5, 2018, the Brazilian
Confirmation Date.

The Brazilian Confirmation Order, according to its terms, is
binding on all parties as long as its effects are not stayed. By
operation of the RJ Plan and the Brazilian Confirmation Order, the
unsecured claims against the RJ Debtors have been novated and
discharged under Brazilian law and holders of such claims have
received the recoveries set forth in the RJ Plan in exchange for
their claims in accordance with the terms and conditions of the RJ
Plan.

During 2018, the restructuring of the RJ Debtors' financial debt in
accordance with the applicable terms and conditions set forth in
the RJ Plan was concluded.

In January 2019, Oi completed a preemptive offering of Common
Shares as contemplated by Section 6 of the RJ Plan under which it
issued and sold 3,225,806,451 Common Shares for an aggregate
purchase price of R$4.000 billion.

The Brazilian Bankruptcy Law provides that the RJ Proceedings and
the judicial supervision of the RJ Debtors may be terminated on the
second anniversary of the Brazilian Confirmation Date if the RJ
Court determines that all obligations provided for in the RJ Plan
have been satisfied based on the analysis of compliance with the RJ
Plan.

On December 6, 2019, Oi filed a petition with the RJ Court
requesting that the judicial supervision of the RJ Debtors not be
terminated on February 5, 2020, the second anniversary of the
Brazilian Confirmation Date, in order to allow the Company to
continue to execute the RJ Plan and remain focused on its strategic
transformation. Notwithstanding the conclusion of the restructuring
of the RJ Debtors' financial debt in accordance with the applicable
terms and conditions set forth in the RJ Plan, Oi presented to the
RJ Court circumstances related to the complexity inherent to the
magnitude of the RJ Proceedings and the ongoing reforms in the
legal-regulatory environment, which Oi believes require additional
measures yet to be implemented under the RJ Proceedings.

On February 27, 2020, Oi filed a petition with the RJ Court
requesting that it be permitted to submit to creditors for their
consideration and deliberation at a new general creditors' meeting
a proposed amendment to the RJ Plan designed to achieve greater
operational and financial flexibility for the Company to continue
with investments and the fulfillment of its strategic plan. At the
new general creditors' meeting, only creditors of the RJ Debtors
that held credits and had voting rights at the time of the original
GCM and who continued to hold an interest in the debt obligations
or equity securities of the RJ Debtors on February 27, 2020 will be
entitled to vote.

On March 6, 2020, the RJ Court issued a decision granting Oi's
request to hold a new general creditors' meeting to deliberate on a
proposed amendment to the RJ Plan. The RJ Court required that:

     * the RJ Debtors must submit the proposed amendment to the RJ
Plan to the RJ Court on or prior to September 8, 2020; and

     * the new general creditors' meeting organized by Escritorio
de Advocacia Arnoldo Wald e Advogados Associados, the judicial
administrator of the RJ Debtors, or the Judicial Administrator,
must take place within 60 days from the date of submission of the
proposed amendment to the RJ Plan to the RJ Court by the RJ
Debtors.

On June 20, 2016, Oi, together with the other affiliates, filed a
joint voluntary petition for judicial reorganization (recuperacao
judicial) pursuant to the Brazilian Bankruptcy Law.  On January 8,
2018, the RJ Court entered the Brazilian Confirmation Order,
ratifying and confirming the Debtors' bankruptcy-exit plan. The
Brazilian Confirmation Order was published in the Official Gazette
of the State of Rio de Janeiro on February 5, 2018, the Brazilian
Confirmation Date.

OI SA: Obtains Covenant Waivers from BNDES
------------------------------------------
Oi S.A. said in a regulatory filing with the U.S. Securities and
Exchange Commission that as a result of the depreciation of the
Brazilian real subsequent to December 31, 2019, partially due to
the COVID-19 pandemic and the public health measures adopted to
combat the pandemic in Brazil and internationally, and the related
effects on Oi's U.S. dollar-denominated indebtedness and interest
expenses, the Company believed that it was probable that as of
March 31, 2020, it would not be in compliance with more than one of
the financial ratios in its credit facilities with The Banco
Nacional de Desenvolvimento Economico e Social (Development Bank of
Brazil) or BNDES.

In anticipation of these ratio breaches, on March 30, 2020, Oi
obtained a waiver from BNDES.

Oi said, "Our company has been successfully discharging the
obligations set forth in the [Brazilian proceedings for judicial
reorganization (recuperacao judicial)] and even though there are no
indications in this regard, we emphasize that these conditions and
circumstances indicate, by their own nature, uncertainties that may
affect the success of the RJ Proceedings and possibly cast doubts
as to our ability to continue as a going concern.

"As at December 31, 2019 and after the implementation of the RJ
Plan, total shareholders' equity was R$17,797 million, loss for the
year then ended was R$9,095 million, and working capital
(consisting of current assets less current liabilities) totaled
R$6,157 million. As at December 31, 2018 and after the recognition
of the effects of the [judicial reorganization plan in the RJ
proceedings], total shareholders' equity was R$22,896 million,
profit for the year then ended was R$24,616 million, and working
capital totaled R$10,624 million.

"Since December 2019, a novel strain of coronavirus (SARS-CoV-2)
has spread throughout the world. On January 31, 2020, the World
Health Organization announced that COVID-19 was a global health
emergency and on March 3, 2020, the World Health Organization
categorized COVID-19 as a pandemic.

"As of the date of this annual report, we have not been able to
quantify any material impacts related to COVID-19 and it is too
soon to accurately determine the extent of its medium- and
long-term impacts on the global and Brazilian economic scenarios.
However, as it is not possible yet to predict the duration and
effects of this crisis, there is a risk of material impacts on our
operations and sales, particularly our fiber-to-the-home network
expansion.

"Additionally, our debt instruments with BNDES contain financial
covenants that require Oi to maintain five specified financial
ratios, measured on a quarterly basis. Under these debt
instruments, BNDES has the right to accelerate the debt if, at the
date the financial covenants are tested, we are not in compliance
with any two of these ratios. At December 31, 2019, we were in
compliance with these financial covenants."

As of December 31, 2019, Oi had total outstanding borrowings and
financing of R$31.642 billion, excluding the fair value adjustment
to its borrowings and financing and debt issuance costs, and
R$18.227 billion, after giving effect to the fair value adjustment
and debt issuance costs.

In addition, in February 2020, an investor subscribed to an
aggregate amount of R$2.500 billion of Oi Mobile's non-convertible
debentures.

On June 20, 2016, Oi, together with the other affiliates, filed a
joint voluntary petition for judicial reorganization (recuperacao
judicial) pursuant to the Brazilian Bankruptcy Law.  On January 8,
2018, the RJ Court entered the Brazilian Confirmation Order,
ratifying and confirming the Debtors' bankruptcy-exit plan. The
Brazilian Confirmation Order was published in the Official Gazette
of the State of Rio de Janeiro on February 5, 2018, the Brazilian
Confirmation Date.

OI SA: Posts R$9.095-Bil. Net Loss in 2019
------------------------------------------
Oi S.A. disclosed in a regulatory filing with the U.S. Securities
and Exchange Commission that it posted a net loss of R$9.095
billion for the year ended December 31, 2019.

The bankrupt telecom operator posted net income of R$24.616 billion
(reais) in 2018 and a net loss of R$6.656 billion in 2017.

Net operating revenue was R$20.136 billion in 2019, compared to
R$22.060 billion for 2018 and R$23.790 billion for 2017.

Oi's total assets rose to R$71.892 billion at Dec. 31, 2019, from
R$65.438 billion at Dec. 31, 2018, and R$68.639 billion at Dec. 31,
2017.

The Company's total liabilities is down to R$54.095 billion at Dec.
31, 2019, down from the 2017 level of R$82.152 billion.
Liabilities totaled R$42.542 billion at Dec. 31, 2018.

A full-text copy of the Annual Report on Form 20-F is available at
https://is.gd/eeUuMC

On June 20, 2016, Oi, together with the other affiliates, filed a
joint voluntary petition for judicial reorganization (recuperacao
judicial) pursuant to the Brazilian Bankruptcy Law.  On January 8,
2018, the RJ Court entered the Brazilian Confirmation Order,
ratifying and confirming the Debtors' bankruptcy-exit plan. The
Brazilian Confirmation Order was published in the Official Gazette
of the State of Rio de Janeiro on February 5, 2018, the Brazilian
Confirmation Date.

TELEMAR NORTE: Bank Debt Trades at 97.7% Discount
-------------------------------------------------
Participations in a syndicated loan under which Telemar Norte Leste
SA is a borrower were trading in the secondary market around 2.3
cents-on-the-dollar during the week ended Fri., May 1, 2020,
according to Bloomberg's Evaluated Pricing service data.

The $600 million facility is a term loan.  About $33 million of the
loan remains outstanding.  The loan is scheduled to mature on June
30, 2025.

The Company's country of domicile is Brazil.




TV GLOBO: Bolsonaro Casts Doubt on the Concession Renewal
---------------------------------------------------------
Lachlan Williams at Rio Times Online reports that President Jair
Bolsonaro, when leaving the Alvorada Palace, April 30th, again
threatened not to renew TV Globo's concession in 2022.

The President criticized the country's and Latin America's largest
broadcaster, which he regards as an adversary, according to Rio
Times Online.

The President complained about the way the network reported his
speech on April 28, when challenged by the record of 479 deaths
from the novel coronavirus reported that day, the report relays.

The President disliked the way the network portrayed his statement
on the coronavirus deaths, the report adds.

As reported in the Troubled Company Reporter-Latin America on Dec.
4, 2019, S&P Global Ratings revised downward Globo Comunicacao's
stand-alone credit profile (SACP) to 'bbb-' from 'bbb' on
weaker-than-expected profitability metrics. S&P said, "Still, we
affirmed our 'BB+' issuer credit and issue-level ratings on Globo
because we expect it to maintain its strong market position as
Brazil's largest media conglomerate with
solid cash flows and a positive net cash position for the same
timeframe.

ULTRAPAR PARTICIPACOES: Moody's Affirms Ba1 CFR, Outlook Now Neg.
-----------------------------------------------------------------
Moody's Investors Service has affirmed Ultrapar Participacoes
S.A.'s Ba1 ratings, including its Corporate Family Rating and the
rating of backed senior unsecured notes issued by Ultrapar
International S.A, guaranteed by Ultrapar and by Ipiranga Produtos
de Petroleo S.A The outlook changed to negative from stable.

Ratings affirmed:

Issuer: Ultrapar Participacoes S.A.

  - Corporate Family Rating, Affirmed Ba1

Outlook changed to negative from stable

Issuer: Ultrapar International S.A.

  - $750 million senior unsecured notes due 2026, Affirmed Ba1

  - $500 million senior unsecured notes due 2029, Affirmed Ba1

Outlook changed to negative from stable

RATINGS RATIONALE

The rapid and widening spread of the coronavirus outbreak,
deteriorating global economic outlook, falling oil prices, and
asset price declines are creating a severe and extensive credit
shock across many sectors, regions and markets. The combined credit
effects of these developments are unprecedented. The fuel
distribution sector in Brazil has been significantly affected by
corona virus related shut-downs and changes in daily habits leading
to a sharp reduction in fuel demand. More specifically, the lower
sales volumes will lead to lower operating profit and a drop in
EBITDA, therefore increasing gross leverage in 2020 from an already
high level of 4.7x in 2018 and 2019. Moody's regards the
coronavirus outbreak as a social risk under its ESG framework,
given the substantial implications for public health and safety.

The change in outlook to negative was prompted by its expectation
that leverage will remain high with lower EBITDA generation and
lower operating profit margins leading to pressured metrics in the
next 12 months to 18 months.

Ultrapar's Ba1 ratings reflect the company's solid business model,
stable cash flow and leading positions in different segments in
Brazil: fuel and liquefied petroleum gas distribution, specialty
chemicals, and storage of liquid bulk. Liquidity is adequate. In
December 2019, Ultrapar had BRL 5.7 billion in cash, BRL 1.1
billion in short-term debt and a debt profile with an average
maturity of five years. Early in March, because of coronavirus
uncertainties, Ultrapar raised an additional BRL1.5 billion in bank
lines to reinforce its cash balance and reduced programmed capex by
30% to BRL 1.2 billion in 2020 to preserve liquidity.

Ultrapar ratings are primarily constrained by the current high
leverage, reduced operating margin, dependence on a few key
suppliers for raw materials and the cyclical nature of its chemical
business leading to high EBITDA volatility for the segment. In
2019, gross leverage was 4.7x, the same level as in 2018, and
Moody's Adjusted EBITDA declined to BRL3.4 billion, 17.6% lower
than the 5 years average of BRL4.1 billion. Operating profit margin
reached 2.0% last year compared to an average of 3.5% in the last
five years. As such, Ultrapar enters the volatility period Moody's
expectsed in the next few months with operating margins and EBITDA
levels below what it anticipates for the company in a normalized
level. In the next couple of years, Moody's expects operating
margins to approach 3.0% and EBITDA to reach BRL3.8 billion in 2021
and BRL4.4 billion in 2022.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

The ratings are unlikely to be upgraded in the short term. Positive
rating pressure will not arise until the coronavirus outbreak is
brought under control and fuel demand is normalized. Ultrapar would
need to show an improvement in operating margins, reduction in
gross leverage, and the maintenance of a strong liquidity profile.

Negative actions on Brazil's sovereign rating could trigger a
downgrade of Ultrapar's ratings. Quantitatively, a downgrade could
happen with a deterioration in the group's liquidity position, the
maintenance of: gross leverage, as measured by debt/EBITDA, above
4.0x without prospects of deleveraging; interest coverage, as
measured by EBIT/interest expense, below 2.5x and; operating
margins below 3.0%.

The principal methodology used in these ratings was Retail Industry
published in May 2018.

Ultrapar Participacoes S.A., headquartered in Sao Paulo, Brazil, is
engaged in fuel (Ipiranga) and liquefied petroleum gas (Ultragaz)
distribution, specialty chemicals production (Oxiteno), storage for
liquid bulk (Ultracargo) and retail drugstore (Extrafarma). In
2019, Ultrapar reported consolidated net revenues of BRL 89.3
billion (about $22.6 billion). Ipiranga is the group's largest
business segment, representing 84% of consolidated net revenues and
86% of EBITDA in the same period.



===========================
C A Y M A N   I S L A N D S
===========================

SHELF DRILLING: Moody's Cuts CFR to Caa1, Outlook Negative
----------------------------------------------------------
Moody's Investors Service has downgraded Shelf Drilling, Ltd.'s
corporate family rating to Caa1 from B3 and its probability of
default rating to Caa1-PD from B3-PD. The rating on the $900
million senior unsecured bonds issued by Shelf Drilling Holdings,
Ltd. has been downgraded to Caa2 from Caa1. The outlook on the
companies changed to negative from stable.

RATINGS RATIONALE

Its rating action reflects Moody's view that Shelf Drilling's
credit metrics will remain elevated over the next two to three
years, contrary to the rating agency's previous expectation of a
modest and gradual improvement. The rapid and widening spread of
the coronavirus outbreak, deteriorating global economic outlook,
falling oil prices, and asset price declines are creating a severe
and extensive credit shock across many sectors, regions and
markets, including the offshore drilling industry. More
specifically, the weaknesses in Shelf Drilling's credit profile,
including its high financial leverage as well as sensitivity to
contract renewals and dayrates, has left it vulnerable to shifts in
market sentiment in these unprecedented operating conditions.
Moody's regards the coronavirus outbreak as a social risk under its
ESG framework, given the substantial implications for public health
and safety.

The spreading pandemic has depressed global oil demand and led to a
sharp decline in oil prices. Moody's as a result has lowered its
average oil price assumptions for 2020 and 2021 to $35/bbl and
$45/bbl respectively. Exceptionally weak short-term prices will
persist until enough production curtailments can ease the strain on
storage facilities already operating at or close to full capacity.
Oil production will decline in 2020-21 because of both the agreed
OPEC+ deal and a significant cut in investments. This will result
in the global oilfield services and drilling sector to shrink
dramatically in 2020 and is not likely to fully recover in 2021 as
oil and gas producers curtail drilling activity and preserve cash
flows. The rating agency expects credit stress in the sector to
accelerate, with a decline in utilization rates and pressure on
dayrates.

The challenging market conditions create significant downside risks
for Shelf Drilling. The company's earnings are exposed to
re-contracting risk and are sensitive to volatility in dayrates
including possible downward revision of contracted rates as it
happened in the prior industry downturn. While Shelf Drilling has a
healthy revenue backlog ($2 billion as of 2019YE), about half the
backlog is concentrated to four rigs in Saudi Arabia. For the
fiscal year ended December 31, 2019, Moody's-adjusted debt/EBITDA
stood at 9.9x and Moody's forecasts that the metrics will remain at
or above 8.0x over the next 18 to 24 months. In addition, the
company's high debt burden and weak cash flow generation outlook
increases liquidity risks over the coming quarters.

LIQUIDITY

Shelf Drilling's liquidity is currently adequate in the absence of
any debt maturities until April 2023. However, Moody's anticipates
stress on liquidity to increase over the coming quarters, and
covenant compliance under its revolving credit facility could be
challenging by the end of 2020. Interest expense constitutes a very
significant portion of operational cash flows and the next
semi-annual bond coupon payments are on May 15 for the 2nd lien
senior secured bonds and August 15 for the senior unsecured bonds.

As of year-end 2019, the company had unrestricted cash balances of
$26 million and had access to $180 million in undrawn liquidity as
part of its $225 million RCF. In February 2020, the company raised
$80 million to fund committed investments.

STRUCTURAL CONSIDERATIONS

The $900 million senior unsecured bonds due in February 2025 are
rated one notch below the company's CFR. This is because the
unsecured bonds rank behind both the company's $225 million 1st
lien senior secured RCF due in April 2023 and $80 million 2nd lien
senior secured bonds due in November 2024.

RATIONALE FOR OUTLOOK

The negative outlook reflects the depressed market conditions over
the next 12 to 18 months following the collapse in oil prices which
has resulted in greater uncertainty on contracting activity and
dayrates.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

An upgrade is unlikely given the current environment and would
require Shelf Drilling to establish a track record of healthy free
cash flow generation, strengthening liquidity and an overall
accumulation in cash balances such that its net debt position
meaningfully reduces. Positive rating pressure would also require
(1) a significant improvement in credit metrics with
Moody's-adjusted debt/EBITDA sustained below 6.0x; and (2)
EBITDA/interest expense sustained above 2.0x.

Conversely, the ratings could be downgraded if (1) EBITDA/interest
expense falls below 1.0x; (2) the likelihood of a distressed
exchange becomes evident; or (3) liquidity weakens including
limited headroom under its covenants.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Global Oilfield
Services Industry Rating Methodology.

CORPORATE PROFILE

Shelf Drilling, Ltd. is a Cayman Islands-incorporated holding
company that owns 37 independent-leg cantilevers jack up rigs and
one swamp barge rig, and conducts drilling operations through
various subsidiaries in the Southeast Asian, Middle Eastern,
Indian, West African and North African/Mediterranean markets. Shelf
Drilling generated revenues of $576 million and Moody's-adjusted
EBITDA of $98 million for the year ended December 31, 2019. The
company is listed on the Oslo Stock Exchange since June 2018, with
a 41.2% free float, 19.6% ownership by China Merchants Group and
12.6% ownership each by three private equity sponsors — Lime Rock
Partners, CHAMP Private Equity and Castle Harlan Inc.



===================================
D O M I N I C A N   R E P U B L I C
===================================

DOMINICAN REPUBLIC: 65% of Locals Dissatisfied With Current Economy
-------------------------------------------------------------------
Dominican Today reports that 65% of Dominicans surveyed in a poll
of 1,200 revealed feeling "dissatisfied" with the current direction
of the economy.  71% of those people indicated that their personal
and family economic situation has worsened for four years or more,
18% believe that it remains the same and only 11% say it has
improved, according to Dominican Today.

This data is published in the Market Report, which added that 72%
of the respondents consider that the crisis due to the pandemic is
being handled in the country in the wrong way, 26% believe that the
management is correct and 2% did not respond, the report notes.

When asked what they consider to be the main problem affecting the
Dominican Republic today as a country, 59.3% believe that it is
COVID-19, 19.8% think that unemployment, 11.1% said corruption and
9.8% said the cost of products, the report adds.

                    About Dominican Republic

The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district.

The Troubled Company Reporter-Latin America reported in April 2019
that the Dominican Today related that Juan Del Rosario of the UASD
Economic Faculty cited a current economic slowdown for the
Dominican Republic and cautioned that if the trend continues,
growth would reach only 4% by 2023. Mr. Del Rosario said that if
that happens, "we'll face difficulties in meeting international
commitments."

An ongoing concern in the Dominican Republic is the inability of
participants in the electricity sector to establish financial
viability for the system.

On April 16, 2020, S&P Global Ratings revised its outlook on the
long-term ratings on the Dominican Republic to negative from
stable. At the same time, S&P affirmed its 'BB-/B' long- and
short-term foreign and local currency sovereign credit ratings.
The transfer and convertibility (T&C) assessment is unchanged at
'BB+'.

Moody's credit rating for Dominican Republic was last set at Ba3
with stable outlook (2017). Fitch's credit rating for Dominican
Republic was last reported at BB- with stable outlook (2016).

DOMINICAN REPUBLIC: Business Climate Index Drops 21% Since 4Q 2019
------------------------------------------------------------------
Dominican Today reports that the Business Climate Index decreased
significantly from 59.1 in the fourth quarter 2019
(October-December 2019) to 38.1 in the January-March 2020 quarter,
according to the Dominican Industries Association (AIRD).

The Business Climate Index (ICE) established in the Industrial
Situation Survey, measures the perceptions of business leaders on
the investment climate, the national economy, the international
economy, the situation of their company and on the branch or
subsector of activity in that said company operates, according to
Dominican Today.

Comparing the first quarter of 2020 with the fourth quarter of
2019, in the applied survey the perception of business leaders
decreased in the first quarter in the aspects of: Dominican
economy, international economy, branch of activity, investment
climate and business, the report notes.

                    About Dominican Republic

The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district.

The Troubled Company Reporter-Latin America reported in April 2019
that the Dominican Today related that Juan Del Rosario of the UASD
Economic Faculty cited a current economic slowdown for the
Dominican Republic and cautioned that if the trend continues,
growth would reach only 4% by 2023. Mr. Del Rosario said that if
that happens, "we'll face difficulties in meeting international
commitments."

An ongoing concern in the Dominican Republic is the inability of
participants in the electricity sector to establish financial
viability for the system.

On April 16, 2020, S&P Global Ratings revised its outlook on the
long-term ratings on the Dominican Republic to negative from
stable. At the same time, S&P affirmed its 'BB-/B' long- and
short-term foreign and local currency sovereign credit ratings.
The transfer and convertibility (T&C) assessment is unchanged at
'BB+'.

Moody's credit rating for Dominican Republic was last set at Ba3
with stable outlook (2017). Fitch's credit rating for Dominican
Republic was last reported at BB- with stable outlook (2016).

DOMINICAN REPUBLIC: Workers Mark Their Day With A 'Pink Slip'
-------------------------------------------------------------
Dominican Today reports that Dominican workers mark their
international day amid despair, anguish, with a "pink slip" in hand
and the lingering crisis with no end in sight.

Companies that are not authorized to operate in the days of the
pandemic have requested the layoff of their employees and others
that are operating have taken advantage of this situation to
suspend work contracts even for pregnant women, according to
Dominican Today.

To date, 50,807 companies have submitted 84,802 requests to suspend
employment contracts, affecting 846,549 workers, the report notes.

According to data from the Ministry of Labor, 765,000 workers have
been registered in the Government's Employee Solidarity Assistance
Fund (FASE) program, of which 633,715 were approved and 115,439
were rejected, the report relays.

                    About Dominican Republic

The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district.

The Troubled Company Reporter-Latin America reported in April 2019
that the Dominican Today related that Juan Del Rosario of the UASD
Economic Faculty cited a current economic slowdown for the
Dominican Republic and cautioned that if the trend continues,
growth would reach only 4% by 2023. Mr. Del Rosario said that if
that happens, "we'll face difficulties in meeting international
commitments."

An ongoing concern in the Dominican Republic is the inability of
participants in the electricity sector to establish financial
viability for the system.

On April 16, 2020, S&P Global Ratings revised its outlook on the
long-term ratings on the Dominican Republic to negative from
stable. At the same time, S&P affirmed its 'BB-/B' long- and
short-term foreign and local currency sovereign credit ratings.
The transfer and convertibility (T&C) assessment is unchanged at
'BB+'.

Moody's credit rating for Dominican Republic was last set at Ba3
with stable outlook (2017). Fitch's credit rating for Dominican
Republic was last reported at BB- with stable outlook (2016).



===============
X X X X X X X X
===============

CARIBBEAN: IMF Predicts 6.2% Contraction of Economies
-----------------------------------------------------
RJR News reports that the International Monetary Fund (IMF) said a
sudden stop in tourism caused by border closures and lockdowns
aimed at containing the coronavirus pandemic will cause a 6.2
percent contraction of  the Caribbean economy in 2020.

This is the deepest recession in over half a century, according to
RJR News.

In a blog posted on its website, the IMF warned that lost output
from firms and the high costs associated with managing local
outbreaks could worsen the pandemic's financial impact in the
Caribbean, while the upcoming hurricane season posed additional
risks, the report notes.

It said the region has seen massive cancellations of hotel bookings
and temporary resort closures, fueling unemployment, and the
experience from previous crises suggested that the recovery could
be delayed, the report relays.

The IMF said a steep drop in commodity prices had lowered exports
and fiscal revenues in commodity export countries such as Guyana,
Suriname, and Trinidad and Tobago, while energy companies could
scale back production plans in anticipation of  weaker demand as
global manufacturing activity contracts, the report discloses.

It added that remittances were expected to fall sharply since the
United States, Britain and Canada were also in deep recession, the
report notes.

Remittances average about 7 percent of the region's economic
output, but exceed 15 percent of gross domestic product in Jamaica
and Haiti, the report relates.                                     
                                                                   
           

Meanwhile, the head of the Federal Reserve dashed lingering hopes
for a fast rebound from the coronavirus pandemic, saying the U.S.
economy could feel the weight of consumer fear and social
distancing for a year or more in a prolonged climb from a deepening
hole, the report discloses.

After a two-day policy meeting, Fed Chair Jerome Powell offered no
optimistic words about how fast the country might return -- if
ever -- to the near-record low unemployment and solid growth of
just a few weeks ago, the report says.

In a matter of  weeks the U.S. economy has gone from historically
low unemployment to seeing more than 26 million people file for
unemployment benefits and the sharpest plunge in activity since the
2007-2009 Great Recession, as authorities across the country shut
down large swaths of industry and commerce to slow the spread of
the coronavirus, the report adds.


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S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.

Copyright 2020.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Peter A. Chapman at 215-945-7000.
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