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       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

          Wednesday, June 3, 2020, Vol. 21, No. 111

                           Headlines



B A H A M A S

BAHAMAS: Applies for IMF's 1.054% Loan


B R A Z I L

BANCO FORD: Moody's Confirms Ba1 Local Currency Deposit Rating


C H I L E

LATAM AIRLINES: Bankruptcy Filing to Delay its Brazil Bailout


C O S T A   R I C A

INVESTMENT ENERGY: Fitch Maintains LT IDRs on Watch Negative


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Bank Warns on Delivery of Foreign Currency
DOMINICAN REPUBLIC: Manufacturing Activity Continues to Slide
DOMINICAN REPUBLIC: Pandemic Shutters 21,000+ Companies
ITABO: Fitch Alters Outlook on BB-Rated Notes Due 2026 to Negative


G U A T E M A L A

BANCO AGROMERCANTIL: Fitch Affirms BB+ Local Curr. IDR, Outlook Neg
BANCO DE DESARROLLO: Fitch Affirms BB- LongTerm IDR, Outlook Neg.
BANCO DE LOS TRABAJADORES: Fitch Affirms 'BB-/B' IDRs, Outlook Neg.
BANCO G&T: Fitch Affirms BB- LT IDRs, Outlook Negative
BANCO INDUSTRIAL: Fitch Affirms 'BB-/B' LT IDRs, Outlook Stable



J A M A I C A

JAMAICA: Most Members Not Ready for June 1 Return of Employees


M E X I C O

CEMEX SAB: Fitch Lowers LT IDRs to 'BB-', Outlook Negative
FORD CREDIT: Moody's Alters Outlook on Ba2 Unsec. Rating to Neg.


U R U G U A Y

ACI AIRPORT: Fitch Rates $180.9MM Sec. Notes 'BB+', Outlook Neg.

                           - - - - -


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B A H A M A S
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BAHAMAS: Applies for IMF's 1.054% Loan
--------------------------------------
Trinidad Express reports that Bahamas indicated that it has applied
to the International Monetary Fund (IMF) to take advantage of a
low-cost, emergency loan facility that is available to all of its
member countries.

The loan amount is approximately US$252 million and falls within
the borrowing authorization approved in the Supplementary
"Hurricane Dorian" Budget in February, according to Trinidad
Express.  The additional resources will support the Government's
ongoing coronavirus (Covid-19) response and other budgetary
operations, according to a press release on the Government of The
Bahamas website, the report notes.

"This loan is not a structural adjustment facility. It does not
involve the conditionality elements normally associated with the
IMF facilities that most are familiar with, the report relays.
This facility is a low-cost option, with an interest rate of some
1.054% that we are smartly availing ourselves to address our
current needs," said Peter Turnquest, Deputy Prime Minister and
Minister of Finance in the Bahamas government, the report says.

Since Covid-19, some 27 countries have accessed financial
assistance using the IMF's Rapid Financing Instrument (RFI),
including other Caricom countries, the report discloses.  Member
countries with stable debt can apply for this facility when they
have had a major economic shock, such as those caused by wide
fluctuations in commodity prices, natural disasters, or other
emergencies -- in this case Covid-19, the report notes.

"In a few days, we are going to present a new budget and it will
continue to reflect the double impact of Hurricane Dorian and
Covid-19.  However, we have demonstrated that our approach to
addressing these emergencies is to focus on the health and safety
of Bahamians, social protection for the most vulnerable, and the
need to sustain employment. These priorities will continue into the
new budget, as we work to stabilise the domestic economy and plant
the seeds of recovery.  This loan facility assists us with meeting
our existing obligations through the end of the fiscal year, as has
been approved by Parliament during the Supplemental ‘Hurricane
Dorian' exercise," the report quoted by Mr. Turnquest as saying.

"This particular low-cost facility is a one-time deal that cannot
be used again until repaid. A simple way to think of this is like
borrowing against the value of your ownership in a company. The
Bahamas has a quota in the IMF which can be likened to its
ownership of shares in the IMF. Borrowing against these shares is
normally at a lower interest rate than borrowing from a commercial
source, and therefore a more favourable option for emergencies like
the one we face today," said Minister Turnquest.

The IMF board meeting is planned for early June and, if approved,
the funds would be made available to the government within three
business days. Again, unlike with IMF-supported programs, there are
no conditions or prior policy actions that the government must take
before the funds from the RFI can be disbursed, the report relays.

While the Bahamas government could have negotiated a loan with
other financial institutions, the RFI is indisputably the better
option, in the current circumstances, given its fast-disbursing
nature and low interest rate, the report notes.

Although the loan must be repaid in five years, the grace period of
three years is favorable as this will give the government time to
refinance the loan for a longer time horizon, if it deems fit, the
report discloses.

St. Vincent and the Grenadines became the sixth member of the
Caribbean Community (Caricom) to receive funding from the IMF to
help cover its balance of payment and fiscal needs stemming from
the outbreak of the Covid-19 pandemic, the report relays.

The IMF's executive board approved the disbursement of US$16
million to St Vincent and the Grenadines, following its request
under the Rapid Credit Facility (RCF) mechanism, the report says.

The disbursement, which will be quickly disbursed and with few
conditions, is set at the maximum available access under the RCF
instrument of 100 per cent of quota, the report notes.  St Vincent
and the Grenadines is a small state, vulnerable to external shocks,
including large natural disasters, the report discloses.

The accompanying table indicates that the six Caricom member states
received US$713.2 million between April 17 and, with Jamaica
receiving the largest sum at US$520 million and Dominica receiving
the smallest at US$14 million, the report says.

Five of the nations received IMF funding under the Rapid Credit
Facility (RCF), which is disbursed to small and vulnerable
countries or those with low incomes, the report relays.  Jamaica's
disbursement is under the Rapid Financing Instrument (RFI), the
report notes.

                                                   Type of
State       Date of Approval    Amount Approved   Funding
-----       ----------------    ---------------   -------
St Vincent       May 20          US$16.0 million   RCF

Jamaica          May 15         US$520.0 million   RFI

St Lucia         April 28        US$29.2 million   RCF

Grenada          April 28        US$22.4 million   RCF

Dominica         April 28        US$14.0 million   RCF

Haiti            April 17       US$111.6 million   RCF
                               -----------------
                    TOTAL       US$713.2 million

The IMF disburses funds under these two programs based on the size
of the country's Special Drawing Rights (SDRs), the report notes.
All of the six Caricom countries, except Haiti, opted to receive
100 per cent of their quota, the report discloses.

Trinidad and Tobago, with SDR 241.85 million, would receive US$330
million, at the exchange rate, if it applied for Covid-19 funding
from the IMF for its fiscal and balance of payment needs, the
report adds.




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B R A Z I L
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BANCO FORD: Moody's Confirms Ba1 Local Currency Deposit Rating
--------------------------------------------------------------
Moody's Investors Service has confirmed Banco Ford S.A.'s long term
global local currency deposit rating at Ba2. The long-term
counterparty risk assessment at Ba1(cr) and the long-term local
currency counterparty risk rating at Ba1 were affirmed. At the same
time, Moody's affirmed Banco Ford's ba3 baseline credit assessment.
The outlook on the ratings is negative.

The rating action concludes the review for downgrade that was
initiated on March 28, 2020, and that was prompted by similar
actions taken on the ratings of its immediate parent, Ford Motor
Credit Company LLC (Ford Credit, senior at Ba2, outlook negative).
Please see "Moody's confirms Ford Credit's long-term senior
unsecured rating at Ba2, concluding review; outlook is negative".
The ratings confirmation and negative outlook also reflects Moody's
view that the Brazilian economy will contract in 2020 as a result
of the coronavirus outbreak, which will likely have a direct
negative impact on Banco Ford's and other Brazilian banks' asset
quality and profitability. Moody's regards the coronavirus outbreak
as a social risk under its ESG framework, given the substantial
implications for public health and safety.

Banco Ford's Ba2 local currency deposit rating and ba2 adjusted BCA
incorporates one-notch of uplift from its BCA of ba3 to reflect its
assessment of a very high likelihood of support from its parent,
Ford Credit, based on the strategic focus shared between the parent
and the bank.

The following rating of Banco Ford S.A. was confirmed:

  - Long-term global local -currency deposit rating confirmed at
Ba2, outlook changed to negative from rating under review

The following ratings were affirmed:

  - Long-term global local-currency counterparty risk rating
affirmed at Ba1

  - Short-term global local-currency counterparty risk rating
affirmed at NP

  - Long-term global foreign-currency counterparty risk rating
affirmed at Ba1

  - Short-term global foreign-currency counterparty risk rating
affirmed at NP

  - Long-term Brazilian national scale counterparty risk rating
affirmed at Aaa.br

  - Short-term Brazilian national scale counterparty risk rating
affirmed at BR-1

  - Short-term global local-currency deposit rating affirmed at NP

  - Long-term global foreign-currency deposit rating affirmed at
Ba3, stable outlook

  - Short-term global foreign-currency deposit rating affirmed at
NP

  - Long-term Brazilian national scale deposit rating affirmed at
Aa3.br

  - Short-term Brazilian national scale deposit rating affirmed at
BR-1

  - Long-term counterparty risk assessment affirmed at Ba1(cr)

  - Short-term counterparty risk assessment affirmed at NP(cr)

  - Baseline credit assessment affirmed at ba3

  - Adjusted baseline credit assessment affirmed at ba2

  - Outlook changed to negative, from Rating Under Review

RATINGS RATIONALE

The confirmation of Banco Ford's rating reflects Moody's unchanged
assessment of the bank's ba3 standalone assessment and affiliate
support from Ford Credit. Moody's noted that Banco Ford's deposit
ratings reflect its role as a captive financing arm of Ford Motor
do Brasil, being solely engaged in financing sales of vehicles of
the auto manufacturing company. As such, Banco Ford's business
strategy and performance are closely tied to those of its
manufacturing company.

Banco Ford's unchanged ba3 standalone assessment takes into
consideration the company's predominantly short-term and secured
loan portfolio and its strong capital cushion that offers
protection against unexpected losses. The bank's historically
better-than-peers' asset quality is supported by the inherent
low-risk floor plan finance business and its ongoing monitoring of
the car dealers' financial profiles. Loan loss reserve remained
high, providing ample coverage to problem loans. Nevertheless,
Banco Ford's asset quality, which was strong at the onset of the
coronavirus outbreak, could weaken as business closure and pullback
in local consumption results in economic deceleration and car sales
decline. Loan payment deferrals may also mask asset quality metrics
over the medium--term.

At the same time, Moody's acknowledges that the bank's capital
base, measured as Moody's tangible common equity relative to risk
weighted assets at 17% in December 2019 remains adequate to provide
additional protection against loan losses. Moody's expects that a
slowdown in loan origination over the next months and temporary
regulatory measures, including the capping of dividends to a
maximum statutory 25% and lowering of capital conservation buffer
requirements, will preserve the bank's capital in the face of
coronavirus outbreak' effects on asset quality and profitability.

Similar to peers', the bank's wholesale and highly
confidence-sensitive funding base remains a key rating constraint,
together with low stock of liquid assets. Moody's expects the bank
to maintain a concentrated funding base in the form of interbank
deposits or other guaranteed funding. Banco Ford does not rely on
funding lines from related parties, but it counts with a contingent
liquidity line made available by its parent company, whenever
necessary. The bank has also reinforced its minimum cash position
to support credit forbearances and dilute any cash flow mismatches
during the pandemic.

In the meantime, Moody's expect lower business volumes, combined
with higher credit and funding costs will weight on Banco Ford's
profitability, with revenues already limited by its monoline
business model. Results in 2019 were affected by lower interest
income resulting from a contraction of its loan book. However, the
reversal of provisions for credit losses and a lean operational
structure helped the bank record net income to tangible banking
assets of 3.7% in 2019, from 1.9% in 2018. Moody's expects Banco
Ford to maintain operating costs under control, although its cost
of funding may increase.

The negative outlook on Banco Ford was prompted by similar actions
taken on the ratings for its parent Ford Credit, which in turn,
reflects the actions on Ford Credit's parent, Ford Motor Company
(Ford, Ba2 corporate family rating, negative).

Moody's regards the coronavirus pandemic as a social risk under its
ESG framework, given the substantial implications for public health
and safety. Please see Moody's Environmental risks and Social risks
heatmaps for further information. Its rating actions reflect the
impact on Banco Ford of the severity of the shock, and Moody's view
of its ability to withstand it under its current assumptions.

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

A scenario of more stable asset-quality indicators and maintenance
of profitability over the next 12-18 months could result in upward
rating pressure on Banco Ford's standalone BCA. Attempts to
diversify the bank's funding base and reduce concentration could
also lead to upward pressure on its rating. An upgrade in Banco
Ford's supported ratings would occur following an upgrade in Ford
Credit's ratings.

Because of the support assumptions incorporated into Banco Ford's
rating, a downgrade of Ford Credit's rating may lead to a downgrade
of Banco Ford's ratings. The bank's BCA could face negative
pressures as a result of material deterioration of asset quality
and profitability, arising from higher provisions and increase in
funding costs. A consistent decline in profitability could hurt the
bank's ability to replenish capital through earnings, which could
be negative in the long run.

METHODOLOGY USED

The principal methodology used in these ratings was Banks
Methodology published in November 2019.

Banco Ford is indirectly owned by Ford Motor Credit Company LLC,
which, in turn, is 100% controlled by Ford Motor Company.
Headquartered in Sao Bernardo do Campo, in December 2019, it had
total assets of BRL 1.1 billion, equity of BRL 256 million and
loans of BRL976 million.



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C H I L E
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LATAM AIRLINES: Bankruptcy Filing to Delay its Brazil Bailout
-------------------------------------------------------------
Rodrigo Viga at Reuters reports that LATAM Airlines Group's U.S.
bankruptcy filing will delay its potential bailout in Brazil to at
least July and also push back aid to its rivals at least through
the end of June, two sources said.

The delays will add further strain to Brazil's airlines, which were
already in weak shape before the pandemic, according to Reuters.
Rivals Azul SA and Gol Linhas Aereas Inteligentes SA are also
negotiating bailouts, the report relates.

"The bailout will happen; what could happen is that it may be
staggered due to LATAM's situation," said one source, the report
notes.

LATAM's bankruptcy filing has caused private banks to worry about
the viability of Brazil's airlines after the pandemic, the sources
said, the report notes.

LATAM's Brazil subsidiary is not part of the U.S. bankruptcy,
although executives acknowledge it is possible it might also go
through a court restructuring, the report says.

Government and private banks are also worried layoffs will be
unavoidable, which could have negative political implications, the
sources said, the report discloses.

LATAM does not dispute it will lay off workers. LATAM's Brazil CEO,
Jerome Cadier, told Reuters the company will undergo downsizing and
that layoffs are not prohibited under the government's current
draft of bailout conditions, the report says.

He added that if layoffs were banned, the rescue program would have
to be much bigger. Currently, the bailout is valued at BRL6
billion, the report notes.

LATAM's bankruptcy has also raised questions about the collateral
on any bailout loans, the report discloses.

One source said the Brazilian government is still figuring out how
best to lend to LATAM considering its parent company is in
bankruptcy protection, the report notes.  Usually the development
bank asks for collateral from parent companies, the report
relates.

"What we would want is for that collateral to have priority over
the rest of the company's debts," the source said, the report
adds.

As reported in the Troubled Company Reporter-Latin America on
May 28, 2020, Fitch Ratings has downgraded LATAM Airlines Group
S.A.'s Long-Term Foreign Currency Issuer Default Rating to 'D' from
'CC' and its National scale Long-term rating to 'D(cl)' from
'CC(cl). LATAM Finance's unsecured notes were affirmed at 'C' and
the recovery rating for the notes was revised to 'RR6' from 'RR5'.
LATAM's national scale unsecured notes were affirmed at 'C(cl)'.
The National Equity Rating has been affirmed at 'Segunda Clase
Nivel 5 (cl)'.




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C O S T A   R I C A
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INVESTMENT ENERGY: Fitch Maintains LT IDRs on Watch Negative
------------------------------------------------------------
Fitch Ratings has maintained Investment Energy Resources Limited's
'B' Long-Term Foreign and Local Currency Issuer Default Ratings on
Rating Watch Negative.

The Negative Watch reflects the ongoing challenging conditions of
the operating environment for IERL's subsidiaries in Honduras, due
to the stressed financial profile of its main counterpart, the
state-owned Empresa Nacional de Energia Electrica. Almost 50% of
IERL's EBITDA comes from its operations in Honduras, which
highlights the sensitivity of its cash flows to deterioration in
that country's macroeconomic conditions. In addition,
Participaciones Choluteca Dos, S.A. (Choluteca; IERL's subsidiary)
still has not been able to serve the subordinated loans it owes.
The loans at subsidiary level (including Choluteca) are
non-recourse to the holding company IERL. Furthermore, the recent
downgrade of Costa Rica's Sovereign rating adds more pressure to
the company's overall operating environment, coupled with the
impact of the coronavirus pandemic on the Central American Region.
Considering IERL's weaker operating environment and uncertainty
surrounding the macroeconomic impacts of the coronavirus, Fitch
expects that the Negative Watch on IERL's ratings could take longer
than six months to resolve.

KEY RATING DRIVERS

Subsidiary's Selective Payment Default: Choluteca is part of IERL's
consolidated profile and represents 14% of its total revenues.
Choluteca's failure to pay its subordinated loan constitutes a
default event for the total loan balance of the subsidiary,
including senior and subordinated debt, according to the
corresponding debt agreement of the syndicated loan. Fitch believes
that Choluteca's default is not a direct default by IERL, given
that the debt at subsidiary level is non-recourse. Choluteca's
total loan balance was USD105.7 million as of April 30, 2020, and
represented 19% of its parent total debt.

Overdue Receivables Persist: Delays in the recovery of receivables
from ENEE, caused by its persistent deficit, have been worsened by
the current coronavirus crisis environment, constraining liquidity
in Choluteca, where cash flows are not enough to serve subordinated
debt. Arrears of payments to private generators have increased over
the past couple of years. The main drivers on ENEE's deterioration
are the deficit caused by large technical and non-technical losses
(over 30% as of April 2020), and the lack of new subsidies from the
Honduran government, amid the economic downturn caused by the
coronavirus. As of May 20th 2020, over USD67 million (excluding
interest and exchange rate differential) in accounts receivable
were overdue at Choluteca and IERL's other plant in the country,
Cerro de Hula.

On May 7, 2020, the International Monetary Fund announced that IMF
staff and Honduran Authorities reached a staff-level agreement on
the Second Review of the Economic Program to increase access under
a Stand-By Arrangement and a Stand-by Credit Facility of about
USD222 million. This would bring total access to about USD530
million, to support Honduras' economic policies and fund emergency
measures regarding the coronavirus pandemic. The proposal is
subject to approval by the IMF Executive Board. The IMF mission
held discussions with ENEE's intervention board, the electricity
sector regulator and system operator, and representatives from the
private sector; however, it is not clear if an eventual approval of
the financing will serve to help ENEE pay its debt to generation
companies.

Stable Cash Flows from U.S. Dollar-Denominated Contracts: IERL has
a strong business profile, characterized by long-term U.S.
dollar-denominated contracts and an adequate cost structure. As of
march 2020, the company's generation capacity was 100% contracted
under PPA's with an average remaining life of 16 years. The company
is exposed to the weak operating environments of Nicaragua
(B-/Stable), Costa Rica (B/Negative) and Honduras (not rated).
Fitch's assessment of transfer and convertibility risk for these
countries is consistent with the 'B' level, which IERL offsets with
its diverse geographic footprint and insurance from the World
Bank's Multilateral Investment Guarantee Agency on some of its
GenCos.

Improving Credit Metrics: Fitch expects IERL's adjusted leverage to
be close to 4.1x and to de-lever to 3.6x-3.2x in 2021 and 2022. The
company's leverage peaked in 2016 at 8.6x to finance the completion
of its energy capacity between 2017 and 2018. Fitch estimates IERL
will produce FCF positive through the rating cycle after dividend
payments, given that its expansion capex has concluded.

Strong Shareholder: Although the assessment under Fitch's Parent
Subsidiary Linkage Criteria does not result in an explicit notching
uplift for IERL, Fitch views positively the strength of the
company's owner Corporacion Multi Inversiones (CMI). CMI is a
family-owned multinational conglomerate with operations throughout
Central America, the Caribbean, and the U.S. Its operations include
agribusiness, restaurants (including the global chain Pollo
Campero), real estate, electricity generation and finance.

DERIVATION SUMMARY

Compared with other speculative-grade peers in the region, IERL
maintains a relatively diversified asset portfolio supported by
exceptionally long-term contracts (average weighted life of more
than 16 years). IERL's comparatively diverse portfolio is hampered
by exposure to weak operating environments of Honduras, Nicaragua
and Costa Rica, putting additional downward pressure on its overall
risk profile. A similar dynamic exists with its Argentine peer
Genneia S.A. (CCC). Although Genneia presents strong financial
metrics relative to its rating, its unmitigated exposure to
Argentina's increasingly weak operating environment constrains its
rating.

KEY ASSUMPTIONS

  -- Combination of P50 and P75 operating scenarios, depending on
historical performance;

  -- A 100% contracted generation;

  -- ENEE accumulated invoices are normalized by 2021;

  -- Marginal operational efficiencies;

  -- Dividend payments of USD8.4 million in 2020, average of USD40
million 2021-2022;

  -- Positive FCF generation through the rating cycle.

RATING SENSITIVITIES

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

  -- Although a positive rating action is unlikely, Fitch would
review the Rating Watch Negative if the company successfully clears
the default on its subsidiary subordinated debt.

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

  -- Failure to settle the default on its subsidiary debt;

  -- Deterioration of the sovereign ratings and/or applicable
country ceiling combined with a significant lag in collections;

  -- Sustained disruptions in generation capacity due to either
technical or climatological issues; particularly in conjunction
with continued aggressive cash management policy.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate
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.

LIQUIDITY AND DEBT STRUCTURE

Strong Cash Generation: IERL's modest cost structure and minimal
investment requirements consistently generated strong cash flow.
The agency's forecast IERL's Free Cash Flow to be positive through
the rating cycle, averaging around USD27 million by YE 2020. Fitch
expects the company to maintain or exceed these levels going
forward. As of March 2020, the company had an available cash
balance of USD46.5 million and USD27 million in undrawn committed
credit lines.

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.




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D O M I N I C A N   R E P U B L I C
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DOMINICAN REPUBLIC: Bank Warns on Delivery of Foreign Currency
--------------------------------------------------------------
Dominican Today reports that despite the fact that the Central Bank
disavowed the delivery of foreign currency in a currency other than
the one sent by the remitter to the recipients, some local
companies continued to deny carrying out this operation in
accordance with the agreement between the parties.

Meanwhile, even with these details from the Central Bank, the
situation persisted with new complaints from users of the
remittance service, noting that in addition to having to pay more
expensive for their shipments for delivery in dollars, some
remittance companies insist on doing it in pesos, according to
Dominican Today.

As the Central Bank made clear, in a statement to Listin Diario, in
the international market the regulations establish that the
remitter, the person who sends the money, "has the power and the
freedom to choose the type of currency in which the shipment is
delivered," 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.

Standard & Poor's credit rating for Dominican Republic stands at
BB- with negative outlook (April 2020). Moody's credit rating for
Dominican Republic was last set at Ba3 with stable outlook (July
2017). Fitch's credit rating for Dominican Republic was last
reported at BB- with negative outlook (May 8, 2020).


DOMINICAN REPUBLIC: Manufacturing Activity Continues to Slide
-------------------------------------------------------------
Dominican Today reports that the Dominican Republic Industries
Association's (AIRD) Monthly Manufacturing Activity Index (IMAM)
continued to decline in April, after the sharp decrease in March,
falling from 55.9 in February, at 38.2 in March, and remain at a
similar level of 38.6 in April.

When the IMAM remains below the threshold of 50 points, it reflects
that the economic conditions and prospects of the manufacturing
sector are considered not favorable, according to Dominican Today.

In June and October 2017, the indicator was below the threshold, as
well as in March and April this year, the report notes.

"The IMAM is presented with an adjustment for seasonality and
weighted in its five variables and as a general index, which allows
for a more reliable approximation when taking into account the
recurring and therefore predictable fluctuations that occur in a
period within a year, which tends to affect the measurement of
results," the AIRD said, 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.

Standard & Poor's credit rating for Dominican Republic stands at
BB- with negative outlook (April 2020). Moody's credit rating for
Dominican Republic was last set at Ba3 with stable outlook (July
2017). Fitch's credit rating for Dominican Republic was last
reported at BB- with negative outlook (May 8, 2020).


DOMINICAN REPUBLIC: Pandemic Shutters 21,000+ Companies
-------------------------------------------------------
Dominican Today reports that the closure of a significant part of
Dominican Republic economic activity since mid-March, ordered by
the Government to prevent the spread of COVID-19, already reflects
the devastation of the measure, not only in workers, but also in
micro and small business leaders.

The Social Security Treasury (TSS) went from registering 92,320
employers in March 2020 to 71,061 in April, a net reduction of
21,259 employers, equivalent to a monthly drop of 23%, according to
Dominican Today.

Those most affected were micro and small entrepreneurs, with a
range of between one and 15 workers, who represented 78,026 in
March and fell to 62,081 in April, a reduction of 15,945,
equivalent to 75% of the total number of companies that stopped
contributing to the TSS during that period, the report notes.

Likewise, employers with a range of between 16 and 50 workers fell
from 9,723 in March to 5,793 the following month, a reduction of
40.4% (3,930). When compared to the total drop, this business
segment represents 18.4% of the collapse, 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.

Standard & Poor's credit rating for Dominican Republic stands at
BB- with negative outlook (April 2020). Moody's credit rating for
Dominican Republic was last set at Ba3 with stable outlook (July
2017). Fitch's credit rating for Dominican Republic was last
reported at BB- with negative outlook (May 8, 2020).


ITABO: Fitch Alters Outlook on BB-Rated Notes Due 2026 to Negative
------------------------------------------------------------------
Fitch Ratings has affirmed the rating of Empresa Generadora de
Electricidad Itabo, S.A.'s senior unsecured notes due 2026 at 'BB-'
and affirmed the Long-Term Foreign- and Local-Currency Issuer
Default Ratings of Itabo at 'BB-'. The Rating Outlook on the IDRs
is revised to Negative from Stable due to the change in the
sovereign Rating Outlook to Negative from Stable. The sovereign's
Negative Outlook reflects impact from the coronavirus pandemic,
which has caused a sharp fall in economic activity and pressured
the Dominican Republic's balance of payments given its reliance on
tourism and remittances.

Itabo's ratings reflect the electricity sector's high dependency on
transfers from the central government to service its financial
obligations, a condition that links the credit quality of the
electric distribution companies and generation companies to that of
the sovereign. Low collections from end-users, high electricity
losses and subsidies have undermined distribution companies' cash
generation capacity, exacerbating generation companies' dependence
on public funds to cover the gap produced by insufficient payments
received from distribution companies. Itabo's ratings also consider
its low-cost generation portfolio, strong balance sheet and
well-structured Power Purchase Agreements, which contribute to
strong cash flow generation and bolster liquidity.

KEY RATING DRIVERS

Dependence on Government Transfers: High energy distribution losses
of 27% in 2019, low level of collections and important subsidies
for end-users have created a strong dependence on government
transfers. This dependence has been exacerbated by the country's
exposure to fluctuations in fossil-fuel prices and strong energy
demand growth from distribution companies of 5.9% in 2019. The
regular delays in government transfers pressure working capital
needs of generators and add volatility to their cash flows. This
situation increases the risk of the sector, especially at a time of
rising fiscal vulnerabilities affecting the central government's
finances.

Low-Cost Asset Portfolio: Itabo's ratings incorporate its strong
competitive position as one of the lower cost thermoelectric
generators in the country, ensuring the company's consistent
dispatch of its generation units. The company operates two low-cost
coal-fired thermal generating units and a third peaking plant that
runs on Fuel Oil #2 and sells electricity to three distribution
companies in the country through long-term U.S. dollar denominated
PPAs. The company expects to remain a base load generator even
after a 752-MW coal generation project, Punta Catalina, started its
units 1 and 2 in 2019 and 2020, respectively.

Solid Credit Metrics: Itabo presents strong credit metrics for the
rating category. Gross leverage of 1.1x is expected for 2019,
compared with 1.1x as of 3Q19. Fitch expects leverage to rise to
1.3x in 2020 due to lower electricity demand and falling spot
prices in the country. Similarly, stable EBITDA in the range of
USD75-USD80 million is expected over the next two years. Fitch
expects gradual deterioration in prices to negatively impact
revenues and EBITDA through the medium term, resulting in leverage
potentially increasing to above 1.7x after Itabo's current PPAs
expire in 2022.

Working Capital Pressure: Instability in the company's collection
periods has resulted in operating cash flow volatility. According
to the Dominican Electricity Industry Association, the balance owed
to all AES companies (AES Andres, Dominican Power Partners and EGE
Itabo) by state-owned distribution companies stood at USD216.4
million in April 2020, relatively unchanged from USD219.7 million
in December 2019. The high receivable balance can be attributed to
the Dominican government's continued lag in paying state-owned
distribution companies, which in turn delays payments to generation
companies.

RATING SENSITIVITIES

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

  -- A positive rating action could follow if the Dominican
Republic's sovereign rating is upgraded or if the electricity
sector achieves financial sustainability through proper policy
implementation

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

  -- A negative rating action would follow if the Dominican
Republic's sovereign rating is downgraded, if there is sustained
deterioration in the reliability of government transfers, or if
financial performance deteriorates to the point of increasing the
ratio of debt-to-EBITDA to 4.5x for a sustained amount of time.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate
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.




=================
G U A T E M A L A
=================

BANCO AGROMERCANTIL: Fitch Affirms BB+ Local Curr. IDR, Outlook Neg
-------------------------------------------------------------------
Fitch Ratings has affirmed Banco Agromercantil de Guatemala, S.A.'s
Long-Term Foreign Currency Issuer Default Rating at 'BB'/Outlook
Stable and Long-Term Local Currency IDR at 'BB+'/Outlook Negative.
Fitch has also affirmed the Short-Term FC IDR and the Short-Term LC
IDR at 'B' Additionally, Fitch affirmed the Long- and Short-Term
National Ratings of BAM, Financiera Agromercantil, S.A. and Mercom
Bank Ltd. at 'AAA(gtm)' and 'F1+(gtm)', respectively. The Rating
Outlook for all National Long-Term ratings is Stable.

KEY RATING DRIVERS

BAM - IDRs AND NATIONAL RATINGS

BAM's IDRs and National Ratings are based on the potential support
the entity would receive from its shareholder Bancolombia, S.A.
should it be required. Bancolombia (BBB-/Negative) is Colombia's
largest bank in terms of assets, deposits and loans, with an
important presence in Central America. BAM's FC IDR is at the same
level of Guatemala's country ceiling of 'BB', which captures
transfer and convertibility risks. The LC IDR shows the maximum
uplift of two notches above the sovereign rating, which in Fitch's
opinion reflects the parent's solid commitment to its subsidiary.
In addition, BAM's National Ratings are at the highest point of the
National Rating scale given the relative strength of Bancolombia in
relation to other issuers rated in Guatemala.

In Fitch's view, Bancolombia's propensity to provide support is
highly influenced by the strong reputational risk that BAM's
potential default would constitute to its parent, which could
damage its franchise. A key factor of moderate importance
underpinning the parents' propensity for support is BAM's position
as an important part of the group given its role in Bancolombia's
diversification in the Central American region. In addition, that
any required support would be manageable for the shareholder, as
the bank represented around 5.9% of its total assets as of March
2020, which theoretically facilitates support if necessary. Fitch
will closely monitor the ability of the parent companies to support
its subsidiaries.

VIABILITY RATING

BAM's VR is highly influenced by the challenging operational
environment in Guatemala and by the bank's good company profile. A
challenging operating environment and weaker financial performance
compared to its closest peers (large commercial banks in Guatemala)
influence BAM's VR. As the fifth largest bank by assets and loans
with a market share of 8.1% and 11.4%, respectively, BAM has a good
competitive position that has gradually strengthened in the
Guatemalan banking system. The VR also considers the bank's
adequate asset quality and appropriate funding structure relative
to its rating level, as well as the deteriorating trend in
capitalization. The VR also considers the bank's moderate market
position and the challenges sensitivity of its financial profile to
operating environment deterioration and the economic pressure
arising from the coronavirus pandemic.

At the end of 2019, the bank's profitability it exhibited a slight
improvement to 1.4%, since the operating profit to RWA ratio was
0.8% in 2018, although it has maintained lower than its closest
peers and the industry (2019: 2.4%).This evolution have been
influenced by higher loan impairment charges, operating expenses
and provisions for an important foreclosed asset since 2018, which
affected the efficiency. During this time, the loan impairment
charges moved from 34.2% in 2017 to 53.2% at December 2019, which
impacted profitability. Fitch believes that the prospects for
improving profitability would be affected to 2020 by deterioration
on economic environment by the pandemic, resulting in higher cost
of credits and lower income generation in spite of the different
initiatives in which BAM has been working to obtain a better
performance.

Fitch considers that BAM's asset quality is appropriate, although
it has experienced a slight deterioration during the last years,
which is similar to what was observed in the system. As of December
2019, the delinquency ratio (90 days past due) registered 2.3%
(industry: 2.2%). This evolution is the result of the expansion of
the retail segment, which has gained participation in the loan
portfolio as part of BAM's strategy, the commercial credits, as
well as, the influence of the economic environment. In Fitch's
opinion, the loan quality could show a slightly deterioration
during 2020 due to worsened business and economic environment as
result of the pandemic, but it could contain given the
strengthening of the credit risk control framework made by BAM.

In Fitch views, BAM's capitalization is the weakest factor in its
financial profile and this compares negatively with the market. At
the end of 2019, the FCC to RWA ratio fell to 10.1%, respectively,
influenced by the loan impairment charges in two previous years,
combined with a greater proportion of RWA with respect to the
assets (2019: 78.6%; 2017: 76.2%). Fitch expects BAM's capital
position to remain at reasonable levels over the rating horizon.
Furthermore, in an adverse event, Fitch anticipates that
Bancolombia would provide support to its subsidiary if required.

In Fitch's view, BAM's funding structure is appropriate, which
provides the bank with financial flexibility, also benefiting from
Bancolombia's support and its recognized franchise. Customer
deposits are one of the most important and stable sources of
financing, which accounted for 77.8% at the end of 2019, while the
system registered 86.5% as of December 2019. In addition, the
funding is sustained on the consistency of its deposits, with a
renewal rate around 80%.

SUPPORT RATING

BAM's SR of '3' reflects the Bancolombia's moderate ability and
propensity to support to BAM, if necessary. This rating is mostly
influenced by the current level of the country ceiling.

FINANCIERA AGROMERCANTIL and MERCOM - NATIONAL RATINGS

Financiera Agromercantil and Mercom's National Ratings are driven
by the potential assistance from their shareholder, Bancolombia, if
it would be necessary. Their National Ratings are at the highest
level of the rating scale, which reflects the relative strength of
their owner, with respect to other rated issuers in the country.

In addition, Fitch considers with high importance in its
evaluation, that Bancolombia's ability and willingness to support
its Guatemalan subsidiaries is influenced by the huge reputational
risk that the institutions' default could constitute to its parent,
damaging its franchise. Fitch also factors with moderate
importance, the entities' role in the group in Guatemala, which
includes operations in complementary market segments that boost
BAM's business model.

RATING SENSITIVITIES

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

BAM - IDR, VR and SR

BAM IDRs' ratings are sensitive to a downgrade of the sovereign
rating and country ceiling.

BAM's VR could be downgraded in a scenario of a material
deterioration in the local operating environment that reduce its
operating profit to RWA metric below 1% and/or the Fitch Core
Capital ratio consistently remains below 9%.

BAM, FINANCIERA AGROMERCANTIL and MERCOM - NATIONAL RATINGS

The ratings could be downgrade if Fitch's assessment of
Bancolombia's ability or willingness to support its subsidiaries is
modified.

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

BAM - IDR, VR and SR

The IDRs of Agromercantil have limited upside potential given the
current sovereign rating, country ceiling and broader operating
environment.

BAM's IDR, VR and SR could be upgraded in the event of an upgrade
of Guatemala's sovereign rating and improvement of the operating
environment, or in the assessment of the Bancolombia's propensity
or ability to provide support to its subsidiary.

BAM, FINANCIERA AGROMERCANTIL and MERCOM - NATIONAL RATINGS

The ratings are at the highest level of the national rating scale
and therefore have no upside potential.

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.

SUMMARY OF FINANCIAL ADJUSTMENTS

BAM: Prepaid expenses and other deferred assets were reclassified
as intangible assets and were deducted from Fitch Core Capital
since the agency considers these to have low capacity to absorb
losses.

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

The entities' ratings are based on the potential support they would
receive from their shareholder Bancolombia, S.A. should it be
required. Bancolombia is rated 'BBB-'/Outlook Negative.

ESG CONSIDERATIONS

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(ies), either due to their
nature or to the way in which they are being managed by the
entity(ies).

Financiera Agromercantil, S.A.

  - Natl LT AAA(gtm); Affirmed

  - Natl ST F1+(gtm); Affirmed

Banco Agromercantil de Guatemala S.A.

  - LT IDR BB; Affirmed

  - ST IDR B; Affirmed

  - LC LT IDR BB+; Affirmed

  - LC ST IDR B; Affirmed

  - Natl LT AAA(gtm); Affirmed

  - Natl ST F1+(gtm); Affirmed

  - Viability b+; Affirmed

  - Support 3; Affirmed

Mercom Bank Ltd. Natl

  - LT AAA(gtm); Affirmed

  - Natl ST F1+(gtm); Affirmed


BANCO DE DESARROLLO: Fitch Affirms BB- LongTerm IDR, Outlook Neg.
-----------------------------------------------------------------
Fitch Ratings has affirmed Banco de Desarrollo Rural, S.A.'s
Long-Term Issuer Default Rating at 'BB-', Short-Term IDR at 'B' and
Viability Rating at 'bb-'. The Rating Outlook on the Long-Term IDR
is Negative. Fitch has also affirmed the National Ratings of
Banrural and Financiera Rural S.A. at 'AA(gtm)'. The Rating
Outlooks on the Long-Term National Ratings for Banrural and
Finrural are Negative.

The Negative Outlook reflects Fitch's view that risks remain skewed
to the downside as lockdown measures remain in place with a
baseline scenario of no economic growth for Guatemala in 2020.

KEY RATING DRIVERS

Banrural's ratings are highly influenced by the operating
environment as the economic downturn is expected to pressure the
financial profile of banks across the system. While uncertainties
surrounding the full impact of the pandemic are still present,
Banrural's ratings are also highly influenced by its company
profile, notably its position as a systematically important bank
with a strong franchise and ample deposit base in Guatemala.

Immediate risks associated with the expected deterioration of the
loan book portfolio across the banking system are somewhat
mitigated by Banrural's sufficient capital buffer and adequate
ability to absorb increasing loan impairment charges. As of March
2020, Banrural's Fitch Core Capital stood at 16.2% although a
reduction in its internal capital generation if combined with
higher lending appetite could add some pressure to capital
metrics.

Profitability is expected to be pressured for the second half of
2020 despite positive results as of April 2020 (Net income 5% above
April 2019). The sharp reduction in economic activity is expected
to reduce business volume and affect debtor repayment capacity. As
of March 2020, operating profit to risk weighted assets stood at
2.7%, as pre-impairment profits should provide headroom to absorb
higher LICs without significant capital pressure.

Fitch expects asset deterioration to be deferred across the banking
system as the moratorium period could be extended to year-end 2020
and the rise in impaired loans will likely continue over 2021.
Banrural entered the crisis with higher delinquency levels (4.6%)
than peers, but manageable relative to operating revenue and loan
loss reserves coverage levels (March 2020: 142% of NPLs and 6.5% of
gross loans).

Fitch considers Banrural's funding profile to be sound as it
benefits from a large base of granular deposits, which has
continued to increase amid the pandemic (April 2020: 2.5% above
year-end 2019). As of March 2020, loans to deposits ratio stood
close to 57.5%, as the loan book could continue to be completely
funded in a stressed scenario of a deposit decline. The bank has a
low reliance on external funding (5% of funding), which tends to
decrease during periods of stress.

SUPPORT RATING AND SUPPORT RATING FLOOR

Banrural's Support Rating and Support Rating Floor reflect Fitch's
opinion regarding the likelihood that the bank will receive
extraordinary support from the sovereign.

The bank's SR of '4' reflects Fitch's opinion about the limited
probability of extraordinary support from the state. The SRF is one
notch below the sovereign rating at 'B+', which indicates the
minimum level to which the entity's Long-Term IDR could fall if the
agency does not change its view on potential sovereign support.

Fitch's assessment considers the relative size of the banking
system relative to the size of the economy, and Banrural's local
systemic importance as one of the largest banks in Guatemala.

FINANCIERA RURAL

NATIONAL RATINGS

Finrural's ratings are driven by the support it would receive from
Banrural, if required. In the agency's view, Finrural is highly
integrated to Banrural and a default of Finrural would constitute
an important reputational risk for the bank. Finrural provides
services to Banrural as managing trustees while its relative size
is considered to be immaterial relative to the ability of Banrural
to provide support.

RATING SENSITIVITIES

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

There is limited upside potential given that the VR and IDR are at
the sovereign level. IDR and National Ratings could be affirmed,
and their Negative Outlooks revised to Stable, if the impact of the
economic disruption from the coronavirus outbreak does not result
in significant deterioration on its financial metrics, especially
in terms of asset quality and earnings and profitability.

The VR and IDR could be upgraded in the event of an upgrade of
Guatemala´s sovereign rating and improvement of the operating
environment.

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

VR, IDR and National Ratings could be downgraded if the
deterioration of Banrural's financial profile caused by the
pandemic turns out to be significantly more important than
anticipated with an operating profit to Risk Weighted Assets (RWA)
consistently below 2% and/or a decline in capitalization (Fitch
Core Capital [FCC]/RWA close to 12%). Ratings are also sensitive to
a downgrade of the sovereign rating.

SUPPORT RATING

Banrural's SR and SRF are sensitive to changes in the sovereign
rating as well as its capacity and/or propensity to provide
support.

FINANCIERA RURAL NATIONAL RATINGS

Changes in Finrural's ratings would mirror movements in Banrural's
ratings as well as changes in its capacity and/or propensity to
provide support.

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.

SUMMARY OF FINANCIAL ADJUSTMENTS

Banrural: Prepaid expenses and other deferred assets were
reclassified as intangible assets and were deducted from FCC since
the agency considers these to have low capacity to absorb losses.
Equity interests in insurance companies are also deducted from
FCC.

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

Finrural's ratings are driven by the support of Banrural.

ESG CONSIDERATIONS

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(ies), either due to their
nature or to the way in which they are being managed by the
entity(ies).

Financiera Rural, S.A Natl

  - LT AA(gtm); Affirmed

  - Natl ST F1+(gtm); Affirmed

Banco de Desarrollo Rural, S.A.

  - LT IDR BB-; Affirmed

  - ST IDR B; Affirmed

  - LC LT IDR BB-; Affirmed

  - LC ST IDR B; Affirmed

  - Natl LT AA(gtm); Affirmed

  - Natl ST F1+(gtm); Affirmed

  - Viability bb-; Affirmed

  - Support 4; Affirmed

  - Support Floor B+; Affirmed


BANCO DE LOS TRABAJADORES: Fitch Affirms 'BB-/B' IDRs, Outlook Neg.
-------------------------------------------------------------------
Fitch Ratings has affirmed Banco de los Trabajadores' Viability
Rating at 'bb-' and accordingly affirmed the bank's Long-Term
Issuer Default Ratings at 'BB-' while the long-term Outlook remains
Negative. In addition, Fitch affirmed Bantrab's Long-Term National
Rating at 'A-(gtm)' and maintained the Rating Outlook Negative.

The Rating Outlook Negative reflects Fitch's opinion that operating
environment uncertainty and limited economic growth amid the
coronavirus pandemic poses increased pressure to the bank's
financial performance and prospects.

In line with the rating actions on Bantrab, Fitch has affirmed
Bantrab Senior Trust's Long-Term rating at 'BB-'.

KEY RATING DRIVERS

IDRS, NATIONAL RATINGS AND SENIOR DEBT

Bantrab's IDRs and national ratings are driven by its VR. Bantrab's
VR is highly influenced by the Guatemala's operating environment,
which will exert negative pressure on the bank's performance and
prospects in the midterm, in the agency's opinion. Its VR is also
highly influenced by the bank's good company profile. The
institution's focus on consumer lending with the risk control
mechanism of collecting payments via payroll has enabled the bank
to have a dominant market position in retail banking and allowed it
to register a constant and stable financial income stream.

Bantrab registers good loan quality indicators for its
consumer-focused business model given its debt collection method,
primarily to public sector employees who are deemed as less
sensitive to the increase in unemployment. However, despite its
improving figures, Fitch believes Bantrab is not exempt of the
asset quality pressures born out of the current deep global
recession scenario. As of April 30, 2020, the core metric of
impaired loans (90+ days overdue) over gross loans is a low 1.58%,
slightly up from YE2019 of 1.39%.

The agency foresees a reduction of income mainly due to less
business volume; also, despite its high percentage a loans deducted
via payroll, Fitch does not discard a decline in earnings if the
contingency extends itself longer than expected. Also, the
percentage of loans not collected via payroll, albeit minimal,
could reduce the bank's expected cash flow as they have a higher
chance of becoming overdue. As of 1Q20, net ROAA was 2.77%, in line
with YE2019 of 2.72%. As of fiscal 2019, operating RORWA was an
advantageous 5.1%.

Fitch also recognizes Bantrab`s sound capitalization, highest among
its peers in the Guatemalan industry, which provides the bank with
a strong loss absorption capacity. As of YE19, FCC is at a historic
peak of nearly 20%, which indicates the bank is better prepared to
face an adverse scenario.

Bantrab's deposit structure is based on term deposits of highly
renewable rate. The top 20 overall depositors comprise around 29%
of total deposits and most come from governmental institutions and
professional associations. As part of its business model, the
bank's liability cost is higher than the system average, but with a
favorable downwards trend. As of April 2020, customer deposits grew
2.4% compared to December 2019. Positively, as of 1Q20, the bank
had established a contingency credit line and is in the process of
acquiring more. L-to-D ratio was 67.85% as of 1Q20, slightly better
than YE19 of 69.41%.

SUPPORT RATING AND SUPPORT RATING FLOOR - Bantrab

Bantrab's SR and SRF of '5' and 'NF', respectively, indicate that,
although possible, external support cannot be relied upon given the
currently low state ownership and relatively limited systemic
importance.

SENIOR DEBT - Bantrab Senior Trust

Bantrab's Senior Trust's seven-year U.S.-dollar loan participation
notes' rating is in line with Bantrab's VR, reflecting that the
senior unsecured obligations rank equally with the bank's unsecured
and unsubordinated obligations.

NATIONAL RATINGS - Fintrab

Fintrab's National ratings are underpinned by institutional support
it would likely receive from its shareholder, Bantrab. Fitch's
opinion of support is based on the significant reputational risk
that a default would pose to Bantrab. As a result, Fintrab's
National ratings are aligned with Bantrab's credit profile.

RATING SENSITIVITIES

IDRs, VR AND NATIONAL RATINGS - BANTRAB

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

VR, IDR and National Ratings could be downgraded if the
deterioration of the financial profile of these entities caused by
the pandemic turns out to be significantly more important than
anticipated with an operating profit to RWAs consistently below 2%
and/or a decline in capitalization (FCC/RWA close to 12%). Ratings
are also sensitive to a downgrade of the sovereign rating.

SUPPORT RATINGS and SUPPORT RATING FLOOR

No downside potential for Bantrab's SR and SRF since they are at
the lowest level of the scale.

SENIOR DEBT - BANTRAB SENIOR TRUST

Bantrab Senior Trust ratings would be downgraded if Bantrab's VR is
downgraded.

NATIONAL RATINGS - FINTRAB

Fintrab's ratings could be downgraded if the ratings of Bantrab are
downgraded.

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

IDRs, VR AND NATIONAL RATINGS - BANTRAB

There is limited upside potential given that ratings are at the
sovereign level. Bantrab's IDRs and National Ratings could be
affirmed, and their Negative Outlooks revised to Stable, if the
impact of the economic disruption from the coronavirus outbreak
does not result in significant deterioration on its financial
metrics, especially in terms of asset quality and earnings and
profitability.

SUPPORT RATINGS and SUPPORT RATING FLOOR

There is limited upside potential for Bantrab's SR due to low
systemic significance and nonmaterial government ownership.

SENIOR DEBT - BANTRAB SENIOR TRUST

Changes in the note's Long-Term Rating are contingent upon rating
actions of Bantrab.

NATIONAL RATINGS - FINTRAB

The Rating Outlook of Fintrab could be revised to Stable if the
Ratings Outlook of its parent are revised to Stable from Negative.

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.

SUMMARY OF FINANCIAL ADJUSTMENTS

Pre-paid expenses and other deferred assets, plus the net asset
value of an insurance subsidiary were reclassified as intangible
and deducted from Fitch Core Capital.

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

The ratings of Bantrab Senior Trust and Financiera de los
Trabajadores, S.A. are driven by the ratings of Banco de los
Trabajadores.

ESG CONSIDERATIONS

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(ies), either due to their
nature or to the way in which they are being managed by the
entity(ies).

Financiera de los Trabajadores, S.A.

  - Natl LT A-(gtm); Affirmed

  - Natl ST F2(gtm); Affirmed

Banco de los Trabajadores

  - LT IDR BB-; Affirmed

  - ST IDR B; Affirmed

  - LC LT IDR BB-; Affirmed

  - LC ST IDR B; Affirmed

  - Natl LT A-(gtm); Affirmed

  - Natl ST F2(gtm); Affirmed

  - Viability bb-; Affirmed

  - Support 5; Affirmed

  - Support Floor NF; Affirmed

Bantrab Senior Trust

  - Senior unsecured; LT BB-; Affirmed


BANCO G&T: Fitch Affirms BB- LT IDRs, Outlook Negative
------------------------------------------------------
Fitch Ratings has affirmed Banco G&T Continental S.A.'s Long-Term
Foreign and Local Currency Issuer Default Ratings at 'BB-' and
Viability Rating at 'bb-'. Fitch has also affirmed the National
Scale ratings of the bank and its subsidiaries. The Rating Outlooks
of G&TC's Long-Term IDRs and National Long-Term ratings are
Negative.

KEY RATING DRIVERS

G&TC's IDRS, VR AND NATIONAL RATINGS

G&TC's IDRs and National ratings are driven by its intrinsic
profile, as reflected in its VR. The bank's VR is at the level of
the sovereign and is highly influenced by the weaker operating
environment in Guatemala, which could affect the business
activities and local consumption, therefore limiting the local
banks' performance and constraining G&TC's international ratings.
G&TC's IDRs and National Ratings' Negative Rating Outlook reflects
the higher sensitivity of its financial profile to operating
environment deterioration and the economic pressure arising from
the coronavirus pandemic.

G&TC's VR is also highly influenced by its sound company profile,
notably its strong franchise in the Guatemalan financial market
along with its corporate-oriented business although still moderate
compared with higher-rated regional peers. Fitch considers the
bank's solid position in the corporate segment would allow
maintaining relatively stable volume of operations in the less
dynamic business environment, although its performance could be
exposed to relevant deterioration on its larger corporate clients
and its increasing position in retail lending.

In Fitch's opinion, G&TC's loan book quality is constrained by its
relevant concentration in large corporate debtors whose credit
profile may deteriorate under the worsened business environment. As
of December 2019, the top-20 debtors represented 1.8x the bank's
Fitch Core Capital, albeit reduced from previous years. The
non-performing loans ratio was 2.4% and it slightly reduced during
the first months of 2020, but remains above to some similarly-rated
local peers. Fitch considers G&TC's risk controls and recent
underwriting policies changes effectiveness will be tested under
the current crisis and will be fundamental for containing potential
delinquency increases over the ratings horizon.

Although G&TC's profitability is commensurate to its
corporate-oriented business, its moderate levels remain lower than
similarly rated local peers and might experience relative pressure
from adverse economic conditions, Fitch says. As of December 2019,
G&TC's operating profits represented 1.4% of its RWAs, a higher
metric from increased interest income, lower interest expense and
improved operating efficiency. Fitch considers disrupted commercial
operations in the local market along potentially higher
deterioration on its corporate and midsized clients could carry
relevant profit reductions.

G&TC's capitalization improved during 2019 given the consistent
earnings retention and now it is relatively at same levels to those
of similarly rated local and international peers. However, its
capital remains limited by the relevant concentration of its
corporate loan book. Potential deterioration of its largest clients
and reductions on its profits under the weaker operating
environment would pose additional pressure to the bank's capital
levels over the short to medium term. As of December 2019, its FCC
ratio was 14.5% (2015-2018 average: 11.3%).

G&TC's strong deposits base and franchise along available wholesale
lines deliver a well-positioned funding profile to cope with the
challenges of the operating environment. As of December 2019, its
loan to deposit ratio was 58%, which favorably compares with some
similarly-rated local peers. Unlike its loan book, deposits come
mainly from individuals driving to moderate concentration levels.
G&TC holds a good liquidity position as its liquid assets
represented close to 73% of total deposits as of December 2019,
which represents a robust position for responding to liquidity
requirements. Also, the access to credit lines from third parties
is ample and the liquidity is also benefiting from the Guatemalan
Central Bank's initiative to inject liquidity into the financial
system.

G&TC'S SUPPORT RATING AND SUPPORT RATING FLOOR

G&TC's Support Rating of '4' reflects Fitch's opinion about the
limited probability of extraordinary support that the bank will
receive from the sovereign, if needed. Fitch's assessment of
support is based on the sovereign ability to provide support, as
reflected in its rating and the small relative size of the banking
system. The SR also reflects the bank's deposit-based funding
structure and its systemic importance in Guatemala. As of December
2019, the bank´s market share in deposits was around 15%.

The Support Rating Floor of 'B+' is one notch below the sovereign
rating of Guatemala and according to Fitch's criteria, indicates
the minimum level to which the entity's Long-Term IDR could fall as
long as Fitch's assessment of the sovereign support factors does
not change.

CONTICREDIT, FIN G&TC AND GTC'S NATIONAL RATINGS

G&T Conticredit S.A., Financiera G&T Continental, S.A. and GTC Bank
Inc.'s national ratings in Guatemala and GTC's Panamanian National
Ratings are based on Fitch's opinion of G&TC's ability and
propensity to support its subsidiaries, if needed. Fitch's opinion
of the support is based on the relevant role these subsidiaries
have on its parent's strategy and the significant reputational risk
that a default of one of them would pose to G&TC. As a result,
their Guatemalan scale ratings are at the same levels of G&TC's
national ratings. GTC's National Ratings in Panama also reflect the
potential support from G&TC and its risk profile relative to other
issuers in Panama and the local operating environment. The Negative
Rating Outlooks of these subsidiaries' long-term ratings mirror the
Negative Outlook of G&TC's ratings.

CONTICREDIT'S DEBT ISSUANCES NATIONAL RATINGS

Conticredit's senior debt issuances' national ratings are aligned
to those of their respective issuer. Their probability of default
is the same as of Conticredit as they do not have specific
collateral.

RATING SENSITIVITIES

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

G&TC's IDRS, VR AND NATIONAL RATINGS

  - G&TC's IDRs, VR and National Ratings could be downgraded if the
deterioration of its financial profile caused by the pandemic turns
out to be significantly more important than anticipated. G&TC's
ratings would also be downgraded in a scenario of a significant
deterioration of asset quality, which increases the bank's
impairment levels, and results in a sustained decline in the bank's
operating profits to risk weighted assets ratio consistently below
1% and FCC ratio continuously below 11%;

  - Ratings are also sensitive to a downgrade of the sovereign
rating.

G&TC'S SUPPORT RATING AND SUPPORT RATING FLOOR

  - G&TC's SR and SRF could be downgraded in the event of a
downgrade of Guatemala´s sovereign rating and reflecting a weaker
operating environment.

CONTICREDIT, FIN G&TC AND GTC'S NATIONAL RATINGS

  - The national ratings of Conticredit, Fin G&T and GTC could be
downgraded if G&TC's ratings are downgraded.

CONTICREDIT'S DEBT ISSUANCES NATIONAL RATINGS

  - Conticredit's senior unsecured debt national ratings would be
downgraded in case of negative rating actions on Conticredit's
National ratings.

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

G&TC's IDRS, VR AND NATIONAL RATINGS

  - There is limited upside potential given that ratings are at the
sovereign level. G&TC's IDRs and National Ratings Outlook could
revise to Stable, if the impact of the economic disruption from the
coronavirus outbreak does not result in significant deterioration
on its financial metrics, especially in terms of asset quality and
profitability;

  - Over the medium term, G&T's IDRs and VR could be upgraded in
the event of an upgrade of Guatemala´s sovereign rating and
improvement of the operating environment, especially if accompanied
by further improvements and stability in its asset quality and
profitability metrics

  - G&TC's National Scale Ratings could be upgraded only over the
medium term and after the current challenges around the operating
environment are overcome. The upgrade should reflect NPL metrics
consistently below 1.5% and operating profits metric sustainably
above 2%, while maintaining its current FCC ratio levels.

G&TC'S SUPPORT RATING AND SUPPORT RATING FLOOR

  - G&TC's SR and SRF could be upgraded in the event of an upgrade
of Guatemala´s sovereign rating and improvement of the operating
environment.

CONTICREDIT, FIN G&TC AND GTC'S NATIONAL RATINGS

  - The rating outlooks of Conticredit, Fin G&T and GTC could be
revised to Stable if G&TC's rating outlooks are revised to Stable
from Negative.

CONTICREDIT'S DEBT ISSUANCES NATIONAL RATINGS

  - Conticredit's senior unsecured debt would be upgraded in case
of positive rating actions on Conticredit's National ratings.

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.

SUMMARY OF FINANCIAL ADJUSTMENTS

Prepaid expenses and other deferred assets were reclassified as
intangible assets and were deducted from FCC since the agency
considers these to have low capacity to absorb losses. Impaired
loans were adjusted to reflect only loans that are overdue by 90
days or more to be consistent with Fitch's criteria and global
industry practices

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

G&TC's VR and IDRs are at the sovereign level and are highly
influenced by the weaker operating environment in Guatemala. G&TC's
subsidiaries' national ratings, G&T Conticredit, Financiera G&TC,
and GTC Bank, are based on G&TC's ability and propensity to provide
support.

ESG CONSIDERATIONS

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(ies), either due to their
nature or to the way in which they are being managed by the
entity(ies).

GTC Bank, Inc. (Guatemala)

  - Natl LT AA-(gtm); Affirmed

  - Natl ST F1+(gtm); Affirmed

G&T Conticredit, S.A. Natl

  - LT AA-(gtm); Affirmed

  - Natl ST F1+(gtm); Affirmed

  - Senior unsecured; Natl LT AA-(gtm); Affirmed

  - Senior unsecured; Natl ST F1+(gtm); Affirmed

Financiera G &T Continental, S.A.

  - Natl LT AA-(gtm); Affirmed

  - Natl ST F1+(gtm); Affirmed

GTC Bank, Inc. (Panama)

  - Natl LT A-(pan); Affirmed

  - Natl ST F1(pan); Affirmed

Banco G&T Continental S.A.

  - LT IDR BB-; Affirmed

  - ST IDR B; Affirmed

  - LC LT IDR BB-; Affirmed

  - LC ST IDR B; Affirmed

  - Natl LT AA-(gtm); Affirmed

  - Natl ST F1+(gtm); Affirmed

  - Viability bb-; Affirmed

  - Support 4; Affirmed

  - Support Floor B+; Affirmed


BANCO INDUSTRIAL: Fitch Affirms 'BB-/B' LT IDRs, Outlook Stable
---------------------------------------------------------------
Fitch Ratings has affirmed Banco Industrial, S.A.'s Long-Term
Issuer Default Rating at 'BB-', Short-Term IDR at 'B' and Viability
Ratings at 'bb-'. The Rating Outlook is Stable. Fitch has also
affirmed the National Long- and Short-Term Ratings of the bank and
its subsidiaries in Guatemala; Contecnica S.A., Financiera
Industrial, S.A. and Westrust Bank Limited at 'AA(gtm)' and
'F1+(gtm)'. BI Bank, S.A. National Ratings in Panama were affirmed
at 'BBB+(pan)' and 'F1(pan)'. The Rating Outlook for the National
Ratings is Stable.

KEY RATING DRIVERS

Industrial's VR is highly influenced by its strong company profile,
mirrored by its ample local franchise and growing regional
footprint in Central America. This benefits the bank's financial
performance and prospects in spite of Fitch's negative outlook on
the operating environment of Guatemala, which also highly
influences its VR. Fitch recognizes Industrial's large size and
ample geographic coverage in Guatemala, which provides the bank a
strong competitive position. In Fitch's view, the bank may benefit
from deposit stability during the ongoing crisis.

Industrial's VR also considers its improving profitability, good
asset quality and increasing capital metrics. While the expected
impact of the coronavirus pandemic is an increase in non-performing
loans, the bank's low delinquency rate, with NPLs close to 1%
compares well with peers, and ample loan loss reserves coverage
limit the potential impact of asset quality deterioration on the
bank's performance.

Industrial profitably will be pressured during the coronavirus
pandemic. The bank's medium-term performance is sensitive to
individual client deterioration due to its concentrated corporate
portfolio, while lower economic activity will immediately impact
income from fees and commissions. Further pressures in
profitability may come from limited growth in consumer segments and
additional loan loss provisions for deteriorated loans.

Industrial's strong local franchise benefits a low cost and
diversified funding structure, bases on time and savings deposits
from local costumers, in addition to a diversified pool of funding
resources including a DPR program with a long track record and loan
from international banks and multilaterals. In Fitch's view,
Industrial low funding cost may partly offset lower interest
income.

Industrial's positive trend in capital position provides a buffer
to absorb the potential pressure on profitability as a result of
the coronavirus pandemic. The bank consistently increased its
capital position, measured with the Fitch Core Capital (FCC),
reaching a level close to 12% as of December 2019. The capital
position would decrease if a prolonged restriction to economic
activity drives operating losses; however, it is likely to remain
consistent with the current rating given the bank's additional loss
absorption capacity from increased loan loss reserves and hybrid
securities.

SUPPORT RATING AND SUPPORT RATING FLOOR

Industrial's Support Rating of '4' reflects Fitch's opinion of the
limited probability of extraordinary support that the bank will
receive from the sovereign if needed. Fitch's assessment of support
is based on the sovereign's ability to provide support, as
reflected in its rating and the small relative size of the banking
system. Fitch's assessment of the sovereign's propensity to support
the bank mainly considers Industrial's systemic importance in
Guatemala. Fitch's support assessment also considers the bank's
deposit-based funding structure.

Industrial's Support Rating Floor is one notch below the sovereign
rating of Guatemala and according to Fitch's criteria, indicate the
minimum level to which the entity's Long-Term IDR could fall as
long as Fitch's assessment of the support factors does not change.

SENIOR DEBT, SUBORDINATED DEBT AND OTHER HYBRID SECURITIES

Industrial Senior Trust notes ratings are in line with their banks'
IDR, reflecting that are the senior unsecured obligations and that
the likelihood is the same as Industrial's.

Industrial's subordinated Tier I capital notes are rated four
notches below the bank's VR given its deep subordination status and
discretionary coupon omission.

Industrial Subordinated Trust's notes, a special issuance vehicle
of Industrial are two notches below Industrial's VR, reflecting the
subordinated status, ranking junior to all Industrial's present and
future senior indebtedness, pari passu with all other unsecured
subordinated debt and senior to Industrial's capital and tier I
hybrid securities.

SUBSIDIARIES AND AFFILIATED COMPANY

The National Ratings for the subsidiaries in Guatemala: Westrust,
Contecnica and FISA are aligned with the National Ratings of
Industrial. This reflects Fitch's opinion of the bank's strong
propensity and ability to provide support to its subsidiaries if
required. Fitch's assessment of the bank's propensity to support
the subsidiaries considers as a high importance factor the
important role these entities have for Industrial's local business
model and strategy. Fitch also recognizes the implication of a
default of these subsidiaries on Industrial's reputation, the high
level of integration between the bank and its subsidiaries, the
high size of ownership stake and the good performance that each one
has shown in the market where they participate.

In turn, BI Bank's National Ratings in Panama reflect the potential
support from its sister company, Banco Industrial through their
holding company Bicapital Corporation. Fitch's support assessment
considers the implication of a default of this subsidiary on the
reputation of its parent and Industrial's.

RATING SENSITIVITIES

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

  -- A downgrade of the sovereign rating and country ceiling.

  -- Industrial's IDRs and VR would be downgraded if sustained
deterioration in its asset quality and financial performance drives
its FCC ratio to a level consistently below 10%.

  -- Industrial SR and SRF could be downgraded in the event of a
downgrade of Guatemala's sovereign rating and reflecting a weaker
operating environment.

  -- IST-I, ISnT and ISbT's ratings would be downgraded if
Industrial's VR is downgraded. The current relativity to
Industrial's VR will be maintained.

  -- Guatemalan subsidiaries (Westrust, Contecnica and FISA) could
be downgraded in the event of a downgrade in Industrial's National
Rating.

  -- BI Bank in Panama could be downgraded in case of a lower
Industrial's ability, as reflected by its IDR, and propensity to
provide support.

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

  -- The IDRs and National Ratings of Industrial and its
subsidiaries and its issuances (ISnT-1, IST-I, ISnT) have limited
upside potential given the current sovereign rating, country
ceiling and challenging operating environment.

  -- Industrial's IDRs and VR could be upgraded in the event of an
upgrade of Guatemala's sovereign rating and improvement of the
operating environment.

  -- Guatemalan subsidiaries (Westrust, Contecnica and FISA) could
be upgraded in the event of an upgrade in Industrial's National
Rating.

  -- BI-Bank in Panama could be upgraded in case of positive
changes in Industrial's ability to support it, as reflected by its
Foreign Currency IDR, and propensity to provide support.

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.

SUMMARY OF FINANCIAL ADJUSTMENTS

Banco Industrial: Prepaid expenses and other deferred assets were
reclassified as intangible assets and were deducted from FCC since
Fitch considers these to have low capacity to absorb losses.

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

The ratings of the subsidiaries of Banco Industrial: Contecnica,
Westrust, BI Bank and Financiera Industrial are driven by support
from Banco Industrial; while the ratings of the special purpose
vehicles Industrial Senior Trust and Industrial Subordinated Trust
are linked to the rating of Banco Industrial.

ESG CONSIDERATIONS

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(ies), either due to their
nature or to the way in which they are being managed by the
entity(ies).

BI Bank, S.A.

  - Natl LT BBB+(pan); Affirmed

  - Natl ST F1(pan); Affirmed

Contecnica S.A.

  - Natl LT AA(gtm); Affirmed

  - Natl ST F1+(gtm); Affirmed

Banco Industrial, S.A.

  - LT IDR BB-; Affirmed

  - ST IDR B; Affirmed

  - LC LT IDR BB-; Affirmed

  - LC ST IDR B; Affirmed

  - Natl LT AA(gtm); Affirmed

  - Natl ST F1+(gtm); Affirmed

  - Viability bb-; Affirmed

  - Support 4; Affirmed

  - Support Floor B+; Affirmed

  - Subordinated; LT CCC+; Affirmed

Industrial Senior Trust

  - Senior unsecured; LT BB-; Affirmed

Industrial Subordinated Trust

  - Subordinated; LT B; Affirmed

Financiera Industrial, S.A.

  - Natl LT AA(gtm); Affirmed

  - Natl ST F1+(gtm); Affirmed

Westrust Bank (International) Limited

  - Natl LT AA(gtm); Affirmed

  - Natl ST F1+(gtm); Affirmed




=============
J A M A I C A
=============

JAMAICA: Most Members Not Ready for June 1 Return of Employees
--------------------------------------------------------------
RJR News reports that the Jamaica Employers Federation (JEF) says
feedback received from its members indicate that most will not be
ready with preparations for the June 1 return of employees to the
workplace.

Businesses are expected to operate within the guidelines of
physical distancing and infection prevention and control amid the
continued COVID-19 threat, according to RJR News.

JEF President David Wan said because many of the employers are not
yet able to have full compliance with the Health Ministry's
guidelines such as the setting up of hand sanitization stations,
some workers, depending on their job function, would be allowed to
continue to work from home, where it is more efficient to do so or
until the businesses are prepared, the report notes.

Mr. Wan said many businesses are also willing to accommodate
workers who have children at home by allowing them to "continue
working remotely, wherever possible, until school resumes," the
report relays.

His comments were included in a media release issued by the Private
Sector Organisation of Jamaica (PSOJ), in which it encouraged
employers to exercise compassion and collaboration to facilitate as
much as possible, work from home or flexible working arrangements,
the report discloses.

                                PSOJ

In the meantime, the Private Sector Organisation of Jamaica (PSOJ)
has said it is concerned employers might see the expiration of the
stay at home orders as a directive to call employees back into the
workplace without adequate safety measures, the report relays.

PSOJ President Keith Duncan said businesses which are not currently
able to provide proper protection for the workforce and customers
must invest in the required changes before reopening, the report
notes.

He explained that going back to work is not about a date, but state
of readiness, the report notes.

Mr. Duncan has encouraged businesses to make use of flexible work
arrangements, including work from home, telecommuting and a
flexible work week to facilitate employees, the report adds.

As reported in the Troubled Company Reporter-Latin America, S&P
Global Ratings revised on April 16, 2020 its outlook on Jamaica to
negative from stable. At the same time, S&P affirmed its 'B+'
long-term foreign and local currency sovereign credit ratings, its
'B' short-term foreign and local currency sovereign credit ratings
on the country, and its 'BB-' transfer and convertibility
assessment.

The TCR-LA also reported that Fitch Ratings, in April 2020, revised
Jamaica's Outlook to Stable from Positive. The Long-Term
Foreign-Currency Issuer Default Rating is affirmed at B+. The
Outlook change reflects the shock to Jamaica from the coronavirus
pandemic, which is expected to lead to a sharp contraction in its
main sources of foreign currency revenues: tourism, remittances and
alumina exports.




===========
M E X I C O
===========

CEMEX SAB: Fitch Lowers LT IDRs to 'BB-', Outlook Negative
----------------------------------------------------------
Fitch Ratings has downgraded CEMEX, S.A.B. de C.V.'s Foreign- and
Local-Currency Issuer Default Ratings to 'BB-', from 'BB'. The
Outlook is Negative.

The downgrade reflects its expectations that the company's capital
structure will weaken beyond its rating sensitivities for a
sustained period. Fitch believes this will be caused by lower
demand for cement in Mexico and the U.S. due to a downturn in
construction spending caused by a sharp economic contraction in
both countries.

The Negative Outlook reflects its expectation that the downturn in
construction activity will extend into 2021. Fitch's rating case
forecasts a deep global recession in 2020, which will affect all of
CEMEX's markets, followed by a partial economic recovery in 2021.
Fitch forecasts CEMEX's net debt/operating EBITDA ratio will rise
to around 6.0x on a pro forma basis in 2020, from 4.6x in 2019,
with announced asset sales. Leverage is projected to decline to
about 5.7x by the end of 2021 and to be at or below 5.2x in 2022 as
demand recovers and margins improve.

KEY RATING DRIVERS

Difficult Mexican Market: Fitch expects Mexican cement consumption
to drop by low-double-digits in 2020, then recover by
low-single-digits in 2021, following a gradual pickup in
construction activity in June 2020, which is contingent on state
measures. Cement demand declined by 7% in 2019 and by 2% in 3M20
after a severe weakening in construction activity in 2019 was
triggered by a drop in business confidence and paralyzed
construction activity in Mexico City due to permitting delays.
Mexico's formal construction activity was also fully suspended for
about eight weeks during April and May 2020 due to the coronavirus
pandemic. Hardware stores remained open, although unevenly across
states.

U.S. Market Increasingly Pressured: Cement demand through April
2020 remained stable, except in the U.S.'s north east, as
construction in most states was deemed essential. However, Fitch
expects the remainder of the year to be more challenging, with the
value of residential construction spending plunging by double
digits on lower new-housing demand and an extension of the backlog
in non-residential construction due to delays and disruption.
Public construction should be unaffected.

Fitch believes the recovery in 2021 will be tempered by a
contraction in commercial construction activity as the backlog
fades, and by a lag effect of a slowdown in residential housing
starts near the end of 2020. Public construction activity could
slow in 2021 due to lower fuel taxes and the stretched budgets of
state and local governments. The volatility of state and federal
spending on highway construction, particularly during periods
without long-term highway bills in place, is also a risk.

Weak EBITDA Generation: Fitch forecasts EBITDA to fall to USD1.6
billion in 2020, as cement demand in Mexico plummets and prices in
US-dollar terms contract. Production and distribution have been
most affected in Panama, Colombia, the U.K., Spain, France and the
Philippines, where lockdowns have been most severe; the lower
volume in these markets is included in its forecast. CEMEX's cash
flow was weak prior to the pandemic, with EBITDA declining to
USD2.1 billion in 2019, from USD2.5 billion in 2017 and 2018. Steep
volume declines in Mexico accounted for about USD250 million of the
fall, with the remainder due to weak performance in several markets
across Central America.

Pressured Credit Metrics: Fitch expects EBITDA to rebound to USD1.7
billion in 2021, from its forecast of USD1.6 billion in 2020. These
figures exclude IFRS-16 effects, which represented about USD350
million of EBITDA reported by CEMEX in 2019. Fitch forecasts EBITDA
generation in Mexico, which is the backbone of CEMEX's cash flow
generation and accounted for 37% of reported EBITDA in 2019, to
fall to about USD700 million in 2020, from USD969 million in 2019,
and projects net debt/EBITDA to rise to 6.0x in 2020 and trend
toward 5.0x in 2022. The company has a cash position of
approximately USD1.7 billion, after raising USD1.4 billion from a
committed facility and other bank credit lines in March and April.
The majority of this debt is due in 2022.

Foreign-Currency Exposure: CEMEX reports that 92% of total debt was
denominated in hard currency in 2019, compared with about 35% of
EBITDA generated in hard currency. Its main hard-currency
contributors are the operations in the U.S., the U.K. and several
euro-based countries. Various fuel and energy prices, which tend to
be U.S. dollar-denominated, are an important portion of cement
production costs and are declining. CEMEX employs hedging
instruments to mitigate currency risk in costs and revenue. The
company has historically been successful in maintaining U.S. dollar
prices after steep currency depreciation in Mexico, its main
market. However, sharp price increases during 2015-2017 and, more
recently, a market rejection to absorb prices in line with
inflation in 2018-2019, suggest that prices measured in U.S.
dollars could lag for a number of years.

Strong Business Position: CEMEX is one of the world's largest
cement producers, selling 63 million metric tons of cement during
2019. It is the leading cement producer in Mexico and one of the
top producers in the U.S. It also has a large global presence in
ready mix and aggregates, with sales of 50 million cubic meters of
ready mix and 135 million metric tons of aggregates in 2019.
CEMEX's main geographic markets, in terms of EBITDA, include Mexico
(37%), Central and South America (15%), the U.S. (24%), Europe
(16%), and Asia, Middle East and Africa (8%).

DERIVATION SUMMARY

CEMEX's ratings reflect its diversified business position across
several large markets, notably Mexico, the U.S. and some European
countries, its vertical integration and economies of scale, and
positive FCF generation. The company is the leading cement producer
in Mexico and one of the top producers in the U.S. and the largest
in Spain.

CEMEX's closest comparisons are large global cement producers, such
as LafargeHolcim Ltd (BBB/Stable) and HeidelbergCement AG
(BBB-/Negative), with whom CEMEX competes in several markets.
LafargeHolcim has the broadest geographic diversification, with
operations spanning Europe (25% of EBITDA), North America (25%),
the Middle East and Africa (12%), Latin America (16%), and Asia
(27%). This compares with HeidelbergCement at 30% of EBITDA
generated in the U.S. and Canada, while its exposure to Europe is
40%, Asia 20% and Africa 10%. Latin America is CEMEX's largest
region, representing about 50% of EBITDA, of which about 35% is
generated in Mexico. The U.S. represented about 25% of CEMEX's
EBITDA, with the remainder from Europe at about 15% and, to a
lesser extent, Israel and the Philippines.

CEMEX's broader geographic diversification and larger scale compare
well with regional building materials companies, such as Martin
Marietta Materials, Inc. (BBB/Negative) and cement producers
Votorantim Cimentos S.A. (VCSA) (BBB-/Stable) and InterCement
Participacoes S.A. (CCC-). VCSA, which has a dominant position in
Brazil and operations in the U.S. and Canada and throughout the
world, is not a direct peer, as its rating is tied to that of
Votorantim S.A. (BBB-/Stable), which includes mining, utilities and
financial services subsidiaries. Martin Marrietta is focused in the
U.S. and the Caribbean. InterCement's portfolio is weighted heavily
toward volatile, emerging market countries, such as Brazil,
Argentina, Paraguay and Mozambique, which creates cash flow
uncertainty and higher exposure to foreign-currency risk when
compared with CEMEX.

From a financial perspective, CEMEX's ratings reflect its weaker
credit metrics when compared with global peers, which are rated
higher. Fitch projects its net leverage at around 5.0x in 2022,
which is high for a 'BB-' cement company with a global presence.
CEMEX's global scale, business position and funding access are all
positive factors, as is the company's record of reducing debt.
Fitch projects CEMEX's FFO fixed-charge coverage at below 3.0x,
with is lower than the 3.5x that is typical for a 'BB' category
building materials issuer.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within its Rating Case for CEMEX:

  - Mexico cement sales volume declines to low-double-digits in
2020, then recovers by low-single-digits in 2021 and 2022;

  - U.S. cement sales volume declines by high-single-digits in 2020
and does not recover in 2021 or 2022;

  - EBITDA of around USD1.6 billion in 2020, USD1.7 billion in 2021
and USD1.8 billion in 2022;

  - Capex declines to USD400 million in 2020, then rises to about
USD800 million in 2020 and 2021;

  - No dividends over the long term;

  - Mexican peso to U.S. dollar exchange rate at around 22.

RATING SENSITIVITIES

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

  - Net debt/EBITDA below 4.0x;

  - Rising cement demand in Mexico and the U.S. that significantly
strengthens EBITDA expectations;

  - A strengthening of CEMEX's business position in markets outside
Mexico that leads to expectations of higher operating cash flow
generation.

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

  - A weakening of operating cash flow and free cash flow
expectations so that net debt/EBITDA is forecast at above 5.0x
beyond 2022;

  - Expectations of a pronounced deterioration of Mexico's economic
environment that weakens EBITDA prospects.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate
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.

LIQUIDITY AND DEBT STRUCTURE

Sound Liquidity: CEMEX reacted to the pandemic by drawing USD1.5
billion in March and April 2020 under its committed credit facility
and other credit lines. The funds will be used to bolster the
company's cash position, which stood at USD1.7 billion on a pro
forma basis as of March 2020 when accounting for these funds. This
compares with debt amortization of only USD200 million in 2020 and
USD600 million in 2021. The company's satisfactory banking
relationships allow it to modify the terms of the financial
covenants of its syndicated credit agreement.

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

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(ies), either due to their
nature or to the way in which they are being managed by the
entity(ies).

CEMEX, S.A.B. de C.V.

  - LT IDR BB-; Downgrade

  - LC LT IDR BB-; Downgrade

  - Natl LT A-(mex); Downgrade

  - Natl ST F1(mex); Affirmed

  - Senior secured; LT BB-; Downgrade

C10-EUR Capital (SPV) Limited

  - Senior secured; LT BB-; Downgrade

Cemex Finance LLC

  - Senior secured; LT BB-; Downgrade

Cemex Materials, LLC

  - Senior secured; LT BB-; Downgrade

C10 Capital (SPV) Limited

  - Senior secured; LT BB-; Downgrade

C8 Capital (SPV) Limited

  - Senior secured; LT BB-; Downgrade

C5 Capital (SPV) Limited

  - Senior secured LT BB-; Downgrade


FORD CREDIT: Moody's Alters Outlook on Ba2 Unsec. Rating to Neg.
----------------------------------------------------------------
Moody's de Mexico has confirmed Ford Credit de Mexico, S.A. de
C.V., Sociedad Financiera de Objetivo Multiple, Entidad Regulada's
backed long-term global local currency senior unsecured debt
ratings of Ba2, and its backed long-term Mexican National Scale
senior unsecured debt ratings of A2.mx. The outlook changed to
negative from ratings under review.

Ford Credit de Mexico's backed short-term Mexican National Scale
senior unsecured debt program rating of MX-1 was also confirmed.

In the same rating action, Moody's affirmed the company's backed
short-term global local currency senior unsecured debt program
rating of Not Prime.

The rating agency changed the outlooks on the debt ratings to
negative from ratings under review. Subsequently, Moody's has also
withdrawn the outlooks on the debt ratings for its own business
reasons.

The following ratings were confirmed:

Ford Credit de Mexico S.A de C.V, SOFOM, ENR (600065473)

  Backed long-term global local currency senior unsecured debt
  ratings of Ba2, outlook changed to negative, from rating under
  review (FORD 19, FORD 19-2)

  Backed long-term Mexican National Scale senior unsecured debt
  rating of A2.mx (FORD 19, FORD 19-2)

  Backed short-term Mexican National Scale senior unsecured debt
  program rating of MX-1

The following rating was affirmed:

  Backed short-term global local currency senior unsecured debt
  program rating of Not Prime

Outlook action: Outlook changed to negative from ratings under
review.

RATINGS RATIONALE

The confirmation of Ford Credit de Mexico's ratings with negative
outlook follows the confirmation of the ratings of Ford Motor
Credit Company LLC (FMC, senior unsecured rating of Ba2, negative
outlook) with a negative outlook on 27 May 2020, which, in turn,
follows a similar action on its own parent, Ford Motor Company
(Ford, senior unsecured debt ratings of Ba2, negative), on the same
date.

The rapid and widening spread of the coronavirus outbreak, the
deteriorating global economic outlook and falling oil prices are
creating a severe and extensive credit shock across many sectors,
regions and markets. Moody's believes, that Ford Credit de Mexico's
parent, FMC, along with other US auto captive finance companies, is
fairly well positioned to weather a level of shock in the system
absent meaningful declines in used car prices and a rapid and
unexpected deterioration of liquidity at Ford. Moody's regards the
coronavirus outbreak as a social risk under its environmental,
social and governance framework, given the substantial implications
for public health and safety.

Ford Credit de Mexico's ratings reflect a full, irrevocable and
unconditional guarantee (i.e. credit substitution) from FMC to any
issuance under the company's long- and short-term revolving debt
program (Programa de Certificados Bursatiles de Corto y Largo Plazo
con Caracter Revolvente) of up to MXN20 billion dated September
2016. The terms and conditions of the parental guarantee fulfill
eight of Moody's nine core principles for credit substitution,
namely (i) it is irrevocable and unconditional; (ii) it promises
full and timely payment of the underlying obligations; (iii) it
covers payment -- not merely collection; (iv) it covers preference
payments, fraudulent conveyance charges, and other payments that
have been rescinded, repudiated, or "clawed back"; (v) the
guarantor waives all defenses; (vi) its term extends as long as the
term of the underlying obligation; (vii) it is enforceable against
the guarantor, and (viii) it is governed under New York law, a
jurisdiction hospitable to the enforcement of guarantees.

The guarantee does not satisfy one of Moody's core principles of
Credit Substitution, specifically that the transfer, assignment or
amendment of the guarantee by the guarantor should only be
permissible if it does not result in a deterioration of the credit
support provided by the guarantee. Nevertheless, this weakness is
offset by the strategic fit and importance of Ford Credit de
Mexico's operation for FMC and Ford, the fact that the companies
share the name, and the reputational risk that a default by Ford
Credit de Mexico would represent for FMC and Ford.

Moody's regards the coronavirus pandemic as a social risk under its
ESG framework, given the substantial implications for public health
and safety. Please see Moody's Environmental risks and Social risks
heatmaps for further information. Its rating actions reflect the
impact on Ford Credit of the breadth and severity of the shock, and
Moody's view of its ability to withstand it under its current
assumptions.

The global spread of the coronavirus is resulting in simultaneous
supply and demand shocks. Moody's expects these shocks to
materially slow economic activity, particularly in the first half
of this year. Moody's forecasts a decline in Mexico's GDP of about
7% in 2020 followed by a modest recovery for 2021.

The A2.mx national scale rating is the sole Mexican national scale
rating corresponding to the Ba2 global scale rating.

The MX-1 is the sole short-term Mexican national scale rating
corresponding to the A2.mx long-term Mexican national scale
rating.

Given that Ford Credit de Mexico's ratings is based upon FMC's
guarantee, its outlook changed to negative from ratings under
review.

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

The ratings of Ford Credit de Mexico are unlikely to be upgraded
given its negative outlook. In turn, Ford Credit de Mexico's
ratings will be downgraded if the senior unsecured ratings of FMC
were to be downgraded, in line with FMC's negative outlook.

The principal methodology used in these ratings was Rating
Transactions Based on the Credit Substitution Approach: Letter of
Creditbacked, Insured and Guaranteed Debts published in May 2017.

The period of time covered in the financial information used to
determine Ford Credit de Mexico, SA de CV, SOFOM, ENR's rating is
between January 1, 2016 and March 31, 2020 (source: Financial
Audited Statements of 2016, 2017, 2018 ,2019, First quarter interim
financial statements Q1 2020).




=============
U R U G U A Y
=============

ACI AIRPORT: Fitch Rates $180.9MM Sec. Notes 'BB+', Outlook Neg.
----------------------------------------------------------------
Fitch Ratings has assigned a 'BB+' rating to ACI Airport
SudAmerica, S.A.'s $180.9 million senior secured notes due in 2032
in exchange for the existing $200 million ($186 million
outstanding) senior secured notes. The Rating Outlook for the new
notes is Negative.

The exchange offer resulted in 93.6% of the existing notes'
outstanding amount being tendered. The amount of USD180.9 million
of the new notes refers to the USD174.1 million exchanged plus
USD6.9 million of interest accrued. Fitch's rating case average
debt service coverage ratio remained at 1.3x, and peak leverage
marginally decreased to 18.4x in 2020 from the expected 18.8x .

Fitch also upgraded the rating of the existing notes to 'BB+' from
'BB' and removed them from Rating Watch Positive. The Outlook is
Negative. The upgrade reflects the absence of liquidity shortfalls
over the short to medium term in Fitch's rating case as a
consequence of the successful exchange offer.

RATING RATIONALE

The ratings are driven by Carrasco International Airport's
strategic but modest traffic base and its strong O&D share of
passenger traffic, coupled with a fully amortizing and fixed-rate
debt. Structural subordination to Puerta del Sur S.A.'s (PDS or the
opco) debt is mitigated by the very low likelihood of the
dividends' lockout until 2022 and by a springing guarantee for only
the new notes from then onward. In Fitch's rating case, the minimum
DSCRs are 0.7x in 2022 and 1.1x in 2023, which constrains the
rating to non-investment grade. Average DSCR is 1.3x and maximum
leverage, measured by net debt/EBITDA, is 18.4x in 2020, but
returns to below 5.0x from 2022 onward.

The Negative Outlook of the existing and new notes reflects
concerns about the duration of the coronavirus pandemic and its
effects on traffic volumes over the next few years. Fitch did not
consider the exchange offer as a debt-distressed exchange because
it did not impose a material reduction in terms compared with the
original contractual terms.

KEY RATING DRIVERS

Main Airport in a Country with Modest Catchment Area [Revenue Risk
- Volume: Midrange]:

Located in Uruguay's capital city, MVD is the main international
gateway to Uruguay, with approximately 85% of the country's flights
and a catchment area with 3.4 million people. MVD is almost
exclusively an O&D airport, with less than 1% of passengers
transferring to other destinations. CAGR for 2000-2019 was 3.6%,
despite Uruguay's sovereign crisis in 2000-2003 and the 2012
bankruptcy of the country's flagship carrier, Pluna, which led to
traffic losses of 19.0% in both periods. The carrier concentration
is considered moderate, with Latam Airline Group S.A. (D)
accounting for 33% of the passengers.

Inflation and Exchange-Adjusted Tariffs [Revenue Risk - Price:
Midrange]:

Revenues are 95% denominated in U.S. dollars, with aeronautical
revenues adjusted by a global index that considers FX and inflation
rates. Tariffs do not decrease under the adjustment scheme, and
increases must be approved by the Uruguayan government pursuant to
a decree. No increase in tariffs is assumed over the life of the
concession in Fitch's cases. An additional tariff -- Security
Tariff (Tarifa de Seguridad) -- was set by the Minister of Finance
to fund the installation of the SISCA System (Sistema Integral de
Seguridad Y Control Aerorportuario), a new security system at the
airport. The tariff was set at USD5.76 per passenger, and has been
charged to the users since February 2018.

No Significant Investments Needed [Infrastructure Development &
Renewal: Stronger]:

The airport's current capacity of 4.5 million passengers per year
is well below Fitch's rating case forecast of 2.4 million
passengers at concession end. Under the amended concession
agreement, which extended the term of the concession through 2033;
the new taxiway construction (USD10 million) was extended until the
end of the concession, with no other significant mandatory
investments needed in the remaining term. Additional investments
related to the SISCA System are fully funded by the new security
tariff charged to the users since February 2018, and are therefore
neutral to the rating.

Subordinated Fixed-Rate Amortizing Issuance [Debt Structure:
Midrange]:

The new notes aim to alleviate liquidity pressures in the short
term in light of the coronavirus outbreak. Under the new notes, ACI
is entitled to extend and defer up to three installments of
principal and interest of the existing notes. The deferred amount
will be incorporated to the notes outstanding balance and its
amortization schedule will be the same as the existing notes.

Both existing and new notes are fixed rate and fully amortize over
the life of the debt. A springing guarantee covenant requires the
opco to issue a guarantee only for the new note's debt service
following the payment in full of opco debt, which is expected to
occur in 2022. The existing notes will no longer be covered by the
guarantee from the opco. Cash flow available for debt service for
both notes is structurally subordinated to the notes issued at the
opco level and subject to dividend distribution tests through
maturity of the opco notes in October 2022. The existing notes also
benefit from an irrevocable standby LOC that supports the
obligations related to six months' debt service reserve account,
while the new notes count with such security only after May 2023.

Financial Summary:

In Fitch's rating case, the minimum DSCR is 0.7x in 2022, while the
average DSCR in 2021-2031 is 1.3x.The lock-up distance ratio of
2.3x on average from 2021 to 2022 (DSCR at opco level over lock-up,
1.70x) does not result in a rating constraint. ACI reaches peak net
debt/EBITDA of 18.4x in 2020, decreasing to below 5.0x from 2022
onward.

PEER GROUP

Sociedad Concessionaria Operadora Aeroportuaria Internacional,
S.A., the concessionaire of El Dorado International Airport in
Bogota (senior secured notes BBB-/Rating Watch Negative) is ACI's
closest peer in Fitch's portfolio. Both airports are the main
gateways in their respective countries, but OPAIN has a bigger and
much more stable passenger profile and does not present any
liquidity shortfall in Fitch's rating case, which justifies OPAIN's
higher rating, despite the lower average DSCR of 1.2x at OPAIN,
versus 1.3x at ACI. OPAIN's RWN reflects a greater number of DSCRs
below the 1.2x threshold over the debt term compared with the prior
review, which is below the range for the rating category according
to the applicable criteria.

RATING SENSITIVITIES

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

  -- The Negative Outlook may be revised to Stable upon the
identification of clear signals of a sustained traffic recovery.

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

  -- Difficulties in preserving liquidity;

  -- Traffic reduction in 2020 greater than 50%, along with the
expectation of a slow and extended recovery.

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.

TRANSACTION SUMMARY

In light of the coronavirus outbreak and the negative effect on
passenger traffic, ACI exchanged 93.6% the existing notes for new
notes, which sets forth May 2020's principal and interest deferral
and allows for the November 2020 and May 2021 debt service deferral
as well.

The new notes are pari passu with the existing notes and have a
6.875% fixed interest rate for the current outstanding amount and
an additional of 100bps applicable over the deferred installments.

FINANCIAL ANALYSIS

As a result of the negative environment facing airports, Fitch
revised its key enplaned passenger assumptions into three new
cases. A full description of these scenarios can be found in Fitch
Updates Coronavirus Scenarios for Latin American Airports.

SECURITY

The security package supporting the new notes is typical for
project financings and includes a pledge of 100% of the shares of
the opco and a covenant to issue a guarantee from the entity; a
pledge of 100% of the shares of Cerealsur S.A., direct owner of
PDS's shares, and a guarantee from the entity; all of the issuer's
property; and all present and future payments, proceeds and claims
of any kind with respect to the foregoing.

The new notes include a springing guarantee covenant, which
requires the opco to issue a guarantee of the rated debt following
the payment in full of the opco debt in October 2022. The rated
debt will therefore become pari passu with all senior unsecured
debt at the opco because of the guarantee.

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

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(ies), either due to their
nature or to the way in which they are being managed by the
entity(ies).



                           *********


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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