/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/200618.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Thursday, June 18, 2020, Vol. 21, No. 122 Headlines B R A Z I L CIELO SA: Moody's Affirms 'Ba1' Corp. Family Rating CIELO SA: Moody's Affirms Ba1/Aaa.br Ratings on BRL3-Bil. Debenture EMBRAER SA: Egan-Jones Lowers Sr. Unsecured Debt Ratings to B+ EMBRAER SA: S&P Cuts ICR to 'BB+' on Lower Aircraft Deliveries NEXA RESOURCES: Moody's Rates New Senior Unsecured Notes 'Ba2' NEXA RESOURCES: S&P Rates New $500MM Unsec. Notes Due 2028 'BB+' C H I L E LATAM AIRLINES: Talks for $1.5BB Loan Ongoing, Sources Say C U B A CUBA: Coronavirus Crisis Deepens Chronic Economic Woes D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: High Temperature, Oversupply Affect Egg Market DOMINICAN REPUBLIC: Low Farm Egg Prices Doesn't Reach Consumers J A M A I C A [*] JAMAICA: 3 Providers Authorized to Offer Retail Payment Service M E X I C O GRUPO AEROMEXICO: Egan-Jones Lowers FC Sr. Unsecured Rating to B- OPERADORA DE SERVICIOS MEGA: S&P Affirms 'BB-' LT Global Scale ICR P U E R T O R I C O MMM HOLDINGS: Moody's Rates $20MM Incremental Debt 'B1' U R U G U A Y NAVIOS SOUTH: S&P Assigns 'B' Rating on Senior Secured Notes V E N E Z U E L A VENEZUELA: Richest Oil Reserves Now Tapped by Single Rig X X X X X X X X [*] LATAM: Must Restart Air Travel by July to Avoid Bankruptcies [*] LATAM: OECD Sees Deeper Recession if Virus Hits Again - - - - - =========== B R A Z I L =========== CIELO SA: Moody's Affirms 'Ba1' Corp. Family Rating --------------------------------------------------- Moody's Investors Service affirmed Cielo S.A.'s Ba1 corporate family rating and the Ba1 ratings on the senior unsecured notes issued by Cielo and the backed senior unsecured notes issued by Cielo USA Inc. All outlooks remained stable. Affirmations: Issuer: Cielo S.A. Corporate Family Rating, Affirmed Ba1 Senior Unsecured Regular Bond/Debenture, Affirmed Ba1 Issuer: Cielo USA Inc. Gtd Senior Unsecured Regular Bond/Debenture, Affirmed Ba1 Outlook Actions: Issuer: Cielo S.A. Outlook, Remains Stable Issuer: Cielo USA Inc. Outlook, Remains Stable RATINGS RATIONALE Cielo's Ba1 rating continues to reflect its dominant position in the Brazilian cards and electronic payments industry and broad footprint in the large Brazilian territory. Moody's also takes into consideration the favorable long-term growth fundamentals for the payment sector in Brazil, as well as the close business support from its main shareholders, Banco do Brasil S.A. (BB, Ba2 stable) and Banco Bradesco S.A. (Bradesco, Ba2 stable). The ratings also incorporate Cielo's strong liquidity profile and conservative financial policies. Moody's estimates Cielo will be able to return to adequate credit metrics once the COVID-19 pandemic negative economic impacts reduce. In 2020, Moody's expects the company's EBITDA to drop to BRL2.9 billion from BRL4.3 billion in 2019, with EBITDA margin reducing to 24.4% from 34.5%, driving leverage up along with additional debt to support a higher cash balance during the crisis. The rapid and widening spread of the coronavirus outbreak, deteriorating global economic outlook, falling oil prices, and asset price declines are creating a severe and extensive credit shock across many sectors, regions and markets. The combined credit effects of these developments are unprecedented. The card processing sector will observe a considerable slowdown in transaction volumes in Brazil, from an average growth of 15.2% in the last 3 years to 3.0% in 2020 according to its projections. Moreover, Moody's expects a challenging environment for consumer related businesses with a sharp decrease in retail sales, deterioration in consumer confidence, and higher delinquency leading to lower credit availability. Commerce will be impacted by deteriorating consumer trends and COVID-19 related lockdowns, leading to higher credit risk from businesses to acquirers on loans and anticipation of receivables. This environment will impact Cielo's transactions volumes, lead to lower cost dilution and compressed EBITDA generation in the near-term. Moody's believes Cielo will also take a more conservative position on loans and anticipation products leading to a lower penetration of these products as a percentage of credit card volumes. Moody's regards the coronavirus outbreak as a social risk under its ESG framework, given the substantial implications for public health and safety. Constraining the ratings are Cielo's reducing market share and increasingly competitive industry environment. Moody's expects a robust growth in the electronic payments industry over the next several years, which will allow Cielo to continue growing volumes and revenues. The expected growth will remain supported by the increase in electronic and cards transactions pushed by the population's growing access to banking services, increased number of internet/mobile transactions, and greater use of credit cards, debit cards and other alternative means of payment instead of cash and checks. It that sense Moody's views as positive the partnership announcement with Facebook to provide payments via the mobile platform Whatsapp. Still, lower entry barriers, aggressive and nimble newcomers, technological innovation, and alternative payment options, will keep Cielo's revenue growth below that of the market, leading to continued market share erosion in the long run. During the COVID-19 crisis, the penetration of e-commerce, mobile, and not-present card payments will accelerate over the total volume of card transactions which also favors Cielo because of the array of not-present payment solutions it provides. Cielo has historically maintained a strong liquidity profile and has reinforced its cash position in face of the COVID-19 outbreak. Consolidated cash balance at the end of March 2020 was of BRL6.1 billion and short-term debt BRL3.2 billion. Additionally, Cielo consolidates FIDC shares in the amount of BRL8.9 billion comprised of receivables with an average 60 days term, of which BRL6.9 billion was Cielo's own shares and BRL2 billion was third-party shares. Moody's expects Cielo to postpone shareholder distributions in the near-term and to that effect the company has changed periodic quarterly payment of dividends and interest on own capital to a yearly distribution. The company has also reduced subsidies to certain client segments, reducing customer acquisition costs and has grown more selective in the anticipation of receivables business. The stable outlook reflects its view that Cielo will be able to sustain an adequate liquidity profile and credit metrics post COVID-19 crisis, despite a more difficult competitive environment. As such, the higher leverage will be compensated by a strong cash balance and shareholder distributions will not be a priority during the crisis. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings are unlikely to be upgraded in the short term. Positive rating pressure will not arise until the COVID-19 outbreak is brought under control and economic activity normalized. Cielo would need to show its ability to maintain solid organic growth, increase operating margins, while maintain a low gross leverage and maintenance of a strong liquidity profile. Negative pressure on Cielo's rating would arise in case of a negative action on Brazil's government bond rating, if Cielo's liquidity deteriorates, or if free cash flow generation were to remain negative. Quantitatively, downward pressure would also arise if RCF/Net Debt remains below 17%, if EBITA margin remains below 18% and gross leverage remains above 4.5x for an extended period of time. The principal methodology used in these ratings was Business and Consumer Service Industry published in October 2016. Headquartered in the city of Barueri, Brazil, Cielo S.A. is the leading corporation in the merchant acquiring and payment processing industry in Brazil, with presence in almost all Brazilian municipalities. With shares listed on B3 S.A. - Brasil, Bolsa, Balcao (B3, Ba1 stable), formerly BM&F Bovespa, Cielo is controlled by BB and Bradesco, which together hold 58.7% of the company's voting stocks and are the second and fourth-largest commercial banks in Brazil, respectively, in terms of total assets. In the last twelve months ended in March 2020, Cielo's revenue, including the result of its purchase of receivables, was BRL12.4 billion ($3.0 billion at the average exchange rate) and its Moody's adjusted EBITDA margin was 31.6%. CIELO SA: Moody's Affirms Ba1/Aaa.br Ratings on BRL3-Bil. Debenture ------------------------------------------------------------------- Moody's America Latina affirmed Cielo S.A.'s Aaa.br national scale corporate family rating. The ratings on the Ba1/Aaa.br senior unsecured debentures issued by Cielo were also affirmed. At the same time, Moody's Investors Service affirmed Cielo's Ba1 corporate family rating and the Ba1 ratings on the senior unsecured notes issued by Cielo and the backed senior unsecured notes issued by Cielo USA Inc. All outlooks remained stable. Ratings affirmed: Issuer: Cielo S.A. Corporate Family Rating -- National Scale: Aaa.br BRL3.0 billion senior unsecured debentures due 2022: Ba1/Aaa.br RATINGS RATIONALE Cielo's Ba1/Aaa.br rating continues to reflect its dominant position in the Brazilian cards and electronic payments card industry and broad footprint in the large Brazilian territory. Moody's also takes into consideration the favorable long-term growth fundamentals for the payment sector in Brazil, as well as the close business support from its main shareholders, Banco do Brasil S.A. (BB, Ba2 stable) and Banco Bradesco S.A. (Bradesco, Ba2 stable). The ratings also incorporate Cielo's strong liquidity profile and conservative financial policies. Moody's estimates Cielo will be able to return to adequate credit metrics once the COVID-19 pandemic negative economic impacts reduce. In 2020 Moody's expects the company's EBITDA to drop to BRL2.9 billion from BRL4.3 billion in 2019, with EBITDA margin reducing to 24.4% from 34.5%, driving leverage up along with additional debt to support a higher cash balance during the crisis. The rapid and widening spread of the coronavirus outbreak, deteriorating global economic outlook, falling oil prices, and asset price declines are creating a severe and extensive credit shock across many sectors, regions and markets. The combined credit effects of these developments are unprecedented. The card processing sector will observe a considerable slowdown in transaction volumes in Brazil, from an average growth of 15.2% in the last 3 years to 3.0% in 2020 according to its projections. Moreover, Moody's expects a challenging environment for consumer related businesses with a sharp decrease in retail sales, deterioration in consumer confidence, and higher delinquency leading to lower credit availability. Commerce will be impacted by deteriorating consumer trends and COVID-19 related lockdowns, leading to higher credit risk from businesses to acquirers on loans and anticipation of receivables. This environment will impact Cielo's transactions volumes, lead to lower cost dilution and compressed EBITDA generation in the near-term. Moody's believes Cielo will also take a more conservative position on loans and anticipation products leading to a lower penetration of these products as a percentage of credit card volumes. Moody's regards the coronavirus outbreak as a social risk under its ESG framework, given the substantial implications for public health and safety. Constraining the ratings are Cielo's reducing market share and increasingly competitive industry environment. Moody's expects a robust growth in the electronic payments industry over the next several years, which will allow Cielo to continue growing volumes and revenues. The expected growth will remain supported by the increase in electronic and cards transactions pushed by the population's growing access to banking services, increased number of internet/mobile transactions, and greater use of credit cards, debit cards and other alternative means of payment instead of cash and checks. In that sense, Moody's views as positive the partnership announcement with Facebook to provide payments via the mobile platform Whatsapp. Still, lower entry barriers, aggressive and nimble newcomers, technological innovation, and alternative payment options, will keep Cielo's revenue growth below that of the market, leading to continued market share erosion in the long run. During the COVID-19 crisis the penetration of e-commerce, mobile, and not-present card payments will accelerate over the total volume of card transactions which also favors Cielo because of the array of not-present payment solutions it provides. Cielo has historically maintained a strong liquidity profile and has reinforced its cash position in face of the COVID-19 outbreak. Consolidated cash balance at the end of March 2020 was of BRL6.1 billion and short-term debt BRL3.2 billion. Additionally, Cielo consolidates FIDC shares in the amount of BRL8.9 billion comprised of receivables with an average 60 days term, of which BRL6.9 billion was Cielo's own shares and BRL2 billion was third-party shares. Moody's expects Cielo to postpone shareholder distributions in the near-term, and to that effect the company has changed periodic quarterly payment of dividends and interest on own capital to a yearly distribution. The company has also reduced subsidies to certain client segments, reducing customer acquisition costs and has grown more selective in the anticipation of receivables business. The stable outlook reflects its view that Cielo will be able to sustain an adequate liquidity profile and credit metrics post COVID-19 crisis, despite a more difficult competitive environment. As such, the higher leverage will be compensated by a strong cash balance and shareholder distributions will not be a priority during the crisis. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings are unlikely to be upgraded in the short term. Positive rating pressure will not arise until the COVID-19 outbreak is brought under control and economic activity normalized. Cielo would need to show its ability to maintain solid organic growth, increase operating margins, while maintain a low gross leverage and maintenance of a strong liquidity profile. Negative pressure on Cielo's rating would arise in case of a negative action on Brazil's government bond rating, if Cielo's liquidity deteriorates, or if free cash flow generation were to remain negative. Quantitatively, downward pressure would also arise if RCF/Net Debt remains below 17%, if EBITA margin remains below 18% and gross leverage remains above 4.5x for an extended period of time. The principal methodology used in these ratings was Business and Consumer Service Industry published in October 2016. Headquartered in the city of Barueri, Brazil, Cielo S.A. is the leading corporation in the merchant acquiring and payment processing industry in Brazil, with presence in almost all Brazilian municipalities. With shares listed on B3 S.A. - Brasil, Bolsa, Balcao (B3, Ba1 stable), formerly BM&F Bovespa, Cielo is controlled by BB and Bradesco, which together hold 58.7% of the company's voting stocks and are the second and fourth-largest commercial banks in Brazil, respectively, in terms of total assets. In the last twelve months ended in March 2020, Cielo's revenue, including the result of its purchase of receivables, was BRL12.4 billion ($3.0 billion at the average exchange rate) and its Moody's adjusted EBITDA margin was 31.6%. EMBRAER SA: Egan-Jones Lowers Sr. Unsecured Debt Ratings to B+ -------------------------------------------------------------- Egan-Jones Ratings Company, on June 11, 2020, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Embraer SA to B+ from BB-. Headquartered in Sao Jose dos Campos, State of Sao Paulo, Brazil, Embraer SA manufactures and markets commercial, corporate, and defense aircraft. EMBRAER SA: S&P Cuts ICR to 'BB+' on Lower Aircraft Deliveries -------------------------------------------------------------- S&P Global Ratings lowered its ratings on Embraer S.A. to 'BB+' from 'BBB-' and removed them from CreditWatch negative. S&P also assigned a '4' recovery rating to Embraer's senior unsecured notes. Actions to contain the pandemic, including government-imposed social-distancing measures, travel restrictions, and stay-at-home orders, have sharply reduced global demand for air travel. S&P said, "We believe global air passenger traffic could drop 50% in 2020, which is approximately in line with the most recent forecasts by the International Air Transport Association (IATA). For 2021, we believe passenger volumes could remain around 30% below 2019 levels globally." S&P said, "Given that we expect the company's commercial jet deliveries to plummet to about 50 aircraft, and services, executive, and defense revenue to fall about 10% in 2020, we believe revenue will be 30% lower than in 2019, leading to net debt to EBITDA of more than 8.0x. In 2021, assuming recovery in commercial jet deliveries to 70-75, we expect a sharp increase in revenue to close to $5 billion. This, combined with company's cost reduction measures, could result in EBITDA margin of about 10% in 2021. We forecast net debt to EBITDA close to 2.7.0x-3.2x and funds from operations (FFO) to debt close to 25% the next year, what led us to revise our financial risk profile assessment on Embraer to significant from intermediate." With the termination of the Master Transaction Agreement (MTA) with Boeing and COVID-19 effects, Embraer will post a shortfall in FOCF and high leverage metrics this year. Despite delivery deferrals, the company has yet to register cancellations, and backlog remains strong. S&P believes Embraer will likely be among the first aircraft manufacturers to benefit from the industry recovery, given that its commercial aviation focus and leadership in smaller planes designed for regional markets, while its defense and executive jets, which represented about 50% of total revenue last year, are more resilient. Environmental, social, and governance (ESG) credit factors for this credit rating change: -- Health and safety NEXA RESOURCES: Moody's Rates New Senior Unsecured Notes 'Ba2' -------------------------------------------------------------- Moody's Investors Service has assigned a Ba2 rating to Nexa Resources S.A. proposed senior unsecured notes due January 2028, fully and unconditionally guaranteed by Nexa Resources Cajamarquilla S.A, Nexa Resources Peru S.A.A. and Nexa Recursos Minerais S.A The outlook is negative. Net proceeds from the proposed issuance will be used primarily for liability management, and therefore the transaction will improve Nexa's debt maturity profile and will help reduce funding costs and interest expenses, with no impact on leverage. The rating of the notes assumes that the final transaction documents will not be materially different from draft legal documentation reviewed by Moody's to date and assume that these agreements are legally valid, binding and enforceable. Assignments: Issuer: Nexa Resources S.A. Gtd Senior Unsecured Regular Bond/Debenture, Assigned Ba2 RATINGS RATIONALE Nexa Ba2 ratings are supported by the company's strong presence in the global zinc market (fourth-largest zinc concentrate producer globally) and its production profile, with the integration of mining operations with smelters, both in Brazil and Peru, which has translated into steady EBITDA margins over the last few years. The execution of planned greenfield projects in Brazil and Peru in the coming years is a positive development because it leads to lower cash cost on a consolidated base, reduces mine concentration and leads to product diversification overtime. Constraining the ratings is Nexa's exposure to commodity price volatility, given its high concentration in zinc (64% of total production in 2019) and in a single mine (Cerro Lindo is responsible for 44% of total mine output on a zinc equivalent basis). Nexa's relatively modest revenue size ($2.2 billion in last twelve months ended March 2020) compared with that of its global peers is a further constraint. In the current operating environment, Moody's will see a deterioration in Nexa's credit metrics in 2020, reflecting lower zinc prices, lower operating rates as a result of production restrictions in Peru and higher leverage, since Nexa has raised new debt to enhance its liquidity position. Accordingly, Nexa raised about $350 million in new debt in March 2020, and in early April the company requested the full disbursement of its $300 million revolving credit facility due in October 2024. As a result of the additional debt and weaker results, Nexa's leverage increased to 4.5x at the end of March 2020 from 3.7x at the end of 2019 to 4.7x. At the same time, liquidity has strengthened, with pro-forma cash balances at around $1 billion. With the state of emergency in Peru, which started on March 15 and for now is extended until June 30, production in the mines located in Peru (Cerro Lindo, Atacocha and El Porvenir, which accounted for 68% of zinc-equivalent production in 2019) were suspended, with mining activities limited to critical activities with a minimum workforce to ensure appropriate maintenance, safety and security. On May 6, the Peruvian government announced the conditions for the resumption of operations, including mining operations with production volumes above 5,000 tons per day. Cerro Lindo and El Porvernir mines restarted operations on May 11, while Atacocha will resume operations at the San Gerardo open pit mine in mid-June, following further authorization issued by the Peruvian government that allows medium-sized mines to restart operations. At the same time, the Cajamarquilla smelter maintained operations at lower rates with a reduced workforce and it has gradually improved its operating rate and is running close to full capacity. The negative outlook reflects its expectation that Nexa's revenue, profitability and credit metrics will deteriorate significantly in 2020 because of the coronavirus outbreak and weaker market fundamentals for zinc. On the other hand, Moody's expects Nexa to prudently manage its capital spending and dividend distributions to maintain adequate liquidity to service its financial obligations. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING An upward rating or outlook movement would require the company to improve cost position, staying comfortably in the second quartile of the industry curve, and complete its planned expansions, further diversifying its metal revenue base and enhancing its production profile without an increase in leverage or a deterioration in interest coverage metrics. Additionally, the outlook or ratings could be positively affected if the company maintains a sound liquidity profile, leverage (total adjusted debt to EBITDA) trends towards 2.75x or lower and interest coverage (EBIT to interest expenses) stays above 4.0x. A cash flow from operations minus dividends to total debt ratio above 30% would also support a positive rating action. Nexa's ratings could be downgraded if its profitability and cash generation capacity materially deteriorate as a consequence of a decline in metal prices or significantly lower production volumes, with EBIT margins staying below 12.5% and negative free cash flow on a sustained basis; production costs increase significantly and falling to the third quartile of the industry cost curve; or leverage, measured by total adjusted debt to EBITDA, staying above 3.1x and interest coverage leverage ratios, measured by EBIT to interest expenses staying below 3.5x on a sustained basis. Higher dividend payout, jeopardizing the company's liquidity position and leading to cash flow from operations minus dividends/debt staying below 25% could also lead to a negative action. The principal methodology used in this rating was Mining published in September 2018. Nexa Resources S.A. is a subsidiary of Votorantim S.A. (64.3%), with integrated operations (mines and smelters) in Brazil and Peru, mostly concentrated in zinc, but also with exposure to copper, silver, lead and gold. Nexa is the fourth-largest zinc concentrate producer in the world, with operations spread out in three mines in Peru (Cerro Lindo, Atacocha and El Porvenir) and two in Brazil (Vazante and Morro Agudo), and a zinc smelter in Peru (Cajamarquilla) and two zinc smelters in Brazil (Tres Marias and Juiz de Fora). In the last twelve months ended March 2020, Nexa reported revenue of $2.2 billion. NEXA RESOURCES: S&P Rates New $500MM Unsec. Notes Due 2028 'BB+' ---------------------------------------------------------------- S&P Global Ratings assigned its 'BB+' issue-level rating to Nexa Resources S.A.'s (Nexa; BB+/Stable/B) proposed senior unsecured notes of $500 million due 2028. Nexa's operating subsidiaries, Nexa Resources Cajamarquilla S.A., Nexa Resources Peru S.S.A., and Nexa Recursos Minerais S.A. will unconditionally guarantee the notes, which will rank pari passu to other unsecured debts. Nexa will use the proceeds to prepay outstanding bank loans and extend its debt maturity profile. S&P said, "The 'BB+' long-term issuer credit rating on the company reflects the support from its parent, Votorantim S.A. (BBB-/Stable/--), given that we continue to view Nexa as a highly strategic subsidiary, which would provide, in our view, extraordinary support if necessary. Therefore, we limit our rating on Nexa to one notch below that on its parent company. The stable outlook on Nexa also mirrors the outlook on Votorantim." Nexa's 'bb-' stand-alone credit profile (SACP) reflects the production stoppages in Peru due to the COVID-19 pandemic and plunging zinc and copper prices. These factors, combined with the still sizeable investment plan, mostly for the Aripuana project, will raise Nexa's leverage significantly in 2020 to close to 5x, according to our forecasts. The mitigating factor is the company's strong liquidity position, thanks to very low short-term maturities and the recent debt issuances, including the drawing of its $300 million revolving credit facility. S&P estimates that the covenant measure that requires net debt to EBITDA to remain below 4.0x in June and December 2020 could be breached, but it believes the company could obtain a waiver from its creditors. Ratings List New Rating Nexa Resources S.A. Senior Unsecured BB+ ========= C H I L E ========= LATAM AIRLINES: Talks for $1.5BB Loan Ongoing, Sources Say ---------------------------------------------------------- Tatiana Bautzer at Reuters report that a group of bondholders of LATAM Airlines Group SA is in talks to supply up to $1.5 billion in a debtor-in-possession loan within the Chapter 11 proceeding in the United States, two people with knowledge of the matter said. Bondholders including Blackrock Inc, Australia's Macquarie Group, HSBC and Chile's Moneda Asset Management, are informally discussing the issue with investment bank Moelis & Co, according to Reuters. The exact value of the DIP loan will be defined during the talks, but it is expected to be within the $1 billion to $1.5 billion range, the sources added, the report notes. LATAM filed for U.S. bankruptcy protection last month, aiming to restructure $18 billion in debt, the report relays. It was the world's largest airline to date to seek an emergency reorganization due to the coronavirus pandemic, the report notes. The company said at the time its shareholders Cueto Group and Qatar Airways had committed to supplying $900 million in additional financing, but that it aimed to raise up to $2.5 billion to support operations, the report adds. About LATAM Airlines LATAM Airlines Group S.A. -- http://www.latam.com/-- is a pan-Latin American airline holding company involved in the transportation of passengers and cargo and operates as one unified business enterprise. LATAM Airlines Group S.A. is the largest passenger airline in South America. Before the onset of the COVID-19 pandemic, LATAM offered passenger transport services to 145 different destinations in 26 countries, including domestic flights in Argentina, Brazil, Chile, Colombia, Ecuador and Peru, and international services within Latin America as well as to Europe, the United States, the Caribbean, Oceania, Asia and Africa. LATAM Airlines Group S.A. and its 28 affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 20-11254) on May 25, 2020. Affiliates in Chile, Peru, Colombia, Ecuador and the United States are part of the Chapter 11 filing. The Debtors disclosed $21,087,806,000 in total assets and $17,958,629,000 in total liabilities as of Dec. 31, 2019. The Hon. James L. Garrity, Jr., is the case judge. Debtors tapped Cleary Gottlieb Steen & Hamilton LLP as general bankruptcy counsel; FTI Consulting as restructuring advisor; and Togut, Segal & Segal LLP and Claro & Cia in Chile as special counsel. Prime Clerk LLC is the claims agent. ======= C U B A ======= CUBA: Coronavirus Crisis Deepens Chronic Economic Woes ------------------------------------------------------ Atahualpa Amerise at EFE News reports that the financial situation of most Cuban citizens have worsened due to the recent further deterioration of Cuba's economy, which already was suffering from chronic structural deficiencies, a reduction in aid from its crisis-hit ally Venezuela, and a stiffening of the United States' decades-old embargo on the Communist-ruled island and now is being hard hit by the coronavirus-triggered lockdown. The most immediate impact of the stay-at-home order and closures of non-essential businesses has been shortages of basic products, which either have disappeared altogether or are being sold at much higher prices on the black market, according to EFE News. Three and a half kilos of rice, two kilos of sugar, a half liter of soybean oil, a packet of mixed coffee, a packet of pasta, 15 eggs, a handful of grains and a pound of chicken make up the monthly food basket the government provides at subsidized prices, the report says. But 30 days can feel like an eternity, even for the most frugal of Cubans, the report notes. The situation outside supermarkets tells the story on the Caribbean island, the report relays. Dozens of people wearing face masks line up for hours to purchase a liter of cooking oil or two kilos of a much-coveted portion of chicken, the prices of which are similar to those in Spain or the US, the report says. Other items such as dish-washing detergent and shampoo have disappeared from the market completely, the report relates. The current situation is "very delicate," partly due to the island's stifling deficit in its balance of payments, Cuban economist Ricardo Torres, a professor at the University of Havana, told EFE News. Torres noted that the island only produces a fraction of the foodstuffs and basic products the population requires, with the remaining 80 percent having to be imported, the report relays. The coronavirus crisis poses a particularly daunting challenge because it affects two of the island's main sources of hard currency: tourism, which has evaporated completely over the past two and a half months, and remittances from abroad, the report relays. If tourism revenues fall by between 60 percent and 80 percent this year, Cuba could lose between $1 billion and $2 billion, roughly equivalent to the country's annual budget for food imports, government website Cubadebate said, the report notes. "The most difficult thing is predicting what will happen with remittances, although with unemployment levels like what we're seeing in the US it's impossible to imagine that they're not going to fall," Mr. Torres added. As reported in the Troubled Company Reporter-Latin America on Sept. 17, 2019, Moody's Investors Service affirmed the Government of Cuba's long-term foreign-currency and local-currency issuer ratings at Caa2. The outlook remains stable. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: High Temperature, Oversupply Affect Egg Market ------------------------------------------------------------------ Dominican Today reports that Carlos Mercedes, the owner of Distribuidora de Huevos Mercedes, said that high temperatures and oversupply are affecting the market for eggs since it's taking more than 15 days to sell after they leave the farm. When contacted by reports from people that they have bought eggs that were damaged, Mercedes clarified that there is a lot of production, and the end-user reaches RD$5 and RD$6, according to Dominican Today. Mercedes, who has his business in the Mercado de la Duarte, said that the eggs cost intermediaries between RD$3.20 and RD$3.50, so selling them for more than RD$6 in the grocery stores is not feasible, the report notes. Egg cartons cost between RD$100 and RD$110, the report relays. Mercedes reports that the overproduction of eggs has caused them to drop in price. Even though this product is highly consumed in the Dominican market, the egg distributor regretted that sales are "down" after the coronavirus pandemic, the report says. "We are experiencing a heatwave, and as sales are weak, eggs are being damaged, reaching the final consumer with these defects," he said, the report notes. In supermarkets, a carton of eggs of 30 units costs between RD$175 and RD$215, minimum and maximum prices, according to the Dominican Price Information System (SIDIP) of Pro Consumidor, the report discloses. The economy cartons cost RD$130 and RD$150, 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: Low Farm Egg Prices Doesn't Reach Consumers --------------------------------------------------------------- Dominican Today reports that Esteban Ferreiras, speaking on behalf of the associations of egg producers in the city of Moca, assured that the industry is facing the loss of the tourist market due to the closure of hotels, the decrease in Haitian demand due to the closure of the border and the difficulty placing them in distribution channels due to general restrictions imposed by the Government as a result of the pandemic. This results in, Ferreiras said, a current reduction in demand and a collapse in prices, according to Dominican Today. Currently, the sale price of the farm egg unit is RD $ 2.20-RD $ 2.50; which is equivalent to RD $ 60.00 and RD $ 75.00 per carton of 30 units, said the economist in relation to the publication of this medium of eggs bought in supermarkets that seem "parboiled" and in grocery stores at RD $ 7 a unit, the report notes. "Unfortunately, this decrease in farm egg prices does not usually reach the consumer. Currently, the price paid by the consumer is between RD $ 6.00 and RD $ 8.00 per unit, depending on the type of establishment. This also makes it difficult for the momentary surplus to come out." he explained. It calls on supermarket chains to work with farmers to place deals and for the population to benefit from current prices, especially at this time of the coronavirus pandemic, the report relays. Farmers are currently only receiving 60% of the regular price of the egg and selling it below the cost of production, which has increased due to the devaluation of the peso, the report notes. Every day the egg production industry in the Dominican Republic loses from RD$10 to RD$11 million, he added. 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). ============= J A M A I C A ============= [*] JAMAICA: 3 Providers Authorized to Offer Retail Payment Service ------------------------------------------------------------------- RJR News reports that the Bank of Jamaica is warning that only three payment service providers have been authorized to offer electronic retail payment services locally. The Central Bank has been informed that services are being offered to the public by unauthorized providers, according to RJR News. Electronic retail payment services are those relating to the use of a prepaid card or mobile wallet, the report notes. The central bank said unauthorized entities seeking to offer these services could negatively impact the safety and integrity of the national payment system, noting that there's no regulatory oversight in place for them, the report discloses. The entities currently authorized to provide the services are: Sagicor Bank; National Commercial Bank and Alliance Financial Services, the report notes. Meanwhile, MoneyGram is reporting a 100% year-over-year digital transaction growth in May, the report relays. That's a significant acceleration from the first quarter of 2020 when the company reported 57% growth, the report notes. MoneyGram CEO Alex Holmes says its overall digital growth in May was driven by MoneyGram Online, digital partnerships as well as account deposit and mobile wallet transactions, the report says. 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 =========== GRUPO AEROMEXICO: Egan-Jones Lowers FC Sr. Unsecured Rating to B- ----------------------------------------------------------------- Egan-Jones Ratings Company, on June 12, 2020, downgraded the foreign currency senior unsecured rating on debt issued by Grupo Aeromexico SAB de CV to B- from BB-. EJR also downgraded the rating on FC commercial paper issued by the Company to C from A3. Headquartered in Mexico City, Mexico, Grupo Aeromexico SAB de CV operates as an airline. OPERADORA DE SERVICIOS MEGA: S&P Affirms 'BB-' LT Global Scale ICR ------------------------------------------------------------------ S&P Global Ratings affirmed its 'BB-' long-term global scale issuer credit rating and its 'mxA-/mxA-2' national scale ratings on Operadora de Servicios Mega, S.A. de C.V. SOFOM, E.R. (GFMEGA). At the same time, S&P affirmed its 'BB-' issue-level rating on GFMEGA's senior unsecured notes of $350 million. Finally, S&P removed ratings from CreditWatch negative, where it placed them on March 27. The outlook is negative. S&P said, "The ratings affirmation reflects continued improvements in the lender's business position, which should prevent GFMEGA's credit quality from deteriorating despite a lower RAC ratio. At the same time, we removed ratings from CreditWatch negative. In our view, the firm's continued efforts to widen diversification -- in terms of geography, business lines, clients, and economic sectors -- will provide business and revenue stability. We expect GFMEGA's improved business position to provide flexibility, making it less vulnerable to the current economic downturn than its peers with the same business risk assessment. "Given that we believe GFMEGA's business position is transitioning to a stronger category, and considering a holistic view of its credit profile in relation to those of its peers, we believe its credit quality is in line with those of its peers with the same rating. Therefore, we are incorporating a temporary one-notch comparable rating adjustment. In the future, if the company's business profile stands resilient -- supported by its wider business diversity, and greater revenue stability and business scale -- we will remove this adjustment and revise our business position assessment to a stronger category, which would maintain ratings unchanged. Otherwise, we could remove the adjustment while leaving our business position assessment unaffected, leading to a one-notch downgrade. "At the same time, the removal of ratings from CreditWatch negative and the assignment of a negative outlook reflect that we could remove the one notch comparable ratings adjustment in the next 6-12 months if the entity's business resilience is weaker than expected and with respect to those of peers with the same rating. This could happen if GFMEGA's operating revenues deteriorate because of weakening economic conditions and deviating from those of peers with business positions that we assess as adequate." ===================== P U E R T O R I C O ===================== MMM HOLDINGS: Moody's Rates $20MM Incremental Debt 'B1' ------------------------------------------------------- Moody's Investors Service has assigned a B1 to MMM Holdings, LLC $20 million incremental debt issuance, which occurred in March 2020. This borrowing contributed to the acquisition of a provider business in Central Florida in June, and the buyout of some minority interests. In December 2019, Summit Partners acquired MMM for $1.47 billion, financed with $919 million in equity, a $550 million 7-year senior, secured term loan and an $80 million 5-year senior, secured revolving credit facility. The outlook on MMM and its entities remains stable. RATINGS RATIONALE This borrowing had a modest impact on MMM's leverage and financial flexibility. As of March 31, debt-to-capital with Moody's adjustments increased to 39% from 38% at year-end 2019, which remains solid. Additionally, with the acquisition of Trinity Medical Group, MMM adds further earnings diversification and non-cash flows from a non-regulated provider business. The ratings on MMM and its operating subsidiary reflect MMM Healthcare, LLC's solid profitability, leading market share in the Puerto Rico Medicare Advantage market, and solid MA membership growth of 25% since 2017. This growth came amidst favorable reimbursement rate trends after six years (2011-2017) of severe MA reimbursement rate cuts (21%) pursuant to the Affordable Care Act. Another credit positive is MMM's vertical integration, including ownership of an independent physician's network, a medical service organization and chronic care clinics. These capabilities support MMM's leading medical loss ratio in Puerto Rico. Leverage is moderate for the rating level, as measured by both adjusted debt-to-capital and debt-to-EBITDA. Credit challenges include MMM's small scale, geographic concentration in Puerto Rico and low RBC capital ratio; i.e. it is among the lowest of Moody's rated peers. In addition, the significant goodwill and intangible assets from the acquisition by Summit Partners in December adversely impacts the quality of capital. With an average membership of 515 thousand members as of March 31, 2020, MMM is also the smallest health insurer in Moody's rated universe. The coronavirus pandemic and related economic disruption have not had a material impact on MMM's operations and results through March 31, 2020. Given the current trajectory of the virus, Moody's expects that benefit from the deferral of non-essential procedures through the second quarter will more than offset the coronavirus costs. Still, a great deal of uncertainty remains regarding the ultimate, depending on the severity and duration of the pandemic. The stable outlook reflects the positive MA reimbursement environment and solid claims and expense controls which Moody's believes will continue, along with favorable MA demographic trends on Puerto Rico as well as south Florida, where MMM has started up a new MA plan. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's could upgrade MMM (and its operating subsidiary) if the company meets the following drivers: (1) RBC ratio at or above 150% of company action level; (2) MA membership growth continues in general and the Florida plan achieves 15-20% or more of total MA members; (3) Meaningful percentage of earnings is from outside Puerto Rico on a sustained basis while sustaining current profitability metrics. Conversely, Moody's could downgrade MMM (and its operating subsidiary) under the following conditions: (1) RBC ratio below 115% of CAL; (2) MA membership drops 10% or more from current levels, and; (3) debt-to-EBITDA exceeds 3.0x on a sustained basis. Rating actions: Issuer: MMM Holdings, LLC: Backed senior secured term loan due 2026: Assigned at B1 The outlook on MMM Holdings, LLC is stable. ICH US Intermediate Holdings II, Inc. and ICH Flow-Through LLC are co-borrowers on the term loans and revolving credit facility. The principal methodology used in these ratings was US Health Insurance Companies Methodology published in November 2019. InnovaCare Health, LP, the ultimate parent company of MMM Holdings, is a privately-owned company incorporated in Puerto Rico and headquartered in White Plains, NY. ============= U R U G U A Y ============= NAVIOS SOUTH: S&P Assigns 'B' Rating on Senior Secured Notes ------------------------------------------------------------ S&P Global Ratings assigned its 'B' issue-level rating on Navios South American Logistics Inc.'s (NSAL; B/Negative/--) proposed senior secured notes for up to $500 million due 2025. NSAL will use net proceeds to refinance the $100 million term loan due 2021 and the $375 million senior unsecured notes due 2022, extending its debt maturity profile. The rating on the notes is the same as the issuer credit rating on NSAL because there's no structural subordination, given that the notes will be secured and the company's main liability. The COVID-19 pushed Latin America into a recession in 2020. S&P said, "Still, in our opinion, NSAL operates in a business segment that has been more resilient under the current crisis, so we expect only minor impact on volumes. S&P Ratings forecast expects NSAL's 2020 revenue and EBITDA to fall to about $210 million and $90 million, respectively, from $228 million and $102 million (S&P Adjusted EBITDA) in 2019." The ratings reflect NSAL's relatively small scale of operations, volatile cash flow generation in the barge and cabotage segments, and market concentration. An offsetting factor is about $40 million of NSAL's EBITDA that comes from a long-term contract with Vale International S.A. (a subsidiary of Vale S.A.; BBB-/Negative/--). This contract is until 2037 and has take-or-pay clause, so cash flows from that operation are fairly stable and predictable. Ratings List New Rating Navios South American Logistics Inc. Senior Secured B ================= V E N E Z U E L A ================= VENEZUELA: Richest Oil Reserves Now Tapped by Single Rig -------------------------------------------------------- Fabiola Zerpa at worldoil.com reports that Venezuela's fall from oil superpower to failing producer can be illustrated in one image: a single drilling rig working the world's largest oil reserves. As fields across the nation shut amid a relentless U.S. campaign to cut Venezuela off from global oil markets, the number of rigs drilling for crude fell to just one in May, according to data from Baker Hughes. Another lone rig was drilling for gas, the report notes. That marks a 96% decline since January, when drilling fell to levels not seen since 1963. Having a single active crude rig takes the country back to the beginning of its oil industry, well before it became a founding member of the Organization of Petroleum Exporting Countries, according to worldoil.com. The development underscores the toll that U.S. sanctions have taken on the nation as President Donald Trump escalates efforts to remove Venezuelan President Nicolas Maduro from power, the report notes. Dark Days State-owned oil company Petroleos de Venezuela SA has been gradually shutting fields due to fewer buyers, low prices and lack of both investment and personnel, the report relays. In May, about one-third of the 77 oil fields across the country were producing zero barrels and more than 10% pumped less than 500 barrels per day, according to PDVSA production data seen by Bloomberg, the report discloses. Many of the shuttered fields are joint ventures between PDVSA and foreign partners including China's CNPC, Cubas' Cupet or Angola's Sonangol, the report relays. The last remaining rigs in Venezuela were located at the Maracaibo basin and the Orinoco Oil Belt, operated at PDVSA joint ventures, according to people familiar with the matter, the report notes. Production has been dropping steadily over the years to historic lows, the report relates. PDVSA total oil production in May decreased 16% to 645,700 barrels a day, the report notes. The bulk of that output came from the Orinoco Belt which produced 332,700 barrels daily barrels, according to a document seen by Bloomberg, the report relays. The downturn in production has culminated in a nationwide fuel crisis, with local refineries unable to churn out enough gasoline and diesel to meet demand, even as a national quarantine depresses consumption, according to worldoil.com. At the same time, gasoline imports have been curtailed by U.S. sanctions against Rosneft PJSC and shipping agencies that once swapped fuel for crude with Maduro's cash-strapped government, the report says. Recently, gas pumps have seen a brief reprieve after five vessels carrying Iranian fuel discharged at local ports, the report adds. Venezuela Venezuela, officially the Bolivarian Republic of Venezuela, is a country on the northern coast of South America, consisting of a continental landmass and a large number of small islands and islets in the Caribbean sea. The capital is the city of Caracas. Hugo Chavez was president to Venezuela from 1999 to 2013. The Chavez presidency was plagued with challenges, which included a 2002 coup d'etat, a 2002 national strike and a 2004 recall referendum. Nicolas Maduro was elected president in 2013 after the death of Chavez. Maduro won a second term at the May 2018 Venezuela elections, but this result has been challenged by countries including Argentina, Chile, Colombia, Brazil, Canada, Germany, France and the United States who deemed it fraudulent and moved to recognize Juan Guaido as president. The presidencies of Chavez and Maduro have challenged Venezuela with a socioeconomic and political crisis. It is marked by hyperinflation, climbing hunger, poverty, disease, crime and death rates, social unrest, corruption and emigration from the country. S&P Global Ratings, in May 2019, removed its long- and short-term local currency sovereign credit ratings on Venezuela from CreditWatch with negative implications and affirmed them at 'CCC-/C'. The outlook on the long-term local currency rating is negative. At the same time, S&P affirmed its 'SD/D' long- and short-term foreign currency sovereign credit ratings on Venezuela. Moody's credit rating (long term foreign and domestic issuer ratings) for Venezuela was last set at C with stable outlook in March 2018. Meanwhile, Fitch's long term issuer default rating for Venezuela was last in 2017 at RD and country ceiling was CC. Fitch, on June 27, 2019, affirmed then withdrew the ratings due to the imposition of U.S. sanctions on Venezuela. =============== X X X X X X X X =============== [*] LATAM: Must Restart Air Travel by July to Avoid Bankruptcies ---------------------------------------------------------------- Reuters reports that a high-ranking official of the International Air Transport Association (IATA) has said Latin American countries should quicken steps for airlines to renew domestic flights no later than July before more companies are forced to declare bankruptcy or close. The trade group estimated losses for airlines in Latin America at $4 billion this year, with total losses for the industry expected to reach $84 billion globally. Latin America has imposed stricter travel restrictions than most regions to fight coronavirus. Colombia and Argentina have banned international flights through Aug. 31, while other countries including Peru, Ecuador, El Salvador and Panama have also grounded all flights and repeatedly extended those bans as the disease has spread. [*] LATAM: OECD Sees Deeper Recession if Virus Hits Again --------------------------------------------------------- Samy Adghirni and Martha Viotti Beck at Bloomberg News report that a second wave of Covid-19 would deepen this year's recession in Latin America's three largest economies by more than 1 percentage point, according to the Organisation for Economic Co-operation and Development (OECD). Argentina and Brazil would suffer the biggest hits, shrinking by 10% and 9.1%, respectively, while Mexico would contract by 8.6%, Paris-based OECD said in a report published, according to Bloomberg News. A possible second wave of the virus could come between October and November following the easing of containment measures currently in place, the organization said, the report notes. In its report, the club of the world's richest democracies praised the three Latin American countries for their efforts to support vulnerable individuals and companies during the pandemic, Bloomberg News says. Argentina deserved special mention in the report for handling a health policy response that managed to slow the spread of the virus, Bloomberg News notes. But structural problems and the country's struggle to restructure $65 billion in foreign debt make it more vulnerable to a deeper recession, according to the OECD. Without a second outbreak, it expects the economy to shrink about 8.25% this year, Bloomberg News discloses. Resuming Reforms In Brazil, the OECD said the economic response to the pandemic was "timely and decisive," but added that the virus is still spreading rapidly across the country. The government needs to quickly resume economic reforms once the pandemic is over, according to the organization, Bloomberg News says. "Brazil has all it takes to grow much stronger and to become much better, and a few key reforms could really make a huge difference," Jens Arnold, a senior OECD economist who oversees Brazil and Argentina, said in an interview. "That's the difference right now compared to Argentina, where the situation is just really complicated," he added. Brazil, which in 2017 applied for OECD membership to show it's becoming a prosper and transparent democracy, has started to reopen its economy before the pandemic reached its peak, Bloomberg News notes. It currently trails the U.S. and the U.K. in number of deaths from Covid-19, and only the U.S. in number of cases. Without a second virus wave, Latin America's largest economy is forecast to contract 7.4%, according to the organization, Bloomberg News relays. Brazil's Economy Minister Paulo Guedes has pledged to resume the reform agenda in the second half of the year as a way to boost growth and private investment, Bloomberg News notes. After approving a milestone pension reform in 2019, Brazil has at least ten proposals to boost public finances and spur growth in congress, Bloomberg News discloses. They include measures to increase control over the federal budget, simplify taxes and reduce spending on public servants, Bloomberg News relays. Mexico, already an OECD member, is expected to contract 7.5% without a second outbreak, Bloomberg News notes. Latin America's second-largest economy would benefit from measures to support workers in both the formal and informal sectors and to bolster private investment, the OECD said, Bloomberg News adds. ********* 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 publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *