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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

          Friday, June 19, 2020, Vol. 21, No. 123

                           Headlines



A R G E N T I N A

ARGENTINA: Protests Over Situation of Poor During Pandemic
BUENOS AIRES: S&P Lowers Rating on 7.8% Global Bond Due 2027 to D


B R A Z I L

INTERCEMENT BRASIL: S&P Lowers ICR to 'CCC', Outlook Negative
JBS SA: Fitch Hikes LongTerm IDRs to BB+, Outlook Stable


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Fuels Continue to Rise Again
DOMINICAN REPUBLIC: Tourism Will Be Crucial in Return to 'Normal'


E L   S A L V A D O R

EL SALVADOR: IDB Approves $250MM to Strengthen Public Policy


G U A T E M A L A

GUATEMALA: IMF Approves US$594 Million in Emergency Assistance


N I C A R A G U A

NICARAGUA: Fitch Alters Outlook on 'B-' LT IDR to Negative


P A N A M A

ENA NORTE: Fitch Cuts Ratings on Notes to 'BB', on Watch Negative


U R U G U A Y

NAVIOS LOGISTICS: Moody's Rates $500MM Senior Secured Notes 'B3'


X X X X X X X X

[*] LATAM: Faces Crucial Month to Stop Coronavirus Pandemic

                           - - - - -


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

ARGENTINA: Protests Over Situation of Poor During Pandemic
----------------------------------------------------------
EFE News reports that thousands of people took to the streets in
Argentina to protest the situation of the country's poorest
citizens during the coronavirus pandemic, with the largest
demonstration taking place in Buenos Aires before the Social
Development Ministry.

"We're protesting in Argentina on a national day of protest at many
places around the country.  We're representatives of the poorest
workers in our class," Marianela Navarro, a delegate with the
Organizations in Struggle Front (FOL), said noting that the social
organizations are fighting "not only the pandemic, but the spread
of hunger in the neighborhoods," according to EFE News.

The report notes that Navarro demanded "that the national
government before meeting with the CEOs or with the businessmen pay
attention to the social organizations."

The protesters also asked that food be provided to the neighborhood
food banks and complained that the government is not supplying
those locations, the report relays.

"Our demand is for the food that is being held back from the . . .
food banks (by) this government which says it's supplying them but
it's not true, and the situation is getting worse during the
quarantine for this pandemic.  The pandemic also (is causing) the
growth of hunger," Ricardo Antunez, a leader with the Teresa Lives
Unemployed Movement, told EFE News.

The Social Development Ministry said that it is maintaining an
"ongoing dialogue" with the social organizations and noted that two
of those groups - the FOL and Barrios de Pie - are part of the
Social Emergency Committee, the report discloses.

In addition, the ministry said that it is supplying dry food to the
food distribution centers, adding that "since the start of the
quarantine transfers of money have been made to the provinces and
municipalities for the purchase of food and cleaning supplies," the
report relates.

"From Jan. 1 until now, 1.77 billion pesos (about $16 million) has
been transferred to food banks . . . . for the decentralized
purchase of food.  Of that total (about $11 million) has been
circulated specifically during the pandemic," the ministry said in
a statement obtained in the news agency.

On June 1, the Argentine government announced that this month it
will once again provide an economic subsidy, as it did in April and
May, to those registered families without formal income to
alleviate the effects of the obligatory isolation measures adopted
to deal with the Covid-19 pandemic, the report relays.

Between April and May, about nine million people - about one-fifth
of Argentina's population - received 10,000 pesos ($142) each from
the Emergency Family Income program, a state-run effort originally
slated to be a one-time aid package but which the Alberto Fernandez
government decided to repeat given the extension of the isolation
measures, which have been in force since March 20, the report
discloses.

In Argentina, so far 25,987 coronavirus cases have been confirmed
and 741 people have died, according to the government's figures,
the report adds.

                        About Argentina

Argentina is a country located mostly in the southern half of South
America.  It's capital is Buenos Aires. Alberto Angel Fernandez is
the current president of Argentina after winning the October 2019
general election. He succeeded Mauricio Macri in the position.

Argentina has the third largest economy in Latin America.  The
country's economy is an upper middle-income economy for fiscal year
2019 according to the World Bank.  Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.

As reported by the Troubled Company Reporter - Latin America on
April 14, 2020, Fitch Ratings upgraded Argentina's Long-Term
Foreign Currency Issuer Default Rating to 'CC' from 'RD' and
Short-Term Foreign Currency IDR to 'C' from 'RD'.

The TCR-LA reported on April 13, 2020, that S&P Global Ratings also
lowered its long- and short-term foreign currency sovereign credit
ratings on Argentina to 'SD/SD' from 'CCC-/C'. S&P also affirmed
the local currency sovereign credit ratings at 'SD/SD'. There is no
outlook on 'SD' ratings.

On April 9, the TCR-LA reported that Moody's Investors Service
downgraded the Government of Argentina's foreign-currency and
local-currency long-term issuer and senior unsecured ratings to Ca
from Caa2.


BUENOS AIRES: S&P Lowers Rating on 7.8% Global Bond Due 2027 to D
-----------------------------------------------------------------
S&P Global Ratings lowered its issue-level rating on the Province
of Buenos Aires's 7.875% dollar-denominated bond due 2027 to 'D'
from 'CC' after it missed $68.9 interest payment due June 16. The
province hasn't made its foreign currency debt service payments
after it presented the terms of a restructuring offer on its 11
foreign currency bonds on April 24, 2020.

The province's following bonds are in default:

-- 7.875% notes due 2027;
-- 9.95% notes due 2021;
-- 9.625% bond due 2028;
-- 4% dollar-denominated medium term notes due 2020;
-- 4% euro-denominated medium term notes due 2020;
-- 4% dollar-denominated long-term par bond due 2035; and
-- 4% euro-denominated long-term par bond due 2035.

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the methodology
applicable. At the onset of the committee, the chair confirmed that
the information provided to the Rating Committee by the primary
analyst had been distributed in a timely manner and was sufficient
for Committee members to make an informed decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

  Ratings List
  
  Downgraded  
                          To     From
  Buenos Aires (Province of)
   Senior Unsecured       D      CC
   US$1.75bil 7.875% due 2027

  Ratings Affirmed  

  Buenos Aires (Province of)
   Issuer Credit Rating   SD/--/NR
   Senior Unsecured       CC
   Senior Unsecured        D




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B R A Z I L
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INTERCEMENT BRASIL: S&P Lowers ICR to 'CCC', Outlook Negative
-------------------------------------------------------------
S&P Global Ratings, on June 17, 2020, lowered its global scale
ratings on InterCement Brasil to 'CCC' from 'B-' and its national
scale ratings to 'brB-' from 'brBBB-'.

Last week, the company has completed the refinancing of R$4.7
billion in debentures and loans, extending debt maturities to
2023-2027 from 2020-2024. S&P said, "While this was an important
step to reduce principal payments over the next years, we now see
greater liquidity pressures due to our current expectation of
significant cash burn this year and the uncertainties over the
recovery path. We currently forecast EBITDA close to EUR200 million
this year, compared with interest expenses of around EUR120
million, and working capital and capital expenditures totaling
about EUR150 million. This would result in liquidity strains, in
our view, even assuming that the company continues refinancing its
debt maturities as they come due over the next months."

For instance, demand in Brazil was relatively stable in the first
five months of 2020, compared with the same period in 2019. S&P
said, "However, we expect a decline in demand for construction, as
homebuilders suspended new launches and consumer confidence falls,
given expected lower real income and increase in unemployment. In
Argentina and South Africa, we believe the company's sales volume
could decline 20%-30% this year, given the full lockdowns in the
initial stages of the COVID-19 outbreak and our expectation of
significant economic contraction this year."


JBS SA: Fitch Hikes LongTerm IDRs to BB+, Outlook Stable
--------------------------------------------------------
Fitch Ratings has upgraded JBS S.A.'s Long-Term Foreign and Local
Currency Issuer Default Ratings to 'BB+' from 'BB'. Fitch also
upgraded the senior unsecured notes guaranteed by JBS to 'BB+' from
'BB' in addition to upgrading the company's National Scale rating
to 'AAA(bra)' from 'AA+(bra)'. The Rating Outlook is Stable.

The upgrade to 'BB+' reflects JBS' resilient business and
medium-term fundamentals, the debt refinancing implemented last
year that lowered cost of capital (5.28% in 1Q20 versus 5.88% in
1Q19 in the U.S.) and extended its debt maturity profile, strong
liquidity position and FCF, and moderate levels of leverage in 2020
despite operational challenges and weak economic conditions caused
by the coronavirus pandemic that will negatively impact performance
-- notably in 2Q20 for the U.S. poultry segment. Fitch expects the
company to generate more than USD1 billion of FCF in 2020.

The ratings remain constrained by ESG factors as well as potential
contingent liabilities and uncertainty surrounding the various
investigations occurring at JBS and with its controlling
shareholder.

KEY RATING DRIVERS

Solid Business Profile: JBS's business profile is strong due to its
size, geographic and protein diversification, including in pork,
poultry and beef. It is the most geographically diversified company
rated by Fitch in the protein sector due to its strong presence in
North America, South America, Australia, and Europe. This
geographic diversity enables the company to mitigate business
volatility inherent to the industry. Exports represented 25.7% of
JBS's global sales as of 1Q20. Asia represented 48% of export
sales, primarily in China, Japan and South Korea. The Middle East
and Africa represented approximately 11.5% of sales in 1Q20. Fitch
estimates that JBS overall exposure to foodservice is about 10% in
Brazil and less than 20% in the U.S.

Moderate Leverage: Despite the unique challenges for the industry
related to the coronavirus pandemic, Fitch expects JBS' net
leverage to remain below 3x in 2020. The integration of several
acquisitions made by the company in 2019 and early 2020 in addition
to the depreciation of the Brazilian real versus the U.S. dollar
should drive growth in JBS' reported sales and EBITDA. The
temporary shutdown of plants in the U.S. and Brazil, as well as
higher costs related to absenteeism and social distancing measures
undertaken by the company will pressure margins in 2020. JBS
announced in May 2020 that it will donate BRL700 million in
different initiatives (public health, social assistance and support
for science) in Brazil and US and an additional USD150 million for
other costs related to its operations to enhance employee
safeguards and bonuses in 2020. Protein demand should remain
relatively unchanged due to the shift in consumption toward food
retail, in-home dining from foodservice in the first half of the
year. Fitch expects JBS' U.S. poultry division, which accounted for
about 26% of group's EBITDA, to be more pressured due to excess
supply and lower prices expected in the first half of the year.

Protein Outlook: JBS' competitive advantages stem from its
geographic and protein diversification, large-scale operations,
access to export markets from Brazil and the U.S., and long-term
relationships with farmers, customers and distributors. U.S. beef
production is expected to decrease by nearly 2% yoy and pork and
broiler production are forecast to be flat in 2020 according to the
U.S. Department of Agriculture. An outbreak of the African swine
fever virus in China has severely hurt pork production there. The
disease resulted in more protein products, including chicken,
directed to China in 2019. Among the significant industry risks are
a downturn in the economy of a given export market, the imposition
of increased tariffs or sanitary barriers, and strikes or other
events that may disrupt production affect the availability of ports
and transportation.

ESG: JBS's rating is constrained by weak corporate governance due
to its shareholder structure, and uncertainty as several
investigations involving JBS and its shareholders continue. These
include administrative procedures by the Brazilian Securities and
Exchange Commission and potential fines from the U.S. Justice
Department. These legal matters create uncertainty regarding the
timing and magnitude of any potential fines. JBS has a governance
score of 5.

DERIVATION SUMMARY

JBS has a strong business profile as the world's largest beef,
poultry and leather producer, with diversification in chicken,
beef, pork and prepared food. This allows the company to minimize
risks of operating in one protein or region, placing it in a
favorable position from a business risk perspective versus Marfrig
Global Foods (BB-/Stable) and Minerva SA (BB-/Stable).

With a net debt/ EBITDA ratio at 2.3x (in Brazilian real) at YE
2019, JBS's net leverage was lower than Minerva's and Marfrig
Global Foods', as well as Tyson Foods Inc.'s (BBB/Negative). JBS's
ratings integrate its weak governance and ongoing litigation issues
related to corruption investigations and uncertainty regarding
potential fines, which could damage the company's credit profile
and access to capital markets.

KEY ASSUMPTIONS

High single digit revenues growth driven by acquisitions and FX;

  -- Reduced EBITDA margin;

  -- Net debt/EBITDA to be below 3x in FYE20.

RATING SENSITIVITIES

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

  -- Net debt/EBITDA below 2x on a sustained basis;

  -- Decrease in ESG and related legal investigations issues.

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

  -- Large fines that pressure the company's liquidity and ability
to deleverage in the near term;

  -- Net leverage above 3x on a sustained basis.

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 Liquidity: JBS's liquidity is strong due to a low level of
short-term debt, good access to banks, capital market debt and
positive FCF. Cash and cash equivalents were about US$3.6 billion,
and short-term debt was US$0.8 billion as of 1Q20. Also, JBS USA
had US$1 billion of unencumbered available credit lines (USD850
million was drawn during the first quarter of 2020.)

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

Fitch has given JBS an ESG score 5 for governance due to ownership
concentration and ongoing litigation issues. Except for the matters
discussed, the highest level of ESG credit relevance, if present,
is a score of 3 - ESG issues are credit neutral or have only a
minimal credit impact on the entity(ies), either due to their
nature or the way in which they are being managed by the
entity(ies).

JBS S.A.

  - LT IDR BB+; Upgrade

  - LC LT IDR BB+; Upgrade

  - Natl LT AAA(bra); Upgrade

JBS Investments II GmbH

  - Senior unsecured; LT BB+; Upgrade

  - JBS Investments GmbH

  - Senior unsecured; LT BB+; Upgrade




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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: Fuels Continue to Rise Again
------------------------------------------------
Dominican Today reports that the fuels continue to rise in the
Dominican Republic, to the record highs of between RD$5 and RD$8.90
for the week of June 13 to June 19, according to the Ministry of
Industry Trade and MSMEs (MICM).

Premium gasoline registers an increase of RD$7.00 per gallon, it
will be sold at RD$198; the regular one rises RD$7.10, it will cost
RD$183.70; regular diesel will be sold at RD$135.90, for an
increase of RD$5.30; the optimal gallon of diesel will cost
RD$147.70, for an increase of RD$5.70, according to Dominican
Today.

A gallon of avtur will be sold at RD$107.50, registering an
increase of RD$8.30; the kerosene will cost RD$131.10, it raises
RD$8.90; fuel oil #6 will be sold at RD$97.00, for an increase of
RD$6.50, the report notes.

One gallon of oil fuel 1% S will be sold at RD$103.30, it rises
RD$5.00; liquefied petroleum gas (LPG) up RD$3.40 per gallon and
sold at $105.40 RD; and natural gas is the only fuel that continues
to maintain its price at RD$28.97 per cubic meter, 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: Tourism Will Be Crucial in Return to 'Normal'
-----------------------------------------------------------------
Dominican Today reports that Dominican Republic's Central Bank, in
its report on preliminary results of economic activity January to
April, stressed that the national tourism sector and its
contribution through the Hotels, Bars and Restaurants activity will
be crucial to normalize productive activities after the pandemic,
even if it takes longer to recover the dynamism of recent years.

"Tourism is a primary source of foreign exchange generation,
responsible for a high proportion of total exports of goods and
services and foreign direct investment," it said, according to
Dominican Today.

It also reported that the activity affects the economy through the
creation of direct and indirect jobs and the demand for
agricultural, industrial and energy products, among others, the
report notes.

"The fundamental aspect that will promote and catalyze the process
of recovery of the economy in the coming months are the extensive
credit facilities brought about by the adopted monetary easing
measures that have made more than RD$120 billion available to
companies and households and US$622 million, contributing to the
decrease in interest rates for access to financing by economic
agents," the report relays.

                     About Dominican Republic

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

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

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

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).




=====================
E L   S A L V A D O R
=====================

EL SALVADOR: IDB Approves $250MM to Strengthen Public Policy
------------------------------------------------------------
The Inter-American Development Bank (IDB) approved a budget support
loan to El Salvador of $250 million to strengthen the efficiency
and effectiveness of public policy and fiscal management to address
the health and economic crisis caused by COVID-19.

The program supports the introduction of temporary measures to
protect the income of vulnerable households and to increase the
liquidity of firms during the health and economic crisis, among
which the allocation of a monetary contribution to low-income
households, suspension temporary payment of domiciliary services,
and the postponement of the payment of taxes for certain groups of
companies and shops. In addition, it promotes measures to support
the economic and fiscal recovery in the post-pandemic period,
including the formation of a High Level Strategic Group with
consultative character to propose strategies for economic
reactivation of the country.

To ensure that the resources destined to attend the pandemic are
executed in the most agile and transparent manner, the program
contemplates temporary changes in the regulations of public
purchases to provide the necessary goods and services to the health
sector in a timely manner, together with measures that They
safeguard transparency such as the publication of periodic reports
of expenditures made and the support of the International
Commission Against Impunity in El Salvador (CICIES) to audit the
use of resources related to the pandemic.

IDB financing will contribute to the country's efforts to obtain
extraordinary financing within the framework of the Emergency Fund,
Recovery and Economic Reconstruction (FERRE), approved by
Legislative Decree 608.

The IDB budget support loan has a repayment term of 20 years, a
grace period of five and a half years and an interest rate based on
LIBOR.




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

GUATEMALA: IMF Approves US$594 Million in Emergency Assistance
--------------------------------------------------------------
The Executive Board of the International Monetary Fund (IMF)
approved Guatemala's request for emergency financial assistance
under the Rapid Financing Instrument (RFI) equivalent to SDR428.6
million (100 percent of quota, or about US$594 million at today's
exchange rate).  The RFI will help the country meet the urgent
balance of payments needs stemming from the COVID-19 pandemic and
catalyze additional funding from other development partners.

Despite strong fundamentals, Guatemala's economic and social model
has proved vulnerable to the COVID-19 outbreak. Extensive reliance
on remittances and necessary lockdown measures are amplifying the
economic effects of the pandemic. Limited healthcare coverage,
especially of the poor and rural populations, pose a substantial
challenge to virus containment. To mitigate the effects of the
pandemic, the authorities are appropriately increasing healthcare
spending and transfers for the most vulnerable, along with a
monetary policy easing, expanded liquidity provision, and
supportive prudential measures.

Following the Executive Board's discussion of Guatemala's request,
Mr. Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair,
issued the following statement:

"The COVID-19 pandemic is severely impacting Guatemala. Faltering
external demand, declining remittances, and the necessary lockdown
and social distancing to contain the virus, have disrupted economic
activity and severely worsened external and fiscal positions. IMF
support under the Rapid Financing Instrument will help address the
urgent balance of payments and fiscal needs, improve confidence,
and catalyze support from other external partners.

"The authorities have marshaled a sizable and well-targeted fiscal
response to counter COVID-19, shoring up healthcare facilities,
protecting the most vulnerable, and mitigating the impact on firms
and employees. Guatemala's low debt levels allow for this temporary
fiscal support while preserving debt sustainability. Narrowing the
tax gap remains a priority along with rationalizing non-essential
spending to contain the fiscal deficit. The authorities are
committed to keep monetization of the deficit temporary and
limited.

"To support the recovery and counter future shocks, the authorities
intend to maintain an accommodative monetary policy stance and
exchange rate flexibility. While credit risk regulations have
temporarily been eased to facilitate loan restructuring, the
authorities are closely monitoring banks' exposures and the levels
of provisioning to ensure the stability of the financial system.

"The Guatemalan authorities have reaffirmed their commitment to
ensure that emergency financing is used effectively, transparently,
and through reinforced governance mechanisms."




=================
N I C A R A G U A
=================

NICARAGUA: Fitch Alters Outlook on 'B-' LT IDR to Negative
----------------------------------------------------------
Fitch Ratings has affirmed Nicaragua's ratings, including the
Long-Term Foreign Currency Issuer Default Rating at 'B-', and
revised the Outlook to Negative from Stable.

In accordance with Fitch's policies, the issuer appealed and
provided additional information to Fitch that resulted in a rating
action that is different than the original rating committee
outcome.

KEY RATING DRIVERS

The Negative Outlook reflects increased financing risks amid a
revenue shock caused by the coronavirus pandemic, rising spending
pressures, and constraints posed by a small local market and
international sanctions. The government is likely to draw on its
deposits to finance the 2020 and 2021 deficits. Nicaragua's
crawling peg limits its monetary financing options, and Fitch
thinks sanctions will complicate access to large-scale financing
from the IMF and some other multilateral institutions.

Local financing conditions for the government are showing signs of
stress. Since March 2020, the government has been unable to issue
in local currency and sold only bonds payable in USD, an instrument
introduced in October 2019. So far in 2020, the government has sold
0.3% of GDP in local bonds, 72% of this amount has been in USD with
a weighted average interest of 10.6%. The general government has
local maturities worth 1.2% of GDP in 2020, and Fitch assumes these
local currency maturities will be rolled over in USD. Local banks
may be reluctant to increase their exposure to the sovereign given
heightened political risk and weak growth prospects.

Availability of international financing is constrained by
sanctions. The central government continues to receive pledged
disbursements, but there is uncertainty over the size of new
disbursements. Fitch does not expect that annual net external
financing in 2020 and 2021 will be meaningfully higher than that of
2019 (1.4% of GDP). External maturities are around 1% of GDP a
year. In 2020, the U.S. sanctioned five people with close ties to
the president, bringing the total to 19 including the vice
president and minister of finance. In May, the EU sanctioned six
government officials and Canada has maintained the sanctions on
nine individuals announced in June 2019. Fitch expects sanctions to
remain in place in 2020 and 2021.

Nicaragua has refrained from coronavirus lockdown measures; which
Fitch assumes is due to concerns about their impact on the economy
and particularly on fiscal revenues. There have been no fiscal
measures to support the economy during the pandemic. As a result,
Fitch projects that the general government deficit will be
contained to 2.8% of GDP in 2020.

Moody's forecasts a widening of the deficit to 3.6% of GDP in 2021
owing to spending ahead of the November 2021 elections and the
continued widening of the social security deficit. The government
implemented significant fiscal consolidation after the social
unrest in 2018 including pay freezes for public employees, tax
increases and social security reforms. Implementing additional
revenue raising measures or continued spending restraint may be
challenging in the context of elections and latent social tensions;
ad hoc and potentially unsustainable measures to contain the
deficit are possible.

Financing constraints are likely to contain the deficits in 2020
and 2021, although this could also entail tighter liquidity
conditions for the government. Fitch expects the government will
need to draw on deposits (currently 4.7% of GDP; up from 3.8% at
end-2019) as it did in 2018 when it used deposits worth 2.4% of GDP
to cover the fiscal deficit.

Fitch expects general government debt-to-GDP to rise to 49% in 2020
putting it at the same level as the historic 'B' median. The
government does not have any international bonds and most of its
external debt is concessional. Interest payments in 2019 at 4.1% of
revenue compare favorably with the historic 'B' median of 8.6%.

There could be a flight to safer assets in 2020 due to higher
uncertainty caused by the pandemic and mounting political risk,
although end-April data show international reserves had risen. In
2018, reserves fell by 18.0% or 3.8% of GDP. In 2019, despite a
current account surplus of 6% of GDP, reserves only grew by 1.1% of
GDP; during that period local banks increased their foreign
currency cash assets by 2.7% of GDP and their investments in
financial instruments issued by foreign institutions grew by 2.5%
of GDP. In 2019, local credit declined by 15.1% or 5.3% of GDP.

The crawling peg against the USD is a key policy anchor and Fitch
expects this to be maintained. Notable import compression sharply
swung the current account balance from a 7.1% of GDP deficit in
2017 to a 6.0% surplus in 2019. Fitch projects that in 2020 the
current account surplus will narrow to 1.4% of GDP due to a fall in
service exports (mostly tourism) and remittances. Fitch projects
that exports will fall by 10.0% in 2020 driven by weaker global
demand. Net FDI will remain positive (2.9% of GDP). Reserves are
expected to cover 3.5 months of current external payments at the
end of 2020, which is slightly lower than the 'B' median of 3.8
months, and along with commercial bank FX reserves support a
favorable liquidity ratio of 196%.

Fitch projects that the economy will contract by 4.5% in 2020, the
third consecutive year of recession. The expected contraction in
remittances, maquila exports and tourism revenues will drive down
consumption; low investment as evidenced by the fall in credit and
sharply lower gross fixed capital formation in 2019 also undermine
growth prospects. The expected 2020 GDP contraction is tempered by
a fall in imports of 8% year-on-year. In 2021, Fitch expects modest
growth of 1.2%, constrained by uncertainty around the presidential
elections.

General elections in November 2021 could reignite political
violence. The political environment in the country deteriorated
markedly after the April 2018 demonstrations that according to
international observers resulted in around 400 deaths and led
several political leaders to flee the country. While the political
environment improved during 2019 the pandemic has renewed tensions.
Nicaragua's average World Bank governance indicators have
deteriorated to a percentile ranking of 18.2 in 2018 from 29.1 in
2017.

ESG - Governance: Nicaragua has an ESG Relevance Score of 5 for
both Political Stability and Rights and for the Rule of Law,
Institutional and Regulatory Quality and Control of Corruption, as
is the case for all sovereigns. These scores reflect the high
weight that the World Bank Governance Indicators have in its
proprietary Sovereign Rating Model. Nicaragua has a low WBGI
percentile ranking at 18, reflecting recent episodes of political
violence, relatively weak rights for participation in the political
process and uneven application of the rule of law.

SOVEREIGN RATING MODEL AND QUALITATIVE OVERLAY

Fitch's proprietary SRM assigns Nicaragua a score equivalent to a
rating of 'CCC+' on the Long-Term Foreign Currency IDR scale.

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

  -- Macroeconomic policy and performance: +1 notch, to reflect
Nicaragua's consistent external and fiscal policy response that
supports credibility of the crawling peg.

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

RATING SENSITIVITIES

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

  -- An inability to access external or local sources of financing
or evidence of heightened risks in meeting debt-service payments;

  -- A reduction in external liquidity that forces a disorderly
adjustment to the exchange rate regime.

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

  -- Fiscal consolidation that alleviates the overall financing
needs and/or evidence of access to sufficient funding to alleviate
near-term financing concerns.

BEST/WORST CASE RATING SCENARIO

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

KEY ASSUMPTIONS

  -- Fitch assumes the global economy and international oil prices
perform in line with its latest Global Economic Outlook published
on May 26, 2020.

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

Nicaragua has an ESG Relevance Score of 5 for Political Stability
and Rights as World Bank Governance Indicators have the highest
weight in Fitch's SRM and is therefore highly relevant to the
rating and a key rating driver with a high weight. Since 2018, when
demonstrations against the government led to a significant death
toll, there has been a deterioration in political stability.

Nicaragua has an ESG Relevance Score of 5 for Rule of Law,
Institutional and Regulatory Quality and Control of Corruption as
World Bank Governance Indicators have the highest weight in the SRM
and are therefore highly relevant to the rating and a key rating
driver with a high weight.

Nicaragua has an ESG Relevance Score of 4 for Human Rights and
Political Freedom as World Bank Indicators have the highest weight
in Fitch's SRM and are therefore relevant to the rating and a
rating driver.

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

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

Nicaragua

  - LT IDR B-; Affirmed

  - ST IDR B; Affirmed

  - LC LT IDR B-; Affirmed

  - LC ST IDR B; Affirmed

  - Country Ceiling B-; Affirmed




===========
P A N A M A
===========

ENA NORTE: Fitch Cuts Ratings on Notes to 'BB', on Watch Negative
-----------------------------------------------------------------
Fitch Ratings has taken the following rating actions on ENA Sur,
ENA Norte and ENA Este Trusts' notes:

  -- ENA Sur Trust (ENA Sur): 'BBB' and 'AAA(pan)' ratings placed
on Rating Watch Negative. The Standalone Credit Profile (SCP) of
'bbb' was also placed on Rating Watch Negative

  -- ENA Este, S.A. (ENA Este): 'BB-' and 'A(pan)' ratings placed
on Rating Watch Negative. SCP downgraded to 'b-' from 'b' and
placed on Rating Watch Negative.

  -- ENA Norte Trust (ENA Norte): Downgraded to 'BB' from 'BB+' and
to 'A+(pan)' from 'AA-(pan)' and placed on Rating Watch Negative.
SCP downgraded to 'b+' from 'bb' and placed on Rating Watch
Negative.

RATING RATIONALE

The downgrade of ENA Norte to 'BB' from 'BB+' and to 'A+(pan) '
from 'AA-(pan)' reflects the downgrade of its SCP to 'b+' from
'bb'. The new SCP results from a much weaker than expected traffic
performance (January 2020-April 2020 decrease of 38% vs. Fitch's
rating case at 12.5%). Similarly, the downgrade of ENA Este's SCP
to 'b-' from 'b' reflects a worse than anticipated traffic
performance (January 2020-April 2020 decrease of 48% vs. Fitch's
rating case at 12.5%). These challenging circumstances should not
only pose additional pressure to both roads' 2020 cash flow but
also heighten the probability of a lengthier recovery to previous
traffic levels. According to its Government-Related Entity
criteria, which factors the likelihood of government support by
assessing the strength of the linkage between the three issuers and
the Panamanian government, a bottom-up approach of up to three
notches from the SCPs and capped at Panama's rating minus three
notches was applied, resulting in ENA Norte's 'BB' and ENA Este's
'BB-' ratings. ENA Sur's traffic also underperformed; however, its
SCP is considered adequate for the rating category according to
Fitch's applicable criteria.

The Rating Watch Negative on the ratings and SCPs of the three
issuers reflects the possibility that traffic declines in 2020
could be even more severe than those reflected in its rating cases
and the recovery to pre-pandemic levels may be lengthier, further
pressing credit metrics. Fitch believes the recently observed
negative performance in the three roads is a result not only of the
coronavirus pandemic but also of the increased competition from
free alternative routes and means of transportation, which could be
exacerbated by a depressed economic environment in the country,
brought up by the coronavirus pandemic. Further deterioration could
reduce the projects' ability to service debt and derive in the
increased use of the Debt Service Reserve Accounts in the near
term. This risk is heightened by the commuting nature of the
assets' traffic and debt structures with quarterly debt service
payments.

The Negative Rating Watch will be resolved once Fitch has better
visibility on future traffic performance and likely shape of
recovery, as well as on the issuer's ability to manage opex and
capex as to preserve liquidity.

KEY RATING DRIVERS

ENA Sur's and ENA Norte's ratings reflect strong and mature assets
with significant track records. Despite the projects' contractual
ability to adjust tolls according to inflation, tolls have not been
increased since the issuance of the notes; therefore, Fitch
continues to assume that tolls will remain unchanged over the life
of the notes.

ENA Sur's debt structure is robust and has allowed making debt
prepayments as a result of past positive traffic performance. ENA
Sur's rating case Loan Life Coverage Ratio is 1.5x, still adequate
for its SCP's rating category, according to the applicable
criteria. However, the project is expected to make use of the DSRA
in 2020. This fund, which currently has a balance of USD9.6
million, would be reduced by approximately USD3.0 million, if drawn
upon. ENA Sur's rating of 'BBB' reflects its SCP profile, which is
at the same level than Panama's sovereign rating (BBB/Negative).

ENA Norte's debt structure is also robust and has allowed for the
project's deleverage due to the historical positive traffic
performance. Under Fitch Rating Case, its LLCR is at 0.9x, weak
with respect to indicative levels provided by Fitch's applicable
criteria for the SCP rating category. The government's ability to
implement adjustments to toll rates to enhance credit protection
measures have prevented further downgrades at this point in time.
The project is expected to make use of the DSRA in 2020. This fund,
which currently has a balance of USD8.3 million, would be reduced
by approximately USD2.9 million, if drawn upon. ENA Norte's rating
of 'BB' reflects a bottom-up approach, but with a cap of three
notches below Panama's sovereign rating.

ENA Este's rating reflects a young asset that is still going
through a ramp-up phase that started two years later than initially
expected. ENA Este remains highly dependent on ENA Sur's
distribution of excess cash. Under Fitch rating case, LLCR is 0.4x
and the project is expected to make use of the liquidity available
in 2020 and 2021, including the amounts in the DSRA and the
Concentration Account. These accounts, which currently have a joint
balance of USD35.2 million, would be reduced by approximately
USD5.7 million in 2020 and USD5.6 million in 2021, if drawn upon.
The LLCR is weak for the SCP's rating category according to the
applicable criteria. The government's ability to implement
adjustments to toll rates to enhance credit protection measures has
prevented further downgrades at this point. ENA Este's rating of
'BB-' reflects a three-notch uplift from its SCP, and considers the
government's incentives to provide support to address any potential
economic imbalance.

ENA Sur's, ENA Norte's and ENA Este's SCP continues to be the
primary driver of the ratings, which also factors Fitch's moderate
assessments for both the strength of the link between the
Panamanian government and the project, and the perceived incentive
of government support when needed.

The outbreak of coronavirus and related government containment
measures worldwide create an uncertain global environment for the
transportation sector. While related issuers performance data
through most recently available issuer data may not have indicated
impairment, material changes in revenue and cost profile are
occurring across the transportation sector and will continue to
evolve as economic activity and government restrictions respond to
the ongoing situation. Fitch's ratings are forward-looking in
nature, and Fitch will monitor developments in the sector as a
result of the virus outbreak as it relates to severity and duration
and incorporate revised base and rating case qualitative and
quantitative inputs based on expectations for future performance
and assessment of key risks.

Limited Volume Risk - Revenue Risk (Volume): Midrange: The
corridors represent a critical link for commuters and commercial
traffic in the city of Panama. Given the recent infrastructure
changes in the city, the assets face competition from free
alternatives and other transportation modes. While the Sur and
Norte traffic corridors have a long track record, the Este corridor
has recently started operations and traffic shows limited history
with some volatility.

Fitch has changed its assessment on Volume Risk to Midrange from
Stronger in ENA Sur and ENA Norte as a result of its perception of
the existence of increased competition from the free alternative
routes.

Fixed Toll Rates - Revenue Risk (Price): Weaker

Although the concessionaire is entitled to annually adjust toll
rates at inflationary levels, toll rates have not been increased by
inflation and are not expected to be updated in the medium term.
Toll rates are structurally protected with a covenant that
prohibits toll rate reductions if debt service coverage ratio does
not meet a minimum threshold.

Suitable Infrastructure Plan - Infrastructure Development and
Renewal: Midrange

Sound contractual requirements to fund capital expenditure costs
are in place for the three corridors. According to the independent
engineer, the physical condition of Corridor Norte is not at its
best and requires immediate major maintenance. The concessionaire
already has short- and medium-term maintenance plans in place to
perform the works required in certain sections of the corridors.
The capital investment program is internally funded. Given that the
Este corridor was recently built and is in good condition, it is
not expected to require large major maintenance in the medium
term.

Conservative Debt Structure - Debt Structure: Stronger for ENA Sur
and ENA Norte; Midrange for ENA Este

ENA Sur's debt carries fixed interest rates and a fully amortizing
profile. The class A notes have scheduled principal payments while
the class B notes feature a pass-through amortization scheme (flow
zero). While ENA Norte Trust's debt structure is flow zero, ENA
Este Trust's debt is structurally subordinated to ENA Sur as debt
repayment is highly dependent on ENA Sur's distributions. There is
a six-month debt service reserve account for ENA Sur and ENA Norte,
while ENA Este maintains approximately USD35 million as debt
reserve.

Financial Summary

Under Fitch's rating case, ENA Sur generates sufficient revenues to
maintain LLCR at 1.5x, with Class B notes expected to be paid in
2022.

ENA Norte's LLCR in the rating case is at 0.9x, and is weak
according to the applicable criteria for the SCP rating. Debt is
not repaid at its maturity in 2028.

Under the rating case, ENA Este's LLCR is 0.4x, which is weak for
the current rating level according to the applicable criteria, and
debt is not repaid at its maturity in 2024. The transaction's debt
structure (flow zero) and the view that the road is a public asset
provide a considerable timeframe for actions to be taken by the
Panamanian government to address a potential economic imbalance.

PEER GROUP

ENA Sur compares with Red de Carreteras de Occidente (RCO), rated
'BBB'/RWN. ENA Sur's LLCR and RCO's DSCR at 1.5x for both projects
are adequate for the rating category. RCO has a Stronger assessment
for Volume Risk, to some extent offset by a more robust Debt
Structure, which is assessed as Stronger for ENA Sur.

ENA Norte and ENA Este are comparable with Autopistas del Sol's
(AdS) rated 'B'/Negative. The projects provide critical
connectivity within their respective areas and are subject to
increasing competition from free alternatives. Apart from Price
Risk, which is assessed Weaker for ENA Norte and ENA Este, the
three projects share Midrange assessments for the rest of the key
rating drivers. AdS's LLCR is higher at 1.3x; however, its rating
is currently limited by the sovereign rating of Costa Rica.

RATING SENSITIVITIES

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

  -- Given the uncertain future path of the coronavirus-related
containment measures, a positive rating action in unlikely in the
short term.

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

  -- Traffic reduction greater than Fitch's rating case projection
along with the expectation of a slow and/or extended recovery.

  -- Continued deterioration on available liquidity levels to face
operating and financial obligations.

  -- O&M and major maintenance expenses materially above
expectations that cause financial flexibility to be reduced;

  -- A negative rating action on the Panama's sovereign rating.

The Negative Rating Watch will be resolved once Fitch gets more
clarity regarding the severity of the coronavirus pandemic impact
on traffic volumes and the shape of the recovery, as well as on the
issuer's ability to manage opex and capex as to preserve
liquidity.

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.

CREDIT UPDATE

During 2019, ENA Sur's average annual daily traffic (AADT) reached
168,861 vehicles, representing a decrease of 5.3% from previous
year. Actual traffic performance was below Fitch's base
expectations of 172,251 vehicles and a 3.5% decline. Toll revenues
decreased 4.7% and reached USD69.7 million, underperforming Fitch's
expectation of USD73.2 million in its base case.

ENA Norte actual AADT reached 165,793 vehicles in 2019, which
represented a decline of 3.7% from 2018. Actual traffic level was
lower than Fitch's base case expectations of 171,848, the same
level of 2017. Toll revenues decreased 3.8%, reaching USD82.7
million, above Fitch's base case expected USD87.7 million.

ENA Este had an AADT of 25,792 vehicles during 2019, which was
significantly below Fitch's base case expectation of 28,354
vehicles and a growth of 10.5%. Revenues from toll collections were
USD17.8 million, while Fitch expected USD22.3 million in its base
case.

As per the concessionaire, the traffic decreases in the three
corridors during 2019 is attributed to traffic diverting to the
competing route, Domingo Diaz Avenue, which had been partially
closed in the last years due to the construction works of Panama's
Metro Line II, but was opened in May 2019.

As of April 2020, the AADT and toll revenues of the three corridors
have experienced a significant decrease in comparison to the same
period in 2019, mainly due to the measures applied by the
Panamanian government to contain the coronavirus pandemic since
March 2020. In ENA Sur, traffic and revenues have decreased 36.8%
and 37.4%, respectively; ENA Norte's traffic and revenues declined
38.3% and 38.7%, while traffic in ENA Este showed a greater
decrease of 47.8% with toll revenues decreasing 48.9%.

Recently, the Ministry of Health in Panama announced that, due to
the increase of COVID-19 cases during the first week of June, the
gender-based quarantine measure that had been effective until May
31, 2020, will be implemented again starting from June 8, 2020 in
Panama City and West Panama, whereas the current gradual re-opening
of the economy will be maintained. Fitch expects such measures to
have a negative impact in traffic for the three corridors in the
short term.

Total outflows in 2019 for ENA Norte and ENA Este were below
Fitch's base case expectations, mainly because of lower major
maintenance investments as originally budgeted. ENA Sur had
outflows for USD26.5 million, above Fitch's expected outflows of
USD23.5 million; ENA Norte incurred in USD18.2 million and the
agency expected USD26.4 million; ENA Este outflows were USD4.2
million and Fitch expected USD5.8 million. The concessionaire
provided Fitch with new major maintenance budgets for each corridor
with higher amounts for the coming years in comparison to prior
budgets, which address the infrastructure needs for the corridors
until the expiration of each concession.

Actual debt service coverage ratio in 2019 for ENA Sur, which
considers principal payments of Class A notes and interest payments
of Class A and B notes, was 2.2x, below Fitch's base case DSCR of
2.3x. ENA Norte and ENA Este DSCRs, that only consider interest
payments, were 3.4x and 1.1x, while Fitch expected a 3.0x and 1.2x,
respectively.

Principal prepayments of ENA Sur's Class B notes were USD27.0
million, lower than Fitch's base case expectations of USD32.3
million, primarily due to lower toll revenues. Debt prepayments for
ENA Norte were USD44.8 million and Fitch expected USD43.5 million.
The lower than expected toll revenues were offset by lower
expenses. No prepayments were made to ENA Este's debt during 2019,
and Fitch does not expect any voluntary prepayment in the short
term.

FINANCIAL ANALYSIS

Fitch Cases

Fitch has revised its traffic assumptions for the three corridors
under its rating case, to reflect actual traffic as of May 2020
and, derived from the extended quarantine announced by the Ministry
of Health in Panama, assumed a traffic decrease of 70% in June
2020. The agency has also changed its assumption of average
quarterly traffic activity to -45% and -17% for the third and
fourth quarter of the year, respectively, compared to the same
periods of 2019. As a result, Fitch's rating case assumes an
overall traffic decline in 2020 of 40% in ENA Sur and ENA Norte,
and 43% in ENA Este. In 2021, traffic is assumed to recover to 90%
of 2019 level. Starting 2022, traffic compound annual growth rate
(CAGR) for ENA Sur, Norte and Este were assumed at 2.0%, 2.2% and
2.5%, respectively.

Inflation levels were projected at 0.6% in 2020 and 1.0% afterward.
O&M and major maintenance expenses were increased by inflation plus
7.5% for every year from the concessionaire's budget. Toll rates
are assumed to remain fixed for the term of the three issuances.

Under this scenario, LLCR is 1.5x for ENA Sur and Class B notes
would be prepaid in 2022; for ENA Norte, LLCR is 0.9x and debt is
not paid at maturity, with a remaining 5% balance in 2028. ENA
Este's LLCR is 0.4x and debt is not paid at maturity, with a
remaining 62% balance in 2024. In addition, the projects are
expected to make use of the liquidity available in 2020 and 2021 to
comply with their debt service obligations.

SECURITY

Asset Description

Corridor Sur extends over 19.8 kilometers (approximately 12.3
miles) connecting Panama City's international airport (in the East)
to the CBD (in the West). ENA Sur operates the toll road concession
of corridor Sur and has no other significant commercial activities.
Empresa Nacional de Autopistas holds 100% of ENA Sur's shares. The
Panama-Madden Segment (corridor Norte) is a 13.5-kilometer
(8.4-mile) toll road that intersects Phase I on the eastern end and
runs northwest, connecting to the Interstate Colon Highway. Phase
IIB (corridor Este) is an extension of corridor Norte and is part
of Phase II, connecting the eastern end of Phase IIA with the
Pan-American highway in the Tocumen at the international airport.

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).

ENA Este, S.A.

  - ENA Este, S.A./Debt/1 LT; LT BB-; Rating Watch On

  - ENA Este, S.A./Debt/1 Natl LT; Natl LT A(pan); Rating Watch On


ENA Norte Trust

  - ENA Norte Trust/Debt/1 LT; LT BB; Downgrade

  - ENA Norte Trust/Debt/1 Natl LT; Natl LT A+(pan); Downgrade

ENA Sur Trust

  - ENA Sur Trust/Debt/1 LT; LT BBB; Rating Watch On

  - ENA Sur Trust/Debt/1 Natl LT; Natl LT AAA(pan); Rating Watch
On




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

NAVIOS LOGISTICS: Moody's Rates $500MM Senior Secured Notes 'B3'
----------------------------------------------------------------
Moody's Investors Service assigned a B3 rating to the new $500
million guaranteed senior secured notes due 2025 co-issued by
Navios South American Logistics Inc., a port, barge and cabotage
operator in the Hidrovia region in South America, and its
subsidiary Navios Logistics Finance Inc. Moody's also affirmed the
corporate family rating of Navios Logistics at B3 and its
probability of default rating at B3-PD. The outlook remains
negative.

The new notes will refinance the existing guaranteed senior secured
term loan B due 2021 and $375 million guaranteed senior notes due
2022. Moody's expects to withdraw the ratings on the term loan B
and senior notes upon repayment.

RATINGS RATIONALE

The B3 rating assigned to the new notes is in line with Navios
Logistics' CFR because the bond will comprise the majority of the
company's capital structure. The new notes will benefit from first
priority ship mortgages over 4 cabotage tanker vessels as well as
assignment of the company's interests under the Vale port
contract.

Moody's views the transaction as positive, because it will address
upcoming maturities proactively. Aside from a number of smaller
financings, the company now has no major debt maturity until the
new notes are due. Moody's also notes that Navios Logistics is
currently undertaking a trial for iron ore transshipments with
Cargill, which could help increase and diversify the usage of the
iron ore port terminal if it materializes.

Navios Logistics' ratings continue to reflect (1) the diversity of
the company's services, with port terminal, barge and cabotage
operations; (2) the 20-year contract with Vale S.A. and recently
increased use of Navios Logistics' port by Vale; (3) a strong
management team with a successful track record of operations in the
region; (4) the company's declining leverage; (5) its geographic
and customer concentration; (6) the company's close ties with its
controlling shareholder, Navios Maritime Holdings Inc.; (7) risks
related to operating in relatively politically unstable countries;
(8) the company's exposure to cyclical markets and to adverse
weather conditions, such as droughts or floods, which affect
agricultural production and river navigability.

The negative outlook continues to reflect the close ties with
Navios Holdings including its 63.8% equity ownership of Navios
Logistics, as well as Navios Logistics' support of Navios Holdings
through extending a $70 million loan to Navios Holdings.

The B3 rating on the new notes is in line with the CFR, because the
notes reflect the vast majority of the company's debt after the
transaction.

Moody's views the liquidity profile as adequate. As of March 2020,
the company had $34 million of cash on the balance sheet and
Moody's expects the company to be cash generative owing to the Vale
contract. The company has a number of smaller financings in place,
but the next larger maturity will now be the new notes in 2025.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS

From the environmental perspective Navios Logistics is not
significantly impacted by the new IMO 2020 rules now applicable
globally because it operates as a tonnage provider to cabotage
operators who are responsible for using compliant fuel. Still, the
company remains reliant on fuel consumption and will need to
continue to be vigilant in its environmental footprint.

From the governance perspective, Navios Logistics benefits from
being an SEC filer despite being privately held by Navios Holdings
and Peers Business, Inc. Still, it has close ties with other
entities within the Navios Group controlled by the company and the
group CEO, Angeliki Frangou.

Moody's regards the coronavirus outbreak as a social risk under the
ESG framework, given the substantial implications for public health
and safety. While Navios Logistics appears less affected than other
Navios group companies, the overall shipping segment is
significantly affected by the outbreak.

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

Positive pressure on the rating could arise if the rating of Navios
Holdings is upgraded and, at the same time, Navios Logistics
maintains debt/ EBITDA below 5.5x and (funds from operations +
interest)/interest above 2.5x, together with an adequate liquidity
profile. Conversely, negative rating pressure could arise if (1)
the company's liquidity profile weakens materially, (2) its
leverage deteriorates beyond 7.5x, or (3) the rating of Navios
Holdings is downgraded.

LIST OF AFFECTED RATINGS

Assignments:

Issuer: Navios South American Logistics Inc.

Senior Secured Regular Bond/Debenture, Assigned B3

Affirmations:

Issuer: Navios South American Logistics Inc.

Probability of Default Rating, Affirmed B3-PD

Corporate Family Rating, Affirmed B3

Outlook Actions:

Issuer: Navios South American Logistics Inc.

Outlook, Remains Negative

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Shipping
Industry published in December 2017.

Navios South American Logistics Inc. is one of the principal
logistics companies operating in the Hidrovia region river system
(a region of navigable water in South America on the Parana,
Paraguay and Uruguay rivers and part of the River Plate, which
flows through Brazil, Bolivia, Uruguay, Paraguay and Argentina).
NSAL's river operations provide waterborne transportation services
for liquid cargoes (hydrocarbons), liquefied cargoes (liquefied
petroleum gas) and dry cargoes (cereals, cotton pallets, limestone,
mineral iron and crushed stones), as well as port, storage and
related services. Along with these river operations, the company is
one of the main participants in the Argentine cabotage trade. In
2019, Navios Logistics generated revenue of $228 million and EBITDA
of $108 million. Navios Holdings owns 63.8% of Navios Logistics,
the remainder being held by the Argentinean Lopez family through
Peers Business Inc.




===============
X X X X X X X X
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[*] LATAM: Faces Crucial Month to Stop Coronavirus Pandemic
-----------------------------------------------------------
Antonio Broto at EFE News reports that Latin America has become the
new epicenter of the Covid-19 pandemic in recent weeks with more
than a million cases.

The next month will be crucial in slowing the progress of the
outbreak in the region, according to Marcos Espinal, an expert at
the Pan American Health Organization, according to EFE News.

Espinal, director of PAHO's department of communicable diseases,
told EFE News that June will be a "critical month" during which
countries that implemented mitigation measures early "will be able
to manage a little better the overload of cases in their health
systems," the report notes.

He warned that some counties, such as Brazil, Chile and Mexico, are
experiencing daily infection increases of up to four or five
percent and others such as Bolivia and Venezuela are also seeing a
rise in new cases, the report relays.

Espinal warned that the situation was "still very delicate" and has
been complicated by economic problems of the region, the report
discloses.

EFE News notes that Latin America has large pockets of poverty and
a high proportion of informal workers without health coverage or
any means of surviving in lockdown, which has pushed some countries
to consider de-escalation before they have reduced their contagion
rates.

Despite recommendations from PAHO that it is not yet time to
reopen, "each country is sovereign", the report quoted Mr. Espinal
as saying.

Espinal added that the organization understands "that many people
without permanent work have to look for the support of their
families," the report relays.

The expert urged countries to reopen in a "gradual and analytical"
way and encouraged each nation to decide on responsible economic
and financial measures, along with public health authorities and
community representatives, the report notes.

Espinal said Latin American countries have had more time than
Europe to implement prevention measures such as social distancing
and awareness campaigns but warned that many of their health
services are not sufficiently financed for this kind of emergency,
the report says.

"PAHO recommends that countries invest at least six percent of
gross domestic product in public health but most of them do not
reach that figure," Espinal added.

Espinal said he hopes the pandemic will help governments in the
area to become more aware of the need of a properly funded health
service, the report relays.

"The investment must be in quantity and quality for years because
it is not only about dealing with Covid but also other diseases
that are going to come in a region where we already had Zika or
H1N1 flu," he cautioned, the report notes.

Brazil is the second-worst affected country in the world with
almost 700,000 infections and 37,000 deaths, the report discloses.

Elsewhere in the region, Peru has reported almost 200,000
infections, Chile 134,000 and Mexico nearly 120,000, the report
says.

PAHO and WHO have expressed concerns about Haiti, which has one of
the weakest health systems in the region, and Nicaragua, the report
notes.

EFE News relays that Espinal said the latter country "was de facto
trying to adopt group immunity" that has already been tried and
failed in European countries like Sweden and the United Kingdom.

He added that some Latin American governments took preventive
measures relatively early, such as Colombia and the Dominican
Republic, the report relays.

Espinal highlighted the "excellent testing program" of nations such
as Chile and Uruguay, which have carried out 30,000 and 14,000
tests per million inhabitants, respectively, the report adds.



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

Troubled Company Reporter-Latin America is a daily newsletter
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