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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

          Thursday, June 25, 2020, Vol. 21, No. 127

                           Headlines



A R G E N T I N A

ARGENTINA: Farmers Shun Solution to $65 Billion Debt Conundrum


B R A Z I L

ALAGOAS: S&P Alters Outlook to Negative & Affirms 'BB-' ICR
BANCO ORIGINAL: S&P Affirms 'B' ICR Despite Lower Capital Levels
ENERGISA SA: Fitch Alters Outlook on 'BB' LT IDR to Negative
OI SA: Amends Bankruptcy Plan to Add Sale of Mobile Unit


C H I L E

LATAM AIRLINES: Suspends Argentina Ops, Blaming COVID-19 & Gov't.
MASISA SA: Fitch Cuts LongTerm IDRs to B-, On Watch Negative
VTR FINANCE: Moody's Hikes CFR to Ba3, Outlook Stable
VTR FINANCE: S&P Alters Outlook to Positive & Affirms 'B+' ICR


C O L O M B I A

AVIANCA HOLDINGS: Reports $121MM Net Loss in Q1 Due to Pandemic


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Economy on Road to Recovery, Scheker Says
DOMINICAN REPUBLIC: Lost US$603MM in Revenues in January-May Period


G U A T E M A L A

GUATEMALA: Moody's Affirms Ba1 Issuer Rating, Outlook Stable


M E X I C O

UNIFIN FINANCIERA: S&P Affirms 'BB-' Global Scale ICR, Outlook Neg.


P E R U

RUTAS DE LIMA: S&P Keeps 'CCC' ICR on CreditWatch Negative

                           - - - - -


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

ARGENTINA: Farmers Shun Solution to $65 Billion Debt Conundrum
--------------------------------------------------------------
Jonathan Gilbert at Bloomberg News report that farmers are lobbying
against the Argentine government's proposal to sweeten an offer on
its overseas debt with payments tied to agriculture exports.

Economy Minister Martin Guzman, who's leading talks to restructure
$65 billion of foreign debt, has put the idea on the table, though
some creditors favor coupons linked to economic growth, according
to Bloomberg News.

The debt sweetener -- which would trigger a payment whenever
agriculture exports hit a threshold that's not yet been specified
-- has unnerved farm leaders because it may mean keeping in place
unpopular taxes on shipments indefinitely, the report notes.

"A measure like this would mean export taxes couldn't be scrapped
until the bond matures," Argentina's main farming associations said
in a letter to the government seen by Bloomberg News.  "That would
impede tax-relief policies when prices fall or there are weather
disasters," he added.

Ultimately, says the letter sent, the sweetener would curtail
investments in crop production, the report notes.  That's anathema
to farmers, who want to "ensure our future work is not tied to the
whims of a bond," the report discloses.

The relationship between Argentina's government and its farm
industry, which is key to both tax revenues and bringing in
dollars, is straining, the report relates.

President Alberto Fernandez took office six months ago and hiked
export taxes. More recently, the central bank has taken steps to
prompt farmers to sell their soy harvests, the report discloses.
Dual foreign-exchange rates are also driving concerns about inputs,
like fertilizer, becoming expensive, the report says.

Meanwhile, Fernandez has taken control of Vicentin SAIC, a bankrupt
soybean processor, in a move that farmers fear could upset grain
markets, the report notes.

Argentina's crop exports were valued at $23.7 billion last year,
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.




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

ALAGOAS: S&P Alters Outlook to Negative & Affirms 'BB-' ICR
-----------------------------------------------------------
S&P Global Ratings revised the outlook on its global scale 'BB-'
long-term foreign and local currency issuer credit ratings on the
state of Alagoas to negative from stable. S&P also revised the
outlook on its long-term national scale 'brAA+' rating on the state
to negative from stable. S&P affirmed the ratings on both scales.

Outlook

The negative outlook reflects S&P's view of potential risk from
longer-than-expected effects of the pandemic, which would hamper
revenue collection recovery in the state, resulting in consistently
weaker budgetary performance and liqudity position in the next two
years.

Downside scenario

S&P said, "We could lower the ratings on Alagoas in the next 12
months if its budgetary performance deteriorates beyond our
expectations, reflecting higher or more prolonged effects from the
pandemic on the state's finances, such that the state's liquidity
position and debt service coverage erodes further. We could also
downgrade Alagoas if we were to lower the sovereign local and
foreign currency ratings."

Upside scenario

S&P could revise the outlook to stable in the next 12 to 18 months
if the state's liquidity buffer recovers following the pandemic due
to gradual but sustained improvement in revenue collection, while
spending remains contained.

Rationale

Proactive financial management in Alagoas has contributed to a
balanced fiscal trajectory in recent years and cash accumulation.
This, in addition to ample support from the federal government in
the form of transfers and deferral of debt service payments owed to
the federal government, places the state in a relatively favorable
position to navigate the pandemic-related shocks in 2020. S&P said,
"Nonetheless, since additional transfers will not fully compensate
for the sharp drop in locally generated revenue, liquidity is set
to worsen, which in our view could leave Alagoas in a more
vulnerable position if the pandemic's effects last longer than
predicted. While the state has proven to be resilient, we consider
that it still highly relies on the federal government."

Sharp drop in revenue will be partly counterbalanced by federal
government support and use of cash

The COVID-19 pandemic and the impact of quarantine measures on
economic activity are severely hampering Alagoas' fiscal
performance. S&P expects budgetary performance to wane in 2020 due
to a sharp drop in revenue and the state to post an operating
surplus of 3.4% of operating revenue and a 4.2% deficit after
capital accounts. This follows five years of balanced fiscal
performance.

The state will significantly benefit from the federal government
support package for local governments this year. Alagoas depends on
transfers from the federal government, which account for about half
of its total revenue. While this has led to some volatility in the
past, the state is expected to receive the same nominal amount of
ordinary transfers as in 2019. Following the approval of the
federal government support package, Alagoas is set to receive R$412
million that will partially compensate the expected slump in
own-source revenues. The state will also receive R$146 million of
support from the federal government for health spending.

Lower debt service payments in 2020 will also provide significant
cash relief. S&P said, "Its balanced budgetary performance has
allowed Alagoas to accumulate cash reserves, which we expect it
will deploy this year. Therefore, we estimate free cash will cover
just below 1.0x of its debt service in the next 12 months, down
from our previous estimate of 1.7x. Following congressional
approval for debt service suspension to the federal government, we
estimate Alagoas' debt service payments at R$323 million in 2020,
jumping to R$628 million in 2021 when payments with the federal
government resume."

S&P considers access to external liquidity as limited because in
order to issue debt under Brazil's intergovernmental framework, the
states must receive authorization from the federal government under
specific rules and in compliance with fiscal targets. In addition,
the states can't maintain open contingent credit lines from banks.

The Brazilian central government determines which local governments
are eligible to receive financing with guarantees based on its
internal debt sustainability analysis (Capacidade de Pagamento, or
CAPAG). Based on this framework, Alagoas currently has the
possibility to borrow with a guarantee from the federal government,
unlike many other states in Brazil. S&P said, "Hence, we expect
Alagoas to fund capital spending in the next three years with new
and existing loans from public banks and multilateral lending
institutions, along with funds from the federal government. Amid
liquidity pressures and to free up resources, we expect the state
to increase borrowings to fund its capital expenditure (capex)
plan. This, in addition to lower revenue, would increase its debt
burden to 105% of operating revenue in 2020. We then expect a
declining trend, with debt at 91% of revenues by 2022."

One longstanding key source of fiscal pressure for Alagoas is its
burdensome pension system. The state passed a pension reform in
December 2019, which in addition to following policies at the
national level, increased the individual contribution rate from 11%
to 14% and incorporated approximately 20,000 new contributors.
Estimated annual resources from the reform are R$300 million,
according to the state management. While this would bring some
relief in the short and medium term, structural issues in the long
term will persist. The pension deficit totaled R$1.5 billion in
2019 (17% of operating revenue), with spending on retired
public-sector employees accounting for about 40% of the state
payroll, which underscores these challenges.

Proactive financial management somewhat mitigates strains from a
rigid institutional framework and weak socio-economic profile

Measures to contain the spread of the COVID-19 pandemic are having
a sizeable impact on Alagoas' economic performance. The state plans
to gradually reopen the economy over the next months, although the
recovery will be slow, and economic risks remain to the downside.

Alagoas is among Brazil's poorest states, which weighs on its
creditworthiness. Its estimated GDP per capita was $4,600 for
2017-2019, which is roughly half of our estimate for the national
level during the same period. Therefore, the state's subpar
socio-economic conditions, which are weaker than those of other
Brazilian states such as those in the southeast, constrain the
ratings. Alagoas' main economic activities are public
administration, tourism, and agriculture (mainly producing sugar
and alcohol--industries that are the second-largest employer in the
state after the public sector). Brazil's sluggish economic growth
also hurts our economic assessment of the state. S&P currently
forecasts national real GDP to contract 4.5% in 2020, with downside
risk.

Governor Renan Filho from the PMDB party was reelected in October
2018 for a second term and will be in office until 2022. The
governor has broad support in the state legislature, given that his
political coalition continues to hold a majority. S&P said, "We
believe this will be pivotal to pass key pieces of legislation,
such as the ongoing downsizing in the state payroll, as well as
efforts to improve local tax revenue collection. Financial
management has been proactive in efforts to strengthen the state's
fiscal accounts and increase transparency and accountability, which
we consider a rating strength."

S&P said, "We assess Brazilian local and regional governments'
(LRGs) institutional framework as volatile and unbalanced.
Structural rigidities of Brazil's intergovernmental system have
prevented LRGs from reaching balanced fiscal accounts. Nonetheless,
we believe the system continues to have an adequate level of
predictability and transparency, with enhanced oversight over LRGs'
finances and adherence to fiscal discipline. The recently approved
fiscal package to support Brazilian LRGs under this severe stress
is set to partially alleviate short-term fiscal pressures, although
it will likely not provide fiscal sustainability in the longer
term."

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.

The committee's assessment of the key rating factors is reflected
in the Ratings Score Snapshot above.

The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision. The
views and the decision of the rating committee are summarized in
the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.

  Ratings List

  Ratings Affirmed; CreditWatch/Outlook Action
                                    To              From
  Alagoas (State of)
   Issuer Credit Rating     BB-/Negative/--      BB-/Stable/--
   Brazil National Scale    brAA+/Negative/--    brAA+/Stable/--


BANCO ORIGINAL: S&P Affirms 'B' ICR Despite Lower Capital Levels
----------------------------------------------------------------
S&P Global Ratings affirmed its global scale 'B' and national scale
'brA-/brA-2' issuer credit ratings on Banco Original S.A. The
outlook remains negative. The 'b' stand-alone credit profile (SACP)
remains unchanged.

Banco Original has entered the economic crisis stemming from
COVID-19 with a volatile financial performance, tempered by stable
asset quality metrics and flexibility to restructure loans. Despite
the robust business growth trend in the past two years (average of
20% in loan growth per year), S&P believes that challenging
economic conditions and market volatility will hinder the bank's
ability to reverse its operating loss trajectory. Costs should
continue to rise as the bank expands its retail business, while
revenue generation should be mild given a likely deep recession in
2020. Moreover, credit loss provisions represent downside risk for
Banco Original's capitalization levels, although the regulator
eased minimum requirements and allowed banks to renegotiate
existing loans with borrowers impacted by COVID-19, postponing
provision recognition.

Therefore, S&P expects the bank to operate with lower
capitalization than historical levels, although it could receive
financial support from shareholders, as seen in previous years. S&P
now projects its risk-adjusted capital to be 5.0%-5.5% in the next
two years.


ENERGISA SA: Fitch Alters Outlook on 'BB' LT IDR to Negative
------------------------------------------------------------
Fitch Ratings affirmed the ratings for Energisa S.A.'s Long-Term
Foreign and Local Currency Issuer Default Ratings at 'BB' and
'BB+', respectively, and National Scale Rating at 'AAA(bra)'. In
addition, Fitch affirmed the ratings of nine Energisa subsidiaries.
The Rating Outlook for the Foreign and Local Currency IDRs remains
Negative, while the Outlook for the National Scale ratings was
revised to Negative from Stable.

The Rating Outlook for the IDRs has been revised to Negative since
May 7, 2020 following the revision of the Rating Outlook for
Brazil's sovereign rating to Negative. The revision of the Rating
Outlook for the National Scale ratings, which would also be applied
to the Rating Outlook of the Local Currency IDRs if they had not
been affected before, reflects the group's challenging scenario to
bring its consolidated credit metrics in line with the current
ratings. Energisa has tight rating headroom in terms of leverage
triggers. Fitch believes the adjusted gross and net leverage ratios
will remain above 4.0x and 3.5x until 2022, respectively, even
considering some financial support from the Brazilian government to
Energisa's distribution companies (DisCos) to mitigate liquidity
and cash flow pressures caused by the coronavirus outbreak.

Fitch's previous projection was for Energisa's financial leverage
to fall to more appropriate levels starting from 2021, based on an
expected increase in power demand of 1.4% in 2020. The current
projection incorporates a more negative scenario, with demand
decreasing by 3.9% in 2020 followed by a recovery of 3.2% in 2021.
A higher than expected demand recovery for the group's DisCos after
the end of the quarantine and the ability to control manageable
costs will be crucial to sustain the current IDRs.

Energisa's ratings are based on the low to moderate business risk
of the Brazilian power distribution segment, which is partially
mitigated by the group's diversification through 11 concessions,
making it one of the largest participants in the market. The
group's credit profile also benefits from sound liquidity based on
solid cash balances and proven access to different sources of
credit. Fitch's ratings reflect a positive track record of
operational efficiency at Energisa's DisCos and a gradual
improvement in the EBITDA of the group's recently acquired
subsidiaries, Energisa Rondonia (ERO, formerly Ceron) and Energisa
Acre (EAC, formerly Eletroacre).

Fitch evaluates Energisa and its subsidiaries on a consolidated
basis, considering the strong legal operational and strategic ties
among the companies, according to the parent and subsidiary linkage
criteria. Fitch also considers the risk in the Brazilian power
sector as moderate. Hydrological risk exposure, inherent to the
sector, is currently above the historical average and is pressuring
the group's consolidated cash flow and financial profile.

KEY RATING DRIVERS

Inability to Deleverage as Previously Expected: The expected weaker
operating performance in 2020 makes it more difficult for Energisa
to bring its consolidated financial leverage metrics to levels more
consistent with its current Local Currency IDRs and National Scale
ratings. Energisa's consolidated total adjusted debt/EBITDA and net
adjusted debt/EBITDA ratios are expected to remain above 4.0x and
3.5x, respectively, until 2022, despite further deleveraging.
Fitch's base case scenario considers adjusted gross and net
leverage of 5.1x and 4.6x, respectively, in 2020, with those ratios
falling to 4.4x and 4.0x in 2021. For the last twelve months ended
in March 2020, the group's financial metrics were pressured, with
adjusted gross and net leverage ratios of 5.7x and 4.5x,
respectively, mainly due to poor performance at ERO and EAC. Fitch
expects that efficiency gains at both subsidiaries and benefits
from the extraordinary tariff review may improve consolidated
performance starting in 2021.

Federal Support Reduces Coronavirus Impacts: Fitch considers the
impacts of the coronavirus pandemic coming from the DisCos
overcontracted energy to meet previous expected demand, delinquency
increase and postponement of tariff readjustment will be fully
covered by federal government support through the called "Conta
Covid." Based on Energisa group's data, the regulator considers
impacts of BRL1.6 billion, which represents 9%, 49% and 88% of the
group's net revenues, EBITDA and cash flow from operations of
BRL17.1 billion, BRL3.2 billion and BRL1.8 billion, respectively,
reported in the LTM ended in March 2020. Energisa's DisCos will
have the right to receive up to BRL1.7 billion from the Conta
Covid, with the final amount depending on real losses to be
recognized over the next months.

Manageable Negative FCF: Even including the federal support,
Energisa's consolidated free cash flow should be negative over the
next couple of years. Weak performance at ERO and EAC will weigh on
cash flow this year, while the group is expected to increase capex
on transmission lines in 2021. EBITDA of BRL3.4 billion in 2020
should increase to BRL4.0 billion in 2021 due to the recovery of
energy sales and stronger EBITDAs at ERO and EAC following this
year's expected tariff review. FCF is seen as about negative BRL950
million in 2020 and negative BRL550 million in 2021, gradually
turning to neutral in 2022 and 2023. Fitch expects average annual
capex and dividend distributions of BRL2.2 billion and BRL534
million per year, respectively, from 2020 to 2023.

Diversified Portfolio Enhances Business Profile: Energisa's credit
profile benefits from the diversification of its concessions in the
energy distribution segment, which dilutes operational risks. The
group has concessions in four different regions in Brazil through
11 DisCos. Positively, DisCos are allowed to pass all their
non-manageable costs through to end-user tariffs, but Fitch views
the distribution segment as riskier than the transmission and
generation segments due to the former's higher exposure to demand
volatility and periodic tariff review processes. Energisa's
investment in the construction of four transmission lines is
positive for the group's business risk, although it will not be
significant on a consolidated basis.

Favorable Concession Areas: Fitch believes that energy consumption
in Energisa's main concession areas should benefit from a stronger
economic dynamic than the national average, mainly due to the
relative strength of the agribusiness sector. Fitch forecasts
average annual energy consumption growth in the group's concession
areas of 2.9% from 2021 to 2023, a rebound from this year's
expected 3.94% decline, reflecting the impact of coronavirus. Last
year Energisa's concessions saw an average volume growth of 4.2%,
comparing favorably with the 1.4% increase seen in Brazil as a
whole.

Positive Operating Performance: Energisa's IDR benefits from the
efficient operating performance of its DisCos. On a consolidated
basis, its EBITDA exceeds the sum of individual regulatory EBITDAs,
defined for each of the nine distribution companies, not including
ERO and EAC, during the last tariff review. In the LTM ended March
2020, the pro forma EBITDA of the nine distributors was BRL3.1
billion compared with a regulatory EBITDA of BRL2.1 billion. In
addition, forecasted investments should improve operating
efficiencies and benefit the performance of some companies in terms
of energy losses and quality indicators. Fitch believes Energisa
should succeed in turning around ERO and EAC based on the positive
results from acquiring distressed companies in the past.

DERIVATION SUMMARY

Energisa's financial profile is more aggressive than many of its
peers in Latin America, such as Enel Americas S.A. (BBB+/Stable),
Empresas Publicas de Medellin E.S.P. (EPM, BBB/Rating Watch
Negative), and Grupo Energia Bogota S.A. E.S.P. (GEB, BBB/Stable).
Energisa's IDRs also considers its concentration in Brazil, which
has a worse operating environment than other countries in the
region such as Chile (A+/Negative) and Colombia (BBB/Negative).

Compared to other Brazilian power companies with operations
predominantly in the distribution segment, Energisa operates in a
concession area with economic growth above national rates and a
strong agribusiness sector. Energisa's business profile is better
than Light S.A.'s (BB-/Stable), which has an aggressive financial
profile, lower financial flexibility and inferior operational
indicators. Light operates in a mature market with service quality
indicators worse regulatory requirements.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within its Rating Case for the Issuer
Include

  -- DisCos's power demand will decrease by 3.94% in 2020, then
increase by 3.2% in 2021 and by an average of 2.7% over the
following two years;

  -- Availability of raise up to BRL1.7 billion in federal
government support to counter the pandemic's effects;

  -- Extraordinary tariff reviews at ERO and EAC in December 2020;

  -- DisCos's recovery of BRL374 million in non-manageable costs in
2021-2022;

  -- Average annual consolidated capex of BRL2.1 billion during
2020-2023;

  -- Transmission lines concluded by March 2024, in line with the
company's schedule.

RATING SENSITIVITIES

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

  -- An upgrade on the Foreign Currency IDRs is unlikely as they
are constrained by the country ceiling (BB);

  -- An upgrade on the Local Currency IDRs will depend on the
group's ability to bring its net leverage to around 2.5x;

  -- The Negative Rating Outlook on the National Scale ratings may
be revised to Stable if Energisa succeeds in reducing its
consolidated total debt/EBITDA and net debt/EBITDA to 4.0x and
3.5x, respectively, by 2021;

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

  -- Inability of the group to reduce its consolidated total
debt/EBITDA and net debt/EBITDA to around 4.0x and 3.5x by 2021;

  -- Deterioration in the liquidity profile at the holding or the
consolidated level;

  -- New projects or acquisitions involving significant amounts of
debt;

  -- A downgrade of the sovereign rating would trigger a downgrade
on the FC and LC IDRs.

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

Adequate Liquidity: Energisa has a moderate to high liquidity
position and presents proven access to credit to finance its
investments and refinance short-term debt, if needed. Cash and
equivalents of BRL3.8 billion covered short-term debt of BRL4.4
billion by 0.9x at the end of March 2020. Fitch sees Energisa as
well positioned to refinance its remaining BRL2.3 billion of debt
maturing in 2020 and expects the group to improve its debt maturity
schedule going forward both on a consolidated basis and at the
holding level. The holding company's cash and equivalents of BRL766
million and its short-term debt of BRL1.3 billion represented a
coverage of 0.6x. The holding company relies on dividends received
from its operational subsidiaries, which reached BRL965 million for
the LTM ended in March 2020 and should remain at a similar level
over the coming years. As of March 2020, total consolidated debt
was BRL18.1 billion, mainly composed of debentures (BRL9.6
billion), Law 4.131 credit lines (BRL4.2 billion) and loans from
Eletrobras (BRL875 million).

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).

Energisa Mato Grosso - Distribuidora de Energia S.A.

  - Natl LT AAA(bra); Affirmed

  - Senior unsecured; Natl LT AAA(bra); Affirmed

Energisa S.A.

  - LT IDR BB; Affirmed

  - LC LT IDR BB+; Affirmed

  - Natl LT AAA(bra); Affirmed

  - Senior unsecured; Natl LT AAA(bra); Affirmed

Energisa Sergipe - Distribuidora de Energia S/A

  - LT IDR BB; Affirmed

  - LC LT IDR BB+; Affirmed

  - Natl LT AAA(bra); Affirmed

  - Senior unsecured; Natl LT AAA(bra); Affirmed

Energisa Mato Grosso do Sul - Distribuidora de Energia S.A.

  - Natl LT AAA(bra); Affirmed

  - Senior unsecured; Natl LT AAA(bra); Affirmed

Energisa Sul Sudeste - Distribuidora de Energia S/A

  - Natl LT AAA(bra); Affirmed

  - Senior unsecured; Natl LT AAA(bra); Affirmed

Energisa Tocantins - Distribuidora de Energia S/A

  - Natl LT AAA(bra); Affirmed

  - Senior unsecured; Natl LT AAA(bra;) Affirmed

Energisa Paraiba - Distribuidora de Energia S/A

  - LT IDR BB; Affirmed

  - LC LT IDR BB+; Affirmed

  - Natl LT AAA(bra); Affirmed

  - Senior unsecured; Natl LT AAA(bra); Affirmed

Energisa Transmissao de Energia S.A.

  - Natl LT AAA(bra); Affirmed

  - Senior unsecured; Natl LT AAA(bra); Affirmed

Alsol Energias Renovaveis

  - Natl LT AAA(bra); Affirmed

  - Senior unsecured; Natl LT AAA(bra); Affirmed

Energisa Minas Gerais - Distribuidora de Energia S/A

  - LT IDR BB; Affirmed

  - LC LT IDR BB+; Affirmed

  - Natl LT AAA(bra); Affirmed

  - Senior unsecured; Natl LT AAA(bra); Affirmed


OI SA: Amends Bankruptcy Plan to Add Sale of Mobile Unit
--------------------------------------------------------
Gabriela Mello at Reuters reports that Brazilian telecoms firm Oi
SA disclosed a proposed plan that, if approved by creditors, would
allow the company to exit a long bankruptcy restructuring process
that began in 2016.

Under the plan, Oi hopes to sell its mobile unit for at least BRL15
billion to refocus the company on its fiber network, according to
Reuters.

Brazil's largest fixed-line carrier had approximately BRL65 billion
($12.65 billion) of debt when it filed for bankruptcy protection,
the report notes.

After selling some non-core assets, including its 25% stake in
Angolan carrier Unitel, to release cash for the expansion of its
fiber-to-the-home (FTTH) broadband service, Oi now seeks to amend
its bankruptcy plan to add its mobile unit to the list of
divestments, the report says.

All major rivals have expressed interest in buying Oi's mobile
business, the report discloses.

In March, TIM Participacoes SA and Telefonica Brasil SA informed
Oi's advisor Bank of America of their interest in kicking off talks
for a potential acquisition of all or part of Oi's mobile division,
the report says.

Oi's efforts to file an amendment proposal to its bankruptcy plan
led the company to postpone its first-quarter earnings initially
scheduled for May 28, the report adds.

                             About Oi SA

Headquartered in Rio de Janeiro, and operating almost exclusively
within Brazil, the Oi Group provides services like fixed-line data
transmission and network usage for phones, internet, and cable,
Wi-Fi hot-spots in public areas, and mobile phone and data
services, and employs approximately 142,000 direct and indirect
employees.

On June 20, 2016, pursuant to Brazilian Law No. 11.101/05 (the
'Brazilian Bankruptcy Law'), Oi S.A. and certain of its
subsidiaries filed for recuperao judicial (judicial
reorganization)
in Brazil.

On June 21, 2016, OI SA and its affiliates Telemar Norte Leste S.A.
and Oi Brasil Holdings Cooperatief U.A. commenced Chapter 15
proceedings (Bankr. S.D.N.Y. Lead Case No. 16-11791).  Ojas N.
Shah, as foreign representative, signed the petitions.

Coop and PTIF are also subject to proceedings in the Netherlands.

The Chapter 15 cases are assigned to Judge Sean H. Lane.

In the Chapter 15 cases, the Debtors are represented by John K.
Cunningham, Esq., and Mark P. Franke, Esq., at White & Case LLP, in
New York; and Jason N. Zakia, Esq., Richard S. Kebrdle, Esq., and
Laura L. Femino, Esq., at White & Case LLP, in Miami, Florida.

On July 22, 2016, the New York Court recognized the Brazilian
Proceedings as foreign main proceedings with respect to the Chapter
15 Debtors, and granted certain additional related relief.

As reported in the Troubled Company Reporter-Latin America on
May 28, 2020, Fitch Ratings has downgraded Oi S.A's ratings,
including the Long-Term Foreign Currency Issuer Default Rating to
'CCC+' from 'B-', the LT Local Currency IDR to 'CCC+' from 'B-',
the National LT Rating to 'B(bra)'/Stable' from 'BB-(bra')/Stable,
and the 2025 notes to 'CCC+'/'RR4' from 'B-'/'RR4'. The Rating
Outlook on the international ratings has been removed.




=========
C H I L E
=========

LATAM AIRLINES: Suspends Argentina Ops, Blaming COVID-19 & Gov't.
-----------------------------------------------------------------
Marcelo Rochabrun at Reuters reports that LATAM Airlines Group said
its Argentine subsidiary will cease operations indefinitely,
canceling all domestic flights, its first major cutback since
filing for bankruptcy protection.

The announcement fell short of saying the company, Latin America's
largest airline, will entirely wind down its subsidiary, although
it is unclear if it will ever resume operations, according to
Reuters.

A LATAM spokesman said the subsidiary will begin a government
process in Argentina before it can lay off 1,715 employees, the
report notes.

The airline said it will not fly domestically in Argentina but will
maintain international flights, managed by other subsidiaries, the
report relates.

LATAM blamed the decision in part on Argentina's government, which
has imposed one of the world's toughest travel bans, drawing an
outcry from the industry, the report notes.

LATAM said "local industry actors" in Argentina had been difficult
to deal with and "made it impossible to foresee a viable and
sustainable long-term project," the report discloses.  LATAM's
competitors have accused Argentina's government of blindsiding
them, the report relates.

A source at Argentina's transport ministry, which regulates air
traffic, argued nothing had been decided yet.

"We have to wait for LATAM to meet with the labor ministry," the
source said, the report notes.

Airlines around the world are reeling from the coronavirus pandemic
but especially so in Latin America, where governments have been
reluctant to offer state aid to carriers while also imposing
tougher travel bans than in other regions, the report relays.

LATAM's top rival, Colombia's Avianca Holdings, has also filed for
bankruptcy protection and liquidated its subsidiary in Peru, the
report notes.

Argentina's market is dominated by state-owned airline Aerolineas
Argentinas, the report relates.  LATAM was the No. 2 player in the
country, followed by ultra low-cost rivals Flybondi and JetSMART,
which have made significant inroads in recent years, the report
notes.

LATAM also operates domestic flights in Chile, Peru, Brazil and
Colombia.  The Argentine unit is not part of its bankruptcy
restructuring process.

                      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.


MASISA SA: Fitch Cuts LongTerm IDRs to B-, On Watch Negative
------------------------------------------------------------
Fitch Ratings has downgraded the Long-Term Foreign and Local
Currency Issuer Default Ratings of Masisa S.A. to 'B-' from 'B' and
its National Long-Term Rating to 'BB(cl)' from 'BBB-(cl)'. In
addition, the ratings are placed on Rating Watch Negative. At the
same time, Fitch has withdrawn Masisa's IDRs as they are no longer
considered by Fitch to be relevant to the agency's coverage.

The downgrade reflects Masisa's weak operating metrics and the
negative impact upon the company's credit profile due to the
coronavirus pandemic, which will add more pressure to a company
that had weak operating results in 2020 and during the first
quarter of 2020.

The Negative Watch incorporates Masisa's poor liquidity to face the
negative impact of the current health crisis in its main markets,
the strong dependence of the external sources of financing in the
short term, the reliance of the company in the funds coming from
the Chilean Forestry asset sale, and the uncertain impact the
health crisis will have in the company's metric even after the
transaction concludes.

A revision of the Rating Watch will depend on Masisa's ability to
manage its liquidity while waiting to receive the funds for the
sale of the forestry assets in Chile, as well as the capital
structure resulting for the company after reducing debt and
successfully surpassing the health crisis.

Fitch has withdrawn Masisa's IDRs reasons as they are no longer
considered by Fitch to be relevant to the agency's coverage.

KEY RATING DRIVERS

Deteriorated Operating Environment: The social uprising in 4Q19 in
Chile affected the company's results, as many retail businesses had
to close and construction activity decline. Masisa's wood shipment
to China reduced in the 1Q20, as the coronavirus impacted the
country. Currently, the virus and lockdown are affecting sales and
constructions in Latin America, increasing the impact, and Fitch
expects a slow recovery of demand during 2021.

Weak Operating Metrics: Masisa has not been able to improve the
EBITDA generation from its industrial business due to weak demand,
the trade dispute between the U.S. and China and the international
health crisis. Fitch expects Masisa to generate about USD10 million
of EBITDA in 2020, compared with USD19 million in 2019 (as per
Fitch's criteria), and to keep posting negative FCF in 2020. EBITDA
recovery during 2021 is highly uncertain. Going forward, the lower
capex requirements and financial load should allow Masisa to post
neutral to positive FCF.

High Leverage: Masisa was unable to improve its capital structure
after finalizing the sale of assets in Brazil, Argentina and
Mexico. As of December 2019, net debt to EBITDA ratio was 20x, and
Fitch projects leverage will remain high in 2020 despite the debt
reduction, given the impact of coronavirus in the company's EBITDA.
As of March 31, 2020, net debt was USD438 million and Masisa
depends on the sale of assets to reduce debt to a more manageable
level, as the company will not be able to reduce debt based on its
internal cash generation. If Masisa is successful in the forestry
assets sales, Fitch expects the company to use the proceeds to
reduce net debt to about USD111 million.

Sale of Forestry Assets Key Consideration: The sale of the forestry
assets in Chile for USD350 million will allow the company to reduce
leverage to manageable levels and strengthen its liquidity position
and capital structure. Masisa intends to develop its business based
on long-term contracts with wood suppliers. However, the
divestiture of the forestry assets will leave Masisa with limited
physical assets that it can monetize to improve liquidity during
downturns, as it has done in the past. Fitch will evaluate the
final capital structure after the transaction concludes, which
could lead to positive rating action depending on the amount of
debt that is prepaid and the recurrent operational cash flow that
Masisa would be able to generate under its new strategy based only
on the industrial business.

Less Diversified Business Profile: Masisa's strategy to sell its
industrial units in Argentina, Brazil and two out of three
facilities in Mexico weakened the company's geographic
diversification and business scale. The company is facing a
significant reduction in size and operational presence in key
markets, while trying to differentiate itself from strong regional
competition posed by Celulosa Arauco y Constitucion S.A.
(BBB/Negative) and other board producers. With a revamped strategy,
Masisa will concentrate its business strategy on value-added board
products and services in the Andean region, Central America, the
U.S., Canada and other export markets. Competition in many of these
markets remains intense.

DERIVATION SUMMARY

Masisa has operations in Chile and Mexico, and a commercial
presence in the U.S. and all Latin America. Masisa is an important
producer of wood boards in Latin America, with 1.1 million cubic
meters of installed capacity of particle boards, MDP and MDF,
218,000 cubic meters of moldings, and 212,000 cubic meters of sawn
wood. Masisa's 'B-' rating results from its high leverage, low
liquidity and poor financial flexibility in comparison to peers to
face downturns in the economy.

The company's main competitors are Brazilian Duratex (not rated),
the segment leader in Latin America, and Chilean-based Arauco
(BBB/Negative), the world's third-largest market pulp company and
one of the largest board and lumber manufacturers.

Among the Latin America forestry product companies, like Arauco,
Empresas CMPC S.A. (BBB/Stable), Suzano S.A. (BBB-/Negative), and
Klabin S.A. (BB+/Stable), Masisa is more exposed to economic
weakness in Latin America, as its activities are concentrated in
boards, it has higher leverage and a more limited liquidity
position. After the sales of its industrial facilities in
Argentina, Brazil and two of three of its production facilities in
Mexico, Masisa's EBITDA generation is largely concentrated in
industrial production from Chile, which is mitigated by exports
that represent 57% of revenue.

KEY ASSUMPTIONS

  -- Proceeds from forestry assets sale enter the company in 2020,
and are used to reduce debt in approximately USD340 million.

  -- Coronavirus impacts sales and margins in 2020, with 2Q showing
the lowest point, and a slow recovery starting in July.

  -- Masisa is able to refinance its short-term maturing debt and
improve its maturity schedule.

  -- No further assets sales are included in the projections.

RATING SENSITIVITIES

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

  -- Leverage reduction to below 5.0x.

  -- Extension of the maturity profile.

  -- Positive FCF.

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

  -- Failure to reduce gross leverage below 6.0x.

  -- A continuous negative FCF.

  -- Inability to manage its short-term commitments and restructure
debt in the long term.

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

Weak Liquidity: As of March 31, 2020, Masisa had USD35 million of
cash and USD213 million of short-term debt. In June 2020, the
company paid the amortization of one of its local bonds for USD7
million. In addition, several working capital bank loans that are
due during the second and third quarter of 2020 were already
extended until September, and Fitch expects Masisa to keep renewing
the bank loans.

Fitch expects Masisa to be able to keep renewing its short term
debt while they expect to receive the full amount of the forestry
asset sale, and to be able to extend its maturity profile
afterwards, which gives them room to be rated in the 'B' category,
instead of the 'CCC'. The announced sale of its forestry base,
while it will improve liquidity, removes the company from a reserve
of value previously used in moments of economic downturns, which
could limit financial flexibility in the long run.

As of March 31, 2020, Masisa's total debt of USD473 million
consisted of USD193 million of local bonds and USD280 million of
bank debt.

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

Masisa has an ESG Relevance Score of 4 for EIM Exposure to
Environmental Impacts as Chilean forestry companies are exposed to
forest fire risk, which has a negative impact on the credit
profile, and is relevant to the ratings in conjunction with other
factors.

Masisa has an ESG Relevance Score of 4 for Management Strategy due
to below-average execution on operational strategy. Fitch
acknowledges company efforts to improve operational results and
restructure its operations in the past three years, though the pace
of recovery has been slower than anticipated and has led to further
asset sales (Brazil, Argentina, Mexico and forestry assets).

Except for the matters discussed above, 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).

Masisa S.A.

  - LT IDR B-; Downgrade

  - LT IDR WD; Withdrawn

  - LC LT IDR B-; Downgrade

  - LC LT IDR WD; Withdrawn

  - Natl LT BB(cl); Downgrade

  - Nat Equity Rating Segunda Clase(cl); Downgrade

  - Senior unsecured; Natl LT BB(cl); Downgrade


VTR FINANCE: Moody's Hikes CFR to Ba3, Outlook Stable
-----------------------------------------------------
Moody's Investors Service upgraded VTR Finance N.V.'s corporate
family rating to Ba3 from B1. At the same time, Moody's assigned a
Ba3 rating to the proposed $600 million senior secured notes to be
issued by VTR Comunicaciones SpA, an indirect subsidiary of VTR
Finance N.V., and a B1 rating to the proposed $550 million senior
notes to be issued by VTR Finance N.V. The outlook is stable.

The ratings of the proposed notes assume that the final transaction
documents will not be materially different from draft legal
documentation reviewed by Moody's to date and that these agreements
are legally valid, binding and enforceable.

Upgrade:

Issuer: VTR Finance N.V.

Corporate Family Rating, Upgraded to Ba3 from B1

Assignments:

Issuer: VTR Comunicaciones SpA

$600 million Senior Secured Regular Bond/Debenture, Assigned Ba3

Issuer: VTR Finance N.V.

$550 million Senior Regular Bond/Debenture, Assigned B1

Outlook Actions:

Issuer: VTR Comunicaciones SpA

Outlook, Assigned Stable

Issuer: VTR Finance N.V.

Outlook, Remains Stable

RATINGS RATIONALE

The upgrade of VTR's CFR to Ba3 reflects its solid track record in
operating performance, with regular revenue and EBITDA growth and
maintenance of a stable EBITDA margin, its resilient free cash flow
generation and solid liquidity. It also considers the integration
of Cabletica, which will represent approximately 10% of group
revenue, add geographic diversification, and reduce leverage by
around 0.2-0.3x.

VTR's Ba3 CFR also reflects a sustained growth in its subscriber
base, which is mainly driven by demand for broadband; its leading
market share in broadband and pay TV, supported by VTR's strategy
of offering services with the highest speed; and a strong and
stable EBITDA margin of around 40%. Constraints to the rating are
VTR's small scale and still-high concentration on one main market,
Chile, and high capital intensity, which limits free cash flow
generation. The rating also takes into consideration a financial
policy with regular cash distributions to Liberty Latin America
Ltd, VTR's parent company, and risks related to LLA's acquisition
strategy.

As part of the refinancing transaction, LLA intends to contribute
its 80% stake in Cabletica, a fixed-line operator in Costa Rica
which it acquired in October 2018 for an enterprise value of CRC146
billion (about $250 million; valuation for 100% of the business),
into the VTR credit pool. The contribution is expected to be
completed in Q1 2021.

Chile, VTR's main market, continues to be hit by the growing spread
of the coronavirus outbreak and Moody's projects a GDP contraction
of 4.6% in 2020 followed by 3.7% growth in 2021. Moody's
nevertheless expects VTR's business to remain resilient: while
Moody's projects that revenue and EBITDA will remain broadly flat
in 2020, it still expects VTR to generate positive free cash flow
and maintain a stable financial profile. Moody's projects that VTR
will return to revenue and EBITDA growth in 2021 and, considering
the contribution of Cabletica, leverage (i.e. Moody's-adjusted
gross debt/EBITDA) will decline to close to 4x by the end of 2021.

Moody's regards the coronavirus outbreak as a social risk under its
ESG framework, given the substantial implications for public health
and safety.

VTR launched a refinancing transaction which includes the issuance
of $600 million of senior secured notes due January 2028 at VTR
Comunicaciones SpA, and $550 million of senior notes due July 2028
at VTR Finance N.V. Proceeds from the notes issuance, together with
about $170 million of proceeds from the unwinding of cross-currency
swaps, will be used to repay in full VTR's existing $1.26 billion
notes due 2024, pay fees and expenses related to the transaction
and for general corporate purposes. After the completion of the
issuances, Moody's expects VTR to put new hedging in place to
mitigate the effects from the Chilean peso volatility.

The new senior secured notes at VTR Comunicaciones SpA will rank
pari passu with VTR's existing term loan and revolving credit
facilities and share the same collateral, including pledges over
the shares of VTR Comunicaciones SpA and VTR.com SpA. Cabletica
will not be part of the secured debt restricted group. The senior
secured notes and the debt pari passu with the senior secured notes
will represent the largest portion of VTR's debt and the notes
rating is aligned with that of the CFR at Ba3. The new senior notes
at VTR Finance N.V. will be secured only by the equity of the
issuer, with no guarantees from operating subsidiaries and will be
structurally subordinated to the new senior secured notes, the term
loan and RCFs at VTR Comunicaciones SpA, vendor financing (about
$79 million), as well as the debt of Cabletica (about $120
million), resulting in the notes being rated B1, one notch below
the CFR of Ba3.

The stable outlook reflects Moody's expectation that VTR will
continue to record growth in its subscriber and revenue base, and
that its credit metrics will remain within its parameters for the
Ba3 on a sustained basis, along with at least an adequate
liquidity. The company's ongoing focus on cost efficiencies and
some hedging will also enable it to maintain its strong
profitability despite the large depreciation in the Chilean peso
recently.

VTR's liquidity is solid, supported by its CLP180 billion (about
$210 million) cash balance as of March 31, 2020, annual FCF
generation of about CLP30 billion (about $40 million) and RCFs
totaling about $240 million, of which CLP79 billion had been drawn
as of March 2020 (about $90 million). Its maturity profile is
comfortable, with few short-term maturities (about CLP70 billion
vendor financing as of March 2020). The next maturity is a required
amortization of CLP70.5 billion in 2022 from its CLP174 billion
term loan which matures in 2023. Although there is no formal policy
to sweep excess cash flow to its parent company, Moody's expects
VTR to regularly distribute excess cash to LLA. The refinancing
transaction also includes the extension of VTR's $185 million RCF
which will now mature in June 2026.

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

Moody's would consider a positive rating action if leverage
(Moody's-adjusted debt/EBITDA) is below 3.25x on a sustained basis,
and interest coverage (Moody's-adjusted EBITDA - capital
spending/interest) is above 3.0x on a sustained basis. A positive
rating action would also be conditional on maintenance of adequate
or better liquidity, sustained EBITDA growth and low probability of
near-term event risks or material unfavorable changes in
regulation, competition, financial policy and capital structure.

Moody's would consider a negative rating action if leverage
(Moody's-adjusted debt/EBITDA) is sustained above 4.25x. A
downgrade would also be considered if liquidity or key performance
measures (such as subscriber trends or market share) deteriorate
considerably. Moody's would view negatively material unfavorable
changes in regulations, competition, financial policies, capital
structure or the operating model, which lead to a significant rise
in credit risk.

The principal methodology used in these ratings was Pay TV
published in December 2018.

VTR provides broadband and wireless communications services in
Chile and is a wholly owned subsidiary of Liberty Latin America
Ltd. As of March 2020, VTR's network passed 3.72 million homes and
served about 2.97 million fixed revenue generating units. The
company also served around 304,900 mobile subscribers as a mobile
virtual network operator. The company reported revenue of CLP663
billion (around $800 million) for the 12 months to March 2020.
Cabletica is a leading fixed-line operator in Costa Rica, offering
broadband, Pay TV and fixed telephony services, with about 600
thousand homes passed and 430 thousand RGUs as of March 2020, and
revenue of CRC77 billion (around $130 million) in 2019.


VTR FINANCE: S&P Alters Outlook to Positive & Affirms 'B+' ICR
--------------------------------------------------------------
S&P Global Ratings revised its outlook on Chilean telecom operator,
VTR Finance, to positive from stable and affirmed the 'B+' issuer
credit rating and issue-level rating on existing $1.26 billion
senior notes. S&P also assigned a 'B' issue-level rating to VTR
Finance's proposed $550 million senior notes and a 'B+' rating to
VTR Comunicaciones' proposed $600 million senior secured notes.

Together with debt refinancing, Liberty Latin America, VTR
Finance's parent, announced it will transfer its 80% stake in
Cabletica, which it acquired in October 2018, to VTR Finance. The
group intends to complete the contribution by the first quarter of
2021. Cabletica is the leading pay-TV (a 25% market share) and
second-largest broadband operator (20%) in Costa Rica. The company
has 430,000 RGUs (that will add to VTR Finance's 3 million RGUs),
and revenue and EBITDA of CLP92 billion and CLP32 billion,
respectively, in 2019. S&P said, "Once incorporated, we expect
Cabletica to represent 10%-15% of consolidate revenue and operating
cash flows. VTR's management team has been overseeing Cabletica
since the acquisition, delivering strong operational performance
with CAGR of 12% in the past three years. We believe the
integration will improve VTR's credit profile slightly through
greater scale and diversification and increasing exposure to an
attractive market with strong growth prospects and somewhat less
competitive than the Chilean one. We expect Cabletica to maintain a
mid-single digit revenue growth in the next couple of years."

Following the entrance of a fourth player in Chile's mobile segment
and the telecom market's shift towards improved broadband
capabilities have prompted most telecom operators to focus on the
fixed segment, heightening competition. Nevertheless, VTR Finance's
ample network, which covers about 55% of Chilean homes; 100% HFC
technology, its solid two-way capability that allows it to offer
high and ultra-high-speed internet; and the persistent large
investments have underpinned stable revenue growth and sound
profitability. The company's revenues CAGR has been 3.8% in the
past five years and EBITDA margin has been persistently above 40%.
As a result, even when the company has maintained high capital
intensity, with capex to revenues of 20%-22% while even granting
some intercompany loans to its holding company, debt to EBITDA has
remained consistently at 3.6x-3.7x. S&P expects almost flat revenue
growth in 2020 amid the impact of COVID-19, with some downside
pressure in the video segment but minor growth in the broadband
one, and a recovery in growth rates starting in 2021. But given the
company's business mix and higher-end customer focus, S&P expects
debt to EBITDA to be largely stable in 2020 and for some minor
deleveraging in 2021 amid stronger results and Cabletica's
consolidation. Cabletica's net debt to EBITDA was 2.2x as of
December 2019.

VTR Finance has a smaller scale and narrower geographic
diversification than those of its regional peers that also have a
consolidated market position in the extensive mobile segment.
Additionally, limited cash flows also constrain ratings. S&P said,
"In line with the company's program to expand its network, we
expect VTR Finance to use most of its operating cash flows to
finance capital expenditures (capex; estimated 18%-20% of revenue),
resulting in a narrow free operating cash flow (FOCF) and
preventing a more rapid deleveraging. We expect debt to EBITDA of
3.5x-4.0x for the next two years."




===============
C O L O M B I A
===============

AVIANCA HOLDINGS: Reports $121MM Net Loss in Q1 Due to Pandemic
---------------------------------------------------------------
Luis Jaime Acosta at Reuters reports that Latin America's No. 2
carrier Avianca Holdings reported a $121 million loss for the first
quarter, accounting for just two weeks of severe impact from the
coronavirus crisis.

The airline was the first in the region to file for bankruptcy
protection in the United States and spent a full three months
grounded without operating any regular flights, according to
Reuters.

It has since restarted some operations in Ecuador, but its hubs in
Colombia, El Salvador and Peru remain closed, the report notes.

Avianca's revenue fell 18% in the first three months of the year to
$943 million, but had fallen 51% by early June, the airline said,
the report relays.

Avianca did not report an impairment to its goodwill, which is the
value the company assigns to the different carriers it has bought
over the years, the report discloses.

This is unlike its main rival LATAM Airlines Group, which reported
a $1.73 billion impairment, as coronavirus had led it to have
significantly more debts than assets, the report says.  LATAM has
also filed for bankruptcy protection, the report adds.

                         About Avianca

Avianca -- https://aviancaholdings.com/ -- is the commercial brand
for the collection of passenger airlines and cargo airlines under
the umbrella company Avianca Holdings S.A. Avianca has been flying
uninterrupted for 100 years. With a fleet of 158 aircraft, Avianca
serves 76 destinations in 27 countries within the Americas and
Europe.

Avianca Holdings S.A. and its affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. N.Y. Lead Case No.
20-11133) on May 10, 2020. At the time of the filing, Debtors
disclosed $7,273,900,000 in assets and $7,268,700,000 in
liabilities.  

Judge Martin Glenn oversees the cases.

Debtors tapped Milbank LLP as general bankruptcy counsel; Urdaneta,
Velez, Pearl & Abdallah Abogados and Gomez-Pinzon Abogados S.A.S.
as restructuring counsel; Smith Gambrell and Russell, LLP as
aviation counsel; Seabury Securities LLC as financial restructuring
advisor and investment banker; FTI Consulting, Inc. as financial
restructuring advisor; and Kurtzman Carson Consultants LLC as
claims and noticing agent.

The U.S. Trustee for Region 2 appointed a committee of unsecured
creditors in Debtor's bankruptcy cases on May 22, 2020.




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

DOMINICAN REPUBLIC: Economy on Road to Recovery, Scheker Says
-------------------------------------------------------------
Dominican Today reports that the economic adviser to the Interior
and the Central Bank of the Dominican Republic, Julio Andujar
Scheker, said that despite the 7.5% drop, in year-on-year terms in
the period January-April 2020, multiple economic indicators suggest
that the Dominican Republic's economy bottomed out in April and
that since the beginning of the de-escalation of social isolation,
there has been a gradual recovery.

The specialist assures in an "Open Page" of the Central Bank that
this process has been driven by a set of monetary and financial
measures adopted by this financial institution and by the recovery
of remittances, the behavior of fiscal policy and there is an
expectation Dominican tourism improves much better than that of
other countries on other continents such as Asia, Europe, Africa,
and North America, according to Dominican Today.

                     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: Lost US$603MM in Revenues in January-May Period
-------------------------------------------------------------------
Dominican Today reports that from January to May, the Dominican
State stopped receiving RD$35.04 billion (US$603.4 million) in
revenue, as a result of the pandemic and the measures applied to
aid taxpayers, which affected the tax collection of the three main
collector agencies.

In the first five months of 2020, the income of the Internal
Revenue Directorate (DGII), the General Directorate of Customs
(DGA) and the Treasury fell by 12.6%, compared to the same period
last year, falling sharply in April and May, according to Dominican
Today.

In that period of this year, the three institutions posted revenue
of RD$243.8 billion, lower than the RD$278.8 billion that they
managed to collect between January and May 2019, according to DGII
statistics, the report relays.

Customs collections are the most affected, decreasing 19.4%.

When comparing January-May 2019 with the same date this year,
Customs income fell by RD$10.9 billion, from RD$56.4 billion last
year to RD$45.6 billion in 2020, the report discloses.

Likewise, the DGII's income fell 18% in the aforementioned period
this year, when it equaled that of 2019, the report notes.  If it
had collections of RD$208.6 billion between January and May of last
year, the figure fell to RD$171.0 billion in the 2020, a net fall
of RD$37.6 billion, 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).




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

GUATEMALA: Moody's Affirms Ba1 Issuer Rating, Outlook Stable
------------------------------------------------------------
Moody's Investors Service affirmed the Government of Guatemala's
Ba1 issuer and Ba1 senior unsecured bond ratings. The outlook
remains stable.

The key drivers for the rating affirmation are:

1. A track record of conservative fiscal management and a history
of economic resiliency that support the government's ability to
manage pandemic-related shocks.

2. Weak institutions, low income levels, and domestic political
risk constrain the rating.

The affirmation reflects the balance between the country's credit
positive track record of conservative fiscal management and
resiliency to domestic and external shocks and the credit negative
pressures deriving from a low per capita income and weak
institutions, evidenced by low rule of law and overall government
effectiveness scores as well as occasional domestic political
turmoil flareups.

The stable outlook reflects Moody's expectation that the government
will manage to limit the debt impact of the coronavirus pandemic,
keeping Guatemala's credit metrics at levels consistent with the
current rating.

Guatemala's long-term foreign-currency bond ceiling remains
unchanged at Baa3. The foreign-currency deposit ceiling remains at
Ba2, while the local-currency bond and deposit ceilings remain at
Baa1. The short-term foreign-currency bond ceiling remains at P-3,
while the short-term foreign-currency deposit ceiling remains
unchanged at NP.

RATINGS RATIONALE

RATIONALE FOR THE RATING AFFIRMATION AT Ba1

TRACK RECORD OF CONSERVATIVE FISCAL MANAGEMENT AND ECONOMIC
RESILIENCY THAT SUPPORT THE GOVERNMENT'S ABILITY TO DEAL WITH THE
CURRENT PANDEMIC-RELATED SHOCK

The coronavirus pandemic will lead to a recession and higher fiscal
deficits in Guatemala. Moody's estimates the economy will shrink by
2% this year and the fiscal deficit will reach 6% of GDP, a result
of both increased pandemic-related spending and lower revenue
intake amid the economic slowdown. Guatemala enters this crisis
with relatively moderate debt metrics, an economy that has been
more stable than those of its peers, and the ability to access to
capital markets. Moody's expects that government debt metrics while
higher, will remain well within the range expected for similarly
rated peers, and the pandemic to have no material long-term impact
on Guatemala's long-term growth prospects.

This year's recession follows years of steady economic growth. Real
GDP expanded by an annual average of 3.5% in the decade up to the
pandemic. For next year, Moody's expects 4% growth as the economy
temporarily overshoots its long-term trend growth largely due to a
base effect. The economic recovery coupled with lower
pandemic-related government spending will reduce the fiscal deficit
to 3.8% of GDP in 2021.

Guatemala has a long track record of moderate fiscal deficits. The
average fiscal deficit has been close to 2% of GDP, never breaching
3.3% of GDP during the last 10 years. Low fiscal deficits are
mainly the result of spending restraint given that the government's
revenue base is among the lowest in Moody's rated universe - tax
evasion, a large informal sector, and low tax rates have led to
modest government revenues in the order of 10% of GDP.

Historically low fiscal deficits mean Guatemala entered the
pandemic with lower debt metrics than most peers. Government debt
reached 27% of GDP last year, half the median of all Ba-rated
sovereigns. Moody's estimates that higher government fiscal
deficits in 2020-21 will increase debt to 34% of GDP by 2021 and
that debt ratios will stabilize after that.

The government has maintained market access as it faces funding
needs equivalent to 7.5% of GDP in 2020. Government funding this
year will come from a mix of domestic and international private
sources as well as multilateral lending. On June 10, the IMF
approved a $594 million (0.8% of GDP) disbursement under the Rapid
Financing Instrument (RFI) for budgetary support, marking the first
time Guatemala borrows from the IMF since the 1980s.

WEAK INSTITUTIONS, LOW INCOME LEVELS, AND PERSISTENT DOMESTIC
POLITICAL RISK CONSTRAIN THE RATING

Weak institutions and low income per capita constrain Guatemala's
rating. Guatemala's Worldwide Governance Indicators, which are
incorporated as part of Moody's assessment of 'institutions and
governance strength', are lower than those of most of its peers
with key weaknesses in the rule of law and overall government
effectiveness. And while Guatemala's $77 billion economy is larger
than the $50 billion Ba median, the country's per capita GDP (PPP
basis) of $8,789 in 2019 is 30% lower than the median for rated
peers. Moody's considers Guatemala's low growth potential and weak
development indicators as structural credit constraints for the
sovereign rating.

Guatemala's overall institutional scores are bolstered by the
effectiveness of its fiscal and monetary institutions. But among
the subset of institutional scores that more directly measure the
capacity of a government to address social demands, Guatemala lags
peers. In recent years widespread protests against political
corruption have been recurrent, raising domestic political risk
including that of lower business confidence and investor
sentiment.

Guatemala's society is highly unequal, further increasing potential
political and policy risks. The country has one of the highest Gini
coefficients (a standard measure of income inequality) in the
world. Moody's considers that income inequality, while not always a
differentiating factor for sovereign ratings, is associated with
higher political risks, lower growth, and for some countries,
weaker institutions.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook reflects Moody's expectation that moderate
medium-term growth prospects and the government's long-standing
commitment to prudent fiscal and monetary policies will help the
government limit the debt impact from the coronavirus pandemic.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS

Environmental risks are material to Guatemala's credit profile.
Guatemala's sovereign credit profile is exposed to climate change
risks from recurring droughts and hurricanes, which can deplete
agricultural production and thus harm Guatemalan exports.

Social risks are also material and stem from long-standing levels
of poverty, economic inequality, and social exclusion. The fiscal
impact of the coronavirus pandemic, which Moody's considers a
social risk, will result in a higher fiscal deficit and a larger
debt burden.

Governance considerations are material credit risks and include
issues such as the rule of law and control of corruption, which
limit policy effectiveness and reduce investment and growth.
Despite these credit constraints the government maintains a strong
track record of effective fiscal and monetary policymaking.

GDP per capita (PPP basis, US$): 8,789 (2019 Actual) (also known as
Per Capita Income)

Real GDP growth (% change): 3.8% (2019 Actual) (also known as GDP
Growth)

Inflation Rate (CPI, % change Dec/Dec): 3.4% (2019 Actual)

Gen. Gov. Financial Balance/GDP: -2.2% (2019 Actual) (also known as
Fiscal Balance)

Current Account Balance/GDP: 2.4% (2019 Actual) (also known as
External Balance)

External debt/GDP: 24.5% (2019 Actual)

Economic resiliency: ba2

Default history: No default events (on bonds or loans) have been
recorded since 1983.

On June 18, 2020, a rating committee was called to discuss the
rating of the Guatemala, Government of. The main points raised
during the discussion were: The issuer's economic fundamentals,
including its economic strength, have materially decreased. The
issuer's institutions and governance strength, have not materially
changed. The issuer's governance and/or management, have not
materially changed. The issuer's fiscal or financial strength,
including its debt profile, has materially decreased.

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

An upgrade of Guatemala's rating is unlikely in the near to medium
term. Upward pressure on the credit profile would require both (1)
an improvement in economic conditions that leads to higher GDP
growth on a sustained basis, and (2) a material improvement in the
country's institutional framework in general and its governance
indicators in particular.

The rating could experience downward pressure if (1) there is an
erosion in the country's long-standing commitment to prudent fiscal
management, (2) a worse-than-expected economic performance results
in persistently higher debt ratios, or (3) weak social development
indicators and domestic security challenges begin to pose a threat
to political stability.

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




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

UNIFIN FINANCIERA: S&P Affirms 'BB-' Global Scale ICR, Outlook Neg.
-------------------------------------------------------------------
S&P Global Ratings affirmed its 'BB-' global and 'mxA-/mxA-2'
national scale issuer credit ratings on Unifin Financiera, S.A.B.
de C.V. (Unifin). At the same time, S&P affirmed its 'BB-' and 'B-'
issue-level ratings on Unifin's senior unsecured notes and
subordinated perpetual notes, respectively. Finally, S&P removed
the ratings from CreditWatch negative, where we had placed them on
March 27. The outlook is negative on both rating scales.

The ratings on Unifin incorporates its recent announcement of a
capital increase for up to MXN2.52 billion, expected to materialize
in the coming months. S&P said, "We expect the increase to release
pressure on its capital metrics and support its liquidity profile
under current adverse market conditions. We believe the new
resources will partially offset the capital burden from projected
lower internal capital generation, coupled with the higher capital
requirements in our capital model after negative actions on the
sovereign and the Banking Industry Country Risk Assessment (BICRA)
this past March." As a result, the forecasted average RAC ratio for
the next 24 months is 8.1%.

Nevertheless, the negative outlook reflects that the company will
face tough operating conditions in Mexico that will increase
delinquency levels and credit losses. S&P said, "Additionally, we
expect lower profitability metrics, and consequently internal
capital generation, reflected in a negative trend in its capital
metrics for the next two years. In this sense, we could lower the
rating in the 12 months if delinquencies levels rise above our
expectations or if the RAC ratio falls consistently below 7%."

The ratings also reflect that the company's leading position and
significant market share in the leasing sector will somewhat
mitigate its shrinking loan originations and portfolio growth. S&P
said, "We also incorporate the worsening of its loan portfolio due
to the economic downturn, but we consider that its asset quality
metrics will remain in line and comparable to other leasing
companies in the same risk position category. Nonperforming assets
(NPAs) reserve coverage will remain low. Finally, we base our
funding and liquidity assessment on the firm's diversified funding
base compared with Mexico's nonbank financial institution (NBFI)
industry, and its sufficient liquidity to support financial
obligations for the next 12 months." Unifin's stand-alone credit
profile (SACP) is 'bb-'.




=======
P E R U
=======

RUTAS DE LIMA: S&P Keeps 'CCC' ICR on CreditWatch Negative
----------------------------------------------------------
S&P Global Ratings kept its 'CCC' issue-level rating on Rutas de
Lima (RdL or the project)  on CreditWatch with negative
implications, where S&P placed it on March 31, 2020.

In May 2020, Peru's Congress approved the law that suspended toll
collections on all highways in the country, which will remain in
place as long as the state of national emergency continues, which
as of today will remain until June 30, but could be extended. The
suspension doesn't contemplate any compensation mechanism for the
non-toll collections.

S&P said, "The CreditWatch maintenance reflects our view that
despite the likely further deterioration in this year's financial
performance amid the extension of the quarantine and suspension of
toll collection until the state of national emergency is lifted, we
believe the project has sufficient liquidity to cover the
forecasted shortfalls for the next six months.

"Under our revised scenario, we expect revenue to decrease around
40% (versus the previous 30%) in 2020 compared with 2019 figures.
Therefore, CFADS won't be sufficient to cover the two interest
payments due June 30 and December 31. However, as of the date of
this report, the project has around PEN50 million in the debt
service account, and we expect cash held in the restrictive reserve
account, as stipulated in the trust agreement, to cover the
remaining amounts of the next interest payments."

However, if the project's inability to collect revenues is
prolonged until the end of the year because of the lockdowns,
and/or due to a slower recovery in traffic in 2021, the project
will have to dip into the six-month DSRA. Moreover, if RdL was
unable to fully fund the reserve account before the next interest
payment, this would constitute a breach of covenant, triggering an
event of default. The CreditWatch negative listing incorporates the
risk of failure to maintain a fully funded DSRA.

Environmental, social, and governance (ESG) credit factors for this
credit rating change:

-- Health and safety risk



                           *********


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.

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