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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

          Tuesday, July 7, 2020, Vol. 21, No. 135

                           Headlines



A R G E N T I N A

ARGENTINA: Activity Plunges Record 26.4% in April Amid Pandemic
ARGENTINA: Sweetens Debt Revamp Offer; Sets Aug. 4 Deadline
PAMPA ENERGIA: Fitch Affirms CCC LT Issuer Default Ratings


B R A Z I L

BANCO DO NORDESTE: Moody's Affirms Ba2 Local Curr. Deposit Ratings
BRAZIL: Gross Debt Increases to 81.9% of GDP in May


J A M A I C A

PALACE AMUSEMENT: Significant Losses Due to Closure of Cinemas


M E X I C O

GRUPO AEROMEXICO: Financing Plan Ready in 4 to 6 Weeks, CEO Says
GRUPO AEROMEXICO: Shares Rise Despite Missed Debt Payment


T R I N I D A D   A N D   T O B A G O

DIGICEL GROUP: Trinidad Unit Files Injunction Against Competitor
TELECOMMUNICATIONS SERVICES: S&P Places 'BB-' ICR on Watch Negative


X X X X X X X X

LATAM: Over 2.7MM Businesses to Close Due to COVID-19, ECLAC Says

                           - - - - -


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A R G E N T I N A
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ARGENTINA: Activity Plunges Record 26.4% in April Amid Pandemic
---------------------------------------------------------------
Jorge Iorio at Reuters reports that Argentina's economic activity
plunged 26.4% in April, the country's official statistics agency
said, the worst monthly fall on record as the country reeled from
the impact of the novel coronavirus pandemic and a nationwide
lockdown.

The April drop, after the South American grains producer imposed
the lockdown in mid-March, was worse than the 21% decline predicted
by analysts polled by Reuters, underscoring how badly the pandemic
has battered local industry.

Argentina's government faces a tough balancing act between
combating a recent spike in COVID-19 cases and reopening the
economy, according to Reuters.  It has extended a quarantine in and
around Buenos Aires but relaxed rules in other parts of the
country, the report notes.

The fall, which followed an 11.5% drop in March, surpassed declines
during crises in 2002 and 2009 and was the worst since statistics
agency INDEC started record keeping in 1993, the report relays.

Already mired in recession for two years and in default on foreign
debts, Argentina is headed for an annual economic contraction in
2020 that organizations, including the International Monetary Fund,
have estimated at about 10%, the report discloses.

The worst-hit sectors included construction along with the hotel
and restaurant industry, which fell over 85%, INDEC said, the
report discloses.

Argentina is meanwhile racing to restructure around $65 billion in
foreign debt, with a deadline for a deal after talks stalled,
despite the government and creditors having edged close to a deal,
the report says.

"The debt negotiations continue to move forward as economic
indicators remind us that there are more difficult problems to
solve along the way," Argentine investment services firm Grupo SBS
said in a report, Reuters 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.


ARGENTINA: Sweetens Debt Revamp Offer; Sets Aug. 4 Deadline
-----------------------------------------------------------
Eliana Raszewski and Jorge Iorio at Reuters report that Argentina's
government unveiled an amended debt restructuring proposal and set
a deadline of Aug. 4 for creditors to accept it, adding some key
sweeteners as it looks to defuse recent tensions with bondholders
and strike a deal.

Argentina will revise the terms and conditions of the Invitation
mainly to:

   1. increase the consideration to be received in exchange for
      Eligible Bonds, by reducing principal haircut, increasing
      coupons and shortening maturities on the New Bonds being
      offered, and including a U.S. dollar-denominated bond due
      2030 (the "USD 1.00% 2030 Bonds") or Euro-denominated bond
      due 2030 (the "Euro 0.500% 2030 Bonds") to be delivered as
      consideration for any accrued and unpaid interest from and
      including the last date on which interest was paid under the

      Eligible Bonds up to but excluding April 22, 2020;

   2. allow holders of Euro-denominated and Swiss franc-
      denominated Eligible Bonds to elect U.S. dollar-denominated
      New Bonds, subject to acceptance priority procedures and
      caps; include the delivery of USD 1.00% 2030 Bonds or Euro
      0.500% 2030 Bonds in an aggregate principal amount
      determined by reference to accrued and unpaid interest on
      the Eligible Bonds tendered from and including April 22,
      2020 to but excluding September 4, 2020, to be delivered as
      consent consideration for holders that submit and do not
      revoke (or have submitted and not revoked) a valid and
      accepted tender order;

   3. adjust the terms and conditions of the rights upon future
      offers provision described in the Invitation, to conform
      such rights to the modifications described in 1 to 3 above;
      allow holders of Eligible Bonds issued under the 2005
      Indenture to exchange those Eligible Bonds for New Bonds to
      be issued under the 2005 Indenture; and

   4. include minimum participation thresholds as a condition to
      the consummation of the Invitation, which condition may not
      be waived by the Republic.

The new proposal here which comes after talks to revamp around $65
billion in foreign debt stalled last month, would reduce principal
haircuts, increase coupons and include a bond to account for
accrued interest, the government said in a statement here that
described the amendments as the "final effort," according to
Reuters.

It said the move to sweeten the deal showed the country's "good
faith and willingness to remain engaged with the international
financial community", which it added was key to helping Argentina
dig out of a deep economic recession, the report notes.

Argentina's center-left President Alberto Fernandez said in the
statement the offer was the "maximum effort we can make," the
report discloses.

"It is an enormous effort that we have made to fulfill our word,"
he added.

Argentina is racing to revamp the foreign bonds after tumbling into
its ninth sovereign default in May, the report relays.  A deal is
key to avoiding a messy and protracted legal standoff that would
lock the country out of international credit markets, the report
notes.

The debt talks had progressed well, helping lift local bond prices,
until hitting turbulence in mid-June, the report says.  Two key
bondholder groups have since criticized a lack of engagement with
the government and pushed for stronger legal protection in any
deal, the report notes.

Argentina's government addressed this concern, saying holders of
eligible bonds issued under a 2005 indenture would now be able to
exchange for new bonds issued under the same indenture, which give
creditors greater protection, the report notes.

It also said the new proposal would include minimum participation
thresholds, which had been sought by another of the three major
creditor committees involved in the talks, the report relays.

"We hope that our creditors understand the restrictions we have,
and appreciate our willingness to reach an agreement that works for
all parties," Economy Minister Martin Guzman said, the report
relates.

Argentina will formally present the proposal to the U.S. Securities
and Exchange Commission (SEC), the government said in a separate
statement obtained by the news agency.

Argentina's debt restructuring process has been buffeted by the
novel coronavirus pandemic, which is pushing the country deeper
into recession and driving up poverty, the report notes.  The South
American country's economy is expected to contract around 12% this
year, the report discloses.

The grains producing stronghold is also looking to strike a new
deal with major backer the International Monetary Fund, to help
replace a $57 billion credit facility agreed in 2018, the report
relay.

The government also said it will send a bill to Congress in the
next few days to restructure its local-law foreign currency debt
under "equitable conditions" to the foreign debt revamp, the report
adds.

"The government has made a substantial improvement relative to the
first offer introduced by mid-April," according to Ramiro Blazquez,
head of research and strategy at BancTrust & Co. in Buenos Aires,
Buenos Aires Time dicloses.

With the latest extension, "the government has decided to continue
playing the chicken game based on the notion - probably nurtured by
Guzman - that creditors also stand much to lose from a messy
default," he added.

The Republic has engaged BofA Securities, Inc. and HSBC Securities
(USA) Inc. to act as dealer managers for the Invitation. D.F. King
is acting as exchange, tabulation and information agent.

                       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.


PAMPA ENERGIA: Fitch Affirms CCC LT Issuer Default Ratings
----------------------------------------------------------
Fitch Ratings has affirmed Pampa Energia S.A.'s Long-Term Foreign
Currency (LT FC) and Local Currency (LT LC) at 'CCC'. Fitch also
affirmed Pampa's $750 million sr. unsecured note due 2027 and $300
million sr. unsecured note due 2029 at 'CCC/RR4.' Fitch assigned a
'CCC/RR4' to Pampa's outstanding $500 million sr. unsecured note
due 2023.

Pampa's 'CCC' LT FC IDR is constrained by Argentina's Country
Ceiling of 'CCC', which limits the foreign currency rating of most
Argentine corporates. Fitch's Country Ceilings are designed to
reflect the risks associated with sovereigns placing restrictions
upon private sector corporates, which may prevent them from
converting local currency to any foreign currency under a stress
scenario and/or may not allow the transfer of foreign currency
abroad to service foreign currency debt obligations.

The LT LC IDR equalized with the Country Ceiling of Argentina
reflects Pampa's exposure to the federal government through
payments to and from Compania Administradora del Mercado Mayorista
Electrico (CAMMESA) and overall regulatory risk. The company is a
key market participant of strategic sectors for the federal
government. Pampa's diversified business model -- upstream, power
generation, distribution and transmission -- helps offset some of
the risk, but Fitch believes the company's prominence across its
businesses may subject it to uncertain government interference
through various government policies.

The unsecured bond rating at 'CCC' is due to the alignment of the
FC and LC IDR, per Fitch's Country-Specific Treatment of Recovery
Ratings Criteria. The criteria do not allow notching at the
security level when the difference of FC and LC IDRs are within one
notch. Argentina is categorized under Group D, per the same
criteria, and the recovery rating is capped at 'RR4', which implies
a recovery of 31%-50%.

KEY RATING DRIVERS

Strong Operator, Weak Operating Environment: Pampa Energia is an
integrated energy company in Argentina with a significant market
share in each of its business segments: upstream, power generation,
distribution and gas transportation. Pampa is a strong operator and
contributor in each of its business segments and has been a leader,
providing stable and predictable services in Argentina during a
difficult economic and operating environment, recently accelerated
by coronavirus. Pampa operates exclusively in Argentina and is
challenged by a difficult macroeconomic environment plagued with an
economic recession, high inflation, unemployment, high cost of
capital and an unstable regulatory environment, which continuously
requires the company to adjust financial policies to maintain its
strong credit profile.

Strong Capital Structure Projected: Fitch's base case forecasts
that total debt to EBITDA will be 2.5x in 2020. Fitch estimates
total debt to EBITDA will average 2.0x from 2021-2023, which is
consistent with a higher rating category, and net debt to EBITDA is
expected to be 1.3x in 2020 and below 1.0x from 2021-2023.
Moreover, Pampa does not face any major maturities until 2023 of
$450 million, which Fitch believes the company will be able to
refinance.

Capital Controls Weakens Financial Flexibility: Pampa has
maintained a strong liquidity profile. As of 1Q20, Pampa reported
$577 million of cash on a consolidated basis covering 3 years of
interest expense, but Fitch believes the recently announced capital
control measures -- requiring entities with assets abroad to first
use those resources to service international obligations before
turning to Argentina's official currency markets -- poses
significant risks to Pampa and corporates in Argentina. These
measures will pressure its strong liquidity, as it will tap into
its international reserves to comply, while simultaneously
accumulating cash in Argentina, which Fitch expects will be more
balanced between Argentine pesos and USD. This will expose Pampa to
greater FX risk, as its interest expense and debt are predominately
in USD.

Uncertain Regulatory Environment: Fitch believes Argentina's
electricity regulatory framework is highly uncertain. The system is
not self-sufficient and relies heavily on government subsidies.
This is not expected to change in the short to medium term, and the
problem is further exacerbated by the government's inability to
afford the subsidies, which has been funded through monetary
expansion. Therefore, additional regulatory amendments expected
will be aimed at lowering the overall cost of the system,
negatively impacting generation companies that historically bear
the brunt of the amendments, with regulatory schemes continuously
at risk of being changed. On a consolidated basis, Pampa's
generation and distribution businesses are at risk; the generation
business is vulnerable to further changes in regulatory schemes,
such as amendments in PPAs awarded to expand into combined cycle
thermal power plants and further cuts in legacy capacity (paid
under Energia base); and the distribution business is stifled by a
tariff freeze (in effect since Sept. 2018), high inflation and an
increase in delinquencies.

Small Production Profile and Adequate Hydrocarbon Reserve Life:
Pampa has a small but stable production profile compared with its
international peers, but has a strong 1P reserve life of
approximately eight years. Pampa's production size of below 75,000
boed and reserve life below 10 years are consistent with a 'B'
category. Fitch expects the company will continue to focus on
unconventional gas production in the Neuquen basin and maintain its
average production of 45,000 boed, with nearly all of it attributed
to gas production.

DERIVATION SUMMARY

Pampa Energia S.A.'s FC IDR is constrained by Argentina's Country
Ceiling, as is the case for Argentine utility and energy peers AES
Argentina Generacion S.A. (CCC), Capex S.A. (CCC), Genneia S.A.
(CCC), Compania General de Combustibles S.A. (CGC; CCC) and YPF
S.A. (CCC).

Pampa is a leading power company in Argentina and compares best to
AES Argentina, Capex and Genneia. Pampa had the country's largest
market share by installed capacity in 2020 with 4.9 gigawatts (GW),
or 12%, followed by Central Puerto S.A. (not rated) at 10.4% and
AES Argentina at 10.1%. In addition, Pampa is a leading developer
in the sector and has added 590MW of new installed capacity since
2018. Fitch expects the company will add another 280MW by 2022.
Fitch estimates Pampa will have one of lowest gross leverage
ratios, defined as total debt/EBITDA, in the country, averaging
2.0x over the ratinghorizon, compared with AES Argentina's 2.1x,
Capex's 2.3x and Genneia's 2.6x.

Pampa's oil and gas segment compares favorably with other 'B' rated
oil and gas exploration and production companies. These peers
include Frontera Energy Corporation (B-/RWN), GeoPark Limited
(B+/Stable), Gran Tierra Energy International Holdings Ltd.
(CCC/RWN) and CGC. Fitch expects Pampa will average 45,000 boed in
2020-2023. This is slightly lower than GeoPark's 50,000 boed and
higher than Gran Tierra and CGC at or below 40,000 boed. Pampa
reported 135 million boe and proven reserves at YE 2019, equating
to a reserve life of nearly eight years. This is higher than
Frontera Energy's 4.4 years, Gran Tierra's 5.3 years, CGC's 4.0
years and slightly less than GeoPark's 9.5 years. Pampa has a
strong reserve base, and Fitch projects the company will be able to
maintain its reserve life at greater than seven years as it
continues to increase production, focusing on gas.

KEY ASSUMPTIONS

  -- Total hydrocarbon production of between 45,000 and 50,000 boed
between 2019 and 2022.

  -- Average realized natural gas price of USD2.8mmBTU in 2020,
USD3.15mmbtu in 2021, USD3.40mmbtu in 2022 and USD3.75mmbtu in
2022.

  -- Average monomic price of USD38 per MWh between 2020 and 2023.

  -- Average annual electricity production of nearly 20,000 GWh
between 2020 and 2023.

  -- CAMMESA payments made within 80 days.

  -- Consolidated capex for Pampa Energia & EDENOR of USD1.2
billion for 2020 through 2023 averaging an annual capex of USD300
million.

  -- No dividends from 2020-2023.

RATING SENSITIVITIES

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

  -- Pampa's FC IDR is capped by the Country Ceiling of Argentina,
and thus, an upgrade can only occur if there is an upgrade of the
Country Ceiling of Argentina.

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

  -- The Country Ceiling of Argentina is currently at the lowest
level (CCC) allowed under Fitch's sovereign criteria; therefore, a
downgrade of Pampa would be due to Fitch's belief that a default of
some kind appears probable or a default or default-like process has
begun, which will be represented by 'CC' or 'C' rating.

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: Pampa reported consolidated cash position of
$577 million in 1Q20. Fitch estimates cash and cash equivalents can
cover three years of interest expense. The recent capital controls
are expected to shift its cash position from being abroad to more
concentrated in Argentina. The company's debt and interest expenses
are predominately in USD, and Fitch expects the company will
maintain a balanced cash position between U.S. dollars and
Argentine pesos.

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).




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

BANCO DO NORDESTE: Moody's Affirms Ba2 Local Curr. Deposit Ratings
------------------------------------------------------------------
Moody's Investors Service has affirmed Banco do Nordeste do Brasil
S.A.'s long and short-term global local currency deposit ratings of
Ba2 and Not-Prime and its long and short-term foreign currency
deposit ratings of Ba3 and Not-Prime. BNB's long and short-term
Brazilian national scale deposit ratings of Aa2.br and BR-1 were
also affirmed. Moody's also affirmed BNB's standalone baseline
credit assessment and adjusted BCA at b1, as well as all other
ratings and assessments. BNB's Ba2 long-term global local-currency
deposit rating benefits from two notches of government support
uplift from its BCA, reflecting Moody's assessment of a very high
likelihood of support. The outlook on BNB's ratings is stable.

The following ratings and assessments of Banco do Nordeste do
Brasil S.A were affirmed:

  - Long-term local currency bank deposit rating affirmed Ba2,
outlook stable

  - Short-term local currency bank deposit rating affirmed at Not
Prime

  - Long-term foreign currency bank deposit rating affirmed at Ba3;
outlook stable

  - Short-term foreign currency bank deposit rating affirmed at Not
Prime

  - Brazilian long-term local currency bank deposit rating affirmed
at Aa2.br

  - Brazilian short-term local currency bank deposit rating
affirmed at BR-1

  - Long-term local currency counterparty risk rating affirmed at
Ba2

  - Short-term local currency counterparty risk rating affirmed at
Not Prime

  - Long-term foreign currency counterparty risk rating affirmed at
Ba2

  - Short-term foreign currency counterparty risk rating affirmed
at Not Prime

  - Brazilian long-term local currency counterparty risk rating
affirmed at Aa2.br

  - Brazilian short-term local currency counterparty risk rating
affirmed at BR-1

  - Long-term counterparty risk assessment affirmed at Ba2(cr)

  - Short-term counterparty risk assessment affirmed at Not
Prime(cr)

  - Baseline Credit Assessment affirmed at b1

  - Adjusted Baseline Credit Assessment affirmed at b1

  - Outlook stable

RATINGS RATIONALE

In affirming BNB's BCA at b1, Moody's acknowledges the bank's
important regional franchise and broad retail-bank footprint as a
government owned development bank focused on the Northeast region
of Brazil. It also reflects the bank's role as financial agent and
manager of the constitutionally mandated Fundo Constitutional de
Financiamento do Nordeste and other constitutional funds, which
were established to promote the region's economic and social
development. As such, BNB's ratings and assessments incorporate the
stable and recurring fee-income generation derived from its
management of constitutional funds and adequate liquidity. BNB's
very low tangible capitalization ratios, however, constrain the
ratings.

BNB's Northeast focus results in geographic concentration of its
assets in a region that experiences economic volatility and has
historically had one of the lowest GDP performances in the country.
At the same time, BNB's development mandate exposes the bank to
credit risks derived from the guarantees it provides for a portion
of the sizable off-balance sheet loan book it manages under the
constitutional funds. These guarantees amounted to nearly three
times the bank's own loan portfolio of BRL 10.7 billion as of March
2020. BNB is the largest microcredit lender in Brazil and has an
important role in financing infrastructure projects in the
Northeast.

Moody's expects the Brazilian economy to contract in 2020 as a
result of the coronavirus outbreak, which will likely have a direct
negative impact on BNB and other Brazilian banks' asset quality and
profitability. To accommodate borrowers' repayment capacity during
the pandemic, BNB has deferred payments on a large portion of its
loan portfolio, a measure that may also defer credit losses to a
later date. Loan delinquency, however, has remained largely stable
at 3.3% in March 2020, in line with the past two-year average of
3.45%, and loan loss reserves have been above 1.5x problem loans.
BNB will build additional reserves in Q2 against the uncertainty
generated by the pandemic, but a prolonged economic disruption will
likely weaken asset quality metrics further with direct effect on
profitability and capital, in the event BNB has to raise loan loss
provisions materially.

BNB's profitability benefits from the steady and recurring fee
income stream it receives from the national treasury to manage the
constitutional funds, currently at 2.4% of the fund's net worth,
but which will decline to 1.5% by 2023. Measured as net income
relative to tangible banking assets, profitability has averaged
1.5% for the past three years, above the system's 1.3% average for
same period, already excluding non-recurring gains. This included
the agreement established with Icatu Seguros S.A. in the beginning
2020 for the commercialization of insurance and private pension
plans under BNB's platform, which should enhance future fee income.
Because of much lower interest rates now, BNB's large pool of
liquid assets will yield less and could pressure profitability,
despite its low cost of funding that derives from the bank's access
to predominantly inexpensive core deposits. Moody's expects credit
costs will continue to rise, while operating costs remain elevated
and higher than peers. As a result of the coronavirus pandemic,
Moody's expects weakening profitability ratios already reflecting
the bank's expectations of reinforcing provisions for credit losses
by 25% in 2020.

At the same time, the bank's BCA also reflects its weak capital
position. Capitalization, measured by Moody's as TCE/RWA, was 4.96%
in March 2010, compared to 4.6% in December 2019. The bank's low
capital levels reflect large amounts of deferred tax assets and
higher risk weighing requirements on credit and operational risk,
including large amounts of public federal bonds that are risk
weighted at 100% under Moody's calculation of capital ratios.

On the other hand, the bank counts on a granular funding base with
low dependence on market funds and strong liquidity ratios. Part of
the bank's high liquidity level stems from investments of FNE's
unallocated resources, in its role as financial agent and onlender
of these funds.

Moody's regards the coronavirus pandemic as a social risk under its
ESG framework, given the substantial implications for public health
and safety. Moody's has some governance concerns regarding a likely
exposure of the bank to potential political interference. Although
Moody's does not apply any specific qualitative adjustment, such
issues are incorporated into the bank's financial scores. Also, the
legislation that requires technical skills of appointed management
in state-run companies reinforce overall risk management standards.
Corporate governance, however, remains a key credit consideration
at BNB and requires ongoing monitoring. Please see Moody's
Environmental risks and Social risks heatmaps for further
information.

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

BNB's deposit and debt ratings are unlikely to be upgraded because
they are already positioned at the same level as Brazil's Ba2
sovereign rating. Positive pressure on the bank's BCA could result
from sustained improvement on the bank's capital position, enhanced
and less-volatile profitability, and better asset quality metrics.

BNB's ratings could be downgraded if the sovereign rating is
downgraded. The bank's ratings could also be downgraded if its BCA
is lowered because of material deterioration in its asset risk and
profitability, as well as a decline in its capital ratios.

METHODOLOGY USED

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

Banco do Nordeste is headquartered in Fortaleza, Brasil. As of
March 2020, BNB had total assets of BRL59 billion (USD11 billion)
and shareholders' equity of BRL5.6 billion (USD1.1 billion).


BRAZIL: Gross Debt Increases to 81.9% of GDP in May
---------------------------------------------------
Richard Mann at Rio Times Online reports that in the wake of
increased spending to tackle the novel coronavirus pandemic by
federal, state and municipal governments, Brazil's public debt grew
sharply in May.  The country's gross debt climbs to 81.9 percent of
GDP in May.  The percentage, disclosed on June 30 by the Central
Bank, is higher than the 79.8 percent recorded in April.

As reported in the Troubled Company Reporter-Latin America on May
8, 2020, Fitch Ratings has affirmed Brazil's Long-Term Foreign
Currency Issuer Default Rating at 'BB-' and has revised the Rating
Outlook to Negative. The Outlook revision to Negative reflects the
deterioration of Brazil's economic and fiscal outlook, and downside
risks to both given renewed political uncertainty, including
tensions between the executive and congress, and uncertainty over
the duration and intensity of the coronavirus pandemic.

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




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

PALACE AMUSEMENT: Significant Losses Due to Closure of Cinemas
--------------------------------------------------------------
RJR News reports that Palace Amusement said the closure of cinemas
has resulted in significant losses over the last three and a half
months.

The listed company said it has substantial standing charges to
maintain, according to RJR News.

Palace Amusement has obtained interim financing from its bankers to
help meet some of its obligations, the report notes.

In addition, all cinema employees, totaling almost 300 people, have
been laid off, the report says.

News came that the Government of Jamaica has approved the
conditional reopening of cinemas for 14 days, effective July 5, the
report adds.




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

GRUPO AEROMEXICO: Financing Plan Ready in 4 to 6 Weeks, CEO Says
----------------------------------------------------------------
Andrea Navarro, Cyntia Aurora Barrera Diaz, and Ezra Fieser at
Bloomberg News report that Grupo Aeromexico SAB's financing plan
under its Chapter 11 bankruptcy protection filing could be ready in
the next four to six weeks, Chief Executive Officer Andres Conesa
said.

The voluntary filing will allow the company to weather the
coronavirus pandemic however long it may last, Conesa said in an
interview, according to Bloomberg News.

Aeromexico's bankruptcy protection filing came after the carrier
saw the number of passengers it flew plummet more than 90% as
governments grounded flights and travelers stayed home, the report
notes.  Airlines in Latin America, unlike their counterparts in the
U.S. and Europe, have received scant government support, the report
relays.

"We're solvent, we have assets, but we haven't been able to tap
financial markets over the past three months," Conesa said, the
report notes.  "This will allow us to access better financing that
we wouldn't get otherwise," he added.

Since the pandemic started, the carrier has had to dole out BRL1.5
billion (US$65.8 million) to repay debt, Conesa said, the report
notes.  Aeromexico's total debt reached BRL$1.9 billion and BRL7.9
billion, according to the first day petition filed before the
court, the report relates.

                             DIP Financing

Latam Airlines Group SA, which also filed for creditor protection
in May, is seeking as much as $2.15 billion in new debt, according
to court filings, the report relates.  Avianca Holdings SA has not
specified how much it is seeking, a spokeswoman said.

Conesa says he doesn't see Aeromexico needing that much, though a
final number is still four to six weeks away, the report notes.
Now that the filing has been made, a group of creditors will get
together this month and they, alongside the company and a judge,
will decide how much needs to be raised and what form the
restructuring will take, the report discloses.

"We'll likely have a mix of plain and convertible debt," he said.
"But the message is clear -- we're focused on keeping Aeromexico
flying and acting responsibly.  We're not thinking about the equity
side at the moment," he added.

The carrier received zero support from the government, Conesa said,
the report notes.  "The government was very clear on that. The
entire region is heading towards a market restructure, and that
will allow us to have an even better future," he added.

                          Flexible Fleet

Aeromexico owns about 30% of its fleet, Conesa said, which stood at
130 jets before the pandemic started. Those assets could be offered
as collateral through sale-and-lease-back operations, he said, the
report notes.

Additional flexibility comes from its leases being staggered.
Contracts for about 15% of its fleet expire over the next 15
months, he said, the report relays.

Another decision to be made in the coming weeks will be what routes
to keep and at what frequencies, the report discloses.  This month,
the airline will fly about half of the domestic flights it had in
July last year and about 20% of its international ones, the report
notes.

When, or if, to bring the rest back will largely depend on demand
and on governments' flight restrictions across the globe, he said,
the report discloses.  The airline, which still has nine Boeing 737
Max aircraft to be delivered, said it is reviewing its contract
conditions with the plane maker, the report says.

The airline will likely emerge slimmer from the proceedings, Conesa
said, but that won't mean a change to its business model and he
doesn't see aggressive fare cuts necessary to compete with domestic
rivals, the report notes.

"Aeromexico's essence will continue, it was working so far," he
said.  "But not even the strongest airline in the world can
withstand this," he added.

Aeromexico operates routes in Mexico and internationally to
destinations including the U.S., Canada, Europe and Asia.  Delta
Air Lines Inc. is its biggest shareholder.

The airline has been able to avoid lay-offs until now, but Conesa
says fewer flights in the future will likely require adjustments,
though he declined to give a figure, the report notes.  The
carrier's workforce stands at about 16,000, he said, the report
adds.

Aeromexico is being advised by Davis Polk & Wardwell LLP,
Rothschild & Co., Cervantes Sainz S.C., AlixPartners and Skyworks
Holdings, LLC.

                           About Grupo Aeromexico

Headquartered in Mexico City, Mexico, Grupo Aeromexico SAB de CV
operates as an airline.  As reported in the Troubled Company
Reporter-Latin America, Egan-Jones Ratings Company, on June 12,
2020, downgraded the foreign currency senior unsecured rating on
debt issued by Grupo Aeromexico SAB de CV to B- from BB-. EJR also
downgraded the rating on FC commercial paper issued by the Company
to C from A3.


GRUPO AEROMEXICO: Shares Rise Despite Missed Debt Payment
---------------------------------------------------------
Daina Beth Solomon at marketscreener.com reports that shares in
airline Aeromexico closed up 4.48% on July 3, rising for a second
straight day even as the company missed a debt payment after filing
for bankruptcy protection.

Aeromexico, part-owned by Delta Air Lines Inc, became the third
airline in Latin America to file for Chapter 11 bankruptcy
protection after the business took a huge hit from the coronavirus
pandemic, according to marketscreener.com.

Bank CIBanco said Aeromexico had failed to make interest payments
worth some BRL1.01 million ($45,000) on local stock certificates,
the report relays.

CIBanco, representing holders of the securities, said it would
convene a meeting of investors to resolve the matter, the report
notes.

Aeromexico shares traded has high as BRL5.35 pesos a share on July
3 before trimming gains to close at BRL5.17 pesos, the report
adds.

                           About Grupo Aeromexico

Headquartered in Mexico City, Mexico, Grupo Aeromexico SAB de CV
operates as an airline.  As reported in the Troubled Company
Reporter-Latin America, Egan-Jones Ratings Company, on June 12,
2020, downgraded the foreign currency senior unsecured rating on
debt issued by Grupo Aeromexico SAB de CV to B- from BB-. EJR also
downgraded the rating on FC commercial paper issued by the Company
to C from A3.




=====================================
T R I N I D A D   A N D   T O B A G O
=====================================

DIGICEL GROUP: Trinidad Unit Files Injunction Against Competitor
----------------------------------------------------------------
RJR News reports that Digicel Group's Digicel Trinidad has filed a
court injunction against a mobile competitor believed to be
Bmobile.

The injunction was filed to cease Bmobile's rejection of thousands
of Digicel subscribers wishing to switch (port) their numbers to
the Digicel network, according to RJR News.

Digicel said it has been concerned at the high level of
unsuccessful switches over the last two months, the report notes.

Digicel also assured it continues to observe the agreed industry
process for porting and has respected customers' freedom to choose
their preferred mobile operator, the report adds.

                          About Digicel Group

Digicel Group is a mobile phone network provider operating in 33
markets across the Caribbean, Central America, and Oceania regions.
The company is owned by the Irish billionaire Denis O'Brien, is
incorporated in Bermuda, and based in Jamaica.

As reported in the Troubled Company Reporter-Latin America, Moody's
Investors Service in April 2020 downgraded Digicel Group Limited's
probability of default rating to Caa3-PD from Caa2-PD. At the same
time, Moody's downgraded the senior secured rating of Digicel
International Finance Limited to Caa1 from B3. All other ratings
within the group remain unchanged. The
outlook is negative.

The TCR-LA also reported that Fitch Ratings in April 2020
downgraded Digicel Limited to 'C' from 'CCC', and its outstanding
debt instruments, including the 2021 and 2023 notes to 'C'/'RR4'
from 'CCC'/'RR4'. Fitch has also downgraded Digicel International
Finance Limited to 'CCC+' from 'B-'/Negative, and its outstanding
debt instruments, including the 2024 notes and the 2025 credit
facility, to 'CCC+'/'RR4' from 'B-'/'RR4'. Fitch has removed the
Negative Rating Outlook from DIFL.


TELECOMMUNICATIONS SERVICES: S&P Places 'BB-' ICR on Watch Negative
-------------------------------------------------------------------
S&P Global Ratings, on July 3, 2020, placed its 'BB-' issuer credit
and issue-level ratings on Telecommunications Services of Trinidad
and Tobago (TSTT) on CreditWatch with negative implications,
indicating a possible negative rating action upon collection of
additional information.




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

LATAM: Over 2.7MM Businesses to Close Due to COVID-19, ECLAC Says
-----------------------------------------------------------------
The Latin American Herald reports that the virtual halt in economic
activities due to the COVID-19 pandemic will result in the closure
of 2.7 million formal businesses in Latin America, most of them
micro-enterprises, a situation leading to the destruction of 8.5
million jobs, the United Nations Economic Commission for Latin
America and the Caribbean (ECLAC) said.

Meanwhile, Brazil could have at least eight million people who have
been infected with the coronavirus, five times the number of cases
confirmed by the government, according to a study commissioned by
the Health Ministry that examined blood samples from more than
89,000 Brazilians in 133 cities, the report notes.  At present,
Brazil has suffered almost 62,000 COVID-19 deaths and 1.5 million
cases, according to The Latin American Herald.

The coronavirus could have been circulating in Brazil, one of the
world's current epicenters of the pandemic, since last November, or
three months before the first COVID-19 case was confirmed,
according to academic sources, the report notes.

The Federation of Chambers of Commerce of the Central American
Isthmus (Fecamco) demanded that governments in the region reopen
economic activities, all the while guaranteeing a balance with
public health considerations, the report relays.  With the
exception of Nicaragua, the countries in the region have declared
quarantines and economic shutdowns to try and halt the spread of
the coronavirus, the report notes.

In Ecuador, authorities reported 1,229 new COVID-19 cases in the
past 24 hours, raising the total caseload to 59,486, while official
figures show that 4,639 people have died although an additional
3,134 people are suspected of dying from the coronavirus but were
never tested for it, the report says.

The percentage of positive tests for the coronavirus in Quito has
jumped by 3 percent in the past month, according to tests performed
by the city, which is trying to control the spread of the virus in
local markets and southern neighborhoods to prevent the collapse of
the health care system, the report discloses.

In Costa Rica, the Health Ministry declared that the country is
experiencing the "community spread" of the coronavirus,
particularly in the urban areas, given the increase in confirmed
cases in recent days and the difficulties of determining precisely
how those people became infected, the report relates.  Costa Rica
has confirmed 4,023 cases, 270 of them in the past 24 hours, and 17
deaths, the report says.

In Mexico, the armed forces in the central state of Puebla opened
certain military installations to the public to facilitate
treatment of COVID-19 patients, the report notes.  So far, the
state has tallied 10,456 virus cases and 1,452 deaths, the report
discloses.  Mexico as a whole has suffered 28,510 COVID-19 deaths
so far, the report says.

Colombia continues to experience an acceleration in the spread of
the coronavirus, with 102,009 confirmed cases so far -- a doubling
in the past 17 days -- and 3,470 deaths, a tripling in fatalities
in the past 26 days, the report relays.

In Peru, indigenous leader Santiago Manuin -- who was awarded
Spain's Queen Sofia Prize in 1994 -- died of COVID-19 in a Chiclayo
hospital, the report notes.

In Bolivia, interim minister of the presidency, Yerko Nunez, said
he had tested positive for COVID-19 and will remain isolated,
although so far he is in stable condition, the report relates.

Bolivia set a new record for COVID-19 deaths, registering 78 in the
past 24 hours, and once again exceeded 1,000 confirmed cases in a
single day, reporting 1,201 new virus cases, the report discloses.
The country's caseload now stands at 34,227, while the death toll
is 78, the report says.

In Argentina, health authorities reported 2,744 new coronavirus
cases, bringing the caseload total to 69,941, while 22 people died
of COVID-19 in the past 24 hours, putting the death toll at 1,385,
the report adds.



                           *********


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

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

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Peter A. Chapman at 215-945-7000.
.


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