---

       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, September 17, 2020, Vol. 21, No. 187

                           Headlines



A R G E N T I N A

ARGENTINA: Buenos Aires Adapts to Post-Pandemic Urban Living
ARGENTINA: IMF in 'Initial Stages' of Loan Talks on New Rescue Plan
[*] Fitch Hikes IDRs on 8 Argentine Corporate Issuers


B E R M U D A

TEEKAY CORP: Egan-Jones Hikes Senior Unsecured Debt Ratings to B


B R A Z I L

BRAZIL: Airfare Prices Drop 34% Amid Pandemic
BRAZIL: Industrial Production Grows 8% in July
BRF SA: Fitch Rates Proposed Senior Unsecured Notes 'BB'
BRF SA: Moody's Rates Proposed Senior Unsecured Notes 'Ba2'
FS AGRISOLUTIONS: Fitch Assigns BB- LT IDR, Outlook Stable

FS AGRISOLUTIONS: Moody's Assigns (P)B1 CFR, Outlook Stable


D O M I N I C A N   R E P U B L I C

AEROPUERTOS DOMINICANOS XXI: Moody's Cuts $317MM Notes to B1
DOMINICAN REPUBLIC: Consumer Prices Rose 3.12% in Jan.-Aug. Period


M E X I C O

GRUPO MINSA: Moody's Alters Outlook on Ba3/Baa1.mx CFR to Negative


T R I N I D A D   A N D   T O B A G O

HARD ROCK CAFE: Had to Close Its Doors


X X X X X X X X

LATAM: Deep Inequalities Worsen Region Vulnerabilities to Crises

                           - - - - -


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

ARGENTINA: Buenos Aires Adapts to Post-Pandemic Urban Living
------------------------------------------------------------
Buenos Aires Times reports that in the face of the Covid-19
pandemic, cities across the world are adapting their designs to
cope with the uncertain future that lies ahead.

With lockdowns greatly reducing the use of roads, local authorities
from Berlin to Bogotá have taken advantage by closing streets to
cars and opening them to bicycles, while unveiling ambitious plans
for the redesign of the urban fabric, according to Buenos Aires
Times.  As examples of successful urban models from Europe, the
United States and even Latin America keep on pouring in, however, a
key question emerges: what has Buenos Aires been up to?

"Public space and mobility have been adapted for the progressive
return of inhabitants to places of safe encounters," the City
government's Transport and Public Works Minister Juan Jose Mendez
told the Times.  "Public space is being redesigned to ensure
egalitarian and safe access to the different activities that take
place in Buenos Aires," the report relays.

Late last month, the Buenos Aires City government started the
construction of "pop-up" bike lanes in the capital's two major
avenues, Córdoba and Corrientes, the report notes.  Mayor Horacio
Rodríguez Larreta's administration says bike use has increased a
whopping 114 percent since March as porteños gave up on public
transport and cycled to work instead, the report relates.  The
trend is clear: authorities expect 500,000 cycling trips to be made
in the city next year, compared to about 300,000 in 2019, the
report notes.

"We need to prepare the City for that," admits Cabinet chief Felipe
Miguel, the report says.

The move is part of a pilot project that, if made permanent, will
add 17 kilometres to the current network of 227 kilometres of bike
lanes, the report relays.

Five months into the lockdown, however, the plan has been
criticized as unambitious, the report notes.

"The very idea of reclaiming public space for people and
alternative modes of transportation is a very good one, and the
bike lanes plan - although it took some time - is a positive step,"
said transport specialist Rafael Skiadaressis.  "But other cities
have moved faster in implementing more kilometres of pop-up
cycleways, even those with extensive bike lanes such as Berlin or
Paris," the report relates.

This year, the French capital has rolled out 650 kilometres of
cycleways - including several pop-up "corona cycleways" - and began
offering 50 euros per person for bike repairs, while its German
counterpart added new lanes to its preexisting 800 kilometres in
line with Berlin's Mobility Law, which calls to create a bicycle
city before 2030 and give more space to car-free transport, the
report says.

These efforts are far from a privilege of rich urban centres, the
report relays.  In March, as the Covid-19 was starting to spread
throughout the world, Bogota added 117 kilometres of cycleways as
an alternative to crowded transit, extending its offer to 550
kilometres, the report notes.  The Colombian capital already has 13
bicycle garages located by Bus Rapid Transit (BRT) stations and
plans to build 13,000 new bike parking spots by 2027, the report
says.

                    Lack of 'Continued Effort'

But the problem does not lie in the extension of the network per
se, but rather its connectivity and overall quality. Several users
have complained about design problems (dead-ends and bottlenecks),
as well as drain covers, potholes and other obstacles that make
riding dangerous, which are far from being solved, the report
relates.

Other issues have emerged too.  In May, the Asociacion de Ciclistas
Urbanos (ACU) called for the creation of parking garages for
bicycles in public buildings and demanded private credits for the
purchase of bicycles, the report discloses.  Right now, the
public-run Banco Ciudad is offering 12- and 24-installment plans to
purchase a unit with a 20 percent surcharge — a downgrade after
the more ambitious 50-installment programme that helped sell more
than 50,000 new bikes until it came to an end earlier this year,
the report says.

"The Banco Ciudad programme will continue," said Mendez, the
Transport minister.  "We're working with the grassroots
organisations and institutions that conform the Amigos de la
Movilidad Sustentable ["Friends of Sustainable Mobility"] programme
to help bring more cyclists to the city," he added.

Every year, the Copenhagenize consultancy firm publishes a list of
the world's most bicycle-friendly cities. In 2015, Buenos Aires
ranked in 14th place, ahead of Berlin or Vienna, but it has since
been dropped from the top 20, the report relays.  Copenhagenize's
CEO Mikael Colville-Andersen has suggested there is a lack of a
"continued effort" on the part of the City government, the report
notes.

                     More Than Just Bikes

Before the pop-up bike lanes plan, the Rodríguez Larreta
administration had already moved on to convert a dozen streets of
inner city neighbourhoods into pedestrian commercial zones,
including several areas of the historic district in San Telmo as
well as the Mercado Juramento and the Chinese neighbourhood in
Belgrano, the report discloses.  In other parts of Buenos Aires,
paint and markings were used to widen sidewalks and indicate social
distancing measures, the report says.

It's a start, but local opposition leaders say it's not enough.

"The lockdown began on March 19, we're now in September and the
measures are coming in dribs and drabs," Juan Manuel Valdes, a City
lawmaker for the Frente de Todos coalition, told the Times. "The
City has no comprehensive plan," the report relays.

As restaurants and bars take over sidewalks to provide
pandemic-safe dining, people with disabilities are also facing new
barriers, said Valdes, who chairs the Disability Committee at the
City legislature. "How are blind people or people in wheelchairs
supposed to move around in these squeezed sidewalks?" he asked, the
report notes.

His demands have been partially addressed: the City government
announced a number of interventions aimed at occupying street space
in a number of gastronomic and commercial hubs such as San Telmo,
Caballito and Villa Devoto. Starting today, the City will open up
38 pedestrian areas, most of them in the wealthy Palermo and
Recoleta neighbourhoods, that will help some 1,400 retailers to
occupy street space and allow for safer open-air exchanges, the
report discloses.

"This new public space should allow social distancing measures to
be observed. It must be sustainable, replicable and collaborative,"
said Clara Muzzio, the City's minister of Public Space and Urban
Hygiene, the report relates.  "We're moving towards the scale of
the neighbourhood and abandoning the monocentric model," the report
discloses.

Whether these streets will remain as pedestrian and cycle access
only will depend on the overall functioning of the areas and its
acceptance among citizens, the local government said, the report
relays.

                           The Big Picture

In the pre-pandemic world, some 700,000 vehicles entered the City's
boundaries every day, adding to an existing stock of 900,000
particular cars, 10,000 taxis and 37,000 buses, the report relays.
And this was the time when millions in Buenos Aires and its
metropolitan area took buses, trains and subways to get to work.
Now that it's been months since public transport has been limited
to essential workers, the real risk is that a "return to normality"
could reinstate or even worsen already high levels of noise and air
pollution, especially if the pandemic drives everyone into their
cars, the report notes.

With this brave new world in mind, mobility and centralities in
Buenos Aires should be reinvented, the report says.  This means
that parts of the City's sustainability agenda should be pushed
more aggressively, but it also calls on planners to accept that
some of the things that were being done no longer ring true, the
report notes.  A lot can be done considering half trips in the city
are generally less than five kilometres in length, the report
discloses.

"All around the world some very interesting debates are taking
place regarding the future of cities. I know that the macroeconomic
context leads us to be less ambitious, but we should be able to do
more than what's being done right now and to change some major
trends of this administration," said Valdes, the report relays.

The opposition lawmaker said the government should revise its
long-time plan of selling-off of public spaces, for example,
arguing the City has been letting go some precious public lands
that could instead be used to build more green public spaces and
public equipment, the report notes.

The Rodriguez Larreta administration announced the auction of 1,800
square metres of public lands in the grounds of Tiro Federal
shooting range in the northern neighbourhood of Núñez, near River
Plate's Monumental stadium.  A major part would be used by private
developers to build offices and luxury high-rises — although the
future of "agglomeration" economies and co-working spaces in the
post-pandemic world is unclear, to say the least, the report
relays.

The City branded the development as part of a larger,
state-of-the-art "Innovation Park," a campus for scientific and
technological research, the report notes.  But universities and
public agencies were left with less than 20 percent of the space,
said Mariano Recalde, a former lawmaker and mayoral candidate who
gave up his seat to Valdes last year to be sworn in as senator, the
report discloses.

Meanwhile, in a World Economic Forum ranking of global cities with
the highest percentage of green space, Buenos Aires is ranked 33
out of 37, behind Guangzhou, Warsaw and Cape Town, the report
relates.  Neighbourhoods Almagro and Boedo have only 0.2 m2 of
publicly accessible green space per inhabitant, the report
discloses.

Good intentions abound, but the steps toward a walkable and
liveable city have for some been too timid, the report relays.

"This is a historic moment when cities can change course," Janette
Sadik-Khan, former transport commissioner for New York city, wrote
in a recent report by the National Association of City
Transportation Officials.  "Empty lanes . . . . form the outline of
the future cities we need to build," the report relays.

                          EcoBici Program

Biking enthusiasts have also criticised the current state of the
EcoBici bike-sharing programme, which has been plagued by lack of
available units even before the pandemic hit, the report notes.

In January, the City government announced it would reinstall 20
bike stations in the southern neighbourhoods after dismantling them
because of "vandalism" and alleged "lack of demand." But the
Covid-19 changed their plans, and since May 11 the free biking
scheme is now operating on a reduced basis, with even less stations
and rental periods of 30 minutes, the report relates.

Authorities presiding over the programme address daily criticism
from users, the report relates.  The official line is that right
now two-wheelers are reserved for essential trips, the report
discloses.

Asked by the Times whether the scheme would be relaunched anytime
soon, Mendez responded that for the time being they will continue
with the plan outlined in May, with only 200 of the 400 stations
opened to the public, the report relays.

"These stations are located strategically near transfer hubs and
dense working areas to ensure people moving through these areas
have bicycles as an alternative," said the transport minister, the
report says.

                       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.

Standard & Poor's credit rating for Argentina stands at CCC+ with
stable outlook, which was a rating upgrade issued on Sept. 8, 2020.
Fitch's credit rating for Argentina was last reported at CCC with
n/a outlook, a rating upgrade from CC on Sept. 11, 2020.  DBRS'
credit rating for Argentina is CCC with n/a outlook, a rating
upgrade on Sept. 11, 2020.  Moody's credit rating for Argentina was
last set at Ca, a rating downgrade from Caa2 on April 4, 2020, with
a negative outlook.

As reported by The Troubled Company Reporter - Latin American, DBRS
noted that the recent upgrade in Argentina's ratings (September
2020) follows the closing of two debt restructuring agreements
between the Argentine government and private creditors.  The first
restructuring involved $65 billion in foreign-law bonds.  The deal
achieved the requisite participation necessary to trigger the
collective action clauses and finalize the restructuring on 99% on
the aggregate principal outstanding of eligible bonds.  DBRS added
that the debt restructurings conclude a prolonged default and
provide the government with substantial principal and interest
payment relief over the next four years.

DBRS further relayed that Argentina is also seeking a new agreement
with the International Monetary Fund (IMF) to replace the canceled
2018 Stand-by Agreement.  Obligations to the IMF amount to $44
billion, with major repayments coming due in 2022 and 2023.


ARGENTINA: IMF in 'Initial Stages' of Loan Talks on New Rescue Plan
-------------------------------------------------------------------
Agence France-Presse reports that the International Monetary Fund
is in the early phase of talks with Argentina over a new rescue
package, and is gathering information on how best to help the
crisis-hit nation, a fund official said.

"We are in the initial stages of the process," IMF spokesman Gerry
Rice told reporters, noting that fund officials are focused on
"fact finding" and "listening to the Argentine authorities for
their sense of priorities," according to Agence France-Presse.

After defaulting on its debt in May for the ninth time in history,
the government of President Alberto Fernández in late August
reached a deal with foreign creditors to restructure US$66 billion
in debt after months of tense negotiations, giving it US$37.7
billion in debt relief, the report notes.

Once a deal seemed assured, Buenos Aires formally opened
consultations with the IMF to agree new terms on the repayment of a
US$44 billion bailout loan agreed in 2018 (the original credit line
was worth US$57 billion, though not all of it was received by
Argentina), the report relays.

The talks with the Washington-based crisis lender are "taking place
in what I would characterize as a very constructive climate," Rice
said at a press conference, but there is no date yet for a sending
a mission to Argentina to further the discussions, the report
discloses.

Key topics in the talks include the government's "plans to
strengthen macroeconomic stability, kick start growth and job
creation and reduce poverty, unemployment and, of course, to help
Argentina fight the pandemic, which is an additional serious
challenge," the official said.

Argentina's troubles have been exacerbated by the coronavirus
pandemic, with more than a third of the country's population of 44
million living in poverty.

Inflation stands at 40 percent and the IMF expects Latin America's
third largest economy to shrink by 10 percent this year.

                       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.

Standard & Poor's credit rating for Argentina stands at CCC+ with
stable outlook, which was a rating upgrade issued on Sept. 8, 2020.
Fitch's credit rating for Argentina was last reported at CCC with
n/a outlook, a rating upgrade from CC on Sept. 11, 2020.  DBRS'
credit rating for Argentina is CCC with n/a outlook, a rating
upgrade on Sept. 11, 2020.  Moody's credit rating for Argentina was
last set at Ca, a rating downgrade from Caa2 on April 4, 2020, with
a negative outlook.

As reported by The Troubled Company Reporter - Latin American, DBRS
noted that the recent upgrade in Argentina's ratings (September
2020) follows the closing of two debt restructuring agreements
between the Argentine government and private creditors.  The first
restructuring involved $65 billion in foreign-law bonds.  The deal
achieved the requisite participation necessary to trigger the
collective action clauses and finalize the restructuring on 99% on
the aggregate principal outstanding of eligible bonds.  DBRS added
that the debt restructurings conclude a prolonged default and
provide the government with substantial principal and interest
payment relief over the next four years.

DBRS further relayed that Argentina is also seeking a new agreement
with the International Monetary Fund (IMF) to replace the canceled
2018 Stand-by Agreement.  Obligations to the IMF amount to $44
billion, with major repayments coming due in 2022 and 2023.


[*] Fitch Hikes IDRs on 8 Argentine Corporate Issuers
-----------------------------------------------------
Fitch Ratings has upgraded the Foreign-Currency Issuer Default
Ratings (IDRs) of select Argentine corporate issuers as a result of
Fitch's recent upgrade of Argentina's Country Ceiling to 'B-' from
'CCC'.

The upgrade of the Argentine corporates Long-Term Foreign-Currency
(LT FC) IDR is in line with the upgraded Country ceiling to 'B-'
from 'CCC'. The Argentine upgrade is due to the completion of its
distressed debt exchange on its foreign-currency sovereign debt
securities. Argentina's 'CCC' FC and Local-Currency (LC) ratings
reflect deep liquidity and debt sustainability challenges that
continue to impede improvement in sovereign repayment capacity,
including an economic recession that has been greatly exacerbated
by the coronavirus pandemic, complicated fiscal consolidation
prospects, macroeconomic risks posed by low and declining
international reserves and heavy sovereign reliance on central bank
financing, and lack of concrete plans and foreign financial support
to overcome these challenges.

Argentine corporates' LT FC IDRs continue to be constrained by
Argentina's Country Ceiling of 'B-', which limits the FC rating.
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 may not allow
the transfer of foreign currency abroad to service foreign-currency
debt obligations.

Issuers whose FC IDR is above the Country Ceiling reflects Fitch's
expectation that the company has significant cash flow from abroad,
including 50% of its exports, coupled with offshore cash and credit
lines exceeding hard-currency debt service by at least 1.0-1.5x for
the next 12 months. Therefore, per Fitch's 'Non-Financial
Corporates Exceeding the Country Ceiling Rating Criteria', the
issuer LT FC IDR can be at least one notch above the applicable
Country Ceiling.

Issuance ratings with a recovery rating (RR) of 'RR3' are rated one
notch above the LT FC IDR per Fitch's 'Country-Specific Treatment
of Recovery Ratings Criteria', which allows for a one-notch uplift
for recovery whenever there is a two-notch rating differential
between a company's FC and LC ratings. In instances when the
difference between the FC and LC ratings is one notch or less,
Argentine corporates would be capped at an average of 'RR4', which
is in the range of 31%-50%. Fitch does not notch bonds above a
company's FC IDR when the gap between its FC IDR and LC IDR is less
than two notches, as outlined in Fitch's 'Country-Specific
Treatment of Recovery Ratings Criteria'. The upgrade of Telecom
Argentina's FC IDR to 'B-' now places the gap between the its
ratings at two notches. Telecom Argentina's bonds have been placed
on Rating Watch Negative (RWN) to mirror the RWN that was assigned
to the company's LC IDRs on Aug. 27, 2020 and reflects the risk
that if the company's LC IDRs were downgraded to 'B' from 'B+' the
issuance rating would be downgraded to 'B-'/'RR4' from 'B'/'RR3'.

KEY RATING DRIVERS

Challenged Operating Environment: Fitch expects Argentine
corporates will continue to be challenged by the distressed
economic environment, which is impaired by declining real GDP, high
debt and inflation. Fitch estimates Argentina's real GDP will
contract 12.2% in 2020 (having done so by 12.9% through June 2020)
due to the coronavirus pandemic. Inflation is expected to average
45% over the next three years, and the government debt/GDP ratio is
estimated to be 100% of GDP during the same time period, with a
majority of government debt being external, averaging 75%.

Government Intervention: Fitch maintains its view that greater
government intervention is likely, particularly in the Energy,
Electric Utilities and Telecom sectors. Most recently, the
government introduced a decree that deemed telecommunications were
an essential service, and prices were frozen through YE 2020. The
decree provides the telecom regulatory agency, Ente Nacional de
Comunicaciones the ability to set prices. In the Energy sector, the
government introduced an oil price floor (Barril Criollo) that
guaranteed a price of $45/barrel (bbl) in 2020, and blocked
downstream companies from increasing processing of refined products
at the pump for most of the year. Downstream companies increased
prices slightly over the last two months, but prices remain
controlled. Electric Utilities and Power companies remain highly
exposed to government interference and support. Electricity tariffs
remain frozen, and the government continues to support Compania
Administradora del Mercado Mayorista Electrico SA, the off taker to
power purchase agreements. Fitch estimates the government has
transferred $2.2 billion as of July 31, 2020, a 54% increase from
the same period in 2019.

Capital Controls: Most Argentine corporates have maintained a
strong liquidity profile, but Fitch believes the 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
corporates in Argentina. This measure will pressure liquidity, as
corporates will tap into their international reserves to comply,
while simultaneously accumulating cash in Argentina, which Fitch
expects will be more balanced between Argentine pesos and U.S.
dollars. This will expose corporates to greater FX risk overtime,
as their interest expense and debt are predominately in U.S.
dollars.

Limited Access to Capital: Fitch believes accessibility and cost of
capital to Argentine corporates will remain limited and at a high
cost. The upgrade of Argentina may improve corporates' financing
prospects, but borrowing costs are expected to be high. Rated
corporates with 2020 and 2021 international bond maturities have
been refinanced with exchange offerings, most notably: Compania
General de Combustible, Telecom Argentina S.A. and YPF S.A. Fitch
expects rated corporates will continue to access local bond and
bank markets to finance working capital and refinancing, but the
local financing markets are short term in nature and limited.

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).

RATING SENSITIVITIES

Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade:

  -- 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;

  -- The LC IDR could be upgraded due to improved macroeconomic
conditions coupled with lifted capital controls and less government
intervention.

Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade:

  -- A downgrade of Argentina's country ceiling;

  -- Worsening macroeconomic conditions coupled with stricter
capital controls and great government intervention;

  -- Signs of imminent default on financial obligations; for
example, a formal launch of a debt exchange proposal involving a
material reduction in terms taken to avoid a traditional payment
default.

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

Rio Energy S.A.: Management Strategy: 5, Governance Structure: 5

YPF S.A.: Governance Structure: 4

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).

RATING ACTIONS

IRSA Inversiones y Representaciones S.A.

  -- LT IDR; B- Upgrade; previously CCC

Telecom Argentina S.A.

  -- LT IDR; B- Upgrade; previously CCC

  -- senior unsecured; LT B Upgrade; previously RR3B-

IRSA Propiedades Comerciales S.A.

  -- LT IDR; B- Upgrade; previously CCC

  -- senior unsecured; LT B- Upgrade; previously RR4CCC+

Pan American Energy, S.L, Argentine Branch

  -- LT IDR; BB- Upgrade; previously B+

Pan American Energy LLC Sucursal Argentina

  -- senior unsecured; LT BB- Affirmed; previously BB-

Capex S.A.

  -- LT IDR; CCC+ Upgrade; previously CCC

  -- senior unsecured; LT CCC+ Upgrade; previously RR4CCC

Mastellone Hermanos Sociedad Anonima

  -- LT IDR; CCC+ Upgrade; previously CCC

  -- senior unsecured; LT CCC+ Upgrade; previously RR4CCC

Arcor S.A.I.C.

  -- LT IDR; B Upgrade; previously CCC+

  -- senior unsecured; LT B Upgrade; previously RR4B-




=============
B E R M U D A
=============

TEEKAY CORP: Egan-Jones Hikes Senior Unsecured Debt Ratings to B
----------------------------------------------------------------
Egan-Jones Ratings Company, on September 8, 2020, upgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Teekay Corporation to B from B-.

Headquartered in Hamilton, Bermuda, Teekay Corporation is a
provider of international crude oil and liquefied natural gas (LNG)
marine transportation services.




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

BRAZIL: Airfare Prices Drop 34% Amid Pandemic
---------------------------------------------
Oliver Mason at Rio Times Online reports that the price of flight
tickets in Q2 dropped 34.3 percent compared to the same period last
year, according to data from the National Civil Aviation Agency
(ANAC).

From April to June, the average flight price sold in Brazil was
R$294.92 (US$59), compared to R$448.65 recorded the year before,
according to Rio Times Online.

                  About Brazil

Brazil is the fifth largest country in the world and third largest
in the Americas.  Jair Bolsonaro is the current president, having
been sworn in on Jan. 1, 2019.

Standard & Poor's credit rating for Brazil stands at BB- with
stable outlook (April 2020).  Moody's credit rating for Brazil was
last set at Ba2 with stable outlook (April 2018).  Fitch's credit
rating for Brazil was last reported at BB- with negative outlook
(May 2020). DBRS's credit rating for Brazil is BB (low) with stable
outlook (March 2018).

As reported in the Troubled Company Reporter-Latin America, Fitch
Ratings' outlook revision in May 2020 for Brazil 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.


BRAZIL: Industrial Production Grows 8% in July
----------------------------------------------
Richard Mann at Rio Times Online reports that Brazilian industrial
production was eight percent higher in July than in June, the
Brazilian Institute of Geography and Statistics (IBGE) revealed on
Sept. 3, higher than expected by economists. On the year-on-year
comparison, the decrease stood at three percent.

The economists' median projection compiled in the Bloomberg
consensus was for an increase of 5.9 percent in the indicator in
the monthly comparison, after recording an 8.9 percent increase in
the preceding calculation, according to Rio Times Online.

In the year-on-year comparison, the projection was for a six
percent decline, the report notes.

                  About Brazil

Brazil is the fifth largest country in the world and third largest
in the Americas.  Jair Bolsonaro is the current president, having
been sworn in on Jan. 1, 2019.

Standard & Poor's credit rating for Brazil stands at BB- with
stable outlook (April 2020).  Moody's credit rating for Brazil was
last set at Ba2 with stable outlook (April 2018).  Fitch's credit
rating for Brazil was last reported at BB- with negative outlook
(May 2020). DBRS's credit rating for Brazil is BB (low) with stable
outlook (March 2018).

As reported in the Troubled Company Reporter-Latin America, Fitch
Ratings' outlook revision in May 2020 for Brazil 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.


BRF SA: Fitch Rates Proposed Senior Unsecured Notes 'BB'
--------------------------------------------------------
Fitch Ratings has assigned a 'BB' rating to BRF S.A.'s planned
issuance of senior unsecured debt for a benchmark amount. Proceeds
will be used to repay debt and for general corporate purposes.

BRF's ratings reflect the resilience of the business due to its
geographic diversification and product offering, as well as its
sound liquidity.

KEY RATING DRIVERS

Coronavirus Impact Manageable: BRF has been operating during the
pandemic. However, direct and indirect coronavirus-related expenses
cost the company BRL247 million in 1H20. These costs were related
to additional personnel expenses, prevention, logistics and
donations. Fitch projects adjusted EBITDA of BRL4.2 billion
(including IFRS16) in 2020, compared with BRL3.7 billion in 2019.
The increase in EBITDA is driven by the resilience of the processed
food segment, increased prices and steady overall volumes despite a
depressed food service segment. Consumers' habits changed to more
cooking and indoor dining. Small and large retailers absorbed the
decline in food service consumption.

Stable Credit Profile: Fitch expects BRF's net leverage to remain
relatively unchanged in 2020 despite the pandemic, higher capex and
the devaluation of the real versus the U.S. dollar. For 2020, Fitch
projects the company's net debt/EBITDA leverage ratio to reach
3.8x, which is a modest decline from 3.9x in 2019. Free cash flow
(FCF) should be positive by BRL1.5 billion in 2020 despite an
increase in capex (production, IT, efficiency initiatives) to
BRL2.1 billion from BRL1.3 billion in 2019. Fitch's net debt/EBITDA
ratio is around 1x higher than the ratio reported by BRF due to
IFRS16 adjustments, the exclusion of restricted cash and long-term
investments, and the inclusion of securitized receivables.

Strong Business Profile: BRF is one of Brazil's largest food
companies and one of the largest poultry exporters worldwide. The
company's cash flow benefits from strong domestic brands that give
the company market shares ranging between 40% and 60% in multiple
market segments. While barriers to entry in the processed food
segment are relatively low, BRF benefits from its extensive product
offering, strong brand recognition, recurring innovation and
extensive distribution capacity for refrigerated products in
Brazil. This allows the company to lead price initiatives in many
of its Brazilian categories and provides some resilience during
economic downturns. The company's exposure to the food service
segment in the domestic market was about 11% in volume in 2019.

Geographic Diversification: BRF's business profile benefits from
its geographic diversification, with approximately 46% of its sales
occurring outside Brazil. Fitch believes geographic
diversification, in terms of sales and production, enables the
company to mitigate risks, such as potential restrictions on
exports that may occur in particular regions of the country due to
sanitary concerns.

Protein Sector: Fitch expects long-term fundamentals for the
protein sector to remain positive due to growing demand for protein
and good export markets, especially in Asia, due to the African
Swine Fever. The weak real versus the U.S. dollar will benefit
Brazilian exporters. The USDA forecasts Brazilian chicken meat
consumption growth of 1.5% for 2020. However, the sector might face
short-term headwinds due to higher grain prices, logistic issues
and disruption of the food service segment, somewhat mitigated by
strong growth in the food retail segment.

DERIVATION SUMMARY

BRF's ratings reflect the group's strong business profile as one of
the largest poultry exporters in the world, solid processed foods
business and good brand awareness in Brazil, with a vast
distribution platform. The company is also a leader in the Halal
market, with a market share of over 37% in the Gulf Cooperation
Council countries.

BRF's ratings are tempered by the company's large exposure to
Brazil and high business, execution and sanitary risks associated
with the commodity part of the business, as well as ongoing
litigation risks related to the Trapaca Operation. The company has
weaker credit metrics compared with other international peers, such
as Tyson Foods, Inc. (BBB/Negative); Sigma de Alimentos, S.A. de
C.V. (BBB/Stable); Gruma, S.A.B. de C.V. (BBB/Stable); and JBS S.A.
(BB+/Stable), which operate with lower net leverage ratios.

KEY ASSUMPTIONS

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

  -- High single-digit revenue growth driven by price increases;

  -- Net debt/EBITDA trending toward 3.8x in 2020, assuming some
disruption due to the weak current environment;

  -- Capex of about BRL2.1 billion;

  -- No dividends or M&A.

RATING SENSITIVITIES

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

  -- Net leverage at or below 3.5x for a sustained period;

  -- EBITDA margin at or above 10%;

-- Positive FCF.

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

  -- Net debt/EBITDA above 4.5x for a sustained period;

  -- Sustained negative FCF generation;

  -- EBITDA margin below 8%;

  -- Weak liquidity;

  -- A multinotch downgrade of Brazil would put pressure on BRF's
ratings;

  -- Large legal fines that would put pressure on the company's
liquidity and deleveraging in the near term could trigger a
downgrade.

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: BRF's liquidity remains adequate. BRF had
BRL9.7 billion of cash and cash equivalents and BRL4.1 billion of
short-term debt as of June 30, 2020. BRF issued debentures for a
total amount of BRL2.2 billion in July 2020 and bought back bonds
in the international market totaling USD296 million. BRF prepaid
short-term debts with financial institutions in Brazil totaling
BRL965 million in early August 2020. BRF consequently rebalanced
the participation of real-denominated debt to 35%.

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).


BRF SA: Moody's Rates Proposed Senior Unsecured Notes 'Ba2'
-----------------------------------------------------------
Moody's Investors Service assigned a Ba2 rating to BRF S.A.'s
proposed senior unsecured notes. The outlook is stable.

The transaction will have no material effect on BRF's leverage, as
net proceeds will be used mainly for liability management and
general corporate purposes, while the issuance will improve its
debt maturity profile.

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

Ratings assigned:

Issuer: BRF S.A.

senior unsecured notes: Ba2

RATINGS RATIONALE

BRF's Ba2 ratings reflect its strong business profile and
leadership in both processed foods in Brazil and global poultry
exports. Moody's expects the improvements seen in the company's
performance in 2019 to be sustained through 2021, reflecting the
rationalization measures implemented, a focus on innovation and a
higher valued-added mix. Besides, global economic downturn in 2020
should support poultry demand, as it is cheaper than other animal
proteins. Despite the short-term challenges in the Halal segment,
Moody's expects BRF to continue to benefit from its strong presence
in these markets, while the company expands in other international
markets, in particular China, where the African Swine Fever (ASF)
supports higher animal protein imports.

Offsetting these positive attributes are the low geographic
diversity in terms of production footprint and heavy concentration
in one protein (poultry), and strong exposure to grain prices and
currency volatility. The company's exposure to foreign-exchange
volatility is mitigated by the use of effective hedging
strategies.

BRF has an adequate liquidity profile, with BRL9.7 billion in cash
and equivalents at the end of June 2020, which covers all debt
obligations through 2022. Liquidity is further enhanced by BRL 1.5
billion available under committed credit facilities and positive
free cash flow generation (BRL 3.4 billion in the twelve months
ended June 2020).

Furthermore, BRF continued with its liability management strategy
in July 2020, with the issuance of BRL 2.2 billion in debentures
(used as a collateral for the issuance of agribusiness receivables
certificates -- CRA) and a tender offer for its 2022, 2023 and 2024
bonds, which amounted to $296 million. In August, the company
pre-paid BRL 965 million in short-term debt maturities with
financial institutions in Brazil. Moody's expects BRF to continue
to refinance working capital lines and address shorter-term capital
markets debt maturities, represented mostly by bonds due in 2022,
2023 and 2024 - about $1.1 billion, or $610 million considering
only the 2022 and 2023 maturities. At the end of June 2020, bonds
represented about 57% of BRF's total debt.

The stable outlook reflects its expectations that BRF will present
steady credit metrics in the next 12 to 18 months, and maintain an
adequate liquidity profile, managing capital spending and dividend
distribution in a prudent manner, avoiding compromising its
leverage and cash flow.

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

An upgrade would be considered in case of a continuous improvement
in operating performance, with BRF showing a resilient performance
regardless the underlying macroeconomic environment and consumption
patterns in key markets. An upward rating movement would require
BRF to maintain a strong liquidity position, and improve credit
metrics, with leverage, measured by total adjusted debt/EBITDA
sustained below 3x and cash flow from operations (CFO)/Debt
improving towards at least 15%. Moreover, an upward rating movement
would also be subject to its relative position to Brazil's
sovereign ratings (Ba2 stable).

A downgrade could result from a deterioration in BRF's operating
performance and liquidity, with weaker cash flow limiting the
company's ability to deleverage. Quantitatively, a downgrade could
also occur if total adjusted debt/EBITDA remains above 4x on a
sustained basis. A deterioration in the Government of Brazil's
credit quality could hurt BRF's ratings.

The principal methodology used in this rating was Protein and
Agriculture published in May 2019.

BRF S.A. (BRF) is one of the largest food conglomerates globally
and posted consolidated net revenue of BRL35.8 billion ($8.0
billion, considering average exchange rate) for the twelve months
ending June 2020. Processed food and in natura high value products,
which typically generate higher and less volatile margins than in
natura low value export business, represented about 80% of the
company's total product portfolio. The company operates 40 meat
processing plants, 10 industrial facilities/processing plants for
margarine, pasta, dessert and soybean crushing, and 45 distribution
centers in the world. BRF exports to more than 130 countries and
has a leading position in global poultry exports, with about 11% of
the world's poultry trade.

FS AGRISOLUTIONS: Fitch Assigns BB- LT IDR, Outlook Stable
----------------------------------------------------------
Fitch Ratings has assigned a 'BB-' Long-Term Local and Foreign
Currency Issuer Default Rating and 'A+(bra)' National Long-Term
Rating for FS Agrisolutions Industria de Biocombustiveis Ltda (FS
Bioenergia). The Rating Outlook is Stable. Fitch has also assigned
a 'BB-' rating to the proposed senior unsecured notes with a bullet
maturity between of five and seven years. The notes will be issued
by its fully-owned FS Luxembourg S.a r.l, and will be irrevocably
and unconditionally guaranteed by FS Bioenergia.

The ratings incorporate FS Bioenergia's large scale operations and
low cash cost of production in the volatile Brazilian ethanol
industry. The ratings consider the high volatility found in
Brazil's corn and ethanol prices and the lack of meaningful price
correlation between these two commodities, which add risk to FS
Bioenergia's profitability and cash flow. This risk is mitigated by
FS Bioenergia's business model that benefits from the company's
hefty corn storage capacity and well-established commercial
agreements with corn producers that enable the company to fix corn
prices in advance, reducing the company's exposure to spot price
volatility. The company also produces high value-added animal
nutrition products, whose prices tend to move with the price of
corn and reduce the company's exposure to corn price volatility and
increase the stability of EBITDA generation and operating cash
flows. The location of the company's two plants in the State of
Mato Grosso ensures sufficient supply of low-cost corn and
decreases the distance, and transportation costs, for its animal
nutrition customers.

Fitch expects that FS Bioenergia will generate EBITDA of BRL969
million in the fiscal 2021 and positive FCF from fiscal 2022 and
beyond as capacity expansions come online, allowing rapid
deleveraging over the next three years, improving liquidity and
lengthening debt maturity profile. FS Bioenergia's large FX
exposure is incorporated in the analysis, and importantly, the
ratings also incorporate the successful issuance of the senior
unsecured five- to seven-year notes; Fitch expects at least half of
the notes will be hedged against FX risk.

KEY RATING DRIVERS

High Price Volatility: FS Bioenergia is exposed to price volatility
in terms of both raw material and product price perspectives. Corn
is an agricultural commodity whose spot prices tend to adjust
rapidly to supply and demand imbalances and parity with CBOT corn
prices over the long run. The correlation between corn and ethanol
prices in Brazil is weak, as Brazilian ethanol prices depend
largely on local gasoline price levels, which move in tandem with
international oil prices and the Brazilian FX rate. Ethanol prices
are also indirectly influenced by sugar prices. In Brazil, only 6%
of all ethanol produced comes from corn, while 94% comes from sugar
cane processors. Sugar cane processors can typically shift a
portion of production between ethanol and sugar depending on
prevailing price parity with sugar.

Challenging Operating Environment: Fitch forecasts that demand for
fuel will decline between 10% to 15% in 2020 and Fitch's average
Brent oil price assumption of USD40/barrel limits the potential for
higher ethanol prices through the end of current crop season. While
fuel sales recovered since social distancing measures have been
relaxed, the expected 5.8% contraction in Brazilian GDP in 2020
will have a negative impact on fuel sales in the country. Fitch
assumes average ethanol and corn prices of BRL1.7/litre and
BRL26/bag for FS Bioenergia, respectively, in fiscal 2021, and
compares unfavorably with BRL1.8/litre and BRL22/bag in fiscal
2020.

Adequate Business Model: FS Bioenergia's business model benefits
from its sizable production, equivalent to 1.4 billion litres of
corn ethanol once capacity expansions are complete in March 2021.
The company also benefits from a cash cost structure that is in
line with some of the most efficient sugar cane producers; Fitch
excludes the additional cash cost lowering benefits generated by
sale of animal production products and energy from cogeneration in
its cash cost calculations and peer group comparisons. FS
Bioenergia's efficient operational performance is able to deliver a
yield of 430 litres of ethanol per ton of processed corn. FS
Bioenergia produces and sells corn co-products used in animal
nutrition whose prices tend to correlate with corn prices, helping
to reduce the inherent price volatility. The company's location in
the State of Mato Grosso, Brazil's largest corn producing state
with the lowest cash cost in the world, reduces its logistics costs
and attenuates corn origination risks.

FS Bioenergia's large storage capacity enables the company to
purchase corn up to two years ahead of the beginning of the crop
season, thus avoiding short-term volatilities of spot corn prices.
The long-term purchase agreements established between FS Bioenergia
and corn suppliers are fixed on a BRL per bag price basis and
referenced to CBOT corn prices in BRL when the agreements are
closed. These agreements significantly reduce the company's
exposure to short-term price volatility. The company has already
bought 97.5% of all of its expected corn needs up until May 2021,
which mitigates the impact of 70% increase in spot corn prices in
Mato Grosso seen in 2020 compared with 2019. While the absence of
sugar sales makes the company more exposed to ethanol prices in
Brazil, the use of corn as the main raw production material
translates into a much less capital-intensive production process in
comparison to sugar cane processors.

Robust Cash Flows Expected: Fitch projects FS Bioenergia to
generate EBITDA of approximately BRL1.0 billion in the fiscal 2021
and BRL1.2 billion in the fiscal 2022, as sales volume will benefit
from the recent investments in increased capacity. Given the
challenging operating environment described, Fitch expects FS
Bioenergia to generate cash flow from operations (CFFO) of BRL365
million and negative FCF of BRL339 million, with investments of
BRL705 million including the conclusion of investments related to
expansion at the Sorriso plant in Fiscal 2021. Fitch forecasts CFFO
of BRL0.7 billion in fiscal 2022 and BRL1.0 billion in fiscal 2023,
and positive FCF of BRL0.6 billion and BRL1.0 billion,
respectively, benefiting from lower annual capex of less than
BRL0.1 billion.

Fast Deleveraging Going Forward: FS Bioenergia's strong FCF
generation will result in quick deleveraging. Fitch forecasts net
debt/EBITDA to decline to 3.0x in fiscal 2021 and 1.8x in fiscal
2022, comparing favorably with 5.5x at the end of fiscal year-end,
March 31, 2020. Fitch's base case projections considers 50% of the
new bond issuance will be hedged against foreign exchange risk
through a combination of derivative instruments, which will reduce
the company's exposure to FX risks. Currently, FS Bioenergia is
largely financed with U.S. dollar-denominated debt, while the pure
correlation of ethanol prices and FX rate is typically weak. As of
1Q21, 88% of FS Bioenergia's debt was U.S. dollar-denominated with
revenues fully denominated in Brazilian reals. Fitch also assumes
that proceeds from the bond issuance will be used to prepay the
company's USD490 million secured U.S. dollar-denominated debt,
releasing assets from the existing collateral package. The company
has the challenge to continue diversifying its funding sources, and
increasing its debt maturity profile. Currently, FS Bioenergia's
bank credit facilities are focused on inventories-backed, high
cost, short-term debt.

DERIVATION SUMMARY

FS Bioenergia ratings incorporate the company's short operating
history and ongoing investments to reach ethanol production of 1.4
billion litters by March 2021. The company operates in a volatile
industry and it is more exposed to commodity price risk, compared
to sugar cane processors, which rely on a market pricing mechanism
that links sugar cane costs to commodity prices. This is however
partly mitigated by FS Bioenergia large storage capacity and
well-established commercial policies with corn grain producers,
which enhance corn price stability. The ratings incorporate the
company's large scale and presence of animal nutrition products
that help mitigate price volatility in the industry.

The company is a low-cost producer with capacity to produce ethanol
with cash cost comparable to those of Usina Santo Angelo - USA
(A-[bra]/Stable), Jalles Machado (A+[bra]/Stable) and Adecoagro
(unrated), a cost benchmark in the industry. While the company is
currently more levered than most sugar cane processors peers due to
the currently ongoing capacity expansions, its ratings reflects
Fitch's forecasts of EBITDA reaching near BRL1.0 billion in fiscal
2021 and fast deleveraging going forward. The company is currently
exposed to FX risk and more limiting funding sources, while
companies like USA, Jalles Machado and Biosev (B/BBB[bra]/Negative)
have more manageable FX risk exposure and enjoy higher availability
of long-term funding in the domestic banking market. In its base
case, Fitch assumes that the company will succeed in issuing the
senior unsecured five- to seven-year notes of benchmark size, with
at least half of it being hedged, and that proceeds will be
entirely used to lengthen debt amortization schedule. Fitch expects
that liability management coupled with presence of largely liquid
corn inventories will place FS Bioenergia liquidity in a more
favorable position compared to USA and Jalles Machado

KEY ASSUMPTIONS

  -- Sales ethanol volumes of 1.0 billion litres and 1.3 billion
litres in fiscal 2021 and 2022, respectively. Fitch expects that
hydrous ethanol will make up 65% of total ethanol volumes going
forward;

  -- Sales of animal nutrition products of over 900 thousand tons
and 1.2 million tons in fiscal 2021 and 2022, respectively;

  -- Corn prices at BRL26/bag in the current crop season and
BRL32/bag in 2021/2022;

  -- Fitch assumes average Brent prices of USD41/bbl in 2020 and
USD45/bbl in 2021. Fitch forecasts a year-end FX rate at
BRL5.30/USD in 2020 and BRL5.00/USD in 2021. Fitch also expects
hydrous ethanol prices of BRL1.7/litre and BRL1.9/litre in the
ongoing and next crop seasons, respectively;

  -- Prices for animal nutrition averaging BRL538/ton in fiscal
2021 and BRL646/ton in fiscal 2022;

  -- Total investments of BRL705 million this year including the
completion the Sorriso plant, and BRL71 million in fiscal 2022.

RATING SENSITIVITIES

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

  -- An upgrade is unlikely in the medium term due to the limited
scope for meaningful increases in ethanol prices and intense corn
price volatility in the spot market.

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

  -- A negative rating action could be taken place if FS Bioenergia
does not succeed in issuing the USD500 senior unsecured notes as
planned or if the volume proves insufficient to materially benefit
its debt maturity profile. Fitch would also consider a negative
impact on the ratings if the new notes are not at least 50% hedged
against FX risks;
  -- Deterioration in liquidity and/or difficulties refinancing
short-term debt;

  -- EBITDA margins below 20% on a sustainable basis;

  -- Net leverage above 3.0x on a sustainable basis.

LIQUIDITY AND DEBT STRUCTURE

Higher Liquidity Following Bond Issuance: Fitch expects FS
Bioenergia's liquidity to significantly improve following the
proposed five to seven-year senior unsecured notes issuance, as
proceeds will be used to extend its debt maturity profile. Fitch
expects the company to end fiscal 2021 with cash and short-term
debt positions of BRL286 million and BRL585 million, respectively,
and coverage of 4.0x in fiscal 2022 as the company generates
positive FCF in the year. Readily marketable inventories and
offtake contracts with large fuel distributors reduce refinancing
risks and improve financial flexibility; inventories can be easily
monetized and accounts receivables can be used as collateral under
new credit facilities, if required. As of June 30 2020, cash and
marketable securities were BRL896 million including restricted
cash, which Fitch assumes to be transitory, and compared favorably
with short-term debt of BRL649 million. Fitch estimates corn
inventories of BRL217 million as of the 1Q21, bringing the coverage
ratio to about 1.7x.

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).


FS AGRISOLUTIONS: Moody's Assigns (P)B1 CFR, Outlook Stable
-----------------------------------------------------------
Moody's Investors Service assigned a first-time (P)B1 corporate
family rating to FS Agrisolutions Industria de Biocombustiveis
(FS). At the same time Moody's assigned a (P)B1 rating to the
proposed $500 million senior unsecured notes to be issued by FS
Luxembourg S.a r.l unconditionally and irrevocably guaranteed by
FS. The outlook for the ratings is stable.

Use of proceeds will be to refinance existing debt and investments
focusing on bioenergy, to increase corn-based ethanol production
and operational investments to acquire feedstock to produce
corn-based ethanol, and on forestry, to plant forest, acquire
standing forest or operational investments to support small
producers of timber derived feedstocks via forward contracts to
acquire biomass and funding for their initial capital investments.

Ratings assigned:

FS Agrisolutions Industria Biocombustiveis

  - Corporate Family Rating: (P)B1

FS Luxembourg S.a r.l

  - Proposed Gtd senior unsecured notes: (P)B1

Outlooks:

FS Agrisolutions Industria Biocombustiveis, outlook assigned at
Stable

FS Luxembourg S.a r.l, outlook assigned at Stable

RATINGS RATIONALE

FS Agrisolutions Industria de Biocombustiveis (FS)'s (P)B1 rating
incorporates its scale among the six largest ethanol producers in
Brazil, being the largest on corn feedstock. FS is a low-cost
producer with favorable access to corn feedstock and located in a
region with a high demand for animal nutrition, co-product from the
ethanol production process. The company is also low-carbon
footprint producer benefiting from a sustained demand growth for
biofuels. Additionally, with the ramp-up of new installed capacity
in the current and next harvests Moody's expects FS to generate an
Adjusted EBITDA between BRL900 million and BRL1.1 billion between
March 2021 and March 2022, which will reduce leverage and increase
free cash flow with lower capex levels.

Constraining the rating is FS's high exposure to ethanol and corn
markets dynamics and the consequent susceptibility to sharp price
volatility, event risks, weather imbalances, and global trade
flows. The exposure to corn price volatility as an input is
partially mitigated by its animal nutrition business, since the
price of the dried distillers' grains (DDG) is directly correlated
to those of corn and soymeal, the two most widely used inputs for
animal feed. Although both corn and ethanol prices are ultimately
linked to US dollar and international oil prices, the company is
also exposed to exchange rate volatility and timing mismatch on its
proposed dollar denominated debt. The company indicated that it
will mitigate 50% of the FX exposure over the principal amount of
the bond via the use of currency derivatives. In order to mitigate
price and availability risk FS secures its corn on average 18
months prior to crushing needs. For 2020-21 FS has secured 97.6 %
of its needs with an average price of BRL26.7/sac and for 2021-22
around 40 % with an average price of BRL29.4/sac.

The ratings also incorporate the early maturity stage of the firm,
with ramp-up still underway, and an over-leveraged capital
structure from recent and ongoing investments to reach the target
production capacity. Concentration of production in two plants and
in a single region exacerbates commodity risks.

The price and availability of corn and the demand for animal feed
co-products in the state of Mato Grosso (MT) is highly dependent on
the poultry, swine and cattle raising activities. By installing the
first full corn ethanol plant in Brazil FS has a first mover
advantage and it has delivered robust Adjusted EBITDA margins of
over 38% in 2018-19 and 2019-20. But Moody's believes this margin
level could be challenged by potential new entrants into the corn
ethanol segment, potentially driving an increase in capacity in the
states of Mato Grosso and Goias -- regions with a large corn
supply, high demand for animal feed and tax benefits. UNEM
(National Union of Corn Ethanol) estimates that corn ethanol
capacity will increase from 1.7 billion liters in 2019-20 to 8.0
billion liters in 2027-28, but Moody's believes this capacity could
be reached much sooner. This compares with a corn production of
35.5 million tons in MT in 2019-20, arriving at an estimated 58
million tons by 2029.

FS utilizes corn to produce mainly anhydrous and hydrous ethanol
used as light-vehicle fuels and blends. It started operations in
2017 with a capacity of 265 million liters, currently it has a
capacity of 1.1 billion liters, and it will arrive at 1.4 billion
liters of capacity by March 2021 (the target capacity would
correspond to ~3.9% Brazil's production). At target capacity FS
will be crushing 3.2 million tons of corn per harvest.

Along with the increased capacity, FS has been more than doubling
its EBITDA every harvest. In absolute terms EBITDA was BRL77
million in the 2017-18 harvest, BRL218 million in 2018-19 and
BRL478 million in 2019-20. For the 2020-21 harvest Moody's
estimates an EBITDA of BRL933 million, helping to reduce gross
leverage to 4.0x in 2020-21 and 3.3x in 2021-22 (all Moody's
Adjusted metrics). Running at target capacity, starting in 2021-22,
FSB can quickly increase free cash generation because of its high
margins (average 38.6% in 2018-19 and 2019-20) and low maintenance
capex needs. In 2019-20 capex was of BRL1.0 billion, in the current
harvest capex should be lower than BRL600 million and arrive at
near BRL30 million by 2022-23 absent of new expansion projects. FS
management target net leverage is of 2.0x to 3.0x and Moody's
believes that when once the company can predictably maintain that
target range it will resume its growth projects.

Despite the small scale compared to global agricultural producers,
FS has an installed capacity of 1.1 billion liters of ethanol per
harvest, which places it among the top six ethanol producers in
Brazil. The company runs two plants in the state of MT. The plant
located in Lucas do Rio Verde (LRV) has capacity of 550 million
liters per year and the one located in Sorriso has a capacity of
570 million liters per year, which places them as the largest
ethanol plants in Brazil. In March 2021 FS will finalize the
expansion of Sorriso capacity which should reach 850 million liters
of capacity for the plant and 1.4 billion liters for the company.
While producing ethanol in MT, FS is located closer to the North
and Northeastern regions of Brazil being able to offer products at
a lower logistical cost to those regions since most sugarcane
ethanol is produced in Sao Paulo and Mato Grosso do Sul, in the
Center-south of the country.

The operating model used by FS to produce ethanol from corn is less
verticalized and less complex than the traditional sugarcane model
because the company does not own the corn crops, rather acquiring
it from local suppliers. From one side this implies less control on
the corn supply and may provide less of an entrance barrier when
compared to the more verticalized sugarcane business. On the other
hand, it also leads to a significantly lower capital intensity.
Moody's estimates a maintenance capex requirement of around 1% of
revenues for FS compared to around 10% of the average sugarcane
producers. FS buys the corn, stores, processes and sells ethanol
and its co-products, it does not have the direct risks and capex
relating to agricultural production. Corn can be stored while
sugarcane has a small window of around 24hs between being harvested
and processed. Corn ethanol producers have a higher flexibility to
manage feedstock inventory, which allows for the asset light model
utilized by FS, producing ethanol all-year around with little
downtime. Moreover, because FS is not involved in agricultural
production its overall model is less complex, operations need a
reduced number of employees and corporate structure per liter
produced when compared to the traditional sugarcane business.

Proforma for the issuance of its $500 million notes, FS liquidity
is adequate. As of June 2020, the company had a cash position of
BRL231 million compared to BRL651 million in debt maturities,
mainly working capital lines. But also, in June 2020, FS had an
additional balance of BRL585 million in restricted cash as
requirement to cover some of the aforementioned working capital
lines maturing in the short-term. Because of a current financing
facility FS has large amortizations programmed of BRL1.1 million in
the next three harvests. Pro-forma to the bond these maturities
will be pushed further to 2025-26 leaving FS with minimal debt
maturities in the next 4 harvests. Moody's does expect FS to
maintain a certain amount of short-term lines relating to working
capital needs during the harvest. Cash balance will fluctuate
during the harvest, but Moody's expects the cash and restricted
cash balance to cover all short-term maturities at the end of each
harvest. During peak working capital periods, Moody's expects
inventory levels to increase and FS has a minimal cash target to
cover at least the following three months of debt obligations,
general, sales and administrative expenses. At the same time,
working capital needs will fluctuate between BRL600 million to
BRL900 million during the harvest, once FS is operating near full
capacity.

The stable outlook incorporates its expectation that FS will be
able to increase EBITDA consistently in the next 2 harvests
bringing leverage down to around 4.0x in March 2021, 3.3x in March
2022, and production capacity of 1.1 billion liters in 2020-21 and
1.4 billion liters after that. The stable outlook also incorporates
its expectation that the company will maintain an adequate leverage
as it engages in new expansion projects.

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

Ratings are constrained by the concentration and single line
commodity exposure of the business (corn ethanol and relating
co-products). An upgraded would require an increased
diversification of the business reducing geographic and commodity
risk exposure coupled with a robust financial position with
consistent positive free cash flow, adequate leverage and liquidity
profile. Quantitatively this would require Debt /EBITDA to remain
below 3.5x, Retained Cash Flow/Debt to remain above 15% and
EBITDA/Interest Expense to be sustained above 2.5x.

A downgrade could result from an inability to reduce leverage or a
deterioration of liquidity profile, including the deployment of
large investments that compromise short-term credit metrics.
Quantitatively this would be the case if Debt /EBITDA is sustained
above 4.5x, Retained Cash Flow/Debt remains below 5% or
EBITDA/Interest Expense remains below 1.5x.

Headquartered in Lucas do Rio Verde, state of Mato Grosso (MT),
Brazil, FS is one of the six largest ethanol producers in Brazil.
The company started operations in 2017 with 265 million liters of
corn ethanol capacity and presently has a 1.1 billion liters
capacity into its two plants in Lucas do Rio Verde (LRV) and
Sorriso, both cities in MT. The company also commercializes
co-products generated in the production process, including DDG,
wetcake, corn oil for livestock feed, and electricity. FS is a
limited liability company and was established as a joint-venture
between US based Summit Agricultural Group with a 75% stake and
Brazilian agricultural holding company, Tapajos S.A. In the last
twelve months ended in June 2020, FS generated net revenue of
BRL1.6 billion ($365 million, converted using the average rate for
the period), with an adjusted EBITDA margin of 35.5%.

The principal methodology used in these ratings was Chemical
Industry published in March 2019.




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

AEROPUERTOS DOMINICANOS XXI: Moody's Cuts $317MM Notes to B1
------------------------------------------------------------
Moody's Investors Service downgraded the rating to B1 from Ba3
assigned to the $317 million (approximate issuance amount) Senior
Secured Notes issued by Aeropuertos Dominicanos Siglo XXI, S.A. The
outlook is negative.

Downgrades:

Issuer: Aeropuertos Dominicanos Siglo XXI, S.A.

Senior Secured Regular Bond/Debenture, Downgraded to B1 from Ba3

Outlook Actions:

Issuer: Aeropuertos Dominicanos Siglo XXI, S.A.

Outlook, Remains Negative

RATINGS RATIONALE

Moody's rating downgrade reflects the material reduction of cash
flow generation amid the COVID-19 outbreak and its impact on
Aerodom's liquidity position. Despite the reopening of the airport
for commercial operations Moody's expects a slow traffic recovery
that will continue to impact Aerodom's financial metrics. As a
result, Aerodom amended its $194 million (approximate amount
outstanding) loan due March 2024 that ranks pari passu with the
Notes and waived certain financial covenants.

Moody's regards the coronavirus outbreak as a social risk under its
Environmental, Social and Governance (ESG) framework, given the
substantial implications for public health and safety that lead to
severe restrictions to air travel and thus cancellations of airline
routes and closing of borders as well as enhanced requirements to
maintain health and safety in the airport operations.

As a result of a dramatic drop in traffic starting on April 2020,
the company has experienced a weakening in its liquidity and
financial metrics, becoming more vulnerable to additional external
shocks. As of July, traffic trends started to recover, but on a
yearly basis, Aerodom expects a 58% decline in traffic. Moody's
expects that the recovery will be more gradual and that the decline
in passenger traffic will amount around 60-65% in 2020 compared to
the previous year. Moody's recognizes that more challenging
downside scenarios could materialize.

Moody's expects that the impact on the cash flow resulting from the
declining passenger levels will continue to deteriorate as Aerodom
continues to face low enplanement levels. Notwithstanding,
Aerodom's liquidity position is strong, with a cash balance of
approximately $60 million (as of August 2020) including a 6-month
Debt Service Reserve Fund. Under its Base Case scenario, Aerodom
could rely on the cash available without making draws from the Debt
Service Reserve Account.

The poor performance has led Aerodom to amend its loan contract,
waiving technical Events of Default (EoD) related to debt service
coverage and leverage ratios, starting on September 2020 through
September 2021. Although these changes only apply to the loan, they
also help avoid a technical cross-default on the Notes, mitigating
this risk. Additionally, the amendment allows the company to defer
the next three consecutive principal payments on the loan (3Q2020
through 1Q2021), converting them into a balloon payment due on the
loan maturity date (March 2024).

RATING OUTLOOK

The negative outlook reflects the downside risks stemming from the
impact on the coronavirus on passenger performance and cash
generation capacity which could lead to weak financial metrics and
further covenant waivers from bank lenders, as well as a tighter
liquidity position.

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

In light of the negative outlook, upward rating pressure on
Aerodom's ratings is unlikely in the near future.

The rating could be further downgraded if the coronavirus outbreak
has a longer and continued impact on passenger levels that lead to
a material reduction of available liquidity sources or its
assessment that Aerodom will breach covenants without curing them
or obtaining waivers from creditors.

ABOUT AERODOM

Aerodom operates six airports in the Dominican Republic (Government
of Dominican Republic, Ba3 stable) through a long-term concession
that expires in 2030 and that was granted by the country's
government. Aerodom's operations include las Americas International
Airport in Santo Domingo, the country's capital. Aerodom's rating
considers its strong market position operating under a supportive
long-term concession that allows fair compensation to invested
capital and has shown adequate tariff setting mechanisms. Aerodom
has ample capacity to accommodate expected traffic growth by
undertaking only minimal capital investments. Furthermore, Moody's
recognizes Aerodom's relatively low passenger traffic volatility
stemming from its origin and destination passenger profile and its
diversified carrier base that limits its exposure to airlines.

The principal methodology used in this rating was Privately Managed
Airports and Related Issuers published in September 2017.


DOMINICAN REPUBLIC: Consumer Prices Rose 3.12% in Jan.-Aug. Period
------------------------------------------------------------------
Dominican Today reports that the Central Bank of the Dominican
Republic (BCRD) reported that the consumer price index (CPI)
registered a variation of 0.78% in August compared to July 2020,
placing the accumulated inflation of the January-August period at
3.12 %.

With this result, the interannual inflation measured from August
2019 to August 2020, reached 4.80%, remaining within the target
range established in the monetary program of 4.0% ± 1.0%,
according to Dominican Today.

The report released by the BCRD establishes that annualized core
inflation was 4.24%, Dominican Today notes.  It should be noted
that this indicator isolates the variations in the prices of some
agricultural goods that tend to be volatile, as well as of
alcoholic beverages, tobacco, fuels, and managed and transport
services, thus allowing the extraction of more exact signals for
the conduct of monetary policy, Dominican Today relates.

The publication of the monetary institution explains that the
groups with the highest contribution to inflation in August 2020
were Transportation (1.51%), Food and Non-Alcoholic Beverages
(0.72%), and Housing (1.02%), Dominican Today says.  To a lesser
extent, the variations of the group’s Health (0.91%),
Miscellaneous Goods and Services (0.63%), and Education (0.77%) had
an impact, Dominican Today relays.

It adds that the variation of 1.51% in the CPI of the Transport
group in August 2020 responds mainly to the increases in rates
verified in transport services in unionized buses (7.20%), in
motoconcho (7.17%), by car public (1.97%) and by urban bus (2.10%),
which still reflect the lagged effect of the increase in fuels in
the months of May-July. Also, price increases were registered for
air tickets (12.37%), motorcycles (1.07%), as well as vehicle
repair services (0.47%), Dominican Today says.

Dominican Today discloses that regarding fuel prices, which are
adjusted weekly by the provision of the Ministry of Industry,
Commerce and MSMEs (MICM) in compliance with Law 112-00 on
Hydrocarbons, liquefied gas (LPG) for vehicles increased by 4.73 %,
while the average price of gasoline, regular and Premium, in August
remained practically unchanged compared to July, partially
attenuating the behavior of the group.

The BCRD report also states that the 0.72% growth of the CPI of the
Food and Non-Alcoholic Beverages group responds to the increases
registered in the prices of various items of high weight in the
family basket and that in some cases, their plantations were
affected due to the passage of storms Isaac and Laura through the
country, such as green bananas (19.04%), ripe bananas (17.12%),
onions (6.70%), eggs (3.33%), green pigeon peas (5.98%), rice
(0.53%), purified water (1.40%), red beans (2.37%), squash (9.41%),
green bananas (1.41%), potatoes (2.81%), tomato paste (1.44%) and
powdered milk ( 0.66%). On the contrary, fresh chicken (-10.41%)
and avocados (-12.37%) showed price decreases, partially offsetting
the group’s increase, Dominican Today notes.

The 1.02% variation reflected by the Housing group index is
practically explained by the 4.73% rise in the price of liquefied
petroleum gas (LPG) for domestic use, and 1.22% in the price of
paint, while the housing rental service registered a practically
neutral variation (0.04%), Dominican Today relates.

Regarding the CPI of the Health group, it grew 0.91% in August 2020
compared to July, mainly due to the price increases of
antihypertensive drugs (1.59%), hospitalizations (1.03%), and the
analysis services of laboratory (1.28%), Dominican Today notes.

The monetary entity’s monthly publication adds that the CPI of
the Education group increased by 0.77%, below the typical behavior
that occurs seasonally in this period due to school enrollment,
Dominican Today relays. Indeed, there were increases in the rates
of primary education (2.52%), secondary (2.42%), and preschool
(1.71%), Dominican Today notes.

The low growth of this group in August 2020 responds to the fact
that some private schools, institutes that teach language classes
and universities, applied discounts in their fees for the change of
modality of the program to virtual courses, as an official measure
provided by the Ministry of Education for prevention against the
spread of the coronavirus (COVID-19) in the country. In this sense,
the cost of university education fell (0.78%), Dominican Today
adds.

The August CPI report highlights that the monthly inflation of
tradable goods, those that can be exported and imported free of
restrictions, was 1.24% in August, Dominican Today discloses.

While the CPI of non-tradable goods and services, those by their
nature can only be traded within the economy that produces them or
are subject to measures that limit their imports, grew 0.30%,
Dominican Today relates.

The analysis of the indices by geographical regions shows that
inflation in the Ozama region, which comprises the National
District and the Santo Domingo province, was 0.83%, in the North or
Cibao region 0.80%, the East region 1.01%, and the South region
0.33%, Dominican Today notes.

The less pronounced growth of the CPI in the South region is based
on the fact that the Food and Non-Alcoholic Beverages group, the
one with the most significant relative importance in the basket of
this geographical area, registered a negative variation. The higher
inflation in the East is due to the higher growth of the
transportation service in that region, Dominican Today relays.

The variation of the CPI by socioeconomic strata in August 2020
shows similar rates in the first four quintiles. Quintile 1, that
is, the one with the lowest expenditure, grew 0.84%, 0.88% in
quintile 2, 0.85% in quintile 3, and 0.82% in quintile 4, explained
by the incidence of the Food and Non-Alcoholic Beverages group,
which has greater relative importance in their baskets, Dominican
Today discloses.

The behavior of quintile 5 (0.66%), the one with the highest
spending, basically responds to the increase in airfare rates,
which was partially attenuated by the reduced variation in fuel
prices in August compared to July 2020, Dominican Today 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).




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

GRUPO MINSA: Moody's Alters Outlook on Ba3/Baa1.mx CFR to Negative
------------------------------------------------------------------
Moody's de Mexico Grupo Minsa, S.A.B. de C.V.'s outlook to negative
from stable. At the same time, Moody's affirmed Minsa's Ba3/Baa1.mx
corporate family ratings and assigned a MX-2 (Not-Prime) rating to
Minsa's MXN400 million short-term local notes (certificados
bursatiles) program.

The proposed 5-year MXN400 million short-term local notes program
will replace Minsa's prior program that matures in September 2020.
Drawdowns under the new program will continue to have maturities of
up to 365 days.

Assignments:

Issuer: Grupo Minsa, S.A.B. de C.V.

Senior Unsecured Commercial Paper, Assigned NP/MX-2

Affirmations:

Issuer: Grupo Minsa, S.A.B. de C.V.

Corporate Family Rating, Affirmed Ba3/Baa1.mx

Outlook Actions:

Issuer: Grupo Minsa, S.A.B. de C.V.

Outlook, Changed to Negative from Stable

RATINGS RATIONALE

The change in outlook to negative from stable reflects Moody's
expectation that Minsa's leverage will remain above 3 times in the
next 12-18 months. Moody's estimates that Minsa's adj. debt/EBITDA
will increase to over 3.5x as of year-end 2020 from 2.0x as of June
30, 2020 mainly as a consequence of lower expected EBITDA in 2020.
Moody's expects the company to pay down debt, on average, by MXN29
million per year ($1.3 million) in 2021-22 which will improve its
leverage towards 3.0x by year-end 2022. Moody's estimates that
Minsa's EBITDA margin, as adjusted by Moody's, will remain on
average around 5.2%, per year, in 2020-22; down from an average
EBITDA margin of 7.8% in 2017-19. The contraction in margins
results from higher operating expenses as the company increased its
domestic distribution channel and its commercial and administrative
teams following the sale of its US-based operation in 2018.

Minsa's ratings reflect the company's franchise strength as
Mexico's second largest corn flour producer, the high relevance of
the tortilla in the Mexican diet, and favorable longer-term growth
prospects for the corn flour industry in Mexico. These credit
positives are partly offset by the company's limited operating
scale and product diversification, along with its exposure to
volatile corn prices and a seasonal cash flow pattern because of
the corn purchase cycle which leads to an increase in its working
capital requirements that typically is financed with short-term
debt. The ratings also consider Minsa's high reliance on short term
debt to cover corn purchases that could pressure liquidity if not
timely refinanced.

During the first half of 2020, the company's sales volumes grew by
11% compared to the same period a year earlier, mainly as a result
of extraordinary purchases from the government to support certain
states throughout the Covid-19 outbreak. However, Moody's expects
volumes to return to regular levels in the second half of 2020 and
grow at historical pace for the next two years.

Minsa is the second largest player in the Mexican packaged corn
flour market, with a 16.7% share of total industry capacity. Market
leader Gruma is significantly stronger, with a 68.68% share of
industry capacity in Mexico. Despite the differences in scale
between both companies, the competitive landscape has been
historically stable. But since 2015, several small regional
companies started operations in Mexico. Although competition has
intensified, Minsa has been be able to hold to its market share,
given its national presence and track record. Also, Moody's
considers there are enough opportunities in the Mexican corn flour
market that support the entrance of new players without taking
market share from existing players.

In the upcoming years, Moody's expects the market to gradually move
towards the industrialization of tortillas, benefiting larger
players such as Minsa. While around half of the tortillas produced
in Mexico are made with traditional non-industrial methods, the
industrial method with packaged corn flour is cleaner and more
efficient. The production of packaged corn flour requires only 25%
of water when compared to the traditional non-industrial methods.
Yield is also higher for the industrial method with one metric ton
of corn producing 24% more kilograms of tortillas than the
traditional non-industrial method. Another positive development is
the increased penetration of supermarket chains in Mexico, as they
use packaged corn flour in their in-house tortillerias.

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

A ratings upgrade is unlikely in the near to medium-term because of
the company's limited scale and diversification makes it highly
vulnerable to negative external shocks such as unanticipated
commodity price increases. In the long-term, upward rating pressure
could build once the company materially increases its scale. Minsa
will also need to recover profitability through its recent plan
aimed at increasing operating efficiency. Quantitatively, positive
pressure will require Minsa's revenues to be close to $1 billion
with a Moody's-adjusted EBIT margin of around 10% on a sustained
basis.

The rating could be downgraded if Minsa's margins remains below
expectations, for example due to unexpected corn price volatility.
Downgrade pressure could also emerge from an increase in debt
because of an acquisition or a more aggressive capex plan that
results in weaker credit metrics. Specifically, downward pressure
could emerge if Minsa's EBIT margin, as adjusted by Moody's,
remains below 5.0%, Moody's-adjusted debt/EBITDA exceeds 3.0x, or
if Moody's adjusted EBIT/Interest expense consistently stays below
3.0 times. A significant deterioration in liquidity or delay in
addressing short-term debt maturities can also result in a
downgrade.

Minsa's cash and marketable securities as of June 30, 2020 totaled
MXN316 million (approximately $14 million) which can cover 56% its
short-term debt. Moody's notes that Minsa's debt level is seasonal
and cash needs for the second half remain low, as most of Minsa's
corn needs are sourced in the second quarter when Sinaloa's white
corn is harvested. In addition, the company benefits from its
commercial paper program to cover its working capital requirements.
Larger capital spending of MXN184 million ($9.6 million) in 2019
resulted in negative free cash flow. Going forward, Moody's
estimates Minsa will post positive free cash flow in 2020-21 with
lower capital expenditures of around MXN57 million ($2.5 million)
per year and no-dividend payments.

The principal methodology used in these ratings was Consumer
Packaged Goods Methodology published in February 2020.

The period of time covered in the financial information used to
determine Grupo Minsa, S.A.B. de C.V.'s ratings is between 1/1/2015
and 30/6/2020 (source: Mexican Stock Exchange).

Grupo Minsa, S.A.B. de C.V. is the second largest corn flour
producer in Mexico, with MXN5.1 billion (approximately $256
million) in revenues in the twelve months ended June 30, 2020. The
company owns six corn flour plants in Mexico with total capacity of
746 thousand tons per year. Key products are commercialized under
the Minsa brand and include corn flour tortillas, tamales, and
chips, as well as corn seeds for millers. Minsa is majority owned
and controlled by the Gomez Flores family and is listed on the
Mexican stock exchange since 1997 with a 17% public float.




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

HARD ROCK CAFE: Had to Close Its Doors
--------------------------------------
Trinidad Express reports that the Hard Rock Cafe franchise did not
make it to its first anniversary in Trinidad, having had to close
its doors at one of the largest and premier spots at Gulf City Mall
in San Fernando.

The rock and roll-themed restaurant made history as the first of
its kind in Trinidad and Tobago, but its success was short-lived,
according to Trinidad Express.

The area is now occupied by another popular restaurant, Trotters,
the report notes.

A manager of Trotters told the Express the company moved in and
began operations on August 8.

She said, "It is a new branch. Given the situation with the
pandemic, we do have a take-out service and delivery service like
any other restaurant, and we also have a ten per cent discount once
your total bill crosses $300," the report relates.

For months, social media has been buzzing regarding the operational
status of Hard Rock Cafe Trinidad after the restaurant's iconic
sign along with the awning was removed from its usual spot outside
the establishment, the report notes.

There was further speculation after the restaurant remained closed
following Government's phased reopening of malls on June 1, the
report discloses.

The Express also witnessed movers boxing up furniture and other
items from the restaurant, the report relays.

Manager of Hard Rock Cafe Trinidad, Sherry Persad, seemed reluctant
to speak on the issue but confirmed another restaurant now occupies
the space in San Fernando, the report notes.

Speaking to the Express, Persad said, "I can't give any official
statements. I am no longer associated with them (Hard Rock Cafe),
so I can't give any kind of statement," the report relates.

Sources close to the establishment claim the closure of Hard Rock
Cafe Trinidad makes it the 17th Hard Rock location worldwide to
close since January, the report notes.  Some attributed the closure
to the pandemic, while others felt the price of the food for the
area was too high, which turned off customers, and ultimately was
bad for business, the report says.

Some even offered to buy some of the restaurant's decor and
memorabilia, the report relates.

The last post on Hard Rock Cafe Trinidad's Facebook page was dated
March 25, the report adds.




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

LATAM: Deep Inequalities Worsen Region Vulnerabilities to Crises
----------------------------------------------------------------
Latin America and the Caribbean is especially vulnerable to the
impacts of the COVID-19 because inequality is both deep and spread
out over multiple dimensions, from race and gender to unequal
access to education, health and other services, a new report by the
Inter-American Development Bank shows.

The Inequality Crisis: Latin America and the Caribbean at the
Crossroads is an unprecedented examination of the root causes of
the region's persistent underperformance in the distribution of
income, well-being and opportunities. It takes into account not
only the traditional measures of income but also less tangible
issues such as geography and trust in institutions.

It provides policy recommendations to bridge those gaps and emerge
from the pandemic on a stronger foundation to generate more
inclusive growth.

"Inequality in Latin America and the Caribbean is well-known but
not necessarily well understood," said Eric Parrado, Chief
Economist of the IDB. "We look at how the social contract is
fractured on many levels. The poor are more vulnerable to climate
change. Their education and healthcare are worse. Government
programs to redistribute income are far less effective in the
region than elsewhere. As a result, our schools and cities are
segregated by income at a level that is unseen in other regions."

"Until we take a multidimensional approach to the inequality
challenge, the region will continue to suffer not only from social
unease, but be vulnerable to external shocks like the pandemic,"
Parrado added.

                     COVID-19 Hitting Hard

Latin America has historically struggled to deal with crises. The
book shows that when GDP has dropped by 5 percent or more, the
decline in real wages has usually been large: 10 percent on average
but, in some cases, as high as 20 percent. Unemployment has risen,
as well, and the number of formal jobs declined. As a result,
poverty has typically increased by between 3 and 5 percentage
points, even after government relief efforts were taken into
account.

The COVID-19 crisis has some particularities that will render it
particularly regressive in the short and long term. Immediately
after the pandemic hit the region, most governments put in place
strict lockdown measures that prevented people from working outside
the home. These measures have disproportionately affected
low-income households. About 65 percent of the households in the
bottom 20 percent of the income distribution had experienced at
least one job loss among family members one month into the
lockdown. Within the top 20 percent, the percentage of job losses
were about 22 percent.

         More Resilient, Less Segregated Societies

The challenge, the report notes, is ensuring that in the recovery
benefits all citizens so that societies become more inclusive and
resilient. Otherwise the region will be vulnerable to future
economic and climate change shocks.

The region has made advances in narrowing the income gap,
particularly during the commodity boom years between 2000 and 2013.
Poverty fell, on average, from 42.3 percent in 2002 to 23.1 percent
in 2018, as vast swaths of the population moved into the middle
class. The 10 percent of its richest citizens earn 22 times more
than the poorest 10 percent - a big improvement from the ratio of
49 in 2000.

However, the region lags far behind developed economies grouped in
the Organization for Economic Co-operation and Development (OECD),
where the richest 10 percent earn just nine times more than the
poorest 10 percent. These numbers exclude the Latin American
countries in the OECD.

Societies in Latin America and the Caribbean are especially
segregated by socioeconomic status. In Brazil, for example, the
neighborhood you live in a city contributes more than four times in
explaining a wage differential than your city or state.

Other drivers of inequality are gender and race, researchers found.
Women earn 87 cents for every dollar earned by a man. While deeply
rooted social norms exclude women from top executive jobs, they
work on average three times more at home than their partners.
Adjusting for education, Afro descendants earn wages that are on
average 17 percent lower than the rest of the population, while the
adjusted wage gap for indigenous people is 27 percent.

                Income Determines Schooling

Education is another driver of inequality. Differences in education
explain a quarter of the wage inequality across indices for Latin
American workers. While the poor have more access to educational
services than before, schools in the region are more likely to be
segregated by socioeconomic status, suggesting wealthier families
are sending their children to private schools in greater numbers
than in more developed economies. There are six students from upper
income households for every one classmate from a low-income
household sharing a classroom in Latin America. The ratio in the
U.S. is 3-1 and in Norway it is less than 2-1. High-income
individuals in Latin America spend about twenty-five times more on
the education of their children than low-income parents. More than
40 percent of secondary enrollments are in private schools,
compared with about 10 percent in OECD countries and middle-income
countries in other regions.

One of the key elements to correct these inequalities is better
fiscal policies, the report says. Through taxes and government
expenditures, Latin America reduces inequality by less than 5
percent-the OECD-EU reduces it by 38 percent. In other words, Latin
American governments are 8 times less effective than their OECD and
EU counterparts in reducing inequality. A major obstacle is that
high labor informality in Latin America impacts pensions - a major
redistributive tool in the OECD. Also, some social spending
programs are inefficient. For instance, three-quarters of energy
subsidies benefit the richest 60 percent of the population. Tax
evasion is also higher in Latin America than in more developed
economies.

The report urges governments and other actors to work together to
craft a new social contract. The rich and the upper-middle class
enjoy the benefits of formal employment and exert no pressure to
improve the quality of public education, infrastructure, and
security because private solutions are found. The poor and lower
middle classes live in different neighborhoods, attend different
schools, visit different health clinics, and make do with recently
introduced noncontributory pension and health schemes that are less
generous but a welcome innovation, the book says. A re-design of
safety nets to render them more inclusive is needed. Repairing the
social fabric requires more protection to the poor and lower middle
classes, while improving public services to bring the upper middle
classes into the public space.



                           *********


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

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

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

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

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

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


                  * * * End of Transmission * * *