/raid1/www/Hosts/bankrupt/TCRLA_Public/200925.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

                 L A T I N   A M E R I C A

          Friday, September 25, 2020, Vol. 21, No. 193

                           Headlines



A R G E N T I N A

ARGENTINA: Economy Plunges Record 19.1% in Q2 on Pandemic Impact


B A H A M A S

BAHAMAS: Banking Sector Warns of Catastrophe if Deferrals Continue


B O L I V I A

BANCO NACIONAL: Moody's Cuts Local Currency Deposit Rating to B2


B R A Z I L

CHEMICAL XI-FIDC: Moody's Rates R$28.8MM Mezzanine Shares 'B2'
LOJAS AMERICANAS: Fitch Assigns 'BB' Foreign Currency IDR
LOJAS AMERICANAS: Moody's Assigns Ba1 CFR, Outlook Stable
LOJAS AMERICANAS: S&P Assigns 'BB/B' Issuer Credit Ratings


C O L O M B I A

AVIANCA HOLDINGS: Nets $2 Billion in Bankruptcy Loans
AVIANCA HOLDINGS: Paid Millions in Executive Bonuses


M E X I C O

ELEMENTIA SAB: S&P Affirms BB- ICR, Outlook Neg on Recession Risks


T R I N I D A D   A N D   T O B A G O

TELECOMMUNICATIONS SERVICES: S&P Lowers ICR to 'B+', Outlook Stable

                           - - - - -


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A R G E N T I N A
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ARGENTINA: Economy Plunges Record 19.1% in Q2 on Pandemic Impact
----------------------------------------------------------------
Hernan Nessi and Jorge Iorio at Reuters report that Argentina's
economy contracted a record 19.1% in the second quarter versus the
same period a year earlier as the coronavirus pandemic crippled
production and demand, though was slightly better than analyst
forecasts.

The steep fall, deeper than a 16.3% drop during Argentina's major
2002 crisis, came as the South American country imposed a strict
lockdown in mid-March to stem the virus. The country has over
640,000 confirmed COVID-19 cases, and nearly 13,500 deaths,
according to Reuters.

Argentina, a major grains producer, has been in recession since
2018 and is just emerging from default on its sovereign debt, with
investors again growing concerned about prospects for its economic
recovery and dwindling foreign currency reserves, the report
notes.

The government imposed the lockdown on March 20, and while it has
been eased it remains in place until at least Oct. 11, with
Argentina still at its peak in terms of daily case numbers, the
report relays.  The country recorded over 400 deaths in 24 hours on
Sept. 23, the report notes.

"The key is the lockdown, which restricted supply and was a blow to
demand, which pummeled economic activity in the second quarter of
2020," said consultancy Ecolatina, the report discloses.

A Reuters poll of 14 local and foreign analysts ahead of the data
had forecast a 19.9% average contraction for the April-June period
and a median estimate of a 19.6% drop. The Q2 fall was deeper than
neighbor Brazil, though better than hard-hit Peru, the report
says.

"The strong isolation restrictions imposed from the second half of
March and that lasted until August had a significant economic cost
for the entire country," said economist Natalia Motyl of
consultancy Libertad y Progreso, the report notes.

Motyl added that services, construction and manufacturing had been
the hardest hit, while the important farm export sector had been
less affected by the lockdown, that had taken a hit from global
commodities prices, the report relays.

Argentina’s economy, which declined a revised 5.2% in the first
quarter of the year, is estimated to contract around 12% this year,
according to a central bank poll and government forecasts, the
report adds.

                        About Argentina

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

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

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.




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B A H A M A S
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BAHAMAS: Banking Sector Warns of Catastrophe if Deferrals Continue
------------------------------------------------------------------
RJR News reports that Kenrick Brathwaite, Bahamas' President of the
Clearing Banks Association, said continued deferrals into 2021
would be catastrophic for the banking sector.

In March, the Central Bank of The Bahamas mandated that lending
institutions offer loan deferrals to borrowers who lost their jobs
because of COVID-19 for a three-month period, according to RJR
News.

The figure stood at $1.9 billion as of April, which represented
approximately 38 per cent of private sector credit, the report
says.

Brathwaite said government employees make up the majority of
private sector borrowers, followed by hotel employees and then
businesses, the report discloses.

He said with hotels still closed and many not opening until next
year, it could be disastrous for local banks, the report notes.




=============
B O L I V I A
=============

BANCO NACIONAL: Moody's Cuts Local Currency Deposit Rating to B2
----------------------------------------------------------------
Moody's Investors Service downgraded all long-term ratings and
assessments assigned to Banco Nacional de Bolivia S.A. BNB's local
currency deposit rating was downgraded to B2, from B1, its foreign
currency deposit rating to B3 from B2, and its baseline credit
assessment (BCA) and adjusted BCA to b2, from b1. Moody's has also
downgraded BNB's counterparty risk ratings to B1, from Ba3, and its
counterparty risk assessment to B1(cr), from Ba3(cr). The outlook
on BNB's ratings was changed to stable from negative.

The rating action follows Moody's announcement published on March
22, 2020 that it had downgraded Bolivia's government bond rating to
B2 from B1, and changed the outlook to stable from negative.

The following ratings and assessments were downgraded:

Issuer: Banco Nacional de Bolivia S.A.

Global scale, long-term local currency deposit rating to B2 from
B1, Stable from Negative

Global scale, long-term foreign currency deposit rating to B3 from
B2, Stable from Negative

Global scale, long-term local and foreign currency counterparty
risk rating to B1 from Ba3

Baseline credit assessment and adjusted baseline credit assessment
to b2 from b1

Global scale, long-term counterparty risk assessment to B1(cr) from
Ba3(cr)

Outlook, Changed to Stable from Negative

The following ratings and assessments were affirmed:

Issuer: Banco Nacional de Bolivia S.A.

Global scale, short-term local and foreign currency deposit ratings
of Not Prime

Global scale, short-term local and foreign currency counterparty
risk ratings of Not Prime

Global scale, short-term counterparty risk assessment of Not
Prime(cr)

RATINGS RATIONALE

The rating action on BNB was prompted by a similar action on
Bolivia's government bond rating, which was downgraded to B2, from
B1, considering that BNB's ratings are currently at the same level
of the sovereign ratings. This reflects its view that underlying
inter-linkages between banks' standalone creditworthiness and that
of the sovereign are high.

The downgrade of the sovereign rating reflects Moody's view of the
material erosion of Bolivia's fiscal and foreign exchange reserve
buffers and the country's medium-term prospects for reduced
economic growth, lower government revenue generation and weaker
foreign exchange earnings in the context of relatively weak
hydrocarbon sector demand and persistent policy uncertainty.
Although the government that comes into office after the expected
October 18 presidential election will face material challenges in
implementing fiscal policy adjustments and structural reforms,
Bolivia's favorable debt structure and high debt affordability will
help mitigate credit risks and support its sovereign credit
profile. The stable outlook on the ratings reflects that, at the B2
rating level, risks to Bolivia's credit profile are balanced.

The downgrade of BNB's ratings incorporates the implications of the
fiscal and foreign reserve challenges and the prospect of weaker
economic growth on the local banking system and on BNB's credit
profile. Moody's expects the economic deceleration, affected by
pre-existing pressures and exacerbated by the pandemic outbreak, to
cause a deterioration in banks' asset risk metrics, albeit from
strong levels.

BNB is currently ranked as the second largest bank in Bolivia in
terms of loans and deposits, and it holds a fairly diversified loan
book, with important presence on mortgage, corporate and small and
medium size enterprises segments. The bank's asset quality has been
in line with the banking system's average, with relatively
contained non-performing loans relative to gross loans at 2.2% as
of July 2020, although deteriorating from the 1.9% ratio as of 2019
year-end reflecting the effects of the coronavirus pandemic on
borrowers' repayment capacity. Loan restructurings spiked to 2.7%
as of July 2020, from 1.9% a year earlier, indicating still
seasoning asset risks. Moreover, the impact of the extensive loan
restructurings mandated by regulation to provide relief to
households and commercial borrowers -which include tenor extensions
until 2020 year-end- is not yet fully captured by the reported
asset quality metrics and Moody's therefore expects further
deterioration going forward.

BNB's profitability, as well as its peers', had already been
pressured in recent years by increasing funding costs, which could
only be partially compensated by increasing interest income. As a
result, BNB's net income to tangible assets ratio was a modest 0.3%
annualized as of July 2020, down from 0.9% in 2019. As the
underlying deterioration in asset quality materializes, Moody's
expects further provisioning needs to take a toll on BNB's
profitability in the coming quarters. The bank's credit costs have
already increased, with annualized loan loss provisions accounting
for 1.1% of gross loans as of July 2020 from 0.2% in 2019. This has
led to a stable reserve coverage of problem loans in relation to
2019 year-end at 116%, although the metric is much smaller at 52%
as of July 2020 if reported restructured loans are considered as
problem loans.

The bank's liquidity profile, similarly to most of its local peers,
has deteriorated in the last years because of rapid loan growth and
a largely stagnant deposit base, which is now being further
challenged by extensive loan restructurings. BNB's liquid assets to
total banking assets ratio fell to a moderate 25.0% as of July 2020
from 26.7% as of 2019 year-end and a strong 38% in 2017. BNB funds
most of its loan portfolio with deposits, which results in very low
use of more volatile and expensive market funds. However, the
deposit base is relatively concentrated as institutional investors
-mainly pension funds- account for a large share of total
deposits.

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

An upgrade of BNB's ratings or a change in its outlook to positive
could arise from a similar action on Bolivia's sovereign ratings,
provided that the bank's financial performance stabilizes after the
negative cycle caused by the pandemic outbreak.

A downgrade could be driven by a downgrade of the Bolivian
sovereign rating, further deterioration in the country's operating
environment, or a higher-than-expected deterioration of BNB's asset
quality or pressures on its funding and liquidity profiles.

METHODOLOGY

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




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B R A Z I L
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CHEMICAL XI-FIDC: Moody's Rates R$28.8MM Mezzanine Shares 'B2'
--------------------------------------------------------------
Moody's America Latina Ltda. has assigned definitive ratings of
Baa3 (sf) (Global Scale, Local Currency) and Aaa.br (sf) (Brazilian
National Scale) to the senior shares, and B2 (sf) (Global Scale,
Local Currency) and Ba1.br (sf) (Brazilian National Scale) to the
subordinate mezzanine shares issued by Chemical XI - FIDC Industria
Petroquimica, a securitization backed by a pool of trade
receivables and originated by Braskem S.A. (Ba1, negative
outlook).

Issuer: Chemical XI - FIDC Industria Petroquimica (Chemical XI -
FIDC)

R$363,200,000, CDI + 2.10%, Senior Shares, definitive ratings
assigned Baa3 (sf) (Global Scale, Local Currency) and Aaa.br (sf)
(Brazilian National Scale)

R$28,800,000, CDI + 5.00%, Mezzanine Shares, definitive ratings
assigned B2 (sf) (Global Scale, Local Currency) and Ba1.br (sf)
(Brazilian National Scale)

RATINGS RATIONALE

Chemical XI - FIDC is a close-ended FIDC and will have a final
legal maturity of 24 months from closing. Moody's assigned
definitive ratings to the senior shares and to the mezzanine
shares.

Moody's bases the ratings on the following factors:

  - Credit enhancement in the form of subordination for senior
shares ranging from 9.09% to 13.04%, which adjusts according to
transaction performance, to mitigate losses due to obligor default
or dilution. The minimum subordination level for the mezzanine
shares is 2%. The transaction also benefits from a reserve account
to provide liquidity at payment dates and it is funded prior to
those dates by (i) 30% of estimated payment amount, 30 days prior,
and (ii) 100% of estimated payment amount, 10 days prior.

  - The eligibility criteria of the trade receivables, represented
by electronic invoices to be acquired by the issuer, which include
concentration limits by client, delinquency by client and maximum
term of the trade receivables. The maximum individual obligor
concentration limit is 3%.

  - Low and stable historical delinquency and dilution levels of
the sellers' trade receivables portfolio.

  - Very low commingling risk as payments by obligors are made
directly to the fund's segregated account that it maintains at
Banco Bradesco S.A. (Ba2, stable outlook, long-term bank deposit
rating, Global Scale, Local Currency; and Aa1.br, Brazilian
National Scale).

  - Braskem's sound track record sponsoring and servicing
securitization transactions and the stable performance of these
previous transactions. Chemical XI - FIDC is Braskem group's
eleventh securitization of its trade receivables portfolio. The
performance of past transactions has been in line with the original
assumptions that Moody's used to rate the transactions.

During the initial 18 months of the transaction, the fund will not
make principal payments to the senior and mezzanine shares and
interest payments will be paid on a semi-annual basis. After the
end of the grace period, the transaction will enter a final 6-month
amortization period, when it will make monthly principal and
interest payments. Senior and mezzanine shares will follow the same
amortization schedule.

Amortization payments to the mezzanine shares will only be allowed:
(1) after the fund has made the scheduled senior amortization
payments; and (2) as long as the fund maintains the minimum senior
subordination ratio.

Commingling risk is mitigated because obligors are instructed to
pay directly into a segregated account in the name of the fund by
means of pay slips that Banco Bradesco and other selected
collection banks generate. The seller must remit any monies they
receive to the segregated account within two business days; a
non-automatic acceleration event (evento de avaliacao) is triggered
if payments made directly to the seller's account within a month
are higher than 5% of fund's net assets. The seller will act as
primary servicer.

Moody's analyzed the seller's receivables pool for the 44-month
period, reviewed by E&Y, starting in October 2016 and ending in May
2020. During this period, Braskem generated BRL 137.0 billion of
trade receivables from approximately 1,204,278 separate invoices.
As modeling input assumptions, Moody's used a central mean of 0.33%
monthly dilutions and 0.11% monthly losses over the outstanding
balance, and it assumed portfolio turnover of 24 days. Moody's
calculated loss assumptions using as a proxy delinquency from 91 to
120 days past due receivables over the total pool.

Moody's key ratings model assumptions for this transaction are
Braskem's rating, loss rate and dilution rate.

Factors that would lead to a downgrade or upgrade of the ratings:

Factors that could lead to a downgrade of the rating include (i) an
increase in defaults and dilution levels beyond the level Moody's
assumed when rating this transaction, and (ii) a deterioration in
the credit quality of Braskem.

Factors that could lead to an upgrade of the rating include (i) a
significant decrease on losses or dilution levels beyond the level
Moody's assumed when rating this transaction, and (ii) improvement
in the credit quality of Braskem.

The coronavirus outbreak, the government measures put in place to
contain it, and the weak global economic outlook continue to
disrupt economies and credit markets across sectors and regions.
Its analysis has considered the effect on the performance of FIDC
Chemical XI from the current weak Brazilian economic activity and a
gradual recovery for the coming months. Although an economic
recovery is underway, it is tenuous and its continuation will be
closely tied to containment of the virus. As a result, the degree
of uncertainty around its forecasts is unusually high.

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

The principal methodology used in these ratings was "Moody's
Approach to Rating Trade Receivables-Backed Transactions" published
in July 2020.


LOJAS AMERICANAS: Fitch Assigns 'BB' Foreign Currency IDR
---------------------------------------------------------
Fitch Ratings published the 'BB' Foreign-Currency (FC) Issuer
Default Rating (IDR) and the 'BB+' Local-Currency (LC) IDR of Lojas
Americanas S.A. The Outlook for the LC IDR is Stable. The Rating
Outlook for the FC IDR is Negative, constrained by Brazil's 'BB-'
rating and Negative Outlook, due to the Country Ceiling or its
direct link to the sovereign rating. At the same time, the agency
assigned a 'BB' rating to Americanas' proposed senior unsecured
global notes due in 2030, at benchmark size. The notes will be
issued through its wholly owned subsidiary, JSM Global S.a.r.l.,
and will be unconditionally and irrevocably guaranteed by
Americanas. Proceeds will be used to lengthen the company's debt
profile.

The ratings reflect Americanas' large business scale in the
Brazilian retail industry and strong competitive position, which
has allowed the company to report a long track record of heathy
operating cash flow generation through several economic cycles. Its
business profile benefits from a diversified low-ticket portfolio
in the physical chain, relevant online sales penetration and high
and relatively stable operating margins. The ratings also reflect
Americanas' maintenance of historical robust liquidity, with hefty
cash holdings and lengthened debt amortization schedule. The
ratings also reflect Fitch's projections that the company will
maintain the consolidated gross adjusted debt/EBITDAR and net
adjusted debt/EBITDAR below 4.0x and 1.5x, respectively, on a
sustainable basis.

The company's 'BB' FC IDR is capped by Brazil's Country Ceiling
(BB), as the company's operations are in Brazil and it does not
have assets or material cash held abroad to help mitigate transfer
and convertibility risk.

KEY RATING DRIVERS

Debt Reduction Commitment: Fitch expects strong deleveraging of
Americanas' consolidated balance sheet, due to a robust net capital
injection of BRL7.9 billion in Americanas and BRL0.7 billion in its
subsidiary B2W - Companhia Digital concluded in July and September
2020, respectively. The proceeds will be used to reduce gross debt
and finance an aggressive capex plan. According to Fitch's
methodology, Americanas' net adjusted debt/EBITDAR should drop to
1.1x in 2020 and will remain limited to 1.5x from 2021 onward,
compared to an average of 3.6x in the prior three years. Fitch's
base case scenario incorporates that gross debt will reduce by
about BRL6.0 billion between 2020 and 2021, which will allow total
adjusted debt/EBITDAR to reach sustainable 4.0x ratio, compared to
historical ratios above 5.0x. Relevant acquisitions that consume
material level of cash or increase gross debt were not considered
in the base case scenario, and would likely have negative credit
implications.

Coronavirus Pandemic's Impact: Fitch believes the company will
continue benefiting from its diversified portfolio. The high online
penetration, when compared with Brazilian peers, has helped smooth
business pressures during social distancing measures. Around 50% of
its revenues come from the online channel. At the end of August
2020, 1,400 stores were operating from a total of 1,700 thousand
stores. Fitch believes that Americanas' EBITDAR margin will be
close to 18% from 2021 onward, after a slight decline in 2020, and
compared with an average of 18.6% between 2016 and 2019. The
agency's base case scenario incorporates that Americanas' same
store sales (SSS) will be neutral in 2020 and will grow slightly
above inflation from 2021 onward. Fitch also expects that the
online business will continue to benefit from high demand and new
consumer behavior resulting from the measures to combat the
pandemic. Fitch's base case forecasts online revenues should
increase by more than 30% in 2019.

FCF Remains Pressured: Fitch projections include that Americanas'
total area will increase by 5% per year, from 2021 onward, and the
marketplace will reach 30% of the group's consolidated EBITDA in
2021, from 20% in 2019. Annual capex should range from BRL2.0
billion-BRL2.5 billion, from 2021 to 2023, compared with the
average of BRL1.3 billion from 2016 to 2019. Fitch expects EBITDAR
and cash flow from operations to reach BRL3.3 billion and BRL1.0
billion, in 2020, and BRL3.9 billion and BRL1.2 billion, in 2021,
compared with BRL3.3 billion and BRL1.3 billion in 2019,
respectively. Fitch projects that FCF will remain negative by about
BRL2.0 billion, from 2020 to 2022, peaking above BRL1.0 billion in
2021. The capex should be financed by a combination of cash and
operating cash flow generation.

Solid Business Profile: Americanas has a strong business
positioning in the Brazilian retail industry, which presents
moderate to high risk. The company operates the largest Brazilian
brick and mortar department store, with a diversified portfolio,
allowing the company to report resilient performance along several
economic cycles. Americanas' SSS growth has been historically above
the country's GDP. Complementing its physical business, Americanas
also operates the largest e-commerce store in Latin America, which
represented 35% of the consolidated revenues, in 2019. This
business enjoys important competitive advantages compared with
smaller peers, which has been an important factor to mitigate the
pressures on physical stores sales during the pandemic. Fitch
believes the recent capital injection creates conditions to the
company to solidify its market position and reduce the business
risks, through strategic investments in technology and logistics,
strengthening its presence in the Brazilian brick and mortar and
online retail markets.

DERIVATION SUMMARY

Americanas' 'BB' FC IDRs are below Latin American peers, including
Falabella S.A. (BBB/Negative) and Grupo Elektra, S.A.B. de C.V.
(BB+/Negative) due to its geographic concentration, compared with
Chilean and Mexican peers, which operate in more than one market in
Latin America. Americanas' exposure to Brazil's economic
environment also differentiates the company's risk from its peers.
Americanas' capital structure and liquidity are strong, but is
still threatened by the negative FCF trends, different from peers.
Falabella's and Elektra's Negative Outlooks are due to severe
business interruptions from the coronavirus pandemic.

Although El Puerto de Liverpool S.A.B. de C.V. (BBB+/Stable) is
also concentrated in only one market - Mexico - it is one of the
strongest rated retailers in Latin America. Its retail-only
adjusted gross leverage is close to zero, as of YE 2019, stronger
than Americanas' gross leverage above 4.0x.

Americanas is better positioned than Grupo Unicomer Corp
(BB-/Stable) due to its stronger credit profile. From a financial
risk profile view, Unicomer maintains lower profitability and
higher leverage. As per Fitch's criteria, Unicomer's applicable
Country Ceiling is 'BB-'.

KEY ASSUMPTIONS

Fitch's key assumptions include:

  -- SSS neutral in 2020; SSS as a combination of inflation and
half GDP from 2021 onward;

  -- Increase of 10% in B2W's sales per quarter in the second
half;

  -- Increase of 5% in sales area from 2021 onward;

  -- Marketplace representing 70% of B2W's gross merchandise volume
in 2020-2021.

RATING SENSITIVITIES

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

  -- Positive actions on the sovereign rating may lead to positive
actions regarding Americanas' FC IDR and the rating of the
unsecured notes, currently limited by the Brazilian Country
Celling;

  -- Americanas' LC IDR may be upgraded in case of positive and
sustainable FCF, and relevant geographic diversification.

Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade:

  -- Negative action on the sovereign rating may lead to negative
action regarding Americanas' FC IDR and the rating of the unsecured
notes;

  -- Weak liquidity;

  -- Net adjusted debt/EBITDAR above 3.0x from 2021 onward;

  -- Total adjusted debt/EBITDAR above 4.0x from 2021 onward;

  -- Deterioration of B2W credit quality, on a standalone basis.

LIQUIDITY AND DEBT STRUCTURE

Robust Liquidity: The rating incorporates Fitch's expectation that
Americanas will maintain a strong liquidity profile, with a
manageable debt amortization schedule. In June 2020, the company's
cash position was BRL13.1 billion, with total adjusted debt of
BRL25.7 billion, which includes approximately BRL3.2 billion in
rental obligations, according to Fitch's methodology. Cash on hand
rose due to the recent capital injection, which provided the
company with reasonable comfort to honor its short-term debt.
Benefiting its liquidity is the fact that BRL4.7 billion of its
short-term debt is a discount on receivables that does not depend
on the company's current cash to be amortized, as it depends only
on the settlement of receivables. Fitch believes that Americanas
will use part of its cash to finance the capex of BRL6.2 billion
from 2020 to 2022, and reduce its total debt by about BRL6 billion
in that period. Fitch believes the proceeds of the current notes
will be used to prepay current debt in the same amount.

SUMMARY OF FINANCIAL ADJUSTMENTS

Fitch uses a multiple of 5x to capitalize Brazilian companies
leasing adjusted debt. Fitch includes the factoring of account
receivables on debt. Fitch adjusts short-term and long-term
marketable securities back to cash and equivalents. Fitch considers
the financing to the marketplace sellers as finance activity.
Applying methodology, the finance service activity has a
debt/equity leverage ratio of 2.0x. The asset of the financial
service activity corresponds to the receivables related to the
marketplace business, so, half of this asset is financed by debt,
which is deconsolidated from total debt.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING

The principal sources of information used in the analysis are
described in the Applicable Criteria.

ESG CONSIDERATIONS

The highest level of Environmental, Social and Governance (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).

LOJAS AMERICANAS: Moody's Assigns Ba1 CFR, Outlook Stable
---------------------------------------------------------
Moody's Investors Service assigned a Ba1 Corporate Family Rating to
Lojas Americanas S.A. At the same time, Moody's assigned a Ba1
rating to the proposed senior unsecured notes to be issued by JSM
Global S.a r.l. unconditionally guaranteed by Lojas Americanas S.A.
This is the first time Moody's rates Lojas Americanas S.A. The
outlook for the ratings is stable.

Proceeds will be used to refinance a portion of short and
medium-term indebtedness and for general corporate purposes.

Ratings assigned:

Lojas Americanas S.A.

  - Corporate Family Rating: Ba1

JSM Global S.a r.l.

  - Proposed Gtd Senior Unsecured Notes: Ba1

The outlook for the ratings is stable.

RATINGS RATIONALE

Lojas Americanas ratings incorporate its competitive position as
one of the largest retailers in Brazil with relevant integration of
online, via B2W Companhia Digital, and physical stores; an
improvement in credit metrics and more adequate capital structure
following a BRL 7.9 billion equity injection and B2W follow-on; and
its committed shareholders with a history of supporting the
business. The ratings also reflect the company's flexible small
ticket item portfolio and online-offline integration leading to
very stable sales even through economic downturns, as well as its
large proprietary logistics footprint in Brazil.

Constraining the ratings is Lojas Americanas still aggressive
growth strategy which entails not only large capex sums for organic
growth, but also possible M&A activity. Moody's believes that an
improved capital structure and increased financial flexibility
would make Lojas Americanas more prone to engage in M&A, which
could entail execution risk and delay the expected gross
deleveraging of the company in 2021. But Moody's also expects Lojas
Americanas to maintain a very robust cash balance to cover at least
36 months of upcoming maturities at all times to avoid liquidity
pressures.

Moody's views the recent acquisition of Supermercado Now by B2W as
accretive, just as the acquisitions of tech companies during 2015.
B2W has been growing in the very competitive on-line market and
Moody's expect competition to continue increasing in the coming
years, which could lead to more pressured margins. But revenue
growth and the increasing penetration of B2W 3P platform still
offer margin momentum. At the same time, Moody's sees the strong
physical presence of Lojas Americanas, with its dominance in the
small ticket items variety store format, as a key competitive
strength to leverage its online business.

Sales have proven highly resilient during the COVID-19 crisis, with
gross merchandise volumes advancing 24.8% in Q2 2020 compared to Q2
2019, favored by a 70% growth of online sales. Nonetheless, Moody's
expects higher costs of goods sold and higher expenses to drive
Lojas Americanas EBITDA down by 5.6% in 2020, from BRL3.9 billion
in 2019. In 2020, Moody's expects a 14.9% increase in EBITDA to
BRL4.2 billion, with operations returning to a normalized
run-rate.

Lojas Americanas liquidity and credit metrics will improve
following the BRL7.9 billion equity injection in July 2020.
Moreover, B2W's equity follow-on brought in another BRL0.7 billion
from B2W minority shareholders in September 2020 with proceeds
partly used to reduce debt and reinforce its cash balance.
Accordingly, the company will approach a net cash position and
Moody's expects leverage, measured by gross debt/EBITDA, to reach
4.1x by year-end 2020 and 3.3x by year-end 2021 from 5.7x in June
2020. Liquidity sources also consider BRL1.4 billion in credit card
receivables with an average 90 days term, with a risk equivalent to
those of the issuing banks.

Lojas Americanas Ba1 rating is one notch above Brazil's government
bond rating of Ba2. Granted only on an exceptional basis. Lojas
Americanas has a solid liquidity profile which provides it with
financial flexibility during economic downturns and reduces its
reliance on creditors in such periods. Moody's believes Lojas
Americanas will maintain a cash position enough to amortize at
least 36 months of upcoming debt maturities at all times. Lojas
Americanas sales have proven historically more stable than the
overall Brazilian economy, even under the recent crisis linked to
the COVID-19 pandemic.

The stable outlook incorporates its expectation that Lojas
Americanas will maintain a very robust liquidity profile while its
cash generation ability as measured by EBITDA-Capex/Interest
expenses continues to improve. Moody's also believes Lojas
Americanas will maintain a strong capex program, but that eventual
acquisitions undertaken by the company would not be material enough
to deteriorate credit metrics and liquidity.

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

Ratings could be downgraded if Lojas Americanas fails to maintain
its strong liquidity profile or if the company engages in
acquisitions that lead to a deterioration of credit metrics.
Negative pressure on the rating could also emerge from a perception
of diminishing shareholder support. Quantitatively, a downgrade
could happen if EBIT to interest expense remains below 1.5x,
leverage as expressed by total adjusted gross debt to EBITDA above
4.5x and retained cash flow to net debt below 35%. A downgrade of
Brazil's sovereign rating (Ba2 stable) could also lead to a
downgrade of Lojas Americanas.

A positive rating action would require a sustained strong liquidity
profile and continued improvement in free cash generation.
Quantitatively, a positive action would also require gross leverage
below 3.0x, EBIT to interest expense above 3.0x and retained cash
flow to net debt sustained above 25%, or at a net cash position.

Headquartered in Rio de Janeiro, Brazil, Lojas Americanas is one of
the largest retailers in Brazil with nationwide presence and
largest own logistics. The company has more than 1,700 stores in
its physical platform through different formats, which are
integrated with its digital platform, B2W Companhia Digital (B2W).
Currently, Lojas Americanas is the controlling shareholder of B2W
with 62.52% of its shares and the digital platform comprises both
e-commerce operations (1P) and marketplace platforms (3P), having
reached more than BRL22.0 billion in GMV. In the last twelve months
ended in June 2020, Lojas Americanas generated reported net revenue
of BRL19.7 billion ($4.4 billion, converted using the average rate
for the period), with an adjusted margin of 18.2%.

The principal methodology used in these ratings was Retail Industry
published in May 2018.


LOJAS AMERICANAS: S&P Assigns 'BB/B' Issuer Credit Ratings
----------------------------------------------------------
S&P Global Ratings assigns its 'BB/B' global scale and
'brAAA/brA-1+' national scale issuer credit ratings to Lojas
Americanas S.A. (LASA).

S&P said, "Additionally, we're assigning our 'BB' issue-level
rating to JSM Global S. A. R. L.'s proposed benchmark-size senior
unsecured notes, which are irrevocably guaranteed by LASA. We also
assigned a '4' recovery rating to the proposed notes, which
indicates an average recovery between 30%-50% (rounded estimate
45%) in the event of default.

"The stable outlook on both scales reflects our expectation that
LASA will deliver credit metrics in line with our base-case
assumptions, reflecting the expected capital structure improvements
amid rising operating and cash flows in the next 12-18 months."

The group has worked over the past few months to improve its
capital structure and liquidity in order to face the difficult
macroeconomic conditions and changing consumer habits. Immediately
following the imposition of social-distancing measures in mid-March
to contain the spread of COVID-19, the group secured new credit
lines to support its operations and liquidity. Initial impacts of
the pandemic were the closure of stores mostly located in shopping
malls, drastically denting same store sales in the second quarter,
and the need to rapidly shift products assortment to essential
items such as hygiene and cleaning products, food and beverage. On
the digital side, B2W Companhia Digital (B2W) focused on technology
and innovation to improve customer experience with fast logistics
and integration of online to offline (O2O), as online sales
accelerated in the past few months. In addition, on July 14, 2020,
LASA completed a follow-on, raising about R$7.9 billion. Likewise,
on Sept. 14, 2020, its subsidiary, B2W, completed a private offer
of R$4 billion, of which R$730 million from minority shareholders
the parent, LASA, will also use to retire debt and finance the
expansion plan, improving credit quality.

S&P said, "We expect technological investments in data analytics,
logistics, innovation, and especially O2O initiatives to support
the group's growth perspectives in the next few years. We forecast
LASA will continue opening new stores, though at a slower pace than
in the past, consequently, the digital platform should bolster
revenue growth. We believe B2W will boost its operations by
attracting new sellers, increasing products and categories offered,
deploying new technological services while consolidating the
integration of its inventory. Given these factors, we expect B2W
revenue to grow above the industry average in the coming years.

"We expect LASA to use proceeds from recent capital increases to
retire debt in about R$6.8 billion, resulting in debt to EBITDA
close to 1x and FFO to debt of about 50% in the next two years,
compared with 3.6x and 17% in 2019." A drop in leverage, the
expected solid cash generation with revenue growth of about 20%,
and lower interest burden--despite some reduction in profitability
and a substantial capex plan--supports the group's overall credit
risk.

LASA is reducing sharply its short-term debt exposure and extending
weighted average maturity of debt close to 5 years from 3.5 years
as of June 2020. Increasing the debt maturity, coupled with ability
to reduce capex, postpone dividends during liquidity pressures, and
proven resilience of its business during the pandemic enable its
corporate credit rating one notch above the 'BB-' sovereign
rating.




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

AVIANCA HOLDINGS: Nets $2 Billion in Bankruptcy Loans
-----------------------------------------------------
Global Insolvency, citing The Wall Street Journal, reports that
Avianca Holdings SA lined up a $2 billion bankruptcy-loan package
to finance its stay in chapter 11 from a group of investors and
lenders including United Airlines Inc, and Chairman Roberto Kriete.


Since filing for bankruptcy in May after the coronavirus pandemic
curtailed flying, Avianca has been working to raise capital to stay
in business as air travel remains deeply depressed world-wide,
according to The Wall Street Journal.

"We are extremely pleased with the support received from a large
number of third-party institutional investors and our existing
lenders," said Avianca Chief Executive Anko van der Werff, the
report notes.

"We believe this demonstrates the market’s confidence in
Avianca’s future as a strong, competitive and profitable
airline," he added. With the loan proposal, the three large Latin
American airlines pushed into bankruptcy by the pandemic—Avianca,
Latam Airlines Group SA and Grupo Aeromexico SAB—have all found
sources of private capital to weather the financial impact of
Covid-19, the report relays.

                          About Avianca

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

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

Judge Martin Glenn oversees the cases.

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

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


AVIANCA HOLDINGS: Paid Millions in Executive Bonuses
----------------------------------------------------
Marcelo Rochabrun at Reuters report that airline Avianca Holdings
came under broad criticism in Colombia for paying its top two
executives $6 million in bonuses in May, at a time when the carrier
had furloughed most of its employees without pay and was preparing
a bankruptcy filing.

According to bankruptcy court documents submitted by Avianca
itself, the airline paid Chief Executive Anco van der Werff $3.7
million and paid Chief Financial Officer Adrian Neuhauser $2.8
million on May 6, the report notes.

Five days later, the airline filed for Chapter 11 bankruptcy
protection in the U.S.

"Avianca is facing the most challenging crisis in our 100-year
history," van der Werff said at the time, according to Reuters.

The report notes Avianca defended the bonuses, saying they were
necessary "as an incentive for the company's management team to
continue to provide services to Avianca."

In court filings, it also said its key executives would have sought
employment elsewhere without the extra pay, the report relays.

During the pandemic, Avianca took more radical payroll cutting
measures than its rivals, asking the majority of its 20,000
employees to take unpaid leaves. Its main rival LATAM Airlines
Group LTM.SN slashed employees by half instead, the report
discloses.

Avianca and most Latin American airlines have not received
government bailouts like their peers in the U.S. or Europe, whose
governments have mandated that executives forfeit bonuses in
exchange for aid, the report relays.  Colombia's government has,
however, proposed a loan of more than $300 million to help get
Avianca out of bankruptcy, the report notes.

News of the bonuses was first reported by the Agencia de Periodismo
Investigativo, a Colombian outlet, the report discloses.

The May bonuses were at least the second round of bonuses paid that
year, documents show, although Avianca said some of that money was
in reality tied to 2019 performance, the report relays.

On March 18, just days after the coronavirus pandemic led to the
cancellation of almost all air travel in Latin America, van der
Werff and Neuhauser received $3 million in bonuses combined, the
report says.

A day later, Avianca said the rapidly evolving pandemic had led it
to "take immediate and difficult decisions" including "the
implementation of unpaid work leaves as soon as possible," the
repot relates

Rivals Ryanair and British Airways, which have not filed for
bankruptcy, have also come under scrutiny for proposing bonuses
that were significantly more modest than Avianca's, the report
notes.

Executives at a subsidiary of Lufthsansa, Austrian Airlines,
eventually gave back bonuses last month, after Austria's finance
minister said the payments were "unacceptable" for a company that
was being rescued, the report discloses.

                          About Avianca

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

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

Judge Martin Glenn oversees the cases.

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

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




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

ELEMENTIA SAB: S&P Affirms BB- ICR, Outlook Neg on Recession Risks
------------------------------------------------------------------
S&P Global Ratings, on Sept. 23, 2020, affirmed its 'BB-' issuer
and issue-level credit ratings on Mexican building materials
company, Elementia S.A.B. de C.V. The recovery rating on the
company's senior unsecured notes remains '3'. S&P removed all
ratings from CreditWatch with negative implications because
short-term liquidity risks have decreased, coupled with its
expectation that the planned spin-off will not materialize in the
next few quarters.

S&P said, "The negative outlook reflects our view that Elementia's
operating and financial performance remains exposed to the ongoing
economic contraction in its key markets, related to COVID-19, which
could slow the recovery of its adjusted debt-to-EBITDA and EBITDA
interest coverage ratios to below 5.0x and above 2.0x,
respectively, in the next 12 months.

"Despite an ongoing economic contraction in the countries where
Elementia operates, we now expect cement demand to remain fairly
resilient through the rest of 2020, while metals and other building
materials demand should gradually recover from last quarter's dip
as economic activity improves from lockdown lifts. Elementia's
cement revenue grew at almost double-digits in the first half of
2020, with the U.S. operations vastly outperforming last year's,
while results were relatively flat in Mexico and Costa Rica. This
growth in the cement division, along with tighter working capital
management, a cut in capital expenditures (capex), and debt
maturities extensions allowed the company to more than double its
cash reserves at the end of June 30, 2020, to MXN3.4 billion from
MXN1.4 billion on March 31, 2020. Nonetheless, Elementia's
profitability at its other two business units has worsened and we
anticipate a slow recovery, hurting its consolidated EBITDA, which
we estimate likely to be about 15% lower than in 2019. Metals
volumes had a notable decrease due to lower industrial demand,
while operations in building systems in Latin America were severely
disrupted from lockdowns in Peru, Ecuador, and Bolivia, while in
the U.S., legal costs from a class action lawsuit and operating
issues at its Indiana facility hit Elementia's profitability. As a
result, Elementia's adjusted debt-to-EBITDA increased to close to
6.0x at the end of June 2020, versus 5.0x in 2019, considering
factoring lines.

"In the second quarter of 2020, Elementia announced changes in key
management positions, such as the CEO and CFO. The new team
previously worked in the company's cement division. We do not
expect significant changes in the company's longer-term strategy;
however, the new team is focusing on improving profitability,
resizing its product portfolio, and cutting non-essential expenses.
Additionally, the sale of cement assets in Pennsylvania remains
pending on regulatory approval, which we expect to be granted this
year. The company will use the majority of the sale proceeds --
estimated at about $151 million -- to repay debt, bringing its
adjusted debt-to-EBITDA ratio near 5.0x by year-end 2020.

"Under our revised base-case scenario, we expect Elementia's
adjusted debt-to-EBITDA to approach 4.0x and EBITDA interest
coverage to be around 2.5x by year-end 2021. These metrics will
improve because of a gradual recovery in profitability, since we
expect the consolidated EBITDA margin to trend toward 13%. This is
despite lower cement sales in the U.S., because the asset sales
include a cement plant with an installed capacity of 1.1 million
tons per year. Moreover, the company's financing needs remain
limited: it has no major projects in the pipeline and recently
completed its new grinding facility in Yucatan, Mexico. In the
longer term, as Elementia deleverages its balance sheet and market
conditions improve, we continue to expect the spin-off of its
metals and building systems divisions into a new company. At this
stage, the final terms and conditions of the spin-off transaction
have not been defined, but the potential existence of cross-debt
guarantees between both companies could affect our adjusted key
credit metrics and its liquidity position."




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

TELECOMMUNICATIONS SERVICES: S&P Lowers ICR to 'B+', Outlook Stable
-------------------------------------------------------------------
S&P Global Ratings, on Sept. 23, 2020, lowered its global scale
issuer credit and issue-level ratings on Telecommunications
Services of Trinidad and Tobago Ltd. (TSTT) to 'B+' from 'BB-'. S&P
also removed the ratings from CreditWatch with negative
implications.

S&P said, "The stable outlook reflects our view that TSTT will
continue taking the necessary measures to ease the effects caused
by the pandemic and the economic downturn on its financial and
operating performance. We expect debt to EBITDA above 5.0x, funds
from operations (FFO) to debt below 12%, and free operating cash
flow (FOCF) to debt below 5% for the next 12-18 months. Moreover,
we still view the company as maintaining a very strong link with
the government and its role in the domestic telecom industry.

"TSTT's adjusted debt to EBITDA of about 6.4x as of June 30, 2020,
on an annualized basis, was higher than our forecast of about 4.0x.
The company posted weaker operating and financial performance of
its wireless segment, while adverse implications of winding down
its copper network continued. TSTT subscribers maintained a slower
trend in transitioning from prepaid to postpaid services through
the offering of 'bundled packages' and the expansion of WTTX
coverage. Moreover, delays in growth materialized given the
suspension of all expansion capex and TSTT's offer of competitive
prices and actions to preserve liquidity. Nonetheless, adjusted
EBITDA was 20% lower than in our previous review, mostly driven by
the deterioration in revenues."

Compared with industry peers in the region, which have shown higher
resiliency amid the current economic downturn and the pandemic,
TSTT is taking a hit from a more competitive market, which has led
the company to maintain low prices and pause all growth capex.
Moreover, TSTT has struggled to increase its customer base at its
postpaid services to offset the impact of winding down its copper
network.

S&P said, "Regarding our view of TSTT's financial performance for
the upcoming 12-18 months, we still expect revenue and EBITDA to
fall given the COVID-19 pandemic and the economic downturn that
will slash most households' spending for non-essential telecom
services, such as security and interconnection services. This will
prevent the company from offsetting the copper network wind-down.
Therefore, we expect debt to EBITDA above 5.0x, FFO to debt below
12%, and FOCF to debt below 5% for fiscal end of 2021 of March
31."

For the end of fiscal of 2021, S&P expects 55%-60% of total revenue
to come from wireless and about 26% from enterprise services, which
it views as highly dependent on T&T's economic recovery. Moreover,
this also relies on the company's gradual investments in expanding
the WTTX network coverage and the recovery of the subscriber base
through transitioning wireless prepaid customers to postpaid
services.

The 'B+' issuer credit rating incorporates one notch of uplift from
the company's 'b' stand-alone credit profile (SACP). S&P said, "We
base this on our view of a moderately high likelihood of
extraordinary government support in a timely manner under a
financial distress scenario. We believe TSTT plays a limited
important role in the country as the leading telecom services
provider, while the government owns 51% of TSTT." The company also
maintains a very strong link with the government based on its
majority controlling interest in TSTT.



                           *********


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

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

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

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