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       T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Thursday, October 1, 2020, Vol. 21, No. 197

                           Headlines



A R G E N T I N A

BANCO SUPERVIELLE: Fitch Affirms CCC IDRs on Low Sovereign Rating
TARJETA NARANJA: Fitch Affirms 'CCC' IDR on Low Sovereign Rating
[*] Moody's Affirms 'Caa3/Ca' Ratings on 11 Argentine Companies
[*] Moody's Affirms Ratings on 8 Argentine Regional & Local Govts
[*] Moody's Affirms Ratings on 8 Non-Financial Companies

[*] Moody's Affirms Ratings on Argentine Financial Institutions


B R A Z I L

BRAZIL: To Uphold MSMEs Financial Sustainability During Crisis
BRK AMBIENTAL: Moody's Rates BRL1.1-Bil. Debt 'Ba2/Aa3.br'
SAO PAULO: Fitch Affirms 'BB-' LT IDR, Outlook Negative


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Half of Largest Power Plant Goes Off Line
DOMINICAN REPUBLIC: US$17.6-Bil. Budget for 2021 is 59.3% of GDP


M E X I C O

OFFSHORE DRILLING: Fitch Cuts LT IDRs to 'RD' on Missed Payment


P U E R T O   R I C O

CARIBBEAN TRADING: Hires Estrella LLC as Counsel
ORGANIC POWER: Asks to Defer Plan Deadline Until Oct. 29


U R U G U A Y

ANCAP: S&P Affirms 'BB+' Ratings

                           - - - - -


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A R G E N T I N A
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BANCO SUPERVIELLE: Fitch Affirms CCC IDRs on Low Sovereign Rating
-----------------------------------------------------------------
Fitch Ratings has affirmed Banco Supervielle S.A.'s Foreign
Currency and Local Currency Long-Term Issuer Default Ratings (IDRs)
at 'CCC'.

KEY RATING DRIVERS

IDRS AND VIABILITY RATING (VR)

Supervielle's VR and IDRs are highly influenced and constrained by
the volatile operating environment and low sovereign ratings of
Argentina (Long Term IDR: 'CCC'). While the ultimate economic and
financial market implications of the coronavirus pandemic are
unclear, risks to Argentina's operating environment are clearly
skewed to the downside. This underpins the agency's Negative Rating
Outlook on its operating environment and asset quality scores for
Supervielle.

The ratings also consider the bank's moderate franchise, adequate
capitalization and liquidity and the deterioration of its asset
quality indicators. Market volatility, low loan growth, higher
credit costs and rising administrative expenses due to high
inflation will continue to weigh on banks' financial profiles.

Profitability metrics have been under pressure in recent years as
loan growth has been very low, and this, together with higher loan
loss provisions and continued growth in administrative expenses,
has affected profitability. Fitch notes that high inflation
significantly distorted profitability ratios and affected
international comparability up until December 2019.

Since January 2020, banks' financial statements are adjusted by
inflation, following IFRS rules, so that their figures are not
comparable with previous periods. In 1H20, profitability (in real
terms) improved significantly, aided by wider net interest margins,
increased Central Bank securities (Leliqs) and holdings, cost
control and lower inflation. Supervielle's ratio of operating
profit/risk-weighted assets rose to 1.87% as of June 30, 2020.
However, Fitch believes that, as with the financial system as a
whole, Supervielle's profitability will continue to be highly
pressured by increased credit costs due to the coronavirus
pandemic, high inflation and slow growth.

In addition, profitability has been affected by some distorting
regulations passed by the Central Bank in 2020, such as capping
interest rates offered on loans and placing floors for deposit
rates amid very low credit growth; this has led to Argentine banks'
increased exposure to the public sector, mainly to Central Bank
securities. To compensate the banks for the economics of
intermediation, the Central Bank has been reducing the legal
reserve requirement and gradually expanding the limit for Leliq
holdings.

In line with the deterioration of the operating environment,
Supervielle's nonperforming loan (NPL) ratio rose to 7.4% of total
loans as of Dec. 31, 2019 (up from 3.9% as of December 2018). As of
June 2020, NPLs were lower (6.1%), mainly due to the regulatory
forbearance measures dictated by the Central Bank. As of June 30,
2020, restructured loans under the relief measures accounted for
4.4% of the total.

In Fitch's view, Supervielle's loan loss reserves are adequate and
have increased as the bank has set provisions according to its
expected loss models. On a consolidated basis, the reserve coverage
ratio was 125.5% as of June 30, 2020. In addition, 44% of
Supervielle's commercial loan portfolio is covered with tangible
guarantees (or 66% of impaired commercial loans), and 72% of retail
lending is in the form of payroll loans or financing to retirees.

The securities portfolio has increased significantly (27.8% of
total assets as of June 30, 2019), as the bank has followed the
strategy to invest in highly profitable Leliqs to allocate its
liquidity given the slump in loan growth. Supervielle's total
exposure to the public sector was relatively high as of June 30,
2020 and mostly corresponds to Leliqs. The total sovereign exposure
accounted for 30.7% of total assets, or 3.5x of Fitch Core Capital
(FCC). While this exposure is high, 85.3% of the total exposure
corresponds to Central Bank securities that are highly liquid and
have a lower risk.

Supervielle's capitalization significantly improved following the
Supervielle Group's issuance of fresh capital through an IPO in the
New York and Buenos Aires stock exchanges for a total of USD623
million in 2016 and 2017. As of June 30, 2020, the bank's common
equity Tier 1 (CET1) capital ratio was 13.1%. Although growth in
the medium term will likely be low, the bank is committed to taking
the necessary measures to maintain its capitalization at adequate
levels when needed.

The primary source of funding is the bank's deposit base, which
made up 86.8% of its funding as of June 30, 2020. The bank's
loan-to-deposits ratio has decreased rapidly to 64.9%, well below
the 100%-110% range shown in recent years, as deposit growth has
been significantly stronger than loan growth. Liquidity levels are
adequate, with a liquidity coverage ratio (LCR) of 125.5% and a net
stable funding ratio (NSFR) of 181.2% as of June 30, 2020. The
immediate liquidity ratio (cash and equivalents plus short-term
central banks securities divided by total deposits) stood at a
comfortable 54.5% as of June 30, 2020, while cash and equivalents
represented 19.7% of deposits.

SUPPORT RATING AND SUPPORT RATING FLOOR

Supervielle's Support Rating (SR) of '5' and Support Rating Floor
(SRF) of 'NF' reflect Fitch's view that, although possible,
external support for this bank, as with most Argentine banks,
cannot be relied upon given the ample economic imbalance. In turn,
the sovereign's ability to support banks is uncertain, as reflected
by the low sovereign ratings.

RATING SENSITIVITIES

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

  -- Supervielle's IDRs and VRs would benefit from an upgrade of
Argentina's sovereign rating.

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

  -- The IDRs and VRs of Supervielle would be pressured by a
downgrade of Argentina's sovereign rating or deterioration in the
local operating environment beyond current expectations that leads
to significant deterioration in the bank's financial profile.

  -- Any policy announcements that would be detrimental to the
bank's ability to service its obligations, including a tightening
of capital controls to the extent that they would restrict debt
payments, would be negative for creditworthiness.

SUPPORT RATING AND SUPPORT RATING FLOOR

Changes in the SR and SRF of Supervielle are unlikely within the
foreseeable future.

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.


TARJETA NARANJA: Fitch Affirms 'CCC' IDR on Low Sovereign Rating
----------------------------------------------------------------
Fitch Ratings has affirmed Tarjeta Naranja, S.A.'s (TN) Foreign and
Local Currency Long-Term Issuer Default Ratings (IDR) at 'CCC'.

KEY RATING DRIVERS

TN's IDRs are predominantly influenced and constrained by
Argentina's volatile operating environment and low sovereign
ratings (CCC). The ratings also consider TN's higher risk appetite
relative to bank peers and its business concentration in credit
cards targeting low- and middle-income segments, which has resulted
in relevant asset quality deterioration and profitability
pressures. TN's ratings also factor in its robust niche franchise
as the largest credit card issuer in Argentina and one of the top
credit card issuers in the region.

TN's profitability has historically been sound, driven by ample
margins and fee income sourced from both customers and merchants.
Nevertheless, profitability, though recovering, has been lower than
historical levels reported prior to 2018 as a result of Argentina's
persistently high inflation and higher credit costs due to the long
recession and the lockdown. High inflation significantly affected
the company's profitability following the implementation of IAS29
in 2018, which requires financial statements to be adjusted by
inflation. In 1H2020, TN's profitability improved substantially as
a result of loan growth, lower funding costs, cost control and
controlled provisions and its pre-tax profit/total assets ratio
improved to 7.44% from 2.41% at Dec. 31, 2019. However, Fitch
expects higher credit costs and low growth to pressure TN's
profitability starting in the second half of this year until the
economy improves.

TN's asset quality has historically been adequate for its business
model and segments served, although, given its business focus, the
company's portfolio is highly sensitive to the evolution of the
economic environment. TN's loan quality indicators have
deteriorated significantly since 2017 due to the tough operating
environment, which has affected the population's lower income
segments particularly hard due to high inflation and, more
recently, the lockdown. Loans past due more than 90 days remained
relatively stable in 1H2020. Higher net charge-offs (3.9% of total
loans) and refinanced loans for clients affected by the lockdown
with 1 or 2 instalments in arrears (about 7% of total loans)
contributed to this stability. As a result, the NPL ratio reached
10.5% at June 30, 2020 (up from 10.2% at YE19. TN's reserve
coverage increased to 149.1% of impaired loans as the company set
up loan loss provisions according to its expected loss models.
Fitch expects TN's asset quality indicators to continue to
gradually deteriorate throughout 2H20 as the lockdown continues and
the magnitude of the impact on the economy is yet no clear.

As a non-bank financial institution with short term assets, TN's
funding profile relies primarily on accounts payable and local
issuances. Around 97.6% of its liabilities were unsecured at June
31, 2020. No-cost accounts payable to merchants (for an average
tenor of 45 days) represents 69.6% of liabilities (up from 55.6%
one year before), while a further 18.2% derive from local and
international issues of unsecured debt. Only 2.9% of liabilities
derive from bank financing, although Banco de Galicia y Buenos
Aires S.A., as its ultimate parent, has been a reliable source of
financing. TN's liquidity is strengthened by the predictable churn
of its short-term loan assets (with an average duration of
approximately four months).

TN's capitalization and leverage are adequate for its business
model and risk appetite and has improved due to the decline of the
loan portfolio. Capital is mostly composed of tangible equity with
limited intangible assets. The company's leverage (debt/tangible
equity) and tangible equity to tangible assets ratios improved to
2.46x and 26.46% after having remained relatively stable in the
past few years at around 4x and 20%. TN's capital and leverage
position benefits from strong internal capital generation and
moderate dividend payments, of around 20%.

The rating of TN's senior unsecured debt is at the same level as
the company's Long-Term local currency IDR as the likelihood of
default of the notes is the same as the one of TN. The recovery
rating of 'RR4' reflects the average expected recovery in case of
liquidation.

RATING SENSITIVITIES

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

  -- The IDRs and VRs would benefit from an upgrade of Argentina's
sovereign rating.

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

  -- TN's IDRs would be pressured by a downgrade of Argentina's
sovereign rating or a deterioration in the local operating
environment beyond current expectations that leads to a significant
deterioration in its financial profile;

  -- Any policy announcements that would be detrimental to the
company's ability to service its obligations, including a
tightening of capital controls to the extent that they restrict
debt payments, would be negative for creditworthiness.

SENIOR DEBT

Ratings on senior debt are primarily sensitive to any change in
TN's IDRs.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING

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

ESG CONSIDERATIONS

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


[*] Moody's Affirms 'Caa3/Ca' Ratings on 11 Argentine Companies
---------------------------------------------------------------
Moody's Investors Service affirmed the Corporate family and debt
ratings of 11 Argentine utilities and infrastructure companies. At
the same time, Moody's changed to stable from negative the outlook
on 6 issuers within the portfolio. This rating action follows the
rating action on Argentina's sovereign bond rating, affirmed at Ca
with a stable outlook, and the maintenance of its foreign currency
country ceiling at Caa3.

Issuers and ratings included in this action are as follows:

Ratings affirmed; outlook changed to stable:

(1) Empresa Distribuidora y Com. Norte S.A. (Edenor)

    Corporate Family Rating affirmed at Caa3

    $176 million outstanding Senior Unsecured Global Notes due
    2022 rating affirmed at Caa3

    Outlook, Changed to stable from negative

(2) Transportadora de Gas del Sur S.A. (TGS)

    Corporate Family Rating affirmed at Caa3

    $500 million Senior Unsecured Notes due 2025 rating affirmed
     at Caa3

    Outlook, Changed to stable from negative

(3) Pampa Energia S.A. (Pampa)

    Corporate Family Rating affirmed at Caa3

    $500 million Senior Unsecured Global Notes due in 2023
    (originally issued by Petrobras Argentina S.A.) affirmed at
    Caa3

    $300 million Senior Unsecured Global Notes due in 2029
    affirmed at Caa3

    $750 million Senior Unsecured Global Notes due in 2027
    affirmed at Caa3

    Outlook, Changed to stable from negative

(4) Agua y Saneamientos Argentinos S.A. (Aysa)

    Corporate Family Rating affirmed at Ca

    $500 million Senior Unsecured Euronotes due 2023 rating
    affirmed at Ca

    Outlook, Changed to stable from negative

(5) MSU Energy S.A. (MSU)

    $600 million Senior Secured Global Notes due 2025 rating
    affirmed at Ca

    Outlook, Changed to Stable from negative

(6) Empresa Distribuidora de Electricidad Salta (EDESA)

    Corporate Family Rating affirmed at Ca

    $65 million Senior Unsecured Notes due 2021 affirmed at Ca

    Outlook changed to stable from negative

Ratings affirmed, with negative outlook:

(7) Aeropuertos Argentina 2000 S.A. (AA2000)

    Corporate Family Rating affirmed at Caa3

    $350 million Senior Secured Global Notes due 2027 rating
    affirmed at Caa3

    Outlook remains negative

(8) Albanesi S.A. (Albanesi)

    Corporate Family Rating affirmed at Caa3

    Outlook remains negative

(9) Generacion Mediterranea S.A (Albanesi)

    $336 million Backed Senior Unsecured Global Notes due 2023
    rating affirmed at Caa3

    Outlook, remains negative

(10) Genneia S.A. (Genneia)

     Corporate Family Rating affirmed at Caa3

     $500 million Senior Unsecured Global Notes due 2022 rating
     affirmed at Caa3

     Outlook remains negative

(11) YPF Energia Electrica S.A. (YPFEE)

     Corporate Family Rating affirmed at Caa3

     $400 million Senior Unsecured Global Notes due 2026 rating
     affirmed at Caa3

     Outlook remains negative

RATINGS RATIONALE

The ratings' affirmation coupled with the outlook change to stable
from negative on Edenor, TGS, Pampa, Aysa, MSU and EDESA follows a
similar action on the sovereign. The ratings continue to reflect
the strong credit linkages and the exposure these companies have to
Argentina's regulations and operating environment.

The ratings affirmation and negative outlook for AA2000, the
Albanesi entities, Genneia and YPFEE acknowledges that those
companies will likely face restrictions to make payments on its
upcoming principal debt maturities denominated in US dollars coming
due in 2021 because of the recent restrictions imposed by the
Central Bank of Argentina (CB). While Fitch expects these companies
to enter into constructive negotiations with their creditors to
extend their principal maturities because of the CB regulations,
the outcome of these negotiations is at this time uncertain and
exposed to various downside risks that could entail losses to
investors larger than the assumed at the current rating level,
which explains the negative outlook.

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

The stable outlook on the ratings listed is in line with the stable
outlook of the sovereign. Nevertheless, further deterioration in
the operating environment or a significant negative shift in
policies or regulations for the companies in the infrastructure
sector will likely result in negative pressures on their ratings.

Considering the recent ratings' affirmation and current
constraining factors, a rating upgrade is unlikely in the short
term. However, an upgrade of the sovereign coupled with improved
operating conditions could create positive rating pressure.

Furthermore, the outlook stabilization of those ratings that
currently have a negative outlook will require more clarity on
their ability to make payments on their upcoming dollar denominated
debt maturities.


[*] Moody's Affirms Ratings on 8 Argentine Regional & Local Govts
-----------------------------------------------------------------
Moody's Investors Service affirmed the issuer and debt ratings
(Global Scale) of eight Argentinian provinces, a city and a
municipality. For the Province of Cordoba, the Province of Mendoza
and the Province of Rio Negro, the outlook has been changed to
stable from negative. For the rest of the issuers, the outlook
remains negative. Moody's also affirmed the baseline credit
assessments on all affected issuers.

This rating action on these Argentine regional and local
governments follows Moody's affirmation of the Government of
Argentina's local-currency and foreign-currency sovereign bond
ratings at Ca and change of the outlook to stable from negative on
September 28, 2020.

RATINGS RATIONALE

The affirmation of the ca/Ca baseline credit assessments and
ratings for all sub-sovereign issuers, with the exception of the
City of Buenos Aires, reflects the very close economic and
financial linkages that exist between Argentina's sovereign and
sub-sovereign governments. Until the fundamental macroeconomic
problems that continue to weigh on the sovereign credit profile are
addressed, capital market access will remain limited leading to
elevated financing credit risks of sub-sovereign governments.

The outlook changed to stable from negative on the Province of
Cordoba, the Province of Mendoza and the Province of Rio Negro
follows a similar rating action on Argentina's sovereign bonds
ratings --both in local and foreign currency. The stable outlook
reflects Moody's expectation that, given the details of the ongoing
debt restructuring of these provinces, bondholders will not face
losses exceeding a range of 35- 65%.

The negative outlook on the rest of the issuers reflects the
uncertainties related to future investors losses because of the
very preliminary stage of their debt restructuring proceedings.
Given the high uncertainty at this time, Moody's notes that
investor losses could exceed the 35-65% range consistent with the
Ca rating.

For the City of Buenos Aires, the affirmation of the caa3/Caa3
baseline credit assessment and debt ratings incorporates Moody's
assumption that the City will continue to exhibit a strong credit
profile relative to peers despite the expected economic contraction
and deterioration in revenue in 2020. Moody's views that the City
is resilient to capital market access restrictions because it does
not face significant funding needs in 2020-21. At the same time,
Moody's recognizes that the issuer does not plan to initiate a debt
restructuring process. However, unlike the rest of the issuers
noted previously who likewise have very preliminary debt
restructuring proceedings, Moody's assumes recovery rates for
bondholders of the City's debt will be higher than 35-65%. The
negative outlook on the City of Buenos Aires' rating reflects
Moody's expectation of increasing intervention on the City's
finances by the sovereign, as evidenced by the recent abrupt
changes to the federal tax sharing regime, which will add to
budgetary pressure. Moody's considers that the current rating level
and outlook capture the increased vulnerability of the City to
changes imposed by the federal government, which has a long history
of haphazard credit negative policymaking.

ISSUERS AND RATINGS AFFECTED

The ratings of the following issuers were affirmed and their
outlooks remain negative:

Province of Buenos Aires: foreign and local currency issuer
ratings, affirmed at Ca and foreign currency senior unsecured debt
ratings, affirmed at Ca. Outlook remains negative.

Province of Santa Fe: foreign currency issuer and senior unsecured
debt ratings debt ratings affirmed at Ca. Outlook remains
negative.

Province of Chaco: foreign currency issuer and senior unsecured
debt ratings affirmed at Ca. Outlook remains negative.

Province of Chubut: foreign currency issuer rating affirmed at Ca
and foreign currency senior secured debt ratings affirmed at Ca.
Outlook remains negative.

Province of Tierra del Fuego: foreign currency issuer rating
affirmed at Ca and foreign currency senior secured debt ratings
affirmed at Ca. Outlook remains negative.

Municipality of Cordoba: foreign currency issuer and senior
unsecured debt ratings debt ratings affirmed at Ca. Outlook remains
negative.

City of Buenos Aires: foreign currency senior unsecured debt
ratings affirmed at Caa3, foreign and local currency senior
unsecured MTN ratings affirmed at Caa3. Outlook remains negative.

The ratings of the following issuers were affirmed and their
outlooks changed to stable from negative:

Province of Cordoba: foreign and local currency issuer and foreign
currency senior unsecured debt ratings debt ratings affirmed at Ca.
Outlook changed to stable from negative.

Province of Mendoza: foreign and local currency issuer and foreign
currency senior unsecured debt ratings debt ratings affirmed at Ca.
Outlook changed to stable from negative.

Province of Rio Negro: foreign currency issuer and senior unsecured
debt ratings debt ratings affirmed at Ca. Outlook changed to stable
from negative.

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

Moody's does not expect upward pressures in the rated Argentinean
sub-sovereigns in the near to medium term. Nevertheless, Moody's
would consider an upgrade if financing conditions stabilize and the
anticipated losses to private creditors from debt restructuring are
less than currently forecast.

Given the strong macroeconomic and financial linkages between the
Government of Argentina's and Sub-sovereigns, a downgrade in
Argentina's bond ratings and/or further systemic deterioration
could exert downward pressure on the ratings. Alternatively,
increased idiosyncratic risks could translate into a downgrade.
Moody's would also downgrade the ratings in the event a debt
restructuring results in losses inconsistent with the current
ratings.

The principal methodology used in these ratings was Regional and
Local Governments published in January 2018.


[*] Moody's Affirms Ratings on 8 Non-Financial Companies
--------------------------------------------------------
Moody's Investors Service affirmed the ratings of eight
non-financial non-utilities companies with operations in Argentina
and has changed outlooks to stable from negative on all these
companies.

The rating actions on these companies follow Moody's Investors
Service's affirmation of Argentina's government bond rating at Ca,
with the outlook changed to stable from negative, on September 28,
2020.

ISSUERS AND RATINGS AFFECTED

Affirmations:

Issuer: Arcor S.A.I.C.

  Corporate Family Rating, Affirmed Caa2

  Senior Unsecured Regular Bond/Debenture, Affirmed Caa2

Issuer: Pan American Energy, S.L.

  Corporate Family Rating, Affirmed Caa1

Issuer: Pan American Energy, S.L., Argentine Branch

  Gtd Senior Unsecured Medium-Term Note Program, Affirmed (P)Caa1

  Gtd Senior Unsecured Regular Bond/Debenture, Affirmed Caa1

Issuer: Raghsa S.A.

  Corporate Family Rating, Affirmed Caa2

  Senior Unsecured Regular Bond/Debenture, Affirmed Caa2

Issuer: Tecpetrol Internacional S.L.U.

  Corporate Family Rating, Affirmed Caa1

Issuer: TECPETROL S.A.

  Gtd Senior Unsecured Regular Bond/Debenture, Affirmed Caa1

Issuer: Telecom Argentina S.A.

  Corporate Family Rating, Affirmed Caa3

  Senior Unsecured Regular Bond/Debenture, Affirmed Caa3

Issuer: YPF Sociedad Anonima

  Issuer Rating, Affirmed Caa3

  Senior Unsecured Medium-Term Note Program, Affirmed (P)Caa3

  Senior Unsecured Regular Bond/Debenture, Affirmed Caa3

Outlook Actions:

Issuer: Arcor S.A.I.C.

  Outlook, Changed To Stable From Negative

Issuer: Pan American Energy, S.L.

  Outlook, Changed To Stable From Negative

Issuer: Pan American Energy, S.L., Argentine Branch

  Outlook, Changed To Stable From Negative

Issuer: Raghsa S.A.

  Outlook, Changed To Stable From Negative

Issuer: Tecpetrol Internacional S.L.U.

  Outlook, Changed To Stable From Negative

Issuer: TECPETROL S.A.

  Outlook, Changed To Stable From Negative

Issuer: Telecom Argentina S.A.

  Outlook, Changed To Stable From Negative

Issuer: YPF Sociedad Anonima

  Outlook, Changed To Stable From Negative

RATINGS RATIONALE

Arcor S.A.I.C.

Lead Analyst: Martina Gallardo Barreyro

Person Approving Credit Rating: Marianna Waltz

Moody's affirmed Arcor S.A.I.C.'s Corporate Family Rating (CFR) and
senior unsecured global notes' ratings at Caa2. The outlook was
changed to stable from negative.

Arcor's rating are supported by its leading market position as one
of the largest food producers in the region and the largest in
Argentina, where it has a leading market position in the
confectionery and chocolates industry. The rating is also supported
by the limited volatility in products as the majority of its
revenues are derived from the relatively stable food business;
which in turn explain Arcor's strong performance during the
COVID-19 pandemic, increasing six-month EBITDA through June 2020 by
47% to $147 million. Its international business gives it access to
fast-growing developing markets and provide foreign currency cash
flow (45% of sales in foreign currency, including exports from
Argentina), which provide natural hedges for its US dollar
denominated debt. Furthermore, Arcor's consolidated liquidity is
supported by available foreign-currency cash balances, which
comprise most of its ARS11 billion (around $150 million) in cash as
of June 30, 2020; that eventually support the service of US dollar
denominated debt in case of need.

The stable outlook on Arcor reflects its expectation that the
company's credit metrics and operations will remain solid through
the next 12-18 months. Arcor's creditworthiness cannot be
completely de-linked from the credit quality of the Argentine
government, and thus its ratings and outlook also incorporate the
risks that it shares with the sovereign.

Pan American Energy, S.L and Pan American Energy, S.L., Argentine
Branch

Lead Analyst: Martina Gallardo Barreyro

Person Approving Credit Rating: Marianna Waltz

Moody's affirmed Pan American Energy, S.L.'s (PAE) CFR at Caa1. At
the same time, Moody's affirmed Pan American Energy, S.L.,
Argentine Branch's (PAE Argentine Branch) Caa1 backed senior
unsecured notes rating and (P)Caa1 backed senior unsecured MTN
rating. The outlook was changed to stable from negative.

PAE's rating reflects the companies' solid cash generation and
interest coverage, strong sponsors, good liquidity profile and
conservative financial policies despite weak operating environment
in Argentina. PAE is 50% owned by BP p.l.c. (A1 negative) and 50%
owned by BC, a privately-owned oil and gas company that is 50%
owned by Bridas Energy Holdings Ltd. and 50% by CNOOC Limited
(CNOOC, A1 stable). PAE's rating is constrained by (1) its
concentration of operations and assets in Argentina (91% of proved
reserves), although the company also operates in Bolivia (6%) and
will soon ramp up operations in Mexico (3%); and (2) its exposure
to the uncertain energy government policies in Argentina, which
could limit PAE's ability to economically exploit its reserves and
book additional proven reserves. PAE Argentine Branch's outstanding
senior unsecured notes' Caa1 rating mirrors the rating and outlook
of its guarantor, PAE.

PAE's stable rating outlook reflects the company's solid credit
metrics for its rating category and good liquidity profile. PAE's
creditworthiness cannot be completely de-linked from the credit
quality of the Argentine government, where it generates the bulk of
its revenues, and thus its ratings and outlook also incorporate the
risks that it shares with the sovereign.

Raghsa S.A.

Lead Analyst: Martina Gallardo Barreyro

Person Approving Credit Rating: Marianna Waltz

Moody's affirmed Raghsa S.A.'s (Raghsa) CFR and senior unsecured
notes' ratings at Caa2. The outlook was changed to stable from
negative.

Raghsa's Caa2 rating is mainly supported by (1) its expectation of
higher operating cash flow in fiscal year ending in February 2021
resulting from the new lease revenue at the new Centro Empresarial
Libertador office building; (2) Raghsa's high occupancy rates; (3)
healthy tenant base and (4) healthy liquidity profile. The rating
also reflects Raghsa's moderate leverage for the rating category
relative to its high-quality assets, which are mostly unencumbered
and support its liquidity sources. Key rating challenges for
Raghsa's ratings are its small size relative to its industry peers,
and the concentration of its portfolio in four office buildings in
the City of Buenos Aires. Raghsa's liquidity profile is very good.
Cash and marketable securities are denominated in US dollars and
amount to $133 million as of May 31, 2020, with no significant debt
maturities until 2024 and 2027.

Raghsa's stable outlook reflects Moody's view that the
creditworthiness of the company will be supported by steady revenue
and cash flow generation derived from the broad base of tenants,
high occupancy rates and multiple-year lease contracts. Raghsa's
creditworthiness cannot be completely de-linked from the credit
quality of the Argentine government, where it generates the bulk of
its revenues, and thus its ratings and outlook also incorporate the
risks that it shares with the sovereign.

Tecpetrol Internacional S.L.U. and Tecpetrol S.A.

Lead Analyst: Martina Gallardo Barreyro

Person Approving Credit Rating: Marianna Waltz

Moody's affirmed Tecpetrol Internacional S.L.U. (Tecpetrol
Internacional) CFR at Caa1 and Tecpetrol S.A. backed senior
unsecured notes' rating at Caa1. The outlook was changed to stable
from negative.

Tecpetrol Internacional 's Caa1 rating reflects its geographic
diversification, with oil and gas assets and operations mainly in
Argentina, Peru, Mexico, Colombia, Bolivia and Ecuador, and its low
financial leverage, solid operating cash flow and strong management
profile. The rating also incorporates the strength and support of
its ultimate shareholder, the Techint Group. These factors are
counterbalanced by the high balance of company's operations in
Argentina (62% of oil and gas production as of the last twelve
months ended June 2020) and exposure to Argentina's uncertain
energy policy and regulatory environment. Tecpetrol S.A.'s
outstanding senior unsecured notes' Caa1 rating mirrors the rating
and outlook of its owner and guarantor, Tecpetrol Internacional.

Tecpetrol Internacional's stable outlook reflects the company's
solid credit metrics for its rating category and good liquidity
profile. The company's creditworthiness cannot be completely
de-linked from the credit quality of the Argentine government,
where it generates the bulk of its revenues, and thus its ratings
and outlook also incorporate the risks that it shares with the
sovereign.

Telecom Argentina S.A.

Lead Analyst: Marcos Schmidt

Person Approving Credit Rating: Marianna Waltz

Moody's affirmed Telecom Argentina S.A. (Telecom Argentina)'s CFR
and senior unsecured notes' ratings at Caa3. The outlook was
changed to stable from negative.

Telecom Argentina's Caa3 ratings are supported by the company's (1)
market position as the largest integrated telecom operator in
Argentina, (2) its solid market share of around 37% in cable TV,
54% in broadband, 50% in fixed telephony and 33% in mobile
services; and (3) Solid financial metrics for its rating category.
The company has low leverage, driven by its strong cash flow from
operations. The ratings are mainly constrained by (1) tight
regulatory oversight of Argentina's telecom industry, which poses
operating risks, (2) concentration of operations in Argentina
(Government of Argentina, Ca stable), (3) foreign-currency
financing risk, because the company generates most of its revenue
in Argentine pesos, and (4) expected negative free cash flow (FCF)
generation through 2021.

The stable outlook of Telecom mirrors the stable outlook on
Argentina's sovereign rating. The company's creditworthiness cannot
be completely de-linked from the credit quality of the Argentine
government, where it generates the bulk of its revenues, and thus
its ratings and outlook also incorporate the risks that it shares
with the sovereign.

YPF Sociedad Anonima

Lead Analyst: Martina Gallardo Barreyro

Person Approving Credit Rating: Marianna Waltz

Moody's affirmed YPF Sociedad Anonima's (YPF) Issuer Rating and
senior unsecured notes' rating at Caa3. Moody's also affirmed YPF's
MTN program's rating at (P)Caa3. YPF's Baseline Credit Assessment
(BCA) has been affirmed at caa3. The outlook was changed to stable
from negative.

YPF's Caa3 ratings reflect the company's (1) large oil and gas
production and its reserve size; (2) good cash generation and
credit metrics for its rating category; (3) status as the largest
industrial corporate and energy company in the domestic market; and
(4) links with the Government of Argentina, its controlling
shareholder, which combine YPF's underlying caa3 BCA, which
expresses a company's intrinsic credit risk, and its view of
moderate support from and high dependence on the Argentine
government. The ratings are mainly constrained by YPF's (1)
concentration of operations in Argentina, (2) a moderate-to-high
foreign-currency risk given that most of the company's debt is
denominated in foreign currency, (3) its portfolio of majority
mature producing fields, and (4) its rigid labor cost structure.
Also, the new and more restrictive capital controls imposed by the
Argentina's Central Bank (BCRA) from October 2020 through March
2021 heighten YPF's refinancing risk. The company has a total
amount of $1.984 million in debt maturing in the next 12 months as
of June 2020; the largest maturity are the $413 million remaining
of $1 billion senior unsecured notes due in March 2021.

The stable outlook reflects Moody's belief that YPF's main
shareholder, the Argentine State, i) will exert no influence over
the company to spend in capital expenditures or dividends beyond
its operating cash flow generation capacity and ii) has incentives
to maintain prices of crude and oil products at a level that makes
it economically attractive for oil companies to invest to increase
production and reduce the country's dependence on imports of oil
products and natural gas. YPF's creditworthiness cannot be
completely de-linked from the credit quality of the Argentine
government, and thus its ratings also incorporate the risks that it
shares with the sovereign. Also, the stable outlook reflects its
view that possible losses for senior unsecured creditors will not
be greater than those associated with a Caa3 rating.

COMPANIES PROFILE

Headquartered in Cordoba, Argentina, Arcor S.A.I.C. (Arcor) is one
of the largest food companies in the country, with around ARS129.4
billion (around $2,202 million) in sales for the 12 months ended in
June 2020. Arcor is focused on three business divisions: consumer
food products (confectionary, chocolates, ice cream, cookies,
crackers, snacks, cereals and food), agribusiness and packaging.
The company has a presence in 120 countries and has more than 40
plants in Latin America and a total of around 20,000 employees.

Pan American Energy, S.L. (PAE) is a privately-owned energy
company. The company is mainly involved in the exploitation of oil
and natural gas reserves in Argentina (91% of total proved
reserves), Bolivia (6%) and Mexico (3%). PAE is Argentina's
second-largest oil and gas company by volume. Additionally, from
April 2018, PAE incorporated downstream operations through its
integration with Axion Energy Argentina S.A. (Axion), becoming the
largest privately-owned integrated energy company operating in
Argentina. PAE owns PAE Argentine branch, which accounts for around
70% of its total production and 80% of proved reserves.

Raghsa S.A. (Raghsa) is a family-owned, fully integrated developer
in Argentina. The company has been engaged in the construction,
development, ownership and leasing of premium office, commercial
and residential buildings for more than 50 years. Mainly located in
the City of Buenos Aires, Raghsa owns five office buildings,
accounting for around 135,000 square meters (m2) of leasable area,
including Raghsa's latest project, the office building Centro
Empresarial Libertador, which has recently opened for business. As
of May 31, 2020, Raghsa reported total assets of ARS65.4 billion
(around USD 999 million).

Tecpetrol Internacional S.L.U. is a private holding company based
in Spain, with oil and gas operations exclusively in Latin America.
The company's assets include, among others, the shares of Tecpetrol
S.A., Tecpetrol Colombia S.A., Tecpetrol Bolivia S.A., Suizum
S.L.U., Tecpetrol Operaciones S.A. de C.V., Pardaliservices S.A.,
TecpAndina LLC and TecpEcuador S.A. The company carries out oil and
gas exploration and production (E&P) mainly in Argentina, Peru,
Ecuador, Colombia, Bolivia and Mexico. In addition, it has a gas
transportation and distribution business in Argentina and Mexico,
along with an electricity generation plant in Mexico.

Headquartered in Buenos Aires, Argentina, Telecom Argentina S.A. is
one of the three major telecommunications service providers in
Argentina. The company offers mobile, broadband, fixed and pay-TV
services to the residential, corporate and government sectors, and
is one of the largest private-sector companies in the country. For
the last twelve months ended in June 2020 Telecom's revenue and
adjusted EBITDA were ARS232,910 million and ARS89,324 million,
respectively.

Headquartered in Buenos Aires, Argentina, YPF Sociedad Anonima
(YPF) is an integrated energy company with operations concentrated
in the exploration, development and production of crude oil,
natural gas and liquefied petroleum gas, and downstream operations
engaged in refining, chemicals production, retail marketing,
transportation and distribution of oil and petroleum products. The
company is 51% owned by the Argentine Estate and had revenues of
USD 11.5 billion in the last twelve months as of June 2020 and
total assets of USD 23.8 billion as of June 30, 2020.


[*] Moody's Affirms Ratings on Argentine Financial Institutions
---------------------------------------------------------------
Moody's Investors Service affirmed all ratings and assessments
assigned to Banco de Galicia y Buenos Aires S.A.U. (Galicia), Banco
Hipotecario S.A. (Hipotecario), Banco Macro S.A. (Macro) and Banco
Santander Rio S.A. (Santander Rio). The ratings assigned to Tarjeta
Naranja S.A. (Naranja) were also affirmed. At the same time,
Moody's assigned counterparty risk ratings to Galicia, Hipotecario,
Macro and Santander Rio. The outlook on all ratings was changed to
stable from negative.

The rating actions follow the announcement by Moody's Investors
Service, published on September 28, 2020, that it had affirmed the
Ca ratings of Argentina's government bond rating and changed the
outlook to stable from negative.

Moody's Counterparty Risk Ratings (CRR) are opinions of the ability
of entities to honor the uncollateralized portion of non-debt
counterparty financial liabilities (CRR liabilities) and also
reflect the expected financial losses in the event such liabilities
are not honored. CRR liabilities typically relate to transactions
with unrelated parties. Examples of CRR liabilities include the
uncollateralized portion of payables arising from derivatives
transactions and the uncollateralized portion of liabilities under
sale and repurchase agreements. CRRs are not applicable to funding
commitments or other obligations associated with covered bonds,
letters of credit, guarantees, servicer and trustee obligations,
and other similar obligations that arise from a bank performing its
essential operating functions.

RATINGS RATIONALE

The rating action on these issuers was prompted by a similar action
on Argentina's government bond rating, which was affirmed at Ca and
had its outlook changed to stable, from negative. Moody's decision
to change the outlook on the sovereign rating reflects a materially
lower risk that future losses will exceed those implicitly
incorporated in Argentina's current Ca rating in the aftermath of
the recent debt restructuring. In affirming the sovereign ratings,
Moody's mentioned the elevated credit risks that remain present
unless the authorities address the fundamental macroeconomic
problems that continue to undermine the sovereign credit profile,
raising questions about Argentina's capacity to meet future debt
obligations which are set to rise sharply after 2024.

Moody's affirmation, at ca, of Galicia, Hipotecario, Macro and
Santander Rio's BCAs, in line with Argentina's government debt
rating, reflect the assessment of a high correlation between the
sovereign and the banks' standalone creditworthiness. The adjusted
BCA of Santander Rio was affirmed at caa3 and continues to
incorporate one notch of uplift from the bank's respective BCA,
indicating Moody's assessment of the likelihood that the
Argentinean subsidiary would receive support from its parent bank
Banco Santander S.A. (Spain) (A2/A2 Stable, baa1) in the event of
stress.

The banks' foreign currency deposit and debt ratings were affirmed
at ca. The foreign currency ratings reflect potential transfer and
convertibility risks, which could include restrictions on moving
foreign exchange offshore, as well as restrictions on freely
converting local currency to foreign currency in order to pay debt,
or even deposit freezes. Some of these risks have materialized
recently as the Argentinean Central Bank introduced measures that
restrict the ability of private companies -including financial
institutions- to pay both local and cross-border foreign currency
debt.

The affirmation of the banks' local currency deposit ratings, at
Caa1 for Santander Rio, Caa2 for Galicia and Macro, and Caa3 for
Hipotecario, and the Caa2 corporate family rating of Naranja
reflects its view that the credit risk of the entities' local
currency obligations, though still significant, is lower than that
of their foreign currency obligations. Still, the banks' exposures
to Argentinean sovereign risk remain significant and are the main
drivers for the Caa-range local currency ratings. The linkages are
driven by banks' sizable holdings of central bank debt, and their
exposure to an increasingly challenging operating environment in
Argentina. The latter imposes rising risks on entities' asset
quality and profitability as business volumes remain low, companies
and households' repayment capacity weaken in the context of
continued economic recession, high inflation and rising
unemployment, all exacerbated by the impact of the coronavirus
pandemic.

Partly offsetting the risks, Argentinean banks currently have
sizeable liquidity, which represents about half of their assets,
while contained loan growth in recent years helps preserve their
capital buffers. Additionally, Galicia, Macro and Santander Rio
have limited exposure to foreign currency funding risk and their
overall dependence on market funding is low, as their funding is
mainly sourced from local currency deposits.

Banco Hipotecario, on the other hand, has a higher reliance on
market funds and a weaker asset quality profile, which drives its
Caa3 local currency rating. Risks on Hipotecario's funding profile
have materialized recently as the bank has engaged in an exchange
offer for a foreign-currency cross-border debt that is due November
2020.

The newly assigned CRRs incorporate one notch of uplift from the
banks' adjusted BCAs -subject to country ceilings- to reflect the
lower probability of default of CRR liabilities. In Moody's view,
secured counterparties to banks typically benefit from greater
protections under insolvency laws and bank resolution regimes than
do senior unsecured creditors, and this benefit is likely to extend
to the unsecured portion of such secured transactions in most bank
resolution regimes.

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

A rating upgrade of the Argentinean financial institutions could
occur if the sovereign ratings were upgraded, provided that the
entities' main credit metrics remain stable or gradually improve.

A downgrade could be driven by a downgrade of the Argentinean
sovereign ratings, by further deterioration in the country's
operating environment, and/or a higher-than-expected deterioration
of the financial institutions' asset quality, which could lead to
material decline in profitability levels, and thus, capital ratios,
reducing their loss-absorption capacity amidst a highly negative
credit cycle.

METHODOLOGIES

The principal methodology used in rating Banco Macro S.A., Banco
Hipotecario S.A., Banco de Galicia y Buenos Aires S.A.U., and Banco
Santander Rio S.A. was Banks Methodology published in November
2019.

Issuer: Banco de Galicia y Buenos Aires S.A.U.

* Affirmations:

   Adjusted Baseline Credit Assessment, Affirmed at ca

   Baseline Credit Assessment, Affirmed at ca

   LT Counterparty Risk Assessment, Affirmed at Caa2(cr)

   LT Bank Deposits (Foreign Currency), Affirmed at Ca, Stable
   from Negative

   LT Bank Deposits (Local Currency), Affirmed at Caa2, Stable
   from Negative

   ST Counterparty Risk Assessment, Affirmed at NP(cr)

   ST Bank Deposits (Foreign Currency), Affirmed at NP

   ST Bank Deposits (Local Currency), Affirmed at NP

   LT Subordinated Debt (Foreign Currency), Affirmed at Ca

   LT Senior Unsecured MTN Program (Foreign Currency), Affirmed at

   (P)Ca

   LT Senior Unsecured MTN Program (Local Currency), Affirmed at
   (P)Caa2

* New assignments:

   LT Counterparty Risk Rating (Local Currency), Assigned Caa2

   LT Counterparty Risk Rating (Foreign Currency), Assigned Caa3

   ST Counterparty Risk Rating (Local Currency), Assigned NP

   ST Counterparty Risk Rating (Foreign Currency), Assigned NP

Outlook Actions:

Issuer: Banco de Galicia y Buenos Aires S.A.U.

  Outlook, Changed To Stable From Negative

Issuer: Banco Hipotecario S.A.

  * Affirmations:

    Adjusted Baseline Credit Assessment, Affirmed at ca

    Baseline Credit Assessment, Affirmed at ca

    LT Counterparty Risk Assessment, Affirmed at Caa3(cr)

    LT Bank Deposits (Foreign Currency), Affirmed at Ca, Stable
    from Negative

    LT Bank Deposits (Local Currency), Affirmed at Caa3, Stable
    from Negative

    ST Counterparty Risk Assessment, Affirmed at NP(cr)

    ST Bank Deposits (Foreign Currency), Affirmed at NP

    ST Bank Deposits (Local Currency), Affirmed at NP

    LT Senior Unsecured Debt (Foreign Currency), Affirmed at Ca,
    Stable from Negative

    LT Senior Unsecured Debt (Foreign Currency) Series 4 proposed
    senior notes issuance, Affirmed at (P)Ca

  * New assignments:

    LT Counterparty Risk Rating (Local Currency), Assigned Caa3

    LT Counterparty Risk Rating (Foreign Currency), Assigned Caa3

    ST Counterparty Risk Rating (Local Currency), Assigned NP

    ST Counterparty Risk Rating (Foreign Currency), Assigned NP

Outlook Actions:

Issuer: Banco Hipotecario S.A.

  Outlook, Changed To Stable From Negative

Issuer: Banco Macro S.A.

* Affirmations:

   Adjusted Baseline Credit Assessment, Affirmed at ca

   Baseline Credit Assessment, Affirmed at ca

   LT Counterparty Risk Assessment, Affirmed at Caa2(cr)

   LT Bank Deposits (Foreign Currency), Affirmed at Ca, Stable
   from Negative

   LT Bank Deposits (Local Currency), Affirmed at Caa2, Stable
   from Negative

   ST Counterparty Risk Assessment, Affirmed at NP(cr)

   ST Bank Deposits (Foreign Currency), Affirmed at NP

   ST Bank Deposits (Local Currency), Affirmed at NP

   LT Subordinated Debt (Foreign Currency), Affirmed at Ca

   LT Senior Unsecured Debt (Foreign Currency), Affirmed at Ca,
   Stable from Negative

   LT Senior Unsecured MTN Program (Foreign Currency), Affirmed
   at (P)Ca

   LT Senior Unsecured MTN Program (Local Currency), Affirmed at
   (P)Caa2

   * New assignments:

   LT Counterparty Risk Rating (Local Currency), Assigned Caa2

   LT Counterparty Risk Rating (Foreign Currency), Assigned Caa3

   ST Counterparty Risk Rating (Local Currency), Assigned NP

   ST Counterparty Risk Rating (Foreign Currency), Assigned NP

Outlook Actions:

Issuer: Banco Macro S.A.

  Outlook, Changed To Stable From Negative

Issuer: Banco Santander Rio S.A.

* Affirmations:

   Adjusted Baseline Credit Assessment, Affirmed at caa3

   Baseline Credit Assessment, Affirmed at ca

   LT Counterparty Risk Assessment, Affirmed at Caa1(cr)

   LT Bank Deposits (Foreign Currency), Affirmed at Ca, Stable  
   from Negative

   LT Bank Deposits (Local Currency), Affirmed at Caa1, Stable
   from Negative

   ST Counterparty Risk Assessment, Affirmed at NP(cr)

   ST Bank Deposits (Foreign Currency), Affirmed at NP

   ST Bank Deposits (Local Currency), Affirmed at NP

* New assignments:

   LT Counterparty Risk Rating (Local Currency), Assigned Caa1

   LT Counterparty Risk Rating (Foreign Currency), Assigned Caa3

   ST Counterparty Risk Rating (Local Currency), Assigned NP

   ST Counterparty Risk Rating (Foreign Currency), Assigned NP

Outlook Actions:

Issuer: Banco Santander Rio S.A.

  Outlook, Changed To Stable From Negative

Issuer: Tarjeta Naranja S.A.

* Affirmations:

   LT Senior Unsecured Debt (Foreign Currency), Affirmed at Ca

   LT Corporate Family Rating, Affirmed at Caa2

Outlook Actions:

Issuer: Tarjeta Naranja S.A.

  Outlook, Changed To Stable From Negative




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

BRAZIL: To Uphold MSMEs Financial Sustainability During Crisis
--------------------------------------------------------------
Brazil will uphold the short-term financial sustainability and
promote the economic recovery of micro, small and medium-sized
enterprises (MSMEs) to support employment and tackle the COVID-19
crisis with a $750 million loan from the Inter-American Development
Bank (IDB).

The project takes a multisector approach through productive
financing with disbursements based on demand of credit lines that
are expected to benefit more than 11,000 MSMEs affected by the
crisis.

The program's resources will be used by Brazil's development bank,
the Banco Nacional de Desenvolvimento Economico e Social (BNDES) to
deliver financing to MSMEs through a network of accredited
financial institutions to make up for the scarcity of short-term
capital, overcome temporary liquidity problems, and provide
continuity to their operations. They will also foster productive
investment recovery and acquisition of production-oriented assets
such as machinery, equipment, vehicles, and goods and services for
production.

According to a recent survey on the COVID-19 impact on small
businesses, 88.9 percent of Brazilian entrepreneurs have reported
drops in revenue - of 69 percent on average - compared to a normal
week. In addition, 58.9 percent said they had temporarily shut
down, and nearly 68.1 percent said they needed financing to
continue operating without downsizing staff.

In this context, this financing is an essential factor to help
boost the chances of those MSMEs with a competitive advantage to
enter, consolidate their position, and remain in the market. It can
also help them narrow productivity gaps by making available
resources that they can use to modernize production and reach out
to new markets. Another program goal is to ensure the survival of
MSMEs in a context of adverse shocks, particularly amid tightening
credit in times of crisis.

In safeguarding Brazil's productive fabric from the economic
hardships associated with the pandemic, the challenge will be to
keep open as many as possible of the MSMEs that were commercially
viable before the crisis, while supporting the recovery of those
that can continue operating normally through financing for
production-oriented investments.

The $750 million IDB loan is for a 25-year term, a grace period of
five and a half years and an interest rate based on LIBOR and has a
local counterpart of $150 million.

                              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.


BRK AMBIENTAL: Moody's Rates BRL1.1-Bil. Debt 'Ba2/Aa3.br'
----------------------------------------------------------
Moody's America Latina Ltda. assigned Ba2/Aa3.br (respectively, in
global and Brazil's national scale) to BRK Ambiental Participacoes
S.A.'s new debenture issuance of BRL1.1 billion (8th issuance). At
the same time, Moody's upgraded BRK's corporate family rating to
Aa2.br from Aa3.br in the national scale. The outlook is stable.

BRK is planning its 8th debenture issuance, totaling BRL1.1 billion
(two series) senior unsecured non-convertibles. The proceeds will
be used to refinance all the holdco's outstanding debt, investments
and working capital needs. The first series of the debentures have
a 5-year tenor from the issuance date (due in 2025), with two
principal payments in the last years of maturity (2024/25) while
interest is paid semi-annually starting in March 2021. The second
series have a 14-year tenor from the issuance date (due in 2034),
with four principal payments in the last years of maturity
(2031/32/33/34) while interest is paid semi-annually starting in
March 2021. The debentures have standard acceleration clauses
including cross default provisions with other outstanding debt from
the company and also with relevant opcos, change in control,
bankruptcy and a financial covenant of total debt at the holding
level of Net Debt to EBITDA below or equal 6.50x gradually
decreasing to 4.50x during the debenture's tenor.

The assigned ratings are based on preliminary documentation.
Moody's does not anticipate changes in the main conditions that the
debentures will carry. Should issuance conditions and/or final
documentation deviate from the original ones submitted and reviewed
by the rating agency, Moody's will assess the impact that these
differences may have on the ratings and act accordingly.

RATINGS RATIONALE

The Ba2/Aa3.br ratings assigned to the new debenture issuance
incorporate BRK's credit quality while as a holding company, BRK
largely depends on the regular dividends up-streamed by its
operating subsidiaries to meet its obligations, equity investment
commitments and potential cash requirements related to its
guarantees. Therefore, the debenture's ratings are supported by the
relative low indebtedness at the holding compared to its operations
combined with a strong coverage of cash available to service the
debt as well as the somewhat diversified portfolio in a sector with
relatively stable and predictable cash flows.

At the same time, the upgrade of BRK's CFR in the national scale to
Aa2.br from Aa3.br reflects its view of the operational improvement
achieved in the last three years since Brookfield's (Brookfield
Asset Management Inc., Baa1 stable) acquisition as well as improved
governance and processes in spite of still high leverage. The
action also reflects the consolidation of the mature assets under
BRK Ambiental which will further reduce leverage and improve credit
metrics while adding up to BRL 590mn to the consolidated cash
position. The Aa2.br is also reflective of the company's
positioning relative to the local peers.

BRK's ratings incorporate the company's solid business profile with
a diversified customer base and good revenue visibility through low
demand elasticity and long-term contracts. Also, the long- dated
debt maturity profile, access to debt markets, and commitment from
the company's shareholder to retain dividend payments over the next
five years support the ratings. Fitch views favorably the evidence
of support from Brookfield, the ultimate shareholder, as the
company embarks in a multi-year investment cycle. BRK Ambiental
still has high leverage, as shown in FFO/net debt of 7.9% and a
significant portion of projects in ramp-up phase which Fitch
expects will continue to drive high capex needs and negative free
cash flow.

The stable outlook takes into consideration that the company will
prudently manage its leverage in line with the current credit
quality and maintain discipline in its financial policy. The
outlook relates to Moody's expectation that BRK will continue to
improve its operating performance while deleveraging. Fitch expects
BRK to implement its capital spending plan with minimal cost
overruns while maintaining adequate liquidity to support investment
requirements and debt service. The stable outlook also incorporates
Brookfield's committed capital as an additional source of liquidity
if needed.

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

The national scale ratings could be upgraded if BRK demonstrates
sustained better-than-expected operational performance or a
reduction in leverage such that its FFO interest coverage rises
above 2.5x and its FFO/net debt remains above 13% on a sustained
basis. Also, lower indebtedness at the holding level and higher
cash coverage could add positive pressure to the debenture's
national scale rating and mitigate its structural subordination
considerations. An upgrade would also require the company to
maintain a solid liquidity profile and conservative financial
policy. Its view on the shareholder's support could also pressure
the ratings, nonetheless BRK is somewhat limited to the sovereign
credit quality.

On the other hand, reduced flexibility in the holding's ability to
upstream cash from its operating subsidiaries could also result in
negative pressure on BRK's senior unsecured debt ratings if
combined with increasing proportion of debt at the holding level
compared to the consolidated such that it is above 20% or cash
availability to service the holding's debt declines significantly
on a sustained basis.

In addition, a deterioration in the company's operating performance
or significant capital spending overruns, such that FFO interest
coverage and FFO/net debt remain below 1.8x and 7%, could result in
downward pressure. Perceptions of a more aggressive financial
policy or a deterioration of Brazil's sovereign credit could also
pressure the company's credit quality as well as new investments
and acquisitions or a further increase in the already significant
capital spending plan.

BRK Ambiental is one of Brazil's largest private companies in the
sanitation sector, with 22 SPEs (including BRK Mature Assets) in
the water & sewage segment and a population served of 15 million
inhabitants. The company is present in 100 municipalities and 12
states, through 15 concessions, 6 public-private-partnerships
("PPPs") and one asset lease, with coverage rates of 96% for water
supply, 52% for sewage collection and 83% for sewage treatment. In
the LTM ended June 2020 BRK had net revenues of BRL1.4 billion (ex-
construction) and EBITDA of BRL611 million according to Moody's
adjustments.

The uncertainties around the coronavirus outbreak and the
consequent deterioration in the economic prospective, as well as
the government measures and severity of the side-effects caused by
the downturn, represent a downside risk to its projection.

The principal methodology used in these ratings was Regulated Water
Utilities published in June 2018.


SAO PAULO: Fitch Affirms 'BB-' LT IDR, Outlook Negative
-------------------------------------------------------
Fitch Ratings has affirmed the Brazilian Municipality of Sao
Paulo's Long-Term Foreign and Local Currency Issuer Default Ratings
(IDRs) at 'BB-' with a Negative Outlook and its Short-Term Foreign
and Local Currency IDR at 'B'. Additionally, Fitch has affirmed Sao
Paulo's National Long-Term Rating at 'AA(bra)' and revised the
Outlook to Stable from Negative. The National Short-Term Rating has
also been affirmed at 'F1+(bra)'.

The city's IDRs are capped by Brazil's sovereign IDR
(BB-/Negative). Fitch has assessed Sao Paulo's Standalone Credit
Profile (SCP) at 'bbb-'.

Fitch has revised the key ratings factors: (1) Expenditure
adjustability to Weaker from Midrange and (2) Liabilities and
Liquidity Flexibility to Midrange from Weaker. With this, the risk
profile remains low midrange and Standalone Credit Profile (SCP)
remains in the 'bbb' category.

KEY RATING DRIVERS

Risk Profile Assessment: Low Midrange

There is a combination of four midrange and two weaker assessments
for the risk factors, which in combination with the sovereign
rating of 'BB-' resulted in a low midrange risk profile assessment.
The majority of Brazilian local and regional government (LRG) has a
weaker risk profile assessment.

Revenue Robustness: Midrange

Sao Paulo presents revenue growth expected to be marginally
positive and has posted a history of fairly stable operating
revenue growth. Sao Paulo is moderately dependent on transfers from
upper government tiers. Proprietary tax revenues corresponded to
almost 57% of operating revenues in 2019, slightly higher than
previous years. The Municipality of Sao Paulo is the most
economically important municipality in Brazil.

Revenue Adjustability: Weaker

The municipality presents some tax autonomy, which reflects a
satisfactory level for revenue increase in response to an economic
downturn. Like other Brazilian cities, Sao Paulo has a fairly
granular tax base, in which the ten largest tax payers of the tax
on services accounted for 16% of total collections in 2019. Despite
the affordability to increase tax tariffs in light of the adequate
GDP per capita of around USD10,600, tax tariffs are close to the
constitutional limit, thus making revenue adjustment more
difficult.

Expenditure Sustainability: Midrange

Sao Paulo presents moderate control over expenditure growth given
the high percentage of committed expenditures. The municipality's
obligations are moderately countercyclical since the municipality
is engaged in providing services mostly in healthcare and
education. Pension burden is relatively lower for Sao Paulo when
compared to Brazilian states. The municipality does not present
aggressive off-loading of investments and borrowings, which also
supports the midrange assessment.

Expenditure Adjustability: Weaker

Fitch has revised this factor to Weaker from Midrange since capex
represents less than 10% of total expenditures. Brazilian local
governments suffer from a fairly rigid cost structure. As per the
Brazilian Constitution, there is low affordability of expenditure
reduction especially in salaries. As a result, whenever there is an
unpredictable reduction in revenues, operating expenditure does not
follow automatically. In addition, there is high share of
inflexible costs since there is more than 90% share of mandatory
and committed expenditures.

Liabilities and Liquidity Robustness: Midrange

There is a moderate national framework for debt and liquidity
management since there are prudential borrowing limits and
restrictions on loan types. As per the Fiscal Responsibility Law of
2000, Brazilian cities cannot have debt levels higher 1.2x their
net current revenues, as calculated by the National Government, and
Sao Paulo is in compliance with this ratio (0.55x for 2019).

As of December 2019, external debt totaled BRL339 million,
corresponding to 1.2% of total debt with no significant maturity
concentration. Debt directly owed to the Federal Government should
represent around 95% of total debt in 2020. There is low
off-balance sheet risk stemming from the pension system for Sao
Paulo when compared to Brazilian States; the pension actuarial
deficit corresponded to the equivalent to 2.6 years the
municipality's operating revenues in 2019.

Liabilities and Liquidity Flexibility: Midrange

Fitch has revised this factor to Midrange from Weaker, as the City
of Sao Paulo has satisfactory liquidity levels since reported
short-term financial obligations represent less than 75% of free
cash positions, as calculated by the Brazilian national treasury
(CAPAG liquidity ratio). Alternatively, there is a framework of
providing emergency liquidity support from the federal government
via the granting of extended maturities over the prevalent federal
debt portion.

Debt Sustainability: 'aa' category

Fitch assesses Sao Paulo's debt sustainability at 'aa', which is
negatively affected by a weaker debt service coverage ratio, a
secondary debt metric, which scored 'bbb' in 2024. Fitch's rating
case forward-looking scenario indicates a payback ratio (net direct
risk to operating balance), which is the primary metric of debt
sustainability assessment; to reach levels lower than 5x, which is
much lower than historical average considering the improved
operating balance and the drastic reduction in debt levels verified
since 2016 given the change in index applicable to the prevalent
federal debt portion the city carries.

This corroborates with the 'aa' assessment. Fitch expects under its
rating case scenario debt service coverage (operating balance/debt
service, including short-term debt maturities) to be between 1.2x
and 1.5x.

DERIVATION SUMMARY

Fitch assesses Sao Paulo's SCP at 'bbb-', which results from a 'Low
Midrange' risk profile and 'aa' debt sustainability assessment. The
SCP factors in the city's comparison with international and
national peers in the same rating category. Sao Paulo's IDRs are
not affected by any asymmetric risk or extraordinary support from
the Brazilian state.

Fitch classifies Sao Paulo -- like all other Brazilian LRGs -- as
type B, as it covers debt service from its cash flow on an annual
basis.

KEY ASSUMPTIONS

Fitch's rating case scenario is a through-the-cycle scenario, which
incorporates a combination of revenue, cost and financial risk
stresses. It is based on the 2015-2019 figures and 2020-2024
projected ratios. The key assumptions for the scenario include:

  - Income tax and fees, fines and other operating revenues linked
to inflation;

  - Transfers linked to nominal GDP growth;

  - Operating expenditures also linked to inflation;

  - Long-term debt increase based on estimates of new credits --
Fitch is considering BRL 1.9 billion of new debt until 2024;

  - Cost of debt based on increase of historical average cost of
debt;

  - Capex: overall results adjusted to capex, assuming that the
city would invest the remaining overall result.

RATING SENSITIVITIES

Municipality of Sao Paulo's IDRs are capped by the sovereign
rating. Any rating actions affecting Brazil (BB-/Negative) would
result in a similar action for Sao Paulo.

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

  -- An upgrade of Brazil's IDRs could positively affect
Municipality of Sao Paulo's IDRs.

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

  -- City of Sao Paulo's IDRs and SCP could be downgraded if its
operating balance deteriorates, triggering an enhanced payback
ratio higher than 9x and actual DSCR lower than 2x in Fitch's
forward-looking scenario.

SUMMARY OF FINANCIAL ADJUSTMENTS

Fitch-adjusted debt includes an adjustment made on restricted cash
from 2015 to 2019 as reported by the Municipality on Relatorio de
Gestao Fiscal (RGF) as 'caixa vinculado'.

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

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.




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

DOMINICAN REPUBLIC: Half of Largest Power Plant Goes Off Line
-------------------------------------------------------------
Dominican Today report that unit 1 of the Punta Catalina Power
Plant has been out of service due to "serious technical failures",
a situation that will last six days and will increase the current
generation deficit affecting the country.

Serafín Canario de la Rosa, administrator of the country's largest
power plant, told the press that the plant went off line at 1:15
a.m., Sept. 27, according to Dominican Today.

"Serious technical failures disabled the operation of the air
quality control system of said unit," the Energy and Mines Ministry
said in a statement, the report notes.

                        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.  Luis
Rodolfo Abinader Corona is the current president of the nation.

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

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

Standard & Poor's credit rating for Dominican Republic stands at
BB- with negative outlook (April 2020). Moody's credit rating for
Dominican Republic was last set at Ba3 with stable outlook (July
2017). Fitch's credit rating for Dominican Republic was last
reported at BB- with negative outlook (May 8, 2020).


DOMINICAN REPUBLIC: US$17.6-Bil. Budget for 2021 is 59.3% of GDP
----------------------------------------------------------------
Dominican Today reports that Dominican Republic's Council of
Ministers approved in its third meeting, the General State Budget
for 2021, of RD$1.04 trillion (US$17.6 billion).

Finance Minister Jochi Vicente said the Government foresees RD$746
billion in income, while spending would be RD$891 billion,
according to Dominican Today.

He said the non-financial public sector debt projected in the
budget is 59.3% of the Gross Domestic Product (GDP), the report
notes.

"We qualify this budget as a budget of shared effort, because we
are making adjustments within certain ministries, both in the
quality of spending, as well as to create space and to achieve
goals," the report relays.

                        About Dominican Republic

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

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
===========

OFFSHORE DRILLING: Fitch Cuts LT IDRs to 'RD' on Missed Payment
---------------------------------------------------------------
Fitch Ratings has downgraded Offshore Drilling Holding, S.A.'s
(ODH) Long-Term Foreign and Local Currency Issuer Default Ratings
(IDRs) to 'RD' from 'C'.

The IDR downgrade follows ODH's missed payment of principal and
interest on its senior secured notes due Sept. 20, 2020. There is
no cure period for repayment of principal.

ODH has recently engaged in negotiation with its bondholders'
representatives regarding a potential restructuring of the
company's capital structure, as disclosed on Aug. 11, 2020. The
company received a proposal for potential restructuring from
noteholders on July 21, 2020, which was countered with revised
terms.

Should the company reach an agreement with bondholders, Fitch will
revise ODH's IDRs to a level that is consistent with the company's
post-exchange capital structure and risk profile, which would
likely be within a low speculative rating range. Upon completion,
any remaining existing bonds will likely be upgraded to levels
below the new notes, due to lower levels of credit protection and
priority.

KEY RATING DRIVERS

Impaired Business Position: ODH's cash flow generation has been
severely affected by the culmination of the contracts for its
drilling rigs and the company's limited ability to enter into new
contracts resulting from the downturn in the oil and gas industry
and deep-water exploration. Two of the company's drilling rigs are
uncontracted and non-operating.

Material Haircut Proposed: ODH's counter proposal indicates a
potential sharp cut to the terms of ODH's notes, resulting in low
recovery prospects. The terms of ODH's proposal indicate 31.5%
recovery for the notes exchanged to new secured notes due 2024 and
2027. The initial proposal by ODH's noteholders also suggested a
similar level of steep haircut, indicating a 50% recovery for the
notes.

DERIVATION SUMMARY

ODH's business risk is similar with peers in the deteriorated
drilling services environment such as Precision Drilling
Corporation (B+/Negative) and China-based Anton Oilfield Services
Group (B/Stable).

ODH is rated multiple notches below Precision as Precision has a
leading market share in Canada with approximately 31% of active
rigs in key Canadian basins, and Fitch estimates it has the
fourth-largest market share in the U.S. Fitch expects Precision to
continue generating FCF leading to its leverage ratio rising
materially due to much lower EBITDA as a result of its operations
concentration in the North American market, where drilling activity
has dropped more significantly.

Anton is also rated multiple notches above ODH. Anton's EBITDA
decline will be limited due to its resilient Chinese operations.
Leverage is expected to rise, but it will remain below downgrade
trigger.

KEY ASSUMPTIONS

  -- Negative FCF generation to remain uncurbed due to high costs,
interest expenses and capex, amid falling EBITDA;

  -- Cash balance depletion absence of debt restructuring.

RATING SENSITIVITIES

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

  -- The company could be downgraded to 'D' should it file for
bankruptcy protection.

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

  -- A ratings upgrade is considered unlikely prior to the
potential restructuring.

LIQUIDITY AND DEBT STRUCTURE

Under ODH's recent proposal, noteholders would exchange up to USD50
million of the senior secured notes due in 2020 at par for a 5%
coupon first-lien note maturing in 2024, and up to USD897.7 million
of the 2020 notes for USD250 million for a 7.5% coupon second-lien
notes maturing in 2027. Additionally, ODH will issue USD30 million
of the first-lien notes in exchange for new money to be exchanged
for three tranches of USD10 million each.

Both offers should be issued by a new subsidiary, Grupo R Offshore
(GRO). The new subsidiary will receive Muralla IV, Bicentenario and
Centenario, as well as a floating charge over all other GRO assets
as collateral.

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

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.




=====================
P U E R T O   R I C O
=====================

CARIBBEAN TRADING: Hires Estrella LLC as Counsel
------------------------------------------------
Caribbean Trading Company, Inc., seeks authority from the U.S.
Bankruptcy Court for the District of Puerto Rico to employ
Estrella, LLC, as counsel to the Debtor.

Caribbean Trading requires Estrella LLC to represent and provide
legal services to the Debtor in the Chapter 11 bankruptcy
proceedings.

Estrella LLC will be paid at these hourly rates:

     Attorneys                $275 to $350
     Associates               $200 to $250
     Paralegals                  $100

Estrella LLC will be paid a retainer in the amount of $8,000.

Estrella LLC will also be reimbursed for reasonable out-of-pocket
expenses incurred.

Carlos Infante, partner of Estrella, LLC, assured the Court that
the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and does not represent
anyinterest adverse to the Debtor and its estates.

Estrella LLC can be reached at:

     Carlos Infante, Esq.
     ESTRELLA, LLC
     405 Juan Rodriguez St.
     Mirador del Parque 303-2
     San Juan, PR 00918
     Tel: (787) 930-3707
     E-mail: infantec@gmail.com

                 About Caribbean Trading Company

Caribbean Trading Company, Inc., is a Puerto Rico-based company
which provides unique art, souvenirs, gift baskets, corporate
incentive gifts and promotional products.

Caribbean Trading Company sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.P.R. Case No. 20-03479) on Aug. 31,
2020.

At the time of the filing, the Debtor had estimated assets of less
than $50,000 and liabilities of between $100,001 and $500,000.

Estrella LLC is the Debtor's legal counsel.


ORGANIC POWER: Asks to Defer Plan Deadline Until Oct. 29
--------------------------------------------------------
Organic Power, LLC, filed a motion for an extension of time it must
file a bankruptcy plan and disclosure statement.

One of the main issues in Debtor's bankruptcy is the licensing
aspect. The processes regarding OP's licensing have had some
setbacks due to the ongoing COVID-19 pandemic.  The relevant
government agencies have been closed and/or are operating at a
much-reduced capacity and Debtor has been unable to continue the
licensing process even though it has tried to do so.

Organic Power thus asks the Court to give it 90 days, or until
October 29, 2020, to submit its Disclosure Statement and
Reorganization Plan.

                         About Organic Power

Organic Power LLC -- https://prrenewables.com/ -- is a supplier of
renewable energy and a provider of environmentally sustainable food
waste recycling services based in Puerto Rico. It offers food
processing companies, restaurants, pharmaceuticals and retail
outlets an alternative to landfill disposal.

Organic Power sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D. P.R. Case No. 19-01789) on April 1, 2019. At the
time of the filing, the Debtor estimated assets and estimated
liabilities of between $10 million and $50 million.

Aimee I. Lopez Pabon, Esq. of Godreau & Gonzalez LLC, has been
tapped as counsel for the Debtor.




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

ANCAP: S&P Affirms 'BB+' Ratings
--------------------------------
S&P Global Ratings, on Sept. 28, 2020, affirmed the 'BB+' ratings
on Uruguay-based state-owned refining company, Administracion
Nacional de Combustibles, Alcohol y Portland (ANCAP), and revised
downwards its stand-alone credit profile (SACP) to 'b' from 'b+'.

The affirmation incorporates S&P's view that given ANCAP is a
government-owned company, there's a very high likelihood that
Uruguay (BBB/Stable/A-2) would provide timely and sufficient
extraordinary support to the company in the event of financial
distress.

The outlook remains stable as it mirrors the outlook on the
sovereign. It also incorporates S&P's view that ANCAP will be in
the position to meet all of its financial commitments in the next
12 months, which remains linked to its state-owned ownership
structure.

S&P continues to view ANCAP's operating performance as volatile
because it depends on timely fuel price increases defined by the
government to absorb oil price swings and the domestic currency
fall in value. Despite more timely fuel price increases in the past
few years, none have occurred since 2019 and aren't likely in 2020,
while ANCAP's operating costs are adjusted to inflation and the
currency has fallen sharply. Furthermore, crude oil purchases
during the first half of 2020 didn't benefit from lower oil market
prices. In addition, the 2020 financial performance is suffering
from the 12% drop in volumes in the first half of the year due to
the pandemic. S&P expects further volume drops due to an expected
lackluster summer season because a large number of tourists come
from Argentina and Brazil whose economies are also suffering from
COVID-19.

ANCAP keeps its law-protected monopoly given that it's Uruguay's
sole petroleum and refined products importer and refiner. In
addition, the law establishes a new import parity mechanism, which
is expected to go into force starting in 2021. The law also
appoints Unidad Reguladora de Servicios de Energia y Agua (URSEA)
for the calculation and establishment of the import parity formula
to determine the prices for ANCAP's products, which would be
updated every 60 days. Once implemented, S&P views this as
positive, because it solidifies ANCAP's monopolistic status, while
the new import parity would result in periodic price revisions
based on a formula, rather than relying on discretional adjustments
as in the past.

This view incorporates ANCAP's very important role in the economy
as the sole importer and refiner of crude oil in the country and
its very strong link to the government because the latter is the
company's unique shareholder with a strong influence in ANCAP's
strategy and business plans, including fuel price adjustments, debt
authorization, and tax payments. Other examples of influence
include the Ministry of Finance's role in extending a credit line
to the company from Corporacion Andina de Fomento (CAF) and the
agreement with the central bank for forward foreign exchange
trades.

Under S&P's updated scenario, debt to EBITDA peaks at around 7x in
2020 given our expectations of a sharply lower EBITDA, and slightly
improves to around 4.5x in 2021. EBITDA margin drops to around 5%
from 10%-11% in our previous projection, which results in EBITDA of
Uruguayan peso (UYU) 2.5 billion - UYU3.0 billion ($56 million -
$68 million at a rate of UYU44 per $1).



                           *********


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
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Information contained herein is obtained from sources believed to
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