/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/201009.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, October 9, 2020, Vol. 21, No. 203 Headlines B R A Z I L MINERVA SA: Fitch Hikes LT IDRs to 'BB', Outlook Stable PETRO RIO: Moody's Withdraws B2 CFR, Outlook Stable C H I L E LATAM AIRLINES: Dechert LLP Represents 6 Unsecured Claimants D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Exporters Look to Improve Business Climate DOMINICAN REPUBLIC: Won't Sell Punta Catalina Plant J A M A I C A JAMAICA: BOJ Reports Decline in Net Int'l. Reserves in September P U E R T O R I C O SPON COMPUTER: Gets Court Approval to Hire Accountant V E N E Z U E L A VENEZUELA: Electricity Industry Faces Multiple Challenges - - - - - =========== B R A Z I L =========== MINERVA SA: Fitch Hikes LT IDRs to 'BB', Outlook Stable ------------------------------------------------------- Fitch Ratings has upgraded Minerva S.A.'s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) to 'BB' from 'BB-'. Fitch has also upgraded the company's National Scale rating to 'AA(bra)' from 'A+(bra)'. The upgrades reflect Minerva's low leverage and improved business position as a result of positive FCF, capital increases and select acquisitions. The Rating Outlook is Stable. KEY RATING DRIVERS Low Net Leverage: Fitch expects Minerva's net leverage to trend toward 2.2x by year-end 2020 (3.6x YE19) due to increased EBITDA and about BRL1.4 billion of cash received from an equity offering implemented in 1Q20 and warrants exercised in 3Q20. Fitch forecasts EBITDA to increase to BRL2.3 billion in 2020 from BRL1.7 billion in 2019. The increase in EBITDA is due to improved export prices and strong export demand, notably from China, which represented about 40% of the consolidated export revenues. The company has been operating despite the disruption caused by the pandemic. Fitch expects gross leverage to be below 4x by 2021. Strong Regional Production Presence: Minerva operates solely in the beef business in South American countries and, therefore, is less diversified from a product standpoint than Brazilian-based protein company JBS S.A. (BB+). As a beef producer, Minerva is exposed to sanitary, environmental, deforestation and import restrictions risks. These factors are somewhat mitigated by the group's geographical diversification, as Minerva has operations in several countries, including Paraguay, Uruguay, Argentina, and Colombia, through its subsidiary Athena Foods. Fitch estimates that those operations will represent about 40% of Minerva's total EBITDA in 2020. Exports represented about 77% of Athena Foods' sales during the second-quarter 2020 (2Q20), of which 42% were made in Asia. Athena Listing in the US: Minerva has entered a non-binding letter of intent with a NASDAQ-listed Special Purpose Acquisition Company (SPAC), concerning a possible business combination with Athena Foods. The transaction is due to be completed by YE20. SPAC intends to pay US$200 million to Minerva for its stake in Athena and is expected to inject an additional USD100 million of cash into Athena. Minerva will retain about 77% of Athena Foods. The transaction values Athena with an enterprise value of US$1.35 billion, or 5.66x pro-forma 2021 EBITDA. Fitch expects Minerva to use cash proceeds to reduce debt and fund organic and inorganic acquisitions. The transaction will create future cash leakage due to the presence of minority interests. Good Margins: Minerva's sales and earnings are subject to periodic volatility caused by changes in input costs and protein prices due to the supply and demand dynamics of commodity meat. The company has had the highest EBITDA margin in the beef sector versus its peers over the last three years. Minerva's exports accounted for 69% of total gross revenue as of 2Q20. Minerva is among the largest producers of beef in the region, accounting for 18% of beef exports in Brazil, 43% in Paraguay, 24% in Uruguay, 12% in Argentina, and 70% in Colombia in 2Q20. Fitch expects annual EBITDA margin to remain in the 10%-11% range over the next few years. Favorable Export Demand: The USDA forecasts Brazilian beef exports to increase by about 10% in 2020, while local consumption is expected to decrease by 5%. Minerva's competitive advantages stem from favorable demand due to export markets from South America and long-term relationships with farmers, customers, and distributors. Global beef fundamentals for South American producers are expected to remain positive in the next couple of years due to strong international demand and the impact of the African swine fever (ASF). South American beef producers benefited from the reopening of several markets through the re-opening of Brazilian beef to the United States; the authorization for Colombian beef exports in Russia; the approval of Uruguayan, Paraguayan, and Colombian beef exports in Saudi Arabia; and, more recently, the opening of Thailand for Brazilian beef exports in late 2Q20. DERIVATION SUMMARY Minerva's ratings reflect its solid business profile as a pure-player in the beef industry with a large presence in South America. The ratings consider Minerva's lack of diversification across other proteins. Minerva is less diversified from a product standpoint than JBS SA. (BB+/Stable) or Tyson Foods (BBB/Negative). Minerva has developed a more export-oriented business model, whereas Marfrig Global foods S.A. (BB/Stable) has a strong presence in the U.S. domestic market through its subsidiary National Beef. About 69% of Minerva's gross revenue is derived from exports, maintaining Minerva's position as the largest beef exporter in South America, with a market share of 18% in the continent. The company has been able to maintain a stable operating margin over the years despite several challenges in 2018, 2019, and 2020. These included external factors such as truck driver strikes in Brazil in 2018, the temporary shutdown of the Chinese market for Brazilian beef producers in 2019, and the pandemic in 2020. Fitch expects protein fundamentals to remain positive for the remaining part of 2020 due to export demand as a result of the ASF virus outbreak in China, which will result in substantially more protein products directed to China. Asia represented 42% and 50% of exports from Athena Foods and Minerva's Brazilian divisions, respectively, as of 2Q20. Minerva is smaller than its peers, such as Marfrig, JBS, or Tyson. From a financial standpoint, the ratings are supported by Minerva's strong liquidity position with cash sufficient to amortize its debt through 2026 and high profitability for the sector due to exports. KEY ASSUMPTIONS -- Double-digit revenue growth due to strong prices from the exports market and devaluation of the real against the U.S. dollar -- EBITDA of about BRL2.3 billion by YE20. -- Net debt / EBITDA to reach about 2.2x by YE20. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- Sustainable positive FCF generation. -- Substantial decrease in gross and net leverage to below 3.0x and 2x, respectively, on a sustained basis. -- Increased scale, product, and geographical diversification in an investment-grade country. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- Sharp contraction of Minerva's performance. -- Gross leverage above 4.5x and net leverage above 3x on a sustainable basis. -- Multi-notch downgrade of Brazil's country ceiling. LIQUIDITY AND DEBT STRUCTURE Strong Liquidity: As of 2Q20, cash and cash equivalents totaled BRL6.8 billion and short-term debt totaled about BRL2.1 billion. Total debt was BRL12.4 billion, of which 18% was short-term debt. Minerva's cash and cash equivalents are sufficient to amortize its debt through 2026. 77% of gross debt was denominated in U.S. dollars in 2Q20. The company hedges at least 50% of the long-term FX exposure, protecting its balance sheet against the recent high exchange rate volatility. Also, Minerva has outstanding warrants that could be exercised, which could result in an additional BRL381 million of cash by YE21. 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 -- 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. Minerva has an ESG Relevance Score of 4 on Governance Structure due to ownership concentration. The shareholders' strong influence upon management could result in decisions being made to the detrimental to the company's creditors, which would have a negative impact on the credit profile and is relevant to the rating in conjunction with other factors. ESG issues are credit neutral or have only a minimal credit impact on the entity(ies), either due to their nature or the way in which they are being managed by the entity(ies). PETRO RIO: Moody's Withdraws B2 CFR, Outlook Stable --------------------------------------------------- Moody's Investors Service withdrawn Petro Rio S.A. B2 Corporate Family Rating and stable outlook. At the same time, Moody's has withdrawn PetroRio Luxembourg S.a.r.l. B2 Gtd. senior secured notes' rating and stable outlook. Withdrawals: Issuer: Petro Rio S.A. Corporate Family Rating, Withdrawn, previously rated B2 Issuer: PetroRio Luxembourg S.a.r.l. Senior Secured Notes, Withdrawn, previously rated B2 Outlook Actions: Issuer: Petro Rio S.A. Outlook, Changed to Rating Withdrawn from Stable Issuer: PetroRio Luxembourg S.a.r.l. Outlook, Changed to Rating Withdrawn from Stable RATINGS RATIONALE Moody's has decided to withdraw the ratings because the obligations are not outstanding. Petro Rio S.A. is an independent oil and natural gas production company focused on producing assets, mainly in the Campos basin, in Rio de Janeiro, Brazil. Its portfolio of assets encompasses production, development, and appraisal properties in four operating fields, both onshore and offshore. ========= C H I L E ========= LATAM AIRLINES: Dechert LLP Represents 6 Unsecured Claimants ------------------------------------------------------------ Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure, the law firm of Dechert LLP submitted a verified statement that it is representing the Official Committee of Unsecured Creditors in the Chapter 11 cases of LATAM Airlines Group S.A., et al. On Friday, June 5, 2020, the United States Trustee for Region 2 appointed the Committee pursuant to Section 1102(a) of Title 11 of the United States Code in the above-captioned jointly administered Chapter 11 cases. On June 8, 2020, the Committee selected Dechert LLP to serve as its proposed counsel. The following six members comprise the Committee: (a) AerCap Holdings N.V.; (b) Aircastle Limited; (c) The Bank of New York Mellon; (d) Lufthansa Technik Aktiengesellschaft; (e) Sindicato de Empresa de Pilotos de LATAM Airlines Group S.A.; and (f) Repsol, S.A. On June 12, 2020, former Committee member Campania de Seguros de Vida Consorcio Nacional de Seguros S.A. resigned from the Committee. As of Sept. 29, 2020, each Committee members and their disclosable economic interests are: AerCap Holdings N.V. AerCap House, 65 St. Stephen's Green Dublin DO2 YX20 Ireland * The claims held by AerCap Holdings N.V. against the LATAM Debtors' estates derive from (1) as of the May 26, 2020 petition date, claims arising from 21 aircraft operating lease agreements between LATAM, as lessee, and various indirect wholly-owned subsidiaries of AerCap, as lessors, and claims arising from various subleases with sublessees affiliated with the Debtors, along with claims arising under related operative documents; and (2) the associated framework agreement, dated May 28, 2013, between AerCap and LATAM, pursuant to which the parties agreed, as relevant here, to a financial accommodation relating to the acquisition and use by the Debtors of two Boeing 787-9 aircraft from LATAM's existing purchase order with the manufacturer that were to be effected through sale-leaseback transactions. The size of AerCap's ultimate claims for each of its above- referenced transactions cannot be liquidated at this time as such amounts will be materially affected by whether the Debtors, as applicable, assume, reject and/or reinstate the above- referenced agreements and related operative documents and/or whether such agreements are amended or otherwise modified during the course of the Debtors' bankruptcy cases. Additionally, although the Debtors rejected two of AerCap's aircraft pursuant to orders dated June 8, 2020 [Docket No. 126] and August 19, 2020 [Docket No. 899], AerCap is still in the process of inspecting the aircraft and records to enable it to liquidate the claims relating to such rejections. Aircastle Limited Aircastle Limited 201 Tresser Blvd - Suite 400 Stamford, Connecticut 06901 * Aircastle holds claims against the Debtors arising out of, or related to, lease agreements between one or more of the Debtors as lessee and Aircastle, as lessor. Aircastle's claims against the Debtors are presently unliquidated, as such claims will depend upon the Debtors' subsequent decisions and actions arising out of, or related to, assumption, rejection, or other treatment of each of the leases between the Debtors and Aircastle. The Bank of New York Mellon 240 Greenwich Street New York, NY 10286 * The Trustee holds claims of not less than $800 million in aggregate principal amount, plus interest, fees, expenses and other liabilities accruing under and evidenced by the Indenture dated as February 11, 2019 with LATAM Finance Limited, as Issuer and LATAM Airlines Group S.A., as Guarantor, pursuant to which the 7.00% Notes were issued. In addition, the Trustee holds claims of not less than $700 million in aggregate principal amount, plus interest, fees, expenses and other liabilities accruing under and evidenced by the Indenture dated as April 11, 2017 with LATAM Finance Limited, as Issuer and LATAM Airlines Group S.A., as Guarantor, pursuant to which the 6.875% Senior Notes Due 2024 were issued. Lufthansa Technik Aktiengesellschaft Weg Beim Jager 193 22335 Hamburg Fed. Rep. of Germany * LHT holds claims against LATAM Airlines Group S.A., as of June 5, 2020, in the amount of not less than $49.5 million, plus unliquidated amounts, arising out of contractual agreements, which amounts may include amounts subject to offset or entitled to priority under Section 503(b)(9) of the Bankruptcy Code or otherwise. In addition, LHT is entitled to (a) administrative expense treatment under Section 503 for goods and services delivered on or after the petition date pursuant to the contractual agreements or otherwise, and (b) possessory or other liens for goods in its possession on or after the petition date. Sindicato de Empresa de Pilotos de LATAM Airlines Group S.A. Cruz del Sur 133, Office 302 Las Condes, Santiago, Chile * SPL is party to a collective bargaining/labor agreement with LATAM Chile that was signed on October 15, 2019, with a three- year effective period starting November 1, 2019 through October 31, 2022. The Union and Company signed an amendment to the current CLA under which the members agreed to a 50% pay cut of base pay for April 1, 2020 through June 30, 2020. No other changes to the existing employment terms were made in the amendment. SPL estimates the initial claim value of concessions under the temporary agreement at $10 million, constituting the reduction in wages. Pension obligations are not included. SPL has not yet determined whether any amount of the temporary reductions should be considered an administrative expense for the period after the debtors' petition filing. The current negotiations would reflect post-petition reductions to the CLA and may have a different analysis of general unsecured vs. administrative expense priority. Repsol, S.A. Av. Victor Andres Belaunde 147, Torre 5 Piso 3 San Isidro, Lima, Peru * Repsol holds the following prepetition trade claims as a supplier of Jet A-1 in Peru: LATAM Airlines Group S.A.: $2,704,247.01 LATAM Airlines S.A.: $6,000,587.96 Total: $8,704,834.97 Repsol also holds the following prepetition trade claims as a supplier of Jet A-1 in Spain: TAM Linhas Aereas, S.A.: 1,546,103.07 LAN Peru S.A.: 608,855.23 LATAM Airlines Group SA: 36,799.10 Total in EUR: 2,191,757.40 Total in USD: $2,430,658.96 The total in USD including Peru and Spain is $11,135,493.93 The Committee reserves the right to amend or supplement this Verified Statement in accordance with the requirements set forth in Bankruptcy Rule 2019. Counsel for the Official Committee of Unsecured Creditors of LATAM Airlines Group, S.A. can be reached at: Allan S. Brilliant, Esq. Craig P. Druehl, Esq. David A. Herman, Esq. DECHERT LLP 1095 Avenue of the Americas New York, NY 10036 Tel: (212) 698-3500 Fax: (212) 698-3599 Email: allan.brilliant@dechert.com craig.druehl@dechert.com david.herman@dechert.com A copy of the Rule 2019 filing, downloaded from PacerMonitor.com, is available at https://bit.ly/3jnMfsv About LATAM Airlines LATAM Airlines Group S.A. -- http://www.latam.com/-- is a pan-Latin American airline holding company involved in the transportation of passengers and cargo and operates as one unified business enterprise. LATAM Airlines Group S.A. is the largest passenger airline in South America. Before the onset of the COVID-19 pandemic, LATAM offered passenger transport services to 145 different destinations in 26 countries, including domestic flights in Argentina, Brazil, Chile, Colombia, Ecuador, and Peru, and international services within Latin America as well as to Europe, the United States, the Caribbean, Oceania, Asia, and Africa. LATAM Airlines Group S.A. and its 28 affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 20-11254) on May 25, 2020. Affiliates in Chile, Peru, Colombia, Ecuador, and the United States are part of the Chapter 11 filing. The Debtors disclosed $21,087,806,000 in total assets and $17,958,629,000 in total liabilities as of December 31, 2019. The Honorable James L. Garrity, Jr., is the case judge. The Debtors tapped Cleary Gottlieb Steen & Hamilton LLP as general bankruptcy counsel; FTI Consulting as restructuring advisor; and Togut, Segal & Segal LLP, and Claro & Cia in Chile as special counsel. Prime Clerk LLC is the claims agent. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Exporters Look to Improve Business Climate -------------------------------------------------------------- Dominican Today reports that Dominican Exporters Association (Adoexpo) president Elizabeth Mena has said that to improve the business climate and attract investment to the Dominican Republic, better technologies should be incorporated, open to innovation, raise quality, eliminate market distortions that impede the growth of companies, lift trade barriers and advance international pacts that facilitate exchanges and spur global competition. Interviewed in the relaunch of ProDominicana (former CEI-RD), the business leader pointed out that "as a private sector, we are willing to act energetically in the review of new legislative pieces to modify the processes and structures that eliminate friction that prevent local undertakings, such as updating the parts of the Labor Code that encourages labor formalization and contemplates new realities, such as teleworking," according to Dominican Today. About Dominican Republic The Dominican Republic is a Caribbean nation that shares the island of Hispaniola with Haiti to the west. Capital city Santo Domingo has Spanish landmarks like the Gothic Catedral Primada de America dating back 5 centuries in its Zona Colonial district. 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: Won't Sell Punta Catalina Plant --------------------------------------------------- Dominican Today reports that Minister Energy and Mines, Antonio Almonte, clarified that neither President Luis Abinader nor his agency have made any formal proposal to sell the Punta Catalina Power Plant to the private sector. Interviewed on Uno mas Uno, Almonte pointed out that there is not a single speech, a single proposal or a document where the Government has proposed the sale. "In fact, the final acceptance of plant number one has not yet been made, which should be done in the course of this month, depending on the discussions we have, and plant number two is supposed to be finalized in April next year, which implies accepting what the contractor built," he said. The coal-fired power plant owned by the State in southern Peravia province features two generators which supply 752MW to the grid. Built by Odebrecht, the facility is at the center of the country's largest-ever graft scandal. 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). ============= J A M A I C A ============= JAMAICA: BOJ Reports Decline in Net Int'l. Reserves in September ---------------------------------------------------------------- RJR News reports that the Bank of Jamaica (BOJ) is reporting that Jamaica's Net International Reserves (NIR) declined in September. At the end of September, the reserves were valued at a little over US$2.7 billion, according to RJR News. That was a decline of US$11 million when compared with the previous month, the report notes. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. Standard & Poor's credit rating for Jamaica stands at B+ with negative outlook (April 2020). Moody's credit rating for Jamaica was last set at B2 with stable outlook (December 2019). Fitch's credit rating for Jamaica was last reported at B+ with stable outlook (April 2020). As reported in the Troubled Company Reporter-Latin America, Fitch's revision of Jamaica's outlook in April 2020 to Stable from Positive reflects the shock to Jamaica from the coronavirus pandemic, which is expected to lead to a sharp contraction in its main sources of foreign currency revenues: tourism, remittances and alumina exports. ===================== P U E R T O R I C O ===================== SPON COMPUTER: Gets Court Approval to Hire Accountant ----------------------------------------------------- Spon Computer Corporation received approval from the U.S. Bankruptcy Court for the District of Puerto Rico to hire Ariel Lugo Figueroa, an accountant practicing in Adjuntas, P.R. The services that will be provided by the accountant include the filing of monthly operating reports and documents necessary to file Debtor's disclosure statement and Chapter 11 plan of reorganization. The accountant will charge a flat rate of $200 per month. Mr. Figueroa assured the court that he is a disinterested person within the meaning of Section 101(14) of the Bankruptcy Code. The accountant can be reached at: Ariel E. Lugo Figueroa P.O. Box 1082 Adjuntas, PR 00601 Phone: (787) 614-8127 About Spon Computer Spon Computer Corporation sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 20-02906) on July 24, 2020, listing under $1 million in both assets and liabilities. Judge Enrique S. Lamoutte Inclan oversees the case. Noemi Landrau Rivera, Esq., at Landrau Rivera & Associates, serves as Debtor's legal counsel. ================= V E N E Z U E L A ================= VENEZUELA: Electricity Industry Faces Multiple Challenges --------------------------------------------------------- EFE News reports that these days, Venezuelans are living half their lives in the dark, an image that is the best proof of the energy crisis that exists in the oil-rich country. On the other hand, the electricity industry seems to have one foot stuck in the 19th century and that is the biggest burden weighing on reactivating the moribund economy, according to EFE News. No matter who governs. There's no doubt that this is the most visible effect, the report notes. People must exit their metro cars in the dark in the middle of a blackout or wait patiently by the light of candles, but it also means there is an entire economic sector that cannot work, that has no energy to get itself going and is crucial for other sectors, including Venezuela's key economic activity - petroleum exploitation and refining, the report adds. Venezuela Venezuela, officially the Bolivarian Republic of Venezuela, is a country on the northern coast of South America, consisting of a continental landmass and a large number of small islands and islets in the Caribbean sea. The capital is the city of Caracas. Hugo Chavez was president to Venezuela from 1999 to 2013. The Chavez presidency was plagued with challenges, which included a 2002 coup d'etat, a 2002 national strike and a 2004 recall referendum. Nicolas Maduro was elected president in 2013 after the death of Chavez. Maduro won a second term at the May 2018 Venezuela elections, but this result has been challenged by countries including Argentina, Chile, Colombia, Brazil, Canada, Germany, France and the United States who deemed it fraudulent and moved to recognize Juan Guaido as president. The presidencies of Chavez and Maduro have challenged Venezuela with a socioeconomic and political crisis. It is marked by hyperinflation, climbing hunger, poverty, disease, crime and death rates, social unrest, corruption and emigration from the country. S&P Global Ratings, in May 2019, removed its long- and short-term local currency sovereign credit ratings on Venezuela from CreditWatch with negative implications and affirmed them at 'CCC-/C'. The outlook on the long-term local currency rating is negative. At the same time, S&P affirmed its 'SD/D' long- and short-term foreign currency sovereign credit ratings on Venezuela. Moody's credit rating (long term foreign and domestic issuer ratings) for Venezuela was last set at C with stable outlook in March 2018. Meanwhile, Fitch's long term issuer default rating for Venezuela was last in 2017 at RD and country ceiling was CC. Fitch, on June 27, 2019, affirmed then withdrew the ratings due to the imposition of U.S. sanctions on Venezuela. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2020. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *