/raid1/www/Hosts/bankrupt/TCRLA_Public/201027.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

          Tuesday, October 27, 2020, Vol. 21, No. 215

                           Headlines



A R G E N T I N A

ARGENTINA: Policies Undermine Investor Confidence, Bondholders Say


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Time to Invest, Pres. Abinader Says


J A M A I C A

JAMAICA: Minister Says Mango Orchards Will be Set Up


M E X I C O

BANCO MONEX: Fitch Affirms BB+ LongTerm IDRs, Outlook Negative


P A R A G U A Y

BANCO CONTINENTAL: Fitch Assigns BB+ LT IDRs, Outlook Stable
INDUSTRIA PARAGUAYA: Fitch Affirms 'B' Foreign Currency IDR
PARAGUAY: To Increase Productivity of MSMEs With $15MM IDB Loan


P E R U

PERU LNG: S&P Lowers ICR to 'B-' on Sustained Weak Performance


P U E R T O   R I C O

CARIBBEAN TRADING: Seeks to Hire Estrella as Bankruptcy Counsel
LBI MEDIA: Lenard Liberman Back, In Puerto Rico


T R I N I D A D   A N D   T O B A G O

TRINIDAD & TOBAGO: Has Growing Debt Amid Economic Woes & Pandemic

                           - - - - -


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

ARGENTINA: Policies Undermine Investor Confidence, Bondholders Say
------------------------------------------------------------------
Rodrigo Campos and Eliana Raszewski at Reuters report that
Argentine bondholder groups slammed the government over economic
policies they said were undermining investor confidence in the
country, which emerged from a sovereign default in September after
a $65 billion restructuring.

Two of the groups involved in that debt revamp said in a statement
that policies since then had "failed to restore confidence" and
instead had "dramatically worsened the country's economic crisis."
Bond prices have dropped sharply since the exchange, according to
Reuters.

Argentina, headed for a near 12% economic contraction this year due
to the coronavirus pandemic, is battling a foreign exchange crisis
with dwindling reserves and a huge gap between the official peso
spot rate and alternative trades of the currency, the report
notes.

The economy ministry and central bank have tightened capital
controls this year, but have yet to calm the situation, the report
relates.

The gap between the official spot rate ARS=RASL of around 78 pesos
per dollar and the black market ARSB= was around 143% on Oct. 22.

"Instead of heralding a reopening of access to markets to support
Argentina's manifest investment needs, the aftermath of the debt
restructuring is a virtual wasteland for Argentine credit," the
Exchange Bondholder Group and Argentina Creditor Committee said,
the report discloses.

The Argentine government did not immediately respond to a request
for comment.  But an official who spoke on condition of anonymity
said the statement did not represent the general view of creditors
and was pushed by a small group of holders, the report relays.

The official added that dialogue with creditors was fluid and
ongoing, with video conference calls in recent weeks, though
admitted there were some "open wounds," the report says.

"It's the moment to close these wounds," the official said.

Argentina's center-left Peronist government, in place since last
December, has this year restructured over $100 billion with private
creditors and is in negotiations to defer some $45 billion owed to
the International Monetary Fund, the report adds.

                         About Argentina

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

Argentina has the third largest economy in Latin America.  The
country's economy is an upper middle-income economy for fiscal year
2019 according to the World Bank.

Historically, however, its economic performance has been very
uneven, with high economic growth alternating with severe
recessions, income maldistribution and in the recent decades,
increasing poverty.

Standard & Poor's credit rating for Argentina stands at CCC+ with
stable outlook, which was a rating upgrade issued on Sept. 8,
2020.

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

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

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




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

DOMINICAN REPUBLIC: Time to Invest, Pres. Abinader Says
-------------------------------------------------------
Dominican Today reports that Abinader was in favor of the Dominican
Republic taking advantage of its privileged geographical location
to promote the nearshore and take advantage of the tendency of
North American companies that are relocating their supply chains to
closer markets.

"This is the time to invest in the Dominican Republic and to create
strategic alliances that will influence the creation of new
business opportunities to strengthen the country's competitiveness
and to tighten relations with our main commercial partner," he
said, according to Dominican Today.

The President spoke during the "Forecast on the America and the
Caribbean (Folac)," organized by the Association of American
Chambers of Commerce in Latin America (AACCLA), which took place
during the 28th edition of Dominican Week in the United States, the
report notes.

During the conversation, the President highlighted the country's
benefits to attract foreign investment in infrastructure,
facilities for the injection of capital, and free trade agreements
of which the country is a signatory, the report relays.

"The main objective of our government is to create some 300,000 new
jobs in the next few years, which we plan to achieve through the
growth of companies by establishing public-private alliances and
opening up to foreign investment," he said, the report discloses.

The head of state said he would soon introduce a bill to Congress
to establish the "Zero Bureaucracy" program, which collaborates
with the American Chamber of Commerce of the Dominican Republic
(AamchamDR) to eliminate government bureaucracy to streamline and
make public administration more efficient, the report says.

Congressmen Adriano Espaillat, Lori Traham, Joe Kennedy, and
Vicente Gonzalez participated in the meeting, the report notes.
The Dominican Week delegation included Roberto Herrera, president
of the event; William Malamud, vice president of AmchamDR; Simon
Suarez, former president of Asonahores; and Steven Puig, executive
president of BHD Leon, the report adds.

                  About Dominican Republic

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




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

JAMAICA: Minister Says Mango Orchards Will be Set Up
----------------------------------------------------
RJR News reports that Jamaica Agriculture Minister Floyd Green has
said several mango orchards will be established across the island,
commencing in Clarendon next year on a 1,000-acre plot.

Mr. Green said the project will be in partnership with private
investors to take advantage of the huge market in the United States
for Jamaican mangoes, according to RJR News.

More than 100,000 pounds of Jamaican mangoes have been sold since
the start of the year with one importer indicating that 10 times
that amount can be sold in the U.S, 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.




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

BANCO MONEX: Fitch Affirms BB+ LongTerm IDRs, Outlook Negative
--------------------------------------------------------------
Fitch Ratings has affirmed Banco Monex, S.A., Institucion de Banca
Multiple, Grupo Financiero Monex's (Banco Monex) Long-term Foreign-
and Local-Currency Issuer Default Ratings (IDRs) at 'BB+' and the
Short-term Foreign- and Local-Currency IDRs at 'B', and its
Viability Rating (VR) at 'bb+'. The Rating Outlook is Negative.

Fitch has also affirmed the Long- and Short-Term National Scale
ratings of Banco Monex and Monex Casa de Bolsa, S.A. de C.V., Grupo
Financiero Monex (Monex CB) at 'AA-(mex)'/'F1+(mex)', and the Long-
and Short-Term National Scale ratings of Monex, S.A.B. de C.V.
(Monex SAB) at 'A+(mex)'/'F1(mex)'. The Rating Outlook on the
long-term rating is Negative.

In addition, the rating of the senior unsecured debt issued by
Monex SAB was affirmed at A+(mex).

KEY RATING DRIVERS

BANCO MONEX

VR, IDRs and National Ratings

Banco Monex's IDRs are driven by its intrinsic creditworthiness, as
reflected in its 'bb+' VR. Banco Monex's VR considers the
deteriorated operating environment that could translate into asset
quality pressures that will increase credit costs and affect the
bank's profitability as a high importance factor. The ratings also
consider the bank's good company profile reflected in its
leadership in the FX spot market as a high importance factor. The
ratings are also highly influenced by the bank's higher risk
appetite, which is driven by its less prudential investment
securities portfolio, higher opportunistic loan growth and
relatively high credit concentrations.

The bank's Rating Outlook remains Negative as Fitch expects the
bank's financial profile to deteriorate from the pandemic due to
its credit exposure. The Negative Outlook also incorporates Banco
Monex's relatively high international ratings with respect to the
sovereign's IDRs (BBB-) and Fitch's assessment of the operating
environment (bb+), reflecting its view that the relativities in
case of a sovereign/operating environment downgrade should be
maintained due to its nature as a mid-sized and less-diversified
bank.

Banco Monex is a mid-sized Mexican commercial bank with a focus and
specialization in FX trading. The bank's strong brand recognition
is underpinned by its long track record that consistently positions
it as one of the leaders in this segment among FX banks. Despite
its leadership in FX business lines, its size remains modest on a
global basis. As of July 2020, Banco Monex was the 11th largest
bank as measured by total assets in Mexico, with a market share of
1.5%, highly influenced by its holdings of liquid assets such as
cash and investment securities. However, as measured by gross loans
and customer deposits, the bank was the 16th and 15th largest, with
a market share of 0.5% and 0.9%, respectively.

Banco Monex exhibits a relatively higher risk appetite than its
local peers in Fitch's opinion. The bank's investment securities
portfolio usually has a relatively higher proportion of bank and
corporate debt compared to most Mexican commercial banks. As of
2Q20, investment securities accounted for 34.5% of total assets, of
which government bonds represented 18.5% of total assets, while
bank and corporate bonds represented 8.4% and 7.6%, respectively.
In Fitch's view, Banco Monex's underwriting standards, marked by
higher loan growth when opportunities arise, also underpin its
higher risk appetite. The bank's loan concentration is high, with
the 20 largest borrowers accounting for 37% of its portfolio or
1.4x CET1 at 2Q20. Exposure to vulnerable economic sectors such as
real estate, tourism and housing construction was also high,
representing 28.1% of gross loans.

As of 2Q20, asset quality metrics remained under pressure from the
deteriorated operating environment. The expiration of loan
forbearance programs will also pressure asset quality. The NPL
ratio was 2.5%, similar to those registered by its closest local
(Mexican FX banks) and global peers (similarly rated emerging
market banks) at the same date, although slightly higher than the
2.1% registered at YE19. Nevertheless, Fitch highlights that
Mexican commercial banks' NPL ratios were underestimated at 2Q20 as
the impact of the coronavirus pandemic was not yet fully reflected
in their borrowers' liquidity and solvency, since a high proportion
requested deferral programs. As of July 20, 2020, the payment
deferral program approved by the local regulator covered about 21%
of gross loans.

Fitch believes that Banco Monex's profitability exhibits a higher
resilience compared to most Mexican commercial banks given its
lower dependence on loan interest income and relatively small loan
portfolio. As of 2Q20, the bank's operating profit to risk weighted
assets (RWA) ratio was 4%. While this ratio exceeds that of other
Mexican mid-sized commercial banks in this same period, it is
similar to that of its closest local peers, as FX trading market
volatility boosted profits as a result of the uncertainty caused by
the coronavirus pandemic, which increased trading volumes and
widened spreads on FX trading operations. This is reflected in the
FX trading gains that contributed to approximately 57.4% of the
bank's total operating income in 2Q20. As a result, FX trading
gains increased 30.5%, compared with the same period of the last
year.

Banco Monex's capitalization metrics remained commensurate with its
rating category and provide adequate capacity to absorb risks from
the operating environment. As of 2Q20, the CET1 capital ratio stood
at 14.9%, slightly below its average of 15.4% over the past four
years. The slight deterioration in this period reflected the bank
investment securities portfolio's substantial growth of 144%, which
resulted in an increase of 60.7% for RWA market risk requirements
from YE19. Nevertheless, the bank's historically strong earnings
generation through the economic cycle, which was maintained in
2020, as well as the local regulator's recommendation to withhold
dividend payments this year, has partially offset the increase in
RWA.

The bank's funding and liquidity score is a rating strength. The
bank's loans to customer deposits ratio improved to 50.8% at 2Q20
from 53% at YE19, and compared favorably to that of its closest
local peers as well as relative to most Mexican commercial banks.
Fitch considers that the bank has a relatively strong liquidity
profile intrinsic to its business model as its liquid assets (cash,
inverse repos, securities trading and securities available for
sale) covered 1.3x its total interest-bearing liabilities as of
2Q20. This is also reflected in its comfortable second-quarter
average liquidity coverage ratio of 193.2%.

Support Rating and Support Rating Floor

Fitch affirmed the Support Rating (SR) and Support Rating Floor
(SRF) of Banco Monex at '5' and 'NF', respectively, to reflect the
bank's low systemic importance. However, possible, external support
cannot be relied upon.

MONEX SAB

National Ratings

Monex SAB's ratings consider the long track record of its main
Mexican operating subsidiaries (Banco Monex and Monex CB) in FX
trading in the local market that has helped it maintain its
leadership in this segment. The ratings also consider the
relatively consistent and reasonable financial profile exhibited by
its operating subsidiaries through the economic cycle. However,
Monex SAB's ratings are one notch below the National Scale ratings
of its main operating subsidiary, Banco Monex, due to its limited
capacity to generate revenues, as it is not an operating entity but
a holding company that depends on the earnings generated by its
main subsidiaries.

Monex SAB's double leverage ratio remained below 120% over the past
four years. As of 2Q20, the ratio stood at 113.3%, similar to the
four-year average of 115.7%. Given the solid financial profile of
its subsidiaries as reflected in its strong earnings generation,
even in periods of high economic uncertainty and management's
intention to refrain from additional senior unsecured debt
issuances, Fitch expects the holding company's double leverage
ratio to remain below 120% in the short term. However, the agency
highlights that the 120% threshold is highly sensitive to increases
in equity investments of subsidiaries or reductions in the holding
company's equity position, a scenario that could be easily
triggered given the current operating environment. Fitch does not
expect Monex SAB's funding and liquidity profile to be pressured in
the near term, as the entity only has one senior unsecured debt
issuance for MXN1,500 million that matures in 2023.

MONEX CB

National Ratings

The national ratings of Monex CB are aligned with Banco Monex's
'AA-(mex)' and 'F1+(mex)' ratings with a Negative Rating Outlook on
the national scale and consider GF Monex's legal obligation to
provide support to its subsidiaries, as well as Fitch's perception
that they are of core importance to the group's overall vision and
strategy.

Senior Unsecured Debt Ratings

Fitch affirmed the local senior unsecured debt issuance at the same
level as Monex SAB's Long-Term National Scale rating of 'A+(mex)',
as the notes' likelihood of default is the same as the issuers.

RATING SENSITIVITIES

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

  -- Banco Monex: Banco Monex's VR, IDR and National ratings would
be downgraded if its CET1 capital ratio declines consistently below
13%. The bank's ratings could also be downgraded if asset quality
problems result in higher credit costs that pressure its operating
profit to RWA ratio to a level consistently below 3%.

  -- Monex SAB: Monex SAB's national ratings would remain at the
same level as Banco Monex and would move in tandem with any rating
actions on its main operating subsidiary. However, a significant
and sustained increase in the holding company's double leverage
ratio above 150% would lead to a differentiation of at least two
notches with respect to the National Scale ratings of its main
operating subsidiary.

  -- Monex CB: As Monex CB's national ratings are aligned with
those of Banco Monex, and therefore, a downgrade of the bank's
ratings would result in a similar action on Monex CB's National
Scale ratings.

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

  -- Banco Monex: Negative Rating Outlooks on the IDRs and National
Scale ratings could be revised back to Stable if the impact of the
coronavirus shock on its credit profile is shorter-than-expected
and the recovery is relatively fast, which will also depend on
Banco Monex's ability to confront current challenges and contain
the negative impact on asset quality and profitability.

  -- A potential upgrade of Banco Monex's ratings is unlikely in
the foreseeable future as these are at a relatively high level for
its moderate business model and scale. Over the medium term, an
upgrade would depend on greater business and risk diversification,
as well as a marked improvement of its gross loan and customer
deposit market shares within the Mexican financial system.

  -- Monex SAB: Monex SAB's national ratings would remain at the
same level as Banco Monex and would move in tandem with any rating
actions on its main operating subsidiary. However, Monex SAB's
national ratings could also be upgraded and equalized with those of
its main operating subsidiary, Banco Monex, if it is able to
consistently maintain double leverage below 120%. Nevertheless,
this scenario is unlikely over the rating horizon given a more
deteriorated and challenging operating environment.

  -- Monex CB: Monex CB's national ratings are aligned with Banco
Monex's, and, therefore, these ratings would mirror any changes in
the bank's national ratings.

SR and SRF: SR and SRF are at their lowest possible level. Any
upside potential for both ratings is limited and can only occur
over time with a material increase in the bank's systemic
importance.

Senior Unsecured Debt Rating: Monex SAB's senior unsecured debt
rating would mirror any change on the issuer's National Scale
ratings.

SUMMARY OF FINANCIAL ADJUSTMENTS

Banco Monex and Monex CB: Pre-paid expenses and other deferred
assets were classified as intangibles and deducted from total
equity due to its low absorption capacity under stress.

Monex SAB: Pre-paid expenses, other deferred assets and goodwill
were classified as intangibles and deducted from Fitch Core Capital
due to its low absorption capacity under stress.

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.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

The National Scale ratings of Monex CB and Monex SAB are driven by
the strong ability and propensity of support that they would
receive from the main operating subsidiary of the economic group,
Banco Monex.

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

BANCO CONTINENTAL: Fitch Assigns BB+ LT IDRs, Outlook Stable
------------------------------------------------------------
Fitch Ratings has assigned the following ratings to Banco
Continental SAECA (Continental):

  -- Long-Term Foreign and Local Currency Issuer Default Ratings
     (IDRs) 'BB+'; Outlook Stable;

  -- Short-Term Foreign and Local Currency IDRs 'B';

  -- Viability Rating 'bb+';

  -- Support Rating '3'.

  -- Support Floor 'BB'.

KEY RATING DRIVERS

Continental's IDRs are driven by its Viability Rating (VR) of
'bb+', which is highly influenced by its company profile, due to
its strong local franchise as the largest Paraguayan bank with
nearly 14% of loans of the banking system, albeit moderate on a
regional basis. Its strong capitalization metrics relative to its
local and similarly rated international peers also highly influence
the bank's ratings. Additionally, the VR considers current
challenges from the operating environment, the bank's good
liquidity ratios, still reasonable but deteriorating profitability
and asset quality, and its stable but concentrated funding.

In Fitch's opinion, Continental's capitalization is its main
financial strength. The bank's Fitch Core Capital-to-risk-weighted
assets (RWA) ratio continued its increasing trend, reaching 22.5%
at June 30, 2020. Continuous capital injections and earnings
retention have underpinned this trend. Continental's capital base
remains well above the minimum regulatory limit of 12% of risk
weighted assets.

In Fitch's view, the bank is also well prepared to face the Central
Bank's higher capital requirements if necessary. Regulators could
require additional capital for domestic, systemically important
banks by a maximum of 200 bps according to the law Nº5587/16,
which partially modified the general banking law.

In Fitch's opinion, the coronavirus crisis and the resulting
economic contraction will continue to impact the overall operating
environment and consequently, asset quality and earnings, and thus
the outlook for these three factors is negative. However, Fitch
believes that the strong capitalization metrics with which the bank
entered the crisis could help to absorb a moderate financial
deterioration while its company profile strength could be
maintained and further benefit from flight to quality strategies
from customers and investors, which explains the maintenance of the
Stable Outlook on the bank's long-term IDRs. A nonmaterial
deterioration on asset quality and profitability would not impact
the current ratings.

Continental's business model focuses on corporate (67%) and SMEs
(28%) lending, which has allowed the bank to maintain sound asset
quality ratios over the past few years (NPLs 2015-2019 1.5% on
average), but has also resulted in high concentrations with the top
20 borrowers accounting for 30% of the total loans and 1.45x of the
Fitch Core Capital (FCC).

Continental's NPLs increased to 3.8% at 1H20, aligned with an
overall deterioration trend in the banking system due to the
pandemic effects and some seasonality payment delay on its clients.
Fitch expects additional asset quality deterioration, with NPLs
reaching about 4.5% in 2H20 and remaining on this level in 2021,
once the deferral programs end and are related to its SMEs exposure
which are more vulnerable to the operating environment.

As of June 2020, approximately a modest 5% of the total portfolio
adhered to deferral programs, however the bank and the system has a
ratio of renewed, refinanced and restructured loans (RRR) of about
15%, which is high compared to international peers.

Continental's operating profit to RWA ratio declined to 1.7% in
1H20 (from 3.5% in 2019 and 3.9% in 2018), and Fitch expects this
ratio to further deteriorate to levels closer to 1.5% in 2020 and
2021. The challenging market conditions, loan contraction, fees
reductions and lower accrued interest's income from loan deferrals
during the pandemic have already started to pressure the bank's
profits. Also, adverse weather conditions from last year (drought
in first half and flood in the second) have also affected the
bank's profitability.

Improving efficiency levels remains a challenge for the bank and is
one of the main strategic goals according to Continental's
digitalization plan set with the support of the International
Finance Corporation (IFC), and given that the metric noninterest
expense over gross revenue has remained volatile in the recent
past.

Continental relies heavily on wholesale deposits which are highly
concentrated (the top 20 depositors accounted for 27.2% of total as
of June 2020), a risk that is partially offset by its good asset
and liability management and comfortable liquidity levels. At June
30, 2020, liquid assets covered 27.4% total short-term,
interest-bearing liabilities, a figure consistent with a
consolidated LCR of 157%. Continental's loan to customer deposits
ratio reached 94%, which is commensurate with its rating level. The
bank's funding is complemented by approved credit lines with a
number of foreign financial institutions.

KEY RATING DRIVERS - SUPPORT RATING AND SUPPORT RATING FLOOR

Continental's SR of '3' and SRF of 'BB' reflect Paraguay's
(Long-Term Foreign Currency IDR BB+/Stable) relatively modest
capacity to provide support should it be required, also the
liability structure of the banking system and the bank's systemic
importance are higher importance factors in this assessment. In
Fitch's view, this result in only a moderate probability of
sovereign support.

RATING SENSITIVITIES

RATING SENSITIVITIES- VR AND IDRs

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

  -- An upgrade is unlikely over the foreseeable future, but could
result from potential changes in Fitch's assessment of the
Paraguayan operating environment faced by local banks.

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

  -- Continental's VR and IDRs could be affected by material
weakening of the bank's currently strong capital metrics (FCC
sustained below 18%) which could arise from a higher than expected
deterioration of the operating environment which materially impact
the bank's asset quality or profitability metrics or from a change
on its strong competitive position in the local market.

RATING SENSITIVITIES - SUPPORT RATING AND SUPPORT RATING FLOOR

Changes in the bank's SR and SRF are unlikely. Continental is
considered by Fitch as a domestic systemically important financial
institution (D-SIFI) of the Paraguay financial system.

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

Banco Continental S.A.E.C.A.: Governance Structure: 4

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.


INDUSTRIA PARAGUAYA: Fitch Affirms 'B' Foreign Currency IDR
-----------------------------------------------------------
Fitch has removed Industria Paraguaya de Alcoholes Sociedad Anonima
(Inpasa) Long-Term Foreign Currency Issuer Default Rating (IDR)
from Rating Watch Negative (RWN). The IDR was affirmed at 'B'.
Fitch also assigned a Rating Outlook of Stable.

The removal of the RWN reflects Fitch's better expectations for the
ethanol industry in Paraguay following the limited effects of the
coronavirus pandemic, and Inpasa's ability to meet all its
obligations while maintaining its adequate capital structure.

Inpasa's rating reflects the company's high scale of operations
compared to the competition, and its leadership in the Paraguayan
ethanol market. Inpasa's business model also benefits from the sale
of corn by-products that contribute to an adequate historical
profitability. Fitch understands that Inpasa's size and leadership
position in the ethanol market in Paraguay and strong bargaining
power against corn suppliers attenuates the impact of commodity
price volatility on its margins.

The rating considers the relatively small size of the country's
vehicle fleet, which limits the growth potential of the local
ethanol market and challenges Inpasa to explore export markets to
maximize its production capacity utilization. The analysis also
incorporates Fitch's expectation of a gradual decline of Inpasa's
leverage.

KEY RATING DRIVERS

Limited Impact of Coronavirus: Ethanol demand has recovered to
normal levels since May, after a significant decrease in March and
April. Prices were not significantly affected, and as a result
Inpasa has been able to show a stable cash flow generation in
comparison with previous years. Demand and prices in Brazil weren't
affected as expected, and Inpasa did not need to help finance the
companies owned by its controlling shareholder in Brazil during the
crisis. There was no cash leakage above the planned investing in
the Nova Mutum plant in Brazil.

No New Intercompany Loans Expected: Fitch projects INPASA will
generate EBITDA of about USD75 million in 2020 and USD82 million in
2021. INPASA's EBITDA margins are expected to be reduced to around
28% in 2020 (from 31% in 2019) due to the coronavirus pandemic.
During t previous two years, a significant portion of cash flow
generated by the company was used to finance the Brazilian projects
of its sister companies, preventing Inpasa from deleveraging. As
both Brazilian plants are already producing close to full capacity,
there are no new intercompany loans expected to be sent to the
Brazilian sister companies, which should allow Inpasa to reduce its
leverage.

Satisfactory Business Model: INPASA's business model benefits from
its large scale of production, equivalent to 1.3 million liters of
corn ethanol per day. The company operates two ethanol distilleries
located near Ciudad del Este and Asuncion, the largest cities in
the country, in regions characterized by a high concentration of
corn producers with high agricultural yield and proximity to the
consumer market, reducing logistics costs. INPASA is less
capital-intensive in comparison with its Brazilian counterparts, as
the company uses corn as the main raw material, while the
Brazilians use sugarcane. The company has a production capacity of
260 tons of sugar per day, and 700 tons per day of Dried Distillers
Grains with Solubles (DDGS), a high protein and fibrous compound
used as animal feed.

Leadership Position in Paraguay: INPASA is the market leader in
ethanol sales in Paraguay, with a 70% market share. The ethanol
market in Paraguay is relatively small, estimated at 350 million
liters. The relatively small size of the country's vehicle fleet
limits the industry's growth potential. INPASA is able to supply
about 90% of the Paraguayan ethanol market, which is basically
composed by anhydrous ethanol, blended in a proportion of 25% to
the gasoline sold in the country. Although INPASA benefits from
legislation that requires all ethanol produced within the country
to be made from local raw materials, which limits competition with
imported ethanol, the flexibility of this rule by the local
government could occur as a way to guarantee fuel supply in the
country, pressuring the company's market position. INPASA has the
challenge to direct its sales to the export market, maximizing the
use of its two industrial plants, especially after completion of
investments in the new San Pedro plant.

DERIVATION SUMMARY

INPASA is the leader in the Paraguayan ethanol market. In terms of
revenue, the company's scale of operations is much smaller than
Biosev (IDR B/Negative) and the participation of sugar over
INPASA's total revenues is equal to only 5%, while its Brazilian
peers present a much more balanced portfolio of products. INPASA's
high exposure to corn and ethanol price volatilities and the low
correlation between commodity prices increases the volatility of
its margins compared to Brazilian sugar and ethanol producers.
Similar to FS Agrisolutions Industira de Biocombustiveis Ltda (FS
Bioenergia, BB-/Stable), Inpasa's large storage capacity,
well-established commercial policies with corn grain producers and
a presence of animal nutrition products help mitigate corn's price
volatility. Both companies can produce ethanol with cash cost
comparable to some of the most efficient sugar cane processors in
Fitch's portfolio like Usina Santo Angelo - USA (A-[bra]/Stable),
Jalles Machado (A+[bra]/Stable) and Adecoagro (unrated), a cost
benchmark in the industry. The Paraguayan ethanol market is
concentrated in the anhydrous type of the biofuel and is less
regulated and more informal than the Brazilian market, which
increases the exposure of INPASA's cash flows to unfavorable
changes in operating environment and regulation.

Fitch projects INPASA's net leverage to reach around 3.1x in 2020,
in line the 3.0x expected for FS Bionergia in FYE 2020. Such a
comparison is distorted by INPASA's debt to finance the investments
in the Sinop and Nova Mutum plants in Brazil. INPASA's liquidity is
weaker than Brazilian peers, as the availability of funding in
Paraguay is concentrated in short-term borrowing banking lines used
to purchase corn, its main raw material. INPASA typically includes
corn inventories as part of its liquidity management initiatives,
while Brazilian producers adopt a more conservative liquidity
approach.

KEY ASSUMPTIONS

  -- Production falls to around 50% for two months, and recovers to
normal afterwards in 2020.

  -- Average ethanol prices in 2020 for Inpasa decrease in 6%.

  -- The company pays its net profit as dividends.

RATING SENSITIVITIES

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

  -- Improved liquidity and maturity schedule would be considered
positively by Fitch;

  -- Maintaining a solid capital structure.

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

  -- A negative rating action could take place if INPASA faces
additional dividend or intercompany loan pressure to finance sister
companies in Brazil, resulting in leverage above 3.5x for a
sustained period of time;

  -- Any indication that company's liquidity gets tighter or
worsens;

  -- Change in regulation that negatively affects the company's
position in the Paraguayan market.

LIQUIDITY AND DEBT STRUCTURE

Weak Liquidity: Fitch projects Inpasa's liquidity to remain weak,
with a small cash position compared to short-term debt. In 2019,
the company had cash and marketable securities of USD4 million
compared and short-term debt of USD121 million. Total debt amounted
USD242 million in 2019. At book value, Inpasa's inventories
amounted to USD77 million. Preliminary figures as of September
showed USD148 million in short term debt, and USD9 million of
cash.

Inpasa's access to credit lines is currently mostly limited to
180-day revolver credits, and working capital credits backed with
corn warrants. The high concentration in short-term borrowings is
partly explained by the relatively small size of the Paraguayan
banking market. Total debt included USD75 million (30% of total
debt) due in 2024, used to finance the construction of the plant in
Mato Grosso by its related company Inpasa Agroindustrial. Around
80% of Inpasa's debt is in USD or EUR, and the remainder in
Paraguayan Guarani, the local currency. Long-term debt is backed
with land owned by Inpasa's shareholder and by a fiduciary lien of
the plant in San Pedro.

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

Industria Paraguaya de Alcoholes Sociedad Anonima: Group Structure:
'4', Governance Structure: '4'

INPASA has an ESG Relevance Score of '4' for Group Structure due to
the low independence of the board of directors and the power of the
sole owner, Jose Odvar Lopez, which has a negative impact on the
credit profile, and is relevant to the rating in conjunction with
other factors.

INPASA has an ESG Relevance Score of '4' for Governance Structure
due to the related party transactions with other companies of the
group and its owner, that do not consolidate with INPASA, which has
a negative impact on the credit profile, and is relevant to the
rating in conjunction with other factors.

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.


PARAGUAY: To Increase Productivity of MSMEs With $15MM IDB Loan
---------------------------------------------------------------
As part of the economic recovery promoted in the context of the
COVID-19 pandemic, Paraguay will continue to support an increase in
its Micro, Small and Medium Enterprises (MSMEs) productivity with a
$15 million loan approved by the Inter-American Bank of Development
(IDB).

The program aims to increase the training and technical assistance
opportunities for MSMEs by providing them with Business Development
Services (SDE, for its initials in Spanish); and increase the
innovation effort of MSMEs through the provision of sectoral
technological services.

It is expected that the increase in the supply of Business
Development Services will be achieved through the creation of a
national network of productivity centers. These private centers
will promote growth and increase the productivity of MSMEs, mainly
through services such as technical assistance and training.

In addition the MSME policies will also be strengthened, through
the creation or reformulation of regulatory frameworks; the
implementation of an observatory to monitor and analyze the sector;
gender and environmental indicators monitoring system; and the
training of people in policies and business development.

The program will contribute to generate data and evidence on the
participation of women as entrepreneurs; as well as to identify the
designs that favor their participation and actions to support the
development of public policies oriented on this topic.

It is estimated that the program will benefit 8,500 MSMEs directly,
and in addition, around 30 specialists and public officials will be
trained on issues of support policies for MSMEs. It will also
support at least five public agencies with responsibilities for
regulations that affect business performance.

The $15 million IDB loan has an amortization period of 24 years,
six and a half grace period and an interest rate based on LIBOR.




=======
P E R U
=======

PERU LNG: S&P Lowers ICR to 'B-' on Sustained Weak Performance
--------------------------------------------------------------
S&P Global Ratings, on Oct. 23, 2020, downgraded Peru-based natural
gas liquefaction company Peru LNG S.R.L. (PLNG) to 'B-' from 'B'.
The outlook is negative.

The negative outlook captures the increased downside risks and the
likelihood of a downgrade in the next 12 months if S&P continues to
expect very high leverage (illustrated by net debt to EBITDA above
8x).

S&P sid, "Our ratings reflect PLNG's very high leverage, subdued
cash flow generation, and what we now see as a more gradual
deleveraging path well into 2022. Although our revised base case
incorporates the recovery of natural gas prices from record-low
levels in 2020, the recovery pace now results in a more gradual
deleveraging than we originally forecasted. The following table
summarizes price assumptions in our previous and new base case."

Record low gas prices for both Henry Hub (HH) and non-HH markers,
particularly during the second quarter, continue to weaken revenues
and EBITDA for 2020 compared to S&P's previous base case. To a
lesser extent, new unplanned weather-related stoppages during the
second quarter, when loading operations were interrupted for 47
non-consecutive days, also hampered PLNG's performance.

S&P Said, "In addition, we've seen most LNG cargoes sent to non-HH
destinations because prices are higher, so the potential benefits
from higher HH prices in 2021 may end up eroded by the contractual
clause that caps 67% of PLNG's revenues to HH prices, while the
off-taker has flexibility to deliver to the market of its choice
(the Manzanillo adjustment). We incorporate most cargoes sent to
non-HH destinations in our base case.

"We now expect EBITDA of $45 million-$50 million in 2020 (versus
$80 million-$90 million in our previous base case) and about $100
million in 2021. This would lead to debt to EBITDA close to 18.0x
in 2020 (compared to 9.0x-10.0x in our previous forecast),
recovering to about 8.5x in 2021 and 6.0x in 2022. This
deleveraging path is slower than the one resulting from our
previous forecast of near 7.5x in 2021. PLNG's very high leverage
this year and the uncertain prospects for a strong recovery in the
next 12 months compare negatively to other issuers in the oil and
gas industry in the 'B' category."

In early 2020, PLNG began conversations with the off-taker to
review the contract in place and to mitigate some features that
have been hurting PLNG's profitability for the past four years. S&P
said, "Despite the ongoing conversations, the advances so far have
not been as fast as we expected, presumably affected by the
pandemic. In addition, the visibility about the exact content of
these negotiations and the timing for a final agreement remains
low. We view this initiative as relevant for PLNG, because the
negative impact to revenues from the clause under review (about
$370 million since 2016 up until June 2020) represents 39% of the
$940 million bond outstanding."

PLNG is also working on implementing a hedging strategy. While the
company is focusing on getting the final approval from shareholders
to implement options on HH natural gas prices, the documentation is
still under discussion with the potential hedging providers. S&P
maintains its view that if successfully implemented, this would
help lower cash flow volatility, though at a cost.

S&P said, "We continue to view PLNG's liquidity position as
adequate in the next 12 months, with sources over uses above 2x.
This is mainly due to the company's robust cash balance of $163
million as of June 30, 2020. However, in our view over the medium
to long term, PLNG's cash generation mostly depends on how
commodity gas prices evolve (therefore outside the company's
control) and the renegotiation of the agreement with the off-taker.
Absent a successful strategy to stabilize and make revenues more
predictable, PLNG will likely face challenges to build up cash to
serve the bond amortizations from 2024 on.

"From a qualitative standpoint, we're also monitoring PLNG's
relationship with banks, considering that it still has to renew the
committed facility with Banco de Crédito del Peru (BCP,
BBB+/Negative/A-2) due in March 2021. This facility has been in
place for many years now, although we now think there could be
challenges to renew it under the current business conditions."

To mitigate the causes of lower production related to rough sea
conditions in second-quarter 2019 and 2020, PLNG has embarked on a
capex plan to increase the port's operating windows and gain
operational efficiencies in the liquefaction process. Capex
includes implementing a mooring system to provide ships with
greater stability during adverse weather conditions and a
refrigerant ethane recovery facility that would optimize the
overall liquefying process. The budget for the former is about $25
million, to be disbursed in 2020-2021, and for the latter is around
$8 million. We expect PLNG to complete the mooring system in 2021,
although not before the rough weather season that typically occurs
annually in the second quarter. Thus, S&P expects full contribution
from this project only in 2022, similar to the ethane recovery
facility, which has suffered delays due to the pandemic and due to
a review of the portfolio of projects in 2020 in order to optimize
costs.




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

CARIBBEAN TRADING: Seeks to Hire Estrella as Bankruptcy Counsel
---------------------------------------------------------------
Caribbean Trading Company, Inc. seeks approval from the U.S.
Bankruptcy Court for the District of Puerto Rico to hire Estrella
LLC as its bankruptcy counsel.

The services to be rendered by the firm are as follows:

  a. prepare bankruptcy schedules, pleadings and applications,
     and conduct examinations incidental to any related
     proceedings or to the administration of the Debtor's Chapter
     11 case;

  b. advise the Debtor of its rights, duties, and obligations;

  c. advise and assist the Debtor in the formulation of a
     Chapter 11 plan;

  d. appear before the court;
   
  e. take necessary action incident to the proper preservation
     and administration of the case; and

  f. perform such other legal services for Debtor.

Estrella will be paid at $250 per hour for the work performed by
Carlos Infante Esq., plus work-related expenses.  The firm will
also be compensated for the work performed by other attorneys and
paralegals at the following rates:

     Members & Practice Leaders          $350 - $275 per hour
     Associates                          $250 - $200 per hour
     Paralegals                          $100 per hour

The firm received a sum of $8,000 as retainer fee.

Carlos Infante, Esq., a bankruptcy practice leader at Estrella,
disclosed in court filings that the firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.

The firm can be reached through:

     Carlos Infante, Esq.
     Estrella LLC
     P.O. Box 9023596
     San Juan, PR 00902-3596
     Telephone: (787) 977-5050
     Facsimile: (787) 977-5090
     Email: cinfante@estrellallc.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.
Judge Brian K. Tester oversees the case.  Estrella LLC is the
Debtor's legal counsel.


LBI MEDIA: Lenard Liberman Back, In Puerto Rico
-----------------------------------------------
Adam Jacobson of Radio+Television Business Report reports that in
October 2019, the end of LBI Media and associated entity Liberman
Broadcasting came, as LBI successfully completed a court-approved
reorganization plan and emerged from Chapter 11 bankruptcy. A fully
fresh start came for the company co-founded by Lenard Liberman, as
he was stripped of his CEO duties and replaced by Peter Markham
ahead of a wholesale company name change to Estrella Media.

Now, Liberman has returned as a broadcast station owner. And, it
involves La Isla del Encanto Puerto Rico and broker Kalil & Co.

It also involves Univision Holdings, which will soon see majority
ownership from private investment firm SearchLight Capital Partners
and ForgeLight, an operating and investment company focused on
media and consumer technology.

With the Univision transaction awaiting final regulatory approval,
Univision Puerto Rico -- a subsidiary of Univision Holdings -- is
being divested as part of the SearchLight/ForgeLight plan of action
as Univision's forthcoming owner.

The buyer is a new entity wholly controlled by Liberman taking the
name Liberman Media Group LLC. Its address reflects a non-descript
warehouse in Burbank, Calif., on a street known for various
production studios walking distance to Burbank Airport.

A 50-page asset purchase agreement dated August 24 was posted to
the FCC's CDBS on Wednesday (8/26). The total purchase price?
Officially, it is $1 million, with a $100,000 escrow payment made.

However, language in the agreement suggests that the purchase price
could inflate to roughly $2.5 million, given operating income and
expenses attributable to the stations.

Fred Kalil of Kalil & Co. served as the exclusive broker in this
transaction.

The properties Liberman is obtaining are:

  * WLII-11 in Caguas, with a signal covering the San Juan
    metropolitan area

  * WOLE-12 in Aguadilla, serving the western side of Puerto Rico

  * WSUR-9 in Ponce, which serves the southern side of Puerto Rico

  * W21CX-D, a digital translator in Mayaguez, in the southwest
    tip of Puerto Rico

WOLE and WSUR are full-time satellites of WLII, which was
"TeleOnce" from 1986 until Univision took control of the properties
in 2002, through a LMA with Raycom Media. A purchase came in 2005,
giving Univision ownership of WSUR and WLII. WOLE came in December
2018 in a $3.67 million transaction with Western Broadcasting
Corp.

As news of the purchase by Lenard Liberman reached Puerto Rico's
media leaders, questions immediately arose as to the value of the
transaction. One market veteran was shocked, noting that the
transaction should be between $20 million and $25 million. A source
close to the matter tells RBR+TVBR the deal was "very complicated,"
and involved four days of refining an agreement.

That said, another longtime Puerto Rico media figure points to the
decision by Univision Puerto Rico to cease local newscasts some
five years ago, putting its news efforts into WKAQ-AM 580. This,
the source said, resulted in a sharp revenue decline, with dollars
four-to-five times lower than they were some seven to eight years
ago.

Then, there is the U.S. Department of Justice. In order for
ForgeLight and Searchlight to complete its majority take of
Univision, it had to sell the Univision Puerto Rico TV station and
have a non-affiliated entity take possession of what would become
a
Univision network affiliate. The reason? ForgeLight and Searchlight
have attributable interest in Hemisphere Media Group, owner of
long-successful WAPA-4 in San Juan. ForgeLight/Searchlight also
have a stake in the island's major MVPD, Liberty, although that is
not a key factor tied to the Univision Puerto Rico divestment
need.

This explains why Univision is not retaining the Univision Puerto
Rico intellectual property and placing it on the other full-power
TV facility it owns in the U.S. commonwealth: WSTE-7, now branded
as "TeleIsla" and airing infomercials. Univision acquired that
property, once "SuperSiete" under Malrite Communications ownership,
in 2007 from then-owner Jerry Hartman.

WSTE will, thus, retain its current programming while Liberman will
now own Univision Puerto Rico via an affiliation agreement.

And, the continued ownership of WSTE suggests the Univision Radio
combo of Spanish Talk WKAQ-AM and Latin Top 40 WKAQ-FM "KQ105"
won't be changing anytime soon.

Meanwhile, what has Lenard Liberman been up to since his exit from
the company he once led?

He's leading Grupo Estrella LLC, which is very different from
Estrella Media, the company that succeeded LBI Media. It's a
financial services firm, offering lending services via
EstrellaCash.com.

And among the familiar faces pitching its services is Don Cheto the
longtime morning host at the radio station that launched LBI Media,
"Quo Buena" in Los Angeles.

Liberman confirmed via e-mail to RBR+TVBR that no programming
changes are in the works for WLII and its satellite siblings.
"Univision and UniM's are great networks and my particular
specialty in producing television programming fits nicely with the
Puerto Rico market," he said.

                        About LBI Media

Headquartered in Burbank, California, LBI Media --
http://www.lbimedia.com/-- is a national television and radio
broadcasting company that was co-founded in 1987 by Lenard
Liberman, LBI's chief executive officer, and his father Jose
Liberman, who immigrated to the United States from Mexico in 1946.
LBI is a national media company that owns or licenses 27
Spanish-language television stations and radio stations in the
United States, as well as EstrellaTV, a Spanish-language television
broadcast network.

LBI Media Inc and more than 15 of its affiliates filed for
bankruptcy protection (Bankr. D. Del. Case No. 18-12655) on Nov.
21, 2018.  

In the petition signed by CFO Brian Kei, the Debtors reported total
assets of $238.7 million and total liabilities of $532.9 million as
of June 30, 2018.

Richards Layton & Finger, P.A., and Weil, Gotshal & Manges LLP
serve as counsel to the Debtors. Guggenheim Securities LLC has been
tapped as investment banker, Alvarez & Marsal North America LLC as
financial advisor, and Epiq Corporate Restructuring LLC as claims
and noticing agent.

Andrew Vara, acting U.S. trustee for Region 3, on Dec. 6, 2018,
appointed five creditors to serve on the official committee of
unsecured creditors in the Chapter 11 cases of LBI Media, Inc. and
its affiliates.  The Committee tapped Squire Patton Boggs (US) LLP
as lead counsel, Bayard, P.A., as co-counsel, and Dundon Advisers
LLC as financial advisor.




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

TRINIDAD & TOBAGO: Has Growing Debt Amid Economic Woes & Pandemic
-----------------------------------------------------------------
Trinidad Express reports that the economic woes, exacerbated by the
global pandemic, have left Trinidad and Tobago (T&T) with a large
and growing debt load.  

This, as the Government was forced to finance escalating
expenditure in light of plunging revenue as domestic economic
activity fell with Covid-19-induced restrictions, according to
Trinidad Express.  Like many countries globally, Government has
been placed under severe fiscal pressure to prevent a full-blown
public health and economic crisis brought on by a pandemic that has
already taken over one million lives worldwide, the report notes.
Few countries had the fiscal space for this additional expenditure
and most developing countries, including T&T continue to experience
a lack of significant fiscal flexibility given persistent
shortfalls in revenues and long-standing debt overhang, the report
relates.

T&T's Government revenue closely mirrors the performance of
international energy prices with a fairly high correlation of 84
per cent since fiscal year (FY) 1999, the report recalls.  Not
surprising, as over that same period, oil revenue accounted for an
average of 34 per cent of current revenue, the report says.

The relationship between current expenditure and oil prices, while
positive, is slightly weaker, the report relates.  Relative to FY
2010, oil prices have fallen by close to 50 per cent which resulted
in a 24 per cent decline in current revenue, while during the same
time current expenditure actually increased by 25 per cent, the
report discloses.  However, with the tumble in oil prices which
began around 2014, fiscal consolidation efforts saw current
expenditure being cut by around 11 per cent - not sufficient to
offset the 36 per cent decline in current revenue, resulting in
consistent fiscal deficits, the report notes.

The fiscal account has been running consecutive shortfalls since FY
2011, well before global and domestic energy dynamics shifted,
adversely affecting Government's principal revenue stream, the
report relays.  The successive fiscal deficits over the years have
resulted in much larger funding needs, the report says.  The
Government has since utilised various sources to plug the
shortfall, through a combination of borrowing (domestic and
external), divestment of state assets, withdrawals from the
Heritage and Stabilisation Fund (HSF) and accessing bilateral and
multilateral concessional loans, the report notes.

Since FY 2014, the country's net public sector debt has more than
doubled, increasing from $70.3 billion or 39.8 per cent of GDP to
$121.1 billion or 81 per cent of GDP in FY 2020, the report relays.
During the same time, FY GDP declined by 15 per cent, moving from
$176.6 billion to $150 billion -twofold negative effect on the
debt/ GDP ratio, the report relays.  Net public sector debt
excludes Treasury Bills, Treasury Notes, Treasury Bonds and
Sterilized Bonds issued for Open Market Operations (OMOs). T&T's
total public sector debt is much higher - moving from $121 billion
in FY 2019 to $134.6 billion in FY 2020, the report notes.
Accordingly, the country's gross public sector now stands at 89.7
per cent of GDP, the report discloses.

Domestic debt accounts for a large chunk of net public sector debt
(73 per cent), while external debt represents the remaining 27 per
cent. However, the rate of growth for external debt far outpaces
that of domestic net public sector debt, the report relates.  By
the end of FY 2020, public sector external debt is expected to rise
to 21.5 per cent of GDP from 8.5 per cent in FY 2014, the report
says.

During FY 2020, Government issued 11 new bonds on the domestic
capital market totaling $11.8 billion, the report relays.  Further,
the Government issued a ten-year US$500 million bond at 4.5 per
cent on the international capital market, the report notes.

An additional $4.1 billion was accessed from multilateral and
bilateral sources, including the Andean Bank for Development, the
Export Finance and Insurance Corporation and the Inter-American
Development Bank, the report discloses.  Total Central Government
Debt Service is expected to increase by 58.8 per cent to $11.4
billion (close to 8 per cent of GDP) in FY 2020 relative to FY
2019; 74 per cent of which are principal repayments and the
remaining 26 per cent, interest payments, the report relates.

The Budget Statement for FY 2021 stated that $6 billion has been
allocated to support vulnerable households and businesses in light
of Covid-19 and so far $4 billion has been spent, the report notes.
According to the International Monetary Fund's Fiscal Monitor,
US$12 trillion in fiscal stimulus, together with unprecedented
monetary easing have helped to limit the impact of the pandemic
globally and urged that support must be maintained, the report
says.

However, the exceptional spending has come with a hefty price, with
global public sector debt soaring towards 100 per cent of GDP in
2020, the report relays.  The IMF also spoke to the role of public
investment in supporting an economic recovery, the report
discloses.

A study conducted by the Fund showed that public investment can
have a powerful impact on GDP growth and employment during periods
of high uncertainty for both advanced economies as well as
developing economies such as T&T, the report relays.

As T&T manoeuvres a recovery under very tight fiscal constraints
and a mounting debt load, there should be extra consideration to
ensure that policy choices have sustainable effects on both growth
and employment, the report discloses.  There is also the need for a
stringent medium term fiscal strategy governed by fiscal rules to
ensure that fiscal flexibility improves over the coming years, the
report says.



                           *********


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

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

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

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