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

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

          Wednesday, October 28, 2020, Vol. 21, No. 216

                           Headlines



A R G E N T I N A

IRSA INVERSIONES: S&P Cuts ICR to 'CC' on Announced Debt Exchange


B R A Z I L

FS AGRISOLUTIONS: Fitch Affirms BB- LT IDRs, Outlook Stable


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Urged by IDB to Take Competitive Edges


E C U A D O R

ECUADOR: Earns Praises for Bonds Restructuring


J A M A I C A

TREE OF KNOWLEDGE: Gets Suspended for Late Submission of Results


M E X I C O

TOTAL PLAY: Fitch Assigns BB LongTerm IDRs, Outlook Stable


P U E R T O   R I C O

ENRIQUE RODRIGUEZ NARVAEZ: Velez Buying Guayama Property for $190K


V E N E Z U E L A

PETROLEOS DE VENEZUELA: PDV Holding Sues US, Demands $640MM Refund

                           - - - - -


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A R G E N T I N A
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IRSA INVERSIONES: S&P Cuts ICR to 'CC' on Announced Debt Exchange
-----------------------------------------------------------------
S&P Global Ratings, on Oct. 26, 2020, downgraded Argentina-based
real estate company, IRSA Inversiones y Representaciones S.A.
(IRSA), to 'CC' from 'CCC-'.

The negative outlook reflects the probability of a further
downgrade in the next few weeks if the exchange offer materializes
under the currently analyzed terms and conditions.

On Sept. 15, 2020, Argentina's central bank tightened regulations
on accessing foreign exchange (FX) to protect the country's
international reserves. For corporate entities with monthly
principal payments of more than $1 million in the next six months,
the new restrictions appear to limit access to FX at the official
rate to 40% of this principal coming due. The balance is to be
refinanced in some other manner - either a restructuring, exchange
or using funds held abroad. Some weeks after this announcement, the
central bank provided for additional flexibility by allowing
corporations to access the foreign market up to 30 days in advance
of financial debt maturities.

The downgrade of IRSA reflects S&P views of the announced exchange
offer as a de facto restructuring, tantamount to a default. This is
despite the offer including a down payment and a proposal to
exchange the remaining portion at par and keeping the interest
rate. In its opinion, there's a possibility of a conventional
default on IRSA's November 2020 notes if the exchange offer isn't
accepted. However, regardless of the central bank's new
regulations, the company's cash position as of June 30, 2020,
including improved liquidity through asset sales and local bond
issuances, wouldn't be enough to meet in full the bullet maturity
in November 2020 without refinancing a portion of the bond amid the
country's currently volatile economic conditions.

According to the subscription notice, the company intends to offer
a combination of cash for at least 40% of the outstanding notes and
two tranches of new senior unsecured notes for the remaining
portion. The new series VIII notes have annual amortization with
final maturity within three years, and Series IX will have bullet
amortization in March 2023. Both will bear 10% fixed interst rate.
The Class IX notes include an early tender premium of 2 cents for
each $1 tendered. The offering changes the original terms and
conditions, extending debt amortization, which in S&P's view is
tantamount to a default in light of growing country risk in
Argentina.




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B R A Z I L
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FS AGRISOLUTIONS: Fitch Affirms BB- LT IDRs, Outlook Stable
-----------------------------------------------------------
Fitch Ratings has affirmed FS Agrisolutions Industria de
Biocombustiveis Ltda's (FS Bioenergia) 'BB-' Long-Term Local and
Foreign Currency Issuer Default Ratings (IDRs) and 'A+(bra)'
National Long-Term Rating. The Rating Outlook is Stable. In
addition, Fitch has affirmed the 'BB-' rating for the proposed
senior unsecured notes to be issued by FS Bioenergia's fully-owned
FS Luxembourg S.a r.l, and irrevocably and unconditionally
guaranteed by FS Bioenergi. Fitch has chosen to withdraw the
ratings for commercial reasons.

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

Fitch's expects FS Bioenergia to generate EBITDA of BRL969 million
in the fiscal 2021 and positive FCF from fiscal 2022 and beyond as
capacity expansions come online, allowing rapid deleveraging over
the next three years, improving liquidity and lengthening debt
maturity profile. FS Bioenergia's large FX exposure is incorporated
in the analysis, and the ratings also incorporate the successful
issuance of new debt, extending debt amortization profile

Fitch has chosen to withdraw the ratings for commercial reasons

KEY RATING DRIVERS

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

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

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

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

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

Fast Deleveraging Going Forward: FS Bioenergia's strong FCF
generation will result in quick deleveraging. Fitch forecasts net
debt/EBITDA to decline to 3.0x in fiscal 2021 and 1.8x in fiscal
2022, comparing favorably with 5.5x at the end of fiscal year-end,
March 31, 2020. Currently, FS Bioenergia is largely financed with
U.S. dollar-denominated debt, while the pure correlation of ethanol
prices and FX rate is typically weak. As of 1Q21, 88% of FS
Bioenergia's debt was U.S. dollar-denominated with revenues fully
denominated in Brazilian reals. The company's challenge is to
continue diversifying its funding sources, and increase its debt
maturity profile. Currently, FS Bioenergia's bank credit facilities
are focused on inventories-backed, high cost, short-term debt.

DERIVATION SUMMARY

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

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

KEY ASSUMPTIONS

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

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

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

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

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

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

RATING SENSITIVITIES

Rating sensitivities are not applicable as the ratings are being
withdrawn

LIQUIDITY AND DEBT STRUCTURE

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

SUMMARY OF FINANCIAL ADJUSTMENTS

Net derivatives balances have been included as debt.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING

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

ESG CONSIDERATIONS

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.



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

DOMINICAN REPUBLIC: Urged by IDB to Take Competitive Edges
----------------------------------------------------------
Dominican Today reports that the Inter-American Development Bank
(IDB) proposes the Dominican Republic to take advantage of
competitive edges to attract investments.

The current juncture where supply chains are being reconfigured has
prompted an increase in companies' present and future investment
plans, given that 55% of new projects in the United States, Canada,
and Europe have restarted the search for new markets, while 52% of
executives are reportedly modifying their supply chains.

These figures were offered by the Chief of the Trade and Investment
Division of the Inter-American Development Bank (IDB), who
participated as a speaker on the topic "Challenges and
Opportunities of Global Nearshoring," which took place during the
celebration of the 28th edition of Dominican Week in the United
States.

Jaime Granados considered that the Dominican Republic has
comparative advantages in various products exported by China but
must concentrate on exports and investments in products and
services of more excellent added value in promoting more
significant linkages between small and medium enterprises free
zones, as well as emphasizing the technological variable.

He revealed that there are multiple opportunities with the
regionalization and reconfiguration of supply chains and the
expansion and diversification of the value chain based on suppliers
in the context, but there must be a decision to take advantage of
them from a joint effort between the public and private sectors.

"Investment firms will determine the level of risk they want to
assume, but they will seek to generate an adequate business
environment where they invest and will analyze the public policies
established in the country that interests them," he said.

During his presentation, he reviewed the history of the global
dynamics of international trade and value chains, where he noted
that companies went from fragmenting their production of goods with
offshoring and outsourcing to bringing them back to their countries
of origin (re-shoring) or placing them in nearby markets
(nearshoring).

The virtual event, which took place within the celebration of the
28th edition of Dominican Week in the United States, was moderated
by Steven Puig. He stated that in the context imposed by the
COVID-19, it is imperative and urgent to take advantage of
Nearshoring opportunities to boost trade with the United States.

Before Jaime Granados' presentation, Carlos Pared Vidal, Executive
Director for the Dominican Republic at the IDB, referred to the
support of that organization to promote an inclusive growth pattern
that allows for a sustained reduction in poverty levels.

"U.S. Foreign Policy would remain unchanged against China"

Regardless of which party wins the U.S. presidential election next
November, U.S. foreign policy towards China will not undergo major
changes. The experts who participated in the conference: "U.S.
Foreign Policy: Trump vs. Biden," which took place within the
framework of the 28th edition of Dominican Week, agreed on this
approach.

Michael Schiffer, president of the Inter-American Dialogue in
Washington, assured in the virtual meeting that if Donald Trump
wins the presidency, his foreign policy would remain focused on
issues such as migration, drug trafficking and Venezuela; while he
projects that Joe Biden would have more sensitivity towards the
region, would handle himself with more diplomacy and would place
more emphasis on climate change.

"If Trump is re-elected, there will be no different agenda. With
Biden, things would change, and they would have a more diplomatic
and cooperative approach, but he does agree that both will seek to
lower China's influence, albeit in different styles," Schiffer
said.

While Claudio Loser, director, and CEO of Centennial Group and
former director of the International Monetary Fund for the
Americas, said that the reconfiguration of the supply chain that
has taken place after the conflict between the U.S. and China will
have a positive impact on the region.

"The COVID has led to a change in the value chain that integrated
the world. What has remained is that disruption was so strong that
it would have a positive impact on the countries that have trade
relations with the United States," said Loser.

Before the end of the event, William Malamud, executive vice
president of AMCHAMDR, indicated that the world is living through
challenging times. It is necessary to maintain fiscal discipline
and insisted on taking advantage of the opportunities derived from
the reconfiguration of the supply chains.

The panel was composed of Michael Schiffer, president of the
Inter-American Dialogue in Washington, Claudio Loser, director and
CEO of Centennial Group and former director of the International
Monetary Fund for the Americas, Juan Hidalgo, an expert in Public
Policy and International Trade. It was moderated by Willie Lora,
president and founder of Lora Media Consulting.

Dominican Week, an event that promotes the business climate and
investments to impact the development and competitiveness between
the Dominican Republic and the United States, is being held for the
first time in an online format.

Dominican Week 2020 has the support of the companies that make up
the Elite Circle of AMCHAMDR: Barrick Pueblo Viejo, Citi, Haina
International Terminals, Inicia, Pasteurizadora Rica, Squire Patton
Boggs, Marti and Grupo Viamar. In addition, the event is sponsored
by: Banreservas, Compañía de Electricidad San Pedro de Macorís
(CESPM), Interenergy Group, Banco Popular, Pellerano Nadal Law &
Consulting, Banco BHD-Leon, PIISA Industrial Park, Barcelo, Cortes
Hermanos, Alvarez & Sanchez, Hanes Brands, Inc, Altice, NAP del
Caribe, Central Romana Corporation, COSTASUR Casa de Campo, IQ Tech
and CARDNET.

                     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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E C U A D O R
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ECUADOR: Earns Praises for Bonds Restructuring
----------------------------------------------
globalinsolvency.com reports that countries do not usually gain
friends when telling creditors they can't pay them back.

Yet Ecuador earned serious plaudits as it went about restructuring
$17.4 billion of bonds this year, GlobalCapital reported, the
report relays.

The Ad Hoc Bondholder Group that owned more than half of the
sovereign's bonds even said that the process "set a precedent" for
Covid-19 era restructurings, the report notes.

Jan Dehn, head of research at Ashmore, part of the Ad Hoc group,
explains that on one hand the group was referring to modifications
in collective actions clauses that some creditors hope will become
standard practice, the report relays.  Second, says Dehn, "Ecuador
had one of the most mature approaches ever to a restructuring . . .
.  There was a very honest, realistic assessment of the inability
to pay owing to the oil price collapse, Covid, and an extraordinary
sell-off in external debt," the report notes.




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J A M A I C A
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TREE OF KNOWLEDGE: Gets Suspended for Late Submission of Results
----------------------------------------------------------------
Jamaica Observer reports that the Jamaica Stock Exchange (JSE) has
suspended shares of Tree of Knowledge International Corporation
(TOKI) for failure to file the company's second quarter financial
statements for the period ended June 30, 2020, effective October
16.

According to JSE, several correspondence and telephone
communications were made with the company to address the overdue
financial statements, the report notes.

"The decision to suspend TOKI is based on the fact that the company
has breached Rule 407 -- Quarterly Financial Statements -- which
states 'Companies with quarterly financial statements which are 45
days overdue shall have trading in their shares suspended until the
reports are submitted to the JSE'," the stock exchange said in a
statement posted on its website, according to Jamaica Observer.

"The company has also failed to provide, in accordance with the JSE
Rule Appendix 8, Policy Statement on Timely Disclosure, as it
pertains to management and board changes since its listing on the
JSE, which should include the effective date of resignations and
appointments, and the current composition of its audit committee,"
the report relays.

JSE further stated that TOKI should address all matters mentioned
above before the suspension is lifted, the report discloses.

Tree of Knowledge International Corp, formerly Courtland Capital
Inc, is a Canada-based company that produces and sells hemp-based
cannabidiol products in certain jurisdictions in the US, Europe,
South America, and China, the report says.

The medical cannabis company is the first of its kind to be listed
on JSE, and the first to be cross-listed between the Canadian
Securities Exchange and JSE, the report adds.

                       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.




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M E X I C O
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TOTAL PLAY: Fitch Assigns BB LongTerm IDRs, Outlook Stable
----------------------------------------------------------
Fitch Ratings has assigned Total Play Telecomunicaciones S.A. de
C.V. (Total Play) Long-Term Foreign and Local Currency Issuer
Default Ratings (IDRs) of 'BB-'/Outlook Stable. In addition, Fitch
has assigned a 'BB-' rating to the company's proposed senior
unsecured notes issuance of up to USD500 million. The proceeds from
the issuance will be used to refinance existing debt and to fund
expansion plans.

Total Play's ratings reflect its triple play service offering
through its competitive Fiber to the Home (FTTH) network. The
company benefits from the stable and recurrent revenue of the
Pay-TV and broadband business. Total Play has rapidly increased its
subscribers base maintaining a higher ARPU than its competitors due
to a higher value service offering. Fitch believes the telecom
sector will be more resilient to a downturn from the coronavirus
pandemic than other sectors given that the social distancing and
stay-at-home measures implemented by the authorities have increased
the demand for home packages of video, voice and broadband
services. The ratings are tempered by its high leverage, as well as
lower scale, market share and diversification relative to
investment grade peers. Fitch forecast Total Play's negative FCF
generation will remain uncurbed at least for the short term as the
company completes its expansion plan.

In Fitch's view, the issuance of the up to USD500 senior notes
could significantly extend the company's debt maturity profile; it
also improves its current capital structure by decreasing the
percentage of secured debt by accounts receivables. After the
issuance of the notes, approximately 62% of the revenues will not
flow through the trusts that service the debt secured by
receivables, and this percentage is expected to grow over time as
Total Play adds subscribers. The notes will be guaranteed by its
subsidiary Total Box, S.A. de C.V.

KEY RATING DRIVERS

Profitability Improvement: Total Play has made extensive network
investments in the last four years that have increased its homes
passed, business scale and profitability. The company will continue
its expansion plan for the next two years. Last twelve months (LTM)
as of June 2020, the EBITDA margin increased to 36% from 22% in
2017. The low penetration rates in Mexico compared with other
countries of Pay-Tv 58%, Broadband 55% and Telephony 63%, according
to the IFT as of December 2019, translates into growth
opportunities for the company. Total Play's's strategy of cross
selling telecom services and enhancing the attractiveness of its
cable and internet packages should lead to improved margins over
the medium term.

Service and Customer diversification: Total Play has a balanced
revenue mix and customer and service diversification. At YE2019,
67% of the company's revenue comes from the residential segment and
32% from the Enterprise segment. Around 64% of the residential
revenue comes from triple play packages while in the enterprise
segment 56% of the revenue comes from corporative clients while 44%
comes from government entities. The company has rapidly growth it's
RGU of its residential segment from 1.4 million RGU at YE2016 to
4.9 million as of June 2020.

Improving Scale: Total Play has managed to maintain a strong growth
despite operating in a competitive industry. During the last three
years, the company has tripled its RGU while maintaining a higher
ARPU than its competitors due to its higher value service offering.
Additionally, Total Play has increased its home passed from 5.1
million in 2015 to 10.1 million as of June 2020. During the next
two years the company plans to increase the number of homes passed
to around 12.8 million. This will position the company as an
important player in the industry in terms of network coverage and
should improve its market share in the near term. A key factor to
improving revenues and cash flow is to monetize its Fiber Optic
deployment by increasing its customer penetration. Total Play's
penetration rate is expected to end 2020 at around 22%, which is
lower than those of its peers. The company's strategy to face its
competition has been to offer differentiated services. As of June
2020, 100% of the company's network is fiber optic; this allows it
to offer a better experience with faster star-up times and superior
image quality.

Residential Services Increased Due to the Coronavirus: Lockdown
measures implemented by the Mexican authorities during the
coronavirus pandemic increased the demand of video and broadband.
For the first six months of 2020 the subscribers increased 26% to
slightly below 1.9 million. The integrated nature of the cable
packages of video, voice and broadband services in conjunction with
the low level of broadband access in Mexico could contain churn
levels during the pandemic and onwards; however, going forward, the
growing list of alternatives and low-cost streaming content options
in conjunction with the weakening in the economic environment could
accelerate churn.

Growing Stage Results in Negative FCF: Total Play's expected
addition of subscribers will result in negative FCF over the rating
horizon which is expected to be funded with internally generated
funds and with additional debt. Fitch expects the company will
reach its targeted network coverage of 12.8 million homes passed in
2022. Fitch projects the company's capital intensity measured by
capex/sales to remain around 50% in 2020 and 2021 which will
largely consume the projected cash flow from operations (CFFO). The
capital intensity ratio should start declining in 2023 at around
43% and to around 32% in 2024. Going forward, capex also should be
more aligned to the number of subscriber additions to its network.
Fitch does not expect any dividend payments in the short to medium
term.

High Leverage, Gradual Deleveraging: Fitch expects that Total Play
will increase its leverage ratio calculated as total debt/EBITDA
(Pre-IFRS16) at around 4.8x by YE2020 following the debt issuance
to fund its expansion plan. Nevertheless, operating margins should
continue to improve as the number of subscribers increases and
cable packages and other services are offered. For YE2021, Fitch
expects the company's leverage ratio to trend down to around 3.6x.
During the last four years, the continuous increase in EBITDA
generation has allowed the company to decrease its leverage level
calculated as total debt/EBITDA (Pre-IFRS16) LTM as of June 2020 to
3.6x vs 6.4x at YE 2017.

DERIVATION SUMMARY

Total Play's 'BB-' ratings reflect the company's weak market
position and small scale of operations versus its peers in the
rating category. This is somewhat offset by its improving operating
performance and capital structure, its network quality and the low
broadband penetration in Mexico of 55% (IFT as of December 2019).
Total Play's financial profile is stronger than WOM Mobile
(BB-/Stable). WOM, which also lacks of scale and leading market
positions, has a higher net leverage level of around 4.5x and lower
operating margins. Total Play's financial profile is deemed broadly
in line with VTR Finance (BB-/Stable), which is a leading Chilean
cable operator. VTR benefits from the Chilean operating environment
and its status as the largest broadband provider and pay TV
services with a subscriber market share of 38% and 34%,
respectively.

Total Play's business profile could be considered similar to Axtel
S.A.B. de C.V. (Axtel; BB-/Stable), in that both are small scale
and undiversified fixed-line providers. Compared with 'B' category
peer Liberty Cablevision of Puerto Rico (LCPR; B+/Stable); LCPR has
a stronger competitive position, due to its scale in its main
market which is offset by its higher leverage and its operating
environment.

KEY ASSUMPTIONS

  -- Revenue growth to continue at around 33% in 2020 and at
     around 26% in 2021 due to the company's expansion plan
     strategy;

  -- EBITDA margins of around 35% in 2020 slightly improving to
     36% in 2021;

  -- Capex to sales ratio to remain around 50% during 2020 and
     2021;

  -- Negative FCF generation in 2020-2022;

  -- No dividend payments.

RATING SENSITIVITIES

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

  -- Larger scale and market shar;

  -- Leverage level calculated as total debt/EBITDA (Pre-IFRS16)
     below 3.5x;

  -- Positive FCF generation thought the cycle;

  -- Liquidity Ratio calculated (Available cash + undrawn portion
     of committed facilities+ FCF)/ 12-month debt maturities
     consistently above 1x.

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

  -- Weak operating performance;

  -- Loss of market share;

  -- Debt funded acquisitions that change the company's capital
     structure;

  -- Leverage level above 5.0x on a sustained basis;

  -- Unfavorable regulatory changes.

LIQUIDITY AND DEBT STRUCTURE

Liquidity to Improve: Following the issuance of the senior
unsecured notes, Total Play is expected to improve its liquidity
position. Fitch views the issuance positively as it significantly
reduces near-term maturities and simplify its capital structure.
The company also will hedge the principal and coupon payments of
the U.S. dollar issuance to maintain aligned the company's cashflow
generation with its debt amortizations. Fitch assumes that the
company will use part of the proceeds to repay its current bank
loans.

ESG Considerations

Total Play has an Environmental, Social and Governance (ESG)
Relevance Score of '4' for Governance Structure, resulting from its
ownership concentration and the Grupo Salinas' aggressive treatment
toward different stakeholders and arrangements with related
companies that benefit shareholders but affect creditors'
interests. This has a negative impact on the credit profile and is
highly 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'. 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.




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

ENRIQUE RODRIGUEZ NARVAEZ: Velez Buying Guayama Property for $190K
------------------------------------------------------------------
Enrique Rodriguez Narvaez and Myrna Iris Rivera Ortiz asks the U.S.
Bankruptcy Court for the District of Puerto Rico to authorize the
sale of the real property located at Pedro Albizu Campos Avenue
corner Arnaldo Bristol Street St., Guayama, Puerto Rico, Registered
in the Public Registry of Guayama, Book 459 (Agoro), Page 157, 5th
inscription, Property no. 11592, Property Identification
420-071-477-60-000, to Carlos R. Garcia Velez for $190,000.

The property is valued at $200,000.  The Debtors received an offer
from the Buyer to purchase through a letter of the offer.

As per CRIM's certification, the Debtors owe the amount of $0.  The
amount received after deductions from the sale will be used to make
a payment to the Chapter 11 Plan.  The closing costs will be paid
by both parties.

The offer is made so that the sale will transfer the property free
and clear of any liens.  

The Debtors ask that the sale of the property be approved.

The Notice of the sale is given to all parties in interest and
unless any objection is received in the next 21 days the Court may
approve the same without any need of a hearing.  

A copy of the Offer is available at https://tinyurl.com/yacv28zn
from PacerMonitor.com free of charge.

              About Enrique Rodriguez Narvaez and
                      Myrna Iris Rivera Ortiz

Enrique Rodriguez Narvaez and Myrna Iris Rivera Ortiz was engaged
in the development and construction business in Puerto Rico.  Mrs.
Ortiz is a housewife.  During many years, Mr. Rodriguez acquired
and developed many lots of land.  The Debtors filed for Chapter 11
bankruptcy protection (Bankr. D.P.R. Case No. 18-02044-EAG) on
April 16, 2018.




=================
V E N E Z U E L A
=================

PETROLEOS DE VENEZUELA: PDV Holding Sues US, Demands $640MM Refund
------------------------------------------------------------------
The Latin American Herald, citing Bloomberg News, reports that PDV
Holding Inc., an offshoot of state-owned oil company Petroleos de
Venezuela (PDVSA) incorporated in Delaware and headquartered in
Texas, filed a lawsuit against the US in a bid to recover more than
$640 million in special taxes it allegedly paid for green fuels.

The PDVSA unit claims that it wrongly calculated the fiscal credits
and paid in excess from 2005-2011, according to The Latin American
Herald.

PDV Holding, also the indirect sole stockholder of CITGO Petroleum
Corporation, said it filed the lawsuit before a Houston federal
court, recalculated the bill, and requested a refund while PDVSA
assured that the Internal Revenue Service (IRS) rejected the claim,
the report relays.

According to PDV, other energy companies, including ExxonMobil, ETC
Sunoco, and Delek US Holdings, have filed similar tax refund claims
throughout several jurisdictions obtaining mixed results, the
report notes.

The lawsuit comes at a time when CITGO has been severely affected
due to the low demand for its fossil fuels after the economic
impact of the COVID-19 pandemic, the report relates.  At the same
time, a CITGO refinery in Lake Charles, Louisiana, was damaged
after the landfall of Hurricane Delta along the US Gulf Coast early
this month and it is currently struggling to restart, the report
says.

The IRS did not reply immediately to an email requesting comments
regarding the lawsuit.

The case is PDV Holding Inc. v. US, 20-3621, US District Court,
Southern District of Texas (Houston).

                         About PDVSA

Founded in 1976, Petroleos de Venezuela, S.A. (PDVSA) is the
Venezuelan state-owned oil and natural gas company, which engages
in exploration, production, refining and exporting oil as well as
exploration and production of natural gas.  It employs around
70,000 people and reported $48 billion in revenues in 2016.

In May 2019, Moody's Investors Service withdrew all the ratings of
Petroleos de Venezuela, S.A. including the senior unsecured and
senior secured ratings due to insufficient information. At the time
of withdrawal, the ratings were C and the outlook was stable.

Citgo Petroleum Corporation (CITGO) is Venezuela's main foreign
asset.  CITGO is majority-owned by PDVSA.  CITGO is a United
States-based refiner, transporter and marketer of transportation
fuels, lubricants, petrochemicals and other industrial products.

However, CITGO formally cut ties with PDVSA at about February 2019
after U.S. sanctions were imposed on PDVSA.  The sanctions are
designed to curb oil revenues to the administration of President
Nicolas Maduro and support for the Juan Guaido-headed party.



                           *********


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
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Chapman, Editors.

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