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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

          Friday, October 30, 2020, Vol. 21, No. 218

                           Headlines



A R G E N T I N A

ARGENTINA: Bondholders Accuse Government of Undermining Recovery


B R A Z I L

BR MALLS: Fitch Affirms 'BB' Foreign Currency IDR, Outlook Negative
BRAZIL: Coronavirus Splurge Triggers Rebellion in Markets
VOTORANTIM SA: Moody's Affirms Ba1 Rating on $241MM Unsec. Notes
VOTORANTIM SA: Moody's Alters Outlook on Ba1 CFR to Stable


J A M A I C A

JAMAICA: Decision on Food Operators to be Made Next Month


M E X I C O

PETROLEOS MEXICANOS: Posts $26.3BB Net Loss for Jan.-Sept. Period


P U E R T O   R I C O

ALLIED FINANCIAL: Barreto Buying Aguadilla Property for $34,000

                           - - - - -


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A R G E N T I N A
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ARGENTINA: Bondholders Accuse Government of Undermining Recovery
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globalinsolvency.com, citing the Financial Times, reports that some
of Argentina's biggest bondholders have issued a sharp rebuke to
the government over its handling of the country's deteriorating
economic situation, just a few months after reaching a compromise
to restructure $65 billion worth of debt.

In a statement released, two creditor groups at the heart of the
recent negotiations to resolve Argentina's unsustainable debt
burden accused the government of putting forward policies that
"undermine" its own economic recovery, such as its recent decision
to tighten capital controls, according to globalinsolvency.com.

They also called into question whether "their sacrifices to provide
a debt structure Argentina is capable of servicing were essentially
meaningless," the report notes.

                        About Argentina

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

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

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

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

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

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

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




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B R A Z I L
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BR MALLS: Fitch Affirms 'BB' Foreign Currency IDR, Outlook Negative
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Fitch Ratings has affirmed BR Malls Participacoes S.A.'s
Local-Currency (LC) Issuer Default Rating (IDR) at 'BBB-' and
National long-term rating at 'AAA(bra)'. In addition, Fitch has
affirmed BR Malls' local debentures at 'AAA(bra)' and Long-Term
Foreign Currency (FC) IDR at 'BB'. The Rating Outlook for the
National long-term rating is Stable. The Rating Outlook for LC and
FC IDRs is Negative.

BR Malls' ratings remain supported by its business position, which
has been tested in prior scenarios of deep economic recession. The
rating affirmation reflects BR Malls' capital structure and the
maintenance of solid liquidity and robust levels of high-quality
unencumbered assets. At the start of the pandemic, BR Malls had
strong financial flexibility and liquidity, including no material
debt maturities until 2022, and BRL1.2 billion in readily available
cash as of June 30, 2020.

The company's ratings incorporate a temporary increase in financial
leverage -- measured as net debt to EBITDA ratio -- in 2020 at
around 5x, and the return of this indicator to levels around 3x in
2021. Fitch's rating scenario considers a gradual resumption of
economic activity during 2H2020, and consolidated through 2021.
However, the speed of this recovery is still uncertain and in a
scenario of slower revenue recovery, BR Malls has the flexibility
to adjust capital expenditures. In Fitch's view, management remains
committed to its long-term leverage target (Net Debt to EBITDA
ratio) of around 3x.

The Stable Outlook for the National long-term rating reflects Fitch
expectations that BR Malls' solid liquidity position provides the
company the capacity to absorb the downturn in operating cash flow
during current pandemic. In Fitch's view, BR Malls' strong credit
profile should not be materially affected by the coronavirus
pandemic, despite the significant operational cash flow reduction
expected in 2020. The agency believes that the long-term
fundamentals of the Brazilian shopping mall industry remain in
place, although temporarily weakened throughout this year.

The Negative Outlook for LC and FC IDRs reflects BR Malls' exposure
to Brazil's Country Ceiling and direct linkage to the country's
sovereign ratings. BR Malls' Long-Term FC IDR is constrained at
'BB'/Negative Outlook by the Country Ceiling assigned to Brazil
(BB), which incorporates the transfer and convertibility risk (T&C
risk) associated to BR Malls' operations.

KEY RATING DRIVERS

Sharp Decline in 2Q20 Performance: The pandemic crisis led to the
temporary closure of shopping malls in Brazil for about ninety
days; only essential businesses remained open during this period.
As a result of pandemic related restrictions on the malls'
activities, the company experienced a sharp drop in revenue during
2Q20. The company's net revenue in 2Q20 was BRL186 million,
representing a drop of 38.8% from 2Q19 levels. This figure includes
declines in rent, parking, and services income levels by 29%, 90.6%
and 31.8%, respectively, during 2Q20 compared to 2Q19. BR Malls'
consolidated same-stores sales decreases by 71.1% in 2Q20 versus
2Q19. The company's sales and rent per square meter (m2) declined
by 64.1% and 23.9%, respectively, during 2Q20 versus the average
levels of the second quarters during 2017-2019 period (2Q17-2Q19).

Occupancy Remains Stable, Slow Recovery Expected: Despite the
pandemic crisis, BR Malls has maintained stable levels of
occupancy. The company followed a strategy aimed at making
conditions more flexible for tenants. The company's actions to
counterbalance the effect of the current health crisis included
facilitating aid to tenants in terms of rent deferrals and
discounts. As of June 30, 2020, BR Malls' portfolio was
approximately 96.2% occupied versus 95.7% during 2Q17-2Q19. Fitch's
baseline scenario considered the temporary closure of the malls in
the second quarter of 2020, with a gradual resumption of operations
from mid-June. Fitch expects to see a gradual improvement in BR
Malls' sales and traffic, which are highly correlated with the
opening hours for malls during 2H2020. Despite some restrictions,
all the company's malls are currently open.

Recurring Lockdowns Unlikely: Fitch expects a recovery in BR Malls'
revenue in 2021, but below 2019 levels. Delays in coronavirus
containment could extend these estimates beyond 2021. Fitch
believes a second wave of the pandemic resulting in reinstated
national lockdowns, could severely affect the sector. In this
scenario, malls companies could start facing more pressure in their
liquidity positions, driven by a sharper EBITDA downturn. However,
Fitch has not considering a second national lockdown wave in Brazil
in its base case, as the agency believes this has low probability
of occurrence, given the negative major impact such a scenario
would have on the Brazilian economy. Fitch recently revised
Brazil's forecast upward to reflect a decline of 5.8% versus the
prior 7.0% decline, as consumer and business confidence began to
recover and fiscal stimulus prevented a sharper downturn. Fitch
currently forecasts the Brazilian economy to grow 3.2% in 2021.

Adequate Liquidity Provides Financial Flexibility: BR Malls'
ratings factor in its adequate financial flexibility and a
resilient business model that has faced increased downside risks
from the economic implications of the coronavirus pandemic during
2020. Fitch believes the company has adequate liquidity and healthy
financial flexibility. This view is supported by BR Malls' cash
position, manageable debt payment maturity schedule during
2020-2022; adequate interest coverage ratio levels and a
significant unencumbered asset base. The company's readily
available cash and short-term debt were BRL1.2 billion and BRL336
million, respectively, as of June 30, 2020. Fitch expects BR Malls'
net interest coverage to remain healthy around 2x in 2020, and
increasing around 3.5x during 2021-2022.

The company's total assets value is estimated at BRL16.3 billion
(USD 3 billion), with unencumbered and encumbered assets
representing approximately 75% and 25%, respectively, and resulting
in a low net loan-to-value ratio of 16.6% as of June 30, 2020. The
company maintains an important unencumbered assets base with an
estimated market value of BRL 12.2 billion (USD2.2 billion),
representing 8.2x and 40.9x of unsecured debt and unsecured net
debt, respectively, as of June 30, 2020. BR Malls eliminated its FX
risk exposure as it paid off its USD-denominated perpetual bonds
during 2017.

Temporary Leverage Deterioration Incorporated: BR Malls presents
conservative credit indicators and, historically, has kept its
leverage at reduced levels. The company's total debt as of June 30,
2020, was BRL3.9 billion, which includes liabilities payables for
shopping mall acquisitions. The company's net financial leverage,
measured as total net debt to EBITDA was 4.4x for the period LTM
June 2020.

Fitch's base scenario considers the temporary increase in the
company's net leverage ratio at levels above the rating downgrade
trigger in 2020, due to the reduction in EBITDA, and an important
recovery in 2021. The agency's projections indicate a net
debt/EBITDA ratio of 5x at the end of 2020, compared to 2.5x in
2019, down to levels close to 3.0x in 2021. The company's cash flow
generation, measured as EBITDA, for fiscal 2019 and LTM June were
BRL969 million and BRL 618 million, respectively. The agency
expects the company's fiscal 2020 EBITDA to be around BRL560
million, a 42% decline over 2019. Fitch also incorporates in its
base case the expectation for a recovery in BR Malls' 2021 EBITDA
to levels around BRL 800 million, and continued recovery taking
place during the 2022-2023 period.

Ratings Factor Strong Business Position: BR Malls has a strong
business position. The company is one of the largest Brazilian
shopping center operators, holds an interest in 31 malls with a
total gross leasable area (GLA) of 1,197.6 thousand square meters,
and, as of June 30, 2020, owns a GLA of 813.0 thousand square
meters itself. BR Malls operates in all five regions of Brazil, and
its top 15 malls represent approximately 75% of its total net
operating income (NOI). The company's relatively high degree of
property concentration is like most of the top main local and
regional players. BR Malls' asset concentration risk is mitigated
by its proven capacity to maintain stable results, even during
scenarios of different economic cycles. Fitch views the company's
business position as sustainable over the medium term.

Sector's Midterm Fundamentals Unchanged: The potential structural
changes in the business model of shopping malls in Brazil are still
uncertain. The pandemic is accelerating the process of
re-engineering retail and the role of physical stores globally, and
shopping malls will need to participate in this transformation to
remain relevant in the long run. Contrary to what has been observed
in developed markets, where malls have been experiencing a
reduction in their activities in recent years, the sector has shown
a positive trajectory in Brazil, and Fitch believes that the
long-term fundamentals of the industry remain preserved, even if
they weaken temporarily throughout 2020. Fitch views business
fundamentals for BR Malls and top players in the Brazilian shopping
mall industry as solid, as most of the operators in the segment
rated by Fitch have been able to maintain adequate credit quality
throughout the negative business environment of recent years.

DERIVATION SUMMARY

BR Malls' ratings reflect its solid business position as one of the
largest mall operators in Brazil, low financial leverage, no FX
risk exposure, and adequate liquidity coupled with high financial
flexibility resulting from its important unencumbered assets base.
The ratings also reflect an experienced and well positioned
shopping mall operator with adequate portfolio granularity, limited
tenant concentration, consistent occupancy levels around 95%, lease
duration between four to six years, and adequate source of capital
with the scale necessary to be a meaningful issuer in the debt and
equity capital markets, which are comparable attributes with other
rated entities in Latin America.

The company's 'BBB-' LC IDR and 'AAA(bra)' National ratings also
factor in the company's credit profile, which is viewed as
well-positioned relative to local, regional and global peers for
each major comparative. BR Malls' Long-Term FC IDR is constrained
at 'BB'/Negative Outlook by Brazil's 'BB' Country Ceiling, which
incorporates the transfer and convertibility risk (T&C Risk)
associated with BR Malls' operations, as the company's operations
are essential in Brazil and it does not have substantial assets or
cash held abroad to help mitigate T&C risk. Absent this rating
constraint, BR Malls' Long-Term FC IDR could be above its current
level.

Relative to Brazilian peers, BR Malls' 'AAA(bra)' National
long-term rating is at the same level of its national peers
Multiplan Empreendimentos Imobiliarios S.A. (Multiplan;
AAA(bra)/Stable), Iguatemi Shopping Center S.A. (Iguatemi;
AAA(bra)/Stable); and Aliansce Sonae Shopping Centers S.A.
(Aliansce Sonae; AAA(bra)/Stable). These four companies have a
conservative capital structure and high financial flexibility -
evidenced by low net financial leverage (net debt/EBITDA below
3.5x), adequate liquidity, low LTV ratios, high levels of
unencumbered assets and strong interest coverage ratios.

KEY ASSUMPTIONS

  -- Decline in revenues and EBITDA levels of approximately 30% and
40%, respectively, in 2020 versus 2019 levels;

  -- Recovery in revenues and EBITDA levels of approximately 28%
and 44%, respectively, in 2021 versus 2020;

  -- Occupancy levels around 95% during 2020-2021;

  -- EBITDA margin around 62% during 2020; and around 73% during
2021-2022;

  -- Net leverage ratio, measured as net debt to adjusted EBITDA
around 5x in 2020 and below 3.5x during 2021-2022;

  -- Net Interest coverage ratio, measured as adjusted EBITDA to
net cash interest paid, around 2.0x in 2020 and consistently around
3.5x during 2021-2022;

  -- Total unencumbered assets to unsecured debt ratio consistently
above 4.0x.

RATING SENSITIVITIES

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

  -- BR Malls' LT FC and LC IDRs could be positively affected by a
positive rating action on the sovereign rating of Brazil and/or an
upgrade of its Country Ceiling.

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

  -- BR Malls' LT FC IDR could be negatively affected by a negative
rating action on the sovereign rating of Brazil and/or a downgrade
of its Country Ceiling.

  -- BR Malls' LC IDR would be negatively affected by a negative
rating action on its LT FC IDR. Fitch expects to maintain a
difference of no more than two notches between BR Malls' LT FC and
LC IDRs.

  -- Fitch would also consider a negative rating action on BR
Malls' ratings if the company's financial profile deteriorates due
to some combination of the following: aggressive capex, adverse
macroeconomic trends leading to weaker credit metrics, significant
dividend distributions, and higher vacancy rates or deteriorating
lease conditions.

The following factors may also have a negative impact on BR Malls'
LC IDR and National-scale ratings:

  -- Net leverage consistently above 3.5x;

  -- Deterioration of the conditions of lease contracts, occupancy
rates and delinquency negatively affecting credit indicators;

  -- Interest coverage index, measured by EBITDA/interest paid,
consistently trending to levels below 2.5x;

  -- Substantially less financial flexibility due to the reduction
of unencumbered assets levels.

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.


BRAZIL: Coronavirus Splurge Triggers Rebellion in Markets
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Martha Viotti Beck and Andrew Rosati at Bloomberg News report that
President Jair Bolsonaro's stimulus spending spree won praise far
and wide for saving Brazilians from the worst of the pandemic's
economic pain.

But now, as the worst of the health crisis eases, anxiety is
mounting in financial circles about how he's going to pay for it,
according to Bloomberg News.  Investors have been unloading the
currency and stocks, sparking routs that are almost unparalleled in
the world this year, and they're increasingly refusing to buy
anything but the shortest of short-term government bonds, Bloomberg
News relays.

At $107 billion, Bolsonaro's relief program looks more like the
massive stimulus packages engineered by the world's wealthiest
nations than those cobbled together by Brazil's junk-rated peers in
emerging markets, Bloomberg News discloses.  Equal to 8.4% of the
country's annual economic output, it's even proportionally bigger
than the plans enacted by the U.K. and New Zealand, Bloomberg News
notes.

All of which turns Brazil into something of a Covid-19 economic
case study: Can a mid-tier developing nation emulate the fiscal and
monetary response of the world's most credit-worthy countries and
get away with it? Or will it sink into financial crisis?

Arminio Fraga, perhaps Brazil's most respected former central
banker, says a full-blown disaster is a very real possibility now,
Bloomberg News notes.  "I can see mature economies doing all kinds
of acrobatic moves with their central banks. That's fine, they
can," says Fraga, who helped stave off a debt default back in 1999
and today runs a hedge fund, Gavea Investimentos, in Rio de
Janeiro. "Here in Brazil, it's different. We have a lot of debt."

Of course, most rich countries have lots of debt too.  The
International Monetary Fund predicts that the U.S. and Canada will
end this year with debt-to-gross-domestic-product ratios above 100%
and says Japan's will soar to 266%, all well above the 95% ratio
that the Bolsonaro administration forecasts for year-end, Bloomberg
News discloses.  But Brazil, with its long history of defaults and
runaway inflation, doesn't have the hard-earned credibility in
markets that those countries have, Bloomberg News says.  Moreover,
the pace at which the debt ratio is climbing -- it's up 30
percentage points in the past five years alone -- alarms investors,
Bloomberg News relays.

Expectations for inflation in Brazil, while nothing even vaguely
resembling the hyper-inflationary years of the mid-1990s, are
climbing quickly amid concern that the government lacks the
political will to rein in spending, Bloomberg News discloses.

Amid the pandemic, other developing countries, like Peru and Chile,
actually produced more stimulus relative to the sizes of their
economies, but they enjoy investment-grade credit ratings and
started off with much smaller debtloads, Bloomberg News says.

                      Corona Vouchers

In Brazil, the lion's share of the stimulus -- some $57 billion --
was dedicated to monthly stipends for the poorest, who stayed fed
and kept spending as the economy was shrinking, Bloomberg News
relays.  The cash transfers, which came to be known as corona
vouchers, ultimately drove down poverty and sent Bolsonaro's
popularity soaring, Bloomberg News notes.  The IMF applauded the
response for averting a deeper economic downturn and stabilizing
financial markets, Bloomberg News relates.

What has economists wringing their hands is how the president, a
self-styled budget hawk, reconciles a record primary deficit with a
sudden desire to make part of the aid permanent after the stimulus
expires on Dec. 31, Bloomberg News relates.  The IMF officials, in
the same report praising the initial aid, cautioned that growing
levels of public debt represented a risk to Brazil, Bloomberg News
relays.

A primary budget gap estimated at 12.1% of GDP and growing doubts
about Bolsonaro's ability to find a way to pay for more social
spending have roiled markets, Bloomberg News notes.

The premium traders demand to hold longer-dated debt has soared
amid the increased risk, with swap rates expiring in about five
years at 6.82%, up from 5.39% in July, Bloomberg News discloses.
Brazil's real has tumbled almost 30% this year, dragging down
dollar-based returns for stocks, Bloomberg News relays.  The
currency, already under pressure as record low rates eroded its
carry trade appeal, has seen volatility soar as traders react to
headlines about government spending, Bloomberg News adds.

                       Breakeven Rates

Inflation expectations have also shot up, with investors now
pricing in annual price increases of 4.4% over the next decade, up
from 3.8% just 12 months earlier, Bloomberg News notes.

Perhaps the most ominous sign is the difficulty selling longer-term
debt, even as nations such as the U.S. flirt with the idea of
offering securities with maturities of 50 to 100 years, Bloomberg
News relays.  In Brazil, the average maturity of local government
bonds sold at auction was 2.36 years in August, down from 4.95
years a year earlier, Bloomberg News discloses.  Since then, the
move toward shorter-term notes has only grown, Bloomberg News
says.

In bond auctions so far this month, for example, six-month notes --
the shortest term available with a fixed rate -- accounted for 44%
of the fixed-rate debt sold, compared with just 11% during October
2019, Bloomberg News notes.

"Without reforms, it's possible that the country faces another
serious macroeconomic crisis," said Alberto Ramos, an economist at
Goldman Sachs Group Inc. in New York, Bloomberg News relays.  "High
government spending has been a problem for Brazil for decades.
Fiscal deterioration brought high inflation, low growth and the
need from IMF help in the past. Today, the situation is not
better."

                          Budget Deficit

The shift to selling shorter-term bonds in recent months stemmed
from investor concerns about the amount of public spending, Jose
Franco de Morais, the Treasury Department's public debt
subsecretary, acknowledged in an interview, Bloomberg News notes.
He expects things to normalize in coming months as investors gain
confidence that outlays will be reeled in.

But the problem investors have with Brazil is its track record of
excessive spending and allowing consumer-price increases to inflate
away its debt. Brazil has defaulted on its external debt nine times
since 1800, according to the book "This Time Is Different: Eight
Centuries of Financial Folly." That's tied for third-most globally
during that span, Bloomberg News relates.

The country defaulted in 1987 and wasn't able to resume payments
until 1994, a year when inflation peaked at 4,923%, Bloomberg News
notes.  During the 2008 financial crisis, Brazil pumped money into
public banks and reduced taxes to help dig its way out of
recession, Bloomberg News discloses.  But temporary relief turned
permanent, leading to budget deficits and eventual downgrades of
its debt, which ultimately cost the government billions in higher
borrowing costs, Bloomberg News says.

"Our own internal dynamics are unsustainable," Fraga said in an
interview. "The response has to be broad and deep and it has to
cover fiscal matters, which is difficult."

Almost a decade after the 2008 crisis, Bolsonaro's predecessor
instated constitutionally mandated spending ceiling to help regain
investor confidence, Bloomberg News notes.  But Congress gave
Bolsonaro a one-time pass to blow past it this year, and investors
are anxiously watching for signals he'll set the country back on
the road to fiscal stability, Bloomberg News adds.

                      Future Generations

"The spending cap is a symbol, a flag that some of us in the
trenches use to defend future generations," Economy Minister Paulo
Guedes said at an event this month. "We can't go on with
snowballing debt, high interest rates and high taxes," Bloomberg
News relays.

But so far it's hard to tell what Bolsonaro is planning.  His last
pitch to pay post-pandemic aid whipsawed markets last month,
leaving his own economic team to run damage control on growing
concerns that the commitment to spending limits isn't serious,
Bloomberg News notes.

He since shelved future discussions until after next month's
municipal elections, leaving him with just a short window to hammer
out a deal between when the polls close and the new year begins,
Bloomberg News discloses.

Morais said the fiscal rule will be respected and the next stimulus
program will be smaller than some investors had feared. He added
that there's plenty of liquidity in the local bond market,
Bloomberg News says.

"Time will be working against the government," said Roberto
Secemski, an economist focused on Brazil at Barclays Plc. Investors
ultimately want a plan "that tells us public indebtedness will
stabilize," Bloomberg News adds.

                        About Brazil

Brazil is the fifth largest country in the world and third largest
in the Americas.  Jair Bolsonaro is the current president, having
been sworn in on Jan. 1, 2019.

Standard & Poor's credit rating for Brazil stands at BB- with
stable outlook (April 2020).  Moody's credit rating for Brazil was
last set at Ba2 with stable outlook (April 2018).  Fitch's credit
rating for Brazil was last reported at BB- with negative outlook
(May 2020). DBRS's credit rating for Brazil is BB (low) with stable
outlook (March 2018).

As reported in the Troubled Company Reporter-Latin America, Fitch
Ratings' outlook revision in May 2020 for Brazil to negative
reflects the deterioration of Brazil's economic and fiscal outlook,
and downside risks to both given renewed political uncertainty,
including tensions between the executive and congress, and
uncertainty over the duration and intensity of the coronavirus
pandemic.


VOTORANTIM SA: Moody's Affirms Ba1 Rating on $241MM Unsec. Notes
----------------------------------------------------------------
Moody's Investors Service affirmed the Ba1 rating on Votorantim
S.A.'s (VSA) $241 million senior unsecured notes due 2021 at Ba1.
The rating on the $144 million senior unsecured notes due 2024
issued by VSA's wholly owned subsidiary Companhia Brasileira de
Alumínio (CBA) and unconditionally guaranteed by VSA was also
affirmed at Ba1. At the same time Moody's America Latina affirmed
VSA's Corporate Family Rating (CFR) at Ba1 in the global scale and
its Aaa.br in the Brazilian national scale. The outlook was changed
to stable from negative.

List of affected ratings:

Affirmations:

Issuer: Votorantim S.A.

$241 million senior unsecured notes due 2021: affirmed at Ba1

Issuer: Companhia Brasileira de Alumínio

$144 million senior unsecured notes due 2024 unconditionally
guaranteed by VSA: affirmed at Ba1

Outlook Actions:

Issuer: Companhia Brasileira de Alumínio

Outlook, Changed to Stable from Negative

RATINGS RATIONALE

The change in outlook to stable from negative was prompted by VSA's
stronger operating performance than initially expected at the
beginning of the coronavirus outbreak when the company' rating
outlook was changed to negative. Accordingly, the company reacted
quickly implementing an aggressive contingency plan that included
cost cutting, reduction in capex, and dividend freeze, amongst
other efficiency initiatives that resulted in a positive effect in
EBITDA and cash generation. Also preparing for a scenario of sharp
decline in demand and profitability VSA raised liquidity by either
drawing down on its committed credit facilities or raising new
credit lines.

The more negative scenario did not materialize because of stronger
than anticipated demand during the pandemic allowing for price
adjustments and stronger margins that are resulting on better than
expected credit metrics for 2020. The cement business for example
had an 18% increase in net revenues in the 2Q20 from better sales
volumes and prices at Votorantim Cimentos Brazil (VCBR) and stable
demand combined with better pricing at Votorantim Cimentos North
America (VCNA) that also benefited from the weaker Brazilian real,
further improvement is expected until the end of 2020. Other
business such as Nexa, CBA, Long Steel, Votorantim Energia, CPP JV,
Citrosuco and Banco Votorantim will also present better performance
than expected at the beginning of the pandemic.

The affirmation of VSA's Ba1 ratings considers its strong credit
metrics and capital structure. The company executed a strong
liability management program over the last couple of years
resulting in a substantial reduction in indebtedness and an even
stronger liquidity profile. Since 2017, VSA amortized around BRL5
billion in debt, including repayments of around BRL4.5 billion
using part of the BRL8.1 billion received in net proceeds from the
sale of Fibria's shares, which also supported VSA's liquidity and
financial flexibility while reaffirming financial discipline.

VSA's Ba1 rating reflects the company's large size; its status as
one of the largest conglomerates in Brazil; and its diversified
business portfolio in cement, zinc and byproducts, aluminum,
energy, orange juice, long steel, and banking, which benefits from
different end-market dynamics and mitigates the effect of
cyclicality in any industry.

The rating is also backed by the group's cost-competitive
operations, resulting from high vertical integration, as well as by
its strong liquidity profile and extended debt maturity. VSA's
increased geographic diversification is an additional credit
positive and, while it still generates a substantial portion of its
consolidated EBITDA domestically, the company benefits from leading
market positions in virtually all its operating segments.

Constraining the ratings are the commodity nature of a substantial
portion of VSA's business portfolio (namely zinc and byproducts,
and aluminum) and the improving, but still challenging operating
environment for the company's cement business in Brazil.
Notwithstanding, Moody's expects VSA to maintain adequate leverage
for its rating category following the recent deleveraging
initiatives and asset sales despite the consequences of the
coronavirus outbreak.

LIQUIDITY

Historically, VSA has reported strong liquidity based on the
maintenance of large cash balances compared with short-term debt.
The company's cash balance that was around BRL14.1 billion in the
end of June 2020 comfortably covers all short-term debt and all
debt maturities until the end of 2026.

The stable outlook reflects its expectation that VSA will prudently
manage its capital spending and dividend distributions to maintain
adequate liquidity to service its financial obligations. The stable
outlook also takes into consideration the fact that if operations
weakens due to a reversal in the demand trend, the company will
make the necessary adjustments in its capital spending to maintain
its financial profile.

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

Positive rating or outlook pressure would not arise until there is
longer term visibility regarding the consumer demand including
cement and commodity prices. At this point Moody's would evaluate
if credit metrics and the liquidity strength of the company are
compatible with an investment grade rating, including:

gross adjusted leverage is expected to be sustainably below 3.5x

RCF/Net Debt is expected to be sustainably above 20%

Moody's could downgrade VSA if:

* there are expectations of declines in volumes and profitability
including a significant reduction in sources of liquidity

* liquidity concerns arise, for instance due to cost
inflexibility

* there are clear expectations that the company will not be able
to maintain financial metrics compatible with a Ba1 rating such
as:

   -- gross adjusted leverage is expected to be sustainably above
3.5x

   -- EBIT margin is expected to be sustainably below 10%

The principal methodology used in these ratings was Mining
published in September 2018.

VSA is the holding company of one of Brazil's largest
conglomerates, with a diverse business portfolio that includes
cement, zinc and byproducts, aluminum, energy, long steel, orange
juice, and banking and financial services. For the LTM ended June
2020, VSA reported consolidated net revenue of BRL30.7 billion.


VOTORANTIM SA: Moody's Alters Outlook on Ba1 CFR to Stable
----------------------------------------------------------
Moody's America Latina Ltda. affirmed Votorantim S.A.'s (VSA)
Corporate Family Rating (CFR) at Ba1 in the Global scale and at
Aaa.br in the Brazilian national scale. The outlook was changed to
stable from negative.

List of affected ratings:

Affirmations:

Issuer: Votorantim S.A.

Corporate Family Rating: affirmed at Ba1 (global scale)

Corporate Family Rating: affirmed at Aaa.br (national scale)

Outlook Actions:

Issuer: Votorantim S.A.

Outlook, Changed to Stable from Negative

RATINGS RATIONALE

The change in outlook to stable from negative was prompted by VSA's
stronger operating performance than initially expected at the
beginning of the coronavirus outbreak when the company' rating
outlook was changed to negative. Accordingly, the company reacted
quickly implementing an aggressive contingency plan that included
cost cutting, reduction in capex, and dividend freeze amongst other
efficiency initiatives that resulted in a positive effect in EBITDA
and cash generation. Also preparing for a scenario of sharp decline
in demand and profitability VSA raised liquidity by either drawing
down on its committed credit facilities or raising new credit
lines.

The more negative scenario did not materialize because of stronger
than anticipated demand during the pandemic allowing for price
adjustments and stronger margins that are resulting on better than
expected credit metrics for 2020. The cement business for example
had an 18% increase in net revenues in the 2Q20 from better sales
volumes and prices at Votorantim Cimentos Brazil (VCBR) and stable
demand combined with better pricing at Votorantim Cimentos North
America (VCNA) that also benefited from the weaker Brazilian real,
further improvement is expected until the end of 2020. Other
business such as Nexa, CBA, Long Steel, Votorantim Energia, CPP JV,
Citrosuco and Banco Votorantim will also present better performance
than expected at the beginning of the pandemic.

The affirmation of VSA's Ba1/Aaa.br ratings considers its strong
credit metrics and capital structure. The company executed a strong
liability management program over the last couple of years
resulting in a substantial reduction in indebtedness and an even
stronger liquidity profile. Since 2017, VSA amortized around BRL5
billion in debt, including repayments of around BRL4.5 billion
using part of the BRL8.1 billion received in net proceeds from the
sale of Fibria's shares, which also supported VSA's liquidity and
financial flexibility while reaffirming financial discipline.

VSA's Ba1 rating reflects the company's large size; its status as
one of the largest conglomerates in Brazil; and its diversified
business portfolio in cement, zinc and byproducts, aluminum,
energy, orange juice, long steel, and banking, which benefits from
different end-market dynamics and mitigates the effect of
cyclicality in any industry.

The rating is also backed by the group's cost-competitive
operations, resulting from high vertical integration, as well as by
its strong liquidity profile and extended debt maturity. VSA's
increased geographic diversification is an additional credit
positive and, while it still generates a substantial portion of its
consolidated EBITDA domestically, the company benefits from leading
market positions in virtually all its operating segments.

Constraining the ratings are the commodity nature of a substantial
portion of VSA's business portfolio (namely zinc and byproducts,
and aluminum) and the improving, but still challenging operating
environment for the company's cement business in Brazil.
Notwithstanding, Moody's expects VSA to maintain adequate leverage
for its rating category following the recent deleveraging
initiatives and asset sales despite the consequences of the
coronavirus outbreak.

LIQUIDITY

Historically, VSA has reported strong liquidity based on the
maintenance of large cash balances compared with short-term debt.
The company's cash balance that was around BRL14.1 billion in the
end of June 2020 comfortably covers all short-term debt and all
debt maturities until the end of 2026.

The stable outlook reflects its expectation that VSA will prudently
manage its capital spending and dividend distributions to maintain
adequate liquidity to service its financial obligations. The stable
outlook also takes into consideration the fact that if operations
weakens due to a reversal in the demand trend, the company will
make the necessary adjustments in its capital spending to maintain
its financial profile.

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

Positive rating pressure would not arise until the coronavirus
outbreak is brought under control and consequently there is longer
term visibility regarding the consumer demand including cement and
commodity prices. At this point Moody's would evaluate if credit
metrics and the liquidity strength of the company are compatible
with an investment grade rating, including:

gross adjusted leverage is expected to be sustainably below 3.5x

RCF/Net Debt is expected to be sustainably above 20%

Moody's could downgrade VSA if:

* there are expectations of declines in volumes and profitability
including a significant reduction in sources of liquidity

* liquidity concerns arise, for instance due to cost
inflexibility

* there are clear expectations that the company will not be able
to maintain financial metrics compatible with a Ba1 rating such
as:

   -- gross adjusted leverage is expected to be sustainably above
3.5x

   -- EBIT margin is expected to be sustainably below 10%

The principal methodology used in these ratings was Mining
published in September 2018.

VSA is the holding company of one of Brazil's largest
conglomerates, with a diverse business portfolio that includes
cement, zinc and byproducts, aluminum, energy, long steel, orange
juice, and banking and financial services. For the LTM ended June
2020, VSA reported consolidated net revenue of BRL30.7 billion.




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

JAMAICA: Decision on Food Operators to be Made Next Month
---------------------------------------------------------
RJR News reports that the Jamaican Government is to indicate next
month if fast food operators and restaurants will be allowed to
provide services during the nightly curfew.

Prime Minister Andrew Holness told the digital media briefing that
he has heard the complaints of  the operators of  the downturn in
business and he is considering allowing them some leeway, according
to RJR News.

"We are examining certain measures that will be put in place during
the curfew hours that would allow for the delivery of food during
that period of time.  We have not yet finalized these measures but
we will soon have measures that will see fast food outlets and
other outlets being able to provide food service during the curfew
hours for a defined period," the Prime Minister said, 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
===========

PETROLEOS MEXICANOS: Posts $26.3BB Net Loss for Jan.-Sept. Period
-----------------------------------------------------------------
EFE News reports that Mexican state oil company Petroleos Mexicanos
said it posted a $26.3 billion net loss between January and
September, an increase of 243.1 percent relative to the same
nine-month period of last year.

Pemex's results improved, however, in the third quarter, with the
company reporting net income of $61 million between July and
September, according to EFE News.

In presenting the company's latest earnings report, CEO Octavio
Romero Oropeza said the steep loss was due to sharply lower oil
prices resulting from a coronavirus-triggered plunge in global
crude demand, the report notes.

The company said its total sales amounted to $30.7 billion in the
first nine months of the year, down 34.9 percent from the same
period of 2019, the report says.

Domestic sales suffered a particularly steep decline, falling 39.1
percent to $16.4 billion, while exports were down 28.9 percent to
$14.1 billion, the report relays.

Compared to the same period of 2019, Pemex reported a 0.5 percent
increase in crude production to an average of 1.69 million barrels
per day, the report discloses.

Pemex's natural gas output, however, fell 0.6 percent to an average
of 3.64 billion cubic feet per day, the report says.

The company's gross income plummeted 53 percent to $5.9 billion,
while its operating income fell a whopping 86.2 percent to $1.1
billion, the report notes.

Pemex said its earnings before interest, taxes, depreciation and
amortization (EBITDA) between January and September plunged 616.2
percent - compared to the same period of 2019 - to $20.9 billion,
the report relates.

Meanwhile, the company's total liabilities (including short-term
and long-term financial debt, taxes and duties payable and reserve
for employee benefits) amounted to $193.2 billion at the end of
September, up 13.4 percent from the close of 2019, the report
notes.

Pemex's total financial debt - both short-term and long-term - has
grown 24.9 percent thus far this year to $107.8 billion, the report
relays.

On the bright side, Pemex rebounded after two consecutive quarters
of losses to post net income of $61 million between July and
September, the report relays.

That result compares to a net loss of 87.9 billion pesos (roughly
$3.8 billion if the same exchange rate is used) in the third
quarter of 2019, the report discloses.

Despite that figure, Pemex's total sales in the third quarter fell
31.8 percent year-over-year to $10.4 billion; by category, domestic
sales were down 40.8 percent and exports dropped 18.6 percent, the
report says.

By contrast, Pemex earned $1.6 billion in foreign exchange profit,
up 201 percent from the third quarter of 2019; and $761 million in
income due to financial derivatives, 188.2 percent more than in the
July-September period of 2019, the report notes.

For the first half of 2020, Pemex posted a net loss of $26.4
billion, an increase of 585.3 percent from its $3.9 billion loss
for the first half of last year, the report says.

Pemex posted a net loss of $18.4 billion for all of 2019, up 91.8
percent from its $9.6 percent net loss the previous year, the
report adds.

As reported in the Troubled Company Reporter-Latin America on Oct.
12, 2020, Fitch Ratings has assigned a long-term rating of 'BB-' to
Petroleos Mexicanos' (PEMEX) proposed senior unsecured debt
issuance of USD1 billion. The notes will mature in 2025, and the
company expects to use the proceed from the issuance for capex,
working capital needs and to refinance existing debt.




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

ALLIED FINANCIAL: Barreto Buying Aguadilla Property for $34,000
---------------------------------------------------------------
Allied Financial, Inc., asks the U.S. Bankruptcy Court for the
District of Puerto Rico to authorize the sale of the lot of land
located at Barrio Aguacate in Aguadilla, Puerto Rico, Registered as
Property Num. 30,066, of Vol. 558 in Aguadilla Property Registry,
to Sandro Escobar Barreto for $34,000.

The Debtor listed in its Schedules an interest in the Property. The
Property has approximately 823.4915 square meters.  

The Debtor acquired the Property on Dec. 4, 2013, via Deed of
Judicial Sale and Cancelation of Mortgage Note by Notary Public
Shariann Morales Feliciano.  The Appraisal Report dated June 15,
2020 for the Property shows a value of $34,000.  The Restricted Use
Appraisal Reports have been used in the case because the intended
user of these reports, is for guidance in establishing disposition
and comparable prices and does not need to include details
typically included in Appraisal Reports, which in the case, upon
management experience is not necessary.  Notwithstanding it, the
appraisal values in these reports are based on comparable sales
information which is deemed to be adequately supported by the
evidence provided.

The Debtor has been actively marketing all of its real estate
assets through the resources of its principal stockholder who is a
licensed real estate broker with more than 45 years of experience
and who took over management of its business prior to the filing of
the bankruptcy for the purpose of managing and maximizing
distributions to creditors through the sale of the Debtor's real
estate assets.

The Debtor has identified the Purchaser as potential buyer for the
Property in the amount of $34,000, on the terns of the Purchase
Option Agreement.  The Purchaser has previously purchased real
estate from the Debtor on multiple occasions.  He is offering the
same price per square meter as the previous purchase of property.

The Property, as of the date, has property tax debt, in the total
amount of $ 1,220.  Any amounts owed to CRIM will be paid first
with the proceeds ofthe sale.  The Property also serves as
collateral to WM Capital Partners76, LLC, which will receive the
net proceed of the sale to be applied to the principal of its Claim
No. 1.

The Debtor has not asked authorization to retain the services of a
Notary because none is needed.  The notarial services are being
paid by Mr. Rafael Portela at no cost to the Debtor.  It is not
paying for notarial services nor other professionai services
related to the transaction.

The transfer of the Property shali be free and clear of all liens,
and exempt from the payment of taxes, stamps and vouchers, if the
transaction for some reason is delayed and takes place under the
Plan of Reorganization.

Each of the parties to the sale will assume its own payment of
expenses under the provisions of the Notary Law of Puerto Rico.

Furthermore, the Debtor received from Purchaser a check in the
amount of $1,700 as a good faith deposit under the purchase option,
which will be applied to the purchase price at the closing if the
Purchaser exercises the option and buys the property as per the
terms and conditions of the agreement.

The Purchase Option Agreement will expire 90 days from the date of
the agreement or 10 days from the date the sale is approved by the
Bankruptcy Court, whichever is later.

There are no common maintenance fees or homeowners' association
dues in relation to the Property, since such association does not
exist.

Pursuant to the Plan and section 1146(3) of the Bankruptcy Code, if
the sale for any reason, takes place after the confirmation of the
Plan, the transfer of the Property to the Purchaser, or its
designee, the cancellation of any liens and encumbrances over the
Property, or any other transactions contemplated under the Plan
will not be subject to any stamps, vouchers, real estate transfer,
mortgage recording, mortgage cancellation or other similar tax.

A copy of the Agreement is available at
https://tinyurl.com/y3oremvf from PacerMonitor.com free of charge.

                      About Allied Financial

Allied Financial, Inc. filed a Chapter 11 bankruptcy petition
(Bankr. D.P.R. Case No. 16-00180) on Jan. 15, 2016.  At the time
of
the filing, Debtor disclosed total assets of $10.3 million and
total debt of $9.14 million.  Judge Mildred Caban Flores oversees
the case.  C. Conde & Assoc. is the Debtor's legal counsel.



                           *********


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

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

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

This material is copyrighted and any commercial use, resale or
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