/raid1/www/Hosts/bankrupt/TCRLA_Public/210907.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Tuesday, September 7, 2021, Vol. 22, No. 173

                           Headlines



A R G E N T I N A

BUENOS AIRES: Moody's Rates Bonds 'Ca', Alters Outlook to Stable
COMPANIA GENERAL: Fitch Raises LT IDRs to 'B-', Outlook Stable
GAUCHO GROUP: Six Proposals Approved at Annual Meeting


B R A Z I L

ALTERA INFRASTRUCTURE: Fitch Raises IDR to 'CCC+', Outlook Stable
BRAZIL: Fear of Stagflation Increases Significantly
BRAZIL: July Industrial Production Down 1.3% from June, IBGE Says
COMPANHIA SIDERURGICA: Moody's Upgrades CFR to Ba2, Outlook Stable
TAKATA CORP: Inks $42 Million Air Bag MDL Deal With Volkswagen



C A Y M A N   I S L A N D S

ATON FINANCIAL: Moody's Assigns 'B1' Long Term Issuer Ratings
EAGLE HOSPITALITY: Woodbridge Hotel Sold by Receiver for $23.5M


D O M I N I C A N   R E P U B L I C

DOMINCAN REPUBLIC: Gov't. Mulls Cutting Taxes, Removing Exemptions


E C U A D O R

EMPRESA PUBLICA: Fitch Affirms B- Rating on Senior Unsec. Notes


J A M A I C A

I-CREATE: Incurs $29 Million Loss for Year Ending December 2020


M E X I C O

TOTAL PLAY: Fitch Affirms 'BB-' LT IDRs, Outlook Stable

                           - - - - -


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BUENOS AIRES: Moody's Rates Bonds 'Ca', Alters Outlook to Stable
----------------------------------------------------------------
Moody's Investors Service has assigned a Ca debt rating to the
proposed New USD 2037 A Bonds, New Euro 2037 A Bonds, New USD 2037
B Bonds, New Euro 2037 B Bonds, New USD 2037 C Bonds and New Euro
2037 C Bonds to be issued by the Province of Buenos Aires in
exchange of its USD 2020 Bonds, 10.875% USD 2021 Bonds, USD 2028
Bonds, Euro 2020 Bonds, USD 2035 Bonds, Euro 2035 Bonds, 9.950% USD
2021 Bonds, USD 2023 Bonds, USD 2024 Bonds, USD 2027 Bonds and Euro
2023 Bonds. Moody's also affirmed the ca baseline credit
assessment, Ca issuer rating (domestic and foreign currency) and Ca
debt ratings. The outlook on the ratings also changed to stable
from negative.

The assigned Ca rating to the proposed notes is based on
preliminary documentation received by Moody's as of the rating
assignment date. Moody's does not expect changes to the
documentation reviewed over this period, nor does it anticipate
changes in the main conditions that the notes will carry. Should
issuance conditions and/or final documentation of the notes deviate
from the original ones submitted and reviewed by the rating agency,
Moody's will assess the impact that these differences may have on
the ratings and act accordingly.

Assignments:

Issuer: Buenos Aires, Province of

Senior Unsecured Regular Bond/Debenture, Assigned Ca

Affirmations:

Issuer: Buenos Aires, Province of

Issuer Rating, Affirmed Ca

Senior Unsecured Regular Bond/ Debenture, Affirmed Ca

Outlook Actions:

Issuer: Buenos Aires, Province of

Outlook, Changed to Stable from Negative

RATINGS RATIONALE

The assignment of a Ca rating to the proposed New USD 2037 A Bonds,
New Euro 2037 A Bonds, New USD 2037 B Bonds, New Euro 2037 B Bonds,
New USD 2037 C Bonds and New Euro 2037 C Bonds to be issued by the
Province of Buenos Aires reflects Moody's expectation that risk to
the bondholders of potential losses remains consistent with the
35%-65% range associated with Buenos Aires's Ca issuer rating
despite the recent debt restructuring undertaken by the province.

On August 30, the Province of Buenos Aires announced that it had
reached the necessary consent threshold to restructure
approximately $7 billion of its foreign-currency debt issued under
foreign legislation. The Province plans to issue the new A, B and C
series of notes in exchange for its existing notes. The debt
restructuring involves a consent consideration, including missed
due interest, postponement of upcoming maturities and a reduction
of interest payments.

Moody's notes that the debt restructuring will bring relief to
Buenos Aires' finances due to a combination of a reduction in debt
service of approximately $4.2 billion between 2020 and 2023, a
decrease in the average coupon rate to 5.7% from 7.5% and a more
comfortable maturity profile. As a result of the restructuring,
Buenos Aires' debt average life was extended to about 10.6 years
versus 3.2 years previously and the province will not face
principal payments until 2024.

While Moody's understands that the restructuring will alleviate the
province's liquidity pressures until 2024, when principal payments
are due and debt service spikes markedly, in Moody's view the risk
of future debt restructurings remains high. Moody's considers that
Buenos Aires' ability to meet debt payments when these are set to
rise materially remains uncertain because of Moody's expectation of
restricted market access, a difficult operating environment and
tight liquidity.

The affirmation of the ca baseline credit assessment and Ca debt
and issuer ratings of the Province of Buenos Aires reflects Moody's
expectation that the province will continue to face multiple
perennial credit challenges. These include high working capital
needs due to its large payroll and service offerings, large capital
expenditure needs and elevated poverty and unemployment. Moreover,
since the exchange does not involve principal haircuts and
capitalizes past missed interest payments, the province will still
face relatively high leverage and significant exposure to foreign
currency debt.

In addition, Moody's notes that Buenos Aires is very heavily
exposed to the challenging operating environment for Argentine
issuers. Moody's views that the Government of Argentina's (Ca
stable) recurrent economic imbalances will strain market access,
making it difficult for the province to refinance its maturities in
2024 when the first principal payments are due. Moody's expects
Argentina's economy to rebound by about 5% this year after
contracting nearly 10% in 2020. Moody's estimates growth will
moderate to 2% in 2022 as favorable base effects subside and
macroeconomic imbalances grow. While inflationary pressures have
been at least partly subdued recently, Moody's still expects very
high inflation of 50% for 2021 and 40% for 2022. Also, remaining
external risks such as foreign exchange rate pressures create
challenges for issuers with a high exposure to foreign currency
debt such as Buenos Aires.

Counterbalancing the credit challenges, Buenos Aires benefits from
a large and diversified economic base that supports a high share of
own source revenue, moderate support from the sovereign and ample
access to the local capital market.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook captures Moody's expectation that economic and
financial pressure faced by the Province of Buenos Aires will not
differ materially over the next 12-18 months and therefore lead to
fiscal pressure consistent with recent results. Buenos Aires will
likely continue to face a heightened likelihood of further debt
mispayments, with losses to bondholders consistent with levels
captured in the Ca rating.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS

Environmental considerations are not material to the credit profile
as neither spending nor revenue intake are likely to be affected by
environmental changes at this time. Nevertheless, social
considerations are material to the credit profile of the province.
The province's social risk profile is similar to that of other
Regional and Local Governments (RLGs) in Argentina, with exposure
to rising social demands driven by falling purchasing power and
increased poverty and unemployment. The expected further
deterioration in these indicators, coupled with social discontent
and pressure from labor unions amid unrelenting inflation levels
and an economic environment strained by the coronavirus pandemic,
will erode the province's tax collection abilities and require an
increase in social spending and personnel expenses, which represent
about 50% of its operating expenses.

Moody's views governance considerations as material to the credit
profile. Argentine RLGs typically do not reach their budget targets
and adopt weak governance practices, such as regular borrowing for
operating deficits or incurring unhedged foreign-currency debt. The
province has incurred significant foreign-currency debt, which,
among other factors, has recently led to debt restructuring.
Moreover, Moody's governance evaluation for Argentine RLGs
incorporates information transparency considerations. As the
available public information is typically of low quality, issuers
in general do not publish forward-looking assumptions and financial
reports are not audited by independent auditing firms. In the case
of the Province of Buenos Aires, Moody's assigns the weakest score
under their Regional and Local Governments rating methodology to
the investment and debt management, and transparency and disclosure
factors. Buenos Aires' quality of information is also weak compared
with peers, as information is often published with delays and with
less details.

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

Given the strong macroeconomic and financial linkages between
Argentine Sub-sovereigns and the Government of Argentina, which
currently carries a stable outlook, Moody's does not expect upward
pressures in the near to medium term for the Province of Buenos
Aires. Nevertheless, Moody's would consider an upgrade if financing
conditions stabilize and the anticipated losses to private
creditors in future debt restructurings are less than currently
forecast.

Alternatively, a downgrade in Argentina's bond ratings and/or
further systemic deterioration could exert downward pressure on the
ratings. Increased idiosyncratic risks could also translate into a
downgrade. Moody's would also downgrade the ratings in the event a
debt restructuring results in losses greater than those reflected
in the current ratings.

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

COMPANIA GENERAL: Fitch Raises LT IDRs to 'B-', Outlook Stable
--------------------------------------------------------------
Fitch Ratings has upgraded Compania General de Combustibles S.A.
(CGC) Long-Term Foreign Currency (FC) and Local Currency (LC)
Issuer Default Ratings (IDR) to 'B-' from 'CCC' and the senior
unsecured note due 2021 to 'B-'/'RR4' from 'CCC'/'RR4'. The Rating
Outlook is Stable.

The upgrade of CGC's ratings reflects the increased production,
reserve base, and improved leverage and liquidity profile of the
company following its acquisition of Sinopec Argentina. On a pro
forma basis, CGC increased its production by 67% to 61,100boed. 1P
reserves increased by 50% to 90Mmboe with a 1P reserve life of 4.0
years. Liquidity position increased by USD93.7 million with a
proforma cash position of USD244.9 million. The rating case assumes
the acquisition was financed mostly through debt with a USD100
million loan from Eurobanco Bank ltd. Fitch estimates CGC's gross
leverage, defined as total debt to EBITDA for 2021 will be
approximately 1.4x.

KEY RATING DRIVERS

Weak Operating Environment: CGC's ratings reflect regulatory risk
given strong government influence in the energy sectors. CGC
operates in a highly strategic sector where the government plays a
material role; this is further exacerbated by the implementation of
capital controls, which has forced Argentine corporates to launch
exchanges due to a lack of access to USD and poor financing
conditions. Nevertheless, the energy sector is strategically
important for the overall economy both as a contributor of economic
growth, revenues (through taxes, royalties, and exports), and cost
savings, replacing gas imports from Bolivia and LNG, which are more
expensive than domestic gas. CGC is a major market participant and
is vulnerable to government intervention.

Improved Production Profile: CGC's acquisition of Sinopec Argentina
in June 2021 increases production by 67% reaching 61,100boed, which
bodes well for its credit quality as it add operational
diversification. The acquisition diversifies its production profile
by adding production in San Jorge and Neuquina and Cuyo basins,
which are prolific basins - the latter of which falls within the
prolific Vaca Muerta basin on top of existing operations in the
Austral basin. On a pro forma basis, as of end of June 2021, CGC is
now the sixth largest gas producer, up from eighth, and fifth
largest oil producer, up from 16th, in the country. CGC's 1P
reserve base increased by 50% to 90mmboe, but its 1P reserve life
remains unchanged at 4.6 years expected for 2021.

Strong Leverage Profile: CGC's gross leverage, defined as total
debt to EBITDA, is expected to be 1.4x in 2021 and decrease to
average 1.3x over the rated horizon, which assumes debt will be
rolled over each year through 2024. Total debt to 1P is expected to
be USD5.52boe in 2021, after the acquisition, an improvement from
USD6.76boe in 2020. CGC has roughly USD119 million of debt maturing
in 2021; the largest portion comprises of USD99.2 million
outstanding of its November 2021 senior unsecured note that was not
exchanged as part of its liability management exercise in 2020.

Fitch understands that CGC will be allowed under the capital
controls to access the official FX window managed by the central
bank of Argentina to repay the entire principal, and it reported
USD244.9 million of cash and cash equivalents in 2Q21 comfortably
covering the maturity. The rating case assumes that CGC will tap
local markets to replenish its cash position and will maintain
USD500 million of debt on its balance sheet over the rated
horizon.

Stable Cash Flow Profile: CGC has reported positive FCF of USD25.6
million in 2020 and for both 1Q21 and 2Q21. The rating case
estimates FCF will be USD150 million in 2021. Over the rated
horizon, CGC is expected to be FCF positive, absent any
extraordinary dividends, capex, or acquisitions. CGC cash flows are
supported by contracted revenues under Res. 46, which expires in
2021, and Plan Gas 4 (PG4) through 2024. Fitch estimates the
weighted average realized price for gas in 2021 will be
USD4.23Mmbtu, and between 2022 through 2024, at least 35% of its
total production is contracted under PG4 at a price of
USD3.46Mmbtu.

Capital Controls Weakens Financial Flexibility: CGC has maintained
an adequate liquidity profile. As of 2Q21, CGC reported USD244.9
million of cash on a consolidated basis covering all debt
maturities in 2021 of USD119 million and remaining interest expense
of USD20.0 million for 2021 by 1.7x. Fitch understands that CGC
will be allowed under the capital control rules to access the
official FX to repay the outstanding USD99.2 million of its
November 2021 principal, as it exchanged more than 60% required
under the capital rules in 2020. Over the ratings horizon, the
Argentine capital control measures that require entities with
assets abroad to first use those resources to service international
obligations before turning to Argentina's official currency markets
poses significant risks to corporates in Argentina including CGC,
as they will have more of their cash flow deposited in Argentina
rather than abroad. Nevertheless, CGC does not face any material
maturities until 2025.

DERIVATION SUMMARY

Compania General de Combustibles S.A. (CGC, B-/Stable) credit
profile compares favorably to Argentine corporates Pampa Energia
(B-/Stable) and Capex S.A. (CCC+/Stable), and to other small
independent oil and gas companies in the region. The ratings of
GeoPark Limited (B+/Stable), SierraCol Energy (B+/Stable), Gran
Tierra Energy International Holdings Ltd. (GTE, CCC+), and Frontera
Energy (B/Stable) are constrained to the 'B' category, given the
inherent operational risks associated with small scale and low
diversification of their oil and gas production profiles.

Compared to Argentine peers Pampa Energia and Capex, CGC's has a
conservative leverage profile and strong liquidity that supports
its debt maturity profile, that is not expected to be materially
impacted by the capital controls, which limits Argentine corporates
ability to repay hard-currency debt obligations. CGC is an energy
company and its business profile compares mostly to Capex and
Pampa's upstream business, but both Capex and Pampa are diversified
energy companies that generate majority of cash flows from power
generation, thus they are more exposed to CAMMESA. Both Pampa and
CGC are leaders in Argentina in their respective business
operations.

CGC produces both oil (33%) and gas (67%) exclusively in Argentina,
which limits its ratings, its offtaker and impact of capital
controls. Nonetheless, its pro forma production size compares
favorably to other 'B'-rated oil and gas E&P producers, which will
constrain its rating to the 'B' category. These peers include
Canacol, Geopark, SierraCol, Gran Tierra Energy, and Frontera
Energy. Over the rated horizon, Fitch expects that CGC's production
will average 61,000boed, which is higher than all its peers, as
SierraCol is expected to produce on average 36,000boed, Geopark and
Frontera both of which are expected to be 45,000 bbld, GTE at
35,000boed, and Canacol at 45,000boed. CGC's 1P reserve life is
expected to be 4.6 years, which is the lowest compared to peers, as
Sierra Col's 1P reserve life is 6.3 years, Frontera at 6.2 years,
Geopark at 7.4 years, GTE at 6.8 years, and Canacol at 6.3 years.

CGC's 2021 half-cycle production is expected to be USD20.0boe and
full-cycle cost to be USD27.06boe. In line with GTE at USD20.2boe
in 2021 and full-cycle cost to be USD38.4boe, but CGC is higher
than SierraCol's half-cycle production cost of $13.70 bbl in 2020
and full-cycle cost was $26.60 bbl. Geopark, who is the lowest cost
producer in the region at $13.60 bbl and $23.40 bbl, and Canacol at
$10.72 bbl and $18.43 bbl, but better than Frontera's at $28.60bbl
and $42.20 bbl. CGC's high cost of production is mostly attributed
to a higher cost of capital of USD4.8boe, due its operating
environment Argentina.

CGC has a strong capital structure with gross leverage, defined as
total debt to be EBITDA, expected to be 1.9x in 2021 and total debt
to 1P estimated to be USD5.52boe. This compares better to GTE's
3.1x gross leverage and total debt to 1P be USD10.11boe, Frontera
at 2.3x and USD4.98 bbl, and Canacol at 2.2x and USD6.0boed. CGC is
in line with SierraCol at a gross leverage that will average 1.0x
over the rated horizon and a total debt to 1P of $5.68 bbl, Geopark
gross leverage of 3.3x and 1P of $5.48 bbl.

KEY ASSUMPTIONS

Operations:

-- Oil and gas production to average 61,100 boe/d over the next
    four years;

-- Res 46 expires in 2021;

-- Average realized natural gas price of USD3.50mmBTU flat over
    the rated horizon under PG4;

-- Average realized Brent price of USD63bbl in 2021, USD 55bbl in
    2022, and USD53bbl long term;

-- Capex annual average of USD155 million between 2020 and 2024;

-- Lifting cost (COGS - D&A) of USD12.00boe flat from 2021-2024;

-- Selling expenses are USD1.10boe flat from 2022-2024;

-- SG&A expenses are USD 2.00boe flat from 2022-2024;

-- Exploration expenses are USD 0.20boe flat from 2022-2024;

-- Other income expenses are USD1.00boe flat from 2024-2024;

-- Reserve replacement ratio of 105% per annum.

Financial:

-- Fitch Average and EOP ARS/USD exchange rates of $99.58 in 2021
    and $142.33 in 2022;

-- Fitch EOP ARS/USD exchange rates of $115.02 in 2021 and
    $169.65 in 2022;

-- Dividends received of USD25 million per annum 2021-2024;

-- Dividends paid of USD10 million per annum 2021-2024

-- Full repayment of USD99.2 million November 2021 principal;

-- Debt outstanding remains flat at USD500 million per annum from
    2021 through 2024;

-- Interest costs are 9% of total debt outstanding.

RATING SENSITIVITIES

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

-- Any further regulatory developments leading to a more
    independent market that is less reliant on support from the
    Argentine government could positively affect its collections
    and cash flow given the company's dependence on plan gas 4
    subsidies paid by the government;

-- Contracted exports with high quality off-takers with a long
    term tenure with adequate legal protections to avoid
    interference from the federal government;

-- Loosening of central bank capital controls rules allowing the
    company to strengthen its hard-currency cash balance;

-- Maintaining a gross leverage, total debt to EBITDA profile of
    2.0x or less.

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

-- A downgrade of Argentina's country ceiling ratings;

-- Amendments to capital control rules which weakens the
    company's ability to access its capital and refinance debt;

-- Significant delays in payments that negatively affect working
    capital, liquidity and leverage;

-- Revision of existing contracts (PG4);

-- Significant deterioration of credit metrics of total/EBITDA of
    4.5x or more.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: CGC reported USD244.9 million in cash and cash
equivalent in 2Q21. The company has a manageable debt maturity
profile with USD119.8 million of debt due by YE 2021; the largest
maturity is the USD99.2 million outstanding principal due November
2021, which is the portion of the USD300 million note that was not
exchanged in 2020. Fitch understands that CGC will be allowed under
the capital controls to access the official FX window managed by
the central bank of Argentina to repay the entire principal. The
rating case assumes that CGC will tap local markets to replenish
its cash position and will maintain USD500 million of debt per
annum on its balance sheet over the rated horizon.

ISSUER PROFILE

CGC is an energy company with operations in Argentina, engaged in
the development, production and exploration of natural gas, crude
oil, LPG (Upstream business) and with a significant interest in a
network of pipelines in northern and central Argentina.

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.

GAUCHO GROUP: Six Proposals Approved at Annual Meeting
------------------------------------------------------
Gaucho Group Holdings, Inc. convened its 2021 Annual Stockholder
Meeting, at which the stockholders:

   (1) elected Peter J.L. Lawrence to serve a three-year term as a
       Class II director until his successor is elected and
       qualified;

   (2) approved the issuance of an additional 10,000,000 shares of

       common stock pursuant to an equity line of credit with
       Tumim Stone Capital LLC;

   (3) approved the amendment to the 2018 Equity Incentive Plan
       thereby increasing the number of shares available for
       awards under the plan to 15% of the Company's common stock  
     
       outstanding on a fully diluted basis as of the date of      
       
       stockholder approval;

   (4) approved the purchase of Argentina real estate from
       Hollywood Burger Holdings, Inc.;

   (5) approved the purchase of shares of the remaining 21% of
       common stock of Gaucho Group, Inc.;

   (6) ratified and approved Marcum, LLP as the Company's
       independent registered accounting firm for the year ended
       Dec. 31, 2021; and

   (7) rejected the proposal to cancel for cause the employment
       contract with Scott L. Mathis, CEO.

                        About Gaucho Group

Headquartered in New York, NY, Gaucho Group Holdings, Inc. --
http://www.algodongroup.com-- was incorporated on April 5, 1999.  

Effective Oct. 1, 2018, the Company changed its name from Algodon
Wines & Luxury Development, Inc. to Algodon Group, Inc., and
effective March 11, 2019, the Company changed its name from
Algodon Group, Inc. to Gaucho Group Holdings, Inc.  Through its
wholly-owned subsidiaries, GGH invests in, develops and operates
real estate projects in Argentina.  GGH operates a hotel, golf and
tennis resort, vineyard and producing winery in addition to
developing residential lots located near the resort.  In 2016, GGH
formed a new subsidiary and in 2018, established an e-commerce
platform for the manufacture and sale of high-end fashion and
accessories.  The activities in Argentina are conducted through
its operating entities: InvestProperty Group, LLC, Algodon Global
Properties, LLC, The Algodon - Recoleta S.R.L, Algodon Properties
II S.R.L., and Algodon Wine Estates S.R.L. Algodon distributes its
wines in Europe through its United Kingdom entity, Algodon Europe,
LTD.

Gaucho Group reported a net loss of $5.78 million for the year
ended Dec. 31, 2020, compared to a net loss of $6.95 million for
the year ended Dec. 31, 2019.  As of March 31, 2021, the Company
had $11.46 million in total assets, $3.18 million in total
liabilities, and $8.28 million in total stockholders' equity.





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ALTERA INFRASTRUCTURE: Fitch Raises IDR to 'CCC+', Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has upgraded Altera Infrastructure L.P.'s (Altera)
Issuer Default Rating (IDR) to 'CCC+' from 'C' and upgraded the
senior unsecured notes (2023 Notes) rating to 'CCC-'/'RR6' from
'C'/'RR4'. The Rating Outlook is Stable.

The announced exchange offer for third-party-held 2023 Notes did
not reach the 80% tender condition, and consequently expired
without exchange. The remaining 2023 Notes held by Brookfield
Business Partners L.P., as well as other Brookfield-provided
unsecured facilities, did exchange for new 2026 secured PIK notes.
The outstanding 2023 Notes are structurally subordinate to the 2026
PIK Notes.

Altera's ratings reflect expectations for cash flow stability
supported by medium-to-long-term, fixed-fee contracts with large
counterparties. This is contrasted against the lumpy and quite
binary nature of the company's floating production, storage and
offloading (FPSO) vessel contracts, high leverage and significant
structural subordination. The ratings acknowledge Brookfield as a
supportive sponsor, which provides operational and financial
benefits to Altera.

KEY RATING DRIVERS

Exchange Implications: Altera will benefit from approximately $50
million in annual cash interest savings from the exchange of
Brookfield-provided unsecured debt for the 2026 PIK Notes. This is
in addition to roughly $30 million in annual cash savings from the
cancelation of preferred share dividend payments. However, existing
third-party holders of the 2023 Notes are now further subordinated
to an incremental approximately $699 million of debt. Additionally,
there are payment restrictions within the new 2026 PIK Notes
indenture that could limit the cash available to be distributed up
to the Altera-level. Consequently, Fitch views the prospects for
recovery for the 2023 Notes to be significantly reduced, versus
pre-exchange.

Upcoming Maturity in Focus: Altera Shuttle Tankers L.L.C.
(ShuttleCo) has a $250 million unsecured bond coming due in August
2022 that represents the next major refinancing the company needs
to complete. This will likely take place after the company extends
the $70 million Brookfield-provided revolver at ShuttleCo, maturing
in February 2022. Fitch views this refinancing as achievable and
would look to its successful close on reasonable terms as positive
for the credit, despite it being a large transaction for the
Scandinavian market.

The Need to Redeploy, or Otherwise Extract Value: Altera currently
has three FPSO vessels in lay-up and has a large FPSO vessel coming
off contract in mid-2022. To reduce leverage and bring metrics more
in-line with sustainability, Altera needs to sign contracts for
redeployment/upgrade and redeployment or sell its currently laid-up
and/or soon-to-be-laid-up FPSO vessels for sufficient value.

The market for FPSO vessels is supportive right now, with expected
demand outpacing current supply and newbuilds taking multiple years
to construct, and Fitch recognizes real opportunities for the Knarr
and Voyageur vessels to be redeployed. However, until contracts are
signed for these vessels, Fitch's assumptions remain that the
Voyageur is in lay-up over the forecast period and the Knarr is not
redeployed or sold after the current contract conclusion. Contract
agreements or sale for sufficient value would improve Altera's
credit profile, in Fitch's view.

Significant Structural Subordination: Altera's capital structure
has a significant amount of secured debt at the vessel level, as
well as intermediate holdco debt, making Altera-level debt
structurally subordinate to over $3 billion in subsidiary-level
debt. The structurally superior debt encumbers nearly all vessels
and holds first-lien secured interests in those vessels, or equity
interests in the subsidiaries holding the vessels in the cases of
the intermediate holdcos. The company receives distributions from
two non-consolidated JVs, which had just over $250 million in debt
outstanding at June 30, 2021 (Altera's proportionate share). Vessel
operating performance difficulties or cash flow disruptions could
negatively affect the ability to service obligations at the Altera
level.

Stability Through Contracts: The FPSO, shuttle tanker and FSO
businesses operate under long-term, fixed-fee contracts, for the
most part. FPSO and FSO, as well as time and bareboat charter
shuttle tanker contracts are akin to take-or-pay contracts in the
pipeline space and provide Altera with very good revenue
visibility. While the contracts of affreightment (COA) have volume
uncertainty, Altera's historical utilization has been very
consistent, supporting steady expected future cash flows. The
majority of Altera's businesses, outside of the above discussed
laid-up FPSO vessel recontracting risks, are covered by a
combination of these supportive contracts at present, and Fitch
views that revenue base as stable. There has been and likely will
continue to be some variability in results as these contracts
expire and need to be renewed/extended or vessels need to be
redeployed (or sold).

Strong Counterparties: Fitch estimates that investment-grade
customers make up approximately 70% of Altera's revenue. Given the
high percentage of strong credit quality counterparties, Altera's
risk of lost revenue due to customer default is remote. This risk
is further mitigated by the ability to redeploy shuttle tankers and
towage vessels relatively quickly without incurring significant
additional costs.

Supportive Sponsor: Fitch believes Brookfield to be a supportive
sponsor of Altera. Financial support is most recently evidenced by
the exchange transaction, where Brookfield will forego a cash-paid
coupon for a non-cash PIK coupon on nearly $700 million in debt, to
support Altera's ongoing liquidity needs. Earlier in 2021,
Brookfield extended the maturity and increased the amount available
under unsecured credit facilities it provided Altera.

Additionally, back in 2017, Brookfield made a large equity
investment and repurchased/cancelled expensive preferred units.
Fitch views the potential added flexibility afforded by being a
Brookfield controlled/owned entity as being relatively positive for
Altera's credit profile. However, Altera's ratings do not reflect
any explicit notching from Brookfield.

DERIVATION SUMMARY

Altera is unique among Fitch's publicly rated Midstream coverage
given its niche marine focus. From an operating perspective,
Altera's FPSO and shuttle tanker segments compare to midstream
pipeline transportation and gathering assets. Furthermore,
operations within Altera's FSO segment compare with more
conventional oil and liquids storage peers. Currently, roughly 70%
of Altera's revenue is contracted under intermediate to long-term,
take-or-pay like contracts with large counterparties. Additionally,
roughly 15% of the company's revenue comes from shuttle tankers
operating in the North Sea under volume-exposed, intermediate-term
contracts of affreightment.

The average contract life, as of March 31, 2021, for Altera's FPSO
business is 2.4 years (inclusive of JVs and exclusive of extension
options), 6.4 years for its shuttle tankers operating under time
charters, 1.9 years for its shuttle tankers operating under COAs
and 1.7 years for the FSO business. As such, Altera's contract
tenor compares less favorably to higher rated midstream energy
peers Cheniere Energy Partners, L.P. (CQP; BB/Positive) and Prairie
ECI Acquiror LP (Prairie; B+/Stable). Additionally, CQP benefits
from generating essentially all of its revenue from take-or-pay
style contracts. Fitch views CQP's undiversified cash flows in LNG
export as a stronger business than Altera's offshore offerings,
and, as the most significant player in the U.S. LNG export market,
CQP features size and scale advantages.

Fitch estimates that roughly 70% of Altera's consolidated revenue
comes from investment-grade counterparties. This is consistent with
several of Fitch's 'B' category rated midstream-focused service
providers, where investment-grade counterparty exposure ranges from
40% to 80%. Altera's counterparty credit profile compares less
favorably with CQP, where counterparty exposure is entirely
investment-grade, but more favorably versus Prairie.

Debt held at Altera is structurally subordinate to a significant
amount of operating subsidiary and intermediate holdco level debt,
both on a secured and unsecured basis, similar to CQP and Prairie.
Leverage at Altera, on a consolidated basis (defined below), is
expected to be above 7.0x in 2022, due in large part to an expiring
FPSO contract, similar to Prairie but higher than CQP.

KEY ASSUMPTIONS

Fitch's key assumptions within the rating case for the issuer
include:

-- Oil production/development in the North Sea, offshore Brazil
    and off the East Coast of Canada consistent with the Fitch
    price deck, such as the 2022 Brent price of $55 per barrel and
    long-term Brent price of $53 per barrel, respectively;

-- Currently contracted shuttle tanker, FPSO and FSO vessels
    produce cash flows consistent with contract parameters over
    the respective contract terms;

-- FPSO and UMS vessels currently in lay-up remain unutilized
    over the forecast period or until sold;

-- The Knarr, Voyageur Spirit, Varg and Piranema Spirit FPSO
    vessels are not redeployed over the forecast period and do not
    garner enough value through sale to repay related debt;

-- Utilization rates in the North Sea shuttle tanker COA pool to
    remain near 80%;

-- Newly issued 2026 PIK Notes held by Brookfield receive 11.5%
    PIK interest;

-- No preferred share dividend payments are made over the
    forecast period;

-- Overall indebtedness decreases from current levels over the
    forecast period, driven largely by amortization of vessel
    level debt;

-- Altera successfully refinances its major FPSO and shuttle
    tanker vessel-level debt to better match current contract
    expirations and/or after signing new contracts.

KEY RECOVERY RATING ASSUMPTIONS

The recovery analysis assumes that Altera Infrastructure L.P. would
be reorganized as a going-concern in bankruptcy rather than
liquidated.

Fitch assumes a 10% administrative claim.

In its recovery analysis, Fitch assumes a mid-cycle Going Concern
(GC) EBITDA of approximately $375 million and a default due to an
inability to refinance unsecured debt. Altera's GC EBITDA
assumption reflects a lower overall activity level in the regions
where Altera operates due to sustained low oil prices. The current
GC EBITDA estimate is lower than the previous recovery exercise
completed in August 2021. The decrease results from reduced FPSO
vessel recontracting assumptions.

An EV multiple of 6x is used to calculate a post-reorganization
valuation and is in line with recent reorganization multiples for
the energy sector, including three cases in the last five years
from the midstream sector in the U.S.

RATING SENSITIVITIES

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

-- FFO interest coverage above 4.0x and consolidated leverage,
    defined as total consolidated debt inclusive of 50% equity
    treatment of preferred equity and exclusive of non
    consolidated JV debt divided by consolidated EBITDA inclusive
    of cash distributions from non-consolidated JVs, below 7.0x on
    a sustained basis;

-- The contracting for redeployment of the Knarr FPSO vessel,
    following the conclusion of its current contract in mid-2022,
    or a sale of that vessel at a value in excess of existing debt
    on that vessel;

-- ShuttleCo successfully refinances its unsecured bonds due
    August 2022 and overall liquidity improves.

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

-- The commencement of another transaction process that Fitch
    would deem a DDE;

-- FFO interest coverage below 3.0x;

-- Consolidated leverage, defined previously, above 8.0x on a
    sustained basis;

-- Lack of pro-active action to address expiration of the
    revolving credit facility and upcoming maturities;

-- Sustained inability to recontract expiring FPSO or shuttle
    tanker contracts or extract sufficient value through a vessel
    sale;

-- Impairments to liquidity.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.

LIQUIDITY AND DEBT STRUCTURE

Limited Liquidity: Altera's liquidity consists of cash reserves of
$241 million as of June 31, 2021. The terms of certain financings
at subsidiaries of Altera cause the $241 million of cash to be
deemed by Fitch as not entirely readily available. Fitch calculates
readily available cash at the Altera level to be approximately $50
million. At the end of the second quarter of 2021, Altera was fully
drawn on the $225 million unsecured credit facilities provided by
its sponsor, Brookfield. However, with the exchange transaction,
these facilities were exchanged for 2026 PIK Notes. As such, there
is presently not a revolver at the Altera-level. Additionally,
while a Brookfield-provided $70 million unsecured credit facility
remains at ShuttleCo, it was fully drawn as of June 31, 2021.

Altera also has two secured revolving credit facilities at the
subsidiary level; however, these two facilities are fully drawn.
The two secured revolvers function more similarly to term loans or
mortgages, where the entire amount is borrowed upfront, and
amortizations of principal and interest are expected over the loan
life.

Beyond the current newbuild program (discussed below), ongoing
maintenance capital requirements are minimal (approximately $20
million to $40 million per year) and along with working capital
needs can be handled by Altera's ongoing operations, in Fitch's
view.

Altera's credit facilities contain certain financial covenants. The
company is in compliance with these covenants, and Fitch expects it
to remain in compliance with them over the forecast period.

Altera is proceeding through the final leg of a seven-vessel
shuttle tanker newbuild program that is expected to cost
approximately $970 million in total. Six of the seven vessels have
been delivered to Altera and are currently in operation. The
newbuild vessels are fully contracted, and Altera has successfully
secured all financing necessary to complete construction. The last
vessel is expected to be delivered in early 2022, and, once in
operation, these newbuilds are expected to improve Altera's cash
generating ability (through contracts signed at higher day rates).

Altera depends on the strength of the ship-finance and
fleet-finance markets. Fitch believes that Altera will be able to
refinance its subsidiary debt when due. Presently, Altera's
maturity schedule is manageable with less than $30 million in
secured debt maturing through the first quarter of 2022. This is in
addition to $200 million to $300 million in scheduled annual
vessel-level amortization. These obligations are serviced prior to
any upstream distributions being made to intermediate holdcos and
parent entities. Fitch believes required vessel amortization can be
handled with cash generated from operations.

ISSUER PROFILE

Altera is a limited partnership established under the laws of the
Republic of the Marshall Islands and headquartered in the UK. The
company owns and operates marine vessels that service offshore oil
producers in the North Sea, Brazil and the East Coast of Canada.

SUMMARY OF FINANCIAL ADJUSTMENTS

As per Fitch's 'Corporate Hybrids Treatment and Notching Criteria'
cross-sector criteria, Fitch treats the relevant securities for
Altera as 50% debt and 50% equity. Referenced leverage metrics are
adjusted as follows: consolidated balances and flows are used;
preferred shares are given 50% debt credit, 50% equity credit;
distributions from investees accounted for under the equity method
of accounting are included in EBITDA and equity earnings from these
entities are excluded; debt held at unconsolidated JVs is
excluded.

ESG CONSIDERATIONS

Altera Infrastructure L.P. has an ESG Relevance Score of '4' for
Group Structure due to an extremely complex group structure with
significant structural subordination, which has a negative impact
on the credit profile, and is relevant to the rating in conjunction
with other factors.

Altera Infrastructure L.P. has an ESG Relevance Score of '4' for
Financial Transparency due to limited transparency on ship level
financings, which has a negative impact on the credit profile, and
is relevant to the rating in conjunction with other factors.

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

BRAZIL: Fear of Stagflation Increases Significantly
---------------------------------------------------
Rio Times Online reports that disappointment with recent indicators
of the Brazilian economy has caused the market to rethink its
forecasts.  With local economic activity weaker than expected and
inflation exceeding estimates, stagflation is being discussed among
investors and economists, according to Rio Times Online.

The current of Brazilian economists talking about stagflation in
2022 is growing, especially after the semi-disappointing GDP
updates, the report notes.

The second-quarter PIB released last week contracted 0.1%, while
the consensus estimate for the period had been for a rise of 0.2%,
the report says.  On September 2, industrial production figures
came in lower than expected, the report discloses.

The Central Bank has been revising upward estimates for inflation
this year for more than 20 consecutive weeks, Rio Times relates.
While the consensus at the beginning of the year for IPCA was 3.32%
in 2021, today, the consensus is 7.27%, the report 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.

Fitch Ratings' credit rating for Brazil stands at 'BB-' with a
negative outlook (November 2020).  Fitch's 'BB-' Long-Term Foreign
and Local Currency Issuer Default Ratings (IDRs) has been affirmed
in May 2021.  Standard & Poor's credit rating for Brazil stands at
BB- with stable outlook (April 2020).  S&P's 'BB-/B' long-and
short-term foreign and local currency sovereign credit ratings for
Brazil were affirmed in December 2020.  Moody's credit rating for
Brazil was last set at Ba2 with stable outlook (April 2018). DBRS's
credit rating for Brazil is BB (low) with stable outlook (March
2018).


BRAZIL: July Industrial Production Down 1.3% from June, IBGE Says
-----------------------------------------------------------------
Rio Times Online reports that Brazilian industrial production
shrank 1.3% in July, compared to the previous month, according to
the Monthly Industrial Survey - Physical Production (PIM-PF),
released by the Brazilian Institute of Geography and Statistics
(IBGE).

In June, the indicator had a 0.2% retraction in the seasonally
adjusted series after revised data (it was stable), according to
the report.

With the July result, the industry was 2.1% below the pre-pandemic
level in February 2020, the report notes.  The performance was
below the median estimate of 34 financial institutions, the report
says.

Accumulated industrial production in the past 12 months was 7%.  In
2021 through July, industrial production has advanced 11%, notes
Rio Times Online.


                           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.

Fitch Ratings' credit rating for Brazil stands at 'BB-' with a
negative outlook (November 2020).  Fitch's 'BB-' Long-Term Foreign
and Local Currency Issuer Default Ratings (IDRs) has been affirmed
in May 2021.  Standard & Poor's credit rating for Brazil stands at
BB- with stable outlook (April 2020).  S&P's 'BB-/B' long-and
short-term foreign and local currency sovereign credit ratings for
Brazil were affirmed in December 2020.  Moody's credit rating for
Brazil was last set at Ba2 with stable outlook (April 2018). DBRS's
credit rating for Brazil is BB (low) with stable outlook (March
2018).

COMPANHIA SIDERURGICA: Moody's Upgrades CFR to Ba2, Outlook Stable
------------------------------------------------------------------
Moody's Investors Service has upgraded Companhia Siderurgica
Nacional (CSN)'s global scale corporate family rating to Ba2 from
Ba3. At the same time, Moody's upgraded to Ba2 from Ba3 the ratings
assigned to the senior unsecured notes issued by CSN Inova
Ventures, CSN Islands XII Corporation and CSN Resources S.A. and
guaranteed by CSN. The outlook for the ratings is stable.

Ratings upgraded:

Issuer: Companhia Siderurgica Nacional (CSN)

Corporate Family Rating, Upgraded to Ba2 from Ba3

Issuer: CSN Inova Ventures

Senior Unsecured Regular Bond/Debenture, Upgraded to Ba2 from Ba3

Issuer: CSN Islands XII Corporation

Senior Unsecured Regular Bond/Debenture, Upgraded to Ba2 from Ba3

Issuer: CSN Resources S.A.

Senior Unsecured Regular Bond/Debenture, Upgraded to Ba2 from Ba3

The outlook for all ratings is stable.

RATINGS RATIONALE

The upgrade of CSN's ratings to Ba2 from Ba3 reflects the
additional improvement in the company's liquidity profile and
leverage over the last few months, which increases its financial
flexibility to weather future volatility in operations and abates
risks associated with a limited track record of conservative
financial management.

CSN's cash position increased to BRL22.2 billion at the end of June
2021 (BRL25.3 billion including Usinas Siderurgicas de Minas Gerais
S.A. (Usiminas, Ba3 stable)' shares) from BRL1.6 billion at the end
of 2019 (BRL3.7 billion with Usiminas shares) as a result of the
BRL13.5 billion in free cash flow generated since mid-to-late 2020
and of the company's liquidity-enhancing initiatives, such as the
BRL4 billion IPO of its mining subsidiary and the monetization of
BRL1.3 billion related to Usiminas' preferred shares. CSN's debt
amortization schedule also improved substantially with liability
management initiatives that reduced debt costs and increased debt
tenor. Moody's expects that CSN will maintain a recurring cash
position close to BRL20 billion, compared to previous expectations
of BRL10 billion, and CSN has stated its target to maintain net
leverage below 1x overtime. Such milestones increase the visibility
over CSN's ability to maintain solid credit metrics and liquidity,
while still investing in growth and pursuing M&A activities.

CSN recently repurchased the totality of its $925 million notes due
in 2023 with proceeds from a new $850 million issuance, thus
addressing near-term maturities. Additionally, the company
announced in July 2021 the early redemption of its $1 billion
perpetual notes that will be concluded in September 23rd 2021. CSN
continues to negotiate the refinancing of BRL3.4 billion in debt
with Banco do Brasil S.A. (Ba2/(P)Ba2 stable, ba2) and Caixa
Economica Federal (Caixa) (Ba2/Ba2 stable, ba3) that come due in
2021-23. Pro forma to all transactions, CSN's cash position will
cover debt maturities through 2028, and the company's debt
amortization schedule will be even more comfortable, with only BRL3
billion in debt coming due in 2021-22, compared to BRL9.2 billion
at the beginning of the year. The company's total debt will also
decline further with the payment of the perpetual notes, although
CSN continues to raise new credit lines to fund growth.

CSN has been accelerating expansion investments and has publicly
stated its intention to pursue M&A, particularly in the cement
business. Despite the risks associated with an aggressive growth
strategy in some of its lines of business, Moody's believes that
CSN has built cushion in credit metrics and liquidity and will
therefore be able to maintain a stronger balance sheet during the
execution of its growth strategy. Additionally, CSN has levers to
pull to mitigate liquidity risks associated with M&As or higher
dividend distributions, such as continue pursuing additional debt
reduction and liability management initiatives, and other liquidity
events, namely the IPO of its cement subsidiary CSN Cimentos and
the monetization of the remainder of its shareholdings in
Usiminas.

CSN's Ba2 ratings reflect the company's position as a leading
manufacturer of flat-rolled steel in Brazil (Ba2 stable), with a
favorable product mix that is focused on value-added products, and
as a major producer of iron ore (second-largest exporter in
Brazil). Historically, the company has reported a strong
Moody's-adjusted EBITDA margin of 20%-35% (45.1% in the last twelve
months ended June 2021), supported by its solid domestic market
position, wide range of products across different segments and
globally competitive production costs for both steel and iron ore.
The ratings also incorporate the improvement in the company's
leverage and liquidity after several measures taken over the past
two years and the improved operating performance related to a
favorable environment for both iron ore and steel.

The ratings are constrained by CSN's recent track record of
aggressive financial policies, including a highly leveraged capital
structure, appetite for growth and dividend requirements to cover
debt service at the parent level, although Moody's recognizes that
the current actions taken by the company evidences a change in
approach to financial management. Additional credit concerns
include the company's exposure to the volatility of the steel
business in Brazil and to iron ore prices, its concentration in a
single production site in the mining segment, and potential
overhangs related to ongoing judicial disputes, such as the ones
regarding the Transnordestina project, a recent arbitrage process
and investigations involving the company's controlling
shareholder.

CSN's operating performance and credit metrics have improved
materially since 2019, backed by the strong performance of the iron
ore export business and a better than expected performance for
steel in 2021. The company's iron ore operations will remain strong
based on still high prices through 2022, relatively stable sales
volumes and a favorable exchange rate for exports, while the steel
business will benefit from higher than historical price levels,
firm demand in Brazil and improved profitability after investments
made by CSN in a blast-furnace to improve efficiency. CSN's
adjusted EBITDA increased to BRL20.6 billion in the last twelve
months ended June 2021 from BRL10.1 billion in 2020 and adjusted
leverage declined to 1.7x from 3.6x in the same period. Moody's
expects CSN's adjusted leverage ratios to decline to around 1-2x in
the next 12-18 months and to remain within the 2.0 -- 3.0x range
overtime based on a range of price scenarios for iron ore 62% Fe of
$80-$125 per ton and normalized steel operations.

RATING OUTLOOK

The stable outlook reflects Moody's expectation that the company's
operations will continue to perform well in the next 12-18 months,
and that CSN will maintain a strong balance sheet and liquidity
while pursuing growth.

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

The ratings could be upgraded if CSN proves to have a conservative
financial management for an extended period time, or if the company
is able to maintain its financial flexibility, either through a
strengthened cash position or lower debt balance through commodity
cycles. An upgrade would also require total leverage (measured by
total adjusted debt to EBITDA) below 3.0x (1.7x in the last twelve
months ended June 2021) and interest coverage ratios (measured by
EBIT to Interest expenses) above 4x (5.9x in the last twelve months
ended June 2021) on a sustainable basis.

The ratings could be downgraded if performance over the next 12 to
18 months deteriorates such that leverage remains above 4.0x and
EBIT/interest below 2.5x on a sustained basis. Evidences of more
aggressive financial policies or a deterioration in the company's
liquidity profile would also trigger a rating downgrade.

The principal methodology used in these ratings was Steel Industry
published in September 2017.

TAKATA CORP: Inks $42 Million Air Bag MDL Deal With Volkswagen
--------------------------------------------------------------
Law360 reports that Volkswagen has agreed to a $42 million
settlement to resolve consumer lawsuits over the use of defective
Takata Corp. air bag inflators in its vehicles, according to a
September 1, 2021, filing by the plaintiffs seeking
preliminary approval of the deal from a Miami federal court.

The proposed settlement with Volkswagen Group of America Inc., Audi
of America LLC and their affiliates covers 1. 35 million vehicles,
the plaintiffs said in their motion. The deal is modeled on
settlements previously approved with seven other automakers in the
sprawling multidistrict litigation. Consumers are also pursuing
claims against General Motors, Mercedes-Benz and Stellantis.

                        About TAKATA Corp.

Japan-based Takata Corporation (TYO:7312) --
http://www.takata.com/en/-- develops, manufactures, and sells
safety products for automobiles. The Company offers seatbelts,
airbags, steering wheels, child seats, and trim parts.
Headquartered in Tokyo, Japan, Takata operates 56 plants in 20
countries with approximately 46,000 global employees worldwide.
The Company has subsidiaries located in Japan, the United States,
Brazil, Germany, Thailand, Philippines, Romania, Singapore, Korea,
China, and other countries.  Takata Corp. filed for bankruptcy
protection in Tokyo and the U.S., amid recall costs and lawsuits
over its defective airbags. Takata and its Japanese subsidiaries
commenced proceedings under the Civil Rehabilitation Act in Japan
in the Tokyo District Court on June 25, 2017.

Takata's main U.S. subsidiary TK Holdings Inc. and 11 of its U.S.
and Mexican affiliates each filed voluntary petitions under Chapter
11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No.
17-11375) on June 25, 2017. Together with the bankruptcy filings,
Takata announced it has reached a deal to sell all its global
assets and operations to Key Safety Systems (KSS) for US$1.588
billion.

Nagashima Ohno & Tsunematsu is Takata's counsel in the Japanese
proceedings. Weil, Gotshal & Manges LLP and Richards, Layton &
Finger, P.A., are serving as counsel in the U.S. cases.
PricewaterhouseCoopers is serving as financial advisor, and Lazard
is serving as investment banker to Takata.  Ernst & Young LLP is
tax advisor.  Prime Clerk is the claims and noticing agent.  The
Debtors Meunier Carlin & Curfman LLC, as special intellectual
property counsel.

Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal
counsel, KPMG is serving as financial advisor, Jefferies LLC is
acting as lead financial advisor.  UBS Investment Bank also
provides financial advice to KSS.

On June 28, 2017, TK Holdings, as the foreign representative of the
Chapter 11 Debtors, obtained an order of the Ontario Superior Court
of Justice (Commercial List) granting, among other things, a stay
of proceedings against the Chapter 11 Debtors pursuant to Part IV
of the Companies' Creditors Arrangement Act.  The Canadian Court
appointed FTI Consulting Canada Inc. as information officer. TK
Holdings, as the foreign representative, is represented by McCarthy
Tetrault LLP.

The U.S. Trustee has appointed an Official Committee of Unsecured
Trade Creditors and a separate Official Committee of Tort
Claimants.

The Official Committee of Unsecured Creditors has selected
Christopher M. Samis, Esq., L. Katherine Good, Esq., and Kevin F.
Shaw, Esq., at Whiteford, Taylor & Preston LLC, in Wilmington,
Delaware; Dennis F. Dunne, Esq., Abhilash M. Raval, Esq., and Tyson
Lomazow, Esq., at Milbank Tweed Hadley & McCloy LLP, in New York;
and Andrew M. Leblanc, Esq., at Milbank, Tweed, Hadley & McCloy
LLP, in Washington, D.C., as its bankruptcy counsel.  The Committee
has also tapped Chuo Sogo Law Office PC as Japan counsel.  The
Official Committee of Tort Claimants selected Pachulski Stang Ziehl
& Jones LLP as counsel.  Gilbert LLP will evaluate the insurance
policies.  Sakura Kyodo Law Offices is serving as special counsel.

Roger Frankel, the legal representative for future personal injury
claimants of TK Holdings Inc., et al., tapped Frankel Wyron LLP and
Ashby & Geddes PA to serve as co-counsel.

Takata Corporation ("TKJP") and affiliates Takata Kyushu
Corporation and Takata Services Corporation commenced Chapter 15
cases (Bankr. D. Del. Case Nos. 17-11713 to 17-11715) on Aug. 9,
2017, to seek U.S. recognition of the civil rehabilitation
proceedings in Japan. The Hon. Brendan Linehan Shannon oversees the
Chapter 15 cases. Young, Conaway, Stargatt & Taylor, LLP, serves as
Takata's counsel in the Chapter 15 cases.

In February 2018, the U.S. Bankruptcy Court confirmed the Fifth
Amended Chapter 11 Plan of Reorganization filed by TK Holdings,
Inc. ("TKH"), Takata's main U.S. subsidiary, and certain of TKH's
subsidiaries and affiliates.





===========================
C A Y M A N   I S L A N D S
===========================

ATON FINANCIAL: Moody's Assigns 'B1' Long Term Issuer Ratings
-------------------------------------------------------------
Moody's Investors Service has assigned B1 long-term and Not Prime
short-term local and foreign currency issuer ratings to Aton
Financial Holding (AFH), a holding company that is incorporated in
the Cayman Islands and consolidates full ownership over a group of
operating companies that perform investment banking operations with
a focus on Russia. The overall outlook is stable.

RATINGS RATIONALE

The B1 issuer ratings assigned to AFH are based on (1) its low
appetite for market and credit risks in its day-to-day activities;
(2) its conservative liquidity management and (3) balanced revenue
mix across products and business lines with recently improving
operating performance and growing clients' assets under management.
At the same time, AFH's ratings are constrained by (1) elevated
leverage that exposes the group to "tail" risks in case of
significant market dislocations, (2) volatile profitability and (3)
predominant focus on Russia's (Baa3 stable) emerging capital
market.

AFH's risk management is conservative, as indicated by AFH's low
appetite for credit and modest appetite for market risks. In
particular, the company's market risk is minimised through
conservative collateral procedures and moderate limits, as well as
sufficient margins. The high-risk assets usually do not exceed 10%
of the group's total assets with most of the transactions are made
for clients and mostly hedged. As to the management of the
company's counterparty risk, most of the transactions are settled
either through clearing houses or on a delivery-versus-payment
basis with a highly-rated financial institutions.

Nevertheless, AFH operates with an elevated leverage, that is
mainly driven by money-market operations (mainly REPO). AFH's
balance-sheet leverage, measured by total assets and
off-balance-sheet exposures/tangible common equity (TCE), was at
above 11x as of year-end 2020. Although risks are conservatively
managed on a daily basis with conservative haircuts and low
counterparty risks, this relatively elevated leverage exposes the
group to operational and solvency risks in case of sharp market
dislocations and/or in case failures of largest counterparties to
settle transactions on time.

The company operating performance is highly volatile and was
recently improving, backed by the recently rapidly growing clients'
assets along with increasing appetite for trading in risk assets.

RATIONALE FOR STABLE OUTLOOK

The stable outlook reflects Moody's expectation of no significant
changes in the group's risk appetite, leverage and liquidity in the
next 12-18 months.

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

Moody's would consider a positive rating action on the company's
ratings in case of a sustained and strong operating performance,
translating into capital build-up and a moderation of leverage at a
lower level.

AFH's long-term ratings could be downgraded in case of an increase
in risk appetite, leverage or in case of a prolonged loss-making
performance.

LIST OF AFFECTED RATINGS

Issuer: Aton Financial Holding

Assignments:

Long-term Issuer Ratings, Assigned B1

Short-term Issuer Ratings, Assigned NP

Outlook Action:

Outlook, Assigned Stable

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Securities
Industry Market Makers Methodology published in November 2019.

EAGLE HOSPITALITY: Woodbridge Hotel Sold by Receiver for $23.5M
---------------------------------------------------------------
Ishika Mookerjee of Bloomberg News reports that the Superior Court
of New Jersey on Aug. 27, 2021 entered an order approving the sale
of Delta Woodbridge Hotel and other assets by a rent receiver to a
third party for $23.5 million, according to an Eagle Hospitality
Trust filing to the Singapore stock exchange.

Pursuant to the final judgment for foreclosure, the outstanding
principal balance of the Delta Woodbridge mortgage loan is approx.
$37.6 million, with the amount to generally be offset by the
proceeds of the sale of the property.

                    About Eagle Hospitality Group

Eagle Hospitality Trust -- https://eagleht.com/ -- is a hospitality
stapled group comprising Eagle Hospitality Real Estate Investment
Trust ("Eagle H-REIT") and Eagle Hospitality Business Trust. Based
in Singapore, Eagle H-REIT is established with the principal
investment strategy of investing on a long-term basis, in a
diversified portfolio of income-producing real estate which is used
primarily for hospitality and/or hospitality-related purposes, as
well as real estate-related assets in connection with the
foregoing, with an initial focus on the United States.

EHT US1, Inc., and 26 affiliates, including 15 LLC entities that
each owns hotels in the U.S., sought Chapter 11 protection (Bankr.
D. Del. Lead Case No. 21-10036) on Jan. 18, 2021.

EHT US1, Inc., estimated $500 million to $1 billion in assets and
liabilities as of the bankruptcy filing.

The Debtors tapped PAUL HASTINGS LLP as bankruptcy counsel; FTI
CONSULTING, INC., as restructuring advisor; and MOELIS & COMPANY
LLC, as investment banker. COLE SCHOTZ P.C. is the Delaware
counsel. RAJAH & TANN SINGAPORE LLP is Singapore Law counsel, and
WALKERS is Cayman Law counsel. DONLIN, RECANO & COMPANY, INC., is
the claims agent.





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

DOMINCAN REPUBLIC: Gov't. Mulls Cutting Taxes, Removing Exemptions
------------------------------------------------------------------
Dominican Today reports that lowering taxes and eliminating
exemptions are among the proposals that the Government has on the
table, facing a fiscal pact that is projected to take effect in
early 2022.

President Luis Abinader said a fiscal pact does not always imply a
tax increase. "Every time you talk about a tax pact, you talk about
increasing taxes, and it is not like that," according to Dominican
Today.

Faced with the concern that a tax reform will further sink the
middle class, hard hit by the effects of the pandemic, the
president assured that "those who have to bear any increase in
taxes are those who can the most," the report notes.

Regarding the inequality promoted by the Dominican tax code
regarding tax exemptions, Abinader assures that the approval of a
fiscal pact would bring about the elimination of exemptions, the
report relays.


                 About Dominican Republic

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

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

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

Fitch Ratings on Jan. 18, 2021, assigned a 'BB-' rating to
Dominican Republic's USD1.5 billion 5.3% notes due Jan. 21, 2041.
Concurrently, the Dominican Republic reopened its 2030 4.5% notes
for an additional USD1.0 billion, which Fitch rates 'BB-', raising
the total outstanding amount of the 2030 notes to USD2.0 billion.

Standard & Poor's, on December 4, 2020, affirmed its 'BB-'
long-term foreign and local currency sovereign credit ratings on
the Dominican Republic. The outlook remains negative. S&P also
affirmed its 'B' short-term sovereign credit ratings. The negative
outlook reflects S&P's view that it could lower the ratings on the
Dominican Republic over the next six to 18 months, given the
severe impact of the COVID-19 pandemic on the sovereign's already
vulnerable fiscal and external profiles, as well as the potential
for a weaker-than-expected economic recovery.

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).




=============
E C U A D O R
=============

EMPRESA PUBLICA: Fitch Affirms B- Rating on Senior Unsec. Notes
---------------------------------------------------------------
Fitch Ratings has affirmed the senior unsecured notes issued by
Empresa Publica de Exploracion y Explotacion de Hidrocarburos
Petroamazonas EP (PetroAmazonas) due on Dec. 6, 2021 at
'B-'/'RR4'.

The affirmation reflects the affirmation of the Republic of Ecuador
on Aug. 31, 2021.

The notes are fully covered by a sovereign guarantee, which
constitutes a general, direct, unsecured, unsubordinated and
unconditional obligation of the sovereign. The guarantee is backed
by the full faith and credit of the Republic of Ecuador and ranks
equally in terms of priority with other sovereign debt. This
linkage reflects PetroAmazonas' importance to the government of
Ecuador as the main supplier of the country's energy supply and a
large contributor of U.S. dollar-linked revenues.

KEY RATING DRIVERS

PetroAmazonas' senior unsecured notes rating reflect those of
Republic of Ecuador as a guarantor. The notes mature on Dec. 6,
2021 and have a total outstanding balance of USD111 million, as of
Aug. 31, 2021.

Ecuador's 'B-' rating balances high per capita income and social
indicators with weak economic growth (both before and during the
pandemic), a low albeit improving external liquidity position, and
a poor debt repayment record that includes a recent distressed bond
exchange in 2020.

The Stable Outlook balances prospects for fiscal consolidation and
stronger growth under a new market-oriented government with
uncertainty around the strategy and political viability of plans to
achieve these goals. Fiscal and financing challenges persist
despite the relief offered by the bond restructuring, although the
postponement in commercial debt service this entailed has helped
reduce near-term repayment risks. Higher oil prices will support
fiscal and growth objectives but do not obviate the need for
potentially difficult reforms and adjustments to achieve them.
Fitch expects the government will be able to renegotiate an
Extended Fund Facility (EFF) with the IMF, for which talks are
underway.

Fitch projects Ecuador's economy will grow 4% in 2021 after a 7.8%
contraction in 2020, reflecting a relatively slow recovery, albeit
one stronger than previously envisioned given higher oil prices
that will support a more accommodative fiscal stance, a rapid
recovery in credit growth (9% yoy as of July), and the acceleration
in vaccinations.

DERIVATION SUMMARY

The rating of PetroAmazonas' notes linkage to the sovereign is
similar in nature to its peers YPF S.A. (CCC), Petroleo Brasileiro
S.A. (Petrobras, BB-/Negative), Ecopetrol S.A. (BB+/Stable),
Petroleos Mexicanos (BB-/Stable), Petroleos del Peru - Petroperu
S.A. (BBB+/Negative) and Empresa Nacional del Petroleo (ENAP,
A-/Stable). These companies all have strong linkage to their
respective sovereigns given their strategic importance to each
country and the potentially significant negative sociopolitical and
financial implications their financial distress would have for
their countries.

The 'B-'/'RR4' rating on PetroAmazonas's notes reflects its close
linkage with the sovereign rating of Ecuador due to its strategic
importance to the country as one of the largest suppliers of crude
oil. Ecuador depends on oil exports as a significant source of hard
currency for the country, which historically has represented 50% of
the country's exports. The sovereign linkage is further evidenced
by the sovereign guarantee provided to PetroAmazonas to cover its
debt obligations under the notes.

KEY ASSUMPTIONS

-- Senior unsecured notes fully guaranteed by the Republic of
    Ecuador in 2020;

-- Approved budget and consequent government transfers will be
    enough to cover operating expenses, capex investments and debt
    service payments.

KEY RECOVERY RATING ASSUMPTIONS

The 'RR4' Recovery Rating reflects average recovery prospects in
the event of default. The recovery analysis assumes that the value
of PetroAmazonas would be assessed under a going concern approach;

Fitch caps Petroamazonas' notes recovery prospects to 'RR4' as
Fitch applies a 'RR4' cap for bonds issued by Ecuador corporates
and applies a recovery cap of 'RR4' to instrument ratings in
certain higher-risk jurisdictions. This reflects Fitch's view that
average recoveries are likely to be lower in regimes that are
debtor friendly and have weak creditor rights. Ecuador issuers are
generally subject to Recovery Ratings of up to 'RR4'.

RATING SENSITIVITIES

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

-- An upgrade of the sovereign.

The main factors that could lead to a positive rating action on
Ecuador:

-- Public Finances: Fiscal consolidation that supports a
    sustained reduction in government financing needs and a
    downward trajectory for general government debt/GDP over the
    medium term, and improvement in financing access.

-- Macro: Progress on reforms that could support stronger medium
    term economic growth prospects.

-- External Finances: A favorable trajectory in the external
    position, supportive of adequate reserve levels that support
    the dollarization regime.

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

-- A downgrade of the sovereign.

The main factor that could lead to a negative rating action on
Ecuador:

-- Public Finances: Intensification of financing stress due to
    failure to reduce the fiscal deficit or secure adequate
    external funding, posing a risk to near-term sovereign
    repayment capacity.

ESG CONSIDERATIONS

Fitch does not provide separate ESG scores for PetroAmazonas as its
ratings and ESG scores are derived from its parent.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.

ISSUER PROFILE

Empresa Publica de Exploracion y Explotacion de Hidrocarburos
Petroamazonas EP (PAM) is organized under the laws of Ecuador to
manage exploration and production operations undertaken by Ecuador.
The company is the only state-owned company that carries out
upstream operations in Ecuador. It explores and produces light,
medium, heavy and extra heavy crude oil, as well as natural gas.



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

I-CREATE: Incurs $29 Million Loss for Year Ending December 2020
---------------------------------------------------------------
RJR News reports that I-Create Limited recorded a loss of $29
million for the year ended December 31, 2020.

It also accumulated a deficit of $89 million, according to RJR
News.

As at December 31, 2020, the company's current liabilities exceeded
its current assets by $22 million, the report notes.

From inception, the company has not achieved the level of revenues
projected and required to sustain its operations, the report
relays.

According to the company, this indicates the existence of a
material uncertainty that may cast significant doubt on its ability
to continue, the report adds.




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

TOTAL PLAY: Fitch Affirms 'BB-' LT IDRs, Outlook Stable
-------------------------------------------------------
Fitch Ratings has affirmed Total Play Telecomunicaciones S.A. de
C.V.'s (Total Play) Long-Term Foreign and Local Currency Issuer
Default Ratings (IDRs) at 'BB-'/Outlook Stable. Fitch has also
affirmed the company's foreign currency senior unsecured debt
issuance at 'BB-'.

Total Play benefits from the stable and recurring revenue of the
Pay-TV and broadband business. The company's network investment
positions it as an important player in the industry. Total Play has
also rapidly increased its subscriber base due to a higher value
service offering. 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 during 2021 and 2022 as
the company completes its expansion plan.

KEY RATING DRIVERS

Profitability Continuously Improving: Increased network penetration
is key to growing revenues and expanding margins. The company has
continued to made extensive network investments that have increased
its homes passed, business scale and profitability. Network
penetration is expected to increase to 21.5% as of YE2021 versus
13.9% in 2018 (adjusted per Inegi 2020 census), while EBITDA
margins are expected to be around 38.0% as of YE2021 versus 27.7%
in 2018. The company's strategy to cross selling telecom services
and offering differentiated services should lead to improved
margins over the medium term. Bundling offers help increase margins
through efficiencies and reduced churn. The company's network is
100% fiber optic; this allows it to offer a better experience with
faster start-up times and superior image quality.

Improving Scale: Total Play has positioned itself as an important
player in the industry in terms of network coverage and should
improve its market share in the near term. The company has managed
to maintain strong growth despite operating in a competitive
industry. During the last four years, the company has tripled its
RGU while maintaining a higher ARPU (Average Revenue Per User) than
its competitors due to its higher value service offering. During
2021 and 2022, the company plans to continue to increase the number
of homes passed.

Competitive Industry: Subscriber growth potential remains high for
Total Play given the low penetration of broadband in Mexico.
According to IFT (Insituto Federal de Telecomunicaciones), as of YE
2019, just around 21% of the total homes have a triple-play
service, while nearly 55% of households have access to
fixed-broadband services. 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.

Service and Customer diversification: Total Play has a balanced
revenue mix and customer and service diversification. As of June
2021, 76% of the company´s revenue comes from the residential
segment and 24% from the Enterprise segment. Around 64% of the
residential revenue comes from triple play packages while in the
enterprise segment 58% of the revenue comes from corporate
customers while 42% comes from government entities. The company has
rapidly growth it's RGU of its residential segment from 2.8 million
RGU at YE2018 to 7.7 million as of June 2021.

Growing Stage Pressures FCF: Total Play´s expected addition of
subscribers will result in negative FCF generation over the next
two years. Fitch expects this growth to be funded with additional
debt and with internally generated funds. Total Play capital
intensity measured by capex/sales should remain at around 50% in
2021 and to start lowering to 35% in 2022. Capex will largely
consume the projected cash flow from operations (CFFO). The capital
intensity ratio should continue to decline in 2023 at around 26%
and to around 24% in 2024. 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.

Gradual Deleveraging: Fitch expects that Total Play's leverage
ratio calculated as total debt/EBITDA (Pre-IFRS16) to be around
4.3x by YE2021. As the operating margins continue to improve mainly
backed by an increase in subscribers, the company's leverage ratio
will continue trending down to around 3.3x as of YE2022. Total
Play's ratings incorporate the expectation that the company would
reduce leverage as the company improves its scale.

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. Compared with the consolidated
Mexican rival Televisa, which has lower leverage levels, and a more
diversified business, Total Play has higher leverage levels,
smaller market share and lower network penetration. Televisa has
expanded its broadband subscribers over the last few years, gaining
market share from America Movil, who has not been granted a pay-TV
licence due to its market position in the Mexican telecom
industry.

Total Play's financial structure is deemed broadly in line with VTR
Finance N.V. (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 33% and 32%, respectively. VTR
has a long track record of stable cash flow generation. Total Play
́s business profile could be considered similar to Axtel S.A.B. de
C.V. (BB/Stable) in that both are small scale and undiversified
fixed-line providers. Axtel sold off its B2C network and its
spectrum to focus on its core enterprise segment.

Cable and Wireless (C&W; BB-/Stable) has a weaker financial
structure than Total Play, but better service and geographical
diversification. C&W benefits from its operations in a series of
mostly duopoly markets (excluding Panama mobile). Also, the
company's revenue mix per service is well balanced, with mobile
accounting for approximately 25% of total sales, fixed-line with
28% and business to business with 48% of revenues in 2020. C&W
strengths are tempered by Limited Latin America Ltd.'s (LLA)
financial management which limits any material deleveraging.

Total Play's leverage levels, scale and products are similar to
Talk Talk Telecom Group PLC (Talk Talk; BB-/Stable), which has over
4.0 million broadband subscribers in the U.K. and a Fitch-estimated
market share of about 11%. The company offers a value-for-money
product proposition that appeals to a cross-section of the U.K.
telecoms market. Talk Talk has a different cost structure given the
company does not own its network. Fitch expects growth in total
U.K. broadband market will slow, making growing its subscriber base
harder.

KEY ASSUMPTIONS

-- Revenue growth to continue near 38% in 2021 and 21% in 2022
    due to the company´s expansion plan strategy;

-- EBITDA margins of 38% in 2021 slightly improving to 38.5% in
    2022;

-- Capex to sales ratio at around 50% during 2021 and 35% in
    2022;

-- Negative FCF generation in 2021-2022;

-- No dividend payments.

RATING SENSITIVITIES

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

-- Larger scale and market share;

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

-- Positive FCF generation thought the cycle;

-- Liquidity ratio (available cash + undrawn portion of committed
    facilities+ FCF)/ 12-month debt maturities consistently above
    1.0x.

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;

-- Weaker liquidity position.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: As of June 2021, Total Play had an unrestricted
cash balance of MXN1,129 million and short-term debt maturities of
MXN4,403 million. Around MXN1,386 million are related to bank debt,
while MXN1,514 to capital leases and MXN1,503 to accounts playable
factoring. Fitch expects the company will be able to refinance part
of its Short-Term debt maturities in the near term, which should
extend its debt maturity profile. Total Play has also hedged the
principal and coupon payments of the USD575 million senior
unsecured notes due 2025 to maintain the alignment of its cashflow
generation with its debt amortizations.

Fitch includes nonrecourse factoring of accounts payable of
approximately MXN1,503 million in its debt calculations. The
factoring adjustment allows Fitch to compare issuers that may use
different sources of funding, as immediate replacement funding is
required if the payables financing shuts down.

ISSUER PROFILE

Total Play is a Mexican provider of fixed-telecommunications
services to residential and enterprise customers including
government entities. The company offers pay-television,
fixed-broadband and fixed-voice services through its competitive
fiber-to-the-home (FTTH) via a gigabit passive-optical network
(GPON) network.

ESG CONSIDERATIONS

Total Play has an Environmental, Social and Governance (ESG)
Relevance Score of '4' for Governance Structure, resulting from its
ownership concentration and 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
relevant to the rating in conjunction with other factors.

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


                           *********


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 2021.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
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.


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