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

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

          Wednesday, December 30, 2020, Vol. 21, No. 261

                           Headlines



B R A Z I L

BRAZIL: IDB OKs $1.5BB Loan to Up Efficiency in Social Spending


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Fails to Collect Mining Revenue


J A M A I C A

JAMAICA: BOJ Keeps Interest Rate Offered on Deposit-Taking Firms
JAMAICA: BOJ Reports Increase in Business Conditions Index


M E X I C O

BANCO COMPARTAMOS: S&P Downgrades ICR to BB+/B, Outlook Negative


P A N A M A

UEP PENONOME: S&P Rates $262.7MM Senior Secured Notes 'BB'


P U E R T O   R I C O

JC PENNEY: Egan-Jones Withdraws D Senior Unsecured Ratings
RENT-A-CENTER INC: $1.65BB Acima Deal No Impact on Moody's Ba3 CFR


T R I N I D A D   A N D   T O B A G O

CONSOLIDATED ENERGY: S&P Downgrades ICR to B+, Outlook Negative


X X X X X X X X

CARIBBEAN: Institutional Reforms, Infrastructure Crucial for Growth

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B R A Z I L
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BRAZIL: IDB OKs $1.5BB Loan to Up Efficiency in Social Spending
---------------------------------------------------------------
The Inter-American Development Bank (IDB) recently approved a
Conditional Credit Line for Investment Projects (CCLIP), called the
Social Expenditure Modernization Program in Brazil and a first
individual operation for the improvement of public policies for
early childhood in the country.

During the last two decades, Brazil has experienced an improvement
in social indicators. Early childhood and preschool education
expanded from 3.5 million children to 5 million. Coverage in
primary education is universal and has grown at all other
educational levels. Likewise, the infant mortality rate decreased
by 60% and the maternal mortality rate by 50%. In addition, between
2006 and 2016, nearly 11 million formal jobs were created in the
country. In 2018, an 89% of people aged 65 and over received a
contributory or non-contributory pension.

However, Brazil shows results that are below expectations given the
levels of social spending. To support the Government of Brazil in
meeting the challenge of more efficient social spending, it is
proposed to use this conditional line that helps increase
efficiency in the administration of social spending in Brazil. This
will be done through three modalities: strengthening operational
management capacities at the sectoral level; strengthen the
strategic management capacities of sector institutions; and improve
the provision of high-quality social services. This is expected to
benefit all citizens of Brazil, who will see an increase in the
quality of social services in the country.

For its part, the first operation seeks to contribute to improving
the child development of the Criança Feliz Program (PCF)
beneficiary population in a more efficient way, refining and
qualifying their actions, for this it will seek to improve the
quality of the PCF offers for child development; and strengthen its
management. This is expected to expand the scope of the program to
reach three million beneficiaries.

The $1.5 billion loan will be executed over a five-year period and
has a 25-year repayment term with an interest rate based on LIBOR.

                          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.



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D O M I N I C A N   R E P U B L I C
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DOMINICAN REPUBLIC: Fails to Collect Mining Revenue
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Dominican Today reports that of the 43 mining deposits owned by the
State, in the last administration, only 20 payments were received,
said Cesar Cedeno, director of National Assets and the State Sugar
Council, noting that these economic resources did not enter the
State coffers in the past administration.

He highlighted that the inclusion of these gypsum, aggregate and
coral mines in the collections of the State Sugar Council has led
to increase their monthly collections from RD$25 million to RD$81
million in the last four months, according to Dominican Today.

"For several years the State did not receive the resources
corresponding to the rents for exploitation of some mining
resources," Cedeno said, the report notes.

                       Recovery of Assets

In the process of cleaning up both entities, they have managed to
raise performance indicators by 32 percentage points and increase
collections, Cedeno said, citing the case of Bienes Nacionales as
an example, which went from charging four million pesos a month to
RD$15 million, the report adds.

                   About Dominican Republic

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

Luis Rodolfo Abinader Corona is the current president of the
nation.

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

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

Standard & Poor's, 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).



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J A M A I C A
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JAMAICA: BOJ Keeps Interest Rate Offered on Deposit-Taking Firms
----------------------------------------------------------------
RJR News reports that the Bank of Jamaica (BOJ) is maintaining the
interest rate offered on deposit-taking institutions' overnight
placements, at 0.5 percent.

A statement from the Central Bank says the policy decision is based
on its assessment that inflation will generally continue to remain
in the 4 to 6 per cent target range over the next two years,
according to RJR News.

It is said this is likely despite the impact of the recent rains on
agricultural prices, 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.

JAMAICA: BOJ Reports Increase in Business Conditions Index
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RJR News reports that the Bank of Jamaica's November Survey of
Businesses' Inflation Expectations shows fewer persons believe
business conditions have worsened.

According to the report, the Present Business Conditions Index
increased to 28.7 relative to 24.6 in the previous survey, the
report notes.

The Future Business Conditions Index rose to 138.5 compared to
128.2 in October, according to RJR News.

The Central Bank says the increase in the Present Business
Conditions Index reflected a decrease in the number of respondents
of the view that conditions are worse, the report notes.

The outturn for the Future Business Conditions Index mainly showed
an increase in the proportion of respondents who believe that
conditions will be better, the report relays.

                       About Jamaica

Jamaica is an island country situated in the Caribbean Sea. Jamaica
is an upper-middle income country with an economy heavily dependent
on tourism.  Other major sectors of the Jamaican economy include
agriculture, mining, manufacturing, petroleum refining, financial
and insurance services.

Standard & Poor's credit rating for Jamaica stands at B+ with
negative outlook (April 2020).  Moody's credit rating for Jamaica
was last set at B2 with stable outlook (December 2019).  Fitch's
credit rating for Jamaica was last reported at B+ with stable
outlook (April 2020).

As reported in the Troubled Company Reporter-Latin America, Fitch's
revision of Jamaica's outlook in April 2020 to Stable from Positive
reflects the shock to Jamaica from the coronavirus pandemic, which
is expected to lead to a sharp contraction in its main sources of
foreign currency revenues: tourism, remittances and alumina
exports.



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M E X I C O
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BANCO COMPARTAMOS: S&P Downgrades ICR to BB+/B, Outlook Negative
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S&P Global Ratings lowered its long- and short-term global scale
issuer credit ratings on Banco Compartamos S.A. Institucion de
Banca Multiple (Compartamos) to 'BB+/B' from 'BBB-/A-3'. S&P also
lowered its long-term national scale rating to 'mxAA' from 'mxAA+',
as well as its national scale senior unsecured debt ratings to
'mxAA' from 'mxAA+' on the bank. At the same time, S&P affirmed the
short-term national scale rating at 'mxA-1+' and withdrew the
COMPART 20-2 issue level rating because it was never placed in the
local debt market. The outlook on the ratings is negative.

The downgrade reflects the sharp deterioration in the bank's loan
portfolio driven by the deeper impact of the COVID-19 pandemic on
the microlending sector compared to other economic sectors. S&P
anticipates that Compartamos' asset quality metrics will slip more
than those of other banks and peak in the fourth quarter of this
year, as credit relief and deferrals have come to an end. S&P said,
"We forecast the bank's NPA ratio to be 13.6% as of December 2020.
The quick surge in nonperforming loans (NPLs) also reflects the
shorter credit cycle of microlending operations. Therefore, the
impact to the bank's loan book was reflected before the rest of the
banking system. Nevertheless, we consider Compartamos' clients as
more vulnerable to economic slowdowns because most are
self-employed or own highly affected micro-businesses, resulting in
steeper deterioration. The bank has implemented measures such as
loan payment deferrals and tighter origination policies for loans
granted after the beginning of the pandemic, which account for
about 70% of its total portfolio as of September 2020. However,
because we still expect challenging economic conditions in 2021, we
forecast NPA and net charge-off ratios to be about 4.5% and 20.2%,
respectively, next year; consistent with a weaker risk position. On
the other hand, we expect loss reserves to continue completely
covering NPAs."



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P A N A M A
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UEP PENONOME: S&P Rates $262.7MM Senior Secured Notes 'BB'
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S&P Global Ratings assigned its 'BB' issue-level rating to UEP
Penonome II, S.A.'s $262.7 million dollar-denominated senior
secured notes due 2038 following the receipt and satisfactory
review of all transaction documents. The amount issued is lower
than its previous assessment, while interest rate is slightly
above; which combined resulted neutral for the ratings.

The stable outlook reflects S&P's expectation that UEP II will
generate relatively stable revenues in the next 12-24 months,
driven by its expectation of the P90 wind resource, and that the
debt service coverage ratio (DSCR) will remain at the lower end of
the 1.20x-1.25x range.

Panama-based power generation company UEP Penonome II established
the final conditions on its $262.7 million dollar-denominated
senior secured notes due 2038.

The notes will be ultimately guaranteed on a first priority basis
by all existing and future tangible and intangible assets owned by
the project, its accounts, and equity. In addition, the notes will
be unconditionally and irrevocable guaranteed in a joint and
several manner by Tecnisol. UEP II will use the proceeds from the
issuance to pre-pay existing debt at the issuer's level, grant an
intercompany loan to Tecnisol that will cancel intercompany debt
with InterEnergy, pay fees and expenses, and for other general
corporate purposes. The transaction has unique characteristics--
the project is comprising the issuer and the guarantors – that
lead us to rate the debt based on our "Principles Of Credit
Ratings" methodology.

Subsequently, S&P defines the project considering the cash flows
generated by the issuer and the guarantors as if they were a single
issuer because it believes bondholders will bear a single
likelihood of default risk. S&P bases this conclusion on the
following factors:

-- There will be a single cash flow waterfall mechanism where all
cash flows available for debt service (CFADS) will be
consolidated;

-- The two entities share corporate history and purpose. UEP II
and Tecnisol are part of InterEnergy's strategy and common purpose
of owning, developing, and operating renewable projects in Latin
America;

-- Both entities share the same management and corporate
functions; and

-- Although the project has a different board of directors,
members are appointed by InterEnergy.




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P U E R T O   R I C O
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JC PENNEY: Egan-Jones Withdraws D Senior Unsecured Ratings
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Egan-Jones Ratings Company, on December 17, 2020, withdrew its 'D'
foreign currency and local currency senior unsecured ratings on
debt issued by JC Penney Company Inc.

Headquartered in Plano, Texas, J. C. Penney Company, Inc., through
its subsidiary, operates department stores in the United States and
Puerto Rico.

RENT-A-CENTER INC: $1.65BB Acima Deal No Impact on Moody's Ba3 CFR
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Moody's Investors Service stated that Rent-A-Center, Inc's (Ba3
stable) announced acquisition of Acima Holdings LLC has no
immediate impact on its credit ratings and stable outlook. The
transaction, valued at approximately $1.65 billion or around 7.3x
adjusted 2020 projected EBITDA, is expected to close in the first
half of 2021 subject to customary closing conditions, including
clearance under the Hart-Scott-Rodino Antitrust Improvements Act.
Rent-A-Center expects to fund the transaction with $1.273 billion
in cash and around 10.8 million shares of Rent-A-Center common
stock, currently valued at $377 million.

Rent-A-Center's Ba3 corporate family rating and stable outlook are
not currently impacted despite the expected significant increase in
debt to fund the acquisition and heightened integration risk. The
company's credit metrics are currently very strong due to solid
operating performance and debt reduction from excess cash flow over
the past three years. As of September 30, 2020, lease-adjusted
debt-to-EBITDAR was around 1.1 time. Moody's expects that pro forma
leverage will increase to around 3.0 times following transaction, a
level that is appropriate for the current Ba3 CFR. The transaction
also brings many strategic benefits, such as expanding
Rent-A-Center's position as a premier fintech platform in the
traditional and virtual lease-to-own market, further diversify its
retail partner base and product verticals, expand its e-commerce
platform, and create significant synergies.

Rent-A-Center, Inc., with headquarters in Plano, Texas is one of
the largest operators of consumer rent-to-own stores in North
America with over 1,950 Company operated stores located in the US,
Mexico and Puerto Rico and around 460 franchised rent-to-own stores
that operate under the "Rent-A-Center," "ColorTyme" and "RimTyme"
banners. Preferred Lease provides virtual and staffed lease-to-own
solutions to retail partners in stores and online, in the US and
Puerto Rico. Revenue was approximately $2.8 billion for the twelve
month period ended September 30, 2020.



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T R I N I D A D   A N D   T O B A G O
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CONSOLIDATED ENERGY: S&P Downgrades ICR to B+, Outlook Negative
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S&P Global Ratings lowered its issuer credit and issue-level
ratings on Consolidated Energy Ltd. (CEL), a petrochemical company
with operations in Trinidad and the U.S. Gulf Coast, to 'B+' from
'BB-'.

The negative outlook reflects S&P's view that CEL's adjusted
leverage will remain high through 2021. The outlook also reflects
the high degree of uncertainty over the company's recovery and the
risk that a prolonged economic stress could continue to dent CEL's
production and EBITDA.

The global economic downturn and the dramatic decline in oil prices
during the year, triggered by the COVID-19 pandemic, pushed down
the international methanol prices during the second and third
quarters of 2020. This kept the company's sales prices and EBITDA
under pressure longer than previously expected. Also, the softer
demand caused by a reduction of industrial and manufacturing
activity dented CEL's operational performance. The company had to
stop the production at two of its plants during the second quarter
and most of the third quarter, reducing production, revenue, and
EBITDA. Therefore, we now expect an EBITDA decline of about 40% for
2020 from previous-year level. Combined with a stable debt level
(including operating leases) of about $3.4 billion, the downgrade
mirrors higher leverage metrics, with debt to EBITDA well above
6.0x for 2020, which is sharply higher than our previous forecast
of about 5.7x.

During the past two quarters, the methanol prices were in the range
of $200-$300 and below per metric ton (MT) and below. However, by
the end of the September 2020, the methanol prices started to
bounce back, with an expected U.S. methanol contract prices of
about $400/MT. S&P said, "We expect the price to continue to
recover gradually throughout the next year, coupled with higher
demand and consumption of methanol. Additionally, the reactivation
of two of the company's plants (M2 and M3) by the end of the third
quarter of 2020 and the expectation of a production at full
capacity across all facilities, including higher and stable
production at Natgasoline, coupled with better results on the
company's ammonia, urea ammonium nitrate (UAN) and melamine
production, for the next 12 months should reduce its debt to EBITDA
to the 5.0x area in 2021, although still high for the 'BB' rating
category. However, if the macroeconomic weakness is more severe or
lasts longer than expected, CEL's revenue and EBITDA could continue
taking a hit, slowing the pace of the expected deleverage. However,
we consider the strength of the company's business as supporting
the rating. This was a year in which the petrochemical industry
reached the bottom of the cycle, and we expect its recovery amid
better prices and higher demand for 2021. Therefore, we factor this
favorable forecast into the 'B+' rating on the company."

The company doesn't have material debt obligations in 2021, and its
liquidity continues to benefit from committed revolving credit
facilities of about $270 million (which the company partly drew in
the third quarter). S&P said, "In addition, we expect higher FFO
due to greater volume sales and better sales prices in 2021.
However, CEL faces a substantial maturity in 2022 on its senior
unsecured bond of about $423 million. We now consider that the
company's liquidity is at adequate levels to meet short-term
obligations for the next 12 months. Nevertheless, we're currently
uncertain how the company will cover its 2022 debt maturity."



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X X X X X X X X
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CARIBBEAN: Institutional Reforms, Infrastructure Crucial for Growth
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Institutional reforms and investments in infrastructure will be key
to foster economic recovery in the Caribbean region, according to a
new report by the Inter-American Development Bank, which warns of
challenging times even as the pandemic is expected to subside in
2021.

The Quarterly Bulletin is produced by the economic team from the
IDB's Caribbean Department, and it analyses economic challenges
facing member countries -- The Bahamas, Barbados, Guyana, Jamaica,
Suriname, and Trinidad and Tobago.

For most countries in the region, 2020 will represent the deepest
single year economic contraction since 1975. Four of the six - The
Bahamas, Barbados, Jamaica and Suriname-will experience double
-digit contractions of real GDP this year.

While the rapid recent progress towards development and
distribution of a vaccine is an increasingly bright light at the
end of the tunnel, the report notes, Caribbean economies that
depend on external demand from advanced economies are not likely to
see a full return to pre-COVID levels of economic activity for some
time.

The decline in tourism has been sharp, with The Bahamas and
Barbados reporting drops in arrivals of 68 percent and 66 percent
in the first nine months of the year, respectively-closer to the
worst-case scenarios envisaged at the beginning of the year. Future
tourism prospects are dependent on global efforts to control the
coronavirus spread. One bright spot is that international reserves
have held up well, including thanks to disbursements from
multilateral lending institutions, and strong remittance flows from
the region's diaspora.

"The immediate urgencies are critical, especially to ensure people
are safe," said David Rosenblatt, the IDB's Regional Economic
Advisor. "However, governments must begin to plan now on how they
can get their economies up and running again on a much better
footing than before. We identify two areas that are crucial:
infrastructure and institutional reforms."

Infrastructure is seen as providing an important post-Covid-19
boost, with economic institutions critical in the long run to help
manage short-term cycles and spur higher productivity.

"A sound institutional framework by no means constitutes a
full-fledged protective shield against such devastating shocks, but
it provides a more formal structure to respond to them," the report
says.

The IDB will soon release an edited volume with specific policy
recommendations to strengthen public institutions, including those
related to fiscal management -- a topic that will be essential
given tight budgets and the need to do more with fewer resources.

The Quarterly Bulletin includes chapters with specific
recommendations for the IDB's six Caribbean member countries:
Jamaica, Suriname, Trinidad and Tobago, Guyana, The Bahamas and
Barbados.


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

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

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

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