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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

          Thursday, December 31, 2020, Vol. 21, No. 262

                           Headlines



B R A Z I L

BRAZIL: Banks Compelled to Buy US$30BB in Foreign Currency
GOL FINANCE: Moody's Gives B2 Rating to $200MM Sr. Secured Notes
ISEC SECURITIZADORA: Moody's Rates Two Real Estate Certs. '(P)Ba2'
PETROLEO BRASILEIRO: To Close Argentina, Colombia, Uruguay Offices


C O L O M B I A

CREDIVALORES: Fitch Keeps 'B+' LT Foreign Currency IDR on Watch Neg


D O M I N I C A N   R E P U B L I C

AES ANDRES: Fitch Affirms 'BB-' Long-Term IDR, Outlook Negative
EMPRESA GENERADORA: Fitch Affirms 'BB-' LT IDRs, Outlook Negative


E C U A D O R

ECUADOR: IMF Allows for Immediate Disbursement of $2BB


J A M A I C A

JAMAICA: Financial System Resilient to COVID-19, BOJ Says


M E X I C O

BNTECB 07-2: Moody's Reviews Ba3 Sub. Certs. Rating for Downgrade
MBIA MEXICO: Moody's Affirms Caa1 IFS Rating, Outlook Negative
OAXACA DE JUAREZ: Moody's Affirms B1 Issuer Rating, Outlook Neg.
UNITED MEXICAN: Egan-Jones Hikes Senior Unsecured Ratings to B


P A R A G U A Y

TELEFONICA CELULAR: Fitch Affirms 'BB+' LT IDR, Outlook Stable


P U E R T O   R I C O

AUTO MASTER: Creditor Route 65 Buying Juncos Property for $439K


X X X X X X X X

LATIN AMERICA: Debt Will Hit Post-Crisis Sweet Spot

                           - - - - -


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B R A Z I L
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BRAZIL: Banks Compelled to Buy US$30BB in Foreign Currency
----------------------------------------------------------
Rio Times Online reports that Brazilian banks with investments
abroad are experiencing a race for dollars this year.  Institutions
with branches abroad will spend some US$30 billion to settle
exchange protection contracts by 2022, according to Rio Times
Online.

This event should impact the dollar's rate, says Rio Times Online.
With the Brazilian real devalued, the Central Bank has prepared
measures to mitigate the impact of the increase in demand for the
currency, the report relays.

According to the report, exchange protection contracts are called
hedges.  They work as a kind of insurance to protect investors from
losses with exchange rate fluctuation.  These contracts are taxed
in Brazil at 48%, 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.

S&P Global Ratings affirmed on December 14, 2020, its 'BB-/B'
long-and short-term foreign and local currency sovereign credit
ratings on Brazil. The outlook on the long-term ratings remains
stable.

Fitch Ratings' credit rating for Brazil stands at 'BB-' with a
negative outlook (November 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).

As reported in the Troubled Company Reporter-Latin America, S&P
Global Ratings' stable outlook assumes that timely implementation
of fiscal adjustment and modest economic recovery will help
preserve market confidence and adequate funding conditions for the
government in local markets in the next two years, despite a
sustained increase in the debt burden.

GOL FINANCE: Moody's Gives B2 Rating to $200MM Sr. Secured Notes
----------------------------------------------------------------
Moody's Investors Service assigned a B2 rating to the $200 million
senior secured notes due 2026 issued by Gol Finance and
unconditionally Guaranteed by Gol Linhas Aereas Inteligentes S.A.
(Gol, B3 stable) and Gol Linhas Aereas S.A. Gol's existing ratings
and its B3 Corporate Family Rating remain unchanged. The ratings
outlook is stable.

The new senior secured notes are rated B2, one notch above the CFR
of Gol, primarily reflecting the collateral that comprises the
first priority security interest in Gol's intellectual property
including patents, trademarks, brand names, trade dress, know how,
copyrights' secrets, domain names, and social media accounts. The
collateral will also include Gol's aircraft spare parts located in
Brazil, including rotable, repairable and expendable parts.

Moody's understands that the new notes are secured and would rank
at least on a pari passu basis with Gol's other secured
indebtedness that pro-forma for the issuance will account for
around 40% of the company's indebtedness. Existing unsecured notes
ratings are unchanged at Caa1.

The notes proceeds will bolster the company's liquidity and help
financing its increasing working capital requirements and support
the rapid growth in demand, extend its debt maturity profile
through the repayment of upcoming debt maturities, and other
general corporate purposes.

RATINGS RATIONALE

Gol's B3 CFR reflects Gol's strong operating performance versus our
expectation at the beginning of the coronavirus outbreak. The B3
rating also reflects a lower risk of default in the short term,
especially after the repayment of the term loan guaranteed by Delta
and the successful refinancing of other debt instruments such as
working capital facilities and local market debentures that
resulted in a more comfortable debt amortization profile. Gol's
ability to reduce costs through agreements reached with employees
and lessors that resulted in a better than expected reduction in
cash burn is also reflected in the B3 rating.

The B3 rating is constrained by the uncertainties the airline
industry will face as a result of the coronavirus pandemic that
could lead to slower economic recovery or another round of
restrictions for travel and tourism reducing the speed of the
rebound in the industry. Despite the better than expected recovery
observed so far, the capital markets are still demanding stronger
collaterals packages and higher returns when offering new funding
to airlines in general. The ability to raise liquidity and control
cash burn will still be a key aspect in Gol's ratings assessment.

The adverse impacts of the coronavirus pandemic on the global
economy, oil prices and asset prices have sustained a severe and
extensive credit shock across many sectors, regions and markets.
The combined credit effects of these developments are
unprecedented. The passenger airline industry is one of the sectors
most significantly affected by the shock given its exposure to
travel restrictions and sensitivity of consumer demand to
sentiment. Moody's regards the coronavirus pandemic as a social
risk under its ESG framework, given the substantial implications
for public health and safety.

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

Moody's could upgrade Gol if:

risks and uncertainties are reduced significantly, and passenger
demand begins a sustainable recovery towards pre-coronavirus
levels.

Gol to maintain an adequate liquidity profile, with cash
consistently above 20% of revenues, and key metrics to improve such
as

debt-to-EBITDA declines below 6x

(funds from operations + interest)/ interest is sustained above
3x.

Moody's could downgrade Gol if:

pace of recovery of passenger demand is slower than Moody's
expects

liquidity concerns increase

the company is unable to strengthen credit metrics through the
recovery phase

there are increased expectations of a default in the company's
financial obligations

PRINCIPAL METHODOLOGY

The principal methodology used in this rating was Passenger Airline
Industry published in April 2018.

COMPANY PROFILE

Based in Sao Paulo and founded in 2001, Gol is the largest low-cost
carrier in Latin America, offering over 700 daily passenger flights
to connect Brazil's major cities and various destinations in South
America, North America and the Caribbean, along with cargo and
charter flight services. Additionally, Gol has a 53% stake in
Smiles, a loyalty program company with more than 14 million
participants that allows members to accumulate miles and redeem
tickets in more than 900 destinations around the world and offer
non-ticket reward products and services. In the fiscal year ended
December 2019, Gol reported consolidated net revenues of BRL13.9
billion and lease adjusted EBITDA of BRL4.1 billion. Gol LuxCo, Gol
Finance, and Gol Equity Finance are wholly-owned subsidiaries of
Gol.

ISEC SECURITIZADORA: Moody's Rates Two Real Estate Certs. '(P)Ba2'
------------------------------------------------------------------
Moody's America Latina has assigned provisional ratings of (P)Ba2
(Global Scale, Local Currency) and (P)Aa1.br (Brazilian National
Scale) to both the 155th and 156th series of real estate
certificates ("certificados de recebiveis imobiliarios") issued by
ISEC Securitizadora S.A. (ISEC, not rated). The certificates will
be backed by two series of senior unsecured debentures rated Ba1
(global Scale, local Currency) and Aaa.br (Brazilian national
scale) issued by B3 S.A. -- Brasil, Bolsa, Balcao (B3, Ba1 long
term rating, global scale, stable outlook).

Issuer / Securitization company: ISEC Securitizadora S.A.

155th series of the 4th issuance -- (P)Ba2 (global scale, local
currency)/(P)Aa1.br (Brazilian national scale)

156th series of the 4th issuance -- (P)Ba2 (global scale, local
currency)/(P)Aa1.br (Brazilian national scale)

RATINGS RATIONALE

The (P)Ba2 (global scale, local currency) and (P)Aa1.br (Brazilian
national scale) ratings assigned to both series of CRIs are
primarily based on the willingness and ability of B3 (as obligor)
to honor the payments defined in the transaction documents, which
is reflected by the Ba1 (global Scale, local currency) and Aaa.br
(Brazilian national scale) ratings of the underlying senior
unsecured debentures backing the CRIs issuances. Any change in the
ratings of the debentures will lead to a change in the ratings of
the CRIs. Further, there are additional residual risks of labor,
tax and pension liabilities because the securitization company has
employees and operations under the same legal entity, so such risks
are not segregated in the same manner as it is for other
transactions we rate which are issued through a securitization
company.

Each CRI series to be issued by ISEC will be backed by a series of
debentures issued by B3. The underlying senior unsecured debentures
are rated Ba1 and Aaa.br. B3 will be responsible for covering all
transaction expenses. The proceeds of the issuance will be directed
to cover for expenses related to the renovation of three of B3
corporates offices in the city of São Paulo.

The 155th series of CRI are floating rate notes and will accrue, on
a daily basis, a floating interest rate equivalent to DI rate
(cumulative daily average accrual of interbank deposits) plus a
spread of 130 bps. Interest will be paid on a monthly basis,
followed by a balloon payment of principal at the legal final
maturity in December 16, 2030.

The 156th series of CRI feature an annual fixed interest rate and a
principal balance that will be adjusted by the IPCA (Extended
National Consumer Price Index) inflation index; the fixed interest
rate is yet to be determined during book building process and it
will be paid on a monthly basis, followed by scheduled payments of
principal according to the transaction documents until the legal
final maturity in December 16, 2030.

The total issuance amount across the two series will be up to BRL
205 million and the breakdown between the 155th and the 156th will
be determined during book building process.

The provisional ratings on the CRIs are based on a number of
factors, among them the following:

The willingness and ability of B3 (as obligor) to make payments on
each series of the underlying debentures rated Ba1 and Aaa.br.

Pass through structure: the payment schedule of each series of CRI
replicates the scheduled cash flow of the underlying debentures,
with a one-day lag, which allows for adequate timing to make
payments on the CRI. The CRI will make payments that mirror the
payments to be made by the underlying debentures. The floating rate
of DI to be paid under the 155st series will be determined using
the same DI period under the underlying debenture. The principal
balance of the 156nd series will be adjusted by the same IPCA index
used to adjust the underlying debentures. Also, the coupon will be
calculated considering the same interest rate and accrual period.
In addition, to mitigate the risk of the additional one day of
interest for the first interest payment on the CRI, the debentures
will initially feature one extra day of interest accrual to address
any potential interest rate mismatch.

The events of default on the CRIs mirror those of the underlying
debentures. Therefore, mitigating the risk of having an EOD on the
certificates while the underlying assets are current.

B3, pays the CRIs expenses: B3 will be ultimately responsible,
under the transaction documents, for all CRI expenses.

No commingling risk: B3 will make the payments due on the two
series of debentures directly to the respective accounts of each
series of CRI held at Banco Bradesco S.A. (Ba2 long-term bank
deposit rating, global scale, local currency; and Aa1.br, Brazilian
national scale).

Segregated assets: The CRIs benefit from a fiduciary regime
("regime fiduciario") whereby the assets backing each series of CRI
are segregated. These segregated assets are destined exclusively
for payments on the CRI as well as certain fees and expenses, and
will be segregated from all of the other assets on the issuer's
balance sheet. However, the transaction is subject to residual
legal risk because ISEC real estate credits can be affected by the
securitization company's tax, labor and pension creditors. In this
deal, the risk is regarded to be higher since the securitization
company has employees and operations under the same legal entity
and, therefore, that risk is not segregated. Further, such residual
risk aforementioned has never been tested on courts.

B3 is headquartered in Sao Paulo, Brazil, and (B3) operates as an
integrated exchange, depository and clearing house of cash
equities, derivatives, foreign-exchange spot and fixed-income
securities. These business lines expanded following the conclusion
of the merger of the former BM&FBOVESPA with Cetip in 2017, adding
activities such as the registration of over-the-counter
derivatives, fixed-income securities and car liens. In 2019, B3
reported a pre-tax income of BRL3,339.0 million (about U$847.8
million). Equities and equities instruments division is the largest
line of business of the company, responsible for 49.6% of gross
revenues, as of March 2020.

B3's ratings primarily are supported by its vertical integration
and dominant position in its target markets as well as its diverse
operations and strong operating leverage. The ratings are also
underpinned by the company's increasing earnings, high pretax
margins and cash flow generation.

On the other hand, the ratings are primarily constrained by the
Government of Brazil's Ba2 rating (stable). B3 has a strong credit
linkage to Brazilian sovereign risk through its collateral holdings
of government securities and the geographical concentration of its
operations.

ISEC, headquartered in São Paulo, is a securitization company
established in March 5, 2007. ISEC had its first issuance in
January of 2013 and up until now, the company has structured and
issued, approximately, a BRL10.7 billion amount, totalizing 155
deals. ISEC is audited by BLB Auditores Independentes.

Factors that would lead to an upgrade or downgrade of the ratings:

Any changes in the senior unsecured ratings of the underlying
debentures and the securitization company legal or operational
structure will lead to a change in the ratings on the CRI.

The principal methodology used in these ratings was "Moody's
Approach to Rating Repackaged Securities" published in June 2020.

PETROLEO BRASILEIRO: To Close Argentina, Colombia, Uruguay Offices
------------------------------------------------------------------
Rio Times Online reports that Brazilian state oil company Petroleo
Brasileiro S.A. or Petrobras said it will rationalize its
international presence next year and will close its offices in
Argentina, Colombia and Uruguay after divestment there.

"The company also maintains offices in Bolivia, Argentina, Colombia
and Uruguay.  In these last three countries, there is an ongoing
disinvestment process, and the tendency is that, once completed,
the respective offices will also be deactivated," said a press
statement, according to Rio Times Online.

The closures will allow the company to focus on three main oil
markets: Europe, North America and Asia, the press release stated,
the report notes.

                     About Petrobras

Petroleo Brasileiro S.A. or Petrobras (in English, Brazilian
Petroleum Corporation - Petrobras) is a semi-public Brazilian
multinational corporation in the petroleum industry headquartered
in Rio de Janeiro, Brazil.  Petrobras control significant oil and
energy assets in 16 countries in Africa, the Americas, Europe and
Asia.  But, Brazil represents majority of its production.

The Brazilian government directly owns 54% of Petrobras' common
shares with voting rights, while the Brazilian Development Bank and
Brazil's Sovereign Wealth Fund (Fundo Soberano) each control 5%,
bringing the State's direct and indirect ownership to 64%.

A corruption scandal was uncovered in 2014 that involved Petrobras.
The scandal related to money laundering that involved Petrobras
executives.  The executives were alleged to get received kickbacks
from overpriced contracts, to the tune of about $3 billion in
total.

S&P Global Ratings revised outlook on Petrobras to stable and
affirmed 'BB-' foreign currency and local currency credit ratings
on April 7, 2020.  Fitch revised outlook on Petrobras to negative
and affirmed 'BB-' long term foreign currency and local currency
credit ratings on May 7, 2020. Moody's Investors Service affirmed
the 'Ba2' long term foreign currency credit rating of Petrobras on
August 23, 2019.  Outlook is stable.



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CREDIVALORES: Fitch Keeps 'B+' LT Foreign Currency IDR on Watch Neg
-------------------------------------------------------------------
Fitch Ratings has maintained on Rating Watch Negative (RWN)
Credivalores Crediservicios S.A.'s Long-Term (LT) Foreign Currency
(FC) Issuer Default Rating (IDR) of 'B+'. At the same time, Fitch
has affirmed Credivalores' Short-Term (ST) IDR at 'B'. The RWN on
the 'B+/RR4' LT Rating of the senior unsecured debt is also
maintained.

Credivalores's ratings were placed in RWN in May 13, 2020
reflecting the near-term risks mainly arising from the credit card
business, as Fitch believes the deteriorating operating
environment, as a result of the coronavirus outbreak is expected to
affect its credit metrics, mainly asset quality and profitability.
The resulting rating action was RWN and not a downgrade as
financial results as of September 2020 have been modestly affected.
However they continue to be partially obscured by expiring relief
programs, and Fitch believes the full impact on its already low
profitability and high tangible leverage metrics is yet to be seen
as risks associated with the pandemic are still ongoing.

Over a longer period of time, Fitch expects to evaluate the actions
taken by Credivalores to strengthen its origination, provisions and
liquidity as part of the risks associated with the pandemic. This
could result in the removal of the RWN, or the entity could
continue to face near- and medium-term challenges to restore its
earnings and leverage metrics to levels commensurate with its
rating.

KEY RATING DRIVERS

Credivalores' IDRs are highly influenced by the company's profile
and concentrated nature within the financial system, which, despite
its small size, benefits from its role as one of the largest
non-bank financial institutions engaged in consumer lending to the
low- to mid-income population. The ratings also consider, as high
influence factors, the company's modest profitability and high
leverage. At the same time, the ratings also incorporate the
company's good funding flexibility and adequate liquidity to
confront current challenges from the operating environment.

During 2019, Credivalores imposed a series of measures including
tighter underwriting and collection policies, along with
technological and system improvements that improved its asset
quality metrics. However, the effects of the coronavirus pandemic
have already begun to impact the level of loan loss reserves and
this pressure is expected to translate into higher NPLs by YE2020
and during 1H21 in view of the delayed effects from the forbearance
period. Credivalores' ratio of NPL past due over 60 days rose
slightly to 11.9% at Sept. 30, 2020 from 11.8% at FYE December
2019. The overall loan loss coverage ratio on Credivalores' total
portfolio increased to 137% from 120% and FYE December 2019 driven
by the potential deterioration of the portfolio.

The entity has been focusing on increasing its credit card
origination in lower-risk super prime and prime segments, resulting
in a portfolio growth of 12%. The company also announced the end of
the forbearance program in September with the latest loans under
relief expiring in October, and Fitch will continue to evaluate the
extent of the impact and its effect on the structural asset quality
of the entity.

Credivalores' profitability remained weak for 3Q20, however with a
mild recovery from the losses announced in the 1Q20. Pre-tax income
to average assets stood at a very low 0.19% as of 3Q20. Fitch
expects profitability for the remainder of 2020 to be one of the
main weaknesses for the rating as Credivalores expects to be at
break even by the end of the year. However, the full impact of the
crisis is yet to be seen as risk from the pandemic continues, which
could limit the entity´s ability to fulfill its growth plans and
to rebuild its profitability towards pre-2019 levels.

The ratings also consider Credivalores' relatively higher leverage
ratios for its concentrated and higher-risk business model. Fitch
believes leverage could be pressured if profitability declines
further or if the entity reports sustained losses due to the
pandemic's economic effects on its borrowers. Leverage could also
be pressured if projected loan growth is not accompanied by higher
internal capital generation or injections. Tangible leverage stood
at a high 8.55x as of 3Q20. However, these ratios incorporate
temporary impacts on capital through other comprehensive income
(OCI) items, and a higher and virtual level of total debt as the
outstanding USD debt was registered at a higher exchange rate than
the one agreed through derivatives. If these temporary effects are
eliminated from Fitch's core leverage metrics, adjusted tangible
leverage results are still high at 7.69x.

Although the funding profile is wholesale and confidence sensitive,
Credivalores' current funding and liquidity metrics remain as
strength to the rating with average maturity tenors of close to 3.2
years and a high 92% portion of unsecured sources. The company has
been able to maintain diverse sources of funding from both domestic
and foreign lenders. The company issued a USD300 million, five-year
note in February 2020 and had USD60.2 million cash on their balance
sheet as of Sept. 30, 2020. On June 5, Credivalores also placed a
USD20 million Euro commercial paper note through September 2021 to
support loan portfolio growth, especially in the lower risk in
payroll loans. Sources of funding appear adequate to cover upcoming
2020 and 2021 debt amortizations while the entity is seeking for
additional sources to fund future growth.

RATING SENSITIVITIES

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

-- Credivalores' IDRs could be downgraded if there is a relevant
    increase in tangible leverage, measured as debt/tangible
    equity adjusted by the temporary effects from assets and
    derivatives valuation delivering further pressure to levels
    sustainably above 8.5x, or if profitability metrics
    deteriorate relevantly, measured as negative operating income,
    that reduces the company's ability to absorb unexpected
    losses.

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

-- Credivalores' ratings are currently on RWN, due to the short
    term risks to its profitability, tangible leverage and asset
    quality metrics, given the coronavirus outbreak. This makes an
    upgrade highly unlikely in the near future.

-- Ratings could be removed from the RWN and affirmed with a
    Stable Outlook if the company is able to stabilize its
    operational profitability, asset quality and tangible leverage
    at a level consistent with its current ratings despite
    deterioration in the operating environment, or if it shows the
    ability to revert the effects in a relatively short period of
    time. Ratings continue to be sensitive to significant changes
    in Credivalores' company profile.

-- Ratings could be upgraded by the confluence of a relevant
    improvement in the asset quality, earnings and tangible
    leverage, together with an improvement of the operating
    environment.

ESG CONSIDERATIONS

The highest level of ESG credit relevance, if present, is a score
of 3. This means ESG issues are credit-neutral or have only a
minimal credit impact on the entity(ies), either due to their
nature or to the way in which they are being managed by the
entity(ies).

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Financial Institutions and
Covered Bond 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.



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AES ANDRES: Fitch Affirms 'BB-' Long-Term IDR, Outlook Negative
---------------------------------------------------------------
Fitch Ratings has affirmed AES Andres B.V.'s (Andres) Long-Term
Foreign Currency Issuer Default Rating (IDR) at 'BB-'. The Rating
Outlook is Negative. In addition, Fitch has affirmed Andres' USD270
million notes due 2026 at 'BB-' and National Long-Term rating at
'AA(dom)'/Stable.

The Negative Outlook reflects Fitch's revision of the Dominican
Republic's sovereign Rating Outlook to Negative, due to the
coronavirus pandemic. The pandemic has caused a sharp fall in
economic activity and pressured the country's balance of payments,
given its reliance on tourism and remittances.

Andres's ratings reflect the Dominican Republic electricity
sector's high dependency on transfers from the central government
to service their financial obligations, a condition that links the
credit quality of the distribution companies and generation
companies to that of the sovereign.

Low collections from end-users, high electricity losses and
subsidies have undermined distribution companies' cash generation
capacity, exacerbating generation companies' dependence on public
funds to cover the gap produced by insufficient payments received
from distribution companies. The ratings also consider the
companies' solid asset portfolio, strong balance sheet, and
well-structured purchase power agreements (PPAs).

The rating for the notes considers the combined operating assets of
Andres and Dominican Power Partners (DPP) (jointly referred to as
AES Dominicana), which are joint obligors of Andres's USD270
million notes due 2026. These notes are attached to Empresa
Generadora de Electricidad Itabo's USD100 million notes, also rated
'BB-'. AES Corp. is expected to complete the sale of Itabo to
Dominican conglomerate Grupo Linda at YE 2020, and the transaction
is credit neutral for Andres.

In late March 2020, Andres discovered damage to its
recently-repaired steam turbine. The subsequent repair outage,
prolonged due to the country's quarantine, lasted until October
2020. Insurance will cover the business interruption with a total
decline in 2020 EBITDA of approximately USD8 million-USD13 million,
reflecting the applicable deductible. The company expects the
manufacturer's warranty to cover equipment damage.

KEY RATING DRIVERS

Dependence on Government Transfers: High energy distribution losses
of 27% in 2019, low level of collections and important subsidies
for end-users, have created a strong dependence on government
transfers. This dependence has been exacerbated by the country's
exposure to fluctuations in fossil-fuel prices and strong energy
demand growth from distribution companies of 5.9% in 2019.

The regular delays in government transfers have pressured the
generator's working capital needs, and has added volatility to its
cash flows. This situation increases sector risk, especially at a
time of rising fiscal vulnerabilities affecting the Central
Government's finances.

Strong Credit Metrics: The combined credit metrics for Andres and
DPP are strong for the rating category, with expected 2020 EBITDA
of USD227.5 million for the combined companies. Fitch expects 2020
debt to EBITDA to rise to 2.7x from 2.2x in 2019, due to a fall in
demand and the company's need to purchase spot energy in 2020, as
well as a USD10 million insurance deductible, due to the outage at
Andres.

Leverage is expected to fall through 2022 before increasing to 3.5x
in 2023 as renegotiation of Andres's gas supply contract lowers
EBITDA. While the 750MW Punta Catalina project will likely lower
prices in the near term for the system as a whole, Andres and DPP
are substantially contracted through 2022, and their lower leverage
provides a cushion against eventual PPA revaluations.

High-Quality Asset Base: Andres ranks among the lowest-cost
electricity generators in the country. Andres's combined-cycle
plant burns natural gas, and is expected to be fully dispatched as
a base-load unit as long as the liquefied natural gas (LNG) price
is not more than 15% higher than the price of imported fuel oil No.
6.

In early 2021 Andres expects to bring Bayasol, a 50MW solar plant,
online, adding just over 100 GWh of power production at very low
cost going forward. Fitch expects higher medium-term margins,
although generation may contract initially when the Punta Catalina
coal plant enters the dispatch curve.

Cash Flow Volatility Is Moderate: Cash flow to Andres and DPP has
historically been affected by delays in payment from the
state-owned distribution companies, particularly during periods of
high fuel oil prices, which have pressured the system financially.
According to the Dominican Electricity Industry Association, the
balance owed to AES-owned generators by state-owned distribution
companies stood at USD216.4 million in April 2020, relatively
unchanged from the level of USD219.7 million in December 2019.

Andres reported little impact on collections from the pandemic. In
October, Andres, DPP and Itabo together received USD197.3 million
dollars from distribution companies and state power holding company
CDEEE, bringing Andres and DPP's combined accounts receivable days
to just over 70 days, down from 110 days in 2019. Fitch expects
future payment delays to moderate with the entrance of the 752MW
Punta Catalina plant, which will lower spot prices and relieve
financial pressure on the system.

Expanding Natural Gas Business: Andres operates the country's sole
LNG port, offering regasification, storage, and transportation
infrastructure. In the medium term, the company plans to expand its
transportation network and processing capacity for its LNG
operations, as illustrated by the recent 10-year gas supply
agreement with Barrick.

In addition, a 50-kilometer gas pipeline is being constructed from
Andres's terminal to San Pedro de Macoris to facilitate the
conversion from heavy fuel oil to natural gas in that region.
Andres' gas supply contract with BP plc prices gas imports at the
NYMEX Henry Hub benchmark plus USD1.20; gas costs are expected to
rise significantly upon the contract's expiration in April 2023.

DERIVATION SUMMARY

Andres's ratings are linked to and constrained by the Dominican
Republic's ratings, from which it indirectly receives its revenues.
As a result, Andres's capital structure is strong relative to
similarly rated, unconstrained peers. Orazul Energy Peru S.A.
(BB/Rating Watch Positive), whose rating reflects combined results
that include its subsidiary, Aguaytia Energy del Peru S.R.L., has
similar installed capacity and is expected to generate around
USD100 million in EBITDA annually, with estimated leverage of
approximately 5.0x.

Orazul Energy Peru benefits from the stability conferred by its
asset diversification and the flexibility allowed by its vertical
integration. Comparatively, the combined Andres/DPP operations are
expected to generate approximately USD250 million, with leverage of
2.2x in the medium term.

Fenix Power Peru S.A. (BBB-/Stable) is considered another
operational peer to Andres. Fenix has high leverage, similar to
Orazul, but benefits from its strategic linkage to its parent
company, Colbun S.A. (BBB+/Stable), resulting in a three-notch
uplift from its standalone credit quality. Additionally, Fenix's
capital structure benefits from a steady deleveraging trajectory in
the medium term as its international bond amortizes.

KEY ASSUMPTIONS

-- Full recovery of lost EBITDA for operational problems at
    Andres;

-- Fuel prices track Fitch price deck;

-- 50% of previous year's net income distributed as dividends in
    2020, 100% in 2021-22, 70% in 2023;

-- Accounts receivable days return to 110 following government
    payment in 2020.

RATING SENSITIVITIES

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

-- A positive rating action for Andres could occur if the
    Dominican Republic's sovereign ratings are upgraded or if the
    electricity sector achieves financial sustainability through
    proper policy implementation.

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

-- A negative rating action for Andres would occur if the
    Dominican Republic's sovereign ratings are downgraded; if
    there is sustained deterioration in the reliability of
    government transfers; or financial performance deteriorates to
    the point of increasing the combined Andres/DPP ratio of debt
    to-EBITDA to 4.5x for a sustained period.

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

Well-spread Maturities: Andres and DPP have historically reported
very strong combined credit metrics for the rating category. Both
companies have financial profiles characterized by low to moderate
leverage and strong liquidity. Combined EBITDA as of June 30, 2020
totaled USD308 million (versus USD222 million at June 30, 2019),
with total debt/EBITDA of 2.2x and FFO interest coverage of 6.8x.
The companies' strong liquidity position is further supported by
the 2026 international bond and a series of local bonds due 2027,
replacing all short- to medium-term debt.

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.

EMPRESA GENERADORA: Fitch Affirms 'BB-' LT IDRs, Outlook Negative
-----------------------------------------------------------------
Fitch Ratings has affirmed the rating of Empresa Generadora de
Electricidad Itabo, S.A.'s (Itabo) senior unsecured notes due 2026
at 'BB-' and the Long-Term Foreign and Local Currency Issuer
Default Ratings (IDRs) at 'BB-'. The Rating Outlook is Negative.
Itabo's Negative Outlook reflects impact from the coronavirus
pandemic, which has caused a sharp fall in economic activity and
pressured the Dominican Republic's balance of payments given its
reliance on tourism and remittances.

Itabo's ratings reflect the electricity sector's high dependency on
transfers from the central government to service its financial
obligations, a condition that links the credit quality of the
electric distribution companies and generation companies in the
country to that of the sovereign. Low collections from end-users,
high electricity losses and subsidies have undermined distribution
companies' cash generation capacity, exacerbating generation
companies' dependence on public funds to cover the gap produced by
insufficient payments received from distribution companies. Itabo's
ratings also consider its low-cost generation portfolio, strong
balance sheet and well-structured power purchase agreements (PPAs),
which contribute to strong cash flow generation and bolster
liquidity.

In June 2020, AES Corp. announced an agreement to sell the entirety
of its stake in Itabo to Dominican conglomerate Grupo Linda, in a
stock-purchase agreement valued at approximately USD101 million.
That deal is expected to close at the end of December 2020. The
agreement would see AES Grand Dominicana, which is 85%-owned by AES
Corp., sell its stake in Coastal Itabo Ltd., the Cayman
Islands-based entity that directly owns 50% of Itabo. Grupo Linda
currently owns a 10% interest in AES Grand Dominicana. AES would
also sell its stake in Dominican-based New Caribbean Investment
S.A. Fitch sees the deal as credit neutral for the rating.

Following the deal, Fitch assumes that Itabo's financial structure
and corporate strategy will remain largely unchanged. As part of
the transaction, AES plans to sign a contract with Linda through
which AES Dominicana would continue operating the Itabo plant for
at least three years, subject to automatic renewal, in exchange for
a management fee. In addition, Itabo's USD99.9 million in 2026
notes, which are currently traded jointly as part of a package
alongside USD270.1 million in notes issued by AES Andres B.V. and
Dominican Power Partners, would be separated and trade
independently.

KEY RATING DRIVERS

Dependence on Government Transfers: High energy distribution losses
of 27% in 2019, low level of collections and important subsidies
for end-users have created a strong dependence on government
transfers. This dependence has been exacerbated by the country's
exposure to fluctuations in fossil-fuel prices and a steep economic
contraction in 2020 due as a result of the coronavirus pandemic.
The regular delays in government transfers pressure working capital
needs of generators and add volatility to their cash flows. This
situation increases the risk of the sector, especially at a time of
rising fiscal vulnerabilities affecting the central government's
finances.

Low-Cost Asset Portfolio: Itabo's ratings incorporate its strong
competitive position as one of the lowest-cost thermoelectric
generators in the country, ensuring the company's consistent
dispatch of its generation units. The company operates two low-cost
coal-fired thermal generating units and a third peaking plant that
runs on Fuel Oil #2 and sells electricity to three distribution
companies in the country through long-term, U.S. dollar-denominated
PPAs. The company will remain a base load generator even after a
752 MW coal generation project, Punta Catalina, is expected to
begin full commercial operation in 2021.

Solid Credit Metrics: Itabo presents strong credit metrics for the
rating category. Total debt/operating EBITDA of 1.1x is expected
for 2020, the same level as for 2019. Fitch expects leverage to
rise gradually to 1.9x in 2023 as increased power supply from Punta
Catalina and other new generation projects push down spot power
prices and lower EBITDA. Fitch expects EBITDA to decline from
USD87.4 million in 2020 to USD49.7 million in 2023 following the
expiration of Itabo's existing PPAs in 2022.

Working Capital Pressure: Instability in the company's collection
periods has resulted in operating cash flow volatility. According
to the Dominican Electricity Industry Association, the balance owed
to all AES companies (AES Andres, Dominican Power Partners and EGE
Itabo) by state-owned distribution companies stood at USD216.4
million in April 2020. Since then, AES reports that it received
USD197.3 million in government payments in October 2020, bringing
its accounts receivable days down to below 90 days. Despite that
revenue, Fitch expects that government payment delays will lead to
an increase in accounts receivable days going forward.

DERIVATION SUMMARY

Itabo's ratings are linked to and constrained by the ratings of the
government of the Dominican Republic, from which it indirectly
receives its revenues. As a result, Itabo's capital structure is
strong relative to similarly rated, unconstrained peers. Orazul
Energy Peru S.A. (BB/Rating Watch Positive), whose ratings reflects
combined results that include its subsidiary, Aguaytia Energy del
Peru S.R.L., has similar installed capacity and is expected to
generate around USD100 million in EBITDA annually, with estimated
leverage of approximately 5.0x. Orazul Energy Peru benefits from
the stability conferred by its asset diversification and the
flexibility allowed by its vertical integration. By comparison,
Itabo is expected to generated approximately USD75 million, with
leverage around 1.5x through the medium term.

Fenix Power Peru S.A. (BBB-/Stable) is considered another
operational peer to Itabo. It shows high leverage, similar to
Orazul, but benefits from its strategic linkage to its parent
company, Colbun S.A. (BBB+/Stable), resulting in a three-notch
uplift from its standalone credit quality. Additionally, its
capital structure benefits from a steady deleveraging trajectory in
the medium term as its international bond amortizes.

KEY ASSUMPTIONS

-- Capacity factor of approximately 72%;

-- Coal prices aligned with company forecasts;

-- 100% of previous year's net income paid as dividends;

-- Operations not impacted by sale to Grupo Linda.

RATING SENSITIVITIES

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

-- A positive rating action could follow if the Dominican
    Republic's sovereign rating is upgraded or if the electricity
    sector achieves financial sustainability through proper policy
    implementation

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

-- A negative rating action would follow if the Dominican
    Republic's sovereign rating is downgraded, if there is
    sustained deterioration in the reliability of government
    transfers, or if financial performance deteriorates to the
    point of increasing the ratio of debt-to-EBITDA to 4.5x for a
    sustained amount of time.

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: In May 2016, the company issued attached
10-year notes with its sister companies AES Andres and DPP to repay
existing debt and extend its maturity profile. The tranche assigned
to Itabo totaled USD99.9 million. Fitch expects that the expiration
of its existing PPAs would limit medium term growth recovery
prospects in Itabo's EBITDA. Nevertheless, the company's
conservative capital structure confers substantial cushion within
its rating category.

As part of AES' planned sale of Itabo to Grupo Linda, expected to
close around the end of December 2020, Itabo's USD99.9 million bond
would separate from the AES Andres and DPP bonds and trade
separately, with the terms remaining unchanged. In August 2020, AES
announced that it had received the necessary consent from
bondholders holding a majority of the joint issue's outstanding
principal to waive the requirement in the securities' indenture
that would have otherwise required AES to offer to repurchase the
bonds and make a mandatory change of control payment.

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.



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

ECUADOR: IMF Allows for Immediate Disbursement of $2BB
------------------------------------------------------
The Executive Board of the International Monetary Fund (IMF)
completed the first review of the extended arrangement under the
Extended Fund Facility (EFF) for Ecuador. The Board's decision
allows for an immediate disbursement of SDR 1.42 billion (about
US$2 billion), bringing Ecuador's total disbursements for budget
support under the arrangement to about US$4 billion.

Ecuador's 27-month EFF arrangement was approved by the Executive
Board on September 30, 2020 (see Press Release No. 20/302) for SDR
4.615 billion (about US$6.5 billion or around 661 percent of
Ecuador's quota). The program aims to support Ecuador's policies to
stabilize the economy and protect lives and livelihoods, expand the
coverage of social assistance programs, ensure fiscal and debt
sustainability, and strengthen domestic institutions to lay the
foundations for strong, job-rich, and long-lasting growth that
benefits all Ecuadorians.

Following the Executive Board discussion on Ecuador, Ms. Antoinette
Sayeh, Deputy Managing Director and Acting Chair, issued the
following statement:

"The Ecuadorian economy is showing nascent signs of economic
recovery after bottoming out in the second quarter. New COVID-19
infections and deaths have moderated compared to the high levels
seen in the Spring, reflecting the authorities' decisive actions to
contain the outbreak. Economic activity is now projected to
contract by 9½ percent in 2020, which is an improvement over the
11 percent contraction anticipated at program approval.

"The authorities' vigilant approach leading up to program approval
helped cushion delays in external financing. All end-September
quantitative performance criteria and indicative targets were met
with large margins. Moreover, the authorities continued to expand
and improve well-targeted social assistance, bringing in more than
270,000 low-income families into the social safety net since July,
ahead of their end-December goal, and helping to mitigate the
impact of the crisis on the most vulnerable groups.

"The authorities have continued to advance their reform agenda in
key areas. On governance and transparency, the National Assembly
has approved near unanimously the amendments to significantly
enhance the anti-corruption framework, and the authorities have
expanded public access to asset declarations of politically exposed
persons. They have taken important steps to strengthen the
foundations for dollarization by aligning the central bank's
internal audit function to best international standards and
finalizing the amendments to the organic monetary and financial
code (COMYF) for submission to the National Assembly. The
authorities have also adopted regulations on fiscal rules and the
medium-term fiscal framework under the organic budget code and
developed a financial plan for next year. These steps will improve
public financial management and support fiscal sustainability.

"Going forward, further reprioritization of spending as the
recovery takes hold will buttress fiscal sustainability and reduce
public debt as a share of GDP. Furthermore, a credible medium-term
fiscal strategy that includes an ambitious and progressive tax
reform, and better aligns Ecuador's spending levels to regional
peers would reduce the debt burden on future generations.

"Swiftly enacting the reform amendments to COMYF will strengthen
the underpinnings of the dollarized system; as would the rebuilding
of buffers. Continuing to prudently apply regulatory and
supervisory tools will help the financial system withstand economic
stress in the post-pandemic period. Vigilantly monitoring credit
risk accumulation and ensuring the liquidity fund has the resources
to provide emergency liquidity as intended will be important. These
arrangements should be complemented by strengthening further the
legal framework for the financial system, including enhanced
contingent arrangements.

"The EFF-supported program continues to face considerable risks.
Globally, uncertainty about the depth and duration of the pandemic
still lingers. Domestically, building a broad-based consensus and
buy-in across the political spectrum for key program objectives and
policies would help mitigate significant program implementation
risks. With continued capacity development and close coordination
across public sector agencies, the authorities can achieve their
objectives and deliver a robust, job-rich recovery that benefits
all Ecuadorians."



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

JAMAICA: Financial System Resilient to COVID-19, BOJ Says
---------------------------------------------------------
Durrant Pate at Jamaica Observer reports that the Bank of Jamaica
(BOJ) has given the resilience of the island's financial system
throughout the global pandemic a positive assessment.

Whilst taking a hit from COVID-19, particularly in the earlier
period, the local banking system has remained generally resilient
throughout the global pandemic, leading to the positive assessment
by Jamaica's banking regulator, according to Jamaica Observer.

The BOJ, in its latest quarterly assessment of the banking system,
reported that both the primary ratio and capital adequacy ratio
remained comfortably above their respective statutory limit, the
report notes.  The primary ratio and capital adequacy ratios
measure the capacity of local banks to absorb unexpected losses,
the report relays.

In its Quarterly Monetary Policy Report (QMPR) the banking data
showed that local banks have remained very liquid, reporting
liquidity coverage ratios in excess of 100 per cent at
end-September, the report notes.  However, the central bank
concedes that COVID-19, nevertheless, continues to affect activity
in the domestic banking sector and overall financing in Jamaica,
the report discloses.

        Decline In Financing To Individuals And Households

The BOJ said private sector credit provided by deposit-taking
institutions (DTIs) is slowing down, the report notes.  The latest
figures show that credit grew at a slower pace year over year as a
result of declines in financing to individuals and households, the
report relays.

At the same time, the BOJ has implemented a number of initiatives
aimed at supporting Jamaican-dollar liquidity in the financial
sector, according to the report.  Since the start of the pandemic
BOJ has utilized a number of monetary tools to beef up liquidity in
the banking system.

Among the monetary tools employed by BOJ were the reduction in the
Jamaican-dollar cash reserve requirement, the implementation of a
Government of Jamaica bond-buying program, and the reactivation of
the BOJ intermediation facility, the report notes.  The BOJ also
used a special repurchase facility for credit unions as well as the
occasional term repurchase operation, adds the report.

At end-October 2020, total Jamaican-dollar liquidity support
provided by the BOJ since the start of the pandemic was in excess
of $76 billion, the report relays.

      Jamaica Accumulates One Year's Worth Of Foreign Reserves

As it regards Jamaica's foreign reserves, the news was very much
positive, with the latest out-turn showing that the island's
foreign reserves have accumulated to one year's supply, says the
report.  In addition, Jamaica's international reserves remain
buoyant.

As at November 30, 2020 the BOJ reported US$2.96 billion in net
international reserves, which represents 51.99 weeks of goods
imports, the report discloses.  The BOJ's total foreign assets, as
at the same time period, were US$3.93 billion -- which is US$72
million more than the previous month in October, the report says.

Liabilities at November month end comprised US$969.56 million for
the International Monetary Fund, up US$3.25 million over October,
the report relays.  Gross reserves at end-October amounted to
approximately US$3.9 billion -- representing 116.2 per cent of the
Assessing Reserve Adequacy metric for FY 2020-21, the report
relays.

The Government of Jamaica is targeting net international reserves
of $2.4 billion at fiscal year end March 2021, the report adds.

                         About Jamaica

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

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

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



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

BNTECB 07-2: Moody's Reviews Ba3 Sub. Certs. Rating for Downgrade
-----------------------------------------------------------------
Moody's de Mexico, S.A. de C.V. placed on review for downgrade the
ratings of Ba3 (sf) (Global Scale, Local Currency) and A3.mx (sf)
(Mexican National Scale) of BNTECB 07-2 (Subordinate Certificates)
issued in connection with a Mexican collateralized loan obligation
securitization sponsored by Banco Mercantil del Norte, S.A.,
Institucion de Banca Multiple, Grupo Financiero Banorte
("Banorte").

The complete rating action is as follows:

BNTECB 07-2 Subordinate Certificates: the ratings of Ba3 (sf) and
A3.mx (sf) (Mexican National Scale) were placed on review for
possible downgrade.

Originator: Banco Mercantil del Norte S.A., Institucion de Banca
Multiple, Grupo Financiero Banorte

Trustee: CIBanco S.A., Institucion de Banca Multiple

Interest and principal payments to certificate holders are backed
by cash flows received from a portfolio of securitized loans
granted to Mexican states and municipalities as well as their
decentralized entities and originated by Banorte. Most of the loans
are backed by revenues that states and municipalities receive
directly from the federal government (federal participation
revenues). The loans have been assigned to a trust established in
accordance with Mexican law.

RATINGS RATIONALE

The BNTECB 07-2 Subordinate Certificates have been placed on review
for downgrade to reflect Moody's updated assessment regarding the
request by the largest obligor in the pool, for a deferral in the
payment of 95% of accrued interest for a period of four months,
from November 2020 to February 2021. Accrued unpaid interest is
expected to be paid after the end of the grace period, starting in
March 2021, in equal installments throughout the following four
payment periods. Interest deferral was approved by investors in the
BNTECB 07 and BNTECB 07-2 certificates.

The decrease in cash flow to the trust during the deferral period
will reduce liquidity of the structure by turning the excess spread
negative, forcing the trust to draw resources from the interest
reserve fund to make timely interest payments. In turn, the
depletion of the interest reserve fund provides the structure with
less protection. The subordinate certificates, which are being
placed under review for downgrade, currently have 4.2% of credit
enhancement in the form of overcollateralization and are more
exposed to any further shortfalls in cash flows. The senior
certificates are not affected by this rating action.

Both classes of certificates pay interest monthly and have a legal
final maturity date on May 15, 2037.

Moody's took into account a credit measure for each underlying
loan, including either a rating or a credit estimate. Credit
estimates are unpublished point-in-time opinions of the approximate
credit quality of an individual security, financial contract, or
issuer for which no Moody's rating exists.

Moody's ratings also reflect the role of Banorte as collateral
manager, as well as the availability of a cash reserve. These
factors mitigate the liquidity risks associated with this
transaction's dual waterfall structure. To date, the transaction
has demonstrated a consistent payment history since closing, with
no reported delinquencies since the deal closed in 2007. According
to the collateral manager report as of November 2020, all of the
loans are current.

The loan portfolio, comprised of eight loans to six obligors, is
relatively concentrated. The largest obligor concentration is 31.4%
and the lowest is 2.2% of the total pool balance. The three largest
loans account for 84.2% while the top five loans account for 93.9%
of the total pool balance. As of November 2020, the pool's weighted
average remaining life of the loans is 11 years and the weighted
average interest rate borne by the loans is 6%.

Moody's based the ratings of the transaction's tranches on their
expected loss. Moody's estimated expected loss using a cash flow
model that consists of two primary components a mechanism for
associating asset default scenarios with the likelihood of each
scenario (a default distribution) and a cash flow component that
relates each asset default scenario to the cash flows that the
rated tranche is scheduled to receive in that scenario. After
Moody's apply the default distribution to the cash flow model, and
after considering the target overcollateralization level, a 50%
recovery rate and the liability structure, Moody's calculated the
expected loss for each rated tranche. Moody's took into account the
credit quality of the securitized assets and the expected average
life of each loan.

The principal methodology used in these ratings was "Moody's Global
Approach to Rating Collateralized Loan Obligations" published in
August 2020.

Moody's considered the servicer's practices and considers them
adequate.

The period of time covered in the financial information used to
determine BNTECB 07 and BNTECB 07-2 ratings is between November
2007 and November 2020.

The coronavirus outbreak, the government measures put in place to
contain it, and the weak global economic outlook continue to
disrupt economies and credit markets across sectors and regions.
Moody's analysis has considered the effect on the performance of
corporate assets from the current weak Mexico economic activity and
a gradual recovery for the coming months. Although an economic
recovery is underway, it is tenuous and its continuation will be
closely tied to containment of the virus. As a result, the degree
of uncertainty around Moody's forecasts is unusually high.

Moody's regards the coronavirus outbreak as a social risk under our
ESG framework, given the substantial implications for public health
and safety.

Factors that would lead to an upgrade or downgrade of the ratings:

Factors that would lead to an upgrade of the ratings:

In case of prepayment of a loan, use of proceeds from prepayment
for amortization of certificates coupled with an increase in
available credit enhancement levels.

A significant improvement in the credit quality of the largest
obligors of the pool.

Factors that would lead to a downgrade of the ratings:

An erosion of Credit Enhancement and depletion of Interest Reserve
Fund.

A deterioration in the credit quality of the loans comprising the
pool of loans backing the certificates.

A decline in total collections.

A deterioration in the overcollateralization metrics or a
deterioration in the interest coverage ratio coupled with higher
than expected interest shortfalls on the certificates.

Moody's National Scale Credit Ratings are intended as relative
measures of creditworthiness among debt issues and issuers within a
country, enabling market participants to better differentiate
relative risks. NSRs differ from Moody's global scale credit
ratings in that they are not globally comparable with the full
universe of Moody's rated entities, but only with NSRs for other
rated debt issues and issuers within the same country. NSRs are
designated by a ".nn" country modifier signifying the relevant
country, as in ".za" for South Africa.

MBIA MEXICO: Moody's Affirms Caa1 IFS Rating, Outlook Negative
--------------------------------------------------------------
Moody's de Mexico has affirmed MBIA Mexico, S.A. de C.V.'s Caa1
global local currency insurance financial strength rating, and its
B3.mx national scale IFS rating. The outlook of MBIA Mexico has
been changed to negative from developing. This rating action
follows Moody's Investors Service's affirmation of MBIA Insurance
Corporation's Caa1 IFS rating, with a negative outlook.

The following ratings of MBIA Mexico, S.A. de C.V. were affirmed:

Global scale IFS rating in domestic currency at Caa1

National scale IFS rating in domestic currency at B3.mx

Outlook, changed to negative from developing.

RATINGS RATIONALE

Moody's said that the ratings affirmation of MBIA Mexico reflect
the firm's limited stand-alone resources, its insurance of two
underperforming RMBS transactions and its ownership by MBIA
Insurance Corporation (MBIA Corp., Caa1 IFS, negative) that
provides support in the form of reinsurance and net worth
maintenance agreements, as well as technical oversight. MBIA
Mexico's negative outlook better reflects the recent rating action
on MBIA Corp., given the strong linkages between both entities.

MBIA Corp.'s Caa1 IFS rating (negative outlook) reflects the firm's
weak (albeit improving) capital adequacy position and the
uncertainty associated with the outcomes of several ongoing loss
recovery efforts. Even when MBIA Mexico's financial resources are
sufficient to cover its medium-term obligations, the company's
credit worthiness is ultimately constrained by its limited
resources and MBIA Corp.'s credit profile.

MBIA Mexico's portfolio is highly concentrated, as it comprises
only two outstanding guarantees on two mortgage-backed securities
transactions, both of which present frequent losses and are likely
to continue to perform poorly. Given the company's runoff status,
its underwriting exposure has been declining, and guaranteed loans
are likely to mature between 2034 and 2036.

As of June 2020, the company complied with regulatory solvency
margins, while the company is slightly above the minimum capital
requirement as stipulated by the local insurance regulator. The
company's capital has been fluctuating around the minimum level
required during the past several months.

MBIA Mexico's Caa1 rating benefits from the implicit and explicit
support received from MBIA Corp., which results in a one-notch
uplift from its Caa2 standalone credit profile.

The explicit support relates to the support received from MBIA
Corp. in the form of a capital maintenance agreement in force since
September 2007, along with a reinsurance agreement with a 100%
cession.

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

Moody's said that MBIA Mexico's ratings could be downgraded in case
of a downgrade of MBIA Corp.'s ratings, a significant deterioration
in MBIA Mexico's capital adequacy, and fail to comply with minimum
regulatory solvency margins. MBIA Mexico's ratings could be
upgraded if MBIA Corp's ratings substantially improve.

The principal methodology used in these ratings was Financial
Guarantors Methodology published in November 2019.

The period of time covered in the financial information used to
determine MBIA Mexico, S.A. de C.V.'s rating is between January 01,
2014 and September 30, 2020 (source: MBIA Mexico and Comision
Nacional de Seguros y Fianzas).

OAXACA DE JUAREZ: Moody's Affirms B1 Issuer Rating, Outlook Neg.
----------------------------------------------------------------
Moody's de Mexico affirmed the b1 baseline credit assessment and
the B1/Baa3.mx issuer ratings (Global Scale, local currency/Mexico
National Scale) of the municipality of Oaxaca de Juarez and changed
the outlook to negative from stable.

RATINGS RATIONALE

RATIONALE FOR THE NEGATIVE OUTLOOK

The negative outlook reflects Moody's expectation that Oaxaca de
Juarez will face significant challenges to improve their own source
revenues collection, given the ongoing economic weakness from the
coronavirus pandemic which Moody's views as a social risk, and to
contain growth in operating expenditures. If unaddressed, these
pressures will lead to material operating shortfalls, resulting in
lower liquidity and/or higher debt levels.

As of September 2020, the municipality's own source revenues
collection decreased by 24.6% compared with the same period of
2019, caused by the economic downturn from the Covid-19 pandemic.
This level of decrease is one of the highest registered among the
municipalities rated by Moody's and for 2021 Moody's expects only a
moderate recovery of the own source revenues. Additionally, in 2021
the federal transfers for Mexican RLGs will reduce by 5.2%, based
on the federal expenditure budget. The municipality also faces
pressure on spending, with salaries and wages forecast to rise
11.2% in 2021, due in part to rising pension costs. As a result,
Moody's expects that the gross operating balance will weaken to an
average -9.6% of operating revenues and cash financing requirements
will reach an average 5.5% of total revenues in 2020-21, figures
that contrast with the average levels registered from 2015-19 of
-1.9% and of 0.4%.

Also, the entity has a recurring use of short-term debt in 2019 and
2020, averaging MXN 82.5 million annually, and given the lower
financial margins, Moody's expects that the municipality's
liquidity will be under pressure in 2020-21. Moody's forecasts a
decline of the cash to current liabilities ratio to an average of
0.66 times(x) in 2020-21from the average 1.04x registered over
2015-18. Given ongoing risks to the ability to stronger operating
balances and reduce its cash financing requirements, risks are
tilted to the downside that liquidity could fall further.

RATIONALE FOR THE AFFIRMATION OF RATINGS

The affirmation of Oaxaca de Juarez's B1/Baa3.mx ratings reflects
low debt metrics and liquidity metrics comparable with peers.
Moody's expects net direct and indirect debt relative to operating
revenues will equal 12.4% on average in 2020-21, a figure below the
B1 Mexican median peers (median 25.3%). In addition, though Moody's
recognizes increasing liquidity pressures, given the expected
decrease in the cash to current to current liabilities ratio to
0.66x in conjunction with the use of short term-debt, this metric
will still compare favorably with other B1 Mexican rated peers
(median 0.52x).

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS

In Moody's assessment environmental considerations represent a
moderate risk given the municipality's exposure to natural
disasters such as earthquakes. Nonetheless, these considerations
are not currently material to the municipality's credit profile
because Mexican municipalities have historically received federal
and state aid which helps limit financial pressure.

Social risks are material to Oaxaca's credit profile. Oaxaca de
Juarez is the capital of the state, therefore the municipality has
an advantage in terms of social indicators with respect to the rest
of the state average and has a very low degree of social
marginalization. However, Moody's considers the Covid-19 pandemic
as a social risk which impacts health as well as the substantial
challenges to own-source revenue collection.ealth.

Governance considerations are material to Oaxaca ratings. The
municipality complies with the institutional framework determined
by national legislation for all Mexican regional and local
governments, i.e. Mexican Financial Discipline Law, as well as with
the accounting guidelines of the National Accounting Harmonization
Council, the entity publishes financial statements on a quarterly
basis, however, the information presents some discrepancies.

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

The ratings could face downward pressure if the municipality
reports higher than expected cash financing and operating
requirements, that lead to an acute reduction in liquidity or to an
increase in short-term debt. In contrast, if the municipality's
operating and financial requirements are lower than expected and
the liquidity stabilizes, leading to a reduction in short-term debt
reliance, the ratings outlook could be stabilized.

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

The period of time covered in the financial information used to
determine the municipality of Oaxaca ratings is between January 01,
2015 and December 31, 2019 (source: financial statements of the
municipality of Oaxaca).

UNITED MEXICAN: Egan-Jones Hikes Senior Unsecured Ratings to B
--------------------------------------------------------------
Egan-Jones Ratings Company, on December 21, 2020, upgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by United Mexican States to B from B-.

Headquartered in Mexico City, the states of Mexico are first-level
administrative territorial entities of the country of Mexico, which
officially is named United Mexican States.





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

TELEFONICA CELULAR: Fitch Affirms 'BB+' LT IDR, Outlook Stable
--------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Foreign Currency Issuer
Default Rating (IDR) of Telefonica Celular del Paraguay S.A.
(Telecel) at 'BB+' with a Stable Rating Outlook. Fitch has also
affirmed Telecel's USD550 million senior unsecured notes due 2027
at 'BB+.'

Telecel's ratings reflect its leading market positions in Paraguay,
supported by its extensive network and distribution coverage, and
the strong brand recognition of Tigo. The company's competitive
strengths have enabled stable operational cash flow generation and
high margins, resulting in the company's solid financial profile,
with leverage that is considered low for the rating category.
Telecel's Foreign Currency IDR is capped by the 'BB+' Country
Ceiling of Paraguay.

Telecel's ratings also reflect a strong linkage between the company
and its parent, MIC, given Telecel's strategic and financial
importance to the parent. The company also benefits from synergies
related to MIC's larger scale and management expertise. Telecel is
a 100%-owned subsidiary of MIC.

KEY RATING DRIVERS

Country Ceiling Limits FC Ratings: Telecel's FC IDR is constrained
by the 'BB+' Country Ceiling of Paraguay. The company's underlying
credit quality is highlighted by a leading market position, strong
pre-dividend free cash flow, and a financial profile that is solid
within the rating level. Telecel is the largest telecom provider in
Paraguay offering mobile telephone, pay-tv, and broadband internet
services across the country under the Tigo brand. The company's
business profile and network quality supports its consistent cash
flow generation.

Increased Competitive Pressures: Recent performance has been
impacted by an intense competitive environment in Paraguay's
telecommunications market. Price competition has affected mainly
the pre-paid mobile and business-to-business (B2B) segments. Fitch
expects average revenue per user (ARPU) to continue to be pressured
as the company works on defending its leading market position.
Telecel's growth strategy will be increasingly centered on mobile
data and fixed-line home services (cable and broadband) as the
company seeks to alleviate pressure on declining voice and SMS
revenue.

Solid Market Position and Revenue Diversification: Telecel is a
wholly owned subsidiary of MIC and the leading mobile operator in
Paraguay, with a Fitch estimated mobile market share of 50%.
Telecel has an entrenched position with the most extensive network
in Paraguay under the Tigo brand. Fitch believes Telecel's market
leadership will remain intact, supported by continued expansion in
its fixed-line services. Fitch expects Telecel's home and B2B
segment to represent close to 30% of total revenues by YE2021, up
from 25% in 2018, supported by the continued expansion of its
network coverage. Telecel's mobile segment, which generates about
65% of its revenues, is expected to weaken over the medium to long
term as a result of declining voice/SMS revenues and competitive
pressures. Demand in fixed-line services remains strong, given the
low penetration of services in Paraguay.

Solid Profitability: Telecel's EBITDA margin remained stable at 50%
over the last two fiscal years, mainly as a result of operating
cost reductions as well as a higher proportion of service during
the period. Fitch believes that material EBITDA margin expansion
will be limited due to competitive pressures and an increasing
revenue contribution from lower-margin pay-TV and broadband
services. Nevertheless, Telecel's average projected margin over the
medium to long term is expected to remain solid compared with its
regional telecom peers. Fitch expects margins to stabilize at
around 48% over the medium term.

Upstreams to Parent Pressure FCF: Telecel's negative FCF generation
is unlikely to reverse in the medium term due to high dividends to
its parent, Millicom. Fitch expects cash upstream to remain high,
given its financial position and relatively lower leverage,
pressuring FCF margin into negative territory. Fitch projects cash
flow from operations (CFFO) to remain solid at around PYG1 trillion
annually over the medium term, comfortably covering its estimated
annual capex of roughly PYG550 billion, resulting in solid
pre-dividend FCF.

Relatively Low Leverage: Fitch believes Telecel's solid financial
profile will remain intact over the medium term, backed by its
operational cash flow generation. The company's net leverage should
remain below 3.0x over the medium term, despite the increase in
competitive pressures and continued negative FCF, as a result of
its growing revenues mainly driven from double-digit growth from
the home business. The company's net leverage ratio is expected to
decrease and remain around 2.5x over the rating horizon, which is
considered strong for the rating category.

Pandemic's Impact on Telecoms: Fitch does not expect the same level
of disruption to telecom as other sectors from the coronavirus
pandemic. Increased screen and voice time, across both fixed and
mobile platforms, will likely be offset by declining disposable
income, pressuring revenues and EBITDA generation. A prolonged
recession or significant government intervention into telecom
operators' price-setting would be negative. Paraguay's mobile
market is mostly prepaid, with approximately 75% of subscribers
opting for this plan. Prepaid customers are more price-sensitive
than those that opt for post-paid plans. Positively, low broadband
penetration presents a continued growth opportunity for Telecel.

DERIVATION SUMMARY

Telecel is well-positioned relative to its regional telecom peers
in the 'BB' category based on its high profitability and low
leverage and leading mobile market position, backed by its solid
network competitiveness and strong brand recognition. Telecel
boasts a strong financial profile with high profitability and low
leverage for the rating level, compared to its regional telecom
peers in the same rating category.

The company's credit profile is in line with its peer Comcel Trust
(BB/Stable), an integrated telecom operator and MIC's other
subsidiary in Guatemala, as well as Colombia Telecomunicaciones
S.A. E.S.P. (BBB-/Stable), an integrated telecom operator in
Colombia. Telecel's credit profile is stronger than Axtel
(BB-/Positive) and VTR Finance (BB-/Stable) given their lack of
service diversification and weaker financial profiles.

The company's lack of geographic diversification and weak revenue
diversification, as well as its high shareholder return, temper the
credit. Parent/subsidiary linkage is applicable given MIC's strong
influence over Telecel's operations and MIC's reliance on Telecel's
dividend upstream.

KEY ASSUMPTIONS

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

-- EBITDA margins to slightly deteriorate due to increased
    competition and impact from closures.

-- Negative FCF generation to remain uncurbed in the medium term.

-- Net leverage increasing slightly to 2.8x in 2021 due to
    competitive pressures and pandemic impact.

RATING SENSITIVITIES

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

-- An upgrade of Paraguay's sovereign rating would lead to
    upgrade of Telcel's FC IDR.

-- An upgrade of Millicom, Telcel's controlling shareholder, to
    'BBB-' from 'BB+' would also have positive rating
    implications. Millicom's upgrade triggers include increased
    dividend receipts from its subsidiaries in Colombia and/or
    Panama, as well as upgrades in the Country Ceiling of
    Guatemala and Paraguay to 'BBB-'.

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

-- A downgrade of Paraguay's sovereign rating or country ceiling
    would lead to a downgrade of Telcel's FC IDR.

-- Deterioration in Telecel's net leverage to beyond 3.5x on a
    sustained basis.

-- A negative rating action on Millicom due to sustained net
    leverage exceeding 3.5x on a consolidated basis or 4.5x on a
    holding company debt/dividends received basis.

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: Telecel's liquidity position is adequate,
supported by its readily available cash balance conservative
leverage and solid cash flow generation. As of Sept. 30, 2020, the
company held a cash balance of PYG613.8 billion. The company has
short-term debt of PYG124.4 billion, which Fitch expects to be
serviced with cash flow generation, and no other material debt
repayments over the medium term, which further bolsters its
financial flexibility. The company's total debt as of Sept. 30,
2020 was PYG4,994 billion, which consists mainly of a USD550
million (PYG3,850 billion) senior unsecured bond due 2027 and local
currency unsecured bank debt. In January 2020, Telecel issued a
USD250m add-on to its 2027 senior unsecured notes. The proceeds
from the notes were used at Telecel's parent company, Millicom, for
capex and general corporate purposes as well as for refinancing of
other Telecel debt.

ESG CONSIDERATIONS

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




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

AUTO MASTER: Creditor Route 65 Buying Juncos Property for $439K
---------------------------------------------------------------
Auto Master Express, Inc. and its secured creditor, Route 65, Inc.,
ask the U.S. Bankruptcy Court for the District of Puerto Rico to
authorize the sale of the Service Station located at PR 198 km
16.0, Ceiba Norte Ward, Juncos, Puerto Rico, investment property at
Carr. 198 km 16.0 Bo. Ceiba Norte Juncos, Puerto Rico, to Route 65
for $408,000, plus $30,576 to the Municipal Revenue Collection
Center ("CRIM").

Auto Master owns and rents the Property.  On Schedule A/B (Docket
1) Auto Master listed the Property.  The Property is disclosed at
Docket No. 1, page 11, Part 9 and valued at $300,000.  It is
registered at the Property Registry of Caguas, Section II of
Juncos, Page 60 of Book 89 of Juncos, Property Number 2901.

The Property serves as collateral for creditor Route 65 which is
the largest secured creditor in the case -- Proof of Claims No. 12,
13 and 14 by Banco Popular de Puerto Rico ("BPPR") for which Route
65 filed the corresponding Transfer of Claims on July 1, 2020 in
the secured amount of $791,759.

The Parties have reached an agreement, which was presented to the
Court, in which:

     A. In payment in full of claims no. 12, 13 and 14, Debtor will
transfer free and clear of all liens, property No. 2,901 to Route
65, this will be achieved through a Deed in Lieu in favor of Route
65.

     B. Route 65 will pay for CRIM secured claim No. 2, for the
amount of $30,576.

     C. In relation to Property No. 6,662, Route 65 will deliver
the Mortgage Note for the amount of $80,000, dated July 31, 2009 to
Mr. Jose R. Rios Polo and Mrs. Blanca Quiles Carrasquillo.

     D. In the event the case of caption is converted to Chapter 7
and the Deed In Lieu has not been presented at the Property
Registry, the automatic stay will be immediately considered lifted
in favor of Route 65, as to Property No. 2,901 and against third
parties, without any further notice or hearing.

The Stipulation was approved by the Court on Oct. 13, 2020.

In compliance with PR LBR 6004-1, the Parties submit the following
terms of the sale:

     a. Purchaser or Transferee: Route 65, Inc. or its designee.

     b. Total Consideration: Property: $408,000, CRIM: $30,576

     c. Closing Date: Within 30 days after the Court's approval of
the sale or on such other date and time as may be agreed by the
Debtor and Route 65.

     d. Credit Bid: In accordance with Section 363(k) of the
Bankruptcy Code, Route 65 will credit bid the amount of $430,575.90
as payment in full of Proof of Claims No. 12, 13 and 14, which
amount to $791,759 in the aggregate.  Thus, such Proof of Claims
will be paid in full and Debtor will be released from any and all
obligations regarding said claims.

All closing costs associated with this transaction will be paid by
Route 65.

The Property has no equity and the stipulation will alleviate the
Estate in as much as it will reduce the amounts due by Debtor,
eliminating Route 65 claims and CRIM's secured claim No. 2 for the
amount of $30,575.  Therefore, the Debtor asks the Court to approve
the transfer of the Property free and clear of liens to Route 65.

Objections, if any, must be filed within 21 days after service of
notice.

                   About Auto Master Express

Auto Master Express Inc. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.P.R. Case No. 18-01464) on March 19,
2018.  At the time of the filing, the Debtor estimated assets of
less than $500,000 and liabilities of less than $1 million.  The
Debtor engaged Lcdo. Carlos Alberto Ruiz, CSP, as its legal
counsel.



===============
X X X X X X X X
===============

LATIN AMERICA: Debt Will Hit Post-Crisis Sweet Spot
---------------------------------------------------
Anna Szymanski, writing for Reuters, says that Latin America's luck
will change.  Pandemic lockdowns caused more regional corporations
to default between early May and June, according to Reuters.  But
yield-starved investors will ignore some of these risks, says the
report.

According to Reuters, there's a lot of bad news to ignore.  The
International Monetary Fund expects Latin American and Caribbean
economies to contract by more than 8% in 2020, the most of any
region, with only a 3.6% improvement in 2021.  And non-financial
companies with foreign debt have seen revenue dented by a combined
$200 billion due to the pandemic, Fitch Ratings estimates.  The
credit ratings company expects sales to rebound by less than half
that amount in 2021, the report notes.

But there are green shoots, notes Reuters.  The largest economies
regained some lost ground in the third quarter, the report
discloses. U.S. appetite for manufactured products helped Mexico
report seasonally adjusted quarter-on-quarter growth of 12%, and
local stimulus contributed to record-breaking expansion of almost
8% in Brazil, led by President Jair Bolsonaro, the report says.

More fiscal stimulus in developed countries, especially spending on
infrastructure, could further boost commodity prices, the report
notes.  That would be good for some of the region's largest
companies by revenue, including Petrobras, Pemex and Vale.
Meanwhile, regional companies' cash piles have grown to around 2.4
times short-term debt in 2020 from less than 2 times in 2019,
Moody's Investors Service calculates, the report relays.  And with
a few exceptions, most companies no longer have significant
mismatches between dollar debt and dollar revenues, the report
says.

Reuters notes that country-specific risks remain. For example,
Chile is getting a new constitution, and Peru saw two presidents
leave office within a week in November, the report discloses.
Also, around half of the region's countries are on Fitch Ratings'
negative watch list for credit ratings downgrades, the report says.
That will weigh on corporates with close links to states, like
Colombia's Ecopetrol. But the returns on offer in the region may be
too alluring for investors to pass up given low U.S. and European
yields, the report relays.  The yield gap between Latin American
corporates bonds and U.S. government debt has fallen by almost
three-fifths since March, to around 370 basis points by
mid-December, according to an ICE Bank of America index, the report
notes.  Even so, average spreads remain among the widest in
emerging markets, the report says.  That sort of reward may be
enough for investors to take on the risks, the report adds.


                           *********


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

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

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

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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of the same firm for the term of the initial subscription or
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