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

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

          Friday, January 15, 2021, Vol. 22, No. 6

                           Headlines



B R A Z I L

BRAZIL: Defaults on BRICS Bank Deal After Congress Blocks Payment
BRAZIL: New Vehicle Sales Fall Over 26% in 2020
SIMPAR SA: Fitch Assigns 'BB-' Rating on Proposed Unsec. Notes


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Gets Nearly Half of Investment in Caribbean
[*] DOMINICAN REPUBLIC: Positive Projections for Industrial Sector


J A M A I C A

CARNIVAL CRUISE: Line Cancels Sailings From US Ports Thru March 31


M E X I C O

CREDITO REAL: Fitch Assigns Final 'BB+' Rating on USD Unsec. Notes


T R I N I D A D   A N D   T O B A G O

CARIBBEAN AIRLINES: Suspends Flights to Cuba


V E N E Z U E L A

VENEZUELA: Maduro Says Bondholders Lost $77BB due to US Sanctions

                           - - - - -


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B R A Z I L
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BRAZIL: Defaults on BRICS Bank Deal After Congress Blocks Payment
-----------------------------------------------------------------
Rio Times Online reports that Brazil's Economy Ministry said it had
defaulted on its penultimate capital installment to the New
Development Bank (NDB) because the payment had not been authorized
by Congress.

The NBD was established by Brazil, Russia, India, China and South
Africa, a group of emerging economies known as the BRICS. Brazil in
2015 agreed to pay its contribution to capitalize the bank in seven
installments, according to Rio Times Online.

The Ministry of Economy said it forwarded requests for budget
allocations to Congress multiple times to make the payment, the
report notes.

                       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.


BRAZIL: New Vehicle Sales Fall Over 26% in 2020
-----------------------------------------------
Rio Times Online reports that new vehicle sales in Brazil fell
26.16 percent in 2020 compared to 2019, the worst annual record
since 2016, largely due to the impact of the novel coronavirus
pandemic, the National Federation of Automotive Vehicle
Distribution (Fenabrave) said January 5.

The dealers association reported that 2,058,315 new cars, light
commercial vehicles, trucks and buses were sold in 2020, compared
to 2,787,618 in 2019, according to Rio Times Online.

The outlook for 2021 is more positive, with a forecast of 16
percent growth in new vehicle sales in Brazil, the largest Latin
American economy, said Fenabrave President Alarico Assumpcao Junior
in a video press conference, the report relays.

                       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.


SIMPAR SA: Fitch Assigns 'BB-' Rating on Proposed Unsec. Notes
--------------------------------------------------------------
Fitch Ratings has assigned a 'BB-' rating to the proposed benchmark
sized unsecured notes to be issued by Simpar Europe, a wholly owned
subsidiary of Simpar S.A. (Simpar). The notes will be
unconditionally and irrevocably guaranteed by Simpar. Proceeds will
be used to refinance the existing 2024 bonds and general corporate
purposes. Fitch currently rates Simpar's Long-Term Foreign and
Local Currency Issuer Default Ratings (IDRs) 'BB-'/Outlook Stable.

Simpar's ratings reflect its strong business profile, supported by
a leading position in the Brazilian logistics industry and
diversified service portfolio, as well as its track record of
resilient operating performance throughout various economic cycles.
The company's high consolidated leverage, which mostly relates to
its ongoing strong growth strategy, is partially mitigated by its
above-average financial flexibility and the company's ability to
generate positive FCF through adjustments to its capex spend.
Simpar maintains a strong liquidity position, which, together with
the proposed notes, reduces refinancing risks.

Fitch expects Simpar to continue to take advantage of market
opportunities to grow its business while managing its capital
structure to a consolidated net adjusted debt/EBITDA ratio of
around 4.0x in 2021 and 2022. Simpar's rating also incorporate
management's commitment to maintain adequate liquidity and a
manageable debt maturity profile. Growth strategies that elevate
the company's leverage or the sale of relevant equity stakes, in
any operating company that reduces Simpar's unrestricted access to
their cash without materially lowering its leverage, may lead to a
change in Fitch's consolidated rating approach and could pressure
credit quality.

KEY RATING DRIVERS

Diversified Business Portfolio: Simpar's diversified service
portfolio reflect a strong business profile, supported by a leading
position and resilient operating performance in the Brazilian
logistics, supply chain management, passenger and general cargo
transportation industry. JSL Logistica, focus on supply chain
management, passenger and general cargo transportation. Movida is a
rent-a-car and fleet rental company, Vamos, a heavy vehicles and
equipment rental business, CS Brasil a fleet rental company focused
on the public sector, and Original, a vehicle dealership business.
As of September 2020, JSL Logistica (73.6% stake) represented 19%
of consolidated EBITDA, Vamos (100% stake) 28%, Movida (55% stake)
36%, CS Brasil (100% stake) 15%and the dealerships (100% stake)
only 2%.

Strong Market Position: Simpar has a leading position in the
Brazilian logistics industry with a diversified portfolio of
businesses and a relevant presence in multiple sectors of the
economy. The company's strong market position, strategic and
operational nature of the service it provides, coupled with
long-term contracts for most of its logistic and heavy vehicle
rentals, minimizes the company's exposure to more volatile economic
cycles. The company's significant operating scale has made it an
important purchaser of light vehicles and trucks, giving it a
significant amount of bargaining power versus other competitors in
the industry.

Robust Operating Cash Flow: Simpar group presents a strong and
reasonably predictable cash flow generation, based on long-term
contracts. The company has delivered solid and improving margins,
while growing its rentals businesses, Vamos and Movida. Fitch
expects to see margin evolving from pre-crises levels in 2021-2022,
as these two businesses regained traction after the worst period of
lockdown restrictions. Fitch also expects JSL Logistics to grow, to
improve margins and become a more asset light operation. Fitch
forecasts Simpar's consolidated EBITDA at BRL2.1 billion (21%
margin) in 2020 and BRL2.7 billion (23%margin) in 2021, from BRL1.9
billion (20% margin) in 2019.

Growth to Continue to Pressure Leverage: Simpar's consolidated net
leverage, measured by total net debt/EBITDA, should be 4.2x in 2020
and 4.0x and 3.9x in 2021 and 2022. These levels of leverage
compare with 4.9x in 2017, 4.3x in 2018 and 4.0x in 2019. In
Fitch's view, a more moderate grow strategy or a faster improvement
in operating cash flow generation in the logistics and in the
vehicle rental business would be required to temper leverage in the
medium term.

FCF is expected to remain negative, on average, at BRL1.7 billion
in the three-year period from 2020 to 2022, pressured by annual
average growth capital expenditures of BRL2.2 billion. Considering
maintenance capex only, Simpar's operating cash flow from
operations (CFFO) would be positive. Excluding growth capex, Simpar
generated, approximately, an average of BRL743 million of positive
CFFO during 2016-2019.

Coronavirus's Limited Impact: Simpar's strong presence in logistics
and fleet and heavy vehicles and machinery rentals, and its
associated long-term contracts with corporate clients helped it to
mitigate its exposure to social distancing and mobility
restrictions applied during the coronavirus pandemic. Moreover,
contracts maturing in 2020 represented between 15% and 20% of total
revenue - historical renewal rates have been over 80% on a
normalized basis. During the worst period of lockdown restrictions,
contract cancelations and the slight increase in delinquency were
not meaningful.

Full Ownership Mitigates Structural Subordination: The full
ownership or relevant majority stake in most of the operating
companies, excluding Movida, mitigates the structural subordination
of the debt at Simpar level. It allows Simpar to determine the
business and financial strategies of the operating companies,
select their management and manage their cash -- as there is no
restriction on upstream dividends or intercompany loans. The
absence of cross default provisions and upstream guarantees are
credit negatives, but not sufficient, to notching down the bond's
rating at this point.

Major Equity Sale May Change Rating Approach: The sale of relevant
equity stakes, in any operating company, that reduces Simpar's
unrestricted ability to access their cash without materially
lowering leverage, may lead to a change in Fitch's consolidated
rating approach and may view Simpar as a dividend receiving holding
company, which debt that would be structurally subordinated to that
of the operating companies; its credit profile on a standalone
basis may be considered weaker than that of the operating
companies.

DERIVATION SUMMARY

Simpar's ratings reflect its leveraged capital structure and solid
business profile, supported by a leading position in the Brazilian
logistics industry and a diversified and resilient portfolio of
businesses. The company's large business scale provides important
bargaining power with automobile and equipment OEMs, and is a key
competitive advantage compared with peers in the Brazilian market.

Fitch believes that Simpar's bargaining power and business position
tend to be relatively closer to the industry's benchmark, Localiza
Rent a Car S.A. (BB/Negative), and much stronger than that of Ouro
Verde Locacao e Servico S.A. (BB-/Stable). Compared with Localiza,
Simpar has a weaker financial profile with higher leverage and
relatively higher refinancing risks. Compared with Ouro Verde,
Simpar has higher leverage and similar liquidity position, but a
much better business profile and access to credit markets.

Simpar's ratings compare well with other peers in the Brazilian
transportation segment. Simpar and Rumo S.A. (BB/Negative) share
similar business risks, considering their respective business
traits, but Simpar's leverage is higher. Compared with Hidrovias do
Brasil S.A. (BB/Negative), Simpar's business position is stronger
but its leverage profile and refinancing risks are relatively
weaker.

KEY ASSUMPTIONS

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

-- Average consolidated annual revenue growth at 13% from 2020 to
    2022;

-- Consolidated EBITDA margin at 23%, on average, from 2020 to
    2022;

-- Consolidated net capex at around BRL2.2 billion, on average,
    from 2020 to 2022;

-- Cash balance remains sound compared to short-term debt;

-- Dividends at 25% net income;

-- No large-scale M&A activity or equity sale.

RATING SENSITIVITIES

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

-- An upgrade on the ratings is unlikely in the short to medium
    term, given the group's consolidated high leverage and fairly
    aggressive growth strategy.

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

-- Equity sale of any operating company that reduces Simpar's
    unrestricted ability to access their cash, without materially
    lowering leverage;

-- Failure to preserve liquidity and inability to access adequate
    funding;

-- Prolonged decline in demand coupled with company inability to
    adjust operations, leading to a higher than expected fall in
    operating cash flow;

-- Increase in net adjusted leverage to more than 4.0x beyond
    2021;

-- Material deterioration on the group's fleet rental and
    logistics business.

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: Simpar adequate liquidity position, relative
its short-term debt, is a key credit consideration, with cash
covering short-term debt by an average of 1.2x during the last four
years. The company's expected negative FCF, a result of its growth
strategy, will be financed by debt in Fitch's rating scenario. As
of Sept. 30. 2020, Simpar had BRL5.2 billion of cash and
BRL12.8billion of total adjusted debt, BRL1.7 billion of which is
due on the short-term debt (3.2x cash coverage ratio). These
figures exclude the BRL1.9 billion credit-linked note.

Excluding Movida's cash and short-term debt, Simpar's
cash-to-liquidity position is also adequate with BRL3.5 billion of
cash and BRL0.8 billion of short-term debt (4.3x cash coverage
ratio). The company's debt profile is mainly comprised of local
debentures, promissory notes and CRA issuances (64%), bond issuance
(31%) and FINAME and leasing operations (5%). Currently, about 11%
of Simpar's debt is secured. Additionally, Simpar's financial
flexibility is supported by the group's ability to postpone growth
capex to adjust to the economic cycle and to the considerably
number of the group's unencumbered assets, with a book value of
fleet over net debt at 1.5x.

SUMMARY OF FINANCIAL ADJUSTMENTS

-- Growth capex was moved from the CFO to the CFI;

-- OEM receivables related to vehicle acquisitions added to
    capex;

-- Total debt was adjusted by net derivatives, floor plan and
    accounts payables referred to acquisitions;

-- The CLN and NCE transactions were removed from cash and debt,
    respectively.

ESG Considerations

Simpar has an Environmental, Social and Corporate Governance (ESG)
Score of '4' for Governance Structure. Simpar has a concentrated
ownership and control structure along with a complex group
structure that weakens both the company's corporate governance.
This has a negative impact on the credit profile, and is relevant
to the ratings in conjunction with other factors.

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




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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: Gets Nearly Half of Investment in Caribbean
---------------------------------------------------------------
Dominican Today reports that the Dominican Republic continues to be
the first destination country for foreign direct investment (FDI)
in the Caribbean, since in 2019 it captured 47% of the investments
made in the region, according to the most recent report "Foreign
Direct Investment in Latin America and the Caribbean" published
last December by the Economic Commission for Latin America and the
Caribbean (ECLAC).

That year, FDI inflows to the Caribbean totaled US$6,467 million,
representing a 20.3% growth over 2018, according to Dominican
Today.  According to the publication, this increase was influenced
mainly by the entry of investments into Dominican territory,
according to Dominican Today.

Tourism was the sector that attracted the most significant interest
from foreign investors and represented 29% of FDI inflows in 2019,
the report relays.  In second place was the real estate sector,
which represented 15% of the inflows, although these decreased by
13% concerning 2018, the publication states, the report notes.

Other sectors that attracted investment were:

-- The electricity sector, where inflows grew by 85%.

-- Telecommunications, which had a negative balance in 2018,
attracted 11% of investment in 2019.

-- Mining, where FDI grew by 50%.

On the other hand, in the manufacturing industry, the receipt of
capital fell 53% and went from representing 20% of inflows in 2018
to 8% in 2019. FDI inflows to the financial sector also fell by
44%, the report relays.

"In 2019, the country received $3.013 billion in FDI, 18.8% more
than in 2018, and although this amount does not reach the record
levels of 2017, it is almost 22% higher than the average of
investments received from 2010 to 2017. In the first semester of
2020, however, the income fell by 22%, showing the strong impact
that the pandemic had on the tourism industry, one of the most
attractive sectors for foreign capital in the country," indicates
the report regarding the Dominican Republic, the report notes.

As for the countries that contribute investment to the country, in
2019, the United States was the country where most of the assets
came from, representing 31%, the report discloses.  The other two
most important investors were Mexico (21%) and Spain (13%), the
report says.

Behind DR is Guyana, which received 26% of the inflows and
surpassed Jamaica (10%) and the Bahamas (9%), the report relays.
The report states that before FDI grew in Guyana, these last two
countries were the primary recipients of investment along with the
Dominican Republic, according to Listín Diario, the report
discloses.

However, the results of 2020 will be very different due to the
impact of the coronavirus pandemic, as ECLAC estimates that in that
year, global FDI will show a drop of 40% and between 5% and 10% in
2021, 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).


[*] DOMINICAN REPUBLIC: Positive Projections for Industrial Sector
------------------------------------------------------------------
Dominican Today reports despite the situation the Dominican
Republic is experiencing as a result of the COVID-19 Pandemic, 2021
begins with optimistic projections for the industrial sector,
thanks to the investments made in the last quarter of 2020,
exceeding USD120 million, representing thousands of jobs.

In this sense, the Minister of Industry, Commerce and Mipymes,
Victor-Ito- Bisono, said, assuring that the behavior of the
national productive apparatus for 2021 projects a rhythm towards
positive numbers that will contribute to the efforts made by the
government to achieve the economic recovery of the country,
according to Dominican Today.

Bisono stressed that "if today we have thousands of projected jobs,
dozens of industrial parks that will begin their expansion or
operations in 2021 and private investment that only in the last
quarter of 2020 exceeds 120 million dollars, it is because the
strength of the public policies of the government of President Luis
Abinader gives confidence and results for the economic
reactivation," the report relays.

He explained that, according to the Central Bank's Monthly
Indicator of Economic Activity published in December, the country
had launched the broadest credit stimulus plan in the entire
Central American and Caribbean region, which has allowed the trade
sectors and MSMEs have access to RD$69,270 million and the
manufacturing sector RD$19,045, an economic boost that in the
opinion of Minister Bisono, "in times of a pandemic protects these
sectors and ensures jobs," the report notes.

Likewise, he explained that the trade sector is moving towards good
numbers with a sustained recovery, reaching -1.9% of GDP in
November of this year, which translates into a significant
improvement compared to -3.9% in October of 2020, the report
discloses.

Similarly, the Minister of Industry, Commerce and MSMEs highlighted
the importance of the entry into force of fiscal stimuli for
qualified industries, with the enactment of Law 242-20, which for
2021 project a much more significant advance in the
industrialization of the country, with higher levels of
profitability for this sector and the expansion of the local
industry to other international markets, now more competitive, the
report says.

"President Abinader arrived with a plan and a clear goal to the
government.  His first actions for the productive sectors were to
declare industrialization a national priority, which from Industry
and Commerce we have assumed by encouraging, accompanying and
working with those sectors, leveraging ourselves on public policies
and projects to promote them," Bisono pointed out, 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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CARNIVAL CRUISE: Line Cancels Sailings From US Ports Thru March 31
------------------------------------------------------------------
RJR News reports that Carnival Cruise Line has cancelled all
embarking from US homeports up to March 31 this year.

The company has also extended its sailing pause for some of its
vessels past March 31, given that it cannot sail certain
itineraries under current CDC guidelines, according to RJR News.

Carnival Cruise President Christine Duffy says bookings continue to
show a strong demand for cruise travel, even amidst the ongoing
pandemic, the report notes.

However, she said the cruise line is eyeing a phased approach to
its return to sailing, the report relays.

On March 13 last year, Carnival issued its first notice of a pause
in its cruise business because of the global spread of COVID-19,
the report adds.




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M E X I C O
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CREDITO REAL: Fitch Assigns Final 'BB+' Rating on USD Unsec. Notes
------------------------------------------------------------------
Fitch Ratings has assigned a final Long-Term rating of 'BB+' to
Credito Real, S.A.B. de C.V. Sofom, E.N.R.'s (Credito Real) U.S.
dollar senior unsecured notes. The final rating follows a review of
the final terms and conditions conforming to information received
and is in line with the expected rating assigned on Jan. 6, 2021.

The USD500 million notes due 2028 with the first four years
non-callable (7NC4) are at a fixed rate. The notes will be
unconditionally guaranteed by two restricted subsidiaries of
Credito Real (Credito Real, S.A. and CREAL Nomina, S.A. de C.V.).
Credito Real intends to use net proceeds from the offering to
refinance existing liabilities including to pay a tender offer of
the 2023 senior notes as well as general corporate purposes.

Fitch expects that leverage metrics will remain consistent with the
rating and does not anticipate increased market risk exposure as a
result of this transaction, as the company will hedge both FX rate
risk and interest rate risk through derivative financial
instruments.

The rating of the notes already considers the recent announcement
of the joint acquisition with two investment funds of Banco Ahorro
Famsa´s loan portfolio with a book value of MXN 11,058.4 million,
through a SPV, and which will result in a much lower exposure in
the company´s balance sheet, both relative to total loans and the
company's tangible capital.

KEY RATING DRIVERS

The rating of the senior global debt is at the same level as
Credito Real's Long-Term Issuer Default Ratings (IDRs) of
'BB+'/Outlook Negative, as the likelihood of default of the notes
is the same as the one of Credito Real.

Credito Real´s Negative Rating Outlook reflects Fitch's
expectation that the company´s asset quality and profitability
could weaken as a result of operating environment deterioration.
Credito Real's business model has proved relatively resilient
through the cycle, due to its concentration (55.9% of total loans)
in payroll loans to unionized state and federal public-sector
employees that is a segment particularly less sensitive to
unemployment.

However, the company is also exposed to non-payroll segments such
as SMEs and operations in Central America, which are more sensitive
to the effects of the coronavirus crisis and the economic slowdown.
Credito Real's earnings metrics could continue to be pressured by
loan loss provision increases or lower interest margins, which
could in turn result in higher leverage.

Credito Real's ratings are highly influenced by the operating
environment of 'bb+' with a negative trend. The operating
environment assessment considers a blended approach and
incorporates the company's material exposures in Central America
and the U.S., as well as the predominant operations in Mexico, with
80% of its gross loan portfolio, as of September 2020.

The company's ratings also place high importance on Credito Real's
solid company profile compared to other non-bank financial
institutions (NBFIs) given its leading franchise in the payroll
deductible loans business in Mexico. In addition, the ratings
reflect Credito Real's long track record of an asset quality above
its peers; recurring, although recently reduced, earnings
generation; and reasonable leverage levels. Increased refinancing
and liquidity risk due to the company's wholesale funding profile,
have also been factored into the ratings.

As of September 2020, leverage (measured as total debt-to-tangible
equity) was 5.1x. Fitch estimates that the proposed global senior
unsecured notes on a pro forma basis would result in an increase of
its leverage metrics to approximately a tightened 5.5x, while
adjusted metric from derivatives valuation will likely be remain
commensurate with its ratings.

Ratings are constrained by the company's high-risk appetite as a
niche business that targets higher risk segments, presence in
lower-rated countries in Central America, and rapid and inorganic
growth strategies. The operational, political and reputational
risks related to its payroll business also limit its ratings.
Fitch's assessment of Credito Real's risk appetite assessment
incorporates risk related to the recent suspensions of some
agreements with public sector entities.

RATING SENSITIVITIES

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

-- The rating of this issuance could be downgraded in the event
    of a downgrade of Credito Real's IDRs, which currently have a
    Negative Outlook.

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

-- The rating of this issuance would mirror any changes in the
    company's IDR; however, Credito Real´s current Negative
    Outlook makes an upgrade highly unlikely in the near term.

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.

SUMMARY OF FINANCIAL ADJUSTMENTS

Pre-paid expenses were reclassified as other intangibles and
deducted from Fitch Core Capital. Results from investments in
associates were reclassified as operating income. Income from
leasing and factoring operations were reclassified as interest
income. Its operational lease portfolio and factoring operations
were included in gross loans, with the portion of delinquent leases
classified as impaired loans. The coupons of the perpetual notes
were reclassified as interests.

ESG CONSIDERATIONS

Credito Real, S.A.B. de C.V., Sociedad Financiera de Objeto
Multiple, Entidad No Regulada: Exposure to Social Impacts: 4,
Customer Welfare - Fair Messaging, Privacy & Data Security: 4

Credito Real has an ESG Relevance Score of '4' for Customer Welfare
- Fair Messaging, Privacy & Data Security due to its exposure to
reputational and operational risks as its main business targets
government employees and dependencies at relatively high rates,
which has a negative impact on the credit profile and is relevant
to the rating in conjunction with other factors.

Credito Real has an ESG Relevance Score of '4' for Exposure to
Social Impacts due to its exposure to a shift in social or consumer
preferences or to government regulation of its lending offer, which
has a negative impact on the credit profile and is relevant to the
ratings in conjunction with other factors.

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




=====================================
T R I N I D A D   A N D   T O B A G O
=====================================

CARIBBEAN AIRLINES: Suspends Flights to Cuba
--------------------------------------------
RJR News reports that Caribbean Airlines Limited has suspended
commercial service to Havana, Cuba until further notice.
                           
The airline says the decision follows correspondence from the
Instituto de Aeronautica Civil de Cuba advising of the country's
latest protocols and restrictions to combat COVID-19, according to
RJR News.

Restrictions on some inbound commercial flights came into effect on
January 1.

Cuba said it was restricting travel from six countries over
COVID-19 fears, the report relays.

On the list are the United States, Mexico, Panama, the Bahamas,
Haiti, and the Dominican Republic, the report adds.

             About Caribbean Airlines

Caribbean Airlines Limited - http://www.caribbean-airlines.com/-
provides passenger airline services in the Caribbean, South
America, and North America.  The company also offers freighter
services for perishables, fish and seafood, live animals, human
remains, and dangerous goods.  In addition, it operates a duty free
store in Trinidad.  Caribbean Airlines Limited was founded in 2006
and is based in Piarco, Trinidad and Tobago.

As reported in the Troubled Company Reporter-Latin America on
November 2, 2015, RJR News said that Michael DiLollo, Chief
Executive Officer of Caribbean Airlines Limited, quit after just 17
months on the job. The 48-year-old Canadian national, citing
personal reasons, resigned with immediate effect.  His resignation
was accepted by the airline's board of directors. Mr. DiLollo was
appointed Caribbean Airlines CEO in May 2014, following the sudden
resignation of Robert Corbie in September 2013.

In early February 2015, Larry Howai, then Finance Minister, told
Parliament that unaudited accounts for 2014 showed the airline made
a loss of US$60 million, inclusive of its Air Jamaica operations,
and the airline planned to break even by 2017. Mr. Howai told the
Parliament that a five-year strategic plan had been completed and
was in the process of being approved for
implementation.

In an interview with the Trinidad & Tobago Guardian in early
November 2015, Mr. DiLollo said CAL did not need a bailout just
yet. Mr. DiLollo said the airline had benefited from extremely
patient shareholders for years and he believed the airline was
strategically positioned to break even in three years.




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

VENEZUELA: Maduro Says Bondholders Lost $77BB due to US Sanctions
-----------------------------------------------------------------
The Latin American Herald reports that Venezuela's leftist
incumbent Nicolas Maduro said that bondholders have lost some $77
billion as issuers have stopped earning $127 billion due to the
direct effects of the harsh sanctions imposed by Washington, making
the nation's oil revenues plummet for a loss of $102.5 billion
between 2014 and 2019.

Maduro also ratified a proposal to negotiate directly with the
bondholders in order to resolve the defaulted debt issue by
negotiation, according to The Latin American Herald.

In the annual State of the Nation address known as "Memoria y
Cuenta" in front of Venezuela's Parliament (aka National Assembly
or AN), the socialist leader pointed out that oil production
dropped 69% in the last five years with a linear reduction of 2.1
million barrels per day (bpd) on average, the report notes.

Furthermore, he pointed out that the country has more than $43
billion in frozen assets - referring to them as "stolen" - abroad,
including $1.2 billion worth of gold blocked by the Bank of
England, the report discloses.

The report relays that Maduro proposed a plan to the now
chavista-controlled AN concerning the recovery of these foreign
assets including Citgo, the US-based refining arm of state-run oil
company Petroleos de Venezuela (PDVSA), and Monomeros, a Colombian
fertilizers firm owned by petrochemicals company Pequiven.

"If we recover these assets, Venezuela would register an immediate
and miraculous recovery. We would have the capacity to produce 2.5
million bpd," he added.

With regard to the sanctions, or "coercive and illegal measures" as
he likes to call them, Maduro said that Venezuela has paid $109.6
billion in external debt during the five-year period prior to the
sanctions, because the country "was always willing to honor its
obligations," the report notes.

                             Venezuela

Venezuela, officially the Bolivarian Republic of Venezuela, is a
country on the northern coast of South America, consisting of a
continental landmass and a large number of small islands and
islets in the Caribbean sea.  The capital is the city of Caracas.

Hugo Chavez was president to Venezuela from 1999 to 2013.  The
Chavez presidency was plagued with challenges, which included a
2002 coup d'etat, a 2002 national strike and a 2004 recall
referendum.  Nicolas Maduro was elected president in 2013 after the
death of Chavez.  Maduro won a second term at the May 2018
Venezuela elections, but this result has been challenged by
countries including Argentina, Chile, Colombia, Brazil, Canada,
Germany, France and the United States who deemed it fraudulent and
moved to recognize Juan Guaido as president.

The presidencies of Chavez and Maduro have challenged Venezuela
with a socioeconomic and political crisis.  It is marked by
hyperinflation, climbing hunger, poverty, disease, crime and death
rates, social unrest, corruption and emigration from the country.

S&P Global Ratings, in May 2019, removed its long- and short-term
local currency sovereign credit ratings on Venezuela from
CreditWatch with negative implications and affirmed them at
'CCC-/C'. The outlook on the long-term local currency rating is
negative. At the same time, S&P affirmed its 'SD/D' long- and
short-term foreign currency sovereign credit ratings on Venezuela.

Moody's credit rating (long term foreign and domestic issuer
ratings) for Venezuela was last set at C with stable outlook in
March 2018.  Meanwhile, Fitch's long term issuer default rating
for Venezuela was last in 2017 at RD and country ceiling was CC.
Fitch, on June 27, 2019, affirmed then withdrew the ratings due to
the imposition of U.S. sanctions on Venezuela.



                           *********


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

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

Copyright 2021.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Peter A. Chapman at 215-945-7000.
.


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