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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

          Tuesday, February 9, 2021, Vol. 22, No. 23

                           Headlines



B A R B A D O S

BARBADOS: Economy Estimated to Have Contracted by 18%, IMF Says


B E R M U D A

VERITAS BERMUDA: Moody's Completes Review, Retains B3 CFR


B R A Z I L

BANCO FORD: Moody's Puts Ba3 BCA on Review for Downgrade
BRAZIL: 2020 Mineral Production Topped 1 Billion Tons, Up 2.5%
VALE SA: Agrees to US$7 Billion for Brumadinho Dam Disaster


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Crews Recoup Deepest Dominican River


E L   S A L V A D O R

EL SALVADOR: Moody's Confirms B3 LT Issuer Rating, Outlook Negative


P U E R T O   R I C O

ASCENA RETAIL: Simon Property Blasts Stores Closures in Plan

                           - - - - -


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B A R B A D O S
===============

BARBADOS: Economy Estimated to Have Contracted by 18%, IMF Says
---------------------------------------------------------------
At the request of the Government of Barbados, an International
Monetary Fund (IMF) team led by Bert van Selm conducted a staff
visit via videoconferencing between February 2 to 5, 2021 to
discuss the implementation of Barbados' Economic Recovery and
Transformation (BERT) plan, supported by the IMF under the Extended
Fund Facility (EFF). To summarize the mission's findings, Mr. van
Selm made the following statement:

"The prolonged COVID-19 pandemic continues to have a major impact
on Barbados. The economy is estimated to have contracted by about
18 percent in 2020, with a gradual recovery projected to start in
2021. Tourism arrivals remain at a fraction of normal levels, and
recent increases in COVID-19 cases in key source markets, including
the US and the UK, will likely delay the recovery. In addition, a
recent outbreak of COVID-19 in Barbados led to an ongoing lockdown
that will reduce economic activity in the first quarter of this
year.

"In this very challenging environment, Barbados continues to make
good progress in implementing its ambitious and comprehensive
economic reform program, while expanding critical investments in
social protection. Key indicative targets for end-December under
the EFF were met. International reserves, which reached a low of
US$220 million (5-6 weeks of import coverage) at end-May 2018,
increased to more than US$1.3 billion at the end of 2020.

"Strong steps have been made in implementing structural reforms. A
new central bank law, aimed at strengthening the autonomy of the
bank while limiting the provision of credit to the government, was
adopted by parliament in December 2020. An actuarial review of the
civil service pension system was completed in November 2020,
providing the basis for upcoming public pension reform. A new
procurement law to strengthen the fairness, integrity and
transparency of the procurement process is expected to be submitted
to parliament in February.

"The team is looking forward to conducting discussions for the
fifth review under the EFF in May and would like to thank the
authorities and the technical team for their openness and candid
discussions."

Barbados is an eastern Caribbean island and an independent British
Commonwealth nation.  Standard & Poor's credit rating for Barbados
stands at B- with stable outlook (January 2020).  Moody's credit
rating for Barbados was last set at Caa1 with stable outlook (July
2019).  




=============
B E R M U D A
=============

VERITAS BERMUDA: Moody's Completes Review, Retains B3 CFR
---------------------------------------------------------
Moody's Investors Service has completed a periodic review of the
ratings of Veritas Bermuda Ltd. and other ratings that are
associated with the same analytical unit. The review was conducted
through a portfolio review discussion held on January 27, 2021 in
which Moody's reassessed the appropriateness of the ratings in the
context of the relevant principal methodology(ies), recent
developments, and a comparison of the financial and operating
profile to similarly rated peers. The review did not involve a
rating committee. Since January 1, 2019, Moody's practice has been
to issue a press release following each periodic review to announce
its completion.

This publication does not announce a credit rating action and is
not an indication of whether or not a credit rating action is
likely in the near future. Credit ratings and outlook/review status
cannot be changed in a portfolio review and hence are not impacted
by this announcement.

Key rating considerations

Veritas's B3 Corporate Family Rating reflects the company's high
leverage, declining revenues and challenges from an evolving
storage software market. The high leverage is offset to some degree
by large cash balances. The rating also considers Veritas's leading
market position as a provider of backup and recovery software and
its entrenched position within enterprise customers' critical IT
infrastructure. However, the storage management software market is
shifting, and solutions provided by new entrants and new
technologies may erode Veritas's leading market position over
time.

The principal methodology used for this review was Software
Industry published in August 2018.



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B R A Z I L
===========

BANCO FORD: Moody's Puts Ba3 BCA on Review for Downgrade
--------------------------------------------------------
Moody's Investors Service has placed on review for downgrade Banco
Ford S.A.'s ba3 Baseline Credit Assessment. At the same time,
Moody's affirmed all other ratings and assessments, including its
long-term global local currency deposit rating at Ba2, following
the affirmation of the ba2 adjusted BCA. The long-term counterparty
risk assessment at Ba1(cr), and the long-term counterparty risk
ratings at Ba1 were also affirmed, together with the long- and
short-term Brazilian national scale ratings. The outlook on the
long-term global deposit ratings remain negative, in line with the
outlook on Banco Ford's parent company, Ford Motor Credit Company
LLC (FMCC, Ba2 negative).

RATINGS RATIONALE

Moody's placed Banco Ford's Baseline Credit Assessment on review
for downgrade because it expects that the bank's business volumes
and profitability will decline, and asset risk will be volatile as
a result of the recent announcement that Ford Motor Company (Ford,
Ba2 negative) will cease car manufacturing in Brazil. Banco Ford
solely finances car dealers in the local market, whose number is
expected to be materially reduced as Ford, instead, moves to sell
vehicles imported from Argentina, Uruguay and other regions.

Moody's review will focus on the strategic repositioning of Banco
Ford's operations and expectation of lower sales volumes going
forward, which could have material effect on its profitability.
Banco Ford's ba2 adjusted BCA reflects Moody's views of
better-than-peers' asset quality, solid capitalization and lean
operating structure that has supported profitability, despite its
expensive, confidence-sensitive funding and weak liquidity
profile.

Moody's acknowledges the bank's operating efficiency, with a low
cost to income ratio of 33% over the past five years. However,
operational adjustments will be necessary to support profitability
under a scenario of low business volume and continuing low interest
rates. With revenues already limited by its monoline business
model, higher funding and credit costs also weighed on the bank's
earnings, reflecting the effects of the pandemic on business
volumes. As of Q3, Banco Ford's net income to tangible banking
assets had declined to 1.6%, from a 2.1% average between 2015 and
2019.

Moody's also notes Banco Ford's predominantly short-term and
inherently low-risk and collateralized floor plan finance business
and its adequate risk management, both supporting strong asset
quality, with very limited problem loans. In addition, high loan
loss reserves and robust capitalization provide ample coverage to
problem loans. The bank's capitalization ratio, measured by Moody's
as tangible common equity (TCE) relative to risk weighted assets
(RWA), has been above 15% over the past four years, despite sizable
dividend distribution. Similar to rated peers', the bank's
wholesale and confidence-sensitive funding base remains a key
rating constraint, together with low liquidity. Banco Ford does not
rely on funding lines from related parties, but it counts with a
contingent liquidity line made available by its parent company,
whenever necessary.

During the review period, Moody's will assess Banco Ford's ability
and timing needed to right-size its balance sheet, including its
loan book and funding arrangements, as well as capital adequacy.
During 2020, the bank issued more than BRL 300 million deposits
guaranteed by the Brazilian deposit insurance corporation, with
maturities in Q2 2021 and Q3 2021.

Banco Ford's Ba2 local currency deposit rating and ba2 adjusted BCA
incorporate one-notch of uplift from its BCA of ba3 to reflect
Moody's assessment of a very high likelihood of support from its
parent, FMCC, based on the strategic focus shared between the
parent and the bank.

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

The review for downgrade indicates that rating upgrades are
unlikely over the next 12-18 months.

A material decline in asset quality and profitability beyond
Moody's expectations could put pressure on the bank's ratings. A
significant decline in the bank's capitalization could also lead to
lower stand-alone credit profile for Banco Ford.

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

Banco Ford is indirectly owned by Ford Motor Credit Company LLC
(USA), which, on its turn, is 100% controlled by Ford Motor Company
(USA). Banco Ford has a mono-line operation that is closely tied to
the volume of cars sold by Ford in Brazil. The bank's core business
is to provide floor plan financing to authorized Ford car dealers
for the acquisition of new vehicles from the automaker.
Headquartered in Sao Paulo, in November 2020, it had total assets
of BRL 840 million and equity of BRL 227 million.

LIST OF AFFECTED RATINGS AND ASSESSMENTS

The following rating assessment of Banco Ford S.A. was placed under
review for downgrade

- Baseline credit assessment placed on rating under review for
   downgrade from ba3

The following ratings and assessments were affirmed:

- Long-term global local-currency counterparty risk rating at
   Ba1

- Long-term global local -currency deposit rating at Ba2,
   negative outlook

- Long-term Brazilian national scale deposit rating at Aa3.br

- Long-term counterparty risk assessment at Ba1(cr)

- Long-term global foreign-currency counterparty risk rating at
   Ba1

- Long-term Brazilian national scale counterparty risk rating at
   Aaa.br

- Long-term global foreign-currency deposit rating at Ba2,
   negative outlook

- Short-term Brazilian Counterparty Risk Rating at BR-1

- Short-term counterparty risk assessment at NP(cr)

- Short-term global local-currency counterparty risk rating at
   NP

- Short-term global foreign-currency counterparty risk rating
   at NP

- Short-term global foreign-currency deposit rating at NP

- Short-term global local -currency deposit rating at NP

- Short-term Brazilian national scale deposit rating at BR-1

- Adjusted baseline credit assessment at ba2

- Outlook negative


BRAZIL: 2020 Mineral Production Topped 1 Billion Tons, Up 2.5%
--------------------------------------------------------------
Rio Times Online reports that by value, Brazil's mineral exports
reached US$37 billion in 2020, compared to US$33 billion in the
previous year, bolstered by strong Chinese demand for iron ore and
the depreciation of the national currency.

In 2020, iron ore contributed 66% of Brazil's total mineral
revenue, and gold 11%, according to Rio Times Online.  The country
exported 342 million tons of iron ore in 2020, compared to 340
million tons in 2019, 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, the report relays.

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.


VALE SA: Agrees to US$7 Billion for Brumadinho Dam Disaster
-----------------------------------------------------------
James Attwood at Bloomberg News reports that Vale SA reached a
settlement agreement with Brazilian authorities for a dam collapse
that killed 270 people and led to production cutbacks that stripped
the company of the title of world's biggest iron ore producer.

The deal comes two years after the Brumadinho disaster, giving
affected communities a clear framework for compensation and
reparations and removing a considerable legal overhang for Vale,
the report relays.  Its shares were little changed in Sao Paulo.

Vale will pay 37.7 billion reais ($7.03 billion) including cash
payments to affected people and investments in environmental
projects, the Rio de Janeiro-based company said in a statement,
Bloomberg relays.  Vale estimates it will book an additional
expense of 19.8 billion reais in 2020 results.

"This is the largest reparation agreement ever signed in Latin
America in financial terms and with the participation of the
state," and one of the largest in the world, Minas Gerais said in a
statement.

The two sides come together after Vale initially presented a value
of about 21 billion reais, while Minas Gerais outlined 28 billion
reais in material damages plus 26 billion reais in moral damages,
Bloomberg News relates.

Vale said about 8,900 people are already parties of civil or labor
indemnification agreements, while more than 100,000 have received
emergency aid totaling 1.8 billion reais, the report adds.

With Vale benefiting from high iron ore prices, the Brumadinho
settlement isn't expected to jeopardize any of its investment
plans, according to Ativa Investimentos, Bloomberg News cites.
Iron ore futures climbed 73% last year on strong Chinese demand,
according to the report.

The agreement is about two thirds of the amount initially sought by
the courts, "which corroborates a positive negotiation for Vale,"
Ativa analyst Ilan Arbetman said, Bloomberg News points out.  "In
addition, its adjusted net debt allows it to dispose of the amounts
not provisioned without further complications."

Vale S.A. is a Brazilian multinational corporation engaged in
metals and mining and one of the largest logistics operators in
Brazil.




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

DOMINICAN REPUBLIC: Crews Recoup Deepest Dominican River
--------------------------------------------------------
Dominican Today reports that the dams and canals agency (INDRHI)
said it began work to rehabilitate irrigation systems in the Bajo
Yuna river, with the intervention of the Ponton lagoon, in Villa
Riva, Duarte province (northeast).

In that area, silt is extracted with machinery and crews to
increase its storage capacity and guarantee irrigation of hundreds
of hectares currently planted with rice, according to a statement
from Olmedo Caba, executive director, according to Dominican
Today.

"The works respond to a national adaptation program and the agency
coordinates the implementation of other actions required decades
ago by irrigation users in the area," the report notes.

                     About Dominican Republic

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

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

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

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

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

Moody's credit rating for Dominican Republic was last set at Ba3
with stable outlook (July 2017). Fitch's credit rating for
Dominican Republic was last reported at BB- with negative outlook
(May 8, 2020).




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E L   S A L V A D O R
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EL SALVADOR: Moody's Confirms B3 LT Issuer Rating, Outlook Negative
-------------------------------------------------------------------
Moody's Investors Service has confirmed the Government of El
Salvador's long-term issuer and senior unsecured ratings at B3.
Moody's also changed the outlook to negative. This concludes the
review for downgrade that was initiated on November 16, 2020.

While financing conditions will remain very tight in both the
domestic and external markets this year and next, Moody's expects
the government to begin consolidating its finances in the second
half of this year, which would catalyze access to multilateral debt
financing to cover most of its funding needs this year, lowering
the likelihood of a credit event in the next two years.

The negative outlook captures the credit risks associated with
implementation risks of their forthcoming fiscal adjustment
efforts, high liquidity risks driven by large gross financing needs
in 2021-23 and persistent debt sustainability concerns despite an
expected fiscal adjustment. Even though Moody's believes the
government will begin consolidating its finances this year and
through 2022, debt is unlikely to stabilize, surpassing 90% of GDP,
and market access will be needed in 2022 as an $800 million bond
matures in January 2023.

The foreign-currency (FC) country ceiling remains unchanged at B1,
maintaining the existing gap between the sovereign rating and the
FC ceiling. The two-notch gap reflects the deteriorating
predictability of institutions and government actions, weak policy
effectiveness and the relatively large share of the country's
external debt being government debt.

Moody's does not assign local currency (LC) country ceilings for El
Salvador because the country is fully dollarized. However, Moody's
uses the considerations for the LC ceiling to assign the FC
ceiling.

RATINGS RATIONALE

RATIONALE FOR CONFIRMING EL SALVADOR'S B3 RATINGS

Based on the current administration's track record in fiscal
management and the size of the adjustment required, Moody's
believes it will be unlikely for the government to implement the
kind of revenue and expenditure measures needed to stabilize the
debt metrics by 2023. However, Moody's considers the government
will begin fiscal consolidation efforts this year, narrowing the
fiscal deficit over a two-year period to at least 6.5% of GDP in
2022 from 9.6% of GDP in 2020. The government's stated commitment
to begin consolidating its finances would catalyze multilateral
financing in amounts sufficient to cover El Salvador's funding
needs this year and contribute to reduce debt sustainability
concerns. Moody's thinks a combined fiscal adjustment of at least 3
percentage points of GDP would also facilitate access to global
markets in 2022, which would be crucial as an $800 million global
bond is due on January 24, 2023.

On December 24, El Salvador's legislative assembly approved the
2021 budget, lowering the budget for several ministries but also
incorporating important spending increases in education, health and
defense, amounting to 2.9% of GDP. While the approved budget
initially entailed an 8.8% of GDP deficit, Moody's forecasts the
deficit will decline to 7.5% of GDP in 2021, above the government'
expectation for the year, which is 6.5% of GDP. Still, a fiscal
deficit between 6.5% and 7.5% of GDP in 2021 will remain high and
more than double the size of the deficit El Salvador posted between
2015-19 (3% of GDP).

To cover financing needs in 2021, which Moody's estimates at 16.6%
of GDP, the government has indicated its intention to rollover most
of the short-term domestic debt and contract multilateral debt. The
government has identified $1.68 billion (6.4% of GDP) in potential
additional multilateral financing which, in addition to $498
million (1.9% of GDP) that the government has already contracted
for the year, would leave the government's funding gap at $140
million (0.5% of GDP) for this year, according to Moody's
estimates, a relatively modest amount that the rating agency
considers the government should be able to fund.

RATIONALE FOR THE NEGATIVE OUTLOOK

The negative outlook captures the credit risks associated with
implementation risks of the authorities' fiscal adjustment efforts,
liquidity risks derived from El Salvador's large gross financing
needs in 2021-23, and persistent debt sustainability concerns
despite an expected fiscal adjustment.

In addition to political willingness to begin consolidating its
finances, political support from the legislative assembly will also
be required for the government to carry out a fiscal adjustment,
particularly for efforts that involve changes to the government's
revenue and expenditure structures.

Liquidity risks will remain high in 2022 and 2023 as Moody's
expects gross financing needs to remain between 16%-18% of GDP,
even after the rating agency forecasts a narrower primary deficit
of 1.5% of GDP in both years from 2.6% of GDP in 2021, given
continued reliance on short-term debt and an interest burden of 5%
of GDP. Short-term domestic debt will represent 50% of the funding
sources the government has identified to cover this years' funding
gap.

The conditions at which El Salvador can access global markets have
deteriorated sharply with sovereign spreads at around 700 basis
points in January 2021, rising by around 300 basis points from last
year. High spreads reflect increased investor concerns about tight
financing conditions, the government's policy response and the
implications this could have on debt sustainability.

In addition, El Salvador's ability to rely on local funding has
narrowed as a significant increase in short-term debt has driven
the domestic market's absorption capacity to its limit. Even though
local banks may be willing to increase their exposure to short-term
debt, in the form of Letras del Tesoro (LETES) or Certificados del
Tesoro (CETES), Moody's thinks they will not be able to materially
increase their holdings by much more. Local banks would need
approval from their parent companies to further increase their
exposure to government debt and LETES have already reached a record
level of $1.41 billion, shy of the official limit approved in the
2021 budget, and substantially above the $800-$900 million observed
pre-pandemic.

Debt sustainability concerns persist even though Moody's believes
the government will begin consolidating its finances this year and
through 2022. Given the higher interest burden, not even a
larger-than-expected fiscal adjustment and a return to a primary
surplus of 1% of GDP (registered between 2017-19) would be
sufficient to stabilize the debt metric, which Moody's estimates
will surpass 90% of GDP in 2022. Market access will be needed next
year as an $800 million bond matures in January 2023. Improving the
government's debt structure to reduce liquidity risks and improve
debt affordability requires legislative support, since a two-third
majority in the legislative assembly is needed to issue long-term
debt in order to retire existing short-term debt.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS

Moody's takes account of the impact of environmental (E), social
(S) and governance (G) factors when assessing sovereign issuers'
economic, institutional and fiscal strength and their
susceptibility to event risk.

In the case of El Salvador, the materiality of ESG to the credit
profile is as follows: El Salvador's ESG Credit Impact Score is
highly negative (CIS-4), reflecting high exposure to environmental
risk, and a moderately negative governance issuer profile score
with limited financial resilience.

El Salvador's exposure to environmental risks is highly negative
(E-4 issuer profile score), related to physical climate change and
limited natural capital. The rise in the frequency and severity of
tropical storms and other climate-related shocks poses a threat to
the country's agriculture sector, which employs 21% of the
country's population. Extreme weather events can significantly
influence El Salvador's key credit metrics, such as GDP growth
volatility, household incomes and agricultural export earnings.

Exposure to social risks is also highly negative (S-4 issuer
profile score). Although it has notably declined since 2019, El
Salvador's homicide rate has historically been high. While
remittances from El Salvadorans living abroad support about 20% of
economic activity, which boosts consumption, high levels of
violence and insecurity stunt the country's investment levels,
productivity and long-term growth potential. Moody's also regards
the coronavirus outbreak as a social risk under its ESG framework,
given the substantial implications for public health and safety.

The influence of governance on El Salvador's credit profile is
highly negative (G-4 issuer profile score) reflecting its weak
government effectiveness, rule of law, security challenges and a
history of political confrontation between the executive and
legislative branches that frequently prevent progress on needed
reforms to address economic and fiscal challenges.

GDP per capita (PPP basis, US$): 9,147 (2019 Actual) (also known as
Per Capita Income)

Real GDP growth (% change): 2.4% (2019 Actual) (also known as GDP
Growth)

Inflation Rate (CPI, % change Dec/Dec): 0% (2019 Actual)

Gen. Gov. Financial Balance/GDP: -3.1% (2019 Actual) (also known as
Fiscal Balance)

Current Account Balance/GDP: -2.1% (2019 Actual) (also known as
External Balance)

External debt/GDP: 64.4% (2019 Actual)

Economic resiliency: b1

Default history: No default events (on bonds or loans) have been
recorded since 1983.

On February 3, 2021, a rating committee was called to discuss the
rating of the El Salvador, Government of. The main points raised
during the discussion were: The issuer has become increasingly
susceptible to event risks. Other views raised included: The
issuer's economic fundamentals, including its economic strength,
have not materially changed. The issuer's institutions and
governance strength, have not materially changed. The issuer's
fiscal or financial strength, including its debt profile, has
materially decreased.

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

While upward pressure on the B3 rating is unlikely at this time
given the negative outlook, a material reduction in debt
sustainability concerns and government liquidity risks would be
supportive to the credit profile and could lead to a return to
stable outlook. A fiscal adjustment beginning this year that
materially reduces the fiscal deficit and gradually returns it to
pre-pandemic levels would support the return to stable. A reduction
in government liquidity risks could stem from a credible fiscal and
economic policy response that would efficiently manage short- and
medium-term risks arising from rising gross financing needs and
limited funding sources. In particular, an improvement in the debt
structure, reducing the heavy reliance on expensive short-term
debt, would also be positive to the credit.

Downward pressure on El Salvador's B3 ratings would emerge if
Moody's no longer expected material fiscal adjustment to be
forthcoming this year and if the rating agency had concerns related
to the government's ability to access multilateral financing. Such
a change in Moody's view would occur if the authorities were
unwilling or unable to implement a fiscal adjustment of at least 3
percentage points of GDP by 2022, narrowing the fiscal deficit to
around 6.5% of GDP in 2022 from 9.6% of GDP in 2020, or if
financing conditions in domestic and external markets became even
more stringent than what Moody's assumes in its baseline. Further
escalation of financial stress related to LETES would raise the
credit risks related to the government's long-term debt. Political
confrontations between the executive and the legislative branches
that constrained the government's access to long-term financing,
potentially compromising the refinancing of upcoming debt
maturities, would also negatively affect the rating.

The principal methodology used in these ratings was Sovereign
Ratings Methodology published in November 2019.



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P U E R T O   R I C O
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ASCENA RETAIL: Simon Property Blasts Stores Closures in Plan
------------------------------------------------------------
Daniel Gill of Bloomberg Law reports that Simon Property Group
Inc., one of the largest U.S. mall operators, is opposing Ascena
Retail Group Inc.'s Chapter 11 reorganization plan, arguing that a
buyer of Ann Taylor and other Ascena brands hasn't fully assured
the landlord that it will pay rent.

Bankruptcy law entitles shopping center operators to demand a
heightened showing from a buyer of bankrupt businesses that it will
continue to pay real estate leases assumed in the transaction,
Simon said in a court filing with the U.S Bankruptcy Court for the
Eastern District of Virginia February 3, 2021.

On Dec. 30, 2020, the Debtors filed the Plan.  The Plan, as
amended, includes modifications to reflect the consummation of the
Sale, provided that the Sale closes on or before the Effective
Date.  Article V.B. of the Plan provides that if the Sale is
consummated before the Effective Date, all executory contracts and
unexpired leases not previously assumed, assumed and assigned, or
rejected are deemed rejected unless they are the subject of a
pending assumption motion.  The hearing regarding confirmation of
the Plan is scheduled for Feb. 25, 2021, at 1:00 p.m. (New York
time).

On Jan. 25, 2021, the Debtors filed a Notice of Filing of
Additional Store Closing List, which was subsequently amended (the
"Store Closing Notice"), pursuant to the Store Closing Order, which
provided for the closure of 160 of the stores subject to the Leases
with the Simon Landlords (the "Noticed Leases").  On Feb. 3, 2021,
the Debtors filed a Notice of Rejection of Certain Executory
Contracts and/or Unexpired Leases (the "Rejection Notice"), which
proposed the rejection of 10 of the Noticed Leases.  The Store
Closing Notice was a significant departure from the Master
Agreement negotiated less than three months prior, which promised
to retain all of the 226 stores, and close none.  Although the
Store Closing Notice is silent as to the ultimate treatment of the
remaining 66 store Leases (the "Remaining Leases"), nearly half of
them have either already expired (and are thus not capable of
assumption or assumption and assignment) or will expire within the
next twelve months.  With no assurance they will be renewed,
additional store closures are likely.

"[T]he Purchaser has laid bare its intention to significantly
reduce the business' physical store presence in the near term.  The
result will be a significantly less creditworthy lessee than the
entity with which the Simon Landlords originally contracted.  The
Purchaser's significantly reduced store footprint and mix of
remaining stores not only will diminish the profitability of its
brick-and-mortar business, but also will hurt its e-commerce
business, as a strong physical presence drives e-commerce sales and
profitability as well. The Simon Landlords' concern is supported by
a depth of experience as the largest shopping  center operator in
the United States, as well as its own experience owning and
operating retailers across the United States, including iconic
retailers like J.C. Penney, Brooks Brothers, Lucky Brand, Forever
21, and Aeropostale," Simon Property Group said in court filings.

                   About Ascena Retail Group

Ascena Retail Group, Inc. (Nasdaq: ASNA) is a national specialty
retailer offering apparel, shoes, and accessories for women under
the Premium Fashion (Ann Taylor, LOFT, and Lou & Grey), Plus
Fashion (Lane Bryant, Catherines and Cacique), and Value Fashion
(Dressbarn) segments, and for tween girls under the Kids Fashion
segment (Justice). Ascena, through its retail brands, operates
ecommerce websites and approximately 2,800 stores throughout the
United States, Canada, and Puerto Rico.  Visit
http://www.ascenaretail.com/for more information.

Ascena Retail reported a net loss of $661.4 million for the fiscal
year ended Aug. 3, 2019, a net loss of $39.7 million for the year
ended Aug. 4, 2018, and a net loss of $1.06 billion for the year
ended July 29, 2017.

On July 23, 2020, Ascena Retail Group and its affiliates sought
Chapter 11 protection (Bankr. E.D. Va. Case No. 20-33113).  As of
Feb. 1, 2020, Ascena Retail had $13,690,710,379 in assets and
$12,516,261,149 in total liabilities.

The Hon. Kevin R. Huennekens is the case judge.

The Debtors tapped Kirkland & Ellis LLP and Cooley LLP as
bankruptcy counsel, Guggenheim Securities, LLC, as financial
Advisor, and Alvarez and Marsal North America, LLC as restructuring
advisor.  Prime Clerk, LLC, is the claims agent.

                            *   *   *

In September 2020, FullBeauty Brands Operations, LLC, won an
auction to acquire Ascena's Catherines intellectual property assets
for a base purchase price of $40.8 million and potential upward
adjustment for certain inventory.

In November 2020, Ascena won approval to sell the intellectual
property of its Justice Brand and other Justice brand assets to
Justice Brand Holdings LLC, an entity formed by Bluestar Alliance
LLC (a leading brand management company), for $90 million.

The Company continues to operate its Ann Taylor, LOFT, Lane Bryant,
and Lou & Grey brands as normal through a reduced number of retail
stores and online.



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