/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/210218.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Thursday, February 18, 2021, Vol. 22, No. 30 Headlines B E R M U D A BERMUDA: Inflation Rate is Negative for Fourth Consecutive Month B R A Z I L BANCO ABC: Moody's Completes Review, Retains Ba2 Deposit Rating BANCO ALFA: Moody's Completes Review, Retains Ba2 Deposit Ratings BANCO BOCOM: Moody's Completes Review, Retains Ba1 Deposit Ratings BANCO BRADESCO: Moody's Completes Review, Retains Ba2 Rating BANCO BTG: Moody's Completes Review, Retains Ba2 Deposit Ratings BANCO DO BRASIL: Moody's Completes Review, Retains Ba2 Rating BANCO NACIONAL: Moody's Completes Review, Retains Ba2 Rating BANCO SANTANDER: Moody's Completes Review, Retains Ba1 Rating BANPARA: Moody's Completes Review, Retains Ba2 Deposit Rating BRAZIL: Inflation Projection Rises for Fifth Consecutive Week BRAZIL: Sao Paulo Real Estate Launches Down 8% in 2020 ITAU UNIBANCO: Moody's Completes Review, Retains Ba2 Rating PETROBRAS: Fitch Affirms 'BB-' LongTerm IDRs, Outlook Negative G U A T E M A L A BANCO INDUSTRIAL: Moody's Completes Review, Retains Ba1 Rating J A M A I C A CARIBBEAN PRODUCERS: Losses in Shareholders' Returns M E X I C O ALPEK SAB: S&P Rates New $600MM Unsecured Notes Due 2031 'BB+' P A R A G U A Y AGENCIA FINANCIERA: Moody's Completes Review, Retains Ba1 Rating BANCO REGIONAL: Moody's Completes Review, Retains Ba2 Rating P U E R T O R I C O MMM HOLDINGS: Moody's Puts B1 CFR on Review for Upgrade NOSCE TE IPSUM: Seeks to Hire Charles A. Cuprill as Counsel T R I N I D A D A N D T O B A G O TRINIDAD & TOBAGO: Has Uphill Struggle in Agro-Processing - - - - - ============= B E R M U D A ============= BERMUDA: Inflation Rate is Negative for Fourth Consecutive Month ---------------------------------------------------------------- Duncan Hall at royalgazette.com reports that Bermuda's annual inflation rate remained negative for the fourth consecutive month in October at -0.2 per cent. In July 2020, the island recorded its first negative inflation rate since 1965, according to royalgazette.com. Consumers paid 0.2 per cent less for a basket of goods and services included in the Consumer Price Index in October, than they did in the same month in 2019, the report relays. Between September and October, the average cost of goods and services in the CPI increased 0.3 per cent, the report notes. The all-items index rose from 105.4 to 105.7 in October, the report discloses. This means that the basket of goods and services that cost $100 in April 2015 now costs $105.70, the report says. Rent rose 1.2 per cent for the month, the report relays. The overall increase in this sector was a direct result of a 2.6 per cent rise in the average cost of rental units not subject to rent control, the report notes. The average cost of items in the household goods, service and supplies sector increased by 0.3 per cent, the report discloses. Within the household goods sub-sector, living room and bedroom furniture prices advanced 10.3 per cent and 5.7 per cent, respectively, the report says. Prices in the clothing and footwear sector edged up 0.2 per cent in October. The average cost of watches and jewellery increased 7.7 per cent and 3.2 per cent, respectively, the report relays. On average, food prices rose 0.1 per cent in the month. Among the main items contributing to the increase were fresh and frozen spare ribs, the cost of which was up 8.6 per cent, while the cost of roast beef increased by 6.8 per cent and the price of imported lettuce rose 4.2 per cent, the report notes. The education, recreation, entertainment and reading sector climbed 0.1 per cent. The average cost of pet food rose 0.8 per cent. The transport and foreign travel sector moved up 0.1 per cent in October, but declined by 5.9 per cent compared to October, 2019, the report says. The average cost of premium fuels and mixed fuels rose 1.8 per cent, and 1.7 per cent, respectively, but also fell on an annual basis, the report notes. The tobacco and liquor sector declined 0.6 per cent in response to a 2.1 per cent decrease in the average price of wines, the report discloses. There was no price movement in the fuel and power sector, while the health and personal care sector was static for the month, the report says. Wayne Furbert, Minister for the Cabinet Office, said: "The transport and foreign travel sector was the largest contributor to the 12-month decrease in the CPI at -5.9 per cent, the report relates. The rent and fuel and power sectors also impacted strongly on the annual rate of inflation as price reductions in these sectors were 2.2 per cent and 1.5 per cent, respectively," the report notes. Data was compiled by the Bermuda Government Department of Statistics, the report adds. =========== B R A Z I L =========== BANCO ABC: Moody's Completes Review, Retains Ba2 Deposit Rating --------------------------------------------------------------- Moody's Investors Service has completed a periodic review of the ratings of Banco ABC Brasil S.A. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review discussion held on February 10, 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 Banco ABC Brasil (BAB), a subsidiary of Arab Banking Corporation, has a Ba2 long-term global local currency deposit rating that incorporates the bank's baseline credit assessment of ba2. BAB's Ba2 deposit rating is currently at the same level of Brazil's Ba2 sovereign bond rating. BAB's ba2 BCA reflects the bank's traditional wholesale operation and strong financial fundamentals that derive from consistent earnings generation, disciplined asset quality metrics and good capital position, supported by dividend reinvestments. The bank's BCA also incorporates the main challenges related to its institutional funding structure and the competitive nature of its core markets. BAB's profitability profile also reflects an important share of fee-based activities related to its investment banking platform and non-interest earnings that BAB originates out of a sizable portfolio of off-balance guarantees, which contributes to revenues stability. The principal methodology used for this review was Banks Methodology published in November 2019. BANCO ALFA: Moody's Completes Review, Retains Ba2 Deposit Ratings ----------------------------------------------------------------- Moody's Investors Service has completed a periodic review of the ratings of Banco Alfa de Investimento S.A. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review discussion held on February 10, 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 Banco Alfa de Investimento's (Alfa) Ba2 long-term local and foreign currency deposit ratings reflect the bank's baseline credit assessment (BCA) of ba2. Alfa's Ba2 deposit rating is currently constrained by Brazil's Ba2 sovereign bond rating. Alfa's ba2 BCA reflects the bank's consistent and robust financial metrics, in particular its strong asset quality, capital and liquidity. Alfa maintains a well-defined target market, and its conservative loan underwriting standards ensure consistently low delinquencies. Nevertheless, Alfa reports above-average single borrower concentration relative to its capital, which introduces some degree of asset risk to its credit profile. Alfa also maintains a conservative capital base, with a ratio of tangible common equity to risk weighted asset that is consistently high. Alfa's BCA is constrained by modest profitability metrics compared to those of peers, reflecting the bank's large share of liquid assets and its predominantly low risk, low yield loan book. The bank's reliance on wholesale funding also caps the ba2 BCA. Alfa, however, has sought to diversify its funding mix and lengthen its funding tenor. The principal methodology used for this review was Banks Methodology published in November 2019. BANCO BOCOM: Moody's Completes Review, Retains Ba1 Deposit Ratings ------------------------------------------------------------------ Moody's Investors Service has completed a periodic review of the ratings of Banco BOCOM BBM S.A. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review discussion held on February 10, 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 Banco BOCOM BBM's (BOCOM BBM) Ba1 long-term local and foreign currency deposit ratings reflect the bank's baseline credit assessment of ba2 and a one-notch uplift derived from our assessment of high affiliate support from its controlling entity, Bank of Communications Co., Ltd (BoCom, A2, baa3). BOCOM BBM's ba2 BCA reflects the good quality of the bank's loan book, evidenced by asset risk metrics that have remained consistently low in recent years and consistent profitability metrics, which reflect management's diligent control over operating expenses and conservative standards for credit origination. The ba2 BCA also incorporates the bank's large volume of liquid assets. Conversely, the BCA is constrained by the bank's high reliance on market funds; although the bank has strived to reach higher diversification of its funding mix, including debt issued domestically and deposit-like instruments. The principal methodology used for this review was Banks Methodology published in November 2019. BANCO BRADESCO: Moody's Completes Review, Retains Ba2 Rating ------------------------------------------------------------ Moody's Investors Service has completed a periodic review of the ratings of Banco Bradesco S.A. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review discussion held on February 10, 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 Banco Bradesco's (Bradesco) Ba2 long-term global local currency deposit rating incorporates the bank's baseline credit assessment of ba2 and the assessment of very high support from the government, in case of need, because of the bank's high systemic importance. Bradesco's ba2 BCA reflects its solid business franchise in Brazil, with highly diversified businesses that support the strength and stability of the bank's earnings. Bradesco has a leading operation in the insurance segment, which contributes 30% of profits, and a strong participation in the credit card and asset management segments. Its asset quality has continued to improve although it still lags the industry's average, reflecting its loan mix and large relative exposure to commercial lending. The bank has a conservative risk profile and maintains high loan loss reserves to cover unexpected losses. The BCA is also bolstered by Bradesco's solid share of core customer deposits in Brazil and its ample access to local and international institutional resources. Adequate capital levels continue to improve, supported by Bradesco's strong and consistent internal earnings generation. The principal methodology used for this review was Banks Methodology published in November 2019. BANCO BTG: Moody's Completes Review, Retains Ba2 Deposit Ratings ---------------------------------------------------------------- Moody's Investors Service has completed a periodic review of the ratings of Banco BTG Pactual S.A. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review discussion held on February 10, 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 Banco BTG Pactual's (BTG) Ba2 long-term global local and foreign currency deposit ratings incorporate the bank's baseline credit assessment of ba2. The bank's ba2 BCA is at the same level of Brazil's sovereign debt rating of Ba2. BTG's ba2 BCA reflects the bank's strengthened business profile, with a focus on earnings stability generated from lending and asset and wealth management. At the same time, BTG remains one of the leading investment banking franchises in Brazil, with revenues from that segment representing the main share of the bank's total revenues. BTG has a strong capital position and good liquidity structure to support its loan growth strategy, along with a less complex organizational structure following the divestment of several merchant banking operations. The BCA also incorporates the challenge related to the bank's institutional funding profile; although BTG has focused on increasing diversification and the term structure of liabilities over the past few years. The principal methodology used for this review was Banks Methodology published in November 2019. BANCO DO BRASIL: Moody's Completes Review, Retains Ba2 Rating ------------------------------------------------------------- Moody's Investors Service has completed a periodic review of the ratings of Banco do Brasil S.A. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review discussion held on February 10, 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 Banco do Brasil's (BB) Ba2 long-term local and foreign currency deposit ratings reflect the bank's baseline credit assessment of ba2 and Moody's assessment that, as a government-backed institution, BB would enjoy very high support from the government, in a situation of stress. However, the bank's ratings receive no uplift from government support because its ba2 BCA is positioned at the same level as Brazil's sovereign rating. BB's ba2 BCA reflects the bank's steady generation of recurring revenues, reflecting a diversified business mix and the good quality of its loan portfolio, with asset quality metrics that have outperformed the system's average consistently in the past years. At the same time, the BCA is supported by BB's ample access to core deposits, as a result of its nationwide branch network, and as a recipient of government funds and judicial deposits, while liquidity is adequate. BB's capital position has benefited from reinvestment of earnings, lifting capitalization from low levels reported more than five years ago. The principal methodology used for this review was Banks Methodology published in November 2019. BANCO NACIONAL: Moody's Completes Review, Retains Ba2 Rating ------------------------------------------------------------ Moody's Investors Service has completed a periodic review of the ratings of Banco Nac. Desenv. Economico e Social - BNDES and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review discussion held on February 10, 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 Banco Nacional de Desenvolvimento Economico e Social's (BNDES) Ba2 deposit rating derives from its ba2 baseline credit assessment (BCA). The rating incorporates Moody's assessment of very high probability of support from the government of Brazil (Ba2), its sole shareholder. However, the bank's rating does not benefit from support uplift because its ba2 BCA is positioned at the same level as Brazil's sovereign rating. BNDES's ba2 BCA reflects its dominant and important position as provider of long-term infrastructure financing, together with its role in advising and structuring government projects related to privatizations and concessions. At the same time, the BCA is supported by the bank's adequate financial metrics, with good capitalization, better-than-market average asset risk and large volume of liquid assets. The principal methodology used for this review was Banks Methodology published in November 2019. BANCO SANTANDER: Moody's Completes Review, Retains Ba1 Rating ------------------------------------------------------------- Moody's Investors Service has completed a periodic review of the ratings of Banco Santander (Brasil) S.A. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review discussion held on February 10, 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 Banco Santander (Brasil) S.A.'s (SANB) Ba1 long-term global local currency deposit rating reflects its ba2 Baseline Credit Assessment and Moody's assessment of moderate probability of support from its parent Banco Santander S.A. (Spain) (A2, baa1). SANB's Ba1 deposit rating also considers a high probability that the bank would receive government support, in case of need, because of its systemic importance. The bank's ba2 BCA is at the same level of Brazil's sovereign debt rating of Ba2. SANB's ba2 BCA reflects the bank's sound business franchise in Brazil, with a highly diversified business profile that supports the strength and stability of its earnings. The bank's expansion strategy has improved the generation of sustainable earnings, which are also supported by strong cost control, increasing fee income and loan growth ahead of the system's. This strategy enhances SANB's competitive position, particularly in core consumer banking segments such as auto finance and credit cards. The BCA reflects the consistent improvement in profitability and asset quality, with metrics coming close to those of other large banks in Brazil. The bank's primary credit challenge remains its capitalization, which has been below its historical average. The principal methodology used for this review was Banks Methodology published in November 2019. BANPARA: Moody's Completes Review, Retains Ba2 Deposit Rating ------------------------------------------------------------- Moody's Investors Service has completed a periodic review of the ratings of Banco do Estado do Para S.A. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review discussion held on February 10, 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. Banco do Estado do Para's (Banpara) Ba2 long-term local currency deposit rating reflects the bank's baseline credit assessment of ba2, which is also at the level of Brazil's sovereign debt rating. Banpara's ba2 BCA incorporates its consistently sound financial fundamentals, including high capitalization, strong earnings generation as well as superior asset quality metrics. Banpara's well-established operation in the state of Para are primarily focused on low-risk secured payroll lending to civil servants of the state government of Para, which represents the large majority of its gross loans. The BCA also reflects the banks' limited business diversification and its constrained footprint, which challenges its competitive position in a market also targeted by the large Brazilian banks. Banpara is funded by a sticky and low-cost core deposit base, an important contributor to its high margined business. The principal methodology used for this review was Banks Methodology published in November 2019. BRAZIL: Inflation Projection Rises for Fifth Consecutive Week ------------------------------------------------------------- Rio Times Online reports that Brazil's central bank weekly FOCUS survey of some 100 economists and financial institutions indicated that the outlook for inflation in the country rose for the fifth consecutive week at the week of February 11, and is getting closer to the bank's target for the year. The average forecast for IPCA consumer price inflation at the end of the year (2021) rose to 3.60% from 3.50% the week before, according to the latest weekly 'FOCUS' survey, according to Rio Times Online. That's the highest since last March, and close to the central bank's end-year goal of 3.75%, 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: Sao Paulo Real Estate Launches Down 8% in 2020 ------------------------------------------------------ Rio Times Online reports that amid the novel coronavirus pandemic, the city of Sao Paulo saw new real estate launches drop 8% in 2020 to 60,000 units, while sales rose 4% to 51,400 units. The figures came from the Sao Paulo Housing Developers' Association (SECOVI-SP), released during a press conference on February 10, according to Rio Times Online. According to chief economist Celso Petrucci, developments linked to Brazil's public housing program, now called "Casa Verde e Amarela", accounted for 29,400 launches last year, while medium and high-end properties registered 16,600 launches, 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. ITAU UNIBANCO: Moody's Completes Review, Retains Ba2 Rating ----------------------------------------------------------- Moody's Investors Service has completed a periodic review of the ratings of Itau Unibanco Holding S.A. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review discussion held on February 10, 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 Itau Unibanco's Ba2 long-term global local currency deposit rating incorporates the bank's baseline credit assessment of ba2 and Moody's assessment of very high probability of support from the government, in case of need, because of the bank's systemic importance. Itau Unibanco Holding (IUH), the controlling shareholder of the bank, has an issuer rating of Ba3 and a foreign currency senior unsecured debt rating of Ba3. IUH's issuer rating is one notch off its operating bank's Ba2 deposit rating, considering the structural subordination of the bank holding's obligations to the obligations of the operating bank. Moody's also assign an issuer rating of Ba3 to Itausa -- Investimentos Itau S.A., which is one notch below Itau Unibanco's deposit rating of Ba2. This notching incorporates the structural subordination of Itausa's debt obligations to the bank's. Itau's ba2 BCA reflects the bank's leading position in the Brazilian financial system and its broad business diversification, including an international footprint in retail banking in other Latin American countries that provides strong and stable earnings recurrence. Asset quality is good, based on a disciplined risk management, and is historically close to the industry's average. The BCA is also bolstered by Itau's ample access to core deposits and institutional funding, both domestic and international, that supports its liquidity profile. Capital position is adequate, supported by sound internal earnings generation. The principal methodology used for this review was Banks Methodology published in November 2019. PETROBRAS: Fitch Affirms 'BB-' LongTerm IDRs, Outlook Negative -------------------------------------------------------------- Fitch Ratings has affirmed Petroleo Brasileiro S.A.'s (Petrobras) Local and Foreign Currency Long-Term Issuer Default Ratings (IDRs) and outstanding debt ratings at 'BB-'. The Rating Outlook is Negative. The National Scale rating has been affirmed at 'AA(bra)'. The Rating Outlook for the National Scale Rating is Stable. Petrobras' ratings are linked to Brazil's sovereign ratings (BB-/Negative) due to the company's strategic importance to the country and the government's strong ownership and control. Petrobras' dominant market share in the supply of liquid fuels in Brazil coupled with its large hydrocarbon production footprint in the country exposes the company to government intervention through pricing policies and investment strategies. Petrobras' ratings reflect the company's strategic importance to the country and the very strong incentives Brazil has to support the company should the need arise. Fitch considers the linkage between Petrobras and the government to be strong as a result of the government's majority ownership and control of the company, as well as the evidence of a strong support track record. The Negative Outlook for Petrobras' foreign currency and local currency Long-Term IDRs reflects the same Outlook for Brazil's sovereign rating. Petrobras' standalone credit profile (SCP) of 'bbb' reflects the company's strong capital structure, growing production trend, excluding divestitures, and declining debt levels. Between 2015 and 2020, Petrobras reduced its total financial debt by more than USD60 billion to USD57 billion as of September 2020 from USD126 billion in 2015 by using internal cash flow generation, proceeds from divestitures and cash on hand. Fitch expects Petrobras to continue deleveraging going forwards after the market downturn in 2020 caused leverage to increase marginally from 2019 levels. KEY RATING DRIVERS Sovereign Linkage: Petrobras' ratings are linked to Brazil's sovereign ratings as a result of the influence the government may have over the company's strategies and investments. This is despite material improvements in its capital structure and efforts to isolate itself from government intervention. By law, the federal government must hold at least a majority of Petrobras' voting stock and currently owns 50.5% of Petrobras' voting rights, directly and indirectly. It has a 36.8% overall economic stake. Improving SCP: Petrobras' SCP of 'bbb' reflects the company's continued improvements in its capital structure and Fitch's expectation that the company will maintain or further improve it going forward. Over the past two years, Petrobras used the proceeds from internal cash flow generation to significantly lower its financial debt (excluding leases) by approximately USD26 billion, or approximately 30% compared with YE 2018. Fitch forecasts Petrobras' leverage, as measured by gross financial debt to EBITDA, to be at approximately 2.6x in 2020. As of the LTM ended September 2020, Petrobras' gross leverage increased to approximately 2.9x from form 2.2x as of yearend 2019, yet it still remains significantly below its peak of more than 5.0x at Dec. 31, 2015. Fitch expects the company's leverage to continue trending downwards to below 2.0x over the rating horizon as international oil and gas prices stabilize. Strong Cash Flow Generation: Fitch expects Petrobras to continue reporting positive FCF over the rating horizon while investing enough to replenish reserves, which will further support its SCP. The base case scenario for Petrobras considers EBITDA and FFO reaching above USD33 billion and USD22 billion, respectively, over the next few years. During the LTM ended Sept 30, 2020, the company reported EBITDA (adjusted for leases) of USD19.0 billion, down from an average of approximately USD26 billion over the previous three years, while total financial debt decreased to USD58 billion as of September 2020 from USD126 billion as of YE 2015. During the first nine months of 2020, Petrobras reported a Fitch defined FCF of USD10.4 billion despite the decrease in international oil prices. This was primary the result of cost and capex reduction to cope with lower oil prices. The company reported a material decrease in lifting costs last year to approximately USD5.1/boe from approximately USD9.6/boe in 2019 as a result of cost reductions, increasing share of pre-salt production, which has a lower lifting cost than legacy production as well as Brazilian real depreciation. Supportive Government: Petrobras' credit quality has materially benefited from the Brazilian government's indirect support during times of distress. The government has provided liquidity through government-controlled financial institutions, changed regulations that negatively affected Petrobras' cash flow in the past and at times allowed the company to implement beneficial pricing policies. The government also allowed the company to significantly reduce downstream investments, which, together with reduction in dividends and asset sales, led Petrobras to strengthen its capital structure and improve its SCP. Fitch estimates the company will increase dividend payments in the future as its debt balance, including lease liabilities, remains below USD60 billion. Potential Political Interference: The potential return of stronger political meddling into Petrobras' strategy, noticeably through domestic gasoline and diesel prices, would negatively affect the company's cash flow generation and SCP. This is particularly relevant during times of Brazilian real depreciation against the dollar, which would increase domestic gasoline and diesel prices and heighten interference risk. In 2018, the Brazilian government established provisional measures to fix and subsidize diesel prices in order to ease mounting social pressure over volatility in fuel prices. This marginally increased the company's cash flow generation exposure to receipt of government subsidies while the program was in place until year-end 2018. These policies were not implemented in 2019 nor 2020. Marginal Production Growth: Fitch's rating case assumes Petrobras' gross production will increase, absent divestitures, to approximately 3.3 million barrels of oil equivalent a day (boe/d) in the next three to five years from annual average production of approximately 2.8 million boe/d for 2020YE. The company reported 2020YE proved reserves of 8.8 billion boe, giving the company a reserve life of approximately 8.5 years, as decrease from 9.6 years in 2019, primarily as a result of a decrease in reserves due to the lower oil price environment of 2020 couple with a marginal increase in production. Absent divestitures, production growth is expected to remain driven by the company's development of its pre-salt assets and planned capex for the next five years of more than USD55 billion, 85% of which is earmarked for the upstream business. Pre-salt represented more than 60% of Petrobras' oil and gas production during 2020 and is expected to be the primary driver for the company's production growth going forward. Petrobras' marginal production increase of 2.4% yoy between 2019 and 2020 is primarily driven by a 21% increase in pre-salt formation, mitigated by shallow water decline due to asset sales and natural production depletion in other areas. DERIVATION SUMMARY Petrobras' linkage to the sovereign is similar in nature to its peers, namely Petroleos Mexicanos (PEMEX; BB-/Stable), Ecopetrol S.A. (BBB-/Negative) and YPF S.A. (C). It also compares with Empresa Nacional del Peru (ENAP; A-/Stable), and Petroleos del Peru - Petroperu (BBB+/Negative). All have strong linkages to their respective sovereigns, given their strategic importance and the potentially significant negative social-political and financial implications a default by any of these entities could have for their countries. Petrobras' SCP is commensurate with a 'bbb' rating, which is materially higher than PEMEX's 'ccc-', as a result of Petrobras' positive deleverage trajectory compared with PEMEX's increasing leverage. Furthermore, Petrobras has reported and is expected to continue to report positive FCF and production growth, which Fitch expects to reach approximately 3.3 million boe/d in the next three to five years. In contrast, PEMEX's production has declined in recent years and requires material capex to sustain the production stabilization trend reported during since 2019. These production trajectories further support the notching differential between the two companies' SCPs. Petrobras' SCP is in line with that of Ecopetrol at 'bbb' given both companies' strong credit metrics and deleveraging trajectories. KEY ASSUMPTIONS Fitch's key assumptions within the rating case for the issuer include: -- Gross production to increase to approximately 3.3 million boe/d over the next four years; -- Eight production units come online during the next four years; -- Brent Crude trends toward USD53/bbl by 2023; -- Average FX rate trends toward BRL4.9/USD; -- Dividends payout ratio of 25% -- Future proceed from asset sales are not incorporated on Fitch's rating case. RATING SENSITIVITIES Factor that could, individually or collectively, lead to positive rating action/upgrade: -- A positive rating action on the Brazilian sovereign could lead to a positive rating action on Petrobras. Factor that could, individually or collectively, lead to negative rating action/downgrade: -- A negative rating action on Petrobras could result from a downgrade of the sovereign and/or the perception of a lower linkage between Petrobras and the government coupled with a material deterioration of Petrobras' SCP. 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 Strong Financial Flexibility: Petrobras' liquidity is robust and provides an added comfort during periods of volatility in hydrocarbon prices. The company's liquidity is supported by approximately USD13.4 billion of cash and marketable securities as of Sept. 30, 2020, compared with current financial debt maturities of approximately USD6.7 billion. The majority of Petrobras' available liquidity is composed of readily available liquidity held abroad. As of Sept 30, 2020, Petrobras had paid down the majority of its lines of credit with approximately USD8.4 billion available. Petrobras demonstrates a solid ability to access the debt capital markets to refinance debt. Long-term debt proceeds amounted to roughly USD15.9 billion, as of Sept. 30, 2020, which the company used to amortize debt. Petrobras' financial debt decreased by an estimated USD5.7 billion between 2019YE and 3Q20. As of 3Q20, the average maturity of outstanding financial debt was approximately 11.2 years and 13% of the company's debt was in Brazilian reals. PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS Petrobras' ratings are linked to the sovereign rating of Brazil. ESG CONSIDERATIONS Petrobras has an Environmental, Social and Governance (ESG) Relevance Score of '4' for Human Rights, Community Relations, Access and Affordability due to the potential impact of social pressures on pricing policy in the future, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. The company's score for Governance Structure is '4', due to its nature as a majority government-owned entity and the inherent governance risk that arises with a dominant state shareholder, 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. ================= G U A T E M A L A ================= BANCO INDUSTRIAL: Moody's Completes Review, Retains Ba1 Rating -------------------------------------------------------------- Moody's Investors Service has completed a periodic review of the ratings of Banco Industrial S.A. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review discussion held on February 9, 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 Banco Industrial S.A.'s Ba1 global local and foreign currency deposit ratings incorporate two notches of uplift from the bank's ba3 baseline credit assessment, based on Moody's assumption of very high government support. This assumption reflects the bank's important deposit franchise as Guatemala's largest deposit-taking financial institution. Banco Industrial's ba3 BCA captures the bank's historically strong asset quality, as well as robust profitability, ample liquidity, and a stable and granular funding structure. Banco Industrial's BCA is constrained by a modest capitalization, despite the improvements observed over the past years, and by Guatemala's weak operating environment. Banco Industrial's relatively high market funding aims to finance its long-term credit portfolio, as well as its US dollar lending. The latter is partially mitigated by substantial holdings of liquid assets, in both local and foreign currency. The principal methodology used for this review was Banks Methodology published in November 2019. ============= J A M A I C A ============= CARIBBEAN PRODUCERS: Losses in Shareholders' Returns ---------------------------------------------------- Jamaica Observer reports that shareholders in Caribbean Producers Jamaica (CPJ) are counting their losses, as the food service distributor chalked up net losses attributable to shareholders of US$2.69 million (approximately $377 million) for the six months ended December 31, 2020. These losses reversed the profit of US$524,171 made during the same period in 2019, according to Jamaica Observer. For the December 2020 quarter, the net loss attributable to shareholders amounted to US$837,492 relative to a net profit of US$782,372 booked in 2019, the report notes. Net loss for the six months amounted to $2.79 million relative to a profit of $518,627 in 2019, while for the quarter net loss amounted to $850,371 relative to a net profit $836,023 booked in 2019, the report relays. These losses include depreciation charges of US$1.51 million, International Financial Reporting System (IFRS) 9 & 16 adjustments of US$616,000, and staff restructuring costs of US$293,000, the report notes. CPJ, which is based on Montego Bay and mostly sells consumable products to the hospitality industry, booked a loss before finance costs, income and taxation of US$1.91 million relative to a profit of US$1.87 million in 2019, the report discloses. Loss In Shareholder Value at CPJ As a result, shareholders in CPJ, recognized nationally as a leading food, non-food, wines and spirits distributor for major internationally renowned brands, experienced a loss in value of their shares, the report notes. The loss per share (LPS) for the six months amounted to US$0.24 cents compared to an earnings per share (EPS) of US$0.05 cents in 2019, the report relays. LPS for the quarter amounted to US$0.08 cents relative to EPS of US$0.08 cents 12 months prior, the report relates. The 12 months trailing loss per share amounted to US$0.66 cents, the report discloses. There was a big drop of 59 per cent in revenues moving from US$59.47 million in 2019 to close the period under review at US$24.39 million, the report relays. For the second quarter, the company also posted a 54 per cent decrease in revenues to close at US$15.05 million relative to US$32.38 million for the same quarter of 2019, the report notes. For the December second quarter, CPJ had gross operating revenue of US$15.05 million, which is 61 per cent more than the first-quarter operating revenue, the report discloses. The overall group operating revenue for the half year was US$24.39 million, which is 5.14 per cent more than the projections made for the current COVID-19 impacted fiscal year 2020-2021, the report says. Cost of operating revenue showed a 59 per cent decrease closing the period at US$18.02 million relative to US$44.20 million for the corresponding period in 2019. For the quarter, the company recorded a 54 per cent decrease in cost of operating revenue to close at US$11.10 million relative to US$23.88 million for the comparable period in 2019, the report relays. Success in Cost Containment On the positive side, selling and administrative expenses were contained at US$6.19 million, representing a 45 per cent decrease on the US$11.33 million posted for the prior year, the report notes. Depreciation for the period fell marginally by 1 per cent closing the period at US$2.12 million compared to US$2.13 million in 2019, the report relays. Other operating income totalled US$132,623, compared with operating income of US$100,058 booked in 2019, the report recalls. Commenting on the half-yearly financial performance, CPJ emphasised that "the group, since the beginning of the current fiscal year, has maintained strong cash balances of over US$5 million, even while continuing to invest over US$1.5 million for important operational infrastructure in IT, meat plant equipment, fleet expansion, and the construction of a larger retail outlet in St Lucia," the report relays. As at December 31, 2020, CPJ's total assets amounted to $57.10 million, a 24 per cent decline from the $75.32 million booked in 2019. Non-current assets closed at $20.36 million (2019: $22.28 million) while current assets amounted to $36.75 million. There was a nine per cent decline in non-current assets, which was mainly attributed to the 17 per cent contraction of 'Intangible assets', which ended at US $11.16 million coming from US$13.45 million in 2019. =========== M E X I C O =========== ALPEK SAB: S&P Rates New $600MM Unsecured Notes Due 2031 'BB+' -------------------------------------------------------------- S&P Global Ratings assigned its 'BB+' issue-level rating to Alpek S.A.B. de C.V.'s (Alpek; global scale: BB+/Stable/--) proposed senior unsecured notes for up to $600 million due 2031. The company plans to use the net proceeds mostly for refinancing existing debt. The notes will benefit from upstream guarantees from some of Alpek's main operating subsidiaries and will rank pari passu in priority of payment with Alpek's existing senior unsecured debt. S&P said, "The rating on the proposed notes is at the same level as our issuer credit rating on Alpek, reflecting our view that there's no significant subordination risk present in its capital structure, because debt at the subsidiaries' level represents about 5% of the company's total debt; well below our 50% threshold. "In our view, the proposed issuance will enhance Alpek's debt maturity profile to an average term of about 7.0 years from about 4.4 years as of the end of 2020. This would shift the largest debt maturities mainly to 2029 and 2031. "We consider the transaction as debt neutral given that this issuance doesn't represent an increase in debt to Alpek's capital structure. We still expect the company to maintain its prudent and conservative financial policy towards leverage, with adjusted debt-to-EBITDA ratio in the 2.0x-2.5x area for 2020, while it maintains a strong liquidity position. Although we expected Alpek's sales to fall in 2020 due to lower sales prices, the drop was partly offset by higher growth in volumes. In addition, we continue to see resiliency in Alpek's business performance because final uses for PET-PTA products are mostly oriented to the consumer goods, food, and beverages industries that have seen higher demand due to the COVID-19 pandemic." Ratings List New Rating Alpek S.A.B. de C.V. Senior Unsecured BB+ Recovery Rating 3(55%) =============== P A R A G U A Y =============== AGENCIA FINANCIERA: Moody's Completes Review, Retains Ba1 Rating ---------------------------------------------------------------- Moody's Investors Service has completed a periodic review of the ratings of Agencia Financiera de Desarrollo and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review discussion held on February 10, 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 Agencia Financiera de Desarrollo's (AFD) Ba1 local currency issuer rating stems from its ba2 baseline credit assessment and incorporates one notch of uplift to reflect Moody's assessment of support by the government of Paraguay (Ba1). The ratings incorporate the agency's role as the only wholly-owned second tier government bank in Paraguay. AFD provides funding to other financial institutions to lend to borrowers in various sectors of the economy in support of the government´s economic development goals. AFD's financial obligations in both local and foreign currency are guaranteed by the Paraguayan government. The agency's rating also reflects its very strong asset quality and high levels of capitalization, offset by its relatively low levels of profitability versus banking peers and reliance on market funding, as non-deposit taking institution. The principal methodology used for this review was Banks Methodology published in November 2019. BANCO REGIONAL: Moody's Completes Review, Retains Ba2 Rating ------------------------------------------------------------ Moody's Investors Service has completed a periodic review of the ratings of Banco Regional S.A.E.C.A. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review discussion held on February 10, 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 Banco Regional S.A.E.C.A.'s (Regional) global local currency deposit rating of Ba2 derives from the bank's baseline credit assessment (BCA) of ba3 and incorporates one notch of uplift from the BCA to reflect Moody's assessment of systemic support in light of Regional's market share in terms of loans and deposits in the banking system. The bank's BCA reflects elevated asset risk, adequate capitalization and the significant challenges to the bank's profitability following its decision to defer provisions for loans under the Paraguayan central bank special agribusiness and COVID measures. A sign of increased asset risk, provisioning related to these loans will reduce earnings significantly. The bank's BCA is supported by Regional's predominant deposit funding, and its access to dollar-based funding sources and credit facilities that buttress its liquidity, as well as its adequate capitalization. The principal methodology used for this review was Banks Methodology published in November 2019. ===================== P U E R T O R I C O ===================== MMM HOLDINGS: Moody's Puts B1 CFR on Review for Upgrade ------------------------------------------------------- Moody's Investors Service has placed MMM Holdings, LLC B1 corporate family rating and B1 senior secured bank credit facilities on review for upgrade, after Anthem, Inc. (Baa2 stable) announced that it would acquire for an undisclosed price. Moody's has also placed the Ba1 insurance financial strength rating of MMM Healthcare, LLC, MMM's operating insurance subsidiary, on review for upgrade. Moody's expects MMM's approximately $773 million in outstanding debt to be paid off in connection with the deal closing, which is expected in Q2 2021. RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The review for upgrade reflects MMM's pending acquisition by Anthem, the second largest health insurer in the US. Moody's expects that Anthem will ensure that MMM Healthcare's risk-based capital levels remain adequate and will likely be enhanced. Overall, the acquisition of MMM will result in only a modest, temporary increase in Anthem's leverage, which has the resources to provide any support needed. The addition of MMM, the leading Medicare Advantage (MA) insurer in Puerto Rico will expand Anthem's footprint and bolster its MA business, growing its MA membership by approximately 18%. Upon closing of the deal, Moody's expect to upgrade MMM's ratings to the level of Anthem. Conversely, if the deal does not close, Moody's could downgrade MMM (and its operating subsidiary) under the following conditions: 1) RBC ratio below 115% of CAL; 2) MA membership drops 10% or more from current levels, and; 3) debt-to-EBITDA exceeds 3.0x on a sustained basis. Affected ratings: Issuer: MMM Holdings, LLC: Corporate Family Rating, at B1, placed on review for upgrade $750 million backed senior secured term loan due 2026, at B1, placed on review for upgrade $20 million backed senior secured term loan due 2026, at B1, placed on review for upgrade $80 million backed senior secured revolving credit facility due 2024, at B1, placed on review for upgrade Issuer: MMM Healthcare, LLC: Insurance Financial Strength Rating, at Ba1, placed on review for upgrade Outlook: Issuer: MMM Holdings, LLC Outlook, changed to rating under review from stable Issuer: MMM Healthcare, LLC Outlook, changed to rating under review from stable ICH US Intermediate Holdings II, Inc. and ICH Flow-Through LLC are co-borrowers on the term loans and revolving credit facility. The principal methodology used in these ratings was US Health Insurance Companies Methodology published in November 2019. InnovaCare Health, LP, the ultimate parent company of MMM Holdings, LLC is a privately-owned company incorporated in Puerto Rico and headquartered in White Plains, NY. NOSCE TE IPSUM: Seeks to Hire Charles A. Cuprill as Counsel ----------------------------------------------------------- Nosce Te Ipsum, Inc. seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Charles A. Cuprill PSC Law Offices to handle its Chapter 11 case. The firm will be paid at these rates: Attorneys $150 to $350 per hour Paralegals $85 per hour The firm will be paid a retainer in the amount of $5,000 and will be reimbursed for out-of-pocket expenses incurred. Charles Cuprill-Hearnandez, Esq., a partner at Charles A. Cuprill PSC Law Offices, disclosed in a court filing that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Charles A. Cuprill-Hearnandez, Esq. Charles A. Cuprill PSC Law Offices 356 Fortaleza Street, Second Floor San Juan, PR 00901 Tel: (787) 977-0515 Fax: (787) 977-0518 Email: ccuprill@cuprill.com About Nosce Te Ipsum Nosce Te Ipsum, Inc. owns in fee simple a five-story building with office and commercial spaces for lease, and adjacent parking lot structure in Guaynabo, P.R., valued at $7 million. Nosce Te Ipsum filed a Chapter 11 petition (Bankr. D.P.R. Case No. 19-05155) on Sept. 9, 2019. In the petition signed by Maria De Los A. Ubarri, general manager, the Debtor disclosed $7,046,991 in assets and $5,210,939 in liabilities. The Debtor classifies its business as single asset real estate (as defined in 11 U.S.C. Section 101(51B)). Judge Brian K. Tester oversees the case. Charles A. Cuprill PSC Law Offices is the Debtor's legal counsel. ===================================== T R I N I D A D A N D T O B A G O ===================================== TRINIDAD & TOBAGO: Has Uphill Struggle in Agro-Processing --------------------------------------------------------- Trinidad and Tobago Newsday reports that the recent call by the president of a co-operative society set up to promote one of Trinidad and Tobago's signature crops shows the uphill struggle the agro-processing sector as a whole still faces. "We need start-up capital," said Rachael Ann Cooper-Lee, president of the Moruga Hill Rice Multi-purpose Co-operative Society, in an interview with Business Day last week. Established in 2018, the society is made up of just over 63 registered farmers and also farming families in the community. A study in 2018 estimated 113 acres of the crop are under cultivation, but Cooper-Lee and other farmers would like to see that ramped up through mechanisation and incorporation of technology, the report relays. Exactly three years ago, a New York Times article shone a light on Moruga hill rice and its connection to what is known simply as hill rice in the US (Thomas Jefferson called hill rice "a miracle"), according to Trinidad and Tobago Newsday. Yet, despite efforts by two government ministries to offer grant support and raise local awareness, it is not apparent this country was able to harness the traction of such exposure on the international market, the report notes. Moruga hill rice is something of a miracle crop, but don't tell that to local investors, the report discloses. There are several varieties - including those known as Bongo Farina, Bongo Toffee, Bongo Farina Long Beard, Black Hen and Black End - but a lot more research can be done to confirm the strains unique to TT, the report says. The report relays that some supermarkets stock the rice and one company even offers to sell it online. But public awareness and appetite are lower than ideal, especially at a time when the issue of food security has become ever more crucial, the report relays. The rice is just one of several local brands or strains that have achieved international prominence but received local neglect, the report notes. Alongside Moruga hill rice are Moruga scorpion pepper and Trinitario cocoa - both of which are world-renowned, yet in their country of origin they struggle to get respect and investment, the report discloses. Small farmers are banding together to generate economies of scale for export, but there is only so much they can do without an enabling environment to help establish and dominate the market, the report relays. The State has issued grants and tax exemptions, but the final push has to come from the private sector. With the devastating impact of the covid19 pandemic likely to linger, the appetite for risk is even lower, and that final push is not likely to be forthcoming, the report adds. Can the State's support go even deeper? How can it better match unused capital with skills, produce and forward-thinking business plans? There is something to be said for the State playing a more direct role in establishing "Made in TT" on the international market, encompassing all of these products under one banner of regulation, the report notes. Such a banner could be more than just a marker of origin; it could be a valuable stamp of approval, the report relays. As the farmers of Moruga hill rice know, a hands-on approach is probably the best way to ensure a good yield, 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 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. 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