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

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

          Thursday, March 4, 2021, Vol. 22, No. 40

                           Headlines



A R G E N T I N A

EDENOR: Moody's Completes Review, Retains 'Caa3' Rating
EMPRESA DISTRIBUIDORA DE ELECTRICIDAD: Moody's Completes Review


B R A Z I L

BRAZIL: Central Bank Intervenes in Spot FX for First Time in 2021
VALE SA: Books Hefty Dam Disaster Charges


C H I L E

CAP SA: S&P Alters Outlook to Stable & Affirms 'BB+' ICR


E C U A D O R

INTERNATIONAL AIRPORT: Moody's Affirms Caa2 Secured Rating


J A M A I C A

JAMAICA: Mining Sector Recovering


N I C A R A G U A

NICARAGUA: Coffee-Growing Region Rebuilds After Hurricanes
TRINIDAD & TOBAGO: Small Hotels Face Foreclosure


T R I N I D A D   A N D   T O B A G O

TRINIDAD & TOBAGO: IDB OKs US$24.5MM Loan for Covid-19 Crisis


U R U G U A Y

BANCO PATAGONIA: Moody's Lowers Deposit Ratings to B2


V E N E Z U E L A

VENEZUELA: Basic Food Basket Skyrockets in January

                           - - - - -


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A R G E N T I N A
=================

EDENOR: Moody's Completes Review, Retains 'Caa3' Rating
-------------------------------------------------------
Moody's Investors Service has completed a periodic review of the
ratings of Empresa Distribuidora y Com. Norte 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 24, 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

Empresa Distribuidora Norte S.A. (Edenor)'s Caa3 rating and
negative outlook reflects the uncertainties on the future
consistency of the regulatory framework and the links to the
Government of Argentina (Ca).

The negative outlook for Edenor incorporates that Edenor's cash
position (ARS9 billion as of September 2020 or the equivalent to
USD105 million) could allow for the cash payment of the notes
outstanding but the current Central Bank restrictions on access to
foreign currency if extended could complicate or inhibit timely
execution of the change of control repurchase. This risk along with
the uncertainties on how the CoC offer will be handled by the new
owners are reflected in the revision of Edenor's rating outlook to
negative.

The negative outlook for Edenor also incorporates the potential for
a protracted period of weak cash flow generation resulting from the
regulator's extension until at least March 2021 of the tariff
freeze and the government's recent announcement to initiate a
tariff review process during next year that could result in an
extended period of frozen tariffs.

The principal methodology used for this review was Regulated
Electric and Gas Utilities published in June 2017.


EMPRESA DISTRIBUIDORA DE ELECTRICIDAD: Moody's Completes Review
---------------------------------------------------------------
Moody's Investors Service has completed a periodic review of the
ratings of Empresa Distribuidora de Electricidad Salta and other
ratings that are associated with the same analytical unit. The
review was conducted through a portfolio review discussion held on
February 24, 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.

Empresa Distribuidora de Electricidad Salta's Ca rating reflects
uncertainties on the sufficiency of rates going forward and on the
future consistency of the regulatory framework in Argentina. The
ratings also reflect EDESA's linkage to the credit quality of the
Government of Argentina (Ca) and the company's weak liquidity and
high exposure to devaluation risk because all its debt is mostly US
dollar-denominated and its revenues in local currency.

The principal methodology used for this review was Regulated
Electric and Gas Utilities published in June 2017.



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

BRAZIL: Central Bank Intervenes in Spot FX for First Time in 2021
-----------------------------------------------------------------
Richard Mann at Rio Times Online reports that Brazil's central bank
intervened in the spot foreign exchange market on February 25, for
the first time this year, selling US$1.5 billion in two auctions as
the real slumped to its weakest against the US dollar in over four
months.

The central bank sold US$920 million in its first intervention,
followed by a sale of US$615 million a couple of hours later as the
dollar traded above R$5.50, according to Rio Times Online.

The US currency traded as high as R$5.5378, a level not seen since
early November, according to Refinitiv, 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.


VALE SA: Books Hefty Dam Disaster Charges
-----------------------------------------
Rio Times Online reports that Brazil's Vale SA logged US$4.9
billion in provisions related to the Brumadinho dam disaster in
quarterly earnings, but its ferrous metal division turned in a
strong performance and the miner was upbeat about the outlook for
key products.

Some US$3.9 billion of the provisions are part of a recently
announced US$7 billion agreement with prosecutors and the state of
Minas Gerais to settle claims stemming from the collapse of the dam
in 2019 which killed 270 people, according to Rio Times Online.

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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C H I L E
=========

CAP SA: S&P Alters Outlook to Stable & Affirms 'BB+' ICR
--------------------------------------------------------
S&P Global Ratings, on March 1, 20201, revised its outlook on
Chilean-based pellets and steel producer CAP S.A. to stable from
negative and affirmed its global scale 'BB+' issuer credit rating
on the company and issue ratings on CAP's senior unsecured notes.

The stable outlook reflects higher cash generation and stronger
credit metrics in a favorable scenario for commodity prices. S&P
expects the company to benefit from positive momentum to extend
maturities and improve overall capital structure.

S&P said, "As a result of the Nov. 22, 2018, fatal accident at the
Guacolda 2 Port, CAP's pellets output plummeted in 2019. Logistics
costs increased and volumes dropped 37% in 2019 compared to 2018,
selling only 9.2 million tons in the year. Given that the
construction of the new ship loader and its assembly was completed
in December 2019, port services normalized, and we expect 2020
dispatches to recover to 16 million tons, close to 2017 levels."

Iron ore and steel prices have reached record levels since many
years now and are boosting CAP's profitability and cash flows. Iron
ore (62% Fe) reached $170-$180 per ton in Singapore Exchange (SGX),
and steel rebar reached $700-$710 per ton at Shanghai Future
Exchange (SHFE). S&P said, "Although the company is exposed to the
volatility of its commodity-type cash flows, which we reflect in
our financial risk assessment to sustain metrics during a weaker
cycle environment, leverage is currently protected by its low debt.
We expect leverage to remain way below 1.5x and free operating cash
flow (FOCF) above 70% in the next 12 to 18 months."

The company's debt maturing in 2021 accounts for 68% of total debt,
which lowers the weighted average maturity to only 2.1 years. CAP
has two domestic bonds of unidad de fomento (UF) 3 million (US$115
million) each maturing in July 1 and September 2021. However, the
company had sufficient cash on hand of US$557 million in December
2020 to face the maturities, which will further strengthen with
expected sound free cash flows amid positive pricing momentum, and
which we believe will allow the company to successfully refinance
upcoming debt maturities and improve its overall debt profile.




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

INTERNATIONAL AIRPORT: Moody's Affirms Caa2 Secured Rating
----------------------------------------------------------
Moody's Investors Service affirmed the Senior Secured rating of
International Airport Finance, S.A. ("Quiport") at Caa2 and changed
the outlook to stable from negative.

This follows Moody's rating action in which the agency affirmed the
Government of Ecuador's ratings at Caa3 and changed the rating
outlook to stable from negative.

RATINGS RATIONALE

Moody's rating action to affirm Quiport's rating reflects the
airport's weak enplanement trends as a result of the coronavirus
outbreak. Departing passengers in 2020 were 69% below 2019. For
2021 Moody's expect enplanements will improve but that they will
remain around 60% below 2019. As a result, Quiport will continue to
exhibit a weak financial performance and rely on available cash for
its operations and meeting debt service payments.

In 2020, according to preliminary financial information, Debt
Service Coverage Ratio was close to 0.72x and Funds from operations
("FFO") to debt of approximately -6%. Moody's expects that the
COVID-19 outbreak will continue to have an adverse impact on
financial performance through 2021.

The stabilization of the rating outlook considers that despite the
weak credit metrics, Quiport has adequate available liquidity. As
of December 31, Quiport held $32mm of cash available and also has a
Letter of Credit of around $24mm, which is available to fund CAPEX.
Quiport's credit quality is also supported by the project finance
features, including a 12-month Debt Service Reserve Account held
offshore, Capex reserves, dividend distribution and additional
indebtedness tests, and a collateral package.

The Caa2 rating also recognizes that Quiport has various linkages
with the Government of Ecuador. These include the reliance on a
concession contract with the Municipality of Quito that governs the
operations and tariff setting process of the airport and an
investment protection agreement with the Government of Ecuador.
Notwithstanding, the Caa2 rating of Quiport, one-notch above the
Government of Ecuador's rating of Caa3, reflects certain
characteristics that limit its exposure to Ecuador: substantial
international revenues, strong stand-alone credit quality, and
access to international financing.

The stable outlook mirrors the outlook on the ratings of Ecuador.

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

If traffic levels recover faster than expected, such that key
metrics and liquidity are strengthened, the ratings could
experience upward pressure.

Downward pressure on the rating could develop due to a material and
sustained financial and liquidity weakening. Specifically we expect
that Quiport will be able to meet debt service payments with
available cash, without drawing from the Debt Service Reserve Fund.
Deterioration of the rating of the Ecuador or evidence of a
significant negative shift in policies or regulations could also
lead to downward pressure on the rating.

Quiport is owned indirectly by CCR S.A. (Ba2/Aa1.br, stable)
(46.5%), which is a Brazilian-based infrastructure company focused
on airport, toll roads and mass transit infrastructure projects
with a portfolio of international airports, including Belo
Horizonte, Curacao and San Jose; Odinsa (unrated) (46.5%), which is
part of Grupo Argos and has a diverse portfolio of transportation
concessions, including the International Airport of Bogota; and
HASDC (unrated) (7%), a US-based international airport development
and management company affiliated with the Houston airports
system.

The principal methodology used in this rating was Privately Managed
Airports and Related Issuers published in September 2017.




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

JAMAICA: Mining Sector Recovering
---------------------------------
RJR News reports that Jamaica's mining sector has experienced
recovery.

According to the quarterly monetary policy report, value added for
mining and quarrying for the October to December quarter is
estimated to have grown relative to the corresponding quarter in
2019 when Alpart was closed, the report notes.

The report says the expansion largely reflected growth in alumina
production as crude bauxite production declined, according to RJR
News.

                        About Jamaica

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

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

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




=================
N I C A R A G U A
=================

NICARAGUA: Coffee-Growing Region Rebuilds After Hurricanes
----------------------------------------------------------
EFE News reports that armed with picks, shovels and chainsaws, a
battalion of peasants get down to work clearing roads in this
mountain municipality in northern Nicaragua that was battered by
two hurricanes in succession just three months ago.

The farmers are racing to repair the dirt roads so they can
transport to market the coffee beans that represent their main
source of income, according to EFE News.

Landslides caused by Hurricanes Eta and Iota last November cut off
16,000 people living in communities on the slopes of the Cerro
Kilambe, 1,750 m (5,737 ft) above sea level, one of the six
protected areas making up the Bosawas Biosphere Reserve, the report
relays.

For the volunteers, such as 52-year-old coffee grower Ivan Antonio
Centeno, the memory of carrying sacks of coffee and grain on their
backs in mud up to their knees remains fresh, the report notes.

Standing at the foot of La Esperanza creek, which flooded during
the storms, Centeno tells EFE News that he and his neighbors began
organizing to repair the roads even when the land was still
saturated and the threat of further landslides was real.

"The roads were destroyed. There was nothing. It was horrible,"
grower Coronado Valdivia Montenegro, 50, told EFE News.

While residents evacuated in time to avert casualties, the
hurricanes, especially Iota, did incalculable damage to
infrastructure and crops, he added.

Farmers found themselves cut off, with no safe way to get home,
whether on foot, by mule or on a motorcycle, the report relays.
And the coffee that withstood the hurricanes' onslaught was in
danger of being lost, the report notes.

"We had to cross from one side to the other by hanging on a rope
that we tied between trees, or on tree trunks that we placed over
the creeks," the report quoted Valdivia as saying.

Desperate to salvage their crops to avoid defaulting on their
debts, the farmers used chainsaws to fashion bridges from fallen
trees and moved piles of dirt to make some roads passable, enabling
them to transport the beans, the report relays.

"We were stranded for about two weeks, with no way out. Nobody sold
coffee for a week," Ariel Lagos Centeno, 37, recounted to EFE
News.

Despite those Herculean efforts, coffee beans from Cerro Kilambe
were taking too long to reach the buyers, who visited the area to
assess the damage caused by the hurricanes, the report relays.

"What (the producers) told us was nothing compared with the reality
we saw," said Jorge Eslaquit, regional sales director at Cisa
Exportadora, part of the Mercon Group, one of the world's leading
coffee companies with almost 70 years experience, the report
discloses.

The visit led to an alliance between the growers and the Mercon
Group's Seeds for Progress Foundation to create a hurricane relief
fund to finance road repairs in 11 coffee-producing communities in
Nicaragua and Honduras, the report says.

The initiative raised $178,000 to meet the urgent needs of the
coffee-growing regions, Deglys Rodriguez, civil works supervisor at
the Seeds for Progress Foundation, told EFE, with more than 20,000
people in Nicaragua and Honduras benefiting.

Eslaquit said Mercon supported road repairs in Wiwili because of
their long-standing relationship with the growers there, the report
relays.

Thanks to its altitude and fertile land, the Cerro Kilambe produces
some of the finest coffee, which tends to command higher prices
than those set on the futures market at the New York Stock
Exchange, the report notes.

While damage from the hurricanes is still visible in the Kilambe
reserve, so is the pride and enthusiasm of the farmers, who refuse
to stand idle, preferring to grab their picks, shovels and
chainsaws in pursuit of reviving hope, the report adds.


TRINIDAD & TOBAGO: Small Hotels Face Foreclosure
------------------------------------------------
Trinidad Express reports that the spread of the Covid-19 virus and
the cancellation of Carnival 2021, have strongly affected travel
and tourism and as a consequence the hotel industry, especially
boutique hotels.

The unexpected market shifts brought about by the spread of the
virus have left small hoteliers wondering what to do, as revenues
have been affected by 80 to 100 per cent, according to Trinidad
Express.

President of the Small Tourism Accommodation Owners of Trinidad and
Tobago (STAOTT) Denise Aleong told Express Business that a few
boutique hotels had to shutter their doors and a bank foreclosed
one hotel due to non-payment of loan installments, the report
notes.

Aleong, who is also the owner of Samise Villa located in St Ann's,
said from the start of the pandemic to now she has had fewer than
ten visitors to her villa, the report relays.

"This is rough on hotel owners as annually you have peak and off
seasons, which you cater for, but since Covid there has been no
peak season and owners had to put out more money to ensure that
they were abiding by all the Covid protocols," the report
discloses.

She lamented that because of this hit that local small hotels have
taken, some boutique hotels transformed their space into new
businesses in order to get a steady income, while others are doing
long-term rentals, the report relays..

"Not because there are no visitors on your property means the
overhead expenses stop.  It now makes it harder on the owner to
meet monthly deadlines with little or no money coming in."

Aleong noted that the owners did not have the usual domestic travel
to depend on as the inter-island travelling was uncertain before
the APT James vessel began operating last month, the report notes.

In painting a grim outlook of the situation she said some STAOTT
members cannot even pay their utility bills far less for membership
fees, the report discloses.

"STAOTT cannot offer financial assistance, but we are trying to
help them get support through other organizations that can assist
financially and we are also preparing the membership for when
travel reopens," the report relays.

According to Aleong, the large hotels are feeling the effect as
well but not the full brunt like the boutique hotels, as they have
restaurants, spas and other amenities to help generate an income,
the report relays.  Small hotels are not equipped with these
amenities, the report notes.

Asked whether the association received assistance from the
Government, the hotel owner said not directly but only what was
offered through the Covid Salary Relief Grant and Entrepreneurial
Relief grant offered by NEDCO to the property owners, the report
discloses.  She was unable to say if all owners were able to secure
the funding, the report says.

"STAOTT presented a proposal for relief through Tourism Trinidad
Limited and NEDCO to assist the hotels to have cash flow to help
offset their operating costs and for upgrades, but this is still in
discussion so I cannot divulge any more information at this time.
But we are hopeful to get some positive feedback," Aleong said, the
report relays.

She also added that Coblentz Inn, Samise Villa, The Cannons Hotel,
Chez Jeanne Bed and Breakfast, Inna Citi Place and Pax Guest house
obtained the CARPHA health assurance stamp, which is granted to
tourism entities and destinations that are implementing the
recommended proactive Covid-19 health monitoring and safety
measures, the report notes.

Speaking on the crippling impact caused by the pandemic Chris
James, president of the Tobago Hotel and Tourism Association said
occupancy is 16 per cent for the year thus far, the report
discloses.

James said this figure is worrying and some hoteliers are not even
sure where they are going to get money to pay their utilities, the
report relays.

"Hotels are not able to employ staff on a full-time basis so
everyone is doing it on a rotation basis in order for the staff to
earn some kind of income. While only one small hotel has shut its
doors due to lack of revenue, I believe other owners will follow as
16 per cent occupancy cannot sustain overhead expenses," James
said, the report relays.

He noted while there was a slight uptick for the holiday season it
was not enough to generate income for a long period, the report
notes.

James said the Tobago villas are performing much better with the
domestic travel as persons like the exclusivity, the report
relates.

"Everyone is feeling the effects from the pandemic: tour operators,
dive shops, restaurants and bars. It's a serious situation and the
current deadlock from the Tobago House of Assembly (THA) January 25
elections is not helping the situation as no other conversation is
being had at the moment..."

Both Aleong and James said the Government needs to set up a tourism
committee to deal with the issues that are affecting the sector,
the report notes.

A TripAdvisor research on hospitality trends based on global
traveller searches and survey data across six markets (United
States, United Kingdom, Australia, Italy, Japan and Singapore),
revealed a new 2021 travel mindset, the report relays.

Despite the financial impact of the pandemic hitting many hard, in
the first three weeks of January, Tripadvisor travellers were
searching for pricier trips than they had in the past two years
during the same period, the report discloses.

In fact, the average cost of a single future trip in 2021 has
jumped 13 per cent since January 2019.

The survey showed about a quarter (24 per cent) of global
travellers are planning to take three or more international trips
in 2021, with Americans leading the globe -- a third (33 per cent)
of US travellers anticipate taking three or more trips abroad, the
report adds.




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

TRINIDAD & TOBAGO: IDB OKs US$24.5MM Loan for Covid-19 Crisis
-------------------------------------------------------------
The Government of Trinidad and Tobago signed a loan agreement with
the Inter-American Development Bank to fund a program for people
most affected by the Covid-19 crisis in Trinidad and Tobago.  

The US$24.5 million dollar will help ensure basic quality of life
standards for vulnerable persons are maintained in the immediate
period and during the economic recovery of Trinidad and Tobago.

The program will finance two components:

-- The expansion or additional/emergency cash transfers to
beneficiaries of three existing programs delivered by the Ministry
of Social Development and Family Services (MSDFS): Food Support
Program; Senior Citizen Pension; and Disability Assistance Grant
and

-- The temporary expansion of the Food Support Programme for
households where a member of the household working in the informal
sector experienced a loss in income due to the COVID-19 crisis.

This project will benefit households and individuals belonging to
the most vulnerable groups in the country including over 25,000
existing beneficiary households of the Food Support Program in
which women are expected to represent about 60% of the
beneficiaries; 20,500 households with school-age children who
received the School Nutrition Program prior to the COVID-19
emergency; 2,000 low-income persons aged 65 and over; 500 adults
18-65 years of age who are permanently disabled from earning a
livelihood; 39,233 households with persons who have suffered
involuntary termination, suspension, or loss of income in the
informal sector.

The loan agreement was signed by Senator The Honorable Allyson West
acting Minister of Planning and Development on behalf of Trinidad
and Tobago and President Maurico Claver-Carone of the
Inter-American Development Bank.

Trinidad and Tobago was the first Caribbean country to join the IDB
in 1967 and maintains a rich partnership with the Bank over the
last 54 years.




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

BANCO PATAGONIA: Moody's Lowers Deposit Ratings to B2
-----------------------------------------------------
Moody's Investors Service has downgraded to B2, from Ba3, Banco
Patagonia (Uruguay) S.A. I.F.E.'s long-term global local and
foreign currency deposit ratings, following the downgrade of the
bank's baseline credit assessment to b3, from b1. All of the bank's
short-term ratings and assessments were affirmed. The outlook on
the ratings remains stable.

RATINGS RATIONALE

The downgrade of Patagonia Uruguay's BCA, and its deposit ratings,
reflects our view that capital metrics will likely remain well
below historic levels following net losses of USD8.9 million
resulting from impairing an ongoing investment in bonds from the
Government of Argentina (Ca). As of September 2020, the bank's
Argentine debt position represented 146% of tangible common equity
(TCE). Measured by Moody's preferred ratio of TCE to risk-weighted
assets, Patagonia Uruguay's capitalization shrank to 7.72% in
third-quarter 2020. The Argentine bond matures September 2035,
which exposes Patagonia Uruguay to potential losses and capital
deterioration should the bank maintain its investment in the debt
and further devaluation occur.

A capital injection of USD1.0 million from Argentina-based
affiliate Banco Patagonia is expected to be carried out in the
first half of 2021. The new injection will further raise the bank's
regulatory capitalization ratio, which was 12.72% in December 2020
following a capital injection. Moody's consider the fall in capital
below regulatory minimum requiring the need for parental support to
be a BCA event, according to Moody's definition. Moody's view that
Patagonia Uruguay's profitability will also likely remain tepid in
2021 is underpinned by the persistent low level of interest rates
in global markets, therefore, affecting negatively fees and
commissions the bank earns for its main activities of asset
management, securities custodian and private banking. The bank's
limited revenues diversification will also challenge profitability
growth.

Patagonia Uruguay's credit challenges are mitigated by a business
with inherently low asset risk, excluding its investment in
Argentine bonds, and a funding structure comprised predominantly of
low cost dollar-denominated retail deposits. Despite primarily
catering to Argentine clients of Banco Patagonia in Uruguay, the
bank has no lending operations and, as a result, no problem loans
on its balance sheet. However, Moody's still acknowledge high
market risk as a source of asset risk for Patagonia Uruguay,
reflecting the bank's reliance on trading-related activities as its
main source of earnings origination.

The stable outlook incorporates Moody's expectation that Patagonia
Uruguay's financial profile will remain consistent over the next
12-18 months. Patagonia Uruguay's B2 global deposit ratings reflect
the bank's fundamental credit strength, as evidenced by its b3 BCA,
and incorporates a one-notch uplift to reflect Moody's assessment
of moderate affiliate support from parent Banco do Brasil S.A.
(Ba2, ba2), which controls Patagonia Uruguay through its ownership
of Banco Patagonia in Argentina.

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

Patagonia Uruguay's ratings could face upward pressure if
profitability and capital metrics show consistent and significant
improvement over the next 12-18 months. Ratings could also be
affected positively if the BCA of its affiliate support provider,
Banco do Brasil, were to increase.

Ratings could move down if operating losses increased sharply,
driving the capital ratio back to thresholds below regulatory
minimum. A swift decline in deposits could also put downward
pressure on the ratings if the bank's revenue origination is
impaired as a result. Finally, the bank deposit ratings could face
downward pressure if its affiliate support provider's BCA is
downgraded.

METHODOLOGY USED

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

Banco Patagonia (Uruguay) S.A. I.F.E. is headquartered in
Montevideo, Uruguay, with assets of $102.3 million and
shareholders' equity of $3.8 million as of September 30, 2020.

LIST OF AFFECTED RATINGS AND ASSESSMENTS

The following ratings and assessment of Banco Patagonia (Uruguay)
S.A. I.F.E. were downgraded:

Long-term global local currency deposit rating: to B2, from Ba3,
stable outlook

Long-term global foreign currency deposit rating: to B2, from Ba3,
stable outlook

Baseline credit assessment: to b3, from b1

Adjusted baseline credit assessment: to b2, from ba3

Long-term counterparty risk assessment: to B1(cr), from Ba2(cr)

The following ratings and assessments of Banco Patagonia (Uruguay)
S.A. I.F.E. were affirmed:

Short-term global local currency deposit rating of Not Prime

Short-term global foreign currency deposit rating of Not Prime

Short-term counterparty risk assessment of Not Prime(cr)

Outlook Actions:

Outlook, Stable




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

VENEZUELA: Basic Food Basket Skyrockets in January
--------------------------------------------------
The Latin American Herald reports that Venezuelans are getting
poorer by the minute as the country's minimum essential food basket
registered yet another spike in January compared with December of
last year.

The Center for Documentation and Social Analysis of the Venezuelan
Federation of Teachers (Cendas-FVM) said in a report that the
basket had an average cost of Bs.457.6 million ($260.38 calculated
at the central bank official rate), representing an increase of 41%
from December of last year and 1,795% year-on-year, according to
The Latin American Herald.

The increase affected that part of the population earning wages in
the form of local currency (bolivars), above all employees from the
public sector, pensioners and other minimum wage earners (about 66
cents a month), the report notes.

The Cendas-FVM report states that it takes 381.37 minimum wages of
Bs.1.2 million each, or Bs.15.2 million or $8.47 a day, for a
five-person household to obtain the basket taking into account that
the average monthly income of each household person is only $48 –
including those receiving government handouts –, according to
data by local pollster Dataanalisis, the report relays.

All food items comprising the basket registered increases in
January: dairy products and eggs (52.8%); fats and oils (52%);
meats (50.7%); sauces and mayonnaise (50%); roots, tubers, and
others (48.1%); vegetables (45.7%); fish and seafood (39.9%); sugar
and salt (27.1%); coffee (24%); grains (22.6%); and cereals and
their byproducts (12.7%), the report relays.

"The minimum wage in Venezuela is practically useless," said Óscar
Meza, head of Cendas-FVM. "Who do you hire these days offering them
minimum wage? Nobody," he added.

                           Venezuela

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

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

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

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

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



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

Troubled Company Reporter-Latin America is a daily newsletter
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Chapman, Editors.

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