/raid1/www/Hosts/bankrupt/TCRLA_Public/210413.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

          Tuesday, April 13, 2021, Vol. 22, No. 68

                           Headlines



A R G E N T I N A

TARJETA NARANJA: Fitch Removes Negative Watch on 'CCC-' LT IDRs


B A H A M A S

BAHAMAS: External Reserves Down to B$2.2 Billion in March


B R A Z I L

BANCO PAN SA: Fitch Raises LongTerm IDRs to 'BB-'
BRAZIL: Industrial Production In February Shrank in Ten States
BRAZIL: Luxury Sector Suffered Least in Pandemic
DIAMOND OFFSHORE: Court Okays $2BB Plan After Axing Compromise
SAMARCO MINERACAO: Files for Brazil Bankruptcy Protection



C H I L E

AUTOMOTORES GILDEMEISTER: Fitch Cuts LT IDRs to 'RD'


E L   S A L V A D O R

BANCO AGRICOLA: Fitch Affirms 'B' LT IDR, Outlook Negative
BANCO DAVIVIENDA: Fitch Affirms 'B' LongTerm IDR, Outlook Negative


P U E R T O   R I C O

STONEMOR INC: Units Complete $6.2M Sale of Assets to Clearstone


U R U G U A Y

ARCOS DORADOS: Fitch Affirms 'BB' LT IDR, Outlook Stable
SANCOR SEGUROS: Fitch Affirms 'B+' IFS Rating, Outlook Stable


X X X X X X X X

LATAM: Debt Issuers Rush to Secure Current Interest Rates

                           - - - - -


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A R G E N T I N A
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TARJETA NARANJA: Fitch Removes Negative Watch on 'CCC-' LT IDRs
---------------------------------------------------------------
Fitch Ratings has affirmed Tarjeta Naranja, S.A.'s (TN) Long-Term
Foreign- and Local-Currency Issuer Default Ratings (IDRs) at
'CCC-', and Short-Term Foreign- and Local-Currency IDRs at 'C'. In
addition, Fitch has affirmed the long-term senior unsecured debt at
'CCC-'/'RR4'. Fitch has removed the ratings from Rating Watch
Negative.

The removal of the Negative Watch follows the successful issuance
of USD8.5 million in the local market, which was the amount needed
to service its internationally issued debt principal payment due
April 12, 2021. On that date, TN has to amortize principal for
ARS1,282 million, equivalent to around USD16 million. While the
notes are denominated in ARS, they have to be settled in USD,
according to the applicable exchange rate calculated three business
days before scheduled payment dates. As of December 2020, TN had
total assets of ARS100.1 billion, meaning the maturing principal
represents only 1.3% of total assets. At the same date, the company
held ARS2.7 billion in cash, 2.1x the maturing amount.

KEY RATING DRIVERS

IDRS AND SENIOR DEBT

TN's IDRs are predominantly influenced by Argentina's volatile
operating environment and low sovereign ratings (CCC). TN's funding
and liquidity profile, which is affected by the capital controls in
Argentina, also highly influences the entity's ratings.

As a non-bank financial institution with short-term assets, TN's
funding profile relies primarily on accounts payable and local
issuances. Almost 100% of its liabilities were unsecured at Dec.
31, 2020. No-cost accounts payable to merchants (for an average
tenor of 45 days) represented 71% of total liabilities, while local
and international issues of unsecured debt accounted for 13.2% and
bank financing for 8.6%.

TN's liquidity is strengthened by the predictable churn of its
short-term loan assets (with an average duration of approximately
four months). While the outstanding amount of international debt
issuances is small (around 3.3% of total liabilities before the
upcoming principal amortization), and the only remaining principal
payment is in April 2022, an extension or tightening of the capital
controls in Argentina cannot be ruled out, and add uncertainty to
TN's capacity to obtain USD to make the payment.

The ratings also consider TN's higher risk appetite relative to
bank peers with a moderate importance. The entity's business
concentration in credit cards targeting low- and middle-income
segments is a constraint. However, in Fitch's view, TN's robust
niche franchise as the largest credit card issuer in Argentina and
one of the top credit card issuers in the region, as well as its
good revenue generation capacity and track record of adequate asset
quality for its business model and segments served, somewhat
mitigates this constraint.

TN's senior unsecured debt rating is at the same level as the
company's Long-Term, Local Currency IDR, as the likelihood of the
notes' default is the same as that of TN. The 'RR4' recovery rating
reflects the average expected recovery in case of liquidation.

RATING SENSITIVITIES

IDRS

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

-- A downgrade of Argentina's sovereign rating or a deterioration
    in the local operating environment beyond current expectations
    that leads to a significant deterioration in its financial
    profile could pressure TN's IDRs;

-- Any policy announcements detrimental to the company's ability
    to service its obligations, including a tightening of capital
    controls to the extent that they restrict debt payments, would
    be negative for creditworthiness.

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

-- The IDRs could benefit from an elimination of capital controls
    in Argentina or the amortization of the outstanding amount of
    debt issued internationally;

-- The IDRs could also benefit from an upgrade of Argentina's
    sovereign rating, in the absence of capital controls.

SENIOR DEBT

Ratings on senior debt are primarily sensitive to any change in
TN's IDRs.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Financial Institutions and
Covered Bond issuers have a best-case rating upgrade scenario
(defined as the 99th percentile of rating transitions, measured in
a positive direction) of three notches over a three-year rating
horizon; and a worst-case rating downgrade scenario (defined as the
99th percentile of rating transitions, measured in a negative
direction) of four notches over three years. The complete span of
best- and worst-case scenario credit ratings for all rating
categories ranges from 'AAA' to 'D'. Best- and worst-case scenario
credit ratings are based on historical performance.

ESG CONSIDERATIONS

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



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B A H A M A S
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BAHAMAS: External Reserves Down to B$2.2 Billion in March
---------------------------------------------------------
Jamaica Observer reports that the Central Bank of The Bahamas
(CBOB) is reporting that external reserves dropped by B$62.8
million to B$2.2 billion last month, following the expected trend
laid out by its governor over the course of the novel coronavirus
pandemic.

Government borrowing bolstered reserves to B$2.3 billion at the end
of 2020, according to Jamaica Observer.

"This decrease was reflective of the ongoing travel restrictions
related to the COVID-19 pandemic, combined with the demand for
foreign currency by the public sector and the commercial banks. In
particular, the central bank's foreign currency transactions with
the public sector reversed to a net sale of B$48.8 million, from a
net purchase of B$9.1 million in 2020," the bank stated in its
Monthly Economic and Financial Developments Report for February,
the report relays.

"Similarly, the bank's transactions with commercial banks switched
to a net sale of B$15.1 million, from a net purchase of B$91.2
million in the preceding year, as commercial banks reported a net
sale of B$16.3 million to their customers, following a net intake
of B$80.3 million a year earlier," the report said, Jamaica
Observer notes.

However, CBOB further stated that domestic demand for foreign
currency dropped by B$132.4 million in February, with sales
amounting to B$373 million, the report relays.

"Primarily, purchases of foreign goods and services via credit and
debit card transactions decreased by B$116.4 million, while oil
imports and travel-related payments fell by B$14.8 million and by
B$9.3 million, respectively," the CBOB stated, the report notes.

"In a partial offset, foreign currency sales rose for factor income
(B$3.6 million), non-oil imports (B$2.8 million) and transfer
payments (B$1.9 million)," it added, the report discloses.

The continued loss of foreign reserves is expected to be maintained
at least until there is a rebound in the country's tourism product,
the bank stated. That return is expected to remain sluggish during
2021, as COVID-19 travel restrictions remain in place, the report
relays.

The central bank reported an 86.9 per cent decline in total visitor
arrivals during January, revealing that there were only 16,098
international departures from Lynden Pindling International
Airport, the report notes.

On the other hand, vacation home rentals continue to strengthen,
with a recorded 24 per cent increase in room nights sold, the
report adds.

As reported in the Troubled Company Reporter-Latin America on Nov.
17, 2020, S&P Global Ratings lowered its long-term foreign and
local currency sovereign credit ratings on the Commonwealth of
The Bahamas to 'BB-' from 'BB'. At the same time, S&P Global
Ratings revised down its transfer and convertibility assessment to
'BB' from 'BB+'. The outlook is negative.



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B R A Z I L
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BANCO PAN SA: Fitch Raises LongTerm IDRs to 'BB-'
-------------------------------------------------
Fitch Ratings has upgraded Banco PAN SA's (PAN) Long Term Local and
Foreign Currency Issuer Default Ratings (IDRs) to 'BB-' from 'B+'
and the Long-Term National Rating to 'A+(bra)' from 'A(bra)'.

The upgrade reflects the entity's established track record in its
business model, its resilience through the latest economic
downturn, and Fitch's expectations for the bank's future financial
performance. This has strengthened PAN's franchise and resulted in
steady improvement and stabilization of its credit profile in
recent years. As a result, PAN's credit profile is now more in line
with its peers in the 'bb' category.

The Negative Outlook on the Long-Term IDRs reflects the Negative
Outlook on Brazil's 'BB-' sovereign rating and the negative
operating environment. The Outlook for the National Long Term
Rating is Stable.

As the bank's Viability Rating (VR) is now higher than if the IDR
were based on institutional support, the IDRs are now based on the
bank's intrinsic creditworthiness as reflected in its VR.

KEY RATING DRIVERS

VR, IDRs AND NATIONAL RATINGS

PAN's ratings are highly influenced by its company profile, which
strengthened after it changed strategy in 2017. The ratings also
consider the bank's adequate business diversification and steady
improvements in asset quality, profitability and capitalization
metrics since 2017. However, the domestic operating environment
continues to highly influence PAN's ratings.

As a result of the bank's change in strategic focus, in 2020 52% of
PAN's loan portfolio was payroll loans, almost entirely related to
federal payroll agreements. The vehicle financing portfolio was 39%
of the total, and, despite its higher risk compared to the payroll
loan portfolio, has proved to be resilient, even in the face of
asset quality pressure from the pandemic.

Like other mid-size banks, in 2020 PAN launched a digital platform
to expand its products and services, which has resulted in better
revenue diversification and improved profitability. The bank's
digital strategy has been enhanced by several partnerships, which
has increased its client base. These efforts resulted in a 63%
increase in credit card transactions in 2020. In Fitch's opinion,
the digital operations will allow PAN to reduce revenue
concentration, improve its business mix and cross selling and
strengthen its profitability in the long term.

PAN's operating income/ risk weighted assets ratio stood at good
3.9% at YE20, compared with 2.1% at YE19 and an average of 2.3%
over the past four years. Since 2017 the institution has shown a
gradual improvement in profitability, as the bank discontinued its
less profitable operations, reduced expenses from high cost legacy
deposits (inherited from the former "Banco Panamericano"
administration) and increased its capital base, which allowed PAN
to retain a larger portion of its originated loans. The bank has
BRL 1.8 billion in legacy deposits, with an annual fixed cost of
27%, whose amortization forecast is BRL 625 million annually on
average until 2024, and a residual BRL 20 million in 2025. The
amortizations will have a positive impact on PAN's profitability
metrics since they will significantly reduce funding expenses,
strengthening the bank's margins.

Despite asset quality pressures at the beginning of the coronavirus
outbreak, PAN's asset quality ratios ended 2020 at adequate levels.
Unlike other medium-sized banks, the institution renegotiated less
than 1% of its total loans, which will limit future credit
problems. At YE20, retail NPLs decreased to 5.5% from 5.9%.
Considering the worsening of the pandemic in Brazil in 1Q21,
eventual deterioration of these ratios is possible, but Fitch
believes PAN will continue to act proactively to minimize potential
asset quality pressures.

The capital injections made in 2018 and 2020, combined with higher
income generation, strengthened the bank's capital structure and
capitalization ratios. At YE20 the bank's CET1 ratio increased to
15.9%, from 12.7% at YE19.

PAN's adjusted Loans / Deposits ratio in December 2020 was high at
152%, while most of its peers have an indicator below 100%. Despite
the gradual reduction in funding from its shareholders and the
growth trend in funding from clients, Fitch believes that this
ratio will remain worse than its peers in the medium term. Fitch
considers PAN's current liquidity position comfortable, given the
size of the bank and its growth prospects. In December 2020, liquid
assets were approximately BRL 2.5 billion and covered 57% of
customer deposits and other short-term funding.

Despite the sale of Caixa's stake in PAN, Fitch believes that the
reduction of funding lines from Caixa will be gradual and will not
cause any disruption risk, allowing the bank to replace these
resources with market funding and customer deposits. In Fitch's
view, PAN's funding costs will not substantially increase as
funding from Caixa declines since these funding lines are not
subsidized. Additionally, any potential increase in funding costs
will be compensated by the reduction of its legacy deposit
expenses.

SUPPORT RATING

On April 5, 2021 Banco BTG Pactual (BTG: BB-/Negative) and Caixa
Economica Federal (Caixa: BB-/ Negative) signed an agreement where
BTG acquires Caixa's stake in PAN, increasing its participation in
PAN to 71.7% of the total capital (100% of the voting shares).
Since this acquisition is still subject to certain conditions,
Fitch did not revise PAN's Support Rating of '4' at this time, but
Fitch will re-assess BTG's support propensity after all regulatory
approvals have been obtained.

The affirmation of PAN's Support Rating at '4' reflects the
moderate likelihood of support from Caixa and BTG. Fitch believes
that the cost of not providing support to PAN would be greater than
providing it because of the reputational risk to the banks.

Banco PAN has an ESG Relevance Score of '4' for Group Structure due
to its organizational structure as a joint venture between a
specialized bank (BTG Pactual) and a state-owned bank (Caixa). This
can complicate the implementation of certain corporate strategies.
For example, in 2017 when the bank needed capital, BTG Pactual paid
in full immediately; however, Caixa exercised its call option only
in March 2019.

RATING SENSITIVITIES

IDRs, VR and NATIONAL RATINGS

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

-- A downgrade of the sovereign;

-- Severe deterioration in PAN's asset quality or profitability
    ratios leading to a sustained decline in the bank's operating
    profit/RWA ratio below 2.5%;

-- A sustained deterioration in the bank's capitalization (CET1
    ratio falls below 12%);

-- A worsening of the bank's credit profile in relation to its
    Brazilian peers may result in changes in its national ratings.

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

-- As PAN's IDRs have a Negative Outlook, in line with those of
    the sovereign, an upgrade is highly unlikely in the short
    term;

-- Over the medium term, a positive rating action on the
    sovereign, combined with a sustained recovery in the
    macroeconomic environment, including a reduction in the
    vulnerabilities of the Brazilian economy, could trigger a
    revision of the Outlook to Stable;

-- An Improvement in the bank's credit profile in relation to its
    Brazilian peers may result in a positive rating action on its
    national ratings;

-- PAN's National Ratings could be upgraded if Fitch's view on
    BTG's support changes.

SUPPORT RATING

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

-- Weakening of the propensity or capacity of BTG and/or Caixa to
    support PAN.

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

-- A strengthening of BTG's willingness and / or capacity to
    provide support to PAN following regulatory approval for BTG's
    acquisition of PAN.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Financial Institutions and
Covered Bond issuers have a best-case rating upgrade scenario
(defined as the 99th percentile of rating transitions, measured in
a positive direction) of three notches over a three-year rating
horizon; and a worst-case rating downgrade scenario (defined as the
99th percentile of rating transitions, measured in a negative
direction) of four notches over three years. The complete span of
best- and worst-case scenario credit ratings for all rating
categories ranges from 'AAA' to 'D'. Best- and worst-case scenario
credit ratings are based on historical performance.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

Banco Pan's Support Rating considers the support of its
Shareholders (Caixa Econômica Federal and Banco BTG).

ESG CONSIDERATIONS

PAN has an ESG Relevance Score of '4' for Group Structure due to
its organizational structure as a joint venture between a
specialized bank (BTG Pactual) and a state-owned bank (Caixa). This
can complicate the implementation of certain corporate strategies.
For example, in 2017 when the bank needed capital, BTG Pactual paid
in full immediately; however, Caixa exercised its call option only
in March 2019. This factor 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.

BRAZIL: Industrial Production In February Shrank in Ten States
--------------------------------------------------------------
Richard Mann at Rio Times Online reports that industrial production
in Brazil shrank in ten of the 15 states surveyed by the Brazilian
Institute of Geography and Statistics (IBGE) from January to
February of this year.

The biggest drops were observed in Ceará (-7.7%), Para (-7.4%),
and Bahia (-5.8%), according to data released (8), according to Rio
Times Online.

The states of Paraná (-2.5%), Santa Catarina (-1.5%), Sao Paulo
(-1.3%), Rio Grande do Sul (-1.1%), Pernambuco (-1.1%), and
Amazonas (-0.9%) also showed decreases in production, 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: Luxury Sector Suffered Least in Pandemic
------------------------------------------------
Rio Times Online reports that after the first year of the Covid-19
pandemic, the resilience of the Brazilian luxury goods market is
being put to the test again.

The next five years should define whether the maxim, disseminated
in the global industry, that Brazil would be an oasis for the
sector's brands, is still valid, according to Rio Times Online.

Brazil had less retraction in the segment thanks to an elite that
maintains high consumption, the report discloses.

                        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.

DIAMOND OFFSHORE: Court Okays $2BB Plan After Axing Compromise
--------------------------------------------------------------
Law360 reports that a Texas bankruptcy judge, April 7,
2021, approved oil and gas company Diamond Offshore Drilling's $2
billion debt-swap Chapter 11 plan after rejecting a compromise
between Diamond and the U. S. trustee's office over the plan's
legal releases.

At a virtual hearing, U.S. Bankruptcy Judge David Jones approved
the plan without the proposed compromise language, saying he would
not be bound by the language and calling the U. S. trustee's
objection part of a "concerted" effort to try to limit legal
releases in bankruptcy plans.

                     About Diamond Offshore

Diamond Offshore Drilling, Inc., provides contract drilling
services to the energy industry worldwide. The company operates a
fleet of 15 offshore drilling rigs, including 4 drillships and 11
semi-submersible rigs. It serves independent oil and gas companies,
and government-owned oil companies. The company was founded in 1953
and is headquartered in Houston, Texas. Diamond Offshore Drilling
is a subsidiary of Loews Corporation. The company has major offices
in Australia, Brazil, Mexico, Scotland, Singapore, and Norway.

Diamond Offshore Drilling, Inc., along with its affiliates, filed a
voluntary petition for reorganization under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 20-32307) on April
26, 2020. The petitions were signed by David L. Roland, senior vice
president, general counsel, and secretary.

As of Dec. 31, 2019, the Debtors disclosed $5,834,044,000 in total
assets and $2,601,834,000 in total liabilities.

The case is assigned to Judge David R. Jones.

Paul, Weiss, Rifkind, Wharton & Garrison LLP and Porter Hedges LLP
are acting as the Company's legal counsel and Alvarez & Marsal is
serving as the Company's restructuring advisor. Lazard Freres & Co.
LLC is serving as financial advisor to the Company. Prime Clerk LLC
is the claims and noticing agent.

SAMARCO MINERACAO: Files for Brazil Bankruptcy Protection
---------------------------------------------------------
Gram Slattery at Reuters reports that Samarco Mineracao SA, a joint
venture between Brazilian miner Vale SA and BHP Group Ltd, has
filed for bankruptcy protection to prevent creditors' claims from
affecting its operations, Vale said in a securities filing.

The collapse of a dam at the Samarco mine complex in 2015 killed 19
people and severely polluted the Doce River with mining waste, one
of Brazil's worst environmental disasters, according to Reuters.
The facility, which resumed production in December, is the focus of
significant litigation from bondholders holding nearly $5 billion
in debt, the report notes.

"The (judicial reorganization) filing is necessary to prevent legal
actions already underway . . . . from affecting Samarco's ability
to produce, ship, receive for its exportations and to fund the
normal course of its activities," the company said, the report
relays.

Vale said the bankruptcy protection filing would not impact
Samarco's ability to pay reparations to those affected by the 2015
dam burst, the report notes.  It said out-of-court negotiations
with creditors had slowly broken down over time, the report notes.

The in-court reorganization request, filed in the state of Minas
Gerais, is roughly analogous to a Chapter 11 bankruptcy filing in
the United States, the report discloses.

Samarco has $4.7 billion of financial debt from non-related
parties, Vale said. In the years following the Samarco disaster,
Samarco had negotiated with creditors to reach a restructuring
agreement, the report says.  However, those talks slowed in 2019
after changes in dam regulations in Brazil, which materially
affected operations at Samarco, Vale said, the report relays.

In 2019, another dam burst at a Vale mine in Brazil, killing some
270 people and prompting a tightening of the rules governing mining
damns, the report notes.

A significant portion of the debt is now held by "investors active
in the distressed assets market," rather than the original
bondholders at the time of the disaster, Vale said, the report
adds.



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C H I L E
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AUTOMOTORES GILDEMEISTER: Fitch Cuts LT IDRs to 'RD'
----------------------------------------------------
Fitch Ratings has downgraded Automotores Gildemeister S.p.A.'s (AG)
Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs)
to 'RD' from 'C'. In addition, AG's senior secured notes were
affirmed at 'C'/'RR5', which reflects its below average recovery
prospects.

The downgrade to 'RD' follows the company's default on interest
payments for its USD510 million senior secured notes, and the
expiration of the cure period on April 8, 2021. AG has announced it
will initiate a reorganization and restructuring of its debt under
a pre-packaged Chapter 11 protection framework in the United
States. This process will result in material changes in the terms
and conditions of its debt.

KEY RATING DRIVERS

Voluntary Reorganization Proceedings: On April 1, 2021, AG
announced that it will file for bankruptcy protection from its
creditors in light of the effects of the coronavirus pandemic on
its already deteriorated business profile. The company will soon
file a pre-packaged plan of reorganization in order to restructure
its debt obligations under Chapter 11 of the U.S. Bankruptcy Code.
The company already has the necessary commitments from bondholders
to approve the restructuring, and does not require unanimous
consent. To this end, AG has called an extraordinary shareholders'
meeting on April 9. The company expects to file for reorganization
in the U.S. during the first half of April.

High Credit Risk: AG's restructuring process comes from its
continued high leverage and weak liquidity profile. The company
faced a sharp decline in the sales of units in 2020 due to the
pandemic, and the uncertainty of the speed of recovery going
forward. The company will need to grow EBITDA and successfully
execute its asset disposal plan to improve financial flexibility
and its leverage profile after the restructuring process. In recent
years, the industry exhibited aggressive and opportunistic behavior
from new entrants, with historical top players losing market share
in these markets due to a lack of major barriers to entry.

Pandemic Impact: AG sold 57,324 units in 2019, a 14% decline from
2018 levels. By 2020, Fitch expects a drop in the number of units
sold of approximately 30%. Due to declining sales, Fitch expects AG
to exhibit negative EBIT margins in 2020.

AG has an ESG Relevance Score of '5' for Management Strategy due to
its track record of recurring operational and debt restructuring
processes during the past years, due to challenges the company has
faced in implementing its strategy and maintaining competitive
positions within its key markets. AG's below-average execution of
its strategy has contributed to a materially weaker operational
performance and unsustainable capital structure.

AG also has an ESG Relevance Score of '5' for Group Structure due
to the strong influence on AG's owners on its management, which has
resulted in decisions related to the company's operational and
financial strategies that have been made to the detriment of its
creditors. Both the ESG Relevance Score of '5' for Management
Strategy and Governance Structure have resulted in the company
entering into a debt restructuring process for a second time during
the last five years.

DERIVATION SUMMARY

AG announced that will be filing for Chapter 11 in 2Q21. This event
follows two previous debt exchange offers completed by the company
during the last five years. AG exhibits high leverage, negative FCF
generation and tight financial flexibility. AG benefits from its
exclusive agreement to distribute Hyundai cars in Peru and Chile.
The automotive retail industry is sensitive to adverse economic
conditions and to the volatility of consumer demand, which is
influenced by consumer confidence, discretionary spending, interest
rates, credit availability and FX currency rates. AG also faces
intense competition from other car manufacturers and distributors.

Fitch does not have direct rated peers for the company. AG's
closest peers in other sectors include Brazilian fleet and car
rental industry leaders, Localiza Rent a Car S.A. (BB/Negative) and
JSL S.A (BB-/Stable), which is considered to have less volatile
industry risk. Both companies enjoy higher profitability and scale
than AG.

KEY ASSUMPTIONS

-- Revenues decline by 30% in 2020;

-- Negative EBITDA in 2020;

-- 2021 units sales at levels of around 90% of 2019 levels.

KEY RECOVERY RATING ASSUMPTIONS

Fitch has performed a going-concern recovery analysis for AG based
on the assumption that the company would be reorganized rather than
liquidated. Key going-concern assumptions include the following:

-- AG would have a going-concern EBITDA of about USD16 million.
    The going-concern EBITDA estimate reflects Fitch's view of a
    sustainable, post-reorganization EBITDA level upon which Fitch
    bases the valuation of the company.

-- A distressed multiple of 5.7x due to the exposure to the auto
    industry sector and the company's position as the sole
    distributor of the Hyundai brands in Peru and Chile. The
    recovery performed under this scenario resulted in a recovery
    rating of 'RR5' for the secured notes due in 2025.

RATING SENSITIVITIES

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

-- The filing of Chapter 11 will result in the IDR being
    downgraded to 'D'.

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

-- Fitch will rate AG following its exit from the administration
    proceedings based on its new strategy and financial profile.

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.

ESG CONSIDERATIONS

AG has an ESG Relevance Score of '5' for Management Strategy due to
its track record of recurring operational and debt restructuring
processes during the past years, due to challenges the company has
faced in implementing its strategy and maintaining competitive
positions within its key markets. AG's below-average execution of
its strategy has contributed to a materially weaker operational
performance and unsustainable capital structure.

AG also has an ESG Relevance Score of '5' for Group Structure due
to the strong influence on AG's owners on its management, which has
resulted in decisions related to the company's operational and
financial strategies that have been made to the detriment of its
creditors. Both the ESG Relevance Score of '5' for Management
Strategy and Governance Structure have resulted in the company
entering into a debt restructuring process for a second time during
the last five years.

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



=====================
E L   S A L V A D O R
=====================

BANCO AGRICOLA: Fitch Affirms 'B' LT IDR, Outlook Negative
----------------------------------------------------------
Fitch Ratings has affirmed Banco Agricola, S.A.'s (Agricola)
Long-Term Issuer Default Rating (IDR) at 'B' with a Negative Rating
Outlook and its Viability Rating (VR) at 'b-'. In addition, Fitch
has affirmed the long-term national ratings in El Salvador of the
bank and its local holding company, Inversiones Financieras Banco
Agricola, S.A. (IFBA), at 'AAA(slv)' with a Stable Rating Outlook.

KEY RATING DRIVERS

AGRICOLA

IDRS, SUPPORT RATING AND NATIONAL RATINGS

Agricola's IDRs, Support Rating (SR) and national ratings reflect
Fitch's assessment of the ability and propensity of the bank's
ultimate parent, Bancolombia S.A. (Bancolombia; BBB-/Negative), to
provide support to Agricola if required.

This assessment is highly influenced by El Salvador's sovereign
rating, which constrains Agricola's IDRs as is reflected in the
country ceiling. Agricola is rated five notches below Bancolombia's
IDR. El Salvador's 'B' country ceiling, which, according to Fitch's
criteria, captures transfer and convertibility risks, constrains
the bank's ratings to a lower level than would be possible based
solely on Bancolombia's ability and propensity to provide support.
Therefore, there could be limitations on the subsidiary's ability
to use parent support. The Negative Outlook on Agricola's IDR is in
line with the Negative Outlook on El Salvador's sovereign rating.

Fitch's propensity to support opinion is strongly influenced by the
huge reputational risk Bancolombia would be exposed to if Agricola
defaults. Bancolombia has a significant footprint in Central
America, and Agricola is one of its most important subsidiaries
there. Fitch believes that foreign bank subsidiaries in El Salvador
may be affected by reduced support due to the negative impact of
the international health contingency caused by the coronavirus
pandemic on the financial profiles of their parent companies. Fitch
will closely monitor the parent company's ability to support
Agricola as Bancolombia's IDR has a Negative Outlook.

The bank's SR reflects Fitch's opinion of limited probability of
support because of the heightened risks in the operating
environment (OE). Agricola's SR is also constrained by El
Salvador's sovereign rating as reflected in the country ceiling.
Under Fitch's criteria, Agricola's IDR of 'B' corresponds to a SR
of '4'.

Agricola's national ratings are at the highest level of the ratings
scale given the relative credit strength of Bancolombia compared to
other issuers in El Salvador.

SENIOR DEBT

Agricola's senior secured and unsecured debt National Scale Ratings
are at the same level as the issuer's national ratings as these
debt issuances' likelihood of default is the same as that of
Agricola.

VR

Agricola's VR of 'b-' is highly influenced by El Salvador's
challenging OE, which, in Fitch's view, will continue to impose
pressures on the financial profile of the bank in 2021, although
partially mitigated by its solid franchise. Fitch expects that the
magnitude of the weakening operating conditions due to the
coronavirus outbreak along with the expiration of the relief
measures will make asset quality deterioration visible and will
weigh on profitability to some extent in conjunction to an expected
slow recovery of the credit dynamic. Agricola's VR also reflects,
with high importance, its company profile characterized by its
leading franchise in the local market.

The non-performing loan (NPL) to gross loans ratio stood at 1.2% as
of December 2020. The reserve coverage of NPL increased to 392% as
Agricola made prudential loan loss allowances. In Fitch's opinion,
the challenging economic conditions will pressure Agricola's asset
quality beginning in 2Q21 when these measures expire; however, the
reserve coverage is ample enough to absorb unexpected losses.

In 2020, Agricola's profitability faced significant pressure. The
operating profits to risk-weighted assets (RWA) ratio decreased to
1.98% mainly due to a materially higher prudential provisions and a
lower net interest margin. Fitch expects Agricola's profitability
to continue to be pressured in 2021, but it should be more
resilient compared to local peers given its leading franchise.

Agricola's capitalization core metric as of December 2020 was at
its lowest historical level. The Fitch Core Capital (FCC) to RWA
ratio decreased to 12.8%. However, the bank constituted voluntary
reserves during 2020, which will allow to mitigate unexpected loan
deterioration. Since the bank will not distribute any dividends in
2021, Fitch expects the bank's capital position to remain
relatively stable in 2021.

Agricola continues to show an increasing and diversified funding
structure driven mostly by its leading franchise in deposits. The
loans to customer deposits ratio improved to 82.5% at December 2020
(December 2019: 97.2%). Fitch considers that Agricola's liquidity
risk is partially mitigated by its reasonable liquidity levels, the
ample access to alternative types of funding and its solid
franchise in deposits.

INVERSIONES FINANCIERAS BANCO AGRICOLA

IFBA's national ratings also reflect Fitch's assessment of
Bancolombia's ability and propensity to support, if needed. The
'AAA(slv)' rating shows the relative credit strength of
Bancolombia, which is rated six notches above El Salvador's
sovereign rating, relative to other issuers rated in El Salvador.
The consolidated financial profile of IFBAmirrors the financial
performance of Agricola, which accounted for 91% of its assets
(before eliminations) as of December 2020.

RATING SENSITIVITIES

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

-- Agricola's ratings remain highly sensitive to changes in El
    Salvador's sovereign rating and country ceiling. Negative
    changes in the bank's IDR and SR would mirror negative changes
    in El Salvador's sovereign rating and country ceiling;

-- Agricola's IDRs could be downgraded by a multi-notch downgrade
    of Bancolombia's IDRs;

-- Any perception by Fitch of reduced strategic importance of
    Agricola to its parent company may trigger a downgrade of its
    IDRs, SR and National Ratings. This perception would also
    apply to IFBA's national ratings;

-- A slower than expected recovery, which could lead to a lower
    OE score for Salvadoran's banks, would pressure Agricola's VR.
    Downgrades of Agricola's VR could also come from a material
    deterioration in the bank's financial profile that results in
    sustained operating losses, and an FCC-to-RWA ratio
    consistently below 10%;

-- Agricola's senior secured and unsecured debt National Ratings
    would be downgraded in the event of negative rating actions on
    the bank's National Ratings.

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

-- The Negative Outlook on Agricola's IDR indicate positive
    actions in the bank's ratings are highly unlikely in the
    foreseeable future. However, over the medium term, Agricola's
    IDR, SR and VR, could be upgraded in the event of an upgrade
    of El Salvador´s sovereign rating and country ceiling;

-- The upside potential of the VR is limited due to the
    challenging OE as a result of the impact of the economic
    disruption from the coronavirus outbreak. The VR could only be
    upgraded over the medium term by an improvement of the OE
    accompanied by a consistent financial metrics while
    maintaining it strong company profile;

-- The national ratings are at the highest level of the national
    rating scale and therefore have no upside potential.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Financial Institutions and
Covered Bond issuers have a best-case rating upgrade scenario
(defined as the 99th percentile of rating transitions, measured in
a positive direction) of three notches over a three-year rating
horizon; and a worst-case rating downgrade scenario (defined as the
99th percentile of rating transitions, measured in a negative
direction) of four notches over three years. The complete span of
best- and worst-case scenario credit ratings for all rating
categories ranges from 'AAA' to 'D'. Best- and worst-case scenario
credit ratings are based on historical performance.

SUMMARY OF FINANCIAL ADJUSTMENTS

Pre-paid expenses were reclassified as intangibles and deducted
from the bank's total equity.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

Banco Agricola's ratings and Inversiones Financieras Banco
Agricola's national ratings are linked to Bancolombia's ratings.

ESG CONSIDERATIONS

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

BANCO DAVIVIENDA: Fitch Affirms 'B' LongTerm IDR, Outlook Negative
------------------------------------------------------------------
Fitch Ratings has affirmed Banco Davivienda Salvadoreno, S.A.'s
(Davivienda Sal) Long-Term Issuer Default Rating (IDR) at 'B' with
a Negative Rating Outlook and its Viability Rating (VR) at 'b-'.
Fitch also affirmed the long-term national ratings of Davivienda
Sal and its holding company, Inversiones Financieras Davivienda,
S.A. (IF Davivienda) at 'AAA(slv)' with a Stable Rating Outlook.
The full list of rating actions is at the end of the press
release.

KEY RATING DRIVERS

Davivienda Sal

IDRS, Support Rating and National Ratings

Davivienda Sal's IDRs, Support Rating (SR) and national ratings are
driven by Fitch's opinion regarding to the potential support it
would receive from its parent, Banco Davivienda S.A. (Davivienda;
BBB-/Negative), if required.

Fitch's assessment of the shareholder's support ability is strongly
influenced by El Salvador's country risk constraints, captured in
its 'B' Country Ceiling. This, according to Fitch's criteria,
captures transfer and convertibility risks, restricting the bank's
ratings at a lower level than would be possible based solely on
Davivienda's ability and propensity to provide support, resulting
in its IDR being five notches lower than that of its parent. This
also could represent limitations on subsidiary's ability to use
shareholder support. The Negative Rating Outlook on Davivienda
Sal's IDR is aligned to the same Outlook on El Salvador's sovereign
rating.

Fitch also factors into its analysis of propensity to support, with
great importance, the huge reputational risk that Davivienda Sal's
default would constitute for its owner and its subsidiaries,
damaging its franchise. It is worth mentioning that the legal
contingency facing Davivienda Sal is being resolving, and Fitch
believes it will not significantly affect its financial performance
and reputation.

Fitch considers foreign banks' subsidiaries in El Salvador may be
affected by reduced support due to the pandemic's impact on the
business and financial profiles of their parents. However, their
relatively small size compared with these would facilitate support,
if necessary. Fitch will closely monitor the shareholders'
propensity and ability to support their subsidiaries.

Davivienda Sal's SR of '4' reflects Fitch's opinion of the limited
probability of support due to heightened risks in the operating
environment (OE). It is driven by Davivienda's ability and
propensity to provide support, but is capped by the Country
Ceiling.

The entity's national ratings are at the highest level of the
ratings scale, reflecting the relative credit strength of its
parent in relation to other rated issuers in El Salvador.

Senior Debt

The senior unsecured and secured debt national ratings are at the
same level as the bank's ratings, since Fitch believes the
likelihood of default of these is the same as Davivienda Sal.

VR

Davivienda Sal's VR is highly influenced by the Salvadoran OE,
which Fitch estimates will remain challenging in 2021 and could put
pressure on its asset quality and profitability, due to low
business dynamism and the deterioration of the debtors' payment
capacity. The bank's VR is also highly influenced by its company
profile due to its strong local franchise as the third-largest
player by assets in the banking system, and market share of 14.4%
as of December 2020.

Fitch estimates the entity's loan quality will be affected during
2021 without the relief measures, which have not allowed a view of
the full impact of the health crisis, although it would expect the
actions taken to lessen it. Davivienda Sal's moderate risk appetite
led it to enter the crisis with appropriate asset quality. As of
December 2020, the nonperforming loans (NPL)-to-gross loans ratio
was 2.0% (industry: 1.6%), while additional reserves for NPL made
prudently reached 155.6%.

The agency believes Davivienda Sal's profitability could continue
under pressure in 2021 and show further decline due to higher than
expected loan impairment charges and slow economic activity
recovery. Profitability remains modest and below the system and
some local and regional peers. In 2020, its operating
profit-to-risk weighted assets (RWA) ratio was 0.6% (industry:
1.0%), down from 0.9% in 2019, mainly driven by higher prudential
loan loss provisions related to the crisis.

In Fitch's assessment, Davivienda Sal's capitalization benefits
from its parent's support and provides a reasonable cushion to face
the possible effects of the pandemic. In 2020, the Fitch Core
Capital (FCC)-to-RWA metric continued its downward trend, moving to
12.9% from 13.6% in 2019, one of the lowest among local banks of
comparable size.

The bank's diversified funding structure is favored by its robust
deposit franchise, reflected in a broad deposit base (82% of total
funding) and good access to different financing alternatives that
are supported by synergies obtained from its parent, providing
flexibility to Davivienda Sal in the prevailing period. A deposit
growth pace exceeding loan increases resulted in an improvement in
the loan-to-deposit ratio to 98.6% in 2020.

IF Davivienda

IF Davivienda's national ratings are based on the ability and
propensity of its shareholder, Davivienda, to support it, and they
reflect the relative strength of its owner, compared with other
rated issuers in the country. IF Davivienda's consolidated
financial profile mirrors the financial performance of Davivienda
Sal, which represented 98.5% of its assets in 2020.

RATING SENSITIVITIES

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

-- Davivienda Sal's ratings remain sensitive to changes in El
    Salvador's sovereign ratings and Country Ceiling. Negative
    changes in the bank's IDR and SR would mirror negative
    movements in El Salvador's sovereign rating and Country
    Ceiling.

-- Davivienda Sal's IDRs could be downgraded by a multinotch
    downgrade of Davivienda's IDRs.

-- Any perception by Fitch of reduced strategic importance of
    Davivienda Sal for its parent may trigger a downgrade of its
    IDRs, SR and national ratings. This perception would also
    apply to IF Davivienda's national ratings.

-- A recovery slower than expected, which could lead to a lower
    OE score for Salvadoran's banks, would pressure Davivienda
    Sal's VR. Downgrades in Davivienda Sal's VR could also come
    from a material deterioration in its financial profile,
    resulting in sustained operating losses and an FCC-to-RWA
    ratio consistently below 10%.

-- Davivienda Sal's senior secured and unsecured debt national
    ratings would be downgraded in the event of negative rating
    actions on the bank's national ratings.

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

-- The Negative Rating Outlook on Davivienda Sal's IDR indicates
    that positive actions on its ratings are highly unlikely in
    the foreseeable future. However, over the medium term,
    Davivienda Sal's IDR, SR and VR could be upgraded in the event
    of an upgrade to El Salvador´s sovereign rating and Country
    Ceiling.

-- The upside potential of the VR is limited due to the
    challenging OE due to the coronavirus pandemic. The VR could
    only be upgraded over the medium term as a result of
    improvement within the OE accompanied by improvement in
    Davivienda Sal's financial metrics, while maintaining its good
    company profile.

-- The national ratings of Davivienda Sal and IF Davivienda are
    at the highest level of the national rating scale and
    therefore have no upside potential.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Financial Institutions and
Covered Bond issuers have a best-case rating upgrade scenario
(defined as the 99th percentile of rating transitions, measured in
a positive direction) of three notches over a three-year rating
horizon; and a worst-case rating downgrade scenario (defined as the
99th percentile of rating transitions, measured in a negative
direction) of four notches over three years. The complete span of
best- and worst-case scenario credit ratings for all rating
categories ranges from 'AAA' to 'D'. Best- and worst-case scenario
credit ratings are based on historical performance.

SUMMARY OF FINANCIAL ADJUSTMENTS

Prepaid expenses were reclassified as intangibles and deducted from
total equity to reflect their low absorption capacity.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

Davivienda Sal's and IF Davivienda's ratings are based on the
potential support they would receive from their parent, Davivienda,
if needed. Davivienda's Long-Term Foreign Currency IDR of 'BBB-',
with a Negative Rating Outlook, shows its ability to provide
support.

ESG CONSIDERATIONS

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



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

STONEMOR INC: Units Complete $6.2M Sale of Assets to Clearstone
---------------------------------------------------------------
StoneMor Inc.'s wholly-owned indirect subsidiaries, StoneMor Oregon
LLC, StoneMor Oregon Subsidiary LLC and StoneMor Washington, Inc.,
completed the previously announced sale of substantially all of the
company's assets in Oregon and Washington.

The assets, which consist of nine cemeteries, 10 funeral
establishments and four crematories, were sold pursuant to the
terms of an Asset Sale Agreement with Clearstone Memorial Partners,
LLC for a net cash purchase price of $6.2 million, subject to
certain adjustments.  

StoneMor Inc. intends to use at least 80% of the net proceeds from
such sale and the net proceeds from certain other real estate sales
to redeem an additional $6.7 million of principal amount of its
9.875%/11.500% Senior Secured PIK Toggle Notes due 2024 in
accordance with the terms of the indenture governing those notes.

                          About StoneMor Inc.

StoneMor Inc. (http://www.stonemor.com),headquartered in Bensalem,
Pennsylvania, is an owner and operator of cemeteries and funeral
homes in the United States, with 313 cemeteries and 80 funeral
homes in 26 states and Puerto Rico.  StoneMor's cemetery products
and services, which are sold on both a pre-need (before death) and
at-need (at death) basis, include: burial lots, lawn and mausoleum
crypts, burial vaults, caskets, memorials, and all services which
provide for the installation of this merchandise.

StoneMor reported a net loss of $8.36 million for the year ended
Dec. 31, 2020, compared to a net loss of $151.94 million for the
year ended Dec. 31, 2019.  As of Dec. 31, 2020, the Company had
$1.63 billion in total assets, $1.72 billion in total liabilities,
and a total owners' equity of($92.41 million).



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

ARCOS DORADOS: Fitch Affirms 'BB' LT IDR, Outlook Stable
--------------------------------------------------------
Fitch Ratings has affirmed Arcos Dorados Holdings Inc.'s Long-Term
Foreign Currency Issuer Default Rating (IDR) and senior unsecured
notes at 'BB'. The Rating Outlook is revised to Stable from
Negative.

The Rating Outlook revision to Stable reflects the expected
improvement of Arcos' credit metrics due to an improvement in
operating conditions during 2021 relative to 2020 in most of the
countries in which the company operates, as well as an improved
liquidity position, resulting from the successful refinancing of
its short-term debt in 2020.

KEY RATING DRIVERS

EBITDA Recovery: Arcos' performance is expected to improve in 2021
due to the economic recovery in most regions where the company
operates and a gradual opening of dine-in services as mandated
restrictions are gradually relaxed. Revenues are projected to
increase toward USD2.4billion in 2021 from USD2 billion in 2020,
while EBITDA is forecast to reach about USD200 million (USD68
million in 2020), which is still lower than the pre-pandemic EBITDA
of about USD290 million, as not all stores are fully opened. Fitch
estimates 9% of restaurants are still closed (primarily in
Brazil).

Deleveraging Expected: Arcos' lease-adjusted net leverage should
decline to about 4.3x in 2021 from 6.9x in 2020 due to higher
EBITDA and neutral FCF. Despite challenges related to the
coronavirus during 2020, net debt increased by only USD35 million
as a result of measures implemented by the company to reduce its
operating expenses, dividends and capex. The company also benefited
from debt derivatives gains that had a positive impact on net debt
of USD59 million, in line with the company's policy to hedge part
of its U.S. dollar-denominated debt.

Neutral FCF: Fitch expects Arcos to manage cash conservatively and
FCF to be neutral because of higher capex. FCF is forecast to reach
USD6 million in 2021, compared with negative USD81 million in 2020,
while capex is expected to reach USD130 million in 2021, compared
with USD86 million in 2020. Capex is mainly related to openings and
store modernization, primarily in Brazil. The company opened nine
new restaurants in 2020 at the end of the fourth quarter, the
company had 733 Experience of the Future restaurants.

Country Ceiling: Arcos is headquartered in Argentina (CCC), but its
cash flow generation is heavily concentrated in Brazil
(BB-/Negative Outlook), which accounted for 43% of revenue and 64%
of EBITDA in 2020. The Long-Term Foreign Currency IDR is not
constrained by Brazil's 'BB' Country Ceiling, given the company's
ability to cover hard currency debt service with cumulative cash
flow from higher rated countries, such as Chile, Mexico, Colombia,
Uruguay and Panama; cash held abroad; and committed bank lines.

Solid Business Profile: Arcos' ratings reflect a solid business
position as the sole franchisee of McDonald's restaurants across
Latin America. Arcos benefits from the McDonald's brand but faces
various regional economic challenges. The company operates or
franchises 2,236 McDonald's restaurants and 243 McCafes in 20
countries as of YE 2020. About 70% of these restaurants are
operated by Arcos, while the remainder are franchised restaurants
during the same period.

McDonald's Franchise Strength: The ratings also incorporate the
strength of McDonald's as a franchisor and the longstanding
relationship with Arcos' owners and management. The master
franchise agreement sets strict strategic, commercial and financial
guidelines for Arcos' operations, which support the operating and
financial stability of the business and the underlying value of the
McDonald's brand in the region.

DERIVATION SUMMARY

Arcos' ratings reflect its solid business position as the sole
franchisee of McDonald's restaurants across Latin America,
benefiting from the iconic McDonald's brand. The company is
confronted by several economic challenges facing the region and
most of Arcos' EBITDA is generated in Brazil. The company's
geographical diversification and presence in several countries in
Latin America outside of Brazil and Argentina support the Foreign
Currency IDR.

The business profile is constrained by the company's smaller size
relative to its international peers such as McDonald's, Starbucks
Corporation (BBB/Stable) and Darden Restaurants, Inc.
(BBB-/Positive). The company also reported lower profitability than
its peers due to its presence in less mature countries. The
company's leverage is in line with the 'BB' rating category.

KEY ASSUMPTIONS

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

-- EBITDA of about USD200 million in 2021;

-- Capex of USD130 million in 2021;

-- No dividends payments in 2021;

-- Lease-adjusted net leverage moving toward 4.3x by 2021.

RATING SENSITIVITIES

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

-- Net lease-adjusted debt levels below 3.5x on a sustained
    basis;

-- Strong liquidity and refinancing of the 2023 bond.

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

-- Adjusted net leverage exceeding 4.5x on a sustained basis
    beyond 2021;

-- Weak liquidity position.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: Fitch views Arcos' liquidity as strong due to
its solid cash position, committed bank lines and manageable
long-term debt maturity profile. The company's debt consists of two
U.S. notes maturing in 2023 and 2027. The company had USD166
million in cash and cash equivalents as of Dec. 31, 2020, and USD25
million of undrawn committed revolving credit facility with JP
Morgan. The company had no short-term debt as of YE 2020.

ESG CONSIDERATIONS

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

SANCOR SEGUROS: Fitch Affirms 'B+' IFS Rating, Outlook Stable
-------------------------------------------------------------
Fitch Ratings has affirmed Sancor Seguros S.A.'s (Sancor) Insurer
Financial Strength (IFS) Rating at 'B+' with a Stable Rating
Outlook.

This rating affirmation is based on the company's stable business
profile and favorable leverage indicators. The rating is also
impacted by high exposure to sovereign securities and Fitch's view
regarding its financial flexibility.

KEY RATING DRIVERS

The rating reflects a moderate business profile based on Sancor's
market position as a private insurer, as well as its business risk
profile and premium diversification that is aligned to that of the
domestic industry. The Uruguayan insurance industry is highly
concentrated in a one state-related company (69% of gross written
premium); therefore, the operating scale of private insurers is
limited. As of YE20, Sancor's net written premium and equity were
UYU32.0 million and UYU10.6 million, respectively. This operating
scale is considered less favorable and constrains Fitch's view of
Sancor's business profile, which is assessed at 'b'.

Sancor's technical income went from a loss of UYU126 million in
2019 to a loss of UYU83 million in 2020 due to an improved loss
ratio in auto insurance (related to the coronavirus lockdowns) and
significant reinsurance recoveries in miscellaneous business. Along
with a stable net expense ratio, the combined ratio dropped to
104.4% from 110.4%, which compared favorably to the last five
years' average of 111.4%. The technical improvement and slightly
higher financial income resulted in a bottom line income of UYU57
million, along with a return on average equity (ROAE) of 15.4%,
positioning it in the upper range of Fitch's insurance methodology.
Fitch assesses this credit factor at 'bb-', weighing the volatility
shown in recent periods.

In developing countries such as Uruguay, Fitch acknowledges that
funding options may be limited to common equity and that market
access may be constrained during stressful periods. As of YE20,
Sancor's main funding source was equity and the company had no
financial debt. The debt service and financial flexibility credit
factor is scored at 'b-', reflecting Fitch's view of Sancor's
ultimate parent's industry profile and operating environment in
Argentina.

The company's investment portfolio is 83% concentrated in sovereign
securities. Fitch rates Uruguay at 'BBB-' with a Negative Rating
Outlook. Therefore, a downgrade in the sovereign will push these
investments into the non-investment-grade category, impacting
Sancor's investment and liquidity ratios. Currently, Sancor's
sovereign concentration positions this credit factor in the 'bb'
category; however, a downgrade in the sovereign would pressure the
score.

Sancor's reinsurance exposure has decreased. As of YE20, the
reinsurance recoverable-to-capital ratio was 68.8%, compared to
199.7% as of YE19. The decrease was due to lower loss reserves and
a smaller reinsurance participation. Fitch scores this credit
factor at 'bbb', considering the high creditworthiness of
reinsurance counterparties.

RATING SENSITIVITIES

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

-- An improved business profile driven by larger operating scale
    and improved diversification.

-- Increasing net income retained at the company.

-- Positive changes in Fitch's view about the parent's
    creditworthiness.

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

-- Considerable deterioration in Uruguay's industry profile and
    operating environment driven by sovereign downgrades.

-- Consistent negative income metrics that pressure the leverage
    indicators or considerable deterioration in Fitch's investment
    assessment.

-- Negative changes in Fitch's view about the parent's
    creditworthiness.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Financial Institutions and
Covered Bond issuers have a best-case rating upgrade scenario
(defined as the 99th percentile of rating transitions, measured in
a positive direction) of three notches over a three-year rating
horizon; and a worst-case rating downgrade scenario (defined as the
99th percentile of rating transitions, measured in a negative
direction) of four notches over three years. The complete span of
best- and worst-case scenario credit ratings for all rating
categories ranges from 'AAA' to 'D'. Best- and worst-case scenario
credit ratings are based on historical performance.

ESG CONSIDERATIONS

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



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

LATAM: Debt Issuers Rush to Secure Current Interest Rates
---------------------------------------------------------
Rio Times Online reports that Max Volkov, head of debt capital
markets for Latin America at Bank of America said: "We will start
to see a substantial improvement in issuance."  

"April and May should be busier this year than in previous years
because interest rates are going up," he said in an interview,
reports Rio Times Online.

According to data compiled by Bloomberg, governments and companies
have borrowed about US$50.4 billion so far this year, excluding
local issues, the report notes.  That's the highest volume since
2017 when they raised US$57.2 billion in the same period, the
report adds.

Latin America's international bond issuance shows the fastest pace
since 2017, and there is no slowdown in sight as issuers rush to
secure current interest rates before they rise too much, the report
adds.


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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
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
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of the same firm for the term of the initial subscription or
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