/raid1/www/Hosts/bankrupt/TCRLA_Public/210420.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 20, 2021, Vol. 22, No. 73
Headlines
A R G E N T I N A
PROVINCE OF NEUQUEN: S&P Affirms 'CCC+' LT ICR, Outlook Stable
YPF ENERGIA: S&P Raises ICR to 'CCC+' on Debt Exchange Completion
B R A Z I L
BRAZIL: BRF Begins to Import Corn From Argentina and Paraguay
BRAZIL: Sells 90% of Last Coffee Crop Before New Harvest
C H I L E
LATAM BONDHOLDERS: White & Castle Represents LATAM Bondholders
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Fall in 2020 the Most Intense Since 2003 Crisis
DOMINICAN REPUBLIC: Labor Unions Announce 'Struggle' for Wage Hike
P A N A M A
CFG INVESTMENTS 2021-1: S&P Assigns B (sf) Rating to Class D Notes
P U E R T O R I C O
HOGAR CARINO: Case Summary & 20 Largest Unsecured Creditors
U R U G U A Y
BANQUE HERITAGE: S&P Affirms 'B+' Long-Term ICR, Outlook Stable
V E N E Z U E L A
VENEZUELA: Revenue Stream to Increase Thanks to Oil Price Hike
- - - - -
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A R G E N T I N A
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PROVINCE OF NEUQUEN: S&P Affirms 'CCC+' LT ICR, Outlook Stable
--------------------------------------------------------------
S&P Global Ratings affirmed its 'CCC+' long-term foreign and local
currency issuer credit ratings on the province of Neuquen. The
outlook remains stable. S&P also affirmed its issue-level ratings
on the province at 'CCC+'.
Outlook
The stable outlook reflects lower risks of default in the next 12
months following the province's debt restructuring of its
international debt 2020, which reduced debt service obligations
sharply.
Downside scenario
S&P said, "We could downgrade the province in the next 12 months if
a weaker-than-expected budgetary performance or liquidity position,
including a more restrictive access to domestic debt markets,
increases the risk of default. Given that the market and economic
conditions in Argentina remain stressed, we could consider any
restructuring or debt exchange not perceived as oportunistic and
entailing net present value losses as tantamount to default.
Argentina's creditworthiness and our 'CCC+' transfer and
convertibility (T&C) assessment of it continue to cap our ratings
on the province." A downgrade of Argentina or its T&C would result
in a downgrade of Neuquen.
Upside scenario
During the next 12 months, S&P could upgrade Neuquen as a result of
Argentina's improved creditworthiness and T&C, along with a
strengthening of Neuquen's budgetary performance and liquidity
position, including greater certainty about its capacity to tap
domestic debt markets.
Rationale
On April 6, 2021, Neuquen issued ARP2.3 billion due on April 7,
2022, with an interest rate of BADLAR (local reference rate) plus
8%. The province used new issuance to exchange for ARP1.3 billion
in bonds maturing on April 7, 2021. Fresh debt proceeds totaled
ARP1 billion.
S&P considers the exchange as oportunistic, given that the province
had enough liquidity and market access to meet the total debt
service of ARP1.7 billion on April 7, 2021. As of Feb. 28, 2021,
Neuquen's cash holdings were more than twice the debt service due
in April. The province also made the exchange more attractive by
paying a higher spread over BADLAR. The province paid in time and
in full to those bondholders that opted out of the exchange.
S&P said, "Our ratings continue to reflect Neuquen's fragile
budgetary performance and liquidity position, and the weak debt
payment culture, given the recent restructuring of its
international debt, which we viewed as distressed. However, the
latter will significantly reduce the province's debt service during
2021 and 2022, mitigating risks of new defaults during this period.
The ratings also reflect our belief that Neuquen's debt profile is
unsustainable in the long term, absent the unexpected improvement
in economic and financial conditions in the province and
Argentina.
"Moreover, the Argentine local and regional governments'
institutional framework, which we consider as very volatile and
underfunded, limits the province's capacity for fiscal planning,
and exposes it to a fiscal stress transfer from higher governmental
tiers. In addition, amid a weak external position and tight foreign
exchange controls, the rating takes into consideration our T&C
assessment on Argentina."
In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the methodology
applicable. At the onset of the committee, the chair confirmed that
the information provided to the Rating Committee by the primary
analyst had been distributed in a timely manner and was sufficient
for Committee members to make an informed decision.
After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.
The committee's assessment of the key rating factors is reflected
in the Ratings Score Snapshot above.
The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision. The
views and the decision of the rating committee are summarized in
the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.
Ratings List
RATINGS AFFIRMED
Neuquen (Province of)
Issuer Credit Rating CCC+/Stable/--
Neuquen (Province of)
Senior Secured CCC+
Senior Unsecured CCC+
YPF ENERGIA: S&P Raises ICR to 'CCC+' on Debt Exchange Completion
-----------------------------------------------------------------
On April 15, 2021, S&P Global Ratings raised its issuer credit
rating on YPF Energia Electrica S.A. (YPFEE) to 'CCC+' from 'SD'
and the issue-level rating to 'CCC+' from 'CCC-'. S&P's 'CCC+'
transfer and convertibility (T&C) assessment of Argentina limits
now the ratings on the company.
The outlook on YPFEE is stable, mirroring that on the sovereign.
The outlook also incorporates S&P's expectations of the significant
reduction in leverage starting in 2021 and on, given the entrance
into operation and subsequent ramp-up of new power plants.
S&P said, "We believe that short-term refinancing risks have
ceased, given that the central bank restricted corporations from
accessing dollars needed to service foreign debt until December
2021. In addition, YPFEE doesn't have large maturities in dollars
until 2026, when its $400 million international bond starts to
amortize.
"In line with our expectations, YPFEE completed three projects with
a total installed capacity of 411 megawatts (MW) in the third and
fourth quarters of 2020--the El Bracho steam turbine, and La Plata
Cogeneration II and Los Teros wind farms. In addition, other three
projects totaling 174 MW are on track for completion during the
first half of 2021. As a result, we expect the company to
significantly reduce its leverage in 2021 and 2022 through debt
amortizations, lower capex this year—because of no large pending
projects in the pipeline--and greater electricity output, which
will increase cash flows and strengthen its debt repayment
capacity. We expect EBITDA to increase to close to $300 million
from about $224 million in 2020, causing debt to EBITDA to drop to
less than 3x in 2021 from above 5.5x in 2020. In addition, we now
expect a stronger liquidity position and the company to generate
free operating cash flows in the short to medium term."
All of YPFEE's operations are located in Argentina, exposing the
company to exacerbating business conditions and exchange rates, and
spiking interest rates. In addition, S&P considers the overall
regulatory framework for utilities in Argentina as opaque, given a
track- record of abrupt changes and government intervention.
Therefore, S&P continues to cap the rating on the company at
Argentina's T&C assessment.
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B R A Z I L
===========
BRAZIL: BRF Begins to Import Corn From Argentina and Paraguay
--------------------------------------------------------------
Rio Times Online reports that from January to March, imports
increased 90% over the previous year, according to data from the
Ministry of Industry and Trade.
BRF (BRFS3), the country's largest poultry processor, has bought
two shipments of corn from Argentina to help control costs, the
company said, without disclosing the volumes, according to Rio
Times Online. BRF also said it has been importing corn from
Paraguay.
There is typically plenty of corn in Brazil, one of the world's
largest producers and the commodity's second largest exporter. But
now, supply is tight and prices are rising, which leads poultry and
pork processors to import corn for feed, the report relates.
While small volumes of trade among major grain exporters is not
atypical, Brazil has increased corn and soybean imports after
strong Chinese demand depleted inventories, notes the report.
Meanwhile, domestic corn prices have more than doubled in the past,
the report adds.
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: Sells 90% of Last Coffee Crop Before New Harvest
--------------------------------------------------------
Rio Times Online reports that marketing of Brazil's coffee 2020/21
(July/June) crop reached 90% of the total projected by April 13th,
reported consulting firm Safras & Mercado on Thursday, April 15th,
at a time when producers have prepared for the harvest of the new
season.
Safras & Mercado data shows an increase of 3 percentage points in
sales compared to the previous month, slightly above the rate at
the same time last year for the 2019/20 crop (89%) and also the
average of the past five years for the period (88%), the report
relays.
"The arrival of the Brazilian 2021 crop explains the advance in the
flow of sales," Safras & Mercado consultant Gil Barabach said in a
note, according to Rio Times Online.
Some producers of canefora coffee (robusta or conilon), which
usually start work before those who grow arabica, have already
started, 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.
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C H I L E
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LATAM BONDHOLDERS: White & Castle Represents LATAM Bondholders
--------------------------------------------------------------
In the Chapter 11 cases of LATAM Airlines Group S.A., et al., the
law firm of White & Case LLP submitted a fourth verified statement
under Rule 2019 of the Federal Rules of Bankruptcy Procedure, to
disclose that they are representing the Ad Hoc Group of LATAM
Bondholders.
The Ad Hoc Group of certain holders of the 6.875% Senior Notes due
2024 and 7.00% Senior Notes due 2026, each issued by LATAM Finance
Limited, and the Series A Local Bonds due 2028, Series B Local
Bonds due 2028, Series C Local Bonds due 2022, Series D Local Bonds
due 2028, and the Series E Local Bonds due 2029.
As of April 15, 2021, members of the Ad Hoc Group of LATAM
Bondholders and their disclosable economic interests are:
140 Summer Partners LP
1450 Broadway 28th Floor
New York, NY 10018
* Holder of $12,505,000 of 2024 Bonds, $26,267,000 of 2026 Bonds,
other unsecured claims of $5,000,000, and 1,173,119 shares of
common stock
Avenue Capital Management II, L.P.
11 West 42nd Street, 9th Floor
New York, NY 10036
* Holder of $7,550,000 of 2024 Bonds, $500,000 of 2026 Bonds,
$20,615,000 in 2023 EETCs, $1,000,000 in 2027 EETCs, and
$107,955,000 in other unsecured claims
Aurelius Capital Management, L.P.
535 Madison Avenue, 31st Floor
New York, NY 10022
* Holder of $24,720,000 of 2024 Bonds, $24,920,000 of 2026 Bonds,
and 100 shares of common stock
BICE VIDA Compania de Seguros S.A.
Av. Providencia 1806, Metropolitana
Chile Santiago, Region
* Holder of $750,000 of 2024 Bonds
Caius Capital LLP
135-137 New Bond Street
London, W1S 2TQ
* Holder of $25,719,000 of 2024 Bonds and $22,943,000 of 2026
Bonds
Canyon Capital Advisors LLC
2000 Avenue of the Stars, 11th Floor
Los Angeles, CA 90067
* Holder of $65,910,000 of 2024 Bonds and $41,640,000
of 2026 Bonds
Centerbridge Partners L.P.
375 Park Avenue
New York, NY 10152
* Holder of $10,961,000 of 2024 Bonds, $9,069,000 of 2026 Bonds,
$30,000,000 in Tranche A DIP Commitments, $16,000,000 in Tranche
C DIP Commitments, and other unsecured claims of $2,066,790
Citigroup Global Markets, Inc.
388 Greenwich St., Tower Building
New York, NY 10013
* Holder of $8,618,000 of 2024 Bonds, $18,533,000 of 2026 Bonds,
$234,504 of 2023 EETCs, $19,016,772 of 2027 EETCs, $24,750,000
of the Revolving Credit Facility,3 and other unsecured claims of
$80,760,010
Compania de Seguros Confuturo S.A.
Av. Apoquindo 6750, Piso 19
Las Condes, Region Metropolitana, Chile
* Holder of $5,000,000 of 2026 Bonds
Corvid Peak Capital Management, LLC
299 Park Ave., 13th Floor
New York, NY 10171
* Holder of $2,000,000 of 2024 Bonds and $1,064,000 of 2026 Bonds
D.E. Shaw Galvanic Portfolios, L.L.C.
1166 Avenue of the Americas
New York, NY 10036
* Holder of $1,000,000 of 2026 Bonds
Diameter Capital Partners, LP
24 W 40th Street, 5th Floor
New York, NY 10018
* Holder of $51,719,000 of 2024 Bonds, $37,540,000 of 2026 Bonds,
$51,700,000 of the 2027 EETCs, $12,000,000 of Tranche A DIP
Commitments, and $5,000,000 of Tranche C DIP Commitments
DSC Meridian Capital LP
888 Seventh Ave.
New York, NY 10016
* Holder of $5,395,000 of 2024 Bonds and $5,502,000 of 2026 Bonds
Grosvenor Capital Management, L.P.
900 North Michigan Avenue, Suite 1100
Chicago, IL 60611
* Holder of $34,930,000 of 2024 Bonds and $13,180,000 of 2026
Bonds
King Street Capital Management, L.P.
299 Park Avenue, 40th Floor
New York, NY 10171
* Holder of $10,000,000 of 2024 Bonds, $35,000,000 of 2026 Bonds,
$5,000,000 of Tranche A DIP Commitments, $5,000,000 of Tranche C
DIP Commitments, and $41,142,645 of other unsecured claims
Livello Capital Management LP
1 World Trade Center, 85th Floor
New York, NY 10007
* Holder of $2,650,000 of the 2024 Bonds and $2,400,000 of 2026
Bonds
Monarch Alternative Capital LP
535 Madison Avenue
New York, NY 10022
* Holder of $20,873,000 of the 2024 Bonds and $69,127,000 of 2026
Bonds
Morgan Stanley & Co., LLC
1585 Broadway, 2nd Floor
New York, NY 10036
* Holder of $8,350,000 of the 2024 Bonds, $11,900,000
of 2026 Bonds, and $5,000,000 of the Spare Engine Facility
Olympus Peak Asset Management LP
745 Fifth Ave., Suite 1604
New York, NY 10151
* Holder of $53,830,000 of the 2024 Bonds, $20,514,000 of 2026
Bonds, $1,000 of 2027 EETCs, and $57,524,324 of other unsecured
Claims
Paloma Partners Management Company
Two American Lane
Greenwich, CT 06831
* Holder of $6,380,000 of the 2024 Bonds, $7,080,000 of 2026
Bonds, and $5,000,000 in other unsecured claims
Pentwater Capital Management LP
614 Davis Street
Evanston, IL 60201
* Holder of $7,240,000 of the 2024 Bonds, $20,876,000 of 2026
Bonds, and $10,000,000 in other unsecured claims.
Redwood Capital Management, LLC
910 Sylvan Avenue
Englewood Cliffs, NJ 07632
* Holder of $15,900,000 of 2024 Bonds, $11,900,000 of 2026 Bonds,
$20,000,000 of Tranche A DIP Commitments, and $10,000,000 of
Tranche C DIP Commitments
Counsel for the Ad Hoc Group of LATAM Bondholders can be reached
at:
White & Case LLP
John K. Cunningham, Esq.
Gregory Starner, Esq.
Mark P. Franke, Esq.
1221 Avenue of the Americas
New York, NY 10020
Telephone: (212) 819-8200
Facsimile: (212) 354-8113
E-mail: jcunningham@whitecase.com
gstarner@whitecase.com
mark.franke@whitecase.com
Richard S. Kebrdle, Esq.
Southeast Financial Center, Suite 4900
200 South Biscayne Boulevard
Miami, FL 33131
Telephone: (305) 371-2700
Facsimile: (305) 358-5744
Telephone: rkebrdle@whitecase.com
E-mail: rkebrdle@whitecase.com
A copy of the Rule 2019 filing is available at
https://bit.ly/3mYXE4z at no extra charge.
About LATAM Airlines
LATAM Airlines Group S.A. -- http://www.latam.com/-- is a
pan-Latin American airline holding company involved in the
transportation of passengers and cargo and operates as one unified
business enterprise.
LATAM Airlines Group S.A. is the largest passenger airline in South
America. Before the onset of the COVID-19 pandemic, LATAM offered
passenger transport services to 145 different destinations in 26
countries, including domestic flights in Argentina, Brazil, Chile,
Colombia, Ecuador and Peru, and international services within Latin
America as well as to Europe, the United States, the Caribbean,
Oceania, Asia and Africa.
LATAM Airlines Group S.A. and its 28 affiliates sought Chapter 11
protection (Bankr. S.D.N.Y. Lead Case No. 20-11254) on May 25,
2020. Affiliates in Chile, Peru, Colombia, Ecuador and the United
States are part of the Chapter 11 filing.
The Debtors disclosed $21,087,806,000 in total assets and
$17,958,629,000 in total liabilities as of Dec. 31, 2019.
The Hon. James L. Garrity, Jr., is the case judge.
The Debtors tapped Cleary Gottlieb Steen & Hamilton LLP as general
bankruptcy counsel; FTI Consulting as restructuring advisor; and
Togut, Segal & Segal LLP and Claro & Cia in Chile as special
counsel. Lee Brock Camargo Advogados is the Debtors' local
Brazilian litigation counsel to the Debtors. Prime Clerk LLC is
the claims agent.
The Official Committee of Unsecured Creditors formed in the case
tapped Dechert LLP as its lead counsel, UBS Securities LLC, as
investment banker, and Conway MacKenzie, LLC. Klestadt Winters
Jureller Southard & Stevens, LLP is the conflicts counsel. Ferro
Castro Neves Daltro & Gomide Advogados is the Committee's Brazilian
counsel.
The Ad Hoc Group of LATAM Bondholders tapped White & Case LLP as
counsel.
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Fall in 2020 the Most Intense Since 2003 Crisis
-------------------------------------------------------------------
Dominican Today reports that the fall in the GDP of Dominican
Republic that was registered in 2020 has been the most intense
since the Dominican banking crisis of 2003.
Last year, per capita income plummeted 11.6%, while the financial
debacle at the beginning of this century caused a year-on-year
decline of 20%, according to data from the Central Bank of the
Dominican Republic, according to Dominican Today.
GDP per capita -- which refers to the wealth per inhabitant
generated by an economy, in this case the Dominican one -- closed
last year at about US$7,544 per person, the report notes.
The impact that COVID-19 had on the economy caused per capita
income to decline to levels similar to those recorded five years
ago, the report adds.
About Dominican Republic
The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district. Luis Rodolfo
Abinader Corona is the current president of the nation.
The Troubled Company Reporter-Latin America reported in April 2019
that the Dominican Today related that Juan Del Rosario of the UASD
Economic Faculty cited a current economic slowdown for the
Dominican Republic and cautioned that if the trend continues,
growth would reach only 4% by 2023. Mr. Del Rosario said that if
that happens, "we'll face difficulties in meeting international
commitments."
An ongoing concern in the Dominican Republic is the inability of
participants in the electricity sector to establish financial
viability for the system.
Fitch Ratings on Jan. 18, assigned a 'BB-' rating to Dominican
Republic's USD1.5 billion 5.3% notes due Jan. 21, 2041.
Concurrently, the Dominican Republic reopened its 2030 4.5% notes
for an additional USD1.0 billion, which Fitch rates 'BB-', raising
the total outstanding amount of the 2030 notes to USD2.0 billion.
Standard & Poor's, on December 4, 2020, affirmed its 'BB-'
long-term foreign and local currency sovereign credit ratings on
the Dominican Republic. The outlook remains negative. S&P also
affirmed its 'B' short-term sovereign credit ratings. The negative
outlook reflects S&P's view that it could lower the ratings on the
Dominican Republic over the next six to 18 months, given the severe
impact of the COVID-19 pandemic on the sovereign's already
vulnerable fiscal and external profiles, as well as the potential
for a weaker-than-expected economic recovery.
Moody's credit rating for Dominican Republic was last set at Ba3
with stable outlook (July 2017). Fitch's credit rating for
Dominican Republic was last reported at BB- with negative outlook
(May 8, 2020).
DOMINICAN REPUBLIC: Labor Unions Announce 'Struggle' for Wage Hike
------------------------------------------------------------------
Dominican Today reports that the labor unions of the Dominican
Republic announced manifestations starting on May 1, when they will
present their proposal on the salary increase that must be
discussed this year.
In addition, they will establish their position on tax reform,
social security, intervention on behalf of women and the
implications of the fourth industrial revolution on employment,
according to Dominican Today.
"The trade union centrals of the Dominican Republic CNUS, CASC and
CNTD announce to the country that on May 1st we will celebrate an
act where we will announce to the country and to the entire
Dominican working class the amount of the wage demand that we are
going to announce in the struggle from May 1," said Jacobo Ramos,
president of the Confederation of Dominican Workers, the report
notes.
About Dominican Republic
The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district. Luis Rodolfo
Abinader Corona is the current president of the nation.
The Troubled Company Reporter-Latin America reported in April 2019
that the Dominican Today related that Juan Del Rosario of the UASD
Economic Faculty cited a current economic slowdown for the
Dominican Republic and cautioned that if the trend continues,
growth would reach only 4% by 2023. Mr. Del Rosario said that if
that happens, "we'll face difficulties in meeting international
commitments."
An ongoing concern in the Dominican Republic is the inability of
participants in the electricity sector to establish financial
viability for the system.
Fitch Ratings on Jan. 18, assigned a 'BB-' rating to Dominican
Republic's USD1.5 billion 5.3% notes due Jan. 21, 2041.
Concurrently, the Dominican Republic reopened its 2030 4.5% notes
for an additional USD1.0 billion, which Fitch rates 'BB-', raising
the total outstanding amount of the 2030 notes to USD2.0 billion.
Standard & Poor's, on December 4, 2020, affirmed its 'BB-'
long-term foreign and local currency sovereign credit ratings on
the Dominican Republic. The outlook remains negative. S&P also
affirmed its 'B' short-term sovereign credit ratings. The negative
outlook reflects S&P's view that it could lower the ratings on the
Dominican Republic over the next six to 18 months, given the severe
impact of the COVID-19 pandemic on the sovereign's already
vulnerable fiscal and external profiles, as well as the potential
for a weaker-than-expected economic recovery.
Moody's credit rating for Dominican Republic was last set at Ba3
with stable outlook (July 2017). Fitch's credit rating for
Dominican Republic was last reported at BB- with negative outlook
(May 8, 2020).
===========
P A N A M A
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CFG INVESTMENTS 2021-1: S&P Assigns B (sf) Rating to Class D Notes
------------------------------------------------------------------
S&P Global Ratings assigned its ratings to CFG Investments Ltd.'s
series 2021-1 notes. S&P also withdrew its ratings on the series
2019-1 notes due to the proceeds of the series 2021-1 issuance
being used to redeem the series 2019-1 notes early.
The note issuance is an ABS transaction backed by unsecured
personal loan receivables originated in four jurisdictions: Aruba
(BBB+/Negative/A-2), Curacao (BBB-/Negative/A-2), Bonaire, and
Panama (BBB/Stable/A-2).
The ratings reflect:
-- The characteristics of the pool being securitized, which
includes loans from Aruba, Curacao, Bonaire, and Panama. The
transaction has a 30-month revolving period during which the loan
composition can change. As such, S&P considered the worst-case pool
allowed by the transaction's concentration limits.
-- The availability of approximately 54.9%, 29.2%, 19.2%, and
14.2% credit support to the class A, B, C, and D notes,
respectively, in the form of subordination, overcollateralization,
a reserve account, and excess spread. Additionally, the credit
support level is sufficient to withstand stresses commensurate with
the ratings on the notes based on its stressed cash flow
scenarios.
-- The transaction's payment structure and mechanisms, which
incorporate performance-based triggers linked to a monthly
cumulative net loss percentage defined in the transaction documents
that lead to revolving period termination events, and early
amortization triggers that are linked to a servicer default, among
others.
-- CFG Holdings Ltd.'s (CFG's) established management, its
experience in origination and servicing consumer loan products
across all jurisdictions, and S&P's assessment of the operational
risks associated with CFG's decentralized business model across
certain jurisdictions.
-- The transaction's exposure to the counterparty risk of the bank
account providers in each relevant jurisdiction, which have credit
quality consistent with the ratings. Additionally, the
transaction's commingling risk, which S&P believes is mitigated by
the two-day transfer of funds, the existence of a reserve account,
and the small amount of exposure to this risk.
-- The transaction's legal structure, which includes a Cayman
Islands special-purpose vehicle issuing the notes and
special-purpose entities in each jurisdiction called borrowers, to
which the portfolio of loans, or beneficial interests therein, has
been transferred by the respective sellers.
-- Since S&P issued preliminary ratings, the final coupons for
each class were updated. This did not affected any of the ratings.
Credit Enhancement Summary
Subordination (% of the initial target loan principal balance)
-- Class A: 25.7
-- Class B: 10.0
-- Class C: 5.0
-- Class D: 0.0
-- Class RR: 0.0
Reserve account (% of the initial target loan principal balance)
-- Initial: 1.00
-- Target: 1.00
-- Floor: 1.00
Overcollateralization (% of the initial target principal
balance)
-- Initial (including the initial balance of class RR): 11.3
-- Target: 11.3
-- Floor: 11.3
Total initial hard credit enhancement (% of the initial target
loan principal balance)
-- Class A: 53.0
-- Class B: 27.3
-- Class C: 17.3
-- Class D: 12.3
Total credit enhancement, including excess spread (% of the
initial target loan principal balance)(i)
-- Class A: 54.9
-- Class B: 29.2
-- Class C: 19.2
-- Class D: 14.2
Initial target loan principal balance: $209,302,325.59
Total securities issued (including class RR notes):
$195,100,000.00
(i)The excess spread calculation is only an estimate for the first
month because the future excess spread will still need to be
realized and is unknown at the expected closing date.
Ratings Assigned
CFG Investments Ltd. (Series 2021-1)
Class A, $100.4 million (4.70% interest rate): BBB (sf)
Class B, $53.8 million (5.82% interest rate): BBB- (sf)
Class C, $20.9 million (7.48% interest rate): BB (sf)
Class D, $10.5 million (9.07% interest rate): B (sf)
Class RR, $9.5 million (10.00% interest rate): Not rated
Ratings Withdrawn
CFG Investments Ltd. (Series 2019-1)
Class A to not rated from 'BBB- (sf)'
Class B not rated from 'BB (sf)'
=====================
P U E R T O R I C O
=====================
HOGAR CARINO: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Hogar Carino, Inc.
URB. San Martin
Calle Luis Pardo #1016
San Juan, PR 00924
Business Description: Hogar Carino Inc. operates in the health
care industry.
Chapter 11 Petition Date: April 16, 2021
Court: United States Bankruptcy Court
District of Puerto Rico
Case No.: 21-01181
Debtor's Counsel: Luis D. Flores Gonzalez, Esq.
LAW OFFICES LUIS D. FLORES GONZALEZ
80 Calle Georgetti Ste 202
San Juan, PR 00925-3624
Tel: 787-758-3606
E-mail: ldfglaw@coqui.net
ldfglaw@yahoo.com
Total Assets: $176,883
Total Liabilities: $1,568,780
The petition was signed by Elizabeth Noemi Padro Rivera, vice
president.
https://www.pacermonitor.com/view/KHQNRPQ/HOGAR_CARIO_INC__prbke-21-01181__0001.0.pdf?mcid=tGE4TAMA
=============
U R U G U A Y
=============
BANQUE HERITAGE: S&P Affirms 'B+' Long-Term ICR, Outlook Stable
---------------------------------------------------------------
S&P Global Ratings affirmed its long-term 'B+' global scale issuer
credit rating on Banque Heritage (Uruguay) S.A. and its long-term
'uyBBB+' national scale rating. The outlook remains stable.
In 2020, Banque Heritage continued its business plan to grow its
footprint in Uruguay in order to improve efficiency and
profitability. It funded growth through increases in the deposit
base, but its profitability remained limited by tighter margins.
The rating action follows Banque Heritage (Uruguay)'s significant
asset growth, funded by deposits, which has resulted in larger
scale but a consistently lower-than-expected RAC ratio. However,
this deterioration is mitigated by an improvement of our view of
the bank's risk position, with metrics more in line with the
industry average, although it still has high client concentration
in the loan portfolio and higher-than-average dollarization.
The bank's loan and investment portfolio grew about 50% in nominal
terms by year-end 2020. In this context, S&P expects its RAC ratio
to be between 8% and 9% in 2021-2022. S&P's forecast includes the
following assumptions:
-- Uruguay's real GDP growth of 3.2% in 2021 and 2022 and
inflation between 7.0% and 7.5%.
-- Loan portfolio increasing 30% in 2021 and 23% in 2022 in
nominal terms, surpassing the banking system's growth, aligned with
the bank's strategy to increase its scale.
-- Stable net interest margins (NIMs).
-- Return on average assets of 0.4%-0.6%.
Nonperforming loans (NPLs) of 1.0%-1.5%, with net charge-offs to
average customer loans of 1.3% due to former punctual cases in 2021
and then below 1.0% in 2022. NPLs fully covered by reserves.
Capitalization of results and other actions to sustain growth.
In S&P's opinion, the bank's risk position has improved based on
asset quality metrics that are in line with those of the banking
system. At the end of 2020, the bank posted NPLs of 2.2%, net
charge-offs of 0.8%, and loan loss reserves at 1.7x of total NPLs
(compared to 4.3%, 1.7%, and 0.9x, respectively, the year before).
NPLs are better than the banking system's ratio of 2.7% and
slightly above the private banks' ratio of 1.9%. The improved ratio
partly relates to the charge-off of old cases, the restructure of
others, and the good performance of the credit portfolio. In
addition, we expect the risk associated with the new loans granted
to be manageable and about 10% backed by deposit guarantees. S&P
considers that its RAC framework adequately captures all the risk
to which the bank is exposed, including its larger exposure to the
construction sector.
=================
V E N E Z U E L A
=================
VENEZUELA: Revenue Stream to Increase Thanks to Oil Price Hike
--------------------------------------------------------------
The Latin American Herald reports that the revenue stream of the
Venezuelan State has considerably improved from six months ago
since this year, the regime of leftist leader Nicolas Maduro may be
reaping nearly $9 billion, or $1 billion more than in 2020,
Venezuelan economist Asdrubal Oliveros, head of the Caracas-based
Ecoanalitica consulting firm, told local energy blog Petroguia.
Oliveros said that $6 billion of that amount, or two-thirds, will
come from crude oil sales while the remainder corresponds to gold
and metals, according to The Latin American Herald. "And from the
additional $1 billion we are foreseeing, nearly 80% will come from
a hike in oil prices over the last six months," he added.
This means that Venezuela's state-run oil company Petroleos de
Venezuela (PDVSA) may be receiving an additional $800 million,
provided that the current output and sales level are maintained,
the report relays.
Most crude oil shipments by PDVSA are sent to the Asian continent,
mainly China, and Ecoanalitica forecasts an exports average that
will generate cash in the neighborhood of 600,000 barrels per day
(bpd), the report discloses.
Venezuelan crude oil experienced a jump in prices of 77.1% during
the first quarter of 2021, a hike that occurred simultaneously with
a jump in production and exports of 31% and 32%, respectively, from
the same period a year ago, a scenario that allows an increase in
PDVSA revenues and part of that money is transferred to fiscal
accounts, the report notes.
Prices of Merey 16, a blend of extra-heavy crude from the Orinoco
oil belt and lighter grades which is taken as a reference by the
Organization of the Petroleum Exporting Countries (OPEC), have
spiked during the first three months of 2021 to $46.47 per barrel
from $26.23 per barrel, while exports are above 655,000 bpd in the
period between January and March, the report adds.
Venezuela
Venezuela, officially the Bolivarian Republic of Venezuela, is a
country on the northern coast of South America, consisting of a
continental landmass and a large number of small islands and
islets in the Caribbean sea. The capital is the city of Caracas.
Hugo Chavez was president to Venezuela from 1999 to 2013. The
Chavez presidency was plagued with challenges, which included a
2002 coup d'etat, a 2002 national strike and a 2004 recall
referendum. Nicolas Maduro was elected president in 2013 after
the death of Chavez. Maduro won a second term at the May 2018
Venezuela elections, but this result has been challenged by
countries including Argentina, Chile, Colombia, Brazil, Canada,
Germany, France and the United States who deemed it fraudulent and
moved to recognize Juan Guaido as president.
The presidencies of Chavez and Maduro have challenged Venezuela
with a socioeconomic and political crisis. It is marked by
hyperinflation, climbing hunger, poverty, disease, crime and death
rates, social unrest, corruption and emigration from the country.
S&P Global Ratings, in May 2019, removed its long- and short-term
local currency sovereign credit ratings on Venezuela from
CreditWatch with negative implications and affirmed them at
'CCC-/C'. The outlook on the long-term local currency rating is
negative. At the same time, S&P affirmed its 'SD/D' long- and
short-term foreign currency sovereign credit ratings on Venezuela.
Moody's credit rating (long term foreign and domestic issuer
ratings) for Venezuela was last set at C with stable outlook in
March 2018. Meanwhile, Fitch's long term issuer default rating
for Venezuela was last in 2017 at RD and country ceiling was CC.
Fitch, on June 27, 2019, affirmed then withdrew the ratings due to
the imposition of U.S. sanctions on Venezuela.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.
Copyright 2021. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
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