/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/210423.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 Friday, April 23, 2021, Vol. 22, No. 76 Headlines B A H A M A S SANDALS RESORT: Reopening of Royal Bahamian Delayed Until Nov. 4 B E R M U D A TEEKAY CORPORATION: Egan-Jones Keeps B Senior Unsecured Ratings TEEKAY TANKERS: Egan-Jones Keeps BB Senior Unsecured Ratings B R A Z I L SAMARCO MINERACAO: Seeks US Recognition of Brazilian Restructuring C A Y M A N I S L A N D S SPARTA CAYMAN: S&P Assigns B+ Issuer Credit Rating, Outlook Stable C H I L E CAP SA: S&P Assigns 'BB+' Rating on New $300MM Sr. Unsec. Notes LATAM AIRLINES: Court Asked to Deny Bid to Appoint Equity Panel C O L O M B I A BANCO DAVIVIENDA: Fitch Assigns Final B+ Rating to USD AT1 Notes J A M A I C A JAMAICA: Number of Employed Persons Drops 5.9%, STATIN Reports M E X I C O METALSA SA: S&P Affirms 'BB+' Issuer Credit Rating, Outlook Stable T R I N I D A D A N D T O B A G O TRINIDAD & TOBAGO: UN SDG Funds Spent on COVID-19 Educ. Efforts V E N E Z U E L A VENEZUELA: Sugar Cane Production Hits 64-Year Low VENEZUELA: Watchdog Seeks to Clarify Funds Used for COVAX Deal - - - - - ============= B A H A M A S ============= SANDALS RESORT: Reopening of Royal Bahamian Delayed Until Nov. 4 ---------------------------------------------------------------- RJR News reports that with most Sandals properties throughout the region reopened or will reopen next month, the company will not reopen its Royal Bahamian resort until November 4. The Nassau Guardian says Sandals executives announced last month that the property would not reopen on the previously scheduled May 1 because of planned renovations, but had not announced another firm date, according to RJR News. The renovations, billed to be in the millions of dollars, are expected to include a complete reimagining of the resort, the report notes. Sandals' second property in The Bahamas, the Emerald Bay property in Exuma, has been open since January, the report relays. All of its other Caribbean resorts in St. Lucia, Jamaica, Grenada and Antigua have opened except for its two Barbados-based properties, which were scheduled to reopen on May 14, the report adds. ============= B E R M U D A ============= TEEKAY CORPORATION: Egan-Jones Keeps B Senior Unsecured Ratings --------------------------------------------------------------- Egan-Jones Ratings Company, on March 29, 2021, maintained its 'B' foreign currency and local currency senior unsecured ratings on debt issued by Teekay Corporation. EJR also maintained its 'C' rating on commercial paper issued by the Company. Headquartered in Hamilton, Bermuda, Teekay Corporation is a provider of international crude oil and liquefied natural gas (LNG) marine transportation services. TEEKAY TANKERS: Egan-Jones Keeps BB Senior Unsecured Ratings ------------------------------------------------------------ Egan-Jones Ratings Company, on March 29, 2021, maintained its 'BB' foreign currency and local currency senior unsecured ratings on debt issued by Teekay Tankers Ltd. Headquartered in Hamilton, Bermuda, Teekay Tankers Ltd. engages in the provision of crude oil and refined petroleum products through the operation of its oil and product tankers. =========== B R A Z I L =========== SAMARCO MINERACAO: Seeks US Recognition of Brazilian Restructuring ------------------------------------------------------------------ Samarco Mineracao SA, the Brazilian mining joint venture between Vale SA and the BHP Group, asked a New York bankruptcy court for Chapter 15 bankruptcy recognition as it attempts to reorganize $8.8 billion in debt in the Brazilian courts. Samarco is a privately held Brazilian mining company that started its operations in 1977. In 2011, before its operations were suspended as a result of the Fundao Dam Rupture, Samarco was the fourth largest exporter in Brazil according to the Brazilian Ministry of Development, Industry and Foreign Trade. The company's main product, iron ore pellets, is one of the raw materials used in the fabrication of steel. Samarco is incorporated and headquartered in Belo Horizonte (the capital of the State of Minas Gerais), Brazil, and has two operating units, the Germano complex (the "Germano Complex") and the Ubu complex (the "Ubu Complex"), which are located in the adjoining Brazilian States of Minas Gerais and Espirito Santo, respectively. BHP Billiton Brasil Ltda. and Vale S.A. are the only shareholders of Samarco, each holding 50% of the shares in the company. Samarco's current financial distress stems principally from a tragedy on November 5, 2015, when a tailings dam owned by Samarco at the Germano Complex in the municipality of Mariana, State of Minas Gerais, Brazil, failed (the "Fundao Dam Rupture"). Immediately after the Fundao Dam Rupture, Samarco's permits to operate in Minas Gerais were suspended, and the company temporarily stopped all its mining operations. In the wake of the Fundao Dam Rupture, Samarco concentrated its efforts on managing the crisis and its impact, including through significant social and environmental remediation initiatives. Due to the cessation of its mining operations, by August 2016, Samarco was forced to suspend payments related to its financial indebtedness. Due to the economic impact of the Fundao Dam Rupture on Samarco, including the costs associated with remediation measures and the limitations associated with the extended suspension of its mining operations, Samarco cannot support its current level of financial indebtedness. As a result, beginning shortly after the Fundao Dam Rupture, Samarco has been taking steps to evaluate and implement an operational restructuring of its business and preparing for what it hoped would be a consensual restructuring of its financial indebtedness. These steps included taking actions to restart certain of its facilities and to complete and finalize its business plan. As part of these efforts, from 2016 through 2019, Samarco engaged in discussions with certain groups of creditors, including presenting an updated business plan to certain creditors. In 2020, Samarco commenced providing certain financial and operational data to certain technical and financial advisors to an ad hoc group of financial creditors. In late 2020 and early 2021, Samarco began negotiating the terms of a non-disclosure agreement, various expense reimbursement agreements and a short-term standstill agreement with legal advisors to the same group of creditors with the objective of entering into debt restructuring negotiations. Notwithstanding these efforts, certain holders that were part of the ad hoc group brought enforcement actions against Samarco in Brazil and in the United States, which have resulted in a freeze of Samarco's financial assets in Brazil. Following these actions, the company determined to cease discussions with the ad hoc group. On April 9, 2021, Samarco had no choice but to commence the Brazilian RJ Proceeding in order to, among other things, stay such enforcement actions, protect its assets and operations, continue to employ thousands of workers, and have the opportunity to continue to negotiate and implement an orderly restructuring of its financial indebtedness. On April 9, 2021, the Debtor filed a voluntary RJ petition with the Brazilian Court under the Brazilian Bankruptcy Law. On April 12, 2021, the Brazilian Court entered an order formally accepting the Debtor into the Brazilian RJ Proceeding. The Brazilian RJ Proceeding is intended to allow Samarco to re-establish its capital structure and become a sustainable standalone company with debt levels suitable for it to rebuild its business, provide employment for nearly 1,600 direct workers, and continue to support local stakeholders. The Brazilian RJ Proceeding does not impair Samarco's obligations, commitments or ability to make full redress for the Fundao Dam Rupture, or the ability of those impacted by the dam failure to claim full redress through Fundaçao Renova (a private non-profit foundation) or through the appropriate courts. Notwithstanding the Brazilian RJ Proceeding, due to the international nature of certain of its debt and assets, Samarco remains vulnerable to creditor actions outside of Brazil, including in the United States. Accordingly, the Foreign Representative commenced the Chapter 15 Case to obtain recognition of the Brazilian RJ Proceeding as a foreign main proceeding and seeks other relief in support of its restructuring efforts. About Samarco Mineracao SA Samarco Mineracao SA is a Brazilian mining joint venture between BHP Group and Vale SA. erves as an iron ore processing company. The company provides blast furnace, direct reduction, sinter feed, as well as low and normal silica content pellets. On April 9, 2021, the Debtor filed a voluntary petition for judicial reorganization in the 2nd Business State Court for the Belo Horizonte District of Minas Gerais in Brazil pursuant to Brazilian Federal Law No. 11,101 of February 9, 2005. Samarco Mineracao filed for Chapter 15 bankruptcy recognition (Bankr. S.D.N.Y. Case No. 21-10754) on April 19, 2021, in New York, to seek U.S. recognition of its Brazilian proceedings. The Debtor's U.S. counsel: Thomas S. Kessler Cleary Gottlieb Steen & Hamilton LLP Tel: 212-225-2000 E-mail: tkessler@cgsh.com =========================== C A Y M A N I S L A N D S =========================== SPARTA CAYMAN: S&P Assigns B+ Issuer Credit Rating, Outlook Stable ------------------------------------------------------------------ S&P Global Ratings assigned its 'B+' issuer credit rating to Sparta Cayman 2 L.P. (which dba PQ Performance Chemicals). At the same time, S&P assigned its 'B+' issue-level rating to the company's proposed senior secured debt. The recovery rating is '3', indicating its expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a payment default. The borrower of the debt is Sparta US Holdco LLC. S&P said, "The stable outlook reflects our view that EBITDA will rebound in 2021, driven by higher volumes in the company's silicates segment and cost savings initiatives. This supports our expectation for a gradual improvement in debt leverage in 2021 and beyond. "Our ratings on PQ Performance Chemicals reflect the company's position as a leading producer of sodium silicates in Europe and North America, as well as its exposure to niche global specialty silica end markets. The company derives most of its revenue from silicates (61%), where their products are used in personal and industrial cleaning products, fuel efficient "green" tires, adhesives, catalysts, and construction applications. Specialty silicas, including precipitated silica and silica gel, comprise 26% of the company's revenue with key end uses in food and beverage, personal care, toothpaste, and coatings. Additionally, about 13% of the company's revenue comes from its slowest growth product, Zeolites, which are used in detergents, construction, and coatings. "The company has modest growth opportunities and we believe it will be able to maintain relatively stable EBITDA margins in the low-20% range. Supporting this is the opportunity for variable cost reductions via raw material savings through the Koch relationship, as well as other cost savings initiatives. We view the company's financial sponsor ownership, high debt leverage, and concentration in silicate precursor and intermediary silica products as key risks to the rating." PQ Performance Chemicals benefits from its position as one of the largest silicate producers in North America and Europe, its global manufacturing and logistical footprint, and its recurring customer relationships. The company has a global asset and revenue base, with 40% of revenue generated in North America, 32% in Europe, 15% in Asia, and 11% in South America. Its regionally located silicate manufacturing facilities, which in many cases are situated in close proximity to customers, provide a key strategic advantage for the company given the high freight costs required to ship silicates long distances. About 60% of the company's Americas volumes and 30% of its European volumes are distributed to customers via existing dedicated logistics networks, making the company the lowest cost producer for many customers. The strategic location of the company's facilities and logistic networks provide high barriers to entry for other market participants who would be forced to incur high fixed costs in order to effectively compete. This also lends itself to stickier customer relationships, as evidenced by many of the key customers' longstanding tenure with PQ Performance Chemicals. S&P said, "We believe the business' growth potential as somewhat in line with GDP, industrial demand, and consumer spending growth. The company retains potential upside from new product innovation via partnerships with existing customers, especially with regard to the development of more environmentally friendly and sustainable use products. Silicate-based products benefit from their natural and inert properties making them an "environmentally friendly" alternative to inputs such as plastic beads (personal care), carbon black (green tires), phosphates (cleaning products), and lead stabilizers (PVC). We believe the potential for substitution provides a potential longer-term upside to the company's product breadth and growth outlook; however, the company lacks diversity beyond sodium silicate and specialty silicas, which we view as relatively niche products. "The company's high debt leverage of between 5x and 6x on a weighted average basis, as well as its financial sponsor ownership, are key credit risks. However, we view Koch's investment as modestly supportive of the company's credit profile given the prospect for cost synergies.S&P Global Ratings'-adjusted EBITDA declined moderately in 2020 because of lower volumes, particularly in the company's silicate and zeolite businesses, which were affected by customer facility shutdowns in the second and third quarter of 2020. We expect volumes and EBITDA to rebound in 2021, driven by our economic growth assumptions and the roll-off of COVID-19-related impacts, before moderating along with GDP in 2022. We believe growth is limited in the company's zeolite business, which has declined over the past decade as consumers have moved away from powdered detergents (which contain zeolites) to liquid-based alternatives. "We expect the main driver of EBITDA growth beyond 2021, and the key to deleveraging, will be cost reduction measures from the company's transformation plan and from raw material cost savings. The company expects to leverage Koch supply arrangements and capabilities following the close of the transaction. The partnership benefits from Koch's existing scale and expertise in procuring soda ash, sand, caustic, sulfuric acid, and natural gas, all of which are key raw material inputs for PQ Performance Chemicals. We expect these cost synergies will drive margin expansion and EBITDA growth, ultimately leading to deleveraging over the next few years. However, given the company's financial sponsor ownership we view the potential for aggressive financial policies and additional leveraging transactions as somewhat elevated. "The stable outlook reflects our view that the carve out of PQ Performance Chemicals from PQ Corp., and its acquisition by financial sponsor Cerberus and Koch Minerals & Trading, will proceed as planned under the proposed capital structure. We anticipate a relatively smooth transition to a stand-alone entity given that it will have a transition services agreement (TSA) in place, and Cerberus' previous carve out experience. We expect earnings to rebound in 2021 driven by the company's silicates business, which experienced adverse impacts of lower demand and volumes in 2020. We also consider our revised economic assumptions, including S&P Global Ratings' forecast for U.S. GDP growth of 6.5%. Although we view the company's long-term organic growth potential as moderate, we believe the company's transformation plan and raw material sourcing agreements with Koch Minerals & Trading should drive substantial margin expansion (more than 250 bps) and deleveraging over our forecast period. Our base case assumes S&P Global Ratings' adjusted debt to EBITDA in the 5x range on a weighted average basis. "We could lower our ratings on the company over the next few months if the transaction is not finalized as planned, or if the company's capital structure is not implemented as currently envisioned. Additionally, we could lower our ratings if the company experiences an unexpected deterioration in EBITDA, or a more costly transition to a standalone entity, such that debt to EBITDA remains sustainably above 6x on an S&P Global Ratings'-adjusted basis. "Although it is unlikely at this time, given the company's transition to a standalone entity and its financial sponsor ownership, we could raise our ratings over the next 12 months if the company reduces leverage below 5x debt to EBITDA (on an S&P Global Ratings'-adjusted basis) and we expect ownership is committed to further deleveraging. This could occur if EBITDA margins expanded by more than 200bps from our current forecast and revenue growth was slightly higher than expected under our base case over the next two years.A key aspect of any upgrade will be an established track record as an independent entity." ========= C H I L E ========= CAP SA: S&P Assigns 'BB+' Rating on New $300MM Sr. Unsec. Notes --------------------------------------------------------------- S&P Global Ratings assigned a 'BB+' issue-level rating on CAP S.A.'s (BB+/Stable/--) proposed senior unsecured notes for $300 million. The Chilean mining company is planning to use the proceeds to refinance upcoming debt maturities, extend the amortization profile, and improve capital structure. The company's debt maturing in 2021 accounts for 68% of total debt, which shortens the weighted average maturity to only 2.1 years. CAP has two domestic bonds of Unidad de Fomento (UF) 3 million ($130 million) maturing on July 1 and Sept. 1, 2021. If the issuance is unsuccessful, S&P believes the company still has sufficient cash on hand, given that it totaled $557 million in December 2020. Moreover, it expected sound free cash flows amid favorable metals pricing momentum. In contrast with outstanding senior unsecured notes, the proposed notes don't have upstream guarantees from its main cash generating subsidiaries: Compania Minera del Pacifico S.A. (an iron ore mining subsidiary) and Compania Siderurgica Huachipato S.A. (a steel production subsidiary), which generate more than 90% of CAP's EBITDA. S&P said, "However, our pro forma debt priority calculation including the proposed new issuance, senior unsecured notes with upstream guarantees and debt at operating subsidiaries excluding non-recourse debt at Cleanairtech, results in a debt priority ratio slightly below 50%. Therefore, we rate CAP's proposed senior unsecured notes at the same level as the issuer credit rating. If the company increases debt at the holding without guarantees, having this ratio consistently above 50%, we could lower the issue-level rating." Ratings List NEW RATING CAP S.A. Senior Unsecured BB+ LATAM AIRLINES: Court Asked to Deny Bid to Appoint Equity Panel --------------------------------------------------------------- The official committee of unsecured creditors of LATAM Airlines Group S.A. asked the U.S. Bankruptcy Court for the Southern District of New York to deny the motion filed by the company's shareholder, Kevin Barnes, to appoint a committee that will represent equity security holders in the company's Chapter 11 case. In a court filing, the committee argued Mr. Barnes "failed to demonstrate a substantial likelihood that equity will receive a meaningful distribution" and that it is still premature to assess the factors relevant to such inquiry. "At this stage, [LATAM] has not prepared long-term financial projections and is not yet in a position to produce a realistic estimate of the expected amount of allowed claims," the committee said. "Until such processes are further along, it will not be realistically feasible to assess whether equity holders might receive a meaningful distribution," the committee further said. The committee also argued that the appointment of an equity committee is not necessary since the interests of equity holders are being protected by stakeholders who already are participating actively in LATAM's bankruptcy case. About LATAM Airlines Group 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. It 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 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 bankruptcy counsel, FTI Consulting as restructuring advisor, Lee Brock Camargo Advogados as local Brazilian litigation counsel, and Togut, Segal & Segal LLP and Claro & Cia in Chile as special counsel. The Boston Consulting Group, Inc. and The Boston Consulting Group UK LLP serve as the Debtors' strategic advisors. Prime Clerk LLC is the claims agent. The official committee of unsecured creditors formed in the case tapped Dechert LLP as its bankruptcy counsel, Klestadt Winters Jureller Southard & Stevens, LLP as conflicts counsel, UBS Securities LLC as investment banker, and Conway MacKenzie, LLC as financial advisor. 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. =============== C O L O M B I A =============== BANCO DAVIVIENDA: Fitch Assigns Final B+ Rating to USD AT1 Notes ---------------------------------------------------------------- Fitch Ratings has assigned a 'B+' final rating to Banco Davivienda S.A.'s (Davivienda) U.S. dollar-denominated perpetual non-cumulative Additional Tier 1 (AT1) junior subordinated notes. The final rating follows a review of the final terms and conditions confirming to information already received when Fitch assigned the expected rating on April 12, 2021. The perpetual non-cumulative notes, for a final amount of USD500,000,000 will carry a fixed interest rate of 6.65% per annum (until but excluding April 22, 2031 the first optional redemption date), and thereafter reset on each tenth anniversary of the issue date as described on the final notes, will pay interest semi-annually in arrears on April 22 and Oct. 22 of each year, commencing on Oct. 22, 2021. The notes are perpetual instruments (unless redeemed as described in the offering memorandum) with no fixed maturity or fixed redemption date. Proceeds will be used for general purposes and will count as Additional Tier 1 capital ratios at the bank per local regulation. The notes can be redeemed at the option of the Issuer no earlier than 10 years, subject to prior approval of the Colombian Superintendence of Finance (SFC), if the bank maintains its capital adequacy ratios in accordance with regulatory requirements. The notes will be junior in right of payment with respect to the Davivienda's depositors, all senior external liabilities of the bank, Tier 2 Capital subordinated debt instruments and other instruments issued and guaranteed by the bank designated as ranking senior to the notes. The notes rank senior to the Davivienda's Common Equity Tier 1 Capital, and rank pari passu among themselves and any other unsecured and Additional Tier 1 Capital subordinated indebtedness. KEY RATING DRIVERS The final rating assigned to Davivienda's new issuance is four notches below Davivienda's 'bbb-' Viability Rating (VR), with two notches for loss severity and two notches for incremental non-performance risk. According to Fitch's criteria, this is the minimum downward notching for deeply subordinated notes with fully discretionary coupon cancellation issued by banks with a VR anchor of 'bbb-'. The notching reflects the notes' higher loss severity in light of their deep subordination, and additional non-performance risk relative to the VR, given the high write-down trigger of CET1 at 5.125% and full discretion to cancel coupons. Coupon payments may be cancelled at the bank's discretion and full or partial write-down in case either individual or consolidated CET1 capital ratio is below 5.125% or if SFC determines the outstanding principal, accrued and unpaid interest, and any other amounts due on the notes will be permanently reduced, pro rata with reductions on other Additional Tier 1 Capital subordinated by an amount needed to restore the individual or the consolidated CET1 to 6%. Additionally, the interest payments under the notes will be automatically cancelled (in whole or in part) if the bank does not have sufficient distributable items or if the bank fail to preserve the required combined capital buffer (capital conservation and systemic buffers) according the Decree 2555 and the four-year schedule to adopt Basel III requirements starting in January 2021. As of December 2020, CET1 was 8.26% comparing favorably with the minimum requirements (4.5%). Basel III adoption started on January 2021 has already increased calculated CET1 by around 370 bps while the AT1 new issuance would increase the regulatory capital ratio considering CET1 plus AT1 by other 181 bps. Despite operating environment challenges that have reduced the bank's already low profitability and that are expected to continue to weigh on asset quality, Fitch does not anticipate significant pressures for the new capital requirements during the Basel III implementation period under a scenario of conservative risk management and gradual business growth. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- The rating of the AT1 Notes is sensitive to movements in the bank's VR in any direction, and the baseline scenario is that the notching will likely remain -4 relative to the bank's VR. However, the notching could potentially be widened to some extent as per Fitch's criteria under certain circumstances, if there is a change in Fitch's view on the non-performance risk of these instruments on a going concern basis, which is not the baseline scenario. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- The rating of the AT1 notes is sensitive to movements in the bank's VR in any direction, and the baseline scenario is that the notching will likely remain -4 relative to the bank's VR. However, the notching could potentially be widened to some extent asper Fitch's criteria under certain circumstances, if there is a change in Fitch's view on the non-performance risk of these instruments on a going concern basis, which is not the baseline scenario. 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. 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. ============= J A M A I C A ============= JAMAICA: Number of Employed Persons Drops 5.9%, STATIN Reports -------------------------------------------------------------- RJR News reports that the Statistical Institute of Jamaica (STATIN) is reporting that the total number of employed persons in January 2021 was 1,194,800. The number is 74,300 or 5.9 per cent lower than the corresponding month last year, according to RJR News. Director General of STATIN, Carol Coy made the announcement during STATIN's quarterly digital briefing, the report relays. Ms. Coy said that the unemployment rate for January 2021 was 8.9 per cent, which is some 1.6 percentage points higher than the figure for January 2020, the report discloses. She noted that the number of employed males decreased by 34,100 or 4.9 per cent to 656,200, while the figure for females fell by 40,200 or 6.9 per cent to 538,600, relative to January 2020, the report relays. The Director General noted that the number of unemployed persons rose by 15,700 or 15.6 per cent in January, the report adds. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. As reported in the Troubled Company Reporter-Latin America on March 23, 2021, Fitch Ratings affirmed Jamaica's Long-Term Foreign Currency Issuer Default Rating (IDR) at 'B+', with a stable outlook. Standard & Poor's credit rating for Jamaica stands at B+ with negative outlook (April 2020). Moody's credit rating for Jamaica was last set at B2 with stable outlook (December 2019). According to Fitch, Jamaica 'B+' rating is supported by World Bank Governance Indicators that are substantially stronger than the 'B' and 'BB' medians, a favorable business climate according to the World Bank Doing Business Survey, moderate inflation and moderate commodity dependence. These strengths are balanced by vulnerability to external shocks, a high public debt level and a debt composition that makes the sovereign vulnerable to exchange rate fluctuations. The Stable Outlook is supported by Fitch's expectation that the public debt level will return to a firm downward path post-pandemic, which is underpinned by political consensus to maintain a high primary surplus, the resilience of external finances, and stronger economic policy institutions. =========== M E X I C O =========== METALSA SA: S&P Affirms 'BB+' Issuer Credit Rating, Outlook Stable ------------------------------------------------------------------ On April 19, 2021, S&P Global Ratings affirmed its 'BB+' issuer credit and issue-level ratings on Mexican auto supplier Metalsa S.A. de C.V. S&P also assigned a 'BB+' issue-level rating to the new bond, along with a '3' recovery rating, indicating its expectation of a meaningful recovery (50%-90%) in the event of a payment default. S&P said, "The stable outlook reflects our view that the company will maintain a solid financial risk profile as it expands its business model. We expect Metalsa to maintain debt to EBITDA below 2.0x and free operating cash flow (FOCF) to debt close to 25% for the next 12 months given its ability to align its cost structure with the industry's expected recovery. During 2020, the pandemic-induced economic shock caused the global auto industry's production to drop about 25%, eroding cash flows among most automakers and auto suppliers. Nevertheless, Metalsa was able to align its cost structure to industry strains in such way that it largely protected its profitability. S&P said, "At the end of 2020, the company reported adjusted EBITDA margins of 12.1%, compared with our assumption about 10.8%. This demonstrates Metalsa's ability to halt production amid low demand and to accelerate operations once demand picked up. We believe the company to maintain such a trend for the next two years as the industry recovery gains pace. We believe Metalsa's net debt to EBITDA will remain below 1.5x and FOCF to average debt close to 25%." On April 19, 2021, Metalsa announced its intention to issue a new $300 million senior unsecured bond. The company plans to use proceeds to refinance its existing debt to strengthen its liquidity position in the next two years. The transaction will not reflect any changes in Metalsa's net leverage metric. S&P views Metalsa's liquidity as strong thanks to a well-structured financial policy that includes maintaining more than $200 million in committed credit lines and cash on hand of about $100 million on an ongoing basis. The recovery of the global economy and auto industry still faces uncertainty over the rollout of the vaccines, the effects from possible virus variants, the reopening of borders, consumer purchasing power, and lack of semiconductors. Therefore, S&P believes that Metalsa's plans for refinancing ahead of maturities will strengthen its liquidity position. S&P said, "We believe Metalsa is weaker than its investment-grade peers in terms of revenue customer concentration. As of Dec. 31, 2020, the company generated $1.9 billion in revenue, which represents approximately 20% of investment-grade global peers, but at the same time this also represents a lower need in capex. Furthermore, given that its top three customers account for about 75% of Metalsa's total revenue (versus about 40.0% from investment-grade global peers), we also view some concentration risk for the company. "We believe that Metalsa's continued focus on auto parts for EVs could reduce its product concentration and increase its scale in the coming years. While we expect the new U.S. administration to resume environmental regulations regarding CO2 emissions, which will prompt main OEMs to accelerate EV production, we believe Metalsa could widen its product diversification portfolio. The company sells about 89% of its products in North America and it has a competitive advantage over its peers, given its long track-record of close relationship with main OEMs in the region. Additionally, we believe that aligning with OEMs' operational and growth strategies will further support the company's credit quality. As of Dec. 31, 2020, approximately 10% of Metalsa's backlog consists of contracted production for EVs." ===================================== T R I N I D A D A N D T O B A G O ===================================== TRINIDAD & TOBAGO: UN SDG Funds Spent on COVID-19 Educ. Efforts --------------------------------------------------------------- Trinidad Express reports that Trinidad and Tobago reprioritized some of the US$7,356,767 (about $50 million) it received, mostly from the United Nations, to support the Government's efforts to address the challenges brought about by the Covid-19 pandemic. The money was reprioritised early in 2020 to focus on health and education, the Ministry of Planning and Development said, according to Trinidad Express. The money came through T&T's Country Implementation Plan (CIP-TT), on national initiatives related to the achievement of the Sustainable Development Goals (SDGs) in 2020. Many of the activities were centred around five of the SDGs, namely Zero Hunger, SDG 2; Good Health and Well-being, SDG 3; Quality Education, SDG 4 and Peace Justice and Strong Institutions, SDG 16, the report notes. This is according to the 'United Nations (UN) Country Annual Results Report,' released in March 2021, which was revealed during the Inaugural Joint National Steering Committee Meeting of the United Nations Multi-country Sustainable Development Framework (MSDF) on March 14, the report relates. The meeting was facilitated virtually by the technical cooperation unit of the Ministry of Planning and Development, which included the United Nations country team, the Tobago House of Assembly and other supporting government agencies and stakeholder groups, the report notes. Speaking during the meeting, UN resident coordinator Marina Walter said education, food security and bringing the private sector in as a key partner in national development were key areas on the agenda still receiving attention for T&T, the report relays. Permanent secretary of the Planning Ministry Joanne Deoraj emphasized the need for all arms of government involved in T&T's MSDF to continue to execute, coordinate and collaborate as a collective whole to epitomize T&T's 'whole of government' approach to national development, the report discloses. Planning and Development Minister Camille Robinson-Regis said T&T's ongoing partnership with the UN, along with the support received over the past year, is reflective of the Government's commitment to the Country Implementation Plan for Trinidad and Tobago, the report relays. CIP-TT is a plan of action with the UN for addressing several challenges affecting this country's ability to develop in a sustainable way, the report says. Robinson-Regis is responsible for reviewing and authorizing the joint plan for each year on behalf of the Government, the report notes. In a statement, the Ministry of Planning said some of the key areas to note regarding the 2020 Country Implementation Plan include the European Union funded Spotlight Initiative to address violence against women and girls, which received US$3.7 million for phase 1 last year, making T&T the largest recipient under this project geared towards alleviating gender-based violence in T&T, the report relays. There was also significant work done regarding human trafficking and support for vulnerable populations, the report notes. Progress was made in youth support and entrepreneurialism, whereby T&T was selected as the first Caribbean country to implement Generation Unlimited (GenU), a global initiative that aims to transform education so young people become empowered with the skills that future employers, entrepreneurial ventures and economies demand, the report relays. The ministry said that with endorsement and support from the T&T Government, civil society, youth groups, and the private sector, GenU is appraising the T&T education sector's capacity to deliver the skills the economy needs, with the aim of formulating action and investment plans to address key gaps while building an online ecosystem where young entrepreneurs can access support and high-value marketplaces, the report notes. Through the Food and Agriculture Organisation, plans were initiated to merge technology with food production, highlighting Government's drive for food security and increased local food production in T&T, the report adds. ================= V E N E Z U E L A ================= VENEZUELA: Sugar Cane Production Hits 64-Year Low ------------------------------------------------- The Latin American Herald reports that Venezuela is about to lose all its sweetness due to the embittering crisis that burdens the country, now with production of sugar at its lowest level since 1957, when it was located at about 2.1 million tons, according to figures by the Ministry of Agriculture and Livestock back then. Just three weeks before the 2020-2021 harvest comes to an end (beginning of May), local sugar cane growers have only sown a little more than 2 tons of sugar, which represents 83% of the 2.4-million-ton estimated production, Ricardo Alvarez, head of the Sugar Growers Associations Federation, told local daily TalCual, according to The Latin American Herald. Should production hit the 2.4-million-ton goal set by the federation, the sector would register a slight increase of 300,000 tons from the 2019-2020 harvest, the report notes. However, this would represent a drop of 73.3% from the peak production in 2005-2006, period during which producers harvested more than 9 million tons, the report relates. Sugar cane production in Venezuela had never been below 2.5 million tons since 1962, the report discloses. A decade later, it rose to 5.73 million tons and continued on the upswing until reaching a little over 9 million tons in 2006, which marked the very last year of production growth and, ever since, it has been continuously dropping as a result of supply shortages, expropriations, tight controls, and the lack of a coherent policy in this area, the report relays. Nevertheless, the industry has continued producing despite the ongoing diesel crisis thanks to sporadic allocations from the State, sometimes with tractors queuing up at service stations for long hours and paying more than $1 for each liter of fuel, the report notes. Alvarez added that the regime of Nicolas Maduro has not responded to a formal request made by a group of growers of a permit to import about 5 million liters of fuel from neighboring Colombia and transfer the fuel without having any problems with authorities at major checkpoints across the country, 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. VENEZUELA: Watchdog Seeks to Clarify Funds Used for COVAX Deal -------------------------------------------------------------- Carlos Camacho at The Latin American Herald reports that Transparencia Venezuela, the local affiliate of global Transparency International watchdog, asked for additional information about the origin of some 60 million Swiss Francs the Nicolas Maduro regime has said it will use to pay for COVID-19 vaccines obtained through the World Health Organization's COVAX vaccine cooperation scheme. The organization made its request in the form of a letter addressed to Venezuela's vice president Delcy Rodriguez, and then uploaded it on its social media, according to The Latin American Herald. The regime had been condemning the US for its sanctions, preventing it to purchase vaccines for its population, but Maduro unexpectedly announced it had located 59.2 million in Swiss Francs to pay for some 11.34 million doses, the report notes. The announcement is a big shift of position after months rejecting vaccines secured by the opposition-held National Assembly, and requesting that some $300 million in regime funds abroad be unfrozen by authorities before allowing any doses in, the report relays. COVAX vaccines obtained by the opposition were labeled "a pittance" by Rodriguez herself, the report says. Forwarding the new communication to Rodriguez, Transparencia stated in a web posting it was of vital importance in considering "to put an end to the opacity in everything related to the acquisition of vaccines and the immunization of Venezuelans," the report notes. Rodriguez has been in charge of the Presidential Commission for the Control and Prevention of the coronavirus since the beginning of the pandemic, the report relays. Transparencia said on April 10 that the regime had paid a little more than 50% of the total amount - some $119.9 million - that COVAX was requesting to secure the doses, the report discloses. In a convoluted statement that provided more questions than answers, Maduro admitted his regime had managed to "liberate" some money the US "had sequestered," but said the deal was going to be conducted in Swiss Francs, not US dollars, so that the US Federal Reserve doesn't "steal" the money, the report says. Transparencia said that more information is needed. "Officials have also omitted the origin of the other almost $60 million that must be subsequently cancelled to honor the commitment with COVAX," the NGO's post added, the report notes. The organization also requested information on the people who participated in the agreements, the distribution and access plan, as well as the controls, mechanisms and the entities in charge of keeping a record of the vaccines applied, the report relays. "This request for information is based on articles 28, 51 and 62 of the Constitution of the Bolivarian Republic of Venezuela, which establish the right of citizens to have access to public information, to address petitions to the authorities to know matters of public interest and to exercise control of public management," Transparencia Venezuela stated, 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 publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *