/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/210504.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, May 4, 2021, Vol. 22, No. 83 Headlines B A H A M A S BAHAMAS PETROLEUM COMPANY: LOIM Pulls Investment Out C A Y M A N I S L A N D S CHINA FISHERY: Auction of CFGI Equity Interests Set for June 28 CHINA FISHERY: CFG Peru, Smart Group Disclosures Approved D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Builders Worry as Condo Prices 'Skyrocket' DOMINICAN REPUBLIC: Workers' Average Hourly Income Dropped in 2019 P E R U MINSUR SA: Moody's Affirms Ba3 CFR & Alters Outlook to Positive S U R I N A M E SURINAME: Reaches Staff-Level Deal with IMF on $690MM Program U R U G U A Y BANCO DE LA NACION: Fitch Affirms 'CCC' LT IDRs PROVINCIA CASA: Fitch Affirms 'CCC' LongTerm IDRs V E N E Z U E L A VENEZUELA: Oil Exports to US Plummet by 99.08% in 2020 - - - - - ============= B A H A M A S ============= BAHAMAS PETROLEUM COMPANY: LOIM Pulls Investment Out ---------------------------------------------------- RJR News reports that Swiss investor Lombard Odier Investment Managers (LOIM) has pulled its investment out of Bahamas Petroleum Company (BPC), citing its need to move away from funding projects that are counter to sustainability. The company invested US$15.6 million in BPC through a hedge fund and branded that move an unintentional oversight, as LOIM is seen as a sustainability leader, according to RJR News. According to a Responsible Investor report, the B Corporation designation which LOIM has had since 2019, requires those designees to meet the highest standards of verified social and environmental performance, public transparency and legal accountability to balance profit and purpose, the report notes. =========================== C A Y M A N I S L A N D S =========================== CHINA FISHERY: Auction of CFGI Equity Interests Set for June 28 --------------------------------------------------------------- Judge James L. Garrity, Jr., of the U.S. Bankruptcy Court for the Southern District of New York authorized the bidding procedures proposed by William A. Brandt, Jr., the Chapter 11 Trustee to CFG Peru Investments Pte. Limited (Singapore), in connection with the auction sale of CFG Peru Singapore's direct equity interest in CFG Investments S.A.C. ("CFGI") and indirect equity interests in several non-Debtor subsidiaries of CFGI. The Chapter 11 Trustee will provide all Indicative Bid Materials received before 5:00 p.m. (ET) on June 1, 2021, to Houlihan Lokey by 12:00 p.m. (ET) on June 2, 2021. He will file a notice with the Court on June 2, 2021 indicating whether Conforming Indicative Bids have been received and cancelling one of the below scheduled confirmation hearing dates, as applicable. If the Chapter 11 Trustee does not provide Indicative Bid Materials reflecting at least one (1) Conforming Indicative Bid to Houlihan Lokey by 12:00 p.m. (ET) on June 2, 2021, then the confirmation hearing will occur on June 9, 2021 at 11:00 a.m. (ET). If he does provide Indicative Bid Materials reflecting at least one Conforming Indicative Bid to Houlihan Lokey by 12:00 p.m. (ET) on June 2, 2021, then the confirmation hearing will occur on June 29, 2021 at 11:00 a.m. (ET). The Bid Deadline is June 25, 2021 at 5:00 p.m. (E). The bid is accompanied by a deposit equal to 10% of the cash purchase price set forth in the Marked Agreement. If more than one Qualified Bid is received by the Bid Deadline as set forth in the Auction and Sale Hearing Notice, the Chapter 11 Trustee will conduct the Auction. If one or fewer Qualified Bids are received by the Bid Deadline, the Chapter 11 Trustee will not conduct the Auction. The Chapter 11 Trustee will file a notice with the Court by June 27, 2021 indicating whether Qualified Bids were received. The Auction, if necessary pursuant to the terms of the Order and the Bidding Procedures, will take place virtually at 10:00 a.m. (ET) on June 28, 2021 at 10:00 a.m. (ET), or such other time as the Chapter 11 Trustee, in consultation with the advisors of the Creditor Plan Proponents, may notify Qualified Bidders who have submitted Qualified Bids. The Creditor Plan Proponents and their advisors and the Senior Notes Trustee and its advisors will be permitted to attend the Auction, if conducted. Bidding will start at the purchase price and other terms proposed in the applicable Baseline Bid, and will proceed thereafter in $5 million increments. The Chapter 11 Trustee will consult the Creditor Plan Proponents' advisers with respect to (a) whether any bid constitutes a "Qualified Bid" and (b) any changes to date of the Bid Deadline, the Auction, or the Sale Hearing. The Auction will be conducted openly and will be transcribed. As soon as reasonably practicable following the conclusion of the Auction, the Chapter 11 Trustee will file copies of the Successful Bid and the Next Highest Bid with the Court. If one or more Qualified Bids is received by the Bid Deadline, the final approval of the Sale will be considered by the Court at the Sale Hearing on July 15, 2021 at 11:00 a.m. (ET). The Sale Hearing may be continued from time to time by the Court without further notice or with limited or shortened notice to parties other than the announcement of the adjourned date at the Sale Hearing or any continued hearing. Promptly after the conclusion of the Auction, but no later than July 2, 2021, the Chapter 11 Trustee will file the final Agreement with the Successful Bidder and the proposed Sale Order, which will include approval of the Sale as agreed upon between the Chapter 11 Trustee and the Successful Bidder. Objections, if any, related to matters to be heard at the Sale Hearing will be filed by July 9, 2021 at 4:00 p.m. (ET). Responses, if any, related to matters to be heard at the Sale Hearing will be filed by July 12, 2021 at 4:00 p.m. (ET). The Chapter 11 Trustee or DSI will provide periodic updates to the advisors to the Creditor Plan Proponents regarding the status of the sale process (including, if requested, a weekly call with Houlihan Lokey, subject to availability of Houlihan Lokey, DSI, and the Chapter 11 Trustee). He reserves the right to amend the dates and deadlines set forth in the Bidding Procedures in consultation with the advisors of the Creditor Plan Proponents. As soon as reasonably practicable, but in no event later than 21 days before the Sale Hearing, the Chapter 11 Trustee will serve the Auction and Sale Hearing Notice upon the Bidding Procedures Motion Notice Parties. As soon as reasonably practicable, but in no event later than 21 days before the Sale Hearing, the Chapter 11 Trustee will publish the Auction and Sale Hearing Notice on the case website at http://dm.epiq11.com/#/case/CHF/info. Notwithstanding any applicability of Bankruptcy Rule 6004(h), the terms and conditions of the Order will be effective and enforceable immediately upon its entry. A copy of the Bidding Procedures is available at https://tinyurl.com/4u94xkv8 from PacerMonitor.com free of charge. About China Fishery Group Limited (Cayman) China Fishery Group Limited (Cayman) and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 16-11895) on June 30, 2016. In the petition signed by CEO Ng Puay Yee, China Fishery Group estimated its assets at $500 million to $1 billion and debt at $10 million to $50 million. The cases are assigned to Judge James L. Garrity Jr. Weil, Gotshal & Manges LLP has been tapped to serve as lead bankruptcy counsel for China Fishery and its affiliates other than CFG Peru Investments Pte. Limited (Singapore). Weil Gotshal replaces Meyer, Suozzi, English & Klein, P.C., the law firm initially hired by the Debtors. The Debtors have also tapped Klestadt Winters Jureller Southard & Stevens, LLP, as conflict counsel; Goldin Associates, LLC, as financial advisor; RSR Consulting LLC as restructuring consultant; and Epiq Bankruptcy Solutions, LLC, as administrative agent. Kwok Yih & Chan serves as special counsel. On Nov. 10, 2016, William Brandt, Jr., was appointed as Chapter 11 trustee for CFG Peru Investments Pte. Limited (Singapore), one of the Debtors. Skadden, Arps, Slate, Meagher & Flom LLP serves as the trustee's bankruptcy counsel; Hogan Lovells US LLP serves as special counsel; and Quinn Emanuel Urquhart & Sullivan, LLP, serves as special litigation counsel. CHINA FISHERY: CFG Peru, Smart Group Disclosures Approved --------------------------------------------------------- Judge James L. Garrity, Jr., of the U.S. Bankruptcy Court for the Southern District of New York approved the Disclosure Statement accompanying the Chapter 11 Plan of CFG Peru Investments Pte. Ltd. (Singapore) and Smart Group Limited (Cayman) as providing holders of claims entitled to vote on the Plan with adequate information to make an informed decision as to whether to vote to accept or reject the Plan pursuant to Section 1125(a)(1) of the Bankruptcy Code. Judge Garrity also established deadlines with respect to (i) the solicitation of votes to accept or reject the Plan, (ii) the filing of certain claims, and (ii) the Plan confirmation and filing of related objections. * April 30, 2021, is the Solicitation Launch Date, or the deadline by which the Creditor Plan Proponents will distribute Solicitation Packages to Holders of Claims entitled to vote on the Plan. * May 28, 2021, at 4:00 p.m., prevailing Eastern Time, is the Voting Deadline, or the time by which all holders of Allowed Claims entitled to vote on the Plan must complete, execute, and return their Ballots so that they are actually received by Epiq Corporate Restructuring, LLC, the Solicitation Agent. * May 28, 2021, at 4:00 p.m., prevailing Eastern Time, as the deadline for filing (i) requests for payment of unliquidated SCB Claims and (ii) Proof of Claims for Administrative Claims. * May 28, 2021, at 4:00 p.m., prevailing Eastern Time, is the Plan Objection Deadline. * June 4, 2021, at 4:00 p.m., prevailing Eastern Time, is the (i) Confirmation Brief Deadline, (ii) the Plan Objection Response Deadline, and (iii) the date by which the Voting Report must be filed with the Bankruptcy Court. The Plan confirmation hearing will start at 11 a.m., prevailing Eastern Time, on June 9, 2021. However, it will start at 11:00 a.m., prevailing Eastern Time, on June 29, 2021, if prior to 12 p.m., prevailing Eastern Time, on June 2, 2021, the Chapter 11 Trustee provides Houlihan Lokey, Inc., with copies of non-binding indications of interest (if any) on the sale of the CFGI equity interests and any related materials submitted by potentially interested parties. In the event a qualified bid is received that clears the Sale Threshold by the Bid Deadline, the Confirmation Hearing will be canceled (or postponed) pending the Sale Hearing or as otherwise ordered by the Court. The Plan Objections Filing Deadline is May 28, 2021, at 4:00 p.m., prevailing Eastern Time. A copy of the order is available for free at https://bit.ly/3nuw7Ze at PacerMonitor.com. CFG Peru Investments Pte. Ltd. (Singapore) and Smart Group Limited (Cayman) are Debtors affiliated to China Fishery Group Limited (Cayman). About China Fishery Group China Fishery Group Limited (Cayman) and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 16-11895) on June 30, 2016. In the petition signed by CEO Ng Puay Yee, China Fishery Group was estimated to have assets at $500 million to $1 billion and debt at $10 million to $50 million. The cases are assigned to Judge James L. Garrity Jr. Weil, Gotshal & Manges LLP has been tapped to serve as lead bankruptcy counsel for China Fishery and its affiliates other than CFG Peru Investments Pte. Limited (Singapore). Weil Gotshal replaces Meyer, Suozzi, English & Klein, P.C., the law firm initially hired by the Debtors. The Debtors have also tapped Klestadt Winters Jureller Southard & Stevens, LLP, as conflict counsel; Goldin Associates, LLC, as financial advisor; RSR Consulting LLC as restructuring consultant; and Epiq Bankruptcy Solutions, LLC, as administrative agent. Kwok Yih & Chan serves as special counsel. On Nov. 10, 2016, William Brandt, Jr., was appointed as Chapter 11 trustee for CFG Peru Investments Pte. Limited (Singapore), one of the Debtors. Skadden, Arps, Slate, Meagher & Flom LLP serves as the trustee's bankruptcy counsel; Hogan Lovells US LLP serves as special counsel; and Quinn Emanuel Urquhart & Sullivan, LLP, serves as special litigation counsel. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Builders Worry as Condo Prices 'Skyrocket' -------------------------------------------------------------- Dominican Today reports that the rising prices of construction materials have forced the members of the Dominican Small and Medium Construction Companies (Copymecom) to halt their works as houses that were selling on blueprint during 2020, today cost up to RD$300,000 above what was agreed. "We cannot deliver apartments, nor build apartments, but much less return the money because they are already invested," said Copymecom president Eliseo Cristopher, according to Dominican Today. He cited as an example to Diario Libre, that "apartments that we had at RD$1.9 million are now at RD$2.4 million compared to 2020. Apartment prices have skyrocketed," the report relays. 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: Workers' Average Hourly Income Dropped in 2019 ------------------------------------------------------------------ Dominican Today reports that the Covid-19 pandemic has affected a reduction in the hourly payment received by workers and decreased their purchasing power, to such an extent that only last year, the average hourly income fell 7.7% in relation to 2019. This situation has led hundreds of families to reduce their purchasing power, notes the report. According to a report, the average hours worked per week represented a contraction of 1.1% in October-December 2020 compared to October-December 2019, causing a loss of income from work of 8.3% in the reference period, according to a report from the Central Bank. There is a lower interannual loss of the average hourly income in the formal sector, registering a reduction of 7.7% in relation to the fourth quarter of 2019, reaching RD125.1 per hour in October-December 2020, notes the report. In the informal sector, the hourly income of the average workers in that sector is about RD$87.9, thus presenting a 7.8% drop in relation to the RD$95.3 per hour reached in October-December of the year 2019. In this sense, the economist Rafael Espinal stated that one factor that led to the loss of purchasing power was inflation since the salary had an adjustment of 15% and 20%. This translated into a lack of purchasing power to cover the basic food basket, causing a deterioration in employees' quality of life, Dominican Today relates. He explained that the basic basket has risen to around 33,000 pesos, radiating a significant increase in the cost of food items. He also argued that most of these salaried workers have jobs below 25,000 pesos. In comparison, an important part has salaries of 15,000 pesos, reflecting that the average basket is above what salaried employees earn. The lowest-income quintiles have been the most affected due to the crisis caused by Covid-19 since they dedicate a significant part of their income to food, so if they have fewer resources, the less they can cover their food needs, according to the report. On the other hand, the workers suspended from their positions were 1,200,000 between formal and informal. However, with the reestablishment of economic activity in recent months, those in the informal sector have been reincorporating, as have the formal ones, notes the report. But "around 350,000 are still in a suspension process," the economist clarified. For his part, the economist and vice-dean of the Autonomous University of Santo Domingo (UASD), Antonio Ciriaco Cruz, confirmed that the fall in the purchasing power of Dominicans was aggravated as a result of the pandemic since the salary of formal and informal workers dropped 8%, adds Dominican Today. Cause of loss 1 Increase in the basket In October 2020, the cost of the family basket of the first quintile was located at 21,512.18 pesos and went to 22,020.79 pesos in January 2021, for a relative variation of 2.36 2 National Basket The cost of the basket National family member was located in January 2021 at 37,293.53, 2.06% more than in October 2020. 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 E R U ======= MINSUR SA: Moody's Affirms Ba3 CFR & Alters Outlook to Positive --------------------------------------------------------------- Moody's Investors Service has affirmed Minsur S.A.'s Ba3 corporate family rating and the rating on its senior unsecured notes due 2024. The outlook was changed to positive from negative. RATINGS RATIONALE The positive outlook reflects the completion of a large expansion project in Mina Justa, which will strengthen Minsur's business profile over the long term and provide a significant uplift in cash generation starting in the second quarter of 2021, while maintaining the company's competitive cost position. Minsur's Ba3 rating affirmation reflects the expected recovery of production levels in its existing operations, following volume disruptions related to social distancing measures and the government-imposed lockdown in Peru in early 2020, further supported by the ramp up of the B2 tailings reprocessing facility that will increase mine life and tin production at San Rafael mine. Once Mina Justa starts operations, Minsur will improve its business profile turning into a tin and copper producer, metals with positive long-term fundamentals that will account for 90% of the company's cash flows by 2022. This will support Minsur's cash generation leading to positive free cash flow by 2022 of around $350 million, better liquidity, debt reduction and improvement in credit metrics with Moody's adjusted debt-to-EBITDA below 1.5 times by 2022 from the 4.8 times in December 2020. Mina Justa is expected to produce on average 144 thousand tons of copper for the first five years with an expected average life of 16 years. Minsur's operating performance was affected during 2020 by a combination of lower volumes from the lockdowns in Peru and persistently low tin prices at an average of $16,028/MT for the first six months of 2020 that negatively compares to the $25,606/MT YTD average in 2021. Nonetheless, at the end of 2020 volumes for tin declined only 2% in comparison with 2019 due to higher production in B2 and Pitinga mine in Brazil. On top of this, the company continued executing the Mina Justa project that before the lockdown, was ahead schedule giving the company cushion to complete the project on schedule and on budget. Minsur's liquidity remained adequate with $348 million in cash and cash equivalents by year end 2020 due to the company's costs reduction initiatives and the favorable gold prices which accounted for 21% of revenues in 2020. Consequently, the company's EBIT margin (including Moody's adjustments) improved to 25.9% from 22.6%% in 2019. This led to a Moody's adjusted debt/EBITDA of 4.8 times at the end of 2020. As of that date, 56% or $766 million of total reported debt was related to Mina Justa's $900 million syndicated loan which was fully disbursed in March 2021. Minsur's Ba3 ratings remain supported by the company's high margins, along with its position as the third-largest tin producer worldwide. The company's credit quality is additionally supported by low costs and high-grade ore, largely because of its ownership of the San Rafael mine, the world's largest tin-producing underground mine; and the expected diversification into copper which will represent half of Minsur's cash flows from 2022 onward. The company's track record of strong credit metrics and liquidity is also credit positive. Minsur's ratings are constrained by its relatively low diversification when compared to other rated companies, with 90% of its cash flows generated in two mines and two metals, exposing Minsur to commodity price volatility. Minsur's relatively modest revenue size expected to reach $1.6 billion by 2021 compared to its global peers is an additional constraint. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS A rating upgrade would require evidence of the successful startup of operations of Mina Justa, generating positive free cash flow and maintaining its low cost position and adequate liquidity to carry out its operations and meet debt obligations. Quantitatively, a positive action would require leverage (total adjusted gross debt/EBITDA) below 3.0x and interest coverage (expressed by adjusted EBIT/interest expenses) to remain above 3.5x on a consistent basis. Negative pressure on Minsur's ratings would arise if the company fails to generate positive free cash flow, straining liquidity, with leverage (total adjusted gross debt/EBITDA) above 4 times on a consistent basis. Headquartered in Lima, Peru, Minsur S.A. (Minsur) is a majority-owned subsidiary of the Peruvian conglomerate Breca. The company is primarily a producer and seller of tin, copper and gold in Peru and Brazil, where it also produces tin, as well as niobium and tantalum alloys as byproducts at Taboca. Minsur revenues are expected to reach $1.6 billion in 2021 from $649 million in 2020. The principal methodology used in these ratings was Mining published in September 2018. =============== S U R I N A M E =============== SURINAME: Reaches Staff-Level Deal with IMF on $690MM Program ------------------------------------------------------------- In response to a request from the Government of Suriname, an International Monetary Fund (IMF) mission led by Ali Alichi held virtual meetings over the past several months to discuss IMF financial support for the authorities' economic reform program. At the end of the virtual mission, Mr. Alichi issued the following statement: "I am pleased to announce that the IMF staff completed policy discussions with the authorities and reached an agreement on a new medium-term program that could be supported by IMF resources of SDR 472.8 million (about US$ 690 million) under the Extended Fund Facility (EFF) with the duration of 36 months, over 2021-2024. If approved by the IMF Executive Board, SDR 39.4 million (about US$ 57.5 million) would be immediately available. Staff envisages that the IMF's Executive Board would consider approval of this agreement in the coming weeks, after the complete implementation of a set of important policies by the authorities, referred to as prior actions, and receipt of the necessary financing assurances. Debt relief from Suriname's official bilateral partners and additional financing from multilateral partners will be required to help ensure debt sustainability and close financing gaps. This will need to be complemented by progress toward a restructuring of commercial debt that will result in sufficient creditor participation to restore debt sustainability and close financing gaps. "The Surinamese government faced a difficult situation when it assumed office with high inflation, low international reserves, a large fiscal deficit, and significant fiscal and BOP financing needs. The already-serious economic situation was further exacerbated by the challenges arising from the Covid-19 pandemic and volatility in the terms of trade. "The Government of Suriname' home-grown economic program is centered on protecting and enhancing well-targeted support programs for the poor and most vulnerable and to ensure health spending is available to decisively counter the pandemic. To protect international reserves and increase Suriname's capacity to adjust to external shocks, the authorities are committed to pursuing a flexible exchange rate, to realign the official exchange so as to eliminate the current parallel market premium, and ensure monetary policy is effective in bringing down the current high rates of inflation. At the same time, the program aims at an important reduction in the fiscal deficit as well as a broad restructuring of public debt to restore the country to a sustainable debt position. "Suriname's economic reform program contains important steps to improve the country's institutional capacity for policymaking, including modernizing both the monetary and fiscal policy frameworks. A significant effort will be made to improve governance, strengthen the framework to counter money laundering, and tackle corruption. The government's plan also prioritizes garnering a clearer picture of the financial situation of the banking system and returning it to robust capitalization, liquidity, and profitability. "The authorities anticipate that their expansive policy efforts, through an inclusive consultative process with key stakeholders, combined with IMF financial support, will help catalyze financial support from other international financial institutions as well as debt relief from creditors. This in turn will result in a sustained economic development path with strong growth and job creation, a reduction in poverty, and improved living standards for all of Suriname's citizens. "IMF staff team would like to thank our counterparts from the Surinamese government and technical teams for their candid discussions and we stand ready to support Suriname and its people." As reported in the Troubled Company Reporter-Latin America on April 6, 2021, Fitch Ratings has downgraded Suriname's Long-Term Foreign Currency Issuer Default Rating (IDR) to 'RD' from 'C'. Suriname's Short-Term Foreign Currency IDR is affirmed at 'C'. The two issue ratings on Suriname's USD550 million notes due 2026 and USD125 million notes due 2023 on which the government has defaulted were downgraded to 'D' from 'C' and then withdrawn for the following reason: Bankruptcy of the rated entity, debt restructuring or issue/tranche default. ============= U R U G U A Y ============= BANCO DE LA NACION: Fitch Affirms 'CCC' LT IDRs ----------------------------------------------- Fitch Ratings has affirmed Banco de la Nacion Argentina's (Sucursal Uruguay; BNAUY) Long-Term Foreign Currency and Local Currency Issuer Default Ratings (IDRs) at 'CCC'. KEY RATING DRIVERS Ratings Influenced by Argentina's Operating Environment: BNAUY is a full branch of Banco de la Nacion Argentina (BNA) and part of the same legal entity. Its IDRs reflect Fitch's opinion on BNA's stand-alone credit profile, which does not take support into consideration. BNA is fully owned by the Argentine state and its liabilities (including its branches abroad) are guaranteed by the sovereign. In Fitch's view, BNA's creditworthiness is highly influenced by Argentina's volatile operating environment. In addition, BNA has a leading franchise and systemic importance in Argentina as the largest bank in terms of loans and deposits. In turn, BNAUY is the smallest bank in Uruguay due to its narrow business focus. It is fully integrated with the head office's structure, strategies, corporate governance practices and risk management procedures, and it operates through one main office. BNAUY has volatile profitability, a fairly liquid balance sheet, adequate capitalization and deteriorating asset quality and metrics. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: -- A downgrade of BNAU's IDRs would be triggered by a downgrade of Argentina's sovereign rating; -- The IDRs would also be pressured by a significant deterioration in BNA's financial profile caused by a deterioration in the Argentine operating environment; -- Any policy announcement in Argentina that would be detrimental to either BNA or BNAUY´s ability to service their obligations would be negative for their creditworthiness. Factor that could, individually or collectively, lead to positive rating action/upgrade: -- The IDRs of BNAUY would benefit from an upgrade of Argentina's sovereign rating. 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 BNAUY is a full branch of Banco de la Nacion Argentina (BNA) and part of the same legal entity. Its IDRs reflect Fitch's opinion on BNA's stand-alone credit profile, which doesn't take support into consideration. PROVINCIA CASA: Fitch Affirms 'CCC' LongTerm IDRs ------------------------------------------------- Fitch Ratings has affirmed Provincia Casa Financiera's (Provincia) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'CCC'. KEY RATING DRIVERS IDRs Provincia is a branch of Banco de la Provincia de Buenos Aires (BAPRO) and part of the same legal entity. Therefore, Provincia's IDRs reflect Fitch's opinion of BAPRO's stand-alone credit profile, which doesn't take support into consideration. Argentina's volatile operating environment, the bank's leading franchise and systemic importance in Argentina and the Province of Buenos Aires, with the second largest market share in terms of deposits and the fourth in terms of loans as of November 2020, highly influences BAPRO's credit profile. Fitch also considers the bank's ample liquidity, as well as its low capital base, weaker asset quality relative to domestic peers and high exposure to the public sector. BAPRO and Provincia are wholly owned by the government of the Province of Buenos Aires. BAPRO's liabilities (including those of its branches abroad) are guaranteed by the Province of Buenos Aires. In Uruguay, Provincia is small due to its narrow business focus. Its legal status as a casa financiera differs from a banking license because it is not allowed to raise resident deposits and has much lower regulatory costs. However, BAPRO is currently in the process of analyzing its strategy for its international operations, including Provincia. Due to the latter, Provincia has not initiated any credit activity since 2020. As part of the same legal entity, Provincia is fully integrated with its head office's structure, strategies, corporate governance practices and risk management policies and procedures. It operates through one office and reports to the Finance Division of BAPRO. RATING SENSITIVITIES IDRs Factors that could, individually or collectively, lead to negative rating action/downgrade: -- A downgrade of the sovereign rating of Argentina will result in the same action on BAPRO and, therefore, Provincia. -- The IDRs would be pressured by a significant deterioration in BAPRO's financial profile caused by a deterioration in the Argentine operating environment. -- Any policy announcement in Argentina that would be detrimental to either BAPRO or Provincia's ability to service their obligations would be negative for their creditworthiness. Factor that could, individually or collectively, lead to positive rating action/upgrade: -- The IDRs could benefit from an upgrade of Argentina's sovereign rating. 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 Provincia is a branch of Banco de la Provincia de Buenos Aires (BAPRO) and part of the same legal entity. Therefore, Provincia's IDRs reflect Fitch's opinion of BAPRO's stand-alone credit profile, which doesn't take support into consideration. ================= V E N E Z U E L A ================= VENEZUELA: Oil Exports to US Plummet by 99.08% in 2020 ------------------------------------------------------ The Latin American Herald Tribune reports that the regime of Nicolas Maduro is having the worst trade relations with the US in decades, with no signs of improvement in the short term, largely due to the harsh economic sanctions imposed by Washington as evidenced by US Census Bureau's USA Trade Online data released by the Venezuelan-American Chamber of Commerce and Industry (VenAmCham). The data showed that Venezuela had an overall trade with the US of $1.3 billion with an overall deficit of $964 million from $3.2 billion, or $1.9 billion (59.48%), in 2019, notes the report. The cash-strapped South American nation exported a total of $168 million in 2020, representing a steep drop of 91.33% ($1.7 billion) in comparison with the previous year, while only 9% went to crude oil exports for a total amount of $15 million, which translates into a whopping drop of 99.08% ($1.6 billion) from 2019. It is worth noting that crude oil was once Venezuela's main source of revenues and that Washington was its most important and loyal buyer, the report relates. On the other hand, US imports dropped 11.07% ($141 million) to reach $1.1 billion for all 2020. However, non-oil exports from the US to Venezuela experienced a 16.42% ($156 million) jump to $1.1 billion last year, according to data, notes The Latin American Herald Tribune. 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 * * *