/raid1/www/Hosts/bankrupt/TCRLA_Public/210521.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, May 21, 2021, Vol. 22, No. 96
Headlines
A R G E N T I N A
ARGENTINA: Economy Buckles After Leader Puts Politics First
ARGENTINA: Paris Club to Spare Country From $2.4BB Debt Default
B R A Z I L
BRASILPREV SEGUROS: Moody's Gives 'B1(hyb)' Rating to New Sub. Debt
VIACAO ITAPEMIRIM: Braves Long Odds to Launch Airline
C H I L E
RIPLEY CORP: Fitch Withdraws 'BB' Rating on Proposed USD Notes
C O L O M B I A
COLOMBIA: S&P Cuts Foreign Currency Sovereign Credit Rating to BB+
D O M I N I C A N R E P U B L I C
[*] DOMINICAN REPUBLIC: Businessmen Ask Property Rights Protection
P A R A G U A Y
PARAGUAY: S&P Affirms 'BB/B' Sovereign Credit Ratings
P U E R T O R I C O
NOSCE TE IPSUM: Taps Ojeda & Ojeda Law Offices as Special Counsel
V E N E Z U E L A
VENEZUELA: Hyperinflation Continues Uptrend, Locates at 33.4%
- - - - -
=================
A R G E N T I N A
=================
ARGENTINA: Economy Buckles After Leader Puts Politics First
-----------------------------------------------------------
Jorgelina Do Rosario and Patrick Gillespie at Bloomberg News report
that in late March, Argentine President Alberto Fernandez sent his
guy to Washington to smooth things over. With negotiations stalled,
Economy Minister Martin Guzman had meetings with U.S. officials and
the International Monetary Fund over its $45 billion loan.
Back home, Fernandez's populist vice president took to the
microphone to make one thing clear, according to Bloomberg News.
"We can't pay because we don't have the money," said Cristina
Fernandez de Kirchner, who held the nation's top job from 2007 to
2015, Bloomberg News notes. The IMF's terms are "unacceptable."
It was a telling moment. When Fernandez, 62, took office in the
final days of 2019, he presented himself as pragmatic. True, he'd
briefly been Kirchner's chief of staff within the Peronist left but
he accepted a role for capitalism and wouldn't allow Kirchner and
her loyalists to set the agenda, Bloomberg News relays.
Few would argue that he has succeeded.
In recent days, Kirchner further asserted her influence by stopping
the removal of an ally, a deputy energy minister in charge of key
electricity prices, Bloomberg News says.
"It's evident that the president is backing the core Kirchner wing
of his coalition," says Jimena Blanco, director of Latin America
research at consulting firm Verisk Maplecroft in Buenos Aires.
"That's going to create more tension and uncertainty," Bloomberg
News discloses
Indeed, six months before midterm elections, pragmatism is a
distant memory, Bloomberg News relays. A strategy that puts
political decisions above everything has squashed any plan to boost
exports, lower inflation and kick-start growth, Bloomberg News
notes. Exacerbated by the pandemic and too few vaccines, a
rudderless economy is having its revenge, Bloomberg News relays.
Social unrest, closed schools, packed hospitals, cabinet disputes
and a deteriorating business climate loom. Nearly 70% of ICU beds
are occupied, Bloomberg News notes. About 42% of Argentines live
in poverty, up from 26% in 2017.
Economic plight is so common, it's playground talk. Kids in Buenos
Aires know the dollar exchange rate, the level of inflation and
what a sovereign default means, Bloomberg News discloses.
Rising Disapproval
Argentina's government disapproval ratings have grown since July.
That's because Argentina has defaulted nine times and mostly been
run by those hostile to the Washington consensus. That changed
briefly in 2015 when Mauricio Macri won, Bloomberg News notes. He
tried to open the economy but recession unraveled his presidency,
bringing back the populists, Bloomberg News relays. People
expected Fernandez to strike a happy medium. They don't anymore,
the report relays.
It's been illegal for companies to fire workers for over a year.
Businesses face price freezes. Savers can only exchange pesos for
$200 a month, Bloomberg News discloses. If Argentines use their
credit card abroad, they pay a 30% "solidarity tax." The rich are
fighting against a new levy on wealth, Bloomberg News says.
Inflation will reach 50% again this year, while consumer confidence
is tanking, Bloomberg News relays.
Pandemic fatigue and finite resources are aggravating poor internal
coordination.
To be sure, Fernandez inherited Herculean challenges. In 2018,
Macri agreed to an IMF deal with unrealistic assumptions and failed
to stabilize the economy, Bloomberg News notes. He also passed on
high inflation, as Kirchner had done to him, Bloomberg News
relays.
Fernandez, who spent years lambasting Kirchner's leadership and
then set aside their differences, won the presidency having never
run for governor, mayor or congress, Bloomberg News discloses.
An official close to Fernandez says he hopes to get wages to beat
inflation but concedes that some of his policies, such as price
controls, aren't ideal, Bloomberg News says.
Juntos por el Cambio is his biggest opponent in the vote, which
chooses half the seats in the lower house and a third in the
senate, Bloomberg News relays. Buenos Aires Mayor Horacio
Rodriguez Larreta, the top opposition leader, pushed to reopen
schools and saw his popularity soar, Bloomberg News notes.
Bloomberg News relates that Fernandez suffered a heavy political
defeat when the Supreme Court ruled that the country's capital has
the autonomy to decide whether its schools can hold in-person
classes, rejecting a previous government order that classes be held
virtually to contain a second wave of the pandemic.
The president lambasted the top court's ruling, saying he will
continue focusing on protecting the population's health, Bloomberg
News relays.
"They can issue the rulings they want, we will do what we have to
do," he said at an event.
Fernandez may still benefit from surging commodity prices and some
stimulus at the IMF. But after restructuring $65 billion with
private creditors last year, IMF talks have bogged down and no plan
has emerged, Bloomberg News notes.
As a vaccine scandal over shots for VIPs erupted, Fernandez's
approval dropped to 36.7% by late April from a peak of 57% almost a
year ago, according to Buenos Aires-based pollster Management &
Fit, Bloomberg News discloses.
Much of the drop is over the economy. Argentines just endured a
three-year recession, where the peso lost 80% of its value and
people pulled half of their dollar deposits, leading to capital
controls, Bloomberg News relays.
Always Losing
President Fernandez aims for real wage growth before the mid-term
elections but inflation keeps eroding paychecks in Argentina.
The economy contracted in February, and a low-quality recovery
seems underway: Argentina gained 1.3 million informal jobs in the
second half of last year but shed 189,000 formal jobs, Bloomberg
News relays.
Companies, especially multinationals, are increasingly at odds with
the government as it talks about another basket of 100 essential
goods that would have prices frozen for half the year, according to
people with direct knowledge, Bloomberg News notes.
"Uncertainty turns into distress, distress into frustration, and
frustration into little desire to invest," says Alejandro Diaz, CEO
of AmCham Argentina, the lobby for U.S. companies in the country,
the report relays. When companies' costs rise more than double the
price of their products, "the temporary policy becomes structural,"
Bloomberg News discloses.
Amid the new Covid wave, Argentina has debt payments coming due
with limited foreign reserves, Bloomberg News relays. It owes $2.4
billion to the group of rich countries known as the Paris Club, due
this month, Bloomberg News relays. By September, it needs to start
repaying the IMF.
No IMF deal gets a green light without U.S. support. For now,
Argentina caught a break from Joe Biden's administration. A U.S.
effort to boost the IMF's reserves, known as SDRs, may offer
breathing room -- some extra cash in its stake at the IMF that it
could use to cover two principal payments later this year,
Bloomberg News notes.
"The IMF deal may not only narrow differences between the
opposition and ruling party, but also the differences within the
coalition itself," says Emmanuel Alvarez Agis, a former economy
vice minister under Kirchner. "Investors see that Argentina took
out an IMF debt that isn't compatible with the size of the economy,
Bloomberg News adds. The issue is, how do you get out of this
problem?"
About Argentina
Argentina is a country located mostly in the southern half of South
America. It's capital is Buenos Aires. Alberto Angel Fernandez is
the current president of Argentina after winning the October 2019
general election. He succeeded Mauricio Macri in the position.
Argentina has the third largest economy in Latin America. The
country's economy is an upper middle-income economy for fiscal year
2019, according to the World Bank. Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.
Standard & Poor's credit rating for Argentina stands at CCC+ with
stable outlook, which was a rating upgrade issued on Sept. 8,
2020.
Moody's credit rating for Argentina was last set at Ca on Sept. 28,
2020. Fitch's credit rating for Argentina was last reported on
Sept. 11, 2020 at CCC, which was a rating upgrade from CC. DBRS'
credit rating for Argentina is CCC, given on Sept. 11, 2020.
As reported by The Troubled Company Reporter - Latin American, DBRS
noted that the recent upgrade in Argentina's ratings (September
2020) follows the closing of two debt restructuring agreements
between the Argentine government and private creditors. The first
restructuring involved $65 billion in foreign-law bonds. The deal
achieved the requisite
participation necessary to trigger the collective action clauses
and finalize the restructuring on 99% on the aggregate principal
outstanding of eligible bonds. DBRS added that the debt
restructurings conclude a prolonged default and provide the
government with substantial principal and interest payment relief
over the next four years.
DBRS further relayed that Argentina is also seeking a new agreement
with the International Monetary Fund (IMF) to replace the canceled
2018 Stand-by Agreement. Formal negotiations on the new financing
began in November 2020. Obligations to the IMF amount to $44
billion, with major repayments coming due in 2022 and 2023.
ARGENTINA: Paris Club to Spare Country From $2.4BB Debt Default
---------------------------------------------------------------
Alonso Soto, Chiara Albanese, and Jorgelina Do Rosario at Bloomberg
News report that the group of rich government creditors known as
the Paris Club is willing to delay a $2.4 billion debt payment from
Argentina due this month if the nation meets certain conditions,
potentially averting a damaging default, according to three people
with direct knowledge of negotiations.
The club will spare Argentina from default if it misses the May 31
payment in the hope that the country can rework a $45 billion
credit with the International Monetary Fund, said one of the
people, who asked not to be named because the talks are private,
according to Bloomberg News. An agreement with the IMF may not
come until after Argentina's midterm elections later this year, the
person said, declining to specify the conditions that the group is
demanding, Bloomberg News relays.
The Paris Club secretariat declined to comment, citing its policy
not to publicly discuss ongoing negotiations. Argentina's economy
ministry press office didn't reply to a request of comment.
Argentina's President Alberto Fernandez extended his European tour
to meet IMF Managing Director Kristalina Georgieva in Rome in a bid
to drum up support for a delay and renegotiations with the IMF,
Bloomberg News notes. Argentina has formally asked the Paris Club
for more time to make the payment and is expecting to receive a
response by the end of the month, Bloomberg News says.
Georgieva said in a statement that the face-to-face gathering was
"very positive" and that she will consult IMF members on the
country's request for a reform to the organization's surcharge
policy, Bloomberg News relays.
"The goal is to reach an agreement as soon as possible, though we
can't be thinking of an accord that demands greater efforts from
the Argentine people," Fernandez said after the meeting, which
lasted over an hour at the Sofitel hotel in Rome, Bloomberg News
discloses.
Argentina dollar-denominated bonds due 2030 edged up 0.4 cents to
35.2 cents on the dollar and bonds due 2038 rose 0.6 cents to 37.3
cents on the dollar, the most in two months, Bloomberg News says.
The Argentine peso, which is managed by authorities through capital
controls, lost almost 11% this year in the second biggest
depreciation among emerging market currencies, Bloomberg News
discloses.
The deadline comes at a difficult time for the administration in
Buenos Aires, with the country in its third year of recession,
inflation approaching 50% and unemployment over 10%, Bloomberg News
notes. While analysts' estimates of its cash reserves vary, some
calculations have put them near zero since September of 2020,
limiting Argentina's capacity to meet its international
obligations, Bloomberg News relays.
International Pariah
The temporary Paris Club waiver aims to ease the economic ravages
wrought by the pandemic, but it needs to be tied to conditions so
it doesn't turn into a habit, said one of the sources, Bloomberg
News notes. Argentina has defaulted on its overseas debt nine
times in its history, Bloomberg News discloses.
"Nobody wants Argentina to become an international pariah again,"
said Rodrigo Olivares-Caminal, a professor in banking and finance
law at Queen Mary University of London. "A default would be
negative for Argentina and its creditors. But I'm concerned about
Argentina's endemic balance of payment problem."
In May 2014, Argentina reached a deal with the Paris Club to repay
a $9.7 billion debt after 13 years in default, Bloomberg News
relays. The debt was supposed to be repaid over a five-year
period, but the country's latest financial troubles delayed the
final payments due this month. Creditors include the U.K., Italy,
Spain and Canada, Bloomberg News notes.
A Paris Club rule known as a "conditionality principle" states that
the group only negotiates debt restructuring with debtors that have
"a demonstrated track record of implementing reforms under an IMF
program," according to the group's website, Bloomberg News notes.
Argentina ceased following guidelines from a program with the IMF
after a change of administration in late 2019, and talks for a new
plan have stalled, Bloomberg News adds.
About Argentina
Argentina is a country located mostly in the southern half of South
America. It's capital is Buenos Aires. Alberto Angel Fernandez is
the current president of Argentina after winning the October 2019
general election. He succeeded Mauricio Macri in the position.
Argentina has the third largest economy in Latin America. The
country's economy is an upper middle-income economy for fiscal year
2019, according to the World Bank. Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.
Standard & Poor's credit rating for Argentina stands at CCC+ with
stable outlook, which was a rating upgrade issued on Sept. 8,
2020.
Moody's credit rating for Argentina was last set at Ca on Sept. 28,
2020. Fitch's credit rating for Argentina was last reported on
Sept. 11, 2020 at CCC, which was a rating upgrade from CC. DBRS'
credit rating for Argentina is CCC, given on Sept. 11, 2020.
As reported by The Troubled Company Reporter - Latin American, DBRS
noted that the recent upgrade in Argentina's ratings (September
2020) follows the closing of two debt restructuring agreements
between the Argentine government and private creditors. The first
restructuring involved $65 billion in foreign-law bonds. The deal
achieved the requisite participation necessary to trigger the
collective action clauses and finalize the restructuring on 99% on
the aggregate principal outstanding of eligible bonds. DBRS added
that the debt restructurings conclude a prolonged default and
provide the government with substantial principal and interest
payment relief over the next four years.
DBRS further relayed that Argentina is also seeking a new agreement
with the International Monetary Fund (IMF) to replace the canceled
2018 Stand-by Agreement. Formal negotiations on the new financing
began in November 2020. Obligations to the IMF amount to $44
billion, with major repayments coming due in 2022 and 2023.
===========
B R A Z I L
===========
BRASILPREV SEGUROS: Moody's Gives 'B1(hyb)' Rating to New Sub. Debt
-------------------------------------------------------------------
Moody's America Latina Ltda. has assigned a Ba2 (Global Local
Currency Scale) and Aa1.br (Brazilian National Scale) insurance
financial strength ratings to Brasilprev Seguros e Previdencia S.A.
Also, Moody's has assigned B1(hyb)/Baa1.br(hyb) ratings to its
proposed subordinated debt of up to BRL550 million of 5-year fixed
rate. The proceeds of the notes are expected to be used for general
corporate purposes. The outlook on the ratings is stable.
The following ratings have been assigned to Brasilprev:
Insurance Financial Strength at Ba2/Aa1.br
Local currency subordinated debt rating at B1(hyb)/Baa1.br(hyb).
Outlook: stable
RATINGS RATIONALE
According to Moody's, the Ba2 and Aa1.br IFS ratings reflect the
company's leading position in the Brazilian life insurance market,
with a very strong position in the annuities segment, as well as
its historic solid profitability and liquidity. Brasilprev's credit
profile also benefits from the affiliation and integration with
Banco do Brasil S.A. (Ba2 stable).
Somewhat counterbalancing the company's strengths are the inherent
credit risk of Brasilprev's investment portfolio, which has
significant concentration in Brazilian sovereign bonds (Ba2,
stable) - thus limiting its asset quality, capitalization, and
overall credit rating. Furthermore, Brazil's moderate operating
environment risk is also a factor in Brasilprev's IFS ratings.
Moody's pointed out that the company's guaranteed liabilities,
although in run-off, expose the company to potential
spread-compression and reinvestment risks and pose challenges
regarding and technical reserving practices, which limit
Brasilprev's overall credit profile.
Moody's noted that Brasilprev's products are largely distributed
through Banco do Brasil's vast branch network, among the largest in
the country, which enables the insurer to maintain a very
competitive expense structure, as compared with many of its life
insurance peers. This also allows Brasilprev to capitalize on
growth opportunities in savings-based annuity products, an area in
which bancassurers have dominated in Brazil. Furthermore, the
strength of the group's brand name is a key competitive advantage,
particularly since the retail market for life, pensions and annuity
products in Brazil is largely influenced by the brand recognition
of the bank supporting the company.
Moody's commented that Brasilprev is among the leading providers of
life and pension products in the Brazilian market, whose core
products VGBL and PGBL (tax-deferred annuities) carry moderate risk
reserves, which is a credit positive consideration to the company's
profile. However, Brasilprev continues to manage the so-called
traditional plans (Fundo Garantidor de Beneficio – FGB),
currently in run-off, that have medium to high risk profile,
because these are long-term asset-intensive plans and exposed to
guaranteed interest rates, including local inflation for some
annuities. As a consequence, this product makes the company
vulnerable to both interest rate and longevity risk. This is
partially offset by the fact that the insurer has most of its
long-term liabilities matched with assets with similar durations
and same index denomination.
Moreover, Moody's noted that Brasilprev has historically generated
strong earnings, with a 5-year average Moody's adjusted
return-on-capital (ROC) metric at 36.5%, which is higher than local
and regional peers. However, the company's inflation-linked
guaranteed liabilities expose the company to market fluctuations
and volatility, that could eventually reduce internal capital
generation.
Commenting on the company's capitalization, Moody's views
Brasilprev's capital adequacy to be moderate relative to its
incumbent risks. In addition, Brasilprev continues to exceed the
local minimum capital requirements and reported in December 31,
2020, a regulatory solvency margin of 122% of the required
capital.
Moody's views, Brasilprev's liquidity to be adequate - including
Brazilian government bonds as an important source of liquidity.
Whereas the Brazilian government bonds may be considered relatively
liquid within the local market, their overall credit quality and
inherent volatility limits their liquidity benefit in a stress
scenario for the country and the company. Additionally, given the
benefits provided by the VGBL and PGBL products for long-term
investments, in the form of tax savings for individuals, Moody's
expect the persistency of these liabilities to remain high with
relatively low amounts of surrender by policyholders.
Brasilprev's B1(hyb) subordinated, unsecured, non-callable 5-years
notes rating reflects the agency's typical two-notch difference
between the operating company's IFS rating and its note rating,
because of the subordination of the notes to policyholder claims.
Following the note issuance, Moody's expects Brasilprev's adjusted
financial leverage metric to remain on or below 15% (at year-end
2020, its adjusted financial leverage was 0%). Furthermore, this
issuance will enhance Brasilprev's capital adequacy metrics.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Brasilprev's Ba2 IFS rating is aligned to Brazil's Ba2 sovereign
which reflects the company's close linkages between its credit
profile and that of the Brazilian sovereign. Brazil's Ba2 sovereign
rating has a stable outlook, and, therefore, there is not upward
pressure on the ratings.
Conversely, Brasilprev's ratings could be downgraded if: 1) Assets
and Liability Management (ALM) mismatches intensified, with fewer
than 50% of the IGP-M liabilities being covered by equivalent
sovereign bonds; 2) its capital adequacy weakens; or 3) a downgrade
of Brazil's sovereign rating or a deterioration of the country's
operating environment.
Headquartered in Sao Paulo, Brazil, Brasilprev reported net profit
of BRL912 million and contributions of BRL41.1 billion for the
fiscal year ended December 31, 2020. As of that date, the company
reported total assets of BRL313 billion and shareholders' equity of
BRL4.3 billion.
The principal methodology used in these ratings was Life Insurers
Methodology published in November 2019.
VIACAO ITAPEMIRIM: Braves Long Odds to Launch Airline
-----------------------------------------------------
Marcelo Rochabrun at Reuters reports that Brazilian bus company
Itapemirim is launching a new airline in June, betting it can dodge
the financial ruin that has grounded many rival carriers even
though the land transport company just spent five years
reorganizing under bankruptcy protection.
The carrier expects to have a fleet of 50 Airbus A320 planes by
next year, all painted in Itapemirim's signature bright yellow
color, trying to beat the odds that have led 11 airlines to fail in
Brazil so far this century, according to Reuters.
"We have the intention of being the largest airline in Brazil, with
all due respect to our competitors," said Sidnei Piva, president of
Grupo Itapemirim, which will emerge from bankruptcy this month, the
report notes.
"We are not going to stop at just those 50 aircraft, we plan to
multiply that number several times," he added.
Key to its business pitch is selling tickets that mix air and bus
travel, lowering travel time between Brazil's smaller cities
without adding much to the cost, Reuters notes.
The idea of a bus company starting an airline is not as unusual as
it might seem in Brazil, where the founders of country's largest
carrier Gol Linhas Aereas Inteligentes (GOLL4.SA) also made their
initial fortune in bus transport, Reuters discloses.
But Gol and Brazil's other main domestic carriers, Azul SA (AZUL.N)
and LATAM Airlines Group (LTM.SN) are struggling because of their
large debt and low liquidity -- worsened by the pandemic's severe
blow to demand, Reuters relays.
LATAM filed for bankruptcy last May, while Gol and Azul drag a
combined 33 billion reais ($6.27 billion) in accumulated losses,
the report recalls.
Still, a rival with a clean balance sheets could upend the market,
analysts say, the report notes. Piva said Itapemirim does not have
debt payments for the next four years and is running on a $500
million investment from a United Arab Emirates sovereign fund that
he declined to name, the report relays.
Piva added that Itapemirim will not follow the ultra low-cost model
that is in vogue now but will instead focus on a high quality of
inflight service, generous leg room and free checked bags, the
report notes.
Rivals in Brazil and the rest of the world have generally moved
away from that model, lowering ticket prices but then selling other
services as add-ons, the report adds.
About Viacao Itapemirim
Viacao Itapemirim, S.A. is a provider of interstate passenger bus
transportation services in Brazil. It also offers freight
transportation services. The company was founded in 1953. To
learn more, visit https://www.itapemirim.com.br.
Viacao Itapemirim, S.A., filed a Chapter 15 bankruptcy petition
(Bankr. S. D. Florida Case No. 18-24871) on Nov. 29, 2018. The
Debtor estimated $100 million to $500 million in assets and
liabilities. The Hon. Robert A. Mark is the case judge. SEQUOR
LAW, led by Leyza F. Blanco, Esq., is Foreign Representative's
Bankruptcy Counsel.
=========
C H I L E
=========
RIPLEY CORP: Fitch Withdraws 'BB' Rating on Proposed USD Notes
--------------------------------------------------------------
Fitch Ratings has withdrawn the 'BB' rating on the proposed USD
notes from Ripley Corp. S.A. The Long-Term Issuer Default Rating
(IDR) of 'BB' of Ripley Corp. was not affected by this withdrawal.
Fitch has withdrawn the rating on Ripley Corp.'s proposed senior
unsecured USD notes as the company has decided not to proceed with
the issue at present.
KEY RATING DRIVERS
Key Rating Drivers do not apply as the rating has been withdrawn.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
===============
C O L O M B I A
===============
COLOMBIA: S&P Cuts Foreign Currency Sovereign Credit Rating to BB+
------------------------------------------------------------------
S&P Global Ratings lowered its long-term foreign currency sovereign
credit rating on Colombia to 'BB+' from 'BBB-' and its long-term
local currency rating to 'BBB-' from 'BBB'. The outlook on its
long-term ratings is stable. S&P also lowered its short-term
foreign currency rating to 'B' from 'A-3' and its short-term local
currency rating to 'A-3' from 'A-2'.
S&P revised down Colombia's transfer and convertibility assessment
to 'BBB'.
Outlook
S&P said, "The stable outlook reflects our expectation of economic
recovery in 2021 following the significant contraction last year.
The combination of renewed GDP growth and certain fiscal measures
is likely to gradually curtail Colombia's fiscal deficits,
resulting in net general government debt stabilizing above 60% of
GDP. The stable outlook also incorporates our expectation for an
institutional solution to recent and significant social unrest,
which would result in prospects for political and institutional
stability for the medium to long term."
Downside scenario
S&P could lower S&P's ratings on Colombia in the next 12 to 18
months if the potential long-term damage caused by the pandemic,
other domestic developments, or new external shocks prevent the
Colombian economy from recovering in 2021 and result in
lower-than-expected GDP growth in subsequent years. Such a scenario
would most likely result in consistently higher fiscal deficits
than currently projected and a steady increase in the government's
debt burden, leading to a downgrade. A perceived deterioration in
Colombia's institutional effectiveness, evidenced by an inability
to form political and social consensus to sustain growth and its
fiscal profile, could also lead to a downgrade.
Upside scenario
S&P could raise its ratings on Colombia within the next 12 to 18
months if economic growth is faster than expected, coupled with
structural fiscal measures that reduce Colombia's fiscal financing
gap, lower the debt burden, and strengthen public finances. A
larger and more diverse export sector, helping to reduce external
vulnerability and strengthen economic resilience, could also lead
to an upgrade over the medium to long term.
Rationale
The downgrades follow the withdrawal of a fiscal reform introduced
to Congress in a context of high spending pressures, which has
resulted in a significantly lower likelihood of Colombia improving
its fiscal position following a recent and marked deterioration.
Given the country's high external vulnerability and moderate
economic profile (balanced by adequate institutions and monetary
credibility), in S&P's view Colombia's debt levels, stabilizing at
about 60% of GDP during 2021-2024, and relatively large fiscal
deficits are no longer consistent with an investment-grade ('BBB-'
or higher) foreign currency rating.
An ambitious fiscal reform proposal presented to Congress on April
15, 2021, aimed to finance transitory and structural higher
spending -- mainly transfers to the most vulnerable segments of the
population -- while helping to consolidate fiscal deficits. The
fiscal reform was expected to be diluted during the Congress debate
but to yield some additional and permanent current revenue.
Instead, it was met by marked political opposition and protests
from some segments of the population. While the larger protests
since April 28 have been mostly peaceful, some violence has also
occurred. These developments forced the government to withdraw the
fiscal reform proposal by May 2, 2021.
The government, under new leadership at the Ministry of Finance, is
looking to conciliate with various groups participating in the
protests, as well as other social groups, and garner political
support across party lines to make an alternate fiscal policy
proposal. Prospects for substantial structural reforms are low in
the near term, given ongoing protests and the approach of national
elections next year. COVID-19 exacerbated the weakness in
Colombia's fiscal profile, though the worsening trend was present
for most of the past decade. Moreover, as in many other emerging
markets, the pandemic showed the substantial weakness of the
country's safety nets, which will most likely drive spending growth
over the long term.
The COVID-19 pandemic and its related economic contraction
significantly widened Colombia's fiscal deficit. Discounting the
transitory fiscal impact of the economic contraction and absent
structural fiscal improvements, S&P expects the change in net
general government to be 3%-4% of GDP in 2021-2024. Conversely,
renewed economic growth should contribute to stabilizing net
general government debt at about 60% of GDP during 2021-2024,
compared with 43% in 2019. The general government interest burden
is expected at just below 15% of general government revenue for
2021-2024.
Colombia's rating fundamentals remain weaker than those of
similarly rated peers. That said, in S&P's opinion, Colombia's
flexible credit line with the IMF, its expectation of adequate
access to the international debt markets, and a credible and
efficient monetary policy continue to mitigate external risks and
support Colombia's creditworthiness.
Environmental, social, and governance (ESG) credit factors for this
credit rating change:
-- Health and safety
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
DOWNGRADED; CREDITWATCH/OUTLOOK ACTION
TO FROM
Colombia
Sovereign Credit Rating
Foreign Currency BB+/Stable/B BBB-/Negative/A-3
Local Currency BBB-/Stable/A-3 BBB/Negative/A-2
DOWNGRADED
TO FROM
Colombia
Transfer & Convertibility Assessment
Local Currency BBB BBB+
Senior Unsecured BBB- BBB
Senior Unsecured BB+ BBB-
===================================
D O M I N I C A N R E P U B L I C
===================================
[*] DOMINICAN REPUBLIC: Businessmen Ask Property Rights Protection
------------------------------------------------------------------
Dominican Today reports that the Pro-Development Association of
Punta Rucia, in Villa Isabela, requested the intervention of the
Attorney General of the Republic, Miriam German, to make the
process of revision of the boundaries of the lands of the
municipality of Punta Rucia transparent. The revision will be
carried out by surveyors from May 12 to 14, on the instructions of
the Public Prosecutor's Office of this province, according to
Dominican Today.
In a meeting, the spokesman of the entity, Juan Duran Bisono,
denounced that the invasion of lands by unscrupulous people affects
more than 150 owners who have their legal titles, and showed his
concern because this bad practice puts the tourist development of
the zone where there are also foreign investors at risk, the report
notes.
"We request the intervention of the Attorney General's Office and
the Regional Directorate of Cadastral Measurement, so that the
transparency and legality of the inspection of these properties can
be determined and the State can guarantee the investments made in
the area," he added.
The Pro-Development Association of Punta Rucia also called on the
National Police and the Specialized Tourism Security Corps (Cestur)
to be alert to these malicious initiatives, the report relays.
"Our area has an enormous tourist potential, with a high level of
both local and international investors and the result of the
situation of unrest and the lack of guarantee of the properties
endangers the climate of legal security and the development of the
community," indicated Bisonó, the report discloses.
The Pro-Development Association of Punta Rucia, in Villa Isabela,
Puerto Plata, is made up of legitimate owners who do not want to
see their land usurped by people who do not have documents that
guarantee them as legitimate owners, 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).
===============
P A R A G U A Y
===============
PARAGUAY: S&P Affirms 'BB/B' Sovereign Credit Ratings
-----------------------------------------------------
S&P Global Ratings affirmed its 'BB/B' long- and short-term
sovereign credit ratings on Paraguay. The outlook remains stable.
S&P's transfer and convertibility assessment is unchanged at
'BB+'.
Outlook
S&P said, "The stable outlook indicates our expectation that in the
next 12-18 months, with the projected economic recovery underway,
Paraguay would gradually reduce fiscal deficits and contain debt
buildup. We expect that the government's commitment to fiscal
consolidation, including its efforts to strengthen its fiscal
framework, will help offset the recent erosion in Paraguay's debt
burden and external debt profile."
Downside scenario
S&P could lower the rating over the next 12-18 months if renewed
political instability undermines the government's capacity to
normalize its fiscal accounts, resulting in potentially large
fiscal deficits. Furthermore, worse-than-expected economic
performance or inadequate policy responses that hurt Paraguay's
long-term growth trajectory could also lead to a downgrade.
Upside scenario
S&P said, "We could raise our ratings over the next 12-18 months if
more effective policymaking and strengthening governance reduce the
risk of political instability, thereby bolstering investor
confidence. We could also raise the rating if the economy becomes
more resilient as a result of continued diversification, lower
vulnerability to volatility in commodity prices and adverse weather
conditions, and higher per capita income."
Rationale
S&P's ratings on Paraguay balance its sound macroeconomic
fundamentals, still-favorable fiscal framework, and relatively
strong growth prospects, with weak political institutions. Despite
a temporary hike in government deficits and debt due to the impact
of the COVID-19 pandemic, Paraguay's comparatively low narrow net
external debt and net general government debt burden are key rating
strengths.
On the other hand, Paraguay's political fragility and evolving
political institutions affect the long-term predictability of its
policymaking. In spite of significant economic growth and social
progress over the past two decades, the economy remains vulnerable
to volatility in commodity prices and weather conditions, given its
concentration in agriculture. Furthermore, monetary policy
flexibility is limited because of the shallow domestic markets and
high level of dollarization in the financial system.
Institutional and economic profile: Macroeconomic stability and
prudent fiscal framework are balanced by weak institutions and
political fragility
-- S&P expects Paraguay's economy to rebound to 3.5% growth in
2021 and approach 4% growth thereafter, following two years of
economic contraction.
-- The government's fiscal consolidation and reactivation plan
continues to reflect Paraguay's commitment to macroeconomic
stability and overall fiscal prudence.
-- Still-developing institutions, relatively weak checks and
balances, and political fragility limit long-term predictability
and effectiveness of policymaking.
S&P views Paraguay as making progress on the economic and
institutional fronts, with a strong commitment to macroeconomic
stability and fiscal prudence. Nonetheless, weak checks and
balances between institutions and political fragility constrain
overall policy implementation and effectiveness. Moreover,
corruption perceptions remain relatively high, and the country
ranks poorly in Worldwide Governance Indicators, such as government
effectiveness and rule of law.
Despite the recent shift in policy to strengthen the social safety
net due to COVID-19, the government presented a "fiscal
consolidation and reactivation plan," which underscores its
commitment to stabilize fiscal deficits and debt. Among other
topics, it includes an infrastructure plan to be implemented over
the coming years, as well as enhancements to its Fiscal
Responsibility Law, including a debt ceiling cap and spending
growth restrictions during fiscal correction periods.
Continued progress on strengthening the country's institutional
framework could boost private investment, improve long-term GDP
growth prospects, and mitigate the risk from potential political or
policy instability. A key institutional challenge will be the
potential revision of Annex C of the Itaipú Treaty, which sets
rules on electricity tariffs and royalty and compensation payments
from the hydroelectrical dam shared with Brazil. As the debt
service payments related to the construction of the dam are fully
paid down by 2023, there could be positive macroeconomic
implications for Paraguay's economic, external, and fiscal
outcomes.
Despite relative success at controlling the spread of the pandemic
in 2020, Paraguay's health and social situation has deteriorated
sharply amid a new wave of COVID-19 since the beginning of 2021,
with an increase in cases and deaths. This sparked social protests
throughout the country and led to a renewed presidential
impeachment attempt in March 2021, which was again quickly buried
in Congress. Despite measures implemented in 2020 to contain the
virus, delays in vaccinations and high hospitalization rates could
result in further mobility restrictions.
S&P said, "Nonetheless, we think the high dependence on the
agriculture sector has helped to partially contain the economic
fallout of COVID-19, by mitigating the severe impact on the service
sector. We expect that GDP will rebound to 3.5% in 2021, following
the combined shock of COVID-19 in 2020 and unfavorable weather
conditions in 2019.
"Private consumption recovery and temporarily higher commodity
prices will also contribute to an economic rebound in 2021 and
subsequent growth, which we expect to average 4% during 2022-2024.
We expect Paraguay to recover to its pre-pandemic GDP level before
the end of 2021, which is better than most peers in the region."
Per capita GDP would slightly recover to about $5,400 over the next
three years, close to its level at the end of the last commodity
cycle in 2013. Per capita income was below $2,000 two decades ago.
Despite Paraguay's substantial economic and social progress over
the past two decades (increasing wealth and reducing poverty and
inequality), the social situation remains fragile, with labor
market informality around 70%. Furthermore, the economy remains
concentrated in agricultural products, making it vulnerable to
adverse weather conditions and volatile commodity prices.
Flexibility and performance profile: Extraordinary relief measures
will be gradually withdrawn in the coming years, only marginally
deteriorating Paraguay's fundamentals
-- S&P expects fiscal deficits to narrow in the coming years,
following the temporary sharp increase in 2020.
-- Net general government debt is likely to increase above 30% of
GDP in the aftermath of the pandemic and recession.
-- The central bank's monetary package of 4% of GDP has helped
eased pressures in the financial system during COVID-19, and we
expect these measures to be gradually rolled back, while keeping
inflation well-anchored around the target of 4%.
S&P said, "We expect fiscal deficits to gradually narrow over the
next three years as the government implements its fiscal
consolidation and reactivation plan. Fiscal correction would mainly
come from the withdrawal of extraordinary measures that were
implemented in response to COVID-19 in 2020, and curtailing
infrastructure spending following the record high in 2020 (about
3.6% of GDP). To avoid further fiscal slippage, the government
announced progressive cuts to public-sector wages and is advancing
on reforms to increase spending efficiency. The government
implemented a broad fiscal package of 5.5% of GDP in 2020, which
included direct money transfers to individuals and a reallocation
of spending to the health care system, among other measures.
"On the other hand, revenues would increase as the economy picks up
and following gains from the tax modernization and simplification
law, which was implemented in 2020 but had limited results given
the pandemic. Given the combined external shocks in 2019-2020, we
do not expect significant tax reforms during the next couple of
years.
"As a result, we expect the change in net general government debt
to average 3.4% of GDP in 2022-2024, narrowing from the average
7.3% in 2020-2021, which included extraordinary and transitory
COVID-19-related spending. We are using the flexibility in our
sovereign criteria to take into account the temporary impact of the
one-off extraordinary shocks in 2020-2021, and focusing on
medium-term structural fiscal prospects.
"We expect that the government will continue to finance its fiscal
consolidation plan through a drawdown in cash reserves and further
borrowings, mainly from international bond issuances given the
shallow domestic capital markets. As a result, net general
government debt is likely to increase to 31% of GDP in 2022-2024,
compared with 15% in 2019, but still below international peers with
similar levels of development. During the same period, interest
payments would remain about 6% of government revenues.
The increasing external debt issuances in foreign currency have
raised the exposure to exchange-rate movements, since about 87% of
the government's debt stock is denominated in U.S. dollars. The
currency exposure is only partially mitigated by hard-currency
royalties and compensation payments from hydroelectric dams.
Another risk to Paraguay's debt profile is that nonresidents hold a
significant share of commercial debt, adding further risk to
potential sudden changes in investor confidence and capital
outflows.
The combination of higher external debt issuance and adverse
movements in the exchange rate is also likely to marginally worsen
Paraguay's external profile. S&P expects narrow net external debt
to increase to about 30% of current account receipts (CAR) over the
next three years. However, we project gross external liquidity
ratios will remain strong and stable, with gross external financing
needs estimated at 70% of CAR and usable reserves, given that much
of external debt has long maturities and is owed to official
creditors. Large inflows of foreign currency related to the central
government debt issuances translated into an increase in
international reserves to $10.1 billion in May 2021, equivalent to
about 27% of GDP, or almost 12 months of imports.
S&P expects Paraguay to post current account surpluses of about
0.5% of GDP over the next three years, following an extraordinarily
high surplus of 2.1% in 2020. The recovery in domestic demand will
increase imports, although compensated by higher exports from
agricultural products, mainly because of higher prices.
Paraguay's external openness, along with its export concentration
in both products and destinations, makes it vulnerable to external
shocks. Roughly two-thirds of exports come from soya, beef, grain,
and energy, while about 60% of exports are transported to Brazil
and Argentina, to be ultimately exported to China. Another
important segment of Paraguay's external sector is the "Maquila
Regime," which waives import duties for a number of inputs used in
the manufacturing of industrial exports, as well as provides other
tax benefits.
Paraguay's flexible exchange rate has helped to absorb negative
external shocks, containing the risk from export concentration. The
central bank occasionally intervenes in the foreign exchange market
to avoid excessive volatility, as seen in 2020, and as the
government needs resources in local currency for budgetary
purposes. However, the central bank does not target the exchange
rate.
Since the adoption of the inflation-targeting regime in 2011,
Paraguay has kept inflation in line with the central bank target
and has been slowly strengthening its supervision of the financial
system. S&P expects inflation to remain anchored close to the
target of 4%, suggesting an increasingly credible policy commitment
and anchored inflation expectations.
S&P said, "However, we weigh these strengths against what we view
as still high dollarization in the economy. The highly dollarized
Paraguayan economy reflects an economic structure that is tightly
linked to the external sector. While the risks are somewhat
counterbalanced by revenues also denominated in U.S. dollars from
the export sector, we believe that such high dollarization
continues to limit monetary flexibility."
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
Paraguay
Sovereign Credit Rating BB/Stable/B
Transfer & Convertibility Assessment
Local Currency BB+
Senior Unsecured BB
=====================
P U E R T O R I C O
=====================
NOSCE TE IPSUM: Taps Ojeda & Ojeda Law Offices as Special Counsel
-----------------------------------------------------------------
Nosce Te Ipsum, Inc. seeks approval from the U.S. Bankruptcy Court
for the District of Puerto Rico to employ Ojeda & Ojeda Law Offices
P.S.C. as its special counsel.
The firm will represent the Debtor in its collection actions.
As compensation, the Debtor has agreed to pay Ojeda a maximum of 10
percent of the amount owed to the Debtor, plus expenses, or $125
per hour, plus expenses, whichever is lower of the two in the event
that collection is effected prior to the filing of a complaint.
In the event that collection is effected after the filing of a
complaint, the firm will get 20 percent of the amount collected,
plus expenses, or $125 per hour, plus expenses, whichever is
lower.
In the event the case is appealed, Ojeda will get 30 percent of the
amount finally collected or $125 per hour, plus expenses, whichever
is lower.
As disclosed in court filings, Ojeda is disinterested within the
meaning of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Rafael A. Ojeda-Diez, Esq.
Ojeda & Ojeda Law Offices P.S.C.
P.O. Box 009023392
San Juan, PR 00902-3392
Tel: (787) 728-4120
Fax: (787)727-3177
Email: rafaelojeda@ojedalawpr.com
About Nosce Te Ipsum
Nosce Te Ipsum, Inc. owns a five-story building with office and
commercial spaces for lease, and adjacent parking lot structure in
Guaynabo, P.R., valued at $7 million. It classifies its business
as single asset real estate (as defined in 11 U.S.C. Section
101(51B)).
Nosce Te Ipsum filed a Chapter 11 petition (Bankr. D.P.R. Case No.
19-05155) on Sept. 9, 2019. In the petition signed by Maria De Los
A. Ubarri, general manager, the Debtor disclosed $7,046,991 in
assets and $5,210,939 in liabilities. Judge Brian K. Tester
oversees the case.
The Debtor tapped Charles A. Cuprill PSC Law Offices as bankruptcy
counsel, Ojeda & Ojeda Law Offices P.S.C. as special counsel, and
Tamarez CPA, LLC as accountant.
=================
V E N E Z U E L A
=================
VENEZUELA: Hyperinflation Continues Uptrend, Locates at 33.4%
-------------------------------------------------------------
The Latin American Herald reports that as expected by many economic
experts, hyperinflation in Venezuela didn't slow down as it resumed
its uptrend in April to hit 33.4%, an increase of 24.3 percentage
points from the previous month when price variation was 9.1%, the
lowest since the country entered the hyperinflationary process in
November of 2017, according to a monthly report by the Venezuelan
Finance Observatory (OVF) of the Legislature.
The report also showed that year-on-year inflation reached 2,840%
while accumulated inflation during the first four months of 2021
was located at 240.5%, according to The Latin American Herald.
"Inflation accelerated, once again, as a result of monetary
expansion," said Alfonso Marquina, an opposition lawmaker and
member of the OVF, the report notes. Marquina pointed out that
monetary liquidity increased by 36% in April which triggered
foreign exchange rates by 4.2%, the report relays.
"That's the cause for the 33.4% increase in price indexes in a
country where the majority of the population consumes imported
products," he added.
Services stood out as the category that experienced the most
increases with a variation of 43.9%, followed by miscellaneous
goods and services (38.7%); food and non-alcoholic beverages (38%);
home appliances (36.9%); and communications services (33%), the
report notes.
On the other hand, the basic food basket was located at Bs.746.35
million, or $289 if calculated at an average foreign exchange rate
of Bs.2.58 million per dollar, the report relays.
Hyperinflation had lost momentum in March because of a lower
increase in monetary liquidity and the payment of income tax by
businesses nationwide, which is strictly made - for now - in local
currency, 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 * * *