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       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

          Monday, June 7, 2021, Vol. 22, No. 107

                           Headlines



A R G E N T I N A

ARGENTINA: Navigates Pandemic With 60% of Children in Poverty
MASTELLONE HERMANOS: Fitch Lowers LongTerm IDRs to 'C'


B R A Z I L

BRAZIL: S&P Affirms BB-/B Sovereign Credit Ratings, Outlook Stable
CSN RESOURCES: Moody's Gives Ba3 Rating on New Sr. Unsecured Notes
ELETROBRAS: Fitch Affirms 'BB-' LongTerm IDRs, Outlook Negative
GOIAS TRANSMISSAO: Moody's Rates New BRL325MM Debentures 'Ba1'
PETROBRAS GLOBAL: Moody's Gives Ba2 Rating on New $1BB Global Notes

PETROBRAS GLOBAL: S&P Rates New Unsecured Notes Due 2051 'BB-'
PETROLEO BRASILEIRO: Fitch Rates New Unsec. Debt 'BB-'
TRANSENERGIA RENOVAVEL: Moody's Rates New BRL123MM Debentures 'Ba2'
TRANSENERGIA SAO PAULO: Moody's Rates New BRL112M Debentures 'Ba1'


C H I L E

INVERSIONES LATIN AMERICA: S&P Gives (P)'BB' on $404MM Sec. Notes


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Economy Recovers 77% of Lost Jobs
DOMINICAN REPUBLIC: Ensures China's Bird Flu Not a Problem


J A M A I C A

JAMAICA: Economy Contracts 5.7% in Jan.-March Quarter, PIOJ Says
JAMAICA: Int'l Tourist Arrivals Declined in First Quarter of 2021


X X X X X X X X

[*] BOND PRICING: For the Week May 31 to June 4, 2021

                           - - - - -


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A R G E N T I N A
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ARGENTINA: Navigates Pandemic With 60% of Children in Poverty
-------------------------------------------------------------
Veronica Dalto at EFE News reports that roughly 60% of Argentinian
children lived in poverty when the second wave of Covid-19
infections struck the country, according to the National Institute
of Statistics and Censuses (Indec).

High inflation and Covid-19 restrictions have curbed an economic
rebound, after the pandemic dealt a critical blow to Argentina's
economy, which was already going through a now three-year-long
recession, according to EFE News.

The number of 14-year-olds living in poverty increased by 5% from
the end of 2019 to the second half of 2020, when it reached 57.7%
of children, the report relays.

The current government, under Alberto Fernandez's leadership, will
once again impose new restrictions, and schools will only be
allowed to teach online, the report notes.

The report discloses that the renewed lockdown comes as child
poverty continues to grow, having surpassed the figures of late
2020.

"It is a fact that poverty rates increased in the first half of
this year, considering inflation runs rampant and incomes are being
taken away," said Jorge Paz, Unicef consultant and researcher at
the National Scientific and Technical Research Council of
Argentina, the report notes.

Inflation soared to a yearly 46.3% in April, according to Indec,
while the state's payments to ease unemployment woes start to
dissipate, although some social assistance programs were extended
last month, the report discloses.

During the second half of 2020, general poverty was as high as 42%,
whereas child poverty is higher due to poor households having more
children than wealthier families, the report says.

According to Paz, children in poverty in Argentina have greater
access to public health care and education than in other Latin
American countries, but the closure of schools to reduce Covid-19
infections was a dramatic blow for the kids, who could not benefit
anymore from food and drinking water available in schools, the
report 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.


MASTELLONE HERMANOS: Fitch Lowers LongTerm IDRs to 'C'
------------------------------------------------------
Fitch Ratings has downgraded Mastellone Hermanos Sociedad Anonima's
Long-Term Local and Foreign Currency Issuer Default Ratings (IDRs)
to 'C' from 'CC'. Fitch has affirmed the senior unsecured rating at
'CC' and the Recovery Rating was revised to 'RR3' from 'RR4'. The
above-average recovery rating of 'RR3' reflects an exchange offer
that extends the maturity of the tendered debt by five years,
lowers the coupon by about 1.7% but does not write down principal
and extends security consisting of property, equipment and a first
priority interest in a debt service account to the lenders.

The downgrade follows Mastellone's announcement of a debt exchange
on its existing USD200 million senior unsecured notes, which Fitch
treats as a distressed debt exchange (DDE) as per its criteria.
Fitch believes that other capital market-based remedies to the
notes' imminent maturity in July 3, 2021 are not viable due to
capital controls in Argentina, and the proposed plan is
Mastellone's only option to avoid a payment default.

Mastellone announced a proposed debt exchange on June 1, 2021 in
order to refinance its USD200 million notes due in July 3, 2021.
The new financing includes new five-year 10.95% senior secured
notes due in 2026. The group is offering to tender 81.5% of the
aggregate principal or USD162 million. If the proposed tender offer
is successfully completed, the IDR will be downgraded to Restricted
Default (RD). Subsequently, Fitch will re-rate Mastellone's IDRs to
a level that is consistent with the company's post-exchange capital
structure and risk profile, which would likely be within a low
speculative rating range.

KEY RATING DRIVERS

Exchange Offer Qualifies as DDE: Fitch believes the refinancing
plan is to avoid a payment default as Mastellone's ability to
transfer cash abroad to cover the USD200 million maturity is
restricted by government measures, and the company does not have
access to free cash flow or credit lines outside of Argentina that
mitigate these restrictions. The new transaction extends the
maturity date by five years and will lowers the coupon rate to
10.95% from 12.625% for the existing notes. The minimum tender
conditions required that at least 81.5% of the principal amount to
be tendered. The offer will expire on June 28, 2021.

Additional Financings: The exchange offer is subject to Mastellone
successfully obtaining around USD90 million through new financings,
consisting of the issuance of local unsecured notes for a total
amount of USD40 million, payable in pesos with an average maturity
of 30 months, and a five -year secured loan for a total amount of
USD50 million. The principal of the loan will amortize 17 quarterly
period beginning June 30, 2022. Both transactions need to be
completed by the settlement date.

Manageable Leverage: Mastellone's debt/EBITDA ratio is expected to
remain steady in 2021 with deb/EBITDA below 4x. The operating
environment in Argentina remains challenging due to depressed
economic conditions. Mastellone's sales increased by 25%
year-on-year in 1Q21 thanks to an increase in net average prices in
ARS as the company increased prices to offset inflation. Fitch
projects Mastellone's EBITDA to be about USD62 million in 2021 as
the company continues to raise prices to offset cost inflation.

Geographic Concentration: Mastellone generates almost all of its
sales in Argentina (CCC), and is exposed to hyperinflation and
other direct and indirect sovereign-related risks, including
currency depreciation. The company generated about 9% of sales in
Brazil (BB-/Negative) and Paraguay ('BB+'/Stable) and 12% from
exports in 2020.

Exposure to Currency Risk: Post restructuring, a significant
portion of Mastellone's debt will remain U.S. dollar-denominated,
which will continue to create currency risk, as its sales are
mainly in Argentine pesos. The decline in BCRA reserves to critical
levels is a major near-term policy challenge and has led to
stringent currency controls. It is unclear how the authorities will
eliminate these measures given the adverse macroeconomic
consequences associated with various policy options.

Volatility of Raw Milk Production: Mastellone's business is divided
among sales to Argentine, Brazilian and Paraguayan domestic markets
and exports. Excess raw milk supply is exported. A shortage of raw
milk production could interrupt the company's export and foreign
businesses or increase production costs.

Strong Business Position: Mastellone is the largest dairy company
and the leading processor of dairy products in Argentina.
Mastellone is first in the fluid milk market, based on physical
volume, with a market share of approximately 59%. The company
maintains the No. 1 or No. 2 market position in most of its product
lines. Strong market shares allow Mastellone to benefit from
economies of scale in production, marketing and distribution. The
company purchases about 13% of all raw milk in Argentina, which
provides it with a degree of negotiating power.

Arcor and Bagley Call Option: Arcor S.A.I.C. and Bagley Argentina,
S.A. together own about 49% of Mastellone's shares. Arcor has a
call option for outstanding corporate stock of Mastellone starting
in 2020. Fitch sees Mastellone as strategic for Arcor in the long
term.

DERIVATION SUMMARY

Mastellone is Argentina's largest dairy company and leading
processor of dairy products with a market share of 58.7% for fluid
milks. The 'C' rating reflects the exchange offer that Fitch views
as a distressed debt exchange to avoid bankruptcy. Mastellone has a
weaker position in scale, product diversification, profitability
and geographic diversification compared with international peers
such as Fonterra Co-operative Group Limited ('A'/Stable), Nestle SA
('A+'/Stable), Sigma Alimentos, S.A. de C.V. (BBB/Stable) and Arcor
('B'/Stable).

KEY ASSUMPTIONS

-- The proposed tender offer for Mastellone's unsecured notes is
    completed as expected;

-- Revenues grow, driven by domestic high double-digit price
    increases;

-- EBITDA of about USD62 million in 2021;

-- Debt/ EBITDA below 4x in 2021.

KEY RECOVERY RATING ASSUMPTIONS (Current Capital Structure)

The recovery analysis assumes that Mastellone would be reorganized
as a going-concern in bankruptcy rather than liquidated. Fitch has
assumed a 10% administrative claim. Mastellone's GC EBITDA would
reach ARS2.7 billion. This figure is conservative at 40% below the
company's LTM EBITDA of ARS4.5 billion, and takes into
consideration factors such as operational challenges due to
climatic events, changes in raw material costs, sourcing and
logistic issues, potential strikes or a shutdown of exports
markets. Fitch uses a multiple of 5x to estimate a value for
Mastellone because of its to strong brands and dominant position
the Argentina dairy business.

The recovery performed under this scenario resulted in a Recovery
Rating of 'RR3', which is above the Fitch's 'RR4' soft cap for
Argentina.

RATING SENSITIVITIES

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

-- Fitch does not anticipate a positive ratings action at this
    time given the announcement of a distressed debt exchange.
    Unsuccessful execution of the proposed debt exchange will
    likely result in a restructuring and a downgrade of the IDR.

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

-- Per Fitch's criteria, Mastellone's IDR will be downgraded to
    RD upon completion of the debt exchange. The IDR will
    subsequently be re-rated to reflect the post-DDE credit
    profile. Fitch currently expects the re-rated post-exchange
    IDR to be no higher than 'ccc' given the company's credit
    metric and exposure to Argentina.

BEST/WORST CASE RATING SCENARIO

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

LIQUIDITY AND DEBT STRUCTURE

Weak Liquidity: Mastellone's liquidity is weak. The company
reported cash and equivalents of approximately ARS1.6 billion and
ARS19.4 billion of short-term debt as of March 31, 2021. Debt is
mainly composed of 12.625% senior unsecured notes (USD200 million)
due July 3, 2021.

ISSUER PROFILE

Mastellone is the largest dairy company and the leading processor
of dairy products in Argentina. Mastellone is first in the fluid
milk market, based on physical volume, with a market share of
approximately 59%. The company maintains the No. 1 or No. 2 market
position in most of its product lines. Strong market shares allow
Mastellone to benefit from economies of scale in production,
marketing and distribution. The company purchases about 13% of all
raw milk in Argentina, which provides it with a degree of
negotiating power.

CRITERIA VARIATION

Fitch has revised the Recovery Rating of the existing 2021 bond to
'RR3' from 'RR4'. This recovery level exceeds the 'RR4' soft rating
cap that was established by the Country-Specific Treatment of
Recovery Rating Criteria for corporate bonds of Argentine issuers.
The above-average recovery rating of 'RR3' reflects an exchange
offer that extends the maturity of the tendered debt by five years,
lowers the coupon by 1.7% but does not write down principal and
extends security consisting of property, equipment and a first
priority interest in a debt service account to the lenders; it
further reflects the bespoke recovery analysis that placed the
recovery in the 'RR3' category.

ESG CONSIDERATIONS

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




===========
B R A Z I L
===========

BRAZIL: S&P Affirms BB-/B Sovereign Credit Ratings, Outlook Stable
------------------------------------------------------------------
S&P Global Ratings affirmed its 'BB-/B' long- and short-term
foreign and local currency sovereign credit ratings on Brazil. The
outlook on the long-term ratings remains stable. S&P also affirmed
its 'brAAA' national scale rating, and the outlook remains stable.
The transfer and convertibility assessment on Brazil is still
'BB+'.

Outlook

S&P said, "The stable outlook reflects our expectations for
economic recovery in 2021 and a gradual reduction of Brazil's
fiscal deficit, which should result in a slower pace of debt
accumulation in the coming two years as well as solid external
performance. We assume the modest improvement in the fiscal
trajectory and large fiscal buffers will help preserve market
confidence and adequate funding conditions for the government in
local markets."

Downside scenario

Persistent fiscal weakness over the coming two years, as a result
of poor growth or sluggish policy reaction, could translate into
further financing pressures for the government and higher debt
costs and inflation. This could lead to lower ratings, in
particular if it generates a persistently weak fiscal profile that
is an outlier compared with most global peers, or if it undermines
advancements in monetary policy credibility and flexibility or
weakens Brazil's external profile.

Upside scenario

Conversely, S&P could raise the ratings in the coming two years if
Brazil's fiscal performance improves markedly faster than expected,
reducing the accumulation of government debt over the medium term.
This could come from stronger growth or the advancement of planned
structural fiscal and productivity reforms.

Rationale

The unwinding of extraordinary fiscal support and dynamic tax
revenues should support an improvement in Brazil's public finances
this year, but deficits will nevertheless remain elevated in the
medium term absent meaningful structural fiscal reforms or higher
growth. The government's fiscal and microeconomic reform efforts
have continued amid the COVID-19 pandemic, albeit at a slow pace.
In our opinion, fluid political dynamics as presidential elections
approach, along with mild improvement in the economy, could
constrain efforts to garner broad congressional support for
legislation aimed at facilitating adherence to the constitutional
spending cap. In addition, amid the pandemic, at times there have
been mixed signals that undermined fiscal correction.

S&P projects a slight current account surplus in 2021 caused by
higher exports, the more favorable scenario for commodity prices,
and the depreciated real exchange rate. As the economy recovers and
travel restrictions are lifted, the current account balance will
return to moderate deficits, which will be entirely financed by
inward direct investments.

Brazil's strong external position, proactive monetary policy,
floating exchange rate, and favorable sovereign debt composition
are relative credit strengths that should enable it to address the
difficult conditions.

Institutional and economic profile: The window of opportunity to
discuss unpopular reforms is narrowing ahead of the 2022
presidential election

-- S&P expects economic growth to rebound to 4% in 2021, although
economic performance will remain mediocre in the medium term absent
a faster pace of approval of reforms.

-- Congress passed an emergency fiscal bill to try to preserve the
spending cap over the medium term.

-- Any backtracking of the authorities' commitment to the fiscal
consolidation process--albeit currently slow--would be a key risk
to Brazil's creditworthiness.

Brazil, along with the global economy, has felt a material impact
from the COVID-19 pandemic and the resultant economic downturn last
year. Nevertheless, the Brazilian economy's real GDP contraction of
4% in 2020 was relatively modest compared with many regional peers,
as a result of the authorities' large fiscal response.

International commodity prices have rebounded with greater global
demand, supporting an improvement in Brazil's terms of trade. Owing
to base effects from the 2020 contraction and external strengths,
we forecast economic growth in Brazil will rebound to 4% this year,
before moderating to 2.2% in 2022-2024. However, the enduring
nature of the pandemic creates significant uncertainty for Brazil's
economic and fiscal performance in the near term. The pace of
recovery for domestic demand will depend largely on the
authorities' ability to effectively distribute the vaccine.

The approval of microeconomic reforms in a number of sectors,
benign external conditions, and a large program of concessions
should bode well for investment. Nevertheless, the acceleration of
inflation and the monetary tightening cycle could hurt the
resumption of economic activity. In addition, structural
impediments--particularly, cumbersome tax rules, weak investment
expenditure, fiscal rigidities, and trade barriers--are likely to
continue to weigh on medium-term growth. Brazil's growth prospects
have been below those of other countries at a similar stage of
development, in S&P's view. S&P expects GDP per capita of US$7,107
for 2021.

The lack of a solid and stable government coalition in Congress and
the pressure to keep spending elevated in response to the ongoing
pandemic have posed challenges to swiftly advancing the country's
economic and fiscal agenda, in particular because several reforms
require constitutional amendments (PECs, by their Portuguese
acronym). Congress was nevertheless able to pass an emergency
constitutional amendment (PEC 186) in March 2021 that established
the activation of triggers (automatic spending cuts) if mandatory
spending subject to the spending cap surpasses the limit of 95% of
primary spending.

The reform will have a limited impact on public accounts in
2021-2022, although it represents an improvement in the fiscal
framework. While S&P doesn't expect important progress on complex
fiscal reforms in the coming two years, given challenging economic
and political dynamics, some changes--including an overhaul of
public service rules for new entrants and measures to reduce the
complexity of the tax system--could alleviate pressure on Brazil's
public finances and bolster private investment over the medium
term.

Meanwhile, the presidential election coming in October 2022 creates
uncertainty regarding economic and fiscal policies in a highly
polarized political landscape. It will be challenging to advance
fiscal consolidation and reforms as the election approaches and as
risks surrounding the course of the pandemic persist. President
Jair Bolsonaro and former President Luiz Inácio Lula da Silva are
expected to be competitive candidates despite their high rejection
rates. Post-election policy initiatives and the ability to
formulate strong coalitions will be key to Brazil's
creditworthiness.

S&P said, "Our institutional assessment is supported by a
macroeconomic framework of inflation targeting, which we expect to
be reinforced by the recently approved formal autonomy of the
central bank, a floating exchange rate, and transparent and ample
statistical information. We believe the political system has
maintained important checks and balances through political
transitions and even during recent episodes of weaker policy
performance. However, we think Brazil still faces significant
hurdles to creating political cohesion and coalition dynamics that
address structural fiscal rigidities and low productivity."

Flexibility and performance profile: The fiscal profile is set to
improve in 2021 following a severe deterioration amid the pandemic,
but debt will remain elevated

-- Gradual fiscal consolidation in 2021-2022 will likely reflect
stronger revenue and the unwinding of support measures, although
risks of additional spending will remain high.

-- The central bank initiated a monetary policy tightening cycle
in response to the acceleration of inflation.

-- The depreciation of the Brazilian real, high commodity prices,
and strong external demand are supporting exports.

Fiscal results deteriorated sharply because of the economic
contraction in 2020 and the government's large policy response to
the pandemic. Last year, the general government deficit reached a
historical high of 13.6% of GDP, leading to an increase of the
government's net debt burden to about 68% of GDP in 2020 from 54%
in 2019. With the rebound in economic activity (leading to higher
tax revenue) and the removal of extraordinary support measures, S&P
estimates the fiscal deficit is likely to be about 8% of GDP in
2021.

Authorities have approved moderate spending above the
constitutional cap this year (so far, about 1% of GDP), including
extensions of emergency aid until July and of other support
programs. Risks to our deficit projection in 2021 include potential
additional above-cap spending as the pandemic lingers, given the
government has signaled the possibility of further extending
emergency aid. Over 2022-2024, we forecast fiscal deficits will
average 6.2% of GDP as room to reduce mandatory spending remains
limited absent additional fiscal reforms, especially ahead of the
presidential elections. Extraordinary revenue, including additional
transfers from the Brazilian Development Bank (BNDES by its
Portuguese acronym) and other public banks, as well as the public
funds to repay debt, could help stabilize the debt burden at about
90% of GDP. In net terms, S&P expects general government debt to
maintain an upward trend toward 74% of GDP in 2024, from 68% this
year.

A favorable composition of debt, large government liquid assets,
and limited contingent liabilities mitigate the risks of managing
Brazil's high debt burden. Since the end of last year, the National
Treasury has been able to strengthen its liquidity cushion,
reducing uncertainty regarding debt management in the coming
months. The government has now taken the opportunity to reduce its
local currency issuances in the domestic market, as well as the
concentration on short-term fixed-rate instruments. As a result,
maturities have slightly increased, and the pressure on the yield
curve has diminished.

Government debt remains overwhelmingly in local currency (foreign
currency represents only 5% of the total). The share of nonresident
holdings of government securities is below 10% of the total. In
S&P's opinion, Brazil's high debt burden, large financing needs,
and slow progress in passing structural reforms could nevertheless
renew domestic market concerns over debt sustainability in the
coming years, leading to more challenging financing conditions.

The country's external profile has remained resilient in recent
years despite frequent episodes of global volatility. S&P
classifies the Brazilian real as an actively traded currency, based
on the 2019 Bank for International Settlements' Triennial Survey,
which showed that the real contributes at least 1% of global
foreign exchange market turnover.

Brazil's current account is experiencing cyclical uplift as a
result of improving terms of trade from higher commodity prices,
stronger demand from the U.S. and China for Brazilian exports,
local currency depreciation, and weak domestic demand. S&P expects
that for the first time since 2007, Brazil will post a small
current account surplus in 2021, following a deficit of 1.7% of GDP
in 2020. Commodity prices and strong external demand, led by China,
support Brazil's iron, soy, and oil-based good exports.

S&P said, "We expect the current account will revert to structural
deficits in 2022. Therefore, we forecast the current account
deficit will average 2.1% in 2022-2024 and will be fully covered by
net foreign direct investment (FDI). Despite a drop in inflows last
year, we expect net FDI to gradually recover and remain the largest
source of financing of the current account deficit. We think Brazil
could be vulnerable to sudden changes in FDI flows because net
external liabilities, which include the high stock of FDI in the
country, account for almost 150% of current account receipts in
2021."

The country has been in a narrow net external creditor position
since 2016 as a result of limited public and private external
borrowing (including lower nonresident holdings of local currency
debt since Brazil lost its investment-grade status), combined with
a large stock of international reserves. S&P projects this trend to
continue in the coming three years (with narrow net external debt
at -15.6% of current account receipts on average).

Inflation was very low during the first half of 2020 but
accelerated during the third quarter as a result of the sharp
depreciation of the exchange rate and the acceleration in commodity
prices. IPCA inflation surpassed the upper bound of the central
bank tolerance interval (5.25%) in January 2021 and reached 6.8%
(year over year) in April. The recent spike mostly stems from
volatile components, but core measures also increased. Upside risks
to our inflation forecast in 2021--5.2% at year-end--include the
uncertain fiscal scenario. The central bank raised the policy rate
to 3.5% from a record low 2% in two consecutive hikes of 75 basis
points. The Monetary Policy Committee (Copom) has indicated its
intention to implement a "partial normalization" of the monetary
stimulus.

The formal autonomy of the central bank, aimed at reducing
uncertainties related to electoral cycles and the risk of political
interference in setting interest rates, was approved in February
2021. In S&P's opinion, this legislation will strengthen the
credibility of the central bank. In addition, the central bank has
been able to make progress on its agenda of regulatory reforms.

At the same time, the banking sector remains strong and well
regulated. Banking loan performance has remained resilient during
the pandemic, showing strong growth, especially in the corporate
segment. S&P expects lending to slow in 2021 as extraordinary
support measures are lifted. Nonperforming loans have remained very
low, largely due to renegotiations and postponements of payments.

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

  Brazil
   Sovereign Credit Rating     BB-/Stable/B
   Brazil National Scale       brAAA/Stable/--
   Transfer & Convertibility Assessment  BB+

  Brazil
   Senior Unsecured    BB-
   Senior Unsecured    brAAA


CSN RESOURCES: Moody's Gives Ba3 Rating on New Sr. Unsecured Notes
------------------------------------------------------------------
Moody's Investors Service has assigned a Ba3 rating to the proposed
senior unsecured notes due in up to 10 years to be issued by CSN
Resources S.A. and unconditionally guaranteed by Companhia
Siderurgica Nacional (CSN, Ba3 stable). CSN's existing ratings
including its Ba3 corporate family rating remain unchanged. The
outlook is stable.

The proposed issuance is part of CSN's liability management
strategy and proceeds will be used to fund a tender offer for the
totality of CSN's outstanding $925 million notes maturing in 2023
and for other debt prepayment, thus not affecting the company's
debt protection metrics.

The rating of the proposed notes assumes that the final transaction
documents will not be materially different from draft legal
documentation reviewed by Moody's to date and assume that these
agreements are legally valid, binding and enforceable.

Rating Assigned:

Issuer: CSN Resources S.A.

Gtd Senior Unsecured Notes due in up to 10 years: Ba3 (global
scale)

The outlook is stable.

RATINGS RATIONALE

CSN's Ba3 ratings reflect the company's position as a leading
manufacturer of flat-rolled steel in Brazil (Ba2 stable), with a
favorable product mix that is focused on value-added products, and
as a major producer of iron ore (second-largest exporter in
Brazil). Historically, the company has reported a strong
Moody's-adjusted EBITDA margin of 20%-35% (39.3% in the twelve
months ended March 2021), supported by its solid domestic market
position, wide range of products across different segments and
globally competitive production costs for both steel and iron ore.
The ratings also incorporate the improvement in the company's
leverage and liquidity after several measures taken over the past
two years and the improved operating performance related to a
favorable environment for both iron ore and steel.

The ratings are constrained by CSN's recent track record of
aggressive financial policies, including a highly leveraged capital
structure, appetite for growth and dividend requirements to cover
debt service at the parent level. On the other hand, Moody's
recognizes that the current actions taken by the company evidences
a change in the management's approach to financial management.
Additional credit concerns include the company's exposure to the
volatility of the steel business in Brazil and to iron ore prices,
its concentration in a single production site in the mining segment
and potential overhangs related to ongoing judicial disputes, such
as the ones regarding the Transnordestina project, a recent
arbitrage process and investigations involving the company's
controlling shareholder.

CSN's operating performance and credit metrics have improved
materially since 2019, backed by the strong performance of the iron
ore export business and a better than expected performance for
steel in 2020-21. The company's iron ore operations will remain
strong based on current high prices, relatively stable sales
volumes and a favorable exchange rate for exports, while the steel
business will benefit from better sales volumes in Brazil and
improved profitability after investments made by CSN in a
blast-furnace to improve efficiency. CSN's adjusted EBITDA
increased to BRL14.4 billion in the twelve months ended March 2021
from BRL6.3 billion in 2019 and adjusted leverage declined to 2.4x
from 4.8x. Moody's expects CSN's adjusted leverage ratios to
decline to around 1-2x in the next 12-18 months and to remain
within the 3.0 -- 4.5x range overtime based on a range of price
scenarios for iron ore 62% Fe of $70-$100 per ton and normalized
steel operations. Net leverage assuming a recurring BRL10 billion
cash position will fall to below 1x in 2021 and would stand at 2-3x
overtime. Leverage ratios could strengthen further depending on how
much debt reduction the company pursues during 2021.

The strong operating performance combined with cash preservation
measures during the pandemic supported a material free cash flow
generation of BRL10.3 billion in the twelve months ended March
2021, and led to an increase in the company's cash position to
BRL14.3 billion at the end of March 2021 (BRL18.2 billion including
Usinas Siderurgicas de Minas Gerais S.A. [Usiminas, Ba3 stable]'s
shares) from BRL1.6 billion at the end of 2019 (BRL3.7 billion with
Usiminas' shares). Going forward, Moody's expects CSN to maintain a
strong free cash flow generation with credit metrics and liquidity
stronger than historical levels.

The proposed transaction is part of CSN's liability management
strategy and proceeds will be used to fund a tender offer for CSN's
notes maturing in 2023 and other debt prepayment, thus lengthening
the company's debt amortization schedule. The new issuance adds to
several liquidity-enhancing initiatives carried-out by the company
over the past year, including the IPO of its mining subsidiary, the
reduction of about BRL4 billion in gross debt announced by the
company since the beginning of 2021, and the ongoing refinance of
BRL3.4 billion in debt with Banco do Brasil S.A. (Ba2 stable, ba2)
and Caixa Economica Federal (Caixa) (Ba2 stable, ba3) that come due
in 2021-22. CSN also raised BRL1.3 billion with the sale of about
half of its preferred shares in Usiminas in May 2021, increasing
its unrestricted cash position at the end of March 2021 to BRL15.6
billion.

Pro forma to all transactions, CSN's cash position will cover debt
maturities through 2025, and the company's debt amortization
schedule will be comfortable, with only BRL3.5 billion in debt
coming due in 2021-22 (compared to BRL9.2 billion prior to the
transactions). Furthermore, CSN's capital structure will likely
improve further with additional debt payments coming from the
excess cash generated during the year and other potential liquidity
events, such as the recently announced IPO of its cement business.

RATING OUTLOOK

The stable outlook reflects Moody's expectation that the company's
operations will continue to perform well in the next 12-18 months,
and that CSN will continue to pursue stronger balance sheet and
liquidity either through additional external events or using its
own cash generation to reinforce its cash position or reduce debt.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

The ratings could be upgraded if CSN proves to have a conservative
financial management for an extended period time, or if the company
is able to increase its financial flexibility further, either
through a strengthened cash position or lower debt balance. An
upgrade would also require total leverage (measured by total
adjusted debt to EBITDA) below 3.5x (2.4x in the twelve months
ended March 2021) and interest coverage ratios (measured by EBIT to
Interest expenses) above 3x (4.0x in the twelve months ended March
2021) on a sustainable basis.

The ratings could be downgraded if performance over the next 12 to
18 months deteriorates such that leverage remains above 4.5x and
EBIT/interest below 2x on a sustained basis. Evidences of more
aggressive financial policies or a deterioration in the company's
liquidity profile would also trigger a downgrade of the ratings.

The principal methodology used in these ratings was Steel Industry
published in September 2017.

With an annual capacity of 5.9 million tons of crude steel,
Companhia Siderurgica Nacional (CSN) is a vertically integrated,
low cost producer of flat-rolled steel, including slabs, hot and
cold rolled steel, and a wide range of value-added steel products,
such as galvanized sheet and tinplate. In addition, the company has
downstream operations to produce customized products, pre-painted
steel and steel packaging. CSN sells its products to a broad array
of industries, including the automotive, capital goods, packaging,
construction and home appliance sectors. CSN owns and operates cold
rolling and galvanizing facilities in Portugal, along with long
steel assets in Germany through its subsidiary Stahlwerk Thuringen
GmbH (SWT). The company also has a long steel line (500,000 tons
capacity) in the Volta Redonda plant. CSN is a major producer of
iron ore (the second-largest exporter in Brazil), with a sales
volume of 33.4 million tons in the twelve months ended March 2021.
The company has operations in other segments, such as cement,
logistics, port terminals and power generation. CSN reported
revenues of BRL36.6 billion ($6.8 billion) in the twelve months
ended March 2021 with an adjusted EBITDA margin of 39.3%.


ELETROBRAS: Fitch Affirms 'BB-' LongTerm IDRs, Outlook Negative
---------------------------------------------------------------
Fitch Ratings has affirmed Centrais Eletricas Brasileiras S.A.'s
(Eletrobras) Long-Term Foreign and Local Currency Issuer Default
Ratings (IDRs) and outstanding senior unsecured bond ratings at
'BB-'. The National Scale ratings of Eletrobras, its rated
subsidiaries and their outstanding local debentures ratings were
also affirmed at 'AA(bra)'. The Outlook is Negative for the IDRs
and Stable for the National Scale ratings.

Fitch has also revised its assessment of Eletrobras' stand-alone
credit profile (SCP) to 'b+' from 'b', reflecting the company's
improving capital structure and strengthening operating cash
generation. Per Fitch's Government Related Entity Criteria (GRE
Criteria), Eletrobras' IDRs are equalized with Brazil's sovereign
rating ('BB-'/Negative), as the strength of the linkage between
both entities is strong and the government has a strong to very
strong incentive to provide support to the company. The Negative
Outlook for Eletrobras' IDRs reflects the same Outlook for Brazil's
sovereign rating.

KEY RATING DRIVERS

Strong Linkage to the Sovereign: Eletrobras' credit profile
benefits from the strong linkage between the company and Brazil.
The ratings incorporate likely support from the sovereign and is
one of the pillars for ratings equalization. Brazil controls
Eletrobras through its 52% stake in the issuer's voting shares and
plays an important role on Eletrobras' operational, strategic and
financing activities. The government also guarantees 13% of
Eletrobras' debt, which further reinforces the linkage and support
for the company. The Brazilian power sector also relies on
Eletrobras' portfolio of generation plants and transmission lines
given its size as the largest player in the sector. Eletrobras'
size and importance of the sector add to the government's incentive
to support the company given the strong socio-political
implications in the event of distress.

Improving SCP: Eletrobras' capital structure has improved and is
expected remain so. Eletrobras has been using the proceeds from
internal cash flow generation and asset sales to lower its
financial debt. As of March 2021, total debt was reduced by BRL2.5
billion compared to 2019 and by BRL9.0 billion, or 17%, compared
with 2018. Stronger cash flow generation also resulted in more
conservative credit metrics, although free cash flow (FCF) is
expected to turn negative due to aggressive capex plan over the
next few years, somewhat limiting further improvements in the
company's SCP.

Manageable Negative FCF: Eletrobras' Strategic Plan for 2021-2025
incorporates an aggressive investment plan of BRL38 billion in
capex, which should pressure FCF over the next few years. Despite
of strong expected cash flow from operations (CFFO) of around
BRL5.0-6.0 billion over the next two years, the capex program
should leave Eletrobras' with negative FCF of around BRL2.0 billion
on average during this period. Fitch forecasts dividend payout of
25% over the rating horizon. The base case projections also
incorporate BRL15.0 billion from the construction of the nuclear
plant, Angra 3.

High Adjusted Leverage: Fitch expects Eletrobras' adjusted leverage
ratios to remain high, with net adjusted debt/adjusted EBITDA
ranging between 6.5x to 7.5x until 2023. For the LTM ended March
31, 2021, total adjusted debt/adjusted EBITDA and net adjusted
debt/adjusted EBITDA were 6.5x and 5.3x respectively. Total
adjusted debt includes contingent liabilities of BRL30.1 billion
related to guarantees provided to minority-owned, non-consolidated
gencos on a proportionate basis. Fitch does not expect a material
disbursement from Eletrobras group to support these entities or a
full call on the guarantees. If the contingent guarantees are
excluded from the leverage calculations, the net leverage would be
3.1x. Eletrobras' consolidated debt profile benefits from an
extended debt maturity schedule.

Subsidiaries Ratings Equalized: Fitch equalizes National Scale
ratings of Companhia Hidro Elétrica do Sao Francisco (Chesf) and
Companhia de Geração e Transmissão de Energia Eletrica do Sul do
Brasil - Eletrobras CGT Eletrosul (CGT Eletrosul) with Eletrobras'
rating due to the strong legal, operational and strategic links
between them and the controlling shareholder. Eletrobras held
99.58% of Chesf and 99.89% of CGT Eletrosul. The strong ties are
mainly based on the importance of Chesf and Eletrosul assets for
the Eletrobras group and on Eletrobras' position as guarantor and
creditor of 55% of Chesf's debt and 81% of CGT Eletrosul's debt.

Potential Privatization Not Incorporated: The government's
intention to privatize Eletrobras is not incorporated in the
current rating as it is an uncertain event. If Eletrobras becomes a
private entity, Fitch will likely decouple Eletrobras' rating from
the sovereign and analyze the company on a stand-alone basis.
Eletrobras' new SCP after privatization would be based on potential
cash flow generation relative to debt and other key rating drivers
found in the relevant criteria. Privatization should allow the
company to obtain higher sales prices associated with part of its
generation assets and greater flexibility to manage its costs.
Fitch estimates additional EBITDA up to BRL3.0 billion per year, or
around 35% increase compared to the BRL8.4 billion forecasted for
2021, not including other efficiencies gains. Angra 3 is not
expected to be part of the privatization.

DERIVATION SUMMARY

Eletrobras'' IDR is equal to the sovereign's 'BB-' rating. Compared
with other state-owned electric utility companies in Latin America,
Eletrobras' IDRs are lower than the Mexican company Comision
Federal de Electricidad (CFE; 'BBB-'/Stable), and the Colombian
company Interconexion Electrica S.A. E.S.P (ISA; 'BBB+'/Negative).
CFE's ratings are fully supported by the Mexican sovereign rating
of 'BBB-'/Outlook Stable due to its monopoly position in the
country. ISA's ratings are higher than the Colombian sovereign
'BBB-'/Outlook Negative rating as the linkage with the Colombian
Government is considered moderate and the company benefits from a
low business risk profile, strong geographic and business
diversification of its revenue source, which along with the high
predictability of CFFO, translate into a robust financial profile.

Eletrobras' 'b+' SCP is four notches below the 'BBB-' Local
Currency IDR of the Brazilian generation company Engie Brasil
Energia S.A. and the Brazilian transmission groups Alupar
Investmento S.A. and Transmissora Alianca de Energia Eletrica S.A.
due to its worst operating performance and weaker financial
profile, despite of its larger size and asset diversification.

KEY ASSUMPTIONS

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

-- Receipt of BRL53.1 billion in compensation for the
    transmission concession renewal, received in monthly
    installments from December 2020 to July 2028;

-- Receipt of BRL7.6 billion in loan receivables during 2021
    2024;

-- Average annual capex (not including equity contributions) of
    BRL5.4 billion from 2021 to 2024;

-- Dividends of BRL3.9 billion in 2021 and of 25% of net profit
    in the coming years;

-- Development of Angra 3 projects without a private partner;

-- No distributions associated with the outstanding guarantees to
    non-consolidated subsidiaries.

RATING SENSITIVITIES

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

-- Positive rating action on the sovereign.

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

-- Negative rating action on the sovereign;

-- Perception of a weakening on the linkage with Brazil;

-- SCP below 'B-'.

BEST/WORST CASE RATING SCENARIO

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

LIQUIDITY AND DEBT STRUCTURE

Sound Liquidity Profile: Eletrobras has a strong liquidity
position. The company's robust consolidated cash and marketable
securities of BRL14.7 billion were above its short-term debt of
BRL10.2 billion at the end of the first quarter of 2021. The BRL2.7
billion raised through a new debentures issuance in May 2021
strengthened financial flexibility. Eletrobras' total adjusted debt
of BRL77 billion was mainly concentrated in Brazilian state-owned
entities. Brazilian owned Federal banks hold 26% of the
consolidated on-balance-sheet debt, with Petrobras responsible for
14%, reinforcing the linkage with the government. Foreign currency
debt representing around 27% of the group's debt. The Brazilian
government provides guarantees in the amount of BRL5.9 billion,
approximately 13% of total consolidated debt.

ISSUER PROFILE

Eletrobras is the largest electric energy group in Brazil. It
operates in the energy generation and energy transmission segments.
The group is responsible for 29% of the installed generation
capacity and 43% of the transmission lines in the country.

ESG CONSIDERATIONS

Centrais Eletricas Brasileiras S.A. (Eletrobras) has an ESG
Relevance Score of '4' for Governance Structure due to ownership
concentration, as a majority government-owned entity and due to the
inherent governance risks that arise with a dominant state
shareholder, which has a negative impact on the credit profile, and
is relevant to the ratings in conjunction with other factors.

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


GOIAS TRANSMISSAO: Moody's Rates New BRL325MM Debentures 'Ba1'
--------------------------------------------------------------
Moody's America Latina has assigned Ba1 global scale and Aaa.br
Brazilian national scale senior secured ratings to the proposed
first issuance of debentures by Goias Transmissao S.A., in the
amount of BRL325 million due in 12 years. The outlook is stable.

The assigned ratings are based on preliminary documentation.
Moody's does not anticipate changes in the main conditions that the
debentures will carry. Should issuance conditions and/or final
documentation deviate from the original ones submitted and reviewed
by the rating agency, Moody's will assess the impact that these
differences may have on the ratings and act accordingly.

RATINGS RATIONALE

The Ba1/Aaa.br ratings assigned to the proposed issuance reflect
the stable and predictable revenue stream dictated by the
availability-based contractual structure, annually adjusted by
inflation (IPCA); low complexity of operations and observed track
record since start of operations in October 2013; and the
expectation of average debt service coverage ratios (DSCR) of 1.30x
according to Moody's methodology, during the period in which most
principal is amortized (2022-2032).

The ratings also reflect the project finance structure, which
includes a pre-funded 6-month reserve account equivalent to the
biannual debt service payment, and the security package that
includes fiduciary alienation of all project's shares and fiduciary
assignment of all receivables emerging from the concession
contract. The ratings further reflect the very high diversification
of the offtake base, the incentives for timely payment and the
overall linkages to sovereign credit quality of the Government of
Brazil (Ba2 stable).

The annual permitted revenues (RAP) for the 2020/2021 cycle are of
BRL62.9 million. These revenues are subject to deductions in the
case of unavailability or restrictions over operational capacity.
Nevertheless, the maximum deduction for a period of twelve months
is restricted to 12.5% of the RAP. The company posted an average
availability rate of 99.9% in 2020. The revenues are also subject
to tariff reviews every five years. On year five, ten and fifteen
the tariff is expected to be revised to reflect the change in third
party capital costs, according to the formulaic approach set in the
concession contract.

The project is in the basic network of the National Integrated
System (SIN) and the regulation establishes an extremely
diversified off-take base for the normal transmission networks
(rede basica), where all power generators and distribution
companies that use the transmission network are responsible for
payments, in a process that has strong oversight of the National
Electric System Operator (ONS). The transmission concessionaires
also benefit from guarantees in the form of (i) escrow accounts
equivalent to at least 110% of the monthly transmission tariffs
(TUST) and (ii) bank guarantees that cover 2 months of TUST.
Moody's see counterparty risk as mitigated by diversification,
strengthened by strong incentives for payment and guarantees.

The company has signed an operating and maintenance (O&M) contract
with COS Engenharia, a company from the CEL Engenharia group, which
has vast experience in the electricity sector. Despite the risk of
renewing the contract in 2022, the visibility over costs that the
contract bring to the project structure is a credit positive.
Moody's base case for the next five years considers that the
contract will be renewed in favorable terms compared to the current
clauses and that the average O&M and general and administrative
expenses will represent BRL49 thousand per kilometer of
transmission lines for the next five years.

The debt structure will be composed of a single tranche of senior
secured debentures in the amount of BRL325 million. The debentures'
proceeds will be used to prepay all debt outstanding at the level
of the project and upstream resources to shareholders through
dividends and capital reduction already approved by ANEEL.

The structure also encompasses an incurrence covenant test for
dividend distributions, constraining cash upstream if the DSCR
drops below 1.2x. The designed amortization schedule provides for
stable DCSRs through the life of the transaction. In Moody's base
case, the project shows average DSCRs of 1.30x between 2022 and
2026 and 1.32x between 2027 and 2032.

OUTLOOK

The stable outlook reflects the expectation of availability above
98% with average DSCR of 1.30x.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

The global scale rating is linked to the credit quality of the
sovereign, and positive rating action is constrained to similar
positive action. The global scale rating can be downgraded upon a
similar rating action on the sovereign. Aside from that, global
scale and national scale ratings can be downgraded if the project
faces higher than expected operating and administrative expenses
such that the expectation of long term DSCRs decreases to below
1.25x.

ISSUER PROFILE

Goias Transmissao S.A., headquartered in the city of Rio de
Janeiro, was created on February 3, 2010, by the Transenergia
Consortium, which is currently controlled by Furnas Centrais
Eletricas S.A (49%) and Gebbras Participacoes Ltda. (51%), winner
of lot A of the auction of the ANEEL 005/2009, to execute the
concession contract 002/2010. Furnas and Gebbras are controlled by
Centrais Eletricas Brasileiras SA-Eletrobras (Ba2 stable) and Grupo
Energia Bogota S.A. E.S.P. (Baa2 negative), respectively.

The company is responsible for the operation and maintenance of
three transmission lines, with 259 kilometer of extension, and one
substation located in the state of Goias.

METHODOLOGY

The principal methodology used in these ratings was Generic Project
Finance Methodology published in November 2019.


PETROBRAS GLOBAL: Moody's Gives Ba2 Rating on New $1BB Global Notes
-------------------------------------------------------------------
Moody's Investors Service assigned a Ba2 rating to Petrobras Global
Finance B.V.'s proposed $1 billion in new global notes, which will
be unconditionally guaranteed by Petroleo Brasileiro S.A. -
PETROBRAS (Petrobras, Ba2 stable). The Ba2 rating on the proposed
notes is based on the rating of Petrobras. The proposed notes are
senior unsecured and pari passu with Petrobras Global Finance
B.V.'s and Petrobras' other senior foreign currency debt. The
outlook on the rating is stable.

The following ratings/assessments are affected by the action:

New Assignments:

Issuer: Petrobras Global Finance B.V.

GTD Senior Unsecured Global Notes, Assigned Ba2

RATINGS RATIONALE

Petrobras' Ba2 ratings and ba2 Baseline Credit Assessment (BCA), a
measure of the company's standalone credit risk without government
support considerations, are supported by Petrobras' good liquidity;
its sizable proved oil and gas reserves, equivalent to 9.5 years of
life; its dominant position in the Brazilian oil industry, and the
fact that it is a relevant government-controlled company in Brazil.
The ratings and BCA are also supported by the company's renowned
high technological offshore expertise and potential for continued
growth in production over the long-term. However, Petrobras'
ratings are constrained by business plan execution risk; high debt
levels relative to cash generation, and government political
interference that raises business and financial risk.

Petrobras' Ba2 ratings also consider Moody's joint-default analysis
for the company as a government-related issuer; Petrobras' ratings
reflect the assumption for moderate support and dependence from the
Government of Brazil (Ba2 stable) based on the government's weak
fiscal accounts but limited dependence on foreign currency funding,
the high level of diversification of the Brazilian economy, and the
country's limited reliance on local production of fuel. Petrobras'
corporate governance has improved since the beginning of the Lava
Jato investigations in early 2014; the company has secured its best
new corporate practices with some new managing rules, standards and
procedures in its bylaws, most recently updated in April 2019.

Petrobras' liquidity position is good. Moody's expects that the
company's cash generation in the next two years will be more than
enough to cover mandatory cash obligations plus annual capital
expenditures of about $8.5 billion, as per Moody's estimates,
allowing it to reduce debt further, even without asset sales.

The stable outlook on Petrobras' ratings incorporates Moody's view
that the company's credit profile will continue to gradually
improve in the foreseeable future.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING

An upgrade of Petrobras' Ba2 rating would require further
improvement in its overall credit metrics; continued financial
discipline; evidence of lower exposure to adverse government
influence and a stable energy regulatory framework in Brazil. In
addition, an upgrade of Petrobras' ratings would consider Moody's
ratings on the government of Brazil.

Negative actions on Petrobras' rating could result from a
deterioration of its operating performance or external factors that
increase liquidity risk or debt leverage from the current levels;
negative developments from litigations against Petrobras, in case
they significantly affect the company's liquidity or financial
profile. Downgrades could also be prompted if the rating on the
government of Brazil is downgraded.

The methodologies used in this rating were Integrated Oil and Gas
Methodology published in September 2019.

Petrobras is an integrated energy company, with total assets of
$175 billion as of March 31, 2021. The company dominates Brazil's
oil and natural gas production, as well as downstream refining and
marketing. The Brazilian government directly and indirectly owns
about 36.75% of Petrobras' outstanding capital stock and 50.5% of
its voting shares.


PETROBRAS GLOBAL: S&P Rates New Unsecured Notes Due 2051 'BB-'
--------------------------------------------------------------
S&P Global Ratings assigned its 'BB-' issue-level rating on
Petrobras Global Finance B.V.'s (PGF's) proposed senior unsecured
notes due 2051. PGF is a wholly owned finance subsidiary of
Brazilian oil and gas company, Petroleo Brasileiro S.A. - Petrobras
(Petrobras; BB-/Stable/--). Petrobras will unconditionally and
irrevocably guarantee the notes.

The new notes will be issued in connection with tender offers for
several of PGF's bonds that mature between 2024 and 2050, in line
with company's debt refinancing strategy, extending debt maturity
profile and reducing interest burden. Also, the higher oil prices
this year should raise operating cash flows, which combined with
progress on asset divestments, will likely accelerate deleveraging
over the next quarters.

S&P said, "We rate PGF's senior unsecured debt at the same level as
our issuer credit rating on Petrobras, based on the guarantee of
this debt and because the latter has limited secured debt
collateralized by real assets. Even if the senior unsecured debt
ranked behind the subsidiaries' debt in the capital structure, we
believe the risk of subordination is mitigated by a priority debt
ratio that's far less than 50% and the significant earnings
generated at the parent level."

  Ratings List

  NEW RATING
  Petrobras Global Finance B.V.

  Senior Unsecured      BB-


PETROLEO BRASILEIRO: Fitch Rates New Unsec. Debt 'BB-'
------------------------------------------------------
Fitch Ratings has assigned a long-term rating of 'BB-' to Petroleo
Brasileiro S.A.'s (Petrobras) proposed senior unsecured debt
issuance. The notes will be issued by Petrobras Global Finance B.V.
(PGF) and will be unconditionally and irrevocably guaranteed by
Petrobras. The company expects to use the proceeds to refinance
existing debt and for general corporate purposes.

Petrobras' ratings are linked to Brazil's ('BB-'/Negative)
Sovereign Ratings due to its strategic importance to the country
and the government's strong ownership and control. Petrobras'
dominant market share in the supply of liquid fuels in Brazil
coupled with a large hydrocarbon production footprint in the
country exposes the company to government intervention through
pricing policies and investment strategies.

The ratings reflect Petrobras' strategic importance to the country
and the very strong incentives Brazil has to support the company
should the need arise. Fitch Ratings considers the linkage between
Petrobras and the government to be strong as a result of the
government's majority ownership and control of the company and the
evidence of a strong support track record.

The Negative Outlook for Petrobras' Long-Term Foreign Currency and
Local Currency Issuer Default Ratings reflects Brazil's Sovereign
Rating Outlook. Petrobras' Standalone Credit Profile (SCP) of 'bbb'
reflects a strong capital structure, growing production trend,
excluding divestitures, and declining debt levels. Petrobras
reduced its total financial debt between 2015 and 2020 by more than
USD72 billion to USD54 billion as of December 2020 from USD126
billion in 2015 by using internal cash flow generation, proceeds
from divestitures and cash on hand. Fitch expects Petrobras to
continue deleveraging in the future after leverage remained
unchanged even with the market downturn in 2020 leaving leverage at
the same levels as 2019.

KEY RATING DRIVERS

Sovereign Linkage: Petrobras' ratings are linked to Brazil's
Sovereign Ratings, as a result of the influence the government may
have over the company's strategies and investments, despite
material improvements in its capital structure and efforts to
isolate itself from government intervention. By law, the federal
government must hold at least a majority of Petrobras' voting stock
and currently owns 50.5% of Petrobras' voting rights, directly and
indirectly, with a 36.8% overall economic stake.

Improving the SCP: An SCP of 'bbb' reflects the company's continued
improvements in its capital structure and Fitch's expectation
Petrobras will maintain or further improve in the future. Over the
past two years, Petrobras used proceeds from internal cash flow
generation and divestures to significantly lower its financial
debt, excluding leases, by approximately USD30.5 billion since YE
2018.

Fitch forecasts leverage, as measured by gross financial
debt/EBITDA, to be at approximately 1.7x in 2021. Petrobras' gross
leverage, as of the YE 2020, remained the same as YE 2019 at
approximately 2.2x, significantly below a peak of more than 5.0x at
Dec. 31, 2015, per Fitch's criteria. Fitch expects leverage to
continue trending downward to below 2.0x over the rating horizon as
international oil and gas prices stabilize.

Strong Cash Flow Generation: Fitch expects Petrobras to continue
reporting positive FCF over the rating horizon, while investing
enough to replenish reserves, which will further support its SCP.
The base case scenario for Petrobras considers EBITDA and FFO
consistently reaching above USD26.5 billion and USD18.9 billion,
respectively, over the next few years.

The company reported EBITDA, adjusted for leases, of USD23.9
billion at YE2020, down from an average of approximately USD27.0
billion over the previous three years, while total financial debt
declined to USD53.9 billion as of December 2020 from USD126.0
billion as of YE 2015.

Petrobras reported Fitch-defined FCF of USD14.1 billion as of YE
2020, despite a decline in international oil prices, primarily the
result of cost and capex reduction to cope with lower oil prices.
The company reported a material decline in lifting costs last year
to approximately USD6.80 per barrel of oil equivalent (boe) from
approximately USD9.60/boe in 2019 as a result of cost reductions,
increasing share of pre-salt production, which has a lower lifting
cost than legacy production, and Brazilian real depreciation.

Supportive Government: Credit quality materially benefited from the
Brazilian government's indirect support during times of distress.
The government provided liquidity through government-controlled
financial institutions, changed regulations that negatively
affected Petrobras' cash flow in the past and at times allowed the
company to implement beneficial pricing policies.

The government allowed the company to significantly reduce
downstream investments, which together with reduction in dividends
and asset sales, led Petrobras to strengthen its capital structure
and improve its SCP. Fitch estimates the company will increase
dividend payments in the future as its debt balance, including
lease liabilities, remains below USD60 billion.

Potential Political Interference: The potential return of stronger
political meddling into Petrobras' strategy, noticeably through
domestic gasoline and diesel prices, would negatively affect cash
flow generation and the SCP. This is particularly relevant during
times of Brazilian real depreciation to the U.S. dollar, which
would increase domestic gasoline and diesel prices and heighten
interference risk.

The Brazilian government established provisional measures in 2018
to fix and subsidize diesel prices to ease mounting social pressure
over volatility in fuel prices. This marginally increased cash flow
generation exposure to receipt of government subsidies while the
program was in place until YE2018.

Although these policies were not implemented in 2019 nor 2020,
raising oil prices coupled with BRL depreciation in recent months
is increasing political pressure for Petrobras on its market-based
pricing policies. While oil prices increased by 46% in U.S. dollar
terms, Brazilian real depreciation increased oil prices by 51% so
far this year.

Marginal Production Growth: Fitch's rating case assumes Petrobras'
gross production will increase, absent divestitures, to
approximately 3.3 million barrels of oil equivalent per day
(mmboed) in the next three to five years from annual average
production of approximately 2.8 mmboed for YE 2020. The company
reported YE 2020 proved reserves of 8.8 billion boe, providing a
reserve life of approximately 8.5 years, a decline from 9.6 years
in 2019, primarily as a result of a drop-in reserves due to the
lower oil price environment of 2020 coupled with a marginal
increase in production.

Absent divestitures, production growth is expected to remain driven
by the company's development of its pre-salt assets and planned
capex for the next five years of more than USD55 billion, 85% of
which is earmarked for the upstream business.

Pre-salt represented more than 60% of oil and gas production during
2020 and is expected to be the primary driver for the company's
production growth in the future. Petrobras' marginal production
increase of 2.4% yoy between 2019 and 2020 is primarily driven by a
21% increase in pre-salt formation, mitigated by shallow water
declines due to asset sales and natural production depletion in
other areas.

DERIVATION SUMMARY

Petrobras' linkage to Brazil is similar to peers Petroleos
Mexicanos (PEMEX; 'BB-'/Stable), Ecopetrol S.A. ('BBB-'/Negative)
and YPF S.A. (CCC). The linkage also compares with Empresa Nacional
del Peru (ENAP; 'A-'/Stable) and Petroleos del Peru (Petroperu;
'BBB+'/Negative). All have strong linkages to their respective
sovereigns, reflecting the strategic importance and potentially
significant negative social-political and financial implications a
default by any of these entities could have for their countries.

Petrobras' SCP is commensurate with a 'bbb' rating, which is
materially higher than PEMEX's 'ccc-', as a result of Petrobras'
positive deleveraging trajectory compared with PEMEX's increasing
leverage. Petrobras reported and is expected to continue reporting,
positive FCF and production growth, which Fitch expects to reach
approximately 3.3mmboed in the next three to five years. PEMEX's
production declined in recent years and requires material capex to
sustain a production stabilization trend reported since 2019. These
production trajectories further support the notching differential
between the two companies' SCPs. Petrobras' SCP is in line with
Ecopetrol at 'bbb', given both companies' strong credit metrics and
deleveraging trajectories.

KEY ASSUMPTIONS

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

-- Gross production to increase to approximately 3.3mmboed over
    the next four years; excluding impact from asset sales;

-- Eight production units come online during the next four years;

-- Brent crude trends toward USD53per barrel by 2023;

-- Average FX rate trends toward BRL4.90 to USD1.00;

-- Dividends pay-out ratio increases in line with company's
    distribution policies;

-- Proceeds from future asset sales are not incorporated on
    Fitch's rating case.

RATING SENSITIVITIES

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

-- A positive rating action on the Brazilian sovereign could lead
    to a positive rating action on Petrobras.

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

-- A negative rating action on Petrobras could result from a
    downgrade of the sovereign and/or the perception of a lower
    linkage between Petrobras and the government coupled with a
    material deterioration of Petrobras' SCP.

BEST/WORST CASE RATING SCENARIO

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

LIQUIDITY AND DEBT STRUCTURE

Strong Financial Flexibility: Petrobras' liquidity is robust and
provides an added comfort during periods of volatility in
hydrocarbon prices. Liquidity is supported by approximately USD12.4
billion of cash and marketable securities as of YE 2020 compared
with current financial debt maturities of approximately USD4.2
billion. The majority of available liquidity consists of readily
available liquidity held abroad. Petrobras paid down a majority of
its lines of credit with approximately USD8.5 billion available as
of YE 2020.The company demonstrates a solid ability to access the
debt capital markets to refinance debt. Long-term debt proceeds
amounted to roughly USD17.0 billion, as of YE2020, which was used
to amortize debt. Petrobras' financial debt declined by an
estimated USD9.4 billion between YE 2019 and YE 2020. The average
maturity of outstanding financial debt was approximately 11.7 years
as of YE 2020 and 15% of the company's debt was in Brazilian
reals.

ESG Considerations

Petrobras has an Environmental, Social and Governance (ESG)
Relevance Score (RS) of '4' for Human Rights, Community Relations,
Access and Affordability due to the potential impact of social
pressure on pricing policy in the future, which has a negative
impact on the credit profile, and is relevant to the ratings in
conjunction with other factors. Petrobras has an ESG RS of '4' for
Governance Structure due to its nature as a majority
government-owned entity and the inherent governance risk that
arises with a dominant state shareholder, which has a negative
impact on the credit profile, and is relevant to the ratings in
conjunction with other factors.

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


TRANSENERGIA RENOVAVEL: Moody's Rates New BRL123MM Debentures 'Ba2'
-------------------------------------------------------------------
Moody's America Latina has assigned Ba2 global scale and Aa2.br on
the Brazilian national scale senior secured ratings to the proposed
first issuance of debentures by Transenergia Renovavel S.A., in the
amount of BRL123 million due in 12 years. The outlook is stable.

The assigned ratings are based on preliminary documentation.
Moody's does not anticipate changes in the main conditions that the
debentures will carry. Should issuance conditions and/or final
documentation deviate from the original ones submitted and reviewed
by the rating agency, Moody's will assess the impact that these
differences may have on the ratings and act accordingly.

RATINGS RATIONALE

The Ba2/Aa2.br ratings assigned to the proposed issuance reflect
the revenue profile composed of 30% of revenues linked to the basic
electricity transmission network (rede basica) until 2039 -- with
counterparty risk highly diversified -- and 70% of transmission
charges linked to transmission facilities for exclusive interest of
generation plants for shared connection (ICGs) and transmission
facilities for exclusive interest of generation plants for
individual connection (IEGs) until 2025, according to the project's
annual permitted revenues (RAP) for the 2020/2021 cycle. ICGs and
IEGS are transmission facilities that connect specific power
generation plants to the basic transmission network and carry
greater counterparty concentration.

The ratings also take into account the low complexity of operations
and long track record since start of operations in April 2011; and
average debt service coverage ratio (DSCR) of 1.33x, according to
Moody's methodology, during the period in which most principal is
amortized (2022-2032), which translates into low leverage for the
project. This calculation excludes the revenues from counterparties
that Moody's couldn't have a credit view on, or with credit quality
inferior to that of the project.

The ratings also reflect the project finance structure, which
includes a pre-funded 6-month reserve account equivalent to the
biannual debt service payment, and the security package that
includes fiduciary alienation of all project's shares and fiduciary
assignment of all receivables emerging from the concession
contract. The ratings further reflect the very high diversification
of the offtake base for 30% of the project's revenue and the
mechanisms that mitigate the exposure to counterparties for the 70%
linked to ICG and IEG charges, represented by guarantees that cover
from 3 to 12 months of payments and contractual mechanisms that
share the default risks among the participants of the ICGs.

The RAP for the 2020/2021 cycle linked to the basic network is of
BRL19 million (30% of the project's total) and is effective until
2039, being annually adjusted by the IPCA. These revenues are
subject to deductions in the case of unavailability or restrictions
over operational capacity. Nevertheless, the maximum deduction for
a period of twelve months is restricted to 12.5% of the RAP. The
company posted an average availability rate of 99.7% in 2020. The
revenues are also subject to tariff reviews every five years. On
year five, ten and fifteen the tariff is expected to be revised to
reflect the change in third party capital costs, according to the
formulaic approach set in the concession contract.

The transmission charges linked to ICGs and IEGs for the 2020/2021
cycle are, in turn, established at BRL46 million (70% of the
project's total) and are also subject to availability and
inflationary adjustments. Nevertheless, those revenues are going to
be received only until June 2025, when the bilateral contracts with
the generation plants expire, with no expectation of renewal.

The proposed issuance considers that until the maturity of the
ICG/IEG contracts in June 2025, 53% of the principal will be
amortized. Additionally, considering that all counterparties remain
compliant with payments, the average DSCR for the period between
2022 and 2025 stays above 2.0x. In a scenario where the project
loses 57% of its ICG revenues, given the structure that indicates
lower leverage until 2025, the project would be able to withstand
the stress and generate enough resources to cover debt service,
with average DSCR for the 2022-2032 period of 1.46x.

In a scenario where 76% of the ICG revenues are cut off, the
project would be able to post an average DSCR of 1.33x for the
2022-2032 period. Nevertheless, this scenario considers that the
project would have to rely on cash reserves in 2022 and 2032.

The resilient DSCRs in extremely stressed scenarios corroborate
Moody's view of low leverage for the project and that the
contractual mechanism that determines that if any participant
defaults or leaves the ICG network, the remaining power generators
in the system would be responsible to pay for the losses of the
concessionaire up to a limit of 20% of their obligations per year,
partially mitigates the counterparty risks.

The company has signed an operating and maintenance (O&M) contract
with COS Engenharia, a company from the CEL Engenharia group, which
has vast experience in the electricity sector. Despite the risk of
renewing the contract in 2022, the visibility over costs that the
contract bring to the project structure is a credit positive.
Moody's base case for the next five years considers that the
contract will be renewed in favorable terms compared to the current
clauses and that the average O&M and general and administrative
expenses will represent BRL25 thousand per kilometer of
transmission lines.

The debt structure will be composed of a single tranche of senior
secured debentures in the amount of BRL123 million. The debentures'
proceeds will be used to prepay all debt outstanding at the level
of the project and upstream resources to shareholders through
dividends and capital reduction already approved by ANEEL. The
structure also encompasses an incurrence covenant test for dividend
distributions, constraining cash upstream if the DSCR drops below
1.2x.

OUTLOOK

The stable outlook reflects Moody's expectation of availability
above 98% and that the project will continue to generate DSCRs
above 1.20x, even in scenarios where some of the ICG/IEG
counterparties default on their obligations.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

Positive action on the global or national scale ratings before 2025
would depend on a significant improvement of the project's
counterparty profile, so that its global counterparty risk is
closer to that of the basic transmission network. The ratings are
expected to be upgraded to Ba1/Aaa.br after the end of the ICG/IEG
obligations in 2025, when 100% of revenues will be linked to the
basic network and the average DSCR should be above 1.30x. The
ratings on the global and national scales may be downgraded if the
project faces operating and administrative expenses or non-payment
levels above Moody's expectations, so that the DSCR remains below
1.20x.

ISSUER PROFILE

Transenergia Renovavel S.A., headquartered in the city of Rio de
Janeiro, was created on December 18, 2008, by the Transenergia
Consortium, which is currently controlled by Furnas Centrais
Eletricas S.A (49%) and Gebbras Participacoes Ltda. (51%), winner
of lot C of the auction of the ANEEL 008/2008. Furnas and Gebbras
are controlled by Centrais Eletricas Brasileiras SA-Eletrobras (Ba2
stable) and Grupo Energia Bogota S.A. E.S.P. (Baa2 negative),
respectively.

The company is responsible for the operation and maintenance of
three transmission lines (238 km) and three substations of the
basic network and 8 lines (397 km) and 5 substations of ICG / IEG,
located in the states of Goias, Mato Grosso and Mato Grosso do
Sul.

METHODOLOGY

The principal methodology used in these ratings was Generic Project
Finance Methodology published in November 2019.


TRANSENERGIA SAO PAULO: Moody's Rates New BRL112M Debentures 'Ba1'
------------------------------------------------------------------
Moody's America Latina has assigned Ba1 global scale and Aaa.br on
the Brazilian national scale senior secured ratings to the proposed
first issuance of debentures by Transenergia Sao Paulo S.A, in the
amount of BRL112 million due in 11.5 years. The outlook is stable.

The assigned ratings are based on preliminary documentation.
Moody's does not anticipate changes in the main conditions that the
debentures will carry. Should issuance conditions and/or final
documentation deviate from the original ones submitted and reviewed
by the rating agency, Moody's will assess the impact that these
differences may have on the ratings and act accordingly.

RATINGS RATIONALE

The Ba1/Aaa.br ratings assigned to the proposed issuance reflect
the stable and predictable revenue stream dictated by the
availability-based contractual structure, annually adjusted by
inflation (IPCA); low complexity of operations and observed track
record since start of operations in August 2012; and the
expectation of average debt service coverage ratio (DSCR) of 1.30x
according to Moody's methodology, during the period in which most
principal is amortized (2022-2032).

The ratings also reflect the project finance structure, which
includes a pre-funded 6-month reserve account equivalent to the
biannual debt service payment, and the security package that
includes fiduciary alienation of all project's shares and fiduciary
assignment of all receivables emerging from the concession
contract. The ratings further reflect the very high diversification
of the offtake base, the incentives for timely payment and the
overall linkages to sovereign credit quality of the Government of
Brazil (Ba2 stable).

The annual permitted revenues (RAP) for the 2020/2021 cycle are of
BRL22 million. These revenues are subject to deductions in the case
of unavailability or restrictions over operational capacity.
Nevertheless, the maximum deduction for a period of twelve months
is restricted to 12.5% of the RAP. The company posted an average
availability rate of 99.9% in 2020. The revenues are also subject
to tariff reviews every five years. On year five, ten and fifteen
the tariff is expected to be revised to reflect the change in third
party capital costs, according to the formulaic approach set in the
concession contract.

The project is in the basic network of the National Integrated
System (SIN) and the regulation establishes an extremely
diversified off-take base for the normal transmission networks
(rede basica), where all power generators and distribution
companies that use the transmission network are responsible for
payments, in a process that has strong oversight of the National
Electric System Operator (ONS). The transmission concessionaires
also benefit from guarantees in the form of (i) escrow accounts
equivalent to at least 110% of the monthly transmission tariffs
(TUST) and (ii) bank guarantees that cover 2 months of TUST. We see
counterparty risk as mitigated by diversification, strengthened by
strong incentives for payment and guarantees.

The company has signed an operating and maintenance (O&M) contract
with Cotesa Engenharia, which has vast experience in the
electricity sector. Despite the risk of renewing the contract in
2022, the visibility over costs that the contract bring to the
project structure is a credit positive. Moody's base case for the
next five years considers that the contract will be renewed in
favorable terms compared to the current clauses and that for the
next five years the average O&M and general and administrative
expenses will represent BRL3.7 million per year.

The debt structure will be composed of a single tranche of senior
secured debentures in the amount of BRL112 million. The debentures'
proceeds will be used to prepay all debt outstanding at the level
of the project and upstream resources to shareholders through
dividends and capital reduction already approved by ANEEL.

The structure also encompasses an incurrence covenant test for
dividend distributions, constraining cash upstream if the DSCR
drops below 1.2x. The designed amortization schedule provides for
stable DCSRs through the life of the transaction. In Moody's base
case, the project shows average DSCRs of 1.25x between 2022 and
2026 and 1.31x between 2027 and 2032.

OUTLOOK

The stable outlook reflects the expectation of availability above
98% with average DSCR of 1.30x.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

The global scale rating is linked to the credit quality of the
sovereign, and positive rating action is constrained to similar
positive action. The global scale rating can be downgraded upon a
similar rating action on the sovereign. Aside from that, global
scale and national scale ratings can be downgraded if the project
faces much higher than expected operating and administrative
expenses such that the expectation of long term DSCRs decreases to
below 1.25x.

ISSUER PROFILE

Transenergia Sao Paulo S.A., headquartered in the city of Rio de
Janeiro, was created on July 8, 2009, by the Transenergia
Consortium, which is currently controlled by Furnas Centrais
Eletricas S.A (49%) and Gebbras Participacoes Ltda. (51%), winner
of lot G of the auction of the ANEEL 001/2009, to execute the
concession contract 002/2010. Furnas and Gebbras are controlled by
Centrais Eletricas Brasileiras SA-Eletrobras (Ba2 stable) and Grupo
Energia Bogota S.A. E.S.P. (Baa2 negative), respectively.

The company is responsible for the operation and maintenance of two
stretches of transmission lines, with 1 kilometer of extension, and
one substation located in the state of Sao Paulo.

METHODOLOGY

The principal methodology used in these ratings was Generic Project
Finance Methodology published in November 2019.



=========
C H I L E
=========

INVERSIONES LATIN AMERICA: S&P Gives (P)'BB' on $404MM Sec. Notes
------------------------------------------------------------------
S&P Global Ratings assigned its preliminary 'BB' issue-level rating
to Chile-based power generation company Inversiones Latin America
Power Limitada's (ILAP) new notes.

ILAP is planning to issue up to $404 million in senior secured
amortizing notes due in June 2033. At legal maturity, and under
S&P's base case scenario, the notes will have a balloon payment of
almost 30% that the company will fully repay by 2039 according to
our estimates.

The project will use most of the proceeds to repay its $390 million
senior secured bond due 2033 and to a lesser extent will cover
other general costs.

S&P said, "We assess ILAP's operational phase in two stages: the
first stage that commences at financial closing and ends in June
2033, when the notes are due. The second stage incorporates a
balloon payment of approximately 30% of the original bond amount
and goes from 2033 to 2039, when the project will fully amortize
the bond, under a 100% cash flow sweep mechanism and considering
the assumptions outlined in our base case. The full repayment
occurs four years before the potential end of the asset' useful
life in 2043 outlined by the independent engineer ARUP. Although we
typically incorporate a useful life for wind farms of 25 years, in
this case we considered 26 years, based on the useful life
expectation of the turbines' supplier and operating andmaintenance
operator, Vestas, and the ARUP's views."

The key elements that underpin S&P's assessment in both stages
are:

-- The relatively low operational risk because of the
low-complexity tasks associated with the operation of onshore wind
farms, when compared to the risk of other power plants such as the
thermal based combined cycles or more complex assets, such as
nuclear energy plants.

-- Moderate exposure to resource risk due to expected volatility
of wind availability levels, in line with other rated wind parks.

-- The resiliency of the project under a downside-case scenario
that includes stresses to the turbine availability, wind
probability, spot prices, operating costs, and energy demand in the
Chilean market. Under such a scenario, ILAP will continue to fulfil
its financial obligations for more than five years without
depleting its debt service reserves.

S&P said, "Although the project's cash flows will be exposed to
some volatility due to a variation in energy demand from contracted
capacity (given that PPA are take-and-pay) and spot prices (because
10%-15% of the project's output is sold in the spot market), we
don't believe it's material until June 2033. This is because under
a downside scenario, in which prices would drop to $35-$40 per
megawatt hour (MWh) and energy demand would drop 5%-10% from the
base-case scenario, we expect cash flows to decrease less than 5%
on average. Moreover, we assume that in the long term, the project
will focus on maintaining a minimum contracted capacity, as part of
its commercial strategy, which will also reduce the volatility in
future cash flows, particularly starting in 2028, because we expect
the project to sign new long-term PPAs by that time.

"Our base-case scenario incorporates minimum and average annual
DSCR during the first stage of 1.15x (in 2029) and close to 1.3x,
respectively, during the notes' term, which combined with our view
of the operational risk of the project and the resiliency under a
downside scenario results in an adjusted operations phase
stand-alone credit profile (SACP) at stage I of 'bb'.

"By June 30, 2033 (the notes' maturity date) and according to our
base-case assumptions, the issuance would have a balloon amount
close to $120 million. Given that neither the DSRA or the expected
cash flows by 2033 would be sufficient to pay the balloon amount at
maturity, we assume it will be refinanced.

"In the refinancing period, the project will be fully exposed to
spot prices (given that PPA contracts expire in 2032 and 2033). As
a result, we expect the CFADS may vary 20%-25%, assuming a 20% drop
in spot prices from our base-case assumptions. For this reason, we
see the overall operational risk as higher in the refinancing
period than in the first period.

"Our base-case scenario for the refinancing period incorporates
minimum and average annual DSCR of 2.1x (in 2039) and 5x,
respectively, which combined with our view of the operational risk
of the project and the resiliency under a downside scenario results
in a preliminary SACP of 'bbb'. Finally, during the refinancing
period, we assume that the project will pay the outstanding debt
only through the cash sweep mechanism. Given that DSCRs are more
robust relative to fully amortizing structures and reliance on the
sweep to pay down the debt, we adjust the preliminary SACP, leading
to an adjusted operations phase SACP at Stage II of 'bb'."




===================================
D O M I N I C A N   R E P U B L I C
===================================

DOMINICAN REPUBLIC: Economy Recovers 77% of Lost Jobs
-----------------------------------------------------
Dominican Today reports that the Dominican economy needs to add
just under 122,000 jobs to recover the number of formal employees
of  February 2020, before the impact of the pandemic on the
country.

In February 2020, the Social Security Treasury (TSS) registered
2,122,037 workers, a figure that decreased in the following months,
reaching its lowest level in May of that same year, when the number
stood at 1,593,310 employees, due to the paralysis of economic
activities to curb the spread of the virus, according to Dominican
Today.

However, as of June, the economy began to recover part of the jobs
lost and at the end of April 2021, the TSS had 2,000,040
contributors, which shows that to reach the level of February 2020,
only 121,997 jobs need to be added, the report notes.

From the end of February 2020 to May of the same year, 528,727
formal jobs were lost in the country, according to the
institution's statistics, 406,730 jobs have been recovered since
then, equivalent to 77% of the total lost, 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, 2021, 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: Ensures China's Bird Flu Not a Problem
----------------------------------------------------------
Dominican Today reports that Minister of Agriculture, Limber Cruz,
assured that the first case of avian flu detected in humans in
China would not affect the local consumption of chicken and eggs
since the country is self-sufficient in producing these.

According to Listin Diario, Cruz emphasized that the country
produces around 18 million pounds of chicken meat per month and
about eight million eggs per day, figures that complement the
national demand, the report notes.  He added that monthly, the
country produces one million eggs to export to Haiti daily,
according to Dominican Today.

"We are self-sufficient in this region. What we import is raw
material, such as soybeans, corn and sorghum. That reassures us, I
say so because it is not that there is not always a threat because
sometimes viruses and diseases are transmitted in other ways," he
said, the report relates.

The Agriculture Minister informed that, he met with the Dominican
Association of Poultry Farmers (ADA) and egg producers to fix the
prices of chickens and eggs in farms at RD$39.59 and RD$4.95, the
report recalls.

                      Context in China

China reported the world's first human infection of the H10N3
strain of avian influenza and that the risk of widespread
human-to-human spread is low, the report notes.

                    About Dominican Republic

The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district. Luis Rodolfo
Abinader Corona is the current president of the nation.

The Troubled Company Reporter-Latin America reported in April 2019
that the Dominican Today related that Juan Del Rosario of the UASD
Economic Faculty cited a current economic slowdown for the
Dominican Republic and cautioned that if the trend continues,
growth would reach only 4% by 2023. Mr. Del Rosario said that if
that happens, "we'll face difficulties in meeting international
commitments."

An ongoing concern in the Dominican Republic is the inability of
participants in the electricity sector to establish financial
viability for the system.

Fitch Ratings on Jan. 18, 2021, 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).




=============
J A M A I C A
=============

JAMAICA: Economy Contracts 5.7% in Jan.-March Quarter, PIOJ Says
----------------------------------------------------------------
RJR News reports that the Planning Institute of Jamaica (PIOJ) is
reporting that the Jamaican economy contracted by 5.7% in the
January to March quarter compared with the corresponding period in
2020.

PIOJ Director General Dr. Wayne Henry says this out-turn continues
to reflect the impact of the global pandemic, according to RJR
News.

However, there has been a gradual tempering of the rate of
contraction as indicated by the preliminary out-turn for the
current quarter, the report relays.

Dr. Henry says if this materializes, it would represent the lowest
rate of decline since the April to June 2020 quarter, the report
discloses.

The contraction in the economy was partially tempered by a
relatively strong increase in construction activities as well as
higher capacity utilization in the mining and quarrying industry,
the report adds.

                      About Jamaica

Jamaica is an island country situated in the Caribbean Sea.
Jamaica is an upper-middle income country with an economy heavily
dependent on tourism.  Other major sectors of the Jamaican economy
include agriculture, mining, manufacturing, petroleum refining,
financial and insurance services.

As reported in the Troubled Company Reporter-Latin America in March
2021, Fitch Ratings affirmed Jamaica's Long-Term Foreign Currency
Issuer Default Rating (IDR) at 'B+', with a stable outlook.
Standard & Poor's credit rating for Jamaica stands at B+ with
negative outlook (April 2020). Moody's credit rating for Jamaica
was last set at B2 with stable outlook (December 2019).  

According to Fitch, Jamaica 'B+' rating is supported by World Bank
Governance Indicators that are substantially stronger than the 'B'
and 'BB' medians, a favorable business climate according to the
World Bank Doing Business Survey, moderate inflation and moderate
commodity dependence. These strengths are balanced by vulnerability
to external shocks, a high public debt level and a debt composition
that makes the sovereign vulnerable to exchange rate fluctuations.

The Stable Outlook is supported by Fitch's expectation that the
public debt level will return to a firm downward path
post-pandemic, which is underpinned by political consensus to
maintain a high primary surplus, the resilience of external
finances, and stronger economic policy institutions.


JAMAICA: Int'l Tourist Arrivals Declined in First Quarter of 2021
-----------------------------------------------------------------
RJR News reports that the UN World Tourism Organization (UNWTO) is
reporting that international tourist arrivals declined by 83
percent in the first quarter of 2021, against the same year ago
period.

However, the UNWTO has expressed optimism for the months ahead,
after an uptick in its Confidence Index, according to RJR News.

The organization says that between January and March 2021,
destinations around the world welcomed 180 million fewer
international arrivals compared to the first quarter of  last year,
the report notes.

This follows a 73% fall in worldwide international tourist arrivals
in 2020, the report discloses.

UNWTO noted that this makes last year the worst on record for the
sector, the report relays.

However, the latest survey of  the UNWTO Panel of Tourism Experts
suggests that prospects for the May to August period may improve
slightly, the report notes.

The tourism organization attributes this to the pace of  the
vaccination roll-out in some key source markets as well as the
advancement of  policies to restart tourism safely, the report
discloses.

Overall, 60% of respondents expect a rebound in international
tourism only in 2022, up from 50% in the January 2021 survey, the
report says.

The remaining 40% see a potential rebound in 2021, though this is
down slightly from the percentage in January, the report relays.

Nearly half of the experts do not see a return to 2019
international tourism levels before 2024 or later, while the
percentage of  respondents indicating a return to pre-pandemic
levels in 2023 has decreased 37 percent, when compared to the
January survey, the report discloses.

UNWTO's Secretary-General says there is significant pent-up demand
and confidence is slowly returning, the report adds.

                      About Jamaica

Jamaica is an island country situated in the Caribbean Sea.
Jamaica is an upper-middle income country with an economy heavily
dependent on tourism.  Other major sectors of the Jamaican economy
include agriculture, mining, manufacturing, petroleum refining,
financial and insurance services.

As reported in the Troubled Company Reporter-Latin America in March
2021, Fitch Ratings affirmed Jamaica's Long-Term Foreign
Currency Issuer Default Rating (IDR) at 'B+', with a stable
outlook. Standard & Poor's credit rating for Jamaica stands at B+
with negative outlook (April 2020). Moody's credit rating for
Jamaica was last set at B2 with stable outlook (December 2019).  

According to Fitch, Jamaica 'B+' rating is supported by World Bank
Governance Indicators that are substantially stronger than the 'B'
and 'BB' medians, a favorable business climate according to the
World Bank Doing Business Survey, moderate inflation and moderate
commodity dependence. These strengths are balanced by vulnerability
to external shocks, a high public debt level and a debt composition
that makes the sovereign vulnerable to exchange rate fluctuations.

The Stable Outlook is supported by Fitch's expectation that the
public debt level will return to a firm downward path
post-pandemic, which is underpinned by political consensus to
maintain a high primary surplus, the resilience of external
finances, and stronger economic policy institutions.




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

[*] BOND PRICING: For the Week May 31 to June 4, 2021
-----------------------------------------------------
Issuer Name              Cpn     Price   Maturity  Country  Curr
-----------              ---     -----   --------  -------   ---
Cia Latinoamericana de     9.5    74.3    7/20/2023    AR     USD
Polarcus Ltd               5.6    71.8     7/1/2022    AE     USD
AES Tiete Energia SA       6.8     1.2    4/15/2024    BR     BRL
Provincia de Rio Negro     7.8    70.3    12/7/2025    AR     USD
Argentine Republic Gov     8.3    72.9   12/31/2033    AR     USD
Empresa Electrica de l     2.5    63.8    5/15/2021    CL     CLP
Argentine Republic Gov     7.1    75.7    6/28/2117    AR     USD
Provincia del Chaco Ar     9.4    74.8    8/18/2024    AR     USD
Argentine Republic Gov     0.5    27.6   12/31/2038    AR     JPY
Noble Holding Internat     5.3    60.5    3/15/2042    KY     USD
Provincia de Cordoba       7.1    72.7     8/1/2027    AR     USD
Province of Santa Fe       6.9    74.7    11/1/2027    AR     USD
Banco Macro SA            17.5    65.2     5/8/2022    AR     ARS
Esval SA                   3.5    49.9    2/15/2026    CL     CLP
Argentine Republic Gov     8.3    72.9   12/31/2033    AR     USD
Automotores Gildemeist     6.8    54.9    1/15/2023    CL     USD
Argentine Republic Gov     8.3    72.9   12/31/2033    AR     USD
Enel Americas SA           5.8    32.7    6/15/2022    CL     CLP
Noble Holding Internat     6.1    62.0     3/1/2041    KY     USD
Provincia del Chaco Ar     4.0     0.0    12/4/2026    AR     USD
Provincia de Buenos Ai     7.9    75.3    6/15/2027    AR     USD
Noble Holding Internat     6.2    62.2     8/1/2040    KY     USD
Provincia de Rio Negro     7.8    70.4    12/7/2025    AR     USD
YPF SA                    16.5    67.3     5/9/2022    AR     ARS
Provincia del Chubut A     4.5    2208    3/30/2021    AR     USD
Avadel Finance Cayman      4.5    55.0     2/1/2023    US     USD
Odebrecht Finance Ltd      6.0    16.4     4/5/2023    KY     USD
Sylph Ltd                  2.4    65.1    9/25/2036    KY     USD
Provincia de Cordoba       7.1    74.7     8/1/2027    AR     USD
YPF SA                    16.5    67.3     5/9/2022    AR     ARS
Automotores Gildemeist     8.3    54.2    5/24/2021    CL     USD
Cia Energetica de Pern     6.2     1.1    1/15/2022    BR     BRL
Banco Macro SA            17.5    65.2     5/8/2022    AR     ARS
Provincia de Rio Negro     7.8    70.3    12/7/2025    AR     USD
Odebrecht Finance Ltd      6.0    16.4     4/5/2023    KY     USD
Cia Latinoamericana de     9.5    73.9    7/20/2023    AR     USD
Argentina Bonar Bonds      7.6    74.4    4/18/2037    AR     USD
Argentine Republic Gov     8.3    74.5   12/31/2033    AR     USD
KrisEnergy Ltd             4.0    40.4     6/9/2022    SG     SGD
Metrogas SA/Chile          6.0    41.6     8/1/2024    CL     CLP
Corp Universidad de Co     5.9    64.2   11/10/2021    CL     CLP
City of Cordoba Argent     7.9    73.1    9/29/2024    AR     USD
Odebrecht Finance Ltd      6.0    16.4     4/5/2023    KY     USD
Province of Santa Fe       6.9    74.7    11/1/2027    AR     USD
Argentine Republic Gov     8.3    74.5   12/31/2033    AR     USD
Argentine Republic Gov     6.9    75.2    1/11/2048    AR     USD
Argentina Bonar Bonds      5.8    75.2    4/18/2025    AR     USD
Argentine Republic Gov     4.3    70.0   12/31/2033    AR     JPY
Automotores Gildemeist     6.8    54.9    1/15/2023    CL     USD
Province of Santa Fe       6.9    75.2    11/1/2027    AR     USD
Argentine Republic Gov     6.3    74.1    11/9/2047    AR     EUR
Fospar S/A                 6.5     1.2    5/15/2026    BR     BRL
YPF SA                    16.5    67.3     5/9/2022    AR     ARS
Automotores Gildemeist     8.3    54.2    5/24/2021    CL     USD
Province of Santa Fe       6.9    75.2    11/1/2027    AR     USD



                           *********


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 * * *