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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

          Friday, June 25, 2021, Vol. 22, No. 121

                           Headlines



A R G E N T I N A

ARGENTINA: IMF Sees $45 Billion Deal Pushed Into 2022
TELECOM ARGENTINA: Posts $98.8 Million Net Income at 2021 1st Qtr.


B R A Z I L

BRAZIL: Proposal by Ministry Foresees Taxation of Dividends at 20%
XP INC: Fitch Assigns FirstTime 'BB-' LT IDRs, Outlook Negative
XP INC: Moody's Assigns 'Ba2' CFR & Rates New Unsec. Notes 'Ba2'


C H I L E

LATIN AMERICA POWER: Issues US$404 Million Green Bond


M E X I C O

GUADALUPE: Moody's Withdraws B2 Global Scale Rating
NEMAK SAB: Moody's Rates New $500MM Unsecured Bonds 'Ba1'
NEMAK SAB: S&P Rates Up to $500MM in Unsecured Notes 'BB+'


P U E R T O   R I C O

GUI-MER-FE INC: Seeks to Employ Luis Cruz Lopez as Accountant
HOGAR CARINO: Seeks to Employ Virgilio Vega as Accountant

                           - - - - -


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A R G E N T I N A
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ARGENTINA: IMF Sees $45 Billion Deal Pushed Into 2022
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Eric Martin and Patrick Gillespie at Bloomberg News report that the
International Monetary Fund (IMF) privately estimates that a deal
allowing Argentina to reschedule payments on $45 billion owed to
the lender will be pushed into 2022 as President Alberto Fernandez
has little incentive to quickly agree on the basis of a new
program.

While the IMF has said it's constructively engaging with
Fernandez's administration, negotiations entailing fiscal austerity
aren't expected to make much progress before Argentina's midterm
elections in November, said five people familiar with the talks,
asking not to be identified because discussions are private,
according to Bloomberg News.

Pressure on Argentina for a faster deal has also eased as the
government will likely have enough money to cover $4.58 billion in
principal and interest payments due to the Fund later this year,
Bloomberg News relays.  It expects to receive $4.4 billion in IMF
reserves in August, as part of a global injection of funds to fight
the economic impact of the pandemic, and has also seen
larger-than-expected dollar revenue due to rising prices of
soybeans, a top export product, Bloomberg News discloses.

More crucially, Argentina and the IMF haven't so far agreed on
economic projections that will be the basis for a new program,
according to two of the people, one of whom called the estimates
provided by the country overly optimistic, Bloomberg News notes.

Argentina's economy ministry declined to comment.  Bloomberg News
relates that the IMF said it had no additional comments beyond
those made by its spokesman Gerry Rice on June 10, when he said the
Fund is working on a program to address Argentina's deep social and
economic challenges, without offering a prediction on timing.

                          Paris Club

Calls are growing louder for Fernandez to put forward a credible
economic plan as his government also seeks to restructure debts
with the Paris Club, Bloomberg News relates.  Argentina didn't make
a $2.4 billion payment due in May to the club of rich countries,
and both sides continue negotiating during a 60-day grace period,
Bloomberg News relates that notes.  Next year, Argentina owes $18
billion in principal to the IMF, an amount the president says the
government can't pay, Bloomberg News relates.

U.S. Deputy Treasury Secretary Wally Adeyemo spoke to Economy
Minister Martin Guzman on the IMF and Paris Club discussions,
saying the U.S. would support a "strong economic policy framework
for Argentina that provides a vision for private sector job
growth," Bloomberg News discloses.  Any agreement at the IMF
requires U.S. support since it has the largest share of votes.

Argentina began talks last year with the IMF for a revamped program
to reschedule payments stemming from a record deal granted to the
previous, pro-business government of Mauricio Macri, Bloomberg News
relays.  Guzman initially aimed to close a deal by May.

As talks are expected to heat up after the election, the IMF will
also be changing one senior official in Buenos Aires, Bloomberg
News relays.  As part of a routine rotation of senior staff, Ben
Kelmanson, currently the Fund's representative in Turkey, will
replace Trevor Alleyne, whose term in Argentina ends this year, a
Fund spokesman said, Bloomberg News adds.

                        About Argentina

Argentina is a country located mostly in the southern half of South
America.  It's capital is Buenos Aires. Alberto Angel Fernandez is
the current president of Argentina after winning the October 2019
general election. He succeeded Mauricio Macri in the position.

Argentina has the third largest economy in Latin America.  The
country's economy is an upper middle-income economy for fiscal year
2019, according to the World Bank. Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.

Standard & Poor's credit rating for Argentina stands at CCC+ with
stable outlook, which was a rating upgrade issued on Sept. 8, 2020.
Moody's credit rating for Argentina was last set at Ca on Sept.
28, 2020.  Fitch's credit rating for Argentina was last reported on
Sept. 11, 2020 at CCC, which was a rating upgrade from CC.  DBRS'
credit rating for Argentina is CCC, given on Sept. 11, 2020.  

As reported by The Troubled Company Reporter - Latin American, DBRS
noted that the recent upgrade in Argentina's ratings (September
2020) follows the closing of two debt restructuring agreements
between the Argentine government and private creditors.  The first
restructuring involved $65 billion in foreign-law bonds.  The deal
achieved the requisite participation necessary to trigger the
collective action clauses and finalize the restructuring on 99% on
the aggregate principal outstanding of eligible bonds.  DBRS added
that the debt restructurings conclude a prolonged default and
provide the government with substantial principal and interest
payment relief over the next four years.

DBRS further relayed that Argentina is also seeking a new agreement
with the International Monetary Fund (IMF) to replace the canceled
2018 Stand-by Agreement.  Formal negotiations on the new financing
began in November 2020.  Obligations to the IMF amount to $44
billion, with major repayments coming due in 2022 and 2023.


TELECOM ARGENTINA: Posts $98.8 Million Net Income at 2021 1st Qtr.
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ncadvertiser.com reports that Telecom Argentina SA (TEO) reported
first-quarter net income of $98.8 million, after reporting a loss
in the same period a year earlier.

On a per-share basis, the Buenos Aires, Argentina-based company
said it had net income of 23 cents, according to ncadvertiser.com.

The telecommunications company posted revenue of $932.8 million in
the period, the report notes.

Telecom Argentina shares have dropped 11% since the beginning of
the year, the report relays.  The stock has declined 38% in the
last 12 months, the report adds.

As reported in the Troubled Company Reporter-Latin America, Fitch
Ratings has affirmed the Long-Term Foreign Currency (FC) ratings of
Telecom Argentina S.A., including the 'B-' FC Issuer Default Rating
(IDR) and the 'B-'/'RR4' USD unsecured notes. Fitch has removed the
Rating Watch Negative (RWN) from both the Long-Term FC IDR and the
USD notes, including the 2025 and 2026 notes. The removal of the
Rating Watch reflects the company's USD103.6 million June 2021
maturity payment after successfully accessing dollars via the
official FX market.




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BRAZIL: Proposal by Ministry Foresees Taxation of Dividends at 20%
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Rio Times Online reports that Brazil's Ministry of Economy has
defined a proposal to tax dividends greater than R$240,000
(US$47,000) per year at 20%.

Minister Paulo Guedes' team is now reviewing the dividend tax
proposal at the request of the Planalto Palace to include the
exempt amoung in the draft, according to Rio Times Online.

At present, this form of profit distribution is completely
tax-exempt, the report notes.  Originally, the economic team worked
with a tax rate of 15% without any exemption, but there were
already considerations to increase it to 20%, the report adds.

Brazil is the fifth largest country in the world and third largest
in the Americas.  Jair Bolsonaro is the current president, having
been sworn in on Jan. 1, 2019.

Fitch Ratings' credit rating for Brazil stands at 'BB-' with a
negative outlook (November 2020).  Fitch's 'BB-' Long-Term Foreign
and Local Currency Issuer Default Ratings (IDRs) has been affirmed
in May 2021.  Standard & Poor's credit rating for Brazil stands at
BB- with stable outlook (April 2020).  S&P's 'BB-/B' long-and
short-term foreign and local currency sovereign credit ratings for
Brazil were affirmed in December 2020.  Moody's credit rating for
Brazil was last set at Ba2 with stable outlook (April 2018). DBRS's
credit rating for Brazil is BB (low) with stable outlook (March
2018).


XP INC: Fitch Assigns FirstTime 'BB-' LT IDRs, Outlook Negative
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Fitch Ratings has assigned first time Long-Term Local and Foreign
Currency Issuer Default Ratings (IDRs) of 'BB-' to XP Inc. and a
'BB-(EXP)' issuance rating to the senior unsecured notes. The
Rating Outlook is Negative.

KEY RATING DRIVERS

XP Inc.'s ratings are one notch above the Operating Environment
Score of 'b+' which has a Negative trend for Brazilian financial
institutions and are at the level of the Brazilian's sovereign
rating of 'BB-' with a Negative Outlook.

The ratings are highly influenced by its company profile and
reflects its market leading retail brokerage franchise in Brazil,
including a well-developed open architecture distribution business,
which has translated into sustained strong financial metrics under
Fitch's "Securities Firms Non-Bank Financial Institutions
Criteria". Fitch views the company's organizational structure as
complex, given the existing layers of intermediate holding
companies. The ratings also consider the high influence of the
company's sound profitability and its relatively resilient
performance through the cycles.

XP Inc.'s low-risk balance sheet and solid business model drive the
milder-than-peers effect from the current crisis on the group's
financial profile. However, Fitch believes the operating
environment exerts a high influence on XP Inc.'s ratings and
prospects, in particular, in relation to the company's domestic
clients and operations. Fitch's assessment also factors in the
group's moderate lending activity expansion.

XP Inc.'s unsecured senior notes rating is equalized with the
Long-Term IDR, as the probability of default is the same as that of
the entity. XP Inc's business model has evolved into a full
service, financial firm catering to the needs of mass market retail
investors. The company's robust technological platform and strong
brand reputation are key competitive advantages over domestic banks
as it connects different competitors, mostly banks and asset
managers, to an ample pool of retail clients in a reliable and
efficient manner, offering a one-stop solution.

The continuous development of its platform gives XP Inc. a tool to
escalate its business at a low marginal cost, supporting the
stability and predictability of earnings. The company offers a full
range of services and products to individuals and companies,
offering different types of investments products, from different
issuers, banks and managers.

XP Inc.'s ratings also consider with moderate influence the
Management and Strategy factor. Management has considerable depth,
experience and credibility, as demonstrated by the successful
execution of its rapid customer driven growth combined with an
increasing share of wallet of existing clients. The company also
managed to diversify its geographical footprint through offices in
New York, Miami and Europe supporting its distribution
capabilities. Fitch believes XP Inc.'s culture of innovation and
its relationship with the customer has reinforced its reputation
and brand in the market.

The company also incorporates a moderate risk appetite and analyzes
operational and image risks, which demands constant improvement in
terms of risk control and relevant investments in technology.
Operational and litigation risks are the main risks to which XP Inc
is exposed to as they are an inherent part of its business. High
automation of processes, sound controls, IT investments, including
cyber security, and a highly regulated environment minimize these
risks. Operational losses to date have been minimal. Fitch sees the
growth of the company as aggressive, but in line with the strategic
planning of the company and within the market opportunities.

The financial profile is strong and continues to develop given the
company's aggressive but reliable strategies, in Fitch's view.
Profitability is sound as evidenced by company's solid record of
pre-tax return on equity of 27.9% in 1Q21, 26.8% 2020 and 33.4% in
2019. Management fees and commissions represent XP Inc's primary
sources of income. While this income stream is sensitive to client
volumes and to a lesser extent changes in asset prices, it has
proved resilient under most market conditions.

Fitch views the credit risk in XP Inc.'s loan portfolio as modest.
The loan portfolio is relatively new and small (less than 5% of the
assets). The company created its bank in 2019 and is already
offering credit cards and collateralized credit, so Fitch will
continue monitoring the evolution of the entity's asset quality.

Fitch views liquidity and funding diversity as solid when compared
to other NBFIs. XP Inc. maintains a good portion of its liquidity,
around BRL5 billion out of a total cash position of BRL12 billion,
invested in other countries. A position of liquid assets (in no
Brazilian securities) covers a large part of its short-term debt.
Liquid assets/short-term funding represents 437% in 1Q21 and
high-quality liquid assets for the conglomerate was 397.3% in 1Q21.
Following the opening of the banking subsidiary, the company was
able to grow its funding sources for the retail segment. XP Inc.'s
leverage was adequate, tangible assets - repos-securities
borrowed/tangible equity was 4.9x in 1Q21 and the Common Equity
Tier 1 was 13.2%.

RATING SENSITIVITIES

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

-- Further changes in Brazil's ratings or Outlooks or in Fitch's
    assessment of the Operating Environment;

-- In the medium to long term, a relevant evolution of XP Inc.'s
    company profile, a substantial improvement in business model
    diversification, and a relevant strengthening of the franchise
    with better visibility of the organization's structure that
    could enable the entity to service its obligations in an event
    of a sovereign default.

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

-- Further changes in Brazil's ratings or Outlooks or in Fitch's
    assessment of the Operating Environment;

-- Relevant operational losses, which bring some damage to the
    company's image and/or worsen operating results, in addition
    to greater leverage, with greater risk on-the-balance sheet
    can negatively affect the ratings;

-- If the company starts to show volatility in earnings and
    profitability metrics.

ESG CONSIDERATIONS

The highest level of ESG credit relevance, if present, is a score
of '3'. ESG issues are credit neutral or have only a minimal credit
impact on the entity, either due to their nature or the way in
which they are being managed by the entity.

BEST/WORST CASE RATING SCENARIO

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


XP INC: Moody's Assigns 'Ba2' CFR & Rates New Unsec. Notes 'Ba2'
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Moody's Investors Service has assigned a Ba2 corporate family
rating to XP Inc. Moody's has also assigned a Ba2 rating to XP's
proposed backed senior unsecured notes, that it intends to be fully
and unconditionally guaranteed by its subsidiary XP Investimentos
S.A. XP's outlook is stable. XP intends to use the net offering
proceeds for general corporate purposes.

Moody's has taken the following rating actions:

Long term Corporate Family Rating, Ba2, assigned

Proposed guaranteed senior unsecured notes due 2024, Ba2

Proposed guaranteed senior unsecured notes due 2026, Ba2

Outlook actions:

Outlook, stable, assigned

RATINGS RATIONALE

Moody's said XP's Ba2 CFR reflects its leading position as a
full-service securities company offering a broad array of
market-making and brokerage services to retail and institutional
clients in Brazil's growing capital markets. XP's ratings reflect
its reasonable liquidity, relatively low risk appetite in its
market-making activities and its strong historical profitability
derived from diverse sources of revenue that has helped it maintain
healthy levels of capital. Moody's said the company's balance sheet
leverage has remained contained despite its strong growth. XP's CFR
also reflects the challenges it faces in maintaining strong risk
management and containing operational risk as it continues its
strategic expansion into new product types. The rating agency also
considered that the company's strong technological focus both in
terms of internal systems as well as its client facing applications
is a key factor in its creditworthiness. Moody's also considers
that XP's creditworthiness is strongly linked to Brazilian
sovereign risk through its extensive market-making activities in
and holdings of Brazilian government securities, and the
geographical concentration of its operations in Brazil, and
accordingly XP's CFR has been assigned at the same level and
outlook as Moody's Brazilian sovereign rating.

Under the proposed terms and conditions of XP's debt offering, the
principal and payment of interest on the proposed notes will be
irrevocably and unconditionally guaranteed by XP Investimentos
S.A., the intermediate holding company that houses the vast
majority of XP's operations. Moody's considers that XP's creditors
are structurally subordinated to its main market-making,
broker-dealer operating company's (XP CCTVM S.A.) sizeable
debt-like obligations, predominantly short term repos of Brazilian
government bonds. However, the cash flows generated by XP's diverse
other activities are of sufficient size to offset this structural
subordination in its capital structure, and accordingly the ratings
assigned to XP's proposed debt instruments are aligned with its
CFR.

Founded in 2001 as an independent financial adviser (IFA), XP has
grown its operations steadily to become a leading Brazilian
securities company with an open architecture investment platform
offering a full range of investment products to retail and
institutional clients, including capital markets structuring
activities. XP also offers banking, insurance brokerage and
education services. The company's assets under custody have grown
rapidly, rising by 61% in 2020 and on average by 74% each year
during 2017-2020. The company's main operating entity is its broker
dealer XP CCTVM, which houses the majority of its employees and in
2020 generated two-thirds of its revenue. The company distributes
its products through the largest network of IFAs in Brazil and its
online investment platform that includes XP Direct, Clear and Rico.
As of March 2021, the company had 3 million clients, up by 47% year
over year, while its assets under custody were up by 96% to BRL715
billion.

XP's strong profitability has enabled it to generate capital on a
consistent basis, a key credit strength as it has successfully
transitioned through economic cycles. From 2018-2020, the company
reported a return on average assets (ROAA) of 3.1%. Moody's also
notes that XP derives its revenue from a variety of sources
historically and has traditionally reinvested its earnings to
bolster its capitalization.

XP aims to disrupt the business model of incumbent banking
institutions in Brazil and Moody's expects the company to grow its
existing business lines and expand into new lines of business
traditionally dominated by banks. The company's strong growth
trajectory could lead to an increase in risk taking. Similarly,
XP's balance sheet leverage of 11.3x as of March 2021 could also
rise as it continues its strong growth path.

Risk management is at the core of XPs operations and Moody's
considers the company's monitoring and management of the credit,
market, operational and liquidity risks it faces to be at an
appropriate level. Given its technological focus, cybersecurity is
also of paramount importance and the rating agency notes the
continued investment XP has made in keeping its system secure.

In terms of indebtedness, as of March 2021, XP's corporate debt
leverage was a favorable 0.8x. Moody's expects XPs leverage to rise
as the company explores optimizing its capital structure and
diversifying its funding sources but that its overall indebtedness
and coverage ratios will remain consistent with its Ba2 CFR.

XP' exposure to environmental and social risks is low and moderate,
respectively, consistent with Moody's general assessment for the
securities industry. Governance risk is highly relevant for XP, as
it is to all financial institutions. While Moody's does not have
any particular governance concerns for XP, the relative short track
record of the company and its expected continued rapid expansion
will test the quality of its corporate governance and controls.
Therefore, it remains a key credit consideration and requires
ongoing monitoring.

XP's stable outlook is consistent with the stable Brazilian
sovereign outlook, and also considers Moody's expectation that XP
will continue to generate strong profitability and cash flows and
that its ongoing growth will not result in any significant
deterioration in leverage, risk appetite or liquidity.

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

XP's CFR and debt ratings are at the same level as the Brazilian
sovereign rating, and accordingly an upgrade of the Brazilian
sovereign rating could result in an upgrade of XP's rating.

XP's CFR and debt ratings could be downgraded in the wake of a
significant increase in risk appetite that leads to a worsening of
its liquidity or a rise in its balance sheet leverage. A
substantial failure in risk management and controls, or a sustained
fall in profitability from increased competition or changes in the
regulatory environment could also create downward ratings pressure.
Adverse changes in corporate culture or management quality or a
shift towards a more aggressive strategic policy such as a large
debt-funded acquisition could also result in a downgrade. A
downgrade in Brazil's credit ratings could also lead to a downgrade
in XP's rating. XP's debt instrument ratings could be downgraded
should there be an increase in structural subordination or reduced
diversification of revenue sources.

The principal methodology used in these ratings was Securities
Industry Market Makers Methodology published in November 2019.




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LATIN AMERICA POWER: Issues US$404 Million Green Bond
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Renewables Now reports that Santiago-based renewable energy
producer Latin America Power (LAP) has issued USD403.9 million
(EUR339.8 million) 5.125% senior secured notes to refinance the
debt tied to its wind farms in Chile.

The notes mature in 2033 and represent the first "high yield 100%
green bond from Chile", according to law firm Greenberg Traurig
LLP, which served as US counsel to Inversiones Latin America Power
Limitada in the issuance, according to Renewables Now.

The proceeds are allocated to the refinancing of an outstanding
debt consisting of 5.35% notes totalling USD 412 million and issued
in 2017, the report notes.  The debt was related to the
construction of LAP's two wind farms with the combined installed
capacity of 239.2 MW, the law firm said, the report discloses.

LAP operates the 193.2-MW San Juan and the 46-MW Totoral wind farms
in Chile.  These are the company's only wind farms.  Apart from
them, LAP operates several small hydroelectric stations in Chile
and Peru, according to its website.

Goldman Sachs & Co LLC and Citigroup Global Markets Inc were the
initial purchasers in the issuance, the report relays.  The notes
are listed on the Official List of the Singapore Exchange Trading
Limited (SGX-ST), Greenberg Traurig said, the report adds.

As reported in the Troubled Company Reporter-Latin America, S&P
Global Ratings assigned its 'BB' issue-level rating to Chile-based
power generation company Inversiones Latin America Power Limitada's
(ILAP) new 5.13% $403.9 million senior secured amortizing notes due
in June 15, 2033, following the receipt and satisfactory review of
all transaction documents. The amount issued is in line with S&P's
expectations, while interest rate is slightly below previous
discussion.




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GUADALUPE: Moody's Withdraws B2 Global Scale Rating
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Moody's de Mexico has withdrawn the B2 (Global Scale, local
currency) and Ba2.mx (Mexico's National Scale) issuer ratings of
the Municipality of Guadalupe. Moody's has also withdrawn the
negative outlook and the b2 Baseline Credit Assessment.

At the same time, Moody's withdrew the B1/Baa2.mx debt rating to
the MXN161.3 million (original face value) enhanced loan from
Banobras.

The loan is payable through a trust (F/851-01902, Banregio as
trustee), to which the municipality has pledged 35.5% of the flows
and rights of its General Participations Fund. The loan is
denominated in Mexican pesos with a maturity of 6 years and an
interest rate composed of the 28-day Mexican Interbank Interest
Rate (TIIE in Spanish) plus a spread.

RATINGS RATIONALE

Moody's has decided to withdraw the ratings for its own business
reasons.

The principal methodology used in rating the issuer ratings was
Regional and Local Governments published in January 2018.


NEMAK SAB: Moody's Rates New $500MM Unsecured Bonds 'Ba1'
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Moody's Investors Service assigned a Ba1 rating to Nemak, S.A.B. de
C.V.'s proposed 10-years $500 million senior unsecured
sustainability linked bonds. Nemak's existing ratings including its
Ba1 Corporate Family Rating and stable outlook remain unchanged.

The proceeds from the proposed bonds will be used to refinance
Nemak's existing $500 million 4.75% bonds due 2025. The proposed
bonds will include a sustainability linked structure associated to
an 18% reduction target in Nemak's greenhouse gases emissions to be
measured five years after the issuance of the bonds. Nemak has
established a goal to reduce its greenhouse gas emissions by 28% by
the end of 2030 as measured in 2019. The bonds have an interest
rate step-up clause in which interest rate payable on the notes
will increase by 25 basis points if certain sustainability targets
are not met.

RATINGS RATIONALE

The Ba1 ratings reflect the company's sales concentration with 52%
of its volumes being sold in North America, and its product focus
into three main segments with the same demand drivers. On the other
hand, the ratings continue to reflect Nemak's leading position in
the aluminum engine blocks and cylinder head markets, as well as
its growing e/mobility and structural application business. The
ratings also consider the company's status as the sole supplier for
about 90% of its volumes, its strong technology and innovation
capabilities, and the solid relationship with many of the major
global automakers.

Nemak's operations are closely linked to the performance of the
automotive industry in North America and Europe, where about 88% of
its revenues are derived. Moody's has a stable outlook for the
global automotive manufacturing industry. Moody's expects global
light vehicle sales will continue to recover in 2021. The recovery
in the auto sector will, however, be uneven and faces short term
headwinds like a shortage of semiconductors, which might diminish
global light vehicle production by around 2% this year hurting
automakers around the world. Nonetheless, Moody's forecasts light
vehicle sales in the US to increase by 5.4% in 2021 and 4.9% in
2022. Similarly, Moody's expects Western European auto unit sales
to grow by 11.2% in 2021 and 10.5% in 2022.

Nemak's sales volumes have recovered in the 2H20 and 1Q21 resulting
in a 14.6% y-o-y revenue growth in the 1Q21. Similarly,
profitability measured by EBITDA/Equivalent unit raised to $15.8 in
the 1Q21; up from $13.5 in the 1Q20. Moody's estimates Nemak's
adjusted EBITDA margin will reach around 16% in 2021-22 supported
by higher revenues and a leaner cost structure. The company has
done efforts to reduce its operating costs in face of the
coronavirus outbreak in 2020 which will continue to benefit its
profitability going forward.

Nemak's credit metrics will improve as well over 2021-22 supported
by better operating environment and economic recovery. Moody's
estimates that Nemak will reduce its adjusted debt/EBITDA below
3.0x by the end of 2021 from higher EBITDA generation and debt
reduction; down from 3.5x over the twelve months ended March 31,
2021. Higher EBITDA in 2022 will help Nemak's adj. debt/EBITDA to
further improve towards 2.5x by year end 2022. Similarly, Moody's
expects interest coverage will improve with adj. EBITDA/Interest
expense over 5x in 2021 and over 8.5x in 2022; up from an expected
5x in 2020.

Nemak has adequate liquidity. The company reported cash on hand of
$275 million as of March 31, 2021 that can cover 1.9x its
short-term debt and CMLTD of $149 million as of the same date. In
addition, the company has committed credit facilities totaling $408
million, which are fully available. Furthermore, Nemak's advised
credit facilities add $440 million (77% available) to its secondary
sources of liquidity. Pro-forma for the issuance of the proposed
notes and debt refinancing, Nemak will improve its long-term debt
maturity profile with no major amortizations until 2024 when its
Euro-denominated bonds are due and in 2031 when its proposed $500
million notes are due. Nemak will resume its capex program in 2021
and invest on average $390 million per year in 2021-23, primarily
to increase installed capacity in electric vehicles and structural
components. As a result, Moody's estimates Nemak will post negative
free cash flow in 2021-23 despite lower dividend payout over the
forecasted period.

The stable outlook reflects Moody's expectations that Nemak's
credit metrics and profitability will improve over the next 12-18
months.

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

The ratings could be upgraded if the company is able to grow its
topline while maintaining strong credit metrics, with
Moody's-adjusted gross debt/EBITDA below 2.5x and Moody's-adjusted
EBITA/interest expense above 4.0x. To be considered for an upgrade,
the company would also need to improve its profitability, maintain
robust liquidity and cash generation that translates into a
meaningful positive free cash flow.

The ratings could be downgraded if the company's credit metrics
deteriorate over the next 18 months, or in case there is a
greater-than expected decline in automobile sales that hurts
Nemak's operations or liquidity. Failure to de-lever the company,
with adjusted gross debt/EBITDA declining toward 3.0x, or a
deterioration in liquidity could lead to a downgrade.

The principal methodology used in this rating was Automotive
Suppliers published in May 2021.

Nemak, S.A.B. de C.V. produces aluminum cylinder heads, engine
blocks, transmission components, and structural and electric
vehicle components for light vehicles manufactured by more than 60
customers worldwide, with 73% of its sales volumes coming from Ford
Motor Company (Ba2 stable), Volkswagen Aktiengesellschaft (A3
stable), General Motors Company (Baa3 stable) and Fiat Chrysler
Automobiles N.V. -- now part of Stellantis N.V. (Baa3 stable).
Nemak's products are sold mainly in North America and Europe, which
account for 88% of its consolidated revenue. Nemak reported revenue
of $3.4 billion over the twelve months ended March 31, 2021.


NEMAK SAB: S&P Rates Up to $500MM in Unsecured Notes 'BB+'
----------------------------------------------------------
S&P Global Ratings assigned its 'BB+' issue-level and '3' recovery
ratings (rounded estimate: 55%) to Nemak S.A.B. de C.V. (Nemak;
BB+/Stable/--)'s proposed senior unsecured notes of up to $500
million in aggregate amount. This transaction reflects Nemak's
active liability management. The company will refinance its
existing 4.75% senior unsecured bond due 2025 with an outstanding
balance of $500 million, ahead of its maturity.

Under this bond, the company has established sustainability
objectives, mainly to reduce greenhouse gas (GHG) emissions.
Nemak's goal is to reduce GHG emissions by 28% by 2030 with a
median target of 18% by 2026, compared with scope 1 and 2 GHG
emissions of 1.4 million metric tons of carbon dioxide equivalent
as of Dec. 31, 2019. Under a stressed scenario, where the company
does not achieve the expected sustainability performance target in
the proposed timeframes, this will result in an increased interest
rate, which will be established on transaction completion. The
company will also be subject to publishing, on an annual basis, its
sustainability performance along with a verification assurance
report issued by the external verifier. In S&P's opinion, this
transaction reflects the company's commitment to improve its
sustainability practices.

The stable outlook on the issuer credit rating reflects S&P's view
that Nemak's production volumes will continue recovering toward
pre-pandemic levels as it improves product mix and increases market
access in the electric vehicle segment, allowing it to post debt to
EBITDA below 2.0x and free operating cash flow to debt close to 15%
while maintaining strong liquidity.
Ratings List

  NEW RATING

  NEMAK S.A.B. DE C.V.

  Senior Unsecured    BB+
   Recovery Rating    3(55%)




=====================
P U E R T O   R I C O
=====================

GUI-MER-FE INC: Seeks to Employ Luis Cruz Lopez as Accountant
-------------------------------------------------------------
GUI-MER-FE, Inc. seeks approval from the U.S. Bankruptcy Court for
the District of Puerto Rico to hire Luis Cruz Lopez, a certified
public accountant practicing in Puerto Rico.

The Debtor requires an accountant to provide reorganization
advisory services and prepare reports, including monthly operating
reports, in order to offer adequate disclosures to its creditors to
obtain confirmation of a plan of reorganization.

Mr. Lopez will be paid at an hourly rate of $150.

The Debtor paid $4,500 as a retainer fee.

Mr. Lopez disclosed in a court filing that he is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.

The accountant can be reached at:

     Luis Cruz Lopez, C.P.A.
     172 La Corunia Street, Ciudad Jardon
     Caguas, PR 00727
     Tel: 787.703.2552
     Email: cpalcruz@gmail.com.

                             About GUI-MER-FE

San Juan, P.R.-based GUI-MER-FE, Inc. sought Chapter 11 protection
(Bankr. D. P.R. Case No. 21-01659) on May 27, 2021.  At the time of
the filing, the Debtor disclosed total assets of between $100,000
and $500,000 and total liabilities of between $1 million and $10
million.  Mercedes Garcia Reyes, president, signed the petition.

Lube & Soto Law Offices, PSC and Luis Cruz Lopez, CPA serve as the
Debtor's legal counsel and accountant, respectively.


HOGAR CARINO: Seeks to Employ Virgilio Vega as Accountant
---------------------------------------------------------
Hogar Carino, Inc. seeks approval from the U.S. Bankruptcy Court
for the District of Puerto Rico to hire Virgilio Vega III, a
certified public accountant practicing in Puerto Rico and Florida.

The Debtor requires an accountant for general accounting and
financial counseling services in connection with its Chapter 11
case. These services include a review of the monthly operating
reports, tax consulting and business consulting in the development
of new strategies.

Mr. Vega will be paid at an hourly rate of $200.

In court filings, Mr. Vega disclosed that he is a "disinterested
person" as the term is defined in Section 101(14) of the
Bankruptcy
Code.

Mr. Vega holds office at:

     Virgilio Vega III, CPA
     P.O. Box 19180
     San Juan, PR 00910
     Phone: 787-306-9199
     Email: virgiliocpa@gmail.com

                            About Hogar Carino

San Juan, P.R.-based Hogar Carino, Inc. filed its voluntary
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
D.P.R. Case No. 21-01181) on April 16, 2021. Elizabeth Noemi Padro
Rivera, vice president, signed the petition.  In the petition, the
Debtor disclosed total assets of $176,883 and total liabilities of
$1,568,780.

Judge Edward A. Godoy oversees the case.

The Debtor tapped The Law Offices of Luis D. Flores Gonzalez and
Virgilio Vega III, CPA as its legal counsel and accountant,
respectively.



                           *********


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
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Chapman, Editors.

Copyright 2021.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
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