/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/210629.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Tuesday, June 29, 2021, Vol. 22, No. 123 Headlines A N T I G U A A N D B A R B U D A LIAT: Antigua Prime Minister Hints at New Company A R G E N T I N A PAMPA ENERGIA: Fitch Raises LT IDRs to 'B-', Outlook Stable B E R M U D A ENSTAR GROUP: Fitch Affirms BB+ Rating on Preference Shares B R A Z I L BANCO DE BRASILIA: Moody's Assigns Ba3 Deposit Ratings D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Abinader Decrees Sweeping Spending Cuts [*] DOMINICAN REPUBLIC: Per Diem Return Saves 20%, Official Says M E X I C O BANCO INVEX: Fitch Withdraws 'BB+' Ratings P E R U PERU: IDB OKs $300MM to Boost Productivity, Innovation of SMEs P U E R T O R I C O ALEX AND ANI: U.S. Trustee Appoints Creditors' Committee T R I N I D A D A N D T O B A G O CL FIN'L: Sagicor Continues to Eye CLICO's Insurance Portfolio V I R G I N I S L A N D S LTS ENTERPRISES: Taps Hector Figueroa-Vincenty as Legal Counsel - - - - - ===================================== A N T I G U A A N D B A R B U D A ===================================== LIAT: Antigua Prime Minister Hints at New Company ------------------------------------------------- Trinidad Express reports that Antigua and Barbuda Prime Minister Gaston Browne has hinted at the possibility of a new company to administer the affairs of the cash-strapped regional airline, LIAT, even as he confirmed that talks were ongoing with two potential investors for the airline. LIAT's former major shareholders were the governments of Antigua and Barbuda, Barbados, Dominica and St Vincent and the Grenadines. In July last year, the Antigua and Barbuda government secured an order from the High Court here for the administration for LIAT, naming Cleveland Seaforth as the administrator of the company, according to Trinidad Express. Earlier this year, Seaforth in a letter to regional leaders, said that EC$79 million (One EC dollar = US$0.37 cents) in severance is owed to the 564 workers already dismissed by the airline, the report notes. Seaforth said apart from any possible severance that may come from the LIAT estate, the Antigua and Barbuda government had indicated it is prepared to offer the staff up to a maximum of 50 per cent of their severance either by cash, land or government bonds or a combination of the three, the report relays. Speaking on his radio program over the weekend, Browne said the offer to LIAT workers here is still on the table even as it awaits an official response from the Antigua and Barbuda Workers Union (ABWU), the report discloses. "It is for them to accept the proposal that the government of Antigua and Barbuda extended to them to come up to 50 per cent of their liabilities, primarily their severance liabilities, the report relates. "We still have at least two entities that are negotiating with the administrator to become shareholders within the LIAT company. It may have to be a new company because when you look at what is happening presently, the threats that are made, the demands that are made by past staff, members of staff and the union, I am not even sure now that LIAT 1974 Limited will be viable so there may have to be a LIAT 2020 . . . recapitalised and start as a new entity," Browne told radio listeners . . . He said he is hopeful that the two viable investors with whom the administrator is having discussions "will come in and bring some capital to the table," the report notes. Last month, the ABWU denied reports that it had rejected an offer made by the government to provide a compassionate payment to the former employees, the report says. ABWU general secretary David Massiah said the union is still awaiting a response to a May 19 letter sent to the court-appointed administrator on the payment to the former workers, the report relays. "We think that the offer is something that we would have to base on what we hear. Most of us whilst we are not happy that that is what it is, 50 per cent is better than nothing. So we never discarded it, the report notes. "I mean there are a number of things that we still think need to be answered. It can't just be carte blanche. We said 50 per cent of total earnings of all their entitlements, and they never came back to us," Massiah said on a radio program in June, the report discloses. Prior to its collapse, LIAT, which at the time owed creditors an estimated EC$100 million, flew to 21 destinations, operating an average of 112 daily flights within a complex network combining profitable and uneconomic routes, the report says. The Antigua-based regional airline was forced to suspend services due to the coronavirus (Covid-19) pandemic and has since announced the resumption of flights on a limited basis to seven destinations across its network, the report adds. About LIAT LIAT Ltd., formerly known as Leeward Islands Air Transport or LIAT, is an airline headquartered on the grounds of V. C. Bird International Airport in Antigua. It operates high-frequency inter-island scheduled services serving 15 destinations in the Caribbean. The airline's main base is VC Bird International Airport, Antigua and Barbuda, with bases at Grantley Adams International Airport, Barbados and Piarco International Airport, Trinidad and Tobago. The airline is owned by seven Caribbean governments, with three being the major shareholders: Barbados, Antigua & Barbuda and St. Vincent and the Grenadines along with Dominica(94.7 %); other Caribbean governments, private shareholders and employees (5.3%). In the last few years, LIAT has been challenged with financial difficulties, often needing additional funding as the airline dealt with the high cost of operations. In November 2016, the Barbados government defended LIAT's operations, even as opposition legislators called for a cessation of the business. In early 2015, LIAT offered early retirement packages to employees in efforts to downsize. In 2014, LIAT knew it had to deal with unprofitable routes to make operations viable. In the third quarter of 2013, the airline's top management was shaken, with news Chief Executive Officer Captain Ian Brunton's sudden resignation. LIAT's current chief executive officer is Julie Reifer-Jones, chairman is Jean Holder, and chief financial officer is Rojer Inglis. Dr. Ralph Gonsalves, prime minister of St. Vincent & the Grenadines, serves as chairman of LIAT shareholders. ================= A R G E N T I N A ================= PAMPA ENERGIA: Fitch Raises LT IDRs to 'B-', Outlook Stable ----------------------------------------------------------- Fitch Ratings has upgraded Pampa Energia S.A.'s Long-Term (LT) Foreign Currency (FC) and Local Currency (LC) Issuer Default Ratings (IDR) to 'B-' from 'CCC'. Fitch has also upgraded Pampa's senior unsecured notes to 'B-'/'RR4' from 'CCC'/'RR4'. The Rating Outlook is Stable for both FC and LC IDRs. The rating upgrades reflects Pampa's resiliency during a challenging macroeconomic and uncertain regulatory environment since 2018 coupled with it de-risking its consolidated business by selling its majority stake in electricity distribution company, Edenor. Since 2018, Pampa has managed to de-lever from 2.3x in 2018 to 2.0x expected in 2021 and strengthened overall liquidity, despite restrictive capital controls and material payment delays from CAMMESA. Further, the company has completed all generation expansion projects) without delay, and does not face any material debt maturities until 2023, when Fitch estimates the company's net debt to EBITDA will be less than 1.5x. KEY RATING DRIVERS Strong Operator, Weak Operating Environment: Pampa Energia is an integrated energy company in Argentina with a significant market share in each of its business segments: upstream, power generation, petrochemical, and equity participation in gas transportation. Pampa is a strong operator and contributor in each of its business segments and has been a leader, providing stable and predictable services in Argentina during a difficult economic and operating environment, recently accelerated by coronavirus. Pampa operates exclusively in Argentina and has maintained a conservative leverage profile and strong liquidity despite a difficult macroeconomic environment. Strong Capital Structure Projected: Fitch's base case forecasts that total debt to EBITDA in USD terms will be 1.9x in 2021, compared to 2.2x in 2020, which is consistent with a higher rating category. Fitch estimates total debt to EBITDA will average 2.0x from 2022-2024, which is consistent with a higher rating category, and net debt to EBITDA is expected to be 1.2x in 2021 and in the range of 1.0x-1.5x from 2021-2024. Moreover, Pampa does not face any major maturities until 2023 of $450 million, which it is expected to be able to refinance even when assuming the current capital controls rules will remain in place through 2023. Predictable Cash Flow Profile: Pampa has a predictable cash flow profile due a majority of its EBITDA coming from USD denominated contracts with government related entities. Pampa's two main business segments (upstream and power generation) comprised of nearly 80% of total EBITDA in 2020, with generation representing 67% of total consolidated EBITDA. Pampa's generation business is fully contracted under various payment schemes with CAMMESA, which is subsidized by the federal government and with some private power purchase agreements (PPAs). CAMMESA has a history of payment delays but has paid on average every 75 days, above the contractual requirement of 42 days. Despite the payment delays, Pampa's working capital needs have not been impacted, in fact the company has been able to strengthen overall liquidity during this time period. Capital Controls Weakens Financial Flexibility: Pampa has maintained a strong liquidity profile despite the capital controls. As of 1Q21, Pampa reported $409 million of cash and cash equivalents on a consolidated basis covering nearly three years of interest expense. Although the Argentine capital control measures that require entities with assets abroad to first use those resources to service international obligations before turning to Argentina's official currency markets poses significant risks to corporates in Argentina including Pampa, as they will have more of their cash flow deposited in Argentina rather than abroad. Nevertheless, Pampa does not face any material maturities until 2023, and the company has prudent financial policies in place to mitigate this risk. Uncertain Regulatory Environment: Argentina's electricity regulatory framework continues to be highly uncertain. The system is not self-sufficient and relies heavily on government subsidies. This is not expected to change in the short to medium term, and the problem is further exacerbated by the government's inability to afford the subsidies, which has been funded through monetary expansion. Therefore, additional regulatory amendments expected will be aimed at lowering the overall cost of the system, negatively impacting generation companies that historically bear the brunt of the amendments. On a consolidated basis, Pampa's generation is vulnerable to further changes in regulatory schemes, such as amendments in PPAs awarded to expand into combined cycle thermal power plants. Small Production Profile and Adequate Hydrocarbon Reserve Life: Pampa has a small but stable production profile compared with its international peers, but has a strong 1P reserve life of approximately 8.5 years. Pampa's production size of below 75,000 boed and 1P reserve life below 10 years are consistent with a 'B' category. Fitch expects the company will continue to focus on unconventional gas production in the Neuquén basin and maintain its average production of 45,000 boed, with nearly all of it attributed to gas production. Fitch estimates Pampa's 2020 half-cycle cost of production was $4.24/MMBtu in 2020 and full-cycle was $5.66/MMBtu, which are below its average blended realized price of $6.80/MMBtu. Sale of Edenor: The announced sale of its 51% stake in Edenor, which has received regulatory approval and is expected to close in 2021, bodes well for the credit profile of the company. On a consolidated basis, Fitch estimates Edenor's EBITDA was $52 million in 2020, after shrinking by nearly 70% in compared to 2019. Further, the sale of the distribution business de-risks Pampa's business from further government intervention and free up cash budgeted for capex for other general corporate purposes. DERIVATION SUMMARY Pampa Energia S.A.'s FC IDR is integrated energy company in Argentina, and its ratings constrained by Argentina's Country Ceiling. Nevertheless, its generation business compares best to AES Argentina Generacion S.A. (CCC), Genneia S.A. (CCC), Albanesi (CCC), and MSU Energy, and its gas production business compares best to Compania General de Combustibles S.A., (CGC; CCC), Tecpetrol (BB/Stable) and Canacol Energy (BB-/Stable). As an integrated energy company its best peer is Capex S.A. (CCC+). Pampa is a leading power company in Argentina and compares best to AES Argentina, Genneia, Albanesi, and MSU Energy. Pampa had the country's largest market share by installed capacity in 2021 with 5.0 gigawatts (GW), or 12%, followed by Central Puerto S.A. (not rated) at 10% and AES Argentina at 10%. In addition, Pampa is a leading developer in the sector and has added 1.2GW of new installed capacity since 2018, and is expected to add another 295MW by 2022. Pampa will have the lowest gross leverage ratios amongst GenCos, defined as total debt/EBITDA, in the country, averaging 2.0x over the rating horizon compared with AES Argentina's 2.3x, Genneia's 2.6x, Albanesi at 3.5x and MSU Energy 3.6x. Pampa's upstream segment compares favorably with other gas concentrated production companies. These peers include Canacol (BB-/Positive), Compania General de Combustibles (CCC), and Tecpetrol Internacional (BB/Stable). Pampa's expected production will average 45,000boed in 2021-2024, which is higher than Canacol's at 30,000boed and CGC at 34,000boed, but below Tecpetrol at 147,000boed. Pampa's PDP and 1P Reserve life in 2020 was 4.2 years and 8.5 years is aligned to Canacol at 5.7 years and 6.3 years, higher than CGC at 2.0 years and 4.6 years, and lower than Tecpetrol at 5.0 years and 14 years respectively. Pampa's estimated half-cycle cost in 2020 was $4.2MMBtu and full-cycle at $5.5MMBtu in line with Argentine producer CGC at $4.5MMBtu and $5.4MMBtu, both costs of production are associated to having a higher cost of capital, due to their operating environment. Canacol's half-cycle cost of production was $1.9MMBtu and full-cycle at $4.5MMBtu, and Tecpetrol was $1.7MMBtu and $3.8MMBtu, which is the lowest in the region. KEY ASSUMPTIONS Upstream: -- Daily oil production average of 4,200bbld between 2021-2024; -- Daily gas production average of 46,000boed between 2021-2024; -- Average realized natural gas price of USD3.6mmBTU flat over the rated horizon under PG4; -- Average realized Brent price of $63bbl in 2021, $55bbl in 2022, and $53bbl long term. Generation Segment: -- Installed capacity year-end is 4,969MW in 2021 and then 5,249MW in 2022 and flat thereafter; -- Average monomic price of $38MWh between 2021 and $40MWh average from 2022-2024; -- Load factor across entire portfolio average of 32% in 2021 and 34% thereafter; -- CAMMESA payments made within 80 days. Financial: -- Fitch Average and EOP ARS/USD exchange rates; -- Consolidated capex of $900 million between 2021 through 2024, and an average annual capex of $225 million; -- No dividends; -- Proceeds from Edenor sale of $50 million received in 2021 and $45 million in 2022; -- No tax expenses in 2021-2022 followed by an effective tax rate of 35% per annum; -- Interest cost are 10% of total debt outstanding. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: FC IDR: -- An upgrade in Argentina's country ceiling. LC IDR: -- Given the company's high dependence on subsidies by CAMMESA, any further regulatory developments leading to a more independent market that is less reliant on support from the Argentine government could positively affect its collections and cash flow; -- Contracted exports with high quality off-takers with a long term tenure with adequate legal protections to avoid interference from the federal government; -- Loosening of central bank capital controls rules allowing the company to strengthen its hard-currency cash balance; -- Maintaining a gross leverage, total debt to EBITDA profile of 2.0x or less. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- A downgrade of Argentina's country-ceiling ratings; -- Amendments to capital control rules which weakens the company's ability to access its capital and refinance debt; -- Significant delays in payments that negatively affect working capital, liquidity and leverage; -- Revision of existing contracts (PG4 and PPA) with CAMMESA; -- Significant deterioration of credit metrics of total/EBITDA of 4.5x or more. 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 Adequate Liquidity: Pampa reported consolidated cash position of $409 million in 1Q21. Fitch estimates cash and cash equivalents can cover nearly three years of interest expense. The capital controls have shifted its cash position from being abroad to being entirely in Argentina. The company's debt and interest expenses are predominately in USD, and Fitch expects the company will maintain a balanced cash position between USD and Argentine pesos. ISSUER PROFILE Pampa is the largest independent energy integrated company in Argentina. As of 2021, Pampa and subsidiaries were engaged in generation, distribution and transmission of electricity in Argentina, and oil and gas exploration and production, refining, petrochemicals and hydrocarbon commercialization and transportation in Argentina. 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 E R M U D A ============= ENSTAR GROUP: Fitch Affirms BB+ Rating on Preference Shares ----------------------------------------------------------- Fitch Ratings has affirmed Enstar Group Limited's Long-Term Issuer Default Rating (IDR) at 'BBB', senior unsecured notes at 'BBB-' and preference shares at 'BB+'. The Rating Outlook has been revised to Positive from Stable. KEY RATING DRIVERS The Outlook revision to Positive reflects the company's very strong and growing capitalization with continued reasonable financial leverage. Fitch's rating affirmation also reflects Enstar's solid business franchise acquiring and managing non-life runoff companies and strong non-life runoff business profitability derived from consistent favorable reserve development. Offsets to these positives include the company's risk profile, which is potentially subject to change based on future acquisitions and capital needs, considerable exposure to long-tailed reserves and reduced fixed-charge coverage. Fitch expects that the ratings could be upgraded if the company improves its fixed-charge coverage to a level near 6.0x in 2021, while continuing to meet its capitalization and leverage upgrade rating sensitivities; otherwise the Outlook could return to Stable. Fitch views Enstar's overall business profile as moderate compared with other non-life (re)insurance organizations, maintaining a leading position in its core non-life runoff (re)insurance operations, with a very experienced, disciplined and highly knowledgeable management team. Enstar has been successful with its runoff acquisition strategy, generating favorable returns and significant growth in book value per share. Enstar recently exited the controlling positions in its active underwriting platforms of StarStone Insurance Bermuda Limited and Atrium Underwriting Group Limited. As such, these businesses are no longer consolidated into Enstar's financial results. Fitch viewed the company's active underwriting as more opportunistic with a less favorable overall business profile and not as a core business. Thus, Enstar's overall earnings could improve with the removal of the volatile active underwriting operations. A key driver of Enstar's positive performance is its ability to ultimately settle reserves below acquired fair value through both effective claims management and commutations. Over the most recent five-year period (2016-2020), Enstar reduced its estimates of net ultimate prior-period losses/LAE in its non-life runoff business by $1.5 billion (excluding amortization and fair value amounts that are generally offset in investment results), averaging 10% and 7% of beginning of year shareholders' equity and net non-life loss/LAE reserves, respectively. These reductions are related to various longer-tail lines, including workers' compensation, general casualty, asbestos and other liabilities. Enstar's earnings have been very strong recently, including $1.7 billion of net income in 2020 and $0.9 billion in 2019, with both results driven by net unrealized investment gains that flow directly into net income. In 2020, the company reported a $1.2 billion unrealized gain in a hedge fund managed by an affiliate of Hillhouse Capital Management, Ltd. (Enstar's largest shareholder), driven by strong equity market performance. Enstar's most recent five-year average (2016-2020) ROE was 14.3%, with the company reporting a 1Q21 ROE of 11.8%. Enstar's financial leverage ratio (FLR) was modest at 16.7% as of March 31, 2021, in line with 17.2% at Dec. 31, 2020. Enstar scored 'Extremely Strong' on Fitch's Prism factor-based capital model at YE 2020, which is consistent with prior years. Enstar utilizes a reasonable amount of operating leverage, with net leverage and gross leverage ratios of 1.6x and 2.0x, respectively, at Dec. 31, 2020. These levels are down from 2.2x and 2.6x, respectively, in 2019, as the very favorable net earnings drove a shareholders' equity increase of 38% in 2020, well ahead of growth in Enstar's gross and net loss/LAE reserves. Enstar's fixed-charge coverage ratio averaged a strong 6.0x from 2016 to 2020. However, fixed-charge coverage was a lower 3.2x in 2020 and 1.1x in 2019, driven by StarStone underwriting losses. Fixed-charge coverage improved to 6.7x in 1Q21, following the majority sale of StarStone in 2020. Fitch expects fixed-charge coverage of 6x-7x in the near term. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- Maintaining an FLR at or below 25%; fixed-charge coverage of at least 8.0x; risk-adjusted capital growth with a capitalization score under Fitch's Prism factor-based model of at least 'Very Strong'; a net leverage ratio at or below 2.5x; -- Any potential future upgrade would likely be limited to one notch, however, due to the nature of the company's business model in acquiring large blocks of runoff business that can materially alter the company's balance sheet. While this risk has been managed well to date, it adds potential capital, earnings and business/exposure mix variability at levels greater than experienced by most insurance companies operating under more traditional business models. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- An Outlook revision to Stable could occur if fixed-charge coverage does not improve to at least near 6x in 2021; or if Enstar is no longer meeting the other positive rating sensitivities. -- Failure to generate continued material levels of favorable non-life runoff reserve development; additional capital needs to support the current runoff business; significant new transaction(s) that Fitch views as materially increasing the overall risk profile; net leverage ratio above 3.5x; FLR approaching 30%; fixed-charge coverage below 5.0x; -- Enstar's hybrid securities ratings could also be lowered by one notch to reflect higher nonperformance risk should Fitch views Bermuda's regulatory environment as becoming more restrictive in its supervision of (re)insurers with respect to hybrid features. 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. 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 =========== BANCO DE BRASILIA: Moody's Assigns Ba3 Deposit Ratings ------------------------------------------------------ Moody's Investors Service has assigned BRB-Banco de Brasilia S.A. (BRB) long- and short-term local and foreign currency deposit ratings of Ba3/Not Prime, together with a standalone baseline credit assessment of ba3. The outlook on the ratings is stable. RATINGS RATIONALE BRB's ba3 BCA underpins the risks associated with the robust loan growth reported by the bank in the past five quarters, combined with ongoing improvement in corporate governance practices that has helped to mitigate political risks from its local bank status, owned by the government of the Federal District (Distrito Federal, DF). The BCA also incorporates the bank's entrenched business franchise and distribution footprint in the DF region, as well as its client base comprised mostly of public sector employees. The ba3 BCA also acknowledges BRB's track record of superior asset quality and good profitability metrics, featuring a predominance of low-risk loans and access to low-cost retail deposits. BRB has a granular loan book that comprises mostly of operations in the retail segment, with payroll loans accounting for 49% of total loans and mortgage financing for another 17% as of March 2021. Loans to companies, which are mainly secured loans to small- and midsize firms, represented just 11% of total loans in Q1 2021. The bank's loan book has low borrower concentration relative to capital, with the 60 largest creditors accounting for 63% of tangible common equity (TCE) in March 2021. Problem loans stood below 1% total loans over the past four years, while loan loss reserves accounted for 510% of problem loans in March 2021, showing a strong buffer against potential credit losses. BRB's asset risk is heightened partially by the strong growth of some asset classes, particularly mortgage financing, up 143.5% annually in March 2021, loans to companies, up 139.4%, and payroll loans, 26.2% higher in the same period. In addition, BRB has continued to support borrowers in the DF region because of the Covid-19 pandemic, with loan payment holidays that accounted for 7.5% of gross loans in March 2021. While loan delinquencies will likely increase in the next 12 to 18 months as BRB's loan deferral program comes to an end, the high portion of portfolio collateralization will help to mitigate future credit losses. BRB's profitability compares well to that of similarly rated peers, with a net income to tangible assets ratio of 1.3% in March 2021. However, the ratio declined from 1.78% one year prior because of credit costs that will likely remain high due to the bank's fast growth strategy. Despite that, the bank's net interest margin was 9.8%, reflecting steady core earnings generation from its lending operation. Intense competition within the bank's niche market and above-trend credit costs will likely weigh on profits in the next two to three quarters. BRB's capitalization, measured as TCE to risk weighted assets, declined to 8.95% in March 2021, from 9.39% in the previous years, reflecting strong loan origination. Despite that, BRB's capital base still presents adequate buffer over minimum regulatory thresholds. BRB has a steady and loyal funding base, which reflects its role as payment agent for the government of the DF, including the salaries of its public employees. In March 2021, stable low-cost demand and savings deposits represented about 16% of the bank's total funding. The small reliance on market funding, at 15.4% of tangible banking assets (TBA), is a credit strength to BRB's financial profile because it reduces exposure to funding rollover risk. BRB's liquid assets represented 32.4% of TBA in first-quarter 2021, still benefiting from measures the government launched in 2020 during the pandemic. However, Moody's expect liquidity to decline to a 20%-25% range in the next 12 months as the bank maintains its loan growth. The stable outlook incorporates Moody's expectation that BRB's financial profile will remain consistent over the next 12-18 months. The bank's Ba3 global deposit ratings reflect its fundamental credit strength, as evidenced by its ba3 BCA, and incorporates Moody's assessment of low systemic support in view of BRB's small market share for loans and deposits in the country. The rating assignment for BRB also incorporates the bank's governance as part of Moody's environmental, social and governance (ESG) considerations. Moody's expects BRB to maintain good corporate governance, deriving from improvements to governance practices implemented in the past five years that helps to mitigate risks of political interference in the bank's operation. They include the strengthening of risk and operating committees and the adoption of an integrity program to enhance internal procedures. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS BRB's standalone BCA could face upward pressure if the bank reports consistent improvement in its capital position, backed by consistently superior asset quality metrics that remain in line with good levels observed recently. The BCA would also benefit from the bank reporting consistent and strong profitability ratios over the next outlook horizon. BRB's standalone BCA could be lowered if asset quality weakens as the bank continues to grow its loan portfolio intensively and also into the riskier SME segment. The BCA could also be affected negatively by a deterioration in profitability as a result of higher provisioning needs as new loans season over the next outlook horizon. A decline in capitalization could also drive ratings down. METHODOLOGY USED The principal methodology used in these ratings was Banks Methodology published in March 2021. BRB is headquartered in Brasilia, Brazil, and reported BRL28.2 billion in total assets and BRL2.1 billion in shareholders' equity as of March 31, 2021. LIST OF ASSIGNED RATINGS AND ASSESSMENTS The following ratings and assessments were assigned to BRB-Banco de Brasilia S.A.: Long-term global local currency deposit rating of Ba3, stable outlook Short-term global local currency deposit rating of Not Prime Long-term global foreign currency deposit rating of Ba3, stable outlook Short-term global foreign currency deposit rating of Not Prime Long-term Brazilian national scale deposit rating of A1.br Short-term Brazilian national scale deposit rating of BR-1 Long-term local currency counterparty risk rating of Ba2 Short-term local currency counterparty risk rating of Not Prime Long-term foreign currency counterparty risk rating of Ba2 Short-term foreign currency counterparty risk rating of Not Prime Long-term Brazilian national scale counterparty risk rating of Aa2.br Short-term Brazilian national scale counterparty risk rating of BR-1 Baseline credit assessment of ba3 Adjusted baseline credit assessment of ba3 Long-term counterparty risk assessment of Ba2(cr) Short-term counterparty risk assessment of Not Prime(cr) Outlook Actions: Outlook, assigned Stable =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Abinader Decrees Sweeping Spending Cuts ----------------------------------------------------------- Dominican Today reports that Dominican Republic President Luis Abinader established by decree 396-21, the austerity plan and rationing of public spending, to continue facing the severe impact that the pandemic has had on the economy. The presidential provision establishes considerable reductions in expenses related to trips abroad, the purchase of luxury vehicles, high-cost renovations, entertainments and celebrations, the document said, according to Dominican Today. The provision also covers donations, gifts, use of private facilities to carry out activities, and even the use of police or military personnel assigned to public officials, with very few exceptions established in the decree, 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). [*] DOMINICAN REPUBLIC: Per Diem Return Saves 20%, Official Says ---------------------------------------------------------------- The Dominican Today reports that Presidency Administrative Minister, Jose Ignacio Paliza, said that about 20% of savings have already been generated in trips abroad by public officials with the implementation of the system of refund of per diem. Paliza argued that when a public official returns from abroad they have to liquidate the funds and deposit the remainder in the Treasury account. "We had already filed some mechanisms for the refund of travel expenses a few weeks ago and this reinforces it. It has already generated about 20% savings in trips abroad for public officials, because now a public official, unlike in the past, when I give him a thousand dollars to pay for his hotel, food and his expenses when he travels abroad in an official trip." "Now if you had 200 left over, you have to return them, because you have to pay those funds upon arrival in the country and deposit the surpluses in the Single Treasury account " 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). =========== M E X I C O =========== BANCO INVEX: Fitch Withdraws 'BB+' Ratings ------------------------------------------ Fitch Ratings has withdrawn the 'BB+' Long-Term and 'AA(mex)' National Long-Term senior unsecured ratings for Banco Invex, S.A. Fideicomiso F/2157 (Fibra MTY's) Certificados Bursatiles Fiduciarios (CBFs) issuance with ticker symbol FMTY 21D, since it was not issued in the market. The 'BB+' Long-term rating and 'AA(mex)' National Long-Term rating for Fibra MTY's issuance with ticker FMTY 20D remain unchanged after the proposed first issuance of additional CBFs for up to USD115 million. The total amount outstanding of FMTY 20D will be USD215million upon the completion of the proposed reopening. The proceeds of the additional CBFs will be used to amortize existing debt and other general corporate purposes. Fibra MTY's ratings are based on the company's good asset quality, and strong financial profile characterized by high EBITDA margins, expected medium-term net leverage ratios, measured as net debt/EBITDA, of 4.5x and adequate liquidity. The ratings are limited by revenue concentration by property, tenant and region. Fibra MTY's growth strategy is aimed at segments and regions with favorable prospects on profitability, which will allow for the dilution of concentrations in the medium to long term. Fitch Ratings has withdrawn the Long-Term 'BB+' and National Long-Term 'AA(mex) ratings of the CBFs issuance with ticker symbol FMTY 21D since it was not issued in the market. The purpose of the reopening of the FMTY 20D issuance is to fund the resources originally contemplated by the FMTY 21D issuance. KEY RATING DRIVERS Good Portfolio Quality: Fibra MTY's rent price per square meter (sqm) compares favorably with average local market prices. The tenant base is comprised mainly of institutional companies with long-term lease contracts and are the result of good asset quality. The company owned and operated 59 properties, as of March 31, 2021, equivalent to 713,925sqm of gross leasable area (GLA). Fibra MTY's properties are located in Mexican states with positive growth prospects and economic activity rates above the national average. Low Risk Rental Income: High asset quality, good property location and long-term relationships with tenants allow Fibra MTY to maintain high occupancy rates. Fibra MTY's management implemented tenant support measures during 2020, which included agreements to apply tenants' rent deposits toward rent payment, with the tenants' commitment to replenish these deposits in the following 12-24 months, and deferrals in rent payments, which will be recovered during 2021. With this, the total portfolio occupancy rate in terms of GLA was 92.6% as of March 31, 2021. Occupancy rates are estimated to improve toward 95% assuming a recovery in the office segment. Fibra MTY's lease contracts, with an average remaining life of 4.8 years, provide predictability in the company's future revenue. The lease expiration schedule was laddered as of March 31, 2021. In terms of revenue 18.4% of lease income had contracts expiring in 2021, 11.5% in 2022, 4.5% in 2023, 4.5% in 2024 1.1% in 2025 and 59.6% thereafter. Rental Income with Low Diversification: Fibra MTY presents concentration by property, tenant and region mitigated, in part, by good tenant quality and corporate guarantees that back lease contracts. The top 10 tenants generated approximately 51.2% of rental income as of March 31, 2021, which is considered a high concentration. The most relevant tenant, Industrias Acros Whirlpool S.A. de C.V., accounted for approximately 21.1% of rental income, while none of the other tenants accounted for more than 4.5% of rental income. Fibra MTY maintains a diversified portfolio of tenants by industry, which is positive for the rating. The contribution from manufacturing and distribution of consumer durable goods, capital goods and the automotive sector accounted for 57.3% of revenue. The company has geographic concentration in the state of Nuevo Leon, which generates 63.1% of revenue. Fitch's analysis considers the historical growth in GDP for the states where Fibra MTY has a presence relative to the national average. It is estimated that the revenue concentration will decline as the company deploys its growth strategy in the next 12 to 24 months, which is focused on states with growth potential in the manufacturing sector in both the North and Bajio regions. Positive Momentum in Profitability: Fibra MTY's incorporation of new properties to its initial portfolio has been efficient. An increased asset base, coupled with a fixed-cost structure, have allowed the fibra to strengthen EBITDA margins. Management and advisory activities are carried out internally, which allow it to maintain a mainly fixed-cost structure, and generate efficiencies and economies of scale. The EBITDA margin for the LTM ending March 31, 2021 was 79.2%, as calculated by Fitch. It is estimated the EBITDA margin will strengthen toward 81% in the future. Adequate Leverage: Fibra MTY's leverage, measured as net debt/EBITDA, as calculated by Fitch, will be 4.5x in the medium term, while executing its growth strategy. The rating contemplates growth will be financed with a combination of debt and equity, which will result in an indicator of net debt/property value or a loan-to-value (LTV) equal to or less than 35%. For the LTM ended March 31, 2021, the net leverage ratio was 1.8x, while the net LTV was 14.2%. The fibra has a natural hedge from exchange rate volatility, all of its debt is U.S. dollar denominated, while 74.5% of revenue is generated in this currency. DERIVATION SUMMARY Fibra MTY's good asset quality and successful integration of past acquisitions to its portfolio allowed it to achieve a long-term, solid operating performance and reduce, to some extent, rental income risk. However, the scale of its portfolio and its low tenant and property granularity limit the ratings due to a higher concentration of income per property and tenant, and lower geographic diversification. Fibra MTY's weaker business profile relative to regional real estate peers in the low range of the 'BBB' rating category is partially mitigated by a strong financial profile. Fibra MTY's EBITDA margin is higher than Fideicomiso Fibra Uno's (BBB/Negative). Fibra Uno's profitability is estimated at around 74%. Fitch views Fibra MTY's financial structure as credit positive and believes it is well positioned relative to peers. Fibra MTY's net leverage is estimated to be 4.5x in the medium term, while Fitch's expects CIBANCO, S.A. Institucion de Banca Multiple, F/00939's (Fibra Terrafina; BBB-/Stable) net leverage to be around 5.5x. Fibra Terrafina's rating incorporates it will maintain solid liquidity levels, strengthened by access to committed credit lines. With respect to Fibra MTY's NLTR rating peers, its portfolio is comparable in terms of scale to Fideicomiso 2870 Fibra Nova (Fibra Nova; AA-[mex]/Stable), which manages a portfolio with 99 properties in the industrial, commercial and office segment equivalent to a total of 350,210sqm of GLA and Banamex Fibra Danhos, Fideicomiso 17416-3 (Fibra Danhos; AAA[mex]/Stable), which operates 14 properties and 891,700sqm of GLA. Fibra Nova's portfolio shows some concentration by tenant when tenants are grouped by affiliated companies. The largest group represents around 40% of annual revenue. Fibra Danhos' portfolios exhibit higher levels of income concentration per property as they have a lower number of properties than Fibra MTY. In terms of tenant profile, Fibra Danhos is diversified in the commercial, office and lodging segments. Fibra MTY's and Fibra Nova's industrial portfolio is considered positive for the ratings as industrial contracts allow greater cash flow predictability due to longer term lease-contracts. Fibra MTY's EBITDA margin is estimated to remain close to 81% in the following years. Fitch's base case projections estimate Fibra Danhos' and Fibra Nova's profitability to be around 64.0% and 90.7%, respectively. Fibra MTY's and Fibra Nova's net leverage is expected to be 4.5x in the medium term, while Fibra Danhos' gross leverage, measured as total debt/EBITDA, is estimated to remain below 2.0x in the mid-to-long term. KEY ASSUMPTIONS Fitch's key assumptions within the rating case for the issuer include: -- Rent prices per sqm increase in line with inflation; -- Portfolio occupancy rates continue at around 95%; -- EBITDA margin strengthens to around 81%; -- Acquisitions financed with a mix of debt and equity; -- Issuance of CBF for USD115 million and prepayment of the USD108.4million syndicated loan; -- Net leverage between 4.0x and 5.0x; -- LTV tends to be below 35%. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- Successful execution of the acquisition plan during the rating horizon, increasing the scale of the portfolio and reducing the concentration of income and NOI per tenant and property; -- EBITDA margin consistently higher than 80%; -- Maintaining a net leverage metric below 4.0x on a sustained basis, throughout investment periods; -- Significant reduction in the proportion of encumbered assets. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- Increase in the concentration of income per tenant and/or property; -- Deterioration in profitability that results in an EBITDA margin below 70% on a sustained basis; -- Increase of net leverage in ranges above 5.0x on a sustained basis, as a result of a deterioration in profitability and/or acquisitions financed mainly with debt; -- Dividend payments consistently higher than 100% of FFO, resulting in a weaker capital structure; -- Weakening liquidity profile; -- Operating EBITDA coverage to interest paid of 2.5x or less; -- Ratio of unencumbered assets/unsecured debt equal to or less than 2.0x. 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 Ample Liquidity: Fitch's projections incorporate the forecast cash balance of around MXN400 million. Fibra MTY's liquidity is supported by the availability of committed credit lines made up of undisposed revolving credit facilities for MXN1.04 billion and USD30 million. The proceeds from the proposed issuance of additional CBFs will be used to amortize current secured debt for USD108.4 million. Upon the refinancing, Fibra MTY will extend its average debt maturity to 6 years from 5.3 years as of YE 2020 and will not face material debt payments until October 2027. The prepayment of the syndicated loan would free up encumbered assets. On a pro forma basis, Fitch estimates that 68% of the properties will be unencumbered at YE 2021. The unencumbered asset pool could provide additional financial flexibility to the company in an environment of low economic activity and limited access to different sources of funding. The estimated coverage of unencumbered assets/net unsecured debt remains at around 3.0x in the mid-term. ISSUER PROFILE Fibra MTY is dedicated to the acquisition, administration, and operation of real estate. As of March 31, 2021, it managed 59 properties, equivalent to 713,900 sqm of GLA located mainly in Northern Mexico. The office segment comprised 23.0% of the GLA, while industrial made up 74.3% and commercial 2.7%. 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. ======= P E R U ======= PERU: IDB OKs $300MM to Boost Productivity, Innovation of SMEs -------------------------------------------------------------- The Inter-American Development Bank (IDB) has approved a $300 million conditional credit line for Peru to support investment in business innovation and help close the technology gap that holds micro, small and medium-sized enterprises (MSMEs) back. The first operation under the credit line, with $100 million from the IDB, will finance business-innovation projects selected through a competitive process and will offer financial guarantees to facilitate scaling-up of MSME-led innovation projects. It will also provide support to collaborative business-innovation projects aimed at tackling sectoral challenges that hamper the development of subnational value chains. This, in turn, will help generate technological solutions to public challenges in areas such as healthcare, clean production, and climate-change mitigation. The operation will help close the technology gap that MSMEs face developing a variety of services markets for digitalization and compliance assessment for businesses seeking to enter global value chains. It will also support the institutional strengthening of the Peruvian government to help it design and implement innovation policies. Additionally, the operation will strengthen incubation and acceleration services for new ventures and help expand the Network of Innovative Women Entrepreneurs by financing women-focused training, marketing and mentoring projects. The project is expected to promote an increase in innovation investment and labor productivity within the beneficiary businesses. The IDB's Vision 2025 strategy for accelerating recovery from COVID-19 and generating sustainable, inclusive growth identifies investment in small businesses and digitalization as core objectives. The IDB credit line financing is for a 14.5-year term, with a 6.5-year period of grace, and an interest rate based on LIBOR. The government of Peru will provide an additional $40 million in local counterpart funding. ===================== P U E R T O R I C O ===================== ALEX AND ANI: U.S. Trustee Appoints Creditors' Committee -------------------------------------------------------- The U.S. Trustee for Region 3 appointed an official committee to represent unsecured creditors in the Chapter 11 case of Alex and Ani, LLC. The committee members are: 1. Brookfield Properties Retail, Inc. Attn: Julie Minnick Bowden 350 N. Orleans St., Suite 300 Chicago, IL 60654 Phone: 312-960-2707 Fax: 312-442-6374 E-mail: Julie.Bowden@brookfieldpropertiesretail.com 2. Simon Property Group Attn: Ronald Tucker 225 W. Washington Street Indianapolis, IN 46204 Phone: 317-263-2346 E-mail: rtucker@simon.com 3. Ira Green, Inc. Attn: Michael McAllister 177 Georgia Avenue Providence, RI 02905 Phone: 401-680-7904 Fax: 401-467-5557 E-mail: mmcallister@iragreen.com 4. Logic Information Systems, Inc. Attn: Todd Ellingson 3800 American Blvd., W. Ste 1200 Bloomington, MN 55431 Phone: 651-470-9249 Fax: 651-800-4825 E-mail: tellingson@logicinfo.com 5. Quality Spraying Technologies, Inc. Attn: Christopher D'Angelo 175 Dupont Drive Providence, RI 02907 Phone: 401-692-1221 Fax: 401-490-9286 E-mail: chris@mcmtech.com Official creditors' committees serve as fiduciaries to the general population of creditors they represent. They may investigate the debtor's business and financial affairs. Committees have the right to employ legal counsel, accountants and financial advisors at a debtor's expense. About Alex and Ani Founded in 2004 by Carolyn Rafaelian, Alex and Ani, LLC -- http://www.alexandani.com/-- has become a premier jewelry brand, quickly gaining popularity because of the novel and customizable nature of its signature expandable wire bracelet. Alex and Ani has been headquartered in East Greenwich, R.I. since 2014. Since opening its first retail store in Newport, R.I. in 2009, Alex and Ani has expanded to over 100 retail store locations across the United States, Canada and Puerto Rico. Alex and Ani and its affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 21-10918) on June 9, 2021. At the time of the filing, the Debtor had between $100 million and $500 million in both assets and liabilities. Judge Craig T. Goldblatt oversees the case. The Debtor tapped Kirkland & Ellis LLP as bankruptcy counsel, Klehr Harrison Harvey Branzburg LLP as local counsel, and Portage Point Partners, LLC as financial advisor and investment banker. Kurtzman Carson Consultants LLC is the notice and claims agent. ===================================== T R I N I D A D A N D T O B A G O ===================================== CL FIN'L: Sagicor Continues to Eye CLICO's Insurance Portfolio -------------------------------------------------------------- RJR News reports that Sagicor Group Jamaica's parent company Sagicor Financial says it remains interested in acquiring the insurance portfolio of Trinidadian conglomerate CLICO. The entities signed a sale and purchase agreement on September 30, 2019, according to RJR News. In an interview with the Trinidad Express newspaper, group chief financial officer of Sagicor Financial, Andre Mousseau, said the company is committed to the CLICO transaction, the report relays. However, he said the company would not comment on matters in the courts. Sagicor Life Incorporated was selected by Trinidad's Central Bank as the preferred bidder for CLICO's portfolio, the report says. However, the process for transferring the portfolio to Sagicor was stopped by an injunction filed by Trinidadian company Maritime Life Caribbean, which was not chosen as the preferred bidder, the report adds. About CL Financial/CLICO CL Financial was one of the largest privately held conglomerate in Trinidad and Tobago. It was originally founded as an insurance company and has since expanded to be the holding company for a diverse group of companies and subsidiaries. CL Financial is the parent company of Colonial Life Insurance Company (Trinidad) Limited (Clico). CLICO is now the Company's insurance division. CL Financial however experienced a liquidity crisis in 2009 that resulted in a "bail out" agreement by which the government of Trinidad and Tobago loaned the company funds ($7.3 billion as of December 2010) to maintain its ability to operate, and obtained a majority of seats on the company's board of directors. The companies to be bailed out were: CL Financial Ltd (CLF); Colonial Life Insurance Company Ltd (CLICO); Caribbean Money Market Brokers Ltd (CMMB); Clico Investment Bank (CIB) and British American Insurance Company (Trinidad) Ltd (BAICO). As reported in the Troubled Company Reporter-Latin America in July 2017, CL Financial Limited shareholders vowed to pay back a TT$15 billion (US$2.2 billion) debt to the Trinidad Government. =========================== V I R G I N I S L A N D S =========================== LTS ENTERPRISES: Taps Hector Figueroa-Vincenty as Legal Counsel --------------------------------------------------------------- LTS Enterprises, LLC seeks approval from the U.S. Bankruptcy Court for the District of Virgin Islands to employ Hector Hector Figueroa Vincenty, Esq., an attorney in San Juan, P.R., to handle its Chapter 11 case. The services to be provided by the attorney include: a. advising the Debtor with respect to its duties, powers and responsibilities in its bankruptcy case under the laws of the United States and Puerto Rico; b. advising the Debtor in connection with the determination of whether reorganization is feasible and, if not, assisting the Debtor in the orderly liquidation of its assets; c. negotiating with creditors in the preparation of a viable plan of reorganization or in the orderly liquidation of its assets; d. preparing legal papers, including a disclosure statement and a plan of reorganization; and e. other legal services. Mr. Vincenty will charge $200 per hour for his services. The attorney received a retainer fee in the amount of $5,000. Mr. Vincenty disclosed in a court filing that he is a "disinterested" person within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached through: Hector Figueroa-Vincenty, Esq. El Bufete Del Pueblo 310 Calle San Francisco San Juan, PR 00901 Tel: (787) 378-1154 Email: quiebras@elbufetedelpueblo.com About LTS Enterprises LTS Enterprises, LLC sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. V.I. Case No. 21-30002) on May 18, 2021, disclosing total assets of up to $50,000 and total liabilities of up to $1 million. Judge Mary F. Walrath presides over the case. Hector Figueroa-Vincenty, Esq., serves as the Debtor's legal counsel. ********* 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 * * *