/raid1/www/Hosts/bankrupt/TCRLA_Public/210701.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

          Thursday, July 1, 2021, Vol. 22, No. 125

                           Headlines



B R A Z I L

BRF SA: Moody's Affirms Ba2 CFR & Alters Outlook to Positive
GOL LINHAS: Expects Full Corporate Demand Rebound in Q1 2022
MARFRIG GLOBAL: Moody's Affirms Ba3 CFR & Alters Outlook to Pos.
SAMARCO MINERACAO: Plans to Raise $2 Billion in Restructuring


C H I L E

AUTOMOTORES GILDEMEISTER: Moody's Withdraws Caa3 CFR Amid Ch. 11
CORP GROUP: Seeks Bankruptcy in U.S. Due to Economic Slowdown


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Earmarks US$1-Bil.+ to Spur Construction


P E R U

UNION ANDINA DE CEMENTOS: S&P Alters Outlook on 'BB' ICR to Stable


P U E R T O   R I C O

CB REAL ESTATE: Taps Luis R. Carrasquillo as Financial Consultant
FIRST BANCORP: Fitch Hikes LongTerm IDR to 'BB', Outlook Stable


T R I N I D A D   A N D   T O B A G O

CARIBBEAN AIRLINES: Incurs TT$172.7 Million Losses in First Quarter
EASTERN CREDIT UNION: CariCRIS Cuts Currency Ratings to CariBB+

                           - - - - -


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B R A Z I L
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BRF SA: Moody's Affirms Ba2 CFR & Alters Outlook to Positive
------------------------------------------------------------
Moody's Investors Service affirmed BRF S.A.'s Ba2 corporate family
rating and its senior unsecured ratings. The outlook changed to
positive from stable.

Rating actions:

Issuer: BRF S.A.

Corporate Family Rating: affirmed at Ba2

$109 million GTD SR global notes due 2022: affirmed at Ba2

EUR325 million global notes due 2022: affirmed at Ba2

$234 million global notes due 2023: affirmed at Ba2

$295 million SR global notes due 2024: affirmed at Ba2

$750 million GTD global notes due 2030: affirmed at Ba2

$800 million SR global notes due 2050: affirmed at Ba2

Outlook Actions:

Issuer: BRF S.A.

Outlook, Changed to positive from stable

RATINGS RATIONALE

The change in outlook to positive from stable reflects BRF's stable
operational performance, strong liquidity and comfortable debt
amortization schedule, which increases the company's flexibility to
implement its growth strategy (under its "2030 Vision" announced in
December 2020) without increasing liquidity risk. BRF has adequate
liquidity as a result of positive free cash flow generation since
2019 and liability management initiatives taken since 2019. With
BRL8.7 billion in cash at the end of March 2021 BRF covers all its
debt obligations through 2025.

BRF's Ba2 ratings reflect its strong business profile and
leadership in both processed foods in Brazil and global poultry
exports. Moody's expects the improvements seen in the company's
performance in 2019 to be sustained through 2021-2022, reflecting
the rationalization measures implemented, a focus on innovation and
a higher valued-added mix. BRF continues with its growth strategy,
with a new plant in Seropedica (RJ, Brazil) and in Saudi Arabia
(acquisition of Joody Al Sharqiya Food Production Factory early in
2021), where BRF plans to establish local production and expand
into high value-added products. Furthermore, the long-term growth
strategy ("2030 Vision") will allow BRF to significantly improve
scale, product and geographic diversification and the share of
higher-margin products in its portfolio, bringing more resilience
to margins and cash flows.

Offsetting these positive attributes are the relatively low
geographic diversity in terms of production footprint and heavy
concentration in one protein (poultry), and strong exposure to
grain prices and currency volatility.

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

An upgrade would be considered in case of improvement in operating
performance and margins, with BRF showing a resilient performance
regardless the underlying macroeconomic environment and consumption
patterns in key markets. An upward rating movement would require
BRF to maintain a strong liquidity position and improve credit
metrics, with leverage, measured by total adjusted debt/EBITDA
improving towards 3.5x or below, and CFO/debt trending towards 20%.
Moreover, an upward rating movement would also be subject to its
relative position to Brazil's sovereign ratings (currently at Ba2
stable).

A downgrade could result from a deterioration in BRF's operating
performance and liquidity, with weaker cash flow limiting the
company's ability to maintain leverage under the target set by its
financial policy. Quantitatively, a downgrade could also occur if
total adjusted debt/EBITDA remains above 4x on a sustained basis. A
deterioration in the Government of Brazil's credit quality could
hurt BRF's ratings.

The principal methodology used in these ratings was Protein and
Agriculture published in May 2019.

BRF S.A. (BRF) is one of the largest food conglomerates globally
and posted consolidated net revenue of BRL41.1 billion ($7.6
billion, considering average exchange rate) for the twelve months
ending March 2021. The company operates 40 meat processing plants,
10 industrial facilities/processing plants for margarine, pasta,
dessert and soybean crushing, and 45 distribution centers in the
world. BRF exports to more than 130 countries and has a leading
position in global poultry exports, with 10.1% of the world's
poultry trade according to the USDA.

GOL LINHAS: Expects Full Corporate Demand Rebound in Q1 2022
------------------------------------------------------------
Rio Times Online reports that Gol Linhas' board of directors
chairman Constantino de Oliveira Junior said that corporate air
demand should fully rebound as early as Q1 2022.

The statement is much more optimistic than executives' perspectives
in recent months, which had predicted that the segment would not
resume its full capacity, according to Rio Times Online.

"I am confident that passenger demand will come back. We are
committed. That is why we have allocated more capital to the
company," added the executive, recalling the new contribution made
by the controlling family, the report notes.

The executive also highlighted the windows for improvement in the
airline sector in the future, such as contactless boarding, the
report relays.

As reported in the Troubled Company Reporter-Latin America on June
21, 2021, S&P Global Ratings revised the outlook on Brazilian
airline Gol Linhas Aereas Inteligentes S.A. (Gol) to stable from
developing and affirmed its global scale 'CCC+' and national scale
'brBB' issuer credit ratings on Gol. At the same time, S&P affirmed
its 'CCC+' issue-level rating on the senior unsecured notes but
revised the recovery rating to '4' from '3', indicating its
expectation of average (30%-50%; rounded estimate: 35%) recovery in
the event of a payment default.


MARFRIG GLOBAL: Moody's Affirms Ba3 CFR & Alters Outlook to Pos.
----------------------------------------------------------------
Moody's Investors Service affirmed Marfrig Global Foods S.A. Ba3
corporate family rating and changed the outlook to positive from
stable.

Ratings actions:

Issuer: Marfrig Global Foods S.A.

LT Corporate Family Rating: affirmed at Ba3

Outlook Actions:

Issuer: Marfrig Global Foods S.A.

Outlook, Changed to positive from stable

RATINGS RATIONALE

The change in outlook to positive from stable reflects Marfrig's
continued strong operational performance and adequate liquidity,
which increases its ability to weather the volatility of the beef
business, and the financial strategies recently implemented, which
has led to reduction in leverage and debt levels, extension of bond
maturities and lower financial expenses. Moody's expects Marfrig to
continue to extend debt maturities and reduce 2021-2022 maturities,
which represent about 38.8% of total debt at the end of 1Q21.

The Ba3 rating is supported by Marfrig's scale as the second
largest beef producer globally, its good geographic footprint and
diversification in terms of raw material sourcing, which reduce
weather-related risks and animal diseases. The company is
well-positioned to capture the positive fundamentals of the US
market and the growth in exports from South America, while higher
participation of processed foods in its mix and continuous focus on
productivity and cost-cutting will support margins. These strengths
are balanced against the company's narrow focus in the cyclical
beef industry, which is characterized by volatile earnings.

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

An upward rating movement would require Marfrig to maintain a
strong liquidity position and a track record of financial
discipline, or if the company is able to increase its financial
flexibility with reduction in debt levels, with leverage, measured
by Moody's total adjusted debt/EBITDA sustained at or below 3.0x
and interest coverage, measured by EBITA/interest expense,
sustained at 4.5x and above. An upgrade would also require a
maintenance of strong operating performance, with CFO/Debt
sustained at 20% or above, and a resilient performance regardless
of the underlying cattle cycle, macroeconomic environment, and
consumption and trade patterns in key markets, in particular in the
US. Further visibility on Marfrig's strategy towards BRF S.A. (BRF)
is a necessary condition for an upgrade, as Marfrig has acquired
31.66% in BRF's shares in the past months.

Marfrig's ratings could be downgraded if the company's operating
performance weakens, its financial policy becomes more aggressive
or its liquidity deteriorates. Quantitatively, the ratings could be
downgraded if total debt/EBITDA trends towards 4x over the next
12-18 months, EBITA/interest expense falls below 3x or CFO/debt
stays below 15%. All credit metrics incorporate Moody's standard
adjustments.

The principal methodology used in this rating was Protein and
Agriculture published in May 2019.

Marfrig Global Foods S.A. (Marfrig), headquartered in Sao Paulo,
Brazil, is the second-largest beef producer globally, with
consolidated revenue of BRL71.2 billion (around $13.9 billion) in
the 12 months ended March 2021. The company has a large scale and
is diversified in terms of operating production facilities, with a
total cattle slaughtering capacity of 31,200 heads per day and lamb
slaughtering capacity of 6,500 heads per day (including 100%
capacity of National Beef) through its slaughtering plants
(including one lamb slaughtering unit in Chile) and processing
facilities located in Brazil, Argentina, Uruguay, Chile and the US.
In June 2018, Marfrig acquired the control of National Beef
(through a 51% stake), headquartered in Kansas City, Missouri, and,
in November 2019, Marfrig increased its equity stake in National
Beef to 81.73%.


SAMARCO MINERACAO: Plans to Raise $2 Billion in Restructuring
-------------------------------------------------------------
Carolina Mandl and Marta Nogueira at Reuters report that Brazilian
miner Samarco Mineracao SA, an iron ore joint venture between Vale
SA e BHP Group Ltd, plans to raise $2 billion in fresh capital as
part of its plan to exit bankruptcy protection, according to court
documents.

Samarco plans to raise the fresh funds from investors through a
competitive process roughly 30 days after a Brazilian judge
approves its restructuring plan, which has yet to be discussed with
creditors, according to Reuters.

The proceeds will fund its operations between 2022 and 2027. The
company said in the court filings that the capital increase is
vital for its continued operations in the coming years, the report
notes.

Beyond standard operating costs, the company must make payments to
Renova, a foundation set up by BHP and Vale to compensate for a
deadly dam burst at a mine in 2015, the report relays.

Vale and BHP may fund this capital increase at least partially, a
person familiar with the matter said, the report says.  Both
companies have been financing Samarco since the disaster, the
report relates.

In separate statements, Vale and BHP confirmed a proposed capital
increase funded by investors, but did not comment on their
potential contribution.

Samarco, which partially resumed activities in December, said the
restructuring plan does not indicate any commitment from any
specific investor in its proposed capital increase, the report
notes.

The fresh funding would buy class A preferred shares in Samarco,
giving shareholders rights to receive dividends 1,000 times higher
than what is paid to common shares, along with some privileges over
class B shares, the documents show, the report discloses.

The planned capital increase underscores challenges Samarco is
facing as it restructures 50 billion reais in debt after filing for
bankruptcy protection in April, the report relates.

The miner is also offering to convert debt into class B shares or a
cash payout in 2041 equal to 15% of the current value of holdings.
Samarco and creditors are close to starting negotiations on the
plan, the source added, the report adds.

                  About Samarco Mineracao

Samarco Mineracao SA is a Brazilian mining joint venture between
BHP Group and Vale SA. erves as an iron ore processing company. The
company provides blast furnace, direct reduction, sinter feed,
as well as low and normal silica content pellets.

On April 9, 2021, the Debtor filed a voluntary petition for
judicial reorganization in the 2nd Business State Court for the
Belo Horizonte District of Minas Gerais in Brazil pursuant to
Brazilian Federal Law No. 11,101 of February 9, 2005.

Samarco Mineracao filed for Chapter 15 bankruptcy recognition
(Bankr. S.D.N.Y. Case No. 21-10754) on April 19, 2021, in New York,
to seek U.S. recognition of its Brazilian proceedings.

The Debtor's U.S. counsel:

      Thomas S. Kessler
      Cleary Gottlieb Steen & Hamilton LLP
      Tel: 212-225-2000
      E-mail: tkessler@cgsh.com




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AUTOMOTORES GILDEMEISTER: Moody's Withdraws Caa3 CFR Amid Ch. 11
----------------------------------------------------------------
Moody's Investors Service has withdrawn Automotores Gildemeister
S.A. 's ("AG") Caa3 Corporate Family Rating, Ca senior unsecured
notes ratings and stable outlook following the filing of
pre-packaged Chapter 11 financial reorganization process.

RATINGS RATIONALE

Moody's has decided to withdraw the ratings based on AG's
announcement that the company, along with its Chilean, Uruguayan,
and Brazilian subsidiaries, have filed for voluntary protection
under the Chapter 11 the of United States Bankruptcy Code.

The covid outbreak pandemic and related lockdowns in Chile and
Peru, coupled with other unforeseen factors such as the sustained
increase in foreign exchange rates in recent years, and the effects
of the social turmoil in Chile in October 2019, motivated the
company's board of directors to begin a restructuring of its debt
obligations under Chapter 11 of the United States Bankruptcy Code.
On March 31, 2021, the company signed a Restructuring Support
Agreement (RSA) with bondholders representing over 75% of the
Company's Secured Notes due 2025 with the objective to reduce debt
by around $200 million, increase net worth, and improve the
company's liquidity position. On April 12, the company filed the
pre-packaged reorganization of its debt obligations under Chapter
11, and as of April 28, bondholders representing over 94% of the
company's 7.5% Secured Notes due 2025 had signed the RSA. During
April and May bondholders amended several disclosure statements,
and on May 27 filed an Amended Joint Prepackaged Chapter 11 Plan.
On May 28th, the Bankruptcy Court confirmed the Amended Joint
Prepackaged Chapter 11 Plan, as modified.

COMPANY PROFILE

Headquartered in Santiago, Chile, AG is one of the largest car
importers and distributors in Chile and Peru operating a network of
company-owned and franchised vehicle dealerships. Its principal car
brand is Hyundai, for which it is the sole importer in both of its
markets. For the last twelve months ended March 31, 2021 AG
reported consolidated net revenues of $697 million.


CORP GROUP: Seeks Bankruptcy in U.S. Due to Economic Slowdown
-------------------------------------------------------------
Valentina Fuentes and Ezra Fieser at Bloomberg News report that
Corp Group Banking SA, a Chilean financial holding company
controlled by billionaire Alvaro Saieh, filed for bankruptcy after
the coronavirus pandemic sparked an economic slowdown that worsened
fortunes in the banking sector.

The Santiago-based company sought Chapter 11 protection from
creditors in the Bankruptcy Court for the District of Delaware,
according to Bloomberg News.

The move was expected after the company skipped an interest payment
last year on $500 million of 6.75% notes due 2023 and didn't cure
it when a grace period expired Oct. 15, the report notes.

Corp Group Banking failed to meet its payments after the pandemic
and social unrest in Chile affected operations at its main
operating unit, lender Itau CorpBanca, a bank in which it owns a
26.6% stake, the report relays.  Amid a severe economic downturn,
Itau suspended dividend payments that Corp Group relied on to meet
obligations, the report notes.

Saieh, who owns one of Chile's largest conglomerates with stakes in
media, retail, real estate, and hotels, agreed in 2014 to sell his
controlling stake in Corpbanca to Itau Unibanco Holding SA for $1.8
billion, the report says.

Itau Corpbanca announced earlier this month a plan to sell as much
as $1.15 billion in new shares to meet Basel III capital
requirements, the report adds.




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DOMINICAN REPUBLIC: Earmarks US$1-Bil.+ to Spur Construction
------------------------------------------------------------
Dominican Today reports that Minister of Public Works Deligne
Ascencion said the Dominican government earmarks US$1.0 billion to
spur construction of new works, as a way to surmount the morass in
which the pandemic "has subdued the country."

"The Government of President Luis Abinader has decided to resume
the works that were paralyzed, and the Ministry of Public Works
executes more than 330 projects that exceed 60 billion pesos,"
according to Dominican Today.

The official said that one of the sectors that has contributed the
most to the Dominican economy in recent months is the construction
sector, 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).




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UNION ANDINA DE CEMENTOS: S&P Alters Outlook on 'BB' ICR to Stable
------------------------------------------------------------------
S&P Global Ratings revised its outlook on Peru-based cement
producer, Union Andina de Cementos S.A.A. y Subsidiarias (UNACEM),
to stable from negative and affirmed its 'BB' global scale issuer
credit rating.

The stable outlook reflects S&P's view that UNACEM will continue to
deleverage in the next 12 months due to continued top-line and
EBITDA growth, coupled with limited financing needs. This should
result in a net debt to EBITDA trending towards 3.0x and
discretionary cash flow (DCF) to debt of 5%-10%.

Thanks to stronger-than-expected cement demand in UNACEM's key
markets, the company's sales and EBITDA have been rebounding since
the second quarter of 2020. This, coupled with an efficient working
capital management and relatively low capital expenditures and
dividend distributions, have caused UNACEM's key credit metrics to
improve. In the 12 months ended March 2021, UNACEM's net debt to
EBITDA dropped below 4.0x, and S&P estimates this metric to drop
towards 3.0x and to the 2.5x-3.0x range by the end of 2021 and
2022, respectively.

The company's double-digit revenue growth during the fourth quarter
of 2020 and first quarter of 2021 has almost erased the 2020
second-quarter contraction of 51%. S&P said, "We expect cement
demand to remain robust thanks to the rising informal housing in
Latin America and the upswing in the U.S. construction industry.
Cement volume sales have overtaken pre-pandemic levels in 2021 in a
majority of UNACEM's markets. For example, in UNACEM's largest
market, Peru, cement dispatches during the first five months this
year have been about 20% above the 2017-2019 average. On the other
hand, we estimate that concrete, aggregates, and other building
materials sales will recover at a slower pace and could reach
pre-pandemic levels by the end of 2021. In our view, UNACEM is well
positioned to continue meeting the rising demand, given that
utilization rates at its largest plants has been 55%-60% in the
past 12 months. During 2020, UNACEM's sales in Peru represented
close to 65% of total, followed by those in the U.S. (17%), Ecuador
(12%), Chile (6%), and Colombia (less than 1%)."

Although S&P expects demand for building materials to remain strong
in the upcoming quarters in Peru, the electoral win by Mr. Castillo
could represent a major shift from Peru's current economic model.
During his campaign, Mr. Castillo proposed several reforms such as
a potential expansion of the state's role in the economy and
introducing protectionist measures, seeking to increase tax revenue
from foreign firms. Even if some of these proposals are not
approved by the divided Congress, there's a risk that the country's
investment trajectory in key sectors will be undermined, crimping
demand for cement and concrete. However, given UNACEM's revenue mix
in Peru, where about 75% of sales come from bagged cement--usually
consumed for informal construction activity--we would expect some
resiliency in UNACEM's cement dispatches.

S&P said, "We estimate the company will generate cash flows in the
next 12 months, despite higher working capital needs for greater
inventory production. Other cash outflows remain relatively low,
such as capital expenditures at 5%-6% of sales and dividend
distributions that should return to 30%-40% of free operating cash
flows in the next two years, equivalent to $30 million - $40
million. We expect UNACEM to remain committed to lowering leverage
in the next 12 months, although M&A opportunities could delay this
trend if a feasible prospect arises. Nonetheless, we don't expect
any major acquisitions in the near term." UNACEM's latest
acquisition occurred in December 2020: the purchase of 100% of
Cementos La Union S.A. for $23 million, which had little effect on
the company's leverage. The purchase included a Chilean cement
grinding facility with an installed capacity of about 300,000 tons
per year and ready-mix assets with capacity of 336,000 m3 per
year.

The company refinanced its international bond and bank loan for
about PEN1.2 billion in January 2021, extending its weighted
average maturity and lowering its borrowing costs. In May 2021,
UNACEM announced a local notes program for up to PEN1.2 billion.
The company doesn't have yet a specific plan for issuing and the
use of proceeds, but S&P expects that this additional funding
source will support UNACEM's debt refinancing strategy without
significant effect on its leverage.




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CB REAL ESTATE: Taps Luis R. Carrasquillo as Financial Consultant
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CB Real Estate, LLC seeks approval from the U.S. Bankruptcy Court
for the District of Puerto Rico to employ Luis R. Carrasquillo &
Co., P.S.C. as financial consultant.

The Debtor needs a financial consultant to assist in the financial
restructuring of its affairs, advise on strategic planning, assist
in the preparation of a plan of reorganization and participate in
negotiation with creditors.

The firm's hourly rates are as follows:

     Luis R. Carrasquillo, Partner                  $175 per hour
     Marcelo Gutierrez, Senior CPA                  $125 per hour
     Arnaldo Morales Rivera, Senior Accountant      $100 per hour
     Carmen Callejas Echevarria, Senior Accountant  $90 per hour
     Zoraida Delgado Diaz, Junior Accountant        $60 per hour
     Enid Olmeda, Junior Accountant                 $45 per hour
     Rosalie Hernandez Burgos, Administrative
     and Support                                    $35 per hour
     Kelsei Lopez, Administrative and Support       $35 per hour

The firm will also be reimbursed for out-of-pocket expenses
incurred.  The retainer fee is $10,000.

Luis Carrasquillo Ruiz, Esq., a partner at Luis R. Carrasquillo &
Co., disclosed in a court filing that his firm is a "disinterested
person" as the term is defined in Section 101(14) of the
Bankruptcy
Code.

The firm can be reached at:

     Luis R. Carrasquillo Ruiz
     Luis R. Carrasquillo & Co. P.S.C.
     28th Street, #TI-26
     Turabo Gardens Avenue
     Caguas, PR 00725
     Telephone: (787) 746-4555
     Facsimile: (787) 746-4564
     Email: luis@cpacarrasquillo.com

                        About CB Real Estate

San Juan, P.R.-based CB Real Estate, LLC is a fee simple owner of
two commercial buildings located in Puerto Rico and a residential
property in New York, valued at $8.9 million in the aggregate.

CB Real Estate sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D.P.R. Case No. 21-01849) on June 16, 2021.  Horacio
Campolieto Bielicki, president, signed the petition.  In the
petition, the Debtor disclosed total assets of $10,147,500 and
total liabilities of $3,407,130.

Charles A. Cuprill, PSC Law Offices and Luis R. Carrasquillo & Co.
P.S.C. serve as the Debtor's legal counsel and financial
consultant, respectively.


FIRST BANCORP: Fitch Hikes LongTerm IDR to 'BB', Outlook Stable
---------------------------------------------------------------
Fitch Ratings has upgraded First BanCorp's (FBP) Long-Term Issuer
Default Rating to 'BB' from 'B+'. The Rating Watch has been
resolved and the Rating Outlook is Stable. The upgrade primarily
reflects Fitch's review of FBP's blended operating environment
score as well as the resiliency of FBP's financial profile despite
the significant challenges in Puerto Rico's operating environment
over the past several years.

KEY RATING DRIVERS

IDRs, VRs, SENIOR DEBT

The upgrade reflects Fitch's review of FBP's blended operating
environment, which has been upgraded from 'bb' to 'bbb-'. Although
Puerto Rico's long-term economic prospects suffer from unfavorable
demographic trends when compared to peers, the overall income level
on the island coupled with the impact of the unique benefits that
Puerto Rico receives from its status as a U.S. territory combine to
provide a comparable operating environment to similarly-rated
jurisdictions outside of the U.S.

The upgrade also reflects Fitch's view that FBP's financial profile
has proven to be resilient, despite the significant headwinds faced
by Puerto Rico over the last several years. These headwinds include
the default of the Commonwealth of Puerto Rico in 2016 and the
destruction caused by hurricanes Irma and Maria in 2017. Since
2017, the bank's earnings performance, asset quality,
capitalization and funding profile have remained stable or seen
improvement.

Fitch views FBP's company profile to be in-line with the bank's
rating. The bank's solid franchise on the island, as evidenced by
FBP's number two overall market share in Puerto Rico, continues to
support the bank's overall ratings. That said, Fitch considers
FBP's business model to be relatively weaker than higher-rated
peers in Puerto Rico and other jurisdictions, given the bank's
lower level of revenue diversification.

Fitch views FBP's capital ratios as solid, supportive of the bank's
rating. The bank's reported CET1 ratio, including the benefit of
CECL transition provisions, stood at 17.7% at 1Q21 down from 21.6%
at YE 2020, but remains among the highest in Fitch's rated universe
in the U.S. Fitch expects that capital ratios may come down
modestly from current levels over the next few years through
increased shareholder returns, but expects that FBP will continue
to maintain higher capital ratios than similarly sized banks in the
U.S. given the relatively weaker operating environment on the
island.

FBP's funding profile continues to support the bank's overall
ratings. Similar to many other Fitch-rated banks in the U.S., FBP
saw a marked improvement in its loan-to-deposit ratio, from 97% in
2019 to 73% at 1Q21. Excluding public sector deposits that are
collateralized by securities, FBP's loan-to-deposit ratio would be
about 83%, a level which falls slightly below the median of
higher-rated U.S. mainland peers, but compares favorably with peers
in similarly-rated jurisdictions.

Like many banks globally, FBP's credit losses outperformed Fitch's
expectations in 2020 and into 1Q21. Although FBP's asset quality
has improved somewhat in recent years, the bank's asset quality
remains weaker relative to U.S. mainland banks, evidenced by
consistently higher levels of net charge-offs and a higher
proportion of impaired loans. That said, deterioration in asset
quality stemming from past hurricanes and fiscal challenges in
Puerto Rico has been minimal.

FBP's core earnings in 2020 were negatively affected by the impact
of lower interest rates and higher provisioning, although
performance has remained relatively solid compared to its current
rating level. The bank's 1Q21 earnings have seen significant
improvement due largely in part from a reversal of provision
expense, which Fitch views as transient rather than a structural
improvement in earnings performance. Fitch still expects that
earnings, as measured by pre-tax pre-provision net revenues to
average assets will remain below pre-pandemic levels for the
near-to-medium term.

LONG- AND SHORT-TERM DEPOSIT RATINGS

Long-term deposits at FBP's subsidiary bank are rated one notch
higher than FBP's Long-Term IDR because U.S. uninsured deposits
benefit from depositor preference. U.S. depositor preference gives
deposit liabilities superior recovery prospects in the event of
default.

HOLDING COMPANY

FBP has a bank holding company (BHC) structure with the bank as the
main subsidiary. The company's IDRs and VRs are equalized with
those of the operating company and bank, reflecting its role as the
bank holding company, which is mandated in the U.S. to act as a
source of strength for its bank subsidiary.

SUPPORT AND SUPPORT RATING FLOOR

The Support Rating of '5' and Support Ratings Floor of 'NF' reflect
Fitch's view that FBP is not considered systemically important; and
therefore, the probability of support is unlikely. The IDRs and VRs
do not incorporate any support.

RATING SENSITIVITIES

IDRs, VRs, SENIOR DEBT

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

-- With today's upgrade, Fitch considers FBP's ratings to be at
    the high end of their potential range in the near-to-medium
    term given FBP's weaker asset quality metrics and lack of
    revenue diversification compared to higher-rated peers in the
    U.S. mainland.

-- FBP's ratings could be see positive momentum over the longer
    term if Fitch's assessment of the bank's operating environment
    was revised upwards. Further, positive momentum could develop
    if the bank's franchise and revenue diversification were to
    significantly improve, without materially increasing its risk
    appetite. However, Fitch views these as outside of the current
    rating horizon.

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

-- FBP's ratings would be sensitive to a deterioration in the
    operating environment. Therefore, a downgrade in Fitch's
    assessment of FBP's operating environment could result in a
    downgrade of FBP's ratings.

-- Negative pressure could be placed on FBP's ratings should
    there be evidence of outsized earnings deterioration. A
    failure to maintain an implied earnings rating in the 'bb'
    category, with operating profit to RWA ratio falling below
    1.5%, could result in negative ratings pressure.

-- A significant deterioration in asset quality could also result
    negative rating action. Pressure could emerge if impaired
    loans to gross loans were to meaningfully exceed 10%,
    especially if accompanied by a sharp increase in FBP's net
    charge-off ratio.

-- Furthermore, the bank's ratings would be at risk if its CET1
    were to approach or ultimately dip below 14% and remain there
    for multiple quarters, absent a credible plan to build levels
    back above this threshold.

LONG- AND SHORT-TERM DEPOSIT RATINGS

The long-term deposit ratings and short-term deposit ratings of
FBP's subsidiary banks are sensitive to changes in the company's
Long-Term IDR.

HOLDING COMPANY

While not currently expected, if FBP became undercapitalized or
increased double leverage significantly, Fitch could notch the
holding company IDR and VR down from the ratings of the bank
subsidiary. Additionally, upward momentum at the holding company
could be limited should FBP manage its holding company liquidity
more aggressively over time evidenced by cash coverage of less than
four quarters of required cash outlays.

SUPPORT AND SUPPORT RATING FLOOR

The Support Rating and Support Rating Floor are sensitive to
Fitch's assumption around capacity to procure extraordinary support
in case of need.

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

Fitch has revised FBP's ESG Relevance Score of '4' for
Environmental Impacts down to '3', as the impact of Hurricanes Irma
and Maria, while having complicated the Commonwealth of Puerto
Rico's efforts to reverse outward migration, generate sustainable
economic growth and address its fiscal and debt imbalances, has not
had a sustained negative impact on bank's credit profile.

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.




=====================================
T R I N I D A D   A N D   T O B A G O
=====================================

CARIBBEAN AIRLINES: Incurs TT$172.7 Million Losses in First Quarter
-------------------------------------------------------------------
Jamaica Observer reports that regional carrier Caribbean Airlines
Limited (CAL) in its first quarter performance this year reported
US$25.7 million or TT$172.7 million in losses - a 75 per cent
downturn in revenues when compared to the corresponding period of
last year.

Since the outbreak of the novel coronavirus pandemic last year, the
airline has had to deal with severe financial fallouts which saw it
incurring operating losses of over US$109 million, according to
Jamaica Observer.  This, as the global travel industry continues to
deal with additional pressure from imposed travel restrictions
along with the ongoing restriction of operations at its Trinidad
base, the report notes.

"The announcement that the borders of Trinidad and Tobago may soon
reopen is welcome news, but all forecast suggest that the
recommencement of travel will not be in the same volumes as they
were pre-COVID.  Therefore, until air travel regains its pre-COVID
momentum the airline will need to adjust its operations to cater
for a reduced scale of demand after the opening of the borders,"
CAL said in a news release, the report discloses.

The airline said that despite the impending reopening of borders,
it does not expect passenger demand over the short term to recover
sufficiently in order to support existing structures, the report
notes.  Consequently, the company in a series of cost containment
and strategic restructuring objective is moving to make its
operation more viable and efficient, the report relays.  Among the
measures cited by the entity are significant reductions to its
human resources complement, the report discloses.

"In terms of employees, the airline has determined that 25 per cent
of its workforce or about 450 positions throughout its network is
surplus to its current needs.  The company will embark on
consultation with the employees and other stakeholders, with
respect to treating with this surplus labour situation," the
release stated, the report relays.

In an earlier attempt to save jobs and reduce its salary bill also,
the company took steps which saw some of its employees being sent
on no-pay leave, while some got salary cuts and another set laid
off, the report notes.

Outside of staff retrenchment, the company is also seeking to scale
down some of its general airline operations, fleet size, assets and
route networks, the report discloses.  "As part of the streamlining
strategy, the number of jets in the fleet will be reduced, for the
time being, over the course of 2021. Its route network will also be
adjusted to reflect the changing market," the report relays.

The company's CEO, Garvin Medera, assured customers that the
changes would not significantly affect the quality of service,
safety and customer service to be provided, the report notes.

The company in which the Jamaican Government has a 16 per cent
stake has fleet comprising some six ATR 72-600s and ten Boeing
737-800s and a network which spans across 18 destinations in South
America, the Caribbean, the United States and Canada, the report
says.

CAL, in its latest financials, said that while it was able to
reduce expenses by as much as 52 per cent during the first quarter
period, the continued impact of the pandemic on the travel and
tourism industry has caused the airline to see the constant
plummeting of passenger numbers and flights to less than 10 per
cent of its normal activity, the report relays.  It said that while
subsidies of over US$100 million were injected by the Government of
Trinidad to keep the airline afloat, this was still not enough to
counter recurring losses, the report relates.

"We made major changes that substantially reduced our costs and
kept the airline operational, but the situation now requires us to
take further steps to ensure that CAL has a sustainable model for
2021 and beyond," Medera added.

Prior to the outbreak of the pandemic in 2020, CAL had a two-year
streak in profits earning US$4 million and US$11 million in 2018
and 2019, respectively, the report notes.  Since last year, the
entity's operating loss has, however, significantly grown to TT$738
million (US$190 million) as the airline transported approximately
1.8 million less passengers than it did in the previous year, the
report says.

Recent data from the United Nation's International Civil Aviation
Organization (ICAO) confirm the drastic fall in international air
travel due to COVID-19 by about 60 per cent since last year -
levels last seen in 2003, the report relays.  The entity said that
just about 1.8 billion passengers took flights in 2020 when
compared to 4.5 billion in the previous year, the report
discloses.

"That adds up to a staggering financial loss to the industry of
around $370 billion, with airports and air navigation services
providers losing a further $115 billion and $13 billion,
respectively," the ICAO further said in its report, Jamaica
Observer adds.

                 About Caribbean Airlines

Caribbean Airlines Limited - http://www.caribbean-airlines.com/-  

provides passenger airline services in the Caribbean, South
America, and North America.  The company also offers freighter
services for perishables, fish and seafood, live animals, human
remains, and dangerous goods.  In addition, it operates a duty free
store in Trinidad.  Caribbean Airlines Limited was founded in 2006
and is based in Piarco, Trinidad and Tobago.

Caribbean Airlines is among many airlines whose business has been
greatly affected in 2020 by the slowdown of international travel
caused by the COVID-19 pandemic.  The government of Trinidad &
Tobago guaranteed a US$65 million loan for the airline, and that
funding has helped with the airlines' cash flow shortfall since May
2020.  In September 2020, the airline related it will be taking
cost-cutting measures to help keep it afloat.  The measures, which
was to affect some 1,700 employees, included salary deductions,
no-pay leaves and lay-offs.


EASTERN CREDIT UNION: CariCRIS Cuts Currency Ratings to CariBB+
---------------------------------------------------------------
Trinidad Express reports that regional rating agency Caribbean
Information and Credit Rating Services Ltd (CariCRIS) disclosed
that the Eastern Credit Union Co-operative Society (ECU) had fallen
a notch in its Foreign and Local Currency Ratings, now CariBB+ on
the regional rating scale and ttBB+ on the Trinidad and Tobago
(T&T) national scale, according to Trinidad Express.

According to CariCRIS, the new ratings indicate that the level of
ECU's creditworthiness, adjudged in relation to other obligors in
the Caribbean, is below average, the report notes.

The rating agency noted that the one-notch downgrade is driven by
the further deterioration in asset quality over the past year as
evidenced by increases in non-performing loans (NPLs) and loan
delinquencies partly driven by the impact of the Covid-19 pandemic,
the report discloses.

"This has been further exacerbated by the challenging economic and
labour market conditions in T&T and increased financial sector
competition from commercial banks. These market conditions have
negatively impacted ECU's revenue and profitability levels when
compared to prior years," said CariCRIS, the report relays.

Stating that it had also revised the outlook on the ratings from
negative to stable, CariCRIS said the stable outlook is based on
its expectation that economic activity in T&T is expected to
somewhat improve over the next 12-15 months as domestic lockdown
measures are gradually lifted, and the Covid-19 vaccines are rolled
out, the report discloses.

"While we anticipate no material improvement in ECU's financial
performance over the next 12-15 months, we expect the credit
union's revenue and profitability levels to experience a slight
boost but not return to pre-Covid-19 levels," the report relays.

CariCRIS noted that the downgrade does not represent doom and gloom
for ECU, the report notes.

"The ratings reflect ECU's strong market position as the largest
credit union in T&T with a growing asset base and membership.
Notwithstanding the downgrade, ECU continues to report good
financial performance and asset growth, though at lower levels.
These rating strengths are tempered by high levels of
non-performing loans with rising delinquency. Further there is room
for improvement in the company's risk management practices. The
challenging economic environment which presents significant
downside risks to the local credit union industry and profitability
of ECU also constrains the ratings," stated CariCRIS, the report
relays.

When questioned on the potential impact of the downgrade, CariCRIS'
manager-ratings, Anelia Oudit said to begin with ECU doesn't have
any debt on its books, the report notes.

"What the rating downgrade was driven by was the deterioration in
the asset quality over a three year period."

She said what was instrumental in ECU's asset quality deterioration
was the impact the Covid-19 pandemic had on the ECU, one of which
was an increase in the level of delinquent and non-performing loans
on it books, the report says.

"So it signals that should Eastern Credit Union have to borrow,
which in this case they don't have to because they have a large
funding, it signals to the investors that its ability to repay its
debts is low compared to other debtors in Trinidad and Tobago. But
in this case ECU doesn't have any debts, it's a corporate credit
rating, the report notes.

Oudit said while ECU can reverse the downgrade, measures to achieve
that will have to be over a prolonged period as an upgrade is not
an automatic process.

"It wouldn't be automatic to say that they actually improved their
asset quality and we would do an upgrade. We have to see a trend
basically over a period of time before that can be done," Oudit
said, the report discloses.

CariCRIS also outlined some rating sensitivity factors,
individually or collectively, that could be adopted by ECU to
achieve an improvement in its ratings and/or outlook, such as a
decline in operating expenses leading to a cost to income ratio of
under 50 per cent over two consecutive years, and a decline of its
non-performing loan ratio to under six per cent, also for two
consecutive years, the report says.

The regional rating agency also noted that an increase in operating
expenses leading to a cost to income ratio of over 70 per cent over
two consecutive years, the non-performing loan ratio remaining
above 12 per cent in the next financial year, and a deterioration
in the credit rating of the sovereign over the next 12-15 months
thereby leading to further weakening of ECU's asset quality
metrics, as factors that could lead to a further downgrade, the
report adds.



                           *********


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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