/raid1/www/Hosts/bankrupt/TCRLA_Public/210824.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, August 24, 2021, Vol. 22, No. 163

                           Headlines



C A Y M A N   I S L A N D S

ENERGY HOLDINGS: S&P Alters Outlook to Stable, Affirms 'B-' ICR


C H I L E

CHILE: Growth Outpaces Forecasts


C U B A

CUBA: To Legalize Small Businesses; Dips Toe in Market Economy


E C U A D O R

ECUADOR DIVERSIFIED: Fitch Affirms B+ Rating on Outstanding Loans


J A M A I C A

UC RUSAL: Faces Problems With Wage, Fringe Benefits Negotiations
WIGTON WINDFARM: Incurs 53% Drop in Profit to $136 Million


M E X I C O

MEXICO: Gov't. Would Have to Buy Reserves to Pay Debt, Banxico Says
MEXICO: President Backs Central Bank Hikes Over Inflation
MEXICO: Presses on With Plan to Pay Down Debt Using IMF Funds

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C A Y M A N   I S L A N D S
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ENERGY HOLDINGS: S&P Alters Outlook to Stable, Affirms 'B-' ICR
---------------------------------------------------------------
S&P Global Ratings revised its outlook on Energy Holdings (Cayman)
Ltd. (ECI) to stable from negative. S&P also affirmed all ratings,
including its 'B-' issuer credit rating and its 'B-' issue-level
rating on the company's first-lien, senior secured term loans. And
S&P also affirmed its 'CCC' rating on the company's second-lien
term loan.

The stable outlook reflects S&P's view that the strength in the
residential housing market as well as general macroeconomic
conditions should reduce ECI's adjusted debt to EBITDA to the 6x
area in 2021.

The pandemic drove ECI's leverage to extreme heights in 2020, but
that level is falling. Reduced demand, coupled with additional
COVID-19 related costs, translated into negative S&P Global
Ratings-adjusted EBITDA in the second quarter of 2020. Revenues
bounced back fairly quickly, however, buoyed by strong demand for
the company's products that go into home appliances. While leverage
is still high on a last-12-month (LTM) basis, S&P believes demand
will remain high and that ECI will continue to reduce one-time
expenses. These factors will translate into leverage in the mid-6x
area on an S&P Global Ratings-adjusted basis.

The strong residential housing market is helping drive demand for
the company's products. S&P said, "In our view, housing trends play
a significant role in the demand for ECI's products. Home appliance
shipments increased 24.9% in the second quarter of 2021 relative to
same period a year ago. While demand could soften in line with the
housing market, we believe it will remain above 2020 levels."

ECI's specialty segment took longer to rebound, but performed very
strongly in the first half of 2021. The specialty segment
manufactures products across a number of end markets, including
specialty transportation, automotive, agricultural, HVAC, and
construction. Its agriculture end market performed particularly
well as shipments of self-propelled combines were up 31.6% in the
quarter.

ECI has completed two acquisitions so far in 2021 that should add
to its product mix and assist with deleveraging. Earlier this year
ECI acquired Omni Connection International, a global supplier of
wire harnesses, electrical components, and sub-assemblies for the
automotive end market. S&P said, "We believe the acquisition
contributes to the company's deleveraging because of the mix of
cash, a new first-lien term loan, and an equity contribution from
the financial sponsor. Although the automotive industry is facing
supply chain pressures given the dearth of semiconductors, we
believe the acquisition is a good strategic fit for the company's
specialty segment."

Shortly thereafter, ECI acquired Promark Electronics Inc., a
Montreal-based manufacturer of wire-harnesses, cable assemblies,
and electromechanical assemblies primarily for commercial electric
vehicles. Similar to the Omni transaction, ECI funded the Promark
buy with a mix of cash, debt, and sponsor-funded equity, helping to
reduce pro forma leverage.

S&P said, "We believe positive free cash flow will supplement ECI's
on-balance-sheet liquidity. As of June 30, 2021, ECI had $54.7
million of cash on its balance sheet, as well as $99.8 million of
availability on its revolving credit facility. The company managed
to generate positive free operating cash flow in 2020, but it was
primarily a result of unwinding working capital. As demand
improved, the company faced a working capital headwind in the first
quarter, but still managed to generate $24 million of free
operating cash flow in the first half of 2021. We believe demand
will remain strong, resulting in working capital needs. Still, we
believe ECI has the capacity to generate $35 million to $45 million
of free operating cash flow this year.

"The stable outlook reflects our view that a combination of healthy
end market conditions, as well as reduced one-time expenses, will
reduce ECI's leverage to the 6x-7x range in 2021. While we believe
the company has the capacity to reduce leverage further in 2022, we
believe it will continue to pursue bolt-on type acquisitions and
maintain elevated leverage compared to higher rated peers."

S&P could lower the ratings on ECI if:

-- S&P Global Ratings-adjusted leverage were to increase
meaningfully, for instance above 9x on a sustained basis;

-- The company generated significantly negative free operating
cash flow; or

-- Liquidity were to weaken materially.

S&P said, "While unlikely over the next 12 months, we could raise
our ratings on ECI if adjusted debt to EBITDA fell to below 6.5x
and we believed the company was committed to maintaining that level
inclusive of potential acquisitions and distributions to owners."




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C H I L E
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CHILE: Growth Outpaces Forecasts
--------------------------------
globalinsolvency.com, citing Bloomberg News, reports that Chile's
economy beat expectations in the second quarter as billions of
dollars in fiscal stimulus triggered a retail sales frenzy during
the pandemic.

Gross domestic product grew 1% from the first quarter, more than
the 0.7% median estimate from analysts in a Bloomberg survey. The
economy expanded 18.1% from a year prior, the central bank
reported, according to globalinsolvency.com.

Chile has spent more to offset the economic impact of the pandemic
than any other key emerging-market country, according to the
International Monetary Fund, while a series of early pension
withdrawals has put almost $50 billion in people's pockets, the
report notes.

That cash has fueled a consumption boom, with retail sales posting
eye-popping year-on-year gains of 66% in June and 72% in May, the
report relays.

The stimulus also helped to offset the economic blow of strict
lockdowns and longer nightly curfews implemented by the government
to battle a record surge in virus cases during the second quarter,
the report says.

Going forward, growth is expected to speed up as the vaccination
campaign drives down infections while the economy slowly reopens,
the report discloses.  Mining increased by 3.1% from the first
quarter, according to the central bank, the report says.  Internal
demand rose 1.6%, driven by household consumption of durable goods,
the report adds.




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C U B A
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CUBA: To Legalize Small Businesses; Dips Toe in Market Economy
--------------------------------------------------------------
Marc Frank, writing for Reuters, reports that thousands of small
and medium-sized Cuban businesses will be allowed to incorporate in
the coming months, in one of the most important economic reforms
taken by the island's Communist government since it nationalized
all enterprises in the 1960s.

The reform, details of which came to light two weeks ago, will
permit small and medium-sized businesses for the first time since
1968, putting an end to the legal limbo in which many have existed
for years in the Soviet-style economy, according to Reuters.  The
law will also apply to small and medium-sized state firms, paving
the way for an important decentralization of some activities and
forcing subsidized operations to become profitable or fold,
according to Cuban economists, the report notes.

In the food service sector, thousands of government-subsidized
eateries will either close, become cooperatives or turn into small
businesses, according to a mid-level manager involved in the
process who spoke on condition of anonymity, the report relays.

Those it keeps will become small-and medium-sized state-owned
businesses competing with them, the report relays.  

While there have always been private farms and agricultural
cooperatives in Cuba, most of the economy was in state hands until
the 1990s when heavily regulated small businesses were allowed in a
few areas under the rubric of self-employment, limiting their
legitimacy and legal standing, the report notes.

The new measures are a key part of the economic reforms undertaken
by new Cuban leader Miguel Diaz-Canel over the last year, as the
coronavirus pandemic and tougher U.S. sanctions pushed the shaky
economy into a tailspin and shortages of food, medicine and other
basic goods reached alarming proportions, the report adds.

According to the report, Economy Minister Alejandro Gil said in a
televised presentation the measures would put state and private
business on an equal footing to compete, work together and create
joint companies, much as in capitalist countries.

"It is a starting point for a new stage in the diversification of
the economy and its development, in order to make the most of its
potential," the report quoted Gil as saying, adding that the reform
would boost employment and allow the economy to rebound more
strongly as the pandemic eased.

MIXED ECONOMIC MODEL

The report relays that the creation of micro, small and
medium-sized (MSME) businesses was fast-tracked upon approval in
May by Cuba's Council of Ministers.

The new MSMEs will be able to access the state wholesale system,
import and export, set prices and attract foreign investment, but
only within a state-dominated business environment where such
activities will remain heavily regulated, according to various
ministers who appeared with Gil, reports Reuters.

Companies are limited to no more than 100 employees and individuals
can only own a single company, according to a decree law published
by the Council of State this month, notes the report. Nevertheless,
it is a welcome step for many entrepreneurs and most economists who
have long called for the reform.

"Cuba is moving towards a mixed economic model, at least in terms
of employment," said Pavel Vidal, a former Cuban central bank
economist who teaches at Colombia's Pontificia Universidad
Javeriana in Cali, Reuters relays. "With this opening, in a few
years the non-state sector will represent more than 50% of total
employment in the economy," Vidal said, adding that "still much
more needs to be done."

According to Reuters, Cuba's economy, which has stagnated for
years, contracted by 10.9% in 2020 and declined another 2% in the
six months through June, compared with the first six months of last
year. The economy remains heavily reliant on tourism and imports.

The report adds that thousands of people in cities across the
Caribbean island took to the streets on July 11 to protest living
conditions in what were the biggest anti-government demonstrations
since the 1959 revolution. Diaz-Canel has blamed the unrest on the
United States, saying protesters were manipulated by
U.S.-orchestrated social media campaigns.

The private sector in Cuba has gradually expanded since the 1990s
to encompass more than 600,000 self-employed license holders in
many sectors and includes business owners and their employees,
tradespeople and taxi drivers, Reuters notes.

The so called non-state sector, including agriculture, provides
work for a third of the 4.9 million officially employed Cubans in
the labor force, with the remainder working for the state, says the
report.





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E C U A D O R
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ECUADOR DIVERSIFIED: Fitch Affirms B+ Rating on Outstanding Loans
-----------------------------------------------------------------
Fitch Ratings has affirmed the outstanding series 2020-1 loans
originated by Ecuador Diversified Payment Rights (DPR) at 'B+'. The
Rating Outlook is Negative.

The Negative Outlook reflects downside risks to the originating
bank's credit quality from the economic implications of the
coronavirus pandemic.

      DEBT              RATING         PRIOR
      ----              ------         -----
Ecuador Diversified Payment Rights

2020-1 G2921#AA9    LT  B+  Affirmed    B+

TRANSACTION SUMMARY

The future flow program is backed by U.S. dollar-denominated,
existing and future DPRs originated in the U.S. by Banco del
Pacifico S.A. (BdP) of Ecuador. The majority of DPRs are processed
by designated depository banks (DDBs) that executed account
agreements (AAs).

KEY RATING DRIVERS

Future Flow (FF) Rating Driven by Originator's Credit Quality: The
rating of this future flow transaction is tied to the credit
quality of the originator, BdP. BdP's IDR is in line with the
credit quality of Ecuador, BdP's operating environment. BdP's
credit quality continues to be exposed to increased downside risks
from the economic implications of the coronavirus pandemic.

Going Concern Assessment (GCA) Score Supports Notching
Differential: Fitch uses a GCA score to gauge the likelihood that
the originator of a future flow transaction will stay in operation
throughout the transaction's life. Fitch assigned a going concern
assessment (GCA) score of 'GC1' to Banco BdP, based on the bank's
systemic importance and its state-owned shareholder. The score
allows for a maximum of six notches above the LC IDR of the
originator; however, additional factors limit the maximum uplift.

Factors Limit Notching Differential: The 'GC1' score allows for a
maximum six-notch rating uplift from the bank's IDR, pursuant to
Fitch's future flow methodology. However, uplift is tempered to two
notches from BdP's IDR due to factors mentioned below, including
Ecuador's lack of last resort lender, large beneficiary
concentration and high future flow debt relative to total funding.

Relatively High Future Flow Debt: Total future flow debt including
the DPR series 2020-1 loan represents approximately 4.7% of BdP's
total funding and 39.4% of non-deposit funding utilizing financials
as of March 2021. Fitch considers the ratio of future flow debt to
overall non-deposit funding to be relatively high and will not
allow the financial future flow ratings up to the maximum uplift
indicated by the GCA score.

Relatively Large Beneficiary Concentration: Fitch considers the
program's level of concentration amongst its top beneficiaries as
high when compared to other rated DPR programs across the region.
The top 20 beneficiaries have approximately represented between 55%
and 60% of total eligible DPR volume from the U.S., based on flows
over the past five years. Despite high beneficiary concentrations,
key beneficiaries are well serviced through a variety of products,
and some have long-standing relationships with the bank.

Coverage Levels Commensurate with Assigned Rating: When considering
rolling quarterly flows between August 2016 and July 2021 Fitch
expects the unadjusted quarterly minimum debt service coverage
ratio (DSCR) to be approximately 21.0x. Fitch's adjusted base case
DSCR is 18.2x, the maximum quarterly debt service for the life of
the program when considering Fitch's 'B+' interest rate stress and
the exclusion of certain nonrecurring DPR flows.

No Lender of Last Resort: Ecuador is a dollarized economy without a
true lender of last resort. While certain mechanisms are in place
to help fend off a banking system crisis, this limits the notching
differential of the transaction.

Reduced Redirection/Diversion Risk: The structure mitigates certain
sovereign risks by collecting cash flows offshore until collection
of the periodic debt service amount, allowing the transaction to be
rated over the sovereign country ceiling. Fitch believes payment
diversion risk is partially mitigated by the AAs signed by the
three correspondent banks processing the vast majority of USD DPR
flows.

RATING SENSITIVITIES

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

-- Fitch does not anticipate any developments with a high
    likelihood of triggering an upgrade. However, the main
    constraint to the program rating is the originator's rating
    and BdP's operating environment. If a positive ration
    action/upgrade occurs, Fitch will consider whether the same
    uplift could be maintained or if it should be further tempered
    in accordance with criteria.

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

-- The transaction ratings are sensitive to changes in the credit
    quality of BdP. A deterioration of the credit quality of BP is
    likely to pose a constraint to the current rating of the
    transaction.

-- The transaction ratings are sensitive to the ability of the
    DPR business line to continue operating, as reflected by the
    GCA score and a change in Fitch's view on the bank's GCA score
    can lead to a change in the transaction's rating.
    Additionally, the transaction rating is sensitive to the
    performance of the securitized business line.

-- The quarterly minimum unadjusted DSCR is estimated to be 21.0x
    and should therefore be able to withstand a moderate decline
    in cash flows in the absence of other issues. However,
    significant declines in flows could lead to a negative rating
    action. Any changes in these variables will be analyzed in a
    rating committee to assess the possible impact on the
    transaction ratings.

-- No company is immune to the economic and political conditions
    of its home country. Political risks and the potential for
    sovereign interference may increase as a sovereign's rating is
    downgraded. However, the underlying structure and transaction
    enhancements mitigate these risks to a level consistent with
    the assigned rating.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Structured Finance
transactions have a best-case rating upgrade scenario (defined as
the 99th percentile of rating transitions, measured in a positive
direction) of seven 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 seven notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings
are based on historical performance.

USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10

Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.



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J A M A I C A
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UC RUSAL: Faces Problems With Wage, Fringe Benefits Negotiations
----------------------------------------------------------------
RJR News reports that Windalco's parent company Russian aluminium
producer Rusal said that problems have developed with wage and
fringe benefits negotiations for workers employed to Rusal's
operations in Jamaica.

The Union of Clerical, Administrative and Supervisory Employees,
(UCASE) says nearly a year ago it served a 24 point claim on
Windalco on behalf of more than 600 production workers at the
company's Ewarton, Port Esquivel, Kirkvine Works and Swallenburg
locations, according to RJR News.

Meanwhile, Rusal said its first-half net profit rose to US$2
billion from a loss of US$124 million a year ago, the report
notes.

The turnaround was due to higher sales and stronger prices for the
metal, the report adds.

The company increased its January-June sales by 6% year on year,
while the average price for a ton of aluminium rose by 30%, the
report discloses.

Rusal sells the metal used in construction and electronics, among
other industries, to Europe, the United States and Asia.

It has been hit by Russia's government decision to raise export
taxes for the country's metals producers for August to December,
the report relays.

Rusal said in June the 15% export tax on aluminium exports, or a
minimum of $254 a tonne, would cost it several hundred million
dollars this year and may lead to lower 2021 sales, the report
adds.

As reported in the Troubled Company Reported on May 6, 2021, Fitch
Ratings has upgraded Russian-based aluminium producer United
Company RUSAL, international public joint-stock company's (RUSAL)
Long-Term Issuer Default Rating (IDR) to 'BB-' from 'B+'. Fitch has
also upgraded RUSAL Capital D.A.C.'s senior unsecured notes to
'BB-' from 'B+'. The Recovery Rating is 'RR4'. The Outlook on the
Long-Term IDR is Stable.



WIGTON WINDFARM: Incurs 53% Drop in Profit to $136 Million
----------------------------------------------------------
RJR News reports that Wigton Windfarm had a 53 per cent drop in
profit for the April to June quarter.

The company's profit was $136 million compared to $300.7 million a
year ago, according to RJR News.

Wigton says the decline was due to lower wind energy production,
the report discloses.

The company linked this to a lower wind regime from changes in the
weather pattern, the report notes.

A decline in equipment availability due to major maintenance on
five turbines in the quarter also resulted in reduced earnings, the
report discloses.

Wigton's April to June revenue amounted to $669.6 million, a $150
million decline over last year, the report adds.




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M E X I C O
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MEXICO: Gov't. Would Have to Buy Reserves to Pay Debt, Banxico Says
-------------------------------------------------------------------
globalinsolvency.com, citing Bloomberg News, reports that Mexico
can use a multibillion dollar transfer from the International
Monetary Fund to prepay debt, as the country's president is
considering, but the government would need to purchase the funds
from the central bank, Banxico Governor Alejandro Diaz de Leon
said.

The IMF's transfer to the central bank of the recently-approved
reserves, worth roughly $12 billion, isn't a "donation," Diaz de
Leon said in an interview, according to the report.

The comments comes after President Andres Manuel Lopez Obrador said
earlier he was considering using Mexico's share of the windfall to
prepay the country's debts, the report notes.

"They are an asset that computes as international reserve," the
report quoted Diaz de Leon as saying over the telephone.  "All
foreign currency that the federal government can get from the
central bank is purchased," he added, adding that any eventual
transaction needs to be done at market prices.

Lopez Obrador's comments led to speculation over whether he's
considering merely taking the funds, or if he's looking to purchase
them from Banxico, as the central bank is known, the report notes.
The IMF's member nations approved the biggest resource injection in
the organization's history, with $650 billion worth of reserve
assets -- known as special drawing rights -- meant to help
countries deal with mounting debt and the fallout from the Covid-19
pandemic, the report adds.


MEXICO: President Backs Central Bank Hikes Over Inflation
---------------------------------------------------------
globalinsolvency.com, citing Reuters, reports that Mexican
President Andres Manuel Lopez Obrador backed the central bank's
recent moves to raise interest rates, but took a swipe at a board
member for criticizing his plan to allocate International Monetary
Fund resources to pay off debt.

"I respect that decision they're taking because inflation must be
kept under control," he told a regular news conference, according
to globalinsolvency.com.

"This should be something that matters to all of us." Inflation in
July stood at 5.81%, well above the bank's target of 3%, and the
bank raised its key interest rate by 25 basis points to 4.5%. More
rate increases are expected this year. Lopez Obrador said the bank
should be attentive to both inflation and growth, saying: "For a
long time, they've only dealt with inflation, they don't look at
growth, but that's an outside point of view," the report notes.

Mexico's economy slumped 8.5% in 2020, hit by the coronavirus
pandemic, and the government expects it to grow around 5% to 6%
this year, the report adds.

Reuters relates that Lopez Obrador also took aim at deputy central
bank governor Gerardo Esquivel for criticizing his proposal that
the Bank of Mexico use money disbursed by the IMF to pay off public
debt in order to save interest.

Esquivel, a left-leaning economist whom the president had initially
tapped as deputy finance minister before he nominated him to the
bank's board, had said it was unfeasible by law, the report
recalls.

"I am seeing Gerardo Esquivel, who has already become a technocrat,
saying you can't do what the president is proposing. You can't
because you don't want to, because with all due respect, they are
very square," the report quoted Lopez Obrador as saying.

Later, Esquivel posted on Twitter: "In democracy, dissent is not
always confrontational. Public deliberation will always be
welcome."


MEXICO: Presses on With Plan to Pay Down Debt Using IMF Funds
-------------------------------------------------------------
globalinsolvency.com, citing Bloomberg News, reports that Mexico's
President Andres Manuel Lopez Obrador said he'll seek central bank
approval to use $12 billion in International Monetary Fund reserves
to pay down debt, as he presses ahead with austerity.

Lopez Obrador thanked bank Governor Alejandro Diaz de Leon for
being open to the idea of using the windfall, which is being
transferred to the monetary authority from the IMF, to prepay
liabilities, according to globalinsolvency.com.

He declined to comment on Diaz de Leon's prior remarks that the
government must purchase the reserves from the bank, the report
notes.  AMLO, as the president is known, has made austerity a
cornerstone of his administration and has vowed not to raise debt
levels, the report relays.

His plan to use the IMF funds was proposed by his new finance
minister and long-time confidant, Rogelio Ramirez de la O, who is
leading the project, the report discloses.

"The money shouldn't just be stored away," AMLO said. "That would
be a loss, because it earns very little interest, while the
government has to pay high interest on its debt," the report
relays.  He added that the decision will depend on the central
bank, known as Banxico, whose autonomy his government will "always
respect, always," 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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