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       T R O U B L E D   C O M P A N Y   R E P O R T E R

                 L A T I N   A M E R I C A

          Thursday, September 30, 2021, Vol. 22, No. 190

                           Headlines



A R G E N T I N A

BUENOS AIRES: Moody's Changes Outlook on Unsec. Ratings to Stable


B A H A M A S

BAHAMAS: New Economic Affairs Minister Outlines First Priorities


B R A Z I L

B3 SA: S&P Affirms 'BB-' LongTerm ICR Then Withdraws Rating
FS AGRISOLUTIONS: $100MM Add-on Notes No Impact on Moody's B1 CFR
JSL SA: Discloses Approval-Merger of Fadel Shares
PETROLEO BRASILEIRO: Moody's Raises CFR to Ba1, Outlook Stable


C A Y M A N   I S L A N D S

CASTLELAKE AVIATION: Moody's Assigns 'Ba3' CFR, Outlook Positive


C O L O M B I A

COLOMBIAN HOLDING: S&P Affirms 'BB+' ICR, Outlook Stable


C O S T A   R I C A

INSTITUTO COSTARRICENSE: Fitch Rates USD350MM Unsec. Notes 'B'
INSTITUTO COSTARRICENSE: Moody's Rates New $350MM Unsec. Notes 'B1'


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Industries Again Question Severance Pay


M E X I C O

CREDITO REAL: Fitch Affirms 'BB' LongTerm IDRs, Outlook Negative
TRAFIGURA MEXICO: Mexico Cancels Fuel Import Permits


T R I N I D A D   A N D   T O B A G O

PETROLEUM CO: Settle Arbitration Dispute With AV Oil


U R U G U A Y

ANCAP: S&P Affirms 'BB+' Issuer Credit Rating, Outlook Stable


X X X X X X X X

LATAM: For Region's Airlines, Return to 2019 Is 'Not Good Enough'

                           - - - - -


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A R G E N T I N A
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BUENOS AIRES: Moody's Changes Outlook on Unsec. Ratings to Stable
-----------------------------------------------------------------
Moody's Investors Service affirmed the caa3 baseline credit
assessment and the Caa3 senior unsecured MTN program and senior
unsecured ratings (domestic and foreign currency) of the City of
Buenos Aires and changed the outlook to stable from negative.

RATINGS RATIONALE

RATIONALE FOR THE STABLE OUTLOOK

The change in outlook to stable from negative reflects Moody's
expectation of adequate operating and financial balances despite
the challenging operating environment for argentine issuers,
including the exposure to the sovereign's policymaking.
Notwithstanding the budgetary pressures caused by the COVID
pandemic, which Moody's views as a social risk, the deep economic
recession and the recent changes to the federal tax sharing regime,
which reduced the share of federal tax revenue that the city
receives from the federal government to 1.4% from 3.5%, the City of
Buenos Aires has been able to record operating surpluses aligned
with historical levels. For the second quarter of 2021 Buenos Aires
reported a gross operating balance of 16.2% of operating revenue,
which is in line with the 16.4% and 16.6% posted in the same period
of 2020 and 2019 respectively. The strong operating surpluses are
underpinned not only by a wealthy economic base but also by a track
record of prudent spending, long term planning and rapid
implementation of fiscal and budgetary measures to adapt to the
evolving economic conditions.

The stable outlook is supported by Moody's expectation of stable
credit metrics in 2021, which also reflects the strong governance
of the city and its ability to react to the various pressures it
faces. Moody's views that the combination of improved own source
tax collection and an economic recovery that Moody's expects will
lead to real GDP growth of 6.5% in 2021 will support a gross
operating surplus that, while lower than historical levels, is
still adequate for the rating category. Moody's expects the City to
report a gross operating balance of approximately 6.5% of operating
revenue in 2021, which compares favorably to the 3% registered in
2020. Moody's also expects debt metrics to remain stable given the
city's prudent debt management approach, which entails a
comfortable maturity profile, moderate exposure to foreign currency
debt and limited financing of fiscal deficits with indebtedness.
Moody's expects the city to record a ratio of debt to operating
revenue of about 60% in 2021, in line with the 58.3% registered in
2020.

RATIONALE FOR THE AFFIRMATION OF THE DEBT RATINGS

The affirmation of the caa3/Caa3 baseline credit assessment and
senior unsecured ratings incorporates Moody's expectation that the
City will continue to exhibit a strong credit profile relative to
peers even in the face of heightened systemic risks such as very
high inflation, exchange rate pressures and the sovereign's
intervention in the City's finances. Buenos Aires benefits from its
strategic importance, a wealthy and diversified economic base and
strong own source revenue. Importantly, Moody's also acknowledges
that the City is resilient to international capital market
restrictions because it does not face significant funding needs in
foreign currency until 2025 and it benefits from ample access to
the local capital market to fund current spending needs. Moreover,
given the City's liquidity position, affordability of debt service
payments and limited exposure to foreign currency debt maturities
in the near term, the issuer does not plan to undergo a debt
restructuring process like the rest of its local peers.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS

Moody's assesses the City of Buenos Aires' exposure to
environmental risks as moderately negative, reflecting the risk
that the loss of natural capital and physical climate risks pose to
the city.

Moody's overall assessment of social risk exposure is moderately
negative, balancing high levels of exposure to labor and income
related risks with moderate demographic, housing and health and
safety pressures. The City of Buenos Aires exhibits relatively low
poverty and unemployment levels, strong educational outcomes and a
generally widespread access to basic services.

The City of Buenos Aires' exposure to governance risks is neutral
to low, reflecting the city's overall stable institutional
framework, with a relatively defined revenue profile supported by a
federal tax sharing regime established by law. Buenos Aires' policy
credibility and effectiveness are underpinned by the city's
adherence to debt and investment policies that are neither notably
conservative nor lax. The City presents a strong budget management
approach, with prudent internal controls and fiscal planning,
conservative projections and, most importantly, long term planning.
Moreover, the city presents significantly good transparency and
disclosure practices.

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

Given that the City of Buenos Aires' Caa3 rating exceeds the
Government of Argentina's sovereign rating by one notch Moody's
does not anticipate an upgrade of the City unless there is an
upgrade of the sovereign because Moody's considers that the City's
creditworthiness is deeply linked to the country's systemic risks.

Given the stable outlook Moody's does not expect a downgrade in the
next 12 to 18 months. Nevertheless, because of the strong
macroeconomic and financial links between the Argentina government
and the City of Buenos Aires, a downgrade of Argentina's bond
ratings or a further systemic deterioration, or both, could exert
downward pressure on the ratings. Alternatively, increased
idiosyncratic risks such as a deteriorated liquidity position could
translate into a downgrade.

The principal methodology used in these ratings was Regional and
Local Governments published in January 2018.




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B A H A M A S
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BAHAMAS: New Economic Affairs Minister Outlines First Priorities
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RJR News reports that Bahamas' new minister of economic affairs,
Senator Michael Halkitis, has said his ministry's first order of
business will be to assess the current state of the country's
finances and seek to stabilize the economy.

The new ministry was announced during the official swearing-in
ceremony of the first nine Cabinet ministers of the newly-elected
Davis administration, according to RJR News.

The ministry will encompass financial services, industry and trade,
as well as focus on improving the country's ease of doing business
and digitization efforts, the report notes.

As reported in the Troubled Company Reporter-Latin America on Sept.
21, 2021, Moody's Investors Service has downgraded the Government
of The Bahamas' long-term issuer and senior unsecured ratings to
Ba3 from Ba2 and maintained the negative outlook.




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B R A Z I L
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B3 SA: S&P Affirms 'BB-' LongTerm ICR Then Withdraws Rating
-----------------------------------------------------------
S&P Global Ratings has affirmed and then withdrawn its 'BB-'
long-term and 'B' short-term issuer credit ratings on Brazil-based
B3 S.A. - Brasil, Bolsa, Balcao (B3) at the issuer's request. At
the time of the withdrawal, the outlook was stable and there were
no issue-level ratings on debt instruments issued or guaranteed by
B3 rated by S&P.

B3's former 'bbb+' stand-alone credit profile (SACP) incorporated
S&P's view of the company's strong business risk profile given its
dominant market position in Brazil, large scale, and diversified
revenue mix by business lines. S&P said, "We also viewed its
financial risk profile as minimal, stemming from our expectations
that B3 would maintain its debt-to-EBITDA ratio at or below its
target of 1.5x. Finally, our SACP reflected a negative adjustment
under our peer comparable analysis to incorporate our caution over
the potential impact that Brazil's still weak economy and political
developments could have on foreign investors' appetite. Moreover,
we believe operating conditions present more risks for B3 than for
other financial market infrastructure (FMI) companies around the
globe due to judicial disputes." Since 2010, B3 has received claims
from Brazil's Federal Revenue Service challenging the amortization
for tax purposes of goodwill generated upon the merger of
BM&FBOVESPA. In addition, in the second quarter of 2021, following
the recommendation of B3's legal advisors, the company revised the
risk classification of one of its legal contingencies from remote
to possible. The discussion involves B3's predecessor BM&F and
dates to January 1999. According to B3's latest financial
statement, the amount claimed in these civil proceedings is R$31
billion (about $6 billion). According to current accounting rules,
no provisions are required for this case at this moment.

S&P said, "Despite its 'bbb+' SACP, our ratings on B3 were limited
by those on Brazil (BB-/Stable/B), because the company was unable
to pass the stress test in order for us to rate it above Brazil.
This is because a sovereign default would likely trigger the
default of one or several of B3's clearing members. Our model
accounted for possible losses following a hypothetical default of
Brazil and the risks associated with clearing members having
insufficient resources to cope with its obligations."

  Ratings List

  NOT RATED ACTION; CREDITWATCH/OUTLOOK ACTION  
                                     TO        FROM
  B3 S.A - BRASIL, BOLSA, BALCAO

  Issuer Credit Rating              NR/NR    BB-/Stable/B


FS AGRISOLUTIONS: $100MM Add-on Notes No Impact on Moody's B1 CFR
-----------------------------------------------------------------
Moody's Investors Service comments that FS Agrisolutions Industria
de Biocombustiveis's corporate family rating, senior secured rating
and stable outlook remain unchanged following the company's
announcement that it has reopened its 10.0% senior notes due 2025.
This transaction will add-on $100 million to the $600 million notes
currently outstanding issued in December 2020 by FS Luxembourg S.a
r.l unconditionally and irrevocably guaranteed by FS. The notes
will have the same terms and conditions as the initial notes.

Net proceeds of the issuance will be used to reinforce financial
flexibility for investments starting in 2021-22. FS plans to build
its third mill which will take its crushing capacity to 1.97
billion liters starting in the 2023-24 harvest from 1.4 billion
liters in 2021-22. Moody's believes the total investment could
approach BRL2 billion which FS will fund with internal cash
generation and debt. Moody's believes the new investment will
benefit FS competitive position in the Brazilian corn ethanol
market by increasing its already leading scale in Mato Grosso and
it would place FS as a top 3 ethanol producer in Brazil, with a
production capacity similar to Atvos Agroindustrial Investimentos
S.A. (2.0 billion liters) and behind Raizen Energia S.A. (Baa3
stable)(3.8 billion liters) -- both sugarcane ethanol producers.

In June 2021, last twelve months, FS gross leverage reached 2.15x
and it would increase to 2.48x pro-forma for the $100 (BRL520
million) add-on. In June 2021, last twelve months, EBITDA was
BRL1.5 billion and Moody's expects it to reach BRL2.3 billion in
March 2022. FS has benefitted from a ramp-up of its crushing
capacity, which reached 1.4 billion liters in March 2021, and will
continue to benefit until the end of the current harvest from a
sharp increase in ethanol prices, and animal nutrition sales
covering over 48% of its corn costs. Moody's believes average
ethanol selling prices for FS will be around BRL3.2/liter, 70%
higher than last harvest. Animal nutrition sales will increase over
110% to BRL1.1 billion, mitigating the impact of higher average
corn cost which Moody's estimates at BRL51/bag, 79% higher. The
ramp-up in EBITDA places FS gross leverage well below Moody's
initial projections of 4.0x gross leverage in 2020-21 and 3.3x in
2021-22, which allows the company to fund the new investment with
its internal cash generation and additional debt while maintaining
an adequate leverage profile. Harvest-end 2020-21 Moody's believes
gross leverage will reach 2.0x with a debt balance of BRL3.9
billion, including operating leases and the proposed $100 million
issuance.

FS B1 rating incorporates its scale among the six largest ethanol
producers in Brazil, being the largest on corn feedstock. FS is a
low-cost producer with favorable access to corn feedstock and
located in a region with a high demand for animal nutrition,
co-product from the ethanol production process. The company is also
low-carbon footprint producer benefiting from a sustained demand
growth for biofuels. The company has increased quickly ramping up
production capacity to 1.4 billion liters in 2021 from just 265
billion liters in 2017 from its inaugural mill.

Constraining the rating is FS's high exposure to ethanol and corn
markets dynamics and the consequent susceptibility to sharp price
volatility, event risks, weather imbalances, and global trade
flows. The exposure to corn price volatility as an input is
partially mitigated by its animal nutrition business, since the
price of the dried distillers grains (DDG) is directly correlated
to those of corn and soymeal, the two most widely used inputs for
animal feed. Although both corn and ethanol prices are ultimately
linked to US dollar and international oil prices, the company is
also exposed to exchange rate volatility and timing mismatch on its
proposed dollar denominated debt. The company hedges 50% of the FX
exposure over the principal amount of the bond via the use of
currency derivatives. The ratings also incorporate the early
maturity stage of the firm, with ramp-up still underway.
Concentration of production in two plants and in a single region
exacerbates commodity risks, therefore the investment in a new
plant will be positive for operating diversification and a greater
scale in Mato Grosso.

FS liquidity is adequate with BRL1 billion in cash, including
BRL171 restricted cash, and BRL457 million in short-term debt. The
2025 notes are secured on a first priority basis by collateral
including the real estate property and equipment of Lucas do Rio
Verde and Sorriso units. Moody's expects the cash balance to
fluctuate during the harvest, but Moody's expects the cash and
restricted cash balance to cover all short-term maturities at the
end of each harvest. During peak working capital periods, Moody's
expects inventory levels to increase and FS has a minimal cash
target to cover at least the following three months of debt
obligations, general, sales and administrative expenses. At the
same time, working capital needs will fluctuate between BRL600
million to BRL900 million during the harvest. Gross leverage in
June 2021 was at 2.15x with a debt balance of BRL3.4 billion
(adding BRL3.0 billion in CPR-F, financial rural producer
certificate, to FS debt balance gross leverage would be 3.64x,
although this CPR-F is linked to a Total Return Swap with a balance
of BRL3.0 billion as of June which pays interest of 10.7% per
annum. This structure was utilized by FS to internalize proceeds
from the 2025 bond).

The stable outlook incorporates Moody's expectation that FS will be
able to increase EBITDA consistently in the next 2 harvests
bringing leverage down to around 4.0x in March 2021, 3.3x in March
2022, and production capacity of 1.1 billion liters in 2020-21 and
1.4 billion liters after that. The stable outlook also incorporates
Moody's expectation that the company will maintain an adequate
leverage as it engages in new expansion projects.

Ratings are constrained by the concentration and single line
commodity exposure of the business (corn ethanol and relating
co-products). An upgraded would require an increased
diversification of the business reducing geographic and commodity
risk exposure coupled with a robust financial position with
consistent positive free cash flow, adequate leverage and liquidity
profile. Quantitatively this would require Debt/EBITDA to remain
below 3.5x, Retained Cash Flow/Debt to remain above 15% and
EBITDA/Interest Expense to be sustained above 2.5x.

A downgrade could result from an inability to reduce leverage or a
deterioration of liquidity profile, including the deployment of
large investments that compromise short-term credit metrics.
Quantitatively this would be the case if Debt /EBITDA is sustained
above 4.5x, Retained Cash Flow/Debt remains below 5% or
EBITDA/Interest Expense remains below 1.5x.

Headquartered in Lucas do Rio Verde, state of Mato Grosso (MT),
Brazil, FS is one of the six largest ethanol producers in Brazil.
The company started operations in 2017 with 265 million liters of
corn ethanol capacity and presently has a 1.4 billion liters
capacity into its two plants in Lucas do Rio Verde (LRV) and
Sorriso, both cities in Mato Grosso (MT). The expansion will be
located in Primavera do Leste with 570 million liters capacity. The
company also commercializes co-products generated in the production
process, including DDG, wetcake, corn oil for livestock feed, and
electricity. FS is a limited liability company and was established
as a joint-venture between US based Summit Agricultural Group with
a 75% stake and Brazilian agricultural holding company, Tapajos
S.A. In the last twelve months ended in June 2021, FS generated net
revenue of BRL3.7 billion ($729 million, converted using the
average rate for the period), with a Moody's adjusted EBITDA margin
of 41.5%.


JSL SA: Discloses Approval-Merger of Fadel Shares
-------------------------------------------------
JSL S.A. ("JSL" or "Company"), in compliance with the provisions of
Sec 4 of art. 157 of Law No. 6.404/76, as amended ("Brazilian
Corporate Law"), and CVM Resolution No. 44, and in addition to the
relevant facts disclosed on March 15, 2021 and August 27, 2021,
informed its shareholders and the market in general that, all
matters related to the merger of shares issued by Fadel into JSL
were unanimously approved ("Merger of Shares") at the extraordinary
general meetings of JSL and Fadel Holding S.A. ("Fadel") held on
September 27, 2021.

As a result of the Merger of Shares, JSL's capital was increased in
the amount of R$39,458,210.75, to be subscribed and fully paid
through the transfer of shares issued by Fadel owned by Mr. Ramon
Alcaraz (the sole shareholder of Fadel apart from JSL) by Fadel's
management, with the consequent issuance of 6,440,000 new JSL
registered and without par value common shares, which will be
granted to Mr. Ramon Alcaraz, in the terms of the Protocol and
Justification.

As a result of the Merger of Shares, Fadel will become a wholly
owned subsidiary of JSL, simplifying the corporate structure of
JSL's subsidiaries, as well as promoting gains in synergy,
efficiency, and cost reduction. Furthermore, considering that the
reorganization was agreed upon in the context of the acquisition of
Fadel by JSL and the restructuring of JSL's management, the Merger
of Shares also represents an important alignment of interests
between the new Chief Executive Officer of JSL, Mr. Ramon Alcaraz -
who will become JSL's largest individual shareholder - and the
other JSL shareholders.

Also, in the context of the Merger of Shares, SIMPAR SA ("SIMPAR"),
the Company's controlling shareholder, and Mr. Ramon Alcaraz agreed
that a shareholders' agreement of JSL will be executed, which will
discipline, in summary, the following: (a) Mr. Ramon may not sell
his JSL shares for a period of 5 (five) years as of the acquisition
of control of Fadel by JSL (on November 17, 2020) ("Lock-upPeriod")
; and (b) SIMPAR will have the right of first refusal regarding the
JSL shares owned by Mr. Ramon after the end of the Lock-up Period
should he wish to sell them ("Shareholders' Agreement"). The
Shareholders' Agreement will be executed in due time, which will be
disclosed to the market.

JSL will timely disclose to its shareholders, by means of a notice
to shareholders, the information regarding the right of withdrawal
of dissenting shareholders from the Merger of Shares, including
terms and information for its exercise.

S&P Global Ratings, on Sept. 24, 2021, revised the outlook on its
ratings on Brazilian transportation company JSL S.A. to positive
from stable, and affirmed its 'B+' global scale and 'brAA' national
scale ratings.


PETROLEO BRASILEIRO: Moody's Raises CFR to Ba1, Outlook Stable
--------------------------------------------------------------
Moody's Investors Service upgraded the corporate family rating of
Petroleo Brasileiro S.A. - PETROBRAS (Petrobras) to Ba1 from Ba2.
The rating action was triggered primarily by the company's strong
operating and financial performance as well as its solid credit
metrics. Simultaneously, Moody's raised Petrobras' baseline credit
assessment (BCA) to ba1 from ba2. The rating outlook is stable.

Upgrades:

Issuer: Petrobras Global Finance B.V.

Gtd Senior Unsecured Shelf, Upgraded to (P)Ba1 from (P)Ba2

Gtd Senior Unsecured Regular Bond/Debenture, Upgraded to Ba1 from
Ba2

Issuer: Petrobras International Finance Company

Gtd Subordinate Shelf, Upgraded to (P)Ba2 from (P)Ba3

Gtd Senior Unsecured Shelf, Upgraded to (P)Ba1 from (P)Ba2

Gtd Senior Secured Shelf, Upgraded to (P)Baa3 from (P)Ba1

Gtd Senior Unsecured Regular Bond/Debenture, Upgraded to Ba1 from
Ba2

Issuer: Petroleo Brasileiro S.A. - PETROBRAS

Corporate Family Rating, Upgraded to Ba1 from Ba2

Pref. Shelf, Upgraded to (P)B1 from (P)B2

Subordinate Shelf, Upgraded to (P)Ba2 from (P)Ba3

Senior Unsecured Shelf, Upgraded to (P)Ba1 from (P)Ba2

Senior Secured Shelf, Upgraded to (P)Ba1 from (P)Ba2

Outlook Actions:

Issuer: Petrobras Global Finance B.V.

Outlook, Remains Stable

Issuer: Petrobras International Finance Company

Outlook, Remains Stable

Issuer: Petroleo Brasileiro S.A. - PETROBRAS

Outlook, Remains Stable

RATINGS RATIONALE

Moody's decision to upgrade Petrobras' ratings and BCA, a measure
of a company's standalone credit risk without government support
considerations, to Ba1 and ba1, respectively, was based primarily
on Petrobras' positive track record of improving operating and
financial performance that have resulted in solid credit metrics
for its rating category. In addition, Moody's expects that
Petrobras' operating and financial discipline will continue to
support cash generation, which will help sustain its current
capital structure despite higher payouts to shareholders. The
rating actions also considered the company's good liquidity
position and comfortable debt maturity profile as well as its ample
access to the global capital markets.

Petrobras' Ba1 rating is one notch above Brazil's Ba2 sovereign
rating based on the company's considerably stronger fundamental
credit profile than that of the sovereign, including Petrobras'
proven resilience to adverse economic and business conditions, such
that observed in 2020. In addition, Petrobras' corporate governance
somewhat protects it from government interference.

Therefore, Moody's considers that there is low likelihood that the
company would default as a consequence of sovereign credit distress
or default because of i. Petrobras' solid financial metrics and
capital structure, ii. its small reliance on domestic funding
sources, iii. its limited exposure to foreign currency risk given
the low and declining proportion of refining business of the total,
and iv. the fact that over 30% of its sales are export related.

Petrobras' Ba1 rating and ba1 BCA are further supported by i. the
company's sizable production and reserves, ii. its solid cash
generation vis-a-vis debt burden, and iii. its dominance in the
Brazilian oil industry. Petrobras' ratings are constrained
primarily by i. Brazil's sovereign rating, ii. business plan
execution risk, and iii. the potential of government interference
contrary to the business and financial interest of the company.

Petrobras' Ba1 ratings also consider Moody's joint-default analysis
for the company as a government-related issuer; Petrobras' ratings
reflect the assumption for moderate support and dependence from the
Government of Brazil (Ba2 stable) based on the government's weak
fiscal accounts but limited dependence on foreign currency funding
and the high level of diversification of the Brazilian economy.
Petrobras' corporate governance has improved since the beginning of
the Lava Jato investigations in early 2014: the company has secured
its best new corporate practices with some new managing rules,
standards, and procedures in its bylaws, most recently updated in
April 2019.

Petrobras' liquidity position is good. Moody's expects that the
company's cash generation in the next two years will be more than
enough to cover mandatory cash obligations plus annual capital
expenditures of about $12 billion, as per management's guidance,
and dividends. The company also counts on $8.8 billion in committed
revolving credit facilities, most of which contracted with
international financial institutions, which further strengthen its
liquidity position.

The stable outlook on Petrobras' ratings reflects Moody's view that
the company's credit profile will remain mostly unchanged in the
foreseeable future. The stable outlook also reflects the stable
outlook on Brazil's sovereign rating.

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

An upgrade of Petrobras' Ba1 rating is unlikely in the medium term
given that Moody's expects the company's credit metrics to remain
relatively stable in the foreseeable future and because it is
unlikely that Petrobras would be rated more than one notch above
Brazil's sovereign rating. However, stable credit metrics coupled
with evidence of significant lower exposure to adverse government
influence or an upgrade of Brazil's sovereign rating could trigger
positive actions on the rating of Petrobras.

Petrobras' ratings could be downgraded if i. there is a
deterioration in its operating performance or external factors that
increase liquidity risk or debt leverage from the current levels in
a sustainable manner, ii. if the quality of the company's corporate
governance declines, raising its vulnerability to adverse
government interference, or iii. if there is a downgrade of
Brazil's sovereign rating.

The methodologies used in these ratings were Integrated Oil and Gas
Methodology published in September 2019.

Petrobras is an integrated energy company, with total assets of
$188 billion and last-twelve-month revenue of $63.8 billion as of
June 2021. Petrobras dominates the Brazilian oil and natural gas
production as well as the country's refining and fuel marketing
sectors. The company also holds a stake in petrochemicals and power
plants. The Brazilian government directly and indirectly owns about
36.75% of Petrobras' outstanding capital stock and 50.5% of its
voting shares.



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CASTLELAKE AVIATION: Moody's Assigns 'Ba3' CFR, Outlook Positive
----------------------------------------------------------------
Moody's Investors Service assigned a Ba3 Corporate Family Rating to
Castlelake Aviation Finance DAC (Castlelake Aviation).
Concurrently, Moody's assigned a Ba3 rating to the proposed term
loan to be issued by Castlelake Aviation One DAC, a wholly-owned
subsidiary of Castlelake Aviation. Castlelake Aviation and
Castlelake Aviation One DAC have positive outlooks.

Assignments:

Issuer: Castlelake Aviation Finance DAC

Corporate Family Rating, Assigned Ba3

Issuer: Castlelake Aviation One DAC

Senior Secured Term Loan, Assigned Ba3

Outlook Actions:

Issuer: Castlelake Aviation Finance DAC

Outlook, Assigned Positive

Issuer: Castlelake Aviation One DAC

Outlook, Assigned Positive

RATINGS RATIONALE

Castlelake Aviation's Ba3 CFR reflects Moody's expectation of its
improving profitability, good equity capital and stable fleet
utilization, which are likely to benefit from better prospects of
domestic travel. Castlelake Aviation's fleet is primarily comprised
of narrow-body aircraft (approximately 65% at inception) which is
typically used in domestic travel. Moody's currently expects that
global air passenger demand will recover toward 2019 levels through
2023, but the recovery will be uneven due to varying vaccination
rates and may be delayed by the spread of COVID-19 variants. These
credit strengths are tempered by high lessee concentration and
reliance on secured debt for funding, although the company has
plans to shift its funding to a greater composition of unsecured
debt. AirAsia Berhad, a Malaysian airline, comprises approximately
29% of Castlelake Aviation's book value, making Castlelake Aviation
vulnerable to further deferral requests as domestic travel is
recovering slower in South East Asia than other regions. Moody's
expects, however, that Castlelake Aviation will benefit from its
management and servicing relationship with Castlelake Aviation
Holdings (Ireland) Limited, a wholly owned subsidiary of
Castlelake, L.P. (together, "Castlelake"), which has a long-term
history of placing aircraft and managing relationships across the
world. Moody's also anticipates that Castlelake Aviation will
maintain a good liquidity position supported primarily by good free
cash flow generation and a healthy level of retained cash.

Moody's said that corporate governance was a key consideration in
assessing Castlelake Aviation's creditworthiness. Castlelake is a
much larger aircraft aviation manager platform which currently
manages and services 352 aircraft (at June 1, 2021) across the
globe and will be servicing, marketing and allocating aircraft to
Castlelake Aviation from its many platforms. Given its long-term
history and broad global relationships, Moody's expects that
Castlelake Aviation will benefit from the management and servicing
relationship with Castlelake. However, the ownership structure
could also lead to potential conflicts in terms of how aircraft are
distributed between Castlelake's managed entities and the priority
in which these aircraft are serviced when needed.

The Ba3 term loan rating at Castlelake Aviation One DAC is based on
the application of Moody's Loss Given Default methodology and
model, and reflects the fact that the secured debt constitutes the
preponderance of debt.

The positive outlooks reflect Moody's expectation that Castlelake
Aviation will benefit from gradually improving domestic travel
globally, and that currently anticipated liquidity sources allow
for some flexibility to manage the existing uncertain operating
environment. The positive outlooks also reflect Castlelake
Aviation's plan to shift its debt funding more towards unsecured
debt over time, with unencumbered aircraft emerging as an
additional source of liquidity.

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

The ratings could be upgraded if Castlelake Aviation decreases its
reliance on secured debt such that its secured debt to tangible
managed assets is less than 50%, demonstrates solid debt maturities
management while also maintaining consistent profitability as
defined by net income to total assets of above 1.0% (not including
gain on sale of the aircraft), and debt / equity leverage remains
below 3.0x.

The ratings could be downgraded if Castlelake Aviation suffers from
a deterioration in earnings such that profitability as defined by
net income to total assets is sustained below 1% or if overall
liquidity declines, including funds from operation being below 6%
of total debt, or if it disposes of aircraft assets on unfavorable
terms.

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

Incorporated in Cayman Islands, Castlelake Aviation Finance DAC
(Castlelake Aviation) is a newly formed entity that will specialize
in leasing of commercial aircraft globally. Castlelake Aviation
will be ultimately be owned by funds and accounts managed by
Castlelake, an aviation platform with a fleet of 352 aircraft with
assets of $20.2 billion at June 1, 2021. Upon the date the proposed
financing transactions are anticipated to close, Castlelake
Aviation will have 71 aircraft in its portfolio at $2.6 billion in
total assets.




===============
C O L O M B I A
===============

COLOMBIAN HOLDING: S&P Affirms 'BB+' ICR, Outlook Stable
--------------------------------------------------------
S&P Global Ratings affirmed its 'BB+' issuer credit and issue-level
ratings on Colombia-based investment holding company Grupo de
Inversiones Suramericana S.A. (Grupo Sura).

The stable outlook in the next 12-24 months mirrors that on
Colombia. S&P said, "Moreover, the outlook reflects our
expectations that dividends from subsidiaries will continue
covering Grupo Sura's operating and financial needs, maintaining
cash flow adequacy ratio at about 2.0x. In addition, we don't
expect the company to take additional debt, while value should move
in tandem with market conditions leading to the LTV ratio below
20%."

As of June 2021, Grupo Sura and its main subsidiaries have had a
solid financial performance and a clear recovery from the
pandemic-hit 2020. To cope with volatile economic conditions, the
group's financial businesses have been able to take actions to
maintain their strong capital base by reducing provisions, and
increasing premiums and commissions. Grupo Sura's revenue growth of
14.6% as of June 2021 was mainly due to a boost in revenue from
Bancolombia (accounted according to the equity method). This in
turn stemmed from the bank's lower provisions than last year as the
economy recovers. Sura AM's operating revenue was up 21% mainly
because of higher commissions and legal reserves income. These
factors have mitigated the impact of Suramericana's about 20%
negative technical result (retained earnings premiums minus
retained claims, commissions, services rendered, other operating
expenses and impairment) year over year. The latter mainly resulted
from elevated COVID-19 claims, despite a 12% retained earned
premium growth. The food segment, Nutresa, continues to benefit
mainly from demand in its main categories (cold cuts, chocolates
and coffee) in the Colombian market. This enabled Nutresa's revenue
in the first half of 2021 to increase 8.5% compared with the first
half of 2020. Grupo Argos' cement and energy segments recovered
solidly and financial results rose 21.5% year over year. S&P
expects a solid performance to continue across all of Grupo Sura's
segments for the next two two years as the recovering global
economy boosts demand in the industries in which the company
operates. This leading to a dividend of about $220 million and $290
million for 2022 and 2023, respectively, more than enough to cover
Grupo Sura's operating and financial expenses, and to preserve an
average cash flow adequacy ratio about 2.0x for the following
years.

As of June 2021, portfolio value increased to $6.6 billion from
$6.2 billion in June 2020, a 6.5% year–over–year increase. This
mainly resulted from market volatility stemming from a global
economic recovery as vaccines are rolled out, economic
sectorsresume activity, and demand starts to grow again, which
boosted market value of Grupo Sura's subsidiaries. Moreover, S&P
doesn't expect the company to incur additional debt or major
investments in the following years, maintaining LTV below 20%.

Grupo Sura used proceeds from the bond issuance of August 11, 2020,
of around $300 million, due between 2023 and 2040 (around COP1
billion) to redeem its $300 million bond maturing in May 2021,
preserving liquidity and considerablyy reducing refinancing
pressures. Moreover, S&P doesn't expect the company to take on
additional debt. Grupo Sura will continue to refinance its debt and
having a comfortable maturity schedule for the following years,
with the largest maturity of about $496 million due 2026. Grupo
Sura faces $73 million of debt maturities between the first and
second quarters of 2022. Currently, S&P doesn't consider that Grupo
Sura's refinancing risk is a significant rating factor because the
company has a long track record of accessing bank credit
facilities, as well as a generally high standing in credit markets.
Also, the company has a prudent risk management to address
operating risks and to mitigate cash flow volatility. In addition,
Grupo Sura's flexibility on dividend payments, solid relationship
with banks, and $1.8 billion available in unsecured credit lines
will help maintain a sound capital structure and preserve
liquidity.




===================
C O S T A   R I C A
===================

INSTITUTO COSTARRICENSE: Fitch Rates USD350MM Unsec. Notes 'B'
--------------------------------------------------------------
Fitch Ratings has assigned a 'B'/'RR4' rating to Instituto
Costarricense de Electricidad y Subsidiarias' (ICE) proposed
sustainability-linked senior unsecured notes issuance of up to
USD350 million. The notes will mature in 2031, and the company
expects to use the majority of the net proceeds from the sale of
the notes to repay a portion of the 2021 notes and any remaining
proceeds for general corporate purposes, which may include the
refinancing of other indebtedness.

Fitch currently rates ICE's Long-Term Foreign Currency Issuer
Default Rating (IDR) and Local Currency Long-Term IDR 'B'. The
Rating Outlook for both ratings is Negative.

The ratings reflect ICE's strong linkage to the sovereign of Costa
Rica (B/Negative), given its strategic importance to the country
and the potentially significant negative socio-political and
financial implications for the sovereign of any financial distress
at the company level. Additionally, the ratings incorporate the
company's diversified asset portfolio, moderate capex program and
its strong market share position in both the electricity and the
telecommunications business.

KEY RATING DRIVERS

Strong Linkage to the Sovereign: ICE's ratings reflect its strong
linkage with the sovereign of Costa Rica, as ICE is an autonomous
entity owned by the Costa Rican State. As per Fitch's Government
Related Entity Criteria (GRE Criteria), ICE's IDRs are equalized
with Costa Rica's sovereign rating, given that ICE is a strategic
asset to the country due to its essential role in the Costa Rican
electricity market and is the incumbent participant in the
telecommunications sector, which is an incentive for the government
to support the company if necessary. Furthermore, Fitch evaluates
that an event of default at ICE would have a very strong negative
impact for the sovereign on the availability and cost of funding.

Sustainability-Linked Feature: The proposed notes' terms and
conditions include a potential coupon step-up of 25bp to be
triggered if ICE fails to achieve its Sustainability Performance
Target (SPT) of implementing the operation of 502,000 electricity
smart meters by Dec. 31, 2025, equivalent to an increase of 80.4%
from FY 2020 baseline of 278,312 smart meters. This SPT is in line
with ICE's strategic plan of reaching 100% smart meter coverage by
2035.

Pandemic Impact Manageable: ICE's revenues decreased 5.5% in 2020,
as coronavirus-related lockdown measures drove Costa Rica's
electricity demand to decline 2.8% in 2020 compared with 2019. In
terms of profitability, ICE's EBITDA (pre-IFRS 16) was CRC508
billion with a margin close to 36.8% as the company managed to
reduce operating costs by 8.4% and expenses by 9.2%, mainly related
to the electricity business. As of LTM June 2021, EBITDA was CRC527
billion and EBITDA margin of 39.4%.

For 2021, Fitch estimates revenue will have a modest increase,
mostly reflecting a moderate improvement from telecommunications,
and EBITDA close to CRC460 billion with a margin close to 33%. The
reduction in EBITDA and EBITDA margin reflects lower tariffs
approved by the regulator (Autoridad Reguladora de los Servicios
Públicos - ARESEP).

Peak Leverage in 2021: ICE's leverage, calculated as total
debt/EBITDA (pre-IFRS 16), as of LTM June 2021 was 5.7x. In
previous years, the company's indebtedness was driven by aggressive
capex in the electricity sector. However, adjustments in expansion
plans have led to a reduction in investment requirements and less
pressure on the leverage metric.

Fitch's base case considers that ICE's leverage will be close to
6.5x in 2021, reflecting lower EBITDA as 2021 tariff adjustment
excluded CRC92 billion in operating cost and expenses; then
strengthens to 5.2x in 2023 on pre-approved tariffs increases and
debt amortizations. Fitch estimates that capex levels for the years
2021 to 2023 will be around CRC154 billion annually on average,
which is equivalent to about 11% of revenues, and will be funded
with a combination of internally generated cash and debt.

High Exposure to Regulatory and Political Interference: ICE is
exposed to the risk of regulatory interference due to the lack of
transparency and clarity in the processes for determining tariffs
adjustment schemes in previous years. The company proposes
electricity tariffs for end-users to the regulator annually.
Electricity tariffs are set using two mechanisms: through the
quarterly adjustment of variable costs of electric generation
(energy imports and fuel), and the ordinary tariff review that
considers the company's operating costs. For 2021, the regulator
approved a reduction of 17.9% and 14.1% on generation and
distribution tariffs respectively, and an increase of 1.5% on
transmission services; partially reflecting ICE's lower operating
costs in 2020.

Diversified Asset Portfolio: ICE is a vertically integrated
monopoly in the electricity industry and an incumbent player in the
telecommunications industry in Costa Rica. As of June 2021, ICE
accounted for 72% of the National Electric System's installed
capacity and produced 68% of the total electricity consumed in
Costa Rica. ICE's mobile market share in terms of subscribers was
approximately 41% according to most recent data from
Superintendencia de Telecomunicaciones (SUTEL). The ratings reflect
the company's low business risk resulting from its business
diversification and positive characteristics as a utility service
provider.

DERIVATION SUMMARY

ICE's linkage to the sovereign is similar to peers such as Comision
Federal de Electricidad (CFE; BBB-/Stable) and Centrais Eletricas
Brasileiras S.A. (Eletrobras; BB-/Negative). These companies have
strong linkages to their respective sovereigns given their
strategic importance to each country and the potentially
significant negative socio-political and financial implications of
any financial distress at these companies.

ICE's ratings reflect its strong linkage to Costa Rica's sovereign
rating, which stems from the company's government ownership and the
implicit and explicit expectation of government support. The
ratings reflect the company's diversified asset portfolio, moderate
capex program, and its monopoly position in the electricity
industry and strong market share position in the telecommunications
business. ICE has a relatively lower scale of operations compared
with its peers. Adjusted leverage as of LTM June 2021 of 5.7x was
higher than CFE's 4.9x and Eletrobras' 5.6x.

KEY ASSUMPTIONS

-- Up to USD350 million notes issuance to refinance to repay a
    portion of the 2021 notes and any remaining proceeds for
    general corporate purposes;

-- ICE remains important to the government as a strategic asset
    for the country;

-- In 2021, electricity tariff reduced by average of 14.1%;

-- Electricity demand grows by 5% in 2021;

-- Leverage close to 6.5x in 2021; then strengthens to 5.2x in
    2023 on pre-approved tariffs adjustments;

-- ICE's Telco market share remains strong;

-- The recovery analysis assumes that under a hypothetical
    bankruptcy or debt restructuring process ICE would be a going
    concern and Fitch has assumed a 10% administrative claim with
    a going-concern EBITDA close to CRC460 billion an EV multiple
    of 5.0x;

-- The Recovery Rating is limited, however, to 'B'/'RR4' as Costa
    Rica is categorized as Group D, per Fitch's Country-Specific
    Treatment of Recovery Ratings Criteria, which caps the
    Recovery Ratings at 'RR4'.

RATING SENSITIVITIES

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

-- Upgrade on the sovereign's ratings.

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

-- A sovereign downgrade;

-- A perception of reduced linkage between ICE and the sovereign
    and a material weakening of ICE's operating and financial
    profile;

-- Regulatory intervention that negatively affects the company.

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: ICE's liquidity position is adequate with a
cash and equivalents balance of CRC400 billion plus short-term
investments as CRC181 billion as of June 2021 and debt of CRC2.999
billion. ICE has historically financed capex with owned resources
and new debt, where debt related to electricity projects represents
approximately 90% and the rest to the Telco segment. The moderation
of the capital investment plan, mainly in the electricity sector,
plus no dividend distributions should derive in positive FCF
generation through the cycle. Cash and proceeds from the proposed
notes issuance are expected to be used to refinance short-term
maturities of CRC310 billion.

ISSUER PROFILE

ICE is a government-owned, vertically integrated monopoly in the
electricity industry, in charge of developing, constructing and
operating an electric power generation, transmission and
distribution system and the incumbent player in the
telecommunications industry.

ESG CONSIDERATIONS

ICE has an ESG Relevance Score of '4' for Governance Structure and
Group Structure due to ownership concentration, as a majority
government-owned entity and due to the inherent governance risks,
that arise with a dominant state shareholder. This has a negative
impact on the credit profile, and is relevant to the rating[s] in
conjunction with other factors.

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


INSTITUTO COSTARRICENSE: Moody's Rates New $350MM Unsec. Notes 'B1'
-------------------------------------------------------------------
Moody's Investors Service assigned a B1 rating to Instituto
Costarricense de Electricidad (ICE) (CFR B1 negative) proposed
senior unsecured global notes (Notes), which will be labeled as a
Sustainability-Linked Bond, of up to $350 million due in 2031. The
majority of the net proceeds from the sale of the notes will be
used to repay a portion of the 2021 Notes and for general corporate
purposes, which may include the refinancing of other indebtedness.

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

Assignments:

Issuer: Instituto Costarricense de Electricidad (ICE)

Senior Unsecured Regular Bond/Debenture, Assigned B1

RATINGS RATIONALE

The assigned B1 senior unsecured rating for the new notes is in
line with ICE's B1 Corporate Family Rating, which reflects the
company's consolidated credit profile and considers that the
proposed notes will be direct obligations of ICE, ranking
pari-passu with its current and future debt obligations.

ICE's B1 ratings reflect its status as government related issuer
(GRI), wholly owned by the Government of Costa Rica (B2 negative).
ICE's Baseline Credit Assessment (BCA) , which is a representation
of the group's standalone creditworthiness is b1, which captures
its role as an autonomous government entity with a dominant
position as the largest vertically integrated utility in the
country, benefiting from an overall supportive regulatory framework
with independent oversight and revenue diversification. The rating
further reflects ICE's relatively strong financial metrics, as
measured by an average cash interest coverage of 2.5x and cash flow
from operations (CFO) pre-working capital (WC) debt of 13% over the
last three years (LTM as of June 2021).

The rating incorporates strong credit linkages between ICE and the
government of Costa Rica, being somewhat constrained by the
sovereign's relatively weaker credit quality. Although the
government does not guarantee any of ICE's debt obligations,
Moody's believes that there is a "high" likelihood of government
extraordinary support in the case of financial distress of the
company, due to reputational risks given the company's status as a
major government-owned entity and its strategic-economic importance
to the country. Furthermore, Moody's views that the government of
Costa Rica and ICE exposed to the same domestic revenue base and
other common risk factors, as captured by the "high" default
dependence assigned to ICE. The negative rating outlook of ICE is
in line the negative outlook of the rating of the Government of
Costa Rica. It also incorporates Moody's expectation that the
operating environment for ICE will remain supportive with no
material negative interference that would affect the company's
financial standing over the next 12-18 months.

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

In light of the current negative outlook on the ratings of the
Costa Rican government, Moody's do not expect upward pressure on
ICE's ratings.

A downgrade of the Government of Costa Rica could lead to a
negative rating action for ICE. Additionally, if ICE's indebtedness
increases significantly above anticipated levels such that the
credit metrics deteriorate and cash flow interest coverage falls
below 2.0x or the ratio of retained cash flow (RCF) to debt
declines below 6% for an extended period, it also could generate
negative pressures on the ratings.

The methodologies used in this rating were Regulated Electric and
Gas Utilities published in June 2017.

Headquartered in San Jose, Costa Rica, Instituto Costarricense de
Electricidad (ICE) is a government-owned vertically integrated
electric utility and an integrated telecommunications services
provider. In the last twelve months as of June 2021, ICE reported
consolidated revenues of around ¢1,335,793 million Colones and
total debt of around ¢3,042,194 million Colones.




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

DOMINICAN REPUBLIC: Industries Again Question Severance Pay
-----------------------------------------------------------
Dominican Today reports that Dominican Republic Industries
Association (AIRD), president Celso Juan Marranzini, believes that
reforms related to the dynamics of companies should be worked on in
an integral way.

The Labor Code, the severance payment, the reform of the social
security model and the Fiscal Pact are among the most sensitive for
the private sector.  All three are discussed at the national
dialogue table recently convened by President Luis Abinader to
advance by 12 points, the report notes.

For Marranzini, the reform of labor, pension and tax regulations
must be comprehensive, the report relays.

"We must work on these reforms as something integral, seeing the
development of the country ahead and that times have changed," said
the representative of the industries, the report adds.

                  About Dominican Republic

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

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

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

Fitch Ratings on Jan. 18, 2021, assigned a 'BB-' rating to
Dominican Republic's USD1.5 billion 5.3% notes due Jan. 21, 2041.
Concurrently, the Dominican Republic reopened its 2030 4.5% notes
for an additional USD1.0 billion, which Fitch rates 'BB-', raising
the total outstanding amount of the 2030 notes to USD2.0 billion.

Standard & Poor's, on December 4, 2020, affirmed its 'BB-'
long-term foreign and local currency sovereign credit ratings on
the Dominican Republic. The outlook remains negative. S&P also
affirmed its 'B' short-term sovereign credit ratings. The negative
outlook reflects S&P's view that it could lower the ratings on the
Dominican Republic over the next six to 18 months, given the
severe impact of the COVID-19 pandemic on the sovereign's already
vulnerable fiscal and external profiles, as well as the potential
for a weaker-than-expected economic recovery.

Moody's credit rating for Dominican Republic was last set at Ba3
with stable outlook (July 2017). Fitch's credit rating for
Dominican Republic was last reported at BB- with negative outlook
(May 8, 2020).




===========
M E X I C O
===========

CREDITO REAL: Fitch Affirms 'BB' LongTerm IDRs, Outlook Negative
----------------------------------------------------------------
Fitch Ratings has affirmed Credito Real, S.A.B. de C.V., SOFOM,
E.N.R.'s (Credito Real) Long-Term (LT) Foreign and Local Currency
Issuer Default Rating (IDRs) IDRs at 'BB' and Short-Term Foreign
and Local Currency IDRs at 'B'. The Rating Outlook on the Long-Term
rating is Negative. Credito Real's global senior unsecured debt and
perpetual bonds ratings were also affirmed at 'BB' and 'B+',
respectively.

Fitch has also affirmed Credito Real's Long- and Short-Term
National Scale ratings at 'A(mex)'/'F1(mex)'. The Outlook on the
Long-Term rating is Negative.

KEY RATING DRIVERS

On Sept. 10, 2021, Credito Real's board of directors approved the
sale of the SME portfolio owned by CREAL Arrendamiento S.A. de C.V.
(19.5% of Credito Real's total loans as of June 2021) and the sale
of its controlling interest in Credito Real USA Finance, LLC (5.0%
of total loan portfolio). Resources are expected to be used to
repurchase market debt and to reduce liquidity risks from the
upcoming maturity of the CHF170 million bond in February 2022 if
the entity is not able to refinance in the global market.

In Fitch's view, the plans have a good probability of occurrence in
the coming six months, and if properly executed the approved plans
could be positive for the overall performance and reduce on-balance
sheet risks, which could offset partial losses in business
diversification from announced sales. If timely executed, the
proposed strategy may significantly reduce refinancing risks and
improve the leverage, asset quality and profitability prospects of
the company, which could lead to an Outlook stabilization.

However, if the execution of approved sales or the materialization
of additional financing strategies shared with the agency are not
timely enough to mitigate short-term refinancing risks arising from
a deteriorated market sentiment toward the payroll loans to
public-sector employees industry, the ratings could be downgraded.
Fitch foresees a chance of a material deterioration of the
refinancing and liquidity risk under this scenario, which explains
the Negative Outlook since this event could trigger further rating
downgrades.

At 1H21, the adjusted NPL's ratio including charge-offs, the amount
owed by distributors and foreclosed assets was 14.5% while the
pre-tax income to average assets was low at 0.5%. Tangible leverage
stood at 5.6x on the same date.

SENIOR DEBT

The senior global debt rating is at the same level as Credito
Real's 'BB' rating, as the likelihood of a default of the notes is
the same as for the company.

HYBRID SECURITIES

Credito Real's hybrids securities are rated two notches below its
LT IDR to reflecting the increased loss severity due to its deep
subordination and heightened risk of non-performance relative to
existing senior obligations.

RATING SENSITIVITIES

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

-- A substantial deterioration of its funding and liquidity
    profile, and material increased in refinancing risk could
    trigger a downgrade;

-- A downgrade of Credito Real's ratings could result from
    further and sustained deterioration on asset quality from
    those recently reported and if the company does not show a
    clear recovery trend in profitability metric above 2%;

-- A total debt-to-tangible equity ratio consistently above 7.0x.

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

-- The Outlook could be revised to Stable if the company is able
    to reverse deteriorations in profitability rebuilding metrics
    toward 2%, asset quality metric stabilizes, and if the
    pressures on the funding and liquidity profile decrease due to
    the resources derived from the sale of assets;

-- The current Negative Outlook makes an upgrade highly unlikely
    in the near term;

-- Over the medium term, the ratings could be upgraded if Credito
    Real´s financial profile metrics strengthen significantly and
    in a sustained manner while preserving its strong company
    profile.

SENIOR DEBT and HYBRID SECURITIES

-- The company's debt ratings would mirror any changes on those
    of Credito Real's IDRs. The senior unsecured debt ratings
    would continue to be aligned with the company's IDRs, while
    the hybrid securities would remain two notches below.

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.

SUMMARY OF FINANCIAL ADJUSTMENTS

Pre-paid expenses and other deferred assets were reclassified as
other intangibles and deducted from capital. Results from
investments in associates were reclassified as operating income.
Income from leasing and factoring operations were reclassified as
interest income. Its operational lease portfolio and factoring
operations were included in gross loans, with the portion of
delinquent leases classified as impaired loans. The coupons of the
perpetual notes were reclassified as interests.

ESG CONSIDERATIONS

Credito Real, S.A.B. de C.V., Sociedad Financiera de Objeto
Multiple, Entidad No Regulada has an ESG Relevance Score of '4' for
Exposure to Social Impacts due to its exposure to a shift in social
or consumer preferences or changes in government regulation or
contract agreements on the payroll deduction loans products, which
has a negative impact on the credit profile, and is relevant to the
rating[s] in conjunction with other factors.

Credito Real, S.A.B. de C.V., Sociedad Financiera de Objeto
Multiple, Entidad No Regulada has an ESG Relevance Score of '4' for
Customer Welfare - Fair Messaging, Privacy & Data Security due to
its exposure to reputational and operational risks as its payroll
deduction loans business targets government employees and
dependencies offering relatively high interest rates, which has a
negative impact on the credit profile, and is relevant to the
rating[s] in conjunction with other factors.

Credito Real, S.A.B. de C.V., Sociedad Financiera de Objeto
Multiple, Entidad No Regulada has an ESG Relevance Score of '4' for
Financial Transparency due to the issuer's approach for reporting
and registering accrued interest and the loan portfolio differ from
practices disclosed by other payroll lenders, and Credito Real's
public information disclosure is weaker than international best
practices and lack sufficient detail in some accounts albeit Fitch
perceives the company has made some positive steps. This has a
negative impact on the credit profile, and is relevant to the
rating[s] in conjunction with other factors.

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


TRAFIGURA MEXICO: Mexico Cancels Fuel Import Permits
----------------------------------------------------
Sergio Meana at Argus Media reports that Mexico's energy ministry
cancelled all five of commodity trader Trafigura's import permits
that would have allowed it to continue to import refined products
through 2038.

The permits were worth up to 381.5bn l (100.8bn USG) of regular and
premium gasoline, diesel, and jet fuel from 2018 to 2038 -- at
almost 5 billion USG/yr, according to Argus calculations, Argus
Media.

One of the five permits to import up to 63.3bn l of diesel through
October 2038 has been suspended and is in the process of being
terminated, based on the latest list posted by the energy ministry
(Sener), the report relays.   Trafigura's four other permits were
labeled as suspended, and in the process of being revoked, the
report notes.  They are worth 127.2bn l of diesel, 63.6bn l of
regular gasoline, 63.6bn l of premium gasoline, and 31.8bn l of jet
fuel, the report discloses.

The cancellation comes after energy minister Rocio Nahle recently
said Pemex would not be involved with any company that has been
accused of corruption without naming any firms directly, the report
says.

Trafigura has been involved in a years-long corruption
investigation in Brazil, the report relays.

"We see no valid basis for the suspension of import permits for
Trafigura Mexico," the company told Argus.  "Trafigura complies
with applicable laws and regulations in the jurisdictions in which
it operates, including Mexico," the company added.

Competing trader Vitol reached an agreement in May in the U.S. to
pay nearly $164 million in fines and restitution to settle charges
that it won contracts by paying millions of dollars in bribes to
officials in Brazil, Ecuador and Mexico, the report notes.  Mexico
has said it launched its own investigation as well, the report
discloses.

The Mexican government has promised to end corruption in Mexico,
but there have been few high-profile formal charges or convictions,
the report relays.  It is also on a drive to gain back market share
for state-owned Pemex that it has lost since the energy reform of
2014, the report says.

Government efforts have included increasing regulation of
private-sector participants, including cancelling many fuel import
permits and the closure of fuel import and storage terminals for
what market participants complain are paperwork violations, the
report discloses.

US investors have complained with the White House, arguing that
some policies and laws violate the US-Mexico-Canada free trade
agreement (USMCA), the report notes.

A spokesperson for the energy ministry was not immediately
available to respond to a request for comment.

Private-sector companies have fuel storage projects worth at least
$1.5 billion under development, the report notes.  Investors have
added at least 8.2mn billion of fuel storage capacity at 12
terminals since Mexico's 2014 energy reform, the report adds.




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

PETROLEUM CO: Settle Arbitration Dispute With AV Oil
----------------------------------------------------
Trinidad Express reports that the Petroleum Company of Trinidad and
Tobago will not be going to court to try to set aside the results
of an arbitration with A&V Oil and Gas.

Instead, it has settled the arbitration dispute with A&V Oil and
Gas Ltd (AV Oil), avoiding the payment of millions of dollars in
damages, its successor company Trinidad Petroleum Holdings Ltd said
in a statement, according to Trinidad Express, the report notes.

The company advised that it will re-commence doing business with AV
Oil, stating that it is entering into an Enhanced Production
Service Contract (EPSC) with AV Oil for the purchase of crude, the
report relays.  It said the settlement was rooted in the partial
award delivered on June 11, 2021 by the arbitration panel in favour
of AV Oil, the report discloses.

It noted that in summary, the arbitrators-headed by former
president of the Caribbean Court of Justice Sir Dennis Byron, found
that Petrotrin had failed to establish that AV Oil was engaged in
seal-tampering or any other inappropriate practices in the process
of the delivery of crude oil to Petrotrin from April 2016 to July
2017, the report notes.

The company outlined why it went against senior counsel Deborah
Peake's advice for Petrotrin to move quickly to file an application
in the High Court to set aside the results of an arbitration
between A&V Oil and Gas and Petrotrin that could cost the State
company close to $1 billion, the report discloses.

The Petroleum Company stated to assist with its considerations, two
legal opinions were sought, the report says.

It was the opinion of these senior specialist attorneys that
further litigation was not advisable, the chances of success were
low, and settlement of the matter should be pursued, the statement
said, the report notes.

It added that the board also noted that the decision of the
arbitration panel was not only firm but unanimous, the report
relays.

It noted that the legal costs and time already incurred in this
matter were already significant, the report notes.

"Further litigation, along with the aforementioned exposure to
consequential damages if Petrotrin were to continue to be
unsuccessful, could take the financial exposure to well over one
billion Trinidad and Tobago dollars," the Trinidad Petroleum
Holdings statement noted, the report relates.

                       'A Very Good Outcome'

The release stated that the board, against the strong views of its
legal team that appeared before the tribunal, appointed a
high-level management team which entered into discussions with AV
Oil to explore the terms of a settlement acceptable to both sides,
the report discloses.

The report notes that those discussions were based solely on
operational data and proved "very fruitful" in arriving at a
settlement in the following terms:

(i) The payment to AV Oil of the sums already awarded by the
arbitration panel for crude oil already supplied.

(ii) Payment to AV Oil of the sum of $18,000,000 in full and final
satisfaction of any and all damages suffered by AV Oil in
connection with the termination of the Incremental Production
Service Contract (IPSC).

(iii) Payment to AV Oil of a sum of money to be agreed by the
parties representing reasonable legal costs and expenses incurred
by AV Oil in the arbitration proceedings or such sum to be assessed
by the Tribunal in default of agreement.

(iv) Heritage to grant an Enhanced Production Services Contract
(EPSC) to AV Oil for a period of ten years.

(v) AV Oil accepts and acknowledges that Petrotrin shall not be
liable for and shall not pay any losses for mobilisation or
demobilisation costs and expenses claimed by AV Oil in the
arbitration and AV Oil hereby waives and relinquishes any call for
payment in relation thereto including its request for the sum
US$460,000 as made in the arbitration proceedings before the
Tribunal.

(vi) AV Oil agrees to pay to Petrotrin all outstanding oil impost
fees under the IPSC in the sum of $660,000 and fees for head
licence and other fees in the sum of US$164,000 within the first
full month of AV Oil's payment advice under the new EPSC.

(vii) AV Oil agrees to pay the outstanding funds for abandonment
expenses under the IPSC sub-licence in the amount of US$2,200,000.

                       $84 Million Payment

"There can be no doubt that the settlement of this matter, with the
payment by Petrotrin of $18,000,000 in damages in addition to the
sums awarded by the Tribunal to AV Oil for crude oil determined by
the Tribunal to have already been supplied and received to
Petrotrin's benefit, is in the circumstances, a very good outcome
for Petrotrin and Trinidad and Tobago," the oil company's statement
said, the report discloses.

It noted that no finding of wrongdoing on the part of AV Oil had
been made out, and that prior to this dispute, AV Oil had been a
good long-standing partner in Petrotrin's Joint Venture programme,
"which continues to be a crucial component to the production of oil
in this country," the report relays.

It stated that the grant of this contract was consistent with
Heritage's strategy of having these marginal fields operated and
funded by smaller operators, the report relates.

It stated that based on the arbitration, Petrotrin was not entitled
to treat any of the crude oil delivered to it by AV Oil as not
having been delivered in pursuance of the Incremental Production
Service Contract (IPSC) Agreement between the two companies and
that the findings of the arbitration also mean that AV Oil is
entitled to payment of the sum of $84,699,879.47 that Petrotrin is
holding in escrow in relation to the sums due on its unpaid
invoices for the period June 1, 2017 to the December 31, 2017
together with interest at the rate of three per cent per annum from
the due date of each invoice until the date when the principal sum
was paid into escrow, the report notes.

Additionally, it noted that the arbitrators also awarded payment to
AV Oil of the sums due on its unpaid invoices for the crude oil
supplied by the company to Petrotrin during the period January 1,
2018 to February 28, 2018 in the amount of US$2,284,398.40 together
with interest at the rate of three per cent per annum from the date
when each payment fell due until the date of the Award, the report
discloses.

"The panel of arbitrators found that Petrotrin did not have
reasonable grounds for suspecting that AV Oil had misconducted
itself or otherwise been involved in wrongful or fraudulent
activity which would have normally entitled Petrotrin to terminate
the IPSC Agreement under Article 29.1," it stated, the report
adds.




=============
U R U G U A Y
=============

ANCAP: S&P Affirms 'BB+' Issuer Credit Rating, Outlook Stable
-------------------------------------------------------------
S&P Global Ratings, on Sept. 28, 2021, affirmed the 'BB+' ratings
on Uruguay-based state-owned refining company Administracion
Nacional de Combustibles, Alcohol y Portland (ANCAP) and maintained
its stable outlook. S&P also revised the company's financial risk
profile to aggressive from highly leveraged and its stand-alone
credit profile (SACP) upwards to 'b+' from 'b'.

This rating action incorporates S&P's view that given ANCAP is a
government-owned company and that there's a very high likelihood
that Uruguay (BBB/Stable/A-2) would provide timely and sufficient
extraordinary support to the company in the event of financial
distress.

The outlook remains stable because it mirrors the outlook on the
sovereign. It also incorporates expectation that ANCAP's leverage
will be 2x-3x, while the company won't face liquidity constraints
in meeting its financial obligations in the upcoming 12 months. The
latter assumption incorporates S&P's view that ANCAP will continue
accessing credit from banks , as it has done in the past, which we
attribute to its government ownership.

S&P said, "We expect an improvement in EBITDA in 2021 based on
higher-than-forecasted volumes sold, mainly due to
higher-than-expected deliveries of fuels for electricity generation
and exports. In addition, after two years of flat prices, the
recently implemented import parity scheme raised prices for fuels
in the domestic market amid the rise in crude oil costs in 2021. As
a result, we revised our assessment of the company's financial risk
profile and SACP to stronger categories.

"Under our updated scenario, after peaking at 3.6x in 2020, debt to
EBITDA would decrease in 2021 to about 2.5x, which will be in line
with pre-pandemic levels. This assumption is based on our
expectation of higher volumes sold and price increases already
granted. EBITDA margin will climb to about 9.5% in 2021 from 7.9%
in 2020, which will result in EBITDA of Uruguayan peso (UYU) 6.5
billion - UYU7.0 billion ($147 million – $160 million at a rate
of UYU44 per $1).

"We viewed this law as positive for the company's credit quality,
because it put an end to the discussions about ANCAP's monopolistic
status as Uruguay's sole petroleum and refined products importer
and refiner. It also set the framework for the import parity scheme
that results in a more formal, documented benchmark for periodic
price revisions, based on the assessment by the Unidad Reguladora
de Servicios de Energia y Agua (URSEA). In addition to price
adjustments granted in the first half of 2021, the government also
granted a fixed factor of UYU2.97 per liter starting in August, to
accommodate other costs incurred by ANCAP and not incorporated in
the import parity formula."

Nevertheless, S&P continues to view ANCAP's operating performance
as volatile because it continues to depend on timely fuel price
increases to absorb oil price swings and the domestic currency's
fall in value. As a recently implemented scheme after years of
discretional treatment, it needs to remain in place and prove its
ability and value to set more timely and consistent price
adjustments. In addition, price adjustments still need the
government's approval, so they remain subject to political
intervention. This view incorporates ANCAP's very important role in
the economy as the sole importer and refiner of crude oil in the
country and its very strong link to the government, because the
latter is the company's unique shareholder with a strong influence
on ANCAP's strategy and business plans, including fuel price
adjustments, debt authorization, and tax payments. Other examples
of influence include the Ministry of Finance's role in extending a
credit line to the company from Corporacion Andina de Fomento (CAF)
and the agreement with the central bank for forward foreign
exchange trades.




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

LATAM: For Region's Airlines, Return to 2019 Is 'Not Good Enough'
-----------------------------------------------------------------
globalinsolvency.com, citing FlightGlobal, reports that the airline
industry in Latin America continues to deal with vastly divergent
travel rules, vaccination rates and political posturing, slowing
the region's widespread recovery from the global pandemic.

From Mexico in the north, which never really shut down even at the
height of the crisis, to Argentina in the south, which still caps
passenger numbers and maintains high taxes on international travel,
the region's rebound could take much longer than the rest of the
world's, according to globalinsolvency.com.

"Airlines are returning," says Peter Cerda, IATA's regional
vice-president for Latin America, the report notes.  "But we also
have to understand Latin America is not Europe, nor is it North
America, nor do we have the same resources like those regions do,"
Mr. Cerda said, the report notes.

Vaccination rates in Latin America have lagged other regions, and
unlike elsewhere, its governments have largely not bolstered their
airlines with pandemic-related financial aid, the report discloses.


As a result, the region's carriers face a steeper climb out of the
industry crisis. Also, simply returning to 2019 levels - a
milestone some U.S. carriers neared in the past months - is not
enough for many of the airlines operating in the vast Latin
American region, IATA says, the report relates.

"Returning to what we had in 2019 may be okay for North America or
Europe or Asia, but it is simply unacceptable for Latin America,"
Cerda says. According to IATA figures, in 2019 the region's airline
industry posted a loss of $700 billion.  "We can't go back to a
money-losing industry," he states, the report discloses.

In 2020, Latin American airlines lost $11.9 billion. While that
number is expected to narrow to $4 billion in 2021, the recovery is
proving to be uneven across the region, the report relates.

Few of the governments had set aside financial aid for the industry
aside from some tax relief, so the airlines were, and for the most
part remain, on their own, the report relays.

"Last year, when borders started closing and countries started
shutting down in Europe and Asia, the pandemic had not yet reached
Latin America," Cerda, said.  "And the reopening of borders . . . .
happened several months after the rest of Europe and North
America. So closures were much more expensive," he added.



                           *********


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.

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