/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/211006.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 Wednesday, October 6, 2021, Vol. 22, No. 194 Headlines A R G E N T I N A ARGENTINA: Economic Activity Slows in July Amid Uneven Recovery LA RIOJA: Fitch Raises LT IDRs to 'CCC-', Outlook Stable B R A Z I L BANCO DO BRASIL: Fitch Gives Final 'BB-' to $750MM Unsec. Notes BRAZIL: Trade Surplus Falls in September to Lowest Level in 7 Mos. C H I L E LATAM AIRLINES: Board Okays $750MM Financing From Oaktree, Apollo VTR FINANCE: Moody's Puts Ba3 CFR Under Review for Upgrade D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: No Support For Bitcoin, Central Bank Warns G U A T E M A L A GUATEMALA: Fitch Rates USD500MM 2033 & 2041 Bonds 'BB-' J A M A I C A JAMAICA: S&P Alters Outlook to Stable & Affirms 'B+/B' SCRs [*] JAMAICA: Economy Grew More Than 14% in 2nd Quarter M E X I C O GRUPO AEROMEXICO: Experts Return to Profitability in 2022 X X X X X X X X LATAM: CDB Says Bold Action Needed to Overcome Challenges - - - - - ================= A R G E N T I N A ================= ARGENTINA: Economic Activity Slows in July Amid Uneven Recovery --------------------------------------------------------------- Buenos Aires Times reports that Argentina's economy expanded up more than expected in July as Covid-19 cases and lockdown restrictions continued to ease. The economy grew 11.7 percent in July from a year ago, faster than the 8.5 percent median estimate of analysts surveyed by Bloomberg, the report cites. Activity in July expanded 0.8 percent on a monthly basis, a slower pace from June, according to government data published. All but two sectors posted annual gains in July. Argentina's hotels and restaurants saw activity grow 55 percent, while construction and manufacturing also recorded double-digit gains. The recovery has sputtered at times this year as elevated inflation, a massive Covid wave and some export restrictions worsened an already challenging business environment, Buenos Aires Times points out. President Alberto Fernandez is seeking to increase government spending before a midterm vote in November, potentially complicating the economic outlook and an agreement with the International Monetary Fund. His government expects the economy to grow eight percent this year, boosted by the base effect of the economy's steep decline last year. Private economists see an expansion of 7.2 percent, according to the Central Bank's monthly survey. About Argentina Argentina is a country located mostly in the southern half of South America. It's capital is Buenos Aires. Alberto Angel Fernandez is the current president of Argentina after winning the October 2019 general election. He succeeded Mauricio Macri in the position. Argentina has the third largest economy in Latin America. The country's economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. Standard & Poor's credit rating for Argentina stands at CCC+ with stable outlook, which was a rating upgrade issued on Sept. 8, 2020. Moody's credit rating for Argentina was last set at Ca on Sept. 28, 2020. Fitch's credit rating for Argentina was last reported on Sept. 11, 2020 at CCC, which was a rating upgrade from CC. DBRS' credit rating for Argentina is CCC, given on Sept. 11, 2020. As reported by The Troubled Company Reporter - Latin American, DBRS noted that the recent upgrade in Argentina's ratings (September 2020) follows the closing of two debt restructuring agreements between the Argentine government and private creditors. The first restructuring involved $65 billion in foreign-law bonds. The deal achieved the requisite participation necessary to trigger the collective action clauses and finalize the restructuring on 99% on the aggregate principal outstanding of eligible bonds. DBRS added that the debt restructurings conclude a prolonged default and provide the government with substantial principal and interest payment relief over the next four years. DBRS further relayed that Argentina is also seeking a new agreement with the International Monetary Fund (IMF) to replace the canceled 2018 Stand-by Agreement. Formal negotiations on the new financing began in November 2020. Obligations to the IMF amount to $44 billion, with major repayments coming due in 2022 and 2023. LA RIOJA: Fitch Raises LT IDRs to 'CCC-', Outlook Stable -------------------------------------------------------- Fitch Ratings has upgraded the province of La Rioja, Argentina's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) to 'CCC-' with a Stable Rating Outlook from 'RD'. Additionally, Fitch raised La Rioja's Standalone Credit Profile (SCP) to 'ccc-' from 'rd'. Fitch relied on its rating definitions to position La Rioja's ratings and SCP. As a result of the recent conclusion of its restructuring process, Fitch has upgraded to 'CCC-' from 'D' the province's original amount of USD300 million senior unsecured notes with a new due date of 2028 and a current outstanding amount of USD318.42 million. The bond is rated at the level as La Rioja's IDRs. The ratings reflect La Rioja's adequate debt service coverage ratio over the next 12-month period, high debt relative to its operating balance, and the prolonged negotiations to conclude its distressed debt exchange (DDE). KEY RATING DRIVERS La Rioja completed a DDE on Sept. 24, 2021. It received and accepted a total of USD295.8 million of its USD300 million 9.75% senior unsecured notes due in 2025 or 98.61% of acceptance, above the threshold set in the collective action clauses (CACS). The province issued U.S.$18,427,444 principal amount of notes and paid U.S.$24,847,500 in cash, as consent consideration to eligible holders whose consents have been accepted by the province. The rating actions reflect La Rioja's recent DDE, continued refinancing risk, exposure to Argentina's challenging macro and public finance environment, and sharp fiscal challenges that Fitch expects to continue pressuring operating margins going forward. The debt restructuring provides some external debt service relief for the province until YE 2023. However, the 'CCC-' IDRs reflect La Rioja's high debt relative to its operating balance and prolonged negotiations to conclude the DDE. Like other Argentine provinces, La Rioja faces tight budgetary flexibility driven by fiscal challenges at the national and local levels that continue to hinder its budgetary capacity, including macroeconomic volatility and the curtailment to the external market that keeps refinancing risks high. The main amendments to the notes included an extension to the notes maturity to February 2028, a modification of the amortization profile to nine capital installments throughout the life of the amended notes, with payments in February and August, starting in February 2024, and easing of the interest rate conditions (step-up at 3.5% in 2021, 4.75% in 2022, 6.5% in 2023 and 8.5% thereafter). Risk Profile: 'Vulnerable' La Rioja's risk profile of 'Vulnerable' is based on Weaker attributes in all six key risk factors, considering the country's structural weaknesses, in which Argentine local and regional governments (LRGs) operate. The assessment reflects Fitch's view of a very high risk relative to international peers that the issuer's ability to cover debt service with the operating balance may weaken unexpectedly over the forecast horizon (2021-2023) due to lower revenue, higher expenditure, or an unexpected rise in liabilities or debt or debt-service requirement. Argentine LRGs operate in a context of a weak institutional revenue framework and sustainability, high expenditure structures, and tight liquidity and FX debt risks, further worsened by macroeconomic volatility, high inflation, sharp currency depreciation and market uncertainty. Revenue Robustness: 'Weaker' La Rioja is highly dependent on transfers from the 'CCC' rated sovereign, with transfers responding to 93.6% of operating revenues in 2020. Revenue growth has been highly volatile due to the vulnerable macro environment with weak or negative growth and high inflation. Revenue Adjustability: 'Weaker' Local revenue adjustability is low for Argentine LRGS and is challenged by the country's large and distortive tax burden, and high inflation dynamics that could impact real-term revenue growth and affordability. The weak macroeconomic environment also limits LRGs' ability to increase tax rates and expand tax bases to boost their local operating revenues. La Rioja's ability to generate additional revenue in response to possible economic downturns is further limited by its high dependency on transfers and its small tax base Expenditure Sustainability: 'Weaker' Argentine provinces have high expenditure responsibilities, including healthcare, education, water, transportation and other services. The country's fiscal regime is structurally imbalanced regarding revenue-expenditure decentralization. In Fitch's view, spending decentralization could continue to rise in the current adverse macroeconomic national context, adding more expenditure and fiscal pressure to subnational governments. Expenditure Adjustability: 'Weaker' For Argentine subnationals, infrastructure needs and expenditure responsibilities are high, with low leeway or flexibility to cut expenses. National capex is low and insufficient, which passes capex burdens on to LRGs. Liabilities and Liquidity Robustness: 'Weaker' Like other Argentine provinces, national rules on debt and liquidity management have a weak track record of enforcement compared with regional peers, such as Brazil, Colombia or Mexico. Limited local capital markets led LRGs to issue debt in foreign currency, causing structural dependence in international markets for financing, because local currency options generally carry higher financial costs and shorter terms due to the high-inflation environment. Additionally, financial obligations are characterized by medium-term maturity of less than 10 years. The province failed to perform the payment of debt service on its 9.75% senior unsecured notes due 2025 after the 30-days cure period expired on Sept. 23, 2020. The default event took one year to be solved, as the province negotiated with bond holders the terms of the DDE. The agreement granted La Rioja a debt service relief, both through reduced interests and postponement of capital repayments. The senior unsecured notes were initially issued to finance the construction of Wind Parks (Parque Eolico Arauco) and the expectation was that the province would be able to generate revenues through a mirror loan with the parks that would finally be used to repay the bonds (though revenues were not formally secured). However, the Wind Parks are not yet fully operational, requiring further investments, and currently generate a low level of revenues, which is directed to its operational costs. Fitch does not incorporate additional revenues from the Wind Parks to its projections. Liabilities and Liquidity Flexibility: 'Weaker' For liquidity, Argentine LRGs rely mainly on their own unrestricted cash. Fitch views the Argentine national framework in place for liquidity support and funding available to subnationals as 'Weaker', as there are no formal emergency liquidity support mechanisms established. The current context of national capital controls is another risk captured in the liquidity flexibility assessment, as the imposition of exchange regulations could ultimately affect LRGs' ability to fulfill their financial obligations. Debt sustainability: 'bbb' category La Rioja's 'bbb' debt sustainability assessment score considers a 'a' primary payback ratio of 12.4x for 2023 under Fitch's rating case. The assessment also considers the 'aaa' fiscal debt burden of 48.2% and an override from the 'bb' actual debt service coverage ratio (ADSCR) of 1x also in 2023. ESG - Governance: La Rioja has an ESG Relevance Score of '5' for Creditor Rights due to both the province's recent DDE and protracted debt default. The agreement granted La Rioja debt service relief but affected bondholders. The province defaulted on its semiannual interest payments for USD14.625 million for its 9.75% senior unsecured notes due in 2025, after the 30-day cure period expired on Sept. 23, 2020. The debt restructuring process took a full year, longer than other argentine LRGs. Therefore, creditor rights remains a key rating driver. ESG - Governance: La Rioja has an ESG relevance score of '4' for Rule of Law, Institutional & Regulatory Quality, Control of Corruption as it presents weak management practices and regulations toward its financial obligations, as evidenced by prolonged negotiations to resume the debt restructuring process. DERIVATION SUMMARY Fitch has relied on its rating definitions to position the province's IDRs at 'CCC-' and its SCP at 'ccc-'. The assessment reflects (i) the province's Actual Debt Service Coverage Ratio projected at adequate levels in 2021 and 2022; (ii)La Rioja's high debt level relative to its operating balance; (iii) and prolonged negotiations to conclude the DDE when compared to other argentine LRGs. The province's original USD300 million senior unsecured notes with a new due date of 2028 and a current outstanding of USD318.42 million are rated at the same level as its IDRs. KEY ASSUMPTIONS Qualitative Assumptions -- Risk Profile: Vulnerable -- Revenue Robustness: Weaker -- Revenue Adjustability: Weaker -- Expenditure Sustainability: Weaker -- Expenditure Adjustability: Weaker -- Liabilities and Liquidity Robustness: Weaker -- Liabilities and Liquidity Flexibility: Weaker -- Debt sustainability: 'bbb' category, raised Quantitative Assumptions - Issuer Specific Fitch's rating case scenario is a "through-the-cycle" scenario, which incorporates a combination of revenue, cost and financial risk stresses. It is based on the 2016-2020 figures and 2021-2023 projected ratios. The key assumptions for the scenario include: -- Operating revenue average growth of 42% for 2021-2023; -- Operating expenditure average growth of 49% for 2021-2023; -- Net capital balance of around minus ARS10 billion during 2021- 2023; -- Cost of debt considers non-cash debt movements due to currency depreciation with an average exchange of ARS102.4 per U.S. dollar for 2021, ARS149.4 for 2022 and ARS211.1 for 2023. RATING SENSITIVITIES Factor that could, individually or collectively, lead to positive rating action/upgrade: -- If debt sustainability metrics remain in line with projections of a payback ratio below 13x and ADSCR above 1.0x, under Fitch's rating case. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- A downgrade of Argentina's sovereign rating below 'CCC-' would negatively impact La Rioja's rating; -- Signs of deeper liquidity stress that could compromise debt repayment capacity in the coming years, including evidence of increased refinancing risk in its local and foreign currency debt. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Sovereigns, Public Finance and Infrastructure 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 three 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. ISSUER PROFILE La Rioja is located in the northeast region of Argentina and has a GDP of around USD2 billion, or less than 1% of national GDP. Due to its relatively small size, public sector employees represent almost one third of the local economy. The province reports below average income of around USD5,200 per capita. The population is growing in line with the national average with limited pressure on infrastructure. ESG CONSIDERATIONS La Rioja has an ESG relevance score of '4' for Rule of Law, Institutional & Regulatory Quality, Control of Corruption as it presents weak management practices and regulations toward its financial obligations, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. La Rioja has an ESG Relevance Score of '5' for Creditor Rights due to its protracted debt default, which was recently solved through the province's DDE. This has a positive impact on the credit profile and is highly relevant to the rating, resulting in a four-notch upgrade. Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. =========== B R A Z I L =========== BANCO DO BRASIL: Fitch Gives Final 'BB-' to $750MM Unsec. Notes ---------------------------------------------------------------- Fitch Ratings has assigned Banco do Brasil S.A.'s (BdB) USD750 million senior unsecured notes 'BB-' final rating. The notes were issued through its Grand Cayman branch and have a five-year tenor with a 3.25% annual interest rate. The final rating is in line with the expected rating that Fitch assigned to the proposed debt on Sept. 13, 2021 (see "Fitch Expects to Rate Banco do Brasil's Proposed Senior Unsecured Notes Due 2026 'BB-(EXP)'"). KEY RATING DRIVERS The final rating on the notes corresponds to BdB's Long-Term Foreign Currency Issuer Default Rating (IDR) (BB-/Negative) and ranks equal to its other senior unsecured debt. BdB's ratings are equalized with Brazil's IDRs (BB-/Negative) and are further underpinned by the bank's Viability Rating (VR). Key Rating Driver 1 In Fitch's view, the bank would receive support from the federal government, if needed. This reflects the majority federal government ownership, its key policy role, particularly in rural lending and systemic importance. Fitch believes that the Brazilian government's willingness to support BdB in case of need is high; however, its capacity to do so has fallen, as reflected in the successive sovereign rating downgrades. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: DRS AND SENIOR DEBT -- BdB's VR, IDRs and its issuance ratings would be affected by potential changes in the sovereign ratings of Brazil and/or in the sovereign's willingness to provide support to the bank, should the need arise. -- BdB's VR would be negatively affected if its common equity Tier 1 ratio falls below 9% and/or its regulatory capital ratios to approach the minimum requirements, due to a combination of asset quality deterioration, weakening of profitability or higher than expected growth. Factor that could, individually or collectively, lead to positive rating action/upgrade: -- BdB's VR, IDRs and its issuance ratings would be affected by potential changes in the sovereign ratings of Brazil and/or in the sovereign's willingness to provide support to the bank, should the need arise. 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. PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS Bdb's ratings are driven by Brazil's sovereign support rating. ESG CONSIDERATIONS Banco do Brasil S.A. has an ESG Relevance Score of '4' for Governance Structure due to the potential for an increase in government influence to negatively impact creditor's rights. BdB is majority owned by the Brazilian federal government, which has demonstrated an ability to influence and interfere in the policies of the banks it controls. This has a negative impact on the bank's rating 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. BRAZIL: Trade Surplus Falls in September to Lowest Level in 7 Mos. ------------------------------------------------------------------ Rio Times Online reports that Brazil recorded a trade surplus of US$4.322 billion in September, the lowest level in the last seven months and a value 15% lower than in the same month the previous year, due to the sharp jump in imports, the Government informed. The positive balance in September was lower than that of the same month last year (US$5.1 billion) and 43.4% lower than that of August of this year (US$7.6 billion), according to data released by the Ministry of Economy, according to Rio Times Online. The sharp fall in the surplus was attributed to the jump in imports, which totaled 19.962 billion dollars in September, an increase of 51.9% compared to the same month in 2020, the report notes. About Brazil Brazil is the fifth largest country in the world and third largest in the Americas. Jair Bolsonaro is the current president, having been sworn in on Jan. 1, 2019. Fitch Ratings' credit rating for Brazil stands at 'BB-' with a negative outlook (November 2020). Fitch's 'BB-' Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) has been affirmed in May 2021. Standard & Poor's credit rating for Brazil stands at BB- with stable outlook (April 2020). S&P's 'BB-/B' long-and short-term foreign and local currency sovereign credit ratings for Brazil were affirmed in December 2020. Moody's credit rating for Brazil was last set at Ba2 with stable outlook (April 2018). DBRS's credit rating for Brazil is BB (low) with stable outlook (March 2018). ========= C H I L E ========= LATAM AIRLINES: Board Okays $750MM Financing From Oaktree, Apollo ----------------------------------------------------------------- LATAM said Sept. 29, 2021, that it obtained committed financing of up to US$750 million for Tranche B of the DIP (debtor in possession) financing at more competitive rates and conditions than those obtained for Tranches A and C, which will allow the group to improve its cost of financing under Chapter 11. After receiving multiple Tranche B offers from investors, on Sept. 24, the LATAM Board of Directors approved, by a unanimous vote from the independent directors, the proposal presented by a group of financiers composed of Oaktree Capital Management, L.P., Apollo Management Holdings, L.P. and certain funds, accounts and entities advised by the aforementioned parties. The DIP Tranche B financing proposal would result in significant savings for the group. "We received several offers from investors who have expressed their interest in supporting us in our Chapter 11 process. This proposal will allow us access to better financing conditions, generating significant cost savings and benefiting our creditors and LATAM", LATAM Airlines Group CFO, Ramiro Alfonson, said. The resulting DIP financing structure would be as follows: Tranche A, which comprises up to US$1.3 billion of committed funds, Tranche C with up to US$1.15 billion of committed funds, in addition to Tranche B that totals up to US$750 million. To date, US$1.65 billion have been drawn from Tranches A and C. The incorporation of the committed funds from Tranche B of the DIP financing is subject to the US Court's approval. Notwithstanding, LATAM could eventually receive other proposals to grant financing under Tranche B of the DIP Credit Agreement, in which case they would be duly assessed by the Company and its advisors. About LATAM Airlines Group LATAM Airlines Group S.A. -- http://www.latam.com/-- is a pan-Latin American airline holding company involved in the transportation of passengers and cargo and operates as one unified business enterprise. It is the largest passenger airline in South America. Before the onset of the COVID-19 pandemic, LATAM offered passenger transport services to 145 different destinations in 26 countries, including domestic flights in Argentina, Brazil, Chile, Colombia, Ecuador and Peru, and international services within Latin America as well as to Europe, the United States, the Caribbean, Oceania, Asia and Africa. LATAM and its 28 affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 20-11254) on May 25, 2020. Affiliates in Chile, Peru, Colombia, Ecuador and the United States are part of the Chapter 11 filing. The Debtors disclosed $21,087,806,000 in total assets and $17,958,629,000 in total liabilities as of Dec. 31, 2019. The Hon. James L. Garrity, Jr., is the case judge. The Debtors tapped Cleary Gottlieb Steen & Hamilton LLP as bankruptcy counsel, FTI Consulting as restructuring advisor, Lee Brock Camargo Advogados as local Brazilian litigation counsel, and Togut, Segal & Segal LLP and Claro & Cia in Chile as special counsel. The Boston Consulting Group, Inc. and The Boston Consulting Group UK LLP serve as the Debtors' strategic advisors. Prime Clerk LLC is the claims agent. The official committee of unsecured creditors formed in the case tapped Dechert LLP as its bankruptcy counsel, Klestadt Winters Jureller Southard & Stevens, LLP as conflicts counsel, UBS Securities LLC as investment banker, and Conway MacKenzie, LLC as financial advisor. Ferro Castro Neves Daltro & Gomide Advogados is the committee's Brazilian counsel. The Ad Hoc Group of LATAM Bondholders tapped White & Case LLP as counsel. Glenn Agre Bergman & Fuentes, LLP, led by managing partner Andrew Glenn and partner Shai Schmidt, has been retained as counsel to the Ad Hoc Committee of Shareholders. VTR FINANCE: Moody's Puts Ba3 CFR Under Review for Upgrade ---------------------------------------------------------- Moody's Investors Service has placed VTR Finance N.V. Ba3 corporate family rating under review for upgrade. Moody's has also placed under review for upgrade the B1 rating of VTR's 6.375% $550 million senior unsecured notes and the Ba3 rating of VTR Comunicaciones SpA's 4.375% $410 million senior secured notes and 5.125% $480 million senior secured notes. The outlook was changed to ratings under review from stable. The review process follows the announcement on September 29 that America Movil, S.A.B. de C.V. (AMX, A3 negative) and Liberty Latin America (LLA) reached an agreement to combine their operations in Chile, Claro Chile and VTR respectively, in a JV that will be 50/50 owned by LLA and AMX. The transaction has no impact on AMX's ratings. The JV is subject to regulatory approvals and is expected to close in the second half of 2022. RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's review will focus on the JV's resulting business and financial profile at the closing of the transaction, including: (i) the capital structure of the combined entity; (ii) the company's scale, competitive position and expected synergies following the Chilean telecom regulator's approval and (iii) corporate governance and details on the shareholders agreement between LLA and AMX. The ratings could be upgraded if the JV's resulting business profile is approved as proposed with high profitability including synergies and strengthening its market position in Chile in fixed broadband and Pay TV. Management expects the new company to operate with a net leverage target between 2.8x and 3.5x, which positively compares to VTR's current net leverage of 5.1x as calculated in accordance with the indenture of VTR's 6.375% $550 million senior unsecured notes. VTR adjusted leverage including Moody's standard adjustments was 5.7x as of June 2021. The JV will retain the revolving credit facilities currently under VTR totaling about $260 million and maturing in June 2026, in line with AMX and VTR's conservative liquidity management. The JV, if approved as proposed, will be able to offer mobile, broadband, pay TV and fixed telephony. The new business model would allow to boost subscriber revenue due to cross-selling opportunities and reduced churn. The parties expect to extract synergies of around $180 million, 80% of them in the first three years after closing. VTR is focused on the residential pay TV and fixed broadband markets, while Claro Chile is focused on the enterprise segment and has a 22% market share in the mobile business. The combination would allow VTR to move away from its current MVNO (mobile virtual network operator) that currently offers through the infrastructure of other operators. As a result of this transaction, none of the shareholders will consolidate the JV's operations. The parties made a commitment to contribute businesses with net debt of CLP 1,095 billion ($1.5 billion) and CLP 259 billion ($0.4 billion), respectively. Moody's sees execution risks given the lack of track record of collaboration between the two companies in a joint control environment. However, this is somewhat mitigated by AMX's conservative financial policies and LLA's former parent company Liberty Global plc (Ba3 stable)'s experience in JV's, namely VMED O2 UK Limited (Ba3 stable) in the UK and VodafoneZiggo Group B.V. (B1 stable) in the Netherlands. The transaction marginally benefits AMX, as it will receive $100 million that it plans to use to repay debt and further advance toward its net leverage ratio target of 1.50x from 1.64x as of June 2021. Claro Chile currently represents less than 2% of AMX's consolidated revenue. AMX will retain the towers owned by Claro Chile, as it plans to spin them off, along with most of its roughly 36,000 towers in Latin America, probably by early 2022. The review will focus on the improvement in the resulting competitive position, capital structure and governance and is likely to result in a one notch upgrade at closing if Moody's expectations are met and the transaction closes as proposed. Downward ratings pressure is currently could occur should Moody's expectation's for the JV don't materialize resulting in weaker than expected financial metrics. The principal methodology used in these ratings was Pay TV published in December 2018. VTR provides broadband and wireless communication services in Chile. VTR's network passes 4 million homes and serves about 2.85 million fixed revenue generating units. The company also serves around 267,400 mobile subscribers as a mobile virtual network operator. VTR reported revenue of CLP618 billion (around $829 million) for the 12 months that ended June 2021. AMX is Latin America's leading telecom operator, with 298 million wireless lines and 80.5 million revenue-generating units as of June 2021. The company offers wireless, fixed and pay TV services to 25 countries in the Americas and various European nations through a controlling stake of 51% in Telekom Austria AG (Baa1 stable). America Movil reported revenue of around $49 billion for the 12 months that ended June 2021. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: No Support For Bitcoin, Central Bank Warns -------------------------------------------------------------- Dominican Today reports that the Central Bank (BC) warned the population that the different types of cryptocurrencies and virtual currencies and assets that are being promoted in the Dominican Republic's digital media do not have the support of that institution or the authorization of the Monetary Board for its issuance and use as a means of payment to carry out transactions of any kind. The monetary and financial institution said that among cryptocurrencies there is an allusion to national symbols (which could confuse citizens), but that they do not have the legal course or the liberating force of public or private obligations throughout the national territory, according to Dominican Today. It indicated that it has been closely observing the global evolution of the use and behavior of virtual assets, such as Bitcoin, Litecoin and Ethereum, as well as the recent appearance of some of these in the Dominican market, through social networks and reports on its spread in some media, the report relays. 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). ================= G U A T E M A L A ================= GUATEMALA: Fitch Rates USD500MM 2033 & 2041 Bonds 'BB-' ------------------------------------------------------- Fitch Ratings has assigned a 'BB-' rating to Guatemala's USD500 million bond maturing Oct. 7, 2033 with a coupon of 3.7% and USD500 million bond maturing Oct. 7, 2041 with a coupon of 4.65%. Proceeds from the issuance will be used for general budgetary purposes including to refinance public debt. KEY RATING DRIVERS The bonds ratings are in line with the Guatemala's Long-Term Foreign Currency Issuer Default Rating (LT FC IDR) of 'BB-'. ESG - Governance: Guatemala has an ESG Relevance Score (RS) of '5' for both Political Stability and Rights and for the Rule of Law, Institutional and Regulatory Quality and Control of Corruption, as is the case for all sovereigns. These scores reflect the high weight that the World Bank Governance Indicators (WBGI) have in Fitch's proprietary Sovereign Rating Model. Guatemala has a low WBGI ranking at 27.3, driven by weak rule of law and a high level of corruption. RATING SENSITIVITIES Factor that could, individually or collectively, lead to negative rating action/downgrade: -- The bond rating would be sensitive to any negative changes in Guatemala's LT FC IDR, which Fitch affirmed at 'BB-'/Stable on May 5, 2021. Factor that could, individually or collectively, lead to positive rating action/upgrade: -- The bond rating would be sensitive to any positive changes in Guatemala's LT FC IDR, which Fitch affirmed at 'BB-'/Stable on May 5, 2021. SOVEREIGN RATING MODEL (SRM) AND QUALITATIVE OVERLAY (QO) Fitch's SRM is the agency's proprietary multiple regression rating model that employs 18 variables based on three-year centered averages, including one year of forecasts, to produce a score equivalent to a LT FC IDR. Fitch's qualitative overlay is a forward-looking qualitative framework designed to allow for adjustment to the SRM output to assign the final rating, reflecting factors within Fitch's criteria that are not fully quantifiable and/or not fully reflected in the SRM. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Sovereigns, Public Finance and Infrastructure 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 three notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. ESG CONSIDERATIONS Guatemala has an ESG Relevance Score of '5' for Political Stability and Rights as World Bank Governance Indicators have the highest weight in Fitch's SRM and are therefore highly relevant to the rating and a key rating driver with a high weight. Guatemala has an ESG Relevance Score of '5' for Rule of Law, Institutional & Regulatory Quality and Control of Corruption as World Bank Governance Indicators have the highest weight in Fitch's SRM and are therefore highly relevant to the rating and are a key rating driver with a high weight. Guatemala has an ESG Relevance Score of '4' for Human Rights and Political Freedoms as the Voice and Accountability pillar of the World Bank Governance Indicators is relevant to the rating and a rating driver. Guatemala has an ESG Relevance Score of '4' for Creditor Rights as willingness to service and repay debt is relevant to the rating and is a rating driver, as for all sovereigns. Except for the matters discussed above, the highest level of ESG credit relevance, if present, 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 to the way in which they are being managed by the entity. ============= J A M A I C A ============= JAMAICA: S&P Alters Outlook to Stable & Affirms 'B+/B' SCRs ----------------------------------------------------------- S&P Global Ratings, on Oct. 4, 2021, revised the outlook on Jamaica to stable from negative. At the same time, S&P Global Ratings affirmed its 'B+' long-term foreign and local currency sovereign credit ratings and 'B' short-term foreign and local currency sovereign credit ratings on the country, and its 'BB-' transfer and convertibility assessment. Outlook S&P said, "The stable outlook reflects our view that the economic and fiscal risks of the pandemic have receded and there is less than a one-in-three chance we will change the rating in the next 12 months. The outlook reflects our expectation that the economic recovery will strengthen, government finances will return to fiscal surplus this year, and the impact of the pandemic will gradually recede." Upside scenario S&P could raise the ratings over the next 2 years if the nascent economic recovery is stronger than expected, boosting government revenues, sustaining fiscal surpluses, and shrinking the country's debt and interest burden beyond its expectations. Downside scenario Alternatively, S&P could lower the ratings over the same period if the economy fails to improve as expected, putting pressure on external balances and weakening the country's external position. Rationale As did other countries globally, Jamaica suffered a deep economic contraction following the onset of the COVID-19 pandemic. Despite an estimated fall in GDP of 9.9% in 2020, recent fiscal reforms and savings helped the government limit the pandemic-related fiscal fallout and rise in sovereign debt. S&P said, "We see the risks of the pandemic for the Jamaican economy and public finances receding. We expect the economic recovery will continue building into 2022 and that the government will cautiously manage public finances and repay debt to lower its debt and interest burden." S&P said, "Despite economic recovery over the next few years, we believe Jamaica's average GDP growth will be lower than that of peers and will remain constrained by structural impediments. The government's commitment to fiscal consolidation fosters macroeconomic stability--including stable inflation--and supports the country's creditworthiness. We believe the institutionalization of fiscal consolidation policies bolsters Jamaica's policymaking stability and predictability. We also believe the recent changes in the governance and mandate of the central bank have improved Jamaica's monetary flexibility. However, our ratings on Jamaica remain limited by the country's high debt and interest burden, which restrict fiscal flexibility." Institutional and economic profile: Jamaica will return to economic growth in 2021 and the government will continue its fiscal reforms. -- An economic recovery is underway in Jamaica, and growth is expected to pick up further in 2022. -- Bottlenecks, such as crime, will continue limiting the long-term pace of growth. -- The government's commitment to sustainable fiscal policy should support macroeconomic stability in the medium term. S&P said, "We expect real GDP growth of 3.7% in 2021, spurred by tourism, and picking up to 5.5% in 2022. Jamaica's economy is relatively well diversified; and the 9.9% contraction in 2020 was less than that of some Caribbean peers. Jamaica reopened to tourism in summer 2020. Since then, stayover arrivals have steadily increased, and had returned to almost 70% of 2019 levels by summer 2021. Under our base-case scenario, we expect GDP per capita will increase to US$5,509 this year, up about 7.3% from US$5,135 in 2020. We believe real GDP will reach pre-pandemic levels in 2023." Tourism, agriculture, mining, and manufacturing make Jamaica diversified for a small open economy. Nevertheless, growth is constrained by high security costs, perceived corruption, low productivity, lack of business competitiveness, and vulnerability to external shocks. Links between tourism and other sectors, especially agriculture, are limited, in S&P's opinion, muting the impact of tourism growth on the overall economy. S&P said, "Over the longer term, we believe structural barriers will continue to impede stronger economic growth in Jamaica. We expect the country's 10-year, weighted-average growth rate will be 0.87%, which is below that of sovereigns in the same GDP category." Although the government continues to address this issue through the Economic Growth Council and a dedicated department in the Ministry of Tourism, the dividends of these efforts will take time to translate into higher GDP. National elections were held in September 2020 and the incumbent party won a strong majority. Jamaica's two main political parties--the ruling Jamaica Labor Party and the opposition People's National Party--share a similar outlook on economic policymaking and commitment to fiscal consolidation. S&P said, "This political commitment has survived changes in government and we believe is representative of bipartisan consensus on the general direction of macroeconomic policies. We expect the government will remain focused on pandemic-related health and social measures, while maintaining its commitment to fiscal consolidation, which will foster macroeconomic stability." Although S&P views Jamaica's policymaking as relatively effective, crime continues to aggravate civil society. This, in addition to concerns about the prevalence of corruption and the enforcement of contracts, remains an impediment that hampers the country's productivity and growth prospects. Flexibility and performance profile: S&P expects a return to fiscal surpluses this year; however, Jamaica remains vulnerable to external shocks. -- An improving economy will support government finances, and S&P expects the country will return to fiscal surpluses beginning in the current fiscal year. -- S&P expects the government will stabilize the recent spike in its debt burden, although the high level of foreign currency-denominated debt leaves the country exposed to exchange rate fluctuations. -- Still high, albeit improving, external liquidity needs and external debt make the country vulnerable to external shocks. The pandemic interrupted three years of fiscal surpluses in Jamaica. In fiscal year 2020-2021, Jamaica's deficit was smaller than expected at about J$60 billion, or 3% of GDP. The country's pandemic-related spending on social and health measures, and a fall in revenues spurred the deficit. The improving economy will support government revenues, although the country will need to continue some pandemic-related spending. S&P expects the government will return to a fiscal surplus in the current fiscal year (ending on March 31, 2022), with a J$9 billion surplus, or 0.4% of GDP. The return to fiscal surplus and economic growth should reduce the general government's net debt-to-GDP ratio to 81.8% in 2021 from 86.7% in 2020. S&P said, "The country's interest is high but we expect it will fall modestly to 18.6% of government revenues in fiscal year 2022. The government estimates its financing needs will be J$130 billion this year, which we expect it will source primarily in domestic currency." Jamaica's debt burden has significant exposure to exchange rate movements, as approximately 60% of general government debt is denominated in foreign currency. S&P said, "We do not expect the government to raise new foreign currency-denominated debt in the domestic market in the medium term. We expect it will seek to refinance external maturities through domestic funding, to the extent that the private sector is not crowded out. We assess Jamaica's contingent liabilities from the financial sector and all nonfinancial public enterprises as limited. The limited assessment of contingent liabilities of banks is based on our Banking Industry Country Risk Assessment score of '8' (with '1' being the lowest-risk category and '10' the highest) and the ratio of banking sector assets to GDP of less than 100%." Jamaica's external accounts were very strong in 2020, bolstered by growing remittances, which rose by 20% to US$2.9 billion (about 21% of GDP). The current account deficit was only 0.1% of GDP in 2020. S&P said, "We do not expect this trend in remittances will persist; rather, we expect remittances will gradually return to previous levels over the next one-two years. Instead we expect a growing economy (including a recovery in tourism) will support external balances, and current account deficits will average about 1% of GDP over the next four years." S&P expects the external debt of the public and financial sectors, net of usable reserves and financial sector external assets, will be about 67.9% of current account receipts in 2021, and the country's gross external financing needs will fall to 98.1% of current account receipts and usable reserves in 2021, from about 98.3% in 2020. Despite the pre-pandemic improvement in external liquidity and the debt burden, Jamaica remains vulnerable to external shocks. To address the country's vulnerabilities to weather-related events, the government has created a disaster risk policy framework to build resiliency and respond faster in the aftermath of a disaster, which served Jamaica well at the onset of the pandemic. Jamaica's multilayered approach to mitigating the fiscal risks of a disaster include a contingency fund, insurance, a disaster line of credit with a multilateral institution, and the recent issuance of a catastrophe bond. Although Jamaica has made progress on mitigating the financial risks associated with a disaster, its infrastructure remains vulnerable. In addition, S&P believes the country faces elevated risk of disruptions to external funding, given that Jamaica's net external liability position is substantially worse than its net external debt position. S&P believes that cautious monetary policy and tight fiscal policy continuity will support low inflation over the next several years. Despite some recent upward pressure on prices, inflation will remain within the central bank's target of 4%-6% in the medium term. Although it has a short track record, the central bank is likely to continue facilitating orderly movements in the floating exchange rate, as shown by the two-way movement recorded against the U.S. dollar in the past year. Although dollarization is still high in the financial system, it has steadily declined during the past couple of years. At the end of 2020, about 38% of financial assets were denominated in U.S. dollars, down from 46% at the end of 2016. In April 2021, legislation enshrining the Bank of Jamaica's operational independence became effective. The legislative revisions also supported inflation targeting by changing the central bank's mandate and improving market transparency. The bank's new formal independence and its success in maintaining inflation within its target, on average, over the past few years has strengthened monetary policy credibility, in S&P's view. Although stronger monetary policy credibility does not shift S&P's monetary assessment at present, it is consistent with Jamaica's recent history of prudent fiscal reforms, which have improved the country's creditworthiness over the past few years. In accordance with S&P's relevant policies and procedures, the Rating Committee was composed of analysts that are qualified to vote in the committee, with sufficient experience to convey the appropriate level of knowledge and understanding of the methodology applicable. At the onset of the committee, the chair confirmed that the information provided to the Rating Committee by the primary analyst had been distributed in a timely manner and was sufficient for Committee members to make an informed decision. After the primary analyst gave opening remarks and explained the recommendation, the Committee discussed key rating factors and critical issues in accordance with the relevant criteria. Qualitative and quantitative risk factors were considered and discussed, looking at track-record and forecasts. The committee's assessment of the key rating factors is reflected in the Ratings Score Snapshot above. The chair ensured every voting member was given the opportunity to articulate his/her opinion. The chair or designee reviewed the draft report to ensure consistency with the Committee decision. The views and the decision of the rating committee are summarized in the above rationale and outlook. The weighting of all rating factors is described in the methodology used in this rating action. Ratings List RATINGS AFFIRMED; CREDITWATCH/OUTLOOK ACTION TO FROM JAMAICA Sovereign Credit Rating B+/Stable/B B+/Negative/B RATINGS AFFIRMED JAMAICA Transfer & Convertibility Assessment Local Currency BB- JAMAICA Senior Unsecured B+ AIR JAMAICA LTD. Senior Unsecured B+ NATIONAL ROAD OPERATING AND CONSTRUCTING CO. LTD Senior Unsecured B+ [*] JAMAICA: Economy Grew More Than 14% in 2nd Quarter ------------------------------------------------------ RJR News reports that Jamaica's economy grew by 14.7 per cent during the April to June 2021 quarter. According to a report released by the Statistical Institute of Jamaica (STATIN), this is a revision from the 12.9 per cent estimate reported by the Planning Institute of Jamaica a few weeks ago, the report notes. STATIN says the growth was driven by increased productivity in the services and good producing industries, according to RJR News. The tourism industry recorded a 334 per cent improvement when compared to the April to June quarter of 2020, the report relays. During that period, the gross domestic product (GDP) declined by 18.4 per cent because of COVID-19 containment measures, the report discloses. Cost of Inputs Increase Producers of goods experienced a 0.5 per cent increase in the cost of inputs in August, the report relates. STATIN says a 1.4 per cent increase in the cost of chemicals, and a 0.8 per cent movement in the cost of food, beverages and cigarettes resulted in the rise, the report notes. A 0.3 per cent decline in the cost of fuel tempered the upward movement, the report adds. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. Fitch Ratings affirmed in March 2021 Jamaica's Long-Term Foreign Currency Issuer Default Rating (IDR) at 'B+', with a stable outlook. Standard & Poor's credit rating for Jamaica stands at B+ with negative outlook (April 2020). Moody's credit rating for Jamaica was last set at B2 with stable outlook (December 2019). According to Fitch, Jamaica 'B+' rating is supported by World Bank Governance Indicators that are substantially stronger than the 'B' and 'BB' medians, a favorable business climate according to the World Bank Doing Business Survey, moderate inflation and moderate commodity dependence. These strengths are balanced by vulnerability to external shocks, a high public debt level and a debt composition that makes the sovereign vulnerable to exchange rate fluctuations. The Stable Outlook is supported by Fitch's expectation that the public debt level will return to a firm downward path post-pandemic, which is underpinned by political consensus to maintain a high primary surplus, the resilience of external finances, and stronger economic policy institutions. =========== M E X I C O =========== GRUPO AEROMEXICO: Experts Return to Profitability in 2022 --------------------------------------------------------- Jay Singh of Simple Flying reports that Aeromexico has filed its reorganization plan under its Chapter 11 bankruptcy filing. As the airline prepares to come out of the crisis, it is banking on an ongoing recovery that will see the airline become profitable as soon as next year and start to rebuild its fleet and its network. Here are the highlights. The Mexican flag carrier outlined its projected consolidated financial summary for the next few years in its filing. In 2021, the airline expects to turn a net loss but expects to return to profitability in 2022 and grow its profits through 2025. The crucial part of Aeromexico's profitability is the continuing recovery in revenue. Aeromexico primarily rakes in money from flying passengers, and that will be the most significant portion of the carrier's expected operating revenue in the years to come. Aeromexico has also benefited from reducing its operating expenses through the reorganization process, which will also certainly help. About Grupo Aeromexico Grupo Aeromexico, S.A.B. de C.V. (BMV: AEROMEX) -- https://www.aeromexico.com/ -- is a holding company whose subsidiaries are engaged in commercial aviation in Mexico and the promotion of passenger loyalty programs. Aeromexico, Mexico's global airline, has its main hub at Terminal 2 at the Mexico City International Airport. Its destinations network features the United States, Canada, Central America, South America, Asia and Europe. Grupo Aeromexico and three of its subsidiaries sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 20-11563) on June 30, 2020. In the petitions signed by CFO Ricardo Javier Sanchez Baker, the Debtors reported consolidated assets and liabilities of $1 billion to $10 billion. The Debtors tapped Davis Polk and Wardell LLP as their bankruptcy counsel, KPMG Cardenas Dosal S.C. as auditor, and Rothschild & Co US Inc. and Rothschild & Co Mexico S.A. de C.V. as financial advisor and investment banker. White & Case LLP, Cervantes Sainz S.C. and De la Vega & Martinez Rojas, S.C., serve as the Debtors' special counsel. Epiq Corporate Restructuring, LLC is the claims and administrative agent. The U.S. Trustee for Region 2 appointed a committee to represent unsecured creditors on July 13, 2020. The committee is represented by Willkie Farr & Gallagher, LLP and Morrison & Foerster, LLP. =============== X X X X X X X X =============== LATAM: CDB Says Bold Action Needed to Overcome Challenges --------------------------------------------------------- RJR News reports that Caribbean Development Bank (CDB) President Dr. Hyginus 'Gene' Leon has told regional leaders that bold and innovative action will be needed to overcome the development challenges that have been amplified by the COVID-19 pandemic. Dr. Leon said the aim was not to merely to recover lost ground and close the distance to achieving the sustainable goals, according to RJR News. He said several key actions should be persistently pursued to shift countries to a new development trajectory, the report notes. Dr. Leon was addressing the opening of the Sir Arthur Lewis Institute of Social and Economic Studies (SALISES) 22nd annual conference, 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 co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2021. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *