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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

          Tuesday, October 26, 2021, Vol. 22, No. 208

                           Headlines



B R A Z I L

BRAZIL: Distressed Fund Plans to Raise $1.3BB to Buy Assets
BRAZIL: Rio de Janeiro State Plans to Resume Tourism Safely
CEMIG: Fitch Raises LongTerm Currency IDRs to 'BB'
CESP: Fitch Places 'BB+' Local Currency IDR on Watch Positive
JBS SA: Unit Will Buy Smoked Meat Maker



C O L O M B I A

FINANCIERA DE DESARROLLO NACIONAL: Fitch Affirms 'BB+' IDRs
FINDETER: Fitch Affirms BB+ LongTerm Currency IDRs, Outlook Stable


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Get Ready to Pay More for Onions
DOMINICAN REPUBLIC: Industries Cringe As Freight Costs Skyrocket


E L   S A L V A D O R

EL SALVADOR: S&P Affirms 'B-/B' SCRs & Alters Outlook to Neg.


J A M A I C A

JAMAICA: Energy Prices Expected to Climb Higher in 2022


M E X I C O

ALTOS HORNOS DE MEXICO: Exploring U.S. Bankruptcy Filing


P A N A M A

SIXTEENTH MORTGAGE 2021-1: S&P Assigns 'CCC+' Rating on C Notes
SIXTEENTH MORTGAGE: Fitch Gives Final 'CC' on Series C Notes

                           - - - - -


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B R A Z I L
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BRAZIL: Distressed Fund Plans to Raise $1.3BB to Buy Assets
-----------------------------------------------------------
globalinsolvency.com, citing Bloomberg News, reports that Jive
Investments, Brazil's largest distressed-asset manager, plans to
raise as much as 7 billion reais ($1.3 billion) next year, looking
to capitalize on opportunities created by the coming presidential
election.

"There may be a credit contraction and less appetite for Brazil
among international investors, so we want to be prepared to
allocate a lot of investment during this election scenario,"
Guilherme Ferreira, a Jive partner, said in an interview, according
to globalinsolvency.com.

A polarizing election next October between President Jair Bolsonaro
and former President Luiz Inacio Lula da Silva could bring
volatility to markets, putting pressure on the exchange rate and
inflation, the report notes.

A decline in Bolsonaro's popularity is intensifying risks for
government creditors, because he is seeking to divert funds in the
budget toward poverty programs, the report relays.

Slower economic growth may also increase the amount of distressed
assets for sale, as more corporations and individuals struggle to
pay debts on time, Ferreira said, the report relays.

Economists predict Brazil's gross domestic product will expand 1.9%
next year, down from the 5.2% expected for 2021, according to
forecasts compiled by Bloomberg, the report adds

                       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).


BRAZIL: Rio de Janeiro State Plans to Resume Tourism Safely
-----------------------------------------------------------
Rio Times Online reports that Rio de Janeiro Governor Claudio
Castro met with the federal Ministers of Health Marcelo Queiroga,
and Tourism Gilson Machado Neto to discuss vaccination against
Covid-19 and the resumption of tourism in the state of Rio de
Janeiro.

Queiroga pointed out that the state is strictly complying with the
National Vaccination Plan (PNI), according to Rio Times Online.

"Fortunately we are in a more positive scenario, but we cannot fail
to take all precautions.  We are working to fast-track our
immunization campaign and the expansion of our testing capacity,
the report notes.

The governor of Rio de Janeiro stressed that the Delta variant is a
concern, "but we are working hard to continue the vaccination
process to contain the spread of Covid-19," the report relays.

                      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).


CEMIG: Fitch Raises LongTerm Currency IDRs to 'BB'
--------------------------------------------------
Fitch Ratings has upgraded to 'BB' from 'BB-' the Local Currency
(LC) and Foreign Currency (FC) Issuer Default Ratings (IDRs) of
Companhia Energetica de Minas Gerais (Cemig) and its subsidiaries
Cemig Distribuicao S.A. (Cemig D) and Cemig Geracao e Transmissao
S.A. (Cemig GT). Fitch has also upgraded to 'AA+(bra)' from
'AA-(bra)' the National Scale Ratings for the three entities. The
Rating Outlook is Negative for the FC IDRs and Stable for the other
ratings.

The upgrade reflects Cemig group's reduced leverage, strengthened
liquidity and better operating performance from its distribution
business. The ratings also reflect the upcoming reduction of debt
maturity concentration in 2024 and stretching of the expiration
date of important concessions.

Fitch analyzes Cemig group on a consolidated basis, and the ratings
consider the low to moderate risk of the company's operation in the
Brazilian power sector and its positive asset diversification. The
Negative Outlook on the FC IDR mirrors the Outlook for the
sovereign rating.

KEY RATING DRIVERS

Favorable Business Profile: Cemig group's ratings benefit from its
asset diversification and operation in different segments within
the power sector, which dilutes business and regulatory risks. The
group is one of Brazil's largest integrated electric utilities,
distributing electricity to 8.8 million users and operating 5.8 GW
of generation installed capacity and 7,960 km of transmission
lines. Cemig's distribution segment should represent 48% of EBITDA
in 2021, while generation and transmission will represent 45%.

Conservative Leverage: Cemig's consolidated adjusted net leverage
should remain in the 1.5x- 2.5x range in the coming years, with
2.1x in 2021 and 2.4x in 2022. Fitch expects consolidated net
leverage, excluding off-balance-sheet from guarantees to
nonconsolidated investments to be below 1.5x in 2021. During the
last 12 months (LTM) ended on June 30, 2021, Cemig's consolidated
net adjusted leverage declined to 1.9x from 2.5x in 2020, while net
leverage without guarantees fell to 1.2x from 1.7x in 2020. Fitch's
adjusted debt for Cemig includes guarantees of BRL4.8 billion to
nonconsolidated companies, and adjusted EBITDA includes dividends
received of BRL542 million.

Manageable FCF Despite Aggressive Capex: Fitch expects Cemig to
present an aggressive capex plan of BRL11 billion during 2021-2024,
with BRL2.1 billion in 2021 and BRL3.2 billion in 2022, mainly
focused in Cemig D to reinforce its asset base to be recognized in
the next tariff review in 2023. Temporary reduced income tax
disbursement in the same period due to a favorable court decision
will reduce FCF pressure, which should be positive BRL273 million
in 2021 and negative BRL623 million in 2022. Fitch expects
consolidated EBITDA of BRL4.8 billion in 2021 and BRL5.0 billion in
2022 to increase to around BRL6.0 billion in 2023 supported by
Cemig D's tariff review, which should cover average annual capex of
about BRL2.9 billion and a 50% dividend payout.

Positive Distribution Trends: Cemig D has captured positive output
from the last tariff review, which propelled the company's
distributions EBITDA to BRL2.6 billion for the LTM ended June 2021
from BRL2.3 billion in 2020. Cemig D's EBITDA improvement is also
the result of manageable expenses savings (-5%) and increased
demand (+7.4%) in the first semester of 2021, when reported EBITDA
of BRL 1.3 billion exceeded the regulatory EBITDA's reference for
the first time (BRL119 million higher, or 10%). Fitch considers a
consumption demand annual increase of 5.0% in 2021 and an average
1.1% increase during 2022-2024 period and Cemig D's EBITDA in 2021
around the regulatory EBITDA reference of BRL2.5 billion.

Favorable Generation Segment: Cemig's robust and predictable
generation segment performance are key for its consolidated credit
profile. Despite the reduced EBITDA margin of around 30% resulting
from a relevant energy purchase exposure, Cemig GT's expected
average annual EBITDA of BRL2.2 billion during 2021-2024. The
company should be able to manage its portfolio in terms of
uncontracted energy and third-party energy purchases to limit its
exposure to the hydrologic risk, with the base case scenario
considering a Generation Scaling Factor (GSF) of 0.75x in 2021 and
0.8x 2022. Fitch's base case scenario considers an average sales
price of BRL225/MWh in 2021-2022, with annual energy sales of
3.9GWh per year.

Progress on Primary Challenges: Fitch's rating concerns are mainly
at the Cemig GT level. The issuer's Eurobonds represent 50% of
total consolidated debt and mature in 2024, causing a high debt
maturity profile concentration. Positively, the group reduced 33%
of the outstanding Eurobonds amount in August 2021 by a pre-payment
of USD500 million (BRL2.5 billion). The remaining USD1.0 billion
Eurobonds still bring FX exposure, as the company's hedge
instrument is capped at BRL5 per USD1, below the current level.
Cemig also has to address the renewal of two generation
concessions, which represent 51% of Cemig GT's assured energy, a
concession that originally ended in 2024 but after a regulatory
agreement has been extended to 2027. The group still has time to
manage these exposures.

Reduced Business Risk: Brazilian electricity sector risk is lower
than the average risk of other sectors in the country. Risks vary
among segments, with the credit profile of distribution companies
linked to volatility on demand, ability to control manageable costs
and secure positive results in periodic tariff reviews. The
recognition from the regulatory body of the expected
over-contracted energy in the coming years as an involuntary
exposure is crucial, allowing the company to pass the entire energy
purchase cost to tariff. Cemig GT's generation is not significantly
exposed to meaningful concession expiration until May 2027. In
2021-2024, long-term contracts with defined prices provide some
cash flow predictability.

Ratings Equalized: As per Fitch's Parent and Subsidiary Linkage
Rating Criteria, the agency equalizes the ratings for Cemig, Cemig
D and Cemig GT based on the strong legal and operational linkages
among them and considers the subsidiaries stronger than the holding
company in its individual level. The legal ties include Cemig as
guarantor for Cemig GT's Eurobond issuance and the existence of
cross-default clauses. Debt financial covenants are also measured
on a consolidated basis, with centralized strategy and cash
management.

DERIVATION SUMMARY

Cemig's IDRs are lower than other electric energy groups in Latin
America such as Enel Americas S.A. (Enel Americas: A-/Stable), Enel
Chile S.A (Enel Chile: A-/Stable), Grupo Energia Bogota S.A. E.S.P.
(GEB: BBB/Stable) and Empresas Publicas de Medellin S.A. E.S.P.
(EPM: BB+/RWN). Excluding Enel Americas, a player with higher
geography diversification and present in different countries in the
region, Cemig's business profile is as strong as these other peers,
considering the high representativeness of regulated business and
some diversification in terms of assets and segments. However,
Cemig's operating environment risk is higher, reflecting its
location in Brazil (BB-/Negative), while its peers are more exposed
to countries with higher ratings, mainly Chile (A-/Stable) and
Colombia (BB+/Stable).

Compared to Brazilian peers in the power sector, Cemig's credit
profile is weaker than Engie Brasil S.A. (Engie Brasil) and
Transmissora Alianca de Energia Eletrica S.A. (Taesa), both rated
with Local-Currency and Foreign-Currency IDRs of 'BBB-' and 'BB',
respectively, due to higher business risk coming from its
distribution segment and typically worst operational performance as
a state-owned company. Taesa operates in the highly predictable
transmission segment, while Engie Brasil is the largest private
player in the generation segment.

Compared to Brazilian peers in National Scale, Cemig's credit
profile is weaker than Companhia Paranaense de Energia (Copel:
AAA(bra)/Positive) and stronger then Centrais Eletricas de Santa
Catarina (Celesc: AA(bra)/Stable). All of them are state-owned
companies and carry political risk. In comparison with Copel, which
has a similar business profile, this company has greater relevance
in the generation segment in the consolidated results, lower
financial leverage and less aggressive capex plan. Despite the
Celesc's solid financial profile, which benefits from a
conservative leverage ratio and less intense investment plan, it
presents a worse business profile with much higher exposure to the
distribution segment and has less financial flexibility compared to
Cemig.

KEY ASSUMPTIONS

-- Cemig D energy demand increase of 5.0% in 2021 and average
    annual growth of 1.1% in 2022-2024;

-- Cemig D's non-manageable costs fully passed through tariffs;

-- Average annual consolidated capex of BRL2.8 billion during
    2021-2024;

-- SAAG put option exercised and paid in cash in 2022 in the
    amount of BRL535 million;

-- Dividend payout of 50% of net income.

RATING SENSITIVITIES

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

-- Consolidated net adjusted leverage remaining below 3.0x on a
    sustainable basis;

-- Maintaining an adequate liquidity profile, combined with a
    reduction of the debt concentration in 2024;

-- A favorable outcome for the renewal of the Emborcacao and Nova
    Ponte concessions.

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

-- Deterioration of liquidity and reduction in financial
    flexibility;

-- Net adjusted leverage higher than 4.0x on a sustainable basis;

-- Significant operational issues in its mains subsidiaries Cemig
    D and Cemig GT;

-- Loss or costly renewal of generation concessions, depending on
    the financial structure.

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

Sound Liquidity: Cemig strengthened its liquidity and debt profile
in 2021, supported by cash inflow of BRL1.4 billion for the sale of
all its shares in Light S.A. (Light: Long-Term FC and LC IDRs
BB-/Stable), which represented 22.58% of Light's total capital, and
by the positive operating results. It reported robust strong
short-term debt coverage ratio of 3.3x as of June 30, 2021, with
BRL6.1 billion in cash and equivalents and BRL1.9 billion in debt
maturing in the next 12 months.

Cemig used part of the robust cash position during the second half
of 2021 to improve its debt profile. In August 2021 it concluded
the USD500 million repurchase of Eurobond, which represented a cash
outflow of BRL2.5 billion but reduced the debt concentration in
2024 by 33%. Pro forma considering this liability management
initiative, the remaining BRL3.6 billion cash position cover by
1.4x the sum of debt matures of 2021, 2022 and 2023 (2.4 billion).

The improved financial profile should benefit the group's access to
bank credit facilities and the capital markets, which will be
important along with the robust cash to support its aggressive
investment plan. Fitch believes Cemig needs to maintain solid
liquidity profile and capital structure in anticipation of the
challenges it will face in the coming years. On June 30, 2021,
Cemig group's total adjusted debt amounted to BRL17 billion,
including off-balance-sheet debt of BRL4.8 billion, with the
balance mainly consisting of Cemig GT's Eurobonds of BRL7.5 billion
- BRL5.0 billion after the pre-payment in August 2021 and
debentures of BRL5.7 billion.

ISSUER PROFILE

Cemig is one of the largest integrated power utility group in
Brazil. The company operates as a holding of electricity
concessionaires in the areas of generation, transmission and
distribution. Cemig is controlled by the State of Minas Gerais.

SUMMARY OF FINANCIAL ADJUSTMENTS

Revenues and EBITDA do not incorporate construction revenues and
construction costs.

ESG CONSIDERATIONS

CEMIG has an ESG Relevance Score of '4' for Governance 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 ratings 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.


CESP: Fitch Places 'BB+' Local Currency IDR on Watch Positive
-------------------------------------------------------------
Fitch Ratings has placed CESP - Companhia Energetica de Sao Paulo
(CESP)'s Long-Term Local Currency Issuer Default Rating (IDR) of
'BB+' on Rating Watch Positive and affirmed its Foreign Currency
IDR at 'BB'/Outlook Negative and its National Long-Term Rating at
'AAA(bra)'/Outlook Stable.

The rating actions follow the reorganization plan proposed by
CESP's main indirect shareholders (Votorantim S.A. and CPP
Investments), in which CESP will become a wholly-owned subsidiary
of VTRM Energia Participacoes S.A. (VTRM), a larger power
generation group. If the reorganization plan succeeds, CESP's
ratings will reflect VTRM's consolidated credit profile.

VTRM will receive stakes in Votorantim's energy assets and a
capital injection of BRL1.5 billion from CPP Investments. The
holding may use those resources to meet its growth strategy, adding
to asset diversification, while keeping a robust financial profile.
The Watch Positive should remain until the conclusion of the
reorganization, which may take more than six months given its high
complexity.

KEY RATING DRIVERS

Stronger Credit Linkage: CESP's ratings will reflect VTRM's
consolidated credit profile after the conclusion of the
reorganization plan. The new group structure strengthens CESP's
linkage with VTRM, according to Fitch's Parent & Subsidiary Linkage
Rating Criteria. VTRM will fully control CESP, which will be its
main cash generator, and have stronger access to its liquidity.

Ring-fence controls imposed by CESP's debtholders are weak, given
the absence of financial covenants and soft constrains on
intercompany loans or capital reduction. The new approach overcomes
the negative effect on CESP from potential higher pressure on
dividends to fund the parent's projects. On the other hand, CESP
should count on the group's support, if needed.

Improved Business Profile: The parent benefits from greater asset
diversification and lower operational risks, as 20% of its current
EBITDA derives from wind farms. The incorporation of stakes in
several of Votorantim's assets will expand VTRM's assured energy in
216 aMW (+15%) and increase its adjusted EBITDA around BRL80
million (+3%) on a consolidated basis, including dividends received
from associates.

VTRM has an outstanding position in renewables in Brazil, with an
installed capacity of 3.3GW to be fully operational by the end of
2022. The company obtains a competitive edge from Votorantim's
energy trader (Votener), which secures long-term demand from a
high-growth market for its projects.

Strong Financial Profile: The proposed BRL1.5 billion equity
injection will support VTRM's expansion plan, compensating for
lower dividends to be received from CESP due to the water crisis
and the postponement of indemnification from hydro power plant
(HPP) Tres Irmaos. The base case scenario, considering the new
group structure, forecasts a consolidated net leverage under 3.5x
on a sustainable basis even with negative FCFs in the coming years.
It assumes EBITDA of BRL1.4 billion in 2021 and BRL2.0 billion in
2022, a total capex of BRL6.3 billion in 2021-2024 and a 50%
dividend payout ratio. The migration of CESP's minority
shareholders to VTRM is also positive, ensuring full access to the
subsidiary's robust dividend flow.

DERIVATION SUMMARY

If the merger succeeds, the upgraded CESP's LC IDR will be the same
as that of Engie Brasil Energia S.A.'s (Engie BR; BBB-/Negative),
which is somewhat constrained by the operational environment in
Brazil. CESP's rating will reflect VTRM's consolidated credit
profile, whose scale will be lower than that of Engie BR, with
lower margins. The groups' exposure to hydro power plants will be
similar, consisting of around 70% of total assured energy. VTRM's
credit metrics should be more pressured, with gross leverage
estimated in the 3.0x-3.5x range, while Engie BR's is expected to
fall below 3.0x as of 2022.

KEY ASSUMPTIONS

Fitch's key assumptions within the rating case for the issuer
include:

-- GSF of 0.75 in 2021, 0.80 in 2022 and 0.85 in 2023;

-- Total annual sales of 1.3 aGW, on average, in 2021-2024, based
    on VTRM's consolidated profile;

-- Total revenues of BRL7.4 billion in 2022 and BRL7.7 billion in
    2023;

-- EBITDA of BRL1.4 billion in 2022 and BRL2.0 billion in 2023;

-- Total capex of BRL6.3 billion in 2021-2024;

-- Dividend payout of 50%.

RATING SENSITIVITIES

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

-- CESP's LC IDR should be upgraded by one notch upon the
    conclusion of its merger into VTRM;

-- An upgrade in FC IDR is unlikely in the near term since it is
    constrained by Brazil's country ceiling, 'BB';

-- An upgrade in National Scale Rating does not apply as it is at
    the top of the national scale.

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

-- A sovereign downgrade would trigger a downgrade on CESP's FC
    IDR;

-- Total debt/EBITDA and net debt/EBITDA above 4.0x and 3.5x,
    respectively;

-- Serious operational issues related to performance at Porto
    Primavera HPP;

-- Deterioration in the liquidity profile;

-- Unfavorable developments on contingent liabilities that
    materially affect liquidity over the rating horizon.

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

Capital Injection Improves Liquidity: On a consolidated basis, the
equity contribution of BRL1.5 billion at VTRM will support part of
the expected negative FCFs. Fitch expects the group to keep a sound
cash position and benefit from a strong financial flexibility to
meet debt refinancing and capex needs.

ISSUER PROFILE

CESP is a publicly-traded company that operates Porto Primavera, a
1.5 GW hydro power plant (HPP) located in Brazil's Southeast
region. CESP is controlled by VTRM Energia e Participacoes S.A.,
which holds a 40% stake, including 93.5% of voting shares.

ESG CONSIDERATIONS

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


JBS SA: Unit Will Buy Smoked Meat Maker
---------------------------------------
Reporter-Herald reports that Swift Prepared Foods will buy
Sunnyvalley Smoked Meats Inc. for $90 million.

Swift sells packaged foods and is a unit of JBS USA LLC, which is
81%-owned by global meat processor JBS SA in Brazil. JBS SA also
owns beef and pork processor Pilgrim's Pride Corp.

JBS USA and Pilgrim's Pride are in Greeley. Swift Prepared Foods is
based in Chicago.

Sunnyvalley processes ham, turkey, bacon and pork products in
100,000 square feet of space in Manteca, California, between
Stockton and Modesto. Its website said the company employs about
325 workers and planned in 2020 to add a new 60,000-square foot
facility focused on bacon processing.

William Andreetta started the company in 1990. He had bought
Manteca Meat Service from his father in 1972. A trade journal said
Sunnyvalley has sold mainly to retailers on the west coast of North
America, including Mexico and Alaska. It was producing about 35
million pounds of meat a year as of 2017.

JBS said in a press release that Sunnyvalley has about $150 million
in annual sales.

The acquisition boosts Swift's "value-added and branded portfolio
[providing] more diverse product offerings to customers and
consumers," said Tom Lopez, president and chief operating officer,
Swift Prepared Foods.

Swift currently has processing facilities in Mississippi, Missouri,
Indiana, Iowa and Vermont.




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

FINANCIERA DE DESARROLLO NACIONAL: Fitch Affirms 'BB+' IDRs
-----------------------------------------------------------
Fitch Ratings has affirmed Financiera de Desarrollo Nacional S.A.'s
(FDN) Long-Term (LT) Foreign and Local Currency Issuer Default
Ratings (IDRs) at 'BB+'. The Rating Outlook is Stable. Fitch has
also affirmed FDN's National Long-Term Rating at 'AAA(col)' with a
Stable Outlook.

KEY RATING DRIVERS

IDRS, NATIONAL RATINGS AND SENIOR DEBT

FDN's ratings are aligned with those of the sovereign, reflecting
Fitch's assessment of the government's willingness and capacity to
provide timely support if needed. Although the Colombian government
does not guarantee all of FDN's liabilities, Fitch views the entity
as an integral part of the state given its role in implementing the
economic development policies of the government's National
Development Plan, its strategic importance implementing
infrastructure projects across the country and the state's majority
ownership. Colombia's ability to support FDN is reflected in its
sovereign rating of 'BB+'/Outlook Stable.

FDN has continued to mobilize funding into the Fourth Generation
(4G) national highway plan and other major infrastructure projects.
FDN's role continues to grow as it is one of the few development
banks focusing on the financing of infrastructure projects within
Colombia.

Although FDN's ratings are based purely on Fitch's assessment of
expected government support, the financial profile is relevant to
the agency's appreciation about the policy role of the entity for
the government.

FDN's loan book continues to increase as a portion of its balance
sheet, a trend Fitch expects to continue over the rating horizon.
As of June 2021, FDN's gross loans portfolio represented 75% of
total assets, up from 58% as of December 2020. FDN's borrower
concentration remained high and is a source of risk in the agency's
opinion, although this is common for development banks. There were
no impaired loans at the end of June 2021; however, rapid loan
growth could challenge asset quality over the medium term as the
loan book seasons. The bank's investment portfolio continues to be
a relevant, yet declining, proportion of total assets at 14.5% as
of the same date.

FDN's earning mix has shifted from being driven by gains in its
securities portfolio as its loan portfolio grew and interest
revenues gained prominence. As a result, and under the recent
crisis, its core profitability metric has shown some volatility.
Fitch expects that the entity's profitability (operating profit to
risk weighted assets) to return to levels close to 3% in the
mid-term.

FDN's Fitch Core Capital to Risk Weighted Assets ratio slightly
declined to 31.4% at June 2021, from 32.6% at YE 2020, mainly
reflecting growth in gross loans. FDN's liquidity and
capitalization remain robust as growth within the Colombian
infrastructure and project finance market comes from a low base.
Despite rapid loan growth, the agency expects capitalization and
liquidity to remain robust over its rating horizon in view of the
current level of these ratios. FDN has been improving its funding
profile by issuing bonds in the local market, including an exchange
of subordinated debt to support regulatory capital ratios and to
decrease costs. In addition, FDN is in the process of issuing term
deposits with institutional investors to further improve funding
costs and diversification.

Fitch affirmed the local senior debt issuance at the same level as
FDN's National Long-Term ratings as the notes' likelihood of
default is the same as the entity's.

SUPPORT RATING AND SUPPORT RATING FLOOR

FDN's Support Rating and Support Rating Floor were affirmed at '3'
and 'BB+', respectively, given the entity's important policy role
in implementing infrastructure projects. Fitch's Support Rating
Floor indicates a level below which the agency will not lower the
bank's Long-Term IDRs, as long as assessment of the support factors
does not change.

RATING SENSITIVITIES

IDRS, NATIONAL RATINGS AND SENIOR DEBT

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

-- A rating upgrade is unlike in the near future as the banks'
    IDRs are constrained by the sovereign rating. However, any
    positive rating action on the sovereign would lead to a
    similar rating action on FDN's rating.

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

-- As a development bank that is majority owned by the state,
    FDN's creditworthiness and ratings are directly linked to
    those of the sovereign. Hence, its ratings and Outlook should
    move in line with any potential change in Colombia's ratings.

-- Fitch will monitor any change in the government's support
    propensity, and particularly the potential impact on the
    development bank's ratings after the holding company legal
    framework is defined.

-- Although not a baseline scenario, FDN's ratings could change
    if Fitch perceives a decrease in the bank's strategic
    importance to the government's public policies.

SUPPORT RATING AND SUPPORT RATING FLOOR

Support Ratings and Support Rating Floors would be affected if
Fitch changes its assessment of the government's ability and/or
propensity to support FDN.

SENIOR DEBT

FDN's senior notes' ratings are sensitive to any changes in FDN's
IDRs.

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

Financiera de Desarrollo Nacional ratings are support driven from
the Colombian government.

ESG CONSIDERATIONS

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


FINDETER: Fitch Affirms BB+ LongTerm Currency IDRs, Outlook Stable
------------------------------------------------------------------
Fitch Ratings has affirmed Financiera de Desarrollo Territorial
S.A.'s (Findeter) Long-Term Foreign and Local Currency Issuer
Default Ratings (IDRs) at 'BB+'. The Rating Outlook is Stable.
Fitch has also affirmed Findeter's National Long-Term Rating at
'AAA(col)'. The Rating Outlook is Stable.

KEY RATING DRIVERS

IDRS, NATIONAL RATINGS AND SENIOR DEBT

Findeter's ratings are aligned with those of the sovereign,
reflecting Fitch's assessment of the Colombian government's
willingness and capacity to provide timely support to Findeter if
needed. Although the Colombian government does not explicitly
guarantee all of Findeter's liabilities, Fitch views the entity as
an integral arm of the state, given its role in implementing
economic development policies of the government's National
Development Plan, its role in financing regional and urban
infrastructure, and the state's majority ownership. Colombia's
ability to support the development bank is reflected in its
sovereign rating of 'BB+'/Stable.

Findeter is a wholesale development bank, which structures general
obligation loans to supervised financial institutions, generally
backed by promissory notes from infrastructure projects. Findeter's
mission as a development bank to channel financing into
implementing infrastructure projects on behalf of the state allows
the entity to foster a social impact while ensuring a profitable
return aligned with inflation.

Since the national government declared an economic, social and
ecological emergency in 2020, Findeter has played its role as a
local development bank, supporting private sector and state-owned
companies and financing key sectors through special and direct
lines of credit after the coronavirus outbreak, which further
supports Fitch's opinion on the entity's relevant policy role.

Although Findeter's ratings are based solely on Fitch's assessment
of expected government support, the financial profile is relevant
to the agency's appreciation of support propensity. Impairments
have been low historically, as the majority of its credit exposure
is to the nation's largest banks, with NPLs reaching only 0.02% at
June 2021. However, concentrations are considered high, as the top
20 exposures accounted for 95.7% of total loans. Findeter balances
profitability with its social mission, targeting a ROE in line with
inflation. At June 2021, the bank's operating profit to
risk-weighted assets (RWAs) ratio improved to 1.9%, from a
pressured 0.8% in 2020.

A significant decrease in RWAs after the implementation of Basel
III capital rules boosted this ratio. Operating profit also
benefited from an increase in net gains in derivatives valuation,
offsetting the decrease in the net interest margin. Fitch expects
profitability metrics to remain pressured by the environment of
historically low interest rates.

With the adoption of Basel III guidelines in 2021, Findeter´s
regulatory capital ratio improved to 33.1% at June 2021, from 19.6%
at YE2020. At June 2021, CET1 was 29.8%, which compares favorably
with its local and international peers. The loans to customer
deposits ratio of 155.1% at the same date exceeded the banking
sector average (106%), as the bank utilizes longer tenor funding
that helps to better match its asset and liability structure. Given
its business model, concentration by depositor is high as 81.3% of
deposits are institutional, while the top 20 depositors accounted
for 58.2% of total deposits.

SUPPORT RATING AND SUPPORT RATING FLOOR

Findeter's Support Rating and Support Rating Floor were affirmed at
'3' and 'BB+', respectively, given the entity's important policy
role in financing regional and urban infrastructure. Fitch's
Support Rating Floors indicate a level below which the agency will
not lower the bank's long-term IDRs, as long as assessment of the
support factors does not change.

SENIOR UNSECURED DEBT

The rating of Findeter´s senior unsecured debt is at the same
level as the bank's Long-Term Issuer Default Rating (IDR) of 'BB+'
as the likelihood of default of the debt issuance is the same as
the likelihood of default of the bank.

SUBORDINATED DEBT

Findeter's legacy subordinated bonds are rated 'AA+(col)' on the
national scale, one notch below Findeter's Long-Term National Scale
rating of 'AAA(col)', reflecting subordination and lower expected
recovery relative to senior obligations in a gone concern
scenario.

RATING SENSITIVITIES

IDRS, NATIONAL RATINGS, SENIOR DEBT AND SUBORDINATED DEBT

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

-- As a development bank that is majority owned by the state,
    Findeter's creditworthiness and ratings are directly linked to
    those of the sovereign. Hence, its ratings and Outlook will
    move in line with any potential change in Colombia's ratings;

-- Fitch will monitor any change in the government's support
    propensity, and particularly the potential impact on the
    development bank's ratings after the holding company legal
    framework is defined;

-- Although not a baseline scenario, Findeter's ratings could
    change if Fitch perceives a decrease in the bank's strategic
    importance to the government's public policies.

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

-- A rating upgrade is unlikely in the near future as the banks´
    IDRs are constrained by the sovereign rating. However, any
    positive rating action on the sovereign would lead to a
    similar rating action on Findeter's ratings.

Support Ratings

Support Ratings and Support Rating Floors would be affected if
Fitch changes its assessment of the government's ability and/or
propensity to support Findeter.

SENIOR & SUBORDINATED DEBT

Senior and subordinated notes' ratings are sensitive to any changes
in Findeter's IDRs.

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

The ratings are support-driven. This entity's ratings are linked to
those of the Colombian Sovereign.

ESG CONSIDERATIONS

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




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

DOMINICAN REPUBLIC: Get Ready to Pay More for Onions
----------------------------------------------------
Dominican Today reports that the Federation of onion dealers
grouped in the FCUE said there's an onion shortage in the country,
for which they reiterate that it is necessary for the Dominican
Republic Government to authorize import permits to retailers to
avoid a possible increase in the product in the coming months.

In a press release, it assured that there is no abundance of onion
in the country and that, if not imported, its price could again
rise to more than RD$100 per pound, according to Dominican Today.

"There is no onion, there is no abundance of it. If import permits
are not granted for December, there will not be, and the little
that is sold, would have a price higher than RD$100 per pound, as
in previous times," said Julio Lopez, president of the FCUE, the
report notes.

                    About Dominican Republic

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

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

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

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

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

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


DOMINICAN REPUBLIC: Industries Cringe As Freight Costs Skyrocket
----------------------------------------------------------------
Dominican Today reports that the issue of freight costs at the
international level is affecting the industries and the retail
sector of the country, which have to have more time and resources
to place the containers on Dominican docks.

The president of the Association of Industries of the Dominican
Republic (AI-RD), Juan Celso Marranzini, highlighted that freight
rates have increased between 500% and 600%, according to Dominican
Today.

"You have to see the magnitude that freight has increased; all this
is generated by the pandemic," the report notes

                  About Dominican Republic

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

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

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

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

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

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




=====================
E L   S A L V A D O R
=====================

EL SALVADOR: S&P Affirms 'B-/B' SCRs & Alters Outlook to Neg.
-------------------------------------------------------------
S&P Global Ratings revised its outlook on El Salvador to negative
from stable. S&P also affirmed its 'B-/B' long- and short-term
sovereign credit ratings. S&P's transfer and convertibility (T&C)
assessment remains 'AAA'.

Outlook

S&P said, "The negative outlook reflects the at least one-in-three
chance of a downgrade over the next six to 18 months if the
government does not make adequate progress filling its substantial
financing gap in the coming years. We expect that the government
will reach an agreement with the IMF to secure new funding and gain
greater access to other multilateral and commercial sources."
However, delays in obtaining more funding, as well as in
undertaking corrective fiscal measures to reduce deficits, could
hurt investor confidence and make it more difficult for the
government to fill its financing gap.

Downside scenario

S&P could lower the ratings over the next six to 18 months if it
perceives a weakening of the government's ability to:

-- Secure adequate funding for its fiscal deficits and rollover
needs,

-- Undertake fiscal adjustment needed for stabilizing the recent
increase in its debt burden, and

-- Sustain investor confidence.

Higher refinancing risks also could lead to a downgrade.

Upside scenario

In contrast, S&P could revise the outlook to stable over the next
six to 18 months if the combination of improved debt management,
continued economic recovery, and greater clarity about fiscal
policy and other reforms contains refinancing risks. A successful
reform program that contributes to sustained GDP growth and better
external results could stabilize and gradually reduce the
sovereign's debt burden and financing needs.

Rationale

The 'B-' long-term ratings on El Salvador are based on the
country's institutional weaknesses, reflected in long-standing
political unpredictability amid poor checks and balances; low per
capita GDP at $4,300; and only moderate GDP growth due to
persistently low investment. In addition, the sovereign has weak
public finances and a very high debt burden above 80% of GDP.

The government's heavy reliance on short-term domestic debt has
exacerbated rollover risk. Vulnerabilities associated with external
debt and financing are key rating weaknesses. Furthermore, El
Salvador lacks monetary flexibility due to dollarization, which
remains in place even after the government's recent decision to
accept Bitcoin as an alternative legal tender. Monetary
inflexibility increases the risks of the sovereign's high debt
burden.

Institutional and economic profile: Legislative elections,
declining crime, and a strong economic recovery have bolstered the
president's mandate

-- S&P expects the economy will grow 9% in 2021, backed by strong
growth in exports and remittances and by progress on COVID-19
vaccinations.

-- President Nayib Bukele's overwhelming majority in congress has
facilitated an increased concentration of power, but it has also
raised concerns about checks and balances.

-- Control over congress should allow the administration to pass
measures to correct fiscal weaknesses and enhance policy
credibility.

The economy is rebounding strongly in 2021, growing around 9%
(following a contraction of nearly 8% last year) and quickly
recovering its pre-pandemic levels. S&P assumes that recovery in
the U.S. and more favorable external conditions will help boost
growth in 2021 and beyond. Remittances, which account for about 25%
of GDP, have proven more resilient than expected during the
pandemic and should remain high due to strong GDP in the U.S. in
the coming years. Moreover, despite the initially more severe
impact of the pandemic on El Salvador compared with its neighbors,
a strong vaccination program has paved the way for a faster
economic recovery.

Nevertheless, S&P expects economic growth to return to its
medium-term level of around 2.4% over the next three years. El
Salvador has low income, with per capita GDP estimated at about
$4,300 for 2021. The country has experienced only moderate economic
growth for many years stemming from low investment, historical
political gridlocks between congress and the president, weak
competitiveness, and high crime.

President Bukele's Nuevas Ideas party secured a landslide victory
in the Legislative Assembly earlier this year and now holds a
qualified majority. The electoral results have led to an
unprecedented concentration of power in the executive, following
several decades of divided power (and sometimes deadlock) between
the president and the legislature. President Bukele's party had no
representation in congress before the legislative election. The new
distribution of power should allow the government to pass reforms,
approve budgets, and get authorization for new borrowing without
much opposition, potentially improving governance.

Conversely, it could weaken checks and balances between the
country's public institutions, as highlighted by recent criticism
of the government's move to change senior officials in the
judiciary and law enforcement institutions. The Supreme Court has
ruled in favor of immediate presidential reelection, and the
government has announced plans to reform the constitution in the
coming years.

After more than two years in office, President Bukele's popularity
remains very high, likely reflecting the good progress on COVID-19
vaccinations, economic recovery, perceptions of an improvement in
public security, and discontent with traditional political
parties.

The administration is advancing public investment projects in key
areas of the economy. Nevertheless, the pandemic has delayed
potential advances on economic reforms to increase productivity and
the implementation of an ambitious public-private partnership
investment program. Moreover, the relationship between the
government and the private sector has been strained, partly because
of investor concerns about predictability and rule of law.

Flexibility and performance profile: El Salvador's fiscal situation
is likely to remain weak given the limited financing options

-- S&P projects fiscal deficits to gradually narrow and financing
needs to remain high over the next two years.

-- S&P assumes the government will secure a multiyear program with
the IMF, which would provide official funding to partially close
the financing gap and a policy anchor for fiscal correction.

-- As fiscal deficits are largely covered with external
borrowings, S&P projects relatively high narrow net external debt
and weakening external liquidity ratios.

S&P projects the fiscal deficit will narrow to about 6% of GDP in
2021, from 10% in the previous year, as economic recovery boosts
revenues and as pandemic-related spending is withdrawn. Recent
anti-evasion and anti-corruption efforts, coupled with higher
consumption driven by remittances, explain the strong revenue
performance. However, the risks of fiscal slippage on the
expenditure side from wages, pensions, and interest payments are
still significant. S&P projects that the change in net general
government debt will average 4.7% of GDP in 2021-2024.

The government has been funding its large fiscal deficits mainly
from external borrowings from official creditors and capital
markets. This has exacerbated El Salvador's high government debt
burden, which S&P expects to remain around 84% of GDP in 2021-2024
(in net terms). Fiscal consolidation efforts, supported by the
Fiscal Responsibility Law of 2016 and pension reform in 2017, have
proved insufficient to reduce the sovereign's very high debt
burden.

S&P said, "In our base case, we expect the government's interest
burden to remain above 20% of revenues in the coming years because
of the high debt and increasing funding costs. We estimate the
government has already closed its financing gap for 2021, relying
heavily on the Central American Bank for Economic Integration and
other multilateral institutions.

"We expect that the government will reach an agreement on a
multiyear program with the IMF to secure additional funding, as
well as to anchor a larger reform program to address its weak
public finances. The government faces a significant external
amortization of $800 million in January 2023. Furthermore, El
Salvador has continued to rely largely on short-term domestic debt
(LETES and CETES) to finance its deficits. Short-term debt is
currently at an all-time high of $2.3 billion (around 8% of GDP).
The debt profile is also subject to external vulnerabilities, given
that we estimate that nonresidents hold over 60% of sovereign
commercial debt."

El Salvador's limited fiscal flexibility remains a key credit
constraint--in particular, it has restricted monetary flexibility
because of its use of the U.S. dollar as the official currency. In
our view, significant shortfalls in basic services and
infrastructure continue to limit the government's ability to curb
expenditure, while a large informal economy constrains its ability
to raise additional revenue.

S&P said, "We expect the current account deficit (CAD) to widen in
2021 as the economy recovers and the substantial increase in
imports outweighs the increase in exports. We estimate CADs to
average 3% of GDP in 2021-2024. The country's trade and income
deficits are partially offset by solid transfers from remittances.
We estimate foreign direct investment will remain around 1.5% of
GDP over 2021-2024, insufficient to cover CADs. As a result, we
expect El Salvador's narrow net external debt to gradually worsen
and average 85% of current account receipts over the next three
years.

"As higher external debt amortizations come due, we expect the
external liquidity ratio to worsen, with gross external financing
needs averaging 120% of its current account receipts and usable
reserves. Furthermore, we think the country's external profile
could rapidly deteriorate if the government were unable to secure
sufficient external borrowings in the coming years.

"We expect the banking sector to maintain adequate capitalization
and liquidity ratios, even as the authorities are gradually
withdrawing the measures implemented to provide liquidity to the
financial sector. Credit to the private sector is recovering after
having stagnated throughout 2020, while total deposits have
continued to perform strongly due to limited investment options.
Given that banks' assets-to-GDP ratio is about 80% and that our
Banking Industry Country Risk Assessment (BICRA) is '8', we
consider El Salvador's banking sector contingent liabilities to be
limited. (BICRAs are grouped on a scale from '1' to '10', ranging
from what we view as the lowest-risk banking systems [group '1'] to
the highest-risk [group '10'].)"

The ratings on El Salvador are constrained by the absence of
monetary policy flexibility. The government has recently approved
legislation for Bitcoin to become legal tender, coexisting with the
U.S. dollar and ensuring immediate convertibility between both
currencies, at market prices. Despite the change, S&P believes the
country will continue using the U.S. dollar as its main currency.
So far, banks have adopted Bitcoin as a medium of exchange but have
sought to eliminate their exposure to the cryptocurrency on their
balance sheets.

The country moved to full dollarization in 2001, and S&P expects no
significant change in the exchange rate regime, given the very high
exit costs. This supports its 'AAA' T&C assessment and its opinion
that the sovereign would not restrict dollar outflows by private
parties to make debt service payments.

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  

  EL SALVADOR

  Transfer & Convertibility Assessment

  Local Currency               AAA


  EL SALVADOR

  Senior Unsecured              B-

  RATINGS AFFIRMED; CREDITWATCH/OUTLOOK ACTION  
                            TO              FROM
  
  EL SALVADOR

  Sovereign Credit Rating B-/Negative/B   B-/Stable/B




=============
J A M A I C A
=============

JAMAICA: Energy Prices Expected to Climb Higher in 2022
-------------------------------------------------------
RJR News reports that energy prices are expected to inch up in 2022
after surging more than 80 per cent in 2021, fuelling significant
near-term risks to global inflation in many developing countries.

The information is contained in the World Bank latest Commodity
Markets Outlook, according to RJR News.

The multilateral development bank said energy prices should start
to decline in the second half of 2022 as supply constraints ease,
with non-energy prices such as agriculture and metals also expected
to ease after strong gains in 2021, the report notes.

                        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
===========

ALTOS HORNOS DE MEXICO: Exploring U.S. Bankruptcy Filing
--------------------------------------------------------
Steelmaker Altos Hornos de Mexico is looking at using Chapter 11
protection in the U.S. in order to dispute payments its chairman
and controlling shareholder Alonso Ancira agreed to make in order
to settle bribery allegations in Mexico, the Wall Street Journal
reported, citing people familiar with the matter.

Investment bank Jefferies Group LLC is seeking financing to keep
the steelmaker operating through the bankruptcy process, the people
told the WSJ.

According to the WSJ, the Mexican steelmaker is exploring a U.S.
bankruptcy filing for Minera del Norte SA, a subsidiary that does
business in the U.S.  The chapter 11 filing might provide a venue
for the parent company to dispute an agreement by AHMSA's chairman
to have his company pay Mexico's state-owned oil company to settle
corruption claims against him, according to WSJ's sources.

              About Altos Hornos de Mexico SAB

Altos Hornos de Mexico S.A.B. de C.V., an integrated steel
producer, has two steel plants located in Monclova, Coahuila, and
operates its own iron and metallurgical coal mines. Its current
nominal production capacity is more than 5 million tons of liquid
steel per year, which is then transformed into diverse finished
products. Additionally, AHMSA operates thermal coal mines in
Mexico. It employs over 19,000 workers in steel plants, mines and
services.




===========
P A N A M A
===========

SIXTEENTH MORTGAGE 2021-1: S&P Assigns 'CCC+' Rating on C Notes
---------------------------------------------------------------
S&P Global Ratings assigned its long-term global scale ratings to
Sixteenth Mortgage-Backed Notes Trust's series A, B, and C notes, a
Panamanian RMBS transaction backed by mortgage loans originated and
serviced by Banco La Hipotecaria S.A. At the same time, S&P
assigned its long-term global scale rating to La Hipotecaria
Panamanian Mortgage Trust 2021-1's series 2021-1 certificates, a
retranched security of series A notes.

The ratings reflect:

-- The availability of approximately 11.1% and 2.2% credit support
in form of subordination for classes A and B;

-- The timely interest and principal payments made under stressed
cash flow modeling scenarios consistent with the assigned ratings;

-- S&P's opinion of the operational and servicing capabilities of
Banco La Hipotecaria S.A. as the sub-servicer of the securitized
pool, which after applying our criteria, resulted in a maximum
potential rating consistent with the assigned ratings;

-- The transaction's legal structure, which constitutes a true
sale of the securitized assets to an entity that S&P considers
unlikely to be subject to a bankruptcy procedure under its
criteria;

-- The transaction's counterparty risk, which provides for minimum
rating requirements that are consistent with the assigned ratings;

-- S&P's expectation that under a moderate ('BBB') stress
scenario, all else being equal, its assigned ratings on the series
A notes and series 2021-1 certificates, respectively, are
consistent with the tolerances outlined in our rating definitions;
and

-- The payment structure of the series of notes and certificates,
which, through a targeted amortization payment (for series A notes
only) as well as several triggers that could lead into rapid
amortization events, allocate the collections proceeds to the
repayment: first, the series A notes and the series 2021-1
certificates, and afterwards, the series B and C notes considering
its subordination as per the transaction's structure.

Since S&P published its presale report on Oct. 18, 2021,the final
maturity dates were updated, and the series' coupons have been
defined:

La Hipotecaria Panamanian Mortgage Trust 2021-1

-- Series 2021-1 certificates: PNMR – 1.40%; July 14, 2052

Sixteenth Mortgage-Backed Notes Trust

-- Series A notes: PNMR – 1.35%; July 14, 2052
-- Series B notes: PNMR – 0.25%; July 14, 2052
-- Series C notes: PNMR + 1.00%; July 14, 2052

PNMR--Panamanian mortgage market reference rate.

S&P said, "To assign the rating on the series 2021-1 certificates,
we used our "Global Methodology For Rating Retranchings Of ABS,
CMBS, And RMBS," published Aug. 1, 2016. Based on these criteria,
we assigned a 'BBB (sf)' rating to the series 2021-1 certificates,
as, in our view, the repayment on the certificates will depend
entirely on the repayment on the series A notes; its structure
contemplates several features, as previously mentioned, that in
case of being activated, will aim to ensure the rapid amortization
on the certificates. Also, in our view, the operational and
counterparty risks of the series A notes are materially the same to
those of the series 2021-1 certificates.

"The series B and C notes were not able to withstand the stresses
applied at a 'B' rating level. Therefore, we used our "Criteria For
Assigning 'CCC+', 'CCC', 'CCC-', and 'CC' Ratings," published Oct.
1, 2012. Based on historical performance information on the
mortgage loans originated and serviced by La Hipotecaria we have
determined that the series B notes would be capable to withstand a
steady-state scenario with no additional stress, which is
consistent with the assigned 'B- (sf) ' rating. As for the series C
notes, we are assigning a 'CCC+ (sf)' rating, which considers the
structural subordination, the absence of hard credit enhancement,
as well as our view that repayment would depend upon favorable
conditions."

  Ratings Assigned

  Sixteenth Mortgage-Backed Notes Trust

  Series A notes: USD $100 million: 'BBB (sf)'
  Series B notes: USD $10 million: 'B- (sf)'
  Series C notes: USD $2.5 million: 'CCC+ (sf)'

  La Hipotecaria Panamanian Mortgage Trust 2021-1

  Series 2021-1 certificates, USD $100 million: 'BBB (sf)'


SIXTEENTH MORTGAGE: Fitch Gives Final 'CC' on Series C Notes
-------------------------------------------------------------
Fitch Ratings has assigned final ratings to the notes issued by La
Hipotecaria Sixteenth Mortgage-Backed Notes Trust.

There were no changes to the structure or to the underlying pool of
mortgages backing the transaction since the assignment of the
expected rating on Oct. 15, 2021. The Series A notes priced five
basis points lower than initially expected and modeled by Fitch,
credit positive to the transaction.

DEBT              RATING               PRIOR
----              ------               -----
La Hipotecaria Sixteenth Mortgage-Backed Notes Trust

Series A    LT BBB-sf  New Rating    BBB-(EXP)sf
Series B    LT CCCsf   New Rating    CCC(EXP)sf
Series C    LT CCsf    New Rating    CC(EXP)sf

TRANSACTION SUMMARY

The notes are backed by a $112.5 million pool of residential
mortgages to lower-to middle-income borrowers in Panama by Banco La
Hipotecaria S.A. (La Hipotecaria). Fitch's ratings address the
likelihood of timely payment of interest on a monthly basis and
ultimate payment of principal by legal final maturity in July 2052
for the Series A notes and ultimate payment of interest and
principal for Series B and C notes.

KEY RATING DRIVERS

Assumptions Reflect Portfolio with Standard Characteristics
(Neutral): Fitch has defined a weighted average foreclosure
frequency (WAFF) of 14.5% and a WA recovery rate (WARR) of 56.4%
for the 'BBB-sf' stress scenario and a WAFF of 5.6% and a WARR of
73.6% for the expected scenario. These assumptions consider the
main characteristics of the assets: seasoning averages 49 months,
the remaining term is 312 months, the WA original loan-to-value
ratio is 90.2%, the WA current loan-to-value ratio is 79.1%, the WA
payment-to-income ratio is 26.4%, and the vast majority of
borrowers (88.5%) pay through payroll deduction mechanism.

Adequate Capital Structure Supports Ratings (Positive): The Series
A notes benefit from a sequential-pay structure wherein target
amortization payments for this series are senior to interest and
principal payments on the Series B and C notes. The series A notes
also benefit from credit enhancement (CE) of 11.1%, an interest
reserve account equivalent to 3.0x its next interest payment and
excess spread, which allow them to pass the 'BBB-sf' stresses. The
series B notes benefit from CE of 2.2% and excess spread, while the
series C notes benefit from excess spread, although none of them
are able to surpass the expected WAFF and WARR defined by Fitch.

Exposure to Subsidy from Panamanian Government (Negative): 100% of
the mortgage pool benefits from Panama's Preferential Treatment
Law, whereby the government provides lenders a subsidy, through
fiscal credits, for originating mortgages below market interest
rates for a definite period of 10 or 15 years. This exposes the
transaction to negative carry, as cash flows from these fiscal
credits are received with some delays after they are originated.

Operational Risk Mitigated (Neutral): Grupo ASSA, S.A. (the primary
servicer) has hired La Hipotecaria as the servicer for the
mortgages. Fitch considers La Hipotecaria's expertise in
originating and servicing mortgages for low- to middle-income
borrowers to be adequate and in line with market standards. Fitch
currently rates four other RMBS transactions backed by mortgages
originated by La Hipotecaria out of Panama.

Ratings Capped by Country of Assets (Negative): Panama's Issuer
Default Rating is 'BBB-'/Negative Rating Outlook and its Country
Ceiling is 'A-' (as of Feb. 3, 2021). The rating of the series A
notes is constrained by Panama's sovereign rating due to the
portfolio's exposure to the sovereign. About 18.3% of the
residential mortgages were granted to employees of the top five
public sector employers within the proposed pool of mortgages and
100% of the pool benefits from an interest rate subsidy provided by
the Republic of Panama.

RATING SENSITIVITIES

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

-- The ratings of the La Hipotecaria Sixteenth Mortgage-Backed
    Notes Trust Series A Notes are sensitive to changes in the
    credit quality of Panama. A downgrade of Panama's ratings
    could lead to a downgrade on the series A notes. Severe
    increases in foreclosure frequency as well as reductions in
    recovery rates could lead to a downgrade of the notes.

-- The transaction performance may also be affected by changes in
    market conditions and the economic environment. Weakening
    economic performance is strongly correlated to increasing
    levels of delinquencies and defaults that could reduce CE
    available to the notes. Additionally, unanticipated declines
    in recoveries could lead to lower net proceeds, which may make
    certain note ratings susceptible to potential negative rating
    actions depending on the extent of the decline in recoveries.

-- Fitch conducts sensitivity analyses by stressing both a
    transaction's base case FF and RR assumptions and examining
    the rating implications on all classes of notes. Results of
    Fitch's sensitivity analysis can be viewed in the related
    presale report.

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

-- The ratings of the La Hipotecaria Sixteenth Mortgage-Backed
    Notes Trust Series A Notes are sensitive to changes in the
    credit quality of Panama. An upgrade of Panama's ratings could
    lead to an upgrade on the notes.

BEST/WORST CASE RATING SCENARIO

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

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

Fitch was provided with Form ABS Due Diligence-15E (Form 15E ) as
prepared by KPMG. The third-party due diligence described in Form
15E focused on comparing or re-computing certain information with
respect to 300 mortgage loan contracts from the collateral pool of
assets for the transaction. Fitch considered this information in
its analysis, and it did not have an effect on Fitch's analysis or
conclusions. A copy of the Form 15-E received by Fitch in
connection with this transaction may be obtained through the link
contained at the bottom of the related rating action commentary.

DATA ADEQUACY

Historical vintage data on La Hipotecaria's mortgage portfolio are
publicly available on its website. Detailed information on recovery
levels and delinquency migration/transition matrices is also
available. The historical data on La Hipotecaria's portfolio are
prepared by Asset Technologies, LLC.

Fitch was provided with information on a loan-by-loan basis; the
data delivered were of good quality.

The data used in the development of the ratings were reviewed by
Fitch and are considered sufficient for the ratings to be
assigned.

ESG CONSIDERATIONS

La Hipotecaria Sixteenth Mortgage-Backed Notes Trust has an ESG
Relevance Score of '4' for Human Rights, Community Relations,
Access & Affordability due to its Exposure to Accessibility to
Affordable Housing, which in combination with other factors,
impacts the rating.

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.



                           *********


S U B S C R I P T I O N   I N F O R M A T I O N

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Chapman, Editors.

Copyright 2021.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
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