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

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

          Thursday, November 11, 2021, Vol. 22, No. 220

                           Headlines



A R G E N T I N A

STONEWAY CAPITAL: Says Talks With Bondholders Ongoing
TRANSENER SA: S&P Withdraws 'CCC+' LongTerm Issuer Credit Rating


B A H A M A S

BAHAMAS: Inflation Rose to 0.90% Year-on-Year in June


B E L I Z E

BELIZE: Completes Settlement of Cash Tender Offer for 2034 Notes
BELIZE: S&P Ups Sovereign Credit Ratings to 'B-/B' on Debt Exchange


B R A Z I L

BRAZIL: Climate Change Could Cut Corn Yields 24%, Says Research


C O L O M B I A

CANACOL ENERGY: Moody's Rates New $450MM Sr. Unsecured Notes 'Ba3'


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: US Refrains From Imposing More Taxes on Cigars


P A N A M A

CREDICORP BANK: Fitch Affirms 'BB+' LT IDR, Outlook Negative


T R I N I D A D   A N D   T O B A G O

KFC: Delivery Drivers Protest New Salary Arrangement

                           - - - - -


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A R G E N T I N A
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STONEWAY CAPITAL: Says Talks With Bondholders Ongoing
-----------------------------------------------------
Stoneway Capital Corporation and six affiliated debtors are
currently subject to a jointly-administered reorganization
proceeding under Chapter 11 of the United States Bankruptcy Code in
the United States Bankruptcy Court for the Southern District of New
York.  In connection with the Chapter 11 Cases and potential
restructuring transactions thereunder (the "Potential
Transactions") of the Debtors, the Debtors entered into
confidentiality agreements (collectively, the "NDAs") with certain
holders of the 10.000% senior secured notes due 2027 issued by
Stoneway.  Pursuant to the NDAs, the Debtors agreed to publicly
disclose certain information, including material non-public
information (the "Cleansing Material"), upon the occurrence of
certain dates or events set forth in the NDAs. In satisfaction of
the Debtors' obligations under such NDAs, the Company is making
public the Cleansing Materials by attaching them hereto.

The Cleansing Materials include:

   * the draft restructuring term sheet, which is available
https://www.stonewaycap.com/download/781/

   * the business plan forecast through 2027, which is available
at
https://www.stonewaycap.com/download/781/

Discussions regarding the Potential Transactions remain ongoing but
have been protracted due to additional transaction related expenses
and regulatory issues that have not been fully considered in the
Preliminary Forecast Summary, as well as the continued evaluation
of tax efficient structures for the Potential Transactions. The
Company also is addressing certain recent events related to a
damaged turbine at the Company's Lujan power plant requiring
imminent repair. The assumptions regarding the Preliminary Forecast
Summary are expected to be revised, which may result in material
revisions to the Preliminary Forecast Summary and, as a result, the
Restructuring Term Sheet. Even if the Preliminary Forecast Summary
were to be adopted by the Company, the assumptions and estimates
underlying the Preliminary Forecast Summary are inherently
uncertain and are subject to a wide variety of significant
business, economic, regulatory and competitive risks and
uncertainties.

As a result, no assurances can be given that the events in the
Preliminary Forecast Summary will occur or that the projections
therein will be achieved. Actual results could differ materially
from those projected as a result of certain factors, including
changes to the assumptions to the Preliminary Forecast Summary.
Additionally, the Company believes that the Preliminary
Forecast Summary involves increasingly higher levels of uncertainty
the further out the projections extend from their date of
preparation.

                  About Stoneway Capital Corp.

Stoneway Capital Corporation is a limited corporation incorporated
in New Brunswick, Canada, formed for the purpose of owning and
operating, through its Argentine subsidiaries, power generation
projects that will provide electricity to the wholesale electricity
markets in Argentina. The Argentine subsidiaries operate four
power-generating plants in Argentina that provide electricity to
the wholesale electricity market in Argentina.

Stoneway is 100% owned by GRM Energy Investment Limited.

On Oct. 8, 2020, the Company commenced proceedings under the Canada
Business Corporations Act (the "CBCA"). The Debtors were well on
the way toward closing the consensual restructuring when on Dec. 4,
2020, the Argentine Supreme Court issued a decision in an ongoing
noise discharge dispute involving one of the Generation Facilities
located in Pilar, Argentina. The Argentine Supreme Court Decision
created significant uncertainty as it overturned a decision of the
federal appeals court in San Martin, Buenos Aires.

As a result of the looming expiration of the informal standstill
arrangement, the Debtors commenced chapter 11 cases in the U.S. in
order to put the automatic stay in place, maintain the status quo
pending resolution of the various issues in Argentina, and ensure
that neither the Indenture Trustee nor the Argentine Trustee takes
any action that could be detrimental or value destructive to the
Company.

Stoneway Capital Ltd. and five related entities, including Stoneway
Capital Corp., sought Chapter 11 bankruptcy protection (Bankr.
S.D.N.Y. Case No. 21-10646) on April 7, 2021. Stoneway estimated
liabilities of $1 billion to $10 billion and assets of $500 million
to $1 billion.

Judge James L. Garrity, Jr. oversees the cases.

The Debtors tapped Shearman & Sterling LLP as bankruptcy counsel,
Bennett Jones LLP as Canadian counsel, Lazard Freres & Co. LLC as
investment banker, and RSM Canada LLP as tax services provider.
Prime Clerk, LLC is the claims agent and administrative advisor.


TRANSENER SA: S&P Withdraws 'CCC+' LongTerm Issuer Credit Rating
----------------------------------------------------------------
S&P Global Ratings has withdrawn its 'CCC+' long-term issuer credit
rating on Compania de Transporte de Energia Electrica en Alta
Tension Transener S.A., an Argentine transmission company, at its
request. The outlook was negative at the time of withdrawal.




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B A H A M A S
=============

BAHAMAS: Inflation Rose to 0.90% Year-on-Year in June
-----------------------------------------------------
Jamaica Observer reports that the Central Bank of the Bahamas
(CBOB) says inflation in the Bahamas has risen to 0.90 per cent up
from 0.88 per cent within the period of June 2020 to June 2021.

The bank recently reported that crude oil prices continued to rise
this year, following unprecedented lows in 2020, with prices of
goods and services rising in most categories to date, according to
Jamaica Observer.

According to the central bank's monthly economic and financial
developments in September, there was a 42.3 per cent increase in
crude oil prices from January to September this year to B$72.94 a
barrel, the report notes.

Consequently, average clothing and shoe prices rose 12.7 per cent,
despite falling to 8.4 per cent last year, the report relays.

Additionally, miscellaneous goods and services (2.7 per cent), food
and non-alcoholic beverages (2.3 per cent), and housing, water,
gas, electricity and other fuels (1.3 per cent) recorded an
increase in average costs following a year-on-year decline, the
report discloses.

In the report, the average inflation rate for furniture, household
equipment and daily household maintenance has increased by 2.5 per
cent, the report relates.

However, despite this the central bank said inflationary pressures
are expected to remain reasonably restrained despite rising
international oil prices, the report relates.

It noted that inflation moderated for alcoholic beverages, tobacco
and narcotics (2.5 per cent), health (0.9 per cent) and restaurants
and hotels (0.2 percent), the report notes.

After gains in 2021, average prices declined for recreation and
culture (3.3 per cent) and transport (2.3 per cent), while the
fall-off in average costs for communication extended to 4.5 per
cent, the report adds.

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




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B E L I Z E
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BELIZE: Completes Settlement of Cash Tender Offer for 2034 Notes
----------------------------------------------------------------
Belize has completed settlement of its cash tender offer and
consent solicitation for its U.S. dollar bonds due 2034, Davis Polk
related in a statement.

Davis Polk & Wardell LLP advised the financial adviser in
connection with the debt restructuring by the Government of Belize
and the dealer manager in connection with a cash tender offer and
consent solicitation by the Government of Belize for any and all of
its U.S. dollar bonds due 2034.  Belize financed the purchase and
the redemption of its bonds with funding provided by a subsidiary
of The Nature Conservancy as part of TNC's Blue Bonds for Ocean
Conservation program, which uses private capital to refinance
public debt of participating countries in order to support durable
marine conservation efforts and sustainable marine-based economic
activity.

The Davis Polk corporate team included partner Maurice Blanco,
counsel Alain Kuyumjian and associate Aaron Shubert.  Partner John
B. Reynolds III and counsel Will Schisa provided regulatory advice.
Partner Michael Farber and associates Eitan Ulmer and Dylan J.
Steiner provided tax advice.  Members of the Davis Polk team are
based in the New York and Washington DC offices.


BELIZE: S&P Ups Sovereign Credit Ratings to 'B-/B' on Debt Exchange
-------------------------------------------------------------------
S&P Global Ratings raised its long- and short-term foreign currency
sovereign credit ratings on Belize to 'B-/B' from 'SD/SD'
(selective default). S&P raised its long- and short-term local
currency sovereign credit ratings to 'B-/B' from 'CC/C'. The
outlook on the long-term ratings is stable. S&P also raised its
transfer and convertibility assessment (T&C) to 'B-' from 'CC'. In
addition, S&P withdrew its rating on the bonds due 2034.

Outlook

The stable outlook balances the risks related to still-high
government debt and weak external liquidity with our expectation
that the debt relief will moderate fiscal pressure, coupled with a
continued economic recovery. S&P expects the government will make
gradual progress strengthening public finances over the next 12
months.

Downside scenario

S&P could lower the ratings over the next six to 12 months if
policy reversals occur that reduce willingness to serve commercial
debt, elevate fiscal and external imbalances beyond its
expectations, or hamper access to official lending. Failure to
capitalize on the fiscal benefits of the debt restructuring,
combined with poor external liquidity and a still-high debt burden,
could eventually weaken the government's liquidity, leading to a
downgrade.

Upside scenario

S&P could raise the ratings over the next 12-18 months if it sees a
track record of strengthening economic and fiscal results and
sustainable improvement in external liquidity. Successful
implementation of fiscal measures resulting in consistent debt
reduction, and better GDP growth and long-term economic prospects,
could lead to an upgrade.

Rationale

The pandemic has exacerbated the fragility of Belize's economy and
weakened external and fiscal metrics. Its tourism industry
collapsed in 2020 and has recently started a gradual recovery. The
economy contracted 14% in 2020, while the general government
deficit widened to 10.5% of GDP. Amid fiscal slippage and
heightened liquidity pressures, last year Belize undertook an
exchange offer to defer and capitalize quarterly interest payments
due from Aug. 20, 2020, through Feb. 20, 2021, on its U.S. dollar
bonds due in 2034 (superbond). Moreover, the government failed to
pay the quarterly interest coupon due on May 20, 2021, and
announced a consent solicitation to extend the grace period to 120
days from 30 days.

In September 2021, Belize began soliciting the consent of
bondholders of its superbond to a buyback with funding provided by
a subsidiary of The Nature Conservancy (TNC, a U.S. conservation
organization). On Nov. 5, the government announced that it settled
its cash tender offer to purchase the bonds tendered into the offer
and redeemed all bonds that were not tendered. The purchase and
redemption of the bonds took effect following the acceptance by
creditors holding 87.43% of such bonds, above the required 75%,
facilitated by the use of the collective action clauses in the
trust indenture.

The offer to purchase and the consent solicitation stated that:

-- Holders who tendered their bonds on or before Sept. 24, 2021,
would receive total payment of $550.90 per $1,000 of the
outstanding principal, which includes accrued interest and $0.90
from the contingency account.

-- Those who tendered their bonds after Sept. 24 would receive
$517.90 per $1,000, which is total payment minus accrued interest.

-- Following the conclusion of the cash offer and the redemption,
the superbond was canceled. The outstanding capitalized principal
amount of the superbond was $552.9 million (including capitalized
interest due Aug. 20, 2020, Nov. 20, 2020, and February 2021).

The government financed the transaction with funding from a
subsidiary of TNC as part of TNC's blue bonds for ocean
conservation program. The funding TNC provided ($364 million)
consists of:

-- $301 million for the discounted repayment of the superbond;
-- $24 million to prefund a marine conservation endowment
account;
-- $18 million set aside as an original issue discount to
facilitate a lower interest rate in the yearly repayment years;
-- $10 million as a debt service reserve account; and
-- $10 million to help cover the closing cost for the
transaction.

The loan provided by the subsidiary of TNC matures in April 2040
(compared with February 2034 for the superbond). The loan's
principal will be amortized in 18 equal semiannual installments
commencing in April 2032.

As part of the transaction, the government prefunded a marine
conservation endowment account, which will be administered by an
affiliate of TNC, to support marine conservation projects. Also, it
has committed to conservation goals such as protecting
approximately 30% of its ocean, including coral reefs, mangroves,
and fish spawning sites. Belize has the world's second-largest
barrier reef. Its tourism industry, before the pandemic, accounted
for 10%-15% of GDP and around 60% of foreign exchange earnings.

The debt exchange supports the government's capacity to pay its
debt, but it alone will be insufficient to put the debt burden on a
firmly downward trajectory, absent stronger medium-term GDP growth
and further fiscal consolidation. As a result of the 45% reduction
in face value of the superbond, Belize has cut its external debt by
approximately $250 million. However, government debt (owed to
multilateral, bilateral, and domestic creditors) remains high. S&P
expects net general government debt to decrease to 101% of GDP in
2021 from 110% in 2020, and the general government fiscal deficit
to fall to 6.8% of GDP in 2021 from 10.5% in 2020.

Following loosening of travel restrictions, economic growth is
rebounding. S&P expects GDP to grow 7% in 2021 and 5% in 2022.

The ratings on Belize also reflect our appraisal of the country's
large fiscal and external imbalances, as well as the fragility of
its economy and low GDP growth history. The country's vulnerability
to external shocks (including volatility in commodity prices) and
natural disasters constrains the ratings. In addition, the large
informal sector and low per capita GDP growth prospects limit the
ability to raise fiscal revenues. The ratings also incorporate
S&P's assessment of Belize's weak institutions and lack of monetary
and exchange-rate flexibility.

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

  NOT RATED ACTION  
                         TO         FROM
  BELIZE

  Senior Unsecured       NR          D

  UPGRADED  
                         TO         FROM
  BELIZE

  Transfer & Convertibility Assessment

  Local Currency         B-          CC

  BELIZE

  Short-Term Debt        B           C

  UPGRADED; CREDITWATCH/OUTLOOK ACTION  
                         TO         FROM
  BELIZE

  Sovereign Credit Rating

  Foreign Currency    B-/Stable/B   SD/--/SD

  Local Currency      B-/Stable/B   CC/Negative/C




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B R A Z I L
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BRAZIL: Climate Change Could Cut Corn Yields 24%, Says Research
---------------------------------------------------------------
Rio Times Online reports that researchers at NASA and the Potsdam
Institute for Climate Impact Research (PIK) released in the journal
Nature that climate change could knock down corn yields by 24% by
the end of the century.

In contrast, wheat yields could increase by 18% due to increased
carbon dioxide concentration in the atmosphere and gains at higher
latitudes, according to Rio Times Online.

The estimates were plotted by computer models, which indicate
steeper weather conditions than previously projected, 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).




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C O L O M B I A
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CANACOL ENERGY: Moody's Rates New $450MM Sr. Unsecured Notes 'Ba3'
------------------------------------------------------------------
Moody's Investors Service assigned a Ba3 rating to Canacol Energy
Ltd.'s proposed up to $450 million senior unsecured notes due 2028.
Canacol's existing Ba3 ratings remain unchanged. The outlook is
stable.

Proceeds from the proposed notes will be used primarily to
refinance the company's existing notes due 2025 and a $30 million
senior secured loan, with no material effect on the company's
credit metrics.

The rating of the notes assumes that the final transaction
documents will not be materially different from draft legal
documentation reviewed by Moody's to date and that these agreements
are legally valid, binding, and enforceable.

RATINGS RATIONALE

Canacol's Ba3 rating reflects the company's small production and
reserves size, which is balanced by stable and predictable cash
flow, derived from contracted sales with solid fixed prices that
reduce volume and commodity price risk. Operating margins are solid
due to Canacol's low-cost operating structure, which supports
stable operating netback.

Canacol currently has access to 230 mmcf per day of pipeline
capacity. In the first six months of 2021, its production of
natural gas reached about 176,000 Mscfpd (30,000 Mboed), a volume
that will increase materially in the next few years as the company
steps up capital investments in exploration and production of
natural gas. Canacol has limited volume and price risk since about
80% of the company's sales are secured through long-term
take-or-pay contracts that have an average weighted life of seven
years. In addition, prices are 80% fixed in the contractual period
at profitable levels, resulting in stable EBITDA margins of about
78%.

Canacol's production comes mostly from a prolific area in Colombia,
Lower Magdalena Valley basin. In addition, its proved reserve life
is adequate at over six years and management is committed to
replacing reserves at an annual rate of 100-120%. The company's
business model is based on continued production and reserves growth
through a combination of exploration and property development.

Canacol has adequate liquidity. Cash and equivalents of $35 million
as of June 2021 plus $208 million in cash from operations that
Moody's expect from July 2021 to December 2022 are enough to fund
Canacol's capital spending program of about $130 million as well as
interest expenses and dividends of $30 million each, in the same
period. The company's debt maturity profile is comfortable because
currently no major debt matures before 2025. Proforma for the
proposed notes, refinancing risk is low since no major debt would
mature before 2028. Canacol has a $46 million committed revolver
that matures in 2023.

The stable rating outlook reflects Moody's expectation that Canacol
will be able to continue to increase production and reserves as
planned. The stable outlook also assumes that management will
maintain solid financial policies.

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

Canacol's Ba3 ratings could be upgraded if it manages to increase
production closer to 100 MMboed and to raise its reserve size
efficiently, with minimal deterioration in financial metrics.
Quantitatively, an upgrade would require that its leveraged
full-cycle ratio, which measures an oil company's ability to
generate cash after operating, financial and reserve replacement
costs, is consistently above 2.5 times for a sustained period.

Canacol's Ba3 ratings could be downgraded if retained cash flow
(funds from operations less dividends) to total debt declines to
below 30%, or if its interest coverage, as per EBITDA to interest
expense, falls to below 4.5 times with limited prospects of a quick
turnaround. In addition, a deterioration of the company's liquidity
profile could lead to a negative rating action.

The principal methodology used in this rating was Independent
Exploration and Production published in August 2021.

Canacol, with headquarters in Alberta, Canada, is an independent
natural gas & oil exploration and production company in Colombia.
As of June 2021, its total assets amounted to $728 million.




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

DOMINICAN REPUBLIC: US Refrains From Imposing More Taxes on Cigars
------------------------------------------------------------------
Dominican Today reports that U.S. members of Congress have decided
against applying more taxes on tobacco and cigars from the
Dominican Republic, Minister of Industry and Commerce and Mypimes,
Victor (Ito) Bisono, reported via his Twitter account.

Welcoming the progress of discussions of the so-called Build Back
Better bill, a plan of President Joe Biden that seeks to contribute
to the economic recovery of the United States from the impact of
the coronavirus pandemic, Bisono indicated that the current version
of the initiative leaves Dominican tobacco and cigars out of its
scope, according to Dominican Today.

The minister recalled that this would have been a hard blow for
this local industry because it would have impacted exports of up to
600%, the report notes.

"In the event of the approval of this law, our cigar exports would
be affected by more than US$650 million in the first year alone and
would lose more than 40,000 direct jobs and a higher number of
indirect jobs," he said, the report relays.

When these plans became known, much concern was generated in the
country because if they were to be carried out, it would have been
devastating for the Dominican tobacco industry, the report says.

                                Talks

It is recalled that a delegation of Dominicans, headed by Bisono,
traveled to Washington, United States, to talk with US congress
members about the negative impact that this measure would have on
the country, the report discloses.

The minister indicated that an extensive work schedule was
completed and that the delegation members shared with the
representatives of both chambers of the US Congress updated
information on the sector and expressed their concerns regarding
the initiative, the report says.

                  Exports to the US

Last April, the Ministry of Industry, Commerce, and Mipymes (MICM)
reported that tobacco exports to the US market had grown by around
50% so far this year. In January alone, some 5.9 million cigars
were exported to that country, according to the agency, the report
adds.

                 About Dominican Republic

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

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

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

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

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

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




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P A N A M A
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CREDICORP BANK: Fitch Affirms 'BB+' LT IDR, Outlook Negative
------------------------------------------------------------
Fitch Ratings has affirmed Credicorp Bank, S.A.'s Long-Term Issuer
Default Rating (IDR) at 'BB+', with a Negative Rating Outlook,
Short-Term IDR at 'B' and Viability Rating (VR) at 'bb+'. Fitch
also affirmed the Long- and Short-Term National Ratings at
'AA(pan)' with a Stable Rating Outlook and 'F1+(pan)',
respectively.

KEY RATING DRIVERS

IDR, VR, National Ratings and Senior Debt

Credicorp's ratings are underpinned by its inherent credit profile,
captured in its VR, which is strongly influenced by the Panamanian
operating environment (OE), currently assessed by Fitch at 'bb+'
with a negative trend, and which still faces pressures, posing
challenges to the bank's asset quality and profitability. Although
Fitch expects an economic recovery of 12.1% by 2021, the OE
reactivates at a slower pace due to the high unemployment rate and
the significant share of relief loans (Sep-21: 19%). In Fitch's
view, Panamanian banks will not start a material path of credit and
performance recovery until these loans are fully addressed.

The IDR's Negative Outlook is in line with the same OE trend,
highlighting the prevailing downside risks to the banks' asset
quality and the sovereign Rating Outlook.

The bank's VR also reflects, with high importance, its
well-developed business model and deep knowledge of its key market
segments which has resulted in a consistent financial performance,
partially offsetting its modest franchise with a market share about
1.8% by loans at June 2021.

Credicorp's loan quality has remained relatively stable and
comparing well with the industry and peers. However, Fitch
considers that a lower-than-expected business dynamism and high
unemployment could diminish a favorable evolution of modified loans
(around 18% of gross loans), given the end of the relief measures,
driving delinquency levels higher than those historically observed.
However, the agency believes that any impact would be manageable
for the bank, standing at levels commensurate with the current
rating category.

As of June 2021, the NPL ratio was 0.8% (system: 2%), equal to the
average of the last four fiscal periods, reflecting its consistent
underwriting standards and risk controls. Likewise, since 2020 the
entity prudently expanded the reserve coverage for NPL, reaching
294% at June 2021, in order to lessen the potential loan
deterioration.

The bank's profitability continues to contrast positively with the
system and some peers, although with a slight downward trend,
exhibiting an operating profit to risk-weighted assets (RWA) metric
of 2.3% on average in the past four fiscal years. As of June 2021,
it was 1.7%, essentially due to higher charges to absorb the
potential loan quality deterioration derived from the pandemic.
Fitch expects the bank's profitability to remain at levels similar
to the latest metrics observed, benefiting from the prudential
credit reserves already made last fiscal year.

The bank's capitalization remains sound and above peers, being one
of its strengths according to Fitch. At June 2021, the common
equity Tier 1 (CET1) over RWA was 20.8% (average June2018 to
June2020: 19%), providing the entity with a good cushion to absorb
potential deterioration of loan quality and profitability given the
prolonged crisis.

Credicorp's funding structure is based on customer deposits (84.3%
at June 2021), together with local bond issuances and debt from
global and multilateral institutions, which has given to the bank
with headroom to continue facing the current OE. This structure is
in line with its franchise and business model, although in Fitch's
view, this factor is limited by the relatively lower deposit base
and access to international markets, in contrast to Panama's
largest banks. At June 2021, a deposit expansion combined with a
loan portfolio contraction improved the loan-to-deposit ratio,
reaching 89.8%.

Credicorp's national ratings result from its relative credit
strength with respect to other rated issuers in Panama in the same
category. The national ratings' affirmation with a Stable Outlook
reflects the agency's expectation that the bank will maintain its
relative financial strength in the Panamanian banking system. Its
senior unsecured debt is rated at the same level as the bank's
national rating, as the likelihood of default on the debt is equal
to Credicorp.

Support Rating and Support Rating Floor

In Fitch's opinion, Credicorp's support rating (SR) of '5' and
support rating floor (SRF) of 'NF' reflect that external support
for the bank, although possible, cannot be relied upon, given
Panama's longstanding dollarized economy and lack of a lender of
last resort.

RATING SENSITIVITIES

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

-- Credicorp's IDRs and VR are sensitive to any further changes
    in Panama's OE. Negative changes in the bank's ratings would
    mirror any movement in Fitch assessment of the OE;

-- A deterioration of Credicorp´s financial performance would
    result in downward movement in its national and international
    ratings. A financial deterioration would be evident by an
    operating profit-to-RWA ratio consistently below 1.5% and/or a
    CET1 ratio below 15.0%;

-- Because SR and SRF are the lowest levels in the respective
    scale, there is no downside potential for these ratings;

-- Credicorp's senior unsecured debt rating would be downgraded
    in case of negative rating action on the bank's national
    ratings.

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

-- Upward movements in Credicorp's IDR and VR, although unlikely
    in the short to medium term for the Negative Outlook in its
    IDR, would stem from a substantial strengthening of its
    franchise that increases its competitive position;

-- The Negative Rating Outlook on Credicorp's IDR would be
    revised to Stable if the OE outlook changed to Stable, while
    credit metrics remain close to pre-crisis levels or rapidly
    recover;

-- National ratings would be upgraded in the event of an upgrade
    of its IDR and VR, along with a strengthening of its credit
    profile compared with other issuers in the same jurisdiction;

-- As Panama is a dollarized country with no lender of last
    resort, an upgrade in SR and SRF is unlikely;

-- Credicorp's senior unsecured debt rating would be upgraded in
    case of positive rating action on the bank's national ratings.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Financial Institutions and
Covered Bond issuers have a best-case rating upgrade scenario
(defined as the 99th percentile of rating transitions, measured in
a positive direction) of three notches over a three-year rating
horizon; and a worst-case rating downgrade scenario (defined as the
99th percentile of rating transitions, measured in a negative
direction) of four notches over three years. The complete span of
best- and worst-case scenario credit ratings for all rating
categories ranges from 'AAA' to 'D'. Best- and worst-case scenario
credit ratings are based on historical performance.

ESG CONSIDERATIONS

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




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

KFC: Delivery Drivers Protest New Salary Arrangement
----------------------------------------------------
Trinidad Express reports that KFC delivery drivers in Trinidad and
Tobago stayed away from the fried chicken franchise's outlets for a
second day over a new salary arrangement put in place by operator
Prestige Holdings.

An internal memo to managers stated that the delivery rate
increased from $15 to $20, according to Trinidad Express.

Also, the hourly rate for contract drivers will move from $10 per
delivery to $18, which means the company will no longer be paying
the $20 gas allowance per hour, the report relays.

This move is not sitting well with the drivers, according to the
report.

An Arima KFC driver who did not want to be identified told the
Express he feels that the removal of their gas allowances is
unjust, the report discloses.

"The drivers cannot protest, so we formed a WhatsApp group and 157
KFC drivers from across the country decided not to show up to work.
It had a few who still went out but the majority heeded to the
call," the report relates.

The contracted worker argued that the new price of $18 per delivery
and the cut in the $20 gas allowance per hour means drivers will be
working for less, the report discloses.

"We use our private vehicles and within the six-hour shift there
are 13 to 14 drivers so with these new measures, some will be
working for next to nothing. This position must be revisited by
Prestige Holdings. I use to make $250 a day now this will be
decreased to $150-$200 a day," he said, the report says.

The driver also worried about putting his life at risk when
delivering to hotspot areas, the report notes.

"Just recently some men grabbed the KFC meal from the driver who
was making a delivery and shot at his car. Another driver car was
shot at also so we putting our lives at risk. I like working for
KFC, do not get me wrong but this new policy [is] hard to accept,"
the driver lamented.

He said that the contracted workers have already begun to look for
new jobs as food prices are increasing, the report relays.

He said they have decided to go out and if their issue is not
resolved, the drivers will be staying away on KFC's busiest days,
the report discloses.

The Express contacted Prestige Holdings group chief executive
officer Simon Hardy, who said he was aware of isolated incidents of
drivers not reporting for duty but could not confirm that 157
contract workers stayed away, the report relays.

Hardy addressed the issue about the drivers risking their lives in
hotspot areas, the report notes.

"At all our outlets if there were issues in the past at various
areas, we will earmark it to not deliver in those zones. It's not
worth putting anyone's life at risk for deliveries. Also, we are
not in control of the elements in our society, so anything can
happen at any given time, which is out of our remit. However we do
not send people knowingly into trouble spots," the report
discloses.

Responding on the possibility of revisiting the delivery policy,
Hardy said: "With the new policy it is now $18 per delivery, so
while the drivers may talk about the $20 gas allowance per hour
being moved, is anyone talking about how the delivery salary has
now increased to $18?

"It depends on how many orders a driver does per day. The company
may have to revisit how many drivers we contract out at any given
time, as it makes no sense having someone sitting there not doing
orders," 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
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