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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

          Monday, December 20, 2021, Vol. 22, No. 247

                           Headlines



B R A Z I L

BRAZIL: Fitch Affirms 'BB-' LT IDR, Outlook Negative


C H I L E

GUACOLDA ENERGIA: Fitch Lowers IDRs to 'CCC+', On Watch Negative


E C U A D O R

BANCO PICHINCHA: Fitch Affirms B- Rating on 4 Note Classes


M E X I C O

BANCO COMPARTAMOS: Fitch Affirms 'BB+' LT IDR, Outlook Now Stable
BANCO DEL BAJIO: Fitch Affirms 'BB+' LT IDR, Outlook Now Stable
BANCO MONEX: Fitch Affirms 'BB+' LT IDR, Alters Outlook to Stable
BANCO VE POR: Fitch Affirms 'BB-' LT IDRs, Alters Outlook to Stable


P A R A G U A Y

TELEFONICA CELULAR: Fitch Affirms 'BB+' LT FC IDR, Outlook Stable

                           - - - - -


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B R A Z I L
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BRAZIL: Fitch Affirms 'BB-' LT IDR, Outlook Negative
----------------------------------------------------
Fitch Ratings has affirmed Brazil's Long-Term (LT) Foreign- and
Local-Currency (FC LC) Issuer Default Rating (IDR) at 'BB-' with a
Negative Outlook.

KEY RATING DRIVERS

Brazil's ratings are supported by its large and diverse economy,
high per-capita income relative to peers and capacity to absorb
external shocks underpinned by its flexible exchange rate, moderate
external imbalances, robust international reserves, net sovereign
external creditor status and deep domestic government debt market.
This is counterbalanced by Brazil's high financing needs and
government indebtedness, a rigid fiscal structure, weak economic
growth potential and a difficult political landscape that hampers
timely progress on fiscal and economic reforms.

The Negative Outlook reflects downside risks to the economy and
public finances and debt trajectory in the context of tightened
financing conditions and increased doubts about the credibility of
the spending ceiling anchor, following changes to its calculation
to make room for additional social spending. Fiscal uncertainties,
high inflation and BRL volatility will weigh on the economy in 2022
and have increased the risk of an outright recession, while higher
sovereign borrowing costs coupled with a higher primary deficit
will lead to a renewed deterioration of public finances in 2022.
Downside risks could be exacerbated by a potentially polarizing
election race in 2022.

Fitch projects economic growth will decelerate sharply to 0.5% in
2022 after an estimated 4.8% expansion in 2021. Progress on
vaccination (over 65% of the population fully vaccinated) is
facilitating economic reopening, while the acceleration of the
global economy and high commodity prices have also supported growth
this year. However, the sharp tightening of domestic financing
conditions owing to fiscal concerns and tighter monetary policy
will weigh on growth in 2022. The 2022 election cycle could also
crimp investment appetite, as could an economic reform agenda that
has stalled after some progress in early 2021.

The external environment is expected to be less favourable in 2022
with growth in China (a key trading partner) expected to slow to
4.8% from 8% in 2021 and U.S. monetary policy tightening. The main
downside risks for growth include aggravation of external
headwinds, intensification of financial volatility and souring of
domestic sentiment due to policy missteps and/or elections, and
drought that increases electricity prices or supply constraints.
The new Omicron coronavirus variant can also pose risks.

Headline inflation has remained stubbornly high during 2021 due to
an unfavourable base effect, higher food and energy prices, supply
constraints, a weak BRL and higher electricity tariffs due to a
severe drought. More recently, the recovery in the lagging services
sector has added further pressure. The central bank has increased
interest rates sharply by 725bps this year to 9.25% and Fitch
expects further rises through early 2022. Inflation is expected to
decline during 2022 but will likely be above-target at YE.

Modifications to the spending ceiling, the main fiscal anchor in
Brazil, have increased fiscal uncertainty and prompted an adverse
market reaction. The congress is in the process of approving
changes to spending ceiling to adjust it by YE rather than midyear
inflation of the prior year, creating space for extra spending
under the cap that will include an expanded social program (Auxilio
Brasil). Electoral considerations appear to have played a role in
these decisions. Modifying the spending ceiling when it becomes
binding highlights concerns about its efficacy to control
spending.

In addition, demands on the budget stemming from court-ordered
payments (precatorios) have increased significantly and
unexpectedly for 2022, leading the congress to cap such payments
for next year with the excess to be paid in instalments over a
number of years. These commitments could snowball should the
escalation in 'precatorios' continue and/or the menu of options to
settle them not be exercised meaningfully.

Brazil's fiscal consolidation gained pace in 2021 but a renewed
deterioration is expected in 2022. Fitch projects the general
government (GG) deficit to decline to 5.1% of GDP in 2021 from
close to 14% in 2020, but rise to nearly 8% in 2022 (compared with
the projected 'BB' median of 4% of GDP). Significant
over-performance of revenues, partial withdrawal of COVID-related
spending and markedly improved fiscal performance of states is
projected to result in a GG primary balance this year.

However, the primary balance will deteriorate next year due to the
weakening of state governments' finances as their spending
increases as well as Fitch's expectation that the central
government uses the extra spending space (of around 1% of GDP) that
could be accorded by the spending cap changes. Downside risks to
Fitch's fiscal projections include weaker economic growth,
higher-than-expected borrowing costs and unanticipated increase in
spending should the pandemic worsen. Higher-than-projected payments
of 'precatorios' could also weigh on the result.

Medium-term fiscal consolidation prospects will be influenced by
the outcome of the 2022 elections. While Fitch assumes the next
government adheres to the spending ceiling, additional changes to
the cap cannot be ruled out. Given the low level of discretionary
spending and rising budgetary rigidities from the introduction of
the 'Auxilio Brasil', further spending reforms may be required to
curb mandatory spending to comply with the spending ceiling in a
sustained manner.

Brazil's debt burden is projected to decline sharply in 2021 to
around 81% of GDP (still significantly higher than the current BB
median of 58%) owing to the reduction in the primary deficit, high
nominal GDP growth (partly flattered by rapid growth in the GDP
deflator) and the expected significant prepayment by the BNDES (a
development bank) of its loans from the Treasury. However, the debt
burden will climb again to around 83% of GDP in 2022 owing to
rising borrowing costs, weaker growth and a higher primary deficit.
The interest-to-GDP ratio that dropped to 4.4% of GDP in 2020 (from
5.1% in 2019) could rise in 2021 and more sharply in 2022 as
monetary tightening continues into next year.

Brazil's large and diversified domestic institutional base has
continued to meet the sovereign's large funding needs during
2020-2021, but at higher costs. Despite some extension in
maturities, 12-month debt maturities in October remain high at
BRL1.1 trillion (approximately 12% of projected 2022 GDP), down
from nearly BRL1.4 trillion at end 2020, exposing Brazil to shocks
and rollover risks. However, the Treasury's fortified liquidity
buffer, which reached BRL1 trillion accords it considerable
flexibility to navigate volatile financing conditions.

Brazil' political environment remains fluid with occasional
frictions among the different branches of the government. Fitch
believes further progress on the largely stalled reform agenda is
unlikely before next year's elections. Fitch's base case assumes
that political noise and volatility will likely remain high during
2022 ahead of presidential and congressional elections in October.
Besides President Bolsonaro, ex-President Lula is likely to be a
contender on the left.

The emergence of a credible centrist candidate is uncertain.
Irrespective of who wins, the next president will inherit a weak
economy with considerable fiscal challenges and weakened confidence
around the spending ceiling, thereby increasing the need for fiscal
adjustment and reforms. Congressional fragmentation would continue
after the elections, posing a challenge for consensus-building but
also preventing a radical shift in economic policies.

Brazil's current account deficit (CAD) is expected to remain
subdued at 1.5% of GDP in 2021, reflecting a high trade surplus and
a contained services deficit, and will fall further in 2022 owing
to a weaker economy. Fitch expects FDI to continue financing the
CADs during 2021-23. Brazil's international reserves remain strong
at over USD365 billion (nearly 12 months of CXP) despite foreign
exchange spot sales in 2020-2021.

ESG - Governance: Brazil has an ESG Relevance Score (RS) of '5'for
both Political Stability and Rights and for the Rule of Law,
Institutional and Regulatory Quality and Control of Corruption.
These scores reflect the high weight that the World Bank Governance
Indicators (WBGI) have in Fitch's proprietary Sovereign Rating
Model. Brazil has a medium WBGI ranking at 44 reflecting a recent
track record of peaceful political transitions, a moderate level of
rights for participation in the political process, moderate
institutional capacity, established rule of law and a high level of
corruption.

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

-- Public Finances: Material policy shifts that worsen the
    outlook for public finances and fiscal credibility and
    threaten medium-term public debt sustainability;

-- Public Finances: A severe deterioration in the sovereign's
    domestic and/or external market borrowing conditions; for
    example, due to economic policy mismanagement and/or a
    political shock;

-- Macro: Policies that increase macroeconomic instability and
    damage growth prospects; for example, a weakening of monetary
    policy credibility.

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

-- Public Finances: Easing of fiscal risks and financing
    conditions and/or greater confidence in a fiscal consolidation
    path that contains the pace of increase in public indebtedness
    over the medium term;

-- Macro: Prudent monetary policy management that reduces
    inflation and supports macroeconomic stability.

SOVEREIGN RATING MODEL (SRM) AND QUALITATIVE OVERLAY (QO)

Fitch's proprietary Sovereign Rating Model (SRM) assigns Brazil a
score equivalent to a rating of 'BBB-' on the LT FC IDR scale.

Fitch's sovereign rating committee adjusted the output from the SRM
to arrive at the final LT FCIDR by applying its qualitative overlay
(QO), relative to SRM data and output, as follows:

-- Macro: -1 notch, to reflect weak growth prospects and
    potential, largely held back by a low investment rate and
    structural impediments such as a difficult business
    environment, which make it more challenging to consolidate
    public finances and address social pressures.

-- Public Finances: -1 notch, to reflect Brazil's high GG debt
    burden. The SRM is estimated on the basis of a linear approach
    to government debt/GDP and does not fully capture the risk at
    high debt levels. Fiscal flexibility is hampered by the highly
    rigid spending profile and a heavy tax burden that makes
    adjustment to economic shocks difficult.

-- Structural: -1 notch, to reflect Brazil's fragmented congress,
    periodic frictions among the different branches of the
    government and corruption-related issues that have reduced
    visibility and hampered timely progress on reforms to improve
    the medium-term trajectory of public finances. In addition,
    high income inequality adds to social pressures.

Fitch's SRM is the agency's proprietary multiple regression rating
model that employs 18 variables based on three-year centered
averages, including one year of forecasts, to produce a score
equivalent to a LT FC IDR. Fitch's QO is a forward-looking
qualitative framework designed to allow for adjustment to the SRM
output to assign the final rating, reflecting factors within
Fitch's criteria that are not fully quantifiable and/or not fully
reflected in the SRM.

BEST/WORST CASE RATING SCENARIO

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

ESG CONSIDERATIONS

Brazil has an ESG Relevance Score of '5' for Political Stability
and Rights as WBGIs have the highest weight in Fitch's SRM and a
highly fragmented congress has made timely passage of corrective
policy adjustments difficult; this is highly relevant to the rating
and a key rating driver with a high weight. As Brazil has a
percentile rank below 50 for the respective Governance Indicator,
this has a negative impact on the credit profile.

Brazil has an ESG Relevance Score of '5' for Rule of Law,
Institutional & Regulatory Quality and Control of Corruption as
WBGIs have the highest weight in Fitch's SRM and the corruption
related issues exposed in recent years have severely hit political
dynamics and economic activity; this is highly relevant to the
rating and a key rating driver with a high weight. As Brazil has a
percentile rank below 50 for the respective Governance Indicators,
this has a negative impact on the credit profile.

Brazil has an ESG Relevance Score of '4[+]' for Human Rights and
Political Freedoms as the Voice and Accountability pillar of the
WBGIs is relevant to the rating and a rating driver. As Brazil has
a percentile rank above 50 for the respective Governance Indicator,
this has a positive impact on the credit profile.

Brazil has an ESG Relevance Score of '4[+]' for Creditor Rights as
willingness to service and repay debt is relevant to the rating and
is a rating driver for Brazil, as for all sovereigns. As Brazil has
track record of 20+ years without a restructuring of public debt
and captured in Fitch's SRM variable, this has a positive impact on
the credit profile.

Except for the matters discussed above, the highest level of ESG
credit relevance, if present, is a score of '3'. This means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity(ies), either due to their nature or to the way in which
they are being managed by the entity(ies).



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C H I L E
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GUACOLDA ENERGIA: Fitch Lowers IDRs to 'CCC+', On Watch Negative
----------------------------------------------------------------
Fitch Ratings has downgraded Guacolda Energia SpA's Issuer Default
Ratings (IDRs) to 'CCC+' from 'B'. Fitch also downgraded Guacolda
Energia's senior unsecured notes due 2025 to 'CCC+'/'RR4' from
'B+'/'RR3'. The company and security have been placed on Rating
Watch Negative (RWN).

Guacolda's ratings downgrade and RWN reflects its shareholders',
Capital Advisors, unclear business strategy and refinancing plan
for Guacolda's 2025 notes coupled with the issuer's weaker
contractual position over the rated horizon, resulting in higher
leverage and exposure to spot sales.

KEY RATING DRIVERS

Unclear Business Strategy: Guacolda's principal shareholder,
Capital Advisors', unclear business and refinancing strategy for
Guacolda's 2025 notes coupled with the uncertain Chilean regulatory
environment, that may prohibit coal fired power plants ability to
generate electricity that will be sold on the spot market, raises
serious concerns regarding the issuer's ability and willingness to
repay its debt.

Since taking control of Guacolda, the shareholder has remained
silent regarding its financial policy and intent for Guacolda
Energia, and there are limited controls in place that prevent the
shareholder from extracted cash from Guacolda. Due this
uncertainty, Fitch has assigned an ESG score of 5 for Governance
and place the issuer on Rating Watch Negative.

Increasing Unsustainable Leverage: Fitch believes the company's
leverage in 2021 will be 5.4x compared with 3.0x in 2020. The
increase in leverage is due to lower EBITDA explained by lower
contracted volumes and more spot sales over the rated horizon.
Fitch estimates Guacolda's EBITDA will average USD94 million
between 2021 and 2023 and will decrease to an average of USD76
million between 2024 and 2025. Fitch's rating case assumes no
additional debt beyond the company's USD500 million senior
unsecured note due 2025. Dividends are not expected through 2025,
and will negatively affect the rating. Net debt to EBITDA is
estimated to average 2.1x between 2021 and 2025, and FFO interest
coverage will average 3.7x between 2021 and 2025. Given Guacolda is
a coal fired plant in Chile, Fitch expects the company will not
easily access funding to refinance its bond.

Declining Contractual Position: Guacolda has a weakening
contractual position, which is credit negative. The company's
contractual position will decrease by 50% in 2021 compared with
2020, followed by a 21% decrease in contractual position by the end
of 2022. The decreased position in 2021 is due to expiration of the
company's regulated PPA with Chilectra (Enel Distribución) of 810
GWh/year, representing 12% of the total contracted position. The
company's PPA is with non-regulated contracts, which are
investment-grade credit counterparties in the mining and energy
sectors. In 2021, Fitch estimates 60% of total energy sales are
contracted, and are expected to average 30% of total volumes
thereafter through 2025.

Uncertain Regulatory Environment: Chile's decarbonization
initiative threatens the viability of Guacolda. Further, the issuer
is at risk of being disposed by the expansion of renewables to the
Chilean grid. That being said, if Guacolda is allowed to continue
to operate past 2025, Guacolda has a competitive operating cost at
USD30/MWh, which can bode well for the credit. The company is well
placed even when considering the aggressive expansion of renewables
into the grid, as the marginal cost of coal is materially below
that of thermal gas at an average range of approximately
USD55MWh-USD70MWh.

Further, Guacolda is located in the southern part of the country`s
Atacama Desert, ideal to servicing mining companies. Fitch
estimates that, over the last six months, the average marginal cost
at Maitencillo node was USD43.9MWh, making Guacolda competitive and
highly probable to be dispatched. The company faces regulatory
pressures as Chile aims to fully decarbonize its energy matrix by
2040; Fitch does not anticipate Guacolda`s decommission before that
time frame.

Guacolda has an ESG Relevance Score of '4'[-] for GHG Emissions &
Air Quality, as Guacolda is a coal fired plant, and the Chile has
set a deadline to decarbonize the Chilean grid by 2050. Therefore,
Guacolda is not expected to materially improve its contract
position due to increased competition from peers that are less
exposed to coal to green tax. This has a negative impact on the
credit profile of the company.

Guacolda has an ESG Relevance Score of '5'[-] for Management
Strategy, Corporate Structure, and Finance Transparency. Guacolda's
principal shareholder, Capital Advisors, has maintained an unclear
business strategy and corporate structure for Guacolda, and there
is uncertainty regarding the issuers ability to generate cash flow
to strengthen liquidity to repay its 2025 notes.

DERIVATION SUMMARY

Guacolda's rating downgrade reflects its higher leverage due to
contract expiration over the rated horizon. Fitch expects gross
leverage to be 5.4x in 2021, resulting in a more stressed capital
structure compared with its peers AES Andes (BBB-/Stable), Enel
Generacion Chile (A-/Stable), Engie Energia Chile S.A.
(BBB+/Stable) and Colbun (BBB+/Stable). In terms of business
profile, all of Guacolda's peers benefit from a diverse generation
portfolio, with long-term contracted energy sales with
investment-grade counterparties or regulated customers, with a
contracted life of 10 years, providing stable and predictable cash
flows.

Guacolda's ratings are the lowest compared with its Chilean peers
as a result of the company's relatively weaker financial profile,
although the peers carry similar business risks. Guacolda's
consolidated gross leverage, which is expected to 5.4x in 2021, is
higher than that of AES Andes at 1.6x. Colbun's credit profile is
quite similar to Engie, both consistent in the 'BBB+' rating level
with leverage between the range of 2.2x and 2.9x measured as total
debt to EBITDA and significantly stronger than Guacolda's capital
structure. Enel Generacion's capital structure is the strongest
among its peers in Chile, with gross leverage averaging 1.5x in
recent years.

Enel Chile has a lower business risk profile than its peers in the
country, due to the integration of the traditional power generation
business from its subsidiary Enel Generación Chile, the power
generation from non-conventional renewable sources through Enel
Green Power and the power distribution business through Enel
Distribución Chile. In terms of credit metrics, Enel Chile has
consistently shown total debt to EBITDA of around 2.5x, resulting
in a higher rating than its peers.

Unlike its Chilean electricity GenCos mentioned above, Guacolda's
credit profile does not benefit from having a diverse generation
portfolio, having exclusively coal power plants, and faces material
expiration of its contractual position.

KEY ASSUMPTIONS

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

-- No units decommissioned through 2030, installed capacity of
    760MW;

-- Fitch's thermal coal (Australian Newcast price assumptions) of
    USD72 per ton in 2021, USD67 per ton in 2022, USD66 per ton in
    2023 and 2024 and USD63 per ton long term;

-- Annual net generation on average of nearly 5,4000GWh/year
    during the next 10 years;

-- Contracted volumes with unregulated clients at 3,441 in 2021,
    2,724 in 2022, 2,218 in 2023, 2,064 in 2024 and 1,917 in 2025
    and 2026 average of 1,000GWh/year thereafter through 2029;

-- Marginal cost variable costs on average of USD35 MWh;

-- Long-term spot prices average USD40MWh;

-- No dividend payments over the rated horizon;

-- Annual capex of USD9.5 million between 2020 and 2021;

-- No cash taxes in 2020-2023 due to tax deferral;

-- Administrative costs adjusted by inflation;

-- USD250 million of the outstanding bond repaid in 2025 and
    refinanced with a 10-year amortizing loan.

RATING SENSITIVITIES

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

-- Although a positive rating action is not expected in the
    foreseeable future, Fitch will view positively a total debt
    to-EBITDA ratio of 3.5x or lower;

-- Improved long-term contracted position with strong off-takers
    and increased remaining life of contracts;

-- FFO fixed-charge coverage of 4.5x or above on a sustained
    basis.

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

-- Any dividend payment in the rating horizon;

-- Weakening of liquidity position driven by FCF;

-- Material reduction or cancellations in contracted volumes
    through the rated 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

Adequate Liquidity Position: As of June 30, 2021, Guacolda had
USD137 million in cash and equivalents, which covers five years of
interest expense of USD26 million. Guacolda repaid its USD100
million term loan maturing in 2020 with cash flows and cash on
hand. The company has a manageable debt profile that now consists
solely of its 4.56% USD500 million senior unsecured notes due April
2025.

ISSUER PROFILE

Guacolda Energía S.A. is located in Huasco, on the Northern part
of the Central Interconnected Grid (SIC) in Chile. The company owns
and operates a coal-fired a thermoelectric generation facility,
with a gross installed capacity of 764 MW.

ESG CONSIDERATIONS

Guacolda Energia SpA has an ESG Relevance Score of '5' for
Management Strategy due to its unclear business strategy, which has
a negative impact on the credit profile, and is highly relevant to
the rating, resulting in an implicitly lower rating and Rating
Watch Negative.

Guacolda Energia SpA has an ESG Relevance Score of '5' for Group
Structure due to uncertainty regarding legal structure of the
company and its shareholders, which has a negative impact on the
credit profile, and is highly relevant to the rating, resulting in
an implicitly lower rating and Rating Watch Negative.

Guacolda Energia SpA has an ESG Relevance Score of '5' for
Financial Transparency due to silent approach to refinancing
existing debt , which has a negative impact on the credit profile,
and is highly relevant to the rating, resulting in an implicitly
lower rating and Rating Watch Negative.

Guacolda Energia SPA is a single asset coal fired plant. Therefore,
Fitch has assigned an ESG relevance score of '4' to Exposure to
Environmental Impacts and GHG Emissions & Air Quality. Chile has
announced a decarbonization strategy to be emission neutral by
2040, and Fitch believes that Guacolda is exposed to potential
market disruption.

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.



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E C U A D O R
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BANCO PICHINCHA: Fitch Affirms B- Rating on 4 Note Classes
----------------------------------------------------------
Fitch Ratings has affirmed the ratings assigned to the notes issued
by Fideicomiso Mercantil Titularizacion Hipotecaria de Banco
Pichincha 5 (FIMEPCH 5) and revised the Rating Outlook to Stable
from Negative.

The Outlook revision on the notes follows Fitch's revision of Banco
Pichincha C.A. y Subsidiarias' (BP) Outlook on Dec. 6, 2021. The
series A notes are capped at the rating of the Transaction Account
Bank provider BP and Ecuador's Country Ceiling..

DEBT       RATING         PRIOR
----       ------         -----
Fideicomiso Mercantil Titularizacion Hipotecaria de Banco Pichincha
5

A1    LT B-sf Affirmed    B-sf
A2    LT B-sf Affirmed    B-sf
A3    LT B-sf Affirmed    B-sf
A4    LT B-sf Affirmed    B-sf

KEY RATING DRIVERS

Ratings Currently Capped at Lower of Transaction Account Bank or
Country Ceiling: The ratings of the series A notes are capped at
the lower of the rating of the Transaction Account Bank provider,
Banco Pichincha, or the Country Ceiling of Ecuador (both currently
'B-'). The ratings of the notes are constrained by the Transaction
Account Bank given that counterparty replacement language in
transaction documents does not align with principals described in
Fitch's SF and Covered Bonds Counterparty Rating Criteria for notes
rated in the 'Bsf' category. The ratings are also constrained by
Ecuador's Country Ceiling given Transfer & Convertibility risk is
not properly mitigated.

Adequate Capital Structure Supports Ratings: The series A notes
benefit from a sequential pay structure, where their target
amortization payments are senior to interest and principal payments
on the series B notes. Series A also benefits from credit
enhancement (CE) of 10% in the form of subordination and an
interest reserve account equivalent to 3x their next interest
payment, which allows them to pass the 'B-sf' stress test. Although
they benefit from excess spread, due to their Net WAC feature Fitch
has not given credit to this variable in the cash flow modelling.

Operational Risk Mitigated: Pursuant to the servicer agreement,
Banco Pichincha will perform the role of primary servicer. Fitch
has reviewed Banco Pichincha's systems and procedures and is
satisfied with its servicing capabilities. Additionally,
Corporacion de Desarrollo de Mercado Secundario de Hipotecas CTH
S.A. (CTH), has been designated as master and back-up servicer,
mitigating the exposure to operational risk.

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

-- The ratings assigned are sensitive to the credit quality of
    the Ecuadorian sovereign, as well as to the credit quality of
    Banco Pichincha (acting as the Transaction Account Bank). A
    downgrade of the sovereign of Ecuador (especially of its
    Country Ceiling level) or a downgrade on Banco Pichincha would
    result in a downgrade of the series A notes.

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

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

-- The ratings assigned are sensitive to the credit quality of
    the Ecuadorian sovereign, as well as to the credit quality of
    Banco Pichincha (acting as the Transaction Account Bank). An
    upgrade of the sovereign of Ecuador (especially of its Country
    Ceiling level) and an upgrade on Banco Pichincha could result
    in an upgrade of the series A 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

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

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

The credit quality of the Series A notes is currently capped at and
driven by the rating of the Transaction Account Bank, Banco
Pichincha, as measured by its LT IDR and the Country Ceiling of
Ecuador.

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.



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

BANCO COMPARTAMOS: Fitch Affirms 'BB+' LT IDR, Outlook Now Stable
-----------------------------------------------------------------
Fitch Ratings has revised the Rating Outlook of Banco Compartamos
S.A. Institucion de Banca Multiple (Compartamos) to Stable from
Negative and affirmed its Local and Foreign Currency Long-Term (LT)
and Short-Term (ST) Issuer Default Ratings (IDRs) at 'BB+' and 'B',
respectively. Fitch has affirmed Compartamos' Viability Rating (VR)
at 'bb+'. Fitch also affirmed the bank's LT and ST National Ratings
at 'AA(mex)' and 'F1+(mex)', respectively, and revised the Outlook
of the LT national rating to Stable from Negative.

The Outlook revisions result from Compartamos' fast and significant
recovery in profitability after posting a loss in 2020 and
resilient capital despite pandemic-driven headwinds and remaining
pressures in the operating environment (OE), such as the slow
recovery in GDP and a challenging investment and business
environment. Fitch maintains the OE at 'bb+' with a negative trend
and has revised the relative importance to moderate. Fitch believes
the bank's ability to adapt underwriting standards and risk
controls will be relevant to sustain the asset quality recovery.

Fitch has withdrawn Compartamos' Support Rating of '5' and Support
Rating Floor of 'NF' as they are no longer relevant to the agency's
coverage following the publication of Fitch's updated Bank Rating
Criteria on Nov. 12, 2021. In line with the updated criteria, Fitch
has assigned Compartamos a Government Support Rating (GSR) of 'No
Support' (ns).

KEY RATING DRIVERS

Compartamos' VR-driven IDR and its national ratings reflect the
bank's highly profitable business model focused on the microcredit
niche for low-income segments, primarily in the group lending
criteria but also in the individual methodology. Segment
vulnerability has resulted from operating environment stress, as
demonstrated in 2020 in which the company reported a loss, reduced
its size and increased NPLs. Despite this, the bank has
demonstrated good capacity to adapt its business model and
underwriting standards to new market conditions, resumed loan
growth, and contained asset quality deterioration while sustaining
a strong capital position.

Compartamos' capital metric stands out among its local peers and is
a strength of its financial profile. The bank's common equity tier
1 ratio (CET1; common equity tier 1) of 34.1% as of September 2021
remains commensurate with the intrinsic risks of the business
model. Fitch forecasts that the bank's capital position will remain
a credit strength of the financial profile, boosted by recovered
profitability and despite resumed growth. The bank's current CET1
has an ample buffer above Fitch's 25% trigger for a downgrade.

The operating and net losses reported by the bank in 2020 prove the
segment's vulnerability to deteriorating economic conditions
resulting from concentration of earnings in a single and
susceptible economic niche. However, its profitability is showing a
fast and significant recovery to levels close to its pre-pandemic
average. As of September 2021, operating profits to RWA increased
to 9.8% (2017-2019: 10.2%) driven by a relevant reduction in loan
loss impairment charges. Fitch expects profitability to sustain its
recovery even if asset quality shows moderate deterioration in the
coming months, as loan growth resumes.

Compartamos' loan portfolio quickly showed the impact of the
contingency despite the deferral programs to clients, limited loan
and reduced ticket sizes. The bank's NPL ratio has decreased to
1.7% as of October 2021 after levels above 10% during 2020 (highest
point at 12.4% in November 2020 according to the CNBV data). While
the adjusted NPL ratio, which considers charge offs, shows a slower
recovery to 17.9% as of October 2021(highest point at 23.3% in May
2021 according to the CNBV data).

Compartamos' majorly wholesale funding structure results in a weak
loan to deposits ratio of 732% as of September 2021. Customer
deposits account for a low 13.6% of the bank's funding, which
comprises credit lines with development and commercial banks and
long and short-term debt issuances in the local market. The bank' s
liquidity is strong and reflects a highly revolving portfolio
(average maturity of four months) that provides the bank the
capacity to reprice rapidly. Compartamos maintains a very high
liquidity coverage ratio at above 6,000% as of September 2021,
which minimizes liquidity risk as loan origination returns to a
faster pace.

Senior Debt

Fitch affirmed the local senior debt issuances at the same level as
Compartamos' national rating as the notes' likelihood of default is
the same as the bank's.

GSR

Compartamos' 'No Support' GSR reflects Fitch's expectation that
there is no reasonable assumption that support will be available
since the bank is not classified as a domestic systemically
important bank (D-SIB). As of September 2021, Compartamos' customer
deposits were very low around 0.1% of the Mexican banking system.

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

-- Compartamos' ratings could be downgraded due to a material
    deterioration in asset quality and profitability that
    pressures the bank's CET1 capital metric below 25% or a
    downward revision in Fitch's assessment of the operating
    environment

-- Increased liquidity risks or reduced access to funding
    dependent on market sentiment, depositors and investors could
    also trigger a downgrade.

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

-- Upside potential for the bank's VR, IDRs and National Ratings
    in the medium term is limited.

-- Ratings could be upgraded if the bank increases its operations
    in a relevant and orderly manner and achieves business
    diversification, which could alleviate particular risks of a
    concentrated business volume.

GSR

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

-- Fitch does not anticipate any upside potential in the
    foreseeable future. The GSR could be revised upward if there
    are material gains in terms of systemic importance.

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

-- There is no downside potential for the GSR because it is the
    lowest levels in the respective scale.

VR ADJUSTMENTS

Fitch has assigned an Asset Quality score of 'b+', which is below
the 'bb' category implied score, due to the following adjustment
reasons: Loan Write-Offs (negative).

Fitch has assigned an Earnings and Profitability score of 'bb+',
which is below the 'bbb' category implied score, due to the
following adjustment reasons: Earnings Stability (negative).

Fitch has assigned a Funding and Liquidity score of 'bb+', which is
above the 'b' category implied score, due to the following
adjustment reasons: Contingent Access (positive) and Liquidity
Coverage (positive).

BEST/WORST CASE RATING SCENARIO

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

SUMMARY OF FINANCIAL ADJUSTMENTS

Fitch classified other assets such as prepaid expenses and
guarantee deposits as intangibles because Fitch believes these have
a low loss-absorption capacity.

ESG CONSIDERATIONS

Banco Compartamos, S.A., Institucion de Banca Multiple has an ESG
Relevance Score of '4' for Customer Welfare - Fair Messaging,
Privacy & Data Security due to due to the high lending rates
offered to unbanked, lower-income segments of the population, which
expose the bank to relatively higher regulatory, legal and
reputational risks. This has a negative impact on the credit
profile, and is relevant to the ratings in conjunction with other
factors.

Banco Compartamos, S.A., Institucion de Banca Multiple has an ESG
Relevance Score of '4' for Exposure to Social Impacts driven by its
focus on microfinance lending and unbanked segments that makes the
bank´s profile and performance vulnerable to shifts in social or
consumer preferences, and also to political or social programs.
This has a negative impact on the credit profile, and is relevant
to the ratings in conjunction with other factors.

Fitch has revised Banco Compartamos, S.A., Institucion de Banca
Multiple ' ESG Relevance Score of for Human Rights, Community
Relations, Access & Affordability to '2' from '4[+]' to reflect
that the bank's focus on the supply of services for underbanked and
underserved communities no longer has a positive impact on the
credit profile. The ESG Score of '2' is the typical relevance score
for this factor and implies that this issue is irrelevant to the
entity rating but relevant to the sector.

Fitch has revised Banco Compartamos, S.A., Institucion de Banca
Multiple ' Management Strategy ESG Relevance Score to '3' from '4'
to reflect that the lack of consistency between execution and
stated strategic objectives observed in the past no longer has an
impact on the bank's rating. During the pandemic, the consistent
execution of the strategy has driven the financial profile recovery
and sustained a strong capital position. The ESG Score of '3'
implies that this issue is credit neutral or has only minimal
credit impact on the entity.

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.

BANCO DEL BAJIO: Fitch Affirms 'BB+' LT IDR, Outlook Now Stable
---------------------------------------------------------------
Fitch Ratings has affirmed Banco del Bajio S.A. Institucion de
Banca Multiple's (BanBajio) Viability Rating (VR) at 'bb+' and its
Long- and Short-Term Foreign and Local Currency Issuer Default
Ratings (IDRs) at 'BB+' and 'B', respectively. Fitch has also
affirmed BanBajio's and Financiera Bajio, S.A. de C.V. Sofom E.R.'s
(FinBajio) Long- and Short-Term National scale ratings at 'AA(mex)'
and 'F1+(mex)', respectively. The Rating Outlook on the Long-Term
ratings was revised to Stable from Negative.

The Outlook revision reflects BanBajio's resilient and tested
financial profile despite pandemic headwinds and remaining
pressures in the operating environment (OE). These pressures
include the slow recovery of the GDP and the challenging investment
and business environment. Fitch maintains the OE assessment at
'bb+' with a negative trend and has revised the relative importance
of the OE to moderate. In Fitch's view, BanBajio's business profile
and strategy helped it to weather the crisis, despite its nature as
a mid-sized and niche bank.

Fitch also withdrew BanBajio's Support Rating (SR) and Support
Rating Floor (SRF) of '4' and 'B+', respectively, as they are no
longer relevant to the agency's coverage following the publication
of Fitch's updated Bank Rating Criteria on Nov. 12, 2021. In line
with the updated criteria, Fitch has assigned BanBajio a Government
Support Rating (GSR) of 'bb-'.

KEY RATING DRIVERS

IDRs, VR and National Ratings

BanBajio's VR of 'bb+' is underpinned by its specialized business
profile characterized by its strong regional position in Mexico
with a consolidated business model focused on commercial clients
and focused in SMEs and agribusiness. The latter partially offset
its relatively modest franchise in relation to the Mexican banking
system as it has a 3.7% share of the total loan market and 3.1% in
deposits as of September 2021 (3Q21).

BanBajio maintains good capitalization metrics despite the dividend
payment (2Q21: MXN 2,261 million) and compares better than those of
its domestic peers. The bank's common equity Tier 1 (CET1) to risk
weighted assets (RWA) ratio increased to 18.2% at 3Q21 compared to
16.8% at YE20 driven by recurring earnings and modest RWA growth.
While Fitch expects some reductions in the CET1 ratio as the
BanBajio aims to grow above the system or increase dividends, the
bank's capitalization will remain consistent with its rating
category.

Fitch expects the bank to maintain controlled asset quality
metrics, reflecting its good origination standards and guarantee
scheme that have allowed it to face the challenging OE and
withstand deterioration in the most sensitive segments. As of 3Q21,
NPLs accounted for 1.2% of gross loans and adjusted by charge offs
according to the CNBV were 1.7% of gross loans, comparing better
than those registered by the industry of 2.3% and 5.1%,
respectively.

The loan loss allowances to the impaired loans ratio remain at good
levels of 200% thanks to additional reserves created, which
provides a reasonable cushion to absorb credit losses. Restructured
loans are reasonable and represented 8.3% of total loans, while
loan book concentration remains moderate with the 20 largest
debtors accounting for 1.2x of CET1.

Fitch expects BanBajio to continue to improve profitability but to
under pre-pandemic levels due to the prevailing economic
conditions. The bank's operating profit/risk-weighted improved to
3.0% at 3Q21 from 2.3% at YE2020. This improvement was supported by
an increase in net fees and commissions income (13.2% yoy) and
lower credit costs (20.8% of Pre-impairment Op. Profit) after a
peak of 38% in 2020 as the entity reserved in advance. Such
improvements were offset by the still pressured NIM and the modest
increase in operating expenses, which consumed 49.8% of revenues.

BanBajio's good funding profile is underpinned by a growing
deposits base (80.4% of total funding) with an increasing share of
on-demand accounts (47.7% of total deposits). As of September 2021,
the loan to deposit ratio improve to 107.5% compared to the
four-year average of 123.1%. The bank maintains healthy liquidity
levels as demonstrated by an LCR of 127.4%.

GSR

BanBajio's 'bb-' GSR reflects Fitch's expectation that although the
bank is not a domestic systemically important bank (D-SIB) there is
moderate probability of sovereign support in case of need, given
the bank's mid-size franchise and moderate market share of core
customer deposits in the investment-grade Mexican operating
environment. As of 3Q21, BanBajio's deposits were around 3.1% of
the Mexican banking system.

FinBajio

The national ratings of FinBajio are aligned with BanBajio's
national ratings, based on Fitch's institutional support assessment
that the subsidiary is core to the bank's strategy due to its
relevant role in providing core products such as factoring and
leasing, which complement the bank's offering.

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

BanBajio's IDRs, VR and National Ratings

-- Over the medium term, an upgrade would depend on the
    confluence of an improvement of the OE and the credit profile
    of the bank. Specifically, if the bank significantly enhances
    its franchise while continuing to diversify its business
    model, maintains a healthy financial profile and improves its
    capital metrics to 20%.

GSR

-- Upside potential for BanBajio's GSR is limited and can only
    occur over time with a material gain in the bank's systemic
    importance.

FinBajio's National Ratings

-- Any positive movement in FinBajio's national ratings would
    mirror a positive action on BanBajio's national ratings.

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

BanBajio's IDRs, VR and National Ratings

-- A material deterioration of the bank's financial performance
    that leads to a sustained decline in BanBajio's CET1 ratio
    below 13% and operating profit to RWAs ratio below 2%;

-- Increased risks that pressure Fitch's assessment of the OE.

GRS

-- This rating could be downgraded if Fitch believes that the
    government's propensity to support the bank has declined due
    to reasons such as a material loss in the market share of
    retail customer deposits.

FinBajio

-- Any negative action on FinBajio's national ratings would
    mirror a negative action on BanBajio's ratings. A modification
    of the entity's strategic importance to the bank could also
    affect FinBajio's 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.

SUMMARY OF FINANCIAL ADJUSTMENTS

Fitch classified prepaid expenses and other deferred assets as
intangibles and deducted them from equity to reflect low absorption
capacity. In the case of BanBajio, Fitch adjusted the RWAs
according to its criteria, and the agency consolidated the bank's
RWAs with those of its subsidiaries with credit operations.

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.

BANCO MONEX: Fitch Affirms 'BB+' LT IDR, Alters Outlook to Stable
-----------------------------------------------------------------
Fitch Ratings has revised the Rating Outlook for the Long-Term (LT)
Foreign and Local Currency Issuer Default Rating (IDR) of Banco
Monex, S.A., Institucion de Banca Multiple, Grupo Financiero
Monex's (Banco Monex) to Stable from Negative. At the same time,
Fitch has affirmed the Long- and Short-Term (ST) Foreign and Local
Currency IDRs at 'BB+'/'B' and its Viability Rating (VR) at 'bb+'.
In addition, Fitch has revised the Outlook of the national scale
ratings to Stable from Negative and affirmed the LT and ST National
Scale ratings of Banco Monex, Monex Casa de Bolsa, S.A. de C.V.,
Grupo Financiero Monex (Monex CB) and Monex, S.A.B. de C.V. (Monex
SAB) at 'AA-(mex)'/'F1+(mex)'.

The Outlook revision reflects Banco Monex's resilient and tested
financial profile despite pandemic headwinds and remaining
pressures in the operating environment (OE), which continues to be
evaluated at 'bb+' with a negative trend. Fitch believes controlled
asset quality after loan relief and restructures and good earnings
generation through the economic cycle will continue to support
capital metrics and provide adequate buffer against downside risks
from the OE due to its credit concentrations.

Fitch has withdrawn Banco Monex's Support Rating and Support Rating
Floor of '5' and 'NF', respectively, as they are no longer relevant
to the agency's coverage following the publication of Fitch's
updated Bank Rating Criteria on Nov. 12, 2021. In line with the
updated Criteria, Fitch has assigned Banco Monex's Government
Support Rating (GSR) of 'No Support' (ns).

KEY RATING DRIVERS

BANCO MONEX - VR, IDRs and National ratings

Banco Monex's IDRs are driven by its intrinsic creditworthiness, as
reflected in its 'bb+' VR. The VR is one notch above the 'bb'
implied VR to reflect the strength of the bank's business profile,
which is considered a high influence factor for the rating, that
considers its consistently relevant market position in a key
product such as is the FX trading on behalf of third-parties, that
has been translated into a growing and stable earnings generation
through the economic cycle.

Banco Monex is a mid-sized Mexican commercial bank that is one of
the leaders in FX spot and derivatives trading in Mexico's market
on behalf of third parties. As of Sept. 30, 2021 (3Q21), Banco
Monex was the third-largest Mexican bank by FX spot trading
earnings with a market share of 10.6%. Nonetheless, despite its FX
market leadership, its market share as commercial bank is modest on
a local (0.8% of customers deposits of the Mexican banking system)
and global basis.

Fitch believes it is unlikely capital metrics of the bank face
pressures in the foreseeable future due to its good earnings
retention and moderate dividend payments. Banco Monex's
capitalization ratios provide reasonable loss absorption capacity
for the rating category. As of 3Q21, the CET1 capital ratio was
15.4%, similar to its 2017-2020 average. The ratio has strengthened
by 61bp from its level at YE2020 mainly due to the consistent
generation and reinvestment of earnings and moderate balance sheet
growth.

Banco Monex's NPL ratio was 1.4% as of 3Q21, the lowest metric
since 2018, but that was aided by relevant charge-offs made during
the last 12 months. The adjusted NPL ratio that includes write-offs
published by the local regulator was 3.3% at the same date. The 20
largest clients represented 1.2x of its CET1 or 36% of the gross
loans; nevertheless, the loan loss allowances were ample and
covered 278.5% of impaired loans, providing a good loss absorption
capacity for possible additional portfolio impairments.

Fitch expects Banco Monex's will maintain its recurrent earnings
generation and good performance in the short- to meduim-term. As of
3Q21, operating profit to risk weighted assets (RWA) ratio was
3.1%, consistent with its 2017-2020 average of 3.2%. Profitability
ratios have been aided by the business model and revenue structure
of the bank, which benefits from wider FX spread margins during
periods of higher volatility and uncertainty and increased
operating volumes.

Banco Monex's funding structure is reasonable but mostly reliant on
brokerage deposits, which are more sensitive to the OE risks. At
3Q21, loans to customer deposits ratio remained low and at good
level (56.9%). The ratio is underpinned by lower proportion of
loans into the balance sheet than peers. A stable and diversified
customer deposits base that comprised 92% of funding sources by
excluding reverse repos and securities borrowing also benefited the
ratio. Banco Monex's liquidity profile is a strength given its
highly liquid balance sheet. The liquidity position is reflected in
its 174% liquidity coverage ratio that is well above the minimum
regulatory as of 3Q21.

Banco Monex's national scale ratings are relative rankings of
creditworthiness within a certain jurisdiction. The higher national
ratings than mid-sized peers reflect the bank's leadership in the
FX market accompanied by a good financial performance.

GSR: Banco Monex's 'ns' GSR reflects Fitch expectation of there is
no reasonable assumption that such support will be available due to
the bank's omission as a domestic systemically important bank
(D-SIB). At 3Q21, Banco Monex deposits were around 0.8% of the
Mexican banking system.

MONEX SAB

The ratings are at the same level of its main operating subsidiary,
Banco Monex, due to the double leverage ratio that has remained
below 120% in the last four years and that stood at 110.5% at 3Q21.
In spite of a possible increase of the double leverage over the
coming 18 months, Fitch does not expect a material increase above
120% in the short to medium term.

The ratings also consider the long-track record and leadership of
its Mexican operating subsidiaries in the FX trading local market
as well as the consistent, stable and diversified earnings
generation of the consolidated operations through the economic
cycle. Despite Monex SAB being a pure holding company whose
liquidity and interests and principal payment of its senior debt
wholly depends on subsidiaries dividend payments, its liquidity and
refinancing risk is well mitigated by prudent management.

Senior Unsecured Debt: Fitch affirmed the senior unsecured debt at
the same level as Monex SAB's LT National Scale Rating of
'AA-(mex)', as the notes' likelihood of default is the same as the
issuer's.

MONEX CB

Monex CB's ratings and Outlook are aligned with those of Banco
Monex due to Monex Grupo Financiero, S.A. de C.V.'s legal
obligation to provide support to its subsidiaries, as well as
Fitch's perception of Monex CB's key and integral part to the
group's overall vision and strategy.

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

BANCO MONEX - VR, IDR and National Ratings

-- An upgrade of Banco Monex's ratings is unlikely in the
    foreseeable future as they are already at a relatively high
    level for its moderate business model and scale. Over the
    medium term, an upgrade would depend on greater business and
    risk diversification, as well as a marked improvement of its
    gross loan and customer deposit market shares within the
    Mexican financial system.

GSR

-- Upside potential is limited and can only occur over time with
    a material growth of the bank's systemic importance.

MONEX SAB

-- By any positive movement in Banco Monex's national ratings;

-- The debt rating would mirror any changes to the issuer's
    national scale ratings.

MONEX CB

-- The national ratings are aligned with Banco Monex's and would
    mirror any positive changes in the bank's national ratings.

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

BANCO MONEX - VR, IDR and National Ratings

-- If there were a sustained weakening in the bank's asset
    quality that translates into a deterioration of the bank's
    operating profit to RWA ratio consistently below 2.5% and a
    CET1 ratio consistently below 13% as well as a downgrade in
    the Business Profile assessment score due to a weakening of
    Banco Monex's market position on FX trading market;

-- If Fitch revises downward its assessment of the OE Banco
    Monex's IDRs and VR would maintain the same relativity to
    Mexico sovereign rating due its less diversified business
    profile.

GSR

-- There is no downside potential for the GSR.

MONEX SAB

-- The national ratings would remain at the same level as Banco
    Monex and would move in tandem with any rating actions on its
    main operating subsidiary. However, a significant and
    sustained increase of Monex SAB's double leverage ratio above
    120% would lead to a differentiation of one notch with respect
    to the National Scale ratings of Banco Monex.

-- The debt rating would mirror any changes to the issuer's
    national scale ratings.

MONEX CB

-- The national ratings are aligned with those of Banco Monex,
    and a downgrade of the bank's ratings would result in a
    similar action on Monex CB's National Scale ratings.

VR ADJUSTMENTS

The Viability Rating of 'bb+' has been assigned above the implied
Viability Rating of 'bb' due to the following adjustment reason(s):
Business Profile (positive).

The Business Profile Score of 'bb+' has been assigned above the 'b'
category implied score due to the following adjustment reason(s):
Market Position (positive).

BEST/WORST CASE RATING SCENARIO

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

SUMMARY OF FINANCIAL ADJUSTMENTS

Banco Monex and Monex CB: Fitch classified pre-paid expenses and
other deferred assets as intangibles and deducted them from total
equity due to their low loss absorption capacity under stress.

Monex SAB: Fitch classified pre-paid expenses, other deferred
assets and goodwill as intangibles and deducted them from total
equity due to their low absorption capacity under stress. Fitch
re-classified the net operating leases classified as fixed assets
as other earning assets.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

Monex CB: Monex CB's ratings and Outlook are aligned with those of
Banco Monex due to Monex GF's legal obligation to provide support
to its subsidiaries.

Monex SAB: Monex SAB's national ratings are aligned with those of
its main operating subsidiary, Banco Monex.

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.

BANCO VE POR: Fitch Affirms 'BB-' LT IDRs, Alters Outlook to Stable
-------------------------------------------------------------------
Fitch Ratings has revised the Rating Outlook for Banco Ve por Mas,
S.A., Institucion de Banca Multiple, Grupo Financiero Ve por Mas's
(BBX+) Long-Term Foreign and Local Currency Issuer Default Ratings
(IDRs) to Stable from Negative. In addition, Fitch has affirmed the
Long- and Short-term Foreign and Local Currency IDRs at 'BB-'/'B',
and Viability Rating (VR) at 'bb-'. In addition, Fitch has revised
the Rating Outlook for the National scale ratings to Stable from
Negative, and affirmed the Long- and Short-Term National Scale
ratings for BBX+, Casa de Bolsa Ve por Mas, S.A. de C.V. (CBBX+)
and Arrendadora Ve por Mas, S.A. de C.V.(ABX+) at
'A(mex)'/'F1(mex)'.

The Outlook revision is due to BBX+'s relatively resilient and
tested financial profile despite pandemic headwinds, and remaining
pressures in the operating environment (OE), which continues to be
evaluated at 'bb+'/Negative trend. Despite increased Non-Performing
Loans (NPLs) after loan relief and restructures, metrics remain
commensurate with BBX+'s rating category, while reasonable capital
and liquidity metrics provide a reasonable buffer for the ratings
to be sustained at current levels, despite limited earnings
generation and remaining downside risks from the OE.

Fitch has withdrawn BBX+'s Support Rating and Support Rating Floor
of '5' and 'NF', respectively, as they are no longer relevant to
the agency's coverage following the publication of Fitch's updated
Bank Rating Criteria on Nov. 12, 2021. In line with the updated
criteria, Fitch has assigned BBX+'s a Government Support Rating
(GSR) of 'No Support' (ns).

KEY RATING DRIVERS

VR and IDRs

BBX+'s IDRs are driven by its intrinsic creditworthiness, as
reflected in its 'bb-' VR. The VR is driven by a relatively
diversified business model with a modest local and global
franchise, which has resulted in consistent but low earnings
generation through the economic cycle. The VR also reflects
reasonable capitalization and asset quality metrics that are
commensurate with the bank's rating category, as well as its
adequate funding and liquidity profile. At September 2021 (3Q21),
BBX+'s market share regarding total assets, gross loans and
customer deposits was a modest 0.6%, 0.9% and 0.7%, respectively.

BBX+'s capitalization metrics are stable and show reasonable loss
absorption capacity, according to Fitch. However, given the bank's
low earnings generation, continuous capital injections in previous
years have been required to sustain growth. The CET1 capital to
risk-weighted assets (RWA) ratio was 13% at 3Q21, aligned with its
2017-2020 average of 12.9%. Fitch believes capitalization will
sustain at levels in accordance to its rating.

BBX+'s asset quality metrics showed a modest deterioration during
the crisis; nonetheless, Fitch believes such deterioration has been
adequately controlled for the segments served by the company. At
3Q21, the NPL ratio reached its four years highest metric of 3.1%,
but still commensurate to its rating category and comparing similar
to most mid-size Mexican banks rated by Fitch. Charge offs and
foreclosed assets remained low. Asset quality assessment is
pressured by high concentrations per borrower. The 20 main clients
represented 1.8x of BBX+'s CET1, while loan loss allowances not
fully covered the impaired loans (94.5%).

BBX+s' earnings and profitability remain the weakest factor of its
credit profile. Despite the achievements of reducing operating
expenses, above the system's loan growth and decreasing funding
costs, profitability sustained at low levels due to increasing
needs for loan loss allowances after relief programs expiration.
Fitch believes that BBX+'s earnings will remain low in the short-
to medium-term, but recent improvements in costs and sustained
growth will likely continue to offset pressures from asset quality
and provide earnings stability. The operating profit to RWA ratio
was 1% at 3Q21, similar to its consistently low 2017-2020 average
of 1.2%. Loan impairment charges drained 65.7% of its
pre-impairment profit at 3Q21.

BBX+'s funding profile is a strength of its credit profile since
according to Fitch's opinion, the bank's funding structure compares
relatively similar to larger mid-size Mexican banks. At 3Q21, the
gross loans to customer deposits ratio was 124.1%; while customer
deposits were the main component of the funding structure by
representing an adequate 78.1% of the funding sources without
considering repos and securities lending. The liquidity coverage
ratio has maintained consistently above the 100% and at 3Q21 stood
at 114.6%, while the NSFR stood at 111.4% as of the same date.

GSR

BBX+'s 'ns' GSR reflects Fitch expectation of there is no
reasonable assumption that such support will be available due to
the bank's omission as a domestic systemically important bank
(D-SIB). At 3Q21, BBX+ deposits were around 0.7% of the Mexican
banking system.

National Ratings

BBX+´s national scale ratings are relative rankings of
creditworthiness within a certain jurisdiction. The national
ratings of ABX+ and CBBX+ are aligned with BBX+'s national ratings,
and consider the Grupo Financiero Ve por Mas, S.A. de C.V.'s
(GFBX+), which creditworthiness is assumed to be aligned to that of
its main subsidiary (BBX+), legal obligation to support its
subsidiaries, as well as Fitch's perception that these remain core
to the group's overall vision and strategy.

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

BBX+'s IDRs, VR and National Ratings

-- If there were a sustained weakening in the bank's asset
    quality that translates into a deterioration of the bank's
    operating profit to RWA ratio consistently below 1% and a CET1
    ratio consistently below 12% that leads to downgrade the
    Business Profile assessment score.

GSR

-- There is no downside potential for the GSR.

ABX+ and CCBX+ National Ratings

-- Any negative movement would be driven by any negative action
    on BBX+'s ratings.

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

BBX+'s IDRs, VR and National Ratings

-- Over the medium term through an improvement of the bank's
    financial profile, specifically if the operating profit to RWA
    ratio is consistently above 1.25% in conjunction with a CET1
    capital ratio consistently above 15% while maintaining
    reasonable and stable metrics for other financial factors.

GSR

-- Upside potential is limited and can only occur over time with
    a material growth of the bank's systemic importance.

ABX+ and CCBX+ National Ratings

-- Any positive movement would be driven by any positive action
    on BBX+'s ratings.

VR ADJUSTMENTS

The Business Profile Score of 'bb' has been assigned above the 'b'
category implied score due to the following adjustment reasons:
Business Model (positive).

BEST/WORST CASE RATING SCENARIO

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

SUMMARY OF FINANCIAL ADJUSTMENTS

BBX+ and CBBX+: Pre-paid expenses and other deferred assets were
classified as intangibles and deducted from total equity due to its
low absorption capacity under stress.

ABX+: Pre-paid expenses, other deferred assets and goodwill were
classified as intangibles and deducted from total equity due to its
low absorption capacity under stress.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

The ratings of ABX+ and CBBX+ are driven by the institutional
support from BBX+ rated at 'BB-', Rating Outlook Stable.

ESG CONSIDERATIONS

Banco Ve por Mas, S.A., Institucion de Banca Multiple, Grupo
Financiero Ve por Mas has an ESG Relevance Score of '4' for
Governance Structure due to its exposure to an ownership
concentration, which has a negative impact on the credit profile,
and is relevant to the rating[s] in conjunction with other
factors.

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



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

TELEFONICA CELULAR: Fitch Affirms 'BB+' LT FC IDR, Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Foreign Currency (FC)
Issuer Default Rating (IDR) of Telefonica Celular del Paraguay S.A.
(Telecel) at 'BB+' with a Stable Rating Outlook. Fitch has also
affirmed Telecel's USD550 million senior unsecured notes due 2027
at 'BB+'.

Telecel ratings reflect its leading market positions in Paraguay,
supported by an extensive network, distribution coverage and the
strong brand recognition of Tigo. Telecel's competitive strengths
enable stable operational cash flow generation and high margins,
resulting in a solid financial profile. Telecel's FC IDR is capped
by Paraguay's Country Ceiling of 'BB+'.

The ratings reflect the linkage between the company and its parent,
Millicom International Cellular S.A (BB+/Stable), given Millicom's
full control of Telecel through its 100%. Both companies are rated
at the same level due to their similar credit profiles. In
addition, Telecel benefits from synergies related to Millicom's
larger scale and management expertise. Telecel is a 100% owned
subsidiary of Millicom.

KEY RATING DRIVERS

Country Ceiling Limits FC Ratings: Telecel's FC IDR is constrained
by Paraguay's Country Ceiling of 'BB+'. The company's underlying
credit quality is highlighted by a leading market position, strong
pre-dividend FCF and a financial profile that is solid within the
rating level. Telecel is the largest telecom provider in Paraguay
offering mobile telephone, pay-tv and broadband internet services
across the country under the Tigo brand. The company's business
profile and network quality support its consistent cash flow
generation.

Solid Market Position and Revenue Diversification: Telecel is a
wholly-owned subsidiary of Millicom and the leading mobile operator
in Paraguay, with a mobile market share of slightly above 50%.
Telecel has an entrenched position with the most extensive network
in Paraguay under the Tigo brand. Fitch believes Telecel's market
leadership will remain intact, supported by continued expansion in
its fixed-line services.

Fitch expects Telecel's home and B2B segments to represent close to
40% of total revenues by YE 2021, up from 25% in 2019, supported by
the continued expansion of its network coverage. Telecel's mobile
segment, which generates about 55% of its revenues, is expected to
weaken over the medium to long term as a result of declining
voice/SMS revenues and competitive pressures. Demand in fixed-line
services remains strong, given the low penetration of services in
Paraguay.

Profitability Stabilizing: Telecel's EBITDA margin over the medium
to long term is expected to remain higher than its regional telecom
peers given the company's leading position in the country and
network investment. Fitch expects margins to remain stable at
around 35% over the medium term. Competitive pressure has eased and
demand for data services has increased since the coronavirus
pandemic.

Strong Pre-dividend Cash flow: Fitch projects cash flow from
operations to remain solid at around PYG1.0 trillion annually over
the medium term, comfortably covering Fitch's estimated annual
capex in 2022 and beyond of around 16.5% of sales or roughly PYG650
billion, resulting in solid pre-dividend FCF. Historically
dividends have been high, however the company has shown dividend
flexibility when needed to manage leverage.

Leverage Expected Decline: Fitch believes Telecel's solid financial
profile will remain intact over the medium term, backed by its
operational cash flow generation. The company's net leverage should
hover around 3.0x over the medium term primarily due to growing
revenues mainly driven by steady growth from the home business and
even decrease slightly as pressure to pay dividends likely eased
following Milicom's purchase of the 45% minority stake in its
Guatemalan operations.

DERIVATION SUMMARY

Telecel is well-positioned, relative to telecom peers in the 'BB'
category, based on high profitability, low leverage and a leading
mobile market position, backed by solid network competitiveness and
strong brand recognition. Telecel boasts a strong financial profile
with high profitability and low leverage for the rating level,
compared with regional telecom peers in the same rating category.

The company's credit profile is in line with Colombia
Telecomunicaciones S.A. E.S.P. (BBB-/Stable), an integrated telecom
operator in Colombia. Telecel's credit profile is stronger than
Axtel, S.A.B. de C.V. (BB/Stable) and VTR Finance N.V.
(BB-/Stable), given their lack of service diversification and
weaker financial profiles.

The company's lack of geographic diversification, as well as its
high shareholder return, temper the credit. Parent/subsidiary
linkage is applicable, given Millicom's strong influence over
Telecel's operations and Millicom's reliance on Telecel's dividend
upstream.

KEY ASSUMPTIONS

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

-- Subscriber and RGU growth in the mid- to low single-digit
    range;

-- EBITDA margins at around 35%;

-- Dividend policy supports capital structure;

-- Net leverage in the 3.0x range.

RATING SENSITIVITIES

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

-- An upgrade of Paraguay's Sovereign Rating could lead to
    upgrade of Telecel's FC IDR;

-- An upgrade of Millicom to 'BBB-' from 'BB+' would have
    positive rating implications. Millicom's upgrade triggers
    include increased dividend receipts from subsidiaries in
    Colombia and/or Panama, and upgrades in the Country Ceiling of
    Guatemala and Paraguay to 'BBB-'.

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

-- A downgrade of Paraguay's Sovereign Rating or Country Ceiling
    would lead to a downgrade of Telecel's FC IDR;

-- A negative rating action on Millicom due to sustained net
    leverage exceeding 3.5x on a consolidated basis or 4.5x on a
    holding company debt/dividends received basis.

BEST/WORST CASE RATING SCENARIO

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

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: Telecel's liquidity position is adequate,
supported by its readily available cash balance conservative
leverage and solid cash flow generation. The company held a cash
balance of PYG659.5 billion as of Sept. 30, 2021. The company has
short-term debt of PYG95.8 billion, which Fitch expects to be
serviced with cash flow generation, and no other material debt
repayments over the medium term, which further bolsters its
financial flexibility.

The company's total debt, as of Sept. 30, 2021, was PYG4,814
billion, which consists mainly of a USD550 million (PYG3,803
billion) senior unsecured bond due 2027 and local currency
unsecured bank debt. In January 2020, Telecel issued a USD250
million add-on to its 2027 senior unsecured notes. The proceeds
from the notes were used at Telecel's parent company, Millicom, for
capex and general corporate purposes as well as for refinancing of
other Telecel debt.

ISSUER PROFILE

Telecel is the largest mobile operator in Paraguay, providing
communications, data, entertainment and solutions services under
the Tigo brand with the most extensive 2G and 3G networks in the
country.

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.


                           *********


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

Troubled Company Reporter-Latin America is a daily newsletter
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Chapman, Editors.

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