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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

          Friday, December 31, 2021, Vol. 22, No. 256

                           Headlines



A R G E N T I N A

ARGENTINA: Records Highest Level of Covid-19 Infection in Last 5Mos


B R A Z I L

KLABIN SA: Moody's Assigns Ba1 Corp. Family Rating, Outlook Stable
PETROLEO BRASILEIRO: Workers Go On Strike in Brazil
SAMARCO MINERACAO: Creditors Reject Debt-Restructuring Plan


C A Y M A N   I S L A N D S

HEC INTERNATIONAL: Taps Graham Robinson as Liquidator


C O L O M B I A

BANCOLOMBIA SA: Celsia Gets Loan Based on Sustainability Indicators


J A M A I C A

UC RUSAL: Repays Large Portion of Debt Ahead of Schedule

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A R G E N T I N A
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ARGENTINA: Records Highest Level of Covid-19 Infection in Last 5Mos
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Argentina reported 20,263 new cases of Covid-19, the highest in the
last five months, bringing the total number of positive cases to
5,480,305, while deaths rose to 117,066 after 31 deaths were
reported in the previous 24 hours, according to Rio Times Online's
December 28 report.

Rio Times Online recalls that in October, the government relaxed
most of the sanitary restrictions in force until then.

                     About Argentina

Argentina is a country located mostly in the southern half of South
America.  It's capital is Buenos Aires. Alberto Angel Fernandez is
the current president of Argentina after winning the October 2019
general election. He succeeded Mauricio Macri in the position.

Argentina has the third largest economy in Latin America.  The
country's economy is an upper middle-income economy for fiscal year
2019, according to the World Bank. Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.

Standard & Poor's credit rating for Argentina stands at CCC+ with
stable outlook, which was a rating upgrade issued on Sept. 8,
2020.

Moody's credit rating for Argentina was last set at Ca on Sept. 28,
2020.  Fitch's credit rating for Argentina was last reported on
Sept. 11, 2020 at CCC, which was a rating upgrade from CC.  DBRS'
credit rating for Argentina is CCC, given on Sept. 11, 2020.  

As reported by The Troubled Company Reporter - Latin American, DBRS
noted that the recent upgrade in Argentina's ratings (September
2020) follows the closing of two debt restructuring agreements
between the Argentine government and private creditors.  The first
restructuring involved $65 billion in foreign-law bonds.  The deal
achieved the requisite participation necessary to trigger the
collective action clauses and finalize the restructuring on 99% on
the aggregate principal outstanding of eligible bonds.  DBRS added
that the debt restructurings conclude a prolonged default and
provide the government with substantial principal and interest
payment relief over the next four years.

DBRS further relayed that Argentina is also seeking a new agreement
with the International Monetary Fund (IMF) to replace the canceled
2018 Stand-by Agreement.  Formal negotiations on the new financing
began in November 2020.  Obligations to the IMF amount to $44
billion, with major repayments coming due in 2022 and 2023.




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B R A Z I L
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KLABIN SA: Moody's Assigns Ba1 Corp. Family Rating, Outlook Stable
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Moody's Investors Service has assigned Ba1 corporate family rating
(CFR) to Klabin S.A. The outlook is stable.

This is the first time Moody's assigns ratings to Klabin.

Assignments:

Issuer: Klabin S.A.

  Corporate Family Rating, Assigned Ba1

Outlook:

Issuer: Klabin S.A.

  Outlook, Assigned Stable

RATINGS RATIONALE

Klabin's Ba1 rating reflects the company's good liquidity profile,
historically strong EBITDA margins, product diversification through
market pulp and paper and packaging products, which include
kraftliner, coated boards, industrial bags and corrugated boxes, as
well as well-balanced revenue and EBITDA sources. The rating also
incorporates Klabin's solid market position as one of the largest
integrated pulp and paper packaging producers in Latin America. The
company benefits from a flexible business model, which allows for
rebalancing of export volumes or changes in the product mix to
respond to shifts in demand. This flexibility is a competitive
advantage and helps mitigate the risks of operating in the volatile
and cyclical pulp and paper industry. The Puma II expansion
project, which has been essentially prefunded, will add to this
flexible capacity and position the company for long term growth
without significantly weighting on credit metrics.

Klabin has maintained strong margins over time, with Moody's
adjusted EBITDA margin averaging 45% since 2015. However, the
company lacks scale when compared to global peers, with $3.0bn
(BRL16.2 billion) in net revenues and $1.35bn (BRL7.4 billion) in
EBITDA for the last twelve months ending September 2021.

The rating is also constrained by Klabin's higher leverage relative
to similarly rated global peers, and negative free cash flow (FCF)
generation resulting from the sizable investments necessary to fund
the Puma II expansion project and significant dividend
distributions. The company is exposed to the inherent volatility in
the pulp industry, with pulp representing 55% of EBITDA for the
twelve months ending September 2021, as well as to economic growth
and volatility in key markets for paper packaging products.

Klabin's debt levels have increased since 2019 due to the Puma II
expansion project and should stabilize at current levels around
BRL27 billion ($4.9 billion). Over the next two years, leverage
should benefit from EBITDA growth, however it will remain
relatively high compared to global peers. Moody´s expects adjusted
gross debt/EBITDA to decrease from 4.0x as of September 2021 to
3.7x in 2022 and 3.4x in 2023.

Klabin has a comfortable debt amortization schedule and ample
liquidity, with cash balance of BRL 8.95 billion ($1.63 billion) as
of September 2021 and a fully available revolving credit facility
(RCF) in the amount of $500mm (BRL2.72 billion) maturing in October
2026.

Governance considerations are relevant for the company´s credit
quality as well. Klabin is majority-owned and controlled by the
Klabin family via Irmaos Klabin S.A and Niblak Participacoes S.A.,
which together hold 52.23% of outstanding common shares and 19.36%
of total outstanding shares. Klabin's shares and Units are traded
on the B3 stock exchange under the Level 2 of corporate governance.
The founding family is not involved in the company's daily
management but holds nine seats on the board of directors (out of
13). As per Klabin´s policy, at least 20% of the board members
must be independent.

Furthermore, the company has a good level of overall financial and
operational disclosure, including disclosures of dividend,
liquidity, and financial leverage policies, as well as risk
management policies. However, the company lacks track-record of
compliance with these policies, that have been established in June
2020, and display relatively aggressive leverage limits and
dividend distribution range when compared to global peers for
expansion periods.

RATING OUTLOOK

The stable outlook incorporates Moody's expectation that Klabin
will maintain good liquidity and manage capital spending and
dividend distribution prudently, without compromising its leverage
and liquidity in the next 12-18 months.

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

The ratings could be upgraded if Klabin maintains a strong
liquidity position and demonstrates conservative financial
policies. An upward rating movement would also be subject to the
relative position of Brazil's sovereign rating. Quantitatively, an
upgrade of the company's rating would depend on leverage below 3.0x
adjusted total debt/EBITDA on an ongoing basis; improvement in
retained cash flow to above 20% adjusted retained cash flow/gross
debt; and positive free cash flow generation on a consistent
basis.

The ratings could be downgraded if Klabin's operating environment
deteriorates significantly, leading to weaker operating performance
and liquidity, or if the company's expansion cycle starts to weigh
on leverage metrics. Additionally, a downgrade of Brazil's
sovereign rating could strain Klabin's rating. Quantitatively, the
ratings could be downgraded if adjusted total debt/EBITDA exceeds
4.5x on a consistent basis, or free cash flow is persistently
negative.

Headquartered in Sao Paulo, Brazil, Klabin S.A is an integrated and
diversified pulp and paper packaging producer with 3.7 million tons
of pulp capacity per year -- 1.6 million tons of market pulp and
2.1 million tons of paperboard, part of which is converted into 1.2
million tons of packaging products. The company is the largest
producer, exporter and recycler of packaging paper in Brazil, and
one of the largest integrated producers in Latin America. In the
twelve months ending September 2021 Klabin reported BRL16,2 billion
($3.0 billion) in net revenues.


PETROLEO BRASILEIRO: Workers Go On Strike in Brazil
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Rio Times Online reports that the Unitary Federation of Petroleum
Workers (FUP) and its affiliated unions will close this year in a
national strike in protest against government threats of possible
privatization of Petroleo Brasileiro S.A. (Petrobras), Brazil's
largest company, the association disclosed.

According to Brazilian union rules, going on strike means that
Petrobras workers, mostly affiliated with the FUP, are already on
alert to rise if the Government decides to take the oil company out
of State control, the report notes.

According to Brazilian union rules, going on strike means that
Petrobras workers, mostly affiliated with the FUP, are already on
alert to rise if the Government decides to take the oil company out
of State control, the report relays.

                         About Petrobras

Petroleo Brasileiro S.A. or Petrobras (in English, Brazilian
Petroleum Corporation - Petrobras) is a semi-public Brazilian
multinational corporation in the petroleum industry headquartered
in Rio de Janeiro, Brazil.  Petrobras control significant oil and
energy assets in 16 countries in Africa, the Americas, Europe and
Asia.  But, Brazil represents majority of its production.

The Brazilian government directly owns 54% of Petrobras' common
shares with voting rights, while the Brazilian Development Bank
and Brazil's Sovereign Wealth Fund (Fundo Soberano) each control
5%, bringing the State's direct and indirect ownership to 64%.

A corruption scandal was uncovered in 2014 that involved
Petrobras.  The scandal related to money laundering that involved
Petrobras executives.  The executives were alleged to get received
kickbacks from overpriced contracts, to the tune of about $3
billion in total.

S&P Global Ratings affirmed its 'BB-' global scale and its 'brAAA'
Brazilian national scale ratings on Petrobras on July 28, 2021.
Moody's Investors Service affirmed the 'Ba2' long term foreign
currency credit rating of Petrobras on August 23, 2019, with a
stable Outlook. Fitch revised outlook on Petrobras to negative and
affirmed 'BB-' long term foreign currency and local currency credit
ratings on May 7, 2020.


SAMARCO MINERACAO: Creditors Reject Debt-Restructuring Plan
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globalinsolvency.com, citing bnamericas.com, reports that mining
giant Vale said creditors of Brazilian iron ore pellet-producer
Samarco Mineracao rejected the company's proposal to restructure
its debt under a bankruptcy protection plan.

A 50/50 joint venture between Vale and BHP, Samarco filed for
bankruptcy protection earlier this year to avoid early payment to
some bondholders in an effort to preserve its cash flow and resume
full production, according to globalinsolvency.com.

The company currently has debts of BRL50 billion (US$8.8 billion),
of which BRL26 billion are in outstanding bonds and BRL24 billion
are owed to Vale and BHP, the report notes.

The proposal rejected by bondholders involved a 75% haircut,
according to a document unveiled by the firm, the report relays.

A new round of negotiations between the company and creditors is
likely to take place in the coming months, although Samarco did not
provide a specific date, the report discloses.  Samarco is eyeing
production at full capacity by 2030, the report says.  The company
halted operations from late 2015 until December 2020 due to a
tailings dam collapse in Minas Gerais state, the report notes.
Production this year is expected to reach 7.7Mt, representing 26%
of capacity, the report relays.

In November 2015, its Fundao tailings dam at the Germano complex in
Mariana collapsed, destroying two villages, killing 19 people and
causing widespread environmental damage, the report recalls.  In a
presentation to bondholders, Samarco said total capex projected for
2022 to 2042 is 17.5 billion reais in real terms, the report adds.

               About Samarco Mineracao SA

Samarco Mineracao SA is a Brazilian mining joint venture between
BHP Group and Vale SA. erves as an iron ore processing company. The
company provides blast furnace, direct reduction, sinter feed, as
well as low and normal silica content pellets.

On April 9, 2021, the Debtor filed a voluntary petition for
judicial reorganization in the 2nd Business State Court for the
Belo Horizonte District of Minas Gerais in Brazil pursuant to
Brazilian Federal Law No. 11,101 of February 9, 2005.

Samarco Mineracao filed for Chapter 15 bankruptcy recognition
(Bankr. S.D.N.Y. Case No. 21-10754) on April 19, 2021, in New York,
to seek U.S. recognition of its Brazilian proceedings.

The Debtor's U.S. counsel is Thomas S. Kessler of Cleary Gottlieb
Steen & Hamilton LLP.





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C A Y M A N   I S L A N D S
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HEC INTERNATIONAL: Taps Graham Robinson as Liquidator
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Hec International, Inc., in liquidation, taps Graham Robinson of
Crowe Cayman Limited as liquidator.

The liquidator can be reached at:

         Graham Robinson
         Crowe Cayman Limited
         94 Solaris Avenue, Camana Bay, PO Box 30851
         Grand Cayman KY1-1204




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C O L O M B I A
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BANCOLOMBIA SA: Celsia Gets Loan Based on Sustainability Indicators
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Celsia signed with Bancolombia its first loan related to compliance
with Environmental, Social and Corporate Governance (ESG)
indicators for an amount of $500,000 million and a term of 8
years.

This loan is directly related to three indicators in which Celsia
has been working decisively and consistently for several years, and
on which it has set goals with which the company can benefit from a
reduction of up to 100 basis points in the interest rate:

* Decrease in the intensity of CO2 emissions.
* Ecological restoration of watersheds and ecosystems with the
planting of native trees from the ReverdeC program.
* Promotion of gender equity in the work environment.

Ricardo Sierra, leader of Celsia, affirmed that "the use of these
resources will be to improve the credit conditions and the maturity
profile of the company and does not represent an increase in its
level of indebtedness. On the contrary, this operation allows us to
obtain a competitive advantage in financing, in addition to
demonstrating our commitment to ESG indicators and the
sustainability strategy that we are carrying out, with which we
want to contribute to the fulfillment of both national and
international goals in the matter of climate change and gender
equity."

This operation improves the company's maturity profile and reduces
interest payments by about $9,800 million per year compared to the
cost of debt at the same maturity term.

This financing modality was launched in April of this year by
Bancolombia, and seeks to recognize the commitment of companies
with the contribution to sustainable economic development through
an improvement in the interest rate, by demonstrating compliance
with ESG objectives that are established at the start of the
operation.

For Juan Carlos Mora, president of Bancolombia, "this loan
reconfirms the intention of accompanying our clients in their
transition to a low-carbon economy and achieving significant
progress in indicators such as gender equality, in line with
compliance with the Sustainable Development Goals (SDG). Thanks to
this financing mechanism, we were able to grant more than 1.5
trillion pesos by the end of 2021, which materialize our purpose of
promoting sustainable economic development to achieve the
well-being of all."

                Celsia, Sustainable Energy

Faced with the indicators that will be evaluated, the company has
progressed consistently for several years:

Celsia's climate change strategy focuses on mitigating and
offsetting CO2 emissions and adapting its operations and
businesses. In this sense, it projects an increasingly clean and
balanced energy matrix, with a high share of renewable energies.

The company is committed to reducing the intensity of CO2 emissions
generated by operations in Colombia by 73% compared to 2015 ,
thanks to the strategy of diversifying its power generation
portfolio, improving the loss indicators and the execution of
energy efficiency projects.

The ReverdeC program, which aims to protect and restore water
basins by planting 10 million trees to restore ecosystems in
Colombia, has managed to plant more than 7.2 million trees since
2016. During 2021 1.5 million have been planted , recovered 4,452
hectares and generated more than 1,200 local jobs with an
investment of more than $ 5 billion. The Company is committed to
maintaining an annual planting rate of 1.0 million trees until
2025.

In terms of gender equality, Celsia is committed to removing sticky
floors or glass ceilings for women through: training programs for
women as electrical technologists in alliance with the Sena;
increase in the number of women in succession processes, increase
in the number of external female candidates for highly masculinized
positions, increase in the number of women promoted to the middle
management level, among others. The company is committed to
increasing the percentage of women in the total composition of its
direct collaborators in Colombia, which should be equal to or
greater than 35% by 2030.

As reported in the Troubled Company Reporter-Latin America on July
14, 2021, Fitch Ratings downgraded to 'BB+' the long-term issued
default rating of Bancolombia S.A. which reflect the recent
downgrade of Colombia's ratings, as the bank is constrained by the
sovereign's ratings.



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J A M A I C A
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UC RUSAL: Repays Large Portion of Debt Ahead of Schedule
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RJR News reports that UC Rusal has repaid US$839.2 million of its
debt to Russia's largest lender Sberbank ahead of schedule.

The loan, which includes U.S. dollar and rouble tranches of
US$2.1billion and 18 billion roubles respectively, is secured by
part of Rusal's stake in metals producer Nornickel and matures in
late 2027, the report notes.

As reported in the Troubled Company Reported on May 6, 2021, Fitch
Ratings has upgraded Russian-based aluminium producer United
Company RUSAL, international public joint-stock company's (RUSAL)
Long-Term Issuer Default Rating (IDR) to 'BB-' from 'B+'. Fitch has

also upgraded RUSAL Capital D.A.C.'s senior unsecured notes to
'BB-' from 'B+'. The Recovery Rating is 'RR4'. The Outlook on the
Long-Term IDR is Stable.

UC Rusal is the parent company of West Indies Alumina Co
(Windalco), a producer of base metal products like bauxite and
alumina, in Jamaica.

The TCR-LA in August 24, 2021, citing RJR News, reported that UC
Rusal said problems have developed with wage and fringe benefits
negotiations for workers employed to Rusal's operations in
Jamaica.



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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.

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

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