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/raid1/www/Hosts/bankrupt/TCRLA_Public/220110.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, January 10, 2022, Vol. 23, No. 1 Headlines A R G E N T I N A ARGENTINA: Assumes CELAC Pro-Tempore Presidency For Next Year PROVINCE OF JUJUY: S&P Affirms 'CCC+' ICR, Outlook Stable B A H A M A S AIR CANADA: To Suspend Flights to Bahamian Island, Exuma B R A Z I L BANCO DO BRASIL: Fitch Rates Proposed Sr. Unsec. Notes 'BB-(EXP)' BANCO DO BRASIL: Moody's Assigns Ba2 Rating to New Sr. Unsec. Notes ITA TRANSPORTES: Sao Paulo Calls for Bankruptcy Decree C H I L E AGROSUPER SA: Moody's Assigns Ba1 First Time Rating, Outlook Stable LATAM AIRLINES: Arnold & Porter Represents Unsecured Claimants M E X I C O MEXICO: Auto Sales Still Behind Pre-Pandemic Level T R I N I D A D A N D T O B A G O TRINIDAD & TOBAGO: Economic Recovery Begins in Country X X X X X X X X [*] BOND PRICING: For the Week Jan. 3 to Jan. 7, 2022 - - - - - ================= A R G E N T I N A ================= ARGENTINA: Assumes CELAC Pro-Tempore Presidency For Next Year ------------------------------------------------------------- Buenos Aires Times reports that Argentina took over the pro-tempore presidency of CELAC (Comunidad de Estados Latinoamericanos y Caribenos) as the region's "consensus" candidate, declaring its main mandate is the "quest for agreement." Government officials hailed the development, with Foreign Minister Santiago Cafiero declaring that "receiving unanimous confidence is a real commitment" from the region, according to Buenos Aires Times. "This pro-tempore presidency is a great honor and pride for Argentina because we understand the timeline we are in. This is not beginning today from scratch," said Cafiero, the report notes. Opposition lawmakers, however, expressed concern over the news, speculating that the move marked a clear foreign policy shift away from the United States and towards governments with questionable human rights records, such as Cuba, Nicaragua and Venezuela, the report discloses. Addressing CELAC foreign ministers at a summit in Buenos Aires, President Alberto Fernandez declared that the regional bloc "was not born to oppose anyone," the report relays. Praising Mexico's role in "revitalising" the body, the Peronist leader thanked the group for its confidence and ongoing support in talks with the International Monetary Fund to reach a new financing programme and restructure Argentina's outstanding debt, the report notes. CELAC consists of 33 Latin American and Caribbean countries but the Buenos Aires conclave only brought together 32 of them after the decision of Brazilian president Jair Bolsonaro not to send a representative, the report discloses. The pro-tempore leadership will permit Argentina to return to the role of mediator in the United States' backyard as has not happened for a while, the report relays. The main challenge will be settling the open conflicts in Nicaragua, Cuba and Venezuela where, according to the denunciations from the opposition, the democratic institutions have ceased to function correctly while human rights are trampled down every day, the report says. Created just over a decade ago under the influence of the late Venezuelan leader Hugo Chavez, CELAC has for years been the preferred sphere of Nicaragua, Venezuela and Cuba from which to direct their criticisms of the United States and its "policy of interventionism" in Latin America, the report discloses. Since Canada and the United States do not form part of CELAC, the government of former president Mauricio Macri gave it zero importance, a path now followed by Bolsonaro, the report relays. 'Concessions' Meanwhile, the PRO centre-right opposition party speculated that the government had made "concessions" to Cuba, Nicaragua and Venezuela "to obtain votes or avoid vetoes" and clinch the temporary presidency, the report notes. PRO's International Relations Secretariat underlined "the need for the national government to promote restoration and validity of democracy and human rights in all the countries of the continent," the report relays. Prior to the meeting of CELAC foreign ministers, the opposition party remarked that the "claim" to that position "cannot lead to forgetting the requirement to sound the alert over the human rights situation in the three countries of Cuba, Nicaragua and Venezuela, where a systematic undermining of the individual rights and liberties of those sister nations has been verified," the report says. "We question the concessions which the national government has made or could make to obtain votes and/or avoid vetoes in the face of the evident abuses by the dictatorships of the aforementioned countries," alerted PRO, the report relates. After Mexican Foreign Minister Marcelo Ebrard highlighted the "consensus" among CELAC members to back Argentina's candidacy, Cafiero underlined in his speech that the aim is "to make the region much fairer," calling on CELAC members to work towards "their peoples overcoming social injustice," the report notes. "CELAC was not born to compete against anybody or anything. It was born out of the gut feeling of Latin American and Caribbean peoples as a response to the need for unity without exclusion," affirmed the minister in reference to the Organisation of American States (OAS) and its sanctions against nations like Cuba or Venezuela, the report relays. In that sense, he remarked that "CELAC is a forum tailor-made for the region," defining the outlook planned by the Argentine government for the next year: "The quest for agreement is our main mandate and respect for diversity our guideline," the report discloses. "As for the dialogues we plan to pursue beyond the region, we wish to continue strengthening dialogue with the European Union, China, India, Russia and the African Union, among others," anticipated Cafiero in his speech, with the United States a striking absence from his words, the report relays. The EU Model Back in July, reports revealed that the administrations of Andres Manuel Lopez Obrador and Alberto Fernandez were hoping to run CELAC along the lines of the European Union, the report relays. While Argentina received strong support for its candidacy, the Nicaraguan government of Daniel Ortega did raise objections as a reproach for the recent condemnation of his regime by the United Nations Human Rights Council, now headed by Argentine diplomat Federico Villegas, the report notes. Despite this hitch, Cafiero and his team received the support of his Mexican colleague Ebrard who pulled together the votes of Central American governments in favour of the candidacy of Alberto Fernández, the report discloses. Argentina even paid the air tickets for countries to be directly present at the meeting even though their votes could have been cast remotely, the report says. The representatives of Guyana, Trinidad and Tobago, Saint Vincent and the Grenadines and St. Kitts and Nevis arrived in Buenos Aires via an invitation from the Casa Rosada at a total cost of almost US$70,000, the report notes. In the view of many analysts, the Argentine position seems to be open defiance of the United States, the report relays. Buenos Aires' Ambassador to Washington Jorge Argüello and Strategic Affairs Secretary Gustavo Beliz will be entrusted with working with the officials of the Democratic administration of Joe Biden to find a balance between condemning and soothing the governments accused of being authoritarian, such as the Ortega couple in Nicaragua, the report discloses. Priorities The report discloses that during the meeting of foreign ministers at the Foreign Ministry, Santiago Cafiero outlined 15 areas of action proposed by the government to discuss during Argentina's pro-tempore presidency: 1) post-COVID economic recovery; 2) regional health co-operation; 3) space cooperation; 4) science, technology and innovation for social inclusion; 5) integral disaster management; 6) education; 7) institutional reinforcement and the CELAC anti-corruption agenda; 8) food security; 9) dialogue with partners beyond the region; 10) the integration of Latin American and Caribbean infrastructure; 11) environmental co-operation; 12) the development and perfection of CELAC operations; 13) improving the situation of women in member countries; 14) digital transformation and co-operation and 15) culture. 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. Fitch Ratings' affirmed Argentina's 'CCC' Long-Term Foreign-Currency and Local-Currency Issuer Default Ratings (IDRs) at 'CCC' last Oct. 18, 2021, reflecting macroeconomic imbalances and acute financing constraints that continue to undermine debt repayment capacity following 2020 bond restructurings, and significant political uncertainty around how these challenges will be addressed. 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. 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. PROVINCE OF JUJUY: S&P Affirms 'CCC+' ICR, Outlook Stable --------------------------------------------------------- S&P Global Ratings affirmed its 'CCC+' foreign and local currency long-term issuer credit ratings on the province of Jujuy with a stable outlook. Outlook The stable outlook considers the risks from Jujuy's structural weaknesses, which include limited economic growth prospects and high infrastructure needs, large dependence on national government transfers, and limited access to funding. It also reflects the cash relief Jujuy obtained from the recent debt restructure. Downside scenario S&P said, "We would downgrade Jujuy in the next 12 months if we revised downward our transfer and convertibility (T&C) assessment on Argentina, given that scarcity of reserve levels could prompt tension in subnational governments' access to foreign currency for debt service payments. We could also lower the ratings if liquidity deteriorates beyond our base case because of tighter access to borrowing or worsening fiscal performance that rapidly consumes the province's cash reserves and raises the risk of another default." Upside scenario S&P said, "Given that we don't believe that Argentine local and regional governments (LRGs) meet the conditions for us to rate them above the sovereign, we will only upgrade the province of Jujuy if we take a similar action on Argentina in the next 12 months and if we see continuous improvement in the province's stand-alone credit profile. The latter would come from a better fiscal performance, with balanced fiscal results, and higher cash accumulation or greater certainty about the province's capacity to tap debt markets as payments come due in 2023-2025." Rationale The 'CCC+' ratings reflect Jujuy's volatile and inflexible budgetary performance, a debt burden of more than 60% of operating revenues, and low cash reserves and limited prospects of future access to markets amid expected increase in debt service in 2023-2025. The ratings also reflect a very volatile and underfunded institutional framework, low GDP per capita, and limited growth prospects. Slow economic growth and low institutional predictability challenge Jujuy's financial planning Macroeconomic distortions in Argentina remain significant and weigh on Jujuy's growth prospects. S&P said, "After a rebound in 2021, we expect growth to hover near 2% in the next few years, and GDP per capita to recover its pre-pandemic level only by mid-2022. Meanwhile, inflation is still likely to stay close to 50% year-over-year in 2022 and will continue to pressure the already weak socioeconomic indicators. We estimate Jujuy's GDP per capita at $6,135 for 2022, which is below the national average of $10,990 and those of local peers such as the province of Cordoba ($8,474) and the province of Buenos Aires ($10,138)." Meanwhile, poverty levels--historically high in the province--have been exacerbated by the prolonged pandemic-related crisis and remain above 40%, which will continue to add significant spending pressure to Jujuy's finances. S&P said, "At the same time, the very volatile and unbalanced institutional framework for Argentine LRGs constrains the rating on the province. In our view, the sovereign's very weak institutional predictability and volatile intergovernmental system has been subject to various modifications to fiscal regulations and lack of consistency over the years, which jeopardize the LRGs' financial planning and consequently their credit quality. In our view, the national government's need to consolidate its accounts could potentially result in less transfers to provinces or the transfer of some of the national government's spending responsibilities." The tough economic conditions and uncertain fiscal framework will challenge the provincial administration's capacity to consolidate accounts and strengthen its fragile liquidity. The province's large infrastructure and social needs result in significant spending pressure on the local budget. The administration recently presented its multiannual development plan, which includes ambitious capital expenditure (capex) targets, mostly aligned with the administration's social and environmental agenda. Amid limited access to borrowing sources, we think careful financial planning will be key to avoiding liquidity pressure when amortization payments come due in 2023-2025." In addition, the recent distressed debt exchange weighs on our assessment of the provincial administration. Fiscal performance and debt profile have improved, but liquidity remains stressed given prolonged inability to access markets. S&P said, "We expect Jujuy's prudent fiscal policies will keep operating surpluses above 5% of operating revenues in the next three years, although performance could be volatile given the changing macroeconomic conditions and the province's high dependence on national government transfers. After many years of operating deficits, operating results turned positive in 2020 and remained strong in 2021. While the dramatic improvement in the fiscal performance in 2020 was partly due to extraordinary sovereign transfers amid the pandemic, the province has been able to keep solid results despite the removal of the support in 2021." The high inflation in Argentina--while overall a detrimental factor for the sovereign and provincial economies--has provided extraordinary flexibility for Argentine LRGs in the last several years. Inflation has also been a relevant issue amid the pandemic, when public servant salaries remained unchanged during most of 2020. High inflation, coupled with the administration's hiring freeze on new workers in areas other than health, has been an important source of fiscal adjustment in the province. However, further consolidation of payroll could prove difficult given the worsening purchase power of salaries and of Jujuy's socioeconomic profile--where the public administration plays a key role as employer. The administration has also been increasing gross receipt taxes and improving the tax administration. However, the effectiveness of the latter has been less relevant given the low income base and large informal sector in the province. Jujuy's infrastructure needs remain significant and will keep capex above 10% of total spending and deficits after capex at 4.4% on average. After finalizing the construction of the first stage of the Cauchari solar field, the province presented an ambitious development plan for the next two years that includes improving education, health, and transportation infrastructure. Recent enhancement in Jujuy's finances has marginally improved its liquidity position from pre-pandemic levels. S&P estimates its available cash will be sufficient to cover nearly 40% of 2022 debt service--estimated at a total of ARS17 billion--and the receipts from the Cauchari solar farm could support the balance of debt service. However, expected deficits after capex could rapidly erode the province's cash position if access to markets continues to be limited. The recent debt restructuring brought significant relief for 2022, but debt payments jump up to 13% of operating revenues in 2023 (from 7.5% in 2021-2022), when the Cuachari notes and the Exim bank loan start amortizing for a total of $80 million annually. Based on management's projections, S&P thinks that the Cauchari solar farm's annual profits (estimated at $25 million) could help mitigate liquidity pressure. With limited capacity to tap markets after recent debt restructuring, net borrowing will likely remain negative. As a result, S&P estimates the debt burden will keep decreasing to nearly 60% of operating revenues in 2022-2023, from its 100% peak in 2019. Still, the debt burden is among the highest of the Argentine provinces. Seventy percent is denominated in foreign currency, so it's highly vulnerable to exchange rate swings. The decreasing debt trend could revert if the Argentine peso depreciates more rapidly, although this remains uncertain given the multiple exchange rate systems currently in Argentina. Nonetheless, we note that the new terms of the international bond (25% of total debt stock) have reduced Jujuy's interest burden to an average of 3.7% of operating revenues in 2022-2023 from 5.1% in 2019. In accordance with S&P's relevant policies and procedures, the Rating Committee was composed of analysts that are qualified to vote in the committee, with sufficient experience to convey the appropriate level of knowledge and understanding of the methodology applicable. At the onset of the committee, the chair confirmed that the information provided to the Rating Committee by the primary analyst had been distributed in a timely manner and was sufficient for Committee members to make an informed decision. After the primary analyst gave opening remarks and explained the recommendation, the Committee discussed key rating factors and critical issues in accordance with the relevant criteria. Qualitative and quantitative risk factors were considered and discussed, looking at track record and forecasts. The committee's assessment of the key rating factors is reflected in the Ratings Score Snapshot above. The chair ensured every voting member was given the opportunity to articulate his/her opinion. The chair or designee reviewed the draft report to ensure consistency with the Committee decision. The views and the decision of the rating committee are summarized in the above rationale and outlook. The weighting of all rating factors is described in the methodology used in this rating action. Ratings List RATINGS AFFIRMED JUJUY (PROVINCE OF) Issuer Credit Rating CCC+/Stable/-- JUJUY (PROVINCE OF) Senior Unsecured CCC+ ============= B A H A M A S ============= AIR CANADA: To Suspend Flights to Bahamian Island, Exuma -------------------------------------------------------- RJR News reports that Air Canada said it plans to suspend flights to the Bahamian island of Exuma as the Omicron variant shakes up the tourism industry. The Nassau Guardian says it received a copy of a letter sent to local tourism stakeholders by Air Canada Vacations' Director of Product Development, Diana Rodriguez, revealing that service would shut down by January 30, according to RJR News. Chester Cooper, Deputy Prime Minister and Minister of Tourism, Investments and Aviation, said the suspension of the service is regrettable but understandable, the report notes. He added that existing airlift into the island should be able to supplement the loss, the report relays. =========== B R A Z I L =========== BANCO DO BRASIL: Fitch Rates Proposed Sr. Unsec. Notes 'BB-(EXP)' ----------------------------------------------------------------- Fitch Ratings has assigned an expected Long-Term rating of 'BB-(EXP)' to Banco do Brasil S.A.'s (BdB) proposed senior unsecured notes due 2029, acting through its Grand Cayman branch. The size of the issuance is yet to be determined upon book building. The bonds' proceeds shall be used for the financing and/or refinancing of existing or future social projects defined by the bank. The final rating is contingent upon the receipt of final documents conforming to the information already received. KEY RATING DRIVERS The expected rating on the notes corresponds to BdB's Long-Term Foreign Currency Issuer Default Rating (IDR) (BB-/Negative) and ranks equal to its other senior unsecured debt. BdB's ratings are equalized with Brazil's IDRs (BB-/Negative) and are further underpinned by the bank's Viability Rating (VR). In Fitch's view, the bank would receive support from the federal government, if needed. This reflects the majority of federal government ownership, its key policy role, particularly in rural lending and systemic importance. Key Rating Driver 1 Fitch believes that the Brazilian government's willingness to support BdB in case need is high; however, its capacity to do so has fallen, as reflected in the successive sovereign rating downgrades. RATING SENSITIVITIES Factor that could, individually or collectively, lead to negative rating action/downgrade: -- BdB's VR would be negatively affected if its common equity Tier 1 ratio falls below 9% and/or its regulatory capital ratios to approach the minimum requirements, due to a combination of asset quality deterioration, weakening of profitability or higher than expected growth. Factor that could, individually or collectively, lead to positive rating action/upgrade: -- BdB's VR, IDRs and its issuance ratings would be affected by potential changes in the sovereign ratings of Brazil and/or in the sovereign's willingness to provide support to the bank, should the need arise. Fitch currently rates BdB as follows: -- Long-Term Foreign and Local Currency IDRs 'BB-'/Negative; -- Short-Term Foreign and Local Currency IDRs 'B'; -- National Long-Term rating 'AA(bra)'/Stable; -- National Short-Term rating 'F1+(bra)'; -- Support Rating '3'; -- Support Rating Floor 'BB-'; -- Senior unsecured notes due 2022, 2023, 2025 and 2026 at 'BB-'; -- VR 'bb-'. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS Bdb´s ratings are driven by Brazil´s Sovereign Support ESG CONSIDERATIONS Banco do Brasil S.A. has an ESG Relevance Score of '4' for Governance Structure (GGV). A GGV score of '3' is the standard score assigned to all banks rated by Fitch. Given BdB's ownership and a track record of the Brazilian federal government's ability to influence and interfere in the policies of the banks it controls, Fitch believes that an increase of government influence on BdB's management and strategy could impact negatively on creditors' rights. This has a negative impact on the bank's credit profile and is relevant to the rating in conjunction with other factors. Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. BANCO DO BRASIL: Moody's Assigns Ba2 Rating to New Sr. Unsec. Notes ------------------------------------------------------------------- Moody's Investors Service assigned a Ba2 long-term foreign currency senior debt rating to the proposed senior unsecured notes of Banco Do Brasil S.A. (BB), acting through its Grand Cayman branch. The proposed notes, which are part of BB's USD 20 billion senior unsecured EMTN Program, will be denominated and settled in USD, and due in January 2029. The outlook on the debt rating is stable. The following ratings were assigned: Issuer: Banco Do Brasil S.A. (Cayman) Senior Unsecured Regular Bond/Debenture (Foreign Currency), Assigned Ba2, stable RATINGS RATIONALE The Ba2 rating on the notes incorporates BB's steady origination of recurring earnings, better-than-peer capital metrics and ample access to a low-cost retail deposit funding base. In 2021, BB's profitability has benefited from consistent growth in loan origination, rising trading activities favored by the increase of the SELIC policy rate and an expansion in fee-based income, favored by a consistent recovery in business conditions. In September 2021, BB's ratio of net income to tangible assets was 1.05%, compared with 0.81% one year prior and 1.29% in Q3 2019. BB's predominant exposure to retail loans, mostly in the form of low-risk payroll and mortgage loans, as well as good performance in the portfolios of companies and agribusiness, has supported a consistent contribution from income from loans to the bank's bottom-line results. BB's problem loan ratio declined to 1.97% in September 2021, from 2.69% in the previous year, stemming from the rise in loan volume and still aided by loan deferrals. The bank's loan loss reserve buffer has remained high at 5.9% of gross loans and 299% of problem loans in September 2021, reflecting the bank's ongoing conservative approach toward credit risk given continued uncertainties about the pandemic dynamics. BB has also maintained good capitalization, with Moody's ratio of tangible common equity to risk-weighted assets (TCE/RWA) at 10.33% in September 2021, slightly up from 10.28% one year prior. The improvement in capitalization stemmed from earnings retention and lower shareholders' payout, compensating increased RWAs. BB's rating is at the same level as the Government of Brazil's Ba2 sovereign rating and the stable outlook on the bank's ratings is in line with the stable outlook on the sovereign rating. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING At the moment, there is limited upward pressure on BB's ratings owing to the stable outlook on its ratings. Because of the strong credit links between the sovereign and the bank, BB's ba2 BCA is constrained by Brazil's Ba2 rating. Negative pressure on the bank's BCA and its subordinated debt ratings could emerge if there is a substantial deterioration in its asset risk and profitability, leading to weaker capitalization. In addition, a downgrade of Brazil's sovereign rating could lower BB's BCA and ratings. ITA TRANSPORTES: Sao Paulo Calls for Bankruptcy Decree ------------------------------------------------------ Rio Times reports that the Sao Paulo State Prosecutor's Office has requested that the Court block the assets of Sidnei Piva and declare the bankruptcy of Viacao Itapemirim and ITA Transportes Aereos (also known as ITA or Itapemirim). The opinion, signed by the 5th Bankruptcy Prosecutor, Nilton Belli Filho, was submitted in the airline's judicial reorganization proceeding, according to Rio Times. The airline, part of the Itapemirim group, which became famous for its interstate bus service, was launched in May last year, when its bus service was threatened by bankruptcy, the report notes. ========= C H I L E ========= AGROSUPER SA: Moody's Assigns Ba1 First Time Rating, Outlook Stable ------------------------------------------------------------------- Moody's Investors Service has assigned a Ba1 corporate family rating to Agrosuper S.A. and a Ba1 rating to its proposed senior unsecured notes for up to $500 million. Net proceeds from the proposed issuance will be primarily used to refinance existing debt and for general corporate purposes. The outlook is stable. This is the first time that Moody's has assigned ratings to Agrosuper. The rating of the proposed notes assumes that the final transaction documents will not be materially different from draft legal documentation reviewed by Moody's to date and assume that these agreements are legally valid, binding, and enforceable. Assignments: Issuer: Agrosuper S.A. Corporate Family Rating, Assigned Ba1 Senior Unsecured Regular Bond/Debenture, Assigned Ba1 Outlook Actions: Issuer: Agrosuper S.A. Outlook, Assigned Stable RATINGS RATIONALE The Ba1 ratings assigned to Agrosuper mainly reflect its strong business profile as an integrated and diversified food producer, with solid brands and leading position in Chile's domestic market for pork, chicken, and turkey, in addition to its status as the second largest global producer of salmon. The ratings also reflect Agrosuper's good asset base and capital structure and Moody's expectation that the company will maintain a prudent capital structure with conservative financial policies to protect liquidity. Agrosuper's integrated business, leading market position, and revenue diversification in term of geographies and business segments explain the company's strong profitability with moderate volatility. The company's over 60-year track record and experienced management is also incorporated into the ratings. Agrosuper's ratings also reflect the geographic diversification of sales through exports (typically around two-thirds of revenues) to more than 60 countries, supported by its diversified portfolio of domestic and global clients, a solid local and international distribution network and 11 international offices around the world. The company's strong operating performance and good liquidity are also incorporated in the ratings. In addition, Moody's stable outlook and good fundamentals for the protein industry will support the company's operating performance in 2022. Agrosuper's ratings are mainly constrained by its small revenue and scale relative to global and regional peers, partially offset by the diversification provided by the company's export revenues. Agrosuper has a strong asset base in Chile, but concentration of assets in one country exposes the company to operating risk related to changing physical climate, environmental regulations, and potential trade barriers from foreign countries. Also constraining the ratings is the company's exposure to the cyclical nature of protein industry and overall volatility of protein and grain prices globally. In addition, the ratings consider the company's family-owned structure, balanced by good corporate governance practices and compliance with local capital markets regulations. The stable rating outlook reflects Moody's expectation that Agrosuper will be able to sustain good liquidity and adequate credit metrics for the Ba1 rating level over the next 12-18 months. Agrosuper has good liquidity. As of September 2021, Agrosuper's cash balance of $272 million was well above reported short-term debt of $184 million. Additionally, higher cash flow generation in the next 12-18 months as a result of the continued recovery of global economic activity will aid the company's liquidity. The proposed notes issuance for up to $500 million will allow the company to strengthen its liquidity by providing cash sources to refinance debt obligations. Pro-forma the proposed notes and subsequent liability management, total debt levels will not rise in 2022. As of September 2021, debt to Moody's-adjusted EBITDA ratio was at 1.8x and Moody's expects leverage metrics to remain at around 2.0x in 2021-22. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Agrosuper's ratings could be downgraded if its liquidity or operating performance deteriorates. Quantitatively, a downgrade could also occur if the company's leverage, as measured by Moody's-adjusted gross debt to EBITDA ratio, remains above 3.5x (1.8x as of the last twelve months ended in September 2021) and cash flow from operations/debt stays below 20% (39.4% as of the last twelve months ended in September 2021) on a sustained basis. An upgrade would require Agrosuper to show a resilient performance regardless of the underlying macroeconomic environment and consumption patterns in its key markets, maintaining a clear financial policy regarding capital allocation and dividend payments. Stability in margins of its aquaculture business, expanded by two key acquisitions in 2018-19, would also bring upward pressure into the rating. Founded in 1955 and headquartered in Rancagua, Chile, Agrosuper is a vertically integrated protein food producer with over 2,000 fresh, frozen and value-added products and around 68,400 clients. As of the last twelve months ended September 2021, total revenues amounted to $3.8 billion and assets totaled $4.8 billion. Agrosuper produces pork, chicken, turkey and related processed foods, and through its aquaculture business, it produces Pacific and Atlantic salmon, trout and tilapia. LATAM AIRLINES: Arnold & Porter Represents Unsecured Claimants -------------------------------------------------------------- In the Chapter 11 cases of LATAM Airlines Group S.A., et al., the law firm of Arnold & Porter Kaye Scholer LLP submitted a verified statement under Rule 2019 of the Federal Rules of Bankruptcy Procedure, to disclose that it is representing the Ad Hoc Group of Unsecured Claimants. The Ad Hoc Group is comprised of the following institutions or funds, accounts and entities managed by the following institutions: Avenue Capital Management II, L.P.; Corre Partners Management, LLC; CQS (US), LLC; Hain Capital Group, LLC; HSBC Bank Plc; Invictus Global Management LLC; J.H. Lane Partners, LP; Livello Capital Management LP; and Pentwater Capital Management LP. In or around November and December 2021, members of the Ad Hoc Group retained A&P to represent them in their capacities as holders of general unsecured claims against LATAM Airlines Group S.A. and certain of its affiliate entities; holders of LATAM 2024 Bonds; and holders of LATAM 2026 Bonds. Each member of the Ad Hoc Group separately requested that A&P represent it in connection with these chapter 11 cases as a holder of claims against the Debtors. As of December 29, 2021, members of the Ad Hoc Group and their disclosable economic interests are: Avenue Capital Management II, L.P. 11 West 42nd Street 9th Floor New York, NY 10036 * LATAM Parent: $68,797,074.00 * Other LATAM Entities: $26,712,400.55 * LATAM 2024 Bonds: $7,550,000.00 * LATAM 2026 Bonds: $500,000.00 Corre Partners Management, LLC 12 East 49th Street 40th Floor New York, NY 10017 * LATAM Parent: $22,817,000.00 * Other LATAM Entities: $21,091,000.00 CQS (US), LLC 152 West 57th Street 40th Floor New York, NY 10019 * LATAM Parent: $20,000,000.00 Hain Capital Group, LLC Meadows Office Complex 301 Route 17 North Rutherford, NJ 07070 * LATAM Parent: $23,780,346.31 * Other LATAM Entities: $1,710,232.76 HSBC Bank Plc 452 Fifth Avenue New York, NY 10018 * LATAM Parent: $12,098,217.00 * LATAM 2024 Bonds: $2,720,500.00 * LATAM 2026 Bonds: $7,383,000.00 Invictus Global Management LLC 310 Comal Street Building A, Suite 229 Austin, TX 78702 * LATAM Parent: $27,370,684.66 * Other LATAM Entities: $15,771,672.75 J.H. Lane Partners, LP 126 East 56th Street Suite 1620 New York, NY 10022 * LATAM Parent: $2,000,000.00 Livello Capital Management LP 1 World Trade Center 85th Floor New York, NY 10007 * LATAM Parent: $5,000,000.00 * Other LATAM Entities: $2,550,000.00 Pentwater Capital Management LP 614 Davis Street Evanston, IL 60201 * LATAM Parent: $126,240,000.00 * LATAM 2024 Bonds: $18,089,000.00 * LATAM 2026 Bonds: $53,771,000.00 * Common Stock: 95,000 shares Each member of the Ad Hoc Group separately requested that A&P represent it in connection with these chapter 11 cases in its capacity as a holder of general unsecured claims. A&P represents only the interests of the members of the Ad Hoc Group listed on Exhibit A hereto and does not represent or purport to represent any other entities or interests in connection with these chapter 11 cases. A&P does not represent the Ad Hoc Group as a "committee" and does not undertake to represent the interests of any creditor, party in interest, or entities other than the members of the Ad Hoc Group. In addition, each member of the Ad Hoc Group does not purport to act, represent or speak on behalf of any entity in connection with the Debtors' chapter 11 cases other than itself. Counsel to the Ad Hoc Group of Unsecured Claimants can be reached at: ARNOLD & PORTER KAYE SCHOLER LLP Michael D. Messersmith, Esq. Sarah Gryll, Esq. 70 West Madison Street, Suite 4200 Chicago, IL 60602 Telephone: (312) 583-2300 Facsimile: (312) 583-2360 E-mail: michael.messersmith@arnoldporter.com sarah.gryll@arnoldporter.com A copy of the Rule 2019 filing, downloaded from PacerMonitor.com, is available at https://bit.ly/3eAX5dQ About LATAM Airlines Group LATAM Airlines Group S.A. -- http://www.latam.com/-- is a pan-Latin American airline holding company involved in the transportation of passengers and cargo and operates as one unified business enterprise. It is the largest passenger airline in South America. Before the onset of the COVID-19 pandemic, LATAM offered passenger transport services to 145 different destinations in 26 countries, including domestic flights in Argentina, Brazil, Chile, Colombia, Ecuador and Peru, and international services within Latin America as well as to Europe, the United States, the Caribbean, Oceania, Asia and Africa. LATAM and its 28 affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 20-11254) on May 25, 2020. Affiliates in Chile, Peru, Colombia, Ecuador and the United States are part of the Chapter 11 filing. The Debtors disclosed $21,087,806,000 in total assets and $17,958,629,000 in total liabilities as of Dec. 31, 2019. The Hon. James L. Garrity, Jr., is the case judge. The Debtors tapped Cleary Gottlieb Steen & Hamilton LLP as bankruptcy counsel, FTI Consulting as restructuring advisor, Lee Brock Camargo Advogados as local Brazilian litigation counsel, and Togut, Segal & Segal LLP and Claro & Cia in Chile as special counsel. The Boston Consulting Group, Inc. and The Boston Consulting Group UK LLP are the Debtors' strategic advisors while PJT Partners LP serve as their investment banker. Prime Clerk, LLC is the claims agent. The official committee of unsecured creditors formed in the case tapped Dechert LLP as its bankruptcy counsel, Klestadt Winters Jureller Southard & Stevens, LLP as conflicts counsel, UBS Securities LLC as investment banker, and Conway MacKenzie, LLC as financial advisor. Ferro Castro Neves Daltro & Gomide Advogados is the committee's Brazilian counsel. The ad hoc group of LATAM bondholders tapped White & Case LLP as counsel. Glenn Agre Bergman & Fuentes, LLP, led by managing partner Andrew Glenn and partner Shai Schmidt, has been retained as counsel for the ad hoc committee of shareholders. =========== M E X I C O =========== MEXICO: Auto Sales Still Behind Pre-Pandemic Level -------------------------------------------------- Reuters reports that Mexico's annual auto sales rose by 6.8% in 2021, but were still far short of pre-pandemic levels as the car industry struggles to cope with shortfalls in semiconductors, official data showed. Mexico sold 1,014,680 light vehicles last year, according to figures from the national statistics agency (INEGI) after sales fell 27.9% to 950,063 in 2020, a nine-year low, according to Reuters. There were 1.3 million vehicles sold in 2019 before the pandemic while 2016 saw a record 1.6 million sales, adds the report. The report relates that Fausto Cuevas, head of the Mexican Automotive Industry Association (AMIA), recently forecast Mexico's auto production would only return to pre-pandemic levels in late 2023 or in 2024. Car production has been hobbled in recent months by a global semiconductor shortage, prompting automakers across North America to implement rolling shutdowns and curb output, the report discloses. The bottlenecks hit the industry in the second half of last year and during the October-December period, sales were the weakest they had been in the fourth quarter since 2010, the report says. Semiconductors are an indispensable component for the automakers, who need them for a wide variety of systems such as safety, navigation and entertainment, the report relays. COVID-19 outbreaks in Asian semiconductor manufacturing hubs have slowed, the report adds. ===================================== T R I N I D A D A N D T O B A G O ===================================== TRINIDAD & TOBAGO: Economic Recovery Begins in Country ------------------------------------------------------ Jamaica Observer reports that the Central Bank of Trinidad and Tobago (CBTT) said business operations are starting to recover following the gradual opening of the economy since the third quarter of 2021. In its Monetary Policy statement, the CBTT said that with respect to financing, business credit rose by 1.3 per cent year-on-year in October 2021, the first increase since August 2018, according to Jamaica Observer. Recent lending was particularly buoyant to the construction, finance and insurance sectors, alongside the 4.6 per cent rise in mortgage lending, the report notes. However, consumer lending contracted by 2.3 per cent, despite a slight decrease in interest rates, and the weighted average lending rate of commercial banks declined to 7.04 per cent in September 2021, 16 basis points lower than in March 2021, the CBTT said, the report relays. Nonetheless, it noted that financial system liquidity remained "ample", with banks' excess reserves at the central bank averaging TT$7.37 billion during the first half of December 2021, the report says. Amid the cautious optimism for economic recovery, the central bank warned that there could be further increases in food and core inflation in 2022, the report discloses. After a lag of several months, the bank said external price pressures are currently having a direct and broad-based bearing on domestic inflation. Headline inflation measured 3.9 per cent year-on-year in October 2021, compared with 2.4 per cent a month earlier, the report adds. The report discloses that the bank said food inflation surged to 7.6 per cent from 5.8 per cent in September last year and is likely to rise further given the situation in global grain markets. Core inflation, which excludes food items, almost doubled to 2.9 per cent from the previous month, the report relays. It added that stronger price pressures were also observed for building materials, with the Index of Building Material Prices rising by 12.6 per cent during the third quarter of 2021 when compared to the previous corresponding quarter, the report discloses. Ultimately, the bank's committee pointed out that the country's economic outlook entering 2022 was clouded by significant uncertainty over the path the novel coronavirus pandemic will take going forward, the report says. =============== X X X X X X X X =============== [*] BOND PRICING: For the Week Jan. 3 to Jan. 7, 2022 ----------------------------------------------------- Issuer Name Cpn Price Maturity Country Curr ----------- --- ----- -------- ------- --- Provincia de Rio Negro 7.8 70.4 12/7/2025 AR USD Noble Holding Internat 5.3 60.5 3/15/2042 KY USD Provincia de Cordoba 7.1 72.7 8/1/2027 AR USD Provincia de Buenos Ai 7.9 75.3 6/15/2027 AR USD Province of Santa Fe 6.9 74.7 11/1/2027 AR USD Argentine Republic Gov 6.9 75.2 1/11/2048 AR USD Argentina Bonar Bonds 5.8 75.2 4/18/2025 AR USD Noble Holding Internat 6.1 62.0 3/1/2041 KY USD Provincia de Cordoba 7.1 74.7 8/1/2027 AR USD YPF SA 16.5 67.3 5/9/2022 AR ARS Argentine Republic Gov 8.3 74.5 12/31/2033 AR USD AES Tiete Energia SA 6.8 1.2 4/15/2024 BR BRL Enel Americas SA 5.8 32.7 6/15/2022 CL CLP Cia Latinoamericana de 9.5 73.9 7/20/2023 AR USD KrisEnergy Ltd 4.0 40.4 6/9/2022 SG SGD Banco Macro SA 17.5 65.2 5/8/2022 AR ARS City of Cordoba Argent 7.9 73.1 9/29/2024 AR USD Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD Provincia del Chaco Ar 4.0 0.0 12/4/2026 AR USD YPF SA 16.5 67.3 5/9/2022 AR ARS YPF SA 16.5 67.3 5/9/2022 AR ARS Cia Energetica de Pern 6.2 1.1 1/15/2022 BR BRL Polarcus Ltd 5.6 71.8 7/1/2022 AE USD Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD Argentine Republic Gov 8.3 74.5 12/31/2033 AR USD Cia Latinoamericana de 9.5 74.3 7/20/2023 AR USD Noble Holding Internat 6.2 62.2 8/1/2040 KY USD Province of Santa Fe 6.9 74.7 11/1/2027 AR USD Provincia de Rio Negro 7.8 70.3 12/7/2025 AR USD Argentine Republic Gov 0.5 27.6 12/31/2038 AR JPY Fospar S/A 6.5 1.2 5/15/2026 BR BRL Argentina Bonar Bonds 7.6 74.4 4/18/2037 AR USD Avadel Finance Cayman 4.5 55.0 2/1/2023 US USD Sylph Ltd 2.4 65.1 9/25/2036 KY USD Banco Macro SA 17.5 65.2 5/8/2022 AR ARS Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD Esval SA 3.5 49.9 2/15/2026 CL CLP Metrogas SA/Chile 6.0 41.6 8/1/2024 CL CLP Province of Santa Fe 6.9 75.2 11/1/2027 AR USD Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD Argentine Republic Gov 7.1 75.7 6/28/2117 AR USD Provincia del Chaco Ar 9.4 74.8 8/18/2024 AR USD Provincia de Rio Negro 7.8 70.3 12/7/2025 AR USD Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD Provincia del Chubut A 4.5 2208 3/30/2021 AR USD Argentine Republic Gov 4.3 70.0 12/31/2033 AR JPY Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD Province of Santa Fe 6.9 75.2 11/1/2027 AR USD Argentine Republic Gov 6.3 74.1 11/9/2047 AR EUR ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. 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