/raid1/www/Hosts/bankrupt/TCRLA_Public/220119.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
Wednesday, January 19, 2022, Vol. 23, No. 8
Headlines
B R A Z I L
BRAZIL: Faces Another Year of High Food Inflation Due to Drought
C A Y M A N I S L A N D S
[*] KPMG Cayman Sells Restructuring Practices to Teneo
C H I L E
CORP GROUP: S&P Withdraws 'D' Issuer Credit Rating
M E X I C O
PETROLEOS MEXICANOS: Cuts Debt Burden by $3.2 Billion
T R I N I D A D A N D T O B A G O
CARIBBEAN AIRLINES: Suriname May Block Flight Resumption
X X X X X X X X
LATAM: Region Records Growth of 6.7%
- - - - -
===========
B R A Z I L
===========
BRAZIL: Faces Another Year of High Food Inflation Due to Drought
----------------------------------------------------------------
Nayara Figueiredo at Reuters report that Brazilian consumers could
see another round of stiff rises in food prices this year as
meatpackers grapple with higher costs due to a drought hurting the
crops used to feed livestock.
Meat industry group ABPA says there is no relief in sight before
Brazil starts harvesting its mid-year corn crop, according to
Reuters.
"We see the need for companies to continue to pass on costs,"
Ricardo Santin, the head of ABPA, said in an interview, the report
notes.
Given a weaker outlook for the domestic harvest, companies such as
BRF SA (BRFS3.SA) and JBS SA (JBSS3.SA) may have to import cereal,
as they did in 2021, he said, the report relays.
Private analysts are slashing their crop forecasts due to hot, dry
weather in Brazil's southern states, while state crop agency Conab
has been conservative, trimming its outlook but projecting a larger
soy and corn crop than last year, the report discloses.
Meat prices in Brazil rose 8.45% in 2021, according to government
statistics agency IBGE, contributing to overall food inflation of
7.94% and fuelling a 10.06% rise in the benchmark consumer price
index, the highest for a calendar year since 2015, the report
relays.
Marcos Zordan, an executive at meat processor Aurora, said a rise
of more than 10% in Brazilian corn prices at the start of the year
is startling buyers, the report relays. If that keeps up,
companies such as Aurora may resort to importing corn from
Argentina or Paraguay, where the La Nina weather pattern has also
hurt crop forecasts, the report discloses.
"I don't believe there will be a shortage, but it will be an
expensive product, no doubt," Zordan said, the report notes.
In the last two weeks, the price of domestic corn jumped to 94
reais per 60-kg bag, compared to 84 reais previously, on news of
the drought hammering southern Brazil, Zordan noted, the report
says.
Cesar Alves, analyst with Itaú BBA Agribusiness, said meatpackers
were initially expected to save on input costs as planting of
Brazil's summer crops fell within the ideal climate window in key
states, the report says.
Now, the first corn crop will be smaller than anticipated, by
around four million tonnes, according to government estimates, the
report discloses.
"Corn is on the rise again," Alves said. "At least in the first
quarter of the year, it will be much tighter for the meat
industry," the report adds.
About Brazil
Brazil is the fifth largest country in the world and third largest
in the Americas. Jair Bolsonaro is the current president, having
been sworn in on Jan. 1, 2019.
Standard & Poor's credit rating for Brazil stands at BB- with
stable outlook (April 2020). S&P's 'BB-/B' long-and short-term
foreign and local currency sovereign credit ratings for Brazil were
affirmed in December 2021 with stable outlook. Fitch Ratings'
credit rating for Brazil stands at 'BB-' with a negative outlook
(November 2020). Fitch's 'BB-' Long-Term Foreign and Local
Currency Issuer Default Ratings (IDRs) has been affirmed in
December 2021. Moody's credit rating for Brazil was last set at
Ba2 with stable outlook (April 2018). DBRS's credit rating for
Brazil is BB (low) with stable outlook (March 2018).
===========================
C A Y M A N I S L A N D S
===========================
[*] KPMG Cayman Sells Restructuring Practices to Teneo
------------------------------------------------------
KPMG in the Cayman Islands and British Virgin Islands has announced
that it has completed the sale to Teneo of its Restructuring
practices in the Cayman Islands and British Virgin Islands.
The decision to sell the businesses was driven by significant
changes in the Insolvency and Restructuring markets in the Cayman
Islands and British Virgin Islands over recent years. The
increasing number of stakeholders in distressed situations has made
the navigation of conflicts of interest ever more complex for Big 4
firms like KPMG. As it is expected that this will only intensify in
the future, and as such developments limit the ability to grow
these businesses in the Cayman Islands and British Virgin Islands,
the decision to commence a sale process was taken earlier last
year.
"This is the best possible outcome for both KPMG and the
restructuring businesses in the Cayman Islands and British Virgin
Islands. The sale of these businesses enables us to accelerate our
program of investment in audit, tax and other advisory services,
including KPMG IMPACT. At the same time, it will allow the team at
Teneo to serve a broader client base and explore new market
opportunities," said Andy Stepaniuk, Managing Partner at
KPMG in the Cayman Islands.
The sale sees a well-established team of over 25 professionals
transfer to Teneo. In addition, the Restructuring practices'
related services, including e-Discovery, have transferred to
Teneo.
"Throughout this process, our key priority has been to ensure the
stability and future success of the Restructuring businesses and
its talented people. This deal offers an exciting opportunity for
Teneo and we wish them every success in the future," Anthony Cowell
said, Head of Markets, KPMG in the Cayman Islands.
The sale is specific to KPMG in the Cayman Islands and British
Virgin Islands and does not affect the KPMG Insolvency and
Restructuring businesses in other jurisdictions.
About KPMG in the Cayman Islands
KPMG in the British Virgin Islands
KPMG in the Cayman Islands, a Cayman Islands partnership, is one of
the leading professional services firms in Grand Cayman, with 24
partners and over 350 employees from more than 30 countries
delivering audit, tax and advisory services to clients worldwide.
KPMG (BVI) Limited, a British Virgin Islands company limited by
shares has an office in the British Virgin Islands, which is a
licensed practice to KPMG in the Cayman Islands with approximately
20 employees delivering audit, tax and advisory services to clients
worldwide.
About KPMG International
KPMG is a global organization of independent professional services
firms providing Audit, Tax and Advisory services. KPMG is the brand
under which the member firms of KPMG International Limited ("KPMG
International") operate and provide professional services. "KPMG"
is used to refer to individual member firms within the KPMG
organization or to one or more member firms collectively.
KPMG firms operate in 145 countries and territories with more than
236,000 partners and employees working in member firms around the
world. Each KPMG firm is a legally distinct and separate entity and
describes itself as such. Each KPMG member firm is responsible for
its own obligations and liabilities.
KPMG International Limited is a private English company limited by
guarantee. KPMG International Limited and its related entities do
not provide services to clients.
=========
C H I L E
=========
CORP GROUP: S&P Withdraws 'D' Issuer Credit Rating
--------------------------------------------------
S&P Global Ratings withdrew its 'D' issuer credit ratings on
Chilean non-operating holding company Corp Group Banking S.A. The
withdrawal follows Corp Group Banking's lack of financial
statements that comply with S&P's information quality standards,
which it requires to maintain S&P's ratings on the entity. The
ratings on Corp Group Banking have been in default since October
2020. In June 2021, the entity filed a chapter 11 case in the U.S.
Bankruptcy Court for the District of Delaware.
The withdrawal of the ratings was preceded in accordance with S&P's
policies.
===========
M E X I C O
===========
PETROLEOS MEXICANOS: Cuts Debt Burden by $3.2 Billion
-----------------------------------------------------
globalinsolvency.com, citing Bloomberg News, reports that Mexico's
government said it had slashed Petroleos Mexicanos' debt burden by
$3.2 billion through a refinancing operation.
The government swapped debt that was expiring soon for a new bond
with a maturity of 10 years, while also refinancing some medium
maturity debt that was cheap, according to a statement from the
Finance Ministry, globalinsolvency.com relays.
The operation will reduce the "financial pressure" on Pemex by
$10.5 billion between 2024 and 2030, the ministry said, adding that
the refinancing wouldn't reduce the fiscal budget, the report
notes.
The government contributed $3.5 billion to the operation, which
helped narrow the spread to sovereign bonds by 50 basis points,
reducing Pemex's annual financial costs by $180 million, the report
relays. Mexico's President Andres Manuel Lopez Obrador announced
a $3.5 billion capital injection into Pemex in early December,
saying it would be made through a series of bond market
transactions, the report discloses.
That came on top of initiatives last year to cut taxes and overhaul
management at the company, the report adds.
About Petroleos Mexicanos
Petroleos Mexicanos is engaged in the exploration, refining,
transportation, storage, distribution, and sale of crude oil,
natural gas, and derivatives of petroleum and natural gas in
Mexico. The Company is a major supplier of crude oil to the United
States.
As reported in the Troubled Company Reporter-Latin America, Moody's
de
Mexico, S.A. de C.V. in July 2021 downgraded Petroleos Mexicanos'
(PEMEX) senior unsecured ratings on the company's existing notes,
as well as the ratings based on PEMEX's guarantee, to A3.mx/Ba3
from A2.mx/Ba2. Moody's also affirmed PEMEX's MX-2 short term
national scale. These rating actions follow Moody's Investors
Service (MIS) rating action of downgrading PEMEX's corporate family
rating to Ba3 from Ba2. MIS also lowered PEMEX's Baseline Credit
Assessment (BCA), which reflects its standalone credit strength, to
caa3 from caa2.
=====================================
T R I N I D A D A N D T O B A G O
=====================================
CARIBBEAN AIRLINES: Suriname May Block Flight Resumption
--------------------------------------------------------
Trinidad Express reports that Suriname, still peeved at the
treatment meted out to its nationals by majority State-owned
Caribbean Airlines (CAL), is reported to have denied the airline's
request to resume flights to the Dutch-speaking Caribbean Community
(Caricom) country.
"As long as Caribbean Airlines does not fix its issues with its
passengers and the travel agencies, it will not receive permission
from me to resume operation. Suriname is a country where rules
apply and order prevails," said Albert Jubithana, the Minister of
Transport, Communication and Tourism, according to Trinidad
Express.
CAL has been announcing the resumption of flights to several of its
destinations since last year, has so far not yet responded to the
allegation by Suriname, the report notes.
Suriname said that the airline, unlike others, did not look after
it passengers who were stranded here when the airspace was closed
to regular commercial flights in March 2020, as part of the
measures to curb the spread of the coronavirus (Covid-19) pandemic,
the report relays.
Media reports here said that since Suriname re-opened its airspace
and regular flights have resumed, several international airlines
have resumed their operations, but that Caribbean Airlines has not
yet received permission to resume flying the route, the report
discloses.
"She never came back to pick up her stranded passengers. She never
spoke again, not even a letter. SLM and Fly All Ways made sure that
the stranded people could leave," Jubithana, was quoted as saying
by the online publication, dwtonline.com, the report says.
He said that CAL is indicating that it will resume flights between
the Zanderij and Piarco International airports on January 18, the
report discloses.
"The company is promoting without Suriname's permission to resume
flights," said Jubithana, noting that the Brazilian airline, Gol
had also sought to emulate the Trinidad-based carrier, after also
leaving its passengers in the cold, the report relates.
The Minister said Gol "wanted to return just like that, without
solving the problems it had created" and that the authorities have
told the Brazilian company that as long as there are no proper
agreements between it and the travel agents, there will be no
return to Suriname, the report says.
Jubithana said he expects the situation to be resolved soon as the
airline has started talks with the Association of Surinamese Travel
Agents (ASRA), the report notes.
He said the Panamanian airline, Copa Airlines, has resumed flights
to the Dutch-speaking country after the Association of Surinamese
Travel Agents had informed the government that it has no objection
to the resumption of the flights, the report discloses.
Contacted for comment on the story by the Caribbean Media
Corporation, CAL spokeswoman, Dionne Ligoure, said: "Caribbean
Airlines has filed all of the necessary paperwork with the
authorities in Suriname and the company is awaiting feedback on
same," the report relays.
She confirmed that she had seen the story from the regional wire
service, the report adds.
===============
X X X X X X X X
===============
LATAM: Region Records Growth of 6.7%
------------------------------------
RJR News reports that the World Bank is reporting that growth in
Latin America and the Caribbean was an estimated 6.7 percent in
2021.
The agency's Global Economic Prospects report says the growth was
driven by favorable external conditions and pandemic-related
developments, according to RJR News.
Strong demand for exports to the United States and China, high
commodity prices, and continued high remittances to Central
American and Caribbean countries also supported growth, the report
notes.
Meanwhile, the World Bank report has flagged inflation as a concern
for Latin America and the Caribbean, the report relays.
The cost of goods and services across the region has risen,
exceeding central banks targets in most cases, the report
discloses.
The World Bank says inflation in the region was driven by an uptick
in demand associated with economic reopening, rising food and
energy prices, weather related shocks and, in some countries,
currency depreciation and large increases in money supply, the
report adds.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.
Copyright 2022. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.
Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.
The TCR Latin America subscription rate is US$775 per half-year,
delivered via e-mail. Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each. For subscription information,
contact Peter A. Chapman at 215-945-7000.
.
* * * End of Transmission * * *