/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/220331.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 Thursday, March 31, 2022, Vol. 23, No. 59 Headlines A R G E N T I N A ARGENTINA: Gets US$9.7BB After IMF Board Signs Off on Debt Deal ARGENTINA: Unemployment Cut to 7% in 4th Qtr of 2021, INDEC Says STONEWAY CAPITAL: Exclusivity Period Extended to May 16 B R A Z I L BANCO DO ESTADO: Moody's Affirms 'Ba3' Deposit Ratings C H I L E ALPHA LATAM: Wins Approval of Third Amended Plan C O L O M B I A COLOMBIA TELECOMUNICACIONES: S&P Affirms 'BB' ICR, Outlook Stable D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Haitians at Border Say Customs Tax is Too High DOMINICAN REPUBLIC: IDB OKs $140M Loan for Road Rehabilitation J A M A I C A JAMAICA: Gov't to Spend $15 Million to Resume Agricultural Shows M E X I C O SITIOS LATINOAMERICA: S&P Assigns Prelim 'BB+' ICR, Outlook Stable P E R U HUNT OIL: Moody's Upgrades CFR to Ba1, Outlook Remains Stable T R I N I D A D A N D T O B A G O CARIBBEAN AIRLINES: Has No Plans to Hike Fares - - - - - ================= A R G E N T I N A ================= ARGENTINA: Gets US$9.7BB After IMF Board Signs Off on Debt Deal --------------------------------------------------------------- Buenos Aires Times Online reports that the International Monetary Fund's Executive Board approved its US$44.5-billion aid package for Argentina, refinancing the country's multi-billion-dollar debt and all but removing its risk of default. After the deal's approval, the multilateral lender said it had made US$9.656 billion in funds available immediately to the government to boost the Central Bank's reserves and meet upcoming debt payments, according to Buenos Aires Times Online. The new 30-month Extended Fund Facility (EFF) program should enable Argentina to "strengthen debt sustainability, tackle high inflation, boost reserves, address the country's social and infrastructure gaps and promote inclusive growth," the IMF said in its statement, the report notes. Reacting to the news, President Alberto Fernández said the deal's approval would allow the country to "take the rope off our necks and start walking," the report relays. He also said the program would "remove uncertainty," the report discloses. The new program effectively provides Argentina with the funds to pay off its outstanding US$44-billion debt that dates back to the record US$57-billion loan granted to the Mauricio Macri administration in 2018 - the largest deal in the Fund's history, the report relays. IMF Managing Director Kristalina Georgieva said Argentina faces "exceptional economic and social challenges" despite the economic recovery, including "depressed per capita income, elevated poverty levels, persistent high inflation, a heavy debt burden, and low external buffers," the report discloses. "Against this backdrop, the authorities' economic program sets pragmatic and realistic objectives, along with credible policies to strengthen macroeconomic stability and begin to address Argentina's deep-seated challenges," she said in the statement obtained by the news agency. However, the Bulgarian economist declared that "risks to the program are exceptionally high and spillovers from the war in Ukraine are already materializing," the report relays. She concluded: "In this context, early program recalibration, including the identification and adoption of appropriate measures, as needed, will be critical to achieve the program's objectives," the report relays. Guzman on Deal The approval of the agreement is a "step forward" in the process of "macroeconomic stabilization" and "economic recovery," Economy Minister Martín Guzman told AFP as he reacted to the deal, the report discloses. Speaking from Paris, the minister said that the deal's approval would allow Argentina to continue its "strong economic recovery" that is "exceeding all forecasts, the report relays. "Multilateral agencies projected that it would take four to five years to recover what was lost in the worst year of the pandemic [2020] and it happened in just one year," he argued, the report notes. "Today the country has one million more jobs than in 2019. The unemployment rate had been as high as 13.1 percent in 2020 and is now at seven percent," he added, saying that investment had grown 32.9 percent last year, the report notes. Quizzed about the potential impact of Russia's invasion of Ukraine, Guzman admitted that the conflict is putting "strong pressures on commodity prices and generating a critical situation in the energy field at a global level," the report relays. "For Argentina, the effect on the balance of payments at current prices is relatively neutral. There is a negative impact from the increase in gas prices, but there is a positive impact from the increase in the prices of commodities and minerals exported," he said. Addressing inflation, the minister said that the first step is to improve the Central Bank's foreign reserves and "achieve greater exchange rate stability," before "improving the financing profile of public policy" and deploying "price and income policies" in order to recover purchasing power. He confirmed that price agreements and controls would also be part of the package, the report adds. About Argentina Argentina is a country located mostly in the southern half of South America. Its 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. Argentina obtained on March 25, 2022, approval from the Executive Board of the International Monetary Fund (IMF) of a 30-month extended arrangement under the Extended Fund Facility (EFF) amounting to SDR 31.914 billion (equivalent to US$44 billion). Under the new terms, Argentina secured a much-needed grace period that postpones repayment of its debt. However, IMF warned of exceptionally high risks to the program. ARGENTINA: Unemployment Cut to 7% in 4th Qtr of 2021, INDEC Says ---------------------------------------------------------------- Buenos Aires Times reports that Argentina's unemployment rate dropped to seven percent in the fourth quarter of 2021, its lowest level in six years, the INDEC national statistics institute said. In addition, the employment rate reached an all-time high of 43.6% of the population last December, the bureau added, according to Buenos Aires Times. However, the underemployment rate - meaning those who do not have enough paid work or have jobs that do not make full use of their skills - reached 12.1% in the fourth quarter, according to official data, practically unchanged from the previous quarter yet three points below the same quarter of the previous year (15.1%), the report notes. Unemployment consistently dropped over the calendar year, according to INDEC, the report discloses. The rate stood at 8.2% in the third quarter of last year, 9.6% in the second and 10.2% in the first, the report relays. In the fourth quarter of 2020 it had reached 11%, with under-occupation at 15.1%, the report notes. Commenting on INDEC's data, the Economy Ministry highlighted that 2021 "closed with a record employment rate and with unemployment levels below those recorded since 2016," the report relays. The highest unemployment rate was registered in Greater Cordoba (10.1%), while the lowest was in the Viedma-Carmen de Patagones district (just 1.6%), the report says. In Greater Buenos Aires, joblessness reached 7.4%, dropping to 4.65 in Buenos Aires City, the report notes. Among the districts with the highest unemployment rates were Mar del Plata (8.4%), Gran Resistencia (8.4%) and Bahia Blanca (8.2%), the report discloses. According to official data, unemployed people (as a proportion of the economically active population) numbered 947,000, while the underemployed population totaled 1,647,000, the report relays. This means that more than two million people have employment problems in Argentina, rising to more than three million if the figures are extrapolated to the total population, the report notes. Argentina's economy has begun to emerge from the recession into which it fell in 2018 and closed out 2021 with gross domestic product improving 10.3% on the previous year - one that was dominated by the coronavirus pandemic, the report adds. About Argentina Argentina is a country located mostly in the southern half of South America. Its 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. Argentina obtained on March 25, 2022, approval from the Executive Board of the International Monetary Fund (IMF) of a 30-month extended arrangement under the Extended Fund Facility (EFF) amounting to SDR 31.914 billion (equivalent to US$44 billion). Under the new terms, Argentina secured a much-needed grace period that postpones repayment of its debt. However, IMF warned of exceptionally high risks to the program. STONEWAY CAPITAL: Exclusivity Period Extended to May 16 ------------------------------------------------------- Judge James Garrity, Jr. of the U.S. Bankruptcy Court for the Southern District of New York extended to May 16 the period during which only Stoneway Capital Ltd. and its affiliates can file a Chapter 11 plan. The companies can solicit acceptances for the plan until July 15. The companies filed their proposed joint Chapter 11 plan early last month under which senior noteholders would share a pool of $462.5 million of new notes. Under the plan, senior noteholders may recover as little as 16% while term loan holders will get as little as 4.5%, according to the disclosure statement detailing the plan. About Stoneway Capital Corp. Stoneway Capital Corporation is a limited corporation incorporated in New Brunswick, Canada, formed for the purpose of owning and operating, through its Argentine subsidiaries, power generation projects that will provide electricity to the wholesale electricity markets in Argentina. The Argentine subsidiaries operate four power-generating plants in Argentina that provide electricity to the wholesale electricity market in Argentina. Stoneway is 100% owned by GRM Energy Investment Limited. On Oct. 8, 2020, Stoneway commenced proceedings under the Canada Business Corporations Act (the "CBCA"). The Debtors were well on the way toward closing the consensual restructuring when on Dec. 4, 2020, the Argentine Supreme Court issued a decision in a noise discharge dispute involving one of the Generation Facilities located in Pilar, Argentina. The Argentine Supreme Court decision created significant uncertainty as it overturned a ruling by the federal appeals court in San Martin, Buenos Aires. As a result of the looming expiration of a informal standstill arrangement, the Debtors commenced chapter 11 cases in the U.S. to put the automatic stay in place, maintain the status quo pending resolution of the various issues in Argentina, and ensure that neither the Indenture Trustee nor the Argentine Trustee takes any action that could be detrimental or value destructive to the Company. Stoneway Capital Ltd. and five related entities, including Stoneway Capital Corp., sought Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 21-10646) on April 7, 2021. Stoneway estimated liabilities of $1 billion to $10 billion and assets of $500 million to $1 billion. Judge James L. Garrity, Jr. oversees the cases. The Debtors tapped Shearman & Sterling LLP as bankruptcy counsel, Bennett Jones LLP as Canadian counsel, Lazard Freres & Co. LLC as investment banker, and RSM Canada LLP as tax services provider. Prime Clerk, LLC is the claims agent and administrative advisor. On Feb. 10, 2022, the Debtors filed their proposed joint Chapter 11 plan and disclosure statement with the court. =========== B R A Z I L =========== BANCO DO ESTADO: Moody's Affirms 'Ba3' Deposit Ratings ------------------------------------------------------ Moody's Investors Service has affirmed all ratings and assessments assigned to Banco do Estado do Rio Grande Do Sul S.A. (Banrisul), including its long and short-term global scale local and foreign-currency deposit ratings of Ba3 and Not Prime, its foreign currency subordinate debt rating of B2 (hyb) as well as its baseline credit assessment (BCA) of ba3. Moody's also affirmed Banrisul's long and short-term local and foreign currency counterparty risk ratings of Ba2 and Not Prime, respectively, and the long and short-term counterparty risk assessments of Ba2(cr) and Not Prime(cr). The outlook on the bank's ratings was changed to stable, from negative. RATINGS RATIONALE The affirmation of Banrisul's ba3 BCA and Ba3 deposit ratings reflects the bank's entrenched operation in the state of Rio Grande do Sul, which, however, restricts it footprint, it also ensures the bank a steady and relevant 38.9% of time deposit market share and 18.3% its local market's loans. Banrisul has recently reinforced its focus on secured lending, which will help to mitigate future asset quality volatility. The main negative crating drivers are the bank's below-peers profitability and modest capitalization, both offset by a funding structure mostly comprised of low-cost core deposits and ample liquidity. In 2021, the bank's problem loan ratio dropped to 2.4% , from 2.8% one year prior and 2.7% in year-end 2019, helped by increased origination of secured payroll loans that accounted for 44.9% of total loans in December 2021. Banrisul also maintained loan loss reserves at comfortable level, 278% of problem loans in December 2021, providing a buffer against future charge offs and rising asset risk pressures. However, in face of negative pressure stemming from the challenging macroeconomic environment in Brazil in 2022, Moody's expect problem loans to increase, normalizing to pre-pandemic levels of 3% to 4%, after reaching recent lows between 2020 and 2021. Over the past two years, profitability remained below the bank's historic average, with net income to tangible assets ratio staying at 0.9% at the end of 2021, due to the slowdown in loan origination in the period. As the bank's lending activity resumes in 2022, the bank's profitability will improve gradually supported by higher interest rates, which will have a positive effect on the bank's ample position of liquid assets, majorly invested in government securities. Conversely, credit income will remain challenged by more competitive lending rates in the payroll loan segment that will likely continue to pressure the bank's lending margin. Steady growth of its fee-based businesses, particularly from insurance and credit card payment divisions, will help to compensate these pressure. By Moody's preferred ratio of tangible common equity (TCE) to risk-weighted assets (RWA), capitalization is the weaker rating driver for Banrisul, with capital ratio at 8.2% as of December 2021, falling 40 basis points in 12 months, primarily affected by an increase of 21% in its government bonds position in the period. The ratio remained 200 basis points below the 10% level reported early in 2016, after the payment of the rights to manage the payroll the state of Rio Grande do Sul to the government. Despite that, Moody's expect capitalization to improve steadily in the next three to four quarters by internal capital generation . In changing to stable the ratings' outlook, Moody's acknowledges the bank's steady performance in 2021, namely in terms of the bank's capitalization and profitability. In the next outlook horizon, Moody's expect earnings and capital will no longer be under pressure by a possible bid for a payroll service with the state of Rio Grande do Sul as negotiations came to an end on March 17th. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upward pressure on Banrisul's ba3 BCA could come from a sustainable and consistent increase of profitability, which will reinforce its capital position measured by tangible common equity (TCE) to risk-weighted assets (RWA), while asset quality metrics remain adequate and aligned to a secured-focused lending operation. Conversely, the bank's ratings could be downgraded in case of a sharp deterioration on asset quality, and consequently on profitability and capital. Further actions by its state owner could lead to weakening the bank`s fundamentals, and particularly its capital position, evidencing governance issues, which could, thus, lead to a downgrade in the bank`s BCA and ratings. The following ratings and assessments of Banco do Estado do Rio Grande do Sul S.A. were affirmed: Long-term global local currency deposit rating of Ba3, stable outlook, from negative Short-term global local currency deposit rating of Not Prime Long-term foreign currency deposit rating of Ba3, stable outlook, from negative Short-term foreign currency deposit rating of Not Prime Baseline credit assessment of ba3 Adjusted baseline credit assessment of ba3 Long-term counterparty risk assessment of Ba2(cr) Short-term counterparty risk assessment of Not Prime(cr) Long-term global local currency counterparty risk rating of Ba2 Short-term global local currency counterparty risk rating of Not Prime Long-term global foreign currency counterparty risk rating of Ba2 Short-term global foreign currency counterparty risk rating of Not Prime Tier 2 contractual non viability subordinate foreign currency debt rating of B2(hyb) Outlook Actions: Outlook, changed to stable, from negative METHODOLOGY USED The principal methodology used in these ratings was Banks Methodology published in July 2021. ========= C H I L E ========= ALPHA LATAM: Wins Approval of Third Amended Plan ------------------------------------------------ Judge J. Kate Stickles has entered an order approving and confirming the Third Amended Chapter 11 Plan of Alpha Latam Management, LLC, et al. All objections to confirmation or responses to final approval of the Plan have been withdrawn, waived, resolved by the Debtors, or overruled by the Court. Article III of the Plan specifies that Claims in Class 1 (Priority Claims), Class 2 (Secured Claims), and Class 3 (Foreign Convenience Claims) are Unimpaired pursuant to Sections 1124 and of the Bankruptcy Code because the Plan does not alter the legal, equitable, or contractual rights of the holders of Claims in such Classes and, therefore, such holders are conclusively presumed to accept the Plan. Equity Interests in Class 7 (ALM Equity) (together with Classes 1, 2, 3, the "Unimpaired Classes") shall be Reinstated and are in a Class of Unimpaired Equity Interest whose holders are conclusively presumed to have accepted the Plan under section 1126(f) of the Bankruptcy Code. The Plan specifies that Claims and Equity Interests in each of Class 4d (Credit Suisse Claims), Class 5 (Intercompany Claims), and Class 6 (Equity Interests) (collectively, "Impaired Non-Voting Classes") are entitled to no recovery under the Plan, and are therefore deemed to have rejected the Plan under section 1126(g) of the Bankruptcy Code. As also set forth in Article III of the Plan, the only Impaired Classes entitled to vote on the Plan pursuant to the Solicitation Procedures are: Class 4a (Other Unsecured Claims); Class 4b (Notes Claims); and Class 4c (Funded Debt Claims) (together, the "Voting Classes" and each holder of a Claim in the Voting Classes, a "Voting Member"). As evidenced by the Voting Report, Class 4a abstained from voting, Class 4b voted to accept the Plan, and Class 4c voted to reject the Plan. Because the Plan has not been accepted by Class 4c and the Impaired Non-Voting Classes that are deemed to have rejected the Plan, the Debtors seek confirmation under Section 1129(b), rather than Section 1129(a)(8), of the Bankruptcy Code. Although Section 1129(a)(8) has not been satisfied, the Plan is confirmable pursuant to section 1129(b)(1) of the Bankruptcy Code because: (a) at least one Impaired Class voted to accept the Plan; and (b) the Plan does not discriminate unfairly and is fair and equitable. As a result, the Plan satisfies the requirements of section 1129(b) of the Bankruptcy Code. For the avoidance of doubt, the settlements with the Ad Hoc Group and the Notes Indenture Trustee with respect to the Ad Hoc Group Fees and Expenses and Notes Indenture Trustee Fees and Expenses are integral components to the concessions embodied by the Plan. As evidenced by the Castellano Declaration, (i) the Notes constitute more than 92% of all Claims in Classes 4a, 4b, and 4c and the members of the Ad Hoc Group hold approximately 70% in principal amount of the outstanding Notes, and (ii) the Ad Hoc Group and Notes Indenture Trustee have made substantial contributions to these Chapter 11 Cases, including by engaging in hard fought negotiations on the Plan as a result of which the distribution and overall treatment afforded to the Liquidating Trust Beneficiaries (who include Class 4a, Class 4b, and Class 4c) under the Plan has been significantly enhanced. The additional value brought into the Estates for the pro rata benefit of the Liquidating Trust Beneficiaries, included: (a) A partial Cash repayment of the Intercompany Secured Facility between the Debtors and their Mexican Affiliates, resulting in an increase in the Cash to be transferred to the Liquidating Trust on the Effective Date for the benefit of the Liquidating Trust Beneficiaries; (b) The reduction of the Applicable Reserves, the Professional Fee Escrow, and the Wind-Down Amount, which also increased the amount of Cash included in the Liquidating Trust Assets for the benefit of the Liquidating Trust Beneficiaries; (c) The Debtors' agreement to a mutually acceptable procedure to review the propriety of more than $6 million in VAT payments made, or to be made, on Professional Fees; and (d) Negotiation of the carefully crafted releases in the Plan, which resulted in the preservation of the Preserved Estate Claims to be vested in the Liquidating Trust for the benefit of the Liquidating Trust Beneficiaries; and (e) In addition, several members of the Ad Hoc Group provided the DIP Facility, which helped fund the Debtors' operations during these cases. Pursuant to Article III.A and III.B of the Plan: (a) The Allowed Priority Claims (Class 1) are Unimpaired, are deemed to accept the Plan, and, on the Plan Distribution Date, shall receive payment in full and in Cash; (b) The Allowed Secured Claims (Class 2) are Unimpaired, are deemed to accept the Plan, and, on the Plan Distribution Date, shall receive either (i) payment in full and in Cash or (ii) its collateral in full satisfaction thereof; (c) The Allowed Foreign Convenience Claims (Class 3) are Unimpaired, are deemed to accept the Plan, and shall receive, except to the extent that a holder of a Foreign Convenience Claim agrees to a less favorable treatment, in full satisfaction thereof, Cash equal to 100% of the amount of such Allowed Foreign Convenience Claim on or as soon as practicable after the latest of (x) the Effective Date, (y) the date that such Foreign Convenience Claim becomes Allowed, and (z) a date agreed to by the Debtors and the holder of such Foreign Convenience Claim; (d) The Allowed Other Unsecured Claims (Class 4a) are Impaired, were entitled to vote on the Plan, and, on the Plan Distribution Date, shall receive, in full satisfaction thereof, its Pro Rata Share of the beneficial interest in the Liquidating Trust, entitling such holder to receive proceeds on account of such interests; (e) The Allowed Notes Claims (Class 4b) are Impaired, were entitled to vote on the Plan, and shall, subject to the Notes Indenture Trustee's Charging Lien and the funding of the Notes Indenture Trustee Reserve, receive on the Plan Distribution Date, in full satisfaction of its Allowed Notes Claim, its Pro Rata Share of the beneficial interest in the Liquidating Trust, entitling such holder to receive proceeds on account of such interests; (f) The Allowed Funded Debt Claims (Class 4c) against the applicable Debtors are Impaired, were entitled to vote on the Plan, and, shall receive, on the Plan Distribution Date, in full satisfaction of its Allowed Funded Debt Claim, its Pro Rata Share of the beneficial interest in the Liquidating Trust, entitling such holder to receive proceeds on account of such interests; (g) The Credit Suisse Claims (Class 4d) shall receive no distribution under the Plan on account of such Claim and are deemed to reject the Plan; (h) The Intercompany Claims among Debtors (Class 5) shall be cancelled on the Effective Date, are not entitled to any Plan Distribution, and are deemed to reject the Plan; (i) The Equity Interests in the Debtors (other than ALM) (Class 6) shall be Reinstated for administrative purposes only on the Effective Date to facilitate and implement such Debtors' wind-down and dissolution in accordance with applicable local law, shall receive no distribution under the Plan, and are deemed to reject the Plan; and (j) The Equity Interests in ALM (Class 7) are Unimpaired, are deemed to accept the plan, and shall be Reinstated on the Effective Date. Third Amended Chapter 11 Plan Alpha Latam Management, LLC, et al., submitted a Third Amended Chapter 11 Plan. Under the confirmed Plan, holders of Class 4a Other Unsecured Claims will receive on the Plan Distribution Date, in full satisfaction of its Allowed Other Unsecured Claim, its Pro Rata Share of the beneficial interest in the Liquidating Trust, entitling such holder to receive proceeds on account of such interests. Class 4a is impaired. The Debtors or Liquidating Trustee, as applicable, shall provide Plan Distributions from cash and vesting of assets (other than the Liquidating Trust Assets) and contribution of liquidating trust assets. On and after the Effective Date, in accordance with the Wind-Down Budget, the Debtors (except for ALM) shall (1) continue in existence solely for purposes of (a) winding down the Debtors' businesses and affairs as expeditiously as reasonably possible pursuant to applicable local law, (b) paying the Professional Fee Claims, (c) filing appropriate tax returns, (d) complying with their continuing obligations under the Sale Documents (if applicable), (e) administering the Refund Escrow; (f) administering the Allowed AFPST Claims; (g) disputing the Disputed AFPST Claims; and (h) administering the Plan in an efficacious manner; and (2) liquidate or dissolve, as applicable, pursuant to applicable local law. The Debtors shall have the power and authority to take any actions necessary to wind-down the affairs of the Debtors; provided, however, that, without Bankruptcy Court approval, the Debtors shall not incur or make any expenditure or disbursement which is not contemplated by or which would be in excess of the amounts included in the Wind-Down Budget or which would cause the aggregate of such expenditures and disbursements to exceed the Wind-Down Amount. On the Effective Date, the Debtors shall retain the Sale Consideration or, if applicable, Cash in an amount equal to the Wind-Down Amount (inclusive of the Professional Fee Escrow) in accordance with the terms of the WindDown Budget to facilitate the liquidation and/or dissolution of the respective Debtors under local law. Any remaining amounts of Cash in the Wind-Down Reserve following all required distributions therefrom in accordance with the terms of the Wind-Down Budget shall promptly be transferred to the Liquidating Trust Distribution Account in accordance with the terms of the Plan and the Wind-Down Budget. The Debtors shall make all distributions on account of the Allowed Professional Fee Claims, Allowed AFPST Claims, and Wind-Down Amounts in accordance with the Plan and the Wind-Down Budget. In the event an Allowed Professional Fee Claim, AFPST Claim, or Wind-Down Amount shall be payable on a day other than a Business Day, such Plan Distribution shall instead be paid on the immediately succeeding Business Day, but shall be deemed to have been made on the date otherwise due. The Liquidating Trust shall be established for the sole purpose of liquidating and distributing its assets, in accordance with Treasury Regulation section 301.7701-4(d) and as a "grantor trust" for federal income tax purposes, pursuant to sections 671 through 679 of the Internal Revenue Code, with no objective to continue or engage in the conduct of a trade or business. The Liquidating Trust shall be governed by the Plan and the Liquidating Trust Agreement. The Liquidating Trust Agreement shall contain provisions customary to trust agreements utilized in comparable circumstances, including, without limitation, any and all provisions necessary to ensure the continued treatment of the Liquidating Trust as a grantor trust and the Liquidating Trust Beneficiaries as the grantors and owners thereof for federal income tax purposes. For United States federal income tax purposes, all parties (including, without limitation, the Debtors, the Liquidating Trustee, and the Liquidating Trust Beneficiaries) shall treat the transfer of Liquidating Trust Assets to the Liquidating Trust as (1) a transfer of the Liquidating Trust Assets to the Liquidating Trust Beneficiaries, followed by (2) the contribution of such assets to the Liquidating Trust in exchange for interests therein. The Liquidating Trust Agreement may provide powers, duties, and authorities in addition to those explicitly stated herein, but only to the extent that such powers, duties, and authorities are for the primary purpose of receiving Liquidating Trust Assets and distributing any such assets pursuant to the Plan, with no objective to continue or engage in the conduct of a trade or business except to the extent reasonably necessary to, and consistent with, the purpose of the Liquidating Trust, and without effect to its status as a "liquidating trust" for United States federal income tax purposes. In the event of any inconsistency between the Plan and the Liquidating Trust Agreement, the Plan shall control. The Liquidating Trustee shall make all Plan Distributions to the Liquidating Trust Beneficiaries in accordance with the Plan and the Liquidating Trust Agreement and the Debtors shall make all Plan Distributions to holders of the AFPST Claims from the Applicable Reserves or available Cash in accordance with the Plan and the Wind-Down Budget. All distributions on account of Preserved Noteholder Claims which constitute Alpha Noteholder Claims Trust Assets shall be made as provided in Article VI. In the event a Plan Distribution shall be payable on a day other than a Business Day, such Plan Distribution shall instead be paid on the immediately succeeding Business Day, but shall be deemed to have been made on the date otherwise due. For federal income tax purposes, except to the extent a Plan Distribution is made in connection with Reinstatement of an obligation pursuant to section 1124 of the Bankruptcy Code, a Plan Distribution will be allocated first to the principal amount of a Claim and then, to the extent the Plan Distribution exceeds the principal amount of the Claim, to the portion of the Claim representing accrued but unpaid interest and other fees, premiums and charges, as applicable. Except as otherwise provided herein, Plan Distributions shall be made to the holders of Allowed Claims as reflected in the registry of Claims maintained by Prime Clerk, the Debtors' claims agent, on the Effective Date.3 Notwithstanding and without limitation of the generality of the foregoing, prior to the Effective Date, the Debtors shall determine the amount of the Applicable Reserves and before or after the Effective Date, the Debtors shall set aside Cash to fund such Applicable Reserves, provided that after all such obligations payable from the Applicable Reserves have been paid in full, any remaining Cash in such reserve shall be transferred to the Liquidating Trust Distribution Account unless the Debtors obtain approval from the Bankruptcy Court for such amounts to be transferred to the Wind-Down Reserve. On the Effective Date, the Liquidating Trustee shall also distribute beneficial interests in the Liquidating Trust to the holders of Funded Debt Claims, Notes Claims, and any Other Unsecured Claims that constitute Allowed Claims as of such date and shall make further distributions of such beneficial interests to holders of any Other Unsecured Claims that have not become Allowed Claims as of the Effective Date, promptly after any of such Other Unsecured Claims have been Allowed. Co-Counsel to the Debtors and Debtors in Possession: Mark D. Collins, Esq. John H. Knight, Esq. Brendan J. Schlauch, Esq. J. Zachary Noble, Esq. RICHARDS, LAYTON & FINGER, P.A. One Rodney Square 920 North King Street Wilmington, DE 19801 Telephone: (302) 651-7700 Facsimile: (302) 651-7701 E-mail: collins@rlf.com knight@rlf.com schlauch@rlf.com noble@rlf.com - and - John K. Cunningham, Esq. Richard S. Kebrdle, Esq. Amanda A. Parra Criste, Esq. WHITE & CASE LLP 200 South Biscayne Boulevard, Suite 4900 Miami, FL 33131 Telephone: (305) 371-2700 E-mail: jcunningham@whitecase.com rkebrdle@whitecase.com aparracriste@whitecase.com Philip M. Abelson, Esq. John J. Ramirez, Esq. Brett L. Bakemeyer, Esq. 1221 Avenue of the Americas New York, NY 10020 Telephone: (212) 819-8200 E-mail: philip.abelson@whitecase.com john.ramirez@whitecase.com brett.bakemeyer@whitecase.com A copy of the Order dated March 16, 2022, is available at https://bit.ly/3wp6qzo from PacerMonitor.com. A copy of the Plan dated March 16, 2022, is available at https://bit.ly/36d9JPw from PacerMonitor.com. About Alpha Latam Management Wilmington, Del.-based Alpha Latam Management, LLC, and its affiliates operate a specialty finance business that offers consumer and small business lending services to underserved communities in Mexico and Colombia. Alpha Latam Management and certain of its affiliates sought Chapter 11 protection (Bankr. D. Del. Case No. 21-11109) on Aug. 1, 2021, disclosing assets of between $100 million and $500 million and liabilities of between $500 million and $1 billion. Judge J. Kate Stickles oversees the cases. The Debtors tapped Richards, Layton & Finger, P.A., and White & Case, LLP as legal counsel; Rothschild & Co US Inc. and Rothschild& Co Mexico S.A. de C.V. as investment bankers; and AlixPartners, LLP, as financial advisor. Prime Clerk, LLC is the claims and noticing agent and administrative advisor. On Aug. 11, 2021, Alpha Holding, S.A. de C.V. and AlphaCredit Capital, S.A. de C.V. SOFOM, ENR commenced in Mexico City a jointly administered voluntarily filed proceeding pursuant to the Ley de Concursos Mercantiles. Through this proceeding, the MexicanDebtors intend to pursue a controlled restructuring and possible sale of their assets. =============== C O L O M B I A =============== COLOMBIA TELECOMUNICACIONES: S&P Affirms 'BB' ICR, Outlook Stable ----------------------------------------------------------------- On March 29, 2022, S&P Global Ratings revised its outlook on Colombian telecom service provider Colombia Telecomunicaciones S.A. E.S.P. (Coltel) to stable from negative and affirmed its 'BB' issuer credit and issue-level ratings on it. The stable outlook reflects S&P's view that, for the next 12-18 months, the company will focus on expanding its fiber optic services through which it will increase its customer base and offset the impact of competitive pricing in the region. This will allow Coltel to generate consistent EBITDA and depend less on debt funding, maintaining debt to EBITDA below 3.0x. Coltel reduced its debt by about COP756 billion, allowing debt to EBITDA drop below 3.0x. We revised upward its stand-alone credit profile (SACP) to 'bb' from 'bb-'. Fiber assets divestment accelerated Coltel's deleveraging. Coltel sold its fiber optic assets to Onnet Fibra Colombia S.A.S. (Onnet; a subsidiary of Kohlberg Kravis Roberts [KKR]) and, at the same time, the company acquired a 40% stake in Alamo HoldCo S.L. (Alamo; Onnet's parent company). On Jan. 11, 2022, after obtaining the regulatory authorizations, the transaction was completed. The company received approximately COP757 billion (or $187.3 million) in net proceeds (after acquiring 40% stake on Alamo). S&P said, "We now expect the company to contractually receive wholesale connectivity services and fiber network deployments from Onnet. Coltel used these funds for debt repayment prior to maturities, resulting in a faster-than-expected deleveraging with debt to EBITDA falling below 3.0x as of Feb. 28, 2022. As a result, we revised our assessment of the company's financial risk profile to significant from aggressive, prompting the upward revision of stand-alone credit profile (SACP) to 'bb' from 'bb-'." S&P believes that the telecom industry in countries, such as the U.S., Mexico, and other advanced economies countries in Latin America, has been moving towards the separation between services and infrastructure segments. Therefore, most of the carriers in the industry have divested fiber and tower assets to peers that are prioritizing investing in infrastructure growth. This is in order to provide connectivity services to the same carriers and reduce the investment burden for constant network upgrades. The company refinanced its debt to improve its credit composition and debt in foreign currency.During 2021, Coltel repaid its $250 million (COP923 billion) syndicated loan ahead of maturity through about $119 million with cash on hand and the remaining $131 million in new debt. Moreover, the company partly prepaid its U.S. bank loan of $83 million (COP331.8 billion) with cash flows ($58 million or COP233.8 billion) and the remaining $25 million (COP98.0 billion) in new debt. Debt repayment strategy is part of the company's plan to reduce maturity pressures, as well as to lessen its exposure to debt in foreign currency. Additionally, the new debt has competitive interest rates that will cause financing costs to fall through a sustainability-linked loan and other local bank loans. As of Dec. 31, 2021, Coltel was in compliance with its sustainability KPI goals to maintain this interest rate. S&P said, "We revised our view of Coltel's subsidiary status to nonstrategic from moderately strategic. We now view Coltel as a nonstrategic subsidiary of Telefonica S.A. (TEF; BBB-/Stable/A-3), removing the one-notch uplift of the issuer credit rating from SACP. This is based on our view that TEF's Latin American subsidiary will have to act autonomously. As a result, we no longer believe Coltel will receive extraordinary support directly from TEF. TEF has been pushing Hispam (group of Latam subsidiaries Chile, Colombia, Peru, Mexico, Ecuador and others) to reduce risk exposure to foreign-exchange rate volatility and to reorganize its capital structure to align with Latin America's economic conditions." As of Dec. 31, 2021, Coltel represents about 3% of the TEF's total EBITDA, lower than those of other subsidiaries of the group. Coltel's three-year plan focuses on business growth through efficient allocation of resources. The plan is to expand Coltel's mobile and fixed services to raise the company's market share by increasing its number of customers through lower prices amid fierce competition in the region. The company will continue to expand its fiber-optic network (now through Alamo) to gain competitive advantage in terms of speed and quality of service. As well as increase approximately 3 million homes passed in the next three years, shut down the 2G network in 2024, and maintain spectrum renewals that will expire in 2023. Coltel plans to accomplish these tasks through lower capex after the divestment of fiber assets, efficient cost structure, and extended debt maturity schedule. S&P said, "The stable outlook reflects our view that Coltel will continue focusing on increasing its market share by offering services through increased fiber optic coverage across the region, allowing the company to fund growth through its operating cash flows. Moreover, because we don't expect additional debt for the next 12-18 months, we expect debt to EBITDA to remain below 3.0x." S&P could lower the ratings on Coltel in the next 12-18 months for the following reasons: -- Coltel is unable to compensate for lower prices through higher subscriber base, given intense competition, lost market share, and lower-than-expected EBITDA, all of which would cause debt to EBITDA to rise above 3.0x. -- The company fails to reduce capex or requires higher-than-expected operating cash flows for license renewals, incurring additional debt that will also weaken leverage metrics and/or erode liquidity position. -- S&P could raise its ratings on Coltel if debt to EBITDA drops below 2.0x in the next 12-18 months, thanks to a faster-than-expected fiber optic deployment across the region, which allows the company to expand its customer base and enhance its pricing power against those of industry peers. Colombia Telecomunicaciones S.A. E.S.P.: (E-2/S-2/G-2) =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Haitians at Border Say Customs Tax is Too High ------------------------------------------------------------------ Dominican Today reports that Haitian merchants blocked the Cachiman border crossing with several trucks in their territory, protesting the high cost of taxes that the General Directorate of Customs of that country is charging. The complainants stated that they risk losing all the products if they do not pay high sums of money for the trucks with food, cement and other merchandise in the Customs of the neighboring country, where they increased all taxes by 100%, according to Dominican Today. Haitians have been making their claims for two days, but this has not prevented Dominicans from transporting to the other side the various merchandise and agricultural products that they commonly sell in Haitian territory, the report notes. The binational gate from the Dominican side was opened at 8:00 in the morning, as usual, with all operations in the Carrizal Interagency zone of the main municipality of Elias Pina, Comendador, taking place under complete calm, the report relays. About Dominican Republic The Dominican Republic is a Caribbean nation that shares the island of Hispaniola with Haiti to the west. Capital city Santo Domingo has Spanish landmarks like the Gothic Catedral Primada de America dating back 5 centuries in its Zona Colonial district. Luis Rodolfo Abinader Corona is the current president of the nation. TCRLA reported in April 2019 that the Dominican Today related that Juan Del Rosario of the UASD Economic Faculty cited a current economic slowdown for the Dominican Republic and cautioned that if the trend continues, growth would reach only 4% by 2023. Mr. Del Rosario said that if that happens, "we'll face difficulties in meeting international commitments." An ongoing concern in the Dominican Republic is the inability of participants in the electricity sector to establish financial viability for the system. Fitch Ratings, in December 2021, revised the Outlook on Dominican Republic's Long-Term Foreign-Currency Issuer Default Rating (IDR) to Stable from Negative and affirmed the IDRs at 'BB-'. The revision of the Outlook to Stable reflects the narrowing of Dominican Republic's government deficit and financing needs since Fitch's last review resulting in the stabilization of the government debt/GDP ratio, as well as the investment-driven economic momentum, reflected in the faster-than-expected economic recovery in 2021 that Fitch expects to carry into above-potential GDP growth during 2022 and 2023. Standard & Poor's, also in December 2021, revised its outlook on the Dominican Republic to stable from negative. S&P also affirmed its 'BB-' long-term foreign and local currency sovereign credit ratings and its 'B' short-term sovereign credit ratings. The stable outlook reflects S&P's expectation of continued favorable GDP growth and policy continuity over the next 12 to 18 months that will likely stabilize the government's debt burden, despite lack of progress with broader tax reforms, S&P said. A rapid economic recovery from the downturn because of the pandemic should mitigate external and fiscal risks. Moody's affirmed the Dominican Republic's long-term issuer and senior unsecured ratings at Ba3 and maintained the stable outlook in March 2021. DOMINICAN REPUBLIC: IDB OKs $140M Loan for Road Rehabilitation -------------------------------------------------------------- The Inter-American Development Bank (IDB) approved a $140 million loan for the Road Infrastructure Rehabilitation and Maintenance Program in the Dominican Republic, whose main goal is to help improve the country's regional connectivity through the delivery of safe, reliable, and accessible transportation services. The project, to be executed by the Ministry of Public Works and Communications, will directly benefit nearly 430,000 residents of rural communities adjacent to the highways and rural roads, who will get better access to basic services and connectivity to population and productive centers as well as markets. In addition, the program will provide jobs for an estimated 2,000 people, with a special focus on the employment of women. The planned road improvements will lower vehicle cost operation and travel times, while making the targeted infrastructure more resilient to the effects of climate change. The loan is aligned with Vision 2025 - Reinvest in the Americas: A Decade of Opportunity, the IDB Group's roadmap to advance towards the economic recovery and inclusive growth of Latin America and the Caribbean. Additionally, under the Sustainable Infrastructure for Competitiveness and Inclusive Growth, it will help jumpstart the productive sector by closing the access gap to services for outermost locations and providing jobs for vulnerable rural populations. Strengthening the Dominican Republic's transport infrastructure will provide a chance to boost regional connectivity, which in turn will have a positive impact on its productivity. Between 2013 and 2019 the country was the third most dynamic economy in Latin America and the Caribbean, with 6% annual average growth. But the pandemic caused the economy to suffer its worst fall in 55 years, with tourism, services, and transportation among the most affected sectors. Then in 2021 it bounced back, experiencing the largest economic expansion in three decades, posting 12.4% year-on-year growth in the first 10 months of the year. The most dynamic factor was private investment (in the construction sector), along with free-trade zones and a gradual return to normalcy in the tourism sector. The loan, from the Bank's Ordinary Capital, will be disbursed over a five-year term. It has a 25-year amortization period, a 6-year period of grace, and an interest rate based on SOFR. About Dominican Republic The Dominican Republic is a Caribbean nation that shares the island of Hispaniola with Haiti to the west. Capital city Santo Domingo has Spanish landmarks like the Gothic Catedral Primada de America dating back 5 centuries in its Zona Colonial district. Luis Rodolfo Abinader Corona is the current president of the nation. TCRLA reported in April 2019 that the Dominican Today related that Juan Del Rosario of the UASD Economic Faculty cited a current economic slowdown for the Dominican Republic and cautioned that if the trend continues, growth would reach only 4% by 2023. Mr. Del Rosario said that if that happens, "we'll face difficulties in meeting international commitments." An ongoing concern in the Dominican Republic is the inability of participants in the electricity sector to establish financial viability for the system. Fitch Ratings, in December 2021, revised the Outlook on Dominican Republic's Long-Term Foreign-Currency Issuer Default Rating (IDR) to Stable from Negative and affirmed the IDRs at 'BB-'. The revision of the Outlook to Stable reflects the narrowing of Dominican Republic's government deficit and financing needs since Fitch's last review resulting in the stabilization of the government debt/GDP ratio, as well as the investment-driven economic momentum, reflected in the faster-than-expected economic recovery in 2021 that Fitch expects to carry into above-potential GDP growth during 2022 and 2023. Standard & Poor's, also in December 2021, revised its outlook on the Dominican Republic to stable from negative. S&P also affirmed its 'BB-' long-term foreign and local currency sovereign credit ratings and its 'B' short-term sovereign credit ratings. The stable outlook reflects S&P's expectation of continued favorable GDP growth and policy continuity over the next 12 to 18 months that will likely stabilize the government's debt burden, despite lack of progress with broader tax reforms, S&P said. A rapid economic recovery from the downturn because of the pandemic should mitigate external and fiscal risks. Moody's affirmed the Dominican Republic's long-term issuer and senior unsecured ratings at Ba3 and maintained the stable outlook in March 2021. ============= J A M A I C A ============= JAMAICA: Gov't to Spend $15 Million to Resume Agricultural Shows ---------------------------------------------------------------- RJR News reports that it is going to cost the government $15 million to resume local trade shows this year. Minister of Agriculture Pearnel Charles Jr. told a media briefing that the absence of the agricultural shows, due to the COVID-19 pandemic, has resulted in revenue loss of $2 billion, according to RJR News. Agricultural shows will resume on Easter Monday with the Montpelier Agricultural and Industrial Show in St. James and St. Mary Agri Expo, the report relays. The popular Denbigh Agricultural, Industrial and Food Show is slated for the Emancipation Weekend at Denbigh Show Ground in Clarendon, the report notes. As reported in the Troubled Company Reporter-Latin America on March 11, 2022, Fitch Ratings has affirmed Jamaica's Long-Term Foreign Currency Issuer Default Rating (IDR) at 'B+'. The Rating Outlook is Stable. =========== M E X I C O =========== SITIOS LATINOAMERICA: S&P Assigns Prelim 'BB+' ICR, Outlook Stable ------------------------------------------------------------------ On March 29, 2022, S&P Global Ratings assigned its 'BB+' preliminary issuer credit rating to Sitios Latinoamerica S.A.B. de C.V. (Sitios Latam). The stable outlook reflects S&P's expectation that Sitios Latam will adhere to a prudent financial policy that will support improved credit metrics, and also mirrors the stable outlook on Brazil, considering its assessment of the sovereign rating cap. On Sept. 19, 2021, America Movil announced that its shareholders approved the spin-off of its tower infrastructure operations across Latin America into a new company Sitios Latam. Sitios Latam will operate more than 30,000 telecommunication towers, and Brazil will be its largest market. America Movil will remain the company's largest customer. S&P said, "We expect Sitios Latam to initially carry debt of about $2.7 billion, which will result in a debt-to-EBITDA ratio of approximately 5.0x in 2022. However, the company's commitment to financial discipline and to prioritize deleveraging over shareholder returns should help bring this ratio below 5.0x in less than 12 months. We expect Sitios Latam to not pay dividends at least in the first three years of operations. We also expect that it will fund the bulk of capital investments to expand physical towers through internal cash flow. "Considering that Sitios Latam's year-end 2022 credit metrics would be relatively weak for the current rating level, in our view a prudent financial policy, conservative risk management, and effective cost controls are key factors in our assessment of the company's financial risk profile. We also consider that Sitios Latam could be somewhat sensitive to deviations in its revenue growth trajectory, exchange rate fluctuations, and potential efficiency disruptions. In particular, if revenue growth remains in the low single digits or EBITDA margins fall below 86%, it could delay the company's deleveraging plan. Therefore, slower improvement than we expect in cash flow and leverage metrics could result in downside rating pressure." America Movil S.A.B. de C.V. (AMX; BBB+/Negative/--; mxAAA/Stable/mxA-1+) will be Sitios Latam's main customer, representing more than 80% of consolidated revenues, through operating subsidiaries that carry the Claro brand. S&P expects AMX's data and video demand to drive growth for tower infrastructure, particularly considering that AMX has close to 200 million wireless subscribers in the markets where Sitios Latam operates. In addition, recent 4G and 5G spectrum auctions in some key markets for Sitios Latam will require increasing connectivity and higher co-location activity across its tower assets. Sitios Latam's revenue derives from long-term contracts of up to 10 years, with a renewal option for an additional 10 years, and that are denominated in U.S. dollars in 12 out of the 15 markets where the company operates. S&P said, "We see the stability and predictability of cash flows as a key factor supporting Sitios Latam's credit quality. Because AMX's spinoff of telecom towers created Sitios Latam, we believe AMX has strong incentives to remain a captive customer for the company." AMX already operates in Sitios Latam's tower infrastructure, and the tower locations contribute to AMX's leading position in the markets where it operates. In addition, Sitios Latam and AMX will initially have shareholders in common, which also provides incentives for both entities to maintain a long-term business relationship. Accordingly, the preliminary rating should not be construed as evidence of the final rating. If the transaction does not complete as planned or if S&P Global Ratings does not receive final documentation within a reasonable timeframe, or if the final documentation departs from materials reviewed, S&P reserves the right to withdraw or revise its ratings. ESG credit indicators: E2, S2, G2 S&P said, "ESG factors have no material influence on our credit rating analysis of Sitios Latam. Considering that Sitios Latam's core business will be operating telecom tower infrastructure, we expect the company will monitor environmental factors, although it hasn't defined specific targets yet. In our view, environmental factors will be similar to those of industry peers. In addition, we don't consider social factors to be material in the markets where the company operates." ======= P E R U ======= HUNT OIL: Moody's Upgrades CFR to Ba1, Outlook Remains Stable ------------------------------------------------------------- Moody's Investors Service upgraded Hunt Oil Co. of Peru L.L.C., Suc. Del Peru's ("Hunt Peru") corporate family rating and its senior unsecured rating to Ba1 from Ba2 given its robust cash generation and declining debt as well as the improved credit profile of its parent company, Hunt Oil company; the rating outlook is stable. Upgrades: Issuer: Hunt Oil Co. of Peru L.L.C., Suc. Del Peru Corporate Family Rating, Upgraded to Ba1 from Ba2 Senior Unsecured Regular Bond/Debenture, Upgraded to Ba1 from Ba2 Outlook Actions: Issuer: Hunt Oil Co. of Peru L.L.C., Suc. Del Peru Outlook, Remains Stable RATINGS RATIONALE Hunt Peru's ratings upgrade reflects the company's sustained robust cash generation and Moody's expectation that it will reduce debt and maintain its strong capital structure unchanged in the foreseeable future. The rating upgrade also reflects the improved credit profile of Hunt Peru's parent company, Hunt Oil company. The Ba1 corporate family rating on Hunt Peru considers the company's small production size; asset concentration in only two gas blocks; operating dependence on only two pipelines, owned by Transportadora de Gas del Peru (TGP) (Baa1 stable); no operating control over the gas blocks; vulnerability to commodities prices; high dividend payout rate and Moody' expectation of continued volatile natural gas and natural gas liquids prices. On the other hand, Hunt Peru's ratings are supported by the company's solid credit metrics for its rating category; large proved gas reserves, equivalent to about 18 years of life based on 2021 production; strong asset base in the world-class, prolific Camisea gas fields; low volume risk given solid demand both in the local and international markets; the strategic importance of the Camisea fields to the Government of Peru (Baa1 stable); and the company's experienced management team. Moody's considers the debt agreement's provisions in Hunt Peru's unsecured notes, that help ring-fence Hunt Peru from its parent, to be beneficial to its credit profile since the notes represent 100% of the company's debt. Hunt Peru has good liquidity. Cash in the amount of about $140 million in December 2021 plus around $500 million in cash from operations through mid-2023, as expected by Moody's, will fund $75 million in debt amortization, $40 million in capital spending, plus interest payments and dividends in the period. Hunt Peru also counts on a $30 million three-year committed revolving credit facility that matures in May 2024. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Hunt Peru's Ba1 ratings are constrained by its production size and the high dividend payout to its parent company. A dividend policy that protects creditors or a significant debt reduction on a sustained basis, without affecting its operating performance, could trigger a positive rating action on Hunt Peru's ratings. The credit profile of Hunt Peru's parent company, Hunt Oil Company, would be relevant information for Moody's to consider a positive action on Hunt Peru's rating. Hunt Peru's Ba1 ratings could be downgraded if it faces extended operational disruptions or if its production declines significantly. An interest coverage ratio, as measured by EBITDA/interest expense, below 5 times could also trigger a negative rating action. The principal methodology used in these ratings was Independent Exploration and Production published in August 2021. ===================================== T R I N I D A D A N D T O B A G O ===================================== CARIBBEAN AIRLINES: Has No Plans to Hike Fares ---------------------------------------------- RJR News reports that Caribbean Airlines Limited said it has no immediate plans to raise airfares despite surging oil prices. The increase in the cost of oil which has been sparked by the Russia-Ukraine conflict, has prompted other international air carriers to hike fares, according to RJR News. Caribbean Airlines' Head of Corporate Communications, Dionne Ligoure, told Trinidad's Guardian newspaper that while the company had not made a decision to increase prices, it will continue to closely monitor what is taking place globally, the report notes. In a recent interview with the BBC, Delta Airlines Chief Executive Officer Ed Bastian said higher oil prices would lead to a 10%? increase in fares on the company's domestic flights in the United States, with a higher increase expected on international trips, the report relays. He explained that this was an attempt to offset the higher cost of jet fuel, the report notes. Other airlines, Emirates, Japan Airlines and Air Asia have also introduced surcharges on the fares, as result of increased fuel costs, the report adds. About Caribbean Airlines Caribbean Airlines Limited - http://www.caribbean-airlines.com/- provides passenger airline services in the Caribbean, South America, and North America. The company also offers freighter services for perishables, fish and seafood, live animals, human remains, and dangerous goods. In addition, it operates a duty free store in Trinidad. Caribbean Airlines Limited was founded in 2006 and is based in Piarco, Trinidad and Tobago. Caribbean Airlines is among many airlines whose business has been greatly affected in 2020 by the slowdown of international travel caused by the COVID-19 pandemic. The government of Trinidad & Tobago guaranteed a US$65 million loan for the airline, and that funding has helped with the airlines' cash flow shortfall since May 2020. In September 2020, the airline related it will be taking cost-cutting measures to help keep it afloat. The measures, which was to affect some 1,700 employees, included salary deductions, no-pay leaves and lay-offs. ********* 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 * * *