/raid1/www/Hosts/bankrupt/TCRLA_Public/220413.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, April 13, 2022, Vol. 23, No. 68
Headlines
B E R M U D A
OCEAN VIEW GOLF COURSE: Still Shut, Six Months On
B R A Z I L
BRAZIL: Future of Interest Rates Will Depend on War & Other Shocks
BRAZIL: Seed Shortage Could Hamper Growth of Wheat Production
C H I L E
LATAM AIRLINES: Judge Garrity to Decide on $1.3 Bil. Claim Dispute
C O L O M B I A
CREDIVALORES: Fitch Places 'B+' Foreign Curr. IDR on Watch Neg.
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Central Bank Lending Rate Now 5.50%
M E X I C O
BANCA MIFEL: Fitch Lowers LT IDRs to 'BB-', Removes UCO
T R I N I D A D A N D T O B A G O
TRINIDAD & TOBAGO: IDB Execs OK Digital Transformation Agenda
- - - - -
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B E R M U D A
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OCEAN VIEW GOLF COURSE: Still Shut, Six Months On
-------------------------------------------------
Royal Gazette reports that a Bermuda government restaurant
concession in Devonshire has been shut for more than six months
with no explanation as to when it will reopen.
And the temporary liquor license obtained so that the Government
could at least provide beverages and recoup some revenue, appears
to have expired as of April 1, according to Royal Gazette.
Members at the Ocean View Golf Course believe the Bermuda
Government Consolidated Board of Trustees, who reopened the lounge
and tried to at least keep the bar operating, forgot to renew the
license, the report notes.
They said there had been no beverage service for about a week, the
report relays.
The entire restaurant, which is part of the public and tourism
amenity at the Ocean View Golf Course, was abruptly closed after a
visit from the Bermuda Police in the autumn, the report notes.
In November, the trustees said they had taken vacant possession of
the premises following a failed tenancy agreement, the report
discloses.
Kim Swan, chairman of the board of trustees apologized to
Parliament for the failure to offer bar and restaurant services at
that time, the report relays.
He reported to the House of Assembly that the public purse was owed
money, complaints were received about the conduct of the persons
illegally occupying the premises and the board of trustees had been
misrepresented by one of their own - someone who was no longer a
trustee, the report says.
He provided no detail when he said a matter had been referred to
the Bermuda Police Service, the report discloses.
The roadside signs proudly proclaiming the establishment as
Clubhouse Bar and Lounge - from the last tenancy - were removed,
the report relays.
The trustees took command of the bar operations, while waiting for
a new food and beverage concessionaire to be put in place, the
report notes.
New roadside signs emerged, renaming the establishment The View
Golf Lounge, the report relays.
But weeks have turned into months and members and neighborhood
patrons are awaiting the return of the restaurant service, the
report discloses.
And now, the bar service has also ended, the report relays.
The trustees operation of the bar may have only been a temporary
measure because restaurants typically need revenue from both the
food and the beverage service, the report says.
The Government operates the restaurant separately from the
nine-hole golf course, deriving a concession fee from the rental of
the premises, including the bar, a kitchen and the lounge, the
report notes.
The outside facilities include partial views of the golf course
from a deck that has spectacular North Shore ocean views, from
Dockyard to St. George's, the report relays.
Among the questions put to the board chairman, MP Swan, was the
issue of loss revenue, the report discloses.
The Government previously operated the food and beverage provisions
at a collective loss from all government golf courses, but changed
to a concession arrangement many years ago to improve the bottom
line, the report relays.
No questions about the future of the concession at OVGC had been
answered by press time, the report adds.
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B R A Z I L
===========
BRAZIL: Future of Interest Rates Will Depend on War & Other Shocks
------------------------------------------------------------------
Rio Times Online reports that the future of interest rates in
Brazil will depend on the extent of the effects of the war between
Russia and Ukraine and other possible shocks on inflation, the
president of the Brazilian Central Bank (BC), Roberto Campos Neto,
said on April 7.
In an event promoted by an investment company, he stated that the
conflict in Eastern Europe brought an additional challenge to
monetary policy, notes Rio Times Online.
According to Campos Neto, even if the war ends in the short term,
the planet will continue to face challenges for a long time, the
report notes. He cited the re-division of global value chains, a
problem that has persisted since the covid-19 pandemic, and the
schism between democratic countries with other regimes, 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).
BRAZIL: Seed Shortage Could Hamper Growth of Wheat Production
-------------------------------------------------------------
Richard Mann at Rio Times Online reports that Brazilian grain
harvest will reach a record level this year, according to IBGE
estimates.
It will be nearly 259 million tons, up 2.3% from last year. Wheat,
which should also accompany this progress, faces one obstacle: a
shortage of seeds, according to Rio Times Online.
Currently, Brazil imports half of the 12 million tons it consumes.
And to reduce its dependence on foreign countries, Embrapa
developed a variety three decades ago that is well adapted to
Brazil's Cerrado, the report relays.
However, the area under cultivation is still tiny, the report
notes. There are 200,000 hectares of wheat grown in the Cerrado,
the report relates.
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 H I L E
=========
LATAM AIRLINES: Judge Garrity to Decide on $1.3 Bil. Claim Dispute
------------------------------------------------------------------
Jeremy Hill, writing for Bloomberg News, reports that U.S.
Bankruptcy Judge James Garrity will rule this second week of April
2022 on a dispute between Latam Airlines and some of its creditors
over a $1.3 billion inter-company claim, he said in a hearing.
The Chilean airline's official unsecured creditor group is trying
to block one unit of Latam from collecting $1.3 billion from
another unit, arguing the claim is not a valid debt and would lead
to unfair recoveries for some creditors.
Holders of certain unsecured Latam bonds would get a higher
recovery than standard unsecured creditors because of the claim,
according to lawyers for the dissenting creditor panel.
About LATAM Airlines
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.
LATAM Airlines Group S.A. 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 Airlines Group S.A. 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 general
bankruptcy counsel; FTI Consulting as restructuring advisor; and
Togut, Segal & Segal LLP and Claro & Cia in Chile as special
counsel. Prime Clerk LLC is the claims agent.
===============
C O L O M B I A
===============
CREDIVALORES: Fitch Places 'B+' Foreign Curr. IDR on Watch Neg.
---------------------------------------------------------------
Fitch Ratings has placed Credivalores-Crediservicios S.A.'s
(Credivalores) Long-Term Foreign Currency Issuer Default Rating
(IDR) of 'B+' and Short-Term Foreign Currency IDR of 'B' on Rating
Watch Negative (RWN). The Long- and Short-Term National Scale
ratings of 'A(col)' and 'F1(col)', respectively, and outstanding
debt issuances were also placed on RWN.
KEY RATING DRIVERS
The Rating Watch Negative reflects elevated execution risk
associated with refinancing the company's $164 million debt
maturity on July 27, 2022, particularly as lender sentiment has
deteriorated for Latam NBFIs. Fitch expects to review the ratings
again within the next 30 days, and further multi-notch negative
rating actions cannot be ruled out if the company does not secure
the funds needed to meet the bond maturity in the expected
timeframe.
Fitch has revised Credivalores' funding, liquidly assessment to
'b+' from 'bb', as the company faces reduced access to
international markets that in the past provided the bulk of the
company's long-term debt. Thus far, the company has raised only 65%
of their 2022 net cash flow needs.
The company has indicated that it is in the process finalizing
certain secured loan agreements that could cover remaining 2022
cashflow needs and allow for the planned managed loan portfolio
growth of approximately 10% to 12%.
The company has also indicated that they expect to close a
two-year, USD100 million facility secured by its credit card
portfolio by the end of April. A portion of the proceeds from this
new facility would be intended to be used to repay the July bond
maturity, alongside nearly USD107 million, which has already been
raised. Among the potential funding providers is Credivalores'
largest shareholder, Gramercy, which owns 36.5% of total shares
following a recent equity infusion of COP12 billion (USD3 million)
with two other shareholders.
Credivalores' ratings reflect its strong local market position as
the largest non-bank lender in Colombia, offset by weakening
capitalization and leverage and profitability metrics. Fitch also
revised its Management and Strategy factor assessment to 'b' from
'b+' reflecting heightened execution risk and potentially changing
strategic objectives.
SENIOR DEBT
The senior unsecured debt rating of 'B+'/'RR4' is equalized with
Credivalores' IDR, reflecting Fitch's expectation for average
recovery prospects.
PARTIAL CREDIT GUARANTEE ISSUANCE
The company's partial credit guarantee (PCG) issuance ratings of
'AA(col)' are three notches above Credivalores' long-term national
rating of 'A(col)'. The incremental notching corresponds to the
enhancement received with such partial guarantee, provided by Fondo
Nacional de Garantias (FNG), which improves the recovery rate for
the bondholder in the event of a default.
The issuance rating incorporates the long-term national rating of
Credivalores, the guarantee and the credit quality of the
guarantor, including the strategic importance of FNG for the public
policies of the National Government and its business model as the
largest guarantee provider for small and medium-sized enterprises
in the country.
For more information on FNG, please refer to the press release
"Fitch Afirma la Calificación del FNG en 'AAA(col)'; Perspectiva
Estable", published on Dec, 13, 2021.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Fitch expects to review the RWN within the next 30 days,
taking into account the company's progress in obtaining
funding facilities or other liquidity sources to address the
upcoming maturity. Fitch will also consider potential impacts
on Credivalores' company and financial profiles. If
refinancing risk remains heightened, a multi-notch downgrade
is possible.
-- Credivalores' IDRs and national-scale ratings could be
downgraded if near-term refinancing risk is not imminently
addressed; there is an increase in tangible leverage, measured
as debt/tangible equity adjusted by the temporary effects from
assets and derivatives valuation sustainably above 8.5X; or if
profitability metrics deteriorate, measured as negative pre-
tax income to average assets, that reduces the company's
ability to absorb unexpected losses.
-- The company's senior unsecured debt is expected to move in
line with the Long-Term IDR, although a material increase in
the proportion of secured debt could result in the unsecured
debt being notched down from the IDR.
PCG Issuance
Although not Fitch's base case assumption due to the Negative
Rating Watch in place, the three-notch relativity of the PCG
issuance above Credivalores' long-term national-scale rating could
be reduced in the event of future increases in the issuer rating or
by an improvement in its intrinsic recovery, in accordance with the
agency's methodology.
A downward move in Credivalores' Long-Term National Scale rating
would negatively affect the PCG ratings.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- The RWN could be removed if Credivalores addresses near-term
refinancing risk and improves its funding and liquidity
profile. Under such a scenario, Fitch would likely assign a
Negative Rating Outlook, reflecting long-term challenges to
the company's business profile, profitability, asset quality
and leverage.
-- While not Fitch's base case, Credivalores' Rating Outlook
could be revised to Stable if the company is also able to show
an improvement in its profitability and asset quality metrics
while reducing pressure on its tangible leverage metrics.
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.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
DEBT RATING RECOVERY PRIOR
---- ------ -------- -----
Credivalores-Crediservicios S.A.
LT IDR B+ Rating Watch On B+
ST IDR B Rating Watch On B
Natl LT A(col) Rating Watch On A(col)
Natl ST F1(col) Rating Watch On F1(col)
senior unsecured LT B+ Rating Watch On RR4 B+
Guaranteed Natl LT AA(col) Rating Watch On AA(col)
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Central Bank Lending Rate Now 5.50%
-------------------------------------------------------
Dominican Today reports that the Central Bank of the Dominican
Republic (BCRD) said it decided to increase its lending rate 50
basis points, from 5.00% to 5.50% per year.
With this decision, which was made at its monetary policy meeting
in March, the BCRD has increased its monetary policy rate by 250
basis points from November 2021, in line with the cycle of
increases in interest rates to international level, the entity
said, according to Dominican Today.
While the rate of the permanent facility for liquidity expansion
(Reposes one day) increased from 5.50% to 6.00% per year and the
interest-bearing overnight deposit rate) from 4.50% to 5.00%, the
report notes.
"This decision is based on an exhaustive evaluation of the behavior
of the world economy, the greater persistence of inflationary
pressures and the increase in international uncertainty derived
from recent geopolitical conflicts," 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
===========
M E X I C O
===========
BANCA MIFEL: Fitch Lowers LT IDRs to 'BB-', Removes UCO
-------------------------------------------------------
Fitch Ratings has downgraded Banca Mifel, S.A., Institucion de
Banca Multiple, Grupo Financiero Mifel's (Mifel) Long-Term Foreign
and Local Currency Issuer Default Ratings (IDRs) to 'BB-' from
'BB', and Viability Rating (VR) to 'bb-' from 'bb'. The ratings
have been removed from Under Criteria Observation (UCO).
Additionally, the National Long-Term rating was downgraded to
'A(mex)' from 'A+(mex)'. Short-Term Foreign and Local Currency IDRs
were affirmed at 'B', and National Short-Term scale ratings at
'F1(mex)', respectively. The Rating Outlook on the Long-Term IDRs
and National Rating is Stable.
The ratings were placed at UCO on Nov. 17 2021 following the
publication of the updated Bank Rating Criteria on Nov. 12, 2021
that incorporates fixed weights for each key rating driver (KRD).
The removal of the UCO and downgrade mainly reflects the impact of
Fitch´s updated Bank Rating Criteria which results in an implied
VR of 'bb-'. Despite business profile (20%) and funding and
liquidity (10%) are scored at 'bb', they do not have a positive
impact on the rest of the credit factors currently at bb-.
In line with the updated Criteria, Fitch has assigned Mifel's
Government Support Rating (GSR) of 'No Support' (ns).
Fitch has withdrawn the Support Rating and Support Rating Floor of
'5' and 'NF', respectively, as they are no longer relevant to the
agency's coverage.
KEY RATING DRIVERS
IDRs, VR and National Ratings
Mifel's IDRs are driven by its intrinsic creditworthiness, as
reflected in its VR of 'bb-'. Mifel's business profile is marked by
its modest franchise within the Mexican banking system and its
specialized and resilient business model, although concentrated in
some vulnerable sectors as SMEs and mortgages. The VR also reflects
its reasonable asset quality and capitalization metrics that are
commensurate with the bank´s rating category. The rating also
considers the slightly improved profitability ratios despite the
astringent operating environment (OE) driven by resumed loan
growth, as well as the bank's adequate funding and liquidity
position.
Fitch expects Mifel´s asset quality to remain under pressure in
2022 due to the challenging OE but commensurate to its rating
category. At YE 2021 the bank´s NPL ratio was 3.7%, similar to
2020 but higher than its four-year average of 2.7% from 2017 to
2020. However, the adjusted NPL ratio that considers charge-offs
moderately decreased to 4.1% (2020:4.4%) and remains still below
the banking system which is influenced by the portion of mortgages
loans.
Additionally, foreclosed assets increased significantly but these
still represents 0.4% of total assets. Restructured loans
represents a relevant 18%, while the loan loss reserves coverage
stood at a moderate 76.5%. Individual borrower concentration
continues weigh on the bank's asset quality. As of YE 2021 the top
20 borrowers accounted roughly 19% of total portfolio or 1.3x its
common equity Tier 1 (CET1).
Mifel´s profitability ratios show signs of recovery supported by
business volume growth. Fitch expects the bank´s earnings
generation to stabilize at levels similar to its historical average
of close to 2%, and remain consistent with its current rating.
Operating profit to risk-weighted assets (RWA) ratio was 1.8% at YE
2021 up from 1% as of YE 2020, mainly driven by higher net interest
margin that stood at 3.7% (2020: 3.3%), increased net fees and
commissions and contained impairment charges.
Mifel´s capitalization ratios are appropriate for the rating level
and compare similarly to peers. The bank´s CET1 ratio stood at
14.1% similar to 2020, despite the increased RWAs. Fitch believes
capitalization ratios to remain above its rating sensitivity
despite resumed growth.
Mifel´s funding structure is quite diversified; however, deposit
concentrations are still high due to they are comprised mainly by
institutional customers. As of YE 2021 customers deposits grew
remarkably at 27% mainly driven by an increase of short-term
deposits which in turn, derived in an improvement of
loans-to-customer deposit ratio to 131% from 143% at YE 2020.
Deposit concentration remain high albeit decreased at YE 2021, the
20 largest clients represented roughly 19% of total deposits.
Mifel´s liquidity position is comfortable to face liquidity risk.
Mifel´s subordinated debt bond maturity (USD150 million) will
occur in May 2022, however cash on hand and uncommitted credit
facilities covers around 5.0x of this amount. LCR remained
consistently above 100% in the last fourth years.
GSR
Mifel's 'No Support' GSR reflects Fitch expectation of there is no
reasonable assumption that such support will be available due to
the bank's omission as a domestic systemically important bank. At
YE 2021, Mifel deposits were around 1% of the Mexican banking
system.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
IDRs, VR and National Ratings
-- A downgrade of the Mifel's ratings could be triggered by a
material deterioration in asset quality and profitability that
weaken its capital position, particularly if this weaken its
operating profit to RWAs metrics consistently below 1% or its
CET1 ratio falls below 12%.
GSR
-- There is no downside potential for the GSR.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
IDRs, VR and National Ratings
-- Ratings could be upgraded by a material strengthening of
Mifel's franchise and profitability combined with the
maintenance of CET1 ratio consistently above 15% along with an
improvement of loan reserves coverage and a reduction in the
bank's risk and business concentrations on both sides of the
balance sheet.
GSR
-- Upside potential is limited and can only occur over time with
a material growth of the bank's systemic importance.
OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS
Hybrid Subordinated Notes
The bank's global hybrid subordinated securities were downgraded to
'B' from 'B+', two notches below the applicable anchor rating,
Mifel's VR of 'bb-'. These securities in Mexico would typically be
notched down twice for loss severity and once for incremental
nonperformance risk as coupon deferral or cancellations will likely
be triggered at relatively high levels of capitalization according
to local regulations. However, per Fitch's criteria, in Mifel's
case, only two notches overall are applied, instead of three due to
ratings compression given the sub-investment-grade anchor rating of
the bank.
OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES
Factor that could, individually or collectively, lead to negative
rating action/downgrade:
Hybrid Subordinated Notes
-- The bank's subordinated debt rating will likely mirror any
downgrade in the bank's VR.
Factor that could, individually or collectively, lead to positive
rating action/upgrade:
-- If the bank's rating is upgraded, the notching of the notes'
rating relative to the bank's VR will probably widen as rating
compression will no longer apply per Fitch's current criteria.
VR ADJUSTMENTS
The Business Profile Score of 'bb' has been assigned above the 'b'
category implied score due to the following adjustment reasons:
Business Model (positive).
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Financial Institutions and
Covered Bond issuers have a best-case rating upgrade scenario
(defined as the 99th percentile of rating transitions, measured in
a positive direction) of three notches over a three-year rating
horizon; and a worst-case rating downgrade scenario (defined as the
99th percentile of rating transitions, measured in a negative
direction) of four notches over three years. The complete span of
best- and worst-case scenario credit ratings for all rating
categories ranges from 'AAA' to 'D'. Best- and worst-case scenario
credit ratings are based on historical performance.
SUMMARY OF FINANCIAL ADJUSTMENTS
Prepaid expenses and other deferred assets were classified as
intangibles and deducted from equity to reflect its low absorption
capacity.
ESG CONSIDERATIONS
Banca Mifel, S.A., Institucion de Banca Multiple, Grupo Financiero
Mifel has an ESG Relevance Score of '4' for Governance Structure
due to its exposure to an ownership concentration, which has a
negative impact on the credit profile, and is relevant to the
ratings 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.
DEBT RATING PRIOR
---- ------ -----
Banca Mifel, S.A., Institucion de Banca Multiple, Grupo Financiero
Mifel
LT IDR BB- Downgrade BB
ST IDR B Affirmed B
LC LT IDR BB- Downgrade BB
LC ST IDR B Affirmed B
Natl LT A(mex) Downgrade A+(mex)
Natl ST F1(mex) Affirmed F1(mex)
Viability bb- Downgrade bb
Support WD Withdrawn 5
Support Floor WD Withdrawn NF
Government Support ns New Rating
Subordinated LT B Downgrade B+
=====================================
T R I N I D A D A N D T O B A G O
=====================================
TRINIDAD & TOBAGO: IDB Execs OK Digital Transformation Agenda
-------------------------------------------------------------
Inter-American Development Bank (IDB) President Mauricio
Claver-Carone and Trinidad and Tobago Minister of Planning &
Development Pennelope Beckles met to discuss upcoming plans for the
IDB's work in Trinidad and Tobago, as well as the IDB's work on
digitalization and climate change in the Caribbean.
The IDB's Board of Executive Directors approved a new country
strategy with Trinidad and Tobago for the 2021-2025 period. The
strategy aims to help the country implement its digital
transformation agenda to achieve more sustainable and inclusive
growth, which is the first pillar of the country's medium and
long-term post-pandemic development plan.
The new strategy will support the digital transformation of
Trinidad and Tobago's economy. The strategy focuses on three areas:
improving the business environment to enable digital
transformation; expanding the use of digital tools to improve
educational outcomes and digital skills; and enhancing the delivery
of services.
"This new strategy focuses on how the IDB and Trinidad and Tobago
will work together to leverage digital transformation to promote
sustainable and inclusive growth," said IDB President Mauricio
Claver-Carone. "We are committed to helping Trinidad and Tobago
maximize the benefits of digitalization to empower the private
sector, improve public services, and strengthen institutions and
governance."
The Bank's main counterpart in country, the Ministry of Planning
and Development, welcomed the continued strong partnership between
the Bank and Trinidad & Tobago. IDB Governor and Minister of
Planning and Development, The Honorable Pennelope Beckles, said,
"It is indeed timely that the IDB's new Country Strategy with the
country will focus on Digital Transformation, given the priorities
outlined in Vision 2030 and the Roadmap to Recovery. Digital
Transformation will be a critical factor in the post-pandemic
recovery and Trinidad and Tobago has taken bold steps towards
advancing this agenda including the establishment of a dedicated
Ministry of Digital Transformation in 2021. The private sector has
also signaled that this is an area of great priority to regain
competitiveness. We look forward to working with the IDB to
facilitate inclusive access to the benefits of digitalization for
all stakeholders."
A key element of the strategy focuses on using digitalization to
bolster not only the public sector, and public sector services, but
to empower the private sector and individual citizens of Trinidad
and Tobago. The digitalization strategy will enhance and build on
the IDB's partnership with Trinidad and Tobago, which includes its
ongoing engagement in key development sectors such as state
modernization, urban development and housing, health, energy,
transportation, water and sanitation, environment, and the blue
economy.
For further information on the work of the IDB in Trinidad and
Tobago, contact idbtrinidad@iadb.org.
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S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Latin America is a daily newsletter
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Copyright 2022. All rights reserved. ISSN 1529-2746.
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