/raid1/www/Hosts/bankrupt/TCRLA_Public/220414.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, April 14, 2022, Vol. 23, No. 69

                           Headlines



A R G E N T I N A

ARGENTINA: Diesel Shortages Wreak Havoc as Soy Harvest Starts
ARGENTINA: Fitch Affirms 'CCC' LT IDRs


B O L I V I A

BOLIVIA: To Raise Gas Prices for Brazil after Deal with Argentina


B R A Z I L

ANDRADE GUTIERREZ: Fitch Affirms 'RD' LT IDRs
NATURA &CO HOLDING: Fitch Affirms 'BB' LT IDRs, Outlook Positive


G R E N A D A

GRENADA: Setting Up Committee to Review Ruling On Pension Issue


G U A T E M A L A

GUATEMALA: Outlook Subject to Elevated External Risks, IMF Says


M E X I C O

GRUPO KALTEX: S&P Cuts ICR to 'D' on Missed Sr. Sec. Notes Payment

                           - - - - -


=================
A R G E N T I N A
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ARGENTINA: Diesel Shortages Wreak Havoc as Soy Harvest Starts
-------------------------------------------------------------
Jonathan Gilbert at Bloomberg News reports that Argentina is
grappling with shortages of diesel fuel that powers tractors and
trucks just as the soybean and corn harvests pick up in the
powerhouse crop exporter.

Farmers ready for fieldwork and truckers who drive the crops to
port are reporting rationing and soaring prices across the Pampas
growing belt, with protests along key trucking routes, according to
Bloomberg News.   Argentina is the world's biggest exporter of soy
meal and soy oil and the third-biggest corn supplier, Bloomberg
News notes.

If the soy harvest gets delayed, plants would start to shed beans
and lose yield, according to Esteban Copati, head of crop estimates
at the Buenos Aires Grain Exchange, Bloomberg News relays.  High
diesel prices, he said, also risk squeezing profit margins that are
closely watched by traders because they impact farmers' planting
and selling strategies, Bloomberg News discloses.

Oil-rich Argentina produces plenty of diesel, but it also
intervenes in energy markets, Bloomberg News says.  Right now, it's
trying to shield Argentines suffering inflation running at 52% from
the global oil rally, Bloomberg News discloses.  Local crude traded
at around US$60 a barrel in March even as international prices
climbed above US$100, Bloomberg News notes.

The ample difference has encouraged drillers in Argentina to export
crude oil rather than supply domestic refiners like state-run YPF
SA, which accounts for more than half of the nation's fuel sales,
and Raizen, Bloomberg News relays.  They're making up for the
shortfall with imports that have become hard to source amid the
Russia-Ukraine war, Bloomberg News discloses.

There are talks to keep more crude in Argentina, Bloomberg News
relays.  "We are trying to improve prices in the second quarter,"
YPF's Chief Financial Officer Alejandro Lew said in a March 22
interview. "We are pushing a little bit harder and stronger for
upstreamers to leave some extra barrels in the local market," he
added.

YPF said in a statement that it would grow diesel output in April
and May and "guarantee" supplies for harvesting, Bloomberg News
notes.

Increasing Argentine diesel's bio-blend mandate to make the fuel
less dependent on provisions from drillers and more on biodiesel
made from soybeans would help alleviate shortages, according to the
Federation of Grain Elevators, Bloomberg News relays.  

Argentina slashed the blend mandate by half last year, Bloomberg
News 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: Fitch Affirms 'CCC' LT IDRs
--------------------------------------
Fitch Ratings has affirmed Argentina's Long-Term Foreign and Local
Currency Issuer Default Ratings (IDR) at 'CCC'.

KEY RATING DRIVERS

Weak Repayment Capacity: Argentina's 'CCC' ratings reflect weak
external liquidity and pronounced macroeconomic imbalances that
undermine debt repayment capacity, and uncertainty regarding how
much progress can be made on these issues under a new IMF program.
Argentina's debt repayment record is one of the weakest among rated
sovereigns, and its ability to honor obligations coming due in the
medium term will hinge on FX reserve accumulation, recovery of
market access, and broader policy improvements that appear
challenging given a complex political and external backdrop.

Long-Awaited IMF Deal: In March, Argentina finalized agreement with
the IMF for a new USD44 billion Extended Funding Facility (EFF)
intended to fund USD40 billion in looming repayments of the defunct
Stand-By Arrangement (SBA), with an extra USD4 billion in up-front
net financing. This has averted the risk of a default to the IMF
and is facilitating a parallel rescheduling of Paris Club debt. Yet
it is uncertain whether the EFF will be a strong anchor for
macroeconomic stabilization. Its policy requirements are fairly
unambitious relative to other IMF programs and in light of the
economy's deep imbalances, but it faces heightened risk nonetheless
from weak political support and spill-overs from the Russia-Ukraine
war.

Political Tensions: Governability risks persist after the 2021
midterm elections, which resulted in the Frente de Todos
coalition's loss of its legislative majority, and stoked tensions
between its moderate and leftist factions. President Alberto
Fernandez's government secured legislative approval of the EFF
despite opposition from coalition leftists, and opposition support
pertained only to its financing, but not its economic plans,
highlighting implementation risks.

Weak External Liquidity: Central bank (BCRA) reserves have remained
under pressure despite a current account surplus (1.4% of GDP in
2021), as strict capital controls have discouraged inflows and
reduced but not fully staunched outflows. The EFF targets a USD5.8
billion increase in net international reserves (NIR) in 2022,
which, considering USD4.4 billion in program funds that count
toward the goal and losses in Q1, requires USD4.5 billion in
accumulation in the rest of the year.

To improve FX dynamics the BCRA has quickened the pace of peso
depreciation and lifted interest rates; however, it remains unclear
how effective these efforts will be, particularly as higher
inflation dampens their impact. The net impact for reserve
accumulation of sharply higher prices for agricultural exports and
fuel imports is uncertain.

High, Rising Inflation: Inflation rose to 52.3% yoy in February,
one of the highest among Fitch-rated sovereigns, as the global
commodity price shock has compounded inertial domestic pressures,
prompting tightening of price controls. Fitch expects it to rise to
60% by year-end. The BCRA has limited flexibility to contain
inflation, as steep rises in the policy rate (still negative in ex
ante real terms after 650bp in hikes) would further lift its
already high quasi-fiscal deficit and debt, while slower peso
depreciation would complicate reserve accumulation. The EFF targets
phase-out in BCRA financing to the treasury, but does not impose a
strict monetary anchor.

Gradual Fiscal Consolidation: The federal government primary
deficit fell to 3.0% of GDP in 2021 from 6.4% in 2022, and the EFF
targets further reduction to 2.5% in 2022 and 0% by 2025. Fitch
projects roll-off of pandemic spending and high inflation (which
postpones the recovery in backward-indexed pensions) will deliver
the modest consolidation targeted for 2022, but sharply higher gas
prices lower the savings achievable from planned energy subsidy
cuts. Consolidation will become harder before the 2023 elections,
and key consolidation measures envisioned in the EFF will be
politically challenging (cuts in other subsidies, provincial
transfers) or technically difficult (revenue gains from tax
administration).

Weaning Off Monetary Financing: The government has relied heavily
on the BCRA for financing in recent years, but must fully phase
this out by 2024. Fitch estimates this will leave the government
with local market funding needs of 2.0% of GDP in 2022, and
2.5%-3.0% in 2023-2024, which is roughly in line with prior years.
Any shortfall of expected multilateral loans or fiscal slippage
could leave a larger market funding requirement that may be
difficult to fill.

Market Access Elusive: Debt service on restructured hard-currency
bonds is low through 2024, but will rise markedly starting in 2025,
and EFF repayments will begin in 2026. Argentina's ability to honor
these payments and avert default or another restructuring will
hinge on its ability to recover market access, because the reserve
build-up targeted in the EFF is insufficient to pay them off
outright. External bond spreads currently above 1700bp signal
persisting skepticism around sovereign creditworthiness and the
high compliance risks of the EFF. Prospects for regaining market
access are unlikely to become any clearer until after the 2023
elections when policy plans and their credibility are reassessed.

Debt Sustainability Risks: Central government debt fell sharply to
79.9% of GDP in 2021 from 102.8% in 2020, below its 2019 level
(88.8%); however, this mainly reflected massive real appreciation
of the peso (i.e. depreciation that was below half of inflation and
an even higher GDP deflator). A large fiscal adjustment is still
needed to ensure debt sustainability, which is sensitive to erratic
macro variables (growth, inflation, exchange rate). Consolidated
general government debt of 75.6% of GDP in 2021 is moderately above
the 69.1% 'B'/'C'/'D' ratings median. However, the foreign-currency
component is large (42% of GDP), and use of the stronger official
exchange rate flatters solvency metrics.

Recovery Set to Slow: The economy rebounded by 10.3% in 2021,
nearly recovering from the 9.9% contraction in 2020, but faces a
difficult 2022. Fitch projects real GDP growth of 3.0% in 2022 that
is equivalent to statistical carryover from 4Q21, signaling an
expectation that the recovery will stall over the course of 2022
amid eroding real incomes, FX shortages, and policy tightening.
Fitch expects growth to return to a slow pace of 1.5%-2.0% after
2022 in the absence of a structural reform agenda to address
longstanding competitiveness issues, and failure to improve the
policy mix could keep it on the even weaker and erratic trend of
the past decade.

ESG - Governance: Argentina has an ESG Relevance Score (RS) of '5'
for both Political Stability and Rights and for the Rule of Law,
Institutional and Regulatory Quality and Control of Corruption.
These scores reflect the high weight that the World Bank Governance
Indicators (WBGI) have in Fitch's proprietary Sovereign Rating
Model. Argentina has a medium WBGI ranking at the 46th percentile,
balancing moderately high voice and accountability, a moderate
level of corruption, and a recent track record of peaceful
political transitions with weak institutional capacity and uneven
application of the rule of law.

RATING SENSITIVITIES

Factor that could, individually or collectively, lead to negative
rating action/downgrade:

-- Public Finances: Signs of probable default to private
    creditors, including intensification of financing strains that
    increase risks of and incentives for the sovereign to miss,
    unilaterally reprofile, or renegotiate upcoming bond
    repayments.

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

-- External Finances: A sustained build-up in central bank
    international reserves supported by credible policy
    adjustments;

-- Public Finances: Implementation of a credible fiscal
    adjustment that puts government debt/GDP on a downward path
    and materially improves access to market financing;

-- Macro: Greater confidence in a macroeconomic plan that could
    support a post-pandemic economic recovery and improve
    macroeconomic stability.

SOVEREIGN RATING MODEL (SRM) AND QUALITATIVE OVERLAY (QO)

Fitch's proprietary SRM assigns Argentina a score equivalent to a
'B-' Long-Term Foreign Currency IDR. However, in accordance with
its rating criteria, Fitch's sovereign rating committee has not
utilized the SRM and QO to explain the ratings in this instance.
Ratings of 'CCC+' and below are instead guided by the rating
definitions.

Fitch's SRM is the agency's proprietary multiple regression rating
model that employs 18 variables based on three-year centered
averages, including one year of forecasts, to produce a score
equivalent to a Long-Term Foreign Currency IDR. Fitch's QO is a
forward-looking qualitative framework designed to allow for
adjustment to the SRM output to assign the final rating, reflecting
factors within Fitch's criteria that are not fully quantifiable
and/or not fully reflected in the SRM.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Sovereigns, Public Finance
and Infrastructure 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 three 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

Argentina has an ESG Relevance Score of '5' for Political Stability
and Rights as World Bank Governance Indicators have the highest
weight in Fitch's SRM and are therefore highly relevant to the
rating and a key rating driver with a high weight. As Argentina has
a percentile rank below 50 for the respective Governance Indicator,
this has a negative impact on the credit profile.

Argentina has an ESG Relevance Score of '5' for Rule of Law,
Institutional & Regulatory Quality and Control of Corruption as
World Bank Governance Indicators have the highest weight in Fitch's
SRM and are therefore highly relevant to the rating and are a key
rating driver with a high weight. As Argentina has a percentile
rank below 50 for the respective Governance Indicators, this has a
negative impact on the credit profile.

Argentina has an ESG Relevance Score of '4[+]' for Human Rights and
Political Freedoms as the Voice and Accountability pillar of the
World Bank Governance Indicators is relevant to the rating and a
rating driver. As Argentina has a percentile rank above 50 for the
respective Governance Indicator, this has a positive impact on the
credit profile.

Argentina has an ESG Relevance Score of '4' for Creditor Rights as
willingness to service and repay debt is relevant to the rating and
is a rating driver for Argentina, as for all sovereigns. As
Argentina has a fairly recent restructuring of public debt in 2020,
this has a negative impact on the credit profile.

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
----                   ------               -----
Argentina

                  LT IDR CCC Affirmed       CCC
                  ST IDR C Affirmed         C
                  LC LT IDR CCC Affirmed    CCC
                  LC ST IDR C Affirmed      C
Country Ceiling   B- Affirmed               B-



=============
B O L I V I A
=============

BOLIVIA: To Raise Gas Prices for Brazil after Deal with Argentina
-----------------------------------------------------------------
Arkady Petrov at Rio Times Online reports that Bolivia is seeking
to negotiate better payment terms with Brazil for the sale of gas,
having recently reached an agreement with Argentina that would
bring the country more than US$100 million.

The Minister of Hydrocarbons and Energy, Franklin Molina Ortiz,
said that after the bilateral meeting between President Luis Arce
and his Argentine counterpart Alberto Fernandez, an agreement was
reached that guarantees gas exports to the neighboring country for
the winter and "the best price in history" for Bolivia to sell
additional quantities of this resource, according to Rio Times
Online.

Bolivian gas will become a scarce commodity in the coming years,
presenting a challenge for Argentina and Brazil, the report relays.
The countries will need to replace lost import volumes and make up
for a larger supply gap as domestic production will be
insufficient, the report adds.

The Troubled Company Reporter-Latin America reported on
March 4, 2022, that S&P Global Ratings assigned its 'B+'
issue rating to Bolivia's US$850 million senior unsecured
notes. The 7.5% notes will mature in 2030. The rating on
the notes is the same as the long-term foreign
currency sovereign credit rating on Bolivia.



===========
B R A Z I L
===========

ANDRADE GUTIERREZ: Fitch Affirms 'RD' LT IDRs
---------------------------------------------
Fitch Ratings has affirmed Andrade Gutierrez Engenharia S.A.'s
(AGE) Long-Term Foreign and Local Currency Issuer Default Ratings
(IDRs) at 'RD' and the Long-Term National Scale Rating at
'RD(bra)'. Fitch has also affirmed Andrade Gutierrez International
S.A.'s (AGI) senior secured notes due 2021 at 'C'/'RR6' and senior
secured notes due 2024 at 'C'/'RR4'. The notes are fully guaranteed
by AGE.

The ratings of AGE reflect the coupons payment default by AGI on
its USD480 million bond due December 2024, totaling USD69 million,
and the missed principal payment of USD43 million of the 2021 bond
that expired last August.

KEY RATING DRIVERS

Missed Principal and Coupon Payments: AGE and AGI have about USD112
million of missed coupon and principal payments, and Andrade
Gutierrez Participaçoes S.A.'s (AGPar - AGE's sister company)
coupon and principal payment of BRL438 million originally due in
December 2021 are in standstill. In September 2021, AGE's total
adjusted debt was BRL3.7 billion, including AGI's debt guaranteed
by AGE, and AGPar was BRL2.2 billion. Andrade Gutierrez Group's
total secured debt totaled BRL4.6 billion in September 2021, of
which 89% was guaranteed by the 14.9% stake in CCR S.A.
(AA+[bra]/Negative) owned by AGPar. CCR shares guarantee AGPar's
first lien debentures and part of AGI's notes. AGI's 2024 bond
counts with 109.6 million CCR shares as guarantee.

Potential Asset Sale: On March, 23 2022, Votorantin S.A and Itausa
S.A. announced that Andrade Gutierrez group accepted the BRL4.1
billion non-bidding offer for AGPar's stake on CCR. Net proceeds
from the sale should allow the group to materially reduce its total
consolidated indebtedness. The group, however, is expected to
continue heavily dependent on the recovery of AGE's cash flow
generation capacity.

High Business Challenges: The operating environment for Engineering
and Construction (E&C) companies in Brazil remains uncertain in the
short term. Presidential and governor elections in October,
expectations of GDP growth of 0.5% in 2022, and restricted credit
lines shall not soften contractors' vulnerable position. GDP is
expected to grow 1.8% in 2023 and the pipeline of contracts appears
more favorable, with the ongoing concession auctions of airports,
toll roads, water & sewage and transmission lines, among others
infrastructure projects. The hike in commodity prices may also
favor traditional exporters to unlock their infrastructure
agendas.

Uncertainties remain high for AGE's EBITDA recovery and capacity to
turnaround its operations and replenish the backlog on a
sustainable basis. During the LTM ended Sept. 30, 2021, EBITDA was
negative BRL312 million and cash flow from operations was BRL15
million, benefited by advance payments from clients. AGE's backlog
as of September 2021 was BRL9.2 billion, up 8% compared with
December 2020. AGE is also exposed to foreign exchange risk, as
about 91% of total debt, including AGI's bonds, are denominated in
foreign currency.

DERIVATION SUMMARY

AGE's 'RD' rating reflects the payment default of three coupons of
AGI's senior secured notes due December 2024, and the principal of
senior unsecured notes due August 2021, which are fully and
irrevocably guaranteed by the company.

KEY ASSUMPTIONS

Fitch's key assumptions within the rating case for the issuer
include:

-- Backlog of about BRL9 billion in 2021 and 2022;

-- Negative EBITDA of BRL307 million in 2021 and positive BRL115
    million in 2022;

-- Capex of BRL105 million in 2021 and BRL69 million in 2022;

-- Dividends of BRL25 million in 2021 and BRL85 million in 2022
    to service the fines of the plea bargain agreement.

Key Recovery Rating Assumptions

The recovery analysis assumes that AGE would be reorganized as a
going concern in bankruptcy rather than liquidated. Fitch has
assumed a 10% administrative claim.

Going Concern Approach

-- AGE's going concern EBITDA is BRL115 million, reflecting the
    2022 revenue forecast and 5.0% margin, plus dividends received
    from unconsolidated investments of BRL19 million. The EBITDA
    forecast still reflects the limited growth on the backlog and
    the lack of cost dilution;

-- Fitch has not considered gains from the potential collection
    of past due receivables and legal claims, as they would
    distort recurring EBITDA;

-- A 5x enterprise value multiple is used to calculate a post
    reorganization valuation, in line with the industry's
    historical multiples;

-- The approach considers AGI 2024's bonds first lien guarantee
    of 109.6 million CCR shares at a price of BRL13.75;

-- For the 2024 senior secured bond, the Recovery Rating is
    capped at 'RR4', as Brazil is classified as a Group D country
    by Fitch;

-- For the 2021 senior secured bond, the Recovery Rating is
    'RR6'.

Liquidation Value Approach

Fitch excluded the liquidation value approach because Brazilian
bankruptcy law tends to favor the maintenance of a business to
preserve direct and indirect jobs. Moreover, in extreme cases in
which liquidation was necessary, asset recovery has been very
difficult for creditors.

RATING SENSITIVITIES

Factor that could, individually or collectively, lead to positive
rating action/upgrade:

-- Amortization of past due coupons and principal or the
    successful conclusion of debt restructuring.

Factor that could, individually or collectively, lead to negative
rating action/downgrade:

-- Filing for bankruptcy protection, liquidation, or any other
    formal winding-up procedure would lead to a downgrade of the
    corporate ratings to 'D'.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate
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.

LIQUIDITY AND DEBT STRUCTURE

Weak Liquidity: AGE's liquidity is weak and has been negatively
affected by the pandemic. On Sept. 30, 2021, AGE had cash and
marketable securities of BRL363 million and total debt was BRL3.7
billion, including AGI's bonds, of which BRL641 million was due in
the short term and includes AGI's USD43 million senior unsecured
notes that expired in August 2021.

AGE's total debt mainly consisted of AGI's 2021 and 2024 bonds,
totaling BRL3.2 billion (86%), working capital lines of BRL408
million (11%) and permanent asset loans and net other loans of
BRL113 million (3%). AGPar total debt of BRL2.2 billion mainly
consists of the first, fourth, fifth and sixth debentures
issuances; the last three guaranteed by CCR shares.

ISSUER PROFILE

Brazilian-based Andrade Gutierrez Engenharia S.A. (AGE) is the
engineering & construction (E&C) unit of the ultimate parent
Andrade Gutierrez S.A. (AGSA), one of the largest infrastructure
groups in Brazil. AGE operates in Latin America, Africa, and Middle
East and had a backlog of BRL9.2 billion in September of 2021. The
group uses Andrade Gutierrez International S.A. (AGI) as an
investment vehicle for bond issuances that are fully and
irrevocably guaranteed by AGE. AGSA also counts with an investment
branch, spearheaded by Andrade Gutierrez Participações S.A.
(AGPar), which owns stakes in infrastructure concessions, such as
toll roads and electric utilities in Brazil.

SUMMARY OF FINANCIAL ADJUSTMENTS

Fitch considers the coupon payments of the off-balance sheet debt
as operational cash flow. At the same time, the fines of the
leniency agreement are considered dividends.

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
----                 ------               --------  -----
Andrade Gutierrez Engenharia S.A.

                 LT IDR RD Affirmed                 RD
                 Natl LT RD(bra) Affirmed           RD(bra)

Andrade Gutierrez International S.A.

senior secured   LT C Affirmed               RR4    C
senior secured   LT C Affirmed               RR6    C

NATURA &CO HOLDING: Fitch Affirms 'BB' LT IDRs, Outlook Positive
----------------------------------------------------------------
Fitch Ratings has affirmed Natura&Co Holding S.A. (Natura)'s
Long-Term Foreign Currency (FC) and Local Currency (LC) Issuer
Default Ratings (IDRs) at 'BB' and its National Scale Rating at
'AA+(bra)'. Fitch has also affirmed Natura Cosmeticos S.A.'s FC and
LC IDR at 'BB', its unsecured notes at 'BB' and its National Scale
Rating at 'AA+(bra)'. Fitch has affirmed Avon Products, Inc., its
unsecured notes and Avon International Operations Inc. at 'BB'. The
Rating Outlooks remains Positive.

Natura's 'BB' ratings reflect its solid business position, large
and diversified asset base, strong capital structure, and
challenges with Avon. Inputs cost pressures, supply chain
constrains and rising inflation will impact profitability in the
short term, but Natura's ratings have some headroom. Ongoing
synergies and lower cash outflows should favor results. The
Positive Outlook reflects Natura's credit profile improvements in
the next 18-24 months due to integration and more steady cash flow,
and net adjusted leverage below 2.5x, with no refinancing risks.

KEY RATING DRIVERS

Consolidated Approach: Natura wholly owns Natura Cosmeticos S.A.
and Avon Products, which are separate legal entities. Fitch
assesses the group on a consolidated basis, given the strong
operational and strategic incentives, centralized treasury,
substantial asset contribution via expected recurring synergies
and, the tangible financial support in the form of payment of
Avon's secured notes and inter-company loans. The cross-border debt
issuances by Natura Cosmeticos with a guarantee from Natura and
others cross defaults clauses supports the consolidated approach.

Ratings Not Capped by Brazil's Country Ceiling: Natura has a
diversified portfolio of operations, with some hard currency EBITDA
from its assets abroad relative to its interest expenses in hard
currency, therefore, Natura's ratings are not constrained by
Brazil's 'BB' Country Ceiling, per Fitch's "Non-Financial
Corporates Exceeding the Country Ceiling Rating Criteria".

Other considerations increasing Natura's ability to mitigate
transfer and convertibility risks include cash held abroad and
generated abroad in several countries, as well as a stand-by credit
facility of USD625 million. Brazil accounted for 26% of revenue in
2021, followed by EMEA (excluding the U.K.) at 19%, the U.K.at 10%,
Mexico at 10%, Asia at 9%, the U.S. and Canada at 6%, other South
America at 17% and Oceania at 3%. Natura's revenues in Russia and
Ukraine were lower than 5% of consolidated revenue and 3% of EBITDA
in 2021, including The Body Shop operations via head franchisees.

Large and Diversified Business Scale: The acquisition of Avon
significantly increased Natura's business scale, making it the
world's fourth-largest pure beauty company. The company brings a
large consultant base and opportunities to amplify its product
portfolio and market presence in Latin America. The combined entity
benefits from up-selling opportunities in terms of channels and
brands. Synergies are projected to be captured mainly in Brazil and
Latin America as it leverages its manufacturing and distribution
capabilities. Natura estimates recurring gains of around USD350
million-USD450 million to be fully captured by 2024. Around USD195
million has been captured during fiscal 2021.

Ongoing Execution Risk: Natura faces the challenge of integrating
Avon's operations in Latin America as well as its global
operations. During the past quarters, the company has been
improving Avon's profitability. The strong recovery of 4Q21 should
not sustain during 1H22, but the decline trend in the number of
Avon reps in Brazil seems to have reached an inflection point in
last October and it should help to sustain a recovery by YE 2022.
Natura has the challenge to move forward with its strategy to move
from a direct sales single-model, with declining trends in certain
markets, to omnichannel.

Natura has invested heavily in digitalization and increasing its
online sales, which have more than doubled. During 2021, 51.5% of
total sales were using digital platform. Natura is expected to
maintain a strong pipeline of innovation to keep up with
fast-changing beauty trends and to digitalize to engage more
directly with end consumers. Fitch's base case incorporates average
annual capex of around BRL1.7 billion in2022-2023, from BRL675
million in 2020. In a weaker EBITDA generation environment, Fitch
expects Natura to reduce capex and dividends to limit deterioration
in FCF and maintain leverage around 2.5x in the medium term.

Challenging Macroeconomic Headwinds in the Short-Term: Natura is
expected to face negative headwinds related to continued erosion of
disposable income caused by high inflation and lower government
income support, as well as in terms of cost structure and rising
competition (substitute products in mass retail channel and a
likely increase in imported products with BRL appreciation) during
most of 2022. As result, Fitch expects some deterioration in
operating margins from previous forecasts that will be partially
offset by the ongoing capture of synergies.

Fitch expects adjusted EBITDAR margins to range 10.6%-11.7% for
2022-2023. This compares with 10.3% in 2021 and 11.4% in 2020, and
around 13% from previous forecast. Natura's adjusted EBITDAR is
forecasted to be around BRL4.5 billion for 2022 and BRL5.2 million
in 2023.

Deleveraging Trend to 2023: Fitch's rating case forecasts Natura's
net adjusted debt/EBITDAR to decline 2.6x (2.7x in 2021) and to
around 2.1x-2.4x during 2023-2024. This represents a significant
improvement from the pro forma adjusted leverage after the merger
with Avon of 4.5x.

DERIVATION SUMMARY

Natura's ratings reflect the combined credit quality of Avon and
Natura. Natura's current adjusted net leverage anticipated is
strong for the rating category and incorporates execution risks
related to the integration of Avon. Natura has a solid business
position in the CF&T industry, underpinned by strong brand
recognition, large scale, a competitive cost structure and a large
direct-sales structure. The operations of The Body Shop
International Limited and Emeis Holding Pty Ltd. Aesop further
complement the company's product portfolio and broad geographical
diversification. Natura is challenged to adapt its business model
to an omnichannel strategy and boost its digital platform while
integrating Avon.

In terms of comparable companies, Fitch rates Oriflame Investment
Holding Plc 'B'; it also operates in the direct-selling beauty
market. Natura has a stronger business and financial profile than
Oriflame, reflected in the higher rating. In Brazil, Natura also
faces strong competition from a local participant, O Boticario (not
rated), which has a record of maintaining a solid credit and
business profile, and a strong brand.

KEY ASSUMPTIONS

Fitch key's assumptions within its rating case for the issuer
include:

-- Fitch expects Natura's revenue to grow around 5%-6% during
    2022-2023.

-- Consolidated EBITDAR margins around 10.6% in 2021 and
    improving to around 13.5% in 2022.

-- Capex increase to around BRL1.5 billion in 2022 and BRL1.7
    billion in 2022-2023 to support the digitalization and
    innovation process.

-- Dividends of USD180 million in 2022 and around 30% of net
    income afterwards.

-- Natura to maintain its proactive approach on refinancing its
    short-term debt.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

-- Consolidated EBITDAR Margins above 14% on consistent basis.

-- Consolidated net adjusted debt/EBITDAR ratio below 2.5x on a
    consistent basis.

-- Successful ongoing refinancing strategy with no major debt
    maturities within two to three years.

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

-- Consolidated EBITDAR margins declining to below 9% on a
    recurrent basis.

-- Consolidated net adjusted leverage consistently above 3.5x
    from 2021 on.

-- Competitive pressures leading to severe loss in market-share
    for either Natura and Avon or a significant deterioration in
    its brands reputation.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate
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.

LIQUIDITY AND DEBT STRUCTURE

Strong Liquidity: Natura has maintained strong liquidity and solid
access to credit markets. The company had BRL5.9 billion in cash
and marketable securities at YE 2021, with BRL945 million of
short-term debt. Cash is sufficient to support debt amortization
until 2027. Natura's liquidity is further enhanced by USD625
million revolving credit facility due 2024. In March 2022, Natura
drew down USD200 million.

Natura had total debt of around BRL17.1 billion at YE 2021,
including Fitch's adjusted leasing obligations of BRL4.8 billion.
Natura's debt mainly consists of BRL7.9 billion at Natura
Cosmeticos net of derivatives and BRL4.4 billion at Avon.
Cross-border bonds (76%), local debentures (16%) are the company's
main debt. Natura& Co holding has no debt as of Dec. 31, 2021.

Fitch expects Natura to remain proactive in its liability
management strategy to avoid exposure to high refinancing risks in
the medium term. The company will need to continue to access credit
markets in the short to medium term to extend its debt maturities.
Natura faces long-term debt amortization of BRL945 million in 2022,
BRL2.8 billion in 2023 (including Avon's bonds), BRL2.2billion in
2024 and BRL6.3 billion from 2025 onward. The company's refinancing
risks have diminished, as it used around BRL4.7 billion (USD900
million) of the follow-on process to prepay Avon's 2022 secured
bonds.

ISSUER PROFILE

Natura&Co is composed by four iconic beauty companies: Natura, The
Body Shop, Aesop and Avon. It is the fourth-largest pure play
beauty group in the world with a 2.0% global market share in 2021
as a result of its sizeable operations in Latin America, Europe,
North America, Asia Pacific and Oceania.

DEBT                   RATING                   PRIOR
----                   ------                   -----
Natura Cosmeticos S.A.

                   LT IDR BB Affirmed           BB
                   LC LT IDR BB Affirmed        BB
                   Natl LT AA+(bra) Affirmed    AA+(bra)
senior unsecured   LT BB Affirmed               BB

Avon Products, Inc.

                   LT IDR BB Affirmed           BB
senior unsecured   LT BB Affirmed               BB

Avon International Operations, Inc.

                   LT IDR BB Affirmed           BB

Natura &Co Holding S.A.

                   LT IDR BB Affirmed           BB
                   LC LT IDR BB Affirmed        BB
                   Natl LT AA+(bra) Affirmed    AA+(bra)



=============
G R E N A D A
=============

GRENADA: Setting Up Committee to Review Ruling On Pension Issue
---------------------------------------------------------------
RJR News reports that a committee is to be appointed to review the
impact of the High Court ruling last month that could result in the
Grenadian Government having to pay a significant amount of money to
public servants who were disqualified from receiving a pension
following the enforcement of the Pension Disqualification Act in
1983.

In addition, Grenada Prime Minister Dr. Keith Mitchell says the
committee will be making recommendations on the best working
solution to the financial challenge that has arisen because of the
judgment, according to RJR News.

The payment is estimated to be more than XCD1 billion which will
come from the Consolidated Fund, the report relays.




=================
G U A T E M A L A
=================

GUATEMALA: Outlook Subject to Elevated External Risks, IMF Says
---------------------------------------------------------------
The International Monetary Fund staff issued a concluding statement
of the 2022 Article IV Mission for Guatemala which states that:

The Guatemalan economy rebounded strongly in 2021 and should return
to its pre-pandemic growth trend in 2022. The banking sector
remains solid overall with pandemic-related measures appropriately
phased out last year. The outlook thus remains broadly positive but
is subject to elevated external risks. Sustaining the recovery and
addressing longstanding social and infrastructure needs is
paramount to boost inclusive growth. Continuing reforms to improve
the business climate are essential to further strengthen the
outlook and the resilience to various shocks (including climate
change-related).

In the near term, monetary policy should remain data-driven to
maintain inflation expectations anchored. Greater exchange rate
flexibility can help absorb shocks. The fiscal stance is
appropriate, and policy should remain agile to shield the
vulnerable against possible further acute food and energy price
increases.
In the medium-term, fiscal space should be created to close social
and infrastructure gaps within a sound medium-term fiscal
framework. Building on recent digitalization efforts that have
improved transparency and efficiency, further strengthening the
institutional capacity to support a result-based approach would
help attain the authorities' targets embodied, for example, in the
2020-24 General Policy of the Government. Ongoing efforts on
transparency and governance, improvements in infrastructure,
education and financial inclusion, as well as initiatives to favor
entrepreneurship and address labor market informality should
continue in order to improve inclusive growth.

Strong Economic Momentum amid Significant Development Needs and
Elevated Risks

1. The Guatemalan economy was remarkably resilient during the
pandemic, but long-standing social and infrastructure gaps remain.
The authorities' swift, comprehensive and coordinated policy
response in 2020 laid the foundations for the strong recovery. Also
supported by a favorable external environment (including the
continued inflow of family remittances), real GDP growth is
estimated at around 8 percent in 2021 while inflationary pressures
were mostly contained, as temporary pandemic and climate-related
factors in 2020 faded rapidly. Significant tax administration gains
reduced the overall fiscal balance and created fiscal space, while
monetary policy remained accommodative. Despite such resilience,
social indicators likely deteriorated during the pandemic, as was
the case in other countries, and longstanding infrastructure and
social gaps persist.

2. The strong recovery is set to continue . Growth is projected at
around 4 percent in 2022, supported by fiscal and monetary
policies, continued recovery of lagging sectors (such as tourism),
and a resilient U.S. economy-spurring strong remittances. Over the
medium-term, growth is expected close to potential (around 3½
percent). Inflation is projected to increase in 2022 in line with
global inflationary pressures but should remain within the target
of the Monetary Authority. The current account surplus is expected
to decline, reflecting a higher import bill amid elevated global
commodity prices, while international reserves are expected to
continue to exceed comfortable levels.

3. There are significant, mostly external, downside risks. The
Guatemalan economy faces these risks from a position of strength.
Nonetheless, the outlook is subject to unusually high uncertainty,
mostly stemming from external factors, including from new COVID-19
variants. De-anchoring of inflation expectations in advanced
economies, continued global supply chain disruptions and potential
changes to investor risk sentiment could lead to an abrupt
tightening of global financial conditions. Elevated and volatile
commodity prices, amplified by the war in Ukraine, introduce new
uncertainty and could accelerate global inflationary pressures and
slowdown external demand. Price pressures on basic goods could
affect the most vulnerable.

         Building Upon the Post-COVID Recovery. . . .

4. The authorities' policy mix is well placed to support the
recovery in 2022. With a well-entrenched recovery, near-term
policies will need to be carefully calibrated to sustain economic
momentum while remaining agile to evolving macroeconomic and social
conditions.

Monetary policy normalization must be carefully calibrated amid
tighter global financial conditions, and remain data driven to
continue anchoring inflation expectations. A clear and consistent
communication strategy will help guide market expectations. Greater
exchange rate flexibility can also help absorb external shocks.

The fiscal stance embodied by the approved 2022 budget is
appropriate. Announced initiatives to mitigate the impact of higher
import prices using fiscal space created in 2021-including gas,
oil-related products, small farmers', and electricity subsidies-are
temporary and should consistently aim to target the vulnerable. The
authorities should stand ready to temporarily re-deploy some of the
2020 social measures if economic conditions worsen.

. . . . While Addressing Social and Infrastructure Gaps through
Fiscal Policy

5. Accelerating efforts to address longstanding social gaps is
crucial . Further increasing tax revenues and improving spending
efficiency to create fiscal space is necessary to close these gaps.
In this regard, staff welcomes recent tax administration
improvements (customs, tax administration enforcement, and
digitalization such as electronic invoicing or tax declaration
forms that have facilitated audits). These efforts should be
complemented by rationalizing tax incentives and exemptions. Staff
welcome the pilot program to collect data on poverty, nutrition,
and housing conditions on six municipalities and encourage its
expansion to enhance the scope and targeting of social transfers.
The authorities are also conducting a household survey which should
allow them to better gauge social needs and calibrate Guatemala's
social safety net. Meanwhile, priority social spending could be
scaled up using existing fiscal space and leveraging upon the
experience gained with the Bono Familia program.

6. The authorities should enhance the infrastructure governance
framework with a view to increasing high-quality investments and
achieving long-term inclusive development . Successful planning,
allocation, and implementation phases of public investment
management demand a clear regulatory and institutional framework,
robust coordination across levels of governments and sustainable
performance throughout the life cycle of the asset. Building on
recent transparency and digitalization achievements, staff
recommend the authorities participate in the IMF's Public
Investment Management Assessment (PIMA) program to establish a
standardized diagnostic of their investment framework along a set
of concrete recommendations. In this regard, the authorities of the
Ministry of Finance agree to participate in this program to improve
public investment planning in Guatemala with a focus on resilience.
In addition, while staff welcome the announcement of increasing the
infrastructure budget, the authorities could benefit from
strengthening their long-term strategic infrastructure vision with
a focus on projects with highest inclusive growth potential and
supported by a medium-term fiscal framework.

7. The long-standing and very prudent fiscal policy in Guatemala-a
result of policies adopted within the existing normative framework
and budget evaluation and programming-has supported macroeconomic
stability and allowed fiscal sustainability even without an
explicit fiscal anchor. Nevertheless, it is important to continue
making improvements in multi-annual budget planning to ensure that
the achievements made to date are maintained and to fortify the
provision of public goods and services that will contribute to
poverty reduction, as well as to the expansion and improvement of
productive infrastructure to strengthen the country's
competitiveness. On this regard, staff recommends technical
assistance to strengthen medium-term fiscal policy

                 Boosting Medium-Term Growth

8. The government rightly aims to enhance the business climate and
promote investment opportunities to boost economic growth. Reforms
improving the judiciary and legislative environment remain
important. In that regard, broad-based transparency and
digitalization efforts undertaken across the public administration
are welcomed. The passage of the law to facilitate insolvency
procedures should promote firm creation. Formalizing part-time
work-particularly important for female labor force
participation-could help lift formalization and create economic
opportunities. In addition, staff encourage the authorities to
expedite the implementation of the 2020-2024 General Policy of the
Government, and the Economic Recovery Plan. A results-based
approach could help ensure these and other efforts fully translate
into sustainable and concrete outcomes for all Guatemalans.

9. The banking system remains sound, but reforms to improve the
supervisory and regulatory framework should be expedited. The
amendments to the Banking and Financial Groups Law-which
incorporate international standards that support financial
stability-and the draft law on AML/CFT-which aligns with FATF
standards-are pending approval by Congress. Fintech can boost
inclusive growth and financial inclusion, even though they present
risks to the financial system. Nonetheless, they also imply risks
to financial stability if regulation and supervision are not up to
date with related current and future initiatives. Staff welcome the
preparation of the legal framework for Fintech and e-money to
address legal, supervisory, and regulatory challenges and encourage
their speedy implementation. In addition, the adoption of the new
Securities Market Law is also important to strengthen the necessary
foundations for the development of financial markets and, at the
same time, to strengthen the corresponding supervisory and
regulatory framework.

The mission would like to thank the Guatemalan authorities for
their cooperation and open discussions throughout our virtual visit
between March 28 to April 8.




===========
M E X I C O
===========

GRUPO KALTEX: S&P Cuts ICR to 'D' on Missed Sr. Sec. Notes Payment
------------------------------------------------------------------
On April 12, 2022, S&P Global Ratings lowered its long-term issuer
credit and issue-level ratings on Mexico-based textile and apparel
company, Grupo Kaltex S.A. de C.V. (Kaltex), to 'D' from 'CCC-',
and removed them from CreditWatch negative.

S&P doesn't assign an outlook to 'D' ratings, but it will assign a
forward-looking issuer credit and issue-level ratings on the
company following the resolution of its debt restructuring.

Kaltex didn't make principal payment on its $218 million
outstanding senior secured notes due April 11, 2022. The company
also announced that it intends to restructure its note's maturity
over the next weeks.

The downgrade to 'D' follows Kaltex's failure to make principal
payment on its $218 million outstanding senior secured notes on
April 11, 2022, although the company fully paid interest on this
debt on the same date.

The company announced it hired the investment bank, Benedetto,
Gartland & Company, Inc., to assist in debt restructuring process,
including facilitating discussions with an ad-hoc noteholders
group, as well as with third-party banks and other capital
providers. Although timing and final terms and conditions of the
notes' restructuring are unknown, S&P currently believes it is
probable that the company will make a partial distressed exchange
offer. S&P will assign a forward-looking issuer credit rating on
Kaltex after it completes its debt restructuring in the next few
weeks.



                           *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Latin America is a daily newsletter
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Chapman, Editors.

Copyright 2022.  All rights reserved.  ISSN 1529-2746.

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