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       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 27, 2022, Vol. 23, No. 78

                           Headlines



B R A Z I L

BANCO DO ESTADO DE SERGIPE: Moody's Cuts LT Deposit Ratings to Ba3
BRAZIL: Ceara to Advance Digital Transformation with $31M IDB Loan
GOL LINHAS: Enters Into a 10-Year Agreement With Mercado Libre
[*] BRAZIL: To Harvest Lower Sugarcane Crop due to Weather Problems


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Business Leaders Reject Called Walkout
[*] DOMINICAN REPUBLIC: IMF Sees 5% Economic Growth in 2022
[*] DOMINICAN REPUBLIC: To Implement 24% Construction Wage Hike


M E X I C O

MERCADO LIBRE: Increases its Electric Vans in Mexico by 1000%

                           - - - - -


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B R A Z I L
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BANCO DO ESTADO DE SERGIPE: Moody's Cuts LT Deposit Ratings to Ba3
------------------------------------------------------------------
Moody's Investors Service has downgraded all long-term ratings and
assessments assigned to Banco do Estado de Sergipe S.A. (Banese),
including the bank's long-term local and foreign-currency deposit
ratings to Ba3, from Ba2, as well as the baseline credit assessment
(BCA) to ba3, from ba2. The bank's long-term local and
foreign-currency counterparty risk ratings were also downgraded to
Ba2, from Ba1, as well as the counterparty risk assessments (CRA)
to Ba2(cr), from Ba1(cr). All short-term ratings and CRAs were
affirmed at Not Prime and Not Prime(cr). The rating outlook was
changed to stable, from negative.

RATINGS RATIONALE

The downgrade of Banese's BCA to ba3 reflects the deterioration in
asset quality and profitability metrics the bank has reported since
2019, following the adoption of a strategy to increase business
diversification by growing its portfolio of loans to small and
midsize companies in the State of Sergipe. During the
implementation of this strategy, the bank has focused on the
acceleration of loan growth, which has led to a rapid increase in
problem loans, particularly following the COVID-19 pandemic in
2020. In December 2021, Banese's problem loans accounted for 3.98%
of gross loans, up from 3.14% one year prior and well above the
2.2% industry average ratio at year-end 2021.

Moody's expect the bank's loan delinquency will continue to rise in
the next 12 to 18 months, pressured by the weak operating
environment in Brazil, especially in view of the negative effects
of prolonged inflation on households' income, as well as the drop
in companies' earnings volume stemming from lower business
activity. Negative pressure on asset quality will likely be
mitigated partially by a still adequate volume of loan loss
reserves, at 4.83% of total loans and 121% of problem loans as of
December 2021. Despite that, reserve coverage was below the range
of 150%-250% the bank reported between 2018 and 2020 and well below
the industry average of 244% as of December 2021.

In downgrading Banese's BCA to ba3, one notch below the median ba2
BCA in Brazil, Moody's also considered a more challenging scenario
for the bank's profitability in the next 12 months as a result of
stronger upward pressure on funding costs caused by the rapid hike
in Brazil's policy rates on Banese's short-term floating-rate
funding structure than on the bank's revenue origination from its
long-term loan book, comprised mostly of fixed-rate operations.
Because of the long-term nature of the bank's portfolio of payroll
loans and mortgage financing, at 63% and 12% of gross loans,
respectively, in year-end 2021, it will take longer time for Banese
to reprice its loans at higher interest rates. In December 2021,
the bank's net income to tangible banking assets was 1.1%, still
below the average ratio of 1.6% from 2017 to 2019. The intense
competition in the payroll loan segment will also likely weigh on
Banese's net interest margins in 2022.

Banese's capitalization, measured by Moody's ratio of tangible
common equity to adjusted risk weighted assets, declined to 8.2% in
December 2021, from its 9%-9.5% historical average between 2019 and
2020, as a result of a rapid expand of its loan book in the past
three years. Moody's expect the bank's capital ratio will face
further negative pressure in 2022, particularly if Banese carries
out plans to grow its loan book at double-digit rates.

Banese's strong liquidity and stable core deposit funding structure
are positive for the bank's credit profile. In December 2021, 68%
of Banese's funding mix comprised low-cost demand, savings and
judicial deposits, primarily from individuals and local companies.
The ba3 BCA also incorporates Banese's entrenched banking franchise
in its regional market, the State of Sergipe, supported by a steady
deposit base and a relevant market share in retail lending
operations, which is largely focused on offering financial products
to the state employees.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

Banese's BCA could be upgraded if the bank reports consistent
improvement of its profitability and asset quality metrics in the
next 12 to 18 months, while its continues to increase business
diversification.

Conversely, the bank's BCA could face downward pressure if there is
continued deterioration in asset quality metrics as a result of
aggressive loan growth followed by an increase in loan losses,
which could drain on capital.

METHODOLOGY USED

The principal methodology used in these ratings was Banks
Methodology published in July 2021.

LISTED OF AFFECTED RATINGS AND ASSESSMENTS

The following ratings and assessments of Banco do Estado de Sergipe
S.A were downgraded:

Long-term local currency bank deposit rating: to Ba3 from Ba2,
outlook to stable from negative

Long-term foreign currency bank deposit rating: to Ba3 from Ba2,
outlook to stable from negative

Long-term local currency counterparty risk rating: to Ba2 from
Ba1

Long-term foreign currency counterparty risk rating: to Ba2 from
Ba1

Long-term counterparty risk assessment: to Ba2(cr) from Ba1(cr)

Baseline Credit Assessment: to ba3 from ba2

Adjusted Baseline Credit Assessment: to ba3 from ba2

The following ratings and assessments of Banco do Estado de Sergipe
S.A were affirmed:

Short-term local currency bank deposit rating at Not Prime

Short-term foreign currency bank deposit rating at Not Prime

Short-term local currency counterparty risk rating at Not Prime

Short-term foreign currency counterparty risk rating at Not Prime

Short-term counterparty risk assessment at Not Prime(cr)

Outlook, changed to stable from negative

BRAZIL: Ceara to Advance Digital Transformation with $31M IDB Loan
------------------------------------------------------------------
The Brazilian state of Ceara will advance its government's digital
transformation to increase citizen satisfaction and generate
savings in the use of public services through a $31 million loan
approved by the Inter-American Development Bank (IDB).

This is the third individual operation and the first to be carried
out by a state executive power under the Conditional Credit Line
for Investment Projects known as "Brasil Mais Digital." The $1
billion credit line was approved by the IDB in April 2021 to
encourage the country's digital transformation.

The new credit will finance a program to broaden access to digital
public services, enhance the effectiveness and efficiency of public
management through digital transformation, and improve digital
connectivity in the state of Ceara.

To this end, the loan will help automatize and broaden the offer of
digital public services, structuring it through a one-stop portal.
It will also enhance transparency, participation, and improve the
quality of digital services through control social tools.

The initiative will also support the construction and launch of a
governmental innovation center to promote public-private
cooperation and the digital economy, developing public employees'
digital skills, and a program to enhance these skills among female
civil servants.

The loan will also help increase connectivity by enhancing digital
infrastructure, financing the digital transformation of the state
Public Ministry, and strengthening management of the so-called
Cinturon Digital de Ceara, or Ceara digital belt, created in 2007
to extend coverage and improve the quality of the state's
connectivity, especially in the interior regions.

The project will directly benefit citizens and businesses that rely
on state services online through greater availability and
efficiency of digital public services, including time savings and
lower costs.

The state's public employees will also benefit from the enhancement
of their digital skills and strengthening of the state's agencies,
especially the Public Ministry, thanks to an increase in its
services' effectiveness and efficiency.

This operation is part of Vision 2025 - Reinvesting in the
Americas: A Decade of Opportunity, created by the IDB to achieve
recovery and inclusive growth in Latin America and the Caribbean in
the areas of digital economy, gender and inclusion, and climate
change.

The $31 million IDB credit has a 25-year maturity, a grace period
of five and a half years, an interest rate based on SOFR, and $7.75
million in local counterpart funds.

As reported in the Troubled Company Reporter-Latin America on April
15, 2022, Moody's Investors Service has affirmed the Government of
Brazil's long-term Ba2 issuer ratings and senior unsecured bond
ratings, (P)Ba2 senior unsecured shelf ratings and maintained the
stable outlook.



GOL LINHAS: Enters Into a 10-Year Agreement With Mercado Libre
--------------------------------------------------------------
Rio Times Online reports that Mercado Libre CEO Marcos Galperin
announced that the company has entered into a 10-year agreement
with airline GOL to use up to 12 of the company's aircraft
exclusively to deliver shipments in Brazil.

The deal is part of the BRL17 billion (US$3.6 billion) investment
package the company announced in the country this year, according
to Rio Times Online.

                     About Gol Linhas

Founded in 2000 and based in Sao Paulo, Brazil, Gol is the largest
low-cost carrier in Latin America, offering over 750 daily
passenger flights to connect Brazil's major cities and various
destinations in South America, North America and the Caribbean,
along with cargo and charter flight services.  Gol also owns 100%
of Smiles, a loyalty program company with more than 18.5 million
participants that allows members to accumulate miles and redeem
tickets in more than 900 destinations around the world and offer
non-ticket reward products and services. In the twelve months ended
June 2021, Gol reported consolidated net revenues of BRL5.5
billion.

As reported in the Troubled Company Reporter-Latin America, Fitch
Ratings, in September 2021, upgraded GOL Linhas Aereas Inteligentes
S.A.'s (GOL) Long-Term Foreign- and Local-Currency Issuer Default
Ratings (IDRs) to 'B-' from 'CCC+' and upgraded its Long-Term
National Scale rating to 'BB+(bra)' from 'B-(bra)'.  Fitch has also
upgraded GOL Finance's unsecured bonds to 'B-'/'RR4' from
'CCC+'/'RR4'.  Fitch has assigned a Stable Outlook for the IDRs and
the Outlook for the national scale rating remains Stable.  S&P
Global Ratings, also in September 2021, revised the outlook on
Brazilian airline Gol Linhas Aereas Inteligentes S.A. (Gol) to
positive from stable and affirmed its global scale 'CCC+' issuer
credit rating.


[*] BRAZIL: To Harvest Lower Sugarcane Crop due to Weather Problems
-------------------------------------------------------------------
Rio Times Online reports that Brazil, the world's largest
sugarcane, refined sugar, and sugarcane ethanol producer and
exporter, will harvest 585.2 million tons of sugarcane in the
2021-2022 crop, with a 10.6% drop compared to the previous one, due
to the climatic problems faced by the country.

According to Conab, the drop in sugarcane production will be a
consequence of the adverse weather conditions registered in the
last year, mainly the drought that affected the country at the
beginning of 2021 and the heavy frosts registered in June and July,
which impacted the productivity of important producing regions, the
report notes.

As reported in the Troubled Company Reporter-Latin America on April
15, 2022, Moody's Investors Service has affirmed the Government of
Brazil's long-term Ba2 issuer ratings and senior unsecured bond
ratings, (P)Ba2 senior unsecured shelf ratings and maintained the
stable outlook.





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D O M I N I C A N   R E P U B L I C
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DOMINICAN REPUBLIC: Business Leaders Reject Called Walkout
----------------------------------------------------------
Dominican Today reports that the main business institutions of
Santiago province and the entire Cibao region have rejected, in a
statement, the 24-hour walkout that was called for April 24 in the
14 provinces of that jurisdiction.

These entities have exposed, as a justification for their position,
the conditions in which the country finds itself, according to
Dominican Today.

These are the Chamber of Commerce and Production, the Association
for Development, the Association of Merchants and Industrialists of
Stores of the Historic Center and entities of medium and small
companies, the report notes.

Speaking on behalf of these institutions, the leaders Sandy Filpo,
Ricardo Fondeur and Augusto Reyes, warn that the moment requires
the "constant and dedicated work of all, government and society,"
to improve the situation in the country, the report relays.

"The strike is inopportune," they said, with the certainty that "it
is destined to harm the active recovery that is registered in the
region and throughout the country, in the economy, after the
effects of the pandemic," the report adds.

                 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: IMF Sees 5% Economic Growth in 2022
-----------------------------------------------------------
Dominican Today reports that concluded the third quarter of this
year, the projections of the World Bank, the International Monetary
Fund (IMF) and the Economic Commission for Latin America and the
Caribbean (ECLAC) show a consensus of 5.0% in the expectations of
economic growth for Dominican Republic, and is expected to drop to
4.6% by 2023 due to geopolitical uncertainty during conflicts
between Russia and Ukraine.

Of 18 countries analyzed by multilateral entities, Venezuela and
Panama exceed the country in the economic projections for this 2022
of the Latin America and the Caribbean (LAC) region with 8.2% and
6.0%, respectively, according to the most recent report of the
Macroeconomic Situation of the Ministry of Economy, Planning and
Development (MEPyD) that collects statistics at a global level,
according to Dominican Today.

In the case of Venezuela, after five years of economic recession,
it exceeded the metrics of other countries due to the increase in
its exports and the reactivation of economic dynamism, as reported
by its president Nicolas Maduro in his accountability last year,
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: To Implement 24% Construction Wage Hike
----------------------------------------------------------------
Dominican Today reports that through the Ministry of Labor, the
Government announced on April 18, a salary increase for employees
in the construction sector, an industry that generates 421,483
jobs, according to official data for the first quarter of 2021.

The report says the increase will be effective on May 1st, with
21%, and the additional 3% on October 1st of this year. According
to the President of the Republic, Luis Abinader, the aim is to be
more competitive in the sector.

In December 2021, the government had increased by 15.5% the salary
for heavy machine operators. Workers earning 23,412 pesos will now
earn 27,000 pesos, and helpers from 11,667 pesos to 13,500 pesos,
the report relays.
And in March 2020, the Ministry of Labor increased by 15% for
masonry workers, the report adds.

To take advantage of the 24% increase, the foreign labor force in
the sector should be dismantled, and, above all, construction
companies should be formalized, says Eliseo Cristopher, president
of the Dominican Confederation of Micro, Small and Medium
Construction Companies (Copymecon). If this is achieved with
specific policies, the Dominican labor force in the construction
sector would increase, with quality employment, he adds.

He said that with the high level of informality in the construction
sector, it is unknown how the Government's increase would be
applied, notes Dominican Today. He explained that the announced
increase is aimed at a group of foreign laborers, which will not
translate into benefits for the Dominican economy.

"If we now take advantage of this hike and direct companies to
formality and actions are taken so that Dominicans are inserted in
construction we could take advantage," the report quoted Mr.
Cristopher as saying.

He said that the increase could be significant for the workers, but
with the formalization of the companies, says the report.

Meanwhile, the Pension Fund for Construction Workers (Fopetcons)
welcomed President Luis Abinader's announcement of the 24% increase
to the minimum wage earned by all construction sector workers in
the country.
The President said close to half a million construction sector
workers will benefit from the salary increase, following the
consensus reached by the employer and labor sectors with the
mediation of the Ministry of Labor.

                  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.



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

MERCADO LIBRE: Increases its Electric Vans in Mexico by 1000%
-------------------------------------------------------------
contxto.com reports that Mercado Libre went from having 15 electric
vans, which were incorporated into its distribution network in
December 2020, to 165. With this adhesion, the e-commerce company
increased its fleet in Mexico by 1000%, claiming to be the largest
in the country.

"We know that we have a key role in transforming the logistics
industry.  We must be increasingly responsible for understanding
the environmental footprint as we grow to reduce it," said Omar
Ramirez, director of logistics and transportation at Free Market
Mexico, according to contxto.com.

       Free Market And The Use Of Renewable Energies

The new Mercado Libre units are electric vans that do not directly
emit greenhouse gas, thus representing a 54% decrease in CO2
generation, the report relays.  The current fleet is already
circulating in Mexico, the report notes.  To work throughout the
day requires six hours of charging daily, the report discloses.

Along with this announcement, the e-commerce company said it would
start using renewable energy in its primary storage and
distribution centers, the report says.  They will begin in the
warehouse in Tepotzotlan, State of Mexico, the report relays.  They
will continue in Monterrey, and they want to close this year with
three centers operating entirely with renewable energy, the report
notes.

Eric Holschneider, the environmental supervisor at Mercado Libre
México, said that since 2016 they have been carrying out an
intelligent measurement to monitor and fine-tune their consumption
remotely, the report says.  Thus, with smart sensors and dashboards
in real-time, they make quick decisions in operation to improve
energy efficiency, the report adds.

Headquartered in Buenos Aires, Argentina, Mercado Libre, Inc. is an
Argentine company headquartered in Buenos Aires, incorporated in
the United States that operates online marketplaces dedicated to
e-commerce and online auctions, including mercadolibre.com.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on April
26, 2022, Egan-Jones Ratings Company on March 25, 2022, maintained
its 'BB' foreign currency and local currency senior unsecured
ratings on debt issued by Mercado Libre, Inc.



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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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