/raid1/www/Hosts/bankrupt/TCRLA_Public/220505.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, May 5, 2022, Vol. 23, No. 84

                           Headlines



B R A Z I L

AEGEA SANEAMENTO: Fitch Assigns 'BB' LongTerm IDRs, Outlook Stable
CENTRAIS ELETRICAS: Short Interest Up 75.7% in April
IOCHPE-MAXION SA: Fitch Corrects April 19 Ratings Release
KLABIN SA: Fitch Affirms 'BB+' LongTerm IDRs, Outlook Stable
PETRO RIO SA: Moody's Affirms B1 CFR & Alters Outlook to Positive

PETRO RIO: S&P Alters Outlook to Positive, Affirms 'B+' ICR


C O L O M B I A

COLOMBIA: IMF OKs US$9.8 Billion Flexible Credit Line


M E X I C O

PLAYA RESORTS: Moody's Hikes CFR & Senior Secured Term Loan to B3
ZACATECAS MUNICIPALITY: Moody's Withdraws 'B1' Issuer Rating


P E R U

INRETAIL PHARMA: Fitch Hikes IDRs & Unsecured Bonds From BB+


P U E R T O   R I C O

E.R.G. INCORPORADO: Case Summary & 13 Unsecured Creditors


T R I N I D A D   A N D   T O B A G O

CARIBBEAN AIRLINES: Could Rehire Retrenched Employees
TRINIDAD PETROLEUM: S&P Puts 'B+' Rating on CreditWatch Developing

                           - - - - -


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

AEGEA SANEAMENTO: Fitch Assigns 'BB' LongTerm IDRs, Outlook Stable
------------------------------------------------------------------
Fitch Ratings has affirmed Aegea Saneamento e Participacoes S.A.'s
(Aegea) Long-Term Foreign Currency (FC) and Local Currency (LC)
Issuer Default Ratings (IDRs) at 'BB' and National Long-Term Rating
at 'AA(bra)'. Fitch has also affirmed the 'BB' rating of Aegea
Finance S.a.r.l's (Aegea Finance) senior unsecured notes due in
2024 and the National Long-Term Rating of Aegea's subsidiaries at
'AA(bra)'. Fitch has also removed the Rating Watch Negative from
all ratings and assigned a Stable Outlook to the LC IDR and
National Long-Term Rating and a Negative Outlook to the FC IDR.

At the same time, Fitch has assigned a 'BB' rating to Aegea
Finance's proposed seven years senior unsecured notes of USD500
million. The issuance will be unconditionally and irrevocably
guaranteed by Aegea. Proceeds will be used for 2024 notes
refinancing and general corporate purposes.

The Rating Watch removal follows the above expectations performance
and better visibility of Aegea's non-consolidated operating assets
in Rio de Janeiro, which count on Equity Support Agreement (ESA)
from the company. This reduces its vulnerability to pressures on
leverage deriving from ESA execution. Fitch rates Aegea based on
the consolidated figures that reflects its strong business position
within Brazilian water/wastewater industry with low risks. The
company should sustain moderate net leverage and adequate liquidity
during the next three years supported by sound cash flow generation
and favorable debt market access for refinancing needs. The
subsidiaries' ratings are equalized with the parent due to the
strong incentives that Aegea would have to support them, if needed.
The Negative Outlook for Aegea's FC IDR follows Brazil's Sovereign
Outlook.

KEY RATING DRIVERS

Lower ESA Vulnerability: Aegea's vulnerability to ESA execution has
reduced as Aguas do Rio 1 and Aguas do Rio 4 (AdR -
non-consolidated SPVs responsible for water/wastewater operations
in municipalities in the state of Rio de Janeiro) have positively
performed under Aegea's management. Fitch assumed capital injection
at AdR BRL338 million below initial expectations in the 1Q22 due to
unexpected tariff adjustment and sustainable operating
enhancements, which improves visibility. Fitch's forecasted equity
injection of BRL1.6 billion in the next two years is manageable and
will be mostly funded by Aegea's liquidity and own cash flow
generation.

Aegea holds 51.6% of AdR, that issued BRL7.8 billion in debentures
to support, together with capital injections of BRL5.8 billion, the
grant payment of BRL12.3 billion and the investments of the first
two years. Over 35 years, BRL24 billion is estimated in investments
by the SPVs, with an additional payment of BRL3.1 billion related
to the concession fee scheduled for 2024.

Resilient Demand: Aegea's credit profile benefits from resilient
demand on the water/wastewater sector. Aegea is a main private
player in this industry in Brazil and presents a diversified
portfolio of assets, which dilutes the operational, hydrological,
political and regulatory risks of its activity. Tariff increase in
the main concessions should sustain their economic-financial
balance and support robust cash generation, which is important
support for its investment cycle in the next three years. Aegea's
matured subsidiaries have high profitability, which favors its
financial and business profile.

Moderate Financial Leverage: On a consolidated basis and
considering updated disbursements assumptions on the SPVs, the net
debt/EBITDA ratio should average 3.5x within 2022-2025 peaking at
3.7x in 2023 due to a strong capex plan, according to Fitch's
estimates. Any need or perception by Fitch for unexpected support
on AdR from Aegea may pressure this ratio and the company and its
subsidiaries' ratings. At the end of 2021, total debt/EBITDA and
net debt/EBITDA were 4.3x and 2.8x, respectively.

Negative FCF: The consolidated EBITDA estimates for Aegea is BRL2.1
billion in 2022, increasing to BRL2.3 billion in 2023, with margins
of 60% and 62%, respectively, positioned above average for local
peers. The assumptions consider average total billed volume growth
of 5% per year in the biennium and tariff increase linked to
inflation. The consolidated cash flow from operations (CFFO) should
reach BRL444 million in 2022 and BRL759 million in 2023. Aegea's
annual FCF should remain negative and register BRL1.0 billion, on
average, in this period, mainly pressured by annual averaged
investments of BRL1.0 billion and dividends of BRL627 million.

Strong Inorganic Growth: Aegea faces the challenge of maintaining a
robust credit profile, while taking advantage of inorganic growth
opportunities from concession auctions in the water/wastewater
sector. The company has been successful on recent important bidding
processes and acting as key industry consolidator. Untested
regulatory changes should continue to provide new growth
opportunities for private companies to expanding their market share
and industry investment requirements in the mid-term.

Consolidated Approach: Aegea presents a stronger credit profile as
compared to its subsidiaries considering the positive
diversification of concessions and will most likely provide support
to them in a stress scenario. The company guarantees around 65% of
its subsidiaries' debt and has cross default languages on its
financial instruments leading to high legal incentive of support.
Subsidiaries are strategic for the company's growth under fully
integrated management decisions and overlap, leading to ratings
equalization given combination of high legal and moderate-high
strategic and operational incentive to support.

DERIVATION SUMMARY

Aegea's LC IDR is positioned one notch below Companhia de
Saneamento Basico do Estado de Sao Paulo (Sabesp; LC IDR BB+/Stable
and FC IDR BB/Negative), which has lower leverage and a more
predictable cash generation coming from its recently established
tariff. Positively, Aegea has a more diversified portfolio of
concessions in terms of geography, which brings lower operational
and regulatory risks. Aegea and Sabesp have strong EBITDA margins.
Sabesp carries higher political risk, given its state-ownership,
yet benefits as the country's largest water/wastewater utility with
economies of scale. Transmissora Alianca de Energia Eletrica S.A.
(LC IDR BBB-/Negative and FC IDR BB/Negative), a power transmission
company, has a better credit profile than Aegea given also a more
predictable cash flow, in addition to strong financial profile and
lower regulatory risk.

Aegea's activity in Brazil is influenced by the country's operating
environment, which is subject to volatile macroeconomic
environments and mostly explains the difference in ratings from
Wessex Water Limited (WWL; BBB-/Stable), a holding company with
water operations in England. WWL subsidiaries' operating position
is strong compared with rated peers in the UK water sector due to a
long-standing record of strong operational and regulatory
performance.

KEY ASSUMPTIONS

-- Annual average connections growth of 3% for water and 8%
    wastewater during 2022-2025 with stable volume billed per
    connection resulting on total volume billed growth of 5%
    annually;

-- Tariff increase as implemented in 2022 and in line with
    Fitch's inflation estimates. Addition of 3.9% per year in
    Manaus as per approved tariff rebalance;

-- Gains of efficiency and scale leading to gradual EBITDA margin

    growth to 64% by 2024;

-- Average annual capex of BRL761 million in 2022-2025;

-- Average annual dividend distributions of BRL330 million in the

    next three years;

-- Equity injection at AdR of BRL1.1 billion in 2022 and BRL471
    million in 2023.

RATING SENSITIVITIES

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

-- Consolidated net debt/EBITDA sustainably below 3.0x and
    maintenance of adequate liquidity profile.

-- An upgrade of the FC IDR is unlikely. A revision of the
    Negative Outlook to Stable should occur if the same occurs
    with Brazil's sovereign rating.

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

-- Perception that AdR may require additional relevant cash
    contributions from shareholders;

-- Deterioration of liquidity profile on a consolidated and
    standalone basis and/or weaker financial flexibility;

-- Consolidated net leverage sustainably trending to above 4.0x.

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

Proved Financial Flexibility: Aegea should benefit from
demonstrated debt market access, with a robust liquidity profile
over the next few years despite of the significant investments and
necessary capital injections at AdR. The company has to
continuously fund its negative FCF generation and manage important
debt refinancing related with its notes maturing by October 2024
and the AdR's debentures in the amount of BRL7.8 billion maturing
by November 2023. Aegea strategy in the short term is to refinance
its 2024 notes with new bond issuance and the maturing AdR
obligation with multilateral agencies, BNDES and capital markets.

By YE 2021, Aegea's total debt was BRL7.5 billion, on a
consolidated basis, with BRL3.8 billion at the holding including
intercompany loans. The debt was mainly comprised of the bonds
issuance (BRL1.3 billion, adjusted by hedged derivatives),
debentures (BRL4.5 billion) and debts with the National Bank for
Economic and Social Development (BNDES) and Caixa Economica Federal
(BRL755 million). As of YE 2021, the group's liquidity profile was
adequate with cash and short-term investments at BRL2.5 billion,
considering that part of this amount is to fund equity injection at
AdR.

ISSUER PROFILE

Aegea manages and operates water and sewage concessions in 154
municipalities in 13 Brazilian states, supported by long-term
contracts. The company benefits from a quasi-monopoly position of
its subsidiaries in their respective operating municipalities and
serves an estimated population of 21 million. The company is
controlled by Equipav Group with 52.8% ownership with remining
shares owned by GIC (Singaporean sovereign fund - 34.3%) and Itausa
S.A. (12.9%).

SUMMARY OF FINANCIAL ADJUSTMENTS

-- Construction revenues are excluded from net revenues;

-- Long-term financial investments considered as cash.

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                    PRIOR
   ----                      ------                    -----
Aegea Saneamento e Participacoes S.A.

                        LT IDR     BB        Affirmed  BB

                        LC LT IDR  BB        Affirmed  BB

                        Natl LT    AA(bra)   Affirmed  AA(bra)

    senior unsecured    Natl LT    AA(bra    Affirmed  AA(bra)

Aguas de Teresina Saneamento SPE S.A.

                        Natl LT    AA(bra)   Affirmed  AA(bra)

Prolagos S.A. - Concessionaria de
Servicos Publicos de Agua e Esgoto

                        Natl LT    AA(bra)   Affirmed  AA(bra)

senior unsecured       Natl LT    AA(bra)   Affirmed  AA(bra)

Aegea Finance S.a r.l.

senior unsecured       LT         BB        New Rating

senior unsecured       LT         BB        Affirmed  BB

Aguas Guariroba S.A.    Natl LT    AA(bra)   Affirmed  AA(bra)

senior unsecured       Natl LT    AA(bra)   Affirmed  AA(bra)

Nascentes do Xingu Participacoes
e Administracao S.A.

                        Natl LT    AA(bra)   Affirmed  AA(bra)
  
senior unsecured       Natl LT    AA(bra)   Affirmed  AA(bra)


CENTRAIS ELETRICAS: Short Interest Up 75.7% in April
----------------------------------------------------
defenseworld.net reports that Centrais Eletricas Brasileiras S.A. -
Eletrobras was the target of a large increase in short interest
during the month of April.  As of April 15, there was short
interest totaling 5,270,000 shares, an increase of 75.7% from the
March 31st total of 3,000,000 shares. Based on an average trading
volume of 1,840,000 shares, the short-interest ratio is currently
2.9 days, according to defenseworld.net.

A number of research analysts have recently commented on EBR
shares, the report notes.  StockNews.com lowered Centrais Eletricas
Brasileiras S.A. - Eletrobras from a "strong-buy" rating to a "buy"
rating in a report. Zacks Investment Research upgraded Centrais
Eletricas Brasileiras S.A. - Eletrobras from a "hold" rating to a
"buy" rating and set a $9.75 target price for the company in a
research note April 20, the report relays.

The report discloses that the business has a 50 day moving average
price of $7.66 and a 200 day moving average price of $6.71.
Centrais Eletricas Brasileiras S.A. - Eletrobras has a twelve month
low of $5.16 and a twelve month high of $9.61.  The company has a
debt-to-equity ratio of 0.49, a quick ratio of 1.73 and a current
ratio of 1.78, the report notes.

Centrais Eletricas Brasileiras S.A. - Eletrobras (NYSE:EBR - Get
Rating) last announced its earnings results on March 18, the report
relays.  The utilities provider reported $0.08 earnings per share
for the quarter. Centrais Eletricas Brasileiras S.A. - Eletrobras
had a return on equity of 7.26% and a net margin of 14.69%, the
report discloses.  The firm had revenue of $2.06 billion during the
quarter. Research analysts forecast that Centrais Eletricas
Brasileiras S.A. - Eletrobras will post 0.46 EPS for the current
fiscal year, the report notes.

The company also recently disclosed an annual dividend, which will
be paid May 5, the report relates.  Shareholders of record on May 5
will be given a $0.131 dividend, the report notes.  The ex-dividend
date is May 4.  This represents a dividend yield of 1.57%, the
report discloses.

Several hedge funds have recently made changes to their positions
in the business, the report discloses.  Millennium Management LLC
lifted its position in shares of Centrais Eletricas Brasileiras
S.A. - Eletrobras by 1,300.0% in the 4th quarter, the report notes.
Millennium Management LLC now owns 1,686,095 shares of the
utilities provider's stock worth $10,268,000 after acquiring an
additional 1,565,662 shares during the period, the report relays.
Citadel Advisors LLC lifted its position in shares of Centrais
Eletricas Brasileiras S.A. - Eletrobras by 193.5% in the 4th
quarter, the report says.  Citadel Advisors LLC now owns 431,350
shares of the utilities provider's stock worth $2,627,000 after
acquiring an additional 284,382 shares during the period, the
report discloses.

Qube Research & Technologies Ltd lifted its position in shares of
Centrais Eletricas Brasileiras S.A. - Eletrobras by 2,572.5% in the
4th quarter, the report relays.  Qube Research & Technologies Ltd
now owns 362,955 shares of the utilities provider's stock worth
$2,210,000 after acquiring an additional 349,374 shares during the
period, the report notes.  Renaissance Technologies LLC bought a
new stake in shares of Centrais Eletricas Brasileiras S.A. -
Eletrobras in the 4th quarter worth approximately $1,705,000, the
report relays.  Finally, Thrivent Financial for Lutherans raised
its holdings in shares of Centrais Elétricas Brasileiras S.A. -
Eletrobras by 69.2% in the 4th quarter, the report discloses.
Thrivent Financial for Lutherans now owns 249,650 shares of the
utilities provider's stock worth $1,520,000 after buying an
additional 102,140 shares in the last quarter. Institutional
investors own 1.04% of the company's stock, the report relays.

Centrais Eletricas Brasileiras SA - Eletrobras, through its
subsidiaries, engages in the generation, transmission, and
distribution of electricity in Brazil, the report discloses.  The
company generates electricity through hydroelectric, thermal,
nuclear, wind, and solar plants. As of December 31, 2020, it owned
and operated 31 hydroelectric plants with a total installed
capacity of 50,648 megawatts; seven thermal plants, including coal,
and oil and gas power generation units with a total installed
capacity of 1,595 megawatts; and two nuclear power plants
comprising Angra I with an installed capacity of 640 megawatts and
Angra II with an installed capacity of 1,350 megawatts, the report
adds.

As reported in the Troubled Company Reporter-Latin America on May
2, 2022, Moody's Investors Service affirmed Centrais Eletricas
Brasileiras SA Eletrobras (Eletrobras) corporate family rating at
Ba2. At the same time, Moody's upgraded the company's baseline
credit assessment (BCA) to ba2 from ba3. The outlook on the
ratings


IOCHPE-MAXION SA: Fitch Corrects April 19 Ratings Release
----------------------------------------------------------
Fitch Ratings issued a correction of a press release on
Iochpe-Maxion S.A. published on April 19, 2022. It includes the
affirmation and subsequent withdrawal of Maxion Wheels de Mexico,
S. de R.L. de C.V.'s long-term senior unsecured rating at 'BB-',
which was omitted from the original release.

The corrected ratings release is as follows:

Fitch Ratings has affirmed the Long-Term Foreign- and Local
Currency Issuer Default Ratings (IDRs) of Iochpe-Maxion S.A. at
'BB-'. The National Scale rating was affirmed at 'A+(bra)'. The
Rating Outlook is Stable. Iochpe-Maxion Austria GmbH and Maxion
Wheels de Mexico, S. de R.L. de C.V.'s senior unsecured LT rating
has also been affirmed at 'BB-'. Fitch has subsequently withdrawn
all ratings.

The affirmation of the ratings reflects the improvement of Iochpe's
operational metrics in 2021. The ratings also reflect Iochpe's
customer and regional diversification as a large global wheels
producer and as an important producer of side rails and commercial
vehicle frames in the Americas as well as the competitive nature of
the wheels industry .

Fitch has withdrawn the ratings for commercial purposes.

KEY RATING DRIVERS

Key Rating Drivers do not apply as the company's ratings have been
withdrawn.

DERIVATION SUMMARY

Iochpe's ratings compare with capital goods supplier Meritor's
(BB-/Rating Watch Positive) whose product lines are focused
primarily on driveline components and brakes for commercial
vehicles, off-highway equipment and trailers. Meritor revenues and
EBITDA are about 50% larger than Iochpe's. Similar to Iochpe,
Meritor generally retains a top-three market position in most of
its product segments.

Both entities face heavy competition in their main products.
Iochpe's exposure to commercial vehicles is around 45% but
Meritor's cash flow profile is more heavily concentrated in that
segment. Sales to this end market are more volatile than the light
vehicle market. Fitch also estimates that roughly a quarter of
Meritor's sales come from the aftermarket, which is more stable.
This compares with Iochpe's exposure to aftermarket sales around
6.1% of consolidated revenue.

From a geography standpoint Iochpe is more diversified with Europe
being its largest revenue contributor at around 32%, followed by
North America at roughly 39%. This compares with Meritor's exposure
to North America at around 65% and Europe at around 20%. However,
Iochpe's approximate exposure of 29% to South America, which mainly
comprises Brazil, has been more volatile. Meritor's gross leverage,
expected over the next two years in the 3x-4x range is similar to
Iochpe's.

RATING SENSITIVITIES

Rating Sensitivities do not apply as the company's ratings have
been withdrawn.

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

Adequate Liquidity: Iochpe's liquidity is sufficient and is
supported by cash and access to funding. Cash balance as of
year-end 2021 was BRL1 billion compared with one-year maturities of
BRL1.2 billion. The company has approximately BRL770 million in
committed credit lines.

ISSUER PROFILE

Iochpe Maxion S.A (Iochpe) is a Tier-1 auto-part producer with a
global footprint. The company supplies steel wheels for light and
commercial vehicles and agricultural machinery and aluminum wheels
for light vehicles. It also produces side rails, cross members and
full frames for commercial vehicles and structural components for
light vehicles.

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.

Following the withdrawal of international ratings for Iochpe-Maxion
S.A., Fitch will no longer be providing the associated ESG
Relevance Scores.

    DEBT                     RATING
    ----                     ------
Iochpe-Maxion Austria GmbH

senior unsecured    LT         WD              Withdrawn

senior unsecured    LT         BB-             Affirmed

Iochpe-Maxion S.A.
                     LT IDR     WD              Withdrawn
                     LT IDR     BB-             Affirmed
                     LC LT IDR  WD              Withdrawn
                     LC LT IDR  BB-             Affirmed
                     Natl LT    WD(bra)         Withdrawn
                     Natl LT    A+(bra)         Affirmed

Maxion Wheels de Mexico,
S. de R.L. de C.V.

senior unsecured    LT         BB-             Affirmed

senior unsecured    LT         WD              Withdrawn


KLABIN SA: Fitch Affirms 'BB+' LongTerm IDRs, Outlook Stable
------------------------------------------------------------
Fitch Ratings has affirmed Klabin S.A.'s Long-Term Foreign Currency
(FC) and Local Currency (LC) Issuer Default Ratings (IDRs) at 'BB+'
and National Scale Long-Term Rating at 'AAA(bra)'. Fitch has also
affirmed the 'BB+' rating of Klabin Finance S.A. and Klabin Austria
Gmbh's senior notes, guaranteed by Klabin. The Rating Outlook for
Klabin remains Stable.

Klabin's ratings reflect the company's leading position in the
Brazilian paper and packaging sector and its large forestry assets,
providing a low production cost structure and a high degree of
vertical integration. The company's solid liquidity position and
low refinancing risk remain key credit considerations. Fitch
expects Klabin's cash flow generation to remain strong due to high
pulp and packaging prices, strong demand in the paper and packaging
segment and additional volume from the Puma II project, which
started operations in August 2021. This should enable the company
to complete its expansion cycle in 2023 with around USD4.5 billion
of net debt, which remains consistent with the 'BB+' rating and
Stable Outlook.

KEY RATING DRIVERS

Leading Packaging Market Position: Klabin has a leading position in
the Brazilian packaging sector and a high degree of vertical
integration, which enhances product flexibility in the competitive
but fragmented packaging industry. The company has market shares of
24% and 50%, respectively, in the Brazilian corrugated boxes and
coated board sectors. Klabin is the sole producer of liquid
packaging board in Brazil and is the largest producer of kraftliner
and industrial bags, with market shares of 42% and 52%,
respectively. The Puma II expansion project added 450,000 tons of
annual production capacity of kraftliner starting 2021, and will
add an additional 460,000 tons of annual production capacity of
coated board by 2023, which will further strengthen the company's
leading market position.

Klabin's strong market shares allow it to be a price leader in
Brazil and to preserve more stable sales volume and operating
margins during instable economic scenarios than its competitors.
Paper and packaging business represented 48% of Klabin's EBITDA in
2021, while pulp represented 52%. Fitch views the company's
competitive advantage as sustainable due to its scale, high level
of integration and diversified client base in the more resilient
food sector, which represents about 67% of packaging sales.

Pulp Mill and Forestry Assets: Klabin's strength in packaging is
augmented by its forestry assets and modern 1.6 million-ton pulp
mill. The company sources much of its fiber requirements from trees
grown on 280,000 hectares of plantations that it has developed on
636,000 hectares of land under management; this ensures a
competitive production cost structure in the future. In 2021,
Klabin's cash cost of producing pulp averaged USD166 per ton, which
placed it firmly in the lowest quartile of the cost curve. The
value of the biological assets of its forest plantations was BRL5.5
billion as of Dec. 31, 2021. If needed, some of the forestry assets
could be monetized to lower debt and improve liquidity.

Higher Than Expected Pulp Prices: The market pulp industry is
cyclical; prices move sharply in response to changes in demand or
supply. Pulp prices increased sharply during 2021 after two
challenging years due to supply and logistical constraints caused
by mill closures, maintenance downtime and container shortages.
Fitch projects BEKP prices to remain high during the first half
2022 and to lose momentum during the second half of the year,
averaging USD625/ton in 2022, compared with USD677/ton in 2021. The
movement of prices away from the marginal cost levels since 2021
provides producers with a window of opportunity to generate strong
cash flow from operations (CFFO) and has allowed Klabin to maintain
a net debt/EBITDA ratio close to 3.5x during the construction of
the Puma II project.

Stronger Cash Flow: Klabin's EBITDA is expected to be around BRL8.6
billion for 2022 and BRL7.4 billion in 2023, compared with BRL6.6
billion in 2021. This growth is supported by about 25% grow in
revenues from the packaging business this year due to price
increases and sales volume from the start-up of the Puma II
project, in addition to high pulp prices during the first half of
the year. Klabin is expected to generate an average of BRL5.3
billion of CFFO during this period. FCF is projected to remain
negative between BRL1.0 billion and BRL1.8 billion in 2022 and
2023. FCF is expected to be strong in 2024, following the
completion of the second phase of Puma II project. Fitch's
projections incorporate elevated investments of BRL9.5 billion
between 2022 and 2023, while dividends should remain at 20% of
EBITDA.

Leverage to Remain Below 3.5x: Klabin's net leverage ratio is
expected to fall to about 3.0x in 2022, from 3.8x in 2021, and
should remain close to 3.5x during the period of high investments
in Puma II project, as per Fitch's calculations that includes in
total debt BRL4.0 billion from factoring transactions. Klabin's net
debt, excluding factoring transactions, was BRL24.9 billion as of
Dec. 31, 2021, and should remain relatively stable until 2023,
despite investments of BRL9.5 billion between 2022 and 2023, as the
company will be able to finance greater portion of the project with
operating cash flow, as per Fitch's projections.

Rating Above Country Ceiling: Klabin's FC IDR of 'BB+' is one notch
higher than Brazil's Country Ceiling due to a combination of
exports of USD1.2 billion, approximately USD72 million of cash held
outside of Brazil and an undrawn USD500 million offshore credit
facility. 50% of EBITDA from exports, plus cash held abroad and a
revolving credit facility covers Hard Currency debt service in the
next 24 months by more than 1.5x. This suggests an uplift of up to
three notches above Brazil's Country Ceiling. However, Klabin's FC
IDR is constrained by a LC IDR of 'BB+', a reflection of its
underlying credit quality.

DERIVATION SUMMARY

Klabin has a leading position in the Brazilian packaging segment.
Klabin's size, access to inexpensive fiber and high level of
integration relative to many of its competitors give it competitive
advantages that Fitch view as sustainable. Its business profile is
consistent with a rating in the 'BBB' category.

Klabin's leverage increased due the period of high investments that
will continue until 2023, and is higher than Empresas CMPC
(BBB/Stable), Suzano (BBB-/Stable) and Celulosa Arauco
(BBB/Stable). Klabin's leverage increased as a result of the
construction of the Puma pulp mill and low pulp prices following
the completion of the mill have prevented a quick deleveraging
process before entering into a new investment cycle. Liquidity is
historically strong for pulp and packaging producers, and Klabin
has strong access to debt and capital markets.

Klabin is more exposed to demand from the local market than Suzano,
CMPC and Arauco, as these companies are leading producers of market
pulp sold globally. This makes Klabin more vulnerable to
macroeconomic conditions than its peers, which is also a negative
consideration. Positively, its concentration of sales to the food
industry, which is relatively resilient to downturns in Brazil's
economy, and its position as the sole producer of liquid packaging
board, adds stability to operating results.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within Its Rating Case for the Issuer

-- Paper and packaging sales volume of 2.5 million tons for 2022
    and 2.7 million tons for 2023;

-- Pulp sales volume of 1.6 million tons in 2022 and 2023;

-- Average hardwood net pulp price of USD625 per ton in 2022 and
    USD600 per ton in 2023;

-- Average FX rate of 5.5 BRL/USD in 2022 and 5.4 BRL/USD 2023;

-- Investments around BRL9.5 billion during 2022 and 2023;

-- Dividends around 20% of EBITDA from 2022 onwards.

RATING SENSITIVITIES

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

-- Average net debt/EBITDA ratios of 2.5x or below throughout the

    pulp price cycle following completion of the expansion
    project;

-- Sustained net debt at Klabin of less than USD3.3 billion after

    completion of the expansion project.

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

-- Average net debt/EBITDA ratios of 3.5x or higher throughout
    the pulp price cycle following completion of the expansion;

-- Sustained net debt at Klabin of more than USD4.5 billion after

    completion of the expansion project;

-- More unstable macroeconomic environment that weakens demand
    for the company's packaging products as well as prices.

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: Klabin's solid liquidity position and low
refinancing risk remain key credit considerations. As of Dec. 31,
2021, the company had BRL8.4 billion of cash and marketable
securities and BRL33.3 billion of total debt, including about BRL4
billion of factoring transactions as per Fitch's criteria.

The company has an extended debt amortization profile, with BRL5.8
billion of debt maturing in 2022 (including BRL4 billion in
factoring, as per Fitch methodology), BRL973 million in 2023 and
BRL1.3 billion in 2024. Financial flexibility is enhanced by a
USD500 million unused revolving credit facility. Klabin plans to
continue to finance the expansion project with a combination of
debt and operating cash flow. Fitch expects Klabin to continue to
preserve strong liquidity, conservatively positioning it for the
price and demand volatility, which is an inherent risk of the
packaging industry.

As of Dec. 31, 2021, about 67% of total debt was denominated in
U.S. dollars. Total debt consisted of bonds (50%), export credit
notes and export prepayments (12%), Agribusiness Receivables
Certificate (CRA, 12%), factoring (12%), debentures (5%) and others
(9%).

ISSUER PROFILE

Klabin is the leader in the Brazilian corrugated boxes and coated
board sectors with market shares of 24% and 36%, respectively. In
the Brazilian market, the company is the sole producer of liquid
packaging board and is the largest producer of kraftliner and
industrial bags. It also has an annual production capacity of 1.6
million tons market pulp (1.15 million ton of hardwood pulp and
0.45 million ton of softwood pulp and fluff).

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                            PRIOR
   ----             ------                            -----
Klabin Finance S.A.

senior unsecured    LT         BB+       Affirmed    BB+

Klabin S.A.          LT IDR     BB+       Affirmed    BB+

                     LC LT IDR  BB+       Affirmed    BB+

                     Natl LT    AAA(bra)  Affirmed    AAA(bra)

Klabin Austria Gmbh

senior unsecured    LT         BB+       Affirmed    BB+


PETRO RIO SA: Moody's Affirms B1 CFR & Alters Outlook to Positive
-----------------------------------------------------------------
Moody's Investors Service affirmed Petro Rio S.A.'s ("PetroRio") B1
corporate family rating and the B1 ratings on PetroRio Luxembourg
Trading S.a.r.l. ("PetroLux") $600 million guaranteed senior
secured notes due 2026. Simultaneously, Moody's changed the outlook
on the ratings to positive from stable, following the announcement
of the acquisition of Albacora Leste, an oil and gas producing
field in Brazil that will materially increase PetroRio's production
and reserves size, upon closing of the transaction.

RATINGS RATIONALE

On April 28, 2022 PetroRio announced the signing of an agreement to
acquire 90% of Albacora Leste, an oil and gas producing field
located in the Campos basis, Southeast of Brazil, from Petroleo
Brasileiro S.A. - PETROBRAS (Ba1 stable) for $1.95 billion; the
deal includes the possible additional payment of up to $250
million, depending on the annual average Brent price in 2023-24.
The deal is subject to the usual conditions-precedent for this type
of transactions, such as approval by the Brazilian oil and gas
regulator and the antitrust body.

Albacora Leste is located next to PetroRio's largest oil field,
Frade, in the same Campos basin. According to Petrobras, in the
first quarter 2022, Albacora Leste produced close to 25,500 barrels
of equivalent oil and gas per day (boe/d), which compares to
PetroRio's current close to 36,000 boe/d production. Upon closing
of the transaction, PetroRio's production will have grown by about
60%. PetroRio estimates that Albacora Leste will bring about 240
million barrels of net proved reserves to the company, based on a
Brent price estimate of $62 per barrel.

PetroRio's B1 rating are based on its small asset base and size of
crude oil production; its high operating risk due to geographic
concentration and the mature nature of its oil and gas assets; and
the high risk related to the dependence on acquisitions of oil and
gas assets to sustain production or grow. These challenges are
mitigated by PetroRio's high operating efficiency and cash
generation, which supports low debt leverage and adequate interest
coverage ratios for its rating category; high capital spending
flexibility; favorable regulatory environment; and the fact that
the company's capital is listed in the Brazilian stock exchange,
which tends to strengthen corporate governance.

The positive outlook on PetroRio's B1 rating is supported by
Moody's expectation that the acquisition of Albacora Leste, upon
closing, will be accretive to the credit profile of the company
because i) it will materially increase PetroRio's production and
reserves size and ii) it will be funded based on the company's
sound financial policies, therefore not negatively affecting its
capital structure.

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

PetroRio's B1 ratings could be upgraded after the approval of the
acquisition of Albacora Leste by the Brazilian oil & gas regulator
and the antitrust body while the company (1) increases production
to between 50,000 and 100,000 barrels of oil equivalent per day
(boe/d); (2) sustains leveraged full-cycle ratio, which measures an
oil company's ability to generate cash after operating, financial
and reserve replacement costs, consistently above 2.5x; (3)
maintains E&P debt/proved developed reserves below $8.0, all of
which while maintaining an adequate liquidity profile.

PetroRio's B1 ratings could be downgraded if (1) retained cash flow
(cash from operations before working capital requirements less
dividends) to total debt declines below 25%, with limited prospects
of a quick turnaround; (2) if interest coverage, measured as
EBITDA/interest expense, falls below 4.0x, with limited prospects
of a quick turnaround and (3) if there is a deterioration of the
company's liquidity profile.

The principal methodology used in these ratings was Independent
Exploration and Production published in August 2021.

PetroRio is an independent oil and gas production company focused
on assets located mainly in the Campos basin, in Rio de Janeiro,
Brazil. As of December 31, 2021, its total assets amounted to $1.2
billion.

PETRO RIO: S&P Alters Outlook to Positive, Affirms 'B+' ICR
-----------------------------------------------------------
On May 3, 2022, S&P Global Ratings revised the outlook on Brazilian
oil and gas exploration and production company Petro Rio S.A. to
positive from stable. At the same time, S&P affirmed its global
scale 'B+' and national scale 'brAA' long-term issuer credit
ratings on the company. S&P also affirmed the short-term 'brA-1+'
national scale rating.

In addition, S&P affirmed its 'BB-' issue rating on the senior
notes with a '2' recovery rating.

The positive outlook indicates that S&P could upgrade the company
if it improves its liquidity cushion once the acquisition is
finalized while keeping solid profitability and low leverage.

On April 28, 2022, Petro Rio announced it was acquiring a 90% stake
of the Albacora Leste field from Petroleo Brasileiro S.A. -
Petrobras (BB-/Stable/--). The other 10% is held by Repsol Sinopec
Brasil (Repsol; not rated). According to Petro Rio, as of March
2022, Albacora Leste had a production capacity of 30,000 barrels
(bbl) of oil per day and will add 240 million bbls of net proven
reserves, which significantly increases Petro Rio's existing proven
reserves and contingent resources of 206 million bbls as of Dec.
31, 2020 and daily production of 32,298 bbls/day as of Dec. 31,
2021. S&P said, "As a result, we revised Petro Rio's business risk
profile to weak from vulnerable. Moreover, we think the company
will put in place its proposed investment plan of $150 million for
the 18 months after the acquisition concludes to ensure high
efficiency levels, which should be near the 90% of its current
operations. In our view, the investment plan will improve synergy
between fields and higher production, amid lower lifting costs and
relatively high Brent oil prices, resulting in a solid EBITDA
margin near 75.0% in the next few years from 64.4% in 2021."

The conclusion of the acquisition depends on precedent conditions
such as Repsol not exercising its preference right within 30 days
and approvals from the National Agency of Petroleum, Natural Gas
and Biofuels (ANP), and the Brazilian antitrust (CADE).

The transaction totals $1.951 billion of fixed payment, of which
$293 million was paid upon signing and $1.658 billion at closing
and transfer of operations. The effective date is Oct. 1, 2022, and
cash flows from Albacora Leste after that date will be deducted
from final payment. Additionally, Petro Rio may need to pay
earn-outs of up to $250 million in 2024 and 2025 depending on Brent
oil prices in 2023 and 2024. Petro Rio expects to fund the deal
with its existing cash position of $833.4 million as of year-end
2021, and cash generation during this year. The company also raised
about $463 million in bank loans until April, increasing its cash
position. Still, given the large amount it will pay at closing,
Petro Rio's liquidity will be pressured until then. In S&P's
opinion, the company could raise additional cash through sales of
treasury shares or new bank loans, if needed, but timing and
amounts are uncertain. Additionally, Petro Rio has relatively low
debt maturities in the next three years, the ability to suspend
capital expenditures (capex) to maintenance levels, and good
relationships with banks.

S&P said, "In 2021, Petro Rio concluded the tieback between the
Polvo and Tubarao Martelo fields, reducing operational costs by
about $50 million per year. In upcoming years, we expect the
company to continue implementing its investment plan that began in
April 2022 with the Frade oilfield's revitalization campaign and
includes the drilling of production and injection wells. We expect
these to increase Petro Rio's production at that field to close to
7,000 bbl/day in 2022 and over 11,500 bbl/day in 2023.

"We expect Petro Rio to maintain stable debt levels in the next
several years that should allow leverage of between 1.5x-2.0x in
2022 and 2023, even assuming oil price decline. If the company
moves ahead with the acquisition of the other Albacora field, we
expect Petro Rio will fund at least part of it with debt. However,
because the timing, size, and funding are uncertain, we don't add
this to our base-case forecast. Still, we believe the acquisition
would likely be positive for the company's credit quality depending
on leverage and liquidity."

ESG credit indicators: E-4, S-2, G-3

S&P said, "Environmental factors are a negative consideration in
our credit rating analysis of Petro Rio due to downside risks for
profitability and product demand amid transition to renewable
energy sources. Still, the company's focus on mature oil fields
with low lifting costs make it more resilient than high-cost
players. Petro Rio's carbon dioxide (CO2) emissions rose only at
about one-fourth of its production growth in 2018-2020. Also, the
combination of the Polvo and Tubarao Martelo fields into one
cluster allows for synergies, including a reduction to 15.1 kg of
CO2 per barrel produced from 18.6 kg. Governance factors are a
moderately negative consideration because Petro Rio and its
chairman are under investigation by Brazil's Securities and
Exchange Commission regarding disclosures in connection with
investments in telecom operator Oi S.A. After that, the company
changed its bylaws in 2020 to allow future investments only in the
oil and gas and energy sectors."




===============
C O L O M B I A
===============

COLOMBIA: IMF OKs US$9.8 Billion Flexible Credit Line
-----------------------------------------------------
The Executive Board of the International Monetary Fund (IMF)
approved a successor two-year arrangement for Colombia under the
Flexible Credit Line (FCL) in an amount equivalent to SDR 7.1557
billion (about US$9.8 billion) and noted the cancellation by
Colombia of the previous arrangement. The Colombian authorities
stated their intention to treat the new arrangement as
precautionary.

The FCL was established on March 24, 2009, as part of a major
reform of the Fund's lending framework (see Press Release No.
09/85). The FCL allows its recipients to draw on the credit line at
any time and is designed to flexibly address both actual and
potential balance of payments needs to help boost market
confidence. Drawings under the FCL are not phased nor tied to
ex-post conditionality as in regular IMF-supported programs. This
large, upfront access with no ex-post conditionality is justified
by the very strong policy fundamentals and institutional policy
frameworks and sustained track records of countries that qualify
for the FCL, which gives confidence that they will respond
appropriately to the balance of payments difficulties that they are
encountering or could encounter.

Colombia has maintained access to the FCL instrument since 2009,
and this is the country's ninth FCL arrangement. Prior to the
pandemic in 2020, Colombia had been gradually lowering access in
successive FCL arrangements. The arrangement approved on June 15,
2016 (see Press Release No. 16/279 ) was for an access amount
equivalent to SDR 8.18 billion (about US$11.5 billion). The
arrangement approved on May 25, 2018 ( see Press Release No. 18/196
) was for an access amount equivalent to SDR 7.848 billion (about
US$11.4 billion). The arrangement approved on May 1, 2020, was for
the same level of access as the 2018 FCL arrangement (see Press
Release No. 20/201 ) and later augmented on September 25, 2020 to
SDR 12.267 billion (see Press Release No. 20/300 ) due to the
pandemic.

Following the Executive Board's discussion on Colombia, Ms.
Antoinette Sayeh, Deputy Managing Director and Acting Chair, made
the following statement:

"Colombia has very strong economic fundamentals and policy
frameworks anchored by a credible inflation targeting-regime, a
solid medium-term fiscal framework, a flexible exchange rate, and
effective financial sector supervision and regulation. The
authorities remain firmly committed to maintaining very strong
macroeconomic policies going forward. There is also broad consensus
in Colombia on the importance of preserving very strong policy
frameworks.

"Colombia also has a very strong track record of macroeconomic
management, which allowed the authorities to deliver a
comprehensive response to the pandemic, promote a steadfast
economic recovery, continue to integrate Venezuelan migrants into
Colombian society, and support rising living standards.

"With a robust recovery underway but risks tilted to the downside,
Colombia has taken steps to normalize policies from a crisis
footing and manage higher inflation, while strengthening public
finances and reducing external imbalances. Meanwhile, international
reserves remain adequate. The structural reform agenda rightly aims
at fostering inclusive and sustainable growth and enhancing
external competitiveness.

"Global risks remain elevated, but the nature of risks has changed,
including due to heightened uncertainty related to the war in
Ukraine and global inflationary pressures. Colombia remains
vulnerable to external risks-including from a sharp rise in global
risk premia and other external shocks. The new arrangement under
the Flexible Credit Line will reinforce market confidence and
provide added insurance against external risks. The authorities
intend to continue to treat this new arrangement as precautionary
and to gradually phase out use of the instrument, conditional on a
reduction of global risks."




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

PLAYA RESORTS: Moody's Hikes CFR & Senior Secured Term Loan to B3
-----------------------------------------------------------------
Moody's Investors Service has upgraded Playa Resorts Holding B.V.'s
corporate family rating to B3 from Caa1. Moody's has also upgraded
to B3 from Caa1 Playa's senior secured term loan due 2024 and its
$68 million revolving credit facility. The outlook remains
positive.

The upgrade to B3 reflects the continued robust demand and speed
recovery in Caribbean and Latin American tourism that led to an
acceleration in average daily rates (ADRs) growth since 2021.
"Today's rating action on Playa Resorts reflects Moody's
expectations that Playa's credit metrics will continue to
strengthen during 2022 on the back of lodging rebound, with the
important spring break season already looking strong" said Sandra
Beltran, a Moody's Vice President Senior Analyst. Playa closed 2021
with positive free cash flow, reverting the cash burn that followed
the pandemic outbreak. Through 2024 Moody's expects cash generation
to accelerate and leverage to improve through earnings growth and
debt repayment.

Upgrades:

Issuer: Playa Resorts Holding B.V.

Corporate Family Rating, Upgraded to B3 from Caa1

Senior Secured Term Loan, Upgraded to B3 from Caa1

Senior Secured Revolving Credit Facility, Upgraded to B3 from
Caa1

Outlook Actions:

Issuer: Playa Resorts Holding B.V.

Outlook, Remains Positive

RATINGS RATIONALE

The global lodging recovery will continue in 2022, fueled by US
growth. The US industry will benefit from a strong spring break as
consumers demonstrate a willingness to forge ahead with delayed
travel plans and pay more for these experiences. Moody's expects
the revenue per available room (RevPAR) recovery to be strong in
2022 for most rated lodging companies, within 10% of 2019,
primarily driven by higher room rates. Occupancy rates will also
grow this year although will not yet return to pre-pandemic levels,
the gap between these two periods is narrowing.

Given Playa's portfolio of all-inclusive luxury and upscale coastal
resorts in the Caribbean and Mexican Pacific Coast, it has
benefited from the strong travel demand from the US, been ahead of
the travel recovery. Average Daily Rates (ADR) growth accelerated
since mid-2021. As of December 2022, ADR was $310, well above the
$285 reported in prior year. Playa's current booked position
combined with expected increases in flight capacity into its
destinations, supports the sustainability of pricing gains in the
coming months.

The B3 CFR reflects Moody's expectations that Playa's adjusted
debt/EBITDA will decline to close to 5x in 2022 on the back of
EBITDA recovery. For 2022 Moody's expects EBITDA to be close to
$215 million, from 2019's $145 million (Moody's adjusted basis).
Playa's cash generation will also benefit from the increase in
installed capacity since 2019, when Playa opened the Hyatt Ziva &
Zilara Cap Cana in the Dominican Republic and completed the
renovation of Hilton Playa del Carmen and the Hilton La Romana in
Dominican Republic. In 2021, Playa acquired two contracts to manage
the Yucatan Resort & Hyatt Ziva Riviera Cancun. Together these
properties added 2,564 rooms to Playa's total 8,366 rooms count.
This additional capacity coupled with the strengthening travel
demand support profitability recovery above 2019 levels. Although
competition will gradually stoke in successive quarters as
international borders reopen, occupancy recovery is less at risk
given the undersupply in the Latin American lodging industry that
resulted from the pandemic and that will not be restored before
2024. However, competition would have a larger impact on Playa's
ability to sustain ADRs. Also threatening rates are intrinsic risks
to Playa's markets, specifically safety concerns in Mexico.

Liquidity is adequate after measures taken by Playa to preserve
cash but refinancing risk is increasing. In January 2021, a public
offering of common shares resulted in gross proceeds of
approximately $125 million to Playa. The sale of the Dreams Puerto
Aventuras and the Capri hotels later in the year further added $90
million in cash. Playa also entered into agreements with lenders to
refinance, extend maturities and replace the leverage ratio
requirements under the financial covenants with a minimum liquidity
test through March 2022. As a result, Playa reported cash of $294
million in December 2021, well above the $173 million in 2020. Cash
in hand positively compares with a very low level of short-term
maturities. However, the bulk of Playa's debt is the $1.0 billion
senior secured term loan maturing in April 2024. Going forward
Moody's expects Playa to timely address refinancing risk and to
maintain strong cash balance.

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

The ratings could be upgraded if cash generation accelerates along
with travel recovery allowing Playa to recover credit metrics as
planned. Specifically, with debt/EBITDA sustained below 5.0x and
interest coverage above 2.0x. An upgrade will also require Playa
timely addressing refinancing risk.

Conversely, negative rating pressure will result from weaker than
anticipated travel demand either due to reimposition of travel bans
or restrictions or missteps in Playa's strategy through recovery.
Specifically, ratings could be downgraded if cash burn continues,
threatening Playa's ability to cover corporate expenses such as
interests, taxes and working capital with internal sources.

The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.

Playa Resorts Holding B.V. (Playa) owns and/or manages a portfolio
of 22 all-inclusive resorts (8,366 rooms) in beachfront locations
in Mexico, the Dominican Republic and Jamaica. As of December 2021,
revenues were $535 million. The company is publicly listed with a
market capitalization of around $1.5 billion. Major shareholders
are: Davidson Kempner Management, LLC which owns 9.3%, AIC Holdings
Group 7.3%, Goldman Sachs Group Inc. 7.3%, Rubric Capital
Management LP 7.0% and Sagicor 6.5%.


ZACATECAS MUNICIPALITY: Moody's Withdraws 'B1' Issuer Rating
------------------------------------------------------------
Moody's de Mexico S.A. de C.V., has withdrawn the B1 (Global Scale,
local currency) and Baa2.mx (Mexico National Scale) issuer ratings
of the Municipality of Zacatecas. Moody's has also withdrawn the
stable outlook and the b1 baseline credit assessment (BCA).

At the same time, Moody's de Mexico withdrew debt ratings of the
MXN110 million loan (original face value) with Banorte of Ba1/A1.mx
(Global Scale, local currency/Mexico National Scale) and the MXN40
million loan (original face value) with Banobras of Ba1/A1.mx
(Global Scale, local currency/Mexico National Scale).

RATINGS RATIONALE

Moody's has decided to withdraw the ratings for its own business
reasons.

The principal methodology used in rating the issuer ratings was
Regional and Local Governments published in January 2018.



=======
P E R U
=======

INRETAIL PHARMA: Fitch Hikes IDRs & Unsecured Bonds From BB+
------------------------------------------------------------
Fitch Ratings has upgraded InRetail Pharma S.A.'s Long-Term Foreign
and Local Currency Issuer Default Ratings (IDRs) and its senior
unsecured bonds to 'BBB-' from 'BB+'. Fitch has also upgraded
InRetail Real Estate Corp.'s IDRs and InRetail Shopping Malls'
senior unsecured bonds to 'BBB-' from 'BB+'. The Rating Outlook is
Stable.

The upgrades reflect improved cash flow generation from the food
and pharma segments during 2021 boosted by the Makro acquisition
and the reopening of shopping malls. Together this translates into
a robust capital structure aligned with an investment grade
credit.

InRetail's ratings consider the strong market position of the
retail business in Peru supported by its material scale and
diversified business profile in resilient sectors. Fitch expects
InRetail to maintain strong cash flow generation supportive of an
adequate capital structure and financial flexibility.

KEY RATING DRIVERS

Strong Consolidated Profile: Fitch views the credit profiles of
InRetail Pharma and InRetail Real Estate on a consolidated basis
and in alignment with that of their parent company, InRetail Peru,
due to its 100% ownership of both subsidiaries and no legal
ringfencing of their activities. Intercorp Retail acts as an
intermediate holding company between Intercorp and InRetail Peru.
Intercorp owns 71.5% of InRetail Peru.

Robust Retail Profile: The group's strong cash flow generation is
supported by its operations in the less discretionary food and
pharma retail segments with limited impact from weak macro-economic
fundamentals as demonstrated during the last couple of years. The
food segment reported Same Store Sales (SSS) of 7.8% in 2021 after
posting 17.7% in 2020 when social restrictions were imposed. The
pharma segment also posted strong SSS of 10.6% in 2021 after 4.5%
increase in 2020. The retail segment represented around 90% of the
group's consolidated EBITDA in 2021.

Leading Position in Shopping Malls: InRetail Real Estate is the
leading mall owner and operator in Peru, operating 21 malls. These
malls were negatively impacted during the pandemic when only
supermarkets, pharmacies and bank branches were allowed to
operate.

At year-end 2021, 90% of its GLA was opened compared to 80% at the
end of 2020. During this critical period, the company opted to
waive rents to accommodate the financial needs of its client base
and maintain healthy occupancy levels. To preserve liquidity, the
group cut operational costs to minimal levels and pushed back
expansionary capex. Occupancy levels remain healthy at 93% as of
Dec. 31, 2021.

Adequate Capital Structure: Fitch expects the group's capital
structure measured as net adjusted debt over EBITDAR to remain
adequate and below 4.0x during the next three years as expansionary
capex and dividend outflow is funded with internal cash flow
generation. Net leverage was 4.3x in 2021. The company's
retail-only net adjusted leverage is expected to remain 4.0x, while
the net adjusted leverage ratio for its real estate business should
fall to 6.5x.

Increasing Capex Levels: InRetail Peru expects to resume an
aggressive capex strategy in the retail segment that was put on
hold (land acquisitions) during the pandemic to maintain its
financial flexibility. Annual capex is expected to average PEN825
million during the next four years as it expands its food stores by
around 115 and pharma stores by around 80 per year. The pace of its
growing portfolio paired with high levels of dividends expected at
around PEN356 million per year will dictate the company's ability
to deleverage. This expansionary capex is flexible and could be
delayed in line with economic recovery. Maintenance capex was
PEN239 million in 2021 and PEN210 million during 2022-2024.

Economic Deceleration in Peru: The Peruvian economy grew 13.3% in
2021, beating Fitch's expectation of 11.9% growth. This result was
pushed by higher private investment and public consumption. These
factors contributed to GDP reaching pre-pandemic levels, before the
coronavirus pandemic caused an 11.0% decline in 2020. Fitch
projects economic growth of around 2.5% in 2022, largely affected
by the political climate and industry-level policy uncertainties,
stimulus withdrawal and a lower base effect. Inflation is also
expected to remain at 3.8% in 2022, similar to levels seen in
2021.

Parent Supports Ratings: Fitch rates the retail subsidiaries on a
standalone basis at 'BBB-'/Stable, the same ratings of the
consolidated profile at Intercorp Peru. If the Standalone Credit
Profile (SCP) of InRetail Pharma and InRetail Real Estate were
lowered to 'BB+'/Stable while Intercorp's ratings remain unchanged,
Fitch would then apply its Parent and Subsidiary Rating Criteria
and would follow the Strong Parent Path. It would then consider
factors such as legal, operational and strategic incentives for
Intercorp to support these two entities when determining whether or
not to downgrade them or rate them on a consolidated basis at
'BBB-'.

DERIVATION SUMMARY

InRetail Peru's consolidated financial profile is a key credit
driver for InRetail Pharma's and InRetail Real Estate's ratings,
due to the strong parent-subsidiary linkage. The group credit
profile is weaker than other regional peers such as El Puerto de
Liverpool, S.A.B. de C.V. (BBB+/Stable), Falabella S.A.
(BBB/Stable) and Cencosud S.A. (BBB-/Positive). All of these
entities operate multiple retail business segments and have a
strong brand presence which supports a solid competitive position
in the countries they operate. However, InRetail Peru's scale and
geographic diversification are considered weaker than regional
peers.

The group is rated one notch below Cencosud. Cencosud is a larger
player benefiting from large scale in the more resilient retail
food segment in Chile, Argentina, Peru, Brazil and Colombia.
Cencosud's capital structure is expected to remain strong during
the rating horizon. As of Dec. 31, 2021, net debt to EBITDA was
1.2x while that for InRetail group was at 3.6x.

The group is rated two notches below Falabella. Falabella's market
position is supported by its large and diversified integrated
operations in department stores, shopping malls and financial
services in Chile and Peru. Historically, both entities have
reported similar capital structure. As of Dec. 31, 2021,
Falabella's net leverage was 2.5x.

The group is rated three notches below El Puerto de Liverpool.
Liverpool's business concentration in Mexico is offset by its
diversified format and solid financial profile. Additionally, its
financial discipline is robust demonstrated by its historical
negative net leverage.

KEY ASSUMPTIONS

-- Opening 115 food stores on average every year until 2025;

-- Opening 80 pharma stores on average every year until 2025;

-- EBITDA margins stable at around 10.8% in the medium term;

-- Average annual capex of PEN825 million;

-- Average annual dividend payment of PEN356 million

RATING SENSITIVITIES

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

-- An upgrade of Intercorp combined with continuous linkage
perception between parent and subsidiaries;

-- Net adjusted leverage, measured as total adjusted net
debt/EBITDAR, consistently below 3.0x at InRetail Peru would be
viewed as positive;

-- Improved portfolio and geographic diversification;

-- Larger scale at sustainable profitable margins.

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

-- A downgrade of Intercorp combined with a perception of a weaker
linkage between the parent and the subsidiaries;

-- Net adjusted leverage, measured as total adjusted net
debt/EBITDAR, consistently above 4.0x at InRetail Peru;

-- Weak same-store sales and business trends;

-- Increasing vacancy rates in real estate segment.

LIQUIDITY AND DEBT STRUCTURE

Adequate Financial Flexibility: InRetail Peru's liquidity is
adequate and supported by strong cash flow generation, adequate
cash on hands and flexible amortization profile. As of Dec. 31,
2021, InRetail Peru consolidated cash position was PEN1.0 billion
while short-term debt was PEN640 million.

In 2021, InRetail Peru improved its financial flexibility through a
liability management initiative. The company issued two senior
secured notes (USD and local currency) for USD735 million. The
proceeds from the transactions were used to repay the Makro
acquisition bridge loan (USD375 million) and refinance Pharma's
subsidiary international notes (USD400 million) due in 2023.

Dividend distribution is expected to average PEN356 million in the
next four years.

ISSUER PROFILE

InRetail is a Peruvian multi-format retailer with food retail,
pharma and shopping mall operations. It also has pharmaceutical
operations in Ecuador and Bolivia. InRetail is controlled by
Intercorp Peru, one of Peru's largest business groups.

Debt/Entity             Rating                           Prior
-----------             ------                           -----
InRetail Shopping Malls

  senior unsecured       LT         BBB-      Upgrade      BB+

InRetail Pharma S.A.
                         LT IDR     BBB-      Upgrade      BB+
                         LC LT IDR  BBB-      Upgrade      BB+

  senior unsecured       LT         BBB-      Upgrade      BB+

InRetail Real Estate Corp.

                         LT IDR     BBB-      Upgrade      BB+

                         LC LT IDR  BBB-      Upgrade      BB+




=====================
P U E R T O   R I C O
=====================

E.R.G. INCORPORADO: Case Summary & 13 Unsecured Creditors
---------------------------------------------------------
Debtor: E.R.G. Incorporado
          d/b/a Motel Salinas
        Carr 3 KM 153.4 Aguirre Ward
        Salinas, PR 00751

Business Description: The Debtor is part of the traveler
                      accommodation industry.

Chapter 11 Petition Date: May 3, 2022

Court: United States Bankruptcy Court
       District of Puerto Rico

Case No.: 22-01272

Debtor's Counsel: Alexis A. Betancourt Vincenty, Esq.
                  LUGO MENDER GROUP, LLC
                  100 Carr. 165 Suite 501
                  Guaynabo, PR 00968-8052
                  Tel: (787) 707-0404
                  E-mail: a_betancourt@lugomender.com

Estimated Assets: $500,000 to $1 million

Estimated Liabilities: $1 million to $10 million

The petition was signed by Modesto Rivera Guzman, president.

A full-text copy of the petition containing, among other items, a
list of the Debtor's 13 unsecured creditors is available for free
at PacerMonitor.com at:

https://www.pacermonitor.com/view/C36PJYQ/ERG_Incorporado__prbke-22-01272__0001.0.pdf?mcid=tGE4TAMA





=====================================
T R I N I D A D   A N D   T O B A G O
=====================================

CARIBBEAN AIRLINES: Could Rehire Retrenched Employees
-----------------------------------------------------
RJR News reports that with several new routes added to its
schedule, Caribbean Airlines (CAL) says it will have to decide
whether any of the 280 employees who were retrenched in 2021 will
be rehired.

Responding to questions from the Trinidad-based Guardian Media,
CAL's corporate communication manager, Dionne Ligoure, said the
airline managed to save some jobs after suffering a near TT$173
million loss last year, according to RJR News.

About ten months ago, the airline announced it would retrench 450
workers after it took a huge loss during the COVID-19 pandemic, the
report notes.

Miss Ligoure says not all the employees set to be retrenched were
sent home, the report relays.

Asked if Caribbean Airlines would consider rehiring any of the 280
employees, Miss Ligoure said it would take a wait and see approach,
the report discloses.

Caribbean Airlines is reportedly still reviewing its operational
and hiring needs and make adjustments as required, the report
adds.

                   About Caribbean Airlines

Caribbean Airlines Limited - http://www.caribbean-airlines.com/-  

provides passenger airline services in the Caribbean, South
America, and North America.  The company also offers freighter
services for perishables, fish and seafood, live animals, human
remains, and dangerous goods.  In addition, it operates a duty
free store in Trinidad. Caribbean Airlines Limited was founded in
2006 and is based in Piarco, Trinidad and Tobago.

Caribbean Airlines is among many airlines whose business has been
greatly affected in 2020 by the slowdown of international travel
caused by the COVID-19 pandemic.  The government of Trinidad &
Tobago guaranteed a US$65 million loan for the airline, and that
funding has helped with the airlines' cash flow shortfall since
May 2020.  In September 2020, the airline related it will be
taking cost-cutting measures to help keep it afloat.  The measures,
which was to affect some 1,700 employees, included salary
deductions, no-pay leaves and lay-offs.


TRINIDAD PETROLEUM: S&P Puts 'B+' Rating on CreditWatch Developing
------------------------------------------------------------------
On May 3, 2022, S&P Global Ratings placed its 'B+' rating on
Trinidad and Tobago-based oil and gas producer Trinidad Petroleum
Holdings Limited (TPHL), the 'B+' issue-level rating on its 9.75%
senior secured notes due 2026, and the 'B' rating on its 6.00%
senior unsecured senior notes due 2022 on CreditWatch with
developing implications.

S&P expect to resolve the CreditWatch placement when it has
sufficient additional information on the company's liquidity
position and capital structure post-transaction.

TPHL announced it intends to refinance about TT$6.8 billion of its
total debt through its operating subsidiary Heritage Petroleum
Company Limited (Heritage) under a proposed senior secured bond and
a new term loan.

S&P expects the proposed debt refinancing to align debt to the
level of the main operating business, resulting in less liquidity
pressure for TPHL.

Heritage will refinance most of the debt of its holding company
through the proposed issuance of a bond for up to $700 million and
a new term loan of approximately $380 million. The proposed debt
structure will incorporate a more comfortable amortization schedule
through which we expect Heritage will be able to allocate part of
its cash generation for growth and expansion capital expenditures.

The refinancing will also allow TPHL to remove all active covenants
that, while under breach, force TPHL to classify all debt as
short-term on its balance sheet.

Moreover, S&P expects the company to strengthen its liquidity
position and continue focusing on growth prospects. If TPHL
successfully carries out the expected transaction, it would most
likely raise our ratings on the company.



                           *********


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

Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Peter A. Chapman at 215-945-7000.
.


                  * * * End of Transmission * * *