/raid1/www/Hosts/bankrupt/TCRLA_Public/220531.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
Tuesday, May 31, 2022, Vol. 23, No. 102
Headlines
B R A Z I L
BRAZIL: Consumer Prices Hit Six-Year High in Mid-May
BRAZIL: Highest Structural Surplus in 13 Yrs, Says Economy Ministry
BRAZIL: Poll Shows 58% Believes Economy is on Wrong Track
RUMO SA: Fitch Affirms 'BB+/BB' LongTerm Issuer Default Ratings
C O L O M B I A
BANCO DE BOGOTA: S&P Affirms 'BB+/B' ICRs Following Spin-Off
GRAN TIERRA: Fitch Raises LongTerm IDRs to B, Outlook Stable
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Government Freezes Fuel Prices
[*] DOMINICAN REPUBLIC: No U.S. Envoy to Country For Now
J A M A I C A
JAMAICA: Pursuing Unemployment Insurance For Workers
P E R U
CAMPOSOL HOLDING: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable
P U E R T O R I C O
INNOVA INDUSTRIAL: Starts Chapter 11 Subchapter V Case
- - - - -
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B R A Z I L
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BRAZIL: Consumer Prices Hit Six-Year High in Mid-May
----------------------------------------------------
Rio Times Online, citing Reuters, reports that Brazilian consumer
prices rose more than expected in the month to mid-May, statistics
agency IBGE said, marking the sharpest jump for the period in six
years as the country grapples with galloping inflation.
The IPCA-15 consumer price index rose 0.59% in the month, according
to IBGE, the report notes.
That was down from 1.73% in the previous month as the central bank
has raised interest rates aggressively, but still above
expectations of a 0.45% rise, according to the median forecast in a
Reuters poll, the report relays.
Inflation in the 12 months to mid-May hit 12.20%, up from 12.03% in
mid-April, the report relays. Analysts had expected it to remain
at 12.03%, the poll showed, the report discloses. Prices for eight
of nine categories of products and services surveyed were up in
mid-May, the report relays.
The biggest impact came from transportation, with costs up 1.8%,
even though decelerating from the 3.43% increase seen a month ago,
IBGE said, the report adds.
About Brazil
Brazil is the fifth largest country in the world and third largest
in the Americas. Jair Bolsonaro is the current president, having
been sworn in on Jan. 1, 2019.
As reported in the Troubled Company Reporter-Latin America on April
15, 2022, Moody's Investors Service 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.
Standard & Poor's credit rating for Brazil stands at BB- with
stable outlook (April 2020). S&P's 'BB-/B' long-and short-term
foreign and local currency sovereign credit ratings for Brazil
were affirmed in December 2021 with stable outlook. Fitch Ratings'
credit rating for Brazil stands at 'BB-' with a negative outlook
(November 2020). Fitch's 'BB-' Long-Term Foreign and Local
Currency Issuer Default Ratings (IDRs) has been affirmed in
December 2021. DBRS's credit rating for Brazil is BB (low) with
stable outlook (March 2018).
BRAZIL: Highest Structural Surplus in 13 Yrs, Says Economy Ministry
-------------------------------------------------------------------
Rio Times Online reports that Brazil registered last year the best
structural result in 13 years, with a positive balance equivalent
to 2.37% of the GDP (Gross Domestic Product) in the accounts of the
federal government, states, municipalities, and state-owned
companies.
The data exclude atypical events such as spending linked to
covid-19, according to Rio Times Online.
The result of the government, states, municipalities, and
state-owned companies without extraordinary revenues and expenses
reached 2.37% of the GDP in 2021, the report notes.
About Brazil
Brazil is the fifth largest country in the world and third largest
in the Americas. Jair Bolsonaro is the current president, having
been sworn in on Jan. 1, 2019.
As reported in the Troubled Company Reporter-Latin America on April
15, 2022, Moody's Investors Service 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.
Standard & Poor's credit rating for Brazil stands at BB- with
stable outlook (April 2020). S&P's 'BB-/B' long-and short-term
foreign and local currency sovereign credit ratings for Brazil
were affirmed in December 2021 with stable outlook. Fitch Ratings'
credit rating for Brazil stands at 'BB-' with a negative outlook
(November 2020). Fitch's 'BB-' Long-Term Foreign and Local
Currency Issuer Default Ratings (IDRs) has been affirmed in
December 2021. DBRS's credit rating for Brazil is BB (low) with
stable outlook (March 2018).
BRAZIL: Poll Shows 58% Believes Economy is on Wrong Track
---------------------------------------------------------
Rio Times Online reports that a survey conducted by PoderData from
May 22 to 24, 2022, shows that more than half of the Brazilian
population (58%) is pessimistic about the development of the
Brazilian economy.
Another 32% believe that the economic situation in the country is
on the right track, while 10% could not answer, according to Rio
Times Online.
Among those who agree with the federal government, 77% responded
that Brazil's economy is on the right track. Among those who
disapprove of Bolsonaro's government, 90% have the opposite view,
the report adds.
About Brazil
Brazil is the fifth largest country in the world and third largest
in the Americas. Jair Bolsonaro is the current president, having
been sworn in on Jan. 1, 2019.
As reported in the Troubled Company Reporter-Latin America on April
15, 2022, Moody's Investors Service 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.
Standard & Poor's credit rating for Brazil stands at BB- with
stable outlook (April 2020). S&P's 'BB-/B' long-and short-term
foreign and local currency sovereign credit ratings for Brazil
were affirmed in December 2021 with stable outlook. Fitch Ratings'
credit rating for Brazil stands at 'BB-' with a negative outlook
(November 2020). Fitch's 'BB-' Long-Term Foreign and Local
Currency Issuer Default Ratings (IDRs) has been affirmed in
December 2021. DBRS's credit rating for Brazil is BB (low) with
stable outlook (March 2018).
RUMO SA: Fitch Affirms 'BB+/BB' LongTerm Issuer Default Ratings
---------------------------------------------------------------
Fitch Ratings has affirmed Rumo S.A. (Rumo)'s Long Term Local
Currency (LC) Issuer Default Rating (IDR) at 'BB+', Long Term
Foreign Currency (FC) IDR at 'BB' and unsecured bonds issued by
Rumo Luxembourg S.a.r.l. at 'BB'. Fitch has also affirmed Rumo and
its subsidiaries' National Long-Term Ratings and unsecured
debentures at 'AAA(bra)'. The Rating Outlook for the LC IDR and the
National Long-Term Ratings is Stable, and the Outlook for the FC
IDR is Negative.
Rumo's ratings incorporate its solid business position as one of
the largest railroad operators in Brazil, with expected solid
operating margins. Fitch expects the group will maintain strong
liquidity and low to moderate net leverage despite of the
forecasted negative free cash flows (FCFs) for the coming years.
Rumo has a high capex program, which should strength its network
and add volumes transported. The 'BB' FC IDR is capped by Brazil's
country ceiling, while its Negative Outlook mirrors the Outlook of
the sovereign's IDRs.
KEY RATING DRIVERS
Solid Business Fundamentals: Railroad sector risks are low due to
strong demand and limited competition. Rumo benefits from its
market position as the main rail transportation company in the
South and Midwest regions of Brazil, with ample network through
five concessions to operate more than 13,000 km of tracks and
access to three ports. Due to a low cost structure, the company has
solid competitive advantages over truck transportation, which
supports stable demand and limits volume volatility over cycles.
The new projects of Rumo Malha Central line and expansion of Rumo
Malha Norte up to Lucas do Rio Verde are credit-positives, as these
lines offer opportunities for capturing greater grain volumes. Rumo
should transport 73 billion revenue ton kilometer (RTK) in 2022,
around 80% already contracted, compared to 64 billion RTK in 2021.
Volumes should increase by approximately 6.5% annually from 2023 to
2025, driven by the ramp-up of Rumo Malha Central network, combined
with market share gains in other rail nets. Rumo's primary cargo is
agricultural products that are predominately exported, mainly
soybean and soymeal (46%), corn (20%), fertilizers (8%) and sugar
(7%), based on 2021 results.
Capex Pressures FCF: Fitch expects Rumo's EBITDA margin to reach
41% during 2022, as the increasing cost of fuel and pre-operational
expenses of the new projects should be offset by the maturing of
Rumo Malha Central. It is likely to gradually improve to 45%-50%
over the rating horizon, while the company gains scale. Margin
reduction to 38% in 2021 was due to pre-operating expenses related
to Rumo Malha Central's new concession contract and the concession
renewal fee for Rumo Malha Paulista, besides the tariff and volumes
contraction during the second half of the year.
Fitch's rating case forecasts EBITDA and funds from operations
(FFO) of BRL3.7 billion and BRL2.1 billion in 2022, and BRL4.6
billion and BRL2.8 billion in 2023, respectively. New capex
requirements from the concession renewal at Rumo Malha Paulista and
for extension of Rumo Malha Norte up to Lucas do Rio Verde will
likely put pressure on FCF. Fitch projects elevated capex of around
BRL19 billion in 2022-2025 to result in negative FCF of roughly
BRL6.0 billion in the period.
Low to Moderate Leverage: Rumo should present low to moderate
leverage ratios even during the high investment period. Base case
scenario expects improvements in Rumo's operating cash flow
generation, with gains of scale from investments, resulting in net
debt-to-EBITDA ratio of 2.7x in 2022, after peaking at 3.3x in
2021, and close to 2.5x over the rating horizon. Gross leverage,
forecast at 4.2x for 2022, should also decline towards 3.5x over
the medium term, benefitting from the prepayment of USD 500 million
bonds this year, which would mature in 2025.
Credit Linkage Incorporated: Rumo's ratings reflect its standalone
credit profile (SCP). According to Fitch's Parent and Subsidiary
Linkage Rating Criteria, if the SCPs of parent and subsidiary are
the same, then their IDRs are the same despite the ties between
them. Rumo's parent, Cosan S.A. (Cosan) has a FC IDR of
'BB'/Negative, a LC IDR of 'BB+'/Stable, and a National Long-Term
Rating of 'AAA(bra)'/Stable). The ratings of Rumo and its
subsidiaries are equalized due to strong operational and legal
incentives that Rumo would have to support them, if needed. Rumo
guarantees a significant part of the subsidiaries' debt, and there
are cross-default on the debt. Strong operating synergies,
centralized cash management and shared management also reinforce
the equalizations.
DERIVATION SUMMARY
Rumo's LC IDR is lower than Brazilian peer MRS Logistica S.A.'s
(MRS) 'BBB-'/Negative LC IDR. MRS is the best-positioned railroad
in Brazil, due to its more resilient cargo profile, record of
positive FCF, captive customer base who also are shareholders, and
lower net leverage. Additionally, Fitch expects negative FCF for
Rumo during the rating horizon.
Rumo's and MRS's LC IDRs are lower than those of other mature, more
geographically diversified and less leveraged rail companies in
Mexico, the U.S. and Canada, such as Kansas City Southern
('BBB'/Stable). Rumo's LC IDR is above that of Hidrovias do Brasil
S.A. (HdB; LC IDR 'BB-'/Stable) due to Rumo's ability to generate
more stable operating cash flow and to finance its large
investments to increase volumes. Fitch expects HdB's net leverage
to remain higher than Rumo's over the next two to three years.
KEY ASSUMPTIONS
-- Agricultural volumes in North and South networks to increase
by average 8%, in 2022, and 5%, in 2023;
-- Central network volume to reach 8 billion RTK in 2022 and 10
RTK in 2023;
-- Industrial volumes to increase by 2.9% in 2022 and 1.8% in
2023;
-- Average tariffs to increase by 7.7% in 2022 and 6.7% in 2023;
-- Total capex of BRL18.9 billion in 2022-2025, with BRL2.8
billion in 2022;
-- 25% of net income as dividends from 2022 onwards.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Upgrades on Rumo's LC IDR depend on positive FCF trends and
maintenance of net leverage below 3.0x;
-- Positive actions on the sovereign rating may lead to positive
actions on Rumo's FC IDR, which is limited by the Brazilian
Country Celling;
-- Positive actions on National Long-Term Rating do not apply, as
the rating is at the top of the national scale category;
-- If Cosan's LC IDR is upgraded by one or two notches, Rumo's LC
IDR would be upgraded to 'BBB-', assuming Cosan's incentives
to support Rumo remain unchanged;
-- If Cosan LC IDR is upgraded in more than two notches, Rumo's
LC IDR would be upgraded to 'BBB', assuming Cosan's incentives
to support Rumo remain unchanged.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- An inability to finance capex with long-term and low-cost
debt, pressuring Rumo's debt amortization schedule;
-- Substantial weakening of its EBITDA margins;
-- Net adjusted leverage trends above 3.5x on a sustained basis;
-- If Cosan LC IDR is downgraded to 'B+' or below, Rumo's LC IDR
would be downgraded to Cosan's rating plus two notches, in
case Cosan's access to Rumo's cash remains unchanged.
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: The ratings incorporate that Rumo will keep a
healthy liquidity position over the next years, despite of the
investment cycle. The group's ability to raise long-term funds to
finance the forecasted negative FCF and refinance the existing debt
amortization is a positive credit consideration. On March 31, 2022,
Rumo had cash and equivalents of BRL7.7 billion, after the
prepayment of BRL2.6 billion in senior notes that would mature in
2025. Rumo's consolidated total debt of BRL17.2 billion was mainly
composed of senior notes (BRL4.2 billion, net of derivatives),
Banco Nacional de Desenvolvimento Economico e Social (BNDES, BRL2.9
billion) and debentures (BRL8.2 billion).
ISSUER PROFILE
Rumo is Latin America's largest independent rail-based logistics
operator, offering complementary services of railroad
transportation, port terminal and warehousing services. Its service
area extends over Mato Grosso, Sao Paulo and other southern states
in Brazil. The company is the logistics arm of Cosan Group.
SUMMARY OF FINANCIAL ADJUSTMENTS
-- Confirming (reverse factoring) operations adjusted Rumo's
debt;
-- Fitch considers restricted cash (including long term) as
readily available liquidity;
-- Net derivatives adjusted to debt; D&A excluded from COGS;
Dividends from associates and minorities are adjusting EBITDA;
-- Fitch considers as operating expenses, impacting EBITDA, the
lease and concession expenses.
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.
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C O L O M B I A
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BANCO DE BOGOTA: S&P Affirms 'BB+/B' ICRs Following Spin-Off
------------------------------------------------------------
S&P Global Ratings affirmed its global scale 'BB+/B' long- and
short-term issuer credit ratings on Banco de Bogota S.A. (BBogota).
At the same time, S&P affirmed its 'BB+' issue-level rating on
BBogota's $600 million senior unsecured notes. The outlook remains
stable.
As of March 31, 2022, BBogota had completed the spin-off of 75% of
BAC Holding International Corp. (BHI, formerly Leasing Bogota
Panama S.A.; not rated), which fully owns BAC International Bank
Inc. (BIB; BBB-/Stable/A-3). Despite losing close to 50% of its
total assets with the spin-off, BBogota remains one of the largest
banks in the Colombian banking sector, with large brand recognition
and a solid geographic footprint stemming from Multifinancial Group
(MFG) in Panama and the minority equity holding it kept in BHI
(25%).
BBogota remains the third largest bank in Colombia, with market
shares of 13.5% of assets and 11.7% of loans. Additionally, it
maintains strong brand recognition in Colombia. S&P said, "We think
that the bank will continue growing its loan portfolio by 9%-10%,
driven by its digitalization strategy that allows it to target a
broader client base. We don't expect the spin-off to jeopardize the
bank's business stability or revenue-generating capabilities."
BBogota's Colombian operations remain adequately diversified in
terms of product offering, with commercial loans representing the
bulk of the portfolio (67%), followed by consumer loans (22%) and
mortgages (11%). Additionally, because of its 25% stake in BHI and
full ownership of MFG, the bank continues to have a diversified
geographic footprint in Central America.
BBogota's capital assessment continues to be a major weakness for
the bank. However, in 2021, the bank's earnings increased,
supported by lower new loan loss provisions stemming from the
economic recovery in Colombia and in the region, and by its
extraordinary income from the Porvenir deconsolidation. This
resulted in a RAC ratio of 4.8% as of December 2021.
However, in the first quarter of this year, BBogota's capital
structure changed after it spun off the majority of BHI. Its RWAs
decreased nearly 50%, partially outweighed by a decrease in its
common shareholder's equity of nearly 60%. Additionally, BBogota
lost its AT1 subordinated notes because BIB had issued them.
Finally, the minority equity participations that the bank has been
accumulating throughout the years (mainly in Porvenir,
Corficolombiana, and BHI) also pressure its capital ratios. All of
the above factors result in a RAC ratio of 4.2% as of March 2022.
We expect that internal capital generation with similar payout
ratios (close to 50%) will gradually increase its RAC ratio to an
average near 4.4% for the next 24 months.
After the spin-off, the bank's NPAs increased with the new
corporate structure, and now more closely resemble the asset
quality of its Colombian portfolio. NPAs increased to 3.8% as of
March 2022 from 2.8% as of December 2021. We forecast NPAs will
stay high because of the new portfolio composition and, to a lesser
extent, due to the phasing out of the remaining support programs
and restructures granted that could also hurt BBogota's asset
quality this year. As of March 2022, relief programs only represent
about 1% of total consolidated loans, and all of them from Panama.
However, the bank opted to extend additional restructures to some
clients that the pandemic is still affecting, and these still
represent about 8.9% of the total loan portfolio. In addition, we
forecast net charge-offs (NCOs) will also increase as the bank
cleans the loan portfolio from this deterioration. We expect that
NPAs plus NCOs for 2022 will hover around 7%, in line with our
expectations for the rest of the Colombian banking system. Finally,
for 2023, we forecast that asset quality will gradually improve to
near 6.5% as economic conditions recover.
BBogota's deposit base proved to be very stable among challenging
economic conditions during the pandemic. Furthermore, the bank's
funding profile didn't suffer any major changes from the BHI
spin-off because the funding mix profile stayed relatively similar
-- it just decreased in volume. Deposits now account for 74% of its
total funding from 82% before the transaction. The overall
Colombian banking system's deposits are around 78%; in line with
BBogota's current metrics. The rest of the funding profile is now
composed of credit lines (12.0%), market debt (10.3%), and repos
(3.7%). BBogota's stable funding ratio (SFR) decreased to 100% from
113% and its loans-to-deposits (LTD) ratio is now 101% from 90% as
of December 2021. In our view, deposits will keep growing because
of the bank's digital strategy and an expected increase in interest
rates following the high inflation in the region, which will
gradually improve funding metrics toward previous levels.
The bank's liquidity position was also affected by BHI's
deconsolidation, but remains sound. BBogota's broad liquid assets
to short-term wholesale funding declined to 1.2x as of March 2022
from 2.9x in December. The bank has maintained prudent management
and a proactive stance toward its liquidity during stress periods
and has adequate management of market debt gaps. We expect
liquidity to remain solid as its deposit base grows and the bank
starts leveraging its digital strategy in the Colombian market.
ESG credit indicators: E-2, S-2, G-2
GRAN TIERRA: Fitch Raises LongTerm IDRs to B, Outlook Stable
------------------------------------------------------------
Fitch Ratings has upgraded Gran Tierra Energy International
Holdings Ltd's (GTE) Long-Term Foreign and Local Currency Issuer
Default Ratings to 'B' from 'B-', and has upgraded the company's
senior unsecured notes ratings to 'B'/'RR4' from 'B-'/'RR4'. The
Rating Outlook is Stable.
Fitch has also assigned Long-Term Foreign and Local Currency Issuer
Default Ratings to Gran Tierra Energy Inc. of 'B' with a Stable
Outlook and a 'B/RR4' rating to the proposed issuance of up to
USD600 million of amortizing senior secured notes due in 2029. Net
debt proceeds will be used to exchange any and all of the
outstanding 6.25% senior unsecured notes due 2025 issued by Gran
Tierra Energy International Holdings Ltd. and 7.750% senior
unsecured notes due 2027 issued by Gran Tierra Energy Inc.
The upgrades reflect GTE's improved leverage profile and cash flow
profile supported by strong Brent prices and its low cost of
production. The company generated USD93 million in FCF and paid
USD190million of its revolving credit facility by YE 2021. GTE's
gross leverage is expected to be 1.2x in YE 2022 compared with 8.6x
in 2020, and total debt to 1P is expected to be USD9.97/boe
compared with USD12.16/boe in 2020.
KEY RATING DRIVERS
Liability Management: The liability management exercise of its
outstanding 2025 and 2027 is expected to improve its debt maturity
profile and lower leverage over the rated horizon. GTE will issue
up to USD600 million senior secured notes with intermediate
maturity (five to seven years). The new notes will be secured by a
first priority liens on the collateral, which is the equity of its
operating entities: Gran Tierra Colombia Inc. and Gran Tierra
Energy Colombia, LLC.
Improved Financial Profile: GTE's gross leverage improved to 2.7x
in 2021 from 9.2x in 2020, and is expected to further improve to a
proforma of 1.2x by YE 2022. Leverage reduction in 2021 was
supported by stronger Brent prices and by the reduction in the
outstanding balance of its revolving credit facility to USD67.5
million as of YE 2021 from USD190 million in FY20. As of May 2022,
GTE reported an outstanding balance of USD10 million on the
revolver, down by USD30 million compared with 1Q21.
The rating case assumes that Gran Tierra Energy Inc. will issue up
to USD600 million of senior secured notes with intermediate
maturity (five to seven years) to refinance GTE's outstanding debt.
Total debt to 1P is expected to be close to USD9.97/boe in 2023, an
improvement from its USD12.16/boe in 2020.
Small Production and Reserve Profile: GTE has a small and
concentrated production profile, which averaged 26,507boed in 2021.
Production is expected to increase to an average of 31,796boed in
2022, and gradually increase to an average of 38,000boed between
2023 through 2026, with Acordionero averaging nearly 50% of total
production and Costayaco averaging 20% of the time period. GTE's
PDP and 1P reserve life is stable and is expected to reaming flat
at 4.0 year and 6.9 years respectively in 2022.
Low-Cost Production Profile: GTE's half-cycle cost of production
was USD24.9/boe in 2021, relatively unchanged compared to 2020.
GTE's production profile compares well with its Colombian peers and
allows the company greater financial flexibility to absorb shocks
in pricing, which was the case in 2020. Further, the lower cost of
production has allowed GTE to sell at a deeper discount than peers.
The rating case is assuming GTE will sell at an average discount to
Brent of USD9.0/bbl over the rated horizon.
Improved Liquidity Profile: GTE's liquidity position improved as
the company pay down USD122.5 million of RCF during 2021. In 2022,
GTE's liquidity profile as Fitch forecasts FCF positive in 2022;
FFO is estimated to be USD644 million, explained by USD585 million
EBITDA minus interest expense of USD52 million plus a cash tax
credit close to USD40.0 million. Furthermore, the liability
management exercise will ease the company's debt maturity profile.
The rating case is assuming GTE will have positive change in
working capital of USD71 million, resulting in a Fitch defined cash
flow from operations of USD644 million, coupled with an annual
capex budget of USD238 million resulting in an FCF of USD406
million. The rating case is assuming all FCF will be allocated to
repay the revolver due in 2022; after which, the company will
strengthen its cash position rather than rely on a revolver for
liquidity.
DERIVATION SUMMARY
Gran Tierra Energy's (GTE) credit and business profile is
comparable with other small independent oil producers in Colombia.
The ratings of SierraCol Energy (B+/Stable), Geopark (B+/Stable)
and Frontera Energy Corporation (B/Stable) are all constrained to
the 'B' category or below, given the inherent operational risk
associated with small scale and low diversification of their oil
and gas production.
GTE's production profile compares favorably with other 'B' rated
Colombian oil exploration and production companies. Over the rated
horizon, Fitch expects GTE's production will average 36,000boed,
this is at the same level of SierraCol's, and lower than Geopark
and Frontera, both of which are expected to be 45,000boed. GTE's
PDP reserve life is expected to be 3.8 years and 1P reserve life of
6.0 years, which compares well with SierraCol's PDP reserve life of
4.8 years and 1P reserve life of 6.3 years in 2021, Frontera at 1.6
years and 6.2 years, and Geopark at 4.0 years and 7.4 years.
GTE's half-cycle production was USD24.9/boe in 2021 and full-cycle
cost to be USD40.0/boe. This is higher than SierraCol's half-cycle
production cost of USD13.70/bbl in 2020 and full-cycle cost was
USD26.60/bbl and Geopark, who is the lowest cost producer in the
region at USD13.60/bbl and USD23.40/bbl, but better than Frontera's
at USD28.60/bbl and USD42.20/bbl.
GTE's 2021 capital structure is expected to improve to 1.2x gross
leverage, defined as total debt to EBITDA, compared with 8.6x in
2020. GTE's total debt to PDP is expected to be USD15.87boe and
total debt to 1P be USD9.97/boe in 2022. This is higher compared
with peers SierraCol at a gross leverage that will average 1.0x
over the rated horizon and a pro-forma total debt to PDP of USD7.50
bbl and total debt to 1P of USD5.68/bbl, and Geopark gross leverage
of 1.8x and debt to PDP of USD10.24bbl and 1P of USD5.48/bbl; GTE
is more in line with Frontera at 1.5x, USD19.93/bbl and USD4.98
bbl.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within the Rating Case for the Issuer:
-- USD600 million of new debt is issued to refinance GTE's
outstanding 6.25% senior unsecured notes due 2025 issued by
Gran Tierra Energy International Holdings Ltd. and 7.750%
senior unsecured notes due 2027 issued by Gran Tierra debt.
The new bond is assumed to carry an interest rate of
approximately 8.75%. The bond has equal amortizations between
2027 and 2028 with a balloon repayment in 2029;
-- Fitch's price deck of USD100/bbl in 2022, USD80/bbl in 2023,
USD60/bbl in 2024 and USD53/bbl long term;
-- Working interest production of 31,796boed in 2022, 40,000boed
in 2023 and 35,000boed long term;
-- Flat USD9/bbl vasconia discount to Brent from 2022-2025;
-- Well head sales transportation discount of USD10/bbl-USD11/bbl
on average between 2022-2024;
-- Royalties of USD21/bbl in 2022 and average of USD10.03/bbl
from 2022-2026;
-- Operating expenses flat at USD12.50/boe over the rating
horizon;
-- Transportation cost of USD1.25/boe over the rating horizon;
-- SG&A cost of USD3.00/boe over the rating horizon;
-- Capex total of USD717 million between 2022-2024, an average of
USD179 million per year;
-- No dividends or share repurchases during 2022-2024;
-- 1P Reserve Replacement of 105%.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Net production maintained at 45,000boed or more, while
maintaining a 1P reserve life of seven years or greater;
-- Maintain a conservative financial profile with gross leverage
of 2.5x or below and total debt/1P reserves of USD8/bbl or
below.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Sustainable production size declines to below 30,000boed;
-- 1P reserve life declines to below seven years on a sustained
basis;
-- A significant deterioration of credit metrics to total
debt/EBITDA of 3.5x or more;
-- A persistently weak oil and gas pricing environment that
impairs the longer-term value of its reserve base;
-- Sustained deterioration in liquidity below USD200 million and
operating profile, particularly in conjunction with more
aggressive dividend distributions than previously anticipated.
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
Improved Liquidity: The company's liquidity profile improved in
2021. GTE reported USD58.7 million in cash on March 31, 2022. The
rating case assumes GTE is expected to be FCF positive between
2022-2023 and that the company will end 2022 with USD480 million in
cash, with coverage ratios above 3.0x and liquidity is expected to
be at a minimum of USD200 million over the rated horizon.
Furthermore, the liability management exercise will ease the
company's debt maturity profile.
ISSUER PROFILE
Gran Tierra is an independent energy company with an average oil
production of approximately 30,000boed onshore in Colombia. GTE's
blocks are located in the Middle Magdalena, Llanos and Putumayo
basins. The company had 67MMboe of 1P reserve and 6.9-year reserve
life as of FY21.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
DEBT RATING RECOVERY PRIOR
---- ------ -------- -----
Gran Tierra Energy Inc. LT IDR B New Rating
LC LT IDR B New Rating
senior unsecured LT B Upgrade RR4 B-
senior secured LT B New Rating RR4
Gran Tierra Energy
International Holdings Ltd.
LT IDR B Upgrade B-
LC LT IDR B Upgrade B-
senior unsecured LT B Upgrade RR4 B-
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Government Freezes Fuel Prices
--------------------------------------------------
Dominican Today reports that for the week from May 28 to June 3,
2022, the Dominican Republic Ministry of Industry, Commerce, and
MiPymes provides that fuels will be marketed at the following
prices:
- Premium Gasoline will be sold at RD$293.60 per gallon,
maintaining its price.
- Regular Gasoline RD$274.50 per gallon holds its price.
- Regular Gasoil RD$221.60 per gallon keeps its price.
- Gasoil Optimo RD$241.10 per gallon maintains its price.
- Avtur RD$298.91 per gallon maintains its price.
- Kerosene RD$338.10 per gallon maintains its price.
- Fuel Oil #6 RD$192.11 per gallon maintains its price.
- Fuel Oil 1%S RD$211.77 per gallon maintains its price.
- Liquefied Petroleum Gas (LPG) RD$147.60 per gallon
maintains its price.
- Natural Gas RD$28.97 per m3 maintains its price.
The Dominican government maintains its fuel subsidy plan with more
than RD$1,063 million, preventing gasoline, gas, and diesel from
increasing by up to 80 pesos; this was announced by the vice
minister of Internal Commerce, RamOn Perez Fermin, the report
notes.
As of May 25, the international price of WTI averaged US$111.17,
for a slight increase of 0.5% over the previous week's average,
which amounted to US$110.56, reflecting the WTI an accumulated
increase of 43.0%, the report relays.
"In the face of the complex panorama, the government of President
Luis Abinader remains determined to protect the pockets of
Dominicans, giving continuity to the subsidies of all fuels and
assuming 100% of the increases," explained Perez, the report
discloses.
He emphasized that this action prevents Dominicans from paying
increases ranging from 6.50 pesos per gallon in the case of LPG, 71
pesos per gallon in the case of Premium Gasoline, almost 80 pesos
in the case of Regular Gasoline, and nearly 74 pesos per gallon in
the case of Regular and Optimum Gasoil, 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: No U.S. Envoy to Country For Now
--------------------------------------------------------
Dominican Today reports that United States President Joe Biden
withdrew Calvin Smyre's nomination as United States Ambassador to
the Dominican Republic, and remitted his appointment under the same
position in The Bahamas.
After withdrawing the nomination, Biden did not name another person
for the position in the DR, leaving the post vacant, according to
Dominican Today.
On the subject, Adriano Espaillat, a Dominican representative in
NY, and a member of the US Congress, the place where these
nominations made by the president are approved, the report notes.
"The president understood that Smyre would do a better job in The
Bahamas than in the Dominican Republic, and that's why he made the
change," Espaillat said, the report relays.
The congressman also said that, for the time being, Biden will not
nominate a new ambassador to the country, the report says.
"There is no one on the list and there has been no discussion," 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.
=============
J A M A I C A
=============
JAMAICA: Pursuing Unemployment Insurance For Workers
----------------------------------------------------
Trinidad Express reports that as the country observed Labor Day,
the Jamaican government says it is actively pursuing efforts aimed
at introducing unemployment insurance for workers.
"We are examining the feasibility of implementing unemployment
insurance in Jamaica to assist workers who become unemployed
through no fault of their own," Prime Minister Andrew Holness said
in a message marking Labour Day which is being observed here under
the theme ""Reigniting a National for Greatness: Protect our
Heritage and Environment," according to Trinidad Express
He said the initiative would "temporarily provide workers with
partial income relief while they search for new employment, the
report relays.
"Additionally unemployment insurance support would facilitate the
acquisition of new skills to increase and improve their
employability," Holness said, noting that the most important role
of the government for workers "is to ensure that the economy is
growing and generating employment," the report notes.
He said Jamaica is recovering from the coronavirus (Covid-19)
pandemic and that the local economy is growing, with more and more
jobs being created, the report discloses.
"Jamaica's unemployment rate of 6.2 per cent in January 2022 is the
lowest ever recorded in Jamaica's history. In spite of turbulent
times Jamaica is heading in the right direction. This shows the
strength of our macro economy and the resilience of our labor
force, the report relays.
"However, this recovery is still a work in progress. The impacts
of the Covid-19 pandemic and now the war in Ukraine have unleashed
the greatest wave of global inflation seen in over 40 years. Import
prices in fuel and food are rising in countries all around the
world at the same time (and) while we all know that this inflation
has causes outside of Jamaica, it still does not make it easy for
the average household to absorb," said Holness, the report notes.
He said these external shocks were occurring against the backdrop
of the island's long fiscal adjustment "which was secured by the
sacrifice of workers which resulted in a rehabilitation of our
economy, but had real impacts on public sector salaries," the
report discloses.
He said in addition there are many instances where the structure of
the public sector compensation "is unfair and inequitable, the
report relays.
"This is so in Central Government as well as in public bodies. The
inequities in the structure of public sector compensation are not
new," Holness said, adding it did not arise "overnight," the report
discloses.
"Decades of tinkering with compensation systems without solving
fundamental issues are contributing factors. However, this
government . . . . has decided to take on this decades old problem
because we care about our workers and we recognise that the current
structure is untenable," the report says.
Holness said his administration, working in partnership with public
sector trade unions, made the decision "for us all to engage in the
hard work of addressing the structural inequities in public sector
compensation through a major public sector restructuring exercise,"
the report notes.
He said it is designed to remove inequities, make compensation
simpler and more transparent while ensuring that Jamaica's finances
remain sustainable, the report discloses.
"We recognise that it will not be an easy process, there is pent up
anger, mistrust from broken promises and contentious issues to
grapple with. However, rest assured your government is listening,"
Holness added.
As reported in the Troubled Company Reporter-Latin America in March
2022, Fitch Ratings has affirmed Jamaica's Long-Term Foreign
Currency Issuer Default Rating (IDR) at 'B+'. The Rating Outlook is
Stable.
=======
P E R U
=======
CAMPOSOL HOLDING: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable
------------------------------------------------------------------
Fitch Ratings has affirmed Camposol Holding Plc (Camposol) and
Camposol S.A.'s Long-Term (LT) foreign and local currency Issuer
Default Ratings (IDRs) at 'BB-'. Fitch has also affirmed Camposol
S.A.'s senior unsecured notes at 'BB-'. The Rating Outlook is
Stable.
Camposol S.A.'s ratings are the same as the holding company,
Camposol Holding Plc. Camposol S.A. is fully-owned by Camposol, and
is the main cash generator of the group. The holding company has no
debt, and the bond issued by Camposol S.A. is guaranteed by
Camposol Holding Plc.
Rating Actions
DEBT RATING PRIOR
---- ------ -----
Camposol Holding PLC LT IDR BB- Affirmed BB-
LC LT IDR BB- Affirmed BB-
Camposol S.A. LT IDR BB- Affirmed BB-
LC LT IDR BB- Affirmed BB-
senior unsecured LT BB- Affirmed BB-
KEY RATING DRIVERS
Expected Gradual Deleveraging: Fitch forecasts net debt/EBITDA of
3.5x and deleveraging toward 3x, respectively, in 2022 and 2023,
which is in line with Camposol's ratings, following a peak net
leverage of 4x in 2021. Nearly 75% of planted fields were in the
productive phase in 2021. EBITDA remained steady in 2021, at about
USD113 Million (USD116 Million in 2020), due to greater volumes for
blueberries and the solid performance of avocados, whereas other
crops were negatively impacted by lower volumes.
Fitch forecasts EBITDA of about USD132 million in 2022 (excluding
IFRS16 adjustments), driven by increased volumes for avocados as
crops are entering productive phase (Colombia), higher yields for
blueberries, and better performances of other crops such as
tangerines. Camposol suspended its IPO in 2021, but Fitch does not
rule out an IPO in the medium and long-term.
Leading Position in Peru: Camposol benefits from its position as
the leading agro-industrial company in Peru, developed through the
vertically integrated production of food products such as avocados,
blueberries and other produces (tangerines, mangoes, grapes). The
company's profitability is enhanced by its control of the value
chain, consisting of research and product development, growing
fields, processing facilities, and sales and distribution channels.
The company is also positioned well in the worldwide trend toward
consumption of healthy and more convenient products, as it produces
fresh fruits. Blueberries, avocados and other products represented
62%, 21% and 18% of total gross profit, respectively, in 2021;
these products are exported globally, with 49% of revenues coming
from the United States, 32% from Europe and 7% from Asia.
Increased Investments: Fitch's base case expects Camposol to invest
approximately USD65million-SD75million 2022 while dividend payment
of about USD25 million per year. This follows Camposol's scaled
down initial investment plan due to the pandemic. Capex went down
to about USD38 million in 2021 from above USD100 million in
2018-2019. The company's operating cash flow comes predominately
from Peru, while the contribution of overseas operations remain
limited as planted crops need time to reach maturity in countries
such as Colombia and Uruguay. Significant EBITDA is generated and
the company's most of productive fields are located in Peru in
2021. Profitability from investments abroad is expected to
materialize only in the medium term.
Exposure to Price and Climatic Risks: Rating constraints include
Camposol's exposure to price and production yield fluctuations.
External factors such as the El Nino/La Nina weather phenomena,
which could cause damage or logistical issues, also are negatively
factored into the company's ratings.
DERIVATION SUMMARY
Camposol's 'BB-' rating reflects the company's medium-sized
operational scale and the geographic concentration of its
production base, which is weak compared with other commodity
traders and processors such as Bunge Limited (BBB/Stable).
Camposol's business profile is distinct in Fitch's commodity rated
portfolio considering its products sold (avocados, blueberries and
others); other peers are mainly in the sugar and ethanol segments,
operating with less diversification.
The company operates in a high business risk commodity industry,
where performance is subject to external shocks such as climatic
events, natural disasters and potential supply and demand
imbalances, creating yield and price volatility.
KEY ASSUMPTIONS
-- Adjusted EBITDA (excluding IFRS16) of about USD132 million in
2022;
-- Capex of about USD65 million in 2022;
-- Dividends of about USD25 million per year.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Improved geographic diversification of the production base;
-- Net leverage below 2.5x on a sustained basis;
-- Strong positive FCF.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Net leverage above 3.5x on a sustained basis;
-- EBITDA coverage ratio below 2.0x;
-- Weak liquidity.
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
Manageable Liquidity: Camposol has sufficient cash on hand and
quality access to the local market to finance working capital
requirements. The company's debt is mainly composed of working
capital banks lines in the short term, and its USD350 million
unsecured notes due in 2027.
ISSUER PROFILE
Camposol is the leading agro industrial company in Peru. It is
involved in the harvesting, processing and marketing of
high-quality agricultural products such as avocados, blueberries
and others (tangerines, mangoes, grapes), which are exported to
Europe, the United States of America and Asia. The company is
vertically integrated in Peru, offering fresh and frozen products.
ESG CONSIDERATIONS
Camposol has a Relevance Score of '4' in Governance Structure for
ownership concentration. The shareholder's strong influence upon
management could result in decisions detrimental to the company's
creditors. This has a negative impact on the credit profile, and is
relevant to the ratings in conjunction with other factors.
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
=====================
P U E R T O R I C O
=====================
INNOVA INDUSTRIAL: Starts Chapter 11 Subchapter V Case
------------------------------------------------------
Innova Industrial Contractor Inc. filed for bankruptcy protection
under Subchapter V of Chapter 11 of the Bankruptcy Code in Puerto
Rico.
According to court documents, Innova Industrial Contractor
estimates between 1 and 49 unsecured creditors. The petition
states that funds will be available to unsecured creditors.
The 11 U.S.C. Sec. 341(a) meeting of creditors will be held on June
13, 2022, at 2:00 p.m. via Telephonic Conference Information for
AUST/Trial Attys. Proofs of claim are due by July 26, 2022, and
governmental proofs of claim due are due by Nov. 14, 2022.
About Innova Industrial Contractor
Innova Industrial Contractor Inc. is a Puerto Rico-based
construction company.
Innova Industrial Contractor Inc. filed a petition for relief under
Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. D.P.R.
Case No. 22-01375) on May 16, 2022. In the petition filed by
Gabriel Gonzalez, as president. Innova Industrial estimated assets
between $50,000 and 100,000 and liabilities between $100,000
$500,000.
The case is assigned to Honorable Bankruptcy Judge Enrique S
Lamoutte Inclan.
Jesus Enrique Batista Sanchez, of The Batista Law Group, PSC, is
the Debtor's counsel.
Jose A Diaz Crespo has been appointed as Subchapter V trustee.
*********
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 * * *