/raid1/www/Hosts/bankrupt/TCRLA_Public/220613.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
Monday, June 13, 2022, Vol. 23, No. 111
Headlines
A R G E N T I N A
ARGENTINA: Interest Rate Seen Up 200 bps as Inflation Boils Over
ARGENTINA: Pushes Bill to Tax 'Unexpected' Profits Amid Disputes
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Economy Stabilizes, But Loan Rates Rise
DOMINICAN REPUBLIC: Taxman Collects US$1.1 Billion in May
J A M A I C A
JAMAICA: Region Urged to Make Food Security a Priority
M E X I C O
UNIFIN FINANCIERA: Fitch Affirms 'BB-'/'B' IDRs, Outlook Negative
P U E R T O R I C O
CREDITO REAL: Preps Up U.S. Bankruptcy After Bond Default
X X X X X X X X
[*] BOND PRICING: For the Week June 6 to June 10, 2022
- - - - -
=================
A R G E N T I N A
=================
ARGENTINA: Interest Rate Seen Up 200 bps as Inflation Boils Over
----------------------------------------------------------------
globalinsolvency.com, citing Reuters, reports that Argentina's
benchmark interest rate is likely to be hiked another 200 basis
points this week, analysts polled by Reuters estimated, as the
central bank seeks to count.
The survey of seven analysts and traders indicated the bank would
likely hike the rate to 51% from its current level of 49%,
according to a median of the responses, according to Reuters.
The estimates ranged from no change to a steepest hike of 350 basis
points, the report notes.
Inflation in the South American country is running at 58% and
forecast to hit 72.6% by the end of the year, according to the
latest poll of analysts by Banco Central de la Republica Argentina
(BCRA), the report says.
The bank has hiked the interest rate five times already this year,
the report adds.
About Argentina
Argentina is a country located mostly in the southern half of South
America. Its capital is Buenos Aires. Alberto Angel Fernandez is
the current president of Argentina after winning the October 2019
general election. He succeeded Mauricio Macri in the position.
Argentina has the third largest economy in Latin America. The
country's economy is an upper middle-income economy for fiscal year
2019, according to the World Bank. Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.
Standard & Poor's credit rating for Argentina stands at CCC+ with
stable outlook, which was a rating upgrade issued on Sept. 8,
2020.
Moody's credit rating for Argentina was last set at Ca on Sept. 28,
2020. Fitch's credit rating for Argentina was last reported on
Sept. 11, 2020 at CCC, which was a rating upgrade from CC. DBRS'
credit rating for Argentina is CCC, given on Sept. 11, 2020.
As reported by The Troubled Company Reporter - Latin American, DBRS
noted that the recent upgrade in Argentina's ratings (September
2020) follows the closing of two debt restructuring agreements
between the Argentine government and private creditors. The first
restructuring involved $65 billion in foreign-law bonds. The deal
achieved the requisite participation necessary to trigger the
collective action clauses and finalize the restructuring on 99% on
the aggregate principal outstanding of eligible bonds. DBRS added
that the debt restructurings conclude a prolonged default and
provide the government with substantial principal and interest
payment relief over the next four years.
Argentina obtained on March 25, 2022, approval from the Executive
Board of the International Monetary Fund (IMF) of a 30-month
extended arrangement under the Extended Fund Facility (EFF)
amounting to SDR 31.914 billion (equivalent to US$44 billion).
Under the new terms, Argentina secured a much-needed grace period
that postpones repayment of its debt. However, IMF warned of
exceptionally high risks to the program.
ARGENTINA: Pushes Bill to Tax 'Unexpected' Profits Amid Disputes
----------------------------------------------------------------
Buenos Aires Times reports that Argentina President Alberto
Fernandez unveiled legislation to slap a 15 percent tax on
companies' extraordinary profits, a move seen as appeasing the most
radical left-wing members of his divided coalition even at the risk
of irritating business.
The bill would apply a levy on the so-called "unexpected profits,"
or annual gains above one billion pesos (US$8.3 million) along with
other requirements, as exports in the commodities-producing country
boom, according to Buenos Aires Times. The government, which
justified the measure given the recent price spike in agriculture
products including wheat, didn't provide details on how many
companies would pay the tax, the report notes.
"We've come to create more equality, we've come to build more
social justice, and that's all that we're doing," Fernández said
in Buenos Aires, the report relays.
While the proposal is unlikely to pass through a fragmented
Congress, where the government doesn't control any of the two
chambers, Fernandez's announcement comes in the wake of another
internal setback for his ruling coalition, the report discloses.
On June 4, he was forced to fire Productive Development Minister
Matias Kulfas, one of his top allies, after the official criticised
a speech Vice-President Cristina Fernandez de Kirchner gave the day
before, the report relays.
Taxing Argentina's wealthy exporters, with increasing revenue in
dollars, is a popular idea among far-left leaders of the coalition
led by Fernandez de Kirchner, the report relays. Soy exporters
already pay a 33 percent tax on shipments abroad, a key source of
government's tax revenue, the report notes. The proposed measure
comes after Fernández de Kirchner repeatedly criticized the lack
of economic policy direction in the Fernandez administration, the
report notes.
The tax would help offset some of the government's US$1.8 billion
of cash handouts that were distributed recently as annual inflation
hit a 30-year high in April, the report discloses. Other
countries, such as the United Kingdom and Italy, have implemented
similar taxes, the report says.
Opposition lawmakers repeatedly said they wouldn't support a new
tax in the crisis-prone economy, the report adds.
About Argentina
Argentina is a country located mostly in the southern half of South
America. Its capital is Buenos Aires. Alberto Angel Fernandez is
the current president of Argentina after winning the October 2019
general election. He succeeded Mauricio Macri in the position.
Argentina has the third largest economy in Latin America. The
country's economy is an upper middle-income economy for fiscal year
2019, according to the World Bank. Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.
Standard & Poor's credit rating for Argentina stands at CCC+ with
stable outlook, which was a rating upgrade issued on Sept. 8,
2020.
Moody's credit rating for Argentina was last set at Ca on Sept. 28,
2020. Fitch's credit rating for Argentina was last reported on
Sept. 11, 2020 at CCC, which was a rating upgrade from CC. DBRS'
credit rating for Argentina is CCC, given on Sept. 11, 2020.
As reported by The Troubled Company Reporter - Latin American, DBRS
noted that the recent upgrade in Argentina's ratings (September
2020) follows the closing of two debt restructuring agreements
between the Argentine government and private creditors. The first
restructuring involved $65 billion in foreign-law bonds. The deal
achieved the requisite participation necessary to trigger the
collective action clauses and finalize the restructuring on 99% on
the aggregate principal outstanding of eligible bonds. DBRS added
that the debt restructurings conclude a prolonged default and
provide the government with substantial principal and interest
payment relief over the next four years.
Argentina obtained on March 25, 2022, approval from the Executive
Board of the International Monetary Fund (IMF) of a 30-month
extended arrangement under the Extended Fund Facility (EFF)
amounting to SDR 31.914 billion (equivalent to US$44 billion).
Under the new terms, Argentina secured a much-needed grace period
that postpones repayment of its debt. However, IMF warned of
exceptionally high risks to the program.
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Economy Stabilizes, But Loan Rates Rise
-----------------------------------------------------------
Dominican Today reports that as economic activity has advanced in
its recovery, the confidence of businesses and families to resort
to credit was strengthened in the first quarter of this year,
reports the Superintendence of Banks.
However, they face the rise in the rate of consumer loans, which
registered increases compared to the previous quarter to settle at
16.2% per year, according to Dominican Today.
In its report on the performance of the financial system in the
first quarter of this 2022, recently published, the Superintendence
of Banks highlights that mortgage loans also presented an increase
in their rates, going from 9.0% average in December 2021 to 10.2%
in March 2022, the report notes.
Likewise, there was an increase in the interest rate of credit
cards in national currency with respect to its level of the
previous year, going from 55.9% in March 2021 to 57.3% in March
2022, 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: Taxman Collects US$1.1 Billion in May
---------------------------------------------------------
Dominican Today reports that Internal Taxes (DGII) in the Dominican
Republic reported last week that the collection for May amounted to
RD$62.5 billion (US$1.1 billion), which represents RD$13.7 billion
more than in the same month of 2021.
The general director of Internal Taxes, Luis Valdez Veras,
indicated in a press release that "these collection levels are what
have allowed the granting of more than RD$18.0 billion in subsidies
to avoid the increase in fuels due to the crisis generated for the
war between Russia and the Ukraine," according to Dominican Today.
"It is these levels of compliance in the collections that have
allowed our Government to be able to sustain the enormous sacrifice
that this fuel subsidy means, money that in other circumstances
President Abinader would have allocated to infrastructure works and
other actions," the report notes.
In May of last year, RD$48.7 billion entered, so the collection
corresponding to the current period represents a growth of 28.3%,
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: Region Urged to Make Food Security a Priority
------------------------------------------------------
Jamaica Observer reports that as global supply chains continue to
be impacted by the novel coronavirus pandemic and the war in
Ukraine, calls have intensified on especially vulnerable Caribbean
states to ramp up food production and to advance plans for food
security.
Speaking at a Caribbean Development Bank's (CDB's) seminar held
recently, Isaac Solomon, vice-president of operations at the
regional financial institution, encouraged the bank's member
countries to prioritise food security initiatives while
accelerating efforts towards the achievement of the UN Sustainable
Development Goals (SDGs), according to Jamaica Observer.
"With less than eight years left until 2030, it is imperative that
the region accelerate all efforts towards the achievement of the
SDGs and our development now," he said, the report notes.
With goal two of the SDGs focused on ending hunger, achieving food
security and improved nutrition, Solomon expressed a desire for the
relay of tangible and implementable actions to contribute to the
region's agenda on achieving these objective while reducing its
import bill by 25 per cent by 2025, the report relays.
The Caricom led '25 in 5' initiative seeks to reduce the region's
almost US$6-billon food import bill by 25 per cent over a five-year
period, the report notes. The overall goal is to likewise reduce
regional food imports by fostering accelerated and targeted
investments in agriculture and food production and in the business
ecosystem, the report discloses.
The policymaking body, in crafting the plan a few years ago, had
noted that while there wasn't an immediate shortage of food in the
region, there was a "misalignment of supply and demand" as a result
of supply chain disruptions, the report relays. It said that since
the Caribbean is highly dependent on food imports such as wheat,
animal feeds and a range of processed foods, most of which are
sourced from outside markets, countries needed to have plans in
place to ensure the continued supply of key food items and to
safeguard against serious challenges and imminent threats to food
security, the report notes.
Just last month, findings from a joint survey done by Caricom and
the United Nations World Food Program (WFP) revealed that an
estimated 2.8 million people or nearly 40 per cent of the
English-speaking Caribbean is food insecure - one million more than
two years ago, the report relays.
Senior trade facilitation officer at the International Trade Centre
(ITC) Pierre Bonthonneau, who also presented at the CDB seminar
which was attended by a wide cross section of global experts and
participants, said that the Caribbean can impact its current food
import metrics and the availability of affordable food for citizens
by making trade formalities more effective while pursuing greater
investments in technology-based initiatives and by embracing trade
reforms and robust private-public dialogue and engagement, the
report notes.
"Easing trade in agri-foods will positively contribute the region's
vision to achieve at least five SDGs - zero hunger, gender
equality, climate action, responsible consumption and production
and life below water," he told participants while stressing the
need for solutions to revolve around regional coordination, the
report discloses.
During the recently concluded AgroFest, Guyana's President Dr
Irfaan Ali made similar calls for greater collaboration and
partnership across countries stating that, "the issue of food
security for the region cannot be looked at from a border
perspective because each one of us in this region, each country,
comes with different challenges but each one of us can bring a
unique opportunity in creating a solution," the report adds.
===========
M E X I C O
===========
UNIFIN FINANCIERA: Fitch Affirms 'BB-'/'B' IDRs, Outlook Negative
-----------------------------------------------------------------
Fitch Ratings has affirmed Unifin Financiera, S.A.B. de C.V.'s
(Unifin) Long- and Short-Term Foreign and Local Currency Issuer
Default Rating (IDRs) at 'BB-' and 'B', respectively, and senior
unsecured debt and hybrid securities at 'BB-' and 'B',
respectively. The National Scale Long-Term and Short-Term Ratings
have also been affirmed at 'A-(mex)'/'F2(mex)'. Fitch has
simultaneously removed all ratings from Rating Watch Negative and
assigned a Negative Rating Outlook.
KEY RATING DRIVERS
The rating affirmation and the resolution of the Rating Watch
Negative reflects reduced near-term refinancing risk following the
maturity extension of the USD200 million bond due in August 2022 to
May 2024 and the addition of a new USD500 million secured credit
facility provided by Credit Suisse (CS). The Negative Rating
Outlook reflects execution risk associated with Unifin additional
funding strategies including strengthening its local funding
structure due to deteriorated investor confidence and increased
risk aversion for Mexican non-bank financial institutions (NBFIs)
more broadly.
Unifin's ratings reflect its strong local market position in the
Mexican leasing industry. Rating constraints include pressured
asset quality and weak earnings, meaningful appetite for balance
sheet growth in the past, less prudent capital management,
expansion into non-core strategies (i.e. repurchase of bonds to
prioritize profitability instead of liquidity preservation), and
weaker financial transparency than more highly-regulated entities.
On May 31, Unifin executed an agreement to extend its USD200
million August 2022 bond maturity to May 2024. Based on the
specifics of the renegotiation, Fitch does not consider it a
Distressed Debt Exchange (DDE). The amended bond has a maturity of
less than two years at a fixed rate of 7% with semi-annual interest
payments. The issuance may be redeemed at the option of the
issuer.
On June 1, Unifin added a USD500 million senior secured credit
facility, comprised by USD300 million term-loan and USD200 million
of revolving loan. Fitch's expects that the new financing will not
materially impact Unifin's adjusted tangible leverage or unsecured
debt to total debt metrics as a significant portion will be used
for the refinancing of current indebtedness, while another portion
can be used for growth.
Fitch believes that the bond maturity extension and new credit
facility are incrementally positive developments, which provide
Unifin with additional time to adjust its funding structure toward
local and secured sources while addressing near-term refinancing
needs and loan growth. However, medium-term funding and liquidity
risks remain starting in 2023. The company's cash and equivalents
as of March 2022 plus the USD300 million term facility cover around
0.8x of upcoming debt maturities between May 2022 to March 2023.
The company has indicated that it plans to address upcoming
maturities through the usage of revolving credit facilities,
available cash and equivalents, local short- and long-term bond
market issuances (the latter with a partial guarantee from local
development agencies), access to other secured sources and reduced
of originations (the issuer is originating around 80% of
collections). Most of these strategies have some execution risks
due to sensitivity to investor/market sentiment. On May 5, Unifin
issued USD6 million of short-term debt with a three-month maturity
and on June 2, Unifin issued USD4 million of short-term debt with a
two-month maturity.
Fitch forecasts the adjusted tangible leverage metric to increase
to above 7x, but to remain below the rating sensitivity for a
downgrade of 8x. As of 1Q22, Fitch's adjusted ratio of total
debt-to-tangible equity stood at 6.4x, down slightly from 6.7x at
YE 2021. Fitch applies a 70% haircut to the revaluation surplus
related to the oil platform owned by the company, and adjusts for
temporary impacts from derivative valuations on the balance sheet
and capital through other comprehensive income items.
Fitch believes Unifin's earnings and profitability will remain
under pressure, as a result of lower than pre-pandemic loan growth
and increased financing costs from new credit facilities. At 1Q22,
the pre-tax income to average assets ratio was 1.4% slightly lower
than YE 2021 and still low for its relatively riskier business
model. The company has not disclosed the interest rate on the
USD500 million senior secured credit facility, therefore Fitch
cannot yet assess the expected impact on the company's net interest
margin.
SENIOR DEBT
The senior global debt rating is equalized with Unifin's 'BB-'
rating, as the likelihood of a default of the notes is the same as
for the company. Fitch expects average recovery prospects for the
instrument, given the high level of unencumbered assets.
HYBRID SECURITIES
Unifin's hybrid securities are rated 'B', two notches below the
company's Long-Term IDR. The two-notch differential represents
incremental risk relative to the entity's IDR, reflecting the
increased loss severity due to deep subordination and heightened
risk of non-performance relative to existing senior obligations.
Based on Fitch's analysis, the hybrid qualifies for 50% equity
credit as it meets Fitch's criteria with regard to the ability to
defer coupon payments, the existence of a coupon step-up of at
least 500 basis points in the event of a change of control and its
perpetual nature.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Reduced liquidity position, increased refinancing risks and
failure to complete the company's medium-term funding
strategies;
-- An increase in Fitch's adjusted total debt-to-tangible equity
ratio above 8x and a pre-tax income to average assets ratio
consistently below 1.5% or a material deterioration of asset
quality.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Sustained improvements in the funding, liquidity and coverage
profile, including addressing near- to medium-term refinancing
risks, could result in the Outlook being revised to Stable;
-- Although not a baseline scenario due to the current Negative
Outlook, ratings could potentially be upgraded over the
medium-to-longer term if there is an improvement of the
operating environment and market sentiment toward Mexican
NBFIs that allows the company to strengthen its business
profile, together with an improvement in pre-tax income to
average assets ratio consistently above 3%; while maintaining
Fitch's adjusted tangible leverage ratio below 5.5x.
SENIOR DEBT and HYBRID SECURITIES
-- The company's debt ratings would be expected to mirror any
changes on those of Unifin's IDRs absent a material change in
the capital structure which could impact the recovery
prospects, and thus, the ratings of existing debt classes. The
senior unsecured debt ratings would continue to be aligned
with the company's IDRs, while the hybrid securities would
remain two notches below.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Financial Institutions and
Covered Bond issuers have a best-case rating upgrade scenario
(defined as the 99th percentile of rating transitions, measured in
a positive direction) of three notches over a three-year rating
horizon; and a worst-case rating downgrade scenario (defined as the
99th percentile of rating transitions, measured in a negative
direction) of four notches over three years. The complete span of
best- and worst-case scenario credit ratings for all rating
categories ranges from 'AAA' to 'D'. Best- and worst-case scenario
credit ratings are based on historical performance.
SUMMARY OF FINANCIAL ADJUSTMENTS
Fitch reclassified pre-paid expenses as intangibles and deducted
from total equity due to low loss absorption capacity under
stress.
ESG CONSIDERATIONS
Unifin Financiera, S. A. B. de C. V. has an ESG Relevance Score of
'4' for Financial Transparency due to Unifin's third-party
disclosure remains weaker than international best practices. For
this revision, Fitch did not have access for the full terms and
conditions of new CS credit facility which limited the agency's
assessment of the funding and profitability factors. Fitch's
considers this have a negative impact on the credit profile, and
influences relevantly on the Negative Outlook of the long-term
ratings in conjunction with other factors.
Unifin Financiera, S. A. B. de C. V. has an ESG Relevance Score of
'4' for Management Strategy due to Unifin's meaningful balance
sheet growth and less prudent capital management underpin its
high-risk profile and pressure execution, which has a negative
impact on the credit profile, and is relevant to the ratings in
conjunction with other factors.
Unifin Financiera, S. A. B. de C. V. has an ESG Relevance Score of
'4' for Governance Structure due to concerns regarding the
expansion into non-core strategies to sustain financial metrics,
such as the acquisition of complex assets (oil platform) and the
repurchase of bonds to prioritize profitability instead of
liquidity preservation, which has a negative impact on the credit
profile, and is relevant to the ratings in conjunction with other
factors.
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
DEBT RATING PRIOR
---- ------ -----
Unifin Financiera,
S. A. B. de C. V. LT IDR BB- Affirmed BB-
ST IDR B Affirmed B
LC LT IDR BB- Affirmed BB-
LC ST IDR B Affirmed B
Natl LT A-(mex) Affirmed A-(mex)
Natl ST F2(mex) Affirmed F2(mex)
senior unsecured LT BB- Affirmed BB-
subordinated LT B Affirmed B
=====================
P U E R T O R I C O
=====================
CREDITO REAL: Preps Up U.S. Bankruptcy After Bond Default
---------------------------------------------------------
Jeremy Hill and Michael O'Boyle of Bloomberg News report that
Credito Real SAB, Mexico's largest payroll lender, which fell into
default earlier this year, is preparing a potential bankruptcy
filing in the US as soon as this week, according to people with
knowledge of the situation.
The non-bank lender is looking to line up financing from existing
creditors to help fund the bankruptcy process, said one of the
people, who asked not to be identified because the talks are
private.
The company has been working with creditors on a restructuring plan
that would allow it to continue operating, after it failed to repay
holders of a maturing Swiss franc.
About Credito Real SAB
Credito Real SAB is a Mexico-based company that provides consumer
financing.
===============
X X X X X X X X
===============
[*] BOND PRICING: For the Week June 6 to June 10, 2022
------------------------------------------------------
Issuer Name Cpn Price Maturity Country Curr
----------- --- ----- -------- ------- ---
Province of Santa Fe 6.9 75.2 11/1/2027 AR USD
Provincia del Chubut A 4.5 2208 3/30/2021 AR USD
Province of Santa Fe 6.9 74.7 11/1/2027 AR USD
Fospar S/A 6.5 1.2 5/15/2026 BR BRL
Cia Latinoamericana de 9.5 73.9 7/20/2023 AR USD
Argentine Republic Gov 6.3 74.1 11/9/2047 AR EUR
Argentina Bonar Bonds 7.6 74.4 4/18/2037 AR USD
Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD
Argentina Bonar Bonds 5.8 75.2 4/18/2025 AR USD
Noble Holding Internat 6.1 62.0 3/1/2041 KY USD
Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD
Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD
Provincia de Rio Negro 7.8 70.3 12/7/2025 AR USD
Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD
Polarcus Ltd 5.6 71.8 7/1/2022 AE USD
Noble Holding Internat 6.2 62.2 8/1/2040 KY USD
Avadel Finance Cayman 4.5 55.0 2/1/2023 US USD
Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD
Argentine Republic Gov 0.5 27.6 12/31/2038 AR JPY
Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD
AES Tiete Energia SA 6.8 1.2 4/15/2024 BR BRL
Noble Holding Internat 5.3 60.5 3/15/2042 KY USD
Provincia de Cordoba 7.1 72.7 8/1/2027 AR USD
Argentine Republic Gov 8.3 74.5 12/31/2033 AR USD
Provincia de Rio Negro 7.8 70.4 12/7/2025 AR USD
Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD
Metrogas SA/Chile 6.0 41.6 8/1/2024 CL CLP
Province of Santa Fe 6.9 75.2 11/1/2027 AR USD
Provincia de Cordoba 7.1 74.7 8/1/2027 AR USD
Esval SA 3.5 49.9 2/15/2026 CL CLP
Argentine Republic Gov 6.9 75.2 1/11/2048 AR USD
Argentine Republic Gov 8.3 74.5 12/31/2033 AR USD
Provincia del Chaco Ar 4.0 0.0 12/4/2026 AR USD
Cia Latinoamericana de 9.5 74.3 7/20/2023 AR USD
Sylph Ltd 2.4 65.1 9/25/2036 KY USD
Argentine Republic Gov 4.3 70.0 12/31/2033 AR JPY
Provincia de Buenos Ai 7.9 75.3 6/15/2027 AR USD
Province of Santa Fe 6.9 74.7 11/1/2027 AR USD
City of Cordoba Argent 7.9 73.1 9/29/2024 AR USD
Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD
Argentine Republic Gov 7.1 75.7 6/28/2117 AR USD
Provincia del Chaco Ar 9.4 74.8 8/18/2024 AR USD
Provincia de Rio Negro 7.8 70.3 12/7/2025 AR USD
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S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Latin America is a daily newsletter
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.
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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.
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