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       T R O U B L E D   C O M P A N Y   R E P O R T E R

                 L A T I N   A M E R I C A

          Thursday, June 30, 2022, Vol. 23, No. 124

                           Headlines



A R G E N T I N A

ARGENTINA: GDP Growth Slowed in First Quarter as Exports Shrank


B E R M U D A

BERMUDA: Window May be Closing on Low Rates for Debt Refinancing


B R A Z I L

BRAZIL: Central Bank Backs Higher Key Rate to Anchor Prices
BRAZILIAN STATE OF ALAGOAS: S&P Affirms 'BB-' LongTerm ICRs
PETROLEO BRASILEIRO: 55% of Brazilians Oppose Privatization


C O L O M B I A

GRAN TIERRA: S&P Affirms 'B' Rating on Senior Unsecured Debt


J A M A I C A

DIGICEL GROUP: Sees Slide in Value of its Bonds


P U E R T O   R I C O

BORINQUEN NATURAL: Sept. 29 Hearing on Disclosures and Plan

                           - - - - -


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A R G E N T I N A
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ARGENTINA: GDP Growth Slowed in First Quarter as Exports Shrank
---------------------------------------------------------------
Buenos Aires Times reports that Argentina's economy grew less than
expected in the first quarter as the agricultural sector contracted
and exports fell.

Gross domestic product expanded 0.9 percent from the previous
quarter, compared with the one-percent average forecast by
economists surveyed by Bloomberg, according to Buenos Aires Times.
The economy grew six percent from a year earlier, compared with 8.9
percent in the last three months of 2021, the report notes.

The expansion was led by hotels and restaurants, mining, and
transportation and communications. Exports fell 2.3 percent from
the previous quarter, while imports rose 7.6 percent, the report
relays.

Economists surveyed by the Central Bank expect the economy to enter
a brief recession in the coming months, with contractions in the
second and third quarters ahead, the report discloses.  Inflation
of more than 60 percent and delayed wage growth are set to hit
consumer spending, they warn, while exports are set to falter after
the harvest season in the first half of the year, the report
notes.

The government forecasts four percent growth this year, while
private economists expect it to reach 3.3 percent, the report says.
It would be the first time in a decade that Argentina has recorded
two consecutive years of growth, the report relays.  The country
recorded an unemployment rate of seven percent in the first
quarter, unchanged from the previous three months, 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.




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B E R M U D A
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BERMUDA: Window May be Closing on Low Rates for Debt Refinancing
----------------------------------------------------------------
David Fox at Royal Gazette reports that the clock is ticking as the
Government seeks to refinance a billion dollars of Bermuda's debt
over the next two years - with half a billion maturing in the
upcoming fiscal year, and a $140-million note due this year.

The Federal Reserve Board has raised the Federal Funds Rate already
twice since March, making it difficult to refinance at what
recently have been historic, low rates, according to Royal
Gazette.

David Burt, the Premier and finance minister, will have to report
to Parliament how he intends to avoid making it more expensive to
pay for Bermuda's debt, the report notes.

Mr. Burt told The Royal Gazette: "We are actively analysing the
execution of financing alternatives in order to pre-fund and
refinance (the Government's) upcoming debt maturities ($140-million
note due in December 2022, and subsequent ones).

"As always, the timing, size and nature of the refinancing will be
subject to market conditions as the Government looks to execute the
alternative that provides the most advantageous terms and
conditions to Bermuda," the report discloses.

The potential for the rise in interest rates was said to be one of
the most serious risks affecting Bermuda, considering the scale of
the country's debt, the report notes.

That issue was identified by the Fiscal Responsibility Panel in its
annual assessment last November, the report relays.

The panel of external economists are government advisers for fiscal
and monetary policy, the report discloses.

They warned the government then to "be alive to opportunities to
refinance debt falling due in the next few years while bond yields
are still close to historic lows and spreads on Bermudian debt
relative to treasuries remain low," the report says.

The February Budget Statement recognized as much, just ahead of the
March adjustment by the Fed, raising interest rates a quarter of
one per cent, the report relays.

But this month, there was Fed intervention again with a second
increase - three quarters of a per cent - the largest in nearly 30
years, the report notes.

And suddenly it is a guessing game as to what a projected July
adjustment will bring, and where Bermuda negotiators are, in their
refinancing endeavors, the report relays.

The Premier said in the Budget Statement: "To address those risks,
this Government will take steps to access the market to ensure that
we can refinance our debt at historically low interest rates in
line with the recommendation from the Fiscal Responsibility Panel,"
the report relays.

At the time, he noted in the Budget Statement: "the key upcoming
challenge is the need to refinance almost $1 billion in debt over
the next two years, with approximately $500 million of it maturing
in the upcoming fiscal year," the report adds.




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

BRAZIL: Central Bank Backs Higher Key Rate to Anchor Prices
-----------------------------------------------------------
globalinsolvency.com, citing Bloomberg News, reports that Brazil's
central bank said an extension of its aggressive tightening cycle
with another interest rate hike in August is needed to assure that
high inflation forecasts will fall back around their target.

Policy makers discussed signaling a steady interest rate for a
"sufficiently long" period but concluded another hike would still
be needed, according to the minutes of their June 14-15 meeting,
when the board raised borrowing costs to 13.25%, according to
globalinsolvency.com.

Another lift of 50 basis points or less to the benchmark Selic is
appropriate to bring consumer price estimates near their goal, they
wrote, the report notes.

"Given the persistence of the recent shocks, the Committee
evaluated that only the perspective of maintaining the Selic rate
for a sufficiently long period would not assure, at this moment,
the convergence of inflation around the target in the relevant
horizon," they wrote in the minutes published, the report relays.

"The strategy of convergence around the target requires a more
contractionary interest rate than that used in the reference
scenario for the entire relevant horizon," they wrote, the report
relays.

Policy makers led by Roberto Campos Neto are battling persistent
energy and food shocks which have kept annual inflation above 10%
since September, the report discloses.  Though headline figures
eased in May, price pressures remain widespread, the report notes.
In the minutes, the bank said recent cost of living readings "were
higher than expected" with surprises in both volatile and core
components, the report adds.

As reported in the Troubled Company Reporter-Latin America on June
17, 2022, S&P Global Ratings affirmed its 'BB-/B' long- and
short-term foreign and local currency sovereign credit ratings on
Brazil.


BRAZILIAN STATE OF ALAGOAS: S&P Affirms 'BB-' LongTerm ICRs
-----------------------------------------------------------
S&P Global Ratings affirmed the global scale 'BB-' long-term
foreign and local currency issuer credit ratings on the state of
Alagoas. S&P also affirmed its long-term national scale rating of
'brAA+'. The outlook on both ratings remains stable.

Outlook

S&P said, "The stable outlook reflects our view that Alagoas'
budgetary performance will remain balanced in the next 12-18
months, with operating surpluses and balanced results after capex.
We expect the debt burden to stabilize and cash levels sufficient
to cover the state's debt service."

Downside scenario

S&P said, "We could lower the ratings on Alagoas in the next 12
months if its budgetary performance deteriorates, with large
deficits after capex eroding liquidity, signagling weaker fiscal
management. In addition, in our opinion, the ratings on Alagoas are
capped by the ratings on Brazil; therefore, a downgrade of the
sovereign would also result in a downgrade of Alagoas on the global
scale."

Upside scenario

S&P said, "Given that we don't believe Alagoas meets the conditions
to have higher ratings than those on Brazil, we would only raise
the global scale ratings on the state in the next 12 months if we
were to raise our local and foreign currency ratings on Brazil.
That would also have to be accompanied by the state's stable and
strong budgetary performance, consistently high cash levels, and a
declining debt burden. We could raise the national scale rating if
the state emerges from upcoming budgetary and economic pressures
with a better-than-expected liquidity position and if the debt
burden declines to below 60% of operating revenue."

Rationale

S&P said, "Despite the potential revenue and expenditure pressures
on the state's budget, we expect fiscal results to remain balanced
and the administration to prudently manage available cash by
balancing capex needs with its other obligations, including debt
service. While Alagoas remains somewhat reliant on the federal
government's transfers, solid financial management has supported
financial performance and a decline in debt levels, while also
boosting public and private investment in the state. On the other
hand, Alagoas' weaker socioeconomic profile than those of other
Brazilian states, still moderately high debt, and a volatile and
unbalanced institutional framework constrain ratings on the
state."

Following large one-off revenue increases in 2020-2021, S&P expects
budgetary pressures

S&P said, "We expect operating surpluses to average 12% of
operating revenue in 2022-2024, down from the 21.5% average in
2020-2021. Alagoas' fiscal results benefited from several factors
in the past two years. Revenue from the concession to operate the
water and sewage services in 13 cities in the metropolitan area of
Maceió by private company BRK Ambiental signed at the end of 2020
for R$2 billion (equal to 15% of the state's operating revenue in
2021), compensated for the drop in the central government's
extraordinary support in 2021. The concession bolstered Alagoas'
liquidity in the short term and will improve the population's
access to basic services.

"At the same time, our base-case scenario incorporates potential
pressures from recently approved federal legislation to lower sales
and services tax (ICMS) rates on fuels (currently 29%), transport
(18%), communications services (30%), and electricity (27%) to 17%.
Nonetheless, we believe that high energy prices will partly
compensate for the potential cuts in fuel ICMS rates. However, the
timing for lower tax rates to come into force is uncertain due to
legal challenges that states filed with the Supreme Court. We
believe the inflation-fueled payroll will also pressure spending in
the short term.

"We expect capex to average 12% of total spending in 2022-2024,
following the record-high level of 28% in 2021, given that the
state used the recently accumulated cash to boost its
infrastructure spending that included roadways and urbanization,
among other projects. For 2022-2024, we expect an average surplus
after capex of 1.7% of total revenue, compared with a 6% deficit in
2021, while Alagoas will finance capex with cash and loans from
public banks and multilateral lending institutions.

"Record capex in 2021 led to a decline in the state's cash levels.
Still, we estimate that free cash levels will cover slightly more
than 100% of debt service for the next 12 months. The estimate
considers the payment in the first months of 2022 of debt to
suppliers, which accounted for 16.8% of operating revenue as of
December 2021. We expect liquidity coverage to remain at high
levels, but could fluctuate due to expected budgetary pressures.
Debt payments will be smooth for the next three years at about R$1
billion annually.

"We consider Alagoas' access to external liquidity as limited, as
is the case for all Brazilian states. In order to issue debt under
Brazil's intergovernmental framework, states must receive
authorization from the federal government under specific rules and
in compliance with fiscal targets. In addition, states can't
maintain open contingent credit lines from banks.

"We expect Alagoas' debt to remain at about 70% of operating
revenue in 2022-2024. This is down from almost 90% in 2020 and 154%
in 2015. The state's main creditor is the federal government (70%
of total debt), but Alagoas also has loans from multilateral
lending institutions and domestic banks. Twenty-one percent of the
debt is in foreign currency.

"One longstanding key source of fiscal pressure for Alagoas is its
burdensome pension system. The state passed a pension reform in
December 2019, which in addition to adhering to the national-level
pension reforms, increased the individual contribution rate from
11% to 14% and expanded the tax base by 20,000 new contributors.
How much relief the reform provides in the short and medium term
will depend on its implementation, although pressures could emerge
in the short term from the shift to the capitalization fund for new
employees, while structural issues in the long term are likely to
persist. The pension deficit coverage totaled R$1.4 billion in 2021
(10.7% of operating revenue)."

Prudent financial management mitigates strains stemming from a
rigid institutional framework and the state's weak socioeconomic
profile

Alagoas is among Brazil's poorest states, which weighs on its
creditworthiness. Its estimated GDP per capita was $3,700 in 2021,
which is roughly half of our estimate for the national level during
the same period. Therefore, the state's socio-economic conditions
are weaker than those of other Brazilian states such as those in
the southeast, constraining the ratings. Alagoas' main economic
activities are public administration, tourism, and agriculture
(mainly sugar and alcohol production, which are the second-largest
employers in the state after the public sector). S&P currently
forecasts national real GDP to expand 1.2% in 2022 and 1.7% on
average in 2023-2024.

Paulo Dantas stepped in as governor in May 2022 and will be in
office until the end of the year, because the former governor Renan
Filho resigned to run for Senate. The government's party has broad
support in the state legislature. This has been pivotal to pass key
pieces of legislation, such as the ongoing downsizing in the state
payroll in relative terms, as well as efforts to raise local tax
revenue. Alagoas has been prioritizing strengthening finances,
transparency, and accountability, which S&P considers a rating
strength. S&P's base-case scenario assumes continuity in prudent
management practices.

S&P said, "At the same time, we assess Brazilian local and regional
governments' (LRGs) institutional framework as volatile and
unbalanced. Structural rigidities of Brazil's intergovernmental
system have prevented LRGs from reaching balanced fiscal accounts.
Nonetheless, we believe the system continues to have an adequate
level of predictability and transparency, with enhanced oversight
over LRGs' finances and adherence to fiscal discipline."

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the methodology
applicable. At the onset of the committee, the chair confirmed that
the information provided to the Rating Committee by the primary
analyst had been distributed in a timely manner and was sufficient
for Committee members to make an informed decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

The committee's assessment of the key rating factors is reflected
in the Ratings Score Snapshot above.

The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision. The
views and the decision of the rating committee are summarized in
the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.

  Ratings List

  RATINGS AFFIRMED

  ALAGOAS (STATE OF)

  Issuer Credit Rating    BB-/Stable/--
  Brazil National Scale   brAA+/Stable/--


PETROLEO BRASILEIRO: 55% of Brazilians Oppose Privatization
-----------------------------------------------------------
Richard Mann at Rio Times Online reports that the PoderData poll
conducted from June 19 to 21 shows that 55% of Brazilians oppose
the privatization of Petroleo Brasileiro S.A. (Petrobras), the
largest oil company in Latin America with headquarters in Rio de
Janeiro.  The rate was above the margin of error of 2 points
compared to the April 24-26 round, when half (50%) were against the
sale, according to Rio Times Online.

The report notes that 28% favored privatizing the company, up from
33% in the last poll.   Another 17% could not give an answer, the
report discloses.  The gap between the groups grew by 10% since
April, the report relays.

This result coincides with another found in the last PowerData
round: 42% blame Bolsonaro for inflation, while only 2% blame
Petrobras, the report relays.  The two are a strong indication that
it does the president no good to continue ideologizing the issue,
the report adds.

As reported in the Troubled Company Reporter-Latin America on April
28, 2022, Egan-Jones Ratings Company on April 4, 2022, upgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Petroleo Brasileiro S.A. - Petrobras to BB from BB-




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

GRAN TIERRA: S&P Affirms 'B' Rating on Senior Unsecured Debt
------------------------------------------------------------
S&P Global Ratings withdrew its 'B' rating on Colombia-based oil
and gas producer Gran Tierra Energy Inc.'s (GTE) 8.75% proposed
amortizing senior secured bond due 2029. S&P also affirmed its 'B'
senior unsecured debt ratings and removed them from CreditWatch
with negative implications.

The company intended to exchange a minimum of 80% of its
outstanding senior unsecured notes for new 8.75% senior secured
notes with equal amortizations in 2027, 2028, and 2029. However, on
June 21, 2022, GTE terminated its exchange offer. S&P expects GTE
to continue evaluating debt reprofiling strategies in the coming
months.




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J A M A I C A
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DIGICEL GROUP: Sees Slide in Value of its Bonds
-----------------------------------------------
RJR News reports that businessman Denis O'Brien says Digicel has
seen a slide recently in the market value of $925 million of its
bonds that fall due in almost eight months' time, amid mounting
concerns about the telecom group's ability to refinance the debt.

The March 2023 bonds have fallen to $0.72 on the dollar from a
near-par value of more than $0.98 in January, as investors fret
over Digicel's exposure to emerging markets and currencies in a
weakening global economy as well as mounting turmoil in the group's
traditional funding source, the US junk bond markets, according to
RJR News.

Fitch, one of the world's leading credit ratings agencies, said in
a note in recent days that Digicel, with operations across more
than 30 markets in the Caribbean and Pacific regions, faces
significant refinancing risk with the 2023 bonds, the report
notes.

The comments were in a publication that focused on Cable & Wireless
Communications, Digicel's main competitor in a number of markets,
the report adds.

                     About Digicel Group

Digicel Group is a mobile phone network provider operating in 33
markets across the Caribbean, Central America, and Oceania
regions.

The company is owned by the Irish billionaire Denis O'Brien, is
incorporated in Bermuda, and based in Jamaica.

As reported in the Troubled Company Reporter-Latin America in April
2020, Moody's Investors Service downgraded Digicel Group Limited's
probability of default rating to Caa3-PD from Caa2-PD. At the same
time, Moody's downgraded the senior secured rating of Digicel
International Finance Limited to Caa1 from B3. All other ratings
within the group remain unchanged. The outlook is negative.

Also in April 2020, the TCR-LA reported that Fitch Ratings has
downgraded Digicel Limited to 'C' from 'CCC', and its outstanding
debt instruments, including the 2021 and 2023 notes to 'C'/'RR4'
from 'CCC'/'RR4'. Fitch has also downgraded Digicel International
Finance Limited to 'CCC+' from 'B-'/Negative, and its outstanding
debt instruments, including the 2024 notes and the 2025 credit
facility, to 'CCC+'/'RR4' from 'B-'/'RR4'. Fitch has removed the
Negative Rating Outlook from DIFL.




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P U E R T O   R I C O
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BORINQUEN NATURAL: Sept. 29 Hearing on Disclosures and Plan
-----------------------------------------------------------
Judge Mildred Caban Flores has entered an order that the
evidentiary hearing, the final approval of the Disclosure Statement
and confirmation of the Plan of Borinquen Natural LLC, and all
other matters scheduled for July 19, 2022, at 9:00 AM, are
rescheduled, for cause, for September 29, 2022, at 9:00 AM, via
Microsoft Teams.

                             The Plan

Borinquen Natural LLC submitted a Plan and a Disclosure Statement.

Secured Claims, General Unsecured Claims, as well as Priority Tax
Claims, if any, will be paid from the cash resulting from Debtor's
operations.

Under the Plan, Class 1 General Unsecured Claims of Vendors and
Trade Creditors totaling $114,579 will be paid in equal monthly
installments of $2,123.10 for principal and interest at 4.25% per
year, for a period of 60 months, equivalent to 100% of their
allowed claims.  Class 1 is impaired.

Under the Plan, Class 2 Contingent, Disputed and Unliquidated
General Unsecured Claims in Legal Proceedings totaling $1,480,000
will receive no distribution under the Plan. Class 2 is impaired.

Attorneys for the Debtor:

     Myrna L. Ruiz-Olmo, Esq.
     MRO Attorneys at Law, LLC
     PO Box 367819
     San Juan, PR 00936-7819
     Tel: 787-404-2204
     E-mail: mro@prbankruptcy.com
     Web: www.prbankruptcy.com

                   About Borinquen Natural

Borinquen Natural, LLC, is a corporation organized under the laws
of the Commonwealth of Puerto Rico.  It is a limited liability
company engaged in the distribution and sale of a variety of health
food products. Borinquen Natural owns no real estate properties.

Borinquen Natural filed a voluntary petition for Chapter 11
protection (Bankr. D.P.R. Case No. 21-01058) on March 31, 2021,
listing under $1 million in both assets and liabilities. Judge
Mildred Caban Flores oversees the case.  

The Debtor tapped Myrna L. Ruiz-Olmo, Esq., at MRO Attorneys at
Law, LLC, as bankruptcy counsel and Trebilcock & Rovira, LLC as
special litigation counsel. Albert Tamarez-Vasquez, CPA, at Tamarez
CPA, LLC, is the Debtor's accountant.



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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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