/raid1/www/Hosts/bankrupt/TCRLA_Public/220708.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
Friday, July 8, 2022, Vol. 23, No. 130
Headlines
C O L O M B I A
COLOMBIA: Raises Rates by 150 Basis Points in Test for Petro
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Interest Rate Hike Will Impact Economy
DOMINICAN REPUBLIC: Mining Concessions Need to be Redefined
J A M A I C A
GRUPO AEROMEXICO: Davis Polk Advises on Club Premier Transaction
JAMAICA: Sees Significant Drop in Insurance Industry Net Premium
M E X I C O
BBVA MEXICO: S&P Affirms 'BB' Rating on Subordinated Debt
P E R U
PETROLEOS DEL PERU: S&P Affirms 'BB' Ratings, Off Watch Negative
P U E R T O R I C O
ESJ TOWERS: Seeks to Hire Charles A. Cuprill P.S.C. as Counsel
UNIVERSAL DOOR: Case Summary & 19 Unsecured Creditors
- - - - -
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C O L O M B I A
===============
COLOMBIA: Raises Rates by 150 Basis Points in Test for Petro
------------------------------------------------------------
globalinsolvency.com, citing Bloomberg News, reports that
Colombia's central bank delivered its biggest interest rate
increase in over two decades, potentially putting itself on a
collision course with President-elect Gustavo Petro, though it
signaled the pace may not be kept in future decisions.
The board unanimously raised rates by 150 basis points to 7.5%,
Governor Leonardo Villar told reporters after a policy meeting,
according to globalinsolvency.com.
That's the largest hike since the bank implemented its
inflation-targeting strategy in 1999, the report recalls.
The decision was correctly forecast by 15 of 24 economists in a
Bloomberg survey, including those from JPMorgan Chase & Co and
Credit Suisse Group AG, the report says.
Barclays Plc and five other forecasters saw a full percentage point
hike, while two expected a boost of 125 basis points, and one an
increase of 75 basis points. Policy makers won't necessarily raise
borrowing costs by the same amount going forward, Finance Minister
Jose Manuel Restrepo, who sits on the bank's board, told reporters
after the decision, the report notes.
In an accompanying statement, board members wrote that the pace of
monetary policy adjustments will depend on available information,
the report adds.
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Interest Rate Hike Will Impact Economy
----------------------------------------------------------
Dominican Today reports that economists Miguel Collado and Antonio
Ciriaco Cruz considered last week that the sixth increase in
interest rates ordered by the Central Bank would impact domestic
credit and economic activity.
Ciriaco Cruz, vice dean of the Faculty of Economic and Social
Sciences of the Autonomous University of Santo Domingo (UASD),
considered that the Central Bank is overreacting with respect to
the interest rate increases because it can provoke a slight
recession in the country, according to Dominican Today.
He said that the increase in interest rates decreases the credit of
the private sector, the investment, and the consumption of
individuals and households, thus reducing the economy's growth
capacity, the report notes.
He maintained that there is a risk that the recovery of employment
that has taken place could slow down, and this could paralyze the
creation of sources of employment, the report relays.
He explained that the Central Bank is applying policies to a
problem whose solution is not monetary but in the supply chain, the
stability of oil prices and greater supply of agricultural raw
materials, the report discloses.
Meanwhile, Collado said that loans are becoming more expensive due
to the rate increase in the financial system and the yields of bond
issues, the report says.
He said that restricting credit restricts the money supply,
limiting the exchange rate increase and the rise in prices. So what
the measure seeks to do is to reduce the money supply in the
economy, the report relays.
"A rise in the local interest rate impacts the borrowing capacity
of economic agents; it becomes more costly to have access to
credit," he said.
The Central Bank's objective is to counteract inflationary
pressures, but to achieve this, it has an effect on credit at the
domestic level and economic activity, he said, the report notes.
75 Basis Points
The Central Bank increased its monetary policy interest rate by 75
basis points, from 6.50% to 7.25%, in the sixth consecutive
increase, the report relays. The measure seeks to counteract
inflationary pressures, which will generate a moderation in the
growth of monetary aggregates, 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: Mining Concessions Need to be Redefined
-----------------------------------------------------------
Dominican Today reports that the Government of the Dominican
Republic, through the Ministry of Energy and Mines (MEM), recently
granted 18 mining exploration licenses to various companies and
individuals for different types of metallic and non-metallic
materials located in eight provinces of the country.
Economist Luis Vargas, an expert in hydrocarbons and energy,
explained that these three-year concessions, although they are the
initial phase for future extractions, are surprised when there is
no designated authority in the Ministry of the Environment,
according to Dominican Today.
He explained that the authorities should talk about the necessary
renegotiation of the exploitation agreement with the Barrick Pueblo
Viejo company, adding that, given the rise in gold and silver
prices on international markets, the country has no choice but to
rethink the terms of this agreement, the report notes.
Vargas indicated that, before the country embarks on other
explorations, it is necessary to redefine what he considers a
"discriminatory distribution" of the added value or profit against
the mining workers and the country, the report relays.
He added that the participation of the communities surrounding the
mines must also be redefined, the report notes.
About Dominican Republic
The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district. Luis Rodolfo
Abinader Corona is the current president of the nation.
TCRLA reported in April 2019 that the Dominican Today related that
Juan Del Rosario of the UASD Economic Faculty cited a current
economic slowdown for the Dominican Republic and cautioned that if
the trend continues, growth would reach only 4% by 2023. Mr. Del
Rosario said that if that happens, "we'll face difficulties in
meeting international commitments."
An ongoing concern in the Dominican Republic is the inability of
participants in the electricity sector to establish financial
viability for the system.
Fitch Ratings, in December 2021, revised the Outlook on Dominican
Republic's Long-Term Foreign-Currency Issuer Default Rating (IDR)
to Stable from Negative and affirmed the IDRs at 'BB-'. The
revision of the Outlook to Stable reflects the narrowing of
Dominican Republic's government deficit and financing needs since
Fitch's last review resulting in the stabilization of the
government debt/GDP ratio, as well as the investment-driven
economic momentum, reflected in the faster-than-expected economic
recovery in 2021 that Fitch expects to carry into above-potential
GDP growth during 2022 and 2023.
Standard & Poor's, also in December 2021, revised its outlook on
the Dominican Republic to stable from negative. S&P also affirmed
its 'BB-' long-term foreign and local currency sovereign credit
ratings and its 'B' short-term sovereign credit ratings. The
stable outlook reflects S&P's expectation of continued favorable
GDP growth and policy continuity over the next 12 to 18 months that
will likely stabilize the government's debt burden, despite lack of
progress with broader tax reforms, S&P said. A rapid economic
recovery from the downturn because of the pandemic should mitigate
external and fiscal risks.
Moody's affirmed the Dominican Republic's long-term issuer and
senior unsecured ratings at Ba3 and maintained the stable outlook
in March 2021.
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J A M A I C A
=============
GRUPO AEROMEXICO: Davis Polk Advises on Club Premier Transaction
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Davis Polk is advising Grupo Aeromexico, S.A.B. de C.V. and its
affiliate Aerovias de Mexico, S.A. de C.V. (collectively,
"Aeromexico") in connection with its entry into a transaction with
Aimia Holdings UK I Limited and Aimia Holdings UK II Limited
(collectively, "Aimia") and PLM Premier, S.A.P.I. de C.V. (PLM).
The transaction will result in PLM, currently a joint venture
between Aeromexico and Aimia that owns and operates Aeromexico's
loyalty program ("Club Premier"), becoming a wholly owned
subsidiary of Aeromexico.
On February 4, 2022, the Bankruptcy Court entered an order
confirming Aeromexico's chapter 11 plan of reorganization, which,
among other things, authorized the PLM transaction. After obtaining
Mexican antitrust approval, Aeromexico, Aimia and PLM executed the
definitive transaction agreement. The PLM transaction is expected
to close on or about July 18, 2022.
Club Premier was the first frequent flyer program established in
Latin America and is Mexico's leading airline loyalty program.
Aeromexico is Mexico's flagship carrier and the leading Mexican
airline in terms of fleet size and network. Aeromexico, which began
its operations in 1934, offers passengers a full-service, premium
experience to 85 global destinations, including every major city in
Mexico. As a founding member of SkyTeam, an alliance of 19
international airlines dedicated to providing passengers with a
seamless travel experience, Aeromexico connects Mexico with the
world.
The Davis Polk restructuring team included partner Timothy
Graulich, counsel Stephen D. Piraino and associates Richard J.
Steinberg and Matthew Bruno Masaro. The corporate team included
partner Leo Borchardt and associate Alexander W. Simmonds. Members
of the Davis Polk team are based in the New York and London
offices.
Davis Polk refers to Davis Polk & Wardwell LLP, a New York limited
liability partnership, and its associated entities.
About Grupo Aeromexico
Grupo Aeromexico, S.A.B. de C.V. (BMV: AEROMEX) --
https://www.aeromexico.com/ -- is a holding company whose
subsidiaries are engaged in commercial aviation in Mexico and the
promotion of passenger loyalty programs. Aeromexico, Mexico's
global airline, has its main hub at Terminal 2 at the Mexico City
International Airport. Its destinations network features the United
States, Canada, Central America, South America, Asia and Europe.
Grupo Aeromexico and three of its subsidiaries sought Chapter 11
protection (Bankr. S.D.N.Y. Lead Case No. 20-11563) on June 30,
2020. In the petitions signed by CFO Ricardo Javier Sanchez Baker,
the Debtors reported consolidated assets and liabilities of $1
billion to $10 billion.
The Debtors tapped Davis Polk and Wardell LLP as their bankruptcy
counsel, KPMG Cardenas Dosal S.C. as auditor, and Rothschild & Co
US Inc. and Rothschild & Co Mexico S.A. de C.V. as financial
advisor and investment banker. White & Case LLP, Cervantes Sainz
S.C. and De la Vega & Martinez Rojas, S.C., serve as the Debtors'
special counsel. Epiq Corporate Restructuring, LLC, is the claims
and administrative agent.
The U.S. Trustee for Region 2 appointed a committee to represent
unsecured creditors on July 13, 2020. The committee is represented
by Willkie Farr & Gallagher, LLP and Morrison & Foerster, LLP.
JAMAICA: Sees Significant Drop in Insurance Industry Net Premium
----------------------------------------------------------------
RJR News reports that Jamaica's general insurance industry saw a
decline in net premium income for much of last year.
The recently published Economic and Social Survey Jamaica shows
that at the end of September net premium income fell by $500
million to $4.7 billion; net income declined by $200 million while
net investment income was down 14.2 per cent at half-a-billion
dollars, according to RJR News.
However, total assets of general insurance companies grew by 11.8
per cent to $106.2 billion at the end of September compared to the
corresponding period in the year before, the report notes.
Liabilities increased by 12.6% to $77.1 billion, the report
relays.
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.
===========
M E X I C O
===========
BBVA MEXICO: S&P Affirms 'BB' Rating on Subordinated Debt
---------------------------------------------------------
S&P Global Ratings revised its outlook on 12 Mexican financial
institutions (five commercial banks, six government-related
entities [GREs], and a clearinghouse) and on five insurers to
stable from negative. This action follows a similar action on the
sovereign. S&P also affirmed all ratings on these entities. At
the same time, it affirmed S&P's ratings on Banco Nacional de
Mexico S.A. (Citibanamex) and the outlook on it remains negative.
S&P revised outlooks on the following financial institutions:
-- BBVA Mexico S.A.;
-- Banco Mercantil del Norte S.A. Institucion de Banca Multiple
Grupo Financiero Banorte (Banorte);
-- Scotiabank Inverlat S.A.;
-- HSBC Mexico S.A.;
-- Banco Inbursa S.A. Institucion de Banca Multiple Grupo
Financiero Inbursa;
-- Nacional Financiera S.N.C. (NAFIN);
-- Banco Nacional de Comercio Exterior S.N.C. (Bancomext);
-- Banco Nacional de Obras y Servicios Publicos S.N.C.
(Banobras);
-- Instituto Para La Proteccion al Ahorro Bancario (IPAB);
-- Instituto del Fondo Nacional de la Vivienda para los
Trabajadores (Infonavit);
-- Fondo Especial de Asistencia Tecnica y Garantia Para
Creditos Agropecuarios (FEGA); and
-- Asigna Compensacion y Liquidacion.
And S&P did the same on the following insurers:
-- AXA Seguros S.A. de C.V.;
-- SOMPO Seguros Mexico, S.A. de C.V.;
-- Chubb Seguros Mexico, S.A.;
-- Qualitas Controladora S.A.B. de C.V.; and
-- Qualitas Insurance Co.
S&P Said, "The outlook revision on Mexico led to a similar action
on 12 financial institutions and five insurers. We revised the
outlook on Mexico to stable from negative, reflecting our
expectation that the government will maintain cautious fiscal and
monetary policy execution during the remainder of the López
Obrador administration, while the net general government debt ratio
to hold fairly steady. Moreover, given the stage of the political
cycle and polarization in Congress, we don't expect passage of
constitutional initiatives that could weigh on the business
climate.
"Our sovereign ratings on Mexico constrain ratings on the 12
Mexican financial institutions--due to their substantial exposure
to country risk and the highly sensitive nature of their businesses
to sovereign stress. Therefore, we took the same rating action on
these financial institutions following the one on Mexico." The
outlook on the five insurers reflects that on the local and foreign
currency sovereign ratings. Most of these insurers operate solely
in Mexico, and their investment portfolios have a significant
portion of sovereign debt.
The Mexican banking and insurance sectors proved to be resilient
during the pandemic and afterwards thanks to generally conservative
growth strategies and prudent risk management. In general, banks
and insurers are operating with healthy balance sheets and with
adequate liquidity and solid capitalization levels. S&P said, "Even
though we expect pressure on these entities' performance during the
next 12-18 months -- because of deteriorating global macroeconomic
conditions, high and increasing interest rates given historically
high inflation, and market volatility -- we believe the impact
would be manageable. This reflects our expectation that Mexican
banks and insurers will maintain a conservative stance on growth --
tightening their underwriting standards -- that will limit the
potential harm to their business and operating performance during
the next 12-18 months."
S&P said, "The pandemic hit Mexico hard, the economic recovery has
been modest, and we expect the country's economic growth after 2022
to be close to its historical structurally low growth rate of 2%.
Given the strong link between economic dynamics and credit
expansion and insurance premiums growth, we expect credit growth of
only 5% in nominal terms and insurance premiums of 7%-8% in
2022-2023. Once consumer and business dynamics stabilize and
employment level recovers, the banking and insurance sectors'
momentum will gradually gain steam. Meanwhile, we still expect
banks' asset quality to deteriorate in the next 12-18 months, but
remaining at manageable levels thanks to conservative growth
strategies and prudent lending practices, with a focus on middle-
and high-income customers with appropriate debt capacity."
As economic activity resumes amid the ebbing effects of the
pandemic, Mexican banks and insurers' profitability is stabilizing.
However, rising interest rates will prompt banks to increase rates
on loans, which along with economic challenges ahead, will pressure
asset quality and could raise loan-loss provisions. In addition,
high inflation and rising interest rates could limit demand for
credit and insurance products, intensifying competition among banks
and insurers, preventing them from passing the total increase in
interest rates to customers, which would dent margins and the
overall profitability. In S&P's opinion, the Mexican banking
system's return on assets (ROA) will be 1.6%-1.7% and return on
equity (ROE) at about 15% in 2022-2023. It expects the Mexican
insurance sector's ROA at 2%-3% and ROE of about 18%.
Outlook
The outlook on global scale ratings on the 12 Mexican financial
institutions and five insurers is stable for the next two years.
The stable outlook on the five Mexican commercial banks -- BBVA
Mexico, Banorte, Scotiabank Inverlat, HSBC Mexico, and Banco
Inbursa -- reflects the one on Mexico and incorporates these
entities' stand-alone credit factors and potential sovereign or
group support. The outlook on the six Mexican GREs -- Nacional
Financiera, Bancomext, Banobras, Infonavit, IPAB, and FEGA --
reflects their status as GREs and potential support from the
sovereign in case of stress, along with their stand-alone credit
factors.
Asigna, a Mexican clearinghouse operator, is the only financial
institution with a global scale long-term rating above the
sovereign level. S&P said, "The global scale rating stable outlook
reflects our consideration of only a one-notch differential between
the ratings on it and those on the sovereign. Although Asigna
passes the sovereign stress test for a hypothetical default of
Mexico, tougher operating conditions have shortened the gap by
which it passes this test. In our opinion, the stress test results
still demonstrate the capacity of Asigna's financial safeguards to
absorb a substantial portion of all uncovered losses in the event
that some clearing members default."
The outlook on the five insurers -- AXA Seguros, SOMPO Seguros
Mexico, Chubb Seguros Mexico, Qualitas Controladora, and Qualitas
Insurance reflects the outlook on the local and foreign currency
sovereign ratings. S&P said, "According to our group rating
methodology, we can rate highly strategic insurance subsidiaries up
to two notches above the foreign currency sovereign rating, while
strategically important subsidiaries are limited to the foreign
currency sovereign rating. In this sense, our 'BBB/A-2' foreign
currency rating on Mexico is the reference point for the credit
quality of subsidiaries of international insurance groups, such as
AXA Seguros and SOMPO Seguros Mexico. We consider Chubb Seguros
Mexico, the stand-alone credit profile (SACP) of which is 'a-', a
strategically important subsidiary. But we rate this entity the
same as the 'BBB+' local currency rating on Mexico because it
passes our sovereign default scenario in foreign currency, but not
in the local currency. Finally, the ratings on Qualitas
Controladora and Qualitas Insurance reflect our view of the group's
credit fundamentals, which are constrained by those of the
sovereign. The ratings on both entities are subordinated to our
views of their group, so they're affected in tandem, although the
ratings on them are below those on Mexico."
Negative scenario
A negative rating action on Mexico would result on a similar action
on the 12 domestic financial institutions and five insurers in the
next two years. Moreover, if their respective SACPs deteriorate
beyond S&P's base-case assumptions or if it revises its assessments
of government or group support materialize to a weaker category,
S&P could also lower the ratings on these entities.
Upside scenario
S&P sees limited rating upside in the next two years because
ratings on Mexico constrain those on the 12 financial institutions
and five insurers. An upgrade of these entities would depend on an
upgrade of Mexico, while maintaining or improving their SACPs and
group or government support.
S&P said, "Our negative outlook on our global and national scale
ratings on Citibanamex indicates a possible downgrade in the next
two years if new details about the parent's (Citi's) exit plans
lead us to believe that Citibanamex's creditworthiness will weaken,
perhaps if it's sold to a weaker buyer than Citi following the
execution of those plans. On the other hand, we could revise the
outlook on the global and national scale ratings to stable from
negative if we conclude that Citi is likely to retain ownership of
Citibanamex in order to continue operating its institutional and
private banking business in Mexico."
Environmental, Social, and Governance (ESG) Credit Indicators
S&P Global Ratings has disclosed its ESG credit indicators for
Latin America's commercial banks, insurance companies and a
clearinghouse, for which S&P assesses their stand-alone credit
profiles. In this sense, it considers that ESG factors have no
material influence on its credit rating analysis of the following
entities: BBVA Mexico, Banorte, Scotiabank Inverlat, HSBC Mexico,
Banco Inbursa, AXA Seguros, Chubb Seguros Mexico, Qualitas
Controladora, and Asigna.
ESG credit indicators: E-2, S-2, G-2
Ratings List
TO FROM
BANCO NACIONAL DE COMERCIO EXTERIOR, S.N.C. (BANCOMEXT)
ISSUER CREDIT RATING
Foreign Currency BBB/Stable/A-2 BBB/Negative/A-2
Local Currency BBB+/Stable/A-2 BBB+/Negative/A-2
National Scale mxAAA/Stable/mxA-1+ mxAAA/Stable/mxA-1+
Senior Secured Debt BBB BBB
Senior Secured Debt mxAAA mxAAA
BANCO NACIONAL DE OBRAS Y SERVICIOS PUBLICOS, S.N.C. (BANOBRAS)
ISSUER CREDIT RATING
Foreign Currency BBB/Stable/A-2 BBB/Negative/A-2
National Scale mxAAA/Stable/mxA-1+ mxAAA/Stable/mxA-1+
Senior Secured Debt mxAAA mxAAA
NACIONAL FINANCIERA, S.N.C.
ISSUER CREDIT RATING
Foreign Currency BBB/Stable/A-2 BBB/Negative/A-2
Local Currency BBB+/Stable/A-2 BBB+/Negative/A-2
National Scale mxAAA/Stable/mxA-1+ mxAAA/Stable/mxA-1+
Senior Secured Debt mxAAA mxAAA
Certificate of Deposit BBB/A-2 BBB/A-2
BBVA MEXICO S.A.
ISSUER CREDIT RATING
Global Scale Rating BBB/Stable/A-2 BBB/Negative/A-2
National Scale mxAAA/Stable/mxA-1+ mxAAA/Stable/mxA-1+
Senior Unsecured Debt mxAAA mxAAA
Subordinated debt BB BB
BANCO MERCANTIL DEL NORTE, S.A. (BANORTE)
ISSUER CREDIT RATING
Global Scale Rating BBB/Stable/A-2 BBB/Negative/A-2
National Scale mxAAA/Stable/mxA-1+ mxAAA/Stable/mxA-1+
Senior Unsecured Debt mxAAA mxAAA
HSBC MEXICO S.A.
ISSUER CREDIT RATING
Global Scale Rating BBB/Stable/A-2 BBB/Negative/A-2
National Scale mxAAA/Stable/mxA-1+ mxAAA/Stable/mxA-1+
BANCO INBURSA S.A.
ISSUER CREDIT RATING
Global Scale Rating BBB/Stable/A-2 BBB/Negative/A-2
National Scale mxAAA/Stable/mxA-1+ mxAAA/Stable/mxA-1+
Senior Unsecured Debt BBB BBB
Senior Unsecured Debt mxAAA mxAAA
SCOTIABANK INVERLAT, S.A.
ISSUER CREDIT RATING
Global Scale Rating BBB/Stable/A-2 BBB/Negative/A-2
National Scale mxAAA/Stable/mxA-1+ mxAAA/Stable/mxA-1+
Senior Unsecured Debt mxAAA mxAAA
FONDO ESPECIAL DE ASISTENCIA TECNICA Y GARANTIA PARA CREDITOS
AGROPECUARIOS (FEGA)
ISSUER CREDIT RATING
Global Scale Rating BBB/Stable/A-2 BBB/Negative/A-2
INSTITUTO DEL FONDO NACIONAL DE LA VIVIENDA PARA LOS
TRABAJADORES (INFONAVIT)
ISSUER CREDIT RATING
Global Scale Rating BBB/Stable/A-2 BBB/Negative/A-2
National Scale mxAAA/Stable/mxA-1+ mxAAA/Stable/mxA-1+
INSTITUTO PARA LA PROTECCIÓN AL AHORRO BANCARIO
ISSUER CREDIT RATING
Foreign Currency BBB/Stable/A-2 BBB/Negative/A-2
Local Currency BBB+/Stable/A-2 BBB+/Negative/A-2
National Scale mxAAA/Stable/mxA-1+ mxAAA/Stable/mxA-1+
Senior Unsecured Debt BBB+ BBB+
Senior Unsecured Debt mxAAA mxAAA
ASIGNA, COMPENSACIÓN Y LIQUIDACIÓN
ISSUER CREDIT RATING
Global Scale Rating BBB+/Stable/A-2 BBB+/Negative/A-2
National Scale mxAAA/Stable/mxA-1+ mxAAA/Stable/mxA-1+
AXA SEGUROS, S.A. DE C.V.
ISSUER CREDIT RATING
FINANCIAL STRENGTH RATING
Local Currency A-/Stable A-/Negative
National Scale mxAAA/Stable mxAAA/Stable
CHUBB SEGUROS MEXICO S.A.
FINANCIAL STRENGTH RATING
Local Currency BBB+/Stable BBB+/Negative
National Scale mxAAA/Stable mxAAA/Stable
ISSUER CREDIT RATING
National Scale mxAAA/Stable mxAAA/Stable
QUALITAS CONTROLADORA, S.A.B. DE C.V.
Issuer Credit Rating BB+/Stable BB+/Negative
QUALITAS INSURANCE COMPANY
Financial Strength Rating BBB-/Stable BBB-/Negative
Issuer Credit Rating BBB-/Stable BBB-/Negative
SOMPO SEGUROS MEXICO, S.A. DE C.V.
Financial Strength Rating A-/Stable A-/Negative
RATINGS AFFIRMED
BANCO NACIONAL DE MEXICO, S.A. (CITIBANAMEX)
ISSUER CREDIT RATING
Global Scale Rating BBB/Negative/A-2 BBB/Negative/A-2
National Scale mxAAA/Negative/mxA-1+ mxAAA/Negativmx+A1
:C87mxe/mxA-1+
=======
P E R U
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PETROLEOS DEL PERU: S&P Affirms 'BB' Ratings, Off Watch Negative
----------------------------------------------------------------
S&P Global Ratings affirmed its 'BB' ratings on Petroleos del Peru
(Petroperu) and removed them from CreditWatch with negative
implications.
S&P assigned a stable outlook that reflects its expectation that,
after peaking above 20x in 2020 because of substantial investments
and pandemic-related headwinds, Petroperu's leverage diminished in
2021 and will remain at about 10x in 2022 as Talara ramps up. The
outlook on Petroperu also reflects that on the sovereign and our
assessment of a very high likelihood of support, as seen in the
government's liquidity injection of $750 million. Finally, the
outlook incorporates the obtained waivers that prevented the
possibility of an event of default in the short term.
In April 2022, Petroperu announced the appointment of a new board
and key management, including a new CEO and CFO. Following these
changes, the company implemented a plan to address the audit
process, the stressed liquidity resulting from it, and the waivers
needed to prevent an event of default. The plan also included the
extraordinary support from the government, mainly consisting of the
$750 million short-term liquidity injection from the Treasury.
During the past few weeks, Petroperu prevented the possibility of
an event of default, linked to the non-compliance of its reporting
obligations, by receiving the waivers from existing lenders.
Moreover, PWC has resumed its role as Petroperu's auditor and is
advancing with the analysis of the 2021 results that should be
presented according to the amendments made over existing
documentation by Sept. 30, 2022.
S&P said, "As a result, we believe the plan remains on track, and
in general terms, in line with our expectations. We will continue
monitoring its progress in the next couple of months, including the
outcome of the audit.
"We believe liquidity will remain under pressure in the next 12
months and commensurate with our weak assessment, while the company
negotiates the re-opening of its uncommitted credit lines and
alleviates short-term maturity burden. To further support
liquidity, Petroperu is negotiating a new long-term credit facility
of up to $500 million, which is likely to be implemented in the
fourth quarter of 2022. We may revise our liquidity assessment once
the company implements all measures (including the maturity of the
$750 million facility from the Treasury in December 2022) and we
have a more comprehensive view of Petroperu's capital structure and
access to credit. This is more likely to occur in 2023, in our
view.
"We maintain our view of a very high likelihood of extraordinary
support from the government to Petroperu in the event of financial
distress and to avoid a payment default. We base this assessment on
the company's very important role in Peru's energy matrix. We also
believe Petroperu has a very strong link to the government. The
latter is involved in key investment decisions and gives
authorization to conduct significant investments and approval to
raise debt. In addition, the government has a track record of
support to the company, such as the short-term liquidity injection
from the Treasury. Petroperu's government shareholders have
reaffirmed their intention to support the company, especially after
the recent appointment of new management. They confirmed that
Petroperu is a strategic asset for the country and plays a critical
role in the fuel supply, which is why they would take the necessary
measures to avoid a payment default, if necessary.
"We will continue to monitor the relationship between Petroperu and
the Peruvian government, including the latter's incentives,
capacity, and tools to support the company, particularly amid the
uncertain global economic conditions and the company's current
strains."
ESG credit indicators: E-4, S-2, G-5
=====================
P U E R T O R I C O
=====================
ESJ TOWERS: Seeks to Hire Charles A. Cuprill P.S.C. as Counsel
--------------------------------------------------------------
ESJ Towers Inc. seeks approval from the U.S. Bankruptcy Court for
the District of Puerto Rico to hire Charles A. Cuprill, P.S.C., Law
Offices as its counsel.
The firm's services include the preparation of the Debtor's plan of
reorganization, representation of the Debtor in adversary
proceedings and other legal services in connection with its Chapter
11 case.
The firm will be paid at these rates:
Charles A. Cuprill-Hernandez, Esq. $400 per hour
Paralegal $85 per hour
As disclosed in court filings, Charles A. Cuprill, P.S.C. is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Charles A. Cuprill, Esq.
Charles A. Cuprill, P.S.C., Law Offices
356 Fortaleza Street (2nd Floor)
San Juan, PR 00901
Tel: 787-977-0515
Email: ccuprill@cuprill.com
About ESJ Towers Inc.
ESJ Towers, Inc. owns the ESJ Towers in Carolina, P.R. The luxury
apartments and condo units at ESJ Towers have direct access to Isla
Verde Beach, widely considered one of the best in Puerto Rico.
ESJ sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. D.P.R. Case No. 22-01676) on June 10, 2022, listing as much
as $50 million in both assets and liabilities. ESJ President Keith
St. Clair signed the petition.
Judge Enrique S. Lamoutte Inclan oversees the case.
Charles A. Cuprill, Esq., at Charles A. Cuprill, PSC Law Offices is
the Debtor's counsel.
UNIVERSAL DOOR: Case Summary & 19 Unsecured Creditors
-----------------------------------------------------
Debtor: Universal Door and Window Manufacture Inc.
52 Ave Serrano Carr 466 KM 05
Bo. Guatemala
San Sebastian, PR 00685
Business Description: The Debtor is a Single Asset Real Estate
(as defined in 11 U.S.C. Section 101
(51B)). It owns three properties consisting
of commercial and residential buildings and
parcels of land located in San Sebastian,
Puerto Rico with an aggregate value of $1.67
million.
Chapter 11 Petition Date: July 5, 2022
Court: United States Bankruptcy Court
District of Puerto Rico
Case No.: 22-01961
Debtor's Counsel: Alex Fuentes-Hernandez, Esq.
FUENTES LAW OFFICES, LLC
PO Box 90227266
San Juan, PR 00902-2726
Tel: 787-722-5215
Email: alex@fuentes-law.com
Debtor's
Financial
Consultant: CPA LUIS R. CARRASQUILLO & CO., P.S.C.
Total Assets: $1,691,500
Total Liabilities: $3,402,850
The petition was signed by Evelio Vidal Crespo Traverzo as
president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 19 unsecured creditors is available for free
at PacerMonitor.com at https://bit.ly/3NNLQ0N
*********
S U B S C R I P T I O N I N F O R M A T I O N
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