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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

          Tuesday, July 26, 2022, Vol. 23, No. 142

                           Headlines



A R G E N T I N A

ARGENTINA: Eases Some FX Curbs as Black-Market Peso Slumps
BANCO DE GALICIA: S&P Affirms 'CCC+' ICR, Outlook Stable


B R A Z I L

COMPANHIA DE SANEAMENTO: Fitch Affirms 'BB' FC IDR, Outlook Stable


C A Y M A N   I S L A N D S

NEW MEDIA: Deadline to File Objection to Dissolution Bid Today


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Central Bank Affirms Economy is Performing Well
DOMINICAN REPUBLIC: Ice Cream Mfg. Industry Facing Challenges
DOMINICAN REPUBLIC: Power Pact Affects all Groups, Almanzar Says


H O N D U R A S

BANCO ATLANTIDA: Fitch Lowers LT IDRs to 'B', Outlook Negative


M E X I C O

BANCA MIFEL: Fitch Affirms & Withdraws 'BB-' LT IDRs
CREDITO REAL: Headed to Liquidation and Dissolution in Mexico


P A R A G U A Y

PARAGUAY: Moody's Affirms Ba1 Issuer & Sr. Unsecured Bond Ratings


P E R U

PERU LNG: Moody's Upgrades CFR to B2, Alters Outlook to Stable


X X X X X X X X

LATAM: Tourism Sector on the Mend After Pandemic

                           - - - - -


=================
A R G E N T I N A
=================

ARGENTINA: Eases Some FX Curbs as Black-Market Peso Slumps
----------------------------------------------------------
globalinsolvency.com, citing Bloomberg News, reports that Argentina
is loosening some currency restrictions for foreign tourists and
importers as the peso's unofficial exchange rates extended a
month-long slump.

Importers of strategic sectors in the economy will have more access
to dollars, the government said in a statement, as it seeks to
avoid shortages of imported goods, according to the report.

Meanwhile, foreign tourists who are not residents in Argentina will
be able to exchange as much as $5,000 for pesos at a more lucrative
exchange rate than the official one, a measure aimed to shore up
the local currency, the report notes.

Argentina's black-market exchange rate weakened further to 337
pesos per dollar, according to the website Dolarhoy.com, marking a
30% drop so far in the month, the report discloses.  A parallel
rate derived from buying securities locally and selling them
abroad, known locally as the blue-chip swap, weakened as much as
6.8% on July 21 to nearly 334 pesos per dollar in Buenos Aires, the
report notes.  Political infighting and a lack of a clear policy
direction following the abrupt resignation of former Economy
Minister Martin Guzman on July 2 are fueling Argentina's latest
currency rout, 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.

Last March 25, 2022, Argentina finalized agreement with the IMF
for a new USD44 billion Extended Funding Facility (EFF) intended
to fund USD40 billion in looming repayments of the defunct
Stand-By Arrangement (SBA), with an extra USD4 billion in up-front
net financing. This has averted the risk of a default to the IMF
and is facilitating a parallel rescheduling of Paris  Club debt.

As reported by The Troubled Company Reporter - Latin America on
July 19, 2022, Fitch Ratings placed Argentina's Long-Term Foreign
Currency Issuer Default Rating (IDR) and Long-Term Local Currency
IDR Under Criteria Observation (UCO) following the conversion of
the agency's Exposure Draft: Sovereign Rating Criteria to final
criteria. The UCO assignment indicates that ratings may change as
a direct result of the final criteria. It does not indicate a
change in the underlying credit profile, nor does it affect
existing Rating Outlooks.

Last April 14, 2022, Fitch Ratings affirmed Argentina's Long-Term
Foreign and Local Currency Issuer Default Ratings (IDR) at 'CCC'.
Fitch said Argentina's 'CCC' ratings reflect weak external
liquidity and pronounced macroeconomic imbalances that undermine
debt repayment capacity, and uncertainty regarding how much
progress can be made on these issues under a new IMF program.

Fitch added that it is uncertain whether the EFF will be a strong
anchor for macroeconomic stabilization. Its policy requirements
are fairly unambitious relative to other IMF programs and in
light of the economy's deep imbalances, but it faces heightened  
risk nonetheless from weak political support and  spill-overs
from the Russia-Ukraine war, says Fitch.

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.  DBRS has confirmed Argentina's Long-Term Foreign
Currency Issuer Rating at CCC and Long-Term Local Currency Issuer
Rating at CCC (high) on July.

BANCO DE GALICIA: S&P Affirms 'CCC+' ICR, Outlook Stable
--------------------------------------------------------
S&P Global Ratings affirmed its global scale ratings on two
Argentine financial institutions. The affirmations follow a
revision to our criteria for rating banks and nonbank financial
institutions and for determining a Banking Industry Country Risk
Assessment (BICRA). The rating affirmations occurred on the
following entities:

-- Banco De Galicia Y Buenos Aires S.A.U. (Banco Galicia;
CCC+/Stable/--); and

-- Banco Patagonia S.A. (CCC+/Stable/C).

S&P's outlooks on these entities remain unchanged.

S&P said, "Our assessments of economic risk and industry risk in
Argentina also remain unchanged at '10' and '7', respectively.
These scores determine the BICRA and the anchor, or starting point,
for our ratings on financial institutions that operate primarily in
that country. In our view, economic risk trend remains stable and
industry risk trend negative for Argentina's BICRA."

Banco Galicia

Ratings reflects the bank's well-established brand and solid
presence in the Argentine financial system, which allows Banco
Galicia to generate relatively stable operating revenue despite the
weak business conditions and many distortions in Argentina's
economy. The ratings also incorporate capitalization metrics that
will allow the bank to sustain its business plan despite
profitability pressures, with the expected risk-adjusted capital
(RAC) ratio of about 4.8% for the next 12-24 months.

S&P said, "Our assessment of the bank's risk position incorporates
its low business complexity, with the focus on lending, customer
concentrations in line with those of peers, and manageable asset
quality metrics. Additionally, our rating considers Banco Galicia's
funding base that benefits from a relatively low-cost deposit base,
which continues to be its main funding source. Furthermore, the
bank has a sound liquidity position, which is in line with those of
domestic peers and incorporates characteristics of Argentina's
financial system. Banco Galicia, as well as the domestic banking
system, has a high level of liquidity due to high reserve
requirements for Argentine peso deposits.

"As a result of these factors, Banco Galicia's stand-alone credit
profile (SACP) is 'b+'. However, we limit our 'CCC+' local currency
and foreign currency ratings on the bank by our 'CCC+' sovereign
rating on Argentina. We rarely rate financial institutions higher
than the sovereign where they operate, because we consider it
unlikely that these institutions would remain unaffected by
developments in domestic economies."

ESG factors have no material influence on our credit rating
analysis of Banco Galicia.

Outlook

S&P said, "The stable outlook for the next 12 months on Banco
Galicia mirrors that on Argentina (CCC+/Stable/C), because we limit
the ratings on it to those on the sovereign. At the same time, we
incorporate the risks stemming from multiple distortions in the
economy, as well as volatilities, which could erode the solvency
and liquidity of Argentine banks.

Downside scenario. S&P could lower the ratings on Banco Galicia if
it takes a similar action on the sovereign or if the previously
mentioned factors erode the bank's ability to cover its financial.
A deterioration in the entity's credit fundamentals wouldn't lead
to an automatic downgrade because its 'b+' SACP is three notches
higher than the long-term issuer credit rating.

Upside scenario. S&P could raise the ratings on the bank if it was
to raise the rating on the sovereign, because the credit quality of
the latter limits the ratings on the bank.

  Ratings Score Snapshot

  Issuer credit rating: CCC+/Stable/--

  Stand-alone credit profile: b+
  Anchor: b+
  Business position: Adequate (0)
  Capital and earnings: Constrained (0)
  Risk position: Adequate (0)
  Funding and liquidity: Adequate and adequate (0)
  Comparable rating analysis: 0
  Support: 0
  ALAC support: 0
  GRE support: 0
  Group support: 0
  Sovereign support: 0
  Additional factors: 0

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

Banco Patagonia

The ratings reflect the bank's medium size in the domestic banking
industry, with diversified operations and a wide range of financial
products, and resilient revenue despite its medium size and
Argentina's economic malaise. Also, the ratings incorporate Banco
Patagonia's comfortable capitalization metrics that provide enough
cushion to sustain its business plan, with the expected RAC ratio
of about 6.6% for the next 12-24 months. S&P's assessment of the
bank's risk position reflects its better asset quality metrics than
those of domestic peers and comfortable coverage levels, despite
expected further weakening amid the economic slump. Additionally,
the bank continues to benefit from a funding structure mostly
consisting of low-cost deposits and a sound liquidity position in
line with those of its domestic peers that incorporates
characteristics of Argentina's financial system. The domestic
banking system has a high level of liquidity due to the high
reserve requirements for Argentine peso deposits.

As a result of these factors, Banco Patagonia's SACP is 'b+'. S&P
said, "However, we limit our 'CCC+' local currency and foreign
currency ratings on the bank by our 'CCC+' sovereign rating on
Argentina. We rarely rate financial institutions higher than the
sovereign where they operate, because we consider it unlikely that
these institutions would remain unaffected by developments in
domestic economies."

ESG factors have no material influence on our credit rating
analysis of Banco Patagonia.

Outlook

S&P said, "The stable outlook for the next 12 months on Banco
Patagonia mirrors that on Argentina, because we limit the ratings
by those on the sovereign. At the same time, we incorporate the
risks from the multiple distortions in the economy, as well as
volatilities, which could erode the solvency and liquidity of
Argentine banks."

Downside scenario. S&P could lower the ratings on Banco Patagonia
if it takes a similar action on the sovereign or if the previously
mentioned factors erode the bank's ability to cover its financial
obligations or access dollars to pay its foreign currency debt. A
deterioration in the entity's credit fundamentals wouldn't lead to
an automatic downgrade because its 'b+' SACP is three notches
higher than the long-term issuer credit rating.

Upside scenario. S&P could raise the ratings on the bank if it was
to raise the rating on the sovereign, because the credit quality of
the latter limits the ratings on the bank.

  Ratings Score Snapshot

  Issuer credit rating: CCC+/Stable/C

  Stand-alone credit profile: b+
  Anchor: b+
  Business position: Adequate (0)
  Capital and earnings: Moderate (0)
  Risk position: Adequate (0)
  Funding and liquidity: Adequate and adequate (0)
  Comparable rating analysis: 0
  Support: 0
  ALAC support: 0
  GRE support: 0
  Group support: 0
  Sovereign support: 0
  Additional factors: 0

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

  Ratings List

  RATINGS AFFIRMED

  BANCO DE GALICIA Y BUENOS AIRES S.A.U.

   Issuer Credit Rating          CCC+/Stable/NR
   Subordinated                  CCC-

  RATINGS AFFIRMED

  BANCO PATAGONIA S.A.

   Issuer Credit Rating         CCC+/Stable/C






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

COMPANHIA DE SANEAMENTO: Fitch Affirms 'BB' FC IDR, Outlook Stable
------------------------------------------------------------------
Fitch Ratings has affirmed Companhia de Saneamento Basico do Estado
de Sao Paulo's (Sabesp) Local Currency (LC) Long-Term Issuer
Default Rating (IDR) at 'BB+' and Foreign Currency (FC) Long-Term
IDR at 'BB'. Fitch has also revised the Rating Outlook for the FC
and LC IDRs to Stable from Negative.

The Outlook revision for Sabesp mirrors the revision of the
Outlooks for the State of São Paulo's FC and LC IDRs (BB-) on July
20, 2022, which in turn followed Fitch's revision of the Outlook
for Brazil's sovereign rating (BB-) on July 14, 2022.

Sabesp's ratings reflects Fitch's view of the company's ownership
exposure, derived from porous legal ring-fencing and porous access
and control from its majority shareholder, State of Sao Paulo
(BB-/Stable). This constrains the rating up to two notches from the
parent's rating, per Fitch's criteria. Sabesp's ratings also
reflect the solid fundamentals of Brazil's water and wastewater
industry and its solid business profile. Fitch expects the company
to maintain conservative net leverage and robust liquidity, despite
Fitch's forecast of negative free cash flow (FCF).

KEY RATING DRIVERS

Outlook Stabilized: The Brazilian sovereign's Outlook revision
reflects the better-than-expected evolution of public finances amid
successive shocks in recent years since Fitch assigned the Negative
Outlook in May 2020. In 2021 Brazil recorded its first primary
fiscal surplus since 2013, highlighting revenue outperformance and
the government's commitment to withdraw stimulus implemented during
the pandemic.

Brazilian Growth Resilience in 2022: The Brazilian economic
activity has been more resilient than Fitch's earlier expectations.
Fitch projects 1.4% growth in 2022, up from 0.5% previously,
reflecting a better-than-expected 1Q22 outturn, post-pandemic
re-opening of lagging sectors, a solid job recovery, augmented
social transfers and higher commodity prices. Fitch expects that
the lagging impact of the significant monetary policy tightening
and domestic election-related and global uncertainties should
constrain growth going forward and into 2023, despite the
resilience thus far. Downside risks persist to Fitch's 1% growth
projection for 2023.

Porous Linkage Assessment: Fitch's assessment of Sabesp's linkage
reflects that its Standalone Credit Profile (SCP) is commensurate
with a LC IDR of 'BB+'. Nevertheless, as a company controlled by
the State of Sao Paulo, Fitch applied the government-related
entities and parent-subsidiary linkage rating criteria, which
resulted in the issuer's LC IDR limited at two notches above its
parent's IDR. Considering Sao Paulo's IDR is 'BB-', Sabesp's LC IDR
ends reflecting its SCP of 'BB+'. Fitch considers the strength of
linkage between them as moderate and the incentive to support as
weak to moderate. In addition, the company presents porous legal
ring-fencing and porous access and control.

RATING SENSITIVITIES

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

-- A positive rating action on the FC IDR depends on the same
    movement on the sovereign rating;

-- A positive rating action on the LC IDR depends on FCF at least

    neutral to slightly negative associated with the same movement

    on the rating of the state of São Paulo;

-- An upgrade of the National Scale Ratings is not possible as
    the rating is at the top of the national scale.

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

-- Negative rating actions on the sovereign rating may lead to
    negative action on the FC IDR;

-- Negative rating actions on the state of São Paulo rating may
    lead to negative action on the LC IDR;

-- EBITDA margins below 40%;

-- Net leverage sustained above 3.0x;

-- Increased political and/or regulatory risk;

-- Lower financial flexibility.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.

ISSUER PROFILE

Mainly controlled by the State of São Paulo, Sabesp is a basic
sanitation concessionaire that provides treated water supply and
sewage collection and treatment services in 375 of the 645
municipalities in São Paulo. São Paulo is the most populous state
in Brazil and accounts for the largest share of the national GDP.
The company directly supplies water to 27.8 million people and
sewage collection services to 24.6 million. The company is listed
on B3 S.A. - Bolsa Brasil, Balcão (Novo Mercado) and the New York
Stock Exchange (ADR Level III).

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.

   DEBT           RATING                     PRIOR
   ----           ------                     -----

Companhia de   LT IDR      BB    Affirmed    BB
Saneamento
Basico do Estado
de Sao Paulo (SABESP)

               LC LT IDR   BB+   Affirmed    BB+



===========================
C A Y M A N   I S L A N D S
===========================

NEW MEDIA: Deadline to File Objection to Dissolution Bid Today
--------------------------------------------------------------
The joint liquidators of New Media Distribution Company Sezc
Limited intend to submit an application to the Grand Court of the
Cayman Island seeking orders that the company be dissolved.

Any creditors who opposes the proposal or wishes to be heard on the
application, should contact the Joint Official Liquidators no later
than 12 p.m. today, July 26, 2022.

The joint liquidator is Andrew Morrison.



===================================
D O M I N I C A N   R E P U B L I C
===================================

DOMINICAN REPUBLIC: Central Bank Affirms Economy is Performing Well
-------------------------------------------------------------------
Dominican Today reports that inflationary pressures remain high in
Latin America, influenced by the significant increase in
international commodity prices and distortions in supply chains.
This statement is made by the Central Bank in a note explaining
that to counteract high inflation, central banks in the region have
been implementing monetary normalization plans, increasing their
monetary policy interest rates (TPM), according to Dominican
Today.

The bank notes that the growth of monetary aggregates has moderated
significantly due to the monetary policy normalization process in
the Dominican Republic, the report notes.

It assures that domestic economic activity continues to perform
well, growing 5.6% between January and May of this year and that
private credit continues to show high dynamism, expanding by around
13.0% at the end of June, the report relays.  Furthermore,
regarding the labor market, the CB points out that employment has
recovered to levels similar to those recorded before the pandemic,
and a reduction in the open unemployment rate is observed, reaching
6.4% in the first quarter of this year, the report notes.

It highlights that international reserves have strengthened,
exceeding US$14.4 billion, above the IMF's recommendations, 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: Ice Cream Mfg. Industry Facing Challenges
-------------------------------------------------------------
Dominican Today reports that one of the main challenges of the ice
cream manufacturing industry in the country is maintaining
competitive prices for electricity, both in the manufacturing
plants and in the ice cream parlors, to guarantee the good state of
the supply of raw materials for the production of those products
that require refrigeration.

This was stated by executives of Helados Bon to the Minister of
Industry, Commerce and Mipymes (MICM), Victor Bisono, during a
visit he made to the company's production plant, in the Herrera
Industrial Zone, according to Dominican Today.

"Other important elements for our industry are not passing on to
consumers the high increases in raw materials and electricity, and
expanding the import quota for powdered milk, under the Free Trade
Agreement between Central America and the United States (DR
-Cafta)," said the general manager of the company that manufactures
ice cream and other products for national consumption, Luis
Fernando Enciso, the report relays.

                 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: Power Pact Affects all Groups, Almanzar Says
----------------------------------------------------------------
Dominican Today reports that before the decision made by President
Luis Abinader to stop the increase in the rate contained in the
Electric Pact, the executive vice president of the Association of
Industries of the Dominican Republic (AIRD), Circe Almanzar,
considered that the issue must be agreed upon by the groups
involved and must not be politicized.

The businesswoman recalled that when the Electric Pact was signed,
everyone understood the importance of solving the country's
electricity crisis, with the problems that had accumulated,
according to Dominican Today.

At that time, Almanzar reiterated that there were international
variables different from those of now; therefore, when it comes to
reviewing it, it is between all sectors so that there is no burden
for users or for the Government, the report notes.

" . . .  The issue cannot be politicized, but it must be managed as
a nation, because -after all, I come back and repeat-, if we have
the electricity problem, on the one hand, if we do not make the
rates transparent, the Government pays them and we have a deficit
issue in the electricity sector that is paid for through
subsidies,"  she said, the report relays.

                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.




===============
H O N D U R A S
===============

BANCO ATLANTIDA: Fitch Lowers LT IDRs to 'B', Outlook Negative
--------------------------------------------------------------
Fitch Ratings has downgraded Banco Atlantida, S.A.'s (Atlantida)
Long-Term (LT) Foreign and Local Currency Issuer Default Ratings
(IDRs) to 'B' from 'B+' and affirmed the Short-Term (ST) IDRs at
'B'. Fitch has also downgraded Atlantida's Viability Rating (VR) to
'b' from 'b+' and affirmed its National LT and ST Ratings at
'A+(hnd)' and 'F1(hnd)', respectively. In addition, Fitch has
downgraded Inversiones Atlantida, S.A. y Subsidiarias's
(Invatlan)'s LT IDRs to 'B-' from 'B' and affirmed the ST IDR at
'B'. The Rating Outlook on the LT IDRs and National LT Rating is
Negative. Fitch also affirmed debt ratings of Atlantida and
Invatlan.

Atlantida's and Invatlan's downgrades are driven by Fitch's view of
a weakening in the credit quality of the sovereign. The rating
action reflects Fitch's view that banks in Honduras, specially the
largest ones, remain sensitive to the credit quality of the
sovereign despite its resilient and tested financial profile during
the pandemic-driven headwinds and remaining pressures in the
operating environment (OE). National Scale Ratings are included
because of the scheduled regulatory annual review.

KEY RATING DRIVERS

ATLANTIDA

IDRS, VR AND SENIOR DEBT

The bank's IDRs and National Ratings are driven by its intrinsic
creditworthiness as reflected in its VR of 'b'. Atlantida's ratings
are influenced by Fitch's assessment of the Honduran operating
environment (OE) which was downgraded to 'b-' from 'b'. Fitch
believes that Atlantida's business profile is a strength and a high
influence factor for the rating due to its leading market position
in Honduras. The Negative Outlook on Atlantida's LT IDRs and
National Rating currently reflect the downward trend on the bank's
already weak capitalization ratio which remain close to Fitch´s
stablished minimum threshold for Fitch Core Capital (FCC) at 8.0%
to sustain the rating.

As of March 2022, Atlantida remained as the largest bank in
Honduras in terms of both loans and deposits, with a market share
of around 22% and 21%, respectively.

The bank's capitalization, measured by the FCC ratio, remains as a
weakness for the financial profile; Atlantida's core metric on
capitalization, FCC to risk-weighted assets (RWA), continued its
downward trend to 8.5% as of March 2022 driven by the bank's rapid
credit growth. The adequate internal capital generation has proved
to be insufficient to sustain capital metrics due to credit
expansion. Regulatory solvency ratio has decreased to 11.8%
(minimum: 11%).

Atlantida's asset quality is in line with the bank's risk appetite.
As of March 2022, the bank's four-year average non-performing loan
ratio (NPL) improved to 2.4% close to pre-pandemic levels (2.35%).
The recent NPL ratios benefit from a larger loan portfolio base
given its recent rapid growth; during 2021, credit growth was 20%,
representing a marked difference with other peers.

The reserve coverage of the NPLs is below pre-pandemic level, but
still above 100% (129% as of March 2022 from an average of 135% in
the last four fiscal years). Asset quality is also affected by high
debtor concentration; As of March 2022, the top 20 borrowers
represented 2.7x Atlantida's FCC, which is a material risk exposure
in case of unexpected impairments on its largest debtors.

The bank's profitability has significantly improved in the last 15
months. During 2021, the bank showed a recovery in the operating
profit to RWA ratio to 1.9% driven by a steep reduction in interest
expense, an increase in fees and commissions and a decrease in loan
impairment charges. This positive trend has continued in the first
three months of 2022 with a ratio of 2.7%, which also benefited
from an improvement in operational efficiency.

Atlantida's funding and liquidity is consistently stable supported
by its large and diversified customer deposit base. It provides the
bank the ability to finance its operations and meet short term
obligations. The bank is the leading franchise in Honduras in terms
of deposits and during the pandemic has demonstrated to be the
'flight-to-quality' option. Atlantida's loans to customer deposits
ratio is 87.7% in line with its four-year average of 88.6%.

RATING SENSITIVITIES

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

ATLANTIDA

IDRs VR National Ratings and Senior Debt

-- A negative change in Fitch's OE assessment or Fitch's view on
    the sovereign credit quality could lead to a negative rating
    action;

-- Downgrades of Atlantida's IDRs, VR and National Ratings could
    also come from a continued weakened capitalization metrics
    reflected in a sustained FCC/RWAs below 8.0%..

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

ATLANTIDA

IDRs, VR, National Ratings and Senior Debt

-- A positive change in Fitch's OE assessment or Fitch's view on
    the sovereign credit quality could lead to a positive rating
    action;

-- The Negative Outlook on Atlantida's ratings would be revised
    to Stable if its core capital metric reverses its negative
    trend and stabilizes and maintains at a level above 8% over
    the outlook horizon and a larger buffer from the minimum
    regulatory capital requirements is achieved;

-- Atlantida's IDRs have limited upside potential as they are not

    expected to be rated two notches above the OE. National
    Ratings could be upgraded if the bank shows a sustained
    improvement in capital and profitability metrics, which would
    be materialized in an FCC/RWA standing above 9% and operating
    profitability/RWA consistently above 2%, respectively.

OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS

Atlantida's outstanding senior unsecured notes issued in the local
capital market Bonos Bancatlan 2016 and Bonos Bancatlan 2018 are
rated at the same level as the bank's National Rating of 'A+(hnd)'
as the likelihood of a default of the notes is the same as for the
company.

Fitch has also downgraded the GSR to 'b-' from 'b', which still
reflects Atlantida's high systemic importance, with over a 20%
share of system deposits and loans, as well as the lack of recent
history of government support of a systematically important
financial institutions.

OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES

The bank's National LT senior unsecured debt rating is sensitive to
changes in Atlantida's National LT Rating.


Fitch may also take a negative rating action on the GSR if the
agency considers a lower propensity or capacity from the sovereign
to support the bank.

A positive change in the GSR would reflect the Fitch's opinion of a
higher propensity or capacity of support from the government.

SUBSIDIARIES & AFFILIATES: KEY RATING DRIVERS

INVATLAN

IDRS AND SENIOR DEBT

Invatlan's IDRs of 'B-' reflect the creditworthiness of its main
subsidiary, Atlantida, rated 'B'. Invatlan continues to be one
notch below Atlantida due to its still high double leverage ratio
that remained above 120% (March 2022: 146%). Invatlan's Outlook
mirrors Atlantida's Outlook as the main subsidiary of the
controlling group. Invatlan currently has operations in Honduras,
El Salvador and Nicaragua, and Fitch expects that the continued
business expansion in the Latin American region will remain as a
pressure for the double leverage as recent investments are still
under consolidation.

Fitch also downgraded the USD300 million senior secured notes
ratings to 'B-' from 'B' with a 'RR4' as these mirror Invatlan's
IDR. Despite being senior secured obligations, Fitch believes the
collateral mechanism would not have a significant impact on
recovery rates. In accordance with Fitch's rating criteria,
recovery prospects for the notes are average and are reflected in
their Recovery Rating of 'RR4'.

SUBSIDIARIES AND AFFILIATES: RATING SENSITIVITIES

INVATLAN

IDRs AND SENIOR DEBT

Negative

-- Invatlan's ratings will likely move in line with those of its
    main subsidiary, Atlantida;

-- A significant reduction in dividends transfers from Invatlan's

    main subsidiaries that ultimately affect its liquidity to
    service debt or a sustained increase of double leverage to
    above 225%;

-- The global senior secured debt ratings would mirror any change

    to Invatlan's IDR;

-- Invatlan's ratings will likely move in line with that of those

    of its main subsidiary, Atlantida.

Positive

-- Invatlan's IDRs could be upgraded by one notch if the
    company's double-leverage ratio decreases at a level
    consistently below 120% resulting from a continued expansion
    financed by capital injections;

-- The global senior secured debt ratings would mirror any change

    to Invatlan's IDRs.

VR ADJUSTMENTS

The VR of 'b' has been assigned above the implied rating of 'b-'
due to a positive adjustment given the high influence of Business
Profile, particularly for the strong franchise in Honduras.

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.

Sources of Information

The principal sources of information used in the analysis are
described in the Applicable Criteria.

ESG CONSIDERATIONS

Banco Atlantida S.A. has an ESG Relevance Score of '4' for
Financial Transparency due to third-party disclosure that remains
weaker than international best practices. This has a negative
impact on the credit profile, and is relevant to the ratings in
conjunction with other factors.

Inversiones Atlantida S.A. has an ESG Relevance Score of '4' for
Financial Transparency due to lagging or missing information
disclosure. This has a negative impact on the credit profile, and
is relevant to the ratings in conjunction with other factors.

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.

   DEBT             RATING                         RECOVERY  PRIOR
   ----             ------                         --------  -----

Banco               LT IDR       B        Downgrade        B+
Atlantida S.A.

                    ST IDR       B        Affirmed         B

                    LC LT IDR    B        Downgrade        B+

                    LC ST IDR    B        Affirmed         B

                    Natl LT      A+(hnd)  Affirmed         A+(hnd)


                    Natl ST      F1(hnd)  Affirmed         F1(hnd)


                    Viability    b        Downgrade        b+

                    Government   b-       Downgrade        b
                    Support

   senior           Natl LT     A+(hnd)   Affirmed         A+(hnd)
   unsecured

Inversiones         LT IDR      B-        Downgrade        B
Atlantida S.A.

                    ST IDR      B         Affirmed         B

                    LC LT IDR   B-        Downgrade        B

                    LC ST IDR   B         Affirmed         B

   senior secured   LT          B-        Downgrade   RR4  B



===========
M E X I C O
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BANCA MIFEL: Fitch Affirms & Withdraws 'BB-' LT IDRs
-----------------------------------------------------
Fitch Ratings has affirmed and withdrawn Banca Mifel, S.A.,
Institucion de Banca Multiple, Grupo Financiero Mifel's (Mifel)
Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs)
at 'BB-', Short-Term Foreign and Local Currency IDRs at 'B', as
well as the Viability Rating (VR) at 'bb-' and the Government
Support Rating (GSR) at 'ns'. The Rating Outlooks of the Long-Term
IDRs were Stable prior to the ratings withdrawal.

Fitch will continue providing national-scale ratings for this bank,
which currently remain at 'A(mex)' with a Stable Outlook for the
long-term national rating and 'F1(mex)' for the short-term national
rating.

Fitch has withdrawn the international ratings for commercial
reasons.

KEY RATING DRIVERS

Mifel's IDRs were driven by its standalone creditworthiness, as
expressed by its VR of 'bb-'. The VR is based on its moderate
market position within the Mexican banking system and its
consistent but concentrated business model in sensitive sectors
such as SMEs and mortgages lending. The ratings also reflected
Mifel's financial performance that includes a reasonable asset
quality metrics, profitability ratios with gradual improvement and
adequate capitalization, as well as its funding and liquidity
profiles, which are commensurate with its rating level.

Mifel's 'ns' GSR reflected Fitch's expectation that there is no
reasonable assumption that federal government support will be
available, due to the bank not being formally designated as a
domestically systemic important bank. At 1Q22, Mifel deposits were
less than 1% of the Mexican banking system's total.

RATING SENSITIVITIES

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

Negative rating sensitivities are not applicable as the
international ratings have been withdrawn.

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

Positive rating sensitivities are not applicable as the
international ratings have been withdrawn.

VR ADJUSTMENTS

The Business Profile Score of 'bb' has been assigned above the 'b'
category implied score due to the following adjustment reasons:
Business Model (positive).

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

Prepaid expenses and other deferred assets were classified as
intangibles and deducted from equity to reflect its low absorption
capacity.

Financial figures for 2021 and prior years are in accordance with
Mexican Financial Reporting Standards (NIF), while 1Q22 figures are
under International Financial Reporting Standards (IFRS).

ESG CONSIDERATIONS

Following the withdrawal of Mifel's international ratings, Fitch
will no longer be providing the associated ESG Relevance Scores.

  DEBT   RATING                                 PRIOR
  ----   ------                                 -----

Banca  LT IDR                BB-   Affirmed     BB-
Mifel,
S.A.,
Institucion de Banca Multiple,
Grupo Financiero Mifel

       LT IDR                WD    Withdrawn    BB-

       ST IDR                B     Affirmed     B

       ST IDR                WD    Withdrawn    B

       LC LT IDR             BB-   Affirmed     BB-

       LC LT IDR             WD    Withdrawn    BB-

       LC ST IDR             B     Affirmed     B

       LC ST IDR             WD    Withdrawn    B

       Viability             bb-   Affirmed     bb-

       Viability             WD    Withdrawn    bb-

       Government Support    ns    Affirmed     ns

       Government Support    WD    Withdrawn    ns

CREDITO REAL: Headed to Liquidation and Dissolution in Mexico
-------------------------------------------------------------
Credito Real SAB's ex-CEO Angel Francisco Romanos Berrondo has
pushed his own company to liquidation in Mexico, throwing a wrench
into efforts by bondholders to force the company to pursue a
Chapter 11 restructuring in the U.S.

At the behest of Mr. Berrondo, the Mexican court has ordered the
liquidation of the payroll lender.  The liquidators subsequently
filed a Chapter 15 petition to seek U.S. recognition of the winding
down proceedings in Mexico.

Credito Real is a leading specialty finance company based in Mexico
City, Mexico.  The company offered loans to segments generally
underserved by the traditional banking system.  The Company
provided loans paid via payroll deduction, car loans and funding
for small and medium enterprises to customers in Mexico, Honduras,
Nicaragua, Panama, Costa Rica, Guatemala, and the United States.

Credito Real has over US$2.55 billion in funded debt obligations:

   * Total bank debt: $615 million
   * 2.875% Senior Notes due 2022 (CHF) $181 million
   * 7.250% Senior Notes due 2023 (USD) $249 million
   * 9.500% Senior Notes due 2026 (USD) $400 million
   * 5% Senior Notes due 2027 (EUR) $379 million
   * 8% Senior Notes due 2028 (USD) $500 million
   * 9.125% Perpetual Notes (USD) $230 million

Since the start of the COVID-19 pandemic in early 2020, the Company
has been faced with severe liquidity constraints, which led it to
implement structural changes to its operations to optimize cash
flows and maximize revenue streams.  The Company was unable to
satisfy or refinance its Swiss law governed notes, in aggregate
principal amount outstanding of approximately US$181 million,
before it matured in February 2022.

Following the maturity of these Swiss notes, the Company hired
advisors and began engaging in discussions regarding potential
restructuring transactions with its various stakeholders, including
ad hoc groups consisting of its secured and unsecured bank lenders
and certain holders of Credito Real's unsecured New York law
governed bonds. Those discussions did not result in an agreed
restructuring of the Company.

On June 22, 2022, certain parties alleging to hold less than 0.3%
of the Chapter 15 Debtor's US$2.5 billion outstanding funded debt
obligations under section 303 of the Bankruptcy Code filed an
involuntary chapter 11 petition against Credito Real in the United
States Bankruptcy Court for the Southern District of New York
thereby commencing an involuntary chapter 11 case.

As a result of the Company's untenable financial position and
decline in value, on June 28, 2022, Mr. Angel Francisco Romanos
Berrondo, one of the Debtor's shareholders, filed a petition, in
his capacity as a shareholder, with the Mexican Court seeking to
commence the Mexican Liquidation Proceeding.  The Mexican
Petitioner sought relief from the Mexican Court alleging loss of
two-thirds of the value of the Company's equity, provides a basis
for the commencement of the Dissolution and Liquidation Procedure
under the Mexican Corporations Law.

On June 30, 2022, a Mexican liquidator was appointed by the Mexican
Court to wind up the affairs of the Chapter 15 Debtor, liquidate
its assets, and maximize value for the benefit of its
stakeholders.

On July 7, 2022, the Chapter 15 Debtor received service of process
of the Mexican Liquidation Proceeding.

The Mexican Court also granted on June 30, 2022 certain provisional
protective measures, including a stay to maintain the status quo in
Mexico that substantially mirrors the stay available upon
recognition as a foreign main proceeding pursuant to section 1520
of the Bankruptcy Code.

The Mexican Liquidator has displaced Credito Real's existing
directors and management and is bound to distribute the Chapter 15
Debtor's assets in accordance with the order of priority proscribed
under Mexican law.  Mexican law affords ample due process to
creditors throughout the Mexican Liquidation Proceeding, including
by allowing creditors to engage with the Mexican Liquidator and, if
necessary, challenge the Mexican Liquidator's actions in the
Mexican Court.

Juan Pablo Estrada Michel, founding partner of Mexico-based law
firm of Lopez Melih y Estrada, said in U.S. court filings that the
Mexican Corporations Law is consistent with the principles of
absolute priority, as it only permits equity holders to receive
distributions after other creditors have received payment in full.
The Dissolution and Liquidation Procedure involves all of the
entity's assets, rights, obligations, and liabilities, with respect
to all entity's creditors, customers, and clients regardless of
whether the parties are non-Mexican.  The Dissolution and
Liquidation Procedure also treats foreign creditors and Mexican
creditors alike.

                       Assets in the U.S.

Credito Real's U.S. assets include the equity interests in its
wholly- owned Delaware-incorporated subsidiary, Credito Real USA,
Inc. ("Credito USA").  The estimated value of the equity of Credito
USA is estimated to be approximately US$85 million. Credito USA and
its subsidiaries comprise approximately 8% of the Company's total
loan portfolio.  In addition, the Company has business operations
in the United States, which are performed by three U.S.-based
subsidiaries.

The Chapter 15 Debtor also has one bank account at Citibank that
has held an average balance of US$3.95 million for the past six
months in New York, and currently holds a balance of approximately
US$1.3 million.

                    About Credito Real SAB

Credito Real SAB de CV SOFOM ENR is a Mexico-based company that
provides consumer financing.  Credito is Mexico's biggest payroll
lender and second largest non-bank lender after Real Unifin.

Credito Real provides loans, either by providing direct financing
to consumers or by establishing financing programs with consumer
financing dealers that sell to Credito Real the collection rights
from consumer financing products.  It also provides financing
directly to individuals that are employed by corporations with
payroll deduction agreements with consumer financing dealers
authorized by Credito Real.  Credito Real operates through a number
of subsidiaries, including AFS Acceptance LLC.

Three alleged creditors signed a petition to send Credito Real to
Chapter 11 bankruptcy on June 22, 2022 (Bankr. S.D.N.Y. Case No.
22-10842).  Institutional Multiple Investment Fund LLC, of Boston,
Massachusetts; Banco Monex, S.A., of Mexico, and Solitaire Fund, of
Liechtenstein, who claim to own an aggregate $8 million of
unsecured bond debt, signed the involuntary Chapter 11 petition.
David H. Botter, Esq., at Akin Gump Strauss Hauer & Feld LLP is
advising the three bondholders.

On June 28, 2022, Angel Francisco Romanos Berrondo, one of the
Debtor's shareholders and the former CEO of Credito Real, filed a
petition, in his capacity as a shareholder, with the Mexican Court
seeking to commence the Mexican Liquidation Proceeding.

On June 30, 2022, the Mexican Court entered an order commencing
the dissolution and liquidation proceedings for the Company and
appointing Mr. Fernando Alonso-de-Florida Rivero as the Mexican
Liquidator.

The liquidator for Credito Real filed a Chapter 15 bankruptcy
petition (Bankr. D. Del. Case No. 22-10630) on July 14, 2022, to
seek U.S. recognition of the Mexican proceedings.  The petition
was signed by Robert Wagstaff, the foreign representative of the
liquidator.  Richards, Layton & Finger, P.A., led by John Henry
Knight, is counsel in the U.S. case.




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P A R A G U A Y
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PARAGUAY: Moody's Affirms Ba1 Issuer & Sr. Unsecured Bond Ratings
-----------------------------------------------------------------
Moody's Investors Service has affirmed the Government of Paraguay's
long-term Ba1 issuer ratings and senior unsecured bond ratings and
changed the outlook to positive from stable.

The key drivers for the positive outlook are:

1. A track-record of solid growth and prudent fiscal policy are
supporting Paraguay's positive credit momentum; fiscal and debt
metrics compare favorably with those of Baa-rated sovereigns

2. Structural and fiscal reforms will support institutional
strength and governance

Over the past decade, successive governments have maintained strong
commitment to fiscal discipline, despite several economic shocks,
leading to a solid fiscal position and strong average GDP growth.
Moody's expects Paraguay to maintain its prudent fiscal policy
stance, ensuring the debt burden remains moderate, with structural
reforms supporting medium-term fiscal prospects and reinforcing
Paraguay's institutional frameworks. Approval and implementation of
fiscal and structural reforms will improve the sovereign's credit
profile, including reforms related to the public procurement
system, civil service reform and strengthening Paraguay's
anti-money laundering framework, as well as reforms to the public
pension fund. These reforms would enhance the efficiency of public
spending and create fiscal space for expenditures related to
infrastructure and building human capital.  

Paraguay's country ceilings remain unchanged. The local-currency
country ceiling is positioned three notches above the sovereign
rating at Baa1, reflecting the economy's economic fundamentals,
limited government intervention in the economy and moderately
strong institutional framework. The foreign-currency country
ceiling is Baa2, supported by a strong external position, floating
exchange rate and an open capital account, which all reduce
convertibility risks.

RATINGS RATIONALE

A TRACK-RECORD OF SOLID GROWTH AND PRUDENT FISCAL POLICY SUPPORT
PARAGUAY'S POSITIVE CREDIT MOMENTUM; FISCAL AND DEBT METRICS
COMPARE FAVORABLY WITH THOSE OF Baa-RATED SOVEREIGNS

Paraguay's economic performance has been robust for more than a
decade. GDP grew in real terms at an average annual rate of 4.1% in
2010-19, exceeding the corresponding median for both Ba and
Baa-rated sovereigns. Ongoing public infrastructure investment will
support growth in the coming years and large FDI inflows will
contribute to diversify the economy.

After an economic contraction of 1% in 2022, Moody's expects strong
real GDP growth of 5% in 2023 on the back of a rebound in the
agricultural sector. Over the medium term, investment in
infrastructure and renewable energy, as well as strong FDI
investment will sustain GDP growth at around 4% annually. Moody's
expects investment in a pulp mill project to materially increase
FDI inflows over the next 2-3 years and projects they will rise to
4% of GDP from 1.2% in 2022.

Paraguay adhered to its fiscal rule, which allowed fiscal deficits
of up to 1.5% of GDP between 2010 and 2019. After the deficit
reached 6.2% of GDP in 2020 due to the pandemic, the authorities
reiterated their commitment to returning to the 1.5% of GDP deficit
target by 2024. In 2021, the government deficit was cut nearly in
half to 3.8% of GDP and the government took steps to ensure
convergence to the target by 2024. Moody's expects this fiscal path
will allow the sovereign to rebuild fiscal space lost during the
pandemic shock. Under the terms defined by the fiscal rule (i.e.,
1.5% of GDP deficit target), Paraguay's debt ratio will stabilize
at 38% of GDP in 2023 and gradually begin to decline thereafter.

Paraguay's fiscal and debt metrics compare favorably with Baa-rated
peers. Moody's expects debt-to-GDP to remain below the median for
both Ba and Baa-rated sovereigns. Even though debt affordability as
measured by the interest-to-revenue ratio has increased moderately
over time, Moody's projects it will remain below the Ba median and
in line with the Baa median.

STRUCTURAL AND FISCAL REFORMS WILL SUPPORT INSTITUTIONAL STRENGTH
AND GOVERNANCE

The government has presented several laws to congress to address
the country's institutional shortcomings. The proposals include
structural reforms to the civil service, social security system,
public procurement system, as well as an enhanced fiscal
responsibility law. Congress has approved reforms to Paraguay's
Development Bank (Agencia Financiera de Desarrollo) that will allow
the entity to better support PPP infrastructure projects.

The proposed civil service reform aims to regulate and control
spending on public sector wages and to improve the overall
efficiency of the public sector. On the pension front, the reform
will create a supervisory body to regulate eight existing pension
funds for public sector workers as well as the private sector
pension scheme (Instituto Provision Social IPS).

Reforms to the pension system would help reduce informality and
improve the social safety net. Increasing formalization of the
labor force would help expand the tax base.

The new public procurement law would help reduce costs of
government purchase of goods and services while simultaneously
increasing the efficiency and transparency of the process.

Changes to the fiscal responsibility law will outline criteria to
ensure deficit converges to the target in the event of large
deviations driven by economic contractions or external shocks, put
a cap on government debt as a percentage of GDP, and limit the
growth in current expenditure in real terms to create the fiscal
space for infrastructure investment and social spending on health
and education spending. Moody's expects that, if approved, these
changes will lay the foundations required to ensure the 1.5%
deficit ceiling is met and will allow for convergence with the
ceiling over a 2-3 year transition period in the event of severe
shocks, enhancing the credibility of the fiscal framework.

ESG considerations

Paraguay's ESG Credit Impact Score is moderately negative (CIS-3),
reflecting a relatively weak governance profile, despite broadly
effective macroeconomic and fiscal policies, moderately negative
social risks due to inadequate access to basic services, and
moderately negative exposure to environmental risks.

Paraguay's exposure to environmental risks is moderately negative
(E-3 issuer profile score), reflecting the risk of droughts and
flooding to agricultural and hydroelectric generation, balanced
against Paraguay's position as a producer and exporter of clean
energy and its limited reliance on hydrocarbons.

Paraguay's exposure to social risks is moderately negative (S-3
issuer profile score), balancing positive demographic trends with
relatively weak educational outcomes that limit Paraguay's
competitiveness.

The influence of governance on Paraguay's credit profile is
moderately negative (G-3 issuer profile score), balancing the
impact of relatively weak, but improving, governance indicators
related to corruption and rule of law against a track record of
sound macroeconomic policies and strong fiscal metrics.

GDP per capita (PPP basis, US$): 13,722 (2021) (also known as Per
Capita Income)

Real GDP growth (% change): 4.2% (2021) (also known as GDP Growth)

Inflation Rate (CPI, % change Dec/Dec): 6.8% (2021)

Gen. Gov. Financial Balance/GDP: -3.8% (2021) (also known as Fiscal
Balance)

Current Account Balance/GDP: 0.8% (2021) (also known as External
Balance)

External debt/GDP: 57.2% (2021)

Economic resiliency: ba1

Default history: No default events (on bonds or loans) have been
recorded since 1983.

On July 19, 2022, a rating committee was called to discuss the
rating of the Paraguay, Government of. The main points raised
during the discussion were: The issuer's economic fundamentals,
including its economic strength, have not materially changed. The
issuer's institutions and governance strength, have materially
increased. The issuer's fiscal or financial strength, including its
debt profile, has not materially changed. An analysis of this
issuer, relative to its peers, indicates that a repositioning of
its rating would be appropriate.

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

The rating would be upgraded if structural reforms related to the
civil service, public pension fund and public procurement were
approved and implemented. These reforms would enhance the country's
institutional and governance framework, improving Paraguay's
overall credit profile. Changes to the fiscal rule, which would
increase policy predictability in response to shocks, and the
materialization of robust investment and FDI inflows would also
contribute to a higher rating.

The outlook could change back to stable if implementation of the
structural reform agenda does not advance at a steady pace or if
economic growth prospects come below Moody's expectations, leading
to an upward trend in debt metrics.

The principal methodology used in these ratings was Sovereign
Ratings Methodology published in November 2019.



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P E R U
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PERU LNG: Moody's Upgrades CFR to B2, Alters Outlook to Stable
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Moody's Investors Service upgraded PERU LNG S.R.L.'s (PLNG)
corporate family rating and senior unsecured rating on the
company's existing notes to B2 from B3. The rating action was based
on the company's improved operating results, which have strengthen
its liquidity position. The rating outlook is now stable.

Upgrades:

Issuer: PERU LNG S.R.L.

Corporate Family Rating, Upgraded to B2 from B3

Senior Unsecured Regular Bond/Debenture, Upgraded to B2 from B3

Outlook Actions:

Issuer: PERU LNG S.R.L.

Outlook, Changed To Stable From Negative

RATINGS RATIONALE

The action on PLNG's ratings was based on its improved liquidity
position, which resulted from its ability to operate at full
capacity since mid-September 2021, when its plant went back on
after over 70 days of stoppages in the year. Moody's estimates
that, in the last three quarters through June 2022, solid
commodities prices and volumes have helped boost the PLNG's cash
generation, which should continue elevated as compared to 2019-21
if prices and volumes remain relatively stable. Moody's believes
that there is a low probability that PLNG's sole plant goes through
further major unexpected mechanical problems, as occurred in 2021,
considering that relevant parts were replaced last year and the
company is about to complete a programed major maintenance with no
surprises so far. It is also positive that PLNG's shore-tension
vertical units project, aimed at improving the ability to deliver
cargoes during adverse weather conditions, was successfully
completed last May. Moody's believes that, from now on, PLNG will
be able to balance its production more equitably across the year.

For 2022 PLNG's management expects production to reach over 215
trillion British thermal units (TBtus), about 60% higher than the
133 TBtus produced in 2021. Therefore, Moody's expects PLNG's
EBITDA to reach over $300 million in 2022, as compared to $145
million in 2021, if Henry Hub averages $5.0 per million BTU in the
year, as per the rating agency's estimates. Annual interest
payments amount to $51 million and capital spending in 2022 will
hover around $30 million, including about $8 million for the
programed major maintenance and $10 million for the completion of
the shore-tension project.

PLNG's B2 ratings are based on its exposure to natural gas marker
prices volatility; high operating risk; fluctuating leverage given
volatile cash flow; small, single operational asset base; and
limited access to external funding. In 2019-21 high operating risk
was evidenced by recurring plant stoppages either due to external
events or unplanned shutdowns. These risks are somewhat
counterbalanced by PLNG's low supply risk, high capacity
utilization rates, limited competition risk, minimum
foreign-exchange risk, implicit shareholders support and its high
relevance to Peru's trade balance and energy industry.

PLNG has adequate liquidity. The company's cash on hand amounted to
$405 million in March 2022 and Moody's expects it to generate more
than enough operating cash flow through December 2023 to cover
expenses and capital spending. The company's $40 million committed
revolving credit facility, currently fully available, matures in
March 2023 but Moody's expects PLNG to renew it for another three
years upon maturity. Most of PLNG's accounts payable refer to the
$110 million credit received from the off-taker SITME. PLNG's debt
maturity is still comfortable because the amortization of the
existing notes begins in September 2024 (about $78 million in
amortization payments, twice a year). Management expects to receive
certain reimbursement from property damage insurance, in connection
with the unplanned plant shutdowns in 2021, but the amount and
timing are still unclear. PLNG's shareholders, mostly financially
strong and capable of providing support, helped the company with
liquidity support in 2021. Moody's expects PLNG to pay dividends in
2022. Although the company must keep a minimum of $50 million in
cash at all times, Moody's notes that PLNG has usually maintained
cash amounts at around $100 million, which, together with its
available revolver, helps protect the company against volatility in
prices or volumes.

The stable rating outlook reflects Moody's view that PLNG's credit
profile will remain relatively unchanged in the next 12-18 months
as higher operating cash is directed to fund basic obligations,
such as interest payment, capital spending, and debt amortization,
as well as cash distributions to shareholders.

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

PLNG's B2 ratings could be upgraded if it manages to balance its
high operating risk and vulnerability to volatile commodities
prices with lower leverage, as per EBITDA to gross debt below 3
times and if maintains interest coverage above 4.5 times, as per
EBITDA to interest expense, on a sustainable basis. In addition, in
case of dividend payment, funds from operations minus maintenance
capex)/dividends should be above 3 times, also on a sustainable
basis. For an upgrade to occur, the company would have to
demonstrate ability to maintain operating activity stable, with
minimum unexpected plant stoppages.

In turn, PLNG's B2 ratings could be downgraded if plant stoppages
are significant to the point of hurting its liquidity position, if
interest coverage falls to below 2.5 times, or if leverage is above
5 times with limited prospects of a quick turnaround.

The principal methodology used in these ratings was Midstream
Energy published in February 2022.

PLNG, based in Lima, Peru, has a 4.45 million tons per annum
(mmtpa) natural gas capacity liquefaction plant located in Pampa
Melchorita (Canete), a marine terminal, and a 408-kilometer
pipeline that transports natural gas from the Camisea fields
(Cusco, Peru). The company is committed to selling 225 TBtus of LNG
per year to a subsidiary of Shell (SITME), which in turn has
committed to take-or-pay this annual volume (over 95% of PLNG's
total capacity) until 2028. In the last twelve months ended in
March 2022 PLNG posted revenues of $2.5 billion and EBITDA of $320
million.



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LATAM: Tourism Sector on the Mend After Pandemic
------------------------------------------------
EFE News reports that after two years of uncertainty due to the
pandemic, Latin America's tourism industry is showing clear signs
of recovery from the severe blow delivered by Covid-19

"Passenger volume on commercial airlines was up more than 180
percent in the first five months of 2022 from the same period
last," according to the International Air Transport Association
(IATA), reports EFE.

And a report released in May by the Mastercard Economics Institute
showed that bookings by people in the United States for travel to
the Dominican Republic were 84 percent higher than at the same
point in pre-pandemic 2019, the report notes.

Reservations for trips to Mexico and Jamaica increased by 73
percent and 65 percent, respectively, compared with 2019, the
report adds.



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