---

       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

          Wednesday, July 27, 2022, Vol. 23, No. 143

                           Headlines



B A H A M A S

BAHAMAS: To Assess Impact of Industrial Action by Airport Staff


C A Y M A N   I S L A N D S

CASTLELAKE AVIATION: Moody's Affirms 'Ba3' CFR, Outlook Now Stable


C H I L E

VTR FINANCE: Moody's Confirms Ba3 CFR & Alters Outlook to Negative


C O S T A   R I C A

COSTA RICA: IDB OKs $300M Loan to Underpin Decarbonization Plan


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Among Leading Bond Issuers With US$3.6 Bil
DOMINICAN REPUBLIC: Explains Tax Pavement Platform


E C U A D O R

ECUADOR: Unemployment Reached 4% in June, With Slight Increase


J A M A I C A

DIGICEL GROUP: Launches New Roaming Packages


P A R A G U A Y

AGENCIA FINANCIERA: Moody's Affirms 'Ba1' Long Term Issuer Rating
RUTAS 2 AND 7 FINANCE: Moody's Affirms Ba1 Rating on Sr. Sec. Notes


P E R U

[*] PERU: Nearly 40% of Vulnerable Microentrepreneurs Lack Housing


X X X X X X X X

[*] Trade Restrictions Exacerbate Food Crisis in a Decade

                           - - - - -


=============
B A H A M A S
=============

BAHAMAS: To Assess Impact of Industrial Action by Airport Staff
---------------------------------------------------------------
Our News reports that operations at Lynden Pindling International
airport were back to normal two days after scores of airport
workers did not show up for work.
  
The report says about 90 percent of approximately 200 BPSU members
at LPIA and more than 100 workers at 17 Family Island airports did
not report to work last July 18.

The report says a Supreme Court judge declaring the action illegal,
ordered employees back to their posts.

Our News notes that Tourism and Aviation Minister Chester Cooper
said he hopes the issues are settled by the end of August. Mr.
Cooper said that he is grateful the workers are back on the job.

In a separate report, RJR News says that the Bahamas government
will assess what impact the industrial action taken by workers at
the country's airports had on its finances.

Mr. Cooper said the government's priority was to ensure the impact
on all tourists was minimized, according to RJR News.

Mr. Cooper, who spoke to the media outside of Cabinet, did not
explain whether the government financially intervened to take care
of passengers left stranded in The Bahamas because of missed
flights, notes the report.

Mr. Cooper said the government and LPIA put a contingency plan in
place that worked to supplement the withheld labor of BPSU members,
the report adds.



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

CASTLELAKE AVIATION: Moody's Affirms 'Ba3' CFR, Outlook Now Stable
-------------------------------------------------------------------
Moody's Investors Service affirmed Castlelake Aviation Finance
DAC's (Castlelake Aviation) Ba3 corporate family rating and B2
backed senior unsecured rating. Moody's also affirmed the
Ba3 backed term loan rating of Castlelake Aviation One DAC, a
wholly-owned subsidiary of Castlelake Aviation. Moody's changed the
outlooks on Castlelake Aviation and Castlelake Aviation One DAC to
stable from positive.

Affirmations:

Issuer: Castlelake Aviation Finance DAC

Corporate Family Rating, Affirmed Ba3

Gtd Senior Unsecured Regular Bond/Debenture, Affirmed B2

Issuer: Castlelake Aviation One DAC

Gtd Senior Secured Bank Credit Facility, Affirmed Ba3

Outlook Actions:

Issuer: Castlelake Aviation Finance DAC

Outlook, Changed To Stable From Positive

Issuer: Castlelake Aviation One DAC

Outlook, Changed To Stable From Positive

RATINGS RATIONALE

Castlelake Aviation and Castlelake Aviation One DAC's outlooks were
changed to stable from positive based on Moody's expectation that
they will continue to rely on secured forms of financing to
purchase assets in the next twelve months. Castlelake Aviation's
secured debt/assets ratio remains high at approximately 53% at
March 31, 2022 and will continue to do so as the company pursues
cost-efficient funding. The company has availability ($251 million
outstanding at March 31, 2022) on its $750 million secured
revolving facilities and can rely on other forms of secured debt to
finance the purchase of aircraft.

The affirmation of Castlelake Aviation's ratings considered Moody's
expectation of its improving profitability, good equity capital and
stable fleet utilization, which are benefitting from stronger
domestic travel. Castlelake Aviation's fleet is primarily comprised
of narrow-body aircraft (approximately 66% at March 31, 2022) which
is typically used in domestic travel. These credit strengths are
tempered by high lessee concentrations (top three account for 66%
of book value of aircraft assets at March 31, 2022) and continued
reliance on secured debt for funding.  AirAsia Berhad, a Malaysian
airline, comprises approximately 27% of Castlelake Aviation's book
value of aircraft assets, leaving Castlelake Aviation vulnerable to
some earnings volatility as domestic travel is recovering slower in
South East Asia than other regions. Moody's expects, however, that
Castlelake Aviation will benefit from its management and servicing
relationship with Castlelake Aviation Holdings (Ireland) Limited, a
wholly owned subsidiary of Castlelake, L.P. (together, Castlelake),
which has a long history of placing aircraft and managing
relationships across the world. Moody's also anticipates that
Castlelake Aviation will maintain a good liquidity position
supported primarily by free cash flow generation and a healthy
level of retained cash.

The Ba3 rating for the senior secured term loan due 2026 at
Castlelake Aviation One DAC reflects the benefit of the loan's
security interest in the majority of the company's aircraft. The
group also has a $750 million secured revolving facility due 2024
and the Air Asia term loan facility due 2024. The borrowers for
these facilities are Castlelake Aviation Finance DAC and AS Air
Lease Holdings 5T DAC, respectively. Castlelake Aviation's senior
unsecured notes' B2 rating reflects their structural
subordination.

The stable outlooks reflect Moody's expectation that Castlelake
Aviation will benefit from a generally favorable domestic air
travel environment and will continue its disciplined growth
trajectory. The stable outlooks also reflect Moodys' expectation
that Castlelake Aviation will continue to rely on secured debt for
funding, consistent with historical levels.

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

The ratings could be upgraded if Castlelake Aviation manages
secured debt financing such that its ratio of secured debt/tangible
managed assets does not increase above 60%, maintains consistent
profitability, with net income/total assets above 1.0% (not
including gain on sale of aircraft), effectively manages its
customer concentrations and its debt/equity leverage remains
favorable, at below 2.5x.

The ratings could be downgraded if Castlelake Aviation suffers from
a deterioration in earnings such that profitability (as measured by
net income/total assets) is sustained below 1%, if it loses a key
customer relationship, if its overall liquidity declines or if it
disposes of aircraft assets on unfavorable terms.

The principal methodology used in these ratings was Finance
Companies Methodology published in November 2019.

Incorporated in Cayman Islands, Castlelake Aviation is a newly
formed entity that specializes in leasing of commercial aircraft
globally. Castlelake Aviation is owned by funds and accounts
managed by Castlelake, an aviation platform with a fleet of 300
aircraft with assets of $21 billion at June 30, 2022. As of March
31, 2022, the company had 80 aircraft on lease and 1 aircraft
off-lease and had total assets of $3.1 billion.



=========
C H I L E
=========

VTR FINANCE: Moody's Confirms Ba3 CFR & Alters Outlook to Negative
------------------------------------------------------------------
Moody's Investors Service has confirmed VTR Finance N.V. ("VTR")
Ba3 corporate family rating, the B1 rating of VTR's 6.375% $550
million senior unsecured notes and the Ba3 rating of VTR
Comunicaciones SpA's 4.375% $410 million and 5.125% $480 million
senior secured notes.

The outlook was changed to negative. This rating action concludes
the review for upgrade initiated on October 1, 2021.

This rating action reflects Moody's view that, while the resulting
entity will be better positioned to operate, improve profitability
and post stronger credit metrics; the competitive environment in
Chile, coupled with persistent high inflation expected at 9% in
2022, will challenge the reversal of the weaker than expected trend
in VTR's operating metrics and market share, making it difficult to
meet Moody's previous expectations, in line with the JV's net
leverage target between 2.8x and 3.5x and that negatively compares
to Moody's current estimates that net leverage should remain above
4.0x.

Confirmations:

Issuer: VTR Comunicaciones SpA

Senior Secured Regular Bond/Debenture, Confirmed at Ba3

Issuer: VTR Finance N.V.

Corporate Family Rating, Confirmed at Ba3

Senior Unsecured Regular Bond/Debenture, Confirmed at B1

Outlook Actions:

Issuer: VTR Comunicaciones SpA

Outlook, Changed To Negative From Rating Under Review

Issuer: VTR Finance N.V.

Outlook, Changed To Negative From Rating Under Review

RATINGS RATIONALE

The confirmation of VTR's ratings incorporates the company's
adequate liquidity profile with no major maturities in the short
term; further supported by the revolving credit facilities, that
the new entity will retain totaling about $250 million and maturing
in June 2026. Moreover, the rating action incorporates parental
support. Although Liberty Latin America (LLA) has no contractual
obligation to provide financial support to its subsidiaries,
Moody's expects LLA to provide some support, if necessary.

The review for upgrade was initiated by the announcement on
September 29, 2021 that  America Movil, S.A.B. de C.V. (America
Movil, Baa1 stable) and LLA reached an agreement to combine their
operations in Chile, Claro Chile and VTR respectively, in a JV that
will be 50/50 owned by LLA and America Movil. In the analysis of
VTR's credit profile, Moody's incorporates the successful execution
of the JV.

The JV is subject to regulatory approvals and is expected to close
in the second half of 2022.

The negative outlook reflects Moody's view that following the
execution of the JV, VTR's operating metrics will remain under
pressure and that it will take a few quarters to integrate
operations, stabilize margins, subscribers trends and market share,
given the Chilean challenging competitive environment.

Governance is a key consideration for this rating action.
Considerations include that following the execution of the JV, VTR
will maintain the same conservative approach towards liquidity, and
considers the benefits from being part of a large group, LLA.

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

Moody's could upgrade VTR's ratings if the company is able to grow
and maintain market share. Following the execution of the JV, if
approved as proposed, positive pressure could also arise once
execution details become available; including higher than expected
synergies and details on the shareholders agreement between LLA and
America Movil; namely capital structure, financial policies and
liquidity management or other considerations that would improve
bondholders protection.

Downward ratings pressure could occur should VTR's declining market
share and subscriber trend continue. The ratings could also be
downgraded if Moody's expectation's for the JV don't materialize
resulting in weaker than expected financial metrics. Although not
considered in Moody's base case, the withdrawal of the proposed JV
could lead to  further negative pressure for VTR's standalone
business profile.

The principal methodology used in these ratings was Pay TV
published in October 2021.

Following the execution of the JV, the new entity will be able to
offer mobile, broadband, pay TV and fixed telephony, which would
allow to offer bundles and benefit from cross-selling
opportunities. The parties expect to extract synergies of over $180
million, 80% of them in the first three years after closing. VTR is
focused on the residential pay TV and fixed broadband markets,
while Claro Chile is focused on the enterprise segment and has a
20% market share in the mobile business. The combination would
allow VTR to move away from its current mobile virtual network
operator that it currently offers through third-party
infrastructure.

VTR provides broadband and wireless communication services in
Chile. VTR's network passes 4.24 million homes and serves about 2.8
million fixed revenue generating units as of March 2022. The
company also serves around 245,600 mobile subscribers as a mobile
virtual network operator. VTR reported revenue of around $748
million for the 12 months that ended March 2022.



===================
C O S T A   R I C A
===================

COSTA RICA: IDB OKs $300M Loan to Underpin Decarbonization Plan
---------------------------------------------------------------
Costa Rica continues to forge ahead in its transition to a green
economy with net-zero emissions by 2050. The Inter-American
Development Bank (IDB) approved a $300 million loan to continue to
back Costa Rica's National Decarbonization Plan, which aims for
net-zero emissions by 2050. The IDB loan is the second in a series
of two programmatic policy-based lending operations.

The latest loan will enable Costa Rica to deepen the reforms of the
first $230 million operation approved in 2020. The goal of these
reforms is to bolster climate action management and monitoring,
preserve ecosystems that effectively sequester greenhouse gases,
incentivize the use of electrical energy and active mobility, and
boost inclusion and gender equality in the shift to a green
economy.

Climate action monitoring is considered a necessary step on Costa
Rica's path to achieving a net-zero economy. Another key component
of the decarbonization plan is agriculture, which accounts for
42.3% of the country's exports and 12.8% of its jobs. According to
experts, this industry can help capture more emissions by replacing
current farming practices with climate-smart agriculture.

For electricity use and active mobility, Costa Rica used the first
loan to establish non-tax incentives for buying electric vehicles.
It also passed regulations to build a network of electric vehicle
charging stations. With the second lending operation, the country
plans to set rates that make it possible to electrify
transportation and use electrical energy for industrial,
commercial, and residential purposes.

All of these steps will have a positive impact on Costa Rican
society by slashing greenhouse gas emissions to mitigate climate
change and reduce air pollution from internal combustion engine
vehicles. The combined benefits of decarbonization for the country
from 2020 to 2050 are valued at an estimated $41 billion.

The most recent loan is composed of $250 million in ordinary
capital from the IDB, plus $50 million from the Government of
Korea. The funds will be administrated by the Bank via the Korean
Infrastructure Development Co-financing Facility. The French
Development Agency is also providing EUR100 million in parallel
funding. Altogether, the country will receive over $400 million for
its decarbonization goals.

The $300 million IDB loan has a 20-year repayment term and a
5.5-year grace period.




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

DOMINICAN REPUBLIC: Among Leading Bond Issuers With US$3.6 Bil
--------------------------------------------------------------
Dominican Today reports that the Dominican Republic, with US$3.6
billion, was one of the three main international issuers of
sovereign bonds in Latin America and the Caribbean in the first
quarter of 2022, the other two being Mexico and Chile. Last year,
it was the fifth country out of 10.

According to the report of the Economic Commission for Latin
America and the Caribbean (ECLAC) about capital flows to Latin
America and the Caribbean, in 2021 and the first four months of
2022, the country was on a list of six that from January to April
of this year accessed the international bond market, according to
Dominican Today.  The others were Panama, Bolivia and Paraguay, the
report notes.

The number of offers from the Dominican Republic in that period was
two: each one for 1.8 billion dollars, one maturing in 2029, and a
5.5% coupon, and the other in 2033, and a coupon of 6%, 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: Explains Tax Pavement Platform
--------------------------------------------------
Dominican Today reports that the General Directorate of Internal
Taxes (DGII) clarified that it is the foreign providers of digital
services who will be the taxpayers of the tax on the transfer of
industrialized goods and services (Itbis) that the Government plans
to apply through a simplified process of registration and payment,
without this tax being detrimental to consumers of online
platforms.

The draft of the DGII regulation, which was held for public hearing
between February and March of this year, indicates that the
procedure for the application of Itbis to digital services received
in the Dominican Republic and that are provided by providers abroad
contemplates that the Itbis taxable base includes only the total
amount of benefits received, whatever their nature, for services
used and consumed in the country, according to Dominican Today.  In
the provision of digital services between entities of the same
group, the tax base will be its normal market value, the report
notes.

Likewise, it highlights that foreign suppliers will not be entitled
to gross tax deductions established in article 346 of the Tax Code,
unless they formalize a digital permanent establishment or with a
fixed place of business in the country, 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.




=============
E C U A D O R
=============

ECUADOR: Unemployment Reached 4% in June, With Slight Increase
--------------------------------------------------------------
Rio Times Online reports that unemployment in Ecuador stood at 4%
in June, representing a slight increase of 0.3% compared to May
(3.7%) but a significant reduction compared to last year when it
was 5.1%.  

It means that at the moment in the country, there are 345,620
unemployed people, according to Rio Times Online.

Likewise, there was significant year-on-year growth in adequate
employment, from 31.3% in June 2021 to 34% in June of this year,
the report notes.





=============
J A M A I C A
=============

DIGICEL GROUP: Launches New Roaming Packages
--------------------------------------------
Trinidad Express reports that as travel continues to pick up
post-pandemic, Digicel has implemented standardized roaming
packages for inbound and outbound roaming customers across its
markets.

In a news release, Digicel said this new roaming line-up comes just
a few months after the announcement of Digicel signing a joint
declaration with Caricom and Flow to facilitate the Caricom Single
Information and Communications Technology (ICT) Space and Single
Market and Economy through the reduction of intra-regional roaming
charges, according to Trinidad Express.

In addition to introducing its new roaming packages, Digicel said
it remains committed to continuing to work to make roaming charges
not only more affordable, but also more predictable and
transparent-while ultimately delivering a much enhanced customer
experience, the report notes.

Abraham Smith, CEO of Digicel (Trinidad and Tobago), said: "We've
spent a lot of time doing the research and listening to our
customers to understand their wants and needs, and now we're proud
to launch our new roaming bundles and solutions to make things
easier and more affordable for Digicel customers. We have also
substantially increased the data allocation for roaming, in line
with our customers' needs, and simply put, this new portfolio of
options is the best on offer in all our markets," the report
relays.

Smith noted that, in standardising and simplifying the roaming
options, the digital operator has made things easier to understand
for customers, streamlined the process to make purchasing quick and
easy with transparent billing, and provided best-in-class customer
care to ensure accessibility, availability and effectiveness, the
report notes.

"Customers travelling to and from Digicel markets within the
Caribbean will be serviced by the Roam Easy Caribbean Bundles and
for those travelling to and from international destinations, not
included in the Caribbean Bundles, the Roam Easy International
Bundles will apply. Both bundles come with three-day, seven-day and
14-day plans," the CEO added, the report says.

Digicel operates in 32 markets in the Caribbean, Central America
and the Pacific, with investments of over US$7 billion, the report
adds.

                   About Digicel Group

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

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

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

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




===============
P A R A G U A Y
===============

AGENCIA FINANCIERA: Moody's Affirms 'Ba1' Long Term Issuer Rating
-----------------------------------------------------------------
Moody's Investors Service has affirmed all ratings and assessments
assigned to Agencia Financiera de Desarrollo (AFD), including its
local currency Ba1 issuer rating, as well as the local and foreign
currency counterparty risk ratings of Ba1 and Not Prime. Moody's
also affirmed the ba2 baseline credit assessment (BCA) and adjusted
BCA and long and short-term counterparty risk assessments at Ba1
(cr) and Not-Prime (cr), respectively. The outlook on AFD's ratings
was changed to positive, from stable.

These actions follow the affirmation of the Government of
Paraguay's Ba1 sovereign debt rating and the outlook changed to
positive from stable, on July 22, 2022.

The following ratings and assessments assigned to Agencia
Financiera de Desarrollo were affirmed:

Long-term local currency issuer rating of Ba1, outlook changed to
positive from stable,

Short-term local currency issuer rating of Not Prime

Long and short-term local and foreign currency counterparty risk
ratings of Ba1 and Not-Prime

Long and short-term counterparty risk assessment of Ba1(cr) and
Not-Prime(cr)

Adjusted baseline credit assessment of ba2

Baseline credit assessment of ba2

Outlook, Changed To Positive From Stable

RATINGS RATIONALE

In affirming AFD's Ba1 issuer rating, Moody's acknowledges the
entity's role as a development bank fully owned by the Government
of Paraguay (Ba1 positive), which supports the long-track record of
strong asset quality metrics and high capital position. Acting as
the sole second floor development financial institution in the
country, AFD is mostly funded by institutional resources and
multilateral agencies, and profitability is not its main strategic
purpose, which results in relatively low levels of earnings
compared to its banking peers in Paraguay.

Primarily focused on providing lines to various financial
institutions that onlend to local borrowers in various sectors of
the economy in support of the Paraguayan Government's economic
development goals, AFD has played a key role during the pandemic
through three products launched in 2020: 1) Financiamiento para la
Reconversion de Operaciones Crediticias,  aiming to convert
short-term into long-term debt, allowing for grace periods; 2)
Proreactivación, consisting of new loans; and 3) Fideicomiso
Fisalco, which provides working capital financing to SMEs and
independent workers. As of March 2022, 79% of AFD's PGY6.6 trillion
(USD948 million) loan book was directed to banks, 18% to
cooperatives, and the remainder mainly to finance companies
(empresas financieras). AFD maintains conservative underwriting
standards, which supported its superior portfolio quality in 2020
and 2021. Because AFD does not assume any credit risk related to
the ultimate borrowers of its funds, the level of provisions for
loan losses is consistently low compared to that of commercial
banks in Paraguay. In addition, by law, AFD's loans to financial
institutions also have privileged status and in the event of a
bankruptcy, AFD would have a priority of claim senior to that
entity's depositors and secured creditors.

The Ba1 issuer rating is also supported by AFD's historically
adequate capital position. As of March 2021, tangible common equity
(TCE), as measured by Moody's, represented 23% of total assets. In
spite of accelerated credit growth over the last years, AFD has
maintained a comfortable capitalization supported by its earnings.

The Ba1 rating also reflects the limitations related to its mainly
market funding structure, inherent to a development agency. As a
non-deposit taking institution, AFD's funding mix is primarily
composed of  local currency bonds and US dollar-denominated
cross-border loans. Despite its heavy reliance on wholesale
resources, refinancing risk is limited because its financing is
guaranteed by the Paraguayan government (Ba1 positive) and nearly
half of its bonds are financed by the Central Bank of Paraguay's
deposit guarantee fund (Fondo de Garantía de Depositos) and other
state pension funds such as the lnstituto de Previsión Social. The
remaining financing provided by multilateral agencies. AFD's
liquidity is relatively low despite its reliance on market funding,
with liquid assets equal to just 16.1% of its tangible assets as of
March 2022.

The outlook change on AFD's ratings to positive, from stable,
incorporates the government's track-record of solid growth and
prudent fiscal policy, which supports Paraguay's positive credit
momentum and the structural and fiscal reforms that will support
institutional strength and governance. AFD's issuer ratings
incorporate Moody's assessment of the agency as government-backed
based on the government's guarantee of its financial obligations,
its legal status as a development bank wholly-owned by the
government, and its important policy role. The agency's rating is
therefore aligned with that of the government and the positive
outlook on AFD's ratings is in line with the positive outlook on
the Government of Paraguay.

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

Given its government backing, AFD's ratings would face upward
pressure if the Government of Paraguay's rating is upgraded. AFD's
standalone BCA could also be upgraded if it were to improve its
profitability and/or increase its holdings of liquid assets. As the
agency's issuer rating is already aligned with that of the
government, however, this would have no effect on the issuer rating
absent an upgrade of Paraguay's sovereign rating.

Although unlikely at the moment given the positive outlook, a
downgrade in the bond rating of Paraguay would lead to a downgrade
in AFD's issuer ratings. AFD's BCA could also be downgraded should
its asset risk and/or capital deteriorate sharply. Absent a
downgrade of Paraguay's sovereign rating, however, this is unlikely
to affect AFD's issuer rating.

The principal methodology used in these ratings was Banks
Methodology published in July 2021.

RUTAS 2 AND 7 FINANCE: Moody's Affirms Ba1 Rating on Sr. Sec. Notes
-------------------------------------------------------------------
Moody's Investors Service has affirmed the Ba1 ratings assigned to
the senior secured notes issued by Rutas 2 and 7 Finance Limited
and Bioceanico Sovereign Certificate Limited. The outlook for both
changed to positive from stable.

These actions follow the affirmation of the Government of
Paraguay's sovereign debt rating of Ba1, outlook changed to
positive from stable, on July 22, 2022.

ISSUERS AND RATINGS AFFECTED

Affirmations:

Issuer: Bioceanico Sovereign Certificate Limited

Senior Secured notes, Affirmed at Ba1

Issuer: Rutas 2 and 7 Finance Limited

Senior Secured notes, Affirmed at Ba1

Outlook Actions:

Issuer: Bioceanico Sovereign Certificate Limited

Outlook, changed to Positive from Stable

Issuer: Rutas 2 and 7 Finance Limited

Outlook, changed to Positive from Stable

RATINGS RATIONALE

The Ba1 senior secured ratings of Bioceanico Sovereign Certificated
Limited and Rutas 2 and 7 Finance Limited primarily reflects the
Government of Paraguay's Ba1 rating because of close linkages
between the projects and the sovereign government in terms of
credit quality.

As the construction works of the road segments relevant to each of
the notes have been completed and that the related construction
completion payment obligation certificates have been purchased by
the special purpose entities issuing the notes; the risks
associated with a commitment termination event (CTE) and to the
contractors have been dissolved. The remaining risks embedded in
the notes arise from the credit quality of the government of
Paraguay, that is ultimately responsible for making the payments on
the respective payment obligation certificates.

The payment obligation certificates securing the notes issued by
Bioceanico Sovereign Certificate Limited are called Certificados de
Reconomiciento de Obligación de Pago (CROPs). The certificates
were issued under the Paraguayan Law 5102/13 and are explicitly
identified as public debt. A default on these certificates in
excess of $25 million would trigger a cross-default event for the
government of Paraguay.

The payment obligation certificates securing the notes issued by
Rutas 2 and 7 Finance Limited are called Pago Diferido por
Inversión (PDIs), and those are regulated by the Paraguayan
decrees 515/16 and 7374/17. Differently from the CROPs, the PDIs
are recognized under the national investment spending plan, and a
default on these certificates would not trigger a cross-default
event for on the other sovereign public debt. But, in Moody's
opinion, a default on the PDIs would equally damage the Government
of Paraguay's credit reputation increasing the likelihood for
timely payment. Enhancing the liquidity profile of these
securities, the Government of Paraguay funds a PPP trust
(responsible to make the PDI payments) with sufficient funds to
cover 100% of payables PDIs payments one year in advance.

Moody's considers that both Corredor Bioceánico and Rutas 2 and 7
are strategically important for the government of Paraguay. The
Corredor Bioceánico is a new 277 kilometers road that is part of a
larger project integrating Chile, Argentina, Paraguay and Brazil,
ultimately connecting deep water seaports in Chile with the main
ports in Brazil. The Rutas 2 and 7 project duplicated a 172
kilometers major agricultural route that connects Assunción and
Ciudad del Este, the two main cities in Paraguay.

Over the past decade, successive Paraguayan 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.


RATING OUTLOOK

The rating outlooks on both Bioceanico Sovereign Certificated
Limited and Rutas 2 and 7 Finance Limited are positive, in line
with the positive outlook on the Paraguayan government. Moody's
view the creditworthiness of the issuers is linked to the credit
quality of the government because the repayment of the notes relies
on government payments on the construction certificates that the
issuers have purchased during the construction phase of their
respective works.

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

Both ratings of Bioceanico Sovereign Certificated Limited and Rutas
2 and 7 Finance Limited are closely tied to and constrained by
Paraguay's foreign-currency issuer rating. Therefore, the ratings
could be upgraded if Paraguay's foreign-currency issuer rating is
upgraded.

The ratings are closely tied to and constrained by Paraguay's
foreign-currency issuer rating. Therefore, the ratings could be
downgraded if Paraguay's foreign-currency issuer rating is
downgraded.

PROFILE

BIOCEANICO SOVEREIGN CERTIFICATE LIMITED

Bioceanico Sovereign Certificate Limited is an Special Purpose
Vehicle (SPV) domiciled in the Cayman Islands. Bioceanico Sovereign
Certificate Limited will issue Senior Secured Notes to finance its
CROP purchase commitment to a construction consortium formed by
Construtora Queiroz Galvao S.A. (50%) Ocho A S.A. (50%), in
connection with the financing for the design and construction of a
new road between Loma Plata and Carmelo Peralta located in the
Republic of Paraguay. The Project was awarded by the Ministry of
Public Works and Communications and countersigned by the Ministry
of Finance of Paraguay.

RUTAS 2 AND 7 FINANCE LIMITED

Rutas 2 and 7 Finance Limited is a Special Purpose Vehicle (SPV)
domiciled in the Cayman Islands. Rutas 2 and 7 Finance Limited will
issue Senior Secured Notes to finance its PDI purchase commitment
to a PPP Contractor formed by the sponsors, Sacyr Concesiones S.L.
(60%) and Ocho A S.A. (40%), in connection with the financing for
the duplication of routes 2 and 7 in Paraguay, for an extension of
approximately 171.8 kilometers. The road is one of the most
strategic transportation assets in Paraguay connecting the
country's two largest cities, and the project has been framed
within the Public-Private Partnership Law of Paraguay and will be
developed by Rutas del Este S.A. a joint venture formed by the
sponsors. The project will be financed through a combination of
equity contributions from the sponsors, working capital facilities
and by the senior secured notes (144A / Reg S) to be issued by the
issuer, an SPV domiciled in the Cayman Islands.

The principal methodology used in these ratings was Generic Project
Finance Methodology published in January 2022.



=======
P E R U
=======

[*] PERU: Nearly 40% of Vulnerable Microentrepreneurs Lack Housing
------------------------------------------------------------------
Rocco Caldero at Rio Times Online reports that according to the
Multidimensional Poverty Study conducted by Financiera Confianza
among its clients, together with the BBVA Microfinance Foundation
(FMBBVA) and the SOPHIA Oxford Institute of the University of
Oxford, the main deficiencies in the households of vulnerable
Peruvian microentrepreneurs are sanitation (affecting 39% of
households) and housing materials (38%).

At the end of 2021, 72% of the surveyed entrepreneurs were in a
vulnerable condition. It means that their businesses generated per
capita income of up to PEN1,134 (US$290 - three times the poverty
line), so they lived in conditions of monetary poverty, according
to Rio Times Online.




===============
X X X X X X X X
===============

[*] Trade Restrictions Exacerbate Food Crisis in a Decade
---------------------------------------------------------
Dominican Today reports that the worst global food crisis in a
decade was one of the main issues discussed at the twelfth
ministerial meeting of the World Trade Organization (WTO) last
month, according to an article published on the World Bank blog
authored by Mari Elka Pangestu and Axel Van Trotsenburg.

The authors point out that this crisis is exacerbated by the
growing number of countries that ban or restrict exports of wheat
and other commodities in a misguided attempt to curb rising
domestic prices, according to Dominican Today.

They note that the price of wheat, an essential commodity in many
developing countries, has risen 34% since Russia invaded Ukraine in
late February, and prices of other foodstuffs have also increased,
the report notes.

They note that in response, as of early June, 34 countries had
imposed restrictions on food and fertilizer exports, close to the
36 countries that used such controls during the 2008-2012 food
crisis, the report relays.

They indicate that these measures are counterproductive because
they reduce global supplies, driving higher food prices. Other
countries respond by imposing their restrictions, causing a growing
cycle of trade actions that have a multiplier effect on prices, the
report notes.

They explain that measures to limit exports significantly affected
food prices in the 2008 crisis, worsening the situation, the report
discloses.

The publication notes that this time, the war in Ukraine is
accelerating a price spike that began earlier due to unfavorable
weather conditions in major producing countries, rapid economic
recovery after the COVID-19-induced slump, and rising energy and
fertilizer costs, the report relays.

"The war has severely disrupted shipments from Ukraine, one of the
world's largest food suppliers. The country is also a major
supplier of corn, barley and sunflower seeds, which are used to
make cooking oil, products that cannot reach world markets because
Ukraine's ports are blocked," the authors analyze, noting that
export restrictions are not the only trade measures governments are
taking in response to rising prices, the report notes.

They argue that some countries are reducing tariffs or eliminating
import restrictions. Chile, for example, increased duty discounts
on wheat. "Normally, a permanent reduction in import restrictions
would be welcomed. However, in a crisis, temporary reductions in
import restrictions put upward pressure on food prices by boosting
demand, just as export restrictions do by reducing supply," they
say, the report discloses.

                          Affected

The article states that among those most affected by trade
restrictions (PDF) are developing economies in Africa, Asia, Latin
America, and the Middle East, the report notes.   For example,
Bangladesh imports 41% of its wheat from the Black Sea region, the
report relays.  In the case of the Republic of Congo, the figure is
67% and 86% in the case of Lebanon, the report says.

He refers that given the magnitude of dependence, people in these
countries are likely to be affected immediately, as alternative
suppliers will not be available in the short term, the report
discloses.  "Higher prices will eventually incentivize major
agricultural exporters to expand their production and replace part
of the exports from the Black Sea region, but this will take time,"
they point out, the report adds.


                           *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.

Copyright 2022.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Peter A. Chapman at 215-945-7000.
.


                  * * * End of Transmission * * *