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

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

          Thursday, August 25, 2022, Vol. 23, No. 164

                           Headlines



A R G E N T I N A

CLISA: Fitch Affirms 'CCC' LongTerm IDRs


B E R M U D A

SIGNET JEWELERS: Fitch Affirms 'BB' Long Term IDR, Outlook Stable


B R A Z I L

BANCO BOCOM: Fitch Affirms 'BB+' LT Local Currency IDR
JBS SA: Surging Chicken Feed Costs Clip Wings of Moy Park
RIO DE JANEIRO: Fitch Affirms 'BB-' LongTerm IDRs
SANTA CATARINA: Fitch Affirms 'BB-' LongTerm IDRs


C A Y M A N   I S L A N D S

MADISON NICHE OPPORTUNITIES: Dissolution Bid Objection Due Aug. 31
MADISON NICHE: Dissolution Bid Objection Due Aug. 31


J A M A I C A

STERLING INVESTMENTS: Reports 2nd Quarter Loss


M E X I C O

UNIFIN FINANCIERA: Fitch Cuts Issuer Default Ratings to 'RD'


P E R U

PERU: Years of Political Crises Finally Hitting Economy


P U E R T O   R I C O

INNOVA INDUSTRIAL: Unsecured Creditors Will Get 5% of Claims

                           - - - - -


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A R G E N T I N A
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CLISA: Fitch Affirms 'CCC' LongTerm IDRs
----------------------------------------
Fitch Ratings has affirmed Compania Latinoamericana de
Infraestructura y Servicios's (CLISA) Long-Term Foreign and Local
Currency Issuer Default Ratings (IDRs) at 'CCC'. In addition, Fitch
has affirmed CLISAs senior secured bond maturing July 2027 at
'CCC'/'RR4'.

The ratings reflect CLISA's tight liquidity position and vulnerable
business profile due to Argentina's challenging economic
environment. Fitch expects the company's financial structure to
remain curtailed within the ratings horizon. The ratings also
reflect CLISA's strong local market position, stability of its
waste management operations, and expected improvement its
construction business. CLISA's secured bond recovery rating is
'RR4' as Fitch generally caps Argentina corporates and higher risk
jurisdictions at this level.

KEY RATING DRIVERS

Liquidity Constraints and Refinancing Risk: CLISA generally manages
a tight liquidity profile, in great part due to its significant
working capital needs from the prolonged period of repayments for
its receivables in relation to its payables. The company usually
manages this with a combination of short and long-term financing.
Fitch does not expect this to change in the near future given the
operating environment in Argentina and the company's counterparty
profile. As a result, the company will likely remain pressured to
refinance existing debt into the future, and will likely remain
highly dependent on access to both local and international
markets.

Significant Counterparty Risk: CLISA's ratings incorporate the
company's exposure to high counterparty risk, which is closely
linked to the Argentine public sector, as 80% to 90% of the
company's revenues come from various municipalities and provinces.
The more stable waste management business accounts for the majority
of this figure. The company's construction business is highly
dependent upon projects being developed by federal, provincial and
municipal governments. CLISA also faces contract renewal risk,
which stems from regular negotiations of public service contracts.
The company is vulnerable to delays in collection with the public
sector as a major client.

Exposure to Cyclical Businesses: CLISA's businesses are
intrinsically tied to the economic cycle and local politics. As
such, operating performance can be volatile. Transportation and
construction revenues declined due to public transport restrictions
and project delays during pandemic lockdowns. Revenues declined
over 76% for transportation and 50% in construction in 2020, and
have remained at these lower levels throughout 2021. In
transportation, subsidies mitigate the impact of lower ridership
volumes by compensating the company for commercial car-kilometers
traveled. The company expects significant improvements in both
segments in 2022. CLISA began operating the subway network in the
City of Buenos Aires in December 2021 under a new 12-year
contract.

Fitch expects revenues in the transportation segment to increase as
a result of the new contract accounting and capacity utilization
recovery, but EBITDA will remain marginal. The company also hopes
to grow its construction business revenues to pre-pandemic levels
in 2022; albeit, at lower EBITDA margins of around 10%. Argentina's
current economic conditions will remain a challenge for the
company. CLISA may be able to gradually reduce some of these risks
as it seeks to grow some of its business segments outside
Argentina.

Market Position and Diversification: CLISA has a strong market
position and is one of Argentina's largest privately-owned
conglomerates with businesses in various public infrastructure
sectors. The company generates 72% of its LTM EBITDA from its Waste
Management segment as of 1Q22. Construction is the second largest
contributor representing roughly 19% of EBITDA for the same period.
Approximately 60% of construction revenues originate from
Argentina.

The Transportation and Water Supply segments represent about 9% of
EBITDA. The company's EBITDA margin in 2021 was 16.8%. Fitch
expects revenues from Construction and Transportation to eventually
represent a larger portion of the company total revenues starting
in 2022. However, overall margin may decline as these segments are
expected to yield margins at or below 10%.

DERIVATION SUMMARY

CLISA's maintains an important business position in Argentina's
waste management industry, serving the city of Buenos Aires and
other cities and counties such as, Santa Fe, Neuquen and San
Isidro. In addition, the company is an experienced and a
well-positioned operator in the construction sector. CLISA also
continues to operate the City of Buenos Aires' subway network under
a new 12-year contract, which should provide a relatively stable
revenue stream. Profitability in the Transportation segment will
depend on how efficient CLISA becomes at managing the subway
system. In Fitch's view, these last two business segments are the
most likely to generate improvements in the company's overall
financial profile.

CLISA's profitability is lower than Companhia de Saneamento Basico
do Estado de Sao Paulo ("SABESP" BB/Stable). The company's overall
EBITDA margin as of 2021 was 16.8%, while its Waste Management
division had margins of 25%. SABESP's EBITDA margin was around
41.1% in 2021. CLISA, however, compares much more favorably against
Aguas y Saneamientos Argentinos S.A. (CCC), which has a loss-making
operation.

In terms of credit metrics, CLISA also underperforms SABESP and
outperforms Aguas y Saneamientos. CLISA's gross leverage stands at
4x Debt/EBITDA while SABESP is at 1.2x. Similarly, CLISA's
operating profile is weaker with a 2.4x FFO interest coverage ratio
compared to SABESP's 5.9x. Aguas y Saneamientos is significantly
weaker in this respect with a loss-generating operation that
requires capital injections from its shareholders and has more
pressing refinancing risks.

Fitch also views CLISA's credit profile as much weaker than U.S.
peers in the waste management industry such as Waste Management
Inc. (BBB+/Stable) and Waste Connection Inc. (BBB+/Stable). These
companies are stronger scale, margins, FCF generation, leverage and
operating environment.

KEY ASSUMPTIONS

-- Waste Management and Water Supply segments remain stable and
    at historical margins;

-- The Construction business reaches USD350 million in revenues
    in 2022, and has an EBITDA margin of 10%;

-- The Transportation segment reaches USD250 million in revenues
    in 2022 with marginal contribution to EBITDA;

-- Capex of USD25 million per year;

-- Revenues and costs are inflation adjusted;

-- Company continues using PIK option for interest payments on
    the 2027 bonds;

-- Company's short-term debt is rolled over and company
    maintains at least 5% of revenues in cash;

-- No dividends paid.

RATING SENSITIVITIES

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

-- Long-term improvement in the company's liquidity position;

-- An upgrade of the Argentine Sovereign Rating and Country
    Ceiling.

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

-- A downgrade could be triggered by an Argentine Sovereign
    Rating downgrade;

-- A weakening in the company's liquidity position resulting in
    readily available cash persistently below 5% of revenues;

-- A significant deterioration of the company's credit metrics
   leading to sustained interest coverage ratio below 2x or
   debt/EBITDA above 5.0x.

LIQUIDITY AND DEBT STRUCTURE

Pressured Liquidity Position: The 'CCC' rating reflects Fitch's
concern that reduced access to credit and continued economic
instability in Argentina could result in deterioration of CLISA's
liquidity position and capital structure.

As of March 2022, the company had readily available cash in hand of
ARS 6.2billion and short-term debt of ARS12.5 billion. Short-Term
term debt consisted mostly of self-liquidating and revolving
facilities. Self-Liquidating facilities are receivables factoring
like transactions with recourse to the company.

In July 2021 the company restructured its bond due in 2023
successfully exchanging over 95% of its bonds to new secured bonds
due in 2027. The terms of the new bonds include a step-up coupon
that goes from 5.25% in 2022 to 10.5% in 2024 with an option to PIK
a portion of the interest payment until 2024. As part of the
exchange, the security and covenants from the old 2023 bonds were
removed.

Roughly USD10.1 million of the 2023 bonds remain outstanding from
holdouts of the last exchange. According to the company, as a
result of the transaction the company has met Central Bank
conditions to access U.S. dollars to make payment to the holdouts
in 2023. The company also faces approximately USD6.5 million in
payments in 2022 on its privately issued notes at is Benito Roggio
construction unit in Peru. These notes are not subject to
Argentina's capital controls.

ISSUER PROFILE

CLISA is a leading Argentine infrastructure management and
development company in business for over 100 years. The company is
organized into four main business segments: Construction and Road
Concessions, Waste Management, Transportation and Water Services.
The company provides services to both the public and private
sectors, but is mostly focused in public infrastructure.


ESG CONSIDERATIONS

CLISA-Compania Latinoamericana de Infraestructura y Servicios has
an ESG Relevance Score of '4' for Governance Structure due to
ownership concentration, which has a negative impact on the credit
profile, and is relevant to the rating[s] 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.

                              Rating              Prior
                              ------              -----
CLISA-Compania
Latinoamericana de
Infraestructura
y Servicios          LT IDR     CCC  Affirmed       CCC

                     LC LT IDR  CCC  Affirmed       CCC

  senior secured     LT          CCC Affirmed  RR4  CCC




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B E R M U D A
=============

SIGNET JEWELERS: Fitch Affirms 'BB' Long Term IDR, Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has affirmed Signet Jewelers Limited's and Signet
Group Limited's ratings, including their Long-Term Issuer Default
Ratings (IDR) at 'BB'. The Rating Outlook is Stable.

Signet's ratings reflect its leading market position as a U.S.
specialty jeweler with approximately 9% share of a highly
fragmented industry. The rating considers Signet's recently strong
operating trajectory, which demonstrates success in the
implementation of its topline and other initiatives.

Although Fitch expects some near-term contraction from record 2021
results, revenue and EBITDA beginning in 2023 are projected to
trend in the mid-$7 billion and mid-$800 million ranges,
respectively, well above pre-pandemic levels of $6 billion and $504
million. The rating reflects expectations that Signet will be able
to maintain adjusted leverage (adjusted debt/EBITDAR, capitalizing
leases at 8x) in the low-4x range, in line with their publicly
articulated financial policy.

KEY RATING DRIVERS

Strong Recent Performance: Following several years of declining
sales pre-pandemic, Signet's 2021 sales grew to $7.8 billion,
nearly 30% above the $6.1 billion recorded in 2019. Performance was
driven in part by the redeployment of savings from stimulus checks
and reduced spending on consumer services like travel and
entertainment. Beyond these industry tailwinds, Signet has
introduced a number of initiatives in recent years to improve same
store sales (SSS), including increasing the pace of product
innovation, developing product extensions and investing in its
omnichannel platform.

Over the last few years, the company has been focused on investing
in its digital shopping platform and using consumer data to guide
decision making in merchandising and to allow greater
personalization in service. Fitch believes good execution of these
initiatives have allowed the company to gain market share since the
onset of the pandemic.

Fitch expects organic sales could decline in the mid-high single
digits in 2022 and 2023, given strong recent growth and shifts in
consumer spending back toward services. Beginning in 2024, Fitch
projects Signet's revenue could stabilize around $7.5 billion,
above pre-pandemic levels supported by good operational execution
and recent acquisitions, including Diamond Direct in 4Q21 and Blue
Nile, which is expected to close in 3Q22. Together, these
businesses are expected to contribute around $1 billion in annual
sales.

EBITDA Rebound: Signet's EBITDA margins are expected to trend in
the 11% range beginning in 2022, well above the low-8% seen in
pre-pandemic 2019, yielding EBITDA in the mid-$800 million range.
In recent years, Signet has been focused on structural cost
reductions, including consolidation of distribution centers and
sourcing optimization. Additionally, Signet's store fleet
optimization effort yielded a gross margin benefit of around 500
bps.

During 2018-2021, the company achieved over $400 million in
annualized net savings across a number of functions, ahead of its
goal of $200 million to $225 million in cost reductions announced
in March 2018. In March 2021, the company announced another
three-year goal to reduce costs by $200 million to $220 million.
Fitch expects the company to redeploy a significant level of these
savings into topline investments as it has historically.

Improved Leverage; Strong FCF: Signet paid down approximately $466
million of debt in 2020 and currently has approximately $800
million of debt outstanding. In March 2021, the company revised its
financial target to below 3.0x adjusted leverage versus a previous
3.5x (capitalizing rent at 5x; Fitch-adjusted equivalent is at or
below 4.5x). Fitch projects that, absent a debt-financed
transaction, Signet's leverage could trend in the mid-3x range
across the forecast period, below the mid-to-upper 5x range seen
pre-pandemic based on EBITDA growth and debt reduction. Per
Signet's leverage calculations, this equates to leverage trending
in the low-2x range.

Fitch believes Signet currently has headroom under its leverage
target, and recognizes that Signet could potentially use this
flexibility to undergo a transaction that brings leverage closer to
its stated 3.0x target.

With $928 million of cash as of April 30, 2022, and positive free
cash flow expected over the rating horizon, Signet has good
liquidity and financial flexibility. The company could deploy FCF
generation towards a combination of debt reduction, share
repurchases, dividends, and acquisitions. Signet repurchased
approximately $318 million in shares year to date as of April 30,
2022. Signet has recently been acquisitive, purchasing Diamond
Direct in November 2021 for $490 million and Blue Nile (expected to
close during 3Q22) for $360 million. Both of these transactions
were funded with cash on hand.

Leading Jeweler Position: Signet is the leading U.S. specialty
jeweler with approximately 9% share of a fragmented $69 billion
market. The company ended 2021 with 2,854 stores across well-known
brands like Kay, Jared, Zales and Piercing Pagoda in the U.S.;
Peoples in Canada; and H.Samuel and Ernest Jones in the U.K.

Signet benefits from its scale and ability to invest in its
omnichannel platform. If executed effectively, these investments
could provide Signet competitive advantages against smaller and
independent jewelers with limited capacity to invest. Longer term,
Signet's ability to grow its share of the fragmented mid-tier
jewelry market will depend on execution against its omnichannel and
other growth initiatives.

Parent Subsidiary Linkage: Fitch's analysis includes a strong
subsidiary/ weak parent approach between the parent, Signet
Jewelers Limited and its subsidiaries Signet UK Finance, PLC and
Signet Group Limited. Fitch assesses the quality of the overall
linkage as high, which results in an equalization of IDRs.

DERIVATION SUMMARY

Signet's ratings reflect its leading market position as a U.S.
specialty jeweler with approximately 9% share of a highly
fragmented industry. The rating considers its recently strong
operating trajectory, which demonstrates success in the
implementation of its topline and other initiatives. Although Fitch
expects some near-term contraction from record 2021 results,
revenue and EBITDA beginning 2023 are projected to trend in the
mid-$7 billion and mid-$800 million ranges, respectively, well
above pre-pandemic levels of $6 billion and $504 million.

The rating reflects expectations that Signet will be able to
maintain adjusted leverage (adjusted debt/EBITDAR, capitalizing
leases at 8x) in the low-4x range, in line with their publicly
articulated financial policy.

Similarly rated peers include Mattel, Inc. (BB+/Positive), Capri
Holdings Limited (BBB-/Stable), Levi Strauss & Co. (BB+/Stable) and
Samsonite International S.A. (BB-/Negative).

Mattel's 'BB+'/Positive rating reflects the company's meaningfully
improved credit metrics achieved through better than expected
execution on both the top and bottom line as well as discretionary
debt paydown. While Fitch expects the company to surrender some of
the revenue and margin gains achieved in 2021 as the tailwinds from
the pandemic dissipate, the Positive Outlook reflects Fitch's view
that improved competitive positioning, cost cuts and debt reduction
could result in post-pandemic credit metrics and an operational
profile supportive of an investment grade rating over time.

Capri's 'BBB-'/Stable rating reflects its strong positioning in the
U.S. handbag market, historical growth at its various brands and
its commitment to debt reduction. The rating also considers the
fashion risk inherent in the accessories and apparel space. Capri's
rating reflects expectations that Capri will be able to maintain
adjusted leverage in the low-3x range.

Levi's 'BB+'/Stable rating continues to reflect the company's
position as one of the world's largest branded apparel
manufacturers, with broad channel and geographic exposure, while
also considering the company's narrow focus on the Levi brand and
in bottoms. The rating reflects expectations that Levi will be able
to maintain adjusted leverage under 3.5x.

Samsonite's ratings reflect the company's position as the world's
largest travel luggage company, with strong brands and historically
good organic growth. The rating also considers the adverse impact
on performance since the onset of the pandemic.

The Negative Outlook reflects Fitch's view that operating results
will remain challenged until travel related spending recovers, with
lingering uncertainty regarding the exact timing and trajectory of
a rebound. Samsonite's substantial liquidity position of over $1.4
billion as of March 31, 2022 -- largely held as cash, provides a
significant buffer against the current environment and offers
strong prospects for deleveraging.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within the Rating Case for the Issuer:

-- Signet's revenue, which expanded by approximately 50% in 2021
to $7.8 billion and compares with $6.1 billion in pre-pandemic
2019, is expected to decline in the mid-single digits in 2022 as
the impact of the Diamond Direct acquisition only partially offsets
a shift in consumer spending patterns toward services and away from
goods like jewelry.

Signet's revenue in 2023 could be flat as a continued unwind in
demand is offset by the impact of a full year of revenue from the
Blue Nile acquisition, which is expected to generate over $500
million in annual sales. Beginning 2024, revenue could grow around
1%, supported by the company's topline initiatives including its
omnichannel focus.

-- EBITDA is expected to decline from $1.1 billion in 2021 to
around $870 million in 2022 partly based on mid-single digit
top-line decline, as well as industry wide cost inflation. EBITDA,
beginning in 2023 could trend in the mid-$800 million range,
relative to 2019 levels of $504 million. EBITDA margins could trend
in the 11% range beginning 2022, higher than the low-8% range in
2019 given strong top-line growth and expense management
initiatives. Fitch does not assume meaningful EBITDA contribution
from Blue Nile.

-- Fitch expects 2022 FCF of approximately $340 million, lower
than the $1.0 billion generated in 2021 due to lower EBITDA, higher
capex spend, and some reversal in recent working capital benefits.
FCF could be in the $380 million-$400 million range annually
beginning 2023.

-- Signet could use its strong cash balances of $928 million as of
April 2022 and good FCF to reinvest in its business, continue share
buybacks, and reduce debt over the next two to three years. The
company's $147 million of unsecured notes matures in July 2024. The
company has earmarked $360 million of its cash balance for its
recently announced Blue Nile acquisition, closing in 3Q of 2022.

-- Total adjusted debt/EBITDAR (capitalizing leases at 8.0x) is
expected to trend in the mid-3.0x range across the forecast, lower
than the 5.4x level seen in 2019 based on EBITDA expansion and debt
reduction. Fitch recognizes the company could undertake capital
structure actions to increase adjusted leverage to the low-4x
range, in concert with its publicly articulated financial policy.

RATING SENSITIVITIES

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

-- A positive rating action could occur if the company revised its
financial policy, which increases Fitch's confidence of Signet
maintaining adjusted leverage (adjusted debt/EBITDAR, capitalizing
leases at 8x) below 4.0x, while also performing in line with
Fitch's current base case forecast, including sustaining EBITDA
above $800 million.

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

-- A downgrade could occur if operating performance is below
expectations, yielding EBITDA declines toward $500 million and
adjusted debt/EBITDAR (capitalizing leases at 8.0x) sustained above
4.5x.

LIQUIDITY AND DEBT STRUCTURE

Solid Liquidity and Limited Near-Term Maturities: As of April 30,
2022, Signet had $927.6 million in cash and cash equivalents and no
borrowings on its $1.5 billion ABL facility due July 2026, with
$1.2 billion in available borrowing capacity.

As of April 30, 2022, the company's capital structure consists of
$147.1 million in unsecured notes due July 2024 and $652.6 million
of preferred equity, which receives 0% equity credit. Permanence in
the capital structure -- in this case permanence of the convertible
preferreds -- is necessary for equity credit recognition. Fitch
views these securities as not conducive to being maintained as a
permanent part of the capital structure, with the main purpose
being to support the company's stock price. Given current cash
balances and cash flow generation, the company could pay-off
outstanding debt maturities when they come due using cash.

In March 2021, the company announced a new target of adjusted
leverage below 3.0x. The target capitalizes leases at 5.0x and thus
equates to a target of approximately 4.5x on Fitch's leverage
calculation which capitalizes rent at 8.0x.

RECOVERY CONSIDERATIONS

Fitch does not employ a waterfall recovery analysis for issuers'
assigned ratings in the 'BB' category. The further up the
speculative-grade continuum a rating moves, the more compressed the
notching between the specific classes of issuances becomes. Fitch
has affirmed Signet's secured ABL facility at 'BBB-'/'RR1'
indicating outstanding recovery prospects (91% to 100%). Fitch has
affirmed the unsecured notes at 'BB'/'RR4' indicating average
recovery prospects (31% to 50%). Fitch has affirmed the preferred
equity at 'BB-'/'RR5', indicating below average recovery prospects
(11% to 30%).

ISSUER PROFILE

Signet, incorporated in Bermuda, is the world's largest diamond
jewelry retailer, with 2,854 stores and kiosks (as of the end of
2021) in the U.S., U.K. and Canada operating under a variety of
national and regional brands. Signet's largest brands include Kay
(38% of 2021 sales), Zales (22%), and Jared (17%), all of which
operate in North America.

SUMMARY OF FINANCIAL ADJUSTMENTS

Historical and projected EBITDA is adjusted to add back non-cash
stock-based compensation expense and exclude non-recurring charges.
For the year ending January 29, 2022, Fitch added back $45.8
million in stock-based compensation expense. Fitch has adjusted the
historical and projected debt by adding 8x annual gross rent
expense.

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.

                             Rating               Prior
                             ------               -----
Signet Group Limited  LT IDR  BB    Affirmed       BB

  senior secured      LT      BBB-  Affirmed  RR1  BBB-

Signet Jewelers Ltd.  LT IDR  BB    Affirmed       BB

  Preferred           LT      BB-   Affirmed  RR5  BB-

Signet UK Finance plc

  senior unsecured    LT      BB    Affirmed  RR4  BB




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

BANCO BOCOM: Fitch Affirms 'BB+' LT Local Currency IDR
------------------------------------------------------
Fitch Ratings has affirmed Banco BOCOM BBM S.A.'s (BOCOM BBM)
Long-Term (LT) Foreign Currency (FC) Issuer Default Rating (IDR) at
'BB', LT Local Currency (LC) IDR at 'BB+' and LT National Rating at
'AAA(bra)'. The Rating Outlook is Stable.

In addition, Fitch has affirmed BOCOM BBM's Viability Rating (VR)
at 'bb-'.

KEY RATING DRIVERS

IDRs, NATIONAL RATINGS AND SHAREHOLDER SUPPORT RATING

High Probability of Support: BOCOM BBM's IDRs, National Ratings and
SSR reflect a high probability of support from its from its Chinese
ultimate parent bank, Bank of Communications Co, Ltd. (BOCOM;
Long-Term Foreign Currency IDR A/Stable and Viability Rating bb-).

BOCOM BBM's LT FC IDR is rated one notch below that of BOCOM's and
constrained by Brazil's 'BB' Country Ceiling, while its LT LC IDR
is currently capped at two notches above Brazil's LC sovereign
rating (BB-/Stable). This reflects Fitch's view that BOCOM's
ability to provide support to its subsidiary's senior creditors is
linked to Brazilian sovereign risk, and might be reduced in case of
extreme sovereign stress, despite the group's strategic commitment
to the country

The support assessment also incorporates Fitch's view that BOCOM
BBM's activities in Brazil are strategically important for the
parent. This is demonstrated by the group's efforts to deepen
commercial activity since over the past years, ordinary support in
terms of funding and capital and BOCOM BBM's efforts to increase
synergies and operational integration within its parent.

BOCOM owns 80% of BOCOM BBM and the parent's IDRs are driven by the
Chinese state's ownership in the bank and its systemic importance.
Under Fitch's assessment, Chinese state support to BOCOM would flow
through to BOCOM BBM, should the need arise. BOCOM has a strong
ability to provide support if needed, as BOCOM BBM's modest size
relative to the overall group is unlikely to represent a
constraint.

VR

Intrinsic Credit Fundamentals: The VR is supported by the bank's
growing, albeit modest in size, corporate lending franchise in the
domestic market and the bank's proved record of business stability
over the past four years. It also reflects a conservative risk
appetite towards domestic corporates, resulting in stronger asset
quality than many of its peers. BOCOM BBM's capitalization is
adequate for its risk profile, while funding and liquidity is
comfortable and benefits from ordinary support from BOCOM.

Strengthened Franchise: BOCOM BBM is a medium-sized commercial bank
focused primarily on corporate lending. The bank's market share by
total loans is small on a national basis, but Fitch's assessment of
BOCOM BBM business profile highlights the bank's improved banking
franchise in recent years that has translated into incremental
revenue generation over the past four years despite a more
challenging and highly competitive operating environment.

The bank's management team has successfully executed its
business-expansion plans on the bank's core corporate lending
franchise, while strengthening fee-based business units so as to
support revenue diversification. Intra-group benefits from being
part of the Chinese BOCOM group supported this plan.

Resilient Asset Quality: BOCOM BBM has maintained better asset
quality throughout the recent years than domestic peers due to its
conservative risk profile, which should put them in good stead to
absorb some deterioration from higher interest rates and Brazil's
still low economic growth. At end-2021, its impaired loan ratio
(which includes impaired loans from D-H under local resolution) was
0.4%, and was supported by a strong impaired loans coverage ratio
of 163%. Fitch believes BOCOM BBM's strong metrics should help the
bank maintain asset-quality metrics that are consistent with a
'bb-' score.

Improving Commercial Scale: BOCOM BBM's profitability metrics are
somewhat below that of the average of "bb category" banks,
partially explained by the bank's conservative asset mix toward
large corporates. However, core earnings have been fairly improving
in recent years helped by growing business volumes, improving mix
and cost optimization measures. BOCOM BBMs operating profit-to-RWAs
ratio was 3.3% in FY21 from 2.3% in FY18, supported by sound
revenue performance. Accordingly, the bank's operating income of
BRL561 million in FY21 grew 2.0x from FY18 levels of BRL292
million.

Fitch anticipates most of the earnings rebound in 2021 will be
challenged in the next 18 months due to weaker business prospects,
but profitability will likely remain resilient due to growing
corporate lending volumes and the continued expansion toward new
businesses, including in SME lending and in the bank's client fund
management divisions.

Adequate Capitalization: Capitalization levels are adequate
considering BOCOM BBM's credit risk profile, well managed market
risks and ordinary support from the parent. BOCOM BBM's below peer
average CET1 ratio of 9.8% at the end of March 2022 reflects its
parent BOCOM largely managing the subsidiary's capitalization on a
need-cost optimization basis. Fitch expects ordinary support to
remain available for business growth, should it be needed.

Further loss-absorption capacity in the form of hybrid instruments
is added by tier 1 perpetual notes placed within its group of
around BRL 200 million. Also, in February 2022, BOCOM BBM's
demonstrated good access to wholesale debt markets through an
issuance of BRL270 million of tier 2 subordinated debt. The latter
explains BOCOM BBM's improved total regulatory capital ratio of
15.3% at the end of March 2022 from 12.6% the end of 2021.

Stable Funding: Fitch's assessment of BOCOM BBM's funding and
liquidity profile incorporate the benefits it derives from being
part of BOCOM. Intragroup funding accounted for 34% of BOCOM BBM's
funding base at the end of March 2022. BOCOM BBM also funds its
loan book with a mix of customer deposits and deposit like
instruments. The bank's liquidity buffers are adequate given
limited forthcoming maturities. At the end of March 2022,
high-quality liquid assets reached BRL2.6 billion, representing an
adequate 19% of total assets.

RATING SENSITIVITIES

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

BOCOM BBM's IDRs, National Ratings and SSR could be downgraded if
BOCOM's IDRs, from which they are notched, suffer a multiple-notch
downgraded. However, BOCOM BBM's Long-Term IDR would not be
downgraded to a level below that of its VR.

The VR has enough headroom to absorb moderate deterioration in
asset quality. They could be downgraded if the recovery of the
Brazilian economy suffers a severe setback causing a material
weakening of the operating environment. In this scenario, pressure
could stem from rapidly rising private-sector indebtedness and
permanent erosion of business prospects.

The VR could also be downgraded if contrary to expectations, BOCOM
BBM's impaired loan ratio deteriorates durably above 5% that
results in deterioration of its earnings.

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

BOCOM'S IDRs could be upgraded if the rating on the Brazilian
sovereign is also upgraded, provided that BOCOM BBM remains
strategically important to BOCOM.

An upgrade on the VR is unlikely and would be contingent on a
sovereign upgrade.

VR ADJUSTMENTS

The Business Profile 'bb-' has been assigned above the implied 'b'
Business Profile Score due to the following adjustment reason:
Group benefits and risks (positive).

The Earnings & Profitability 'b+' has been assigned below the
implied 'bb' Earnings & Profitability Score due to the following
adjustment reason: Revenue Diversification (negative).

The Funding & Liquidity of 'bb-' has been assigned above the
implied 'b' Funding & Liquidity Score due to the following
adjustment reason: Non-deposit funding (positive).

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

BOCOM BBM's IDRs and National Ratings are driven by support from
the Bank of Communications Co, Ltd. (BOCOM; LT FC IDR A/Stable and
VR bb-), which owns 80% of BOCOM BBM.

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.

                    Rating             Prior
                    ------             -----
Banco BOCOM BBM S.A.

LT IDR              BB       Affirmed  BB
ST IDR              B        Affirmed  B
LC LT IDR           BB+      Affirmed  BB+
LC ST IDR           B        Affirmed  B
Natl LT             AAA(bra) Affirmed  AAA(bra)
Natl ST             F1+(bra) Affirmed  F1+(bra)
Viability           bb-      Affirmed  bb-
Shareholder Support bb       Affirmed  bb


JBS SA: Surging Chicken Feed Costs Clip Wings of Moy Park
---------------------------------------------------------
Mark Paul at Irish Times reports that soaring chicken feed costs
helped to drive down profits by more than half last year at Moy
Park, the Armagh-headquartered poultry group that is also the
biggest private company in the North.

The company, which is ultimately controlled by Brazilian meat giant
JBS, recorded a near 5 per cent rise in revenues last year to
GBP1.53 billion (EUR1.8 billion), according to Irish Times.

However, Moy Park's directors blamed "unprecedented" rises in feed,
as well as energy and labor costs, for a 58 per cent drop in its
operating profits to GBP36.1 million, according to accounts
recently filed, the report notes.  It suggested the financial
performance was helped by the reopening of the hospitality industry
in many countries following the worst of the Covid-19 pandemic, the
report relays.

In a report attached to the accounts, the directors flagged further
inflation in its cost base this year due to the war in Ukraine. The
eastern European nation and Russia, its invader, are among the
world's biggest grain exporters and interruptions in supply have
further driven up agricultural feed costs in 2022, Irish Times
discloses.

Despite the dip in profits, Moy Park resumed significant dividend
payments this year to its shareholder, the report notes.  JBS
controls Moy Park via the US-listed food group, Pilgrim's Pride,
which is listed on the stock market in New York but 80 per cent
owned by JBS, the report says.  Moy Park paid its shareholder an
interim dividend during the year of GBP50 million, the accounts
show, the report notes.

                  Almost 10,000 Staff

The company employed an average of 9,675 staff during the year
across nine facilities in Ireland, Britain and France, where it has
728 staff, the report discloses.  It breeds poultry, mainly
chickens, and also turns the birds into food products for major
supermarkets such as Sainsburys and Asda, and also restaurant
chains including McDonald's and Burger King, the report relays.  It
also manufactures beef and pork products, as well as vegetarian
dishes and desserts, the report says.

A note to the accounts says that the group processed more than 272
million birds last year, marginally ahead of 2020, the report
relays.  At the end of the year, it held almost 30 million live
birds, or "biological assets" in its facilities that it valued at
more than EUR59 million, the report notes.

The accounts suggest that Moy Park's company president, former
Greencore USA chief executive Chris Kirke, was paid just over GBP1
million last year by the poultry company, the report discloses.

JBS bought Moy Park seven years ago for GBP1 billion from fellow
Brazilian company Marfrig, the report relays.  Two years later, it
transferred the Northern Ireland company at a similar valuation to
Pilgrim's Pride, which itself is 80 per cent owned by JBS, the
report notes.

Last year, JBS launched a bid to buy the remaining 20 per cent it
does not already own of Pilgrim's Pride, which would have put the
Irish company back in 100 per cent Brazilian ownership, the report
discloses.  However, it abandoned the proposed transaction earlier
this year, the report adds.

                        About JBS SA

As reported in the Troubled Company Reporter-Latin America in
August 2021, S&P Global Ratings revised the global scale outlook on
JBS S.A. (JBS) and its fully owned subsidiary JBS USA Lux S.A. (JBS
USA) to positive from stable and affirmed its 'BB+' issuer credit
rating. The recovery expectations remain unchanged, and S&P
affirmed the 'BB+' ratings on the senior unsecured notes and the
'BBB' ratings on the secured term loans.


RIO DE JANEIRO: Fitch Affirms 'BB-' LongTerm IDRs
-------------------------------------------------
Fitch Ratings has affirmed the Brazilian State of Rio de Janeiro's
Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs)
at 'BB-' with a Stable Rating Outlook and its Short-Term Foreign
and Local Currency IDRs at 'B'. Fitch has also affirmed Rio de
Janeiro's National Long-Term Rating at 'AA(bra)' with a Stable
Outlook and its National Short-Term Rating at 'F1+(bra)'. Fitch
revised Rio de Janeiro Standalone Credit Profile (SCP) to 'ccc'
from 'd'.

The state's IDRs benefit from a five-notch uplift from its SCP
considering the support derived from the ratification of the New
Fiscal Recovery Regime and its impact over the state's enhanced
debt sustainability. The New Fiscal Recovery Regime is a tool
through which the state solves a default situation and restructures
its debt service profile. Throughout the duration of the program,
Rio de Janeiro will benefit from debt service relief through a
step-up debt service schedule and the federal government will
service all contracts included under the program. The state's IDRs
are equalized to the sovereign at 'BB-', with a Stable Outlook.

KEY RATING DRIVERS

Risk Profile

Weaker

The Weaker assessment reflects Fitch's view of a high risk that the
issuer´s ability to cover debt service with the operating balance
may weaken unexpectedly over the scenario horizon (2022-2026) due
to lower revenue, higher expenditure, or even an unexpected rise in
liabilities or debt or debt-service requirement.

Revenue Robustness

Weaker

The Brazilian tax collection framework transfers to states and
municipalities a large share of the responsibility to collect
taxes. Constitutional transfers exist as a mechanism to compensate
poorer entities. For that reason, a high dependency towards
transfers is considered a weaker feature for a Brazilian Local and
Regional Government (LRG). The State of Rio de Janeiro has
significant fiscal autonomy, with a transfer ratio (transfers to
operating revenues) of 11.4%.

Nonetheless, the state is highly dependent on volatile revenue
sources related to the oil sector, which largely contributed to the
recent history of fiscal imbalances, driving this factor to
weaker.

Revenue Adjustability

Weaker

Fitch considers Brazilian states and municipalities to have a low
capacity level for revenue increase in response to a downturn.
There is low affordability of additional taxation given that tax
tariffs are close to the constitutional national ceiling and a
small number of taxpayers represent a large share of tax
collection, driving this factor to weaker. The most relevant tax,
the Imposto sobre a Circulacao de Mercadorias e Servicos - Tax on
Circulation of Goods and Services (ICMS), has a concentrated
taxpayer base, like for other Brazilian states. The 10 largest tax
payers corresponded to more than 30% of ICMS tax collection in Rio
de Janeiro, on average, for the last three years.

The National Congress recently set a limit for ICMS tax tariffs for
electricity, telecommunications and fuels. Such goods should be
treated as essential goods and tariffs are limited to around 17%.
This created further challenges for revenue adjustability.

Expenditure Sustainability

Weaker

Responsibilities for states are moderately countercyclical since
they are engaged in healthcare, education and law enforcement.
Expenditure tends to grow with revenues as a result of earmarked
revenues. States and municipalities are required to allocate a
share of revenues in health and education. This results in a
procyclical behavior in good times, as periods of high revenue
growth result in a similar behavior for expenditures. However, due
to the large weight of personal expenditures and salary rigidity,
downturns that result in lower revenues are not followed by similar
drops in expenditures.

Data for Rio de Janeiro indicates that the state delivered positive
operating margins between 2018-2021, averaging 8.9%. Nonetheless,
Rio accumulated significant delays on its payroll and other
payments for goods and services throughout 2015-2019. The payroll
bill was settled by 2018.

Expenditure Adjustability

Weaker

Fitch assesses the state's ability to reduce spending in response
of shrinking revenue as weaker. As per the Brazilian Constitution,
there is low affordability of expenditure reduction especially in
salaries. In addition, there is high share of inflexible costs
since there is close to 90% share of mandatory and committed
expenditures. Consequently, capex represented on average 1.9% of
the state's total expenditures for the 2017-2021 period, also
corroborating to the weaker assessment.

Liabilities and Liquidity Robustness

Weaker

There is a moderate national framework for debt and liquidity
management since there are prudential borrowing limits and
restrictions on loan types. Under the Fiscal Responsibility Law
(LRF) of 2000, Brazilian LRGs have to comply with indebtedness
limits. Consolidated net debt for states cannot exceed 2x (200%) of
net current revenue. The state of Rio de Janeiro reported a debt
ratio of 198.7% as of December 2021. The LRF also sets limits for
guarantees (22% of net current revenues). The state reported a
0.11% ratio as of December 2021.

The state has not serviced most of its debt since 2017. In fact,
all guaranteed debt has been serviced by the federal government and
the state only performed debt service of non-guaranteed debt. The
state was also not honoring debt service of intergovernmental debt
owed directly to the federal government, which alone corresponds to
around 77% of the debt stock.

The State of Rio de Janeiro signed, as of June 2022, the New Fiscal
Recovery Regime with the federal government. Under this program,
Rio will have a 10-year transition period with a step-up debt
service profile. In the meantime, the federal government will
continue to honor all debt contracts included in the program.
Through the duration of the program, Rio´s capacity to take new
loans will be very limited and only allowed for specific
circumstances and with federal approval. The New Fiscal Recovery
Regime is a tool through which the state solves a default situation
and restructures its debt service profile.

There is moderate off-balance sheet risk stemming from the pension
system. The pension system is a burden for most Brazilian LRGs,
especially for states given their mandate over education and public
security. Pension payments represent a significant share of
operating expenditures. According to the National Treasury report
"Boletim de Finanças dos Entes Subnacionais", the pension deficit
of Rio cost the state 24.1 % of net current revenues in the year of
2020. In fact, Rio has transferred revenues from oil royalties to
finance its pension deficit. Another relevant contingent liability
refers to the payment of judicial claims, the so-called
"precatorios".

Liabilities and Liquidity Flexibility

Weaker

Fitch adopts the National Treasury CAPAG indicator to assess
liquidity. The liquidity rate is measured by LRGs' short-term
financial obligation to net cash. The trigger of Federal Government
to rate this ratio as 'A' is 100%. We are setting a trigger of 100%
on the average of last three years (2019-2021 YE) together with the
last year-end available (December 2021) below 100% to assess this
factor as "Midrange". The State of Rio de Janeiro reported a
three-year average liquidity ratio of 167% and 85.8% in December
2021. Thus, corroborating with the weaker assessment.

Debt Sustainability

'bb' category

Debt sustainability is assessed at 'bb'. Fitch rating case forward
looking scenario indicates that the payback ratio (net direct risk
to operating balance) - the primary metric of the debt
sustainability assessment - will reach an average of 22.8x for the
2024-2026 period, which is aligned with a 'bb' assessment. The
actual debt service coverage ratio - the secondary metric - is
projected at 1x for the average of 2024-2026, also aligned with a
'bb' assessment. Fiscal debt burden is projected at 178.5% for the
same period.

For its rating case, Fitch takes into consideration the official
financial projections of the New Fiscal Recovery Regime. Operating
revenue growth is projected at 2.4% on average for the 2022-2026
period, which largely reflects the government expectations of a
drop in oil prices and on royalties. Taxes are projected to grow
4.5% in the same period. The growth of operating expenditures
considers the approval of the expenditure ceiling, which limits the
growth of most expenditure items to inflation measured by the IPCA
index.

Fitch does not consider new credit operations other than the ones
informed by the government. Under the New Fiscal Recovery Regime,
the state´s ability to take new loans is very limited and under
the strict control of the federal government. Debt amortization and
interest payments reflect government projections under the new
regime.

ESG -- Credit Rights: State of Rio de Janeiro track record in the
breach of legal documentation stating full debt service payments,
reflects the very low willingness to pay. The SCP will be
reassessed once State of Rio recovers and it is able to honor its
committed financial obligations in due time on a sustained basis.

DERIVATION SUMMARY

The State of Rio de Janeiro SCP reflect the fact that the state has
just overcome a default situation by restructuring its debt through
the New Fiscal Recovery Regime. The SCP positioning at 'ccc' also
reflect debt service coverage ratio above 1x in the next two years
of the projection period, and considers comparison with
international peers. Debt distress does not appear probable in the
following 12-months following the state's restructured debt service
profile and projected operating balance.

The state's IDRs benefit from a five-notch uplift from its SCP
considering the support derived from the recent ratification of the
New Fiscal Recovery Regime and its impact over the state´s
enhanced debt sustainability. Throughout the duration of the New
Fiscal Recovery Regime, Rio de Janeiro will benefit from debt
service relief and the federal government will service all
contracts included under the program, which Fitch estimates to be
close to 99% of Direct Debt. The state's IDRs are equalized to the
sovereign at 'BB-', with a Stable Outlook.

Rio de Janeiro's enhanced debt sustainability metrics are
commensurate with a debt sustainability category of 'aa'. Fitch
excludes intergovernmental debt to estimate enhanced metrics. The
primary indicator, the payback ratio, is projected at 4.4x for the
average of 2024-2026, which is commensurate with a 'aaa' category.
Fitch then applies an override due to actual debt service coverage
ratio projected at 1x for 2024-2026, which is commensurate with the
'bb' category. Enhanced metrics further support the equalization of
the state's IDRs to the sovereign ratings.

KEY ASSUMPTIONS

Risk Profile

Weaker

Revenue Robustness

Weaker

Revenue Adjustability

Weaker

Expenditure Sustainability

Weaker

Expenditure Adjustability

Weaker

Liabilities and Liquidity Robustness

Weaker

Liabilities and Liquidity Flexibility

Weaker

Debt Sustainability

bb

Budget Loans (Notches)

N/A

Ad-Hoc Support (Notches)

5

Asymmetric Risks (Notches)

N/A

Cap

'BB-'

Floor

-

Quantitative assumptions - Issuer Specific

Fitch's rating case is a "through-the-cycle" scenario, which
incorporates a combination of revenue, cost and financial risk
stresses. It is based on 2017-2021 figures and 2022-2026 projected
ratios. The key assumptions for the scenario include:

-- Yoy 2.4% increase in operating revenue on average in 2022-
    2026;

-- Yoy 4.5% increase in tax revenue on average in 2022-2026;

-- Yoy 4.8% increase in operating spending on average in 2022-
    2026;

-- Net capital balance of - BRL 5,556 million on average in 2022-
    2026;

-- Cost of debt: 2.4% on average in 2022-2026.

For the State of Rio de Janeiro, Fitch has largely relied on the
official projections of the New Fiscal Recovery Regime.

Quantitative assumptions - Sovereign Related

Figures as per Fitch's sovereign actual for 2021 and forecast for
2023, respectively, (no weights and changes since the last review
are included as none of these assumptions was material to the
rating action).

RATING SENSITIVITIES

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

-- An upgrade of Brazil´s IDRs could positively affect the State

    of Rio de Janeiro IDRs.

-- An upgrade of Rio de Janeiro SCP could take place if the state

    is able to comply with its restructured debt service profile
    on a sustained basis.

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

-- If the state's debt should not be honored by the federal
    government or by the state, Fitch would revise Rio de
    Janeiro's ratings.

-- A downgrade of Brazil's IDRs would negatively affect the State

    of Rio de Janeiro IDRs.

-- A deterioration of Rio de Janeiro actual debt service coverage

    ratio below 1x for the following 12 months would lead to a
    downgrade of the state's SCP.

LIQUIDITY AND DEBT STRUCTURE

Net adjusted debt considers BRL180.6 billion of direct debt and
unrestricted cash of BRL15.8 billion as of December 2021. Fitch
estimates that close to 99% of debt was included under the New
Fiscal Recovery Regime.

Liquidity improved significantly in 2021 as a result of strong
revenue collection through taxes and oil royalties. The expectation
is that the State of Rio de Janeiro will use part of these
resources to boost its capex program in 2022.

ISSUER PROFILE

State of Rio de Janeiro is classified by Fitch as Type B LRGs,
which are required to cover debt service from cash flow. Rio de
Janeiro has the second largest economy in Brazil, being responsible
for 10.7% of national GDP.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

The ratings of the State of Rio de Janeiro are equalized to the
Brazilian sovereign through intergovernmental debt support.

ESG CONSIDERATIONS

Rio de Janeiro. State of has an ESG Relevance Score of '5' for
Creditor Rights due its track record in the breach of legal
documentation stating the full debt service payments, reflecting
the very low willingness to pay, which has a negative impact on the
credit profile, and is highly relevant to the rating, resulting in
an implicitly lower rating.

Rio de Janeiro. State of has an ESG Relevance Score of '4' for Rule
of Law, Institutional & Regulatory Quality, Control of Corruption
due to the fact that government effectiveness and institutional &
regulatory quality was not sufficient to prevent the state from
resorting to external financial support (namely the federal
government) to pursue fiscal balance, which has a negative impact
on the credit profile, and is relevant to the rating[s] in
conjunction with other factors.

Rio de Janeiro. State of ESG Relevance Score for Biodiversity and
Natural Resource Management was raised to '4' from '3' in
recognition of Rio´s economic and financial dependency on the
hydrocarbon sector, which has a negative impact on the credit
profile, and is relevant to the rating[s] 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.

                          Rating             Prior
                          ------             -----
Rio de Janeiro,
State of
               LT IDR       BB-      Affirmed  BB-
               ST IDR       B        Affirmed  B
               LC LT IDR    BB-      Affirmed  BB-
               LC ST IDR    B        Affirmed  B
               Natl LT      AA(bra)  Affirmed  AA(bra)
               Natl ST      F1+(bra) Affirmed  F1+(bra)


SANTA CATARINA: Fitch Affirms 'BB-' LongTerm IDRs
-------------------------------------------------
Fitch Ratings has affirmed the Brazilian State of Santa Catarina's
(Santa Catarina) Long-Term Foreign and Local Currency Issuer
Default Ratings (IDRs) at 'BB-' with a Stable Rating Outlook and
its Short-Term Foreign and Local Currency IDRs at 'B'. Fitch has
also affirmed Santa Catarina's National Long-Term Rating at
'AA(bra)' with a Stable Outlook and its National Short-Term Rating
at 'F1+(bra)'. Fitch revised Santa Catarina's Standalone Credit
Profile (SCP) to 'bb-' from 'b+', as debt sustainability improved
to 'aa' from 'a'.

Santa Catarina's SCP is at the same level as the sovereign IDR, and
Fitch does not currently reflect sovereign support in Santa
Catarina IDRs. However, Brazilian Local and Regional Governments
(LRGs) benefit from support in the form of intergovernmental debt
with more favorable conditions, including debt service postponement
during periods of financial distress. Subnational governments in
Brazil also have the capacity to join a Fiscal Recovery Regime to
restructure their debt service profiles while committing to fiscal
austerity measures. The process to join the Fiscal Recovery Regime
involves long negotiations with the Ministry of Finance and is
optional.

KEY RATING DRIVERS

Risk Profile

Weaker

The Weaker assessment reflects Fitch's view of a high risk that the
issuer's ability to cover debt service with the operating balance
may weaken unexpectedly over the scenario horizon (2022-2026) due
to lower revenue, higher expenditure, or even an unexpected rise in
liabilities or debt or debt-service requirement.

Revenue Robustness

Midrange

The Brazilian tax collection framework transfers to states and
municipalities a large share of the responsibility to collect
taxes. Constitutional transfers exist as a mechanism to compensate
poorer entities. For that reason, a high dependency towards
transfers is considered a weak feature for a Brazilian LRGs.

The primary metric for revenue robustness is the transfers ratio
(transfers to operating revenues). LRGs that report a transfer
ratio above or equal to 40% are classified as weaker, while others
with a ratio below 40% are classified as Midrange. Santa Catarina
reports a high fiscal autonomy, with a low transfer ratio, what
drives this factor to Midrange. As of 2021, transfers represented
16.4% of operating revenues.

Historically, revenue growth performed above GDP growth. During the
period of 2017-2021, Fitch observed a CAGR of 4.4% in real terms
for operating revenues, compared to an average annual GDP growth of
0.9%.

Revenue Adjustability

Weaker

Fitch considers Brazilian states and municipalities to have a low
capacity level for revenue increase in response to a downturn.
There is low affordability of additional taxation given that tax
tariffs are close to the constitutional national ceiling and a
small number of taxpayers represent a large share of tax
collection, driving this factor to weaker.

The most relevant tax, the Imposto sobre a Circulaçao de
Mercadorias e Servicos - Tax on the Circulation of Goods and
Services (ICMS), has a concentrated taxpayer base, like for other
Brazilian states. The 10 largest tax payers corresponded to around
29% of total ICMS tax collection in Santa Catarina in 2021. The
average for 2017-2021 was 34%. The National Congress recently set a
limit for ICMS tax tariffs for electricity, telecommunications and
fuels. Such goods should be treated as essential goods and tariffs
are limited to around 17%. This created further challenges for
revenue adjustability.

Expenditure Sustainability

Midrange

Responsibilities for states are moderately countercyclical since
they are engaged in healthcare, education and law enforcement.
Expenditure tends to grow with revenues as a result of earmarked
revenues. States and municipalities are required to allocate a
share of revenues in health and education. This results in a
procyclical behavior in good times, as periods of high revenue
growth result in a similar behavior for expenditures. However, due
to the large weight of personal expenditures and salary rigidity,
downturns that result in lower revenues are not followed by similar
drops in expenditures.

Santa Catarina presents moderate control over expenditure growth,
with sound margins. Operating margins averaged 8.8% between 2017
and 2021. The state is current on its payroll bill and has no
significant delays for the payment of suppliers. Operating
expenditure CAGR reached 1.4% between 2017 and 2021, considerably
below the 4.4% CAGR observed for operating revenues.

Expenditure Adjustability

Weaker

Fitch assesses the state's ability to reduce spending in response
of shrinking revenue as weak. As per the Brazilian Constitution,
there is low affordability of expenditure reduction especially in
salaries. In addition, there is high share of inflexible costs
since there is close to 90% share of mandatory and committed
expenditures. Consequently, capex represented on average 4.6% of
the state's total expenditures for the 2017-2021 period, also
corroborating to the weaker assessment.

Liabilities and Liquidity Robustness

Weaker

There is a moderate national framework for debt and liquidity
management since there are prudential borrowing limits and
restrictions on loan types. Under the Fiscal Responsibility Law
(LRF) of 2000, Brazilian LRGs have to comply with indebtedness
limits. Consolidated net debt for states cannot exceed 2x (200%) of
net current revenue. The state of Santa Catarina reported a debt
ratio of 53.1% as of December 2021. The LRF also sets limits for
guarantees (22% of net current revenues). Santa Catarina reported a
5.42% ratio as of December 2021.

As of December 2021, external debt totaled BRL2.8 billion,
corresponding to 14% of direct debt. There is some concentration of
foreign debt principal payment between 2022-2024, and amortization
of external debt is projected around BRL749 million annually.
External debt is owed to multilateral organizations and counts with
federal government guarantee. There is one outstanding contract
with the Bank of America Merrill Lynch, which will be fully
amortized by YE 2022. Debt directly owed to the Federal Government
represented 48.6% of direct debt in December 2021.

There is moderate off-balance sheet risk stemming from the pension
system. The pension system is a burden for most Brazilian LRGs,
especially for states given their mandate over education and public
security. Another relevant contingent liability refers to the
payment of judicial claims, the so-called "precatorios".

Access to new loans is restricted as Brazilian LRGs are not allowed
to access the market through bond issuances. Lenders consist mainly
of public commercial and development banks and multilateral
organizations. Often, loans are guaranteed by the federal
government, especially for foreign currency loans. For that reason,
the federal government exercise strict control over new lending to
LRGs.

Liabilities and Liquidity Flexibility

Midrange

There is a framework of providing emergency liquidity support from
the federal government via the granting of extended maturity over
the prevalent federal debt portion.

Fitch adopts the National Treasury CAPAG indicator to assess
liquidity. The liquidity rate is measured by LRGs' short-term
financial obligation to net cash. The trigger of Federal Government
to rate this ratio as 'A' is 100%. Fitch is setting a trigger of
100% on the average of last three years (2019-2021 YE) together
with the last year-end available (December 2021) below 100% to
assess this factor as "Midrange". Santa Catarina reported a
three-year average liquidity ratio of 32% and 36.4% in December
2021. Thus, corroborating with midrange assessment.

Debt Sustainability

'aa' category

Debt Sustainability is assessed at 'aa', improved from 'a'. Fitch
rating case forward looking scenario indicates that the payback
ratio (net direct risk to operating balance) - the primary metric
of the debt sustainability assessment - will reach an average of
5.1x for the 2024-2026 period, which is aligned with a 'aa'
assessment. The actual debt service coverage ratio - the secondary
metric - is projected at 1.8x for the average of 2024-2026, aligned
with an 'a' assessment. Fitch no longer applies an override to the
primary metric, since the difference with the secondary metric is
only one category. Fiscal debt burden is projected at 38.2% for the
same period.

For its rating case, Fitch takes into consideration the state's
historical performance and projections for main macro variables,
such as nominal GDP growth and inflation. By nature, the rating
case is a stressed scenario. Operating revenues are expected to
grow 7.1% on average between 2022 and 2026, largely driven by tax
collection. Operating spending growth reflects government
projections for 2022-2023. Going forward, Fitch applies a growth
rate related to inflation plus spread.

Fitch considers new loans disbursement to follow the schedule
informed by the government. Debt amortization and interest payment
also reflect government projections.

DERIVATION SUMMARY

Santa Catarina's ratings reflect the combination of a 'Weaker' risk
profile and an 'aa' debt sustainability assessment under Fitch's
rating case scenario. The SCP of 'bb-' also reflects the comparison
with national and international peers. The state's IDRs are not
affected by any other rating factors and are assessed at 'BB-',
with a Stable Outlook. Santa Catarina's National Scale rating is
'AA(bra)' following a national peer comparison.

KEY ASSUMPTIONS

Risk Profile

Weaker

Revenue Robustness

Midrange

Revenue Adjustability

Weaker

Expenditure Sustainability

Midrange

Expenditure Adjustability

Weaker

Liabilities and Liquidity Robustness

Weaker

Liabilities and Liquidity Flexibility

Midrange

Debt Sustainability

aa

Budget Loans (Notches)

N/A

Ad-Hoc Support (Notches)

N/A

Asymmetric Risks (Notches)

N/A

Cap

'BB'

Floor

N/A

Quantitative assumptions - Issuer Specific

Fitch's rating case is a "through-the-cycle" scenario, which
incorporates a combination of revenue, cost and financial risk
stresses. It is based on 2016-2020 figures and 2021-2025 projected
ratios. The key assumptions for the scenario include:

-- Yoy 7.1% increase in operating revenue on average in 2022-
    2026;

-- Yoy 7.5% increase in tax revenue on average in 2022-2026;

-- Yoy 8.7% increase in operating spending on average in 2022-
    2026;

-- Net capital balance of - BRL 2,895 million on average in 2022-
    2026;

-- Cost of debt: 4.2% on average in 2022-2026.

Quantitative assumptions - Sovereign Related

Figures as per Fitch's sovereign actual for 2021 and forecast for
2023, respectively (no weights and changes since the last review
are included as none of these assumptions were material to the
rating action).

RATING SENSITIVITIES

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

-- Santa Catarina IDRs are at the sovereign level and could only
    be upgraded if the sovereign is upgraded in combination with
    an upgrade of the state' SCP.

-- Santa Catarina SCP could be upgraded if its actual debt
    service coverage ratio improves above 2x, provided that is
    payback ratio remains below 9x.

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

-- A downgrade of Brazil IDRs would negatively affect Santa
    Catarina's IDRs.

-- Santa Catarina's IDRs could be downgraded if its actual debt
    service coverage ratio falls below 1.5x and its payback ratio
    is projected between 5x and 9x.

-- Santa Catarina's IDRs could be downgraded if its payback ratio

    is projected above 9x.

LIQUIDITY AND DEBT STRUCTURE

Net adjusted debt considers BRL20.3 billion of direct debt and
unrestricted cash of BRL2.4 billion as of December 2021. Fitch
estimates that close to 47% of debt is guaranteed by the federal
government, while 48% is debt owned directly to the federal
government. Santa Catarina largest creditors are BNDES, Banco do
Brasil, IADB, and IBRD. There is an outstanding loan with Bank of
America Merrill Lynch, which will be fully amortized until the end
of 2022. Santa Catarina has a history of strong liquidity, with an
'A' score under the CAPAG for the three last years.

ISSUER PROFILE

Santa Catarina is classified by Fitch as Type B LRGs, which are
required to cover debt service from cash flow. Its economy is
diversified and organized in several poles distributed throughout
the state. Agribusiness, technology and tourism stand-out.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

The ratings of the State of Santa Catarina could be affected by a
rating action on the Brazilian sovereign.

                         Rating             Prior
                         ------             -----
Santa Catarina,
State of

                 LT IDR    BB-      Affirmed  BB-
                 ST IDR    B        Affirmed  B
                 LC LT IDR BB-      Affirmed  BB-
                 LC ST IDR B        Affirmed  B
                 Natl LT   AA(bra)  Affirmed  AA(bra)
                 Natl ST   F1+(bra) Affirmed  F1+(bra)




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

MADISON NICHE OPPORTUNITIES: Dissolution Bid Objection Due Aug. 31
------------------------------------------------------------------
The Official liquidators of Madion Niche Opportunities Fund, Ltd
intends to apply to the Grand Court of Cayman Islands for an
order to dissolve the company.

If any creditor or contributory has any objection to the
proposed application for dissolution, these objections
should be raised to the OTL no later than Aug. 31, 2022.

If any creditor or contributory do not wish to appoint counsel
to represent them, they are welcome to communicate thier views
to the liquidators.

The liquidator can be reached at:

         Martin Trott
         Official Liquidator
         R&H Restructuring (Cayman) Ltd.
         Winward I, Regatta Office Park
         PO Box 897, Grand Cayman, Cayman Islands
         KYI-1103


MADISON NICHE: Dissolution Bid Objection Due Aug. 31
----------------------------------------------------
The Official liquidators of Madison Niche Asset Fund, Ltd
intends to apply to the Grand Court of Cayman Islands for an
order to dissolve the company.

If any creditor or contributory has any objection to the
proposed application for dissolution, these objections
should be raised to the OTL no later than Aug. 31, 2022.

If any creditor or contributory do not wish to appoint counsel
to represent them, they are welcome to communicate thier views
to the liquidators.

The liquidator can be reached at:

         Martin Trott
         Official Liquidator
         R&H Restructuring (Cayman) Ltd.
         Winward I, Regatta Office Park
         PO Box 897, Grand Cayman, Cayman Islands
         KYI-1103






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

STERLING INVESTMENTS: Reports 2nd Quarter Loss
----------------------------------------------
RJR News reports that Sterling Investments made a loss in its
second quarter ended June.

Total losses amounted to $29 million for the three months, compared
to a $49.1 million profit last year, according to RJR News.

Total earnings for the company, however, saw a three per cent
increase, the report notes.

Sterling's revenue for the quarter was $36.34 million, compared to
$35.6 million for the corresponding period last year, the report
relays.

The investment group says the appreciation in the Jamaican dollar
resulted in foreign exchange losses of $24.6 million, which
negatively affected the quarter's performance, adds the report.





===========
M E X I C O
===========

UNIFIN FINANCIERA: Fitch Cuts Issuer Default Ratings to 'RD'
------------------------------------------------------------
Fitch Ratings has downgraded Unifin Financiera, S.A.B. de C.V.'s
(Unifin) Long- and Short-Term Foreign and Local Currency Issuer
Default Ratings (IDRs) to 'RD' from 'C'. The National Scale
Long-Term and Short-Term Ratings also have been downgraded to
'RD(mex)' from 'C(mex)'. In addition, Fitch has affirmed the
ratings of the company's senior notes and hybrid securities at
'C'.

KEY RATING DRIVERS

The downgrades to 'RD' for international and national scale ratings
follow Unifin's uncured payment default on some credit facilities.
Per Fitch's Non-Bank Financial Institutions Rating Criteria, the
'RD' rating indicates that Unifin has not entered into bankruptcy
filings, receivership, liquidation or a formal winding-up
procedure. Some of Unifin's bank credit facilities have a shorter
grace or cure period than the 30 days typical of local and global
bonds. As of this date, Unifin has not cured the payments of such
credit facilities due to its decision to stop paying interest and
principal on its debt and seek a negotiation of a standstill
agreement with its creditors to implement a debt restructuring.

As of today, Unifin has not announced a formal debt restructuring
process. If a debt restructuring process is initiated, it may
constitute a distressed debt exchange (DDE) under Fitch's criteria.
In this scenario, Fitch will evaluate the entity's financial
flexibility after the restructuring process is completed, which
could result in a positive rating action if the exchange improves
funding and liquidity prospects.

SENIOR DEBT

Unifin's senior global notes are rated 'C'. Fitch typically does
not assign 'RD' or 'D' to defaulted obligations, instead these are
rated in the 'CCC' to 'C' rating categories, depending on their
recovery prospects and other relevant characteristics. Fitch has
not assigned a Recovery Rating for the instrument reflecting that
the potential recovery outcome for the instrument is highly
variable.

HYBRID SECURITIES

Unifin's hybrid securities are rated 'C'. Fitch typically does not
assign 'RD' or 'D' to defaulted obligations, instead these are
rated in the 'CCC' to 'C' rating categories, depending on their
recovery prospects and other relevant characteristics. While these
instruments were previously two notches below the IDR to reflect
increased loss severity due to deep subordination and heightened
risk of non-performance relative to existing senior obligations,
this is no longer feasible due to ratings compression. Fitch has
not assigned a Recovery Rating for the instrument reflecting that
the potential recovery outcome for the instrument is highly
variable.

ESG - Management Strategy: Fitch believes Unifin faces
significantly elevated execution risks related to the company's
revised strategy and uncertainty regarding its franchise and
long-term viability. Fitch considers these execution risks to have
a negative impact on the ratings in combination with other
factors.

RATING SENSITIVITIES

Fitch will monitor the sufficiency of information for the ongoing
evaluation of the entity's creditworthiness, which could result in
a rating withdrawal at the current level if the entity does not
disclose sufficient information to Fitch and the market.

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

-- The IDRs would be downgraded to 'D' if the entity enters into
    bankruptcy proceedings, administration, receivership,
    liquidation or other formal winding-up procedures or if it
    ceases operations.

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

-- Fitch would reassess Unfin's credit profile and its debt
    issuances if a debt restructuring process is completed and
    sufficient disclosure of the company's plans and financial
    information is provided.

SENIOR DEBT and HYBRID SECURITIES

-- The company's debt ratings direction would mirror any changes
    on those of Unifin's IDRs.

ESG CONSIDERATIONS

Unifin has an ESG Relevance Score of '5' for Management Strategy
reflecting significantly elevated execution risks surrounding the
company's revised strategy and uncertainty regarding the company's
franchise and long-term viability. Fitch considers these execution
risks to have a negative impact on the credit profile in
conjunction with other factors.

Unifin has an ESG Relevance Score of '4' for Financial Transparency
due to weaker third-party disclosures relative to international
best practices. In addition, Fitch was not aware of the company's
intention to cease debt service payments and seek a restructuring
until it was publicly disclosed by the company. Fitch's considers
the limited transparency to have a negative impact on the credit
profile in conjunction with other factors.

Unifin has an ESG Relevance Score of '4' for Governance Structure
due to concerns regarding the previously-planned expansion into
non-core strategies to sustain financial metrics, which has a
negative impact on the credit profile 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.

                                 RATING            PRIOR  
                                 ------            -----
Unifin Financiera,
S. A. B. de C. V.
                       LT IDR     RD      Downgrade  C

                       ST IDR     RD      Downgrade  C

                       LC LT IDR  RD      Downgrade  C

                       LC ST IDR  RD      Downgrade  C

                       Natl LT    RD(mex) Downgrade  C(mex)

                       Natl ST    RD(mex) Downgrade  C(mex)

  senior unsecured     LT         C       Affirmed   C

  subordinated         LT         C       Affirmed   C




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

PERU: Years of Political Crises Finally Hitting Economy
-------------------------------------------------------
Reuters reports that since 2011, Peruvians have lived under seven
presidents and seen four ex-leaders detained or wanted on
corruption allegations.

Yet, in the same period, Peru has held onto the unlikely title of
the fastest growing major economy in Latin America, Reuters notes.
That period of standout growth is set to end this year, an analysis
of World Bank data and International Monetary Fund forecasts shows,
with Colombia overtaking Peru, adds the report.

Slowing growth at the world's No. 2 copper producer underscores a
painful truth: Peru's economy is finally beginning to crack after
years of increasingly disruptive political crises that have peaked
under President Pedro Castillo and a combative Congress, hurting
both private and public investment, the report relays.

According to the report, Global economic pressures like inflation
prompted by the pandemic have hit Latin America hard, but the mood
has turned particularly sour in Peru.

Investor confidence is lower than during the Great Recession and
nearing the pandemic's record low, even though business performance
continues to improve, monthly polls from Peru's central bank
analyzed by Reuters show, the report relates.



=====================
P U E R T O   R I C O
=====================

INNOVA INDUSTRIAL: Unsecured Creditors Will Get 5% of Claims
------------------------------------------------------------
Innova Industrial Contractor, Inc. filed with the U.S. Bankruptcy
Court for the District of Puerto Rico a Plan of Reorganization
dated August 15, 2022.

Innova is a corporation dedicated to light construction, commercial
cleaning, and maintenance services. Debtor does not own any real
property and leased a commercial property for the operation of its
business. Innova has the designated office at Calle 2 B#49, Paseos
las Vistas, San Juan, PR 00926.

Different catastrophic events, first Hurricanes Irma and Maria and
then the COVID-19 Pandemic, caused a considerable decreased on
Debtor's business. Consequently, Debtor had fallen behind on
certain tax obligations as well as other creditors. This petition
was filed to stay, by and through the Automatic Stay provisions of
the Code, any collection action and to provide for an orderly
restructuring of any debt allegedly owed to the IRS, Hacienda and
the other creditors.  

This Plan provides for three classes of claims and interests: (a)
allowed secured claims, (b) general unsecured claims, and (c)
equity interests. In addition, the Plan provides for the payment to
Priority Unsecured Creditors. General Unsecured Creditors, with
Allowed Claims, will receive a distribution of $2,609.00 equal to a
5.00% distribution on their allowed general unsecured claims. This
Plan also provides for the payment of administrative claims.

The Plan will treat claims as follows:

     * Class one (1) consists of the Allowed Secured Claim of the
Internal Revenue Service ("IRS"). If allowed, the IRS shall have a
Class 1 Allowed Secured Claim equal to $41,500.04. If any, the
Allowed Class 1 Secured Claim shall be satisfied via 20 quarterly
and consecutive payments in the amount of $2,363.76 with one final
payment, due on the 60th month following the day the first payment
is made, equal to any remaining principal balance. Payments shall
commence on the first day of the second month following the
Effective Date of the Plan. Allowed Class 1 Secured Claims shall be
satisfied based on a yearly rate of interest of 5.25%.

     * Class 2 Claim consists of the Allowed General Unsecured, if
any. This Class consists of the prepetition unsecured claims
against the Debtors, to the extent Allowed, if any. It is estimated
that Allowed Class 3 General Unsecured Claims will be in the amount
of $52,174.29. The Allowed Class Two Claims shall be satisfied via
a single lump  sum payment of $2,609.00 to be paid on the first day
of the second month following the Effective Date of the Plan. If
claims are Allowed as filed, the Allowed Class Two Claims will
receive a distribution equal to 5.00% of their Allowed Claims.

The Plan establishes that the Plan will be funded from the proceeds
generated by the operating business of the Debtor, Innova. It
generally consists of the Debtor's funds generated from the
rendered services of light construction, commercial cleaning, and
maintenance. The Debtor will contribute its cash flow to fund the
Plan commencing on the Effective Date of the Plan and continue to
contribute through the date that Holders of Allowed Class 1 and
Class 2 Claims receive the payments specified for in the Plan.

A full-text copy of the Plan of Reorganization dated August 15,
2022, is available at https://bit.ly/3QS0SED from PacerMonitor.com
at no charge.

Debtor's Counsel:

William Rivera Velez, Esq.
The Batista Law Group, PSC
P.O. Box 191059
San Juan, PR 00919
Telephone: (787) 620-2856
Facsimile: (787) 777-1589
E-mail: wrv@batistasanchez.com

              About Innova Industrial Contractor

Innova Industrial Contractor, Inc. filed a petition under Chapter
11, Subchapter V of the Bankruptcy Code (Bankr. D.P.R. Case No.
22-01375) on May 16, 2022, listing as much as $1 million in both
assets and liabilities. Jose A. Diaz Crespo serves as Subchapter V
trustee.

Jesus E. Batista Sanchez, Esq., at The Batista Law Group, PSC and
Jimenez Vazquez & Associates, PSC serve as the Debtor's legal
counsel and accountant, respectively.



                           *********


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
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Chapman, Editors.

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

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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