/raid1/www/Hosts/bankrupt/TCRLA_Public/221018.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Tuesday, October 18, 2022, Vol. 23, No. 202

                           Headlines



A R G E N T I N A

ARGENTINA: Mulls Tighter Wheat Export Controls as Crop Withers


B R A Z I L

BRAZIL: Lula Plans Broad Consumer Debt Renegotiation, Adviser Says
PRUMOPAR: Fitch Affirms 'BB' on Fixed Rate USD50MM Secured Notes


C H I L E

CHILE: Signals End of Tightening Cycle After Half-Point Rate Hike


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Dependence on Imports Delays Cut in Inflation


M E X I C O

OPERADORA DE SERVICIOS MEGA: S&P Cuts ICR to 'B', Outlook Negative


P E R U

AUNA SAA: Fitch Lowers LongTerm IDR to 'B+', Outlook Stable


T R I N I D A D   A N D   T O B A G O

TRINIDAD & TOBAGO: PM Says Chinese Contractors Make $2.5BB Claim


V E N E Z U E L A

PDVSA: Validity of 2020 Bonds to Hinge on Top State Court

                           - - - - -


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A R G E N T I N A
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ARGENTINA: Mulls Tighter Wheat Export Controls as Crop Withers
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Tarso Veloso & Jonathan Gilbert at Bloomberg News reports that
Argentina is considering tightening the screws on wheat exports as
a drought withers plants that are harvested at year-end and food
inflation spirals, according to people with knowledge of the
matter.

The government has convened a meeting with exporters because of
concerns among domestic millers that there won't be enough wheat
available locally, said the people, who asked not to be identified
discussing confidential emails, according to Bloomberg News.

A brutal season of drought and frosts appears to be forcing the
government's hand as it juggles efforts to shield local consumers
from surging prices with the need to replenish hard currency
reserves, the report notes.  Further restrictions on Argentine
wheat would add to global tightness with US exports at the lowest
in 50 years and the war in Ukraine continuing to hamper shipments,
the report relays.

The Agriculture Secretariat didn't immediately comment.  The
nation's crop export and crushing group Ciara-Cec confirmed the
government had convened a meeting amid worries by millers, the
report discloses.

Authorities want to discuss what can be done to ease demand from
international buyers, including pushing back shipments of 8.8
million metric tons of wheat already on an official crop-export
register, the report says.  Another option would be to stop traders
from surpassing nine million tons on the register until the extent
of production losses is fully known, the report relays.

Argentina - a top-seven global wheat supplier whose biggest
customer is neighboring Brazil - previously applied an export quota
to the 2022-2023 harvest of 10 million tons, the report relays.

The Rosario Board of Trade, which once predicted a crop of 19
million tons, now says plants will yield less than 16 million tons,
the report adds.

                   About Argentina

Argentina is a country located mostly in the southern half of
South America.  Its capital is Buenos Aires. Alberto Angel
Fernandez is the current president of Argentina after winning  
the October 2019 general election. He succeeded Mauricio  
Macri in the position.

Argentina has the third largest economy in Latin America.  The
country's economy is an upper middle-income economy for fiscal
year 2019, according to the World Bank. Historically, however,  
its economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.

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

As reported by The Troubled Company Reporter - Latin America on
Aug. 12, 2022, S&P Global Ratings affirmed its foreign and
local-currency sovereign credit ratings of 'CCC+/C' on the
Republic of Argentina. The outlook remains stable. S&P also
affirmed its national scale 'raBBB-' rating and its 'CCC+' transfer
and convertibility assessment. S&P said the stable outlook reflects
the challenges in managing pronounced economic imbalances ahead of
the 2023 national elections given disagreement on policy within the
government coalition and financing pressures in the local market.

Last April 14, 2022, Fitch Ratings affirmed Argentina's Long-Term
Foreign and Local Currency Issuer Default Ratings (IDR) at 'CCC'.
Fitch said Argentina's 'CCC' ratings reflect weak external
liquidity and pronounced macroeconomic imbalances that undermine
debt repayment capacity, and uncertainty regarding how much
progress can be made on these issues under a new IMF program.
On July 19, 2022, Fitch Ratings placed Argentina's Long-Term
Foreign Currency Issuer Default Rating (IDR) and Long-Term Local
Currency IDR Under Criteria Observation (UCO) following the
conversion of the agency's Exposure Draft: Sovereign Rating
Criteria to final criteria. The UCO assignment indicates that
ratings may change as a direct result of the final criteria. It
does not indicate a change in the underlying credit profile, nor
does it affect existing Rating Outlooks.

Moody's credit rating for Argentina was last set at Ca on
Sept. 28, 2020.

DBRS has also confirmed Argentina's Long-Term Foreign Currency
Issuer Rating at CCC and Long-Term Local Currency Issuer Rating at
CCC (high) on July 21, 2022.




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B R A Z I L
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BRAZIL: Lula Plans Broad Consumer Debt Renegotiation, Adviser Says
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globalinsolvency.com, citing Reuters, reports that Brazilian
presidential candidate Luiz Inacio Lula da Silva has proposed a
broad consumer debt renegotiation program backed by government
guarantees, aimed at relief for lower-income families if he wins an
Oct. 30 runoff election, a senior adviser said.

Economist Guilherme Mello, who is advising Lula's Workers Party,
told Reuters the government would partially guarantee
renegotiations of up to 95 billion reais ($18.2 billion) of
non-bank debts such as power, water, retail and phone bills, for
consumers earning up to 3,600 reais ($677) per month, according to
globalinsolvency.com.

The first step of the proposed program, called "Desenrola Brasil,"
would be to build credit bureaus centralizing data on those
consumer debts to coordinate discounts from creditors, the report
notes.

Renegotiated debts would be partially covered by a government
guarantee fund of 7-16 billion reais, Mello said, the report
relays.

The details of the plan, described broadly in Lula's leftist
presidential platform, come after right-wing incumbent Jair
Bolsonaro announced a debt renegotiation program for some 4 million
clients of state bank Caixa Economica Federal, the report notes.

Nearly 70 million Brazilians have been blacklisted by credit
scoring agencies after the pandemic and surging inflation battered
families' budgets, weighing on an economic rebound, the report
adds.

                          About Brazil

Brazil is the fifth largest country in the world and third largest
in the Americas.  Jair Bolsonaro is the current president, having
been sworn in on Jan. 1, 2019.

As reported in the Troubled Company Reporter-Latin America on
July 18, 2022, Fitch Ratings has affirmed Brazil's Long-Term
Foreign Currency Issuer Default Rating at 'BB-' and revised the
Rating Outlook to Stable from Negative.

On June 17, 2022, S&P Global Ratings affirmed its 'BB-/B' long-
and short-term foreign and local currency sovereign credit
ratings on Brazil.

Moody's Investors Service also affirmed on April 15, 2022,
Brazil's long-term Ba2 issuer ratings and senior unsecured bond
ratings, (P)Ba2 senior unsecured shelf ratings, and maintained the
stable outlook.

DBRS Inc. confirmed Brazil's Long-Term Foreign and Local Currency
Issuer Ratings at BB (low) on Aug 12, 2022. At the same time,
DBRS Morningstar confirmed the Federative Republic of Brazil's
Short-term Foreign and Local Currency Issuer Ratings.


PRUMOPAR: Fitch Affirms 'BB' on Fixed Rate USD50MM Secured Notes
----------------------------------------------------------------
Fitch Ratings has affirmed the 'BB' rating of the fixed-rate USD
350 million senior secured notes issued by Prumo Participacoes e
Investimentos S.A. (Prumopar). The Rating Outlook is Stable.

RATING RATIONALE

The rating reflects Prumopar's stable cash flow, derived from
distributions from Ferroport Logistica Comercial Exportadora S.A.
Ferroport benefits from a long term take-or-pay (ToP) agreement
with a creditworthy counterparty and is a strategic asset for Anglo
American plc as the sole export terminal for the iron ore produced
by its Brazilian subsidiary's mines in Minas Gerais state. Revenues
and debt service are linked to U.S. dollars (USD), while
operational expenses are linked to Brazilian Reais (BRL), exposing
the transaction to BRL appreciation.

The notes have fixed rate and include a balloon payment at maturity
in 2031. In Fitch's scenarios, the refinancing risk is partially
mitigated by cash sweep mechanism that reduces the balloon payment
to 4.3% of total debt (USD 15 million), as well as the eight years
ToP tail in Fitch's Rating Case. Under the rating case the minimum
Project Life Coverage Ratio (PLCR) is 1.6x in 2023, and by the time
of the refinancing in 2031 the projected PLCR is 4.3x, which
demonstrates that the company has the ability to refinance its
obligation. Peak leverage, measured by Net Debt over Cash Flow
Available for Debt Service (CFADS), is 6.2x in 2024.

Despite the metrics being commensurate with higher rating
categories, the rating is constrained by Brazil's country ceiling,
Ferroport's short track record of operations without disruption,
and by a residual exposure to foreign exchange risk.

KEY RATING DRIVERS

Dedicated Terminal [Revenue Risk: Volume - Midrange]:

Ferroport has operated since 2014 and benefits from a long-term ToP
agreement with Anglo American Minerio de Ferro Brasil S.A. (AAMFB),
subsidiary of Anglo American plc (BBB/Positive). It is a small port
of call, built to suit Anglo's Minas-Rio iron-ore project and
handles a specialized type of cargo, with its inbound market access
highly dependent on the slurry pipeline from the mine into the
port.

Long Term Take-or-Pay Agreement [Revenue Risk: Price - Stronger]:

The ToP agreement sets forth annual tariffs readjustments that
follow two-thirds of U.S. inflation, measured by Producer Price
Index (PPI) for Industrial Commodities, and it has been readjusted
in a timely manner since the port began operations. Fitch's cases
do not include interruptions similar to the suspension of payments
under the ToP agreement that occurred in 2018 concurrent with leaks
in the slurry pipeline.

The revenues and debt are U.S. dollar-denominated, but operational
costs and expenses are denominated in BRL, exposing the transaction
to Brazilian Real appreciation scenarios when margin EBITDA is
reduced due to higher USD equivalent operational costs and
expenses. Ferroport is also entitled to collect fees, modest in
Fitch's Rating Case, based on the number of vessels berthing, oil
transhipment volume and berthing time.

Adequate Infrastructure [Infrastructure Development & Renewal -
Midrange]:

Ferroport's facilities are new, and Fitch expects key equipment to
have long useful lives. No replacement requirements are foreseen
throughout the life of the transaction. Planned investments
comprise predominantly channel dredging, increase of stacking
capacity and maintenance works to preserve operational efficiency
and environmental compliance.

The ToP establishes the potential for expansion, and Ferroport has
the option to agree to expand; if it does, the contract establishes
an additional tariff for this incremental volume, calculated in
order to assure an Internal Rate of Return (IRR) of 15%. Otherwise,
AAMFB has the option to make required the capex itself. However, as
per the transaction documents, capex in excess of USD 20 million
requires bondholder approval.

Refinance Risk Partially Mitigated by Cash Sweep [Debt Structure -
Midrange]:

Rated debt is senior at Prumopar's level but structurally
subordinated to Ferroport. Cash flows to service debt will come
from the payment of intercompany loans and dividend distributions.
Ferroport does not hold financial debt; its capex was funded
through intercompany loans from Prumopar and Anglo American.
Additional indebtedness is limited to USD 50 million, according to
Ferroport's Shareholders Agreement (SHA), which also requires the
distribution of all cash available at Ferroport.

The rating reflects the clause of the SHA, which may result in the
suspension of Prumopar's voting rights at Ferroport if the
bankruptcy of any member of Prumopar's shareholder group is not
enforceable under Brazilian law, assuring Prumopar's voting power
against new indebtedness at the operational company, as per the
transaction's documents. This view is supported by a legal opinion
on the subject requested by Fitch.

The debt has a fixed interest rate and its legal amortization
comprises a balloon payment of up to 55.1% (USD 193 million) in
2031. The debt structure also contemplates a target amortization
schedule, set to allow for the debt to be fully amortized in 12
years, under the issuer's case, through a cash sweep mechanism. In
Fitch's Rating Case, the balloon payment is for 6.3% (USD 22
million) of the initial debt quantum. The debt structure also
counts with a six-month offshore DSRA and lock-up provisions that
require compliance with target debt balance coupled in order for
Prumopar to be allowed to distribute dividends.

Financial Profile

Under Fitch's Base and Rating cases, a balloon payment is due in
2031, indicating a Loan Life Coverage Ratio (LLCR) below 1.0x.
Refinancing risk is mitigated by a PLCR, which considers the cash
flows available for debt service until the end of ToP agreement, of
4.3x in 2031 in Fitch's Rating Case. Prumopar's Net Debt-to-CFADS
peak is 6.2x in 2024, under Fitch's Rating Case, a comfortable
level in light of the eight-year ToP tail. Credit metrics are
somewhat strong for the rating level, which is constrained by
Brazil's country ceiling, the history of some operational
disruptions and a residual exposure to foreign exchange risk.

PEER GROUP

Prumopar's closest peer is North Queensland Export Terminal Pty Ltd
(NQXT) (senior secured notes; BB+/Stable). Both are single-purpose
mineral export terminals, comprise medium- to long-term ToP
contracts and present refinance risk. The NQXT's rating, two
notches above Prumopar's, reflects a better set of metrics of
leverage, DSCR and PLCR). Additionally, Prumopar's rating is
constrained by Brazil's country ceiling, Ferroport's short track
record of operations without disruption, and by a residual exposure
to foreign exchange risk.

Prumopar presents leverage comparable to EP BCo S.A. (EP)
(Long-Term Issuer Default Rating (IDR); BB-/Negative), the
financial vehicle and sole shareholder of Euroports Holdings Sarl
(Euroports). Euroports is a large, deep-sea port terminal operator
in Europe and China that presents a peak-leverage in Fitch's Rating
case of 6.0x, while Prumopar's is 6.2x. The Negative Outlook on
EP's reflects the continued uncertainty around Euroports' expected
deleveraging path following the around EUR40 million of additional
debt. Although EP has lower leverage, Prumopar has a ToP agreement
that provides more resilience in revenues and Prumopar's debt is
fixed-rate, while EP's presents exposure to floating rates.

RATING SENSITIVITIES

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

- Operational disruption negatively impacting the cash flows;

- A negative rating action on Brazil's sovereign rating.

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

- Achievement of the target amortization schedule in a sustained
basis;

- Favorable track record of operations without disruption;

- A positive rating action on Brazil's sovereign rating.

TRANSACTION SUMMARY

Prumopar is a wholly-owned subsidiary of Prumo Logistica S.A. that
holds a 50% share of Ferroport, a joint venture between Prumopar
and Anglo American Investimentos Minerio de Ferro Ltda., a
subsidiary of Anglo American plc. Ferroport is the exclusive export
terminal for iron ore produced by Anglo's Minas-Rio project located
in Minas Gerais.

Ferroport is the owner of an area of 300 hectares in the Acu Port,
where iron ore is processed, handled and stored. The facilities
include an offshore structure comprising an access bridge, access
canal, breakwater and two berths for iron ore loading. Ferroport
benefits from a 25-year ToP with AAMFB, until 2039, for 26.6
million wet metric tons per year.

Ferroport was also responsible for the construction of the T1 port
terminal and signed a Port Access Agreement with AAMFB and Vast
Infraestrutura S.A. (owner of the oil transshipment terminal in the
T1 of Acu Port), also valid until 2039, which establishes that
Ferroport is responsible for the maintenance of T1 offshore
infrastructure, including the dredging of access channel and
breakwater, and will charge port fees based on the number of
vessels berthing, oil transshipment volume and berthing time.

Ferroport is the last line in the logistics chain and an integral
part of Anglo's Minas-Rio iron-ore project, which comprises 5.3
billion tons of mineral resources. The Minas-Rio project is located
in the States of Minas Gerais and Rio de Janeiro. It is 100% owned
by Anglo American plc, and it is composed of integrated systems of
open pit mines, a beneficiation plant, a 529 km slurry pipeline and
lastly, Ferroport.

CREDIT UPDATE

Anglo American's ToP provides for resilient revenues regardless the
volume handled, therefore, Prumopar was not affected by the
coronavirus outbreak. Ferroport handled 23.8 and 8.9 million tons
of iron ore in 2021 and in the first half of 2022, respectively.

Ferroport's adjusted EBITDA of 2021 has increased 7.3%, which has
enabled Ferroport to distribute to Prumopar and Anglo-American BRL
471.5 million in intercompany loan. For the first half of 2021,
EBITDA decreased 5.5% in relation to the same period of the
previous year. Intercompany loan and dividends payments totaled BRL
214.6 million.

FINANCIAL ANALYSIS

The main assumptions of Fitch's Base Case include:

- US PPI: 7.0% in 2022, 3.6% in 2023, 2.7% in 2024 and 2.0% from
2025 onwards;

- Foreign Exchange Rate (BLR/USD): 5.20 in 2022, 5.20 in 2023, 5.20
in 2024, and depreciation according with the IPCA (Brazilian CPI)
and PPI variation from 2025 onwards;

- Volume: minimum guarantee throughput of 26.6 million tons per
year;

- Tariffs: adjusted according ToP agreement (67% of US PPI);

- Operational and Capital expenses: 5% higher than sponsor's case;

- Transshipment volume: 70 services per year.

The same assumptions were used in the rating scenario, with the
exception of:

- Operational and Capital expenses: 10% higher than sponsor's
case;

- Transshipment volume: 63 services per year.

In Fitch's Base Case, minimum PLCR is 1.6x, considering the ToP
tenor. Maximum leverage (net debt/CFADS) is 5.8x in 2024. In 2031,
the PLCR is 5.6x and the debt is fully amortized considering the
target schedule. In Fitch's Rating Case, minimum PLCR is 1.6x, also
considering the ToP tenor. Maximum leverage (net debt/CFADS) is
6.2x in 2024. In 2031, the PLCR is 4.3x and the debt's balloon is
4.3%.

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.




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C H I L E
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CHILE: Signals End of Tightening Cycle After Half-Point Rate Hike
-----------------------------------------------------------------
globalinsolvency.com, citing Bloomberg News, reports that Chile's
central bank raised its interest rate by 50 basis points, saying
borrowing costs have reached the highest level of its tightening
cycle and that they will remain steady to ensure inflation eases to
target.

Policymakers voted unanimously to lift borrowing costs to 11.25%,
as expected by most analysts in a Bloomberg survey, according to
globalinsolvency.com.

In a statement, board members reaffirmed their commitment "to
conduct monetary policy with flexibility" to put inflation on a
path to their 3% goal, the report notes.

"The Board estimates that the monetary policy rate has reached its
maximum level of the cycle that began in July 2021, and that it
will remain there for as long as necessary to ensure the
convergence of inflation to the target over the two-year policy
horizon," they wrote, the report discloses.

The bank led by Rosanna Costa concluded a tightening cycle that
added 10.75 percentage points to borrowing costs since July 2021,
after inflation eased for the first time in 19 months in September,
the report relays.

Fuel cost increases have moderated, though economic activity has
fared better than expected and the peso has weakened, the report
relays.  As a result, both policymakers and investors in central
bank surveys see inflation remaining above target this year and
next, the report adds.




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D O M I N I C A N   R E P U B L I C
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DOMINICAN REPUBLIC: Dependence on Imports Delays Cut in Inflation
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Dominican Today reports that inflation in the Dominican Republic
briefly reached double digits for roughly five months before
falling to its lowest point in August since 8.98 in February of
this year.  The current yearly rate is 8.80 from August 2021 to
August 2022, according to Dominican Today.  But the International
Monetary Fund is not relieved by its steady decrease (IMF), the
report relays. The financial body believes that the less
diversified and more import-dependent economies of the Caribbean,
Central America, and notably "Panama, the Dominican Republic,
combined with Bolivia, Ecuador, Paraguay, and Uruguay" render them
more vulnerable to inflation, the report notes.

According to sources, early 2022 saw a significant revival in the
economy of Latin America and the Caribbean, the report relays.
However, there was a noticeable slowdown in economic activity as a
result of the conflict between Russia and Ukraine, the report
notes.  This translates into prolonged inflation, which, in spite
of tightening global financial conditions and a decline in
commodity prices, will test the region's resilience, according to
the IMF, the report discloses.

Although Panama, Central America, and the Dominican Republic have
already surpassed pre-pandemic output levels, this is mostly
because of the United States' quick recovery, the report says.  But
according to a new IMF research, smaller economies face greater
difficulties from rising inflation since "they are less
diversified, more dependent on imports, and have fewer policy
levers at their disposal," the report relays.  Henri V. Hebrard, an
economist, notes that diversification should be distinguished from
dependence on imports in light of this scenario, the report notes.
He remarked, "Those are a bit different things, the report says.

He clarified that the Dominican economy is "extremely well
diversified" when compared to other countries in the area, the
report discloses.  The fact that it is an island, he noted, means
that it has a "very heavy dependence on imports," which is "an
inflation risk element," 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.




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M E X I C O
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OPERADORA DE SERVICIOS MEGA: S&P Cuts ICR to 'B', Outlook Negative
------------------------------------------------------------------
S&P Global Ratings lowered its long-term global scale issuer credit
rating on Operadora de Servicios Mega S.A. de C.V. SOFOM E.R.
(GFMEGA) to 'B' from 'B+'. S&P also lowered its national scale
ratings to 'mxBB+/mxB' from 'mxBBB/mxA-2'. In addition, S&P lowered
its issue-level rating on the company's senior unsecured notes to
'B' from 'B+'. The outlook on the long-term ratings is negative.

The positive CRA reflected that the company's funding profile was
strengthening based on a gradual widening of its funding
diversification. However, S&P doesn't expect this will materialize
in the next 12 months because of weakening economic conditions,
tightening financing conditions, and investors' general risk-averse
mood toward Mexican nonbank financial institutions (NBFIs). The
removal of the positive CRA also reflects a deterioration of
GFMEGA's NIMs and profitability, which stems from the weakening
economic prospects for the next 12 months and rising interest
rates.

S&P said, "Because we expect financing conditions to become more
difficult for Mexican NBFIs (including GFMEGA), we think the
company will face hurdles obtaining new, stable, and unsecured
funding sources to continue expanding its business operations. As
of August 2022, GFMEGA's funding is still concentrated in its
international unsecured bond due in 2025 that accounts for 49% of
the funding base. The domestic unsecured green bond accounts for
18% of the base, and the remaining 33% comes from facilities with
several national and international credit institutions.

"We believe that the higher funding costs--due to rising interest
rates and lower investor appetite--that GFMEGA will face will
pressure its margins. In addition, the lender's interest income
hasn't grown even though the loan portfolio expanded almost 24% in
the last 12 months. In our opinion, this will continue eroding the
company's profitability, which already compares unfavorably with
those of peers in the Mexican leasing industry. As of June 30,
2022, GFMEGA's NIMs were 0.2% versus 3.3% as of December 2021. The
higher funding costs and the negative carry resulting from its
solid cash position (equivalent to MXN60 million) have hit margins.
However, even without the effect of the negative carry, the
company's NIMs would be 0.5%. GFMEGA raised its lending rates to
transfer the increase in interest rates to its clients, but we
don't expect this to have a significant impact, considering that
this will only apply to new loans, and we expect interest rates
will continue to rise. Therefore, we anticipate that the company's
NIMs for the next 12 months will stay below 1%.

"We forecast GFMEGA's risk-adjusted capital (RAC) ratio to hover
around 7.5% for the next 12 to 18 months. However, this ratio could
be pressured downward if the loan portfolio grows above our
expectations and isn't compensated by internal capital. The latter
could happen if the effect on the company's margins is deeper than
we expect, or if asset quality worsens, resulting in higher
provisions and hurting GFMEGA's bottom-line results. Although
GFMEGA's delinquency levels remain manageable and in line with
historical figures, we believe that the payment capacity of its
clients could be damaged amid the difficult economic conditions."




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P E R U
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AUNA SAA: Fitch Lowers LongTerm IDR to 'B+', Outlook Stable
-----------------------------------------------------------
Fitch Ratings has downgraded Auna S.A.A.'s (Auna) Long-Term Foreign
Currency (FC) and Local Currency (LC) Issuer Default Ratings (IDRs)
to 'B+' from 'BB-' following the completion of the acquisitions of
Organización Clínica América (OCA) in Mexico and IMAT Oncomedica
(IMAT) in Colombia for a total cost of USD822 million, which will
be partially funded by a shareholder capital contribution (USD342
million). Fitch has also downgraded Auna's unsecured notes to
'B+'/'RR4' from 'BB-'. The Rating Watch Negative has been resolved.
The Rating Outlook is Stable.

The downgrade reflects Auna's pressured leverage ratios, despite
recent improvements, and higher refinancing risks following the
assumption of around USD406 million of secured bridge loans. The
company's aggressive growth strategy and the execution/integrations
risks, which is somewhat offset by the company's track record of
integrating assets, are also incorporated into the analysis. On
July 26, 2022 Fitch placed Auna's ratings on Rating Watch Negative
following the company`s announcement of the acquisitions on top of
already weak credit metrics for the rating category.

KEY RATING DRIVERS

Leverage to Remain Pressured; Refinancing Risks: Despite the equity
support to help fund the acquisition, Auna's credit
risks/refinancing risks have increased from previous expectations.
On a proforma basis, including the LTM EBITDA for the acquired
assets, Fitch expects AUNA`s net leverage to be around 5.0x by
year-end and to move to below 4.5x consistently only by 2024. As of
Dec. 31, 2022, Auna's net leverage is expected remain high at 5.9x,
including only three quarters of IMAT and one quarter of OCA.
During 2020 and 2021, Auna's net leverage was 5.4x and 6.3x,
respectively.

Auna has an important challenge to address its short- to
medium-term refinancing risks under more uncertain debt markets and
tighter financing conditions. This refers to the USD406 million
one-year secured bridge loans and its USD300 million unsecured
bonds due 2025. Fitch`s base case scenario does not incorporate any
dividend pressure from Auna in terms of its shareholder's level in
the face of the current equity support. Any deviation from that
could bring further pressure to the ratings.

Acquisitions to Benefit Business Profile: The acquisitions in
Colombia and Mexico are expected to improve Auna's business risks
with improvement in diversification, scale and profitability. Auna
acquired a controlling stake in IMAT, a leading healthcare group in
Monteria, Colombia. It specializes in oncology, cardiology and high
complexity services, and, with upcoming expansions, is expected to
add approximately 427 beds in two hospitals. Following these
expansions, Auna's total operating beds in Colombia would increase
to 1.062 (484 in Peru).

Auna has also acquired 100% ownership stake in OCA, a leading
healthcare group in Mexico providing premium healthcare and
oncological services in Monterrey. OCA operates three
high-complexity hospitals representing the largest infrastructure
footprint in Monterrey´s healthcare market, with 550 operating
beds and approximately 35% market share based on number of beds.

On a proforma basis, around 42% of Auna's revenue is expected to be
generated in Peru, 33% in Colombia and 26% in Mexico. This
represents an improvement in revenue diversification compared with
2021, when 65% of Auna's revenues were originated in Peru and 35%
in Colombia. The hospital operations in Monterrey offer a
high-quality asset base with a track record of robust operating
margins (average of 34%). Fitch foresees Auna`s consolidated EBITDA
margins moving to 22% by 2024, an improvement from its historical
14% pre-pandemic levels and 10.5% average during 2020-2021.

Operating Cash Flow Improving: Fitch expects Auna to generate
adjusted EBITDA (IFRS adjusted) of PEN439 million in 2022 and
around PEN719 million in 2023. Operating cash flow should be around
PEN151 million in 2022 and PEN309 million in 2023, supporting a
neutral FCF in 2022 and positive FCF of PEN79 million in 2023. The
company is expected to focus on maintenance capex and possibly
organic growth and continue to seek opportunities to improve
profitability. Fitch incorporates around PEN150 million and PEN230
million of capex in 2022 and 2023, respectively.

Solid Business Position: Auna operates through three business
segments: (1) Oncosalud Peru, (2) Healthcare Services in Peru,
which consists of its Auna Peru network, and (3) Healthcare
Services in Colombia, which consists of its Auna Colombia network.
In Peru, Auna has a solid business position as one of the largest
and most recognized players in the health care industry due to its
highly regarded oncology services. Oncosalud is considered the
leading brand in Peru, maintaining approximately 30% market share
in terms of private insurance plan members with 1,039,000 members
as of June 30, 2022. This market position makes Oncosalud the
largest single private health care plan in the country. Auna has
achieved integration in its Peruvian oncology platform through its
ownership and management of hospitals and clinics in all of the
major cities in the country.

DERIVATION SUMMARY

Auna's ratings reflect the company's strong market position as one
of Peru's largest and well-known, reputable health care providers
and its growing presence in Colombia, and more recently in Mexico.
The company's current capital structure and financial flexibility
are pressured by the recent acquisitions and challenges to
refinance short term debt, representing an important factor for its
'B+'. Auna's strong brand, reputation in the industry, and
significant R&D platform are among multiple competitive advantages
translating into strong relationships with payers and bargaining
ability with third parties. Auna is viewed as weaker when compared
with regional peers in terms of business scale and size of
coverage, yet recent acquisitions and diversification movements are
positive for its business profile.

Rede D'Or Sao Luiz S.A. (BB/Stable) and Diagnosticos Da America
S.A. - DASA (DASA; AAA[bra]), comparably with Auna, both have
strong relationships with payers, as well as providers and
insurance companies, in Brazil due to the two companies' positive
brands and reputations. In terms of capital structure, Auna has
projected higher leverage than both. Although Auna has comparable
business risk with many players in the health care industry, the
company benefits from the growing Peruvian and Colombian operating
markets with predominantly middle-class demographics, and its
strong asset base and market-share in Monterrey, Mexico.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within the Rating Case for the Issuer
Include (Auna):

- Revenue growth reflecting ongoing acquisitions, reaching around
PEN3.4 billion in 2023 with a full year of operations of the
acquired assets;

- EBITDA margins of around 21%-22% for 2023-2024;

- Average capex of PEN220 million during 2022-2024;

- No dividend payment during 2022-2024.

KEY RECOVERY RATING ASSUMPTIONS

The recovery analysis assumes that Auna would be considered a going
concern in bankruptcy and that the company would be reorganized
rather than liquidated. Fitch has assumed a 10% administrative
claim.

Going-Concern Approach: Auna's going-concern EBITDA is based on a
proforma considering the recent acquisitions. The going-concern
EBITDA estimate reflects Fitch's expectation of a sustainable,
post-reorganization EBITDA level, upon which Fitch's bases the
valuation of the company. The EV/EBITDA multiple applied is 6.5x,
reflecting Auna's strong brand and market position in the regions
it operates.

Fitch applies a waterfall analysis to the post-default enterprise
value (EV) based on the relative claims of the debt in the capital
structure. The agency's debt waterfall assumptions take into
account the company's total debt at June 30, 2022, plus the new
secured bridge loans. These assumptions result in a recovery rate
for the unsecured bonds within the 'RR4' range, which, per Fitch's
criteria, leads to equalization of the rating with the IDR. In a
scenario of refinancing of the bridge loans with permanent secured
loans, Fitch could reassess the actual structural subordination of
the current unsecured bonds.

RATING SENSITIVITIES

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

- Fitch's adjusted EBITDA margin consistently above 22%;

- Fitch's net adjusted leverage ratio consistently below 4.5x;

- Well-spread debt maturity schedule, with limited recurring
short-term debt.

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

- Net adjusted leverage consistently above 5.0x from 2022 on;

- Inability to reduce short term refinancing risks;

- Maintenance of aggressive growth strategy limiting improvements
in capital structure as expected;

- Major legal contingencies issues that represent a disruption in
the company's operations or a significant impact to its credit
profile;

- In a scenario of refinancing of the bridge loans with permanent
secured loans, Fitch could reassess the actual structural
subordination of the current unsecured bonds.

LIQUIDITY AND DEBT STRUCTURE

High Refinancing Risks: As of June 30, 2022, Auna had PEN138
million of cash and cash equivalents, PEN653 million of short-term
debt, and total debt of around PEN2 billion per Fitch`s criteria,
which excludes leases. On a proforma basis, following the
transaction, Fitch expects the company to have around PEN1.6
billion secured bridge-loans to refinance by October 2023, while
facing ongoing working capital lines of PEN121 million in the short
term, PEN162 million in 2023, PEN32 million in 2024, and another
sizable bullet payment of PEN1.2 billion of its unsecured notes in
2025. Remaining working capital lines are more manageable at PEN50
million per year by 2025-2027.

Fitch views the company's foreign exchange exposure as moderate as
a result of its financial policy to hedge its USD300 million
unsecured notes due 2025. Around 88% of Auna's debt as of June 30,
2022 was U.S.-dollar-denominated, while the company's cash flow
generation was primarily in local currencies.

ISSUER PROFILE

Auna S.A. is one of the largest and most recognized players in the
Peruvian health care industry, with a growing presence in
Colombia's health care industry, and more recently in Mexico. The
company offers oncology and general health care plans and operates
hospitals and clinics.

ESG CONSIDERATIONS

Auna S.A.A. has an ESG Relevance Score of '4' for Management
Strategy management's appetite for debt financed growth (albeit
adding diversification to the business) that underscores higher
than expected event risk and potentially higher comfort with
elevated/longer periods of leverage than anticipated, which has a
negative impact on the credit profile, and is relevant to the
ratings in conjunction with other factors.

Auna S.A.A. has an ESG Relevance Score of '4' for Financial
Transparency as financial transparency/reporting continues to be
relatively weaker than peers, which has a negative impact on the
credit profile, and is relevant to the ratings in conjunction with
other factors.

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

   Debt                        Rating        Recovery  Prior
   ----                        -------       --------  ------
Auna S.A.A.          LT IDR      B+  Downgrade           BB-

                     LC LT IDR   B+  Downgrade           BB-

   senior unsecured  LT          B+  Downgrade   RR4     BB-




=====================================
T R I N I D A D   A N D   T O B A G O
=====================================

TRINIDAD & TOBAGO: PM Says Chinese Contractors Make $2.5BB Claim
----------------------------------------------------------------
Trinidad Express reports that government has been hit with a TT$2.5
billion (US$380 million) claim from the Chinese contractors of the
aluminum smelter plant as a result of the cancellation of the
project in 2010.

This was revealed by Prime Minister Dr Keith Rowley at the Diego
Martin Constituency's 49th annual conference.

He said the Kamla Persad-Bissessar government "improperly shut down
the project," according to Trinidad Express.

The Prime Minister said in an attempt to diversify the economy, the
Manning Government decided to build an aluminum smelter plant but
"some people who were comfortable where they were and didn't care
who got a job, resisted, saying that the smelter would kill us"
(the citizens of T&T)", the report notes.  He said Bahrain, which
is the same size as Trinidad and Tobago, was one of the world's
leading producers of aluminum and was making money and living at
one of the highest standards in the world, selling the same
aluminum that they (those people who opposed the plant) said would
have killed people in Trinidad and Tobago, the report discloses.

The Prime Minister said the UNC came into office and shut down the
plant and "chased out" the contractor, the report relays.  "While
they were in office, the contractor kept making their claims for
that action. It (the UNC Government) ignored it, they danced around
it, they did everything except deal with it because they didn't
want you (the people) to know that there was a cost to that
political action," he said, the report says.

The Prime Minister said it took a while for the claims to start
coming after the PNM took office, but now the Chinese contractor
was pressing for their compensation, the report notes.  He said
"the project was well on the way, in fact the power station TGU was
built and ready to be used, the report discloses.  That power was
supposed to be going to the smelter (plant) but since there was no
smelter, after years of wasting money we got it (TGU) into the
national grid, the report relays.  You know what the claim is, now
that the Chinese company has said 'enough is enough, time's up, we
want our money' and they intend to prosecute it now? The claim is
for US$380 million, the report relays.  That is TT$2.5 billion, for
having improperly shut down a project with a contract and for which
there were works taking place and the project was politically
extinguished," the report notes.

Saying that the UNC was making a song and dance about Vincent
Nelson's $150 million legal claim, the Prime Minister asked: "You
think the people who did that (with the smelter plant) have any
interests in (legal) claims and in your money, the report
discloses.  And to see her talking about some man, 'some convict'
and a claim of $150 million, the report relays.  I am talking here
about US$380 million with documents and a contractor which says
that T&T owes this money for work or for circumstance where there
is a contract to be pursued, the report relays.  And that is left
for the PNM to deal with, because we are dealing with it now. And
at the appropriate time we will approach the Parliament and give
all the details surrounding this," the report says.

                            Background

Alutrint and the China National Machinery and Equipment Import and
Export Corp signed an agreement in 2005 to build a US $540 million
aluminium complex that would have produced 125,000 tonnes per year,
the report notes.  Alutrint was a joint venture between the NGC and
the Sural Group of Venezuela, the report relays.

The deal included several downstream projects that would use the
output, including an automotive parts and car wheel plant, rod mill
and wire and cable plants, the report discloses.  There was
vociferous protest from several groups, including environmentalist
Wayne Kublalsingh (who described the project as an "ecological
nightmare") and other activists who feared health and environmental
effects, the report says.

In June 2009, High Court judge Mira Dean-Armourer quashed the
environmental permit-the Certificate of Environmental Clearance-for
the project, saying that the CEC issued to Alutrint in 2007 had
failed to take into consideration the cumulative impact of three
major industrial projects, including the smelter, the report
notes.

Besides the smelter, a power plant and a port facility were
planned, the report relays.  Dean Armourer said while the court had
no jurisdiction over the construction of the smelter plant, it was
concerned about the threat and irreversible damage to the
environment, the report says.  The Manning government announced
that it would appeal the decision, the report relays.  The Manning
government was voted out of office in 2010, the report adds.




=================
V E N E Z U E L A
=================

PDVSA: Validity of 2020 Bonds to Hinge on Top State Court
---------------------------------------------------------
Bob Van Voris at Bloomberg News reports that the question of
whether a series of bonds issued by Venezuela's state-owned oil
company are valid will hinge on New York's highest court, a federal
appeals court said.

The US Court of Appeals in Manhattan said that it needs the state
court to determine whether New York or Venezuelan law applies to
the securities before it can decide an appeal by Petroleos de
Venezuela SA, or PDVSA, according to Bloomberg News.

The oil company is challenging a lower court ruling that the 2020
bonds are defaulted and that it must forfeit its controlling stake
in Citgo Holding Inc. to pay creditors, the report notes.

                          About PDVSA

Founded in 1976, Petroleos de Venezuela, S.A. (PDVSA) is the
Venezuelan state-owned oil and natural gas company, which engages
in exploration, production, refining and exporting oil as well as
exploration and production of natural gas.  It employs around
70,000 people and reported $48 billion in revenues in 2016.

In May 2019, Moody's Investors Service withdrew all the ratings of
Petroleos de Venezuela, S.A. including the senior unsecured and
senior secured ratings due to insufficient information. At the
time of withdrawal, the ratings were C and the outlook was stable.

Citgo Petroleum Corporation (CITGO) is Venezuela's main foreign
asset.  CITGO is majority-owned by PDVSA.  CITGO is a United
States-based refiner, transporter and marketer of transportation
fuels, lubricants, petrochemicals and other industrial products.

However, CITGO formally cut ties with PDVSA at about February 2019
after U.S. sanctions were imposed on PDVSA.  The sanctions are
designed to curb oil revenues to the administration of President
Nicolas Maduro and support for the Juan Guaido-headed party.



                           *********


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
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