/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/221026.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 Wednesday, October 26, 2022, Vol. 23, No. 208 Headlines B R A Z I L BRAZIL: Has 45 Requirements Left to Join OECD COMPASS GAS: Fitch Cuts Local Currency IDR to 'BB', Outlook Stable COSAN SA: Moody's Affirms 'Ba2' CFR Amid Vale SA Transaction MARFRIG GLOBAL: Fitch Hikes LongTerm IDRs to 'BB+', Outlook Stable D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Daily Costs Increases J A M A I C A JAMAICA: Spending Exceeds Target for April to August M E X I C O GRUPO AEROMEXICO: Posts Unaudited Consolidated Results Q3 2022 T R I N I D A D A N D T O B A G O CL FINANCIAL: Privy Council Rejects Central Bank Appeal - - - - - =========== B R A Z I L =========== BRAZIL: Has 45 Requirements Left to Join OECD --------------------------------------------- Rocco Caldero at Rio Times Online reports that on October 20, at a meeting of the National Confederation of Trade, Goods, and Services (CNC), the Brazilian Minister of Economy, Paulo Guedes, said that of the 230 requirements for the accession process to the Organization for Economic Cooperation and Development (OECD), Brazil has only 45 pending. 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. COMPASS GAS: Fitch Cuts Local Currency IDR to 'BB', Outlook Stable ------------------------------------------------------------------ Fitch Ratings has downgraded Compass Gas and Energia S.A.'s (Compass) Long-Term Local Currency (LC) Issuer Default Rating (IDR) to 'BB' from 'BB+'. In conjunction with this rating action, Fitch has affirmed Compass Long Term Foreign Currency (FC) IDR at 'BB' and its National Scale Long-Term Rating at 'AAA(bra)'. The Rating Outlook is Stable. The downgrade of Compass' LC IDR follows the same rating action on its majority parent Cosan S.A. (Cosan - FC IDR BB/Stable; LC IDR BB/Stable; and National Scale Rating AAA(bra)/Stable) following debt funded acquisition of 6.5% stake of Vale S.A. (BBB/AAA(bra)/Stable) that will lead to weaker consolidated credit metrics and lower dividend upstream to Cosan for debt service. Compass' ratings reflect the linkage with its parent as per application of Fitch's Parent and Subsidiary Linkage Rating Criteria that resulted in equalizing Compass' ratings with Cosan's, which owns 88% of Compass. Fitch believes, due to Cosan's ownership and shareholder structure, the company has the unlimited ability to influence Compass' financial policies, such as prioritizing dividends to its parents. KEY RATING DRIVERS Linkage to Cosan: Compass is an intermediate holding company between Cosan and Comgas (FC IDR BB/Stable; LC IDR BBB-/Stable; and National Scale Rating AAA(bra)/Stable) that is fully controlled by Cosan. Per Fitch's Parent Subsidiary Linkage Criteria, the shareholder structure between the parent and Compass is viewed as open with limited legal ring fencing. Therefore, Cosan has unlimited ability to influence Compass' financial policies, such as dividends, capex, and leverage, as a result the ratings are equalized with Cosan. On standalone credit profile (SCP), Compass is stronger than its parent at 'bb+' given its lower net debt/dividends ratio, which is supported by Comgas' credit strength. Strong Gas Distribution Subsidiary: Compass' key subsidiary Companhia de Gas de Sao Paulo — Comgas (FC IDR: BB/Stable; LC IDR: BBB-/Stable; and National Scale Rating AAA(bra)/Stable) provides robust dividends upstream to the company which supports its low leverage. In the near term, Compass' asset portfolio should diversify due to ongoing acquisitions and project developments. Fitch views Compass' SCP as weaker than Comgas', as the latter is a natural gas distributor with solid credit profile and subject to regulatory and debt restrictions that could limit Compass' access to its cash. With operations in the state of Sao Paulo, Comgas is the largest company in this sector in Brazil. Manageable Industry Risk: Compass' exposure to the natural gas distribution industry with manageable business risk and relevant growth potential is a positive credit consideration. Natural gas distributors operate under long-term concession contracts with cost pass-through mechanisms that protect their cash flows and improve predictability, despite moderate demand volatility. Gas supply risks to distributors are expected to be manageable as Petrobras reduced its position as the main supplier in Brazil. Natural gas distribution operations should contribute to around 90%-95% of Compass' consolidated EBITDA through 2024, with around 80% coming from Comgas. Sound Financial Structure: Compass' consolidated financial profile should remain conservative in the next three years, as equity injections of BRL2.3 billion during 2021 supported its growth strategy through acquisitions. The company's consolidated net leverage should peak at 1.7x by the end of 2022 due to BRL2.6 billion of net acquisitions payment. Compass' consolidated EBITDA in 2022 is projected to reach BRL3.4 billion and gradually increases to BRL4.5 billion by 2024, underpinned by recent Commit (former Gaspetro) and Sulgas acquisitions. Strong Cash Flow Generation: Fitch forecasts a consolidated cash flow from operations (CFFO) in 2022 of BRL2.1 billion, resulting in negative FCF of BRL1.1 billion, which assumes an estimated dividend payment of BRL1.1 billion and capex of BRL2.0 billion, which is mainly at Comgas. Compass' consolidated CFFO is expected to average BRL2.8 billion per annum in 2023-2024, and capex should average around BRL1.7 billion per annum. At the holding level Fitch's base case assumes that dividends coming from Comgas will service debt at Compass and all excess cash will be distributed to Cosan. DERIVATION SUMMARY Compass's ratings are in line with power and gas utilities group in the LatAm region. The company is one notch below Energisa S.A. (BB+/Stable), a holding company with diverse operating subsidiaries in the power distribution segment also in Brazil. Energisa has solid growth potential through its subsidiaries and above average performance as compared with the main peers in the segment. Fitch expects Compass to gradually increase portfolio diversification while maintaining a conservative financial profile. Compass' ratings are influenced by Brazil's operating environment compared to GNL Quintero S.A.'s (GNLQ; BBB+/Stable), which owns and operates the largest LNG regasification terminal in Chile, despite GNLQ operating single asset under expectation of higher leverage metrics through the rating horizon. Compass also negatively compares with Promigas S.A. E.S.P. (BBB-/Stable), which benefits from a strong business position within the Colombian and Peruvian natural gas transportation and distribution segments, despite expectation of sustaining higher leverage ratios compared with Compass. KEY ASSUMPTIONS - Comgas total volume billed excluding the thermo power generation segment growth of 1% in 2022, with an annual average increase of 1.6% thereafter, in line with Fitch's GDP projections; - Comgas annual contribution margin increases in line with Fitch's inflation estimates; - Compass dividend distribution of BRL1.0 billion on average per year in 2022-2024; RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: IDRs: - Upgrade of Cosan; - Change of Fitch's perception in terms of Access and Control and Legal Ring Fence between the company and its shareholder. Factors that could, individually or collectively, lead to negative rating action/downgrade: - A downgrade of Cosan's ratings; - A downgrade of Comgas' ratings by more than two notches; - A downgrade of the sovereign rating may also trigger a downgrade of Compass' FC IDR. LIQUIDITY AND DEBT STRUCTURE Adequate Liquidity: By the end of June 2022, Compass sound cash balance of BRL3.0 billion should reduce after net acquisitions payment of around BRL2.6 billion. In the same period the company's total debt was BRL399 million. Compass also guarantees BRL700 million debt at a subsidiary level. Fitch estimates Compass' upstream of dividends around BRL1.3 billion during the next three years mainly from Comgas. The company should distribute dividends of around BRL1.0 billion on annual average. By the end of Jun.2022, its consolidated adjusted debt was BRL8.2 billion, mainly consisting of BR6.0 billion in debentures and BRL1.0 billion of Brazilian Development Bank loans, mostly allocated to Comgas. ISSUER PROFILE Compass Gas & Energia S.A. (Compass), is a non-operating subsidiary controlled by Cosan group responsible to develop the group's activities within natural gas and energy sectors in Brazil. Compass is strategically focused on natural gas distribution, liquified natural gas (LNG) regasification infrastructure, gas trading and gas-powered thermal generation. 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. SUMMARY OF FINANCIAL ADJUSTMENTS - Construction revenues are excluded from net revenue; - Debt adjusted with hedging derivatives. Entity/Debt Rating Prior ------------ ------ ----- Compass Gas e Energia S.A. LT IDR BB Affirmed BB LC LT IDR BB Downgrade BB+ Natl LT AAA(bra) Affirmed AAA(bra) COSAN SA: Moody's Affirms 'Ba2' CFR Amid Vale SA Transaction ------------------------------------------------------------ Moody's Investors Service has affirmed Cosan S.A. Ba2 Corporate Family Ratings and the senior unsecured Ba2 ratings of Cosan Luxembourg SA and Cosan Overseas Limited. The affirmation follows the announcement that Cosan has acquired a stake 4.90% in Vale S.A. (Baa3 stable) and that is intends to reach a 6.5% participation. To fund the transaction Cosan will have a mix of debt and preferred shares. Affirmations: Issuer: Cosan S.A. Corporate Family Rating, Affirmed Ba2 Issuer: Cosan Luxembourg SA Gtd Senior Unsecured Regular Bond/Debenture, Affirmed Ba2 Issuer: Cosan Overseas Limited Gtd Senior Unsecured Regular Bond/Debenture, Affirmed Ba2 Outlook Actions: Issuer: Cosan S.A. Outlook, Remains Stable Issuer: Cosan Luxembourg SA Outlook, Remains Stable Issuer: Cosan Overseas Limited Outlook, Remains Stable RATINGS RATIONALE Moody's believes that the acquisition of a stake in Vale, as announced by Cosan, is credit negative because Cosan will need to deploy substantial cash payments to service and amortize the new debt (collar loan financing) in the next 5 years and carve-out dividends from Raizen S.A. (Baa3 stable) and Compass S.A. to amortize redeemable preferred shares linked to the transaction. Nonetheless Moody's believes Cosan will still maintain an adequate interest coverage for the rating level and has alternative liquidity sources to avoid refinancing risk as amortizations and interest payments approach. These sources include the divestment of assets and participations in other subsidiaries. Market Value-based Leverage of its portfolio (measured by the holding company´s net debt/estimated market value of its participations) will increase to 44.3% in 2023 compared to a lower 33.4% pre-transaction. Cosan ratings have been constrained by its aggressive growth strategy driven by large debt funded acquisitions like the announced deal. Historically this has prevented Cosan's ratings to move higher despite it's good liquidity and coverage at the holding company level. Following the announced transaction metrics will be more aligned with the Ba2 company's rating level, but execution miss-steps, fail to divest relevant assets and maintain a good liquidity, or lower than expect dividend flow could increase the negative pressure on Cosan's ratings. Pro-forma for the transaction, interest coverage (measured by Funds from Operations (FFO) + Interest Expense / Interest Expense) will remain close to 2.0x in the next 4 to 5 years. This level is lower than the historical average of 3.1x between 2017 and 2020, and closer to the 1.8x in the end 2021, but still within Moody's downgrade triggers. An interest coverage sustainably below 2.0x, accompanied by weakening liquidity at the holding company, could create negative rating pressure for Cosan's ratings. Consolidated leverage, including pro-forma financials of Raizen, will peak at 5.3x in 2022 from 3.80x in 2021 and reducing to 4.0x in 2023 considering the equity income of 6.5% from Vale's shares. Once the debt used to finance the share acquisition is reduced in the coming years, the diversification offered by Vale dividend upstream will benefit Cosan's credit profile. Vale is an investment grade asset that offers exposure to foreign currency revenues, has a strong competitive position and will benefit from decarbonization and carbon transition trends with sustained demand for high quality iron ore, copper, nickel, and other metals. On October 7, Cosan announced the acquisition of a 4.9% stake of Vale's voting rights. It was a direct shares purchase of 1.5% and a 3.4% stake through loans using the shares as collateral linked to a collar operation that locks in a minimum and maximum price for the shares (collar loan financing). An additional 1.6% stake of economic rights secured via a second derivatives structure, hedges the position in Vale. After Brazilian anti-trust authority (CADE) approves the transaction Cosan will have the option to convert this second derivative structure into a voting derivative structure. Considering that Cosan would convert the second derivative structure into Vale shares, Moody's expects a total collar loan financing structure of nearly BRL13.7 billion to be amortized in 5 years. The direct 1.5% stake was funded with a BRL8 billion bridge loan which will be converted into redeemable preferred shares of Raizen and Compass, Cosan main subsidiaries. These preferred shareholders will be serviced with dividends up streamed to Cosan from their 44% stake in Raizen and 88% stake in Compass, therefore reducing total dividends received by Cosan going forward. There is no set maturity on the redeemable preferred shares. Their balance will be amortized with dividends up streamed. Cosan S.A.'s Ba2 corporate family ratings reflect its diversified portfolio of businesses, including the entire sugar-ethanol chain; fuel distribution, including convenience stores, natural gas, lubricants and logistics operations; and its adequate liquidity profile. The holding company's diversified sources of dividends, especially from stable businesses, such as the fuel and gas distribution, translates into a stable cash source over the long-term. Diversification mitigates volatility in the upstream business Cosan benefits from a diversification of cash flow streams from the agricultural sugar-ethanol activities, fuel distribution and piped natural gas distribution. The stake in Vale shares will improve diversification of dividends specially as the collar financing structures are amortized. Also, Rumo S.A. (Ba2 Stable) and other investments can improve diversification to Cosan as they grow more robust in their ability to provide consistent and reliable dividends. Cosan's ratings are constrained by the acquisitive growth history of the company and its subsidiaries, and the high gross leverage of the pro forma consolidated figures of the group. The stable outlook reflects Moody's view that Cosan will maintain adequate liquidity and coverage of interest expenses with dividend upstream. Moody's expects the company to divest of assets and participations to reinforce its cash balance and avoid a deterioration in liquidity to service sizeable amortizations under the collar financing structure. The rating also incorporates that the company will conduct any future acquisition plans in a prudent manner, to avoid a weakening of its current credit metrics. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade of Cosan's ratings could result from the upgrade of rated subsidiaries (Raizen or Rumo). Upward pressure could develop if the parent company maintains a strong standalone financial position with adequate liquidity, increases cash flow and diversifies companies and segments. Qualitatively, the ratings could be upgraded if its (FFO + Interest Expense)/Interest Expense is maintained above 3.0x on a sustained basis. A downgrade of Cosan could result from the downgrade of one or more rated subsidiaries (Raizen or Rumo), from a deterioration in liquidity with a cash balance unlikely to cover at least its short-term maturities or from a deterioration in the parent company's standalone financial position with protracted weakness in the operations of its subsidiaries, resulting in significantly lower dividends than Moody's expectations. Large debt-funded capital spending or acquisitions could also add downward pressure on the ratings. Quantitatively, the ratings could be downgraded if its (FFO + Interest Expense)/Interest Expense remains below 2.0x on a sustained basis. The principal methodology used in these ratings was Investment Holding Companies and Conglomerates published in July 2018. MARFRIG GLOBAL: Fitch Hikes LongTerm IDRs to 'BB+', Outlook Stable ------------------------------------------------------------------ Fitch Ratings has upgraded Marfrig Global Foods S.A.'s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) to 'BB+' from 'BB', and MARB BondCo PLC and NBM US Holdings, Inc.'s senior unsecured notes to 'BB+' from 'BB'. In addition, Fitch has upgraded Marfrig's National Scale rating and debentures to 'AAA (bra)' from 'AA+(bra)'. The Rating Outlook is Stable. The upgrade reflects Marfrig's strong operating performance, expected positive FCF, and low net leverage ratio as well as its stake in BRF S.A. Since 2Q22, Marfrig fully consolidates BRF's accounts due to 33.27% stake in BRF and the gain of control of its board of directors. Despite the consolidation, Fitch considers Marfrig's operations on a stand-alone basis as these two entities operate separately, with no cross-default or guarantees provided, and the presence of significant minority interests. KEY RATING DRIVERS Low Net Leverage: Marfrig's net leverage aligns with its 'BB+' ratings. Net debt/EBITDA ratio (adjusted by minorities dividends and excluding BRF accounting consolidation) is expected to increase slightly at about 2.5x in 2022 and close to 3x in 2023 (1.8x in 2021) due to the lower profitability of its U.S. division in the second half of the year. The EBITDA margin of the company's U.S. subsidiary, National Beef, is expected to normalize to close to 10% (14% in 1H22) due to lower cattle availability in the U.S. after reaching a peak in 2021. In addition, exports continue to remain the primary driver of profitability in its South America division due to international beef demand. Robust Business Position: Marfrig's ratings incorporate the company's size and geographic diversification in the volatile protein commodity industry. The ratings also incorporate Marfrig's 33.27% stake on BRF S.A., one of the largest food companies in the world with a market cap of close to USD2.9 billion as of October 2022, and the control of its board. Fitch will incorporate in its debt ratio any dividends paid by BRF to Marfrig, but Fitch does not expect BRF to pay dividends to Marfrig in 2022 due to BRF's high leverage. Marfrig is a beef player with a processing capacity of 29,100 head/day. National Beef is the fourth-largest beef processor in the U.S., with approximately 14% of the beef processing capacity (13,100 head/day). In South America, Marfrig is one of the region's leading beef producers, with a primary processing capacity of 16,000 head/day, of which 11,100 head/day is in Brazil, 3,700 head/day is in Uruguay and 1,200 head/day is in Argentina. Geographical Diversification: Marfrig's exposure to the volatile beef segment of the protein sector is partially mitigated by its geographic diversification, including Brazil and the U.S.; the two largest beef-producing markets. Fitch estimates that National Beef will represent about 73% of the group's EBITDA (excluding BRF), with the remaining 27% represented by its South American units (mainly in Brazil) in 2022. Sales from National Beef primarily occur in the U.S., and their domestic nature reduces the company's exposure to risks related to tariffs, quotas, and bans. Beef exports represented 68% of South American revenue, mostly to China and Hong Kong in 1Q22. This geographical diversification enables the group to mitigate cattle cycles, sanitary, social, deforestation in the Amazon Biome and other environmental risks due to the complexity in the monitoring of the supply chain. Resilient U.S. Beef Demand: Marfrig's competitive advantages stem from its large scale of operations, access to export markets from Brazil and the U.S., and long-term relationships with farmers, customers and distributors. USDA forecasts U.S. beef production to remain steady in 2022, with Brazilian beef production expected to increase above 6% yoy. Additionally, the protein sector's supply chain is under increased scrutiny by investors due to deforestation issues. DERIVATION SUMMARY Marfrig's ratings reflect its solid business profile and geographic diversification as a pure player in the beef industry, with a large presence in South America (notably in Brazil) and the U.S. through National Beef. It also reflects its stake in BRF. Marfrig is well-positioned to compete in the global protein industry due to its size and geographic diversification. Regarding size, the business compares favorably with its regional peer Minerva S.A. (BB/Stable), which is mainly a beef processor in South America. JBS S.A. (BBB-/Stable) and Tyson Foods (BBB/Stable) enjoy a larger scale of operations, stronger FCF, and higher product and geographical diversification than Marfrig. KEY ASSUMPTIONS - Lower EBITDA margin due to lower profitably from National Beef; - Positive FCF; - Adjusted net leverage close to 2.5x as of YE 2022. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: - Sustainable and positive FCF; - Net leverage to below 2.5x, respectively, on a sustained basis. Factors that could, individually or collectively, lead to negative rating action/downgrade: - Negative FCF on a sustained basis; - Net leverage above 3.5x on a sustainable basis. LIQUIDITY AND DEBT STRUCTURE Adequate Liquidity: As of June 30, 2022, Marfrig had USD2 billion of cash and cash equivalents compared with USD711 million and USD 1.1 billion due in 2022 and 2023, respectively. The company's short-term debt is mainly related to trade finance lines. ISSUER PROFILE Marfrig Global Foods S.A. is a multinational corporation and the world's second largest beef company in terms of production capacity. The company operates slaughter and processing facilities, distribution centers and offices located in North America, South America, Europe and Asia. ESG CONSIDERATIONS Marfrig has an ESG Relevance Score of '4' on Waster & hazardous Materials Management, Ecological due to supply chain management and its exposure to cattle sourcing from the Amazon biome. The company's exposure to land use and ecological impact could result in decisions being made to the detrimental to the company's creditors, which would have a negative impact on the credit profile and is relevant to the rating in conjunction with other factors. Marfrig has an ESG Relevance Score of '4' on Governance as a result of ownership concentration due to the control of the company by the Molina's family and the lack of a detailed succession plan. Also, Marfrig has pursued multiple strategies in the past decade, buying and selling companies, and it remains key credit consideration. The shareholder's strong influence upon management could result in decisions being made to the detriment of the company's creditors. 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. Entity/Debt Rating Prior ----------- ------ ----- NBM US Holdings, Inc. senior unsecured LT BB+ Upgrade BB MARB BondCo PLC senior unsecured LT BB+ Upgrade BB Marfrig Global Foods S.A. LT IDR BB+ Upgrade BB LC LT IDR BB+ Upgrade BB Natl LT AAA(bra) Upgrade AA+(bra) senior unsecured Natl LT AAA(bra) Upgrade AA+(bra) =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Daily Costs Increases ----------------------------------------- Dominican Today reports that the Dominican families face a complex scenario of the decision to make Dominican dishes daily because of the cost of the elaboration and related to their incomes. El Listin Diario inquired about the price, which implies that a family of five members tasted the popular mangu with salami for dinner or lunch, according to the costs of official publications, according to Dominican Today. As simple as it may seem, making certain local dishes, given the inflation scenario that prevails in the world and that directly affects consumers and workers, complicates purchasing certain products of the family basket, the report notes. Although the prices of articles have remained stable, according to data from the National Institute for the Protection of Consumer Rights (Proconsumidor), preparing various meals is a daily challenge for homemakers, who have to find ways to ensure that their children eat well, the report relays. When consulting Proconsumidor's Dominican Price Information System, it was found that the price of certain products may vary according to brand and size, the report discloses. In this case, to make a mangu with salami, the cost of a unit of plantain can be found from RD$17.64 to a maximum value of RD26.59, the report notes. To the list is added to buy a pound of salami of a generic brand that starts from RD$93.00 to RD$209.00 since this sausage accompanies this meal, the report relays. If you like to fry the salami, the cost increases since you must buy oil, so a 16-ounce bottle is between RD$74.00 and RD$95.00, the report says. Costs If the housewife runs out of gas in her stove when making this favorite dish of Dominicans, she has to have RD$147.60 to buy a gallon of this fuel, the report relays. However, the margarine is missing to add a little texture and flavor, and according to the website of the consumer protection institution, getting 15 ounces of this product would cost RD$120.00, the report discloses. To prepare this delicacy, a family needs about nine plantains, whose cost amounts to RD$162, the report notes. This figure would add a pound and a half of salami for RD$140, the oil, the gallon of gas, and the butter. So, the total cost of this dish rises to RD$671 when all these factors are considered, the report says. While it is true that if the members decide to make the salami guisado, the budget could be expanded by integrating new ingredients such as tomato sauce which is around RD$50; the cubanela chili at RD$35, and the pound of garlic at RD$89, the report notes. If this household chooses to eat this dish for a month, they would have to have RD$20,130, which represents almost four-fifths of the RD$25,215.73 corresponding to the cost of the basic family basket of the first quintile of the population, that is, of the lowest social stratum, the report relays. Basket According to the latest report on the basic family food basket cost by income quintiles published in recent days by the Central Bank, the national food basket increased to RD$42,482.52 in September, when for the previous month, it stood at RD$40,358.58, the report notes. Aids According to the Central Bank, the inter-annual inflation went down due to the effectiveness of the subsidies implemented by the Government for fuels and the pause to the electricity tariff, 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. ============= J A M A I C A ============= JAMAICA: Spending Exceeds Target for April to August ---------------------------------------------------- Keith Duncan at RJR News reports that the Jamaican government spending exceeded the target for the April to August period. Keith Duncan, Chairman of the Economic Program Oversight Committee (EPOC), says the total expenditure was $299 billion, marginally ahead of budget by $2.5 billion, according to RJR News. This was driven by recurrent program spending and was $15.7 billion or 5.5 per cent higher than the outturn for the corresponding period in 2021, the report relays. "Current program spending reflected a faster pace of procurement than anticipated. Interest costs also surpassed budget due to higher costs for servicing domestic debt as we have seen with the movement of domestic interest rates with the T-bills (Treasury bills)," said Mr. Duncan, who was speaking at a press briefing, the report notes. However, he revealed that revenues were also ahead of budget, outweighing the excess spend. "For April to August, total revenue and grants of $297.8 billion was $30.9 billion - 11.6 per cent ahead of budget - primarily driven by higher than budgeted tax and non-tax revenues. This positive performance remains ahead of the outturns for April to August 2021 by $28.4 billion, mainly supported and driven by increased economic activity and higher than projected value of imports," the EPOC chair outlined, the report relays. Taxes also came in at $27 billion higher than budgeted, the report adds. As reported in the Troubled Company Reporter-Latin America in March 2022, Fitch Ratings has affirmed Jamaica's Long-Term Foreign Currency Issuer Default Rating (IDR) at 'B+'. The Rating Outlook is Stable. =========== M E X I C O =========== GRUPO AEROMEXICO: Posts Unaudited Consolidated Results Q3 2022 -------------------------------------------------------------- Grupo Aeromexico S.A.B. de C.V. ("Aeromexico") (BMV: AEROMEX), reported its unaudited consolidated results for the third quarter 2022. Key Financial Highlights For The Third Quarter 2022 On March 17, 2022, Grupo Aeromexico, informed that successfully concluded its financial restructuring process and emerged from its Chapter 11 process. Grupo Aeromexico's capacity, measured in available seat kilometers (ASKs), increased 31.4% year over year, primarily driven by the sequential recovery in domestic and international markets. Grupo Aeromexico's third quarter 2022 revenue reached $21.4 billion pesos; a 61.7% increase with respect to same period of 2021. During the quarter, revenue per ASK (RASK) increased by 23.1% year over year. EBITDAR amounted to $4.9 billion pesos. A year over year increase of $1.2 billion pesos. Third quarter 2022 EBIT amounted to $2,022 million pesos; an improvement of $1.7 billion compared to the same period 2021. Cost per ASK (CASK) in dollars, excluding fuel, was $0.045, a decrease of 12.9% compared to the same period of 2021. This reflects the Company's structural cost efficiency achievements. Aeromexico's cash position as of September 30th, 2022, amounted to $15.4 billion pesos, equivalent to approximately $759 million dollars. Excluding restricted cash, Aeromexico's cash balance amounted to $14.7 billion pesos, equivalent to $725 million dollars. As of September 30th, 2022, Aeromexico's operating fleet comprised 141 aircraft, 19 more aircraft compared to third quarter 2021. Headquartered in Mexico City, Mexico, Grupo Aeromexico SAB de CV operates as an airline. As reported in the Troubled Company Reporter-Latin America, Egan-Jones Ratings Company, on August 10, 2022, upgraded the foreign currency and local currency senior unsecured ratings on debt issued by Grupo Aeromexico SAB de CV to C from D. EJR also retained its 'D' rating on commercial paper issued by the Company to B from A3. ===================================== T R I N I D A D A N D T O B A G O ===================================== CL FINANCIAL: Privy Council Rejects Central Bank Appeal ------------------------------------------------------- Anthony Wilson at Trinidad Express reports that the Privy Council on Oct. 20, 2022, ruled against the Central Bank of Trinidad & Tobago (T&T) in its appeal against the rulings of local courts in a matter involving the sale of the CLICO and British American (Trinidad) traditional portfolios. Maritime Life (Caribbean) Ltd started judicial review proceedings in April 2020 against the Central Bank for its 2019 decision to allow Sagicor Life to acquire the portfolios, according to Trinidad Express. Maritime Life submitted a competing bid. The five law lords determined that the Central Bank, in effect, allowed Sagicor to submit a conditional bid, which was contrary to the Central Bank's stated process, the report notes. The report discloses that the Privy Councilors said: "In relation to that example the Board agrees with the judge and the majority in the Court of Appeal that there is evidential material which gives rise to an arguable case with a realistic prospect of success that the appellant had acted unlawfully in terms of the public law standard . . . " About CL Financial/CLICO CL Financial was one of the largest privately held conglomerate in Trinidad and Tobago. It was originally founded as an insurance company and has since expanded to be the holding company for a diverse group of companies and subsidiaries. CL Financial is the parent company of Colonial Life Insurance Company (Trinidad) Limited (Clico). CLICO is now the Company's insurance division. CL Financial however experienced a liquidity crisis in 2009 that resulted in a "bail out" agreement by which the government of Trinidad and Tobago loaned the company funds ($7.3 billion as of December 2010) to maintain its ability to operate, and obtained a majority of seats on the company's board of directors. The companies to be bailed out were: CL Financial Ltd (CLF); Colonial Life Insurance Company Ltd (CLICO); Caribbean Money Market Brokers Ltd (CMMB); Clico Investment Bank (CIB) and British American Insurance Company (Trinidad) Ltd (BAICO). As reported in the Troubled Company Reporter-Latin America in July 2017, CL Financial Limited shareholders vowed to pay back a TT$15 billion (US$2.2 billion) debt to the Trinidad Government. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2022. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *