/raid1/www/Hosts/bankrupt/TCRLA_Public/221121.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
Monday, November 21, 2022, Vol. 23, No. 226
Headlines
A R G E N T I N A
ARGENTINA: China Will Increase Swap Line by US$5 Billion
BANCO DE GALICIA: S&P Alters Outlook to Neg., Affirms 'CCC+' ICRs
TELECOM ARGENTINA: S&P Affirms 'CCC+' LT ICR, Outlook Stable
B R A Z I L
BRAZIL: Reduces to 5.85% Official Inflation Forecast for 2022
BRAZIL: Risk Rises 5.6% with Ceiling-Breaking PEC
BRAZIL: Unemployment Rate Falls to 8.7% in Third Quarter
C A Y M A N I S L A N D S
LEX ENDURANCE: US$75M Bank Debt Trades at 16% Discount
C U B A
CUBA: Slashes Growth Forecast as Economic Crisis Grinds On
E C U A D O R
ECUADOR SOCIAL: Fitch Affirms Cl. B Notes at 'B-sf', Outlook Stable
J A M A I C A
JAMAICA: Told to Brace for Higher Insurance Costs
M E X I C O
MEXARREND SAPI: S&P Keeps Long-Term 'CCC+' ICR on Watch Negative
T R I N I D A D A N D T O B A G O
TRINIDAD & TOBAGO: Borrows US$160 Million From CAF
X X X X X X X X
[*] BOND PRICING: For the Week Nov. 14 to Nov. 18, 2022
- - - - -
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A R G E N T I N A
=================
ARGENTINA: China Will Increase Swap Line by US$5 Billion
--------------------------------------------------------
Buenos Aires Times reports that China will increase its currency
swap program with Argentina by 35 billion yuan (US$5 billion),
President Alberto Fernandez told reporters after meeting with
Chinese President Xi Jinping on the sidelines of the G20 Summit in
Bali, Indonesia.
Fernandez did not give further details on when the increase would
take effect, nor did Economy Minister Sergio Massa, who attended
the meeting with the head of state, according to Buenos Aires
Times.
Currently, Argentina's swap line with China is worth 130 billion
yuan (US$18.5 billion), the report notes. A spokesman for
Argentina's Central Bank said it had no further information at
present, the report relays.
The increase in the swap line will help bolster Argentina's
dwindling foreign exchange reserves, the report discloses. The
instrument, created in 2009 and renewed in 2019, currently accounts
for more than half of Argentina's total stock of gross reserves,
the report notes.
The swap is an agreement between the two nation's central banks,
whereby the People's Bank of China has a renminbi account at the
Argentine Central Bank, and the latter has a peso account in China,
the report discloses.
Argentine officials have long insisted that they do not need
China's approval to use the funds, but they generally do not
publish when they use them, even when net cash reserves fall to
critical levels, the report relays. Central Bank Governor Miguel
Angel Pesce said earlier this year that the line was "active," the
report relays.
In his comments to the press, Fernandez claimed that Xi told the
Argentine delegation that China was making an "absolute exception"
by increasing the size of the swap line, the report discloses.
Argentina remains excluded from international capital markets after
restructuring its external debt in 2020, the report notes.
Argentina's leaders had been seeking a definitive answer from
Chinese officials on a possible increase in the swap line for
"several months," Fernandez added.
Back in February, Fernández's spokeswoman, Gabriela Cerruti, said
China had agreed to increase the swap line by about US$3 billion,
but a formal announcement never followed, 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 in the Troubled Company Reporter-Latin America on
Nov. 18, 2022, S&P Global Ratings affirmed its 'CCC+/C' foreign
currency sovereign credit ratings on Argentina. S&P lowered the
long-term local currency sovereign credit rating to 'CCC-' from
'CCC+' and the national scale rating to 'raCCC+' from 'raBBB-'.
S&P also affirmed its 'C' short-term local currency rating.
The outlook on the long-term ratings is negative. S&P's 'CCC+'
transfer and convertibility assessment is unchanged.
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.
BANCO DE GALICIA: S&P Alters Outlook to Neg., Affirms 'CCC+' ICRs
-----------------------------------------------------------------
S&P Global Ratings revised its outlook on Banco De Galicia Y Buenos
Aires S.A.U. (Banco Galicia) and Banco Patagonia S.A. to negative
from stable. At the same time, S&P affirmed its 'CCC+' long-term
foreign and local currency issuer credit ratings on Banco Galicia
and its 'CCC+/C' issuer credit ratings on Banco Patagonia. In
addition, S&P affirmed its subordinated debt rating on Banco
Galicia at 'CCC-'.
The outlook revision on both banks follows the sovereign rating
action, which stems from higher vulnerabilities in the next six
months, given the concentration in peso-debt maturities. S&P now
differentiates between local and foreign currency sovereign ratings
in the 'CCC' category, given the different time frames associated
with stressed repayment scenarios.
Even though recent developments at the sovereign level are
increasing vulnerabilities for domestic banks, they're already
operating under challenging conditions and able to maintain ratings
at current levels. In this sense, banks have sufficient liquidity
and regulatory capitalization metrics to cope with volatilities and
manageable credit losses.
Environmental, social, and governance factors have no material
influence on S&P's credit rating analysis of Banco Galicia and
Banco Patagonia.
TELECOM ARGENTINA: S&P Affirms 'CCC+' LT ICR, Outlook Stable
------------------------------------------------------------
S&P Global Ratings affirmed its long-term foreign and local
currency issuer credit ratings on the Argentine entities.
On Nov. 16, 2022, S&P Global Ratings lowered the long-term local
currency sovereign credit rating on Argentina to 'CCC-' from
'CCC+'. S&P also affirmed its 'CCC+/C' foreign currency sovereign
credit ratings and its 'C' short-term local currency rating on the
sovereign. The outlook on the long-term ratings is negative. S&P's
'CCC+' transfer and convertibility (T&C) assessment is unchanged.
S&P said, "In our view, the sovereign's path to serve its foreign
and local currency debts in the near term is at this point a bit
different from those of Argentine corporate and infrastructure
entities, and local governments. Argentine companies and
infrastructure entities have rolled over most of their short-term
cross-border debts, and continue to actively access domestic debt
markets. Local governments have accumulated some fiscal and
liquidity buffers that will help service their debts in the next
12-18 months, although our ratings incorporate macroeconomic
uncertainty and potential financial pressures. The ratings on these
entities will remain dependent on (stronger or lighter) currency
controls and on market conditions to roll over local debts.
"We currently believe that a potential sovereign default, stemming
from limited access to financing from the local market or official
sources, won't necessarily impact Argentine corporations and
infrastructure entities or their ability to roll over debt in
domestic markets. Therefore, we're affirming our local currency
ratings on these entities.
"Also, we've already incorporated Argentina's vulnerabilities into
our foreign currency ratings on these entities, which have adopted
stringent measures to deal with such volatility, and in most cases,
they have manageable short-term debt maturities. These factors
largely support our foreign currency ratings on these entities.
"We don't believe that recently heightened risks on the sovereign's
creditworthiness, especially in local currency, immediately impact
the provinces' capacity to service their debt beyond our base-case
scenario. Our ratings incorporate the expectation that--following
two years of improved fiscal results and liquidity
accumulation--there will be budgetary pressures because of high
inflation and limited growth, as well as from higher debt service
starting in 2023, when the restructured international bonds begin
to amortize. Limited investment options of recently accumulated
liquidity is also incorporated in our base-case scenario. At the
same time, debt payments in the local market are generally
manageable due to their limited size, below 3% of provinces'
revenues.
"On the other hand, T&C risks, in our opinion, remain the most
relevant and immediate risk for credit quality of corporate and
infrastructure entities, and local governments, especially for
those with foreign currency debt. The central government's decision
in September 2020 to require corporations to roll over 60% of their
foreign currency debts maturing before 2023 motivated several
exchanges in the past two years, which in many cases we viewed as
tantamount of default." For that reason, S&P maintains the global
scale ratings on the following entities capped at Argentina's T&C
level:
-- Aeropuertos Argentina 2000 S.A.;
-- AES Argentina GeneraciOn S.A.;
-- CAPEX S.A.;
-- Compania General de Combustibles S.A. ;
-- Empresa Distribuidora Y Comercializadora Norte S.A.;
-- IRSA Inversiones y Representaciones S.A.;
-- Pampa Energia S.A.;
-- Telecom Argentina S.A.;
-- Transportadora de Gas del Sur S.A. (TGS);
-- YPF Energia Electrica S.A.;
-- YPF S.A.;
-- City of Buenos Aires;
-- Province of Buenos Aires;
-- Province of Entre Rios;
-- Province of Jujuy;
-- Province of La Rioja;
-- Province of Mendoza;
-- Province of Neuquen;
-- Province of Rio Negro; and
-- Province of Salta.
Ratings Affirmed
TO FROM
AEROPUERTOS ARGENTINA 2000
Issuer Credit Rating CCC+/Stable CCC+/Stable
Senior Unsecured CCC+ CCC+
AES ARGENTINA GENERACION S.A
Issuer Credit Rating CCC+/Negative CCC+/Negative
Senior Unsecured CCC+ CCC+
CAPEX S.A.
Issuer Credit Rating CCC+/Stable CCC+/Stable
Senior Unsecured CCC+ CCC+
EMPRESA DISTRIBUIDORA Y COMERCIALIZADORA NORTE
Issuer Credit Rating CCC+/Negative CCC+/Negative
TRANSPORTADORA DE GAS DEL SUR S.A. (TGS)
Issuer Credit Rating CCC+/Stable CCC+/Stable
Senior Unsecured CCC+ CCC+
YPF ENERGIA ELECTRICA S.A.
Issuer Credit Rating CCC+/Stable CCC+/Stable
Senior Unsecured CCC+ CCC+
CITY OF BUENOS AIRES
Issuer Credit Rating CCC+/Stable CCC+/Stable
Senior Unsecured CCC+ CCC+
Stand-alone credit profile b+ b+
PROVINCE OF MENDOZA
Issuer Credit Rating CCC+/Stable CCC+/Stable
Senior Unsecured CCC+ CCC+
Stand-alone credit profile b- b-
PROVINCE OF ENTRE RIOS
Issuer Credit Rating CCC+/Stable CCC+/Stable
Senior Unsecured CCC+ CCC+
Stand-alone credit profile ccc+ ccc+
PROVINCE OF SALTA
Issuer Credit Rating CCC+/Stable CCC+/Stable
Senior Unsecured CCC+ CCC+
Stand-alone credit profile ccc+ ccc+
PROVINCE OF LA RIOJA
Issuer Credit Rating CCC+/Stable CCC+/Stable
Senior Unsecured CCC+ CCC+
Stand-alone credit profile ccc+ ccc+
PROVINCE OF NEUQUEN
Issuer Credit Rating CCC+/Stable CCC+/Stable
Senior Unsecured CCC+ CCC+
Stand-alone credit profile ccc+ ccc+
PROVINCE OF RIO NEGRO
Issuer Credit Rating CCC+/Stable CCC+/Stable
Senior Unsecured CCC+ CCC+
Stand-alone credit profile ccc+ ccc+
PROVINCE OF JUJUY
Issuer Credit Rating CCC+/Stable CCC+/Stable
Senior Unsecured CCC+ CCC+
Stand-alone credit profile ccc+ ccc+
PROVINCE OF BUENOS AIRES
Issuer Credit Rating CCC+/Stable CCC+/Stable
Senior Unsecured CCC+ CCC+
Stand-alone credit profile ccc+ ccc+
COMPANIA GENERAL DE COMBUSTIBLES S.A.
Issuer Credit Rating CCC+/Stable CCC+/Stable
Senior Unsecured CCC+ CCC+
COMPANIA LATINAMERICANA DE INFRAESTRUCTURA Y SERVICIOS S.A.
Issuer Credit Rating CCC/Positive CCC/Positive
Senior Unsecured CCC CCC
IRSA INVERSIONES Y REPRESENTACIONES S.A.
Issuer Credit Rating CCC+/Negative CCC+/Negative
Senior Unsecured CCC+ CCC+
PAMPA ENERGIA S.A.
Issuer Credit Rating CCC+/Stable CCC+/Stable
Senior Unsecured CCC+ CCC+
TELECOM ARGENTINA S.A.
Issuer Credit Rating CCC+/Stable CCC+/Stable
Senior Unsecured CCC+ CCC+
YPF S.A.
Issuer Credit Rating CCC+/Stable CCC+/Stable
Senior Unsecured CCC+ CCC+
===========
B R A Z I L
===========
BRAZIL: Reduces to 5.85% Official Inflation Forecast for 2022
-------------------------------------------------------------
Richard Mann at Rio Times Online reports that Brazil's Ministry of
Economy reduced the estimate of this year's inflation rate from
6.30 to 5.85 percent due to the fall in the price of a barrel of
oil in the international market and the reduction of federal and
state taxes, according to forecasts released on Nov. 18.
The Gross Domestic Product (GDP) growth estimate remained at 2.7
percent, according to the forecasts published in the MacroFiscal
Bulletin prepared by the Secretariat of Economic Policy, according
to Rio Times Online.
The growth expectation for 2023 was reduced from 2.50 to 2.10
percent, the report relays.
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.
In July 2022, Fitch Ratings affirmed Brazil's Long-Term Foreign
Currency Issuer Default Rating at 'BB-' and revised the Rating
Outlook to Stable from Negative. In June 2022, S&P Global
Ratings
also affirmed its 'BB-/B' long- and short-term foreign and local
currency sovereign credit ratings on Brazil. Moody's, in April
2022, affirmed Brazil's long-term Ba2 issuer ratings and senior
unsecured bond ratings, (P)Ba2 senior unsecured shelf ratings, and
maintained the stable outlook. On the other had, DBRS, in
August
2022, confirmed Brazil's Long-Term Foreign and Local Currency
Issuer Ratings at BB (low).
BRAZIL: Risk Rises 5.6% with Ceiling-Breaking PEC
-------------------------------------------------
The Rio Times reports that Brazil risk rose 5.6% on the afternoon
of Nov. 18 with investors worried about the repercussions of the
ceiling-breaking PEC and with the speech of the president-elect
Luiz Inacio Lula da Silva. During the morning, the indicator rose
8%.
Brazil risk is measured through CDS (Credit Default Swaps), papers
that protect investors from a possible default on the Brazilian
public debt, according to The Rio Times.
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.
In July 2022, Fitch Ratings affirmed Brazil's Long-Term Foreign
Currency Issuer Default Rating at 'BB-' and revised the Rating
Outlook to Stable from Negative. In June 2022, S&P Global
Ratings
also affirmed its 'BB-/B' long- and short-term foreign and local
currency sovereign credit ratings on Brazil. Moody's, in April
2022, affirmed Brazil's long-term Ba2 issuer ratings and senior
unsecured bond ratings, (P)Ba2 senior unsecured shelf ratings, and
maintained the stable outlook. On the other had, DBRS, in
August
2022, confirmed Brazil's Long-Term Foreign and Local Currency
Issuer Ratings at BB (low).
BRAZIL: Unemployment Rate Falls to 8.7% in Third Quarter
--------------------------------------------------------
The Rio Times Online reports that the unemployment figure in Brazil
for the third quarter stood at 8.7%, a reduction of just 0.6 tenths
compared to the second quarter of the year, which leaves the total
population without work at 9.5 million people, according to data
from the National Household Sampling Survey (Pnad), released by the
Brazilian Institute of Geography and Statistics (IBGE).
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.
In July 2022, Fitch Ratings affirmed Brazil's Long-Term Foreign
Currency Issuer Default Rating at 'BB-' and revised the Rating
Outlook to Stable from Negative. In June 2022, S&P Global
Ratings
also affirmed its 'BB-/B' long- and short-term foreign and local
currency sovereign credit ratings on Brazil. Moody's, in April
2022, affirmed Brazil's long-term Ba2 issuer ratings and senior
unsecured bond ratings, (P)Ba2 senior unsecured shelf ratings, and
maintained the stable outlook. On the other had, DBRS, in
August
2022, confirmed Brazil's Long-Term Foreign and Local Currency
Issuer Ratings at BB (low).
===========================
C A Y M A N I S L A N D S
===========================
LEX ENDURANCE: US$75M Bank Debt Trades at 16% Discount
------------------------------------------------------
Participations in a syndicated loan under which Lex Endurance Ltd
is a borrower were trading in the secondary market around 84.1
cents-on-the-dollar during the week ended Friday, November 18,
2022, according to Bloomberg's Evaluated Pricing service data.
The US$75 million facility is a delay-draw term loan. The loan is
scheduled to mature on January 8, 2030.
LEX Endurance Ltd., is an exempted company with limited liability
incorporated and existing under the laws of the Cayman Islands. It
owns an expedition ice-class cruise vessel.
=======
C U B A
=======
CUBA: Slashes Growth Forecast as Economic Crisis Grinds On
----------------------------------------------------------
RJR News reports that Cuba has cut by half its original forecast
for growth in 2022, the head of its chamber of commerce said, as
the Caribbean island nation struggles to jump start its ailing
economy and all-important tourism industry.
Chamber of Commerce president Antonio Carricarte says Cuba's
economy is expected to grow 2% this year, down from a previous
official prediction of 4%, according to RJR News.
That forecast is in line with an October prediction by the UN's
regional economic body for Latin America, ECLAC, the report notes.
=============
E C U A D O R
=============
ECUADOR SOCIAL: Fitch Affirms Cl. B Notes at 'B-sf', Outlook Stable
-------------------------------------------------------------------
Fitch Ratings has affirmed Ecuador Social Bond S.a.r.l.'s (ESB)
class A and B 144A/Reg S notes (together, the Repack Notes) at
'AAAsf' and 'B-sf', respectively. The Rating Outlook on the Repack
Notes remains Stable.
Entity/Debt Rating Prior
----------- ------ -----
Ecuador IDB Repack
Class A (secured)
XS2106052827 LT AAAsf Affirmed AAAsf
Class B (secured)
XS2106053635 LT B-sf Affirmed B-sf
TRANSACTION SUMMARY
The Social Bond, issued by the Republic of Ecuador and partially
guaranteed by the Inter-American Development Bank (IDB;
AAA/Stable), is the asset backing the Repack Notes.
The assigned ratings address timely payment of interest and
principal on a semi-annual basis.
KEY RATING DRIVERS
Social Bond Backed by Full Faith and Credit of Ecuador: The Social
Bond issued by the Republic of Ecuador is the asset backing the
Repack Notes issued by ESB. The Social Bond shares all
characteristics of other external indebtedness of the sovereign and
is backed by the full faith and credit of Ecuador. The only
difference is that its proceeds are for specific investment in
Ecuador's social housing program, and its debt service benefits
from a partial credit guarantee by the IDB.
IDB's Partial Credit Guarantee Comprehensive in Scope: The partial
credit guarantee between the IDB and ESB, as initial purchaser of
the Social Bond, partially covers Ecuador's failure to meet its
obligations on the Social Bond. After Ecuador's default on the
Social Bond, all draws from the IDB guarantee will be exclusively
applied by the Trustee to cover 100% of class A's debt service,
covering a percentage of the underlying Social Bond.
The IDB guarantee is comprehensive in scope and effectively covers
100% of the class A notes to be issued by ESB within the 23-day
cure period. IDB's obligations under the partial guarantee
constitute direct, unsecured obligations of IDB.
IDB's Credit Quality Remains Strong: The rating assigned to the
class A notes is commensurate with the Issuer Default Rating (IDR)
of the guarantee provider. On Nov. 16, 2022, Fitch affirmed IDB's
IDR at 'AAA'/Outlook Stable.
Class B Notes Ratings Commensurate with Sovereign: Given that all
flows from the IDB guarantee will be applied to the class A notes
to meet debt service according to the guarantee's schedule, a
default by Ecuador under its obligations of the Social Bond would
lead to a default of ESB's obligations under the class B notes.
Hence, the credit quality of the class B notes is a pass-through of
Ecuador's rating (B-/Stable; affirmed on Aug. 19, 2022).
The Key Rating Drivers listed in the applicable sector criteria,
but not mentioned above, are not material to this rating action.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- The class A notes' ratings are linked to the IDB's Long-Term
Foreign Currency IDR; hence, a downgrade of the IDB's IDR would
trigger a downgrade of class A notes in the same proportion.
Additionally, changes in Fitch's view regarding the strength of the
IDB guarantee may affect the class A notes' ratings.
- The class B notes' credit quality reflects Ecuador's rating,
therefore, is sensitive to changes in Ecuador's Long-Term IDR.
Hence, a downgrade to Ecuador's IDR would trigger a decrease in the
class B note ratings in the same proportion.
Fitch revised its "Global Economic Outlook" forecasts in September
2022 as a result of the European gas crisis, high inflation and a
sharp acceleration in the pace of global monetary policy
tightening. Downside risks have increased. In addition, Fitch
published an assessment of the potential rating and asset
performance impact of a plausible, but worse-than-expected, adverse
stagflation scenario on Fitch's major SF and CVB subsectors ("What
a Stagflation Scenario Would Mean for Global Structured Finance")
in April 2022. The impacts of the current economic outlook are
incorporated into Fitch's view of IDB and Ecuador's credit quality
and may therefore indirectly affect the transaction's rating.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- The class A notes' ratings are linked to the IDB's 'AAA'/Stable
Long-Term Foreign Currency IDR, which is the highest rating
assigned by Fitch.
- The ratings on the class B notes could be upgraded if Ecuador's
current 'B-'/Outlook Stable IDR, is upgraded.
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
The credit risk of class A notes is linked to the credit quality of
the IDB (AAA/Stable) as the only beneficiary of the IDB guarantee.
The credit risk of class B notes is directly linked to Ecuador's
Long-Term IDR (B-/Stable).
=============
J A M A I C A
=============
JAMAICA: Told to Brace for Higher Insurance Costs
-------------------------------------------------
RJR News reports that Jamaicans are being told to brace for higher
insurance costs as global re-insurers face increased losses and as
inflation rises.
The new Chief Executive Officer for Guardian Group, Ian Chinapoo,
said insurance costs, especially for property, have already seen
increases this year, according to RJR News.
In some territories, he said rates have risen to as high as 15 per
cent, the report notes.
Mr. Chinapoo explained that re-insurers have suffered significant
losses, including catastrophe losses that have amounted to almost
$100 million, so they will have no choice but to increase their
rates, the report relays.
He said this means insurers will have to manage and share the
burden of increases with customers, the report discloses.
With the cost of claims also increasing, Mr. Chinapoo said
insurance rates will have to be adjusted upwards so that insurers
can continue to pay for future claims, 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
===========
MEXARREND SAPI: S&P Keeps Long-Term 'CCC+' ICR on Watch Negative
----------------------------------------------------------------
On Nov. 17, 2022, S&P Global Ratings kept its long-term 'CCC+'
global scale issuer credit rating and 'mxB-/mxB' national scale
ratings on Mexican lender Mexarrend S.A.P.I. de C.V. on CreditWatch
negative. At the same time, S&P kept its 'CCC+' issue-level rating
on Mexarrend's senior unsecured bonds on CreditWatch negative.
Although Mexarrend faced some pressures to service the $30 million
payment of its international notes due October 2022, the lender was
able to pay this debt on time. S&P said, "However, given investors'
souring sentiment toward the NBFI sector in Mexico and our view of
still adverse financing conditions, we expect Mexarrend to face
significant headwinds in obtaining additional alternative funding
sources in 2023. This is particularly important given Mexarrend's
large amount of short-term debt. In our opinion, Mexarrend depends
on having eligible assets for its warehousing lines while
maintaining its historical collection levels in order to increase
its liquidity position. We think these factors give the lender a
narrow buffer to comply with its short-term maturities."
Mexarrend has market debt maturities of about MXN 1,700 million
($85 million) in the next 10 months--of which 39% are in the next
three months--including monthly maturities in the Cebures market
and coupon payments of its bond due 2024. The company had a monthly
average cash balance of MXN377 million ($18.8 million) during 2022
so far, and it has maintained an average of MXN200 million ($10
million) in monthly collection. In addition, Mexarrend has three
warehousing credit facilities for $345 million that according to
the company it could use to pay its upcoming maturities. However,
Mexarrend must accumulate a sufficient portfolio to act as a
collateral for disbursements of these facilities. Additionally, S&P
thinks Mexarrend will seek to use these credit facilities mainly to
fund its expected loan portfolio growth for the rest of 2022 and
2023, with the objective to originate new loans and ensure its
business continuity.
S&P said, "In our view, if Mexarrend faces any operating setback to
draw these credit lines or if it faces difficulties in maintaining
its historical collection levels, it would undermine the lender's
ability to meet its short-term financial obligations.
"Considering the harsh funding conditions for Mexican NBFIs, we
believe Mexarrend will have to seek alternative funding sources
that rely on obtaining securitized debt until financing conditions
improve--which we don't expect in the near term. In our view,
Mexarrend will have to use the bulk of its loan portfolio as
collateral, which could undermine its financial flexibility in the
next 12 months.
"Additionally, we anticipate Mexarrend's profitability will remain
under pressure--it posted a loss of MXN11 million as of September
2022--because the lender will have narrow room to focus on more
profitable products and will have higher funding costs. We expect
rising expenses, especially after the full integration of the
Colombian fintech company Zinobe within Mexarrend's financials,
which we expect to occur by the end of 2022. We will monitor
Mexarrend's operating profile and profitability to determine its
future payment ability and assess its business continuity."
=====================================
T R I N I D A D A N D T O B A G O
=====================================
TRINIDAD & TOBAGO: Borrows US$160 Million From CAF
--------------------------------------------------
Andrea Perez-Sobers at Trinidad Express reports that Finance
Minister Colm Imbert signed two loan agreements with the CAF
(Development Bank of Latin America), which provide funding for a
technical assistance project on flood prevention as well as to
boost digital transformation.
The signings took place at the Diplomatic Centre, St Ann's,
according to Trinidad Express.
The report notes that Imbert and executive president of CAF, Sergio
Diaz-Granados signed the agreements for:
-- A US$120 million loan to support the Government's ongoing
efforts to strengthen the digital economy, and society by
delivering more efficient services to citizens and fostering
digital inclusion;
-- A US$40 million loan to finance drainage works in the Caroni,
Caparo, South Oropouche and North Oropouche basins, as well as in
Port of Spain;
-- Imbert also signed an Immunities and Privileges Agreement
designed to facilitate the operations of CAF's regional office.
-- As part of a collaboration with The University of the West
Indies, St Augustine campus principal, Rose-Marie Belle Antoine
signed an agreement with CAF for a US$10 million grant.
Prime Minister Dr Keith Rowley was also present to witness the
signings, and posted it on his Facebook.
Trade Facilitation
Speaking at the CAF flagship report "RED 2021" at the Central Bank
Auditorium, the finance minister said increasing trade facilitation
is critical to the region at all levels, the report discloses.
He indicated that this country's trade performance has improved,
moving from a visible trade balance of $12.5 billion (US$1.84
billion) in 2017 to $19.3 billion (US$2.84 billion) in 2021, the
report relays.
Imbert said that with the escalation in commodity prices in 2022,
the latest data shows a projected increase in T&T's balance of
trade in 2022 to $36 billion (US$5.3 billion), an increase of 86
per cent, the report discloses.
However, he said the results from trade agreements have been
modest, as highlighted in the RED 2021, the report notes.
"Over the period 2017 to 2021, for example, Trinidad and Tobago's
trade balance with the Dominican Republic decreased by 44 per cent,
moving from US$71.8 million in 2017 to US$40.0 million in 2021," he
said, the report relays.
"Similarly, the country's trade balance with Costa Rica, over the
same period, maintained a negative trade balance with exports
increasing marginally by 1.8 per cent per cent from approximately
US$10.1 million in 2017 to US$10.2 million in 2021. As previously
mentioned, these are the two countries with which Caricom has free
trade agreements," the minister explained, the report discloses.
Imbert said that the advantages of trade facilitation experienced
by the business community are vast and trickle down to the
citizenry in several, if not all cases, the report relays.
"Through trade facilitation, the business community profits from
lower trade-related costs and reduced delays in the delivery of
their raw materials, which allows them to better serve their
consumers by providing goods on time and at a more economical cost.
There is also enhanced competitiveness which forces businesses to
maintain and provide goods of the highest quality," he remarked,
the report relays.
He also pointed out that trade facilitation helps strengthen
national security systems of countries, which is especially
important in small island states, which have experienced rising
crime rates due to cracks in outdated customs processes and
systems, the report notes.
"To add, countries whose trade processes allow for swift and
feasible import and export of production inputs and finished goods,
respectively, are more attractive locations for foreign firms
seeking to invest; thereby increasing foreign exchange inflows,
which is an impetus to export growth in a country. This also
further improves economic development in countries as local
consumers can be offered an array of high quality, reasonably
priced goods and services," Imbert emphasized, the report relays.
CAF also launched its regional office for the Caribbean, in
Port-of-Spain, after the presentation of the trade facilitation
report, Trinidad Express adds.
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[*] BOND PRICING: For the Week Nov. 14 to Nov. 18, 2022
-------------------------------------------------------
Issuer Name Cpn Price Maturity Country Curr
----------- --- ----- -------- ------- ---
Noble Holding Internat 5.3 60.5 3/15/2042 KY USD
Metrogas SA/Chile 6.0 41.6 8/1/2024 CL CLP
Argentine Republic Gov 4.3 70.0 12/31/2033 AR JPY
Provincia de Cordoba 7.1 72.7 8/1/2027 AR USD
Argentina Bonar Bonds 5.8 75.2 4/18/2025 AR USD
Province of Santa Fe 6.9 74.7 11/1/2027 AR USD
Cia Latinoamericana de 9.5 74.3 7/20/2023 AR USD
Argentine Republic Gov 8.3 74.5 12/31/2033 AR USD
Argentine Republic Gov 0.5 27.6 12/31/2038 AR JPY
Argentine Republic Gov 6.9 75.2 1/11/2048 AR USD
Argentine Republic Gov 8.3 74.5 12/31/2033 AR USD
Esval SA 3.5 49.9 2/15/2026 CL CLP
Noble Holding Internat 6.1 62.0 3/1/2041 KY USD
City of Cordoba Argent 7.9 73.1 9/29/2024 AR USD
Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD
Argentine Republic Gov 7.1 75.7 6/28/2117 AR USD
AES Tiete Energia SA 6.8 1.2 4/15/2024 BR BRL
Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD
Noble Holding Internat 6.2 62.2 8/1/2040 KY USD
Provincia del Chaco Ar 4.0 0.0 12/4/2026 AR USD
Provincia de Rio Negro 7.8 70.3 12/7/2025 AR USD
Avadel Finance Cayman 4.5 55.0 2/1/2023 US USD
Provincia de Cordoba 7.1 74.7 8/1/2027 AR USD
Sylph Ltd 2.4 65.1 9/25/2036 KY USD
Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD
Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD
Argentina Bonar Bonds 7.6 74.4 4/18/2037 AR USD
Province of Santa Fe 6.9 74.7 11/1/2027 AR USD
Provincia de Rio Negro 7.8 70.4 12/7/2025 AR USD
Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD
Argentine Republic Gov 6.3 74.1 11/9/2047 AR EUR
Fospar S/A 6.5 1.2 5/15/2026 BR BRL
Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD
Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD
Province of Santa Fe 6.9 75.2 11/1/2027 AR USD
Cia Latinoamericana de 9.5 73.9 7/20/2023 AR USD
Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD
Provincia de Buenos Ai 7.9 75.3 6/15/2027 AR USD
Provincia del Chubut A 4.5 2208 3/30/2021 AR USD
Province of Santa Fe 6.9 75.2 11/1/2027 AR USD
Provincia del Chaco Ar 9.4 74.8 8/18/2024 AR USD
Provincia de Rio Negro 7.8 70.3 12/7/2025 AR USD
*********
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