/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/221214.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, December 14, 2022, Vol. 23, No. 243 Headlines A R G E N T I N A ARGENTINA: To Introduce Income Tax Relief in January B R A Z I L BANCO BV: Moody's Affirms Ba2 Deposit & Sr. Unsecured Debt Ratings BRAZIL: Ambassador Estimates Trade With Russia at US$8.8 Billion BRAZIL: Inflation Slows to 0.41% in November EMBRAER SA: Eve Chooses Startup From Brazil to Launch 'Flying Car' GUARA NORTE: Fitch Affirms 'BB+' Sr. Sec. Notes, Outlook Now Stable SBM BALEIA SII: Fitch Affirms BB- Notes Rating, Outlook Now Stable D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Monetary Policy Rate Fluctuated Constantly E L S A L V A D O R GRUPO UNICOMER: Fitch Affirms 'BB-' LT IDRs, Outlook Now Stable J A M A I C A TRANSJAMAICAN HIGHWAY: Fitch Affirms 'BB-' Rating on Sr. Sec. Notes X X X X X X X X LATIN AMERICA: Venezuelan Migrants Bring Economic Opportunity - - - - - ================= A R G E N T I N A ================= ARGENTINA: To Introduce Income Tax Relief in January ---------------------------------------------------- Reuters reports that Argentina's government will raise the floor for income taxes in January, the country's Economy Minister Sergio Massa said, amid union demands to ease the burden on workers. "With this tax relief, in 2023, no worker who earns less than 404,062 pesos (about $2,378 monthly) will pay the tax," Massa said in a tweet, according to the report. The minister did not disclose the fiscal cost of the decision, which he said is set to benefit some 312,864 workers, the report notes. The previous floor stood at 330,000 pesos ($1,942.32), the report relays. With this update, Massa said fewer than 600,000 wage earners in the country will pay the tax, less than 10% of the country's total workforce, 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. =========== B R A Z I L =========== BANCO BV: Moody's Affirms Ba2 Deposit & Sr. Unsecured Debt Ratings ------------------------------------------------------------------ Moody's Investors Service has affirmed all ratings and assessments assigned to Banco BV (BV), including its long- and short-term local and foreign currency deposit ratings of Ba2 and Not Prime as well as its foreign currency senior unsecured debt and senior unsecured MTN Program ratings of Ba2 and (P)Ba2, respectively. Moody's also affirmed the bank's ba3 baseline credit assessment (BCA), its ba2 adjusted BCA and its long-term counterparty risk assessment (CR assessment) of Ba1(cr). The rating outlook remains stable. RATINGS RATIONALE In affirming BV's ba3 BCA, Moody's acknowledges the bank's consistent reporting of good profitability metrics in the seven quarters up to September 2022, which reflects BV's efforts to reinforce its business strategy and increase earnings diversification. BV has expanded the origination of unsecured consumer finance products, in addition to its traditional portfolio of inherently riskier pre-owned auto loans, which has contributed to strengthen earnings generation in 2022. However, Moody's expect this strategy will also likely rise asset risks in the next two to three quarters, particularly amid a scenario of high inflation and decelerating economic activity that will continue to pressure households' repayment capacity beyond 2022. The BCA affirmation also incorporates BV's more conservative approach to underwrite loans since the end of last year, which resulted in a more contained asset quality deterioration, especially in auto loans. In September 2022, the non-performing loans over 90 days for auto loans was 4.6%, from 3.8% in September 2021, while the banking system's average loan delinquency for that product increased to 5.2% from 3.4%. In addition, the overall loan loss reserves remained above problem loans by 117%, representing 8.2% of gross loans in September 2022. This reserve coverage will likely provide some buffer amid a still challenging underlying environment in 2023. BV's net income to tangible banking assets ratio increased to 1.45% in September 2022, from 1.32% one year before. Profitability benefited from growth of higher margin loans and lower credit costs in the last 12 months ended in September 2022, despite negative effects from a slowdown in the origination of its core product (auto loans, that accounted for 52% of total credit exposure) and elevated operating expenses. Moody's expect the bank's bottom line results to improve in the short to mid-term from higher business diversification and efficiency gains stemming from investments in technology and new business initiatives. Despite that, profitability metrics remains challenged by macroeconomic headwinds that will likely result in lower business origination and higher provision costs in 2023. BV's digital bank and its bank-as-a-service platforms can serve as channels to attract retail depositors, adding more granular funding resources, which will continue to support business growth and its ample liquidity position. BV's BCA of ba3 remains challenged by the banks low capitalization metrics, measured as Moody's ratio of tangible common equity to risk weighted assets (TCE/RWA), that remain well below that of its peers. This capital ratio, that stood at 6.94% in September 2022, reflects the large volume of deferred tax assets (DTAs) held by BV on its balance sheet. The TCE/RWA ratio steadily improved in the past two years supported by the relatively stable profitability that allowed the reduction of DTAs. On a regulatory basis, BV's common equity tier 1 was 12.9% in September 2022, in line with its peers. BV's Ba2 global local currency deposit ratings reflect the bank's fundamental credit strength, as evidenced by its ba3 BCA, and incorporates a one-notch uplift from Moody's assessment of high affiliate support from Banco do Brasil S.A. (BB, Ba2 stable, ba2). FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS BV's BCA could be upgraded if the bank reports sustained strengthening of asset quality and capitalization metrics. Nevertheless, the upward pressure on BV's Ba2 deposit and debt ratings is limited because they are at the same level as the Government of Brazil's sovereign rating of Ba2. Downward pressures to BV's BCA and ratings could be arise from sharp asset quality deterioration over the next outlook horizon, resulting in consistent weakening of its capital ratios (under Moody's metric), or a significant decline in liquid resources and funding quality. METHODOLOGY USED The principal methodology used in these ratings was Banks Methodology published in July 2021. LIST OF AFFECTED RATINGS AND ASSESSMENTS The following ratings and assessments of Banco BV were affirmed: Long-term global local currency deposit rating of Ba2, stable outlook Short-term global local currency deposit rating of Not Prime Long-term global foreign currency deposit rating of Ba2, stable outlook Short-term global foreign currency deposit rating of Not Prime Senior unsecured foreign currency debt rating of Ba2, stable outlook Senior unsecured foreign currency Medium-Term Note Program of (P)Ba2 Other Short Term foreign currency of (P)Not Prime Pref. Stock Non-cumulative foreign currency of B2(hyb) Long-term global local currency counterparty risk rating of Ba1 Short-term global local currency counterparty risk rating of Not Prime Long-term global foreign currency counterparty risk rating of Ba1 Short-term global foreign currency counterparty risk rating of Not Prime Baseline credit assessment of ba3 Adjusted baseline credit assessment of ba2 Long-term counterparty risk assessment of Ba1(cr) Short-term counterparty risk assessment of Not Prime(cr) Outlook Actions: Outlook, Remains Stable BRAZIL: Ambassador Estimates Trade With Russia at US$8.8 Billion ---------------------------------------------------------------- The Rio Times Online reports that trade between Brazil and Russia has already reached US$8.8 billion, according to the Brazilian ambassador in Moscow, Rodrigo de Lima Baena Soares. "By November 2022, our trade has risen to US$8.8 billion, a record number," the diplomat said during a webinar, according to The Rio Times Online. Rodrigo de Lima Baena Soares was convinced that Brazil and Russia could "little by little achieve the goal of US$10 billion," the report relays. About Brazil Brazil is the fifth largest country in the world and third largest in the Americas. Luiz Inacio Lula da Silva won the 2022 Brazilian general election. He will be sworn in on January 1, 2023, as the 39th president of Brazil, succeeding Jair Bolsonaro. 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: Inflation Slows to 0.41% in November -------------------------------------------- Rio Times Online reports that inflation in Brazil was 0.41% in November. The IPCA (National Broad Consumer Price Index) slowed down in relation to October when it was 0.59%. The IBGE (Brazilian Institute of Geography and Statistics) released the result on Dec. 9, the report relays. The result surprised the financial market, which estimated a rate close to 0.54% for the month, the report notes. The price index accumulates a high of 5.13% in the year. In 12 months, it decreased from 6.47% in October to 5.90% in November, the report adds. About Brazil Brazil is the fifth largest country in the world and third largest in the Americas. Luiz Inacio Lula da Silva won the 2022 Brazilian general election. He will be sworn in on January 1, 2023, as the 39th president of Brazil, succeeding Jair Bolsonaro. 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). EMBRAER SA: Eve Chooses Startup From Brazil to Launch 'Flying Car' ------------------------------------------------------------------ Sergio Ripardo at Rio Times Online reports that one of the companies on investor radar in 2023, Eve (EVEX), an electric aircraft company controlled by Embraer (EMBR3), closed an agreement for the sale of 40 eVTOLs (electric flying vehicle) with the air mobility startup FlyBis, headquartered in the city of Caxias do Sul in the State of Rio Grande do Sul. Headquartered in Sao Jose dos Campos, State of Sao Paulo, Brazil, Embraer SA manufactures and markets commercial, corporate, and defense aircraft. As reported in the Troubled Company Reporter-Latin America on Nov. 10, 2022, Egan-Jones Ratings Company, on October 4, 2022, retained the 'B' local currency senior unsecured rating on debt issued by Embraer SA. GUARA NORTE: Fitch Affirms 'BB+' Sr. Sec. Notes, Outlook Now Stable ------------------------------------------------------------------- Fitch Ratings has affirmed the senior secured notes issued by Guara Norte S.a r.l. at 'BB+' and has revised the Rating Outlook to Stable from Negative to align with the sovereign. Brazil's Stable Outlook considers the better than expected evolution of public finances since May 2020. The notes are collateralized by a charter agreement and the related proceeds from the operations of the Cidade de Ilhabela (CdI) floating-production storage and offloading (FPSO) vessel. Entity/Debt Rating Prior ----------- ------ ----- Guara Norte S.a r.l. Senior Secured Notes due 15-Jun-2034 400666AA1 LT BB+ Affirmed BB+ TRANSACTION SUMMARY The senior secured notes issued by Guara Norte S.a.r.l. are backed by the flows related to the charter agreement initially signed with Guara B.V. for the use of the FPSO Cidade de Ilhabela (CdI) for a term of 20 years. The BM-S-9 consortium is comprised of Petrobras, with 45% share, and Shell Brasil (wholly owned subsidiary of Royal Dutch Shell plc) with 30% share, and Repsol YPF Brazil S.A. (a joint venture between Repsol and Sinopec) with 25% share. The vessel is operated by a Brazilian subsidiary of SBM Offshore, through a services agreement. The CdI FPSO began operating in 2014 at the Sapinhoa oil field in the pre-salt layer of the Santos Basin off the coast of Brazil. Fitch's rating addresses the timely payment of interest and principal on a semiannual basis until the legal final maturity in June 2034. KEY RATING DRIVERS CONSORTIUM OBLIGATION STRENGTH EXCEEDS PETROBRAS': The offtaking consortium is backed by Petrobras (45% share), the Shell subsidiary Shell Brasil Petroleo Ltda (30%) and the Repsol/Sinopec joint venture (25%); all the pro rata obligations are guaranteed by affiliate companies (for the Petrobras group, Petrobras International Braspetro B.V.). The offtakers' obligations related to the 20-year charter and joint operating agreements are several, but not joint, as each party guarantees that it will make its portion of the payment. However, these payments can be seen as joint and several as the underlying concession states that each party must support all the obligations related to ongoing production. Fitch expects the payments to continue given the high economic incentives to maintain the concession. Therefore, the rating of the lowest-rated member, Petrobras (BB-/Stable), does not strictly limit the notes' rating. SOVEREIGN EVENTAND T&C RISK SUPPORTS UPLIFT: The transaction's reserve of six months of debt service (through letters of credit provided by Mizuho Bank Ltd. and MUFG Bank Ltd., both rated'A-'/Stable/'F1' and the offshore payment obligations offer sufficient protection to mitigate potential transfer and convertibility (T&C) restrictions and exceed Brazil's Country Ceiling of 'BB' by one notch. However, the event risk linked to the operating environment, with Petrobras being a state-owned enterprise, subject the transaction to potential political interference, limits the uplift over Brazil's 'BB-' Issuer Default Rating (IDR) 'BB-' and Stable Outlook to two notches and, therefore, to 'BB+'/Stable. EXPERIENCED OPERATOR MITIGATES RISK: The group of the operator, SBM Offshore, is a global player in building and managing FPSOs, a concentrated industry. Fitch views SBM's experience as the operator as a strength, given the past performance their overall fleet and other rated transactions. CdI's record shows an excellent historical of commercial uptime, at 99.65% from September 2021 to September 2022 and 99.02% uptime from 2014-September 2022. Due to the complexities of replacing SBM as the operator, the credit quality SBM remains an important rating driver; however, Fitch views the credit metrics of SBM to be in line with investment grade metrics. STRONG FINANCIAL METRICS: Fitch's cash flow analysis has assessed the repayment of the fully amortizing debt, assuming timely interest and principal payments according to a nondeferrable sculpted amortization schedule and a cash trapping condition should the debt service coverage ratio (DSCR) fall below 1.15x. In our base case, the DSCR remains at 1.72x-1.94x through the life of the transaction, and stress case DSCRs remain well above trigger levels. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: As described in Key Rating Drivers, the rating of the transaction is linked to Brazil's IDR, with an uplift of two notches. Therefore, a sovereign downgrade would trigger a downgrade of the notes. Considering the credit strength of the other operators, Fitch assigned a rating in excess of Petrobras' by two notches, and this remains possible as long as the other offtakers remain rated above the notes. Given the current ratings of the other offtakers, Fitch deems this risk to be remote. The other counterparty that could constrain the rating is the operator, the SBM group, which Fitch considers to have a better credit quality than the senior notes. Finally, the cash flow analysis results in very robust output, consistent with ratings in the 'BBB' category. Although the DSCR and ultimate debt repayment depend on uptime, maintenance days, opex and CPI, none of these variables could drive ratings down under the stresses Fitch applied (and considering a cap for opex). Factors that could, individually or collectively, lead to positive rating action/upgrade: The rating is constrained by the operating environment and counterparty issues. An upgrade of Brazil (which would likely also result in an upgrade of Petrobras) may result in an upgrade. 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. SBM BALEIA SII: Fitch Affirms BB- Notes Rating, Outlook Now Stable ------------------------------------------------------------------ Fitch Ratings has affirmed SBM Baleia Azul, SII/ S.a.r.l.'s series 2012-1 senior secured notes due 2027 at 'BB-'. The Rating Outlook has been revised to Stable from Negative due to Fitch's review of transaction performance amidst vessel shutdown and the alignment of the outlook with the off-taker, Petrobras. The transaction's rating is capped by Fitch's view of the strength of the offtaker's payment obligation, which in this case is equalized with Petrobras' Issuer Default Rating (IDR). Entity/Debt Rating Prior ----------- ------ ----- SBM Baleia Azul, SII/ S.a.r.l. Senior L8038*AA4 LT BB- Affirmed BB- TRANSACTION SUMMARY The notes are backed by the flows related to the charter agreement signed with Petrobras for the use of the Cidade de Anchieta floating production storage and offloading unit (FPSO) for a term of 18 years. SBM do Brasil Ltda. (SBM Brasil), the Brazilian subsidiary of SBM Holding Inc. S.A. (SBM), is the operator of the FPSO. SBM is the sponsor of the transaction. The Cidade de Anchieta FPSO began operating at the Baleia Azul oil field (now considered part of the New Jubarte field) in September 2012. KEY RATING DRIVERS PETROBRAS' CREDIT QUALITY AS CONSTRAINT Fitch uses the offtaker's IDR as the starting point to determine the appropriate strength of the offtaker's payment obligation. On July 18, 2022, Fitch affirmed Petrobras' Long-Term (LT) IDR at 'BB-' and revised the Outlook to Stable. Petrobras' ratings continue to reflect its close linkage with the sovereign rating of Brazil and the outlook reflects the better-than-expected evolution of public finances amid successive shocks in recent years since May 2020. STRENGTH OF THE OFFTAKER'S PAYMENT OBLIGATION ALIGNED WITH PETROBRAS' IDR Fitch's view on the strength of the off-taker's payment obligation acts as the ultimate rating cap to the transaction. Given Fitch's qualitative assessment of asset/contract/operator characteristics and the off-taker's/industry's characteristics related to this transaction, the strength of such payment obligation has been equalized to Petrobras' LT IDR. EXPERIENCED OPERATOR MITIGATES RISK SBM Offshore N.V. is the ultimate parent to SBM Holding Inc. S.A., the main sponsor of the transaction. The transaction benefits from SBM Offshore N.V.'s solid business position, global leadership in leasing FPSOs and overall strong operational performance of its fleet, aligning SBM's credit quality with investment-grade metrics. The rating of the transaction is ultimately capped by Fitch's view of the credit quality of the sponsor. TRANSACTION CONTINUES TO MEET PAYMENT OBLIGATIONS AMIDST SHUTDOWN The company, SBM, has been supporting the transaction structure since vessel shut down in January 2022 due to an oil leak detected stemming from a corroded tanker. A shareholder loan has been in place between SBM Holding Inc. (Lender) and SBM Baleia Azul, SII/ S.A.R.L (Borrower) to help support the transaction's timely payment obligations as necessary. The focus of activities to date has been on the repair of the four tanks required for the safe restart of the vessel and is on schedule to resume operations by the end of 2022. As a result of the shutdown, the overall uptime average since commercial operations began in 2012 has declined to 91.2%, down from 97.9% prior to the shutdown. AVAILABLE LIQUIDITY REDUCES RISK The transaction benefits from a $26 million (LoCs provided by ABN Amro, rated A/Stable) debt service reserve account (DSRA) equivalent to the following two quarterly payments of principal and interest. This provides support to meet the next debt service obligations should the vessel be delayed in coming back online and resuming the charter and SBM ceasing to provide liquidity to the transaction. From Fitch's understanding, the company and Petrobras have been working to resume vessel operations in a timely and safe manner before year-end 2022. DSCR CONTINUES TO MEET EXPECTATIONS GIVEN SBM SUPPORT The key leverage metric for fully amortizing FPSO transactions is the DSCR. The rolling 12-month pre-opex debt service coverage ratio (DSCR) for the period ending September 2022 was 1.70x. Through the shareholder loan, SBM Baleia Azul, SII/ S.a.r.l received $11 million in June 2022, $18.5 million in September 2022, and is expected to receive $18.7 million in December 2022 to assist with meeting timely interest and principal and to assist with cost/expenses incurred while repairing the vessel. Since the vessel is currently not receiving any charter revenue from normal operations, SBM's support is instrumental for the DSCRs to remain above trigger levels. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: The rating may be sensitive to changes in Petrobras' credit quality as charter off-taker, and any deterioration in SBM's credit quality as operator and sponsor. In addition, the transaction's rating may be impacted by the Cidade de Anchieta FPSO's operating performance and prolonged shut down of the vessel that could lead to a contract termination. Factors that could, individually or collectively, lead to positive rating action/upgrade: Fitch does not anticipate developments that could likely trigger an upgrade. However, the main constraint to the transaction's rating is currently the offtaker's credit quality. If upgraded, Fitch will consider whether the strength of the offtaker's payment obligation would be equalized with the entity's IDR. 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. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Monetary Policy Rate Fluctuated Constantly -------------------------------------------------------------- Dominican Today reports that the monetary policy rate (TPM) has fluctuated constantly, rising 550 basis points since November 2021, from 3.00% to 8.50% per year. The Central Bank's (BC) measure aims to combat rising inflation, which stood at 8.24% in October, according to Dominican Today. According to Marta Betances, general manager of United Capital Puesto de Bolsa, the changing macroeconomic environment caused by the war between Russia and Ukraine, as well as the effects left by the covid-19 pandemic in 2020, caused inflation to reach historically high levels this year, the report relays. She expressed that the accelerated, but "timely," upward adjustment of the interest rate is required to mitigate the inflationary effects and represents an opportunity to invest in the Dominican Republic's stock market, the report notes. "This rate scenario is an excellent opportunity for investors to take advantage of higher yields through the different stock exchanges," Betances said, adding that the national stock market has enabled individuals and businesses to protect their savings from inflation by investing in "very attractive" returns, the report discloses. According to the capital market expert, this sector has aided regulators in their goal of lowering inflation because by attracting funds from investors, consumption is replaced by investment, resulting in a decrease in prices, the report relays. In this regard, he emphasized that the financial intermediation and insurance sector, which includes the stock market, accounts for 3.7% of GDP, and that the average growth of this sector in the economy from January to September 2022 was 5.7%, which was higher than the overall growth of the economy, which was 5.4% during the same period, 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. The TCR-LA reported in April 2019 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. The TCR-LA reported on December 12, 2022, that Fitch Ratings has affirmed Dominican Republic's Long-Term Foreign Currency Issuer Default Rating (IDR) at 'BB-' with a Stable Rating Outlook. Fitch said Dominican Republic's ratings are supported by a track record of robust economic growth, a diversified export structure, high per-capita GDP and social indicators, and governance scores that compare favorably to peers' after sustained improvement in the past decade. Standard & Poor's, also in December 2021, revised its outlook on the Dominican Republic to stable from negative.S&P also affirmed its 'BB-' long-term foreign and local currency sovereign credit ratings and its 'B' short-term sovereign credit ratings. The stable outlook reflects S&P's expectation of continued favorable GDP growth and policy continuity over the next 12 to 18 months that will likely stabilize the government's debt burden, despite lack of progress with broader tax reforms, S&P said.A rapid economic recovery from the downturn because of the pandemic should mitigate external and fiscal risks. Moody's affirmed the Dominican Republic's long-term issuer and senior unsecured ratings at Ba3 and maintained the stable outlook in March 2021. ===================== E L S A L V A D O R ===================== GRUPO UNICOMER: Fitch Affirms 'BB-' LT IDRs, Outlook Now Stable --------------------------------------------------------------- Fitch Ratings has affirmed Grupo Unicomer Corp.'s (Unicomer) Long-Term Local and Foreign Currency Issuer Default Ratings (IDRs) at 'BB-'. The Rating Outlook has been revised to Stable from Positive. Fitch has also affirmed Unicomer's USD350 million senior notes due 2024 at 'BB-'. The Outlook revision to Stable reflects Fitch's view that a rating upgrade is unlikely within the next 12 months, as the company's financial profile will temporarily weaken should the CrediScotia Financiera (CSF) acquisition materializes. In addition, Unicomer has some operational challenges to face amid a weakened macroeconomic environment in the Latin American region. These, are related to some countries' operating performance and inventory management due to supply chain interruptions, similar to other retailers in the region. Unicomer's ratings incorporate its leading business position, relatively stable operating cash flows and the solid financial position of its shareholders. The ratings also consider Unicomer's geographic and format diversification, which have contributed to solid operating cash flow generation throughout economic cycles. The company has proved ability to innovate and quickly respond to different consumer environments with the combination of its retail and financial businesses. KEY RATING DRIVERS Solid Business Position: Unicomer has commercial operations in 26 countries across Central America, South America and the Caribbean. The company has a track record of more than 22 years in consumer durables sales, which enabled it to develop long-term relationships with suppliers. These relationships provide competitive advantages in terms of store location within small countries, where prime retailing points of sale are very limited. The company maintains a leading business position in the retailing of consumer durable goods. This is supported by proprietary financing services and economies of scale in terms of purchasing power and logistics. Geographic and Format Diversification: Geographic diversification allows Unicomer to have a broad revenue base, supported by different economic dynamics and mitigates the company's country risk from any individual market. Jamaica, Costa Rica, Trinidad and Tobago, Guyana and El Salvador, are among the most important cash flow contributors, which gives Unicomer some strength and stability to operating cash flows. Despite geographic diversification, most of the sovereign ratings of countries in which the company operates are in the 'B' rating category. The company has several store formats and brands across operations that cover different socioeconomic segments of the population. Growth Funded Mainly with Debt: Historically, Grupo Unicomer expanded its operations through a combination of organic and inorganic growth. While organic growth was primarily funded with internal operating cash flows, acquisitions were funded mainly with debt. As of September 2022, consolidated gross adjusted debt/EBITDAR was 5.7x and Fitch expects the company to reduce this ratio to historical levels of around 4.5x in the medium term. Fitch believes Unicomer's adjusted leverage could be around 5.0x in the next two years in case of the CSF acquisition materializes. An important portion of the company's debt is related to the financial business and repaid with credit portfolio collections. Excluding the consumer finance business, the retail-only gross adjusted leverage should be around 4.0x by the end of fiscal year ending March 2023, according to Fitch's calculations. Expected Positive FCF: Fitch expects the company's CFO to be above USD85 million and FCF to be above USD30 million by FYE ending March 2023. During 2021 and part of 2022, the company's CFO was affected by higher working capital requirements related to resumption of portfolio growth and higher inventory levels to mitigate supply disruptions. To normalize CFO generation, Unicomer is executing inventory management initiatives to reduce inventory to normal levels, which is expected to start showing results by FYE March 2023. Medium term CFO is estimated to be over USD90 million. Capex levels should be around USD48 million per year during the medium term, excluding potential acquisitions, and FCF is projected to be above USD50 million per year. Attractive Portfolio Net Yield: The company's consumer finance strategy includes sufficient financial spreads to cover credit risks in the portfolio. During the past 10 years, the portfolio yield after deducting expenses, uncollectable expenses and write-offs has been nearly 35% on average. As of Sept. 30, 2022, Unicomer's credit portfolio had NPLs (past due accounts for 90 days or more) of 8.3%, lower than 9.2% a year ago. The company has provisions equivalent to 134% of those NPLs. The level of overdue accounts is offset by the company's efficient collection program and portfolio yield. Strong Shareholders: Grupo Unicomer's ratings are viewed on a standalone basis, however, the ratings consider the sound financial position of Unicomer shareholders Milady Group and El Puerto de Liverpool, S.A.B. de C.V. (BBB+/Stable), each of which owns 50% of the company. Liverpool has a proven track record in retail since 1847 in Mexico. In Fitch's view, the shareholders' solid credit profiles give flexibility to Grupo Unicomer, as the shareholders' financial position do not rely on Unicomer's dividend payments. Milady's operations include real estate developments, department store chains, all Inditex's franchises in Central America, and a vertically integrated textile manufacturing and wholesaling business. Liverpool, a department store business with 287 units and 28 shopping malls in Mexico, had approximately USD7.3 billion in total revenues during 2021. DERIVATION SUMMARY Unicomer has about the same scale in number of stores as Grupo Elektra, S.A.B. de C.V. (BB/Stable), fewer than Americanas S.A. (BB/Negative) and more than El Puerto de Liverpool S.A.B. de C.V. (BBB+/Stable). Unicomer's credit portfolio is smaller in size than Elektra's, and Liverpool's. The company is more geographically diversified than Elektra, Liverpool and Americanas, which mitigates Unicomer's operating risk of any individual market. From a financial profile view, the company maintains lower profitability margins and higher leverage than its Mexican peers, but it presents lower gross leverage than its Brazilian peer. As per Fitch's criteria, Unicomer's applicable Country Ceiling is 'BB-'. At the current rating level, the operating environments (OE) of the countries where the company has operations do not constrain the ratings but the OE cap the ratings in the upper 'BB' rating range. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer Include: - Consolidated revenue growth of 6.4% on average for FY 2023 to FY 2026. - An EBITDAR margin of 14% on average for FY 2023 to FY 2026. - Average capex of USD48 million per year for FY 2023 to FY2026. - No dividend payment in FY 2023 and average annual dividend distributions of USD17.4 million for FY 2024 to FY 2026. - Potential inorganic growth in FY 2024. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade: - Diversification of operating subsidiaries in countries with lower sovereign risk. - Consolidated adjusted net leverage close to 4.0x on a sustained basis. - Retail-only adjusted net leverage close to 3.5x on a sustained basis. - Maintained credit quality of the portfolio and significant reduction in its current maturities, resulting in a consistent ratio of cash plus CFFO/short-term debt of 1.0x. Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade: - Sustained deterioration in overdue accounts from the consumer finance business. - A significant reduction in cash flow generation that results in sustained negative FCF margin. - Further debt-financed acquisition activity resulting in a consolidated net adjusted debt/EBITDAR above 5.0x. - Retail-only net adjusted leverage above 4.5x on a sustained basis. - Deterioration of liquidity compared with short-term debt. - Sustained deterioration in the operating environment of countries where the company operates. LIQUIDITY AND DEBT STRUCTURE Adequate Liquidity: Unicomer reported total debt of USD865 million, as of Sept. 30, 2022, of which USD255 million was short-term. This level of short-term debt compares with USD80 million of cash and marketable securities and a short-term credit receivables portfolio of USD520 million. Fitch believes Unicomer's liquidity cushion of cash on hand and operating cash flows coupled with its portfolio of receivables will be sufficient to cover short-term debt. The liquidity ratio, measured as cash and marketable securities over short-term debt, was 0.3x as of Sept. 30, 2022. When including short-term account receivables in the calculation, the ratio increases to 2.4x. ISSUER PROFILE Grupo Unicomer Co. Ltd. (Unicomer) is a leading retailer of durable consumer goods with operations in 26 countries across Central America, South America and the Caribbean. The company operates 1,202 points of sales and 4.2 million square feet of retail space with different brands. 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. Entity/Debt Rating Prior ----------- ------ ----- Grupo Unicomer Corp. LT IDR BB- Affirmed BB- LC LT IDR BB- Affirmed BB- senior unsecured LT BB- Affirmed BB- ============= J A M A I C A ============= TRANSJAMAICAN HIGHWAY: Fitch Affirms 'BB-' Rating on Sr. Sec. Notes ------------------------------------------------------------------- Fitch Ratings has affirmed TransJamaican Highway Limited's (TJH) senior secured notes at 'BB-'. The Rating Outlook is Stable. RATING RATIONALE The rating reflects the stability and resiliency of a commuting asset strategically located in the outskirts of Kingston, Jamaica's capital city. The rating is also supported by a satisfactory rate-setting mechanism, which allows tariffs to be adjusted annually by U.S. inflation and the variations in foreign-currency (FX) rate between the Jamaican dollar (JMD) and the U.S. dollar (USD). Debt is senior secured, with typical project finance features that include limitations on additional indebtedness. Rating case minimum and average debt service coverage ratio (DSCR) are at 1.8x in 2035 and 2.2x, respectively, which are viewed as strong for the rating category according to applicable criteria. The transaction presents robust break-even values for its most important variables and no dependency on traffic growth in order to repay the rated debt. Furthermore, even though the credit profile withstands domestic economic shocks beyond those observed between 2008-2014 when the Jamaican economy deeply deteriorated, the transaction is ultimately capped at Jamaica's Country Ceiling of 'BB-' because of transfer and convertibility risk. KEY RATING DRIVERS Strategically Located Essential Asset [Revenue Risk - Volume: Midrange]: The toll road is the main link between the capital city of Jamaica, Kingston, and other populated urban and industrial centers including the cities of Portmore and May Pen. The asset is currently the only high-speed roadway serving the western part of Kingston's metropolitan area, with an estimated population of 1.4 million people along the corridor. Growth prospects in the long term are underpinned by its position as a strategic asset for the country, along with the fact that motorization rates in Jamaica are still low, so there is potential to increase. Adequate Rate Adjustment Mechanism [Revenue Risk - Price: Midrange]: Toll rates are adjusted annually using an escalation formula based on the U.S. CPI and the FX rate (USD/JMD) evolution, plus an additional 1% until the foreign debt is repaid in full, in accordance with the maximum capped toll level of that period, with additional increases if USD/JMD exchange rate depreciates by more than 10% intra-period. TJH is allowed to annually increase toll rates, but any change needs to be authorized by the roll regulator. If the toll regulator does not authorize such toll rates, the concessionaire would need to be compensated for the lost revenue. Fitch believes it is unlikely that the regulator would choose to cut prices given the toll rates' updated track record since 2009. Fully Operational Asset [Infrastructure Development & Renewal: Midrange]: The toll road has been fully operational, with its four toll plazas, since 2012. It benefits from oversight from an independent engineer who provides financial annual reviews of the budget and the O&M plan and a commentary of the six succeeding semesters. The structure holds a six-month operations and maintenance reserve account, as well as a major maintenance reserve account funded with 100% of the costs to be carried out in the next 12 months, 50% in the next 13 to 24 months and 25% in the next 25 to 36 months. The assessment on this attribute is somewhat limited by the hand back requirements as included in the concession, which oblige the concessionaire to return the project to the grantor in a good and operable condition. TJH has executed an amendment to the concession agreement in which the tenor could be renewed, at any time during 2034, at TJH's request for an additional 35 years. With this updated agreement, the hand back requirements will fall after the maturity of the notes. Nonetheless, Fitch's financial projections assume such expenses will be made in 2035-2036, given the concession currently ends in 2036. Typical Debt Structure [Debt Structure: Midrange]: The notes are senior, fully amortizing, fixed-rate and with typical project finance covenants. There is a six-month debt service reserve account and a lock-up trigger at a 1.25x backward- and forward-looking DSCR. No FX risk is anticipated given the formula for toll rates increase captures movements in the JMD/USD exchange rate. Financial Profile Fitch's Base Case, the project yields a minimum and average DSCR of 2.2x in 2023 and 2.5x. Fitch's Rating Case, the project yields a minimum and average DSCR of 1.8x in 2035 and 2.2x, respectively, which is strong for the rating category under the indicative thresholds of the applicable Fitch criteria, but ultimately constrained by Jamaica's Country Ceiling because of transfer and convertibility risk. PEER GROUP The closest project in the region is Autopistas del Sol, S.A. (AdS; B/Stable) in Costa Rica. AdS and TJH are similar, as both are strong commuting assets within their respective country's capital cities. They also share all attributes at the Midrange level, but the difference in ratings comes from AdS's lower metrics (average DSCR of 1.2x versus 2.2x of TJH under Fitch's rating case). RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: - Negative rating action on Jamaica's Country Ceiling; - Nil or negative traffic growth rate for a sustained period. Factors that could, individually or collectively, lead to positive rating action/upgrade: - Positive rating action on Jamaica's Country Ceiling. TRANSACTION SUMMARY TJH's concession stretches for 49.9km, connecting Kingston with May Pen, and is divided in two fully operational corridors. The first corridor stretches between Kingston and May Pen, with three toll plazas: Spanish Town, Vineyards and May Pen. The other corridor, also called the Portmore Causeway, begins on Marcus Garvey Drive in Kingston and end on Dyke Road in Portmore. The toll road is the largest infrastructure project in Jamaica. In 2020, TJH issued senior secured debt for USD225 million through a fully amortizing bond maturing in 2036 with a fixed 5.75% coupon rate. CREDIT UPDATE In 2021, annual average daily traffic (AADT) was 62,747 vehicles, representing an 11.5% annual growth from 2020 and a 98% recovery from 2019 levels and in line with Fitch's rating case expectation. Looking at each of the toll plazas, we see that the road tranche with the higher commuter's vocation, Portmore, was the one with the slowest recovery, while the rest of the sections with greater commercial traffic and lesser mobility restrictions had a greater resilience and a faster recovery. According to the concessionaire, most social distancing restrictions were lifted since late 2021. As of September 2022, AADT performance has been strong reflected in a 106% recovery from 2019 and above both its base and rating case expectations of 98% and 95%, respectively, for the whole year. Considering that seasonality impacts positively the last quarter volumes, the whole year figures are likely to finish even stronger. According to the concessionaire, this sustained strong performance is explained by the national economy recovery specially in the tourism sector, that is currently at historic highs. Tariff increases were applied by July of 2022 resulting in a weighted average annual increase of 16.4%, above Fitch's rating case that considered significantly lower inflation. In terms of revenue, the project collected USD52.7 million during 2021, 16.2% more than the previous year, and in line with Fitch's rating case expectations. As the traffic mix has remained practically unchanged since the beginning of the pandemic, the strong performance is explained by the traffic and tariff growth. From January to September 2022, toll revenue was USD47.3million, 26.8% compared to the same period of 2021 also as a result of the traffic performance and tariff increases. For the one-year period ending in September 2022, overall O&M expenses were USD23.4 million, and were above Fitch rating case projections while the difference was mainly explained due to the variable component of the O&M fees, given higher traffic, subcontracted with Jamaican Infrastructure Operator Limited (JIO) whose status is about to change to become fully owned by TJH as it is explained below. Regarding capex, during the same period, it reached USD3.4 million, mildly below both Fitch cases given that in its previous review the agency considered a partial deferral of the lifecycle budget that did not happen in the end. Fitch is aware that TJH is completing a process to acquire its operator, JIO, including amendments to the O&M contract to reduce the overall operator fees to the project. Although the agency considers that the effect on net cashflows would be positive given lower expenses, Fitch deems it necessary to apply these changes to its projections to have the signed O&M amended contract along with a track record showing the operator can comply with its contractual obligations under the new contract fees. Likewise, given TJH's is currently capped to Jamaica's country ceiling, this change in its projections would be credit neutral. Finally, from October 2021 to September 2022, the effect of higher-than-expected toll revenues was offset by the underestimation of O&M expenses resulting in lower CFADS and a DSCR of 2.1x, slightly below Fitch rating case expectations of 2.2x. FINANCIAL ANALYSIS Fitch's base case assumes a CAGR from 2023 to 2027 of 2.7%, while afterwards it assumes a CAGR of 2.2% from 2028 to 2036. The cost profile assumed is in line with the sponsor's original assumptions plus a 5% increase. US inflation was assumed at 7.0% in 2022, 3.6% in 2023, 2.7% in 2024, and 2.0% from 2025 and onwards. Jamaican inflation was assumed at 10.2% in 2022, 6.0% in 2023, 4.9% in 2024, and 5.0% from 2025 and onwards Under this scenario, the minimum and average DSCR are 2.2x and 2.5x, respectively. Fitch's rating case assumes a CAGR from 2023 to 2027 of 1.7%, while afterwards it assumes a CAGR of 1.2% from 2028 to 2036. Operating, general and administrative, and maintenance budgeted expenses are increased by 7.5% throughout the tenor of the debt. Inflation assumptions are as in the base case. Rating case metrics are slightly weaker than that of the base case, with minimum and average DSCR of 1.8x in 2035 and 2.2x, respectively. The transaction presents robust break-even values for its most important variables and little dependency on traffic growth in order to repay the rated debt, supporting the project rating above the sovereign rating. SECURITY An onshore all assets debenture providing for (subject to certain exceptions and limitations) a first priority security interest in all present and after-acquired personal property of the Issuer including all Project documents to which it is party, including the Concession Agreement, and the local accounts, and further providing for an assignment of the benefit of the Concession Agreement and the other project documents; an assignment of the concession agreement providing for a collateral assignment of the Issuer's interest in the Concession Agreement; an onshore security trust deed providing for the appointment of the local trustee and for the transaction security to be held on trust for the Secured Parties; the offshore accounts under the Indenture Trustee. 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. Entity/Debt Rating Prior ----------- ------ ----- TransJamaican Highway Limited TransJamaican Highway Limited/ Senior Secured Notes/1 LT LT BB- Affirmed BB- =============== X X X X X X X X =============== LATIN AMERICA: Venezuelan Migrants Bring Economic Opportunity ------------------------------------------------------------- Marco Arena, Emilio Fernandez Corugedo, Jaime Guajardo, and Juan Francisco Yepez at imf.org reports that by promptly integrating migrants, the economies of host countries stand to increase their GDP by as much as 4.5 percentage points by 2030. More than 7 million Venezuelans have fled the country since 2015, with 6 million settling in other Latin American countries. The region's largest migration episode in history is driven by the collapse of the country's economy, which has left Venezuelans struggling to meet their basic needs. Between 2013 and 2021, Venezuela's gross domestic product is estimated to have declined by more than 75 percent, the most for a country not at war in the last 50 years. The COVID-19 pandemic compounded the country's economic and humanitarian crisis, and in 2020 more than 95 percent of Venezuelans were living below the poverty line. The arrival of Venezuelans seeking better lives has strained the economies -- and societies -- of Latin American host countries that are already balancing tight budgets, especially since the pandemic. Colombia, which has received the most Venezuelan migrants, estimated spending about $600 per migrant in 2019. This covered humanitarian aid, healthcare, childcare, education, housing, and job-search support. With more than 2 million arrivals, this translates into $1.3 billion in assistance. In 2019, this cost peaked at 0.5 percent of Colombia's GDP. In the long term, however, this investment has the potential to increase GDP in host countries by up to 4.5 percentage points by 2030, as we find in our latest research on the spillovers from Venezuela's migration. To reap the benefits from migration, host countries need to integrate the new arrivals into the formal labor force-and society-by promptly offering them work permits and access to education and healthcare. Migration Flows After a brief interruption during the pandemic, when many countries closed their borders, migration from Venezuela has resumed and is expected to continue in the coming years, although at a slower pace. We estimate that Venezuelan migrants will number around 8.4 million by 2025 -- more than 25 percent of the country's population in 2015. The characteristics of migrants have evolved as the economic crisis intensified. The first wave of migrants were mostly professionals with high levels of education. The second consisted of middle-class young people with a university degree. Since the economy collapsed in 2017-2018, migrants have tended to be from low-income households and with lower levels of education. Overall, the demographic profile of Venezuela's migrants is like that of the local population in host countries. Almost two-thirds are of working age and almost half are female. Most have settled in other Latin American countries, while some have migrated to North America and Europe, mainly the US and Spain. While Colombia remains the main destination, Chile, Ecuador, and Peru have also received sizable flows, with their combined number of migrants exceeding 2 million, more than 3 percent of the local population on average. Effect on Labor Markets Our research finds that Venezuelan migrants -- many of them more educated than the local populations -- face higher unemployment, are more likely to initially work in the informal sector, and earn less than the local workers. We didn't find evidence that migrants are displacing domestic workers, although we have seen downward pressure on wages in the informal sector. The wage gap between domestic and migrant workers grows with the level of education, which suggests a misallocation of human capital-workers' skills, knowledge, and expertise-as educated migrants tend to only find unskilled jobs. On average, domestic workers earn about 30 percent more than migrants. Cost and Benefits Our analysis finds that providing migrants with humanitarian assistance and access to public services carries a sizable fiscal cost and puts pressure on the budgets of host countries, as the Colombia example shows. But the analysis also identifies large medium-term gains in productivity and growth resulting from an increase in the labor force and better alignment of migrants' human capital with jobs. These gains are greater for countries that receive larger and more educated migrant flows relative to the domestic population. We estimate that, with the right support and integration policies, migration from Venezuela has the potential to increase real GDP in Peru, Colombia, Ecuador, and Chile by 2.5 to 4.5 percentage points relative to a no-migration baseline by 2030. We also project that the cost of integrating migrants would narrow over time as migrants join the labor force, increasing economic activity and expanding the tax base. Continued Support Early in the migration crisis, countries in Latin America welcomed Venezuelan migrants and provided support in the form of visa waivers, mobility cards, and access to humanitarian assistance, healthcare, education, and childcare. Migrants also received work permits and credentials to help them integrate into the labor market. However, in 2018 and 2019, we saw a shift in policies as migration flows intensified. While some countries introduced new programs to facilitate the integration of migrants, others made it harder for Venezuelans to enter by requiring additional documentation. Countries should continue supporting migrants and helping them integrate into the formal sector so they can find jobs that are in line with their human capital and increase productivity in the economy. This will require improving transitional arrangements and asylum systems, bringing in migrants into the health and education systems, and formalizing migrant workers by giving them work permits and accelerating the accreditation of skills and education. To cover the costs of implementing these policies, countries should seek help from donors and international institutions. The IMF is analyzing the impact of migration and coordinating with the United Nations High Commissioner for Refugees and other relevant agencies to help countries access funding sources. Countries in the region should also agree on a coordinated response to the migration crisis, in which each one contributes its fair share to the support and integration of migrants. ********* 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 * * *