/raid1/www/Hosts/bankrupt/TCRLA_Public/221216.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

          Friday, December 16, 2022, Vol. 23, No. 245

                           Headlines



B R A Z I L

BANCO NACIONAL: No Longer Selling Eletrobras Shares This Year
BRAZIL: Industrial Output Rises in Oct. but Outlook Remains Cloudy
VARIG LOGISTICA: Stipulation Among Appeal Parties Granted


C A Y M A N   I S L A N D S

SPIRIT AIRLINES: Fitch Corrects Nov. 9 Ratings Release


D O M I N I C A N   R E P U B L I C

[*] DOMINICAN REPUBLIC: Promotes Exportable Products in Qatar


J A M A I C A

PALACE AMUSEMENT: Board to Decide on Stock Split


M E X I C O

MEXICO REMITTANCES: Fitch Affirms BB+ Rating on $500M 2021-1 Notes


P E R U

PERU: IDB OKs $50M Loan to Improve Quality of Supply Services

                           - - - - -


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

BANCO NACIONAL: No Longer Selling Eletrobras Shares This Year
-------------------------------------------------------------
Rodrigo Viga Gaier at Reuters reports that Brazil's state
development bank BNDES will no longer sell shares it owns in power
firm Eletrobras (ELET6.SA) this year, two sources familiar with the
matter said, citing a lack of time for a potential sale of a stake
in the company to be concluded as well as worsening macroeconomic
conditions.

Eletrobras, Latin America's largest utility, was privatized earlier
in 2022 when the federal government diluted its stake in the firm,
but a lock-up prevented additional share sales until early
December, according to Reuters.

With the deadline reached, markets had expected BNDES to sell part
of its stake in the firm, formally known as Centrais Eletricas
Brasileiras SA, the report notes.

Local newspaper Valor Economico reported earlier this month that
BNDES was mulling a BRL7 billion ($1.3 billion) sale of its stake
in Eletrobras in a block trade, the report relays.

According to the sources, who spoke on condition of anonymity, the
development bank carried out internal assessments on a potential
transaction, but the idea did not go ahead, the report notes.

"The bank will not sell these Eletrobras shares, decision taken,"
said one of the people close to the matter, the report discloses.

BNDES did not immediately respond to a request for comment.

A second source also said that the possibility was considered, but
time was too short and there would also be governance hurdles for
the transaction to be concluded, the report says.

BNDES holds 74.55 million ordinary shares in Eletrobras directly
and 71.96 million through its investment vehicle BNDESPar,
according to Refinitiv data, the report notes.

Selling shares in companies such as Eletrobras, miner Vale SA
(VALE3.SA) and meatpackers JBS SA (JBSS3.SA) and Marfrig Global
Foods SA (MRFG3.SA) was a major profit driver for BNDES during
President Jair Bolsonaro's administration, the report relays.

The strategy is likely to change next year, however, as Bolsonaro
recently had his re-election bid frustrated by President-elect Luiz
Inacio Lula da Silva, who is expected to pause such divestments
after taking office on Jan. 1, the report notes.

Investors have been rattled by some of Lula's decisions, including
tapping a veteran from his Workers Party, Aloizio Mercadante, as
the next head of BNDES, the report discloses.

One of the sources said that worsening economic conditions also
made it impossible for BNDES to sell Eletrobras shares, the report
says.

"When you have a big macro change, and that's what happened now,
you need to redo a much of the work," the source said. "The 'Brazil
risk' today is much higher, interest rates are higher, so you have
to redo and update the internal analyses," the report adds.

As reported in the Troubled Company Reporter-Latin America on June
7, 2022, Fitch Ratings has affirmed the Long-Term Foreign and Local
Currency Issuer Default Ratings (IDRs) of Banco Nacional de
Desenvolvimento Economico e Social (BNDES) at 'BB-' with a Negative
Rating Outlook.  Fitch also affirmed BNDES's long-term National
Rating at 'AA(bra)'/Stable.

BRAZIL: Industrial Output Rises in Oct. but Outlook Remains Cloudy
------------------------------------------------------------------
Reuters reports that industrial production in Brazil rose 0.3% in
October from September, government statistics agency IBGE said,
returning to positive territory after two consecutive monthly
declines though still below pre-pandemic levels.

Production in October also grew 1.7% from a year earlier, slightly
above market consensus of a 1.6% rise. Industrial output data in
Latin America's largest economy have been volatile this year -
after an uptick early in 2022, when it posted four straight monthly
gains, the sector has recently faced a slowdown, according to
Reuters.

                        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).


VARIG LOGISTICA: Stipulation Among Appeal Parties Granted
---------------------------------------------------------
In the appealed cases VANIO CESAR PICKLER AGUIAR, not individually
but as Judicial Administrator and Foreign Representative of the
Bankruptcy Estate of Varig Logistica, S.A., Appellant, v. MATLIN
PATTERSON GLOBAL OPPORTUNITIES PARTNERS, L.P. et al., Appellees.
VANIO CESAR PICKLER AGUIAR, not individually but as Judicial
Administrator and Foreign Representative of the Bankruptcy Estate
of Varig Logistica, S.A., Appellant, v. MATLIN PATTERSON GLOBAL
OPPORTUNITIES PARTNERS, L.P. et al., Appellees. VANIO CESAR PICKLER
AGUIAR, not individually but As Judicial Administrator and Foreign
Representative of the Bankruptcy Estate of Varig Logistica, S.A.,
Appellant, v. MATLIN PATTERSON GLOBAL OPPORTUNITIES PARTNERS, L.P.
et al., Appellees, Case Nos. 22 CIV 8136 (PAE), 22 CIV 8110 (PAE),
22 CIV 9568 (PAE), (S.D.N.Y.), District Judge Paul A. Engelmayer
grants the Appeal Parties' stipulation and request for approval
regarding jurisdictional issues, consolidation, and brief length.

The Appellant Vanio Cesar Pickier Aguiar, as Judicial Administrator
and Foreign Representative of the Bankruptcy Estate of Yarig
Logistica, S.A., filed three appeals all from orders entered in the
same bankruptcy cases for the Debtors pending in the U.S.
Bankruptcy Court for the Southern District of New York -- Case No.
22 CIV 8110 (PAE) ("Conversion Denial Order Appeal"); Case No. 22
CIV 8136 (PAE) ("VRG Settlement Order Appeal"); and Case No. 22 CIV
9568 (PAR) ("HJDK Settlement Order Appeal").

One or more of the Appellees assert that the District Court lacks
appellate jurisdiction to review the Conversion Denial Order in any
of the docketed appeals. On Nov. 2, 2022, the District Court held a
telephonic conference regarding the Conversion Denial Order Appeal
and the VRG Settlement Order Appeal. At the conference, the
District Court urged the parties to coordinate briefing among all
three appeals, and counsel for the Appellant, Debtors, and VRG
addressed on the record certain of the topics addressed by the
Stipulation during said conference.

The Appellant and the Appellees MatlinPatterson Global
Opportunities Partners, L.P., MatlinPatterson Global Opportunities
Partners (Cayman) II L.P., MatlinPatterson Global Partners II LLC,
MatlinPatterson Global Advisers LLC, MatlinPatterson PE Holdings
LLC, Volo Logistics LLC, MatlinPatterson Global Opportunities
Partners (SUB) II, Gol Linhas Aereas, S.A. formerly known as VRG
Linhas Aereas, S.A., HJDK Aerospacial, S.A., and Zurich American
Insurance Company, has stipulated and agreed that:

   (1) The Appellant, the Debtors, and VRG agree that they will
address all issues regarding the appellate jurisdiction to review
the Conversion Denial Order, including requests for leave to
appeal, in their respective initial, response, and reply briefs and
not by way of separate motion practice.

   (2) The Appellant, the Debtors, HJDK, and Zurich agree that
the
appeal of the HJDK Settlement Order contains issues that overlap
with the appeal of the VRG Settlement Order such that all consent
to such appeal being treated as related to the above-captioned
appeals.

   (3) The Appellant and all the Appellees agree that the
District
Court should consolidate the Conversion Denial Order Appeal, the
VRG Settlement Order Appeal and the HJDK Settlement Order Appeal
for all purposes, including the briefing schedule previously
ordered by the District Court in the Conversion Denial Order Appeal
and the VRG Settlement Order Appeal.

   (4) The Appellant and the Appellees agree that the page
limitation for Appellant's initial brief and the response briefs
of
each of the Appellees be increased from thirty (30) pages as per
Fed. R. Bankr. P. 8015(a)(7) to forty-eight (48) pages, that the
page limitation for Appellant's reply brief be increased from
fifteen (15) pages as per Fed. R. Bankr. P. 8015(a)(7) to
twenty-five (25) pages, and that the word limitations for each
brief will be increased accordingly.

A full-text copy of the Order dated Nov. 30, 2022, is available at
https://tinyurl.com/rz792wry from Leagle.com.

                     About Varig Logistica

Varig Logistica SA was a Brazilian cargo airline and provided air
transport services to major cargo companies including, among
others, Federal Express, DHL and UPS.  It was previously
controlled by affiliates of MatlinPatterson Global Advisers LLC.

On March 31, 2009, Alexandre Savio Abs da Cruz, manager of flight
operations of Varig Logstica S.A., filed a Chapter 15 petition for
the company (Bankr. S.D. Fla., Case No. 09-15717). Stephen P.
Drobny, Esq., served as the petitioner's counsel.  The Company
listed assets and debts of $100 million to $500 million.



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

SPIRIT AIRLINES: Fitch Corrects Nov. 9 Ratings Release
------------------------------------------------------
Fitch Ratings issued a correction of a rating action commentary
published on Nov. 9, 2022 on Spirit Airlines. It lists the correct
legal issuing entities for Spirit Airlines' loyalty program debt
issuances. This correction does not affect any existing ratings.
No new rating actions are being taken at this time.

The corrected release is as follows:

Fitch Ratings has downgraded Spirit Airlines, Inc.'s (Spirit)
long-term Issuer Default Rating (IDR) to 'B+' from 'BB-'. The
Rating Outlook is Stable. Fitch has affirmed the Spirit IP Cayman
Ltd. and Spirit Loyalty Cayman Ltd. senior secured debt at
'BB+'/'RR1' and assigned a rating of 'BB+'/'RR1' to their proposed
senior secured notes. Spirit IP Cayman Ltd. and Spirit Loyalty
Cayman Ltd. act as co-issuers of the debt with Spirit Airlines,
Inc. acting as Parent Guarantor

Fitch believes improvement of Spirit's credit metrics to levels
that support a 'BB' category rating will be prolonged beyond its
prior expectations. Various headwinds including pilot constraints,
aircraft delays, and general inflationary pressures contribute to
its expectations that Spirit's operating margins will remain well
below historical levels at least through 2023. Fitch estimates that
total adjusted leverage will remain above its negative sensitivity
of 4.75x through 2024.

The 'B+' rating remains supported by Spirit's solid liquidity
balance and its low cost structure relative to competitors, which
positions the company well to capture price-sensitive consumers in
a recessionary environment.

Fitch evaluates Spirit's credit profile on a standalone basis.
Spirit has agreed to be acquired by JetBlue, but significant
uncertainty remains around the ultimate closing of the transaction.
Fitch will evaluate the two companies on a combined basis when the
transaction closes.

KEY RATING DRIVERS

Planned Bond Issuance: Spirit plans to issue a new series of senior
secured notes as an add-on to its existing 8% loyalty program
backed notes due in 2025. Proceeds will be used for general
corporate purposes, including building additional liquidity ahead
of a potentially volatile operating environment in 2023. Fitch
views the additional liquidity as prudent given current
macroeconomic uncertainties. However, the issuance raises potential
refinancing risk when the loyalty bonds come due in 2025. The
company utilized an equity issuance in 2021 to prepay $340 million
of the original notes, leaving $510 million outstanding today.

Fitch believes the core nature of the collateral represented by the
loyalty program and Spirit Saver$ Club and by the necessity to
maintain access to the Spirit brand provide compelling motivation
for the airline to affirm its obligations in a bankruptcy
scenario.

However, the value of the assets largely rests on Spirit continuing
as a going concern. Liquidation of the airline would materially
impact the collateral values and weaken recovery.

Delayed Improvement in Profitability: Fitch has cut its
expectations for Spirit's operating margins in 2022 and 2023,
causing credit metrics to remain weak for a 'BB' category rating
for longer than previously anticipated. Spirit's aircraft
utilization remains significantly below pre-pandemic levels as
staffing, training, supply chain, and infrastructure issues all
contribute to limits in the airlines' ability to fully utilize its
assets. Spirit's average daily aircraft utilization was 10.6 hours
in 3Q 2022, down from 12.5 hours in 3Q 2019.

Fitch expects asset utilization and profitability to improve
sequentially in 2023, particularly as limited capacity growth by US
carriers continues to limit seat supply and support pricing.
However, its 2023 forecasts are at risk from increasing
macroeconomic pressures, and a sharper than expected downturn in
travel demand could pressure metrics further. Fitch expects Spirit
to generate modestly negative EBIT margins for 2022 and near
breakeven margins in 2023, compared to low-to-mid teens margins
generated prior to the pandemic.

Unit Cost Pressures: Cost pressures have hit Spirit harder than
most U.S. carriers. Fitch expects the company's non-fuel costs to
be up in the low 20% range over 2019 levels while many network
airlines are anticipating mid-teen increases. Spirit's low cost
structure remains a competitive advantage. Cost Per Available Seat
Mile excluding fuel (CASM-ex) is more than 30% below its closest
competitor, allowing the company to stimulate demand with low
fares. However, Spirit's low cost structure partially relies on
growth and high utilization, which may be limited at least through
2023.

Leisure Demand Remains Strong: In the near term, demand for leisure
and visiting friends & relatives (VFR) travel remains strong.  

Multiple U.S. airlines are reporting solid forward-bookings into
the third quarter of 2022 and around the holiday season. Fitch
believes that the demand picture is increasingly at risk in 2023
from rising macro pressures. However, its base case remains that
demand remains supported by a shift in consumer spending from goods
to services, and pent up desire to travel from the pandemic, which
should soften the impact to the industry.

Spirit is also well positioned as a low cost/low-fare operator as a
weakening economy may drive some amount of 'buying down' from the
full-service operators. For the second quarter, Spirit reported
traffic that was 11.3% above the same period in 2019 with total
revenue per available seat mile up 22.8%.

Aggressive Planned Growth: Spirit maintains an aggressive growth
strategy. High levels of planned growth pose some risk if demand
were to fall in a recessionary environment. Spirit also faces
execution risk related to the pilot shortage and other supply chain
constraints. The company reports higher than normal rates of pilot
attrition and difficulty hiring new pilots due to attractive rates
being offered by other airlines. Staffing shortfalls may lead to
continued underutilization of Spirit's assets. The company is
currently in negotiations with its pilots' union to address issues
with attrition. However, increased pilot pay will also represent a
cost headwind.

Spirit's fleet has grown to 184 aircraft up from 145 prior to the
pandemic, and the company has another 154 aircraft to be delivered
through the end of 2027 including 113 on order with Airbus and
another 40 under direct operating leases. Spirit plans to grow
capacity in the mid 20% range in 2023.

Negative FCF: Fitch expects FCF to remain negative through 2023 as
operating margins remain below historical averages. Spirit plans to
use sale-leaseback financing the for the bulk of its aircraft
deliveries, limiting its upfront capital expenditures, and
potentially allowing FCF to turn positive in 2024. However,
aircraft lease expenditures are expected to increase materially
through the forecast period, keeping pressure on Spirit's lease
adjusted leverage. Fitch expects Spirit's total adjusted leverage
to remain above levels that support the 'B+' rating at least
through 2023, before trending lower in 2024 and 2025. Adjusted
leverage may approach 4x by the end of Fitch's forecast period in
2025.

KEY ASSUMPTIONS

- Fitch's base case incorporates capacity and traffic growing by
mid-teens percentages in 2023. Fitch's base case is conservative to
management's projections, incorporating potentially lower demand
due to weakening macroeconomic conditions.

- Fitch expects modestly lower yields in 2023 compared to 2022
reflecting economic pressures. Yields are expected to expand
modestly beyond 2023.

- Jet Fuel is assumed at $3.45/gallon for 2023, declining modestly
thereafter.

Recovery Assumptions

Fitch's recovery analysis assumes that Spirit would be reorganized
as a going concern (GC) in bankruptcy rather than liquidated. Fitch
has assumed a 10% administrative claim. The GC EBITDA estimate
reflects Fitch's view of a sustainable, post-reorganization EBITDA
level, which is the basis for the enterprise valuation
calculation.

Fitch views its GC EBITDA assumption as conservative as it remains
below levels generated prior to the COVID downturn, but it
incorporates potential structural changes to the industry driven by
the pandemic.

Fitch uses a GC EBITDA estimate of $450 million and a 5.5x
multiple, generating an estimated GC enterprise value (EV) of $2.5
billion. Fitch's affirmation of the senior secured ratings at 'RR1'
assumes that the loyalty program and brand IP collateral account
for roughly 50% of the total enterprise value of the company. This
valuation is supported in part by the planned increase in Spirit's
Brand IP license royalty payment to 5% of total revenue, up from 2%
of total revenue previously.

RATING SENSITIVITIES

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

- Consummation of the acquisition by JetBlue in a credit conscious
manner.

Standalone Spirit Airlines Sensitivities:

- Adjusted debt/EBITDAR sustained below 4.5x;

- FFO fixed-charge coverage sustained around 2.5x;

- Improving operational stability leading FCF to trend towards
neutral or higher and EBITDA trending towards pre-pandemic levels.

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

- Completion of the acquisition by JetBlue in a manner leading
credit or operating metrics remaining above levels commensurate
with the current rating.

Standalone Spirit Airlines Sensitivities:

- Adjusted debt/EBITDAR sustained above 5x beyond 2024;

- EBITDAR margins sustained in the low double-digit range;

- FFO fixed-charged coverage sustained at 1.5x or below;

- Liquidity declining toward 10%of LTM revenue.

LIQUIDITY AND DEBT STRUCTURE

Sufficient Liquidity: As of Sept. 30, 2022, Spirit had cash and
cash equivalents of $953.4 million plus $106.3 million in
short-term investments. The company also has full availability
under $240 million revolving credit facility which matures in
2024.

Total liquidity is equal to 25.5% of Spirit's projected 2022
revenue. Spirit's short-term investments consist of U.S. treasury
and government agency securities with maturities of less than 12
months. The pending debt issuance will bring Spirit's total
available cash to about $1.5 billion.

While Fitch views Spirit's liquidity position as solid for the
rating, the company has pared down its liquidity more quickly
compared to other U.S. carriers that have maintained elevated cash
levels in the face of an uncertain operating environment. Spirit's
total liquidity is roughly 20% above levels held at YE 2019, a much
smaller increase than most other airlines. Its liquidity position
is smaller relative to its overall size as the company continued to
grow during the pandemic. Spirit's active fleet will be a third
larger at YE 2022 than it was at YE 2019.

Fitch views Spirit's upcoming debt maturities as manageable given
its cash on hand and undrawn revolver. Maturities total $96.2
million for the last six months of 2022, $336.6 million in 2023 and
$222.1 million in 2024. Maturities become more material in 2025
when the company's $510 million, 8% secured notes come due.

ISSUER PROFILE

Spirit is a Florida-based ultra low-cost air carrier. It emphasizes
very low ticket prices and an unbundled fare structure, with the
cost of the ticket only buying a seat on the plane and little
else.

Non-ticket revenue makes about 50% of Spirit's total revenue.

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        Recovery   Prior
   -----------             ------        --------   -----
Spirit Loyalty
Cayman Ltd.
  
   senior secured   LT     BB+
Affirmed     RR1       BB+

   senior secured   LT     BB+ New
Rating   RR1       BB+

Spirit IP Cayman
Ltd.

   senior secured   LT     BB+
Affirmed     RR1       BB+

   senior secured   LT     BB+ New
Rating   RR1       BB+

Spirit Airlines,
Inc.                LT IDR
B+  Downgrade              BB-




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D O M I N I C A N   R E P U B L I C
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[*] DOMINICAN REPUBLIC: Promotes Exportable Products in Qatar
-------------------------------------------------------------
Dominican Today reports that Biviana Riveiro Disla, executive
director of the Export and Investment Center of the Dominican
Republic (ProDominicana), visited Qatar as part of the special
mission to strengthen the Dominican Republic's commercial export
and investment ties with Qatar.

The executive director, accompanied by the country's ambassador to
that country, George Bahsa, attended several meetings with business
entities and government officials to identify investment
opportunities and strategic alliances with companies in that
country that will allow for greater trade growth, according to
Dominican Today.

Among the meetings are Abu Khalifa Trading, Lulu Group
International, International Foodstuff Group, Qatar National Import
& Export, Qatar Duty-Free, Al Meera, Ali Bin Ali, Lesha Bank, Grupo
Casa DR, Salam International, That's Living, Qatar Airways, the
report notes.  Riveiro stated that during her visit, "she has
presented the Dominican Republic's thriving and diverse economy to
Qatari companies and business leaders," the report relays.

She also emphasized that these actions allow for greater business
opportunities in a variety of sectors, including tourism, medical
services, real estate, energy, aviation, and free zones, among
others, the report discloses.

During this mission, a cultural event was held to promote the
country's exportable offer, specifically cigars, rum, coffee, and
chocolate, as well as to show other products manufactured in the
country, some of which are already in said market, such as
prestigious cigarette brands and fashion clothing from the Camila
Casual brand and Laura Tosato jewelry, represented by Grupo Casa
Dr, and others such as Dominican rum from the Brugal brand, the
report relays.

This market opening was made possible by the Ministry of Foreign
Affairs and ProDominicana working together to promote the holding
of events, participation in fairs such as Agriteq, and the
activities of the Dominican Week held a year ago, 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.




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

PALACE AMUSEMENT: Board to Decide on Stock Split
------------------------------------------------
RJR News reports that Palace Amusement says its board will be
discussing a stock split at its board meeting.

A stock split is where a company decides to increase the number of
shares by issuing more shares to current shareholders, according to
RJR News.

For example, in a 2-for-1 stock split, a shareholder receives an
additional share for each share held, the report notes.

Palace traded at $821.27 Dec. 12, but it has traded as high as one
thousand $150 in the last 52-weeks, the report adds.

As reported in the Troubled Company Reporter-Latin America on Oct.
11, 2022,  RJR News reports that entertainment and movie company
Palace Amusement recorded a loss in its financial year ended June.
Total losses amounted to $252.1 million compared to a profit of
$240.9 million, according to RJR News. Palace Amusement says its
performance was driven by the prolonged closure of its cinema
during the COVID-19 pandemic, when restrictions were in place.
TCRLA reported that Palace Amusement continues to see mounting
financial losses.  For the quarter ended December, the company
made a loss of $111.1 million, according to the report.  That was
up from the $81 million loss suffered during the same period in
2020, the report noted. The quarter's performance increased
Palace's losses for the mid-point of its fiscal year, to $191
million, the report relayed.



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

MEXICO REMITTANCES: Fitch Affirms BB+ Rating on $500M 2021-1 Notes
------------------------------------------------------------------
Fitch Ratings has affirmed the rating on the $500 million series
2021-1 notes issued by Mexico Remittances Funding Fiduciary Estate.
The Rating Outlook is Stable.

The rating reflects the one-notch uplift from the originator's -
Nueva Elektra del Milenio S.A. de C.V. (NEM, BB/Stable) - Long-Term
Local-Currency Issuer Default Rating (IDR), given the strength of
cash flow and the transaction structure. The rating also considers
the high future flow debt relative to NEM's total liabilities.

   Entity/Debt           Rating        Prior
   -----------           ------        -----
Mexico Remittances
Funding Fiduciary
Estate

   2021-1 593035AA6   LT BB+  Affirmed   BB+

TRANSACTION SUMMARY

The future flow program is backed by existing and future
reimbursement remittance transactions (RRT) originated mainly in
the U.S. These are processed by NEM money transfer operators
(MTOs), which transfer remittances to NEM via a reimbursement
mechanism model. The majority of RRTs are processed by MTOs that
execute notice and consent agreements, irrevocably obligating the
designated remitters (DRs) to make payments to an account
controlled by the transaction trustee. Fitch's rating addresses
timely payment of principal and interest (P&I) on a quarterly
basis.

KEY RATING DRIVERS

Future Flow Rating Driven by Originator's Credit Quality: The
rating of this future flow transaction is tied to the credit
quality of the originator, NEM. NEM's credit ratings are highly
linked to its parent, Grupo Elektra, S.A.B. de C.V. (Elektra,
BB/Stable), given the strategic role NEM plays in consolidating the
group's commercial business.

Notching Differential Limited by Going Concern Assessment (GCA)
Score: Timely payment on the notes depends on the ongoing
performance of NEM's remittance business. NEM's GCA score of '3'
acts as a cap for the transaction rating. The GCA score provides an
indication of the likelihood that NEM continues to operate in the
event of default. The GCA score could allow for up to a two-notch
rating differential between the IDR of the originator and the
issuance; however, additional factors limit the maximum uplift.

Notching Uplift from Local-Currency IDR Limited by Several Factors:
The GCA score allows for a maximum two-notch rating uplift from the
company's Local-Currency IDR, pursuant to Fitch's future flow
methodology. However, uplift is tempered to one notch from NEM's
IDR due to factors mentioned below, including the high future flow
debt relative to the company's balance sheet.

Future Flow Debt Relative to NEM's Balance Sheet: NEM has a limited
funding mix, as a majority of funding is held at the parent level.
Additionally, the majority of liabilities held on NEM's balance
sheet are current liabilities due to affiliated companies. The $500
million 2021-1 notes represent approximately 84.8% of NEM's total
funding utilizing financials as of September 2022. Fitch also
considered total future flow debt relative to Elektra's balance
sheet, representing approximately 39.9% of its total long-term
funding.

These ratios are considered high by Fitch and constrain the
assigned rating. Nevertheless, Fitch analyzed the potential
benefits the structure brings to the transaction to allow some
notching differentiation.

Coverage Levels Commensurate with Assigned Rating: When considering
maximum quarterly debt service and cash flows between Oct. 2017 -
Sept. 2022 from DRs, the projected quarterly minimum debt service
coverage ratio (DSCR) is expected to be approximately 73.6x. The
transaction would be able to withstand a decline in flows of
approximately 98.6% and still cover a maximum P&I payment.
Nevertheless, Fitch will monitor the performance of the remittance
flows, as potential pressures could negatively affect the assigned
ratings.

Parent Provides Corporate Guaranty: Elektra has provided an
irrevocable and unconditional guarantee on a senior basis to the
collateral agent on behalf of investors, guaranteeing the full and
prompt payment of all payments when due by NEM under the
transaction documents. Given the unconditional and irrevocable
nature of the guarantee in place, the rating of the transaction
will always be the highest of either Elektra' ratings or the
ratings of NEM plus the notching differential allowed by the GCA
score.

Foreign Exchange Risk Mitigated by Excess Cash Flows: The
transaction is exposed to a two-day rolling devaluation risk as
remittance flows are paid in Mexican pesos by the DRs, although the
liabilities are U.S. dollar-denominated. This risk is mitigated by
significant excess coverage in cash flows to support Mexican peso
depreciation.

Transfer and Convertibility Risk Caps Transaction Rating: The
transaction is exposed to transfer and convertibility risks as
securitized remittance flows are paid into an account in pesos. To
partially mitigate operational risk that may arise from
transferring and converting flows on a daily basis to an off-shore
account, the transaction maintains a reserve fund that covers one
maximum P&I payment. Nevertheless, this exposure caps the rating of
the transaction at Mexico's Country Ceiling of 'BBB+'.

RATING SENSITIVITIES

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

- The transaction ratings are sensitive to changes in the credit
quality of both Elektra and NEM. A deterioration of the credit
quality of Elektra or NEM is likely to trigger a negative rating
action.

- The transaction ratings are also sensitive to the ability of the
remittance business line to continue operating, as reflected by the
GCA score, and a change in Fitch's view on the company's GCA score
can lead to a change in the transaction's rating. Additionally, the
transaction rating is sensitive to the performance of the
securitized business line. The expected quarterly DSCR is
approximately 73.6x, and should be able to withstand a significant
decline in cash flows in the absence of other issues. However,
significant declines in flows could lead to a negative rating
action. Any changes in these variables will be analyzed in a rating
committee to assess the possible impact on the transaction
ratings.

No company is immune to the economic and political conditions of
its home country. Political risks and the potential for sovereign
interference may increase as a sovereign's rating is downgraded.
However, the underlying structure and transaction enhancements
mitigate these risks to a level consistent with the assigned
rating.

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

- The main constraint to the program rating is the originator, NEM.
Given the unconditional and irrevocable nature of the guaranty
provided by Elektra, NEM's parent, the rating of the transaction
will always be the highest of either Elektra's ratings or the
ratings of NEM plus the notching differential allowed by the GCA
score. Therefore, if there is a positive rating action on either
Elektra or NEM's ratings, a positive rating action could be
triggered on the notes.

- In September 2022, Fitch revised its "Global Economic Outlook"
forecasts 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 and Fitch has 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 sub-sectors ("What a
Stagflation Scenario Would Mean for Global Structured Finance").
Fitch expects LatAm's Global Cross-Sector's financial future flow
transactions in the assumed adverse scenario to experience
"Virtually No Impact" indicating a low risk for rating changes.

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.



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

PERU: IDB OKs $50M Loan to Improve Quality of Supply Services
-------------------------------------------------------------
Peru will more efficiently provide goods, services, and works for
its citizens through a $50 million loan from the Inter-American
Development Bank (IDB).

The financing will help optimize the National Supply System (SNA)
by giving it a solid information technology infrastructure, as well
as specific information systems that will allow goods to be traced
and provide public access to information to promote citizen
participation, transparency, and accountability.

The project will support the design of a model for managing the
public supply chain. This model will incorporate different
activities ranging from identifying the needs of public entities to
effectively delivering the supplies those agencies need.

The new model will integrate supply management with other
administrative systems under the governance of the Ministry of
Economy and Finance so officials can make decisions based on
quality information, with the support of modern and innovative
methodologies and tools that leverage digital technologies and
encourage best practices, with the ultimate goal of creating public
value.

The project will improve the administration of real estate assets,
helping to reduce rental expenses and better manage information on
the availability and condition of properties so they can be
assigned to and used by public entities. Additionally, it will
provide training and certification for government officials who
work in supply management, as a key step towards professionalism in
programming activities, procurement management, and asset
management. It will also deploy strategies for economic, social and
environmental sustainability; for social inclusion; and for
boosting women's participation in procurement.

The project will enable citizens to receive public goods and
services in a timely, efficient, and effective manner. It includes
pilot interventions in health and education to expand the rapid
availability of medicines and educational materials. These
interventions will help close gaps in the delivery of essential
government services.

The $50 million loan has a 16-year term, a nine-year grace period,
and an interest rate based on the Secured Overnight Financing Rate
(SOFR).




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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
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