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       T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Tuesday, January 10, 2023, Vol. 24, No. 8

                           Headlines



A R G E N T I N A

ARGENTINA: S&P Cuts Local Currency Sovereign ICRs to 'SD/SD'


B R A Z I L

BRAZIL: Dollar Drops for 1st Time Since Silva's Inauguration
BRAZIL: Price of Wheat, Flour and Bread in Parana Slight Fall


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Interest Rate Rose From 4.50 to 8.50 in 2022
DOMINICAN REPUBLIC: No Growth in Construction Due to High Prices


J A M A I C A

DIGICEL INTERNATIONAL: $1.06B Bank Debt Trades at 16% Discount
JAMAICA: Construction Output Fell in September 2022 Quarter


T R I N I D A D   A N D   T O B A G O

[*] TRINIDAD & TOBAGO: Minister Hails Bernal as 'Trade Leader'

                           - - - - -


=================
A R G E N T I N A
=================

ARGENTINA: S&P Cuts Local Currency Sovereign ICRs to 'SD/SD'
------------------------------------------------------------
On Jan. 6, 2023, S&P Global Ratings lowered its local currency
sovereign issuer credit ratings on Argentina to 'SD/SD' from
'CCC-/C' and its national scale rating to 'SD' from 'raCCC+'. None
of our rated bond issues are affected. S&P affirmed its 'CCC+/C'
foreign currency sovereign issuer credit ratings on Argentina. The
outlook on the long-term foreign currency rating remains negative.
S&P's 'CCC+' transfer and convertibility assessment is unchanged.

Outlook

The negative outlook on the long-term foreign currency rating
reflects risks surrounding pronounced economic imbalances and
policy uncertainties before and after the 2023 national elections.
Global capital markets are closed to Argentina. Moreover,
disagreement within the government coalition, and infighting among
the opposition, constrains the sovereign's ability to implement
timely changes in economic policy.

Downside scenario

S&P said, "We could lower the foreign currency ratings over the
next six to 12 months on unexpected negative policy or political
developments that undermine already limited access to financing.
Meaningful setbacks in execution under the Extended Fund Facility
(EFF) would complicate access to IMF financing, and potentially
from other multilateral lending institutions. This scenario would
likely further damage local investor confidence and hamper access
to peso-denominated debt markets--exacerbating the need for
recourse to central bank financing amid high inflation--and lead to
a downgrade. Heightened pressure in local financial markets,
including the banking system's deposit base, or difficulties in
managing central bank debt (LELIQs), could also lead to a
downgrade."

Upside scenario

Upon completion of the local currency debt exchange, S&P would
likely raise its long-term local currency rating to the 'CCC'
category, at which point it would consider the default to be
"cured," as per its criteria.

S&P could raise the foreign currency ratings over the next six to
12 months following:

-- A track record of successful execution under the EFF, and

-- Clarity on how policy will ease financing challenges in the
local market and provide a road map to address Argentina's major
structural macroeconomic imbalances.

S&P could also raise the ratings if there is a more pronounced
economic recovery that supports stronger fiscal outcomes that take
pressure off the government's financing needs.

Rationale

S&P said, "We lowered our local currency ratings on Argentina to
'SD' following this week's peso debt exchange that we view as
distressed, rather than opportunistic, owing to the government's
weak market access. This week's swap to clear peso maturities
coming due in the first quarter 2023 is the third such operation
since August 2022.

"In general, at such low rating levels, we consider most exchanges
as distressed and tantamount to a default. We had signaled, after
the last two swaps, that we would analyze any subsequent debt
exchanges at this low rating level on a case-by-case basis and in
the macroeconomic and political context. We indicated that we could
classify such exchanges as a distressed exchange, indicating a view
that absent participation, a conventional default would likely
ensue. With the elections forthcoming amid macroeconomic and
political stress, in our view, the government is relying on
exchanges to manage the majority of its peso maturities, and then
conducting auctions to refinance smaller amounts of debt coming
due. Upon completion of the debt exchange, we would consider the
local currency default to be "cured," and we would likely raise our
long-term local currency rating to the 'CCC' category."

  Ratings List

  DOWNGRADED; CREDITWATCH/OUTLOOK ACTION  
                                 TO              FROM
  ARGENTINA

  Sovereign Credit Rating

   Local Currency              SD/SD         CCC-/Negative/C

  RATINGS AFFIRMED  

  ARGENTINA

  Sovereign Credit Rating

   Foreign Currency            CCC+/Negative/C

  Transfer & Convertibility Assessment

   Local Currency              CCC+




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

BRAZIL: Dollar Drops for 1st Time Since Silva's Inauguration
------------------------------------------------------------
Rio Times Online reports that the commercial dollar closed at
BRL.35 on Jan. 5. It is the first time that the currency's price
has fallen since Luiz Inacio Lula da Silva took office as President
of the Republic.

Compared to the previous day's quotation, the commercial dollar
closed down almost 2%, according to Rio Times Online.

In the last trading session before Lula da Silva took office for
the third term as President of the Republic, the U.S. currency
closed, quoted at BRL5.28, the report notes.

In other words, it was about 1% lower, adds the report.

                        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 was sworn in on January 1,
2023, as the 39th president of Brazil, succeeding Jair
Bolsonaro.

As reported in the Troubled Company Reporter-Latin America
on January 3, 2023, Fitch Ratings has affirmed Brazil's
Long-Term Foreign Currency Issuer Default Rating (IDR) at
'BB-' with a Stable Outlook. The ratings are constrained by
high government indebtedness, a rigid fiscal structure, weak
economic growth potential, and a record of governability
challenges that have hampered efforts to address these fiscal
and economic issues and clouded policy predictability.
The Stable Outlook reflects Fitch's expectation that growth
will slow in the coming year and that recent fiscal
improvement will erode under a new government, but within a
margin consistent with the current rating, and from a better
starting point than previously expected. Uncertainty is
elevated regarding the plans of the incoming government and
the extent to which these could ease or aggravate fiscal and
economic challenges. However, Fitch does not expect policies
that jeopardize broad economic stability.

BRAZIL: Price of Wheat, Flour and Bread in Parana Slight Fall
-------------------------------------------------------------
Richard Mann at Rio Times Online reports that the price of French
bread and specialty wheat flour in Parana slightly decreased at the
beginning of this year, according to research by the Department of
Rural Economics (Deral) of the State Department of Agriculture and
Supply.

According to the Agricultural Bulletin, for Dec. 23, 2022 to Jan.
5, 2023, the decrease in product values, both wholesale and retail,
was 1%, the report notes.

For the technicians of the Deral, a possible explanation for this
tendency of a slight decrease in prices may be the record in the
national production of wheat, according to Rio Times Online.

                        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 was sworn in on January 1,
2023, as the 39th president of Brazil, succeeding Jair
Bolsonaro.

As reported in the Troubled Company Reporter-Latin America
on January 3, 2023, Fitch Ratings has affirmed Brazil's
Long-Term Foreign Currency Issuer Default Rating (IDR) at
'BB-' with a Stable Outlook. The ratings are constrained by
high government indebtedness, a rigid fiscal structure, weak
economic growth potential, and a record of governability
challenges that have hampered efforts to address these fiscal
and economic issues and clouded policy predictability.
The Stable Outlook reflects Fitch's expectation that growth
will slow in the coming year and that recent fiscal
improvement will erode under a new government, but within a
margin consistent with the current rating, and from a better
starting point than previously expected. Uncertainty is
elevated regarding the plans of the incoming government and
the extent to which these could ease or aggravate fiscal and
economic challenges. However, Fitch does not expect policies
that jeopardize broad economic stability.



===================================
D O M I N I C A N   R E P U B L I C
===================================

DOMINICAN REPUBLIC: Interest Rate Rose From 4.50 to 8.50 in 2022
----------------------------------------------------------------
Dominican Today reports that amid a complex international context
caused by the post-pandemic, increases in the cost of maritime
freight, and the war in Russia and Ukraine, among other things,
inflation has affected most of the region's countries, including
the Dominican Republic, causing an increase in interest rates and,
as a result, an increase in the cost of money.

In the Dominican Republic, 2022 began with an interest rate of 4.50
percentage points and will end with 8.50, for a total of 550
points, despite economists' warnings that these monetary policy
increases will slow down the Dominican economy, as evidenced by
economic growth that barely moderated in the fourth quarter of the
year, according to Dominican Today.

2021 ended with an increase from 3.50 to 4.50%, a 100 basis point
increase in monetary policy, at a time when the war between the two
countries had not yet begun, which began on February 24.

Since then, the interest rate has risen aggressively month after
month, following countries such as the United States, which has
raised its interest rate to its highest level in 40 years, the
report notes.  However, the rate has remained at 8.50 percentage
points since October, the report relays.  According to Central Bank
records, the last time the monetary policy rate was this high was
in January 2009, when it was set at 8.50%, the report notes.  This
would represent the highest rate in the previous 13 years, the
report discloses.  Economists such as Haivanjoe NG Cortinas have
noted that the tightening of monetary policy has had an impact on
Dominican banks, albeit to a lesser extent, the report says.

According to Cortinas, the minimum difference between monetary
policy and the weighted rate of the financial system explains why
inflation in the Dominican Republic has not fallen as expected, the
report relays.  While Professor Antonio Ciriaco, dean of the
Faculty of Economics at the Autonomous University of Santo Domingo
(UASD), has stated that these measures (raising the monetary policy
rate), while necessary, raise the cost of credit and money,
affecting investment in the Dominican Republic, the report relays.


According to the economist, to the extent that this rise influences
both the active and passive rates, but primarily the active rate,
credit, and the cost of money, investment decisions, and
consumption would undoubtedly slow, 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, 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.


DOMINICAN REPUBLIC: No Growth in Construction Due to High Prices
----------------------------------------------------------------
Dominican Today reports that the construction sector experiences
practically zero growth of 0.6% in January-November 2022, which is
attributed to high material prices in the sector and delays in the
execution of state infrastructure work by the government.   

In the case of government arrears, it can be seen that the capital
expenditure allocation for the year 2022 was RD$167 billion, or 14%
of total government spending, but only 10.2% has been executed as
of the end of the year, according to Dominican Today.

As of December 16 of 2022, RD$160 billion of the budgeted amount
had to be executed, the report notes.  However, according to the
General Budget Directorate's (Digepres) statistics, only 76.5% of
the budgeted amount has been spent, totaling RD$122 billion, the
report discloses.  

The execution of the State's "Constructions in Progress" is slower,
the report relays.  As of December 16, RD$42 billion of the RD$44
billion budgeted for the year should have been executed, but only
RD$29 billion had been disbursed, accounting for only 70.7% of what
was expected, the report notes.

The Ministry of Public Works and Communications' delays in
expediting the works, even with available resources, is one of the
Government's main weaknesses, generating complaints from the
population who ask for construction and then protest because it
begins and then stops without explanation, 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, 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
=============

DIGICEL INTERNATIONAL: $1.06B Bank Debt Trades at 16% Discount
--------------------------------------------------------------
Participations in a syndicated loan under which Digicel
International Finance Ltd is a borrower were trading in the
secondary market around 84.0 cents-on-the-dollar during the week
ended Friday, January 6, 2023, according to Bloomberg's Evaluated
Pricing service data.

The $1.06 billion facility is a Term loan that is scheduled to
mature on May 27, 2024.  About $1 billion of the loan is withdrawn
and outstanding.

Digicel is an intermediate holding company within Digicel group's
organization structure and owns operating assets in 25 markets in
the Caribbean region. DIFL is an indirect 100% owned subsidiary of
Digicel Limited (DL), which is a wholly owned subsidiary of Digicel
Group Limited (DGL), the ultimate holding company.  The Company's
country of domicile is Jamaica.


JAMAICA: Construction Output Fell in September 2022 Quarter
-----------------------------------------------------------
RJR News reports that Jamaica's construction output fell in the
third quarter ended September.

The Statistical Institute of Jamaica (STATIN) says gross domestic
product for the industry was down 3.1 per cent for the July to
September period, according to RJR News.

This was primarily attributed to a fall in civil engineering
activity, the report notes.

Reduced spending on the South Coast Highway Improvement Project
influenced the sector's performance, the report relays.

Jamaica's construction segment has seen declines throughout 2022,
with reduction in the sale of some building material also
registered, the report relays.

The data, provided by STATIN, is organized based on the Jamaica
Industrial Classification of 2016, the report adds.

As reported in the Troubled Company Reporter-Latin America in March
2022, Fitch Ratings has affirmed Jamaica's Long-Term Foreign
Currency Issuer Default Rating (IDR) at 'B+'. The Rating Outlook is
Stable.



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

[*] TRINIDAD & TOBAGO: Minister Hails Bernal as 'Trade Leader'
--------------------------------------------------------------
RJR News reports that Trinidad and Tobago Trade Minister Paula
Gopee-Scoon in an interview with Guardian Media said Ambassador
Richard Bernal's passing has resulted in the loss of a tremendous
Caricom leader in the arena of international trade.

In paying tribute to Bernal, Mrs Gopee-Scoon said his work was
particularly significant during the hectic period of trade
negotiations including the CARIFORUM/EU EPA and the Doha
Development Agenda of the WTO, among others, according to RJR
News.

The Trade Minister also noted that Trinidad has benefited from the
late Ambassador's guidance and leadership in the disciplines
related to trade negotiations and wider trade policy, the report
relays.

Mr. Bernal was Jamaica's ambassador to the United States and
Permanent Representative to the Organisation of American States,
positions he held for over ten years between May 6, 1991 and August
31, 2001, the report discloses.

He was a member of the board of directors of the InterAmerican
Development Bank (2008 to 2016), and was a chief trade negotiator
for Caricom, the report notes.


                           *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Latin America is a daily newsletter
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Chapman, Editors.

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