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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 17, 2023, Vol. 24, No. 13

                           Headlines



A R G E N T I N A

ARGENTINA: Parallel Dollar Continues to Rise in Country
[*] ARGENTINA: Faces Inflation & Debt Crisis in 2023, WEF Says


B R A Z I L

AMERICANAS SA: S&P Lowers ICR to 'B', On CreditWatch Negative
AMERICANAS SA: Shares Plunge 75%+ on 'Accounting Inconsistencies'
BRAZIL: Retail Sales Post Biggest Drop in Five Months in November


J A M A I C A

JAMAICA: Gov't. Looking to Attract More Int'l. Financial Business


P E R U

PERU: IDB OKs $60M-Loan to Enhance Services in Zarumilla Province


S T .   L U C I A

DIGICEL INTERNATIONAL: Prudential IPI17 Marks $37M Loan at 15% Off


X X X X X X X X

LATAM: World Bank Projects GDP Deceleration for Region

                           - - - - -


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A R G E N T I N A
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ARGENTINA: Parallel Dollar Continues to Rise in Country
-------------------------------------------------------
Rio Times Online reports that the parallel dollar in Argentina
continued its upward trend and registered a new record of 357 pesos
per unit for sale to the public.

So far this year, the quotation of the "blue dollar" has increased
by 2.89%, after closing in December at 346 pesos, according to Rio
Times Online.

Thus, the difference (gap) between the values of the currency in
the informal and official markets reached 98%, the report notes.

According to data from the official wholesale segment, the dollar
was at 180.40 pesos per unit at the end of the financial day in the
Central Bank of Argentina (BCRA), the report relays.

Other currency prices in the unofficial segment continued a
moderate upward trend or remained stable, the report discloses.

The so-called "stock exchange" or "financial" dollar, which refers
to obtaining foreign currency through the stock market, was at the
end of the day at 326.5 pesos, while the "Contado con Liquidacion"
(CCL) was at 334.4 pesos, the report relays.

The "Contado con Liquidacion" is a mechanism provided by the
Argentine financial market which allows the acquisition of foreign
currency through the purchase and sale of government securities
quoted in pesos, the report discloses.

According to analysts recently consulted by the Central Bank,
forecast that the official dollar will close this year, 2023, at
328.32 pesos per unit, the report says.

On the other hand, analysts quoted by local media foresee that the
current year will be a year of challenges for the domestic economy
with an impact on the quotation of the currency due to the need to
reduce inflation, pay commitments to the International Monetary
Fund (IMF) and debt holders, as well as the availability of
reserves, 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.

S&P Global Ratings, on Jan. 9, 2023, raised its local currency
sovereign credit ratings on Argentina to 'CCC-/C' from 'SD/SD' and
its national scale rating to 'raCCC+' from 'SD'. S&P also affirmed
its 'CCC+/C' foreign currency sovereign credit ratings on
Argentina. The outlook on the long-term ratings is negative.  The
negative outlook on the long-term ratings 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, according to S&P.

Fitch, on the other hand, downgraded Argentina's Long-Term
Foreign-Currency (FC) and Local-Currency (LC) Issuer Default
Ratings (IDRs) to 'CCC-' from 'CCC' in October 2022. Fitch
typically does not assign Outlooks to sovereigns with a rating of
'CCC+' or below. Fitch has removed the
Long-Term IDRs from Under Criteria Observation (UCO).  The
downgrade of Argentina's FC IDR to 'CCC-' reflects deep
macroeconomic imbalances and a highly constrained external
liquidity position, which Fitch expects to increasingly undermine
repayment capacity as foreign-currency debt service ramps up in the
coming years.

Moody's Investors Service, in September 2022, affirmed Argentina's
Ca foreign-currency and local-currency long-term issuer and senior
unsecured ratings.  The outlook remains stable.  The decision to
affirm the Ca ratings balances Argentina's limited market access,
weak governance, and history of recurrent debt restructurings with
recent efforts to marshal fiscal and monetary measures to start
addressing underlying macroeconomic imbalances in the context of
the IMF program that was approved in 2022, according to Moody's.

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.


[*] ARGENTINA: Faces Inflation & Debt Crisis in 2023, WEF Says
--------------------------------------------------------------
Rio Times Online reports that inflation, debt crisis and
proliferation of illegal economic activities are some of the main
risks for Argentina, according to a report by the World Economic
Forum (WEF).

According to the Global Risk Perceptions survey, produced in
conjunction with Marsh McLennan and Zurich Insurance Group,
"Globalized capital flows in recent decades have increased the
exposure of emerging and developing markets to rising interest
rates, especially those with a high proportion of
dollar-denominated debt," the report relays.

                        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.

S&P Global Ratings, on Jan. 9, 2023, raised its local currency
sovereign credit ratings on Argentina to 'CCC-/C' from 'SD/SD' and
its national scale rating to 'raCCC+' from 'SD'. S&P also affirmed
its 'CCC+/C' foreign currency sovereign credit ratings on
Argentina. The outlook on the long-term ratings is negative.  The
negative outlook on the long-term ratings 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, according to S&P.

Fitch, on the other hand, downgraded Argentina's Long-Term
Foreign-Currency (FC) and Local-Currency (LC) Issuer Default
Ratings (IDRs) to 'CCC-' from 'CCC' in October 2022. Fitch
typically does not assign Outlooks to sovereigns with a rating of
'CCC+' or below. Fitch has removed the
Long-Term IDRs from Under Criteria Observation (UCO).  The
downgrade of Argentina's FC IDR to 'CCC-' reflects deep
macroeconomic imbalances and a highly constrained external
liquidity position, which Fitch expects to increasingly undermine
repayment capacity as foreign-currency debt service ramps up in the
coming years.

Moody's Investors Service, in September 2022, affirmed Argentina's
Ca foreign-currency and local-currency long-term issuer and senior
unsecured ratings.  The outlook remains stable.  The decision to
affirm the Ca ratings balances Argentina's limited market access,
weak governance, and history of recurrent debt restructurings with
recent efforts to marshal fiscal and monetary measures to start
addressing underlying macroeconomic imbalances in the context of
the IMF program that was approved in 2022, according to Moody's.

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.




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

AMERICANAS SA: S&P Lowers ICR to 'B', On CreditWatch Negative
-------------------------------------------------------------
S&P Global Ratings, on Jan. 13, 2023, lowered its global scale
issuer credit rating on Brazilian retailer Americanas S.A. to 'B'
from 'BB' and the Brazilian national scale rating to 'brA-' from
'brAAA', while also placing all the ratings on CreditWatch with
negative implications.

In addition, S&P lowered the issue-level ratings on JSM Global
S.a.r.l. and B2W Digital Lux S.a r.l.'s senior unsecured notes to
'B' and placed the ratings on CreditWatch, with no change in the
recovery rating of '4' (45%).

The CreditWatch negative listing reflects the uncertainties about
the breadth of the accounting inconsistencies and their full impact
on the company's capital structure and future cash flows, which
could lead to a further downgrade in the coming months.

S&P said, "The downgrade reflects our expectations of higher
leverage, despite the lack of full information at this point on the
breadth of the accounting inconsistencies and their impact on the
company's financials. Americanas' main cash-flow leverage metrics
were already under some pressure with debt to EBITDA and FFO to
debt of 5.5x and 7.9%, respectively, for the last 12 months ended
Sept. 30, 2022, before the announcement of the inconsistencies. We
understand that the company would start to book and disclose its
supply-chain financing as financial debt, weakening those metrics.
From what Americanas has announced so far, its accounting
department identified supplier financing operations in amounts
similar to R$20 billion that was supposedly not correctly disclosed
in the company's financial statements over the past several years.
This could mean that this type of bank financing incorrectly
boosted the company's historical operating cash flows disclosed.

At this point, S&P thinks it's difficult to assess the full impact
that the recent announcement will have on the company's operating
and financial performance. The bulk of the accounting adjustments
would not materially affect Americanas' cash position, as they're
related to supply-chain financing obligations that were already
paid. However, S&P believes the company would face increased risks
related to its working capital dynamics and its relationship with
banks and capital markets. If these are hampered, it could lead to
material negative effects on the company's cash flows, and
consequently, its liquidity, until Americanas is able to raise new
capital.

In S&P's view, these events point to severe governance deficiencies
in terms of internal controls and lack of transparency, hurting the
company's creditworthiness.

The company also announced a notable change in the top management,
with the resignation of Sergio Rial (CEO) and Andre Covre (CFO) a
few days after they started. Sergio Rial mentioned that the company
will need new equity to equalize its capital structure, considering
the debt that should be added to its balance sheet after the
required adjustments to correctly reflect the supplier financing.

ESG credit indicators: To E-2, S-2, G-5; From E-2, S-2, G-3

S&P said, "Governance factors now have a very negative impact on
our credit rating analysis of Americanas. The company announced
accounting inconsistencies of R$20 billion (compared with reported
balance sheet financial debt of R$24 billion – including leases),
which in our view indicates severe governance deficiencies. The
company has indicated that these inconsistencies were there for
several years, indicating poor transparency levels and deficiencies
in the company's internal controls and risk management.
Environmental and social factors have no material impact on our
analysis."


AMERICANAS SA: Shares Plunge 75%+ on 'Accounting Inconsistencies'
-----------------------------------------------------------------
globalinsolvency.com, citing Reuters, reports that shares in
Brazilian retailer Americanas SA fell more than 75%  after its
chief executive officer resigned citing the discovery of
"accounting inconsistencies" totaling 20 billion reais (US$3.9
billion), Reuters reported.

Outgoing CEO Sergio Rial, who replaced Miguel Gutierrez less than
two weeks ago, said in a conference call with investors he had
"clearly found some very important distortions" and signals of a
lack of transparency from the previous management, according to
globalinsolvency.com.

In a pre-market auction that lasted most of the session, the stock
dropped as much as 90%, before opening down 76.25% at 2.85 reais,
the report discloses.  Chief Financial Officer Andre Covre, who had
just joined Americanas as well, also left the firm long controlled
by three Brazilian billionaires who founded 3G Capital, the report
relays.

Rial attributed the inconsistencies to differences in accounting
for the financial cost of bank loans and debt with suppliers, the
report notes.  The outgoing CEO said Americanas would likely need a
capital increase, though noted he didn't expect a short-term impact
from the inconsistencies on its cash position, the report adds.


BRAZIL: Retail Sales Post Biggest Drop in Five Months in November
-----------------------------------------------------------------
globalinsolvency.com, citing Reuters, reports that retail sales
volumes in Brazil posted in November their biggest drop in five
months, government statistics agency IBGE said, affected by higher
fuel prices and a weak Black Friday performance last year.

Brazil's retail sales fell 0.6% in November from October, IBGE
reported, a deeper drop than the 0.3% one expected by economists
polled by Reuters and the first negative reading since July,
according to globalinsolvency.com.

The latest data came in as consumption stutters in Brazil amid a
lack of credit growth, higher interest rates and rising consumer
prices, research manager Cristiano Santos said in a statement
obtained by the news agency.

"November was the first month in which fuel prices were back on the
rise after a deflation series started in July last year, and that
affected companies' revenues," Santos said, the report relays.

On a yearly basis, retail sales in Latin America's largest economy
were up 1.5% in November, but also missed market expectations of a
1.9% rise. That means the sector remains 3.6% below a peak reported
in November 2020, though 2.6% above pre-pandemic levels, the report
notes.

                            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 recently reported in the Troubled Company Reporter-Latin
America, Fitch Ratings, in December 2022, 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.

Standard & Poor's affirmed its 'BB-/B' long- and short-term
foreign
and local currency sovereign credit ratings on Brazil, and the
outlook remains stable (June 2022).  The stable outlook reflects
S&P's base-case assumption that Brazil will maintain its fiscal
anchors over the next two years despite an increasing interest
burden, preventing significant fiscal slippage and limiting the
rise in its already high debt burden.

Moody's credit rating for Brazil was last set at Ba2 in 2018 with
stable outlook.  Moody's affirmed the Ba2 issuer ratings and
senior unsecured bond ratings in April 2022.

DBRS's credit rating for Brazil is BB (low) with stable outlook
(March 2018).




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J A M A I C A
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JAMAICA: Gov't. Looking to Attract More Int'l. Financial Business
-----------------------------------------------------------------
RJR News reports that Prime Minister Andrew Holness said the
Jamaican government is looking to increase international business
and investments.

He says the government is making headway to enact and amend
legislation to attract investment, according to RJR News.

Mr. Holness says these legislative changes will pertain to the
Jamaica International Financial Services Authority (JIFSA), a
statutory body established in 2011 with the primary role of
promoting and marketing Jamaica as a jurisdiction for international
and financial business services, the report notes.

Under JIFSA, the government passed the Partnership General Act, the
Partnership Limited Act as well as the Trust Act of 2019, the
report relays.

The government has also passed the Trust and Corporate Services
Providers Act and the associated regulations, which were gazetted
in April 2022, the report says.

This Act, Mr. Holness explained, seeks to "promote and maintain
high standards of conduct, ethics, and competence in the provision
of international, corporate, and trust services," the report
discloses.

The Prime Minister said the government is contemplating other
legislation to fill gaps in the framework and ensure global
standards are met, 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.




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P E R U
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PERU: IDB OKs $60M-Loan to Enhance Services in Zarumilla Province
-----------------------------------------------------------------
The Inter-American Development Bank (IDB) approved a $60 million
loan to boost the quality and coverage of drinking water and
sanitation services for the inhabitants of the Zarumilla and Aguas
Verdes districts in northern Peru.

The project will directly improve the quality of life of nearly
50,000 people. These beneficiaries include 7,050 homes that will be
connected to the drinking water system for the first time, as well
as approximately 11,900 families set to receive wastewater
collection and treatment services.

The loan will help expand and rehabilitate the drinking water
supply and sewer systems by financing new wells, collector lines,
impulse lines, reservoirs, distribution networks, pumping stations,
and household connections. Additionally, the plan includes building
and rehabilitating treatment plants and creating a sewer connection
program.

The strategy will also help the executing agency, Agua Tumbes,
refine how it manages its operations in order to guarantee its
sustainability, operational resilience, and service quality. Part
of the loan will be invested to reduce water losses, improve
processes to collect technical and commercial information, optimize
energy use, create a well protection and monitoring program, and
strengthen human resources.

The loan will significantly improve the population's quality of
life. Currently, the people of the districts of Zarumilla and Aguas
Verdes - on the border with Ecuador - experience constant
interruptions and outages in their drinking water service. In both
districts, their uninterrupted water supply averages a mere 4 to 9
hours per day.

The source of the districts' water is groundwater, which is
extracted through five tube wells. The quality of this water is
fair, and it has a high risk of cross-contamination that can cause
intestinal infections and other health problems, especially for
children.

A local contribution from the Ministry of Housing, Construction,
and Sanitation brings loan total to nearly $78 million. The loan
will be disbursed over a period of 6 years, with a 15-year
repayment term, a 7-year grace period, and an interest rate based
on the Secured Overnight Financing Rate (SOFR).




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S T .   L U C I A
=================

DIGICEL INTERNATIONAL: Prudential IPI17 Marks $37M Loan at 15% Off
------------------------------------------------------------------
Prudential Investment Portfolios, Inc. 17 has marked its
$37,956,000 loan extended to Digicel International Finance Ltd to
market at $32,293,935 or 85% of the outstanding amount, as of
October 31, 2022, according to a disclosure contained in Prudential
IPI17's Form N-CSR for the fiscal year ended October 31, 2022,
filed with the Securities and Exchange Commission on December 29,
2022.

Prudential IPI17 is a participant in a First Lien Initial Term B
Loan that accrues interest at a rate of 7.004% per annum (1 Month
LIBOR + 3.250%) to Digicel International Finance Ltd. The loan is
scheduled to mature on May 27, 2024.

Prudential Investment Portfolios, Inc. 17 is registered under the
Investment Company Act of 1940, as amended, as an open-end
management investment company. The RIC is organized as a Maryland
Corporation.

DIFL 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. These companies
are collectively referred to as 'Digicel'.




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X X X X X X X X
===============

LATAM: World Bank Projects GDP Deceleration for Region
------------------------------------------------------
RJR News reports that growth in Latin America and the Caribbean is
expected to decelerate sharply in 2023.

The World Bank projects GDP in the region to increase by 1.3 per
cent, before recovering somewhat to 2.4 per cent in 2024, according
to RJR News.

The multilateral agency says the slowdown reflects efforts by
monetary authorities to reduce inflation and spillovers from a weak
global outlook, the report discloses.

The bank says sluggish growth in the United States and China is
expected to reduce export demand, while rising U.S. interest rates
are likely to keep financial conditions restrictive, the report
relays.

The World Bank says slow global growth is expected to weigh on
commodity prices, weakening South America and the Caribbean's terms
of trade, the report notes.

Regional investment is expected to decline, dampened by higher
financing costs, lower business confidence and elevated policy
uncertainty, the report says.

The World Bank says Latin America and the Caribbean is estimated to
have grown by 3.6 per cent in 2022, the report relays.

The bank says strong expansion in the first half of the year was
driven mostly by consumption, supported by recovering labor
markets, the report discloses.

However, activity weakened late last year, as slowing global growth
and tighter financial conditions took effect, the report adds.



                           *********


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 2023.  All rights reserved.  ISSN 1529-2746.

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