/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/230207.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 Tuesday, February 7, 2023, Vol. 24, No. 28 Headlines B R A Z I L AMERICANAS SA: Seeks Chapter 15 Bankruptcy Protection AMERICANAS SA: U.S. Court Protects Retailer from Creditors BANCO BRADESCO: Moody's Affirms 'Ba2' LongTerm Deposit Ratings BRAZIL: Currency Firms, Rate Cut Bets Pushed Back by Outlook BRAZIL: Starts 2023 with Several Challenges in Economy TRANSOCEAN LTD: Awarded $392MM Contract for Dhirubhai Drillship D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Abinader Enacts Laws to Develop Ecotourism DOMINICAN REPUBLIC: Fitch Assigns 'BB-' Rating on U$1.1-BB Notes DOMINICAN REPUBLIC: Hospitalization & Medical Fees Coverage Up DOMINICAN REPUBLIC: S&P Rates US$1.8BB Bonds 'BB', Outlook Stable P E R U PERU: Inflation Eases in January, But Annual Rate Ticks Up T R I N I D A D A N D T O B A G O TRINIDAD & TOBAGO: Egg Prices Going Up - - - - - =========== B R A Z I L =========== AMERICANAS SA: Seeks Chapter 15 Bankruptcy Protection ----------------------------------------------------- Amelia Pollard of Bloomberg Law reports that Brazilian shopping chain Americanas SA filed for Chapter 15 bankruptcy, a move that protects its US assets while insolvency proceedings play out in its home country. Representatives for Americanas filed the bankruptcy petition in Manhattan on January 25, 2023, court papers show. The retailer nosedived in January 2023 after becoming mired in an accounting scandal. The firm, backed by billionaire Jorge Paulo Lemann, filed for bankruptcy at a court in Rio de Janeiro on Jan. 19, 2023. In disclosures to investors, the firm implied it misreported numbers connected to some of its financing and wrongly deducted interest paid to lenders from its liabilities. In all, there were nearly $4 billion of accounting "inconsistencies," according to a regulatory filing. About Americanas SA Americanas was one of the largest diversified retail chains in Brazil, with a wide platform of physical stores, robust e-commerce, fintech, and has just entered into the niche food retail. It is listed on B3, being indirectly controlled by Jorge Paulo Lemann, Carlos Alberto Sicupira and Marcel Telles. The retailer nosedived in January 2023 after becoming mired in an accounting scandal. The firm filed for bankruptcy at a court in Rio de Janeiro on Jan. 19, 2023. Americanas sought protection under Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 23-10092) on Jan. 25, 2023. White & Case LLP, led by John K. Cunningham, is the U.S. counsel. AMERICANAS SA: U.S. Court Protects Retailer from Creditors ---------------------------------------------------------- Steven Church of Bloomberg News reports that Brazilian shopping chain Americanas SA won protection from potential creditor actions in the US while the company's insolvency proceedings go forward domestically. US Bankruptcy Judge Michael Wiles approved the company's request to shield Americanas from lawsuits and other attacks by creditors, including from bondholders under a US debt contract who are owed about $1 billion. The approval is considered a routine part of a Chapter 15 bankruptcy petition; Chapter 15 allows non-US companies to seek help from a federal judge while they reorganize in their home countries. About Americanas S.A. Americanas was one of the largest diversified retail chains in Brazil, with a wide platform of physical stores, robust e-commerce, fintech, and has just entered into the niche food retail. It is listed on B3, being indirectly controlled by billionaire Jorge Paulo Lemann, Carlos Alberto Sicupira and Marcel Telles. The retailer nosedived in January 2023 after becoming mired in an accounting scandal. The firm filed for bankruptcy at a court in Rio de Janeiro on Jan. 19, 2023. Americanas sought protection under Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 23-10092) on Jan. 25, 2023. White & Case LLP, led by John K. Cunningham, is the U.S. counsel. BANCO BRADESCO: Moody's Affirms 'Ba2' LongTerm Deposit Ratings -------------------------------------------------------------- Moody's Investors Service has affirmed Banco Bradesco S.A.'s (Bradesco) long-term local and foreign currency deposit ratings at Ba2, following the affirmation of the bank's Baseline Credit Assessment (BCA) and Adjusted BCA at ba2. The rating agency has also affirmed the bank's short-term local and foreign currency deposit ratings at Not Prime, the foreign currency senior unsecured MTN program rating at (P)Ba2, the long-term and short-term local and foreign currency Counterparty Risk Ratings at Ba1 and Not Prime, respectively, and long-term and short-term Counterparty Risk Assessments at Ba1(cr) and Not Prime(cr), respectively. The outlook on Bradesco's ratings remains stable. As part of the rating action Moody's has also taken the following actions: (1) affirmed the Ba2 and (P)Ba2 foreign currency senior unsecured rating and MTN program rating of Banco Bradesco S.A., Grand Cayman Branch; and (2) affirmed the Ba1/Not-Prime long-term and short-term local and foreign currency Counterparty Risk Ratings and Ba1(cr)/Not-Prime(cr) long-term and short-term Counterparty Risk Assessments assigned to the bank's Cayman branch. The outlook on the senior unsecured rating remains stable. RATINGS RATIONALE In affirming Bradesco's ratings and assessments, Moody's acknowledges the consistent strength of the bank's financial profile through different economic cycles, supported by a long-track record of high earnings diversification, well-established participation in the credit and insurance segments and wide distribution capability of the bank in Brazil. The bank's profitability fundamentals benefit from its strong lending market share in Brazil (10.9% in September 2022), with a credit portfolio broadly diversified among individuals and companies, which has supported steady recurring earnings generation through economic cycles. The bank's large share of deposits in the system (13.0% in September 2022) also provides Bradesco with stable access to core funding, another credit strength. The affirmation of the Ba2 deposit and senior unsecured debt ratings also incorporates Moody's view that the bank's asset quality metrics will continue to weaken gradually in the next two to three quarters, in line with an overall increase of loan delinquency in the financial system. This trend reflects the high level of interest rates and high inflation that will continue to pressure borrowers' repayment capacity going forward. Bradesco's problem loan ratios, measured as 90-day past due, stood at 4.33% of gross loans in September 2022, up from 2.91% in the same period last year and 3.79% in December 2019. However, the bank's high levels of reserves for loan losses and prudent risk appetite will likely mitigate rising credit losses, protecting the bank's capital position. In September 2022, loan loss reserves covered 7.80% of gross loans and 180.16% of problem loans. While the bank's profitability will also likely suffer from weaker economic activity in 2023, compared to other global banks, Bradesco will continue to report strong earnings benefiting from higher lending rates, strong fee income generation and robust trading income, which will allow the bank to absorb higher credit costs. The bank's low capital position, as measured by tangible common equity (TCE) as a percentage of risk weighted assets (RWA), has improved consistently over the past two years to 7.82% in September 2022, from 6.13% in Q3 2020, benefiting from low dividend payout in 2020 and a steady earnings retention driven by a rebound of economic activity in 2021. Despite the recent improvement, the TCE/RWA ratio for Bradesco remains below that of large global banks, although it is aligned with the ratios of privately-owned peers in Brazil. In 2023, Bradesco's capital ratio will likely remain stable as slow business activity will have a negative impact on both loan origination and revenue growth. The stable outlook acknowledges Bradesco's capacity to manage risks under a challenging operating environment, and its solid track record of generating pre-provision earnings, despite the expected pressure on asset quality and profitability metrics in 2023 because of a weaker macroeconomic scenario. Bradesco's Ba2 ratings take into account Moody's expectation of a high level of government support based on the bank's dominant system deposit market share of 13.0% as of September 30, 2022, as well as the bank's importance to the country's overall banking system. However, this support assumption does not result in any ratings uplift because Bradesco's BCA is already at the same level as the Government of Brazil's Ba2 sovereign rating. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Bradesco's ba2 BCA and Ba2 deposit and senior unsecured debt ratings are at the same level as Brazil's Ba2 bond rating, and therefore, an upward movement on the ratings is unlikely in the absence of a sovereign rating upgrade. Moody's could downgrade Bradesco's BCA if there is a sizable and consistent increase in the volume of problem loans. The BCA could also be lowered in the event of a weakening in the bank's internal capital generation and capacity to absorb heightened credit risk as a result of a material decline in profitability and/or liquidity level. A downgrade of the Ba2 sovereign rating could lead to a downgrade of Bradesco's standalone BCA of ba2, as well as the deposit and debt ratings. METHODOLOGY USED The principal methodology used in these ratings was Banks Methodology published in July 2021. BRAZIL: Currency Firms, Rate Cut Bets Pushed Back by Outlook ------------------------------------------------------------ globalinsolvency.com, citing Reuters, reports that Brazil's currency firmed and interest rate futures jumped as a more hawkish outlook from the central bank led economists to push back forecasts for rate cuts to next year. The central bank's policy statement was a setback for newly inaugurated President Luiz Inacio Lula da Silva, who has blasted the level of interest rates - maintained at a six-year high of 13.75% - as an obstacle to economic growth, according to globalinsolvency.com. The Brazilian real strengthened trading past 5.00 per dollar for the first time since June 2022, while the short end of the yield curve traded up sharply, pricing interest rates at higher levels through 2026, the report notes. The central bank signaled that they were considering holding interest rates at current levels for longer than markets expect, citing inflation expectations drifting away from target amid uncertainties linked to fiscal expansion sponsored by Lula, 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 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). BRAZIL: Starts 2023 with Several Challenges in Economy ------------------------------------------------------ Patricia Lacerda at Rio Times Online reports that after a year with positive economic performance - at least in relation to its emerging peers - Brazil starts 2023 with several challenges in this area. Some examples are economic slowdown, restrictive interest rates, inflation, and fiscal balance, 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 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). TRANSOCEAN LTD: Awarded $392MM Contract for Dhirubhai Drillship --------------------------------------------------------------- Transocean Ltd. announced that the ultra-deepwater drillship, Dhirubhai Deepwater KG2, has been awarded a 910-day contract by a national oil company for work offshore Brazil. The estimated backlog of $392 million excludes a mobilization fee of 90 times the contract dayrate. The new contract is expected to commence in the third quarter of 2023. About Transocean Transocean Ltd. is an international provider of offshore contract drilling services for oil and gas wells. The Company specializes in technically demanding sectors of the offshore drilling business with a particular focus on ultra-deepwater and harsh environment drilling services. Transocean reported a net loss of $591 million for the year ended Dec. 31, 2021, a net loss of $568 million for the year ended Dec. 31, 2020, and a net loss of $1.25 billion for the year ended Dec. 31, 2019. As of Sept. 30, 2022, the Company had $20.62 billion in total assets, $1.50 billion in total current liabilities, $7.88 billion in total long-term liabilities, and $11.23 billion in total equity. * * * As reported by the TCR in October 2022, S&P Global Ratings raised the issuer credit rating on Switzerland-domiciled offshore drilling contractor Transocean Ltd. to 'CCC' from 'SD'. The upgrade reflects Transocean's enhanced liquidity runway. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Abinader Enacts Laws to Develop Ecotourism -------------------------------------------------------------- Dominican Today reports that according to a press release from the Presidency, the rules provide important incentives for the promotion of ecotourism in the provinces of the Dominican Republic. The case of Law number 8-23 declares the Duarte province as eco-tourism to ensure the conservation and sustainable use of natural resources, as well as the promotion of cultural manifestations for the benefit of its communities' economic and social development, according to Dominican Today. The law creates a Duarte Province Ecotourism Development Council and an executive director for these purposes, the report notes. "The first will be the governing body for promoting and regulating ecotourism activities in the province and the second will be in charge of executing such policies. "The law establishes a provincial fund for ecotourism development and directs the General State Budget to set aside 60 million pesos per year for the two years following its promulgation," according to one of the law's recitals, the report relays. While Law No. 9-23 modifies Law No. 77-02, enacted on July 19, 2002, and establishes the province of Hato Mayor as an ecotourism province, to adapt the integration and functionality of its organs rulers, and executors, the report relays. Similarly, it directs the General State Budget to set aside 20 million pesos per year for compliance with the provisions of the law, the report notes. The province of El Seibo has been designated as a tourist pole by Law number 10-23, in addition to its previous designation as an ecotourism province by Law number 511-05, enacted on November 22, 2005, the report relays. As a result, the incentives envisioned in Law number 158-01, enacted on October 9, 2001, to promote tourism development, must be implemented, the report discloses. "In recent decades, ecotourism has experienced a significant boom due to societies' adaptation to new forms of tourism, sustainability, and environmental development," the Presidency stated, 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 in December 2022, that Fitch Ratings 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: Fitch Assigns 'BB-' Rating on U$1.1-BB Notes ---------------------------------------------------------------- Fitch Ratings has assigned 'BB-' ratings to Dominican Republic's DOP62.3 billion notes (equivalent to USD1.1 billion) maturing Feb. 3, 2033, and the USD700 million notes maturing Feb. 3, 2031. The first notes are denominated in Dominican pesos, pay principal and interest in U.S. dollars, and carry a coupon of 13.625%. The U.S.-dollar-denominated bonds have a coupon of 7.05%. Proceeds from this issuance are being used as part of a concurrent liability management operation involving the buyback of existing bonds, and for general budgetary purposes. KEY RATING DRIVERS The bond ratings are in line with Dominican Republic's Long-Term (LT) Foreign Currency (FC) Issuer Default Rating (IDR) of 'BB-' (including the peso-linked securities, given they are payable in U.S. dollars). Fitch affirmed the LT FC IDR at 'BB-'/Stable Dec. 6, 2022. Dominican Republic has ESG Relevance Scores (RS) of '5[+]' and '5', respectively, for Political Stability and Rights and for the Rule of Law, Institutional and Regulatory Quality, and Control of Corruption. These scores reflect the high weight that the WGI have in Fitch's proprietary Sovereign Rating Model (SRM). Dominican Republic has a medium WGI ranking at the 49.9 percentile, reflecting a recent track record of peaceful political transitions, a moderate level of rights for participation in the political process, moderate institutional capacity and rule of law and a fairly high degree of corruption. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: The bond ratings would be sensitive to any negative changes in Dominican Republic's Long-Term Foreign Currency IDR. Factors that could, individually or collectively, lead to positive rating action/upgrade: The bond ratings would be sensitive to any positive changes in Dominican Republic's Long-Term Foreign Currency IDR. ESG CONSIDERATIONS Dominican Republic has an ESG Relevance Score of '5[+]' for Political Stability and Rights as the WGIs have the highest weight in Fitch's SRM and are therefore highly relevant to the rating and a key rating driver with a high weight. As Dominican Republic has a percentile rank above 50 for the respective Governance Indicator, this has a positive impact on the credit profile. Dominican Republic has an ESG Relevance Score of '5' for Rule of Law, Institutional & Regulatory Quality and Control of Corruption as the WGIs have the highest weight in Fitch's SRM and are therefore highly relevant to the rating and are a key rating driver with a high weight. As Dominican Republic has a percentile rank below 50 for the respective WGIs, this has a negative impact on the credit profile. Dominican Republic has an ESG Relevance Score of '4[+]' for Human Rights and Political Freedoms as the Voice and Accountability pillar of the WGIs is relevant to the rating and a rating driver. As Dominican Republic has a percentile rank above 50 for the respective WGI, this has a positive impact on the credit profile. Dominican Republic has an ESG Relevance Score of '4' for Creditor Rights as willingness to service and repay debt is relevant to the rating and is a rating driver for Dominican Republic, as for all sovereigns. As Dominican Republic has a fairly recent restructuring of public debt in 2005, this has a negative impact on the credit profile. Except for the matters discussed above, the highest level of ESG credit relevance, if present, 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 to the way in which they are being managed by the entity. Entity/Debt Rating ----------- ------ Dominican Republic senior unsecured LT BB- New Rating DOMINICAN REPUBLIC: Hospitalization & Medical Fees Coverage Up -------------------------------------------------------------- Dominican Today reports that the National Social Security Council (CNSS) authorized an increase in coverage for hospitalization, medical fees and consultations for hospitalization, diagnostic tests, hospitalization, and the use of rooms and equipment, among other health services. In an extraordinary meeting of the Board and by means of Resolution 563-01, an increase of 20% was approved for medical fees for procedures and 50% for inpatient consultations, according to Dominican Today. The increase represents an increase of more than RD$2.7 billion a year; the CNSS indicated in a note to the media resources that would be received by the doctors as of February 2023, in addition to the other RD$2.8 billion that was increased in October 2021, the date on which a 20% increase in medical fees and 30% in inter consultation fees were approved, the report relays. Examinations And Diagnostic Tests The resolution also increases fees for examinations and diagnostic tests by 7%, which represents RD$1.2 billion a year, according to the CNSS, the report relays. It also increased by 15% for the use of rooms and equipment, which will continue to be reviewed every 90 days and whose increases would be charged to the Health Care Account of the people, which it said: "does not affect the pockets of the affiliates," the report notes. The governing entity of the Dominican Social Security System also increased the coverage by 15% in the use of rooms in clinics and hospitals per member per day, which represents more than RD$350 million, so that "the coverage granted by the ARS will be 100% up to the amount of RD$1,725.00 and 90% in the range between RD$1,726.00 and RD$2,415.00, the report adds. More of the Resolution The resolution establishes that the ARSs undertake to grant the codes to the doctors within a term not exceeding 30 days as soon as they complete the necessary documentation and requirements, the report relays. In the case of differences, the SISALRIL undertakes to make the necessary calls to act as a mediator between the ARSs and the Dominican Medical Association so that the doctors may receive their respective codes in a timely manner, the report notes. The resolution details that to cover administrative expenses, it was approved to increase RD$65.00 to the monthly per capita of the Family Health Insurance (SFS) of the Contributory Regime (RC), charged to the Health Care Account of the Individuals of the Family Health Insurance of the Contributory Regime, the report says. This measure will take effect as of February 2023. The surplus, which amounts to more than 1 billion pesos per year, will be covered by the Health Risk Administrators (ARS), the report notes. As part of the executive measures, the CNSS instructed the Superintendency of Health and Labor Risks (SISALRIL) to ensure that the Health Risk Administrators do not increase the rates for services rendered due to the new agreements, the report relays. This measure aims to prevent the Health Service Providers (PDSS) from making simultaneous increases to the new increases agreed upon. This would increase expenses for the population affiliated with Family Health Insurance (SFS), the report notes. Convening of the Professional Fees Committee In another aspect, the resolution requests the Ministry of Labor to take the necessary steps to convene the National Professional Fees Committee (CNHP) and to contact its member entities so that they can send their representatives to continue analyzing and studying the increase in the rates of professional fees for medical consultations, the report notes. It was established that the proposal for the increase of outpatient consultations, the increase of the fee for emergencies, home consultations, and the annual indexation would be discussed by the National Committee on Professional Fees, which will be in charge of its evaluation, the report relays. Revision of the Basic Plan The CNSS approved through Resolution No. 562-04 the revision of the Basic Plan. 562-04 the revision of the Basic Health Plan (PBS), presented by SISALRIL, evaluating those considerations given by the Dominican Association of Medical Equalization and Health Risk Administrators (ADIMARS), the Dominican Association of Health Risk Administrators (ADARS), the Dominican Association of Private Clinics (ANDECLIP) and the National Health Insurance (SeNaSa) taking into account that they do not jeopardize the efficiency, equity and financial protection of the Dominican Social Security System (SDSS), the report notes. 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 in December 2022, that Fitch Ratings 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: S&P Rates US$1.8BB Bonds 'BB', Outlook Stable ----------------------------------------------------------------- S&P Global Ratings assigned its 'BB' issue ratings to the Dominican Republic's bonds totaling an equivalent of US$1.8 billion: US$700 million bond due in 2031 at a 7.05% interest rate, and The equivalent of around US$1.1 billion Dominican peso (DOP)-linked bond due in 2033 at a 13.625% interest rate. The rating on the bonds is the same as the long-term foreign currency sovereign credit rating on the Dominican Republic (BB/Stable/B). The Dominican Republic used about 60% of the DOP-linked bonds (US$657 million) to roll over another DOP-linked bond maturing in 2023, and it will use the rest of the proceeds for general budgetary purposes. S&P's 'BB' long-term ratings on the Dominican Republic reflect its fast-growing and resilient economy. Despite its vulnerability to external shocks, the country has proven its capacity to rapidly bounce back in the aftermaths, thanks to somewhat predictable economic policies. The ratings also incorporate the country's historical political and social challenges in passing structural reforms to contain fiscal deficits, despite recent improvements in the electricity sector. The ratings are constrained by relatively high debt, a hefty interest burden, and limited monetary policy flexibility. The stable outlook reflects S&P's expectation of continued favorable GDP growth and policy continuity that will likely stabilize the government's debt burden. ======= P E R U ======= PERU: Inflation Eases in January, But Annual Rate Ticks Up ---------------------------------------------------------- globalinsolvency.com, citing Reuters reports that Peru's consumer prices rose less than expected in January despite growing political tensions, but the 12-month rate still ticked up as the Andean nation battles the highest inflation in a quarter of a century. Government data showed that consumer prices in the Lima metropolitan region, seen as the national benchmark, were up 0.23% in the first month of the year, well below the median forecast of 0.43% in a Reuters poll of economists, according to globalinsolvency.com. It was the lowest monthly increase since January of last year, slowing from the 0.79% rise seen in the previous month, although not enough to prevent annual inflation from hitting its highest since July, the report notes. Data from statistics agency INEI showed that consumer prices rose 8.66% in the 12 months through January, remaining near a quarter-century peak reached last year, though below a projection made by Economy Minister Alex Contreras last month, the report adds. ===================================== T R I N I D A D A N D T O B A G O ===================================== TRINIDAD & TOBAGO: Egg Prices Going Up -------------------------------------- Andrea Perez-Sobers at Trinidad Express reports that effective Feb. 6, eggs will increase by $3 per dozen, due to the increase in the price of feed for layer chickens. This was revealed by the Association of Trinidad and Tobago Table Egg Producers vice president, Dennis Ramsingh, as he said this move by the egg producers became necessary as the cost of feed is due to be increased by five per cent, according to Trinidad Express. The hike in the price of feed comes from Mastermix Feeds Ltd, which supplies the majority of the table eggs produced in T&T. Other companies have also indicated a price review, the report notes. Ramsingh told the Express, that the increase in the price of eggs became necessary as a few months ago, egg producers had faced the removal of a fuel subsidy of almost five per cent, by the feed company and now this feed hike has become unbearable to absorb, the report notes. He said this explains the 14 to 15 per cent increase, the report discloses. "We do not like to appear selfish, however, the additional cost of fuel, distribution expenses, and the packaging has made it difficult for producers to continue to absorb these increases," he stressed, the report relays. Two farmers told the Express that wholesale eggs are currently being sold to retailers at between $19 and $21 per dozen. If the $3 per dozen price increase is implemented, that would take the price of eggs from the producers to between $22 and $24 per dozen. That is an increase of 14.28 per cent and 15.78 per cent. At several supermarkets, eggs are being sold at $25 to $26 per dozen, the report relays. Ramsingh noted that the association's producers have continued to be flexible, even in times of major shortages, the report notes. "We continue to strive to provide food for the nation at our most competitive prices, however, we do not control the supermarkets' costs," he outlined, the report relays. Ramsingh added that this increase has no connection or relation to the soaring US prices of eggs, as the price adjustment was specifically based on T&T's local feed increases another distribution cost, the report discloses. Bakeries: No increase One of the owners of Chee Mooke Bakery located in Port of Spain, Stokely Phillips, said the $3 increase per dozen for eggs would not have a major impact on its operations, as the bakery does not use many products with eggs, the report relays. "Changing prices is a traumatic thing and it's very time-consuming to do, as it must be correct and fair to the customers. So it would not be worth our while right now, because we made a jump in prices a couple of months ago and we are satisfied with the results," Phillips highlighted, the report discloses. Also giving his views on the proposed increase in the price of eggs was the owner of Puff n' Stuff located in San Fernando, Gregory Laing, who said he did not foresee an increase on the horizon, the report notes. "We are good with our price structure at this time and do not forecast an increase within six months from yesterday. We do not believe that the prices of products would drastically increase. The bakery does not anticipate flour, yeast, and other items going up again. We have a positive outlook that our costs should stay where it is," Laing added. ********* 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. 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