/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/230213.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 Monday, February 13, 2023, Vol. 24, No. 32 Headlines A R G E N T I N A ARGENTINA: Buckles Under Strain of US$174-Billion Debt B R A Z I L AMERICANAS SA: SPX Spearheads Group of Local Bondholders BRAZIL LOAN I: Fitch Affirms 'BB-sf' Rating on Senior Secured Notes REDE D’OR SAO LUIZ: Fitch Affirms Foreign Currency IDR at 'BB' C O S T A R I C A REVENTAZON FINANCE: Fitch Affirms 'B+sf' Rating on $135M Notes E L S A L V A D O R BANDESAL: Moody's Affirms 'Caa3' Foreign Currency Issuer Rating J A M A I C A JAMAICA: On Track for Continued Recovery Despite Risks, IMF Says M E X I C O OPERADORA DE SERVICIOS: Moody's Lowers Issuer Ratings to B2 P A R A G U A Y TELEFONICA CELULAR: Fitch Affirms Foreign Currency IDR at 'BB+' P U E R T O R I C O R&M DISTRIBUTORS: Seeks to Hire Juan Bigas Valedon as Counsel T R I N I D A D A N D T O B A G O TRINIDAD & TOBAGO: More Business Groups Concerned at Rate Hikes TRINIDAD & TOBAGO: Supermarkets Want Staggered Rate Hikes X X X X X X X X [*] BOND PRICING: For the Week Feb. 6 to Feb. 10, 2023 - - - - - ================= A R G E N T I N A ================= ARGENTINA: Buckles Under Strain of US$174-Billion Debt ------------------------------------------------------ Buenos Aires Times reports that cut off from global credit markets, Argentina's government is selling ever more local currency bonds, amassing a debt load that already totals 33 trillion pesos (US$174 billion) and is rising almost exponentially. The Treasury will seek to roll over 300 billion pesos of debt, offering higher interest rates and shorter maturities to entice investors as they have in each of the previous four months, according to Buenos Aires Times. For Fabricio Gatti, a portfolio manager at Novus Asset Management in Buenos Aires who holds the notes, that tactic will only work for another few months, the report notes. By the second quarter, investors may refuse to roll over the securities ahead of presidential elections in October, potentially ushering in Argentina's second default on local currency debt in four years, the report say. "Investors are going to be increasingly scared by the possibility of a restructuring," Gatti said, the report discloses. They are hoping "that the government will continue rolling over its debt until a new government takes office, but that path isn't assured yet," the report relays. Argentina's Economic Planning Secretary Gabriel Rubinstein said in a Twitter post the debt in pesos was sustainable and manageable, adding that Treasury debt held by private investors only represented eight percent of gross domestic product, the report notes. A spokeswoman for Argentina's Economy Ministry declined to comment. The report notes that here are some notes on Argentina's mounting debt burden and its impact: Ballooning debt The Treasury rolled over debt in January and sold almost 220 billion pesos in new bonds. The bulk of the securities sold under President Alberto Fernandez's administration are linked to inflation, which is soaring at an annual pace of almost 100 percent. So the explosion in inflation, rather than providing a big dose of debt relief, is straining fiscal coffers even further. Debt burden Argentina posted a primary deficit of 2.4 percent of gross domestic product last year. Cut off from global markets since it restructured US$65 billion of overseas bonds three years ago, that deficit has to be financed by the local market. And with the government trying to avoid printing money to slow inflation, the debt is weighing more heavily on the economy. Debt wall Argentina faces a wall of debt coming due starting in April, with an average of about two trillion pesos maturing monthly through the third quarter. Creditors are increasingly reluctant to rollover those securities for any extended period on fears the government will ramp up populist spending ahead of the October elections. Ratings agencies have already sounded the alarm, cutting the nation's local currency rating to selective default in January. Higher rates As the debt load mounts and the threat of reprofiling looms, many private sector investors are holding out for the government to offer ever higher interest rates, said Juan Manuel Pazos, chief economist at TPCG Valores in Buenos Aires. Longer maturities The Treasury hasn't rolled over any debt with a maturity of eight months or more since September, in sharp contrast to earlier in the year. No debt sold in the open market in the last four months will come due after the parties hold primaries in August. It was the success of the left wing in those primaries four years ago that sent Argentine assets tumbling. "At some point, no carrot will be large enough for private sector investors to participate, and they will opt to hold out," Pazos said. "But we're not there yet." Silver linings The vast majority of Argentina's local securities are held by public institutions like the state pension fund and state-owned banks, which typically roll over their debt. Private investors such as banks, mutual funds and insurance companies are also regulated and many will be obligated to continue investing, according to Adrian Yarde Buller, chief economist at Facimex Valores in Buenos Aires. The report relays that the fact those investors have rolled over their debt has enabled Argentina to slow money printing in the last year as it tries to meet targets set out under its US$44-billion programme with the International Monetary Fund. Should investors stop rolling over debt in the second quarter as some forecast, the Central Bank will have to resume money printing, fuelling inflation and increasing pressure on the government to devalue its official exchange rate, according to Javier Casabal, a fixed income strategist at Adcap, a local brokerage, the report discloses. That, in turn, adds to pressure for a reprofiling of the debt. "If Argentina doesn't manage to refinance its local debt, the market will start to get nervous, and we could see more pronounced redemptions from mutual funds," Casabal said, the report notes. "There are already redemptions, but for now, everything is still manageable," 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. 20, 2023, affirmed its 'CCC+/C' foreign currency and 'CCC-/C' local currency sovereign credit ratings on Argentina. The outlook on the long-term ratings remains negative. S&P's 'CCC+' transfer and convertibility assessment is unchanged. 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. Fitch Ratings, on the other hand, downgraded in October 2022 Argentina's Long-Term Foreign-Currency (FC) and Local-Currency (LC) Issuer Default Ratings (IDRs) to 'CCC-' from 'CCC'. The downgrade 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 confirmed Argentina's Long-Term Foreign Currency Issuer Rating at CCC and Long-Term Local Currency Issuer Rating at CCC (high) on July 21, 2022. =========== B R A Z I L =========== AMERICANAS SA: SPX Spearheads Group of Local Bondholders -------------------------------------------------------- globalinsolvency.com, citing Bloomberg News, reports that Brazilian hedge fund manager SPX Capital is among asset management firms taking the lead in a group of local bondholders of troubled retailer Americanas SA organizing for restructuring negotiations. SPX, XP Asset Management, Riza, Icatu Vanguarda, Prada, Moneda and Exes were appointed as members of the committee that will represent a group of holders of the firm's domestic debt, according to a document reviewed by Bloomberg, the report notes. The group also approved hiring law firm E. Munhoz Advogados as its legal adviser, according to minutes from a Feb. 6 meeting. Americanas filed for bankruptcy protection last month, just days after finding 20 billion reais (YS$3.9 billion) of "accounting inconsistencies" that artificially boosted its profits and reduced reported liabilities, the report discloses. SPX, one of Brazil's largest independent hedge fund managers with over 76 billion reais in assets, hired Albano Franco from Banco BTG Pactual's asset-management unit in 2019 to build out its credit venture, the report discloses. Earlier, another Brazilian hedge-fund power house - Verde Asset Management - said it was stung by the rout in Americanas' local notes, the report relays. The firm said exposure to local bonds brought a 14 basis-point loss to its flagship fund last month, trimming January gains to 2.7%, the report adds. 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 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. BRAZIL LOAN I: Fitch Affirms 'BB-sf' Rating on Senior Secured Notes ------------------------------------------------------------------- Fitch Ratings has affirmed the senior secured pass-through notes issued by Brazil Loan Trust I at 'BB-sf' with a Stable Rating Outlook. Entity/Debt Rating Prior ----------- ------ ----- Brazil Loan Trust I Senior Secured Pass Through Notes 105859AA0 LT BB-sf Affirmed BB-sf Senior Secured Pass Through Notes Reg S USU0952YAA83 LT BB-sf Affirmed BB-sf TRANSACTION SUMMARY The transaction is a pass-through securitization of a 10-year amortizing loan originated by Bank of America N.A. (AA/Stable) to the Brazilian State of Maranhão (BB-/Stable). The loan is guaranteed on an unconditional and irrevocable basis by the Federative Republic of Brazil (BB-/Stable). The proceeds of the loan were used by Maranhão to refinance existing debt with Brazil. Loan principal and interest amortizations by either Maranhão, as borrower, or Brazil, as guarantor, are passed through for principal and interest amortizations on the notes. The rating of the notes is credit linked to the rating of Brazil. Payments on the loan are made to a bank account of Wilmington Trust N.A (administrative agent; A/Negative). On the next day, funds are transferred to an Issuer account at the Bank of New York Mellon (indenture trustee; AA/Stable). Payments are made under the notes immediately thereafter. Fitch's rating addresses timely payment of interest and principal on the scheduled payment date until legal final maturity. KEY RATING DRIVERS Transaction Rating Linked to Sovereign IDR: The transaction benefits from an unconditional and irrevocable guarantee from Brazil as primary obligor on the underlying loan. Therefore, the rating of senior secured pass-through notes is equivalent to Brazil's Long-Term (LT) Foreign Currency (FC) Issuer Default Rating (IDR), which was affirmed by Fitch on Dec. 20, 2022, at 'BB-' with a Stable Outlook. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: - The senior secured pass through notes' ratings are linked to the LT FC IDR of Brazil; hence, a downgrade of Brazil's IDR would trigger a proportionate downgrade of the notes. Factors that could, individually or collectively, lead to positive rating action/upgrade: - The senior secured pass through notes' ratings are linked to the LT FC IDR of Brazil; hence, an upgrade of Brazil's IDR would trigger a proportionate upgrade of the notes. REDE D’OR SAO LUIZ: Fitch Affirms Foreign Currency IDR at 'BB' ---------------------------------------------------------------- Fitch Ratings has affirmed Rede D'Or Sao Luiz S.A.'s Long-Term Foreign Currency Issuer Default Rating (IDR) at 'BB', Long-Term Local Currency IDR at 'BBB-' and National Long-Term Rating at 'AAA(bra)'. In addition, Fitch has upgraded the debentures of the former Sul America S.A. to 'AAA(bra) from A+(bra), since Rede D'Or has become the successor of those issuances. The Rating Outlook is Stable. Rede D'Or's ratings reflect the defensive nature of its business, solid competitive position in the fragmented hospital industry in Brazil, and a track record of adequate capital structure supported by a mix of internal cash flow, debt and equity, strong liquidity and FCF before capex. The ratings also reflect the supply deficit for hospital services in Brazil and the company's solid portfolio of counterparties. Fitch expects Rede D'Or's adjusted net leverage (on a stand-alone basis) to peak in 2022 at 3.2x and to decline to 2.8x and 2.3x in 2023 and 2024. Considering the merger with former Sul America S.A. (SASA), those numbers are expected to be a benefit, given the latest's unleveraged capital structure. KEY RATING DRIVERS Leading Business Position: Rede D'Or is the largest private hospital network in Brazil's fragmented and underserved hospital industry. The company owns 69 hospitals (11,046 total beds and 9,613 operating beds) as of Sept. 30, 2022. Rede D'Or has a solid business position and large scale of operations in its key markets, which serves as a key competitive advantage, allowing for lower fixed-costs and significant bargaining power with counterparties and the medical community. This scale, in addition to a strong brand, act as strong barriers to entry over the medium term. The healthcare industry has positive long-term fundamentals, in light of the imbalance between supply and demand for hospital services in Brazil and lack of good healthcare services infrastructure in the public sector. Merger with Sul America: The all-shares transaction is expected to enhance Rede D'Or's business position within the healthcare industry in Brazil, given SASA's strong brand and fourth largest position in the health insurance market. Following the completion of the transaction, Sul America was incorporated into Rede D'Or during late December 2022. The insurance activity will operate independently, given certain regulatory requirements. Main treasuries activities are expected to be managed by Rede D'Or, on a consolidated basis. Rede D'Or was approved as the successor of Sul America's previous public debentures (outstanding balance of around BRL3 billion as of Sept. 30 2022). This operation should bring opportunities to explore new services and products for the Rede D'Or group, while bringing relevant know-how in the insurance market. Rede D'Or has a good track record of execution in consolidating the hospital industry in Brazil. Although Sul America is a new business, Fitch considers the execution risks manageable. Rede D'Or has a solid management team with ample experience in the healthcare industry, including insurance activities. Country Ceiling Constrain: Rede D'Or's Long-Term Foreign Currency IDR is constrained by Brazil's 'BB' Country Ceiling since its operations are domiciled in Brazil. The investment-grade Long-Term Local Currency IDR reflects the resilience of Rede D'Or's business to economic downturns, and the positive prospects over the longer term. Withstanding Challenging Industry Scenario: The past years of industry consolidation and the increasing level of vertical integration among competitors has increased competition. Post-pandemic, increasing medical loss ratios within healthcare operators, insurances, logistic supply issues within the medical drugs and devices companies, have all impacted Rede D'Or's 2022 performance. Business scale, strong brand and medical recognition are essential competitive advantages that help to mitigate the increasing pressure from healthcare plan providers in terms of contracts pricing and working capital management. Fitch believes Rede D'Or is well positioned to face the ongoing developments in industry dynamics. Margins to Improve: Fitch expects Rede D'Or's adjusted EBITDA margins, on a stand-alone basis, to improve to around 23% in 2023 and 2024, which would be in line with 2019 pre-pandemic figures (23.4%), per Fitch's calculation. The company's margins compares well with global peers. The company has efficiently increased profitability through economies of scale and synergies from acquisitions. However, operating performance in 2022 was still impacted by the pandemic, fewer high-complexity hospitalizations and high inflation and interest rates and pressure on the payors side. Fitch forecasts adjusted EBITDA of around BRL4.9 billion in 2022 to grow to BRL6.2 billion in 2023 and BRL7.5 billion in 2024. Strong Growth Strategy: Free cash flow (FCF) is expected to remain negative as Rede D'Or continues to pursue both organic and inorganic growth. The company seeks to diversify its service portfolio by expanding its ambulatory, oncology and opportunities to increase verticalization, i.e. the diagnostics market segment. Fitch expects this growth to be funded by a mix of internal cash flow generation, cash on hand and new local debt. Leverage to Peak in 2022: Fitch projects Rede D'Or's leverage ratio to reach 3.2x in 2022, and 2.8x and 2.3x in 2023 and 2024, considering ongoing capex and/or acquisitions of up to BRL3.5 billion per year. These numbers do not include the likely benefit of the full integration of Sul America. Rede D'Or is expected to remain diligent in managing quite robust cash balances, a sign of positive synergies regarding the operational improvements in terms of SG&A savings and the rerouting of more patients to its network. The company has a positive track record of managing its capital structure, even raising equity when necessary to bring net leverage more in line within the 2.0x-2.5x range. Legal Contingencies: Rede D'Or is exposed to tax litigation that could result in loss, as no provisions have been recorded. The most significant, BRL1.1 billion, refers to allegations by the Brazilian Internal Revenue Service that certain doctors who render services in Rede D'Or's hospitals through legal entities should be considered company employees, which would require additional tax payments. Negative outcomes from this litigation could change the company's business model and affect its cost dynamics. However, Fitch has not incorporated this into its base case scenario at this time. DERIVATION SUMMARY Rede D'Or's ratings reflect Brazil's private hospital industry's low business risk and its positive business fundamentals, adequate capital structure and strong financial flexibility. Compared to Auna S.A.A.(B+/Stable), Rede D'Or has stronger business scale and capital structure. Rede D'Or compares well in terms of business scale and operating margins with the Brazilian non-for-profit hospital Sociedade Beneficente Israelita Brasileira Hospital Albert Einstein (Einstein; AAA(bra)/Stable), but Einstein has a track record of lower leverage. Compared to the Brazilian diagnostic and hospital competitor Diagnostico da America S.A (Dasa; AAA(bra)/Negative), Rede D'Or has lower business risk, due to much lower competitive pressures. Both companies have aggressive growth strategies. From a financial risk perspective, Rede D'Or has lower leverage and greater financial flexibility following the IPO. Rede D'Or, Auna, Einstein and Dasa all benefit from strong brands and reputation in the industry, which offer important competitive advantages and translate to strong relationships with counterparties. On a global scale, the dynamics of the Brazilian hospital industry and regulation are not directly comparable to other countries. Rede D'Or's operating margins and financial metrics are quite sound compared with other rated hospitals within Fitch's global universe. Rede D'Or's Long-Term Foreign Currency IDR is constrained by Brazil's 'BB' Country Ceiling since its operations are domiciled in Brazil. The investment-grade Long-Term Local Currency IDR reflects the resilience of Rede D'Or's business to economic downturns, and the positive prospects over the longer term. KEY ASSUMPTIONS Fitch's Key Assumptions Within the Rating Case for the Issuer Include: - Revenue growth reflecting ongoing acquisitions and greenfield/brownfields projects; - EBITDA margins of around 23%-24%; - Working capital needs to remain on historical levels; - Average Capex and M&A disbursements of BRL3.5 billion annually; - A 25% minimum dividend payout. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: - Positive rating action for the Long-Term Foreign Currency IDR is limited by Brazil's 'BB' Country ceiling; - Upward rating potential for Rede D'Or's 'BBB-' Long-Term Local Currency IDR is unlikely in the medium-term given the company's ongoing aggressive growth strategy, through both organic and M&A movements, and its lack of geographic diversification, which leads to large exposure to the local economy in Brazil. Factors that could, individually or collectively, lead to negative rating action/downgrade: - A change in management's strategy with regard to its conservative capital structure could also lead to a downgrade, as could a deterioration in the company's reputation and market position; - Hospital operation EBITDA margin declining to below 20%; - Total leverage consistently above 4.0x and net leverage consistently above 2.5x; - Deterioration of a sound liquidity position leading to refinancing risk exposure; - Major legal contingencies that represent a disruption in the company's operations or a significant impact to its credit profile. LIQUIDITY AND DEBT STRUCTURE Robust Liquidity: Rede D'Or has a track record of maintaining strong cash balances, while it navigates is aggressive growth strategy. The company had BRL28.9 billion of debt (net of derivatives and obligations with acquisitions), as of Sept. 30, 2022, of which BRL4,7 billion is due in the short term. Rede D'Or's BRL13.5 billion of cash on hand is sufficient to support debt amortization at least 2027. Around 20% of Rede D'Or debt, as of Sept. 30, 2022, was linked to the U.S. dollar, including BRL4.7 billion senior unsecured notes due 2028/2030. The company utilizes hedging instruments to moderate currency mismatch risks, since revenues are nearly 100% originated in Brazil. Rede D'Or does not have committed credit facilities. The company's financial flexibility is solid, and the company has shown good access to the local and cross- border capital markets. Fitch expects Rede D'Or will maintain a strong liquidity position and its proactive approach in liability management to avoid exposure to refinancing risks. As of Sept. 30, 2022, the former Sul America entity reported BRL3.1 billion of debt (local debentures), cash of BRL709 million and marketable securities of BRL18.4 billion. At the same period, total technical provision was BRL15.9 billion and private pension reserves of BRL9.9 billion. ISSUER PROFILE Rede D'Or is the largest private hospital player in Brazil, with 69 hospitals totaling 9.6 thousand operational beds and the country's largest integrated cancer treatment network as of Sept. 30, 2022. ESG CONSIDERATIONS Rede D'Or Sao Luiz S.A. has an ESG Relevance Score of '4' for Labor Relations & Practices due to labor/tax litigation. The company registers their employees (mostly physicians) as service providers, not as Rede D'Or's employees. This has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. 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. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg Entity/Debt Rating Prior ----------- ------ ----- Rede D'Or Finance S.a. r.l. senior unsecured LT BB Affirmed BB Rede D'Or Sao Luiz S.A. LT IDR BB Affirmed BB LC LT IDR BBB- Affirmed BBB- Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Upgrade A+(bra) =================== C O S T A R I C A =================== REVENTAZON FINANCE: Fitch Affirms 'B+sf' Rating on $135M Notes -------------------------------------------------------------- Fitch Ratings has affirmed Reventazon Finance Trust's USD135 million fixed-rate notes at 'B+sf'. The Rating Outlook is Stable. Fitch's rating addresses timely payment of interest and ultimate principal at legal maturity. Entity/Debt Rating Prior ----------- ------ ----- Reventazon Finance Trust Notes 76138QAA5 LT B+sf Affirmed B+sf Notes REGS USG75463AA02 LT B+sf Affirmed B+sf KEY RATING DRIVERS Repayment of Notes Reliant on ICE Lease Payments: The notes are backed by 100% participation interest on the Inter-American Development Bank's (IDB) B-loan acquired through a participation agreement, which gives the right to receive payments under IDB's B-loan. Instituto Costarricense de Electricidad y Subsidiarias' (ICE) lease payments from a non-cancellable financial lease agreement for the operation and maintenance of the hydropower plant will cover all payments on the loan. Transaction Rating Linked to ICE's Issuer Default Rating (IDR): Given the unconditional and irrevocable nature of the lease payments, Fitch views the credit risk of these payments as linked to ICE's credit quality. On Oct. 21, 2022, Fitch affirmed ICE's Foreign Currency (FC) and Local Currency (LC) IDRs. Grupo ICE's ratings are supported by its linkage to the sovereign rating of Costa Rica (B/Stable), which stems from the company's government ownership and the implicit and explicit expectation of government support. Lease Payment Obligation Supported by IDB as Lender of Record: To determine the strength of the lease payment obligation, Fitch considered the role of IDB as lender of record of the obligation being covered by ICE's payments, tied to ICE's ownership structure. As the IDB will continue to be the lender of record and administer IDB's B-loan, Fitch believes the holders of the rated notes will benefit from the B-loan preferential, de facto, status provided by IDB. Because of this benefit, the credit quality of the payment obligation is considered to be in line with other obligations of Costa Rica with the IDB and therefore was notched upward (one notch) from ICE's IDR. Noteholders Benefit from IDB's Preferred Creditor Status: Historically, sovereigns have prioritized certain obligations, such as obligations from multilateral development banks, when the government cannot service all of the country's external debt. While the B-loan is not a direct obligation of the sovereign, Fitch believes treatment of the IDB as a preferred creditor extends to ICE as the debtor, since ICE is a strategic government-owned entity that receives underlying sovereign support. Although Costa Rica has defaulted in the past (1981), neither the sovereign nor ICE have ever defaulted on debt issued by a preferred creditor. Currently, IDB's share of Costa Rica's external debt is approximately 13%, in line with historical figures, which makes it an essential preferred creditor for the country. Adequate Liquidity Present: The rated notes benefit from a debt service reserve account equivalent to the next principal and interest payment due amount. This liquidity provides certainty in case the transaction is exposed to temporary liquidity shock. As of November 2022, the account had sufficient liquidity to cover debt service on the issued notes payment due in May 2023. The KRDs listed in the applicable sector criteria, but not mentioned above, are not material to this rating action. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: - The notes' ratings are linked to the Long-Term (LT) FC IDR of ICE; hence, a downgrade of ICE's IDR would trigger a downgrade of the rated notes in the same proportion; - Changes in Fitch's view of the treatment of the IDB as a preferred creditor may trigger a rating action on the notes. - In December 2022, Fitch revised its "Global Economic Outlook" forecasts as a result of central banks being forced to toughen up in their fight against inflation and China's property market outlook deterioration. 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 structured finance (SF) and covered bond subsectors ("What a Stagflation Scenario Would Mean for Global Structured Finance"). The impacts of the current economic outlook are incorporated into Fitch's view of ICE's credit quality and may therefore indirectly affect the transaction's rating. Factors that could, individually or collectively, lead to positive rating action/upgrade: - The notes' ratings are linked to the LT FC IDR of ICE; hence, an upgrade of ICEs IDR would trigger an upgrade of the rated notes in the same proportion. CRITERIA VARIATION Fitch's "Single- and Multi-Name Credit Linked Notes Rating Criteria," dated Jan. 11, 2023, establishes that the credit quality of the risk presenting entity (RPE) in a credit-linked notes transaction is typically determined by an IDR assigned by Fitch. However, in some situations, a committee would consider using the actual bond rating (e.g. senior unsecured rating, subordinate rating) of an asset in place of the IDR. For this transaction, it has been determined that the credit quality of RPE is not commensurate with the IDR or any particular bond rating of the obligor, as sovereign ratings do not directly address all forms of obligations. To determine the credit quality of the sovereign obligation and its notching from the sovereign IDR, Fitch incorporated perspectives from its sovereign group. During the analysis, it was determined that the appropriate notching uplift from the primary risk contributor would be one notch. 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. ===================== E L S A L V A D O R ===================== BANDESAL: Moody's Affirms 'Caa3' Foreign Currency Issuer Rating --------------------------------------------------------------- Moody's Investors Service has affirmed all ratings and assessments assigned to Banco de Desarrollo de la Republica de El Salvador (Bandesal), including the bank's foreign currency issuer rating at Caa3, and its baseline credit assessment (BCA) and adjusted BCA, both at caa3. The bank's long-term and short-term counterparty risk ratings of Caa2/NP and counterparty risk assessments (CRAs) of Caa2(cr)/NP(cr) were also affirmed. The outlook on all ratings was changed to stable, from negative. The rating action follows the affirmation of Government of El Salvador's Caa3 bond rating and the change in outlook to stable from negative. RATINGS RATIONALE Bandesal's Caa3 issuer rating is constrained by El Salvador's sovereign rating, reflecting Moody's view that as a state-owned bank, its creditworthiness is intrinsically interlinked with that of the government. These interlinkages are mainly related to the impact of the sovereign credit profile on the bank's operating environment and potential funding pressures that could arise from El Salvador's higher reliance on the domestic financial system, as well as from its ownership structure as a government-owned bank. The outlook change to stable is also in line with the stabilization on the sovereign rating that reflected Moody's view of a decreased risk of credit event in the near term, following the distressed exchange in 2022 and the recent repayment of the 2023 international bond. By affirming Bandesal's caa3 BCA, Moody's acknowledges the bank's strong asset quality position, which benefits from its focus on indirect lending through other financial institutions and its preferred creditor status. Since 2021, the bank has significantly expanded its direct lending to small and medium sized companies (SMEs) from 5% in 2019 to 30% of gross loans in 2022. While this expansion into a higher-yield corporate lending will be positive for profitability, it also increases asset risk pressures. Bandesal's capitalization remained high relative to historical averages, with tangible common equity (TCE) to risk weighted assets (RWA) ratio at 43% in September 2022, despite the strong growth of direct loan portfolio. This level of capitalization is continues to represent a key strength that provides a sizable buffer to absorb losses. Capital will continue to be supported by the bank's adequate earnings generation capacity and contained dividend payout policy, that stood at 20% of net income between 2019-2021. The Caa3 issuer rating also incorporates the bank's moderate profitability reflecting Bandesal's developmental role and focus on low-yielding lending, as well as its full reliance on wholesale market funding from multilateral institutions. Since 2020, net income to tangible banking assets ratio improved, benefitting from higher margins related to riskier assets related to the expansion of the direct lending operation. However, Moody's expects that rising funding cost and the need to create additional provisions will pressure profitability closer to historical levels. In September 2022, net income to tangible banking assets was 1.5%. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The Caa3 issuer rating of Bandesal is positioned at the same level of the sovereign bond rating. The bank's BCA and rating could be upgraded if El Salvador's sovereign bond rating was upgraded, provided that the bank's financial profile remained sound. Downward pressure on the bank's ratings would arise following a downgrade of the sovereign rating or if asset quality, capital and profitability deteriorate materially. METHODOLOGY USED The principal methodology used in these ratings was Banks Methodology published in July 2021. ============= J A M A I C A ============= JAMAICA: On Track for Continued Recovery Despite Risks, IMF Says ---------------------------------------------------------------- RJR News reports that the International Monetary Fund (IMF) says Jamaica is on track for continued recovery, despite increased global risks. In its Article IV review of Jamaica for 2022, the IMF said despite the difficult global environment, the country's policy frameworks and macroeconomic stability has encouraged recovery, according to RJR News. But the global lending agency says the risks remain high, with the impact of the war in Ukraine on commodity prices and inflation still above the Bank of Jamaica's target, the report notes. Still, the IMF team says it expects inflation to decline during the course of 2023, reaching the central bank's target range by year-end, the report relays. It says high commodity prices have resulted in an increase in the current account deficit, the report notes. In the midst of that dynamic, Jamaica's international reserves remain at healthy levels and the financial system is well-capitalized and liquid, the report disclose. The IMF says throughout the year, the country's policies have struck the right balance in responding to shocks, protecting the vulnerable, countering inflationary pressures, and further securing debt sustainability, 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. =========== M E X I C O =========== OPERADORA DE SERVICIOS: Moody's Lowers Issuer Ratings to B2 ----------------------------------------------------------- Moody's Investors Service has downgraded Operadora de Servicios Mega, S.A. de C.V., SOFOM, E.R.'s (Mega) long-term global local and foreign currency issuer ratings to B2 from Ba2, as well as its long-term global foreign currency senior unsecured debt rating and its long-term Corporate Family Rating, from B2 to Ba2. The short-term global local and foreign currency issuer ratings were affirmed at Not Prime. The outlook was changed to negative from stable. RATINGS RATIONALE The rating action reflects Mega's greatly diminished funding ability and business prospects, resulting from a market confidence crisis that has hurt the sector of non-bank financial companies in Mexico. Uncertainties around sector have grown exponentially over the past two years, driven by a string of highly publicized defaults of peer companies; four of the six Mexican non-bank lenders with outstanding debt in the international markets have defaulted on their foreign currency bonds since 2021 due to tightened liquidity buffers and accounting errors that resulted in material portfolio write offs. These events have affected investors' confidence and risk appetite, which, will likely continue to constrain Mexican finance companies' market access and ability to refinance maturing debt and credit lines. In reflecting these material changes in its assessment of the operating environment, Moody's has lowered its industry risk score for leasing companies in Mexico to B from Ba, which in turn lowers the Mexico's operating environment score to B2 from Ba2. Moody's believes that the industry's tightened conditions will pressure Mega's overall financial performance and profile in light of its $352 million outstanding international bond due in February 2025. Under this challenging funding conditions, the company's refinancing risks increase for the next 24 months, which will limit business origination capacity and, thus, reducing future earnings generation. In 2022, Mega reported very high levels of loan growth, at 20-25% year-over-year. At the same time, the company will likely increase its reliance on secured market financing to support its liquidity position, reducing the availability of unencumbered assets and financial flexibility. While Mega's efforts in curbing loan growth will help slowdown cash outflows, profitability will remain under considerable pressure in 2022, as a result of lower business volumes and higher funding costs. In the first nine months of 2022, Mega's net interest margins declined to 0.5% from 2.0% reported one year earlier, pressured by the hike in interest expense, and a moderation in loan origination relative to pre-pandemic years. At the same time, bottom line results were boosted by the one-off gains related to buybacks of their 2025 bonds in 2022, which, if eliminated would result in negative results for the year. Additionally, the firm's asset quality pressures are also increasing amid weakened economic activity in Mexico, which will negatively impact the segment of small and medium size companies in Mexico. The rating action further reflects Moody's re-assessment of Mega's governance risks due to elevated uncertainties around of its risk profile and a lower resilience to the worsening operating environment. Moody's said the evolution of Mega's strategy over the last year has highlighted some risk management and governance challenges, such as a potential failure to properly assess and respond to deteriorating market conditions in light of the lessor's high risk appetite that will increase the firm's exposure to adverse developments. Reflecting Moody's views of the aforementioned higher governance risks Mega faces, Moody's changed Mega's governance issuer profile score to G-3 from G-2 and Mega's ESG credit impact score to CIS-3 from CIS-2 to reflect the negative impact this risk has on Mega's ratings. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Negative rating action could be triggered by heightened refinancing risks in the short-term evidenced by the company's inability to obtain new credit lines in 2023, or by significant deterioration to its asset quality metrics that struggle cash inflows from its loan collections. These developments would raise significant concerns around Mega's liquidity position for 2024 and the refinancing risks related to its international debt maturity in 2025. At the same time, a higher-than-expected deterioration of the lessor's core earnings generation, that would ultimately hurt capitalization, could add further pressure to ratings. In light of the negative outlook, limited prospects exist for the rating to be upgraded. However, the outlook on Mega's ratings could be stabilized upon diminished uncertainties around the lessor's funding strategy ahead of its international bond maturity in 2025, resulting in a material strengthening in company's liquidity profile. The principal methodology used in these ratings was Finance Companies Methodology published in November 2019. LIST OF AFFECTED RATINGS Issuer: Operadora de Servicios Mega SA de CV SOFOM ER Downgrades: Corporate Family Rating, Downgraded to B2 from Ba2 LT Issuer Rating, Downgraded to B2 from Ba2 Senior Unsecured Regular Bond/Debenture, Downgraded to B2 from Ba2 Affirmations: ST Issuer Rating, Affirmed NP Outlook Actions: Outlook, Changed To Negative From Stable =============== P A R A G U A Y =============== TELEFONICA CELULAR: Fitch Affirms Foreign Currency IDR at 'BB+' --------------------------------------------------------------- Fitch Ratings has affirmed the Long-Term Foreign Currency (FC) Issuer Default Rating (IDR) of Telefonica Celular del Paraguay S.A. (Telecel) at 'BB+' with a Stable Rating Outlook. Fitch has also affirmed Telecel's senior unsecured notes due 2027 at 'BB+'. Telefonica Celular del Paraguay S.A.'s (Telecel) ratings reflect its leading market positions in Paraguay, supported by an extensive network, distribution coverage and brand recognition of Tigo. Telecel's competitive strengths enable high margins and stable operational cash flow generation, resulting in a solid financial profile. Telecel's FC IDR is capped by the 'BB+' Country Ceiling of Paraguay. The ratings reflect the linkage between the company and its parent, Millicom International Cellular S.A. (BB+/Stable), given Millicom's full control of Telecel through its 100% ownership stake. Both companies are rated at the same level due to their similar credit profiles. KEY RATING DRIVERS Constrained Rating: Telecel's FC IDR is constrained by Paraguay's Country Ceiling of 'BB+' as well as its relatively weak operating environment and linkages with parent Millicom (BB+/Stable). The company's underlying credit quality is highlighted by its leading market position and strong pre-dividend FCF and a financial profile that is solid within the rating level. Telecel is the largest telecom provider in Paraguay, offering mobile telephone, pay-tv and broadband internet services across the country under the Tigo brand. The company's business profile and network quality support its consistent cash flow generation. Solid Market Position: Telecel is a wholly owned subsidiary of Millicom and the leading mobile operator in Paraguay, with a mobile market share of slightly above 50%. Telecel has an entrenched position with the most extensive network in Paraguay. Fitch Ratings believes Telecel's market leadership will remain intact, supported by market-leading networks in mobile and fixed-line, deep sales network and strong brand recognition. While competition has intensified in the broadband internet services business in recent years, investments to modernize and expand its network should allow Telecel to maintain its leading position in the market. Profitability Stabilizing: Telecel's EBITDA margin over the medium to long term is expected to remain higher than its regional telecom peers given the company's leading position in the country and network investments. Fitch expects margins to remain stable at around 36% over the medium term, as postpaid and broadband internet subscriber growth is offset by weaker ARPUs. Strong Pre-Dividend Cash Flow: Fitch projects cash flow from operations to remain solid at around PYG1.0 trillion annually over the medium term, comfortably covering Fitch's estimated annual capex in 2023 and beyond of around 18% of sales, or roughly PYG700 billion, results in solid pre-dividend FCF. Historically, dividends have been high; however, the company has shown dividend flexibility when needed to manage leverage. Leverage to Remain Steady: Fitch expects Telecel's solid financial profile will remain intact over the medium term, backed by strong operational cash flow generation. The company's net leverage should hover around 3.0x over the medium term, primarily due to growing revenues and steady margins. DERIVATION SUMMARY Telecel is well-positioned relative to telecom peers in the 'BB' category, based on high profitability, low leverage and a leading mobile market position, backed by solid network competitiveness and strong brand recognition. Telecel boasts a strong financial profile with high profitability and low leverage for the rating level, compared with regional telecom peers in the same rating category. The company's credit profile is in line with Colombia Telecomunicaciones S.A. E.S.P. (BBB-/Stable), an integrated telecom operator in Colombia. Telecel's credit profile is stronger than those of Axtel, S.A.B. de C.V. (BB-/Negative) and VTR Finance N.V. (B/RWN), given their lack of service diversification and weaker financial profiles. Telecel's credit profile is weaker than Empresa de Telecomunicaciones de Bogota (BB+/Stable), while Telecel has a stronger market position with greater service and geographic diversification. Telecel's relatively weak geographic diversification, as well as its high shareholder return, temper the credit. Parent/subsidiary linkage is applicable, given Millicom's strong influence over Telecel's operations. KEY ASSUMPTIONS Fitch's Key Assumptions Within the Rating Case for the Issuer Include - Subscriber and revenue generating unit growth in the low-mid-single-digit range; - EBITDA margins at around 36%; - Capital intensity around 18% to support network modernization; - Dividend policy supports capital structure; - Net leverage in the 3.0x range. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An upgrade of Millicom would likely have positive rating implications. Millicom's upgrade triggers include increased dividend receipts from subsidiaries in Colombia and/or Panama, an upgrade in the Country Ceiling of Guatemala, an acquisition of EPM's ownership position in UNE EPM, and net debt/EBITDA below 2.5x; - An upgrade of Paraguay's Country Ceiling. Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A negative rating action on Millicom due to sustained net leverage exceeding 3.5x on a consolidated basis or 4.5x on a holding company debt/dividends received basis; - A downgrade of Paraguay's Country Ceiling. LIQUIDITY AND DEBT STRUCTURE Adequate Liquidity: Telecel's liquidity position is adequate, supported by its readily available cash balance, conservative leverage, and solid pre-dividend FCF generation. Demanding cash upstreams to parent Millicom temper financial flexibility somewhat. The company held a cash balance of PYG887 billion against short-term debt of PYG272 billion as of Sept. 30, 2022. The company's total debt, as of Sept. 30, 2022, was PYG5,200 billion, which consists mainly of a USD550 million (approximately PYG4,000 billion) senior unsecured bond due 2027 and local currency unsecured bank debt. In January 2020, Telecel issued a USD250 million add-on to its 2027 senior unsecured notes. The proceeds from the notes were used at Telecel's parent company, Millicom, for capex and general corporate purposes as well as for refinancing of other Telecel debt. ISSUER PROFILE Telecel is the largest telecom operator in Paraguay, providing mobile, fixed broadband, pay-TV, and mobile financial services (MFS), operating under the Tigo brand. The company has established itself as the leading player in each of its service categories boasting the most extensive 2G, 3G and 4G mobile networks and the most extensive HFC network in the country. SUMMARY OF FINANCIAL ADJUSTMENTS - Standard lease adjustments ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Entity/Debt Rating Prior ----------- ------ ----- Telefonica Celular del Paraguay S.A. LT IDR BB+ Affirmed BB+ senior unsecured LT BB+ Affirmed BB+ ===================== P U E R T O R I C O ===================== R&M DISTRIBUTORS: Seeks to Hire Juan Bigas Valedon as Counsel ------------------------------------------------------------- R&M Distributors, Inc. seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to hire Juan Bigas Valedon, Esq., and his firm, Juan C. Bigas Valedon Law Office, to handle its Chapter 11 case. Mr. Bigas, the firm's principal, will be paid at his hourly rate of $250, plus reimbursement for expenses incurred. The attorney received a retainer of $10,000 from the Debtor. Mr. Bigas disclosed in a court filing that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The attorney can be reached at: Juan C. Bigas Valedon, Esq. Juan C. Bigas Valedon Law Office 4ta. Ext. El Monte 63-D Granada Street Ponce, PR 00730 Telephone: (787) 259-1000 Facsimile: (787) 633-1253 About R&M Distributors R&M Distributors, Inc. sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 22-03718) on Dec. 23, 2022, with $100,001 to $500,000 in both assets and liabilities. Judge Mildred Caban Flores oversees the case. Juan C. Bigas-Valedon, Esq., at Juan C. Bigas Valedon Law Office represents the Debtor as counsel. ===================================== T R I N I D A D A N D T O B A G O ===================================== TRINIDAD & TOBAGO: More Business Groups Concerned at Rate Hikes --------------------------------------------------------------- Kay-Marie Fletcher at Trinidad Express reports that more business groups are coming forward to express their disagreement with the electricity rate increase proposed by the Regulated Industries Commission (RIC). While some groups echo the sentiments of many residential customers standing totally against any rate increase at all, others also questioned RIC's "bad timing" considering the present and increasing cost of living, according to Trinidad Express. Speaking to the Express via phone, President of the Greater San Fernando Area Chamber of Industry and Commerce (GSFCC) Kiran Singh questioned how chambers would be able to absorb such costs at this time, the report notes. Singh said, "The rates they are proposing is in the range 74 to 77 percent, the report relays. This chamber-and I am very aware that other chambers and other organizations have been expressing some grave concern, not just us-is wondering where are people going to find the money to meet this increased cost? "For instance, if your bill is $50,000 for the month in the industrial bracket, it means your bill is going to go up to almost $90,000 overnight. That is the reality, it's almost double. Where are people going to get this money? We can't pass it on to somebody else. We still have other expenses; insurance, other utilities, impending property tax. It's high," the report notes. "The RIC has not implemented a rate increase for TTEC, two periods have elapsed since they were supposed to do that rate review so of course we're not complaining about that . . . But who increases the cost of a good or service by almost 100 percent overnight? There is no preparation. There is no time to prepare financially to meet that increase. And while we're talking about the Dragon gas deal and we have projected revenue streams that will come in and of course we're excited about that, but to monetise that is going to take some time. It's not going to happen in the short term by any means. While the grass is growing, the horse is starving," he added. The RIC held a public consultation with the GSFCC at Paria Suites Hotel and Conference Centre, the report relays. During the meeting, Singh said the rate increase will also cause industrial customers to carry a heavier burden since they already have to pay a reserve capacity cost, the report discloses. "It is creating a lot of worry within the society and we really, really hope that there is some delay even before starting a prorated increase in the rates," the report relays. Manufacturers Concerned The RIC also met with the Trinidad and Tobago Manufacturers Association (TTMA) at the Hilton Trinidad and Conference Centre, Port of Spain and they too were against the rate increase, the report discloses. "The meeting was a productive one with concerns from the manufacturing community being ventilated and given due consideration by the RIC. TTMA looks forward to a positive outcome for all parties involved when the RIC completes its rounds of consultations with all stakeholders," said the TTMA, the report notes. "The RIC has indicated that the TTMA would have the opportunity to further engage with them to make additional submissions on behalf of our members. The Association will continue to liaise with our members to collate information to present to the RIC for its consideration at a later date," it added. The consultation was attended by TTMA's executive including Chief Executive Officer Dr Mahindra Ramesh Ramdeen along with some directors and members, the report says. The RIC met with the Supermarket Association of Trinidad and Tobago (SATT), Farmers Association of Trinidad and Tobago, Fishermen and Friends of the Sea (FFOS) and the Poultry Association of Trinidad and Tobago at Hilton Trinidad, the report relays. SATT president Rajiv Diptee said while the supermarket owners were not against a rate increase, it hoped that the public would be given time to afford the increase, the report relates. Speaking with the Express telephone, Diptee said, "We are saying any increase should be incremental across a period of years so that it can be absorbed in a more staggered fashion and in a way that would allow the population to come to terms with rate increases as we acknowledge that the cost of living across the board has increased," he report says. "We said all the same things that people would have raised as concerns in general. We talked to them about efficiency. We talked to them about black-outs. We talked to them about everything that you hear everybody talk about, we spoke about it," he added. The public consultations open to all T&TEC customers previously held at Centre of Excellence, Arima and in Tobago saw large crowds and a lot of tension, the report notes. The RIC is scheduled to meet seven union bodies, the report adds. TRINIDAD & TOBAGO: Supermarkets Want Staggered Rate Hikes --------------------------------------------------------- Kay-Marie Fletcher at Trinidad Express reports the Supermarket Association of Trinidad and Tobago (SATT) has recommended that the electricity rate increase proposed by the Regulated Industries Commission (RIC) be incremental and staggered across a period of several years. Kicking off public consultations with the groups for the price review for the electricity transmission and distribution sector, RIC met with the Supermarket Association of Trinidad and Tobago, Farmers Association of Trinidad and Tobago, Fishermen and Friends of the Sea (FFOS) and the Poultry Association of Trinidad and Tobago at Hilton Trinidad, according to Trinidad Express. The RIC met with SATT alone, the report notes. According to SATT's president Rajiv Diptee, the association expressed the same grievances as other persons shared during the public consultations held last month, the report relays. However, while it was not against a rate increase as many residential customers were, it hoped that the public would be given time to afford the increase, the report discloses. Speaking with the Express via phone, Diptee said, "We are saying any increase should be incremental across a period of years so that it can be absorbed in a more staggered fashion and in a way that would allow the population to come to terms with rate increases as we acknowledge that the cost of living across the board has increased," the report says. "We said all the same things that people would have raised as concerns in general. We talked to them about efficiency. We talked to them about black-outs. We talked to them about everything that you hear everybody talk about, we spoke about it," he added. The public consultations open to all T&TEC customers previously held at Centre of Excellence, Arima and in Tobago saw large crowds and a lot of tension, the report notes. However, when asked if there was any tension, Diptee said no, the report relays. While there were "sincere and passionate" debates between SATT members and the RIC's chair, Dawn Callender, and its executive director, Glenn Khan, he said their concerns were well received and they were given the assurance that the concerns of all stakeholders would be addressed, the report discloses. However, things were off to a rocking start as the FFOS said it is strongly against any rate increase at this time and was completely disappointed in the RIC as none of their concerns were addressed, the report says. Speaking to the Express via phone, secretary of FFOS Gary Aboud said, "Over our dead bodies will we allow any Government to ride roughshod over our poor. Over our dead bodies will they be allowed to do this without a proper and detailed analysis of the procurement practices, staff padding and at the cost of goods and services that they are paying for. They must analyse this first. At the end of that they can consider a reasonable rate increase," the report notes. "But don't tell me that we the taxpayer, we the poor, with so many people that are hungry and malnourished, with so many women who have serious poverty, that we now have to come and pay for Government inefficiencies. And, that the RIC, even though they themselves over and over in their own documents point to T&TEC's inefficiencies, now they should just turn their eyes and say, 'Even though they are inefficient, let's follow Dr Rowley's advice and make the poor pay." No, no, no!" He added. Aboud said he came prepared to express several grievances that the public has with T&TEC and RIC, however, the RIC answered none of his questions, the report relays. Instead, he said he was told by RIC's Callender that he needed to submit his questions to the commission in writing, the report notes. Some of his concerns included how the rate increase would affect the vulnerable population, whether the rate increase was in fact justified and if the RIC examined the procurement procedures and values of what T&TEC is paying for goods and services, the report discloses. However, he believed that RIC was unwilling to cooperate with public interest questions, the report notes. He also said he was very disappointed with the overall setting up of the consultation because FFOS was under the impression that each stakeholder would be having a one-on-one consultation with RIC as was advertised, the report says. Additionally, FFOS said all public consultations should be open to the public and not done in the closed-door fashion as is the format for all the special interest group consultations scheduled this month, the report adds. =============== X X X X X X X X =============== [*] BOND PRICING: For the Week Feb. 6 to Feb. 10, 2023 ------------------------------------------------------ City of Cordoba Argent 7.9 73.1 9/29/2024 AR USD Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD Argentine Republic Gov 7.1 75.7 6/28/2117 AR USD Provincia de Cordoba 7.1 74.7 8/1/2027 AR USD Province of Santa Fe 6.9 75.2 11/1/2027 AR USD Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD Sylph Ltd 2.4 65.1 9/25/2036 KY USD Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD Argentina Bonar Bonds 7.6 74.4 4/18/2037 AR USD Province of Santa Fe 6.9 74.7 11/1/2027 AR USD Provincia de Rio Negro 7.8 70.4 12/7/2025 AR USD Noble Holding Internat 6.2 62.2 8/1/2040 KY USD Provincia del Chaco Ar 4.0 0.0 12/4/2026 AR USD Cia Latinoamericana de 9.5 74.3 7/20/2023 AR USD Argentine Republic Gov 8.3 74.5 12/31/2033 AR USD AES Tiete Energia SA 6.8 1.2 4/15/2024 BR BRL Fospar S/A 6.5 1.2 5/15/2026 BR BRL Metrogas SA/Chile 6.0 41.6 8/1/2024 CL CLP Argentine Republic Gov 4.3 70.0 12/31/2033 AR JPY Provincia de Cordoba 7.1 72.7 8/1/2027 AR USD Argentina Bonar Bonds 5.8 75.2 4/18/2025 AR USD Noble Holding Internat 6.1 62.0 3/1/2041 KY USD Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD Argentine Republic Gov 6.3 74.1 11/9/2047 AR EUR Province of Santa Fe 6.9 75.2 11/1/2027 AR USD Provincia del Chaco Ar 9.4 74.8 8/18/2024 AR USD Provincia de Rio Negro 7.8 70.3 12/7/2025 AR USD Cia Latinoamericana de 9.5 73.9 7/20/2023 AR USD Provincia de Buenos Ai 7.9 75.3 6/15/2027 AR USD Esval SA 3.5 49.9 2/15/2026 CL CLP Provincia de Rio Negro 7.8 70.3 12/7/2025 AR USD Avadel Finance Cayman 4.5 55.0 2/1/2023 US USD Noble Holding Internat 5.3 60.5 3/15/2042 KY USD Argentine Republic Gov 0.5 27.6 12/31/2038 AR JPY Argentine Republic Gov 6.9 75.2 1/11/2048 AR USD Argentine Republic Gov 8.3 74.5 12/31/2033 AR USD Province of Santa Fe 6.9 74.7 11/1/2027 AR USD ********* 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. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *