/raid1/www/Hosts/bankrupt/TCRLA_Public/230215.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
Wednesday, February 15, 2023, Vol. 24, No. 34
Headlines
A R G E N T I N A
ARGENTINA: Credit Agencies Disbursed Record Amount in 2022
ARGENTINA: Soy Harvest Set for 14-Year Low Amid Punishing Drought
B R A Z I L
BRAZIL: Bank Sees Risks From Fiscal Framework Review & Stimulus
EMBRAER SA: S&P Upgrades ICR to 'BB+' on Solid Cash Flow
GOL LINHAS: S&P Downgrades ICR to 'CC', Outlook Negative
S.A. USINA CORURIPE: S&P Lowers ICR to 'B-', Outlook Negative
C A Y M A N I S L A N D S
ROCKLEY PHOTONICS: Taps Alvarez & Marshal as Restructuring Officers
TOURADJI PRIVATE: Appoints FPP Limited Joint Official Liquidator
C H I L E
CHILE: Market Projects 1.5% Economic Decline in 2023
J A M A I C A
JAMAICA: BOJ Pumps Another US$30 Million Into Forex Market
T R I N I D A D A N D T O B A G O
TRINIDAD & TOBAGO: If Electricity Prices Go Up, Flour May Follow
- - - - -
=================
A R G E N T I N A
=================
ARGENTINA: Credit Agencies Disbursed Record Amount in 2022
----------------------------------------------------------
Buenos Aires Times reports that the Economy Ministry said
disbursements by international lending agencies to Argentina
reached a record US$5.023 billion last year.
According to the records released by the International Economic and
Financial Affairs Secretariat, international financing for
development projects reached its highest point since 1990, the
report notes. Last year's disbursements from multilateral lenders
increased 27.5% on 2021 and even surpassed the previous peak of
US$4.669 billion recorded in 2003, according to Buenos Aires
Times.
Payments from international agencies picked up from August last
year, with 77 per cent -- almost US$4 billion-- arriving in the
last five months of the year, according to official data, the
report relays.
The report also highlighted that in 2022, there was a positive net
flow (revenues exceeding expenditures) of US$1.913 billion, the
highest in the last 26 years, 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.
ARGENTINA: Soy Harvest Set for 14-Year Low Amid Punishing Drought
-----------------------------------------------------------------
Buenos Aires Times reports that the prolonged drought ravaging
Argentina as a result of the El Nino weather phenomenon will slash
the production of soy, the country's leading export product, to its
lowest volume in 14 years.
The stark warning, issued by the Rosario Stock Exchange, will send
alarm bells ringing among government officials. Agricultural
exports are a major contributor to Argentina's gross domestic
product and a key source of foreign currency, according to Buenos
Aires Times.
Its latest estimate of the next soy harvest, which is exported in
grain and oil form mainly to China and India, the Rosario-based
forecaster pegs back output a further 2.5 million tons, from 37 to
34.5 million tons. It also lowered its forecast for the maize
harvest by 7.5 million tons, from 50 to 42.5 million tons, the
report notes.
In mid-January, the body had already estimated losses superior to
US$10 billion for the local farming sector, calculating a 23
percent fall in production for the soy, wheat and maize harvests or
a total of 28.5 million tons, the report relays.
Last year, despite the drought, Argentina accumulated maize and soy
exports to the tune of US$31.831 billion, 2.5 percent more than in
2021 and a new record, in part because prices "continued their
upward trend," according to the Rosario Stock Exchange, the report
discloses.
Exports last year totalled US$88.446 billion, according to the
INDEC national statistics bureau, the report says.
But now soy "continues showing the impact of Argentina's worst
drought in the last 60 years," evaluated the latest report, Buenos
Aires Times discloses.
The losses cover an area of at least a million hectares, mostly in
the provinces of Buenos Aires (301,000 hectares), Córdoba
(222,000) and Santa Fe (160,000), the report says.
Argentina began 2023 with 55 percent of its extensive territory
suffering a lack of water in its soil, according to a report by the
SISSA (Sistema de Informacion sobre Sequias para el sur de
Sudamérica) regional drought monitoring agency, the report
relays.
There was some rainfall last month in the main agricultural zones
of Central Argentina to alleviate the situation while the national
government announced emergency economic measures for the most
affected farmers,the report notes.
Nevertheless, the stresses have returned in early February and
"without important rainfall in sight over the next fortnight and
undergoing a new heat wave, the sector is again discouraged,"
highlighted the Rosario Stock Exchange, 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
===========
BRAZIL: Bank Sees Risks From Fiscal Framework Review & Stimulus
---------------------------------------------------------------
globalinsolvency.com, citing Reuters, reports that Brazil's central
bank has expressed concern at increased inflation expectations,
saying that a fiscal framework revision and government stimulus
package may lead to upward pressure on consumer prices.
In the minutes of its Jan.31 - Feb.1 meeting, when the rate-setting
committee kept the benchmark rate at 13.75%, some committee members
noted that the fiscal package presented by the Finance Ministry
should mitigate the fiscal risks, according to
globalinsolvency.com.
Nonetheless, "it will be important to monitor the challenges for
its implementation," the minutes added, the report notes.
The central bank said that inflation expectations drifting further
from official targets over longer horizons was noted "with
concern," highlighting the existence of two fiscal risks that may
push inflation upwards, the report relays.
The first relates to the country's fiscal framework revision, which
"reduces the visibility on public accounts for the coming years,
introduces premia on asset prices, and impacts inflation
expectations," the report discloses.
In an environment of a narrowed output gap, the impact on inflation
of government fiscal stimuli tends to outweigh the desired impact
on economic activity, they added.
The messages come amid intense criticism from President Luiz Inacio
Lula da Silva, who has repeatedly portrayed the level of basic
interest rates as a villain for the economy, the report relays.
The central bank, which paused its aggressive monetary policy cycle
in September after 12 consecutive hikes, had already stated that it
was considering holding interest rates at a six-year high, longer
than markets expect, due to fiscal risks under Lula, the report
notes.
Finance Minister Fernando Haddad has adopted a more conciliatory
tone, but has expressed hope for a "more generous" communication
from the central bank regarding the government's fiscal measures,
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).
EMBRAER SA: S&P Upgrades ICR to 'BB+' on Solid Cash Flow
--------------------------------------------------------
On Feb. 9, 2023, S&P Global Ratings raised its long-term global
scale rating on Embraer to 'BB+' from 'BB'. S&P also raised its
issue-level rating on the company's senior unsecured notes to 'BB+'
from 'BB' and revised the recovery rating to '3' from '4' due to
lower debt levels.
The outlook is stable, indicating that S&P expects the company will
continue delivering solid cash flows in the coming years due to a
high backlog and gradual profitability improvements that will
enable debt to EBITDA below 2.0x and free operating cash flow
(FOCF) to debt between 10% and 15%.
The company's operations have been recovering in the past two years
after the drastic hit amid the pandemic in 2020. Aircraft
deliveries are gradually increasing, with a solid backlog in both
the executive and commercial businesses units that totals $17.8
billion as of September 2022. In addition, aftermarket revenues
have been representing more of total revenues amid increasing
deliveries. Moreover, Embraer has benefited from favorable working
capital dynamics in the past two years due to an increasing amount
of pre-delivery payments.
S&P said, "We forecast Embraer to post an EBITDA margin slightly
above 10% in 2022, stemming from more deliveries supporting revenue
growth, increased exposure to aftermarket revenue, and improvements
in the production process. In the next few years, we forecast a
gradual margin increase to close to 11% by 2024, benefiting from
favorable mix of deliveries with increasing share of E195-E2
aircraft that carry higher margins and continued efforts to better
manage inventory, despite persistent high inflation (across labor
markets, raw materials, and energy). Better profitability and
higher operating cash flows enabled Embraer to reduce gross debt by
$900 million in 2022, and we expect further debt reduction of about
$350 million in 2023. We expect that the company had debt to EBITDA
of about 2.5x in 2022 and this ratio will fall to around or below
2.0x in 2023, in line with Embraer's leverage target.
"We expect Embraer to deliver about 190 aircraft in 2023, which is
already in line with pre-pandemic levels. The company has been
increasing deliveries with 141 aircrafts in 2021 and about 160 in
2022, compared to 130 in 2020. We believe executive jets will
continue growing faster than commercial ones due to a change in
consumer behavior caused by the pandemic. Delivery mix in the
commercial aviation segment should come mostly from E195-E2
aircraft with sales to new clients and airlines adding more
routes."
Last year, Eve's business combination was concluded. Eve started
operating with total capital of $377 million and Embraer holds
control with a 90% stake. Eve continues working on certification
approvals from aviation authorities in Brazil and the U.S.. Eve's
pipeline continues to grow. As of September 2022, secured letters
of intent increased to 22 customers and 2,770 vehicles from 17 and
1,735 in December 2021 when the business combination was announced.
Eve recently secured a credit line with BNDES for $92.5 billion,
with a 12-year maturity to support its electric vertical take-off
and landing (eVTOL) aircraft development program. Eve's total
announced investment in this initial phase is about $125 million.
The subsidiary will use its cash position in the next few years to
develop and certify its eVTOL aircraft, which the company expects
to enter into service by 2026.
Environmental, Social, And Governance
ESG credit indicators: To E-2, S-3, G-2; From E-2, S-4,G-2
Like other commercial aerospace companies, Embraer faced
significant profitability and cash flow pressures due to the
reduced aircraft demand stemming from health and safety risks amid
the pandemic. However, Embraer's position in the narrow-body
(70-130 seat) aircraft segment allowed it to rebound more quickly
than other players. S&P said, "We forecast the company will reach
deliveries in line with pre-pandemic levels in 2023. In addition,
Embraer has been increasing revenue source diversification: its
executive jet segment represents 30% of revenues, commercial
aviation another 30%, services and support 25%, and defense
business 15%. Still, the effect of the pandemic is a moderately
negative consideration in our rating analysis (compared with a
negative influence previously). As a result, we have revised our
social credit indicator to S-3 from S-4."
Environmental, social, and governance (ESG) credit factors for this
change in credit rating/outlook and/or CreditWatch status:
-- Health and safety
GOL LINHAS: S&P Downgrades ICR to 'CC', Outlook Negative
--------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Brazilian
airline Gol Linhas Aereas Inteligentes S.A. to 'CC' from 'CCC+' on
global scale. At the same time, S&P lowered the national scale
issuer credit rating to 'brCC' from 'brBB'. S&P also lowered the
issue-level rating on the senior unsecured notes to 'CC' from
'CCC+' and kept the '4' recovery rating unchanged, indicating its
expectation of average (30%-50%; rounded estimate: 30%) recovery in
the event of a payment default.
The negative outlook reflects that S&P would lower the issuer
credit rating to 'SD' and issue-level ratings to 'D' if the
transaction closes under the currently analyzed terms.
On February 7, Gol announced that Abra Group (a holding company
that will hold controlling equity in Gol and Avianca following
corporate reorganization) will provide funding for refinancing
Gol's debt. Gol will privately place debt with Abra for at least $1
billion through senior secured notes (Gol SSNs) which could be
replaced by exchangeable senior secured notes (Gol ESSNs) due 2028,
and to be secured by Smiles' intellectual property and brand, along
with Gol's intellectual property, brand, and spare parts. Following
the issuance of Gol SSNs and ESSNs, Abra commits to invest about
$400 million in cash through 2028 and exchange at least $680
million of Gol's bonds, including 2024 senior exchangeable notes
(SEN), 2025 senior unsecured notes (SUN) and 2026 senior secured
notes (SSN), with Abra bonds.
To support the refinancing, Abra has entered into a "support
agreement" with an ad-hoc group of Gol's secured and unsecured
bondholders, who will provide a portion of the financing. The
agreement contemplates that some of Abra shareholders have agreed
to invest approximately $175 million in cash, and the ad-hoc group
has agreed to invest $243 million in cash in Abra to support the
transaction. Additionally, the ad-hoc group has committed to
deliver at least $680 million in face value of their Gol bonds to
Abra at highly discounted prices. In exchange, the participating
shareholders, the ad-hoc group, and other bondholders that could
enter the transaction will receive convertible senior secured notes
(Abra CSSNs) and senior secured notes (Abra SSNs) issued by Abra
due 2028 for at least $987 million.
For the transaction to be closed, Abra requires that other
bondholders participate in the transaction providing at least
additional cash for $82 million and deliver bonds for at least
another $186 million.
Depending on the type of bondholders (the ad-hoc group or others),
the type of bonds (SEN, SUN, SSN, or perpetual), investors could
receive from as low as 35 cents on the dollar to up to 73 cents on
the dollar (plus additional premium if they're early participants
and if investors participate with new funding). S&P believes
investors will receive certain compensation:
-- Bonds from a larger group, given that Abra will consolidate not
only Gol, but also Avianca, which provides access to additional
cash flow and assets.
-- A potential upside on Abra's convertible notes.
-- Investors, who hold unsecured debt, will be receiving secured
bonds including a first-lien on the Gol SSNs and ESSNs due 2028
held by Abra, and a first priority interest on the subsidiaries
that hold the equity interests of Gol and Avianca.
However, considering all the transaction features, S&P believes
that creditors would be receiving less than the original promise.
Global financing conditions have eroded in the past year, and
appetite for high-yield debt in emerging markets is particularly
low. S&P said, "Therefore, we believe there's considerable risk
that Gol wouldn't be able to refinance the $425 million
amortization in July 2024. Additionally, even in the shorter term,
despite the absence of sizeable short-term maturities in 2023, we
forecast a cash flow deficit of about R$400 million that Gol would
need to finance. At the end of the third quarter 2022, Gol had very
low accessible cash level of R$495 million, and we forecast that
cash sources plus cash funds from operations wouldn't be enough to
cover cash needs (short term maturities, lease payments, capital
expenditures, and working capital needs) in the next 12 months."
ESG Indicators: E-3, S-5, G-2.
S.A. USINA CORURIPE: S&P Lowers ICR to 'B-', Outlook Negative
-------------------------------------------------------------
S&P Global Ratings lowered its global scale issuer credit and
issue-level ratings on Brazilian sugarcane processor, S.A. Usina
Coruripe Acucar e Alcool (Coruripe) to 'B-' from 'B'. The recovery
rating on its bond remains at '3'.
The negative outlook reflects a potentially additional downgrade if
Coruripe is unable to improve liquidity in the next 12 months,
given its large short-term debt concentration, which could be
exacerbated by mid-2023, when seasonal working capital requirements
peak.
Coruripe's productivity has been recovering after the drought
reduced output at the company's center-south operations in fiscal
2022 (ended March 31, 2022) to only 11.9 million tons of cane, a
decline of about 17% from previous year. For the current harvest,
we expect the company to crush 14.3 million tons, and close to 15
million tons in fiscal 2024. However, S&P expects excess rain,
especially in Coruripe's northeastern operations, to decrease TRS
levels. This will cut into sugar and ethanol yield per ton of cane
crushed and postpone crushing activity until April in Coruripe's
northeastern operations. The company has raised the share of sugar
of the production mix to over 60% to capitalize on higher prices,
which should increase from an average hedged price of about R$1,500
per ton in fiscal 2022 to R$1,800 in fiscal 2023.
Ethanol prices, however, have taken a hit from changes in Brazil's
fuel taxation since mid-2022. The latter consisted of a cap on
state-level ICMS tax and the suspension of federal PIS/Cofins and
CIDE taxes, which reduced gasoline prices and, in turn, ethanol
prices. The new administration extended the suspension of federal
taxes until the end of February, which underpins our expectation of
a reduction in average ethanol prices of more than 10% for the
current fiscal year, which Coruripe will partly compensate through
some ethanol exports to Europe and Asia. Overall, S&P expects
adjusted EBITDA to rise to about R$1.5 billion this fiscal year
from R$1.3 billion in the previous one. For fiscal 2024, higher
expected crushing volumes, as well as mostly hedged sugar prices at
more than R$2,100 per ton should lift EBITDA to about R$1.8
billion, despite lower ethanol prices due to its forecast of
decreasing oil prices and assuming Petrobras will maintain its
current pricing policy.
Coruripe is investing in the expansion of its Limeira d'Oeste mill,
which should increase sugar production through 1 million extra tons
of processed cane starting in fiscal 2025. This investment of more
than R$200 million in fiscal 2023, coupled with higher maintenance
capex to raise agricultural productivity after the drought (total
capex spiking to R$1.1 billion from about R$700 million in the
previous harvest), and interest burden more than doubling from the
previous fiscal year will result in a free operating cash flow
(FOCF) shortfall of close to R$100 million for fiscal 2023, while
leasing payments will be close to R$200 million. Despite higher
EBITDA in fiscal 2024, high interest burden of more than R$500
million and consolidated capex of R$1.1 billion (including about
R$150 million for Limeira d'Oeste's expansion) should result in
FOCF of about R$200 million, which will mostly be used to meet
leasing payments, not to reduce debt.
Coruripe's liquidity had been tight despite the issuance of a $300
million bond in February 2022, given that the company used the
proceeds to pay down its syndicated loan. Aside from low cash
position and short-term debt of more than R$1 billion, the company
faces seasonal working capital requirements and the need to raise
new funds amid the cash burn expected in fiscal 2023. Greater
refinancing risks, given the currently tight financing conditions,
will crimp the company's ability to improve its liquidity in the
next 12 months through longer-term issuances, despite some newly
secured debt (R$220 million CRA with firm commitment and other
minor loans from banks and tradings). Despite improving operating
performance in fiscal 2023, the company's higher cash cost than
that of more efficient peers, as well as its expensive debt and
interest exposure to foreign-exchange (FX) variation will result in
slim cash generation, used to repay debt. Therefore, S&P is
revising its assessment of Coruripe's liquidity to weak from less
than adequate.
ESG credit indicators: E-3, S-2, G-3
S&P said, "Environmental factors are a moderately negative
consideration in our credit rating analysis of Coruripe. Exposure
to climatic events, mainly droughts, can reduce agricultural
productivity, as seen in fiscal 2022, with crop failure at over 15%
for the company. Over three-quarters of Coruripe's plantations near
its mills in northeastern Brazil are irrigated, reducing the
impacts of droughts, although the company uses water intensively.
However, the majority of its harvesting is still manual in the
state of Alagoas, which demands the burning of the fields.
Regulation requiring the mechanization of the process in Alagoas
could result in sizeable investments and lower agricultural yields.
The sugar and ethanol sector, however, is key to the transition to
a low-carbon economy by producing renewable energy--ethanol and
electricity through bagasse-fired boilers--replacing the use of
fossil fuels and significantly reducing GHG emissions. The sector
benefits from the government's program, Renovabio, which measures
the sustainability of companies' operations, remunerating the mills
through carbon certificates according to the amount of emissions
they produce. Governance factors are also a moderately negative
consideration in our rating analysis of Coruripe, given that it has
struggled for some years to extend debt maturities and reduce FX
rate exposure, which has taken a toll on liquidity and credit
metrics."
===========================
C A Y M A N I S L A N D S
===========================
ROCKLEY PHOTONICS: Taps Alvarez & Marshal as Restructuring Officers
-------------------------------------------------------------------
Rockley Photonics Holdings Limited, which is in restructuring,
appointed Alexander Lawson and Christopher Barnett Kenney at
Alvarez & Marshal Cayman Island Limited as restructuring officers.
The restructuring officers can be reached at:
Alexander Lawson
Christopher Barnett Kennedy
Alvarez & Marshal Cayman Islands Limited
2nd Floor, Flagship Building, 142 Seafarers Way
PO Box 2507, George Town, Grand Cayman, KY1-9008
TOURADJI PRIVATE: Appoints FPP Limited Joint Official Liquidator
----------------------------------------------------------------
Touradji Private Equity Offshore Fund Limited, which is in
restructuring, tapped Nicola Cowan and Michael Pearson of FFP
Limited as joint official liquidator.
The joint liquidators can be reached at:
Nicola Cowan
Michael Pearson
FFP Limited
2nd Floor Harbour Center, 159 Mary Street
George Town Grand Cayman
KY1-9006, Cayman Islands
=========
C H I L E
=========
CHILE: Market Projects 1.5% Economic Decline in 2023
----------------------------------------------------
Juan Martinez at Rio Times Online reports that according to the
February Economic Expectations Survey (EEE) released, Chilean
market analysts projected a 1.5 percent decline in the economy by
the end of 2023 and an annual decline of 1.7 percent in the first
quarter of the year, according to the February Economic
Expectations Survey (EEE) released by the Central Bank of Chile.
Economists surveyed in the February EES expect the country's
economy to grow 2.1 percent in 2024, according to Rio Times
Online.
The specialists also pointed out that inflation in Chile will vary
by 0.4 percent this month and 0.8 percent in March, the report
notes.
They also estimated an increase in consumer prices of 5.3 percent
at the end of the year and 3.3 percent in 2024, with which they
anticipated an annual drop in inflation in line with the Central
Bank of Chile's target range of 3 percent, the report relays.
The monetary policy rate, a tool used to curb inflation by cutting
monetary stimulus, is expected to remain at 11.25 percent and
decline to 10 percent by mid-2023, the report discloses.
The February FES projected the policy rate to reach 7.5 percent
next December, the report says.
At its first meeting of 2023, the Central Bank of Chile again ruled
out raising the monetary policy interest rate, the report
discloses.
It rose from 10.75 to 11.25 percent in October to contain
inflation, reaching its highest level since 1998, the report
relays.
The regulator unanimously argued that global inflationary pressures
remain elevated, and major central banks have continued to raise
their benchmark interest rates, the report discloses.
"The growth outlook for 2023 remains weak, even though it shows a
limited upward adjustment," the central bank said on 26 January,
the report notes.
Chile ended 2022 with a cumulative inflation rate of 12.8 percent,
the highest in decades, the report adds.
=============
J A M A I C A
=============
JAMAICA: BOJ Pumps Another US$30 Million Into Forex Market
----------------------------------------------------------
RJR News reports that the Bank of Jamaica intervened on Feb. 8,
2023 in the foreign currency market for a second consecutive day.
The central bank sold another US$30 million to authorized dealers
and cambios in the flash sale operation, according to RJR News.
This brought the total amount the bank injected into the market for
the two days to US$60 million, the report notes.
This is the BOJ's seventh intervention since the start of the year,
the report relays.
Seven banks and six cambios were successful in the auction, the
report discloses.
GraceKennedy Currency Trading, Barita Investments, JN Bank, and
First Caribbean International Bank received the largest shares, at
a settlement price of $154.55, the report relays.
The flash sale pushed the total value of interventions in the
foreign currency market so far this year, to US$200 million, the
report adds.
As reported in the Troubled Company Reporter-Latin America in March
2022, Fitch Ratings has affirmed Jamaica's Long-Term Foreign
Currency Issuer Default Rating (IDR) at 'B+'. The Rating Outlook is
Stable.
=====================================
T R I N I D A D A N D T O B A G O
=====================================
TRINIDAD & TOBAGO: If Electricity Prices Go Up, Flour May Follow
----------------------------------------------------------------
Curtis Williams at Trinidad Express reports that consumers could
find themselves paying higher prices for flour, cooking oil, and
even animal feed, due to the proposed increase in electricity
prices.
Chief executive officer of the National Flour Mills (NFM), Ian
Mitchell, told the Express that the majority State-owned company
ran some numbers and the proposed rate hike will have a significant
impact on its costs.
"It is going to be quite significant. The question is going to be:
can we absorb it? Already we have started looking at what the
approach should be to allow us to mitigate and absorb those costs
without passing them on," said Mitchell, according to Trinidad
Express.
Asked if all things being equal, can the population expect the
price of flour to increase, Mitchell explained, "I have to be
honest with you and say it may have some impact on cost. I have to
be honest with you and say that," the report notes.
Mitchell said the NFM had run some numbers and determined that the
cost will be high and the company is now developing plans on how it
can manage costs by becoming more energy efficient and reducing its
demand on the grid, the report relays.
In the short term, however, consumers have been seeing lower prices
for flour and cooking oil from NFM, the report discloses.
"While we have not advertised that prices have been reduced, what
we have done is we have offered deals and promotions that have
effectively resulted in a reduction in prices to the consumer. So
the consumer would have seen that," he told the Express.
Mitchell posited that the size of the reduction would depend upon
where you shop, whether it is in a small shop or a discount store,
the report relays.
He added that the price of cooking oil came down some months ago as
NFM passed on the benefits of lower commodity prices, the report
discloses.
"There is a lot of emotional connection with flour and we are
trying just to do what is right when we can pass on whatever
savings to the consumer without making a big fanfare about it,"
Mitchell said, the report notes.
He added, "Corn and soybean meal, on the other hand, I think right
now we have record prices for soybean meal which is used as a
protein source in animal feed. We reduced prices of our all-purpose
feed last year and continued to reduce prices a little bit more in
January, in spite of those changes in prices we see for soybean,"
the report relays.
NFM's CEO said, fortunately, the company has grain from a previous
period and therefore it can hold prices for now, the report says.
"We are hoping that by the time we go back out there to bring our
next shipment, we should see prices of soy and corn come back down
so it doesn't affect us," Mitchell ended.
*********
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 * * *