/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/230324.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 Friday, March 24, 2023, Vol. 24, No. 61 Headlines A R G E N T I N A BLOCKFI INC: Wants to Pause Securities Lawsuits vs. Top Execs B R A Z I L BRAZIL: Fiscal Framework Proposal Is 'at Presidential Palace' BRAZIL: Jobless Rate Edges Up in Quarter Through January COMPANHIA SIDERURGICA: S&P Alters Ratings Outlook to Stable C A Y M A N I S L A N D S FALCON GROUP: S&P Withdraws 'BB-/B' Issuer Credit Ratings C H I L E CHILE: Signs Credit Line with IDB of Up to $1BB to Boost SMEs C O S T A R I C A INVESTMENT ENERGY: Fitch Hikes LongTerm IDRs to BB, Outlook Stable M E X I C O GRUPO ELEKTRA: Fitch Affirms LongTerm IDRs at 'BB', Outlook Stable P U E R T O R I C O CARIBBEAN BANANA: April 14 Plan & Disclosure Statement Hearing Set T R I N I D A D A N D T O B A G O TRINIDAD & TOBAGO: Economic Recovery is Ongoing, IMF Says [*] TRINIDAD & TOBAGO: IMF Projects 3% Growth for Country - - - - - ================= A R G E N T I N A ================= BLOCKFI INC: Wants to Pause Securities Lawsuits vs. Top Execs ------------------------------------------------------------- James Nani of Bloomberg Law reports that BlockFi is seeking to extend its bankruptcy protection against litigation to its directors and officers who are facing lawsuits over the crypto lender's alleged sale of unregistered securities. BlockFi sued Trey Greene and Antonie Elas -- who held accounts at BlockFi -- to pause their proposed class actions in New Jersey and Massachusetts against several company officers, directors, and former employees. BlockFi said it has agreed to use its insurance policies to cover the defense costs of some of the executives named in the suits. Allowing the suits to continue could bear on BlockFi's estate, it said. About BlockFi Inc. BlockFi is building a bridge between digital assets and traditional financial and wealth management products to advance the overall digital asset ecosystem for individual and institutional investors. BlockFi was founded in 2017 by Zac Prince and Flori Marquez and in its early days had backing from influential Wall Street investors like Mike Novogratz and, later on, Valar Ventures, a Peter Thiel-backed venture fund as well as Winklevoss Capital, among others. BlockFi made waves in 2019 when it began providing interest-bearing accounts with returns paid in Bitcoin and Ether, with its program attracting millions of dollars in deposits right away. BlockFi grew during the pandemic years and had offices in New York, New Jersey, Singapore, Poland and Argentina. BlockFi worked with FTX US after it took an $80 million hit from the bad debt of crypto hedge fund Three Arrows Capital, which imploded after the TerraUSD stablecoin wipeout in May 2022. BlockFi had significant exposure to the companies founded by former FTX Chief Executive Officer Sam Bankman-Fried. BlockFi received a $400 million credit line from FTX US in an agreement that also gave FTX the option to acquire BlockFi through a bailout orchestrated by Bankman-Fried over the summer. BlockFi also had collateralized loans to Alameda Research, the trading firm co-founded by Bankman-Fried. BlockFi is the latest crypto firm to seek bankruptcy amid a prolonged slump in digital asset prices. Lenders Celsius Network LLC and Voyager Digital Holdings Inc. also filed for court protection this year. Kirkland & Ellis is also advising Celsius and Voyager in their separate Chapter 11 cases. BlockFi Inc. and eight affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Lead Case No. 22-19361) on Nov. 28, 2022. In the petitions signed by their chief executive officer, Zachary Prince, the Debtors reported $1 billion to $10 billion in both assets and liabilities. Judge Michael B. Kaplan oversees the cases. The Debtors taped Kirkland & Ellis and Haynes and Boone, LLP as general bankruptcy counsels; Walkers (Bermuda) Limited as special Bermuda counsel; Cole Schotz, P.C., as local counsel; Berkeley Research Group, LLC as financial advisor; Moelis & Company as investment banker; and Street Advisory Group, LLC as strategic and communications advisor. Kroll Restructuring Administration, LLC is the notice and claims agent. =========== B R A Z I L =========== BRAZIL: Fiscal Framework Proposal Is 'at Presidential Palace' ------------------------------------------------------------- globalinsolvency.com, citing Reuters, reports that Brazil's Finance Minister Fernando Haddad said his proposal for a new fiscal framework was now "at the presidential palace," but did not provide further details. Haddad's remarks to reporters in Brasilia came after CNN Brasil reported he had delivered the framework to President Luiz Inacio Lula da Silva, a key step for the proposal to go forward as Haddad previously said Lula would have the final word on it, according to globalinsolvency.com. CNN said Haddad's team would now make a formal, detailed presentation of the proposal to Lula, which is expected to happen, before the leftist leader is due to visit China. Haddad presented the proposal to Vice President Geraldo Alckmin and said Alckmin had a "very good" reaction to the plan, the report notes. About Brazil Brazil is the fifth largest country in the world and third largest in the Americas. Luiz Inacio Lula da Silva won the 2022 Brazilian general election. He was sworn in on January 1, 2023, as the 39th president of Brazil, succeeding Jair Bolsonaro. As recently reported in the Troubled Company Reporter-Latin America, Fitch Ratings, in December 2022, affirmed Brazil's Long-Term Foreign Currency Issuer Default Rating (IDR) at 'BB-' with a Stable Outlook. The ratings are constrained by high government indebtedness, a rigid fiscal structure, weak economic growth potential, and a record of governability challenges that have hampered efforts to address these fiscal and economic issues and clouded policy predictability. The Stable Outlook reflects Fitch's expectation that growth will slow in the coming year and that recent fiscal improvement will erode under a new government, but within a margin consistent with the current rating, and from a better starting point than previously expected. Uncertainty is elevated regarding the plans of the incoming government and the extent to which these could ease or aggravate fiscal and economic challenges. However, Fitch does not expect policies that jeopardize broad economic stability. Standard & Poor's affirmed its 'BB-/B' long- and short-term foreign and local currency sovereign credit ratings on Brazil, and the outlook remains stable (June 2022). The stable outlook reflects S&P's base-case assumption that Brazil will maintain its fiscal anchors over the next two years despite an increasing interest burden, preventing significant fiscal slippage and limiting the rise in its already high debt burden. Moody's credit rating for Brazil was last set at Ba2 in 2018 with stable outlook. Moody's affirmed the Ba2 issuer ratings and senior unsecured bond ratings in April 2022. DBRS's credit rating for Brazil is BB (low) with stable outlook (March 2018). BRAZIL: Jobless Rate Edges Up in Quarter Through January -------------------------------------------------------- globalinsolvency.com, citing Reuters, reports that Brazil's jobless rate rose to 8.4% in the three months through January, statistics agency IBGE said, slightly above market expectations. The median forecast in a Reuters poll projected an unemployment rate of 8.3%, according to globalinsolvency.com. In the previous three months, the rate was also at 8.3%, the report notes. "This stability still would be a repercussion of the reduction in the demand for work in the months of November and December 2022 over the beginning of 2023," said research manager, Adriana Beringuy, the report relays. The figure was the lowest for the three-month period since 2015, IBGE said, adding that the number of employed people was 98.6 million, or one million below the previous three months, 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). COMPANHIA SIDERURGICA: S&P Alters Ratings Outlook to Stable ----------------------------------------------------------- S&P Global Ratings, on March 21, 2023, revised its outlook on the global scale rating on Brazil-based integrated steel and cement producer Companhia Siderurgica Nacional (CSN) to stable from positive. S&P also affirmed its 'BB' global and 'brAAA' national scale ratings on the company. The outlook on the national scale rating remains stable. S&P said, "At the same time, we affirmed our 'brAAA' national scale ratings on CSN Mineracao S.A. (CMIN) with a stable outlook. We also affirmed our 'BB' issue-level rating on CSN Islands XII Corp.'s senior unsecured notes and the 'brAAA' issue rating on CMIN's senior unsecured debentures. "The stable outlook reflects that we think CSN's adjusted debt to EBITDA will remain above 2.5x and funds from operations (FFO) to debt will be near 20% -- even considering average iron ore prices at $120 per ton in 2023 -- because high interest, capital expenditures, and dividends will weigh on the company's adjusted debt levels." As international iron ore prices and domestic steel prices subsided in 2022, CSN's EBITDA fell to R$11.3 billion from R$20.4 billion in 2021. Flat mining volumes of 33.3 million tons and about 5% lower steel volumes (at 4.4 million tons) due to waning domestic demand, lower exports, and lower volumes at its European subsidiaries SWT and Lusosider all hurt EBITDA. On the other hand, CSN acquired Lafarge Holcim's Brazilian operations in September 2022 for over R$4 billion, making it the second-largest cement player in Brazil. The company also closed several acquisitions in the energy segment, most notably CEEE (for a total disbursement of nearly R$3 billion), becoming self-sufficient in energy and generating excess to sell to the grid. We expect EBITDA from energy and cement to more than double in 2023 to R$1.6 billion-1.8 billion, mitigating the forecast lower EBITDA from the steel segment. This lower EBITDA from steel is due to lower prices and only slightly higher volumes in 2023, mostly from exports and foreign operations--we expect domestic volumes to remain flat. In the mining segment, volumes should climb to 40 million tons due to less expected rain in the first half of the year. These higher volumes and ongoing investments will improve EBITDA only slightly if average iron ore prices drop to $100 per ton for the year, or grow EBITDA by R$2.0 billion-2.5 billion if prices stay at current spot levels of $120 per ton. Therefore, we forecast consolidated adjusted EBITDA of R$11.0 billion-R$11.5 billion for 2023, but we expect EBITDA could be R$13.5 billion-R$14.0 billion if average iron ore prices are closer to spot prices. CSN's adjusted debt was R$37.0 billion in 2022, from R$23.8 billion in 2021. This was driven by: -- Free operating cash flow (FOCF) of negative R$1.9 billion, stemming from lower EBITDA, higher interest burden, and higher capital expenditures (capex), which reached R$3.2 billion in 2022 from R$2.8 billion in 2021); -- Continued high dividends and share repurchases (totaling R$4.2 billion in 2022 and R$4.8 billion in 2021); and -- Almost R$7.5 billion in acquisitions. As a result, adjusted debt to EBITDA reached 3.3x in 2022 from 1.2x in the previous year--the highest level since September 2020. In addition, FFO to debt fell to 17.1% (from 63.4% in 2021) due to the higher interest burden. S&P said, "In this context, the company's leverage is currently significantly above our trigger for a rating upside. Our base-case scenario for 2023 considers flat adjusted debt to EBITDA at 3.0x-3.5x and FFO to debt between 15% and 20%, but we note that adjusted debt to EBITDA could be close to 2.5x if we consider average iron ore prices at spot levels. FFO to debt, on the other hand, would still remain weak due to the higher interest burden in 2023, reaching just above 20%. However, these levels are still above our upside triggers, so we revised the global scale outlook to stable from positive, given that CSN will take longer to reach these triggers." CSN has already committed to an extraordinary dividend distribution of R$2.3 billion in April 2023, in scope of the agreement reached at the shareholder level to split ownership between the Vicunha Aços and CFL Participações family holding companies. CSN has also been aiming to expand its mining output to 100 million tons in the next decade and has plans to expand its cement capacity in Brazil and its steel operations overseas. Therefore, S&P thinks significantly higher capex that results in negative FOCF, along with dividend payouts that surpass the policy minimum, could further hurt metrics and affect the ratings, especially amid weaker industry conditions. On the other hand, the company could seek divestment options it has already announced, such as the IPO of CSN Cimentos and the sale of Usiminas' shares, to lower its debt levels, but the amounts and timing are uncertain and we don't factor them into our forecasts. ESG credit indicators: E-3, S-3, G-4 S&P said, "Governance factors are a negative consideration in our credit rating analysis of CSN, while environmental and social factors are a moderately negative consideration. In our view, decision-making is overly concentrated in a single person--the main shareholder--while decisions historically have increased volatility in CSN's credit metrics." These decisions have included acquisitions, expansion projects, shareholder structure, and shareholders' remuneration. CSN is exposed to the low-probability, high-impact risks associated with potential for upstream tailings dams to collapse, but following new regulations, CSN has deactivated its tailings dams and is already drystacking 100% of its waste material. =========================== C A Y M A N I S L A N D S =========================== FALCON GROUP: S&P Withdraws 'BB-/B' Issuer Credit Ratings --------------------------------------------------------- S&P Global Ratings has withdrawn its 'BB-/B' long- and short-term issuer credit ratings on Falcon Group Holdings at the company's request. The outlook was stable at the time of withdrawal. ========= C H I L E ========= CHILE: Signs Credit Line with IDB of Up to $1BB to Boost SMEs ------------------------------------------------------------- globalinsolvency.com, citing Reuters, reports that Chile signed a 15-year credit line for $1 billion with the Inter-American Development Bank (IDB) to promote the development of small and medium-sized companies, the Ministry of Finance reported. The Washington, D.C.-based agency had approved the plan in early December to "increase productivity and promote sustainable development," according to globalinsolvency.com. Chilean Finance Minister Mario Marcel signed the agreement for the establishment of a conditional credit line for investment projects (CCLIP) during an annual IDB meeting in Panama, the report notes. "This operation will basically provide loans to (state development office) Corfo as a second-tier bank to channel to SMEs through non-banking institutions," the official was quoted as saying in a statement. The initiative seeks to promote sustainable development in the finance and climate action sectors, he said, the report adds. =================== C O S T A R I C A =================== INVESTMENT ENERGY: Fitch Hikes LongTerm IDRs to BB, Outlook Stable ------------------------------------------------------------------ Fitch Ratings has upgraded Investment Energy Resources Limited's (IERL) Foreign and Local Currency Long-Term Issuer Default Ratings (IDRs) to 'BB' from 'BB-'. Fitch also upgraded the senior secured green bonds to 'BB' from 'BB-'. The Rating Outlook is Stable. The upgrade reflects an improvement in the sovereign ratings underpinning the company's off-taker base - Guatemala was upgraded to 'BB'/Outlook Stable from 'BB-'/Outlook Positive in February 2023 and Costa Rica was upgraded to 'BB-'/Outlook Stable from 'B'/Outlook Stable in March 2023. These upgrades supported subsequent upgrades of two of IERL's largest off-takers, Energuate (BB/Stable) and Instituto Costarricense de Electricidad (ICE; BB-/Stable), both of which are closely linked to the sovereign. The ratings further reflect IERL's diversified portfolio of generation assets that span across Central America. Guatemala's cash flows moderately offset the company's otherwise high off-taker risk tied to governments in lower-rated operating environments, including El Salvador (CCC), Nicaragua (B-/Stable), and Honduras. KEY RATING DRIVERS Upgrade Due to Improved Off-Taker Profile: IERL's upgrades reflect improved off-taker risk as a result of recent upgrades of two of the company's largest customers, Energuate and ICE. In combination with off-takers in the Dominican Republic (BB-/Stable), nearly 70% of IERL's average annual EBITDA is now supported by companies and operating environments with 'BB-' or above credit quality, compared to 52% prior to the upgrades. Energuate and ICE were each upgraded due to strong linkages with their respective sovereign ratings, both of which were previously upgraded in February and March 2023, respectively. IERL's improved underlying credit strength nonetheless remains exposed to comparatively weaker off-taker risk associated with large clients domiciled in countries with sovereign ratings below 'B+': Empresa Nacional de Energia Electrica (ENEE; not rated) in Honduras (30% of revenues, not rated), Nicaragua (7%, B-/Stable) and El Salvador (.5%, CCC/Stable). As a contingent measure, IERL maintains political risk insurance and enhancement guarantees through the Multilateral Investment Guarantee Agency on its generation assets in Honduras and Nicaragua. Fitch expects EBITDA from the Guatemala off-takers alone is sufficient enough to cover hard currency interest payments through the rating cycle. The applicable country ceiling for IERL's ratings is that of Guatemala (BB+). Diversified Business Portfolio: IERL's diversified portfolio of renewable generation assets across Central America helps to offset the idiosyncratic risk tied to government-supported off-takers in lower rated environments, as well as stabilize cash flows across technologies, mitigating the risks of low hydrology or unfavorable wind conditions. The company has a portfolio of 818MW in generation assets: 39% of which are hydroelectric plants, 22% solar (including 50% stake in the solar farms Bosforo -- 100MW -- and Cuscatlan Solar -- 10MW, both JVs with AES in El Salvador), and 40% in wind assets. At YE 2022, the hydroelectric assets in Guatemala produced 23% more energy than the prior year, helping to offset a nearly 6.9% reduction in solar and 12.5% in wind production yoy. On balance, total generation still improved 4.5% from 2021 to 2022. Predictable Cash Flows: IERL's predictable cash flows are supported by long term U.S. dollar-denominated contracts and a low fixed marginal cost of production due to the concentration in renewable assets. As of estimated YE 2022, the company's generation capacity was 93% contracted under power purchase agreements (PPAs) with a weighted average remaining life of approximately 13 years. Off-takers for the take-or-pay contracts are obligated to purchase 100% of generation. According to preliminary data, IERL's revenues were USD350 million in 2022, a 9% increase compared to 2021 due to higher than expected volume of sales into the spot market given the excess in hydroelectric generation at the Guatemalan plants, and higher spot prices on account of overall commodity price increases. Fitch-calculated EBITDA increased by around 11% to USD205 million compared to 2021. Improving Leverage Profile: Stronger EBITDA generation combined with ongoing debt amortization resulted in fiscal 2022 YE leverage declining to an estimated 4.6x from 5.3x the prior year. Fitch expects continued deleveraging from ongoing amortization and lower interest costs, but for fiscal 2023 revenues to revert to historical norms following strong performance in 2022. Additionally, IERL is in receipt of a USD72.8 million overdue arrears payment from IERL's Honduran off-taker, which the company intends to deploy to pre-pay USD60 million in outstanding debt by 2H23 (USD15 million already paid as of January 2023). Combined with an already-scheduled USD30 million amortization, 2023 debt will decline by USD90 million, with leverage approximating 4.3x at year-end. Fitch's base case reflects that energy production will be close to 2.6GWh in 2023, assuming a blend of P50 and P90 scenarios for the solar and wind projects, and capacity factors that reflect historical average hydrology conditions in the case of Renace and Santa Teresa. Revenues under these assumptions should approximate USD334 million and EBITDA of USD196 million. Average FFO interest coverage may reach a solid 4.0x between 2022 and 2024. Strong Shareholder Group: IERL benefits from the strength of Corporacion Multi Inversiones (CMI) group of companies. CMI is a family-owned multinational conglomerate and one of the largest in Central America, with operations in 14 countries including the Caribbean and the U.S. Its operations span agribusiness, restaurants (including the global chain Pollo Campero), real estate, electricity generation and finance. CMI has shown commitment to developing its energy business unit and has made significant investments in this industry, while providing back-office support and access to credit to CMI Energia. DERIVATION SUMMARY IERL's 'BB' reflects the company's diversified and complementary asset portfolio supported by exceptionally long-term U.S. dollar-denominated contracts, which mitigates its exposure to weak off-takers in challenging operating environments. Compared to AES Panama Generation Holdings, S.R.L. (AESPGH, BBB-/Stable), IERL has a lower scale of operations but a better geographic diversification, which AESPGH compensates with a better off-taker risk profile limited to Panama, and both companies have similar leverage expectations. Compared to Orazul Energy Peru S.A. (BB/Stable), a single-asset hydroelectric facility in Peru, IERL has a declining leverage and a more variable combined operating environment composition. Compared to Nautilus Inkia Holdings SCS (BB/Stable), a multinational holding company with renewable and non-renewable generation assets concentrated primarily in Peru, IERL demonstrates a declining leverage profile and only modest capex investments, a more flexible shareholder strategy but a weaker blended operating environment. KEY ASSUMPTIONS - Average capacity factors for wind assets of 44% and 24% for solar, between 2023-2025; - Capacity factors that reflect historical average hydrology conditions, in the case of Renace of 44% and 41% for Santa Teresa, between 2023-2025; - 90% contracted generation through the cycle; - Average monomic price of around USD112/MWh over 2023-2025; - The loan has annual amortizations USD30 million in 2022, USD90 million in 2023 (one-time) and USD22.2 million annually through 2027, with a balloon repayment in 2028; - Average annual year-end cash balance of around USD70 million, after dividends; - Total maintenance capex at USD38.6 million between 2023-2025. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: - A material improvement in the company's operating environment; - Sustained gross leverage below 4.0x through the rating cycle. Factors that could, individually or collectively, lead to negative rating action/downgrade: - A material deterioration in the company's operating environment and/or applicable Country Ceiling; - Total debt/EBITDA of 5.0x on a sustained basis; - Significant lag in collections that weakens the company's liquidity position; - Sustained disruptions in generation capacity due to either technical or climatological issues. LIQUIDITY AND DEBT STRUCTURE Strong Liquidity: As of Dec. 31, 2022 (preliminary results), IERL reported readily available, consolidated cash and cash equivalents totalling USD184.9 million. This extraordinary cash balance reflects the one-time receipt of USD72.8 million in arrears paid by Honduran electricity company and customer of IERL ENEE. This cash balance amply covers IERL's USD30 million long-term debt amortization payment for that year. IERL intends to use the majority of this cash inflow to voluntarily pre-pay existing debt. Fitch expects year-end cash balances to resume historical averages going forward of around USD70 million per year, and that the company will be FCF positive through the rating cycle, sustaining a stable and strong overall liquidity position. ISSUER PROFILE Investment Energy Resources Limited (IERL) is the entity through which the Corporacion Multi Inversiones corporate group (the CMI Group) owns the largest and most diversified private renewable energy portfolio in Central America and the Caribbean. ESG CONSIDERATIONS IERL has an ESG Relevance Score of '4[+]' for Greenhouse Gas Emissions & Air Quality, due to the company's advantage as a renewable generation company in Central America, which has a positive 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. Entity/Debt Rating Prior ----------- ------ ----- Investment Energy Resources Limited LT IDR BB Upgrade BB- LC LT IDR BB Upgrade BB- senior secured LT BB Upgrade BB- =========== M E X I C O =========== GRUPO ELEKTRA: Fitch Affirms LongTerm IDRs at 'BB', Outlook Stable ------------------------------------------------------------------ Fitch Ratings has affirmed Grupo Elektra, S.A.B. de C.V.'s (Elektra) Long-Term Local-Currency and Foreign-Currency Issuer Default Ratings (IDRs) at 'BB' and National Long-Term Rating to 'A+(mex)'. Fitch has also affirmed the National Short-Term Rating at 'F1+(mex)'. Fitch has additionally affirmed Nueva Elektra del Milenio, S.A. de C.V.'s (NEM) Long-Term Local-Currency and Foreign-Currency IDRs at 'BB'. The Rating Outlooks for Elektra and NEM are Stable. The affirmation of Elektra's ratings reflects its long-term retail trajectory and market position as one of Mexico's main department store chains focused on the middle to middle-low segments of the population, its operational and financial linkage with Banco Azteca S.A. (BAZ; A+[mex]/F1+[mex]; Stable Outlook), as well as the company's sizable liquidity position and financial flexibility. The ratings also consider Fitch's view of the company's related parties' aggressive treatment toward different stakeholders, which weakens governance. NEM's ratings are equalized to those of its parent company Elektra applying the stronger parent approach. Fitch incorporates the high legal, strategic and operational incentives between both companies. Elektra guarantees NEM's future flows issuance and some of NEM cash flows are used to pay Elektra's debt. NEM is a strategic subsidiary for the economic group as it operates the Mexican retail business and is the parent company of the retail businesses in Latin America. NEM's operations are also integral to Elektra's core business as they provide operational benefits and share a common management structure. KEY RATING DRIVERS Profitability Pressures in Retail: During 2022, Elektra's retail revenues increased 7.4% compared with YE 2021, driven mainly by higher sales of motorcycles, electronics and cell phones, as well as the opening of new stores. During the year, the company faced some cost challenges related to a still disrupted supply chain and inventory mark-downs, as well as executed significant investments and expenses to strengthen its logistic infrastructure and IT development. These factors pressured profitability margins and the company expects these pressures to ease over the next couple of years as returns on investments start to materialize. For 2023, Fitch estimates Elektra's retail revenues will maintain a positive growth, while profitability should show some signs of recovery due to the normalization of inventory levels and the supply chain, as well as logistics cost absorption. Temporarily Higher Retail-Only Leverage: Fitch's analysis focuses primarily on Elektra's retail business and excludes its financial arm. For YE 2022, Elektra's retail-only adjusted debt/EBITDAR was above Fitch's expectations due to lower profitability levels and higher debt issued to fund logistics and digital investments. Fitch believes this increase is temporary and Elektra's retail-only gross adjusted leverage metrics will return to levels of 3.5x-4.0x in 2024-2025. In addition, Fitch estimates Elektra's retail-only net debt-to-EBITDAR should be close to 3.0x by the end of 2023. Delays or inability of the company to reduce leverage metrics will put pressure on ratings. Using the captive finance adjustment, as per Fitch's criteria, consolidated gross adjusted debt/EBITDAR was 3.6x as of Dec. 31, 2022. This adjusted leverage ratio is expected to be close to 3.0x by YE 2023. When financial services (FS) activities are consolidated by a rated entity, Fitch criteria assumes a capital structure for the FS operations, which is strong enough to indicate that FS activities are unlikely to be a cash drain on retail operations over the rating horizon. Then the FS entity's debt proxy, or its actual debt (if lower), can be deconsolidated and the remainder debt used for credit metric calculations. Strong Market Position: Elektra's market position is supported by diversification of its operations and linkage with Banco Azteca, which has widespread banking franchises across the country. Elektra has more than 70 years' experience in the commercialization of durable goods, with operations in four Latin American countries, including Mexico. The company also has a presence in the U.S. through its Purpose Financial, Inc. subsidiary, a provider of payday lending and other short-term financial services. Elektra's omnichannel strategy includes not only the retail division but also a financial business component and beyond. Over the past years, the company has invested in IT platforms and other digital tools to support innovations to stay updated with consumer trends. Elektra is currently executing important investments to strengthen its digital offering, which it expects to start showing returns over the next couple of years. Elektra generates about 87% of the group's consolidated revenues in Mexico, including retail and financial businesses. However, Fitch believes operations in other countries across Latin America and in the U.S. somewhat compensate revenue concentration. Banco Azteca Complements Elektra's Business Model: The linkage between Elektra's retail and financial divisions is strong, as they depend on each other to complete service offerings to customers. The retail division complements its product sales by offering BAZ credit services, while BAZ maintains a strong base of customers derived from Elektra and Salinas y Rocha shoppers. Fitch's approach for Elektra's ratings incorporates the assessment of Elektra's credit profile considering potential future capital injections BAZ might require from Elektra. Current assumptions consider no capital injections to Banco Azteca over the rating horizon. BAZ's National Long-Term Rating of 'A+(mex)' reflect its strong business profile and profit generation capacity. In addition, the ratings incorporate BAZ's recovery of Fitch's core profitability metrics, size of capital, the additional reserves made to strengthen its capital ratio and the level of provisions to cover in more than 2.0x its non-performing loans. Expected Positive FCF: Fitch expects the company's FCF to be positive for the next 3 years-4 years, after being negative in 2022 due to higher capex and working capital requirements related to portfolio growth. During the year, the company paid MXN8.2 billion in taxes, executed capex for almost MXN13 billion and grew its credit portfolio by MXN26 billion, resulting in a negative FCF of MXN16.1 billion. For 2023, Fitch estimates Elektra's gross credit portfolio to growth around 6% with capex of around MXN8 billion. Investments for this year will mainly be focused on digital strategy and store opening and remodeling. Currency Exposure Mitigated: Although debt mainly consists of local currency issuances, some of Elektra's inventory is exposed to currency variations, as a portion of it is linked to the U.S. dollar. This could pressure profit margins for some products if this effect is not reflected in price increases, or might affect sales volumes if it is passed through prices. However, this exposure is mitigated by Purpose Financial's cash flows and money transfer fees collected in U.S. dollars. Elektra has partially covered its U.S. dollar cash flow exposure for 2023 by entering into forward and futures contracts. ESG - Governance Structure: Elektra is owned by Ricardo Salinas and his family. Grupo Salinas has taken various actions that illustrate potential conflicts of interest through different treatment among different types of creditors. This includes TV Azteca's full payment of its Mexican peso-denominated local bonds and continued non-payment to its U.S. dollar-denominated creditors. DERIVATION SUMMARY Elektra's ratings reflect the company's profile as a department store business focused in the mid- to low income segment of the population in Mexico and other countries in Latin America. Elektra's stores scale is smaller than Americanas S.A. (D) but larger than Grupo Unicomer (BB-/Stable), and it has one of the largest credit portfolios held by a retailer in the region. The company is more geographically diversified than Americanas but less than Unicomer; however, Mexico and the U.S. are the countries that generate most of Elektra's cash and have lower country risk than most of Unicomer's countries of operations, and Brazil, where Americanas is focused. Compared with other non-food retailers in the region such as Grupo Sanborns and Unicomer, Elektra is around 1.5x-2.5x the scale in retail-only absolute sales, reflecting the ample market the company is focusing. The company's retail-only EBITDAR margins have been higher than the median of regional peers of approximately 10%, with some pressures emerging from the digital offering development. Elektra maintains resilient operating cash flows in its retail division compared with other retailers and it has good financial flexibility due to its high levels of cash and marketable securities. KEY ASSUMPTIONS - Consolidated revenues grow an average of 9.4% annually in 2023-2026; - Annual average growth of 5.2% in banking deposits; - Consolidated gross credit portfolio growth of 8% per year on average in 2023-2026; - NPL provisions of MXN21 billion per year on average; - Average annual capex of MXN8 billion; - Dividend payments growing at 5.5% per year; - The company refinances most of its short-term debt maturities and annually amortizes NEM's future flows issuance. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: - Sustained adjusted debt to EBITDAR for the retail division above 4.0x; - Sustained adjusted net debt to EBITDAR for the retail division above 3.0x (including readily available cash equivalents, as per Fitch's calculations); - Sustained consolidated adjusted debt to EBITDAR (as per Fitch's criteria) above 3.0x; - Deterioration in BAZ's creditworthiness; - A further deterioration in corporate governance perception. Factors that could, individually or collectively, lead to positive rating action/upgrade: - A sustained decrease in adjusted leverage and adjusted net leverage for the retail division to levels below 3.5x and 2.0x, respectively; - Sustained consolidated adjusted debt to EBITDAR (as per Fitch's methodology) below 2.0x; - A strengthening of the bank's creditworthiness coupled with solid performance of the retail business revenue, profitability and cash flow dynamics; - Fitch's perception of a sustained track record of strengthening corporate governance practices over time. LIQUIDITY AND DEBT STRUCTURE Sound Liquidity: At YE 2022, cash for the retail division was MXN9.8 billion and short-term debt was MXN7.6 billion, mainly composed by local issuances. In addition, the retail division presented MXN6.2 billion of short-term marketable securities. Fitch considers the retail division's cash and marketable securities as readily available cash as there are no constrains for its disposition. ISSUER PROFILE Grupo Elektra was founded in 1950 as an electronics manufacturer and became, in 1957, a retailer. Elektra is one of the largest specialty retailing (1,253 stores in Mexico and 117 stores in Latin American), consumer finance and banking services companies in Mexico in terms of number of stores, branches and revenues. Elektra also operates in Guatemala, Honduras and Panama. The company operates in two main business segments: retail and financial services, which is mainly comprised of Banco Azteca. ESG CONSIDERATIONS Elektra has an ESG Relevance Score of '5' for Governance Structure resulting from ownership concentration and the company's related party's aggressive treatment toward different stakeholders and arrangements with related companies that benefit shareholders but impact creditor's interests. This has a negative impact on the credit profile and is highly relevant to the rating in conjunction with other factors. Elektra has an ESG Relevance Score of '4' for Financial Transparency due to the level of detail and transparency of financial disclosure. This has a negative impact on the credit profile and is relevant to the rating in conjunction with other factors. Except for the matters discussed above, the highest level of ESG credit relevance, if present, is a score of '3'. 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 ----------- ------ ----- Nueva Elektra del Milenio, S.A. de C.V. LT IDR BB Affirmed BB LC LT IDR BB Affirmed BB Grupo Elektra, S. A. B. de C. V. LT IDR BB Affirmed BB LC LT IDR BB Affirmed BB Natl LT A+(mex) Affirmed A+(mex) Natl ST F1+(mex)Affirmed F1+(mex) senior unsecured Natl LT A+(mex) Affirmed A+(mex) ===================== P U E R T O R I C O ===================== CARIBBEAN BANANA: April 14 Plan & Disclosure Statement Hearing Set ------------------------------------------------------------------ Caribbean Banana, Inc., filed with the U.S. Bankruptcy for the District of Puerto Rico on March 13, 2023, a Disclosure Statement describing Small Business Plan of Reorganization. On March 14, 2023, Judge Maria De Los Angeles Gonzalez conditionally approved the Disclosure Statement and ordered that: -- April 14, 2023 at 9:30 AM is the hearing for the consideration of the final approval of the Disclosure Statement and the confirmation of the Plan. -- Acceptances or rejections of the Plan may be filed in writing by the holders of all claims on/or before 14 days prior to the date of the hearing on confirmation of the Plan. -- Any objection to the final approval of the Disclosure Statement and/or the confirmation of the Plan shall be filed on/or before 14 days prior to the date of the hearing on confirmation of the Plan. -- The debtor shall file with the Court a statement setting forth compliance with each requirement in section 1129, the list of acceptances and rejections and the computation of the same, within 7 working days before the hearing on confirmation. A copy of the order dated March 14, 2023 is available at https://bit.ly/3LBmLZr from PacerMonitor.com at no charge. The Debtor's attorneys are: Enrique M. Almeida, Esq. Zelma B. Davila, Esq. Almeida & Davila, P.S.C. 268 Ponce de Leon Avenue Suite 900 San Juan, PR 00918 P.O. Box 191757 San Juan, PR 00919-1757 Tel. (787) 722-2500 Fax No. (787) 777-1376 Email: enrique.almeida@almeidadavila.com zelma.davila@almeidadavila.com About Caribbean Banana Caribbean Banana, Inc., is a privately owned corporation incorporated under the Laws of the Commonwealth of Puerto Rico in August 2012. Its line of business includes the planting, harvesting and sale of bananas and other small fruits. Caribbean Banana sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 22-01302) on May 6, 2022, listing as much as $500,000 in both assets and liabilities. The Honorable Bankruptcy Judge Maria De Los Angeles Gonzalez oversees the case. Enrique Almeida Bernal, Esq., and Zelma B. Davila, Esq., at Almeida & Davila, P.S.C., are the Debtor's bankruptcy attorneys. ===================================== T R I N I D A D A N D T O B A G O ===================================== TRINIDAD & TOBAGO: Economic Recovery is Ongoing, IMF Says --------------------------------------------------------- An International Monetary Fund (IMF) staff team, led by Mr. Camilo E. Tovar, visited Port of Spain and held discussions on the 2023 Article IV consultation with Trinidad and Tobago's authorities during March 1–14. At the end of the consultation, the mission issued the following statement, which summarizes its main conclusions and recommendations. Economic recovery is ongoing 1. Economic activity is recovering . Real GDP is estimated to have expanded by 2.5 percent in 2022, supported by the non-energy sector which was partially offset by an unexpected weak performance of the energy sector. Inflation increased, reaching 8.7 percent by end-2022, driven by imported energy and food prices, partial liberalization of domestic fuel prices in 2022, and domestic floodings. Banks' credit to the private sector is recovering and the banking sector appears well-capitalized, liquid, and profitable. The current account surplus expanded, and foreign reserves coverage remained adequate at 7.6 months of prospective total imports. 2. Higher global energy prices and prudent consolidation measures contributed to a fiscal surplus and a decline in public debt in 2022 . The overall fiscal balance registered a surplus of 0.3 percent of GDP in FY2022—for the first time in over a decade and after a record deficit of 11.7 percent of GDP in FY2020. The surplus reflects higher than anticipated energy revenues, some spending cuts relative to the budget, and the reduction of the fuel subsides. Central government debt declined to 53.8 percent of GDP (from 60 percent of GDP in FY2021) and gross public debt declined to 71 percent of GDP (from 79.2 percent of GDP in FY2021). Public financial buffers remain strong with total assets in the Heritage and Stabilization Fund (HSF) at US$5.0 billion (18.6 percent of GDP) by end-FY2022. Positive outlook but looming uncertainties 3. The recovery is expected to gain broad-based momentum in 2023 with a 3.2 percent GDP expansion. Over the medium term, new energy projects will come into production but as oil and gas fields mature, potential growth will slow down to 1.5 percent. Inflation is projected to slow down to 4.5 percent by end-2023 and will continue declining with international prices. Waning gas and petrochemicals exports starting in 2024 and the anticipated decline in global energy prices, will result in a narrower current account surplus, averaging 6.7 percent of GDP. International reserve coverage is projected to remain adequate at around 6.5 months of prospective total imports by 2028. 4. The fiscal position is expected to swing from surplus in FY2022 to a deficit in FY2023, and then stabilizes at moderate deficits over the medium term . The fiscal balance is projected to deliver a deficit of 2.8 percent of GDP in FY2023. This reflects lower energy revenues due to declining prices and domestic production, and increased capital spending. The deficit is expected to persist over the medium term which could widen with the outcome over the ongoing public sector wage negotiations. Public debt is projected to reach 74.2 percent of GDP in FY2028, slightly below the government's new soft debt target of 75 percent of GDP. 5. The balance of risks to growth is tilted to the downside . Downside risks stem from potential disruptions to domestic oil and gas production; a sharper-than-expected global slowdown affecting energy markets, and global financial instabilities. On the upside, there is the potential for higher-than-expected energy production and prices, including from a new U.S. license to Trinidad and Tobago to develop a major gas field in Venezuela. Preserving fiscal discipline and sustainability 6. IMF staff welcomes the authorities' prudent management of the energy revenue windfall and underscores the importance to continue rebuilding buffers. With the economic recovery ongoing, it is recommended to continue prudently managing the energy revenue windfall, avoiding procyclical spending, and rebuilding fiscal buffers. IMF staff welcomes the deposit of about US$345 million (1.3 percent of GDP) into the HSF in 2022. 7. The envisaged expenditure envelope in the FY2023 budget is appropriate, particularly considering the capital expenditure needs. The capital expenditure increase will support the economic recovery and address critical bottlenecks, including in infrastructure. However, it is necessary to improve the investment execution rate, while ensuring spending remains efficient and high quality. IMF staff welcomes the decision to partially liberalize fuel prices as it will improve the efficiency and the sustainability of the public accounts. It is important to continue providing targeted and temporary support to alleviate the rising living costs among the most vulnerable. To confront downside risks, developing a spending contingency plan would help prevent adverse effects on the fiscal accounts. 8. The authorities' commitment to balance the budget over the medium term is prudent and welcome. The recent fiscal measures introduced to mobilize revenues, rationalize spending, and incentivize private investment will help improve the fiscal position. To support this, IMF staff recommends further measures to enhance revenue mobilization, cut down on non-priority current expenditure which would help maintain debt levels well below the soft debt target. Additional revenue could be generated through implementing tax reforms and strengthening the tax administration. It is advised to continue gradually phasing out subsidies, streamlining transfers to state-owned enterprises (SOEs), and improving public spending efficiency. The pace and composition of the adjustment should continue to preserve the spending for the most vulnerable and for essential capital. 9. Long-term fiscal risks related to the pension system and the global energy transition away from fossil fuels need to be addressed. In the absence of reforms, the National Insurance System's deficit is expected to widen, and its reserve be depleted by mid-2030s. IMF staff welcomes the authorities' proposal to increase the retirement age to 65 years. Other parametric measures including gradually increasing the contribution rate could be considered to ensure the long-term financial viability of the system. Ensuring an energy transition that delivers on the fiscal objectives and avoids disruptive policy adjustments requires the design of a sustainable long-term fiscal strategy. 10. Enhancing the fiscal policy framework would help strengthen planning and reinforce fiscal sustainability. A rule-based medium-term fiscal framework would strengthen policy formulation, help avoid procyclical spending, and mitigate fiscal risks. A formal fiscal anchor with an escape clause for unexpected events, could help support the accumulation of financial buffers during periods of high energy prices and delink expenditure from energy revenue volatility, while ensuring the transfers of funds into and out of the HSF. Developing a sound debt management strategy would mitigate macroeconomic and financial stability risks. Maintaining a consistent monetary and exchange rate policy 11. IMF staff encourages the authorities to continue maintaining sound and consistent policies to support the current exchange rate arrangement. The Central Bank of Trinidad and Tobago (CBTT) has maintained its repo rate at 3.5 percent since March 2020 to support the recovery of the economy. Increasing the policy rate should be seriously considered to contain inflationary pressures and narrow the negative interest rate differentials with the U.S. monetary policy rate. This would also help mitigate potential risks of capital outflows and reduce incentives for excessive risk taking that could threaten financial stability. 12. A more efficient FX infrastructure would help eliminate FX shortfalls. It would also help create a more conducive business environment for the private sector to invest and diversify the economy. Over the medium term, greater exchange rate flexibility would reduce the need for fiscal policy adjustments to restore external balance and create room for more countercyclical monetary policy. IMF staff encourages the authorities to remove all restrictions on current international transactions while providing sufficient FX to meet demand for all current international transactions. Reinforcing financial stability 13. The authorities need to remain vigilant to potential vulnerabilities in the financial system. While the system appears sound and resilient, it faces potential vulnerabilities emanating from rising household and businesses' debt, high exposures to the sovereign, and interconnectedness. Closely monitoring financial sector risks is warranted. 14. The authorities are encouraged to further strengthen the financial regulatory and supervisory framework. IMF staff welcomes the progress towards enhancing the resilience of the banking and insurance sectors in line with the recommendations of the 2020 Financial System Stability Assessment (FSAP) . Going forward, it is encouraged to make progress on: (i) orderly transforming the investment fund sector from constant to variable net asset value; (ii) enhancing the consolidated supervision of conglomerate groups; (iii) providing the CBTT with explicit macroprudential authority and tools; and (iv) strengthening supervisory resource and independence in line with international best practices. 15. Trinidad and Tobago is actively embracing Fintech for financial inclusion and development, while working on mitigating its potential risks. The authorities are leveraging on new technologies to improve the delivery of financial services, boost financial inclusion, and modernize the payment system. IMF staff welcomes the authorities' efforts, in collaboration with IMF Technical Assistance, to develop the Fintech ecosystem, including by establishing the Joint Regulatory Hub, launching a Regulatory Sandbox, developing the payment system, and strengthening the cybersecurity. 16. IMF staff welcomes the authorities' progress to enhance the financial integrity and international tax transparency frameworks. Following the removal of Trinidad and Tobago from the Financial Action Task Force (FATF) monitoring list in February 2020, the authorities are encouraged to further strengthen the AML/CFT framework, through making beneficial ownership available including for the procurement sector through the finalization of amendments to the public procurement act, and adopting risk-based AML/CFT supervision. IMF staff welcomes the authorities' commitment and efforts to addressing issues related to the EU's Commission Tax Blacklist and the OECD Global Forum requirements on Exchange of Information Request and the Automatic Exchange of Information Standards. Promoting economic diversification and a green economy 17. There is a need to step up the efforts to secure an economic transformation to deliver a sustainable and inclusive economy . The energy sector will remain the country's main growth engine in the near to medium term. IMF staff welcomes the authorities' efforts to take advantage of its existing petrochemical infrastructure and know-how to transition into clean energy. At the same time there is scope to diversify its exports products and markets. 18. The economic diversification process requires supporting policies to address structural bottlenecks. In addition to a sound and stable macroeconomic environment, the authorities are encouraged to step up their efforts towards improving the business environment by delivering on measures (e.g., infrastructure, governance, trade policy, education) laid out in the Vision 2030. IMF staff welcomes the country's digitalization agenda to deliver more efficient public services, improve the business environment, and enhance the social safety net. 19. The authorities' actions to reduce greenhouse gas emissions are commendable . Several renewable energy projects are being developed to meet the 30 percent target of renewable energy sources by 2030. IMF staff encourages the authorities to continue advancing on these initiatives and welcomes their new green hydrogen strategy for the energy transition. Efforts to integrate the climate change considerations in the financial sector supervision are also welcome. Enhancing the adequacy of statistics 20. IMF staff welcomes the progress to improve the quality, timeliness, and coverage of macroeconomic statistics, but some challenges remain. Transforming the Central Statistical Office into an independent National Statistical Institute would help strengthen the country's institutional capacity. It is encouraged to continue building on the recent efforts to broaden fiscal data coverage of SOEs and other public bodies. [*] TRINIDAD & TOBAGO: IMF Projects 3% Growth for Country --------------------------------------------------------- Trinidad Express reports that the International Monetary Fund (IMF) has indicated a recovery of the local economy for Trinidad and Tobago and projected growth of just over three per cent this year. The IMF released the concluding statement of its two-week 2023 Article IV Mission to Trinidad and Tobago. It is a yearly health-check by international experts of Trinidad and Tobago's economy and finances, according to Trinidad Express. "The concluding statement points to the ongoing broad-based recovery of the economy, with a projected growth for 2023 at 3.2 per cent (following 2.5 per cent in 2022), even higher than the Government's own projections for growth," the Ministry of Finance said in a release on the IMF's concluding statement, the report notes. Finance Minister Colm Imbert said: "Such positive outlook is notable given the complicated international economic context," the report relays/ He added: "The IMF 'welcomes' our prudent management of public finances, views as 'appropriate' the current public expenditure envelope, and encourages us to continue building buffers in the Heritage and Stabilisation Fund. Our medium-term commitments to fiscal rectitude are also deemed 'prudent and welcome'," the report says. Public Sector Debt at 71% Overall, the public debt trajectory is expected to be broadly stable until 2028, notwithstanding materially more pessimistic oil and gas price projections, the Ministry noted in the IMF's statement obtained by the news agency. The IMF's headline central government debt/GDP metric puts Trinidad and Tobago's Central Government debt at 53.8 per cent of GDP for 2022, and 53.9 per cent in 2023, the report says. "Trinidad and Tobago's more conservative approach to the quantification of country debt, namely Public Sector Debt which, in addition to Central Government debt, includes a considerable amount of Government-guaranteed debt, has also stabilised at 71 per cent according to the IMF, after a significant decline from post-Covid heights, and is now well below other Caricom and LATAM countries," the statement said, the report notes. "The IMF's acknowledgment of the prudence, resilience and medium-term orientation of our fiscal policy is indeed gratifying, coming as it does after the multiple shocks faced by Trinidad and Tobago and the world economy over the last three years," Imbert stated, the report relays. The IMF has encouraged us to continue "maintaining sound and consistent policies to support our current exchange rate arrangements" while acknowledging the need to balance growth and price stability objectives, the report notes. Lastly, the IMF points to the need to "step up efforts" to diversify our economy, the Ministry statement said, the report says. "The IMF's guidance and encouragement are very useful and timely," said Imbert. "It is our intention indeed to accelerate our diversification efforts, and build on the foundation we have laid of sound fiscal and financial policies," the report adds. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2023. All rights reserved. ISSN 1529-2746. 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 * * *