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       T R O U B L E D   C O M P A N Y   R E P O R T E R

                 L A T I N   A M E R I C A

          Thursday, May 11, 2023, Vol. 24, No. 95

                           Headlines



A R G E N T I N A

ARGENTINA: Central Bank Reserves Drop to Lowest Level Since 2016
ARGENTINA: IDB OKs $150M Loan to Strengthen Edu. Trajectories
ARGENTINA: Parallel Rates Calm as Country Tightens Rules


B R A Z I L

BANCO DE BRASILIA: Fitch Lowers LongTerm IDRs to B+, Outlook Stable
COMPANHIA DE GAS: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable
[*] BRAZIL: Expects Record Agricultural Harvest of 299.7M Tons


C A Y M A N   I S L A N D S

CALEDONIAN BANK: Creditors' Proofs of Debt Due June 26


E L   S A L V A D O R

EL SALVADOR: S&P Downgrades SCR to 'SD/SD' on Pension Debt Exchange


J A M A I C A

JAMAICA: BOJ Acted Too Soon in Raising Interest Rate, Says Mahfood


T R I N I D A D   A N D   T O B A G O

TRINIDAD & TOBAGO: Imbert Seeks $3.58 Billion More

                           - - - - -


=================
A R G E N T I N A
=================

ARGENTINA: Central Bank Reserves Drop to Lowest Level Since 2016
----------------------------------------------------------------
Buenos Aires Times reports that Argentina's Central Bank reserves
dropped to their lowest level yet of the Alberto Fernandez
administration, specialists said.

The institution's gross reserves were on the verge of dropping
below US$35 billion, following heavy sales in April, according to
Buenos Aires Times.

Net reserves, the real measure of the monetary authority, are
almost at zero, if gold is not taken into account, relays the
report.

To find a lower amount of gross international reserves, one has to
go back more than six years, to October 11, 2016, when the monetary
authority closed out the day with US$32.457 billion, the report
notes.

However, at that time, reserves were boosted within six days to
exceed US$40 billion - Argentina's holdings today are in decline,
with the Central Bank continuing to defend the peso by selling
foreign currency on the markets, the report relays.

Last month, the national currency retreated 13 percent on parallel
markets to a record low. A historic drought is hurting key crop
exports, exacerbating a shortage of foreign currency, the report
recalls.

In addition, a scheduled payment to the International Monetary
Fund, looks set to take reserves to an even lower level, the report
relays.

Argentina and the IMF are discussing the possibility of bringing
forward payments from the multilateral body ahead of October's
presidential election, 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 March 29, 2023, lowered its long-term
foreign currency sovereign credit rating on Argentina to 'CCC-'
from 'CCC+'. S&P also affirmed its 'C' short-term foreign currency
sovereign credit rating and its 'CCC-/C' local currency ratings on
Argentina. The outlook on the long-term ratings is negative. S&P
also lowered the transfer and convertibility assessment to 'CCC-'
from 'CCC+'.

The negative outlook on the long-term ratings reflects risks
surrounding pronounced economic imbalances and policy uncertainties
before and after the 2023 national elections. Divisions across the
political spectrum constrain the sovereign's ability to implement
timely changes in economic policy. Global capital markets are
closed to Argentina. In the local market, swaps are being deployed
to manage large maturities before placing debt through traditional
auctions. The central bank continues to play a key role as a
backstop for local debt management in the secondary market. The
ongoing severe drought has exacerbated pressures in the already
disrupted foreign exchange (FX) market.

Fitch Ratings, on the other hand, downgraded Argentina's Long-Term
Foreign Currency Issuer Default Rating (IDR) to 'C' from 'CCC-',
and has affirmed the Long-Term Local Currency IDR at 'CCC-' on
March 24, 2023. Fitch's downgrade of Argentina's rating to 'C' from
'CCC-' follows an executive decree that forces domestic
public-sector entities into operations involving their holdings of
sovereign debt securities, which would involve unilateral exchanges
and forced currency conversion that constitute default events under
Fitch's criteria. The 'C' rating reflects Fitch's view that default
is thus imminent. Fitch said the rating would be downgraded to
'Restricted Default' (RD) upon execution of the exchanges.

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, Inc. confirmed Argentina's Long-Term Foreign Currency Issuer
Rating at CCC and downgraded its Long-Term Local Currency Issuer
Rating to CCC from CCC (high) on March 3, 2023.  



ARGENTINA: IDB OKs $150M Loan to Strengthen Edu. Trajectories
-------------------------------------------------------------
The Inter-American Development Bank (IDB) approved a $150 million
loan to strengthen the educational trajectories of children and
young people in the Province of Buenos Aires.

This is a Results-Based Loan (PBR) that will improve access to
educational opportunities and healthy school meals for young people
in vulnerable situations who are part of state-managed compulsory
public education. It also seeks to strengthen the digital inclusion
of secondary-level students from these institutions.

Guaranteeing continuous and complete educational trajectories
continues to be one of the leading social challenges in the region,
given that young people living in poverty tend to achieve fewer
years of schooling. The evidence shows that one of the main
structural causes that put the educational trajectories of the most
vulnerable at risk are the economic and social aspects linked to
the living conditions of students, which affect their physical,
socio-emotional, and cognitive development, and affect their
regular school attendance.

The Province of Buenos Aires, with nearly 38% of compulsory
education enrollment in Argentina (4.1 million students between
private and state establishments), is the largest educational
system in the country and has been implementing a set of actions
that seek to respond to this challenge. The program adds to these
initiatives and plans to support the start-up of socio-educational
and community centers aimed at serving young people between the
ages of 4 and 21 from poor neighborhoods with vulnerable
educational trajectories.

The $150 million IDB loan has a 3-year disbursement period, a
5.5-year grace period, and an interest rate based on SOFR.

                           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 March 29, 2023, lowered its long-term
foreign currency sovereign credit rating on Argentina to 'CCC-'
from 'CCC+'. S&P also affirmed its 'C' short-term foreign currency
sovereign credit rating and its 'CCC-/C' local currency ratings on
Argentina. The outlook on the long-term ratings is negative. S&P
also lowered the transfer and convertibility assessment to 'CCC-'
from 'CCC+'.

The negative outlook on the long-term ratings reflects risks
surrounding pronounced economic imbalances and policy uncertainties
before and after the 2023 national elections. Divisions across the
political spectrum constrain the sovereign's ability to implement
timely changes in economic policy. Global capital markets are
closed to Argentina. In the local market, swaps are being deployed
to manage large maturities before placing debt through traditional
auctions. The central bank continues to play a key role as a
backstop for local debt management in the secondary market. The
ongoing severe drought has exacerbated pressures in the already
disrupted foreign exchange (FX) market.

Fitch Ratings, on the other hand, downgraded Argentina's Long-Term
Foreign Currency Issuer Default Rating (IDR) to 'C' from 'CCC-',
and has affirmed the Long-Term Local Currency IDR at 'CCC-' on
March 24, 2023. Fitch's downgrade of Argentina's rating to 'C' from
'CCC-' follows an executive decree that forces domestic
public-sector entities into operations involving their holdings of
sovereign debt securities, which would involve unilateral exchanges
and forced currency conversion that constitute default events under
Fitch's criteria. The 'C' rating reflects Fitch's view that default
is thus imminent. Fitch said the rating would be downgraded to
'Restricted Default' (RD) upon execution of the exchanges.

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, Inc. confirmed Argentina's Long-Term Foreign Currency Issuer
Rating at CCC and downgraded its Long-Term Local Currency Issuer
Rating to CCC from CCC (high) on March 3, 2023.  


ARGENTINA: Parallel Rates Calm as Country Tightens Rules
--------------------------------------------------------
Buenos Aires Times reports that Argentina's National Securities
Commission (CNV) has tightened rules to prevent currency flight
through the Bolsa stock exchange by limiting the ability of traders
to access the 'medio electronico de pagos' (MEP) and 'contado con
liquidacion' (CCL) exchange rates.

The attempt to curb new runs and have greater control over
financial dollar transactions partially slowed the weakening of the
peso on parallel exchange markets, with both rates remaining
relatively stable, according to Buenos Aires Times.

According to the details of Resolution 959/2023, published on May
1, the purpose of the government's move is to "regulate more
intensely the foreign exchange regime and, consequently, strengthen
the normal functioning of the economy, contribute to a prudent
management of the foreign exchange market, reduce the volatility of
financial variables and contain the impact of fluctuations in
financial flows on the normal functioning of the real economy," the
report relays.

The CNV stipulated that Broker Dealers (Settlement and Clearing
Agents, or ALyCs, and Trading Agents) "may neither execute nor
settle transactions of sale of negotiable securities with
settlement in foreign currency to clients who have positions in
bonds and/or passes, whatever the settlement currency," the report
discloses.

A second resolution established that ALyCs will face limits on
operations referred to the amount of marketable securities sold
with respect to the amount of marketable securities purchased -
with settlement in foreign currency and in local or foreign
jurisdiction - carried out in the segment of concurrence of offers,
with priority price time, the report notes.

This means that brokers at the end of the day will have to have
done the same volume of buying and selling (in net terms) in their
MEP and CCL trades. They will therefore have to trade with their
own liquidity, the report relays.

"In the demand for financial dollars there are operations by
individuals and by brokerage firms and traders with trading
experience.  What we have noticed is that there is an increase in
the demand for dollars in operations by professional traders. In
other words, they are speculative manoeuvres looking for rates,"
explained the CNV, the report relays.

The new regulations are a bid to cut the ability of brokers to
access "cauciones o pases" ("guarantees or passes," or credits) and
with that money access the MEP and CCL rate, which increases demand
and favours the rise in the quotation, the report discloses.

By carrying out such operations, traders expect a rise in the price
of financial dollars and then pocket the difference in favor, the
report notes.

At the peak of an exchange rate run, the CNV joined with the UIF
financial investigation money-laundering watchdog to carry out a
series of raids on stockbrokers in search of irregular manoeuvres,
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 March 29, 2023, lowered its long-term
foreign currency sovereign credit rating on Argentina to 'CCC-'
from 'CCC+'. S&P also affirmed its 'C' short-term foreign currency
sovereign credit rating and its 'CCC-/C' local currency ratings on
Argentina. The outlook on the long-term ratings is negative. S&P
also lowered the transfer and convertibility assessment to 'CCC-'
from 'CCC+'.

The negative outlook on the long-term ratings reflects risks
surrounding pronounced economic imbalances and policy uncertainties
before and after the 2023 national elections. Divisions across the
political spectrum constrain the sovereign's ability to implement
timely changes in economic policy. Global capital markets are
closed to Argentina. In the local market, swaps are being deployed
to manage large maturities before placing debt through traditional
auctions. The central bank continues to play a key role as a
backstop for local debt management in the secondary market. The
ongoing severe drought has exacerbated pressures in the already
disrupted foreign exchange (FX) market.

Fitch Ratings, on the other hand, downgraded Argentina's Long-Term
Foreign Currency Issuer Default Rating (IDR) to 'C' from 'CCC-',
and has affirmed the Long-Term Local Currency IDR at 'CCC-' on
March 24, 2023. Fitch's downgrade of Argentina's rating to 'C' from
'CCC-' follows an executive decree that forces domestic
public-sector entities into operations involving their holdings of
sovereign debt securities, which would involve unilateral exchanges
and forced currency conversion that constitute default events under
Fitch's criteria. The 'C' rating reflects Fitch's view that default
is thus imminent. Fitch said the rating would be downgraded to
'Restricted Default' (RD) upon execution of the exchanges.

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, Inc. confirmed Argentina's Long-Term Foreign Currency Issuer
Rating at CCC and downgraded its Long-Term Local Currency Issuer
Rating to CCC from CCC (high) on March 3, 2023.  





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

BANCO DE BRASILIA: Fitch Lowers LongTerm IDRs to B+, Outlook Stable
-------------------------------------------------------------------
Fitch Ratings has downgraded Banco de Brasilia S.A.'s (BRB)
Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs)
to 'B+' from 'BB-' and Viability Rating (VR) to 'b+' from 'bb-'.
The Rating Outlook for the IDRs is Stable.

In addition, Fitch has downgraded BRB's Long-Term National Rating
to 'A(bra)' from 'A+(bra)'. The Rating Outlook on the Long-Term
National Rating is Negative.

KEY RATING DRIVERS

Lower Capitalization Drives Downgrade: The downgrade of BRB's VR,
Long-Term IDRs and National Rating reflects the erosion of the
bank's common equity Tier 1 (CET1) ratio to 7.8% at year-end 2022
from 12.7% at year-end 2021, driven by strong balance-sheet
expansion and weakened core profitability over the past two years.
This reduces the bank's financial flexibility to respond to
potentially adverse market developments in Brazil, and to grow its
business.

The Stable Outlook on BRB's Long-Term IDR reflects Fitch's view
that the bank's core metrics have sufficient headroom to
deteriorate further at the current level. In addition, Fitch
expects BRB's profitability to recover over the medium-term despite
remaining more volatile in the short term, due to a challenging
operating environment and ongoing restructuring costs. However,
Fitch sees less headroom for a deterioration of BRB's
creditworthiness on the National scale, as profitability and
capitalization metrics are at the low end of the range for
similarly rated Brazilian banks.

The Negative Outlook on the Long-Term National Rating reflects
downside risks for the bank's franchise and profitability from the
implementation of the expansion plan and more limited ability to
write new business in light of tighter core capitalization. BRB's
IDRs and National Ratings are driven by its intrinsic strength, as
reflected in its 'b+' Viability Rating (VR), which is in line with
the bank's implied VR.

Slow Profitability Recovery: BRB's operating profitability has been
affected in recent years by material costs from its digital
expansion strategy, high loan impairment charges and margin
pressures from interest-sensitive payroll and mortgage lending
businesses. BRB's operating profit/risk-weighted assets ratio
declined to an average of 0.7% in 2022 and 2021, from a four-year
average of 5.5% in the previous years.

While bottom-line profitability performed better (ROE of 13.7% and
27.8% in 2022 and 2021, respectively), it was largely supported by
non-recurring events linked to equity and fixed asset divestments.
Fitch sees limited profitability upside in the short term, as BRB
has yet to demonstrate its ability to improve structural earnings
or how it will implement its business initiatives. Therefore,
Fitch's revised the assessment of BRB's earnings & profitability to
'b+'/stable, from 'bb-'/stable.

Capitalization Weakest Link: The combination of high balance-sheet
expansion, weaker internal capital generation and high dividend
pay-outs over the past two years underpinned the decline in BRB's
CET1 ratio to 7.8% at year-end 2022 from 12.7% at year-end 2021.
The bank issued BRL1.1 billion of subordinated debt in 2022,
supporting its total capital ratio at 14.8%, but the bank's tier 1
regulatory capital ratio was still 9.1% by year-end (from 13.7% at
end-2021).

Management plans to gradually restore capital to historical levels
through a combination of internal capital generation as well as a
reduction of risk-weighted assets (RWA) through asset sales and,
potentially, through operational agreements with some of its
affiliates. This included a reorganization in the ownership
structure of its credit card subsidiary (BRB Card) in 1Q23, which
added 50bps on the bank's CET1 ratio. However, it is likely that
the CET1 ratio will remain below Fitch's 12% threshold for an
implied 'bb' category score for capitalization & leverage over the
long term.

An increase in the BRB group's risk appetite, including an
acceleration of its growth strategy in unsecured lending without a
commensurate rise in risk buffers, could further pressure the
capitalization and leverage score, which Fitch revised to
'b'/stable from 'b+'/negative. Fitch also revised its assessment of
BRB's risk profile to 'b+'/stable from 'bb-'/stable due to this
change in the bank's risk appetite.

Lower Reserve Coverage: The bank's impaired-loan ratio (which
includes impaired loans rated between D-H according to Brazil's
Central Bank definition) ended 2022 at 6.1%, which although close
to the 5.4% reported in the prior year, was aided by strong loan
expansion and charge-offs of fully impaired and fully reserved
exposures. The latter has led to weaker loan loss allowance
coverage of impaired loans of about 40% at year-end 2022, a
material reduction from 79% in the previous year.

Accordingly, the ratio of unreserved impaired loans to total equity
has risen to 43.7% at year-end 2022 from 9.7% at year-end 2021,
which renders capital ratios more vulnerable to asset-quality
shocks than BRB's peers. The bank's large share of secured lending,
with payroll and mortgage loans accounting for 70% of the
portfolio, offers additional loss protection and should help
contain the inflow of impaired loans. Nevertheless, the current
strategy to explore unsecured lending products could potentially
pressure asset-quality ratios, in Fitch's view.

Stable Funding and Liquidity: BRB's funding and liquidity remained
stable. The bank funds its loan book through a combination of
low-cost retail deposits, deposits from related parties, mainly the
Federal District Government and judicial deposits. Customer
deposits made up almost 75% of total funding as of December 2022,
underpinning a loans/customer deposits ratio of 115%.

RATING SENSITIVITIES

Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade

VR and IDR

A substantial and prolonged deterioration in the bank's
profitability leading to a more permanent weakening of the bank's
internal capital generation capacity than Fitch currently envisages
would be negative for creditworthiness. This could stem from a
longer than expected period to stabilize the bank's performance
following the implementation of its restructuring plan, or asset
quality deterioration beyond its current expectations.

If the VR were to be downgraded further from the current level, the
downside on the IDRs would be limited to the level indicated by the
bank's SSR, given the potential of support from the Government of
the Federal District (GDF).

National Ratings

The National Ratings could be downgraded if BRB fails to maintain
capital buffers over the next 12 months at least in line with
year-end 2022 levels, signaling that earnings pressures exceeded
Fitch's base case scenario and challenges in the execution of its
restructuring plan. A weakening of asset quality ratios, steaming
from BRB's credit expansion plans on unsecured lending, would also
put negative pressure on the ratings.

Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade

IDR

A potential upgrade of BRB's VR and IDRs is unlikely in the short
term. Fitch could upgrade the Long-Term IDR and VR if it becomes
clear that the CET1 ratio will be restored comfortably and durably
above 12% and that there is limited earnings risk from the
implementation of the restructuring plan.

National Ratings

The National Rating Outlook could be revised to Stable if the bank
shows a positive trend in its operating profitability metrics,
coupled with strengthening CET1 ratios, as an indication of the
consolidation and success of the ongoing digital expansion
strategy, and healthier capital structure.

Shareholder Support Rating: The SSR reflects Fitch's view that
Government of Federal District (GDF) has relatively limited
capacity to support BRB should the need arise, despite willing to
do so. BRB is strategically important for GDF, as it is the local
government's main financial agent and has a meaningful market share
in the state's loans and deposits. In addition to its commercial
operations, BRB performs a policy role for the region through
lending operations that promote development and economic growth.

Material negative changes in Fitch's assessment of GDF's ability
and willingness to provide support to BRB could affect the
Shareholder Support Rating (SSR) of the bank.

Positive changes in Fitch's assessment of GDF's ability and
willingness to provide support to BRB could affect the SSR of the
bank.

VR ADJUSTMENTS

Earnings and Profitability midpoint is set below the implied score,
based on an adjustment of historical and future metrics, to reflect
core metrics performing well below the historical trend.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.

   Entity/Debt                     Rating                Prior
   -----------                     ------                -----
BRB - Banco de
Brasilia SA     LT IDR              B+     Downgrade      BB-
                ST IDR              B      Affirmed        B
                LC LT IDR           B+     Downgrade      BB-
                LC ST IDR           B      Affirmed        B
                Natl LT             A(bra) Downgrade   A+(bra)
                Natl ST             F1(bra)Affirmed    F1(bra)
                Viability           b+     Downgrade      bb-
                Shareholder Support b      Affirmed        b

COMPANHIA DE GAS: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has affirmed Companhia de Gas de Sao Paulo - COMGAS'
Long-Term Foreign Currency Issuer Default Rating (IDR) at 'BB' and
Local Currency IDR at 'BBB-'. In addition, Fitch has affirmed the
company's National Long-Term Rating and senior unsecured debentures
at 'AAA(bra)'. The Ratings Outlook is Stable.

COMGAS' ratings reflect its long track record of robust cash flow
generation and sound financial profile within the low to moderate
risk of the natural gas distribution industry in Brazil. The
issuer's credit profile benefits from a more diversified client
segment base and higher profitability than its peers in the
country. COMGAS has the ability to pass through natural gas cost to
tariffs and high financial flexibility to support its expected
negative free cash flow (FCF).

Fitch's analysis assumes limited risks coming from gas supply and
the industry's recent regulatory framework. COMGAS is analyzed on a
standalone basis, despite being part of Cosan group. COMGAS'
Foreign Currency IDR is capped by Brazil's 'BB' country ceiling.

KEY RATING DRIVERS

Solid Business Profile: COMGAS is the largest natural gas
distributor in Brazil and benefits from its monopolistic operations
in part of the State of Sao Paulo (BB-/Stable), the most
economically important state in the country. The company's
concession matures in 2049 and has a diverse client base compared
with peers that relies on a higher share of residential and
commercial customers for cash generation. Clients from these two
segments are more profitable and tend to present lower volatility
during economic downturns.

Industrial clients accounts for around 70% of revenues and 50% of
operating profit, with residential clients representing about 15%
and 35% and commercial 5% and 10%, respectively.

Manageable Supply Risk: Fitch assumes no gas supply disruptions for
COMGAS in the future, even though supply contracts with Petroleo
Brasileiro S.A. (Petrobras; BB-/Stable) matures in December 2023.
COMGAS has the option to annually renew this supply agreement until
2027 at its discretion and should benefit from increasing offerings
from other natural gas producers in Brazil. Natural gas purchasing
is the main cost for natural gas distributors, which can be
passed-through to tariffs based on contract clauses, with no
expectations that take-or-pay and ship-or-pay clauses may
significantly pressure natural gas distributors' cash flow.

Robust EBITDA: Fitch estimates COMGAS can sustain strong EBITDA and
an adjusted EBITDA margin in the next three years, with BRL3.6
billion in 2023 and BRL4.1 billion in 2024. Adequate tariff
increases, maintenance of operating and cost efficiencies,
expansion of the client base and marginal volume billed growth,
should support this. Fitch expects the adjusted EBITDA margin,
excluding gas acquisition costs from net revenue, to be around 90%.
This assumption considers a margin contribution of BRL0.96/cubic
meters and stable total volume billed in 2023 at 4.6 billion cubic
meters, ex-thermo clients. EBITDA was BRL3.2 billion in 2022, with
adjusted EBITDA margin of 93%.

Strong FCF Before Dividends: Fitch forecasts COMGAS's strong annual
cash flow from operations (CFO) at BRL2.5-BRL3.1 billion during
2023-2025, which is enough to support the high average of annual
investment of BRL1.4 billion during the period. Fitch estimates
negative BRL1.0 billion FCF on annual average until 2025 due to
COMGAS's aggressive dividend payment. COMGAS's Standalone Credit
Profile (SCP), is due to perceptions of its insulated status for
legal ring fencing and porous status for access and control given
that the access of its ultimate parent Cosan S.A. (Foreign, Local
Currency IDRs 'BB'/National Scale Rating 'AAA(bra)'/Stable Outlook)
is only through upstreamed dividends.

Conservative Leverage: Net leverage should not exceed 2.0x during
2023-2025, which is conservative considering the company's low to
moderate business risk. COMGAS is subject to natural gas
consumption volatility within the industrial segment as it
represents around 50% of EBITDA generation. This segment's
performance is linked with GDP and gas price competitiveness
resulting in potential cash flow variation. COMGAS' efficient
expense structure and efforts to expand residential and commercial
client bases, with higher profitability, should mitigate effects of
industrial segment volatility.

New Regulatory Environment is Neutral: Recent regulations for the
Brazilian natural gas distribution industry should be neutral for
COMGAS's credit profile. The new environment stimulates higher gas
supply competition in the medium term, supporting lower purchase
prices and higher demand. This increases COMGAS's exposure to large
clients leaving its customer base by switching gas suppliers. The
company will continue to receive the fee for its distribution
service, which may not offset the impact of lower volumes billed.
The relevant scale of operations should support COMGAS'
competitiveness in gas purchase prices and mitigate this risk.

DERIVATION SUMMARY

COMGAS' credit profile compares favorably with Companhia de
Saneamento Basico do Estado de Sao Paulo (SABESP; Local Currency
IDR BB+/Stable), a water/wastewater utility operating in the State
of Sao Paulo, which carries some linkage with its controlling
shareholder, the State of Sao Paulo. COMGAS has a more robust cash
flow and lower capex needs. Both companies have sound capital
structures and liquidity profiles in addition to proven financial
market access.

Transmissora Alianca de Energia Eletrica S.A. (Taesa; Local
Currency IDR BBB-/Negative), a Brazilian power transmission
company, counterbalances COMGAS' lower leverage with lower
regulatory and business risk, with no volumetric exposure, leading
to more predictable CFO. Promigas S.A. E.S.P. (Promigas; Foreign
and Local Currency IDRs BBB-/Stable) has a strong business position
in Colombia (BB+/Stable) and predictable cash flow generation, but
gross leverage of around 3.5x-4.0x, higher than COMGAS at below
2.5x. Promigas' business profile benefits from diversification
within natural gas transportation and distribution activities,
while COMGAS only distributes gas and can face demand volatility.

COMGAS business profile is similar to Gas Natural de Lima y Callao
S.A.'s (Calidda; Local Currency IDR BBB/Stable), the natural gas
distributor in the cities of Lima and Callao in Peru. Calidda's
rating benefits from better operating environment, despite its net
leverage level around 3.5x, above that of COMGAS.

KEY ASSUMPTIONS

- Total volume billed stable in 2023, excluding the thermo power
generation segment. Annual average volume growth of 1.7%
thereafter, in line with Fitch's GDP projections for Brazil;

- Dividend payout ratio of 100% of distributable net profit;

- Annual average capex of BRL1.4 billion in 2023-2025;

- Annual contribution margin increase in line with Fitch's
inflation estimates, adjusted by an efficiency factor of 0.52%;

- Return of tax benefits to clients in approximately BRL1.8 billion
during 2024-2025.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

- Positive rating actions on the IDRs is subject to an upgrade on
Brazil's sovereign rating (BB-).

- An upgrade on the National Long-Term Rating does not apply as it
is at the top of the national scale.

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

- A downgrade of the sovereign rating would trigger a downgrade for
the IDRs;

- Expectation of a sustainable increase in net debt/EBITDA to above
3.0x;

- Fitch's perception of increased regulatory or gas supply risk;

- A sharp decline in volumes;

- Deterioration of the company's liquidity profile.

LIQUIDITY AND DEBT STRUCTURE

Robust Financial Flexibility: COMGAS's credit profile incorporates
sound liquidity position and proven access to credit to support
expected negative FCFs and some debt maturity concentration until
2025 totaling BRL3.5 billion. Fitch estimates the company to issue
around BRL2.0 billion during 2023 to support capex and debt
refinancing. On Dec. 31, 2022, cash and equivalents were BRL1.8
billion and total debt of BRL7.0billion consisted mainly of
BRL2.9billion of debentures and Banco Nacional de Desenvolvimento
Economico e Social (BNDES) loans of BRL2.3billion. Fitch believes
COMGAS has some room to reduce dividends, if needed, which adds to
its financial flexibility.

ISSUER PROFILE

COMGAS is the largest natural gas distributor in Brazil in volume
billed, with operations in 88 cities within its concession area of
177 municipalities in the state of Sao Paulo. The company assists
more than 2.4 million clients and is indirectly controlled by Cosan
S.A.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.

   Entity/Debt              Rating                 Prior
   -----------              ------                 -----
Companhia de Gas
de Sao Paulo –
COMGAS             LT IDR    BB      Affirmed        BB
                   LC LT IDR BBB-    Affirmed       BBB-
                   Natl LT   AAA(bra)Affirmed   AAA(bra)

   senior
   unsecured       Natl LT   AAA(bra)Affirmed   AAA(bra)

[*] BRAZIL: Expects Record Agricultural Harvest of 299.7M Tons
--------------------------------------------------------------
Richard Mann at Rio Times Online, citing Brazilian Institute of
Geography and Statistics, reports that Brazil, one of the world's
largest food producers, will have a record agricultural harvest of
299.7 million tons this year, 13.9 percent more than in 2022.

According to IBGE's March projections, the Brazilian cereal,
legume, and oilseed crop this year will be harvested on 76.1
million hectares, 3.9 percent more than in 2022, 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).



===========================
C A Y M A N   I S L A N D S
===========================

CALEDONIAN BANK: Creditors' Proofs of Debt Due June 26
------------------------------------------------------
The creditors of Caledonian Bank Limited are required to file their
proofs of debt by June 26, 2023, to be included in the company's
dividend distribution.

The company's liquidators are:

          EY Cayman Ltd
          62 Forum Lane, Camana Bay, PO Box 510,
          Grand Cayman, KY1-1106, Cayman Islands
          c/o Kelran Hutchison



=====================
E L   S A L V A D O R
=====================

EL SALVADOR: S&P Downgrades SCR to 'SD/SD' on Pension Debt Exchange
-------------------------------------------------------------------
On May 9, 2023, S&P Global Ratings lowered its sovereign credit
ratings on El Salvador to 'SD/SD' from 'CCC+/C'. S&P also affirmed
its 'CCC+' long-term issue ratings. S&P's transfer and
convertibility (T&C) assessment remains at 'AAA'.

Rationale

S&P said, "We lowered our sovereign credit ratings on El Salvador
to 'SD' following a pension debt exchange on April 28, which we
view as distressed owing to the government's limited financing
alternatives. Since the new terms became effective immediately, the
default has already been cured. Therefore, we plan to raise the
long-term and short-term ratings on May 10, most likely to 'CCC+'
and 'C', respectively."

The government of El Salvador offered private pension funds a mix
of three instruments with different maturities, interest rates, and
capital repayment profiles. Two of the new instruments match the
terms of the previously outstanding pension certificates, and the
third instrument has a higher interest rate, longer maturity, and
different repayment profile. The private pension funds decided to
allocate 99% of their portfolio to the third certificate that pays
a higher interest rate (7% instead of the 4.5% or 6% rate offered
on the previous certificates) but has a longer maturity (50 years
instead of 24 years or 44 years of outstanding maturities). The
amortization profile of these certificates does not have capital or
interest payments for the first four years. As a result, upon the
exchange, the government will have fiscal relief of around $500
million annually over the next four years (about 1.5% of GDP
annually).

S&P said, "In general, at such low ratings levels, we consider most
exchanges as distressed and tantamount to a default. We had
signaled, after the last two debt repurchases, that we would
analyze any subsequent debt exchange at this rating level on a
case-by-case basis and in the prevailing macroeconomic context. We
indicated that we could classify such exchanges as distressed,
indicating that, without the exchange, a conventional default could
ensue. Amid limited financing options, in our view, the government
is partly relying on the pension debt exchange to alleviate fiscal
spending needs by lowering debt service payments for the next four
years on pension-related financial debt. The fiscal relief provided
by the previous pension reform of 2017 (which we considered a
distressed exchange and tantamount to default) lasted for three to
five years and has already expired.

"We affirmed our long-term sovereign issue ratings at 'CCC+'
because the government has remained current on its capital and
interest payment on its Eurobonds. The government paid a sizable
bullet bond amortization in January 2023 for $604 million by
getting financing from multilateral lending institutions and
following two debt repurchases in 2022, which reduced the bullet
bond amortization (originally $800 million). However, the ratings
remain constrained by limited financing alternatives, heavy
reliance on short-term debt, high debt, and hefty debt service
payments, amid a weak payment culture. Dollarization also limits
monetary flexibility."




=============
J A M A I C A
=============

JAMAICA: BOJ Acted Too Soon in Raising Interest Rate, Says Mahfood
------------------------------------------------------------------
RJR News reports that some members of the private sector believe
the Bank of Jamaica (BOJ) acted too early in raising the policy
interest rate, despite the downward trend in inflation.

In an interview with Radio Jamaica News, John Mahfood, President of
the Jamaica Manufacturers and Exporters Association (JMEA), said
with inflation leveling off, the central bank needs to revise
downward the rate charged on overnight deposits, according to RJR
News.

"As I have always said, our inflation was caused by events outside
of Jamaica. Nothing that we did impacted inflation and I still
think the BOJ acted too aggressively. My hope is that as we [see]
sustained drop in the inflation rate, they will also start to bring
back down the [interest] rate because it is hurting the economy at
this level," he argued, the report notes.

The BOJ has held the policy interest rate at 7 per cent since
November last year, the report relays.

Since the third quarter of 2021, the central bank has been
increasing the policy interest rate, which then stood at 0.5 per
cent, in a bid to stem inflation, the report says.

The rise in the cost of goods has slowed to 6.2 per cent for the 12
months leading up to March, just outside the BOJ's target range of
4 to 6 per cent, the report notes.

Inflation peaked at 11.8 per cent in April last year, the report
discloses.

The next policy interest rate decision is due on May 19, 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: Imbert Seeks $3.58 Billion More
--------------------------------------------------
Anna Ramdass at Trinidad Express reports that the government's
single largest budget of $61.54 billion will be marked when Finance
Minister Colm Imbert comes to the Parliament seeking an additional
$3.58 billion, says Opposition MP Davendranath Tancoo.

Speaking at a news conference at the Opposition Leader's Port of
Spain office, Tancoo noted that the Parliament will be convened to
discuss the provisions to what has now come to be known as the
Mid-Year Review, according to Trinidad Express.

Tancoo noted that in October last year, during his budget
presentation, Imbert boasted about closing the fiscal deficit gap
and managing the resources of the country efficiently, the report
notes.

He said the minister "gloated" about the deficit being close to
balanced, at $1.51 billion for fiscal 2023 based on Government
revenues, of $56.2 billion and expenditure of $57.7 billion, the
report discloses.

Tancoo said having committed to already spending $57.7 billion in
2023, the Minister is now coming to the Parliament to seek an
additional $3.58 billion for a total proposed expenditure of $61.54
billion in the current fiscal year, the report notes.

"To put that into perspective, that is going to be the largest
single budget that this PNM Government has ever spent," said
Tancoo, the report relays.

He said this means that if Government revenues remains the same as
predicted, the deficit will grow to $5.35 billion or a "whopping"
255 per cent higher than what the Minister originally projected,
the report says.

                      Revenue Shortfall

He said it was already known that Government revenue is not going
to be what was expected, the report relays.

Tancoo noted that, Imbert in his budget presentation, estimated
revenue, premised on the price of oil in 2023 being US$92.50 per
barrel and natural gas at US$6 per mmbtu, the report discloses.

He pointed out that today natural gas is trading at US$2.36 per
mmbtu, less than half of what the Minister assumed in October 2022,
the report notes.

Brent Oil prices, he said, are trading at US$79.66 per barrel, or
more than US$10 lower than what the budget was based on, the report
relays.

Tancoo said it was obvious that with lower prices for oil and gas
than budgeted, the projected government revenue can be expected to
be much lower than expected, the report relays.

Lower revenue, he said, would mean that the actual deficit will be
even higher than the current $5.35 billion being projected by
Imbert, the report notes.

Tancoo said when he raised the issue in Parliament, about how the
Government was going to fund this shortfall in revenue caused by
falling energy prices Imbert in his "normal predictable arrogance"
tried to thwart the questions raised insisting that the government
does not use the price of energy that is provided in the budget and
they do not use barrels of oil as described, the report relays.

Tancoo noted that instead they used a negotiated price based on a
basket of product prices, the report says.

He said the fact is, the price of oil and gas is significantly
lower than budgeted, the report discloses.

"And so we wait to see whether the Minister will finally come clean
with the anticipated government revenues and truthfully advise how
this shortfall will be financed," he added, notes the report.

Tancoo questioned if the Government is going to be borrowing more
from the Heritage and Stabilisation Fund (HSF) or from
international sources, the report notes.

Tancoo reminded that Opposition members had challenged Imbert and
Ministers on whether budgetary allocations were sufficient, the
report relays.

He said the Standing Finance Committee records would show that
Ministers admitted what the Opposition already knew - that what was
allocated in the Budget was less than what was asked for, but they
were comforted in the sense that if they ran short, they would seek
additional funding in the Mid-Year Review, the report notes.

Tancoo said Imbert and the Government failed to be honest about the
anticipated expenditure and knowingly, left out substantial,
predictable and known financial commitments, which the Minister
knew would be due in fiscal 2023, the report relays.

Tancoo said Imbert would have known that the country would have to
pay these debts and he would have also known that funds will have
to be identified to meet these debts and there would be greater
drawdowns from the Consolidated Fund, the report says.

He said Imbert also knew that the budget deficit was substantially
higher, than the $5.35 billion projected, 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
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Information contained herein is obtained from sources believed to
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of the same firm for the term of the initial subscription or
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