/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/230515.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, May 15, 2023, Vol. 24, No. 97 Headlines A N T I G U A A N D B A R B U D A BED BATH & BEYOND: Pursuing Container Shipping Lines in Chapter 11 A R G E N T I N A ARGENTINA: Prices to Remain Stubbornly High, w/ 7.5% April Forecast B R A Z I L BR MALLS: Fitch Affirms 'BB' Foreign Currency IDR, Outlook Stable BRAZIL: Market Raises Economic Growth Forecast to 1% in 2023 D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Lowers Price of Gasoline After 60 Weeks DOMINICAN REPUBLIC: Regulation Discourages Solar Panels Investment M E X I C O BANCO AZTECA: Moody's Assigns Ba2 Deposit Ratings, Outlook Stable P A N A M A ENA NORTE: Fitch Affirms 'BB' Rating on $600M Notes, Outlook Stable P E R U PERU: Central Bank Chief Says Economy May Contract in Q1 P U E R T O R I C O AMERICAN FLAMINGO: Court Confirms Plan of Reorganization X X X X X X X X [*] BOND PRICING COLUMN: For the Week May 8 to May 12, 2023 - - - - - ===================================== A N T I G U A A N D B A R B U D A ===================================== BED BATH & BEYOND: Pursuing Container Shipping Lines in Chapter 11 ------------------------------------------------------------------ Greg Miller of FreightWaves reports that Bed Bath & Beyond filed for bankruptcy protection on April 23, 2023 and is closing all 475 of its stores. COVID-era supply chain disruptions played a key role in the company's demise. Now, the bankrupt retailer is pursuing tens of millions of dollars in claims against container shipping lines, which it alleges did not perform during the supply chain crisis. It filed a claim with the Federal Maritime Commission (FMC) seeking at least $31.7 million from OOCL, a subsidiary of China's Cosco. It's poised to pursue at least $7.8 million in claims against Taiwan's Yang Ming, according to a legal filing in the Southern District Court of New York. The question ahead: With Bed Bath & Beyond (BBB) in Chapter 11 and administrators looking to "maximize the value of the debtors' estates," will there be claims against other carriers as well? Failure to Meet Minimum Quantity Commitments BBB alleged in its FMC complaint that OOCL failed to meet minimum quantity commitments (MQCs) under its 2020 and 2021 service contracts. The retailer alleged that OOCL gave away BBB's allocated space "to other shippers to maximize [its] own profits," forcing BBB "to obtain space on the spot market at enormous expense during a period of unprecedented high spot rates." These allegations mirror those made by numerous other cargo shippers in the wake of the supply chain crisis, starting with MCS Industries' claims against Cosco and MSC in August 2021 and piling up ever since. BBB had an MQC for 2,100 forty-foot equivalent units under its July 1, 2020-June 30, 2021, contract with OOCL. It said there was a shortfall of 624 FEUs. It calculated that this equated to $2.2 million in additional shipping costs. BBB had an MQC for 3,796 FEUs under its May 1, 2021-April 30, 2022, service contract. It said OOCL came up 1,363 FEUs short, equating to $9.4 million in extra freight costs. Peak season surcharges, detention and demurrage charges BBB is also seeking reparations for peak season surcharges (PSSs) a new twist in shipper complaints against carriers. It argued that its contract rates were inclusive of PSSs and other surcharges. BBB cited correspondence from an OOCL employee who stated, "We admit to being short against expectations ... Consider paying a PSS [which would] put BBB in position to secure extra space." PSSs proposed by OOCL were as high as $5,800 per FEU, said BBB in its complaint. After the retailer agreed to a PSS in December 2020, it said the OOCL employee responded eight minutes later: "No worries! We are releasing the bookings." BBB alleged that OOCL was "auctioning its space to the highest bidder rather than meeting service commitments." The retailer also cited correspondence from an OOCL employee stating that on one voyage "what extra space [that] was available has been released to the open market" -- i.e., the spot market. OOCL has yet to file its response to the retailer'.s allegations with the FMC. BBB said it paid $7.1 million in PSS charges to OOCL during its 2020 contract period and $6.6 million during its 2021 contract period " and insisted it should get that money back. BBB also maintained that OOCL assessed demurrage and detention charges "for periods of time in which [BBB's] ability to pick up containers at the ports or return empty containers were constrained due to circumstances outside [its] control." Numerous shippers have also filed claims against ocean carriers related to detention and demurrage charges incurred during the supply chain crunch. BBB said it paid OOCL $1.5 million in demurrage charges and $4.9 million in detention charges between August 2021 and June 2022. It argued that substantial majority of the charges ¦ were unjustly and unreasonably assessed. Additional claims submitted to Yang Ming Meanwhile, Yang Ming filed a case against BBB in New York on April 20 seeking a declaratory judgment that it does not owe the retailer for failing to meet its MQC. Yang Ming said BBB has submitted a claim for $7.8 million "plus alleged lost profits and other consequential damages in an unspecified amount." The dispute relates to BBB's service contract for May 1, 2021-April 30, 2022, which had an MQC of 1,000 FEUs. According to Yang Ming, the contract stated that "in the event of the carrier(TM)s failure to meet the annual MQC ¦ the shipper may reduce the annual MQC by the amount of the shortfall." Yang Ming claimed that "this agreement provided no basis for pursuing money damages for such shortfalls. However, BBB continues to press its claim and warn of litigation." In response to the carrier's request for declaratory judgment, BBB said in a court filing Thursday that any action against it would require the bankruptcy judge to provide relief from the Chapter 11 automatic stay. Hard Hit by Supply Chain Crisis The spike in consumer demand during the pandemic supercharged earnings for container lines as well as retailers like Amazon (NYSE: AMZN) -- but not for Bed Bath & Beyond, which was heavily dependent on its brick-and-mortar stores. Holly Etlin, chief restructuring officer of BBB, cited the negative impact of 2020 lockdown closures on the company's stores in her Chapter 11 declaration. She also pointed to fallout from a pre-COVID corporate decision to shift from selling well-known national brands to private-label brands, following the hiring of Target veteran Mark Tritton as CEO in 2019" a decision that increased BBB's exposure to container shipping at exactly the wrong time. When the pandemic struck, the shift to private-label brands "resulted in longer lead times to produce and ship to stores compared to the more easily accessible national brands." Bed Bath & Beyond had also changed its domestic distribution strategy under Tritton. "The distribution strategy was not equipped for these changes to the upstream supply chain, nor resilient in the face of the pandemic-related issues that occurred at the Port of Los Angeles." "The company wound up with empty shelves as factory closures and shipping bottlenecks delayed the arrival of the new private-label goods. [BBB] was not able to achieve sufficient levels of inventory to meet demand over the important 2021 holiday season." According to Etlin, "During the third quarter of 2021, an estimated $100 million of sales were not fulfilled due to out-of-stocks, and in the fourth quarter of 2021, an estimated $175 million of sales were not delivered." Still Reliant on Supply Chain Amid Chapter 11 Tritton was pushed out in June 2022 and the company shifted away from private-label brands. But by the 2022 holiday season, it "did not have the financial flexibility to restock inventory levels due to persistently deteriorating liquidity and tightening vendor credit," Etlin said. Its stores were almost 35% out of stock by December 2022. "Following a holiday season in which sales fell nearly 50% from the same period the year before, [BBB] triggered multiple events of default under its financing facilities," she said. A last-ditch effort to sell heavily discounted equity didn't provide enough "runway," necessitating the Chapter 11 filings of the parent company and its subsidiaries. The company's stock (NASDAQ: BBBY) will be delisted Wednesday, May 3, 2023. Ironically, as damages are sought from container shipping lines for alleged transgressions in 2020-22, Etlin underscored the importance of their continued services. She said the functioning of supply chains "is critical to the efficient administration of these Chapter 11 cases. The debtors can ill afford severe disruption to their flow of merchandise at this critical juncture." As a result, Bed Bath & Beyond has secured court authorization to continue paying "warehousemen, freight vendors, ocean carriers, common or contract carriers, customs brokers and other shipping service providers" amid the bankruptcy proceedings. About Bed Bath & Beyond Bed Bath & Beyond Inc., together with its subsidiaries, is an omnichannel retailer selling a wide assortment of merchandise in the Home, Baby, Beauty & Wellness markets and operates under the names Bed Bath & Beyond, buybuy BABY, and Harmon, Harmon Face Values. The Company also operates Decorist, an online interior design platform that provides personalized home design services. At its peak, Bed Bath & Beyond operated the largest home furnishing retailer in the United States with over 970 stores across all 50 states, consistently at the forefront of major home and bath trends. Operating stores spanning the United States, Canada, Mexico, and Puerto Rico, Bed Bath & Beyond offers everything from bed linens to cookware to electric appliances, home organization, baby care, and more. Bed Bath & Beyond closed over 430 locations across the United States and Canada before filing chapter 11 cases, implementing full scale winddowns of their Canadian business and the Harmon branded stores. Left with 360 Bed Bath & Beyond and 120 buybuy BABY stores, Bed Bath & Beyond Inc. and 73 affiliated debtors on April 23, 2023, each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code to pursue a wind down of operations. The cases are pending before the Honorable Vincent F. Papalia and have requested joint administration of the cases under Bankr. D.N.J. Lead Case No. 23-13359. Kirkland & Ellis LLP and Cole Schotz P.C. are serving as legal counsel, Lazard Frares & Co. LLC is serving as investment banker, and AlixPartners LLP is serving as financial advisor. Bed Bath & Beyond Inc. has retained Hilco Merchant Resources LLC to assist with inventory sales. Kroll LLC is the claims agent. ================= A R G E N T I N A ================= ARGENTINA: Prices to Remain Stubbornly High, w/ 7.5% April Forecast ------------------------------------------------------------------- globalinsolvency.com, citing Reuters poll of analysts, reports that Argentina's monthly inflation rate for April is expected to clock in at 7.5%, keeping the annual rate at its quickest pace since the country emerged from a hyperinflation crisis in the early 1990s. Argentina, a major global grains supplier, is battling 12-month inflation above 100%, which is one of the highest rates globally, according to globalinsolvency.com. This is hurting the centre-left Peronist administration, which had hoped to ease financial pressure on voters ahead of a tough election challenge this October, the report notes. A median monthly forecast came from 20 analysts polled by Reuters, with estimates ranging from 7% to a maximum 8.3% monthly rise, the report notes. Official data for April is expected. Predictions are a modest improvement from the 7.7% recorded in March but still well above what the government had pledged earlier this year, the report relays. The country's soaring prices have largely been attributed to a bout of central bank money printing as well as ineffective measures to tame inflation such as price freezes on goods and preferential exchange rates for agricultural exports, the report discloses. Analysts said that pressures on prices were likely to persist, as the government struggles to prop up the peso currency which has tumbled in black market trading in recent weeks, the report says. Confidence in the government's ability to shore up the peso and fix the economy is evaporating, 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 =========== BR MALLS: Fitch Affirms 'BB' Foreign Currency IDR, Outlook Stable ----------------------------------------------------------------- Fitch Ratings has affirmed Aliansce Sonae Shopping Centers S.A.'s (Aliansce Sonae) National Long-Term Rating at 'AAA(bra)' and its wholly owned subsidiary BR Malls Participacoes S.A.'s (BR Malls) Long-Term Foreign Currency (FC) Issuer Default Rating (IDR) at 'BB', Long-Term Local Currency (LC) IDR at 'BBB-' and National Long-Term Rating at 'AAA(bra)'. In addition, Fitch also affirmed the ratings of secured and unsecured debentures at 'AAA(bra)'. The Rating Outlook for the corporate ratings is Stable. Aliansce Sonae's and BR Malls' ratings reflect their strong consolidated business position as the largest shopping mall operator in Brazil with a robust property portfolio, underpinned by huge asset base size, satisfactory portfolio granularity, high occupancy rates and pulverized tenant base. The ratings are supported by the strong and resilient operating cash flow generation and positive volumes of FCF, already tested along unstable economic cycles and considering the capital-intensive nature of the business. Also factored into the analysis are the healthy cash reserves, the conservative capital structure and relevant financial flexibility from strong pool of unencumbered assets that support the ample access to credit. KEY RATING DRIVERS Strong Business Profile: Aliansce Sonae and BR Malls' business combination resulted in the largest Brazilian shopping mall operator, with stake in 53 assets, that, together have 1.4 million sqm of own gross leasable area (GLA) and BRL27 billion of fair value of properties. Combined entity's property portfolio has a relevant asset base size, geographical presence in all Brazilian's regions and improved asset granularity. Ten largest assets represent about 40% of rental revenues, which compare with 60% to 70% from their individual portfolios. The transaction was concluded in January 2023 and included a BRL1.5 billion payment made by Aliansce Sonae to BR Malls' shareholders, besides share swaps. Preserved Long-Term Fundamentals: Long-term Brazilian mall industry fundamentals remain strong, even after the pandemic. The industry's trajectory is positive, unlike in developed markets. Mall penetration is still low and trending positively due to having more space directed to services, leisure and food. Factors such as location, security and weather also support the country's sector. Pandemic contributed to increased e-commerce sales channels and operators are seeking to develop investment strategies to incorporate these new trends. Issuers are further exploring various partnerships to drive customer traffic to malls and provide new shopping experiences. Quick Operational Rebound: Aliansce Sonae's and BR Malls' credit indicators are fully recovered from the pandemic. Tenant sales surpassed 2019 since 4Q21, which allowed them to reduce discounts and readjust rents by inflation. Both companies have maintained consistently solid occupancy rate, above 95%, with limited volatility through the cycles. Fitch expects limited impact on delinquency from some relevant Brazilian retailers' distressed situation given the fragmented nature of the client basis. Top 10 tenants represent less than 20% of annual rent. Robust Operating Cash Flow Generation: Fitch projects combined entity to generate BRL1.8 billion of EBITDA and BRL900 million of CFFO in 2023, and BRL1.9 billion and BRL1.2 billion in 2024, respectively, with a gradual growing trend onwards. On an individual basis, Aliansce Sonae reported BRL837 million of EBITDA in 2022 and BR Malls, BRL1 billion. EBITDA margins should remain in the range of 70% to 73%. Cash flow generation and operating margins benefit from predictable revenue flow from medium-term rental contracts and low-cost structure, as tenants are responsible for most maintenance costs. Low Integration Risk: Fitch considered that the business combination's integration risk is low. Aliansce Sonae has a positive track record in integrating assets acquired in the past. Base-case does not incorporate relevant GLA expansions in the short-term. The company is focused on integrating its operations with BR Malls, which translates in strong FCF generation before dividends. Synergies are expected in the range of BRL180 million to BRL210 million to be captured until 2028. Fitch forecasts annual investments in the range of BRL450 million to BRL600 million, and dividends of BRL293 million in 2023, growing to BRL500 million to BRL600 million onwards, resulting in FCF of BRL10 million in 2023 and BRL260 million in 2024. Rating case considers the BRL1.5 billion payment to BR Malls' shareholders in 2023, financed by the cash reserve at YE 2022, besides a receipt of BRL587 million from divestitures scheduled for 2023/24. Conservative Capital Structure Maintained After Merger: Aliansce Sonae's deleveraged capital structure allowed it to absorb the transaction with BR Malls, without materially pressuring the consolidated credit metrics. Net leverage should remain below 3.0x in 2023 and 2024, supported by the strong operating cash flow generation of the combined entity. Combined company reported, on a proforma basis, net debt/EBITDA ratio of 1.9x in 2022, and, on an individual basis, Aliansce Sonae reported 1.3x and BR Malls, 2.5x. Net loan-to-value (LTV) is robust, below 20%. Equalized Credit Profiles: Fitch understands that Aliansce Sonae and BR Malls have an equalized credit profile, as per its Parent and Subsidiary Linkage Rating Criteria. Both companies are experienced and well positioned shopping mall operators in Brazil, with adequate sources of capital with the scale necessary to be meaningful issuers in the domestic debt and equity capital markets. Country Ceiling Constrain: BR Malls' FC IDR is constrained by Brazil's 'BB' Country Ceiling since its operations are entirely domiciled in Brazil and all revenues are generated in domestic currency. BR Malls' 'BBB-' LC IDR reflects its credit quality, not considering transfer and convertibility (T&C) risk. DERIVATION SUMMARY Aliansce Sonae's and BR Malls' National Long-Term Ratings compare well with Iguatemi Empresa de Shopping Centers S.A. (AAA(bra)/Stable) and Multiplan Empreendimentos Imobiliarios S.A. (AAA(bra)/Stable). These companies have material operating scale and expertise in shopping mall management. They also have strong liquidity, conservative capital structures underpinned by low financial leverage, adequate debt-amortization profiles, reduced LTV ratios and material pools of unencumbered assets. BR Malls' LC IDR 'BBB-' compare well with other Latin America real estate peers in the 'BBB' rating category, such as CIBanco, S.A., Institucion de Banca Multiple, Fideicomiso Numero CIB/3332 (Fibra Soma, FC IDR BBB-) and CIBANCO, S.A., Institucion de Banca Multiple, Trust F/00939 (Fibra Terrafina, FC IDR BBB-), considering their strong property portfolio. BR Malls has lower leverage ratios as it operates in a country with higher interest rates. General Shopping e Outlets do Brasil S.A. (FC IDR CC) has a rating well below its peers, as it has a weak capital structure, limited cash flow generation capacity, a weakened asset base and a reduced ability to serve interest expenses. KEY ASSUMPTIONS Fitch's Key Assumptions Within the Rating Case for the Issuer: - Rental adjusted by inflation; - Occupancy rate close to 97%; - Investments of BRL600 million in 2023 and BRL465 million in 2024; - Disbursement of BRL1.5 billion to BR Malls' shareholders in 2023; - Dividends of BRL293 million in 2023 and BRL502 million in 2024. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: - Aliansce Sonae's National Rating cannot be upgraded, as it is at the highest level of the scale; - BR Malls' LT FC and LC IDRs could be positively affected by a positive rating action on the sovereign rating of Brazil and/or an upgrade of its Country Ceiling. Factors that could, individually or collectively, lead to negative rating action/downgrade: - Aliansce Sonae's National Rating could be negatively affected by net debt/EBITDA ratio consistently above 3.5x, deterioration of the conditions of lease contracts, occupancy rates and delinquency negatively affecting credit indicators, interest coverage index, measured by EBITDA/interest paid, consistently trending to levels below 2.5x, and/or substantially less financial flexibility due to the reduction of unencumbered assets levels; - BR Malls' LT FC and LC IDRs could be negatively affected by a negative rating action on the sovereign rating of Brazil and/or a downgrade of its Country Ceiling; - BR Malls' ratings would be downgrade in a scenario of downgrade of Aliansce Sonae's rating; - BR Malls' ratings could be negatively affected by a perception of a weakening of its stand-alone credit profile coupled with weakening of legal, strategic and operational incentives between Aliansce Sonae and BR Malls; - BR Malls' National Rating would be downgraded in a scenario of downgrade superior than one notch in its LC IDR. LIQUIDITY AND DEBT STRUCTURE Strong Liquidity: Aliansce Sonae has historically maintained strong cash reserves and extended debt profile. Proforma cash position was BRL2.8 billion at YE 2022, and was strengthened by a BRL612 million long-term debt issued in March 2023. The cash position in March 2023 and the expected BRL336 million cash inflow from asset divestitures in 2023 should support the BRL2.2 billion debt due up to 2024 and the BRL1.5 billion payment to BR Malls' shareholders. Aliansce Sonae's financial flexibility is enhanced by its multiple access to financing and large pool of high-quality unencumbered assets. Fair value of properties of the combined entity was BRL27 billion at YE 2022, of which BRL21 billion refer to unencumbered assets, for BRL3.1 billion of unsecured debt (BRL6.4 billion of total debt). Debt is denominated in local currency with a low cost. Interest coverage is strong, above 2.5x. ISSUER PROFILE Aliansce Sonae and BR Malls are the largest shopping mall operators in Brazil. Their portfolio of assets comprises stakes in 53 assets that, together, have 1.4 million sqm of GLA, in addition to the management of 11 third-party assets. The companies concluded their business combination in January 2023. SUMMARY OF FINANCIAL ADJUSTMENTS - Fitch excludes linearization effect from revenues; - Fitch excludes asset sale impact from EBITDA; - Fitch excludes changes in fair value of properties from BR Malls' EBITDA; - Fitch excludes stake in BR Malls from Aliansce Sonae's readily available cash; - Fitch excludes investments in Real Estate funds from BR Malls' readily available cash. 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 Recovery Prior ----------- ------ -------- ----- BR Malls Participacoes S.A. LT IDR BB Affirmed BB LC LT IDR BBB- Affirmed BBB- Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) Aliansce Sonae Shopping Centers S.A. Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) senior secured Natl LT AAA(bra) Affirmed AAA(bra) BRAZIL: Market Raises Economic Growth Forecast to 1% in 2023 ------------------------------------------------------------ Rio Times Online reports that the Brazilian financial market raised from 0.96 to 1.00 percent the estimate of Gross Domestic Product (GDP) growth for this year and maintained the forecast at 1.41 percent for next year, the Central Bank of Brazil disclosed. According to the Focus survey conducted by the central entity among the country's main financial institutions, the market estimate for inflation was modified from 6.04 to 6.05 percent for the end of 2023 and maintained at 4.18 percent for 2024, the report discloses. Brazil's official inflation target is 3.25 percent in 2023, according to Rio Times Online. About Brazil Brazil is the fifth largest country in the world and third largest in the Americas. Luiz Inacio Lula da Silva won the 2022 Brazilian general election. He was sworn in on January 1, 2023, as the 39th president of Brazil, succeeding Jair Bolsonaro. As recently reported in the Troubled Company Reporter-Latin America, Fitch Ratings, in December 2022, affirmed Brazil's Long-Term Foreign Currency Issuer Default Rating (IDR) at 'BB-' with a Stable Outlook. The ratings are constrained by high government indebtedness, a rigid fiscal structure, weak economic growth potential, and a record of governability challenges that have hampered efforts to address these fiscal and economic issues and clouded policy predictability. The Stable Outlook reflects Fitch's expectation that growth will slow in the coming year and that recent fiscal improvement will erode under a new government, but within a margin consistent with the current rating, and from a better starting point than previously expected. Uncertainty is elevated regarding the plans of the incoming government and the extent to which these could ease or aggravate fiscal and economic challenges. However, Fitch does not expect policies that jeopardize broad economic stability. Standard & Poor's affirmed its 'BB-/B' long- and short-term foreign and local currency sovereign credit ratings on Brazil, and the outlook remains stable (June 2022). The stable outlook reflects S&P's base-case assumption that Brazil will maintain its fiscal anchors over the next two years despite an increasing interest burden, preventing significant fiscal slippage and limiting the rise in its already high debt burden. Moody's credit rating for Brazil was last set at Ba2 in 2018 with stable outlook. Moody's affirmed the Ba2 issuer ratings and senior unsecured bond ratings in April 2022. DBRS's credit rating for Brazil is BB (low) with stable outlook (March 2018). =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Lowers Price of Gasoline After 60 Weeks ----------------------------------------------------------- Dominican Today reports that the price of a barrel of oil has fallen in international markets, but so far it has not been reflected in the country. The Ministry of Industry and Commerce and MSMEs (MICM) ordered a reduction in local fuel prices, at a time when the price of a barrel of WTI crude (West Texas Intermediate) is falling in the New York market, according to Dominican Today. Gasoline dropped between one and two pesos and RD$3.00 per gallon was reduced only for LPG, the report notes. Fuel prices have remained high since world oil was trading at a high price and people expected further declines, as the government promised cuts as long as oil sold below $85, the report relays. About Dominican Republic The Dominican Republic is a Caribbean nation that shares the island of Hispaniola with Haiti to the west. Capital city Santo Domingo has Spanish landmarks like the Gothic Catedral Primada de America dating back 5 centuries in its Zona Colonial district. Luis Rodolfo Abinader Corona is the current president of the nation. TCRLA reported in April 2019 that the Dominican To related that Juan Del Rosario of the UASD Economic Faculty cited a current economic slowdown for the Dominican Republic and cautioned that if the trend continues, growth would reach only 4% by 2023. Mr. Del Rosario said that if that happens, "we'll face difficulties in meeting international commitments." An ongoing concern in the Dominican Republic is the inability of participants in the electricity sector to establish financial viability for the system. Fitch Ratings, in December 2021, revised the Outlook on Dominican Republic's Long-Term Foreign-Currency Issuer Default Rating (IDR) to Stable from Negative and affirmed the IDRs at 'BB-'.The revision of the Outlook to Stable reflects the narrowing of Dominican Republic's government deficit and financing needs since Fitch's last review resulting in the stabilization of the government debt/GDP ratio, as well as the investment-driven economic momentum, reflected in the faster-than-expected economic recovery in 2021 that Fitch expects to carry into above-potential GDP growth during 2022 and 2023. Standard & Poor's, also in December 2021, revised its outlook on the Dominican Republic to stable from negative.S&P also affirmed its 'BB-' long-term foreign and local currency sovereign credit ratings and its 'B' short-term sovereign credit ratings. The stable outlook reflects S&P's expectation of continued favorable GDP growth and policy continuity over the next 12 to 18 months that will likely stabilize the government's debt burden, despite lack of progress with broader tax reforms, S&P said.A rapid economic recovery from the downturn because of the pandemic should mitigate external and fiscal risks. Moody's affirmed the Dominican Republic's long-term issuer and senior unsecured ratings at Ba3 and maintained the stable outlook in March 2021. DOMINICAN REPUBLIC: Regulation Discourages Solar Panels Investment ------------------------------------------------------------------ Dominican Today reports that a regulation prepared by the Superintendency of Electricity would significantly hinder investment in solar panels due to the obstacles it imposes, said RD 100% Renewable, a coalition of cooperatives, solar system installers, and environmental organizations. Ramon Antonio Diaz of the Maimon Cooperative, who acted as spokesperson, said that the regulation discourages the installation of solar panels on roofs, as it imposes a fixed cost and charges for power, installation requests, and inspection visits, the report notes. He explained that the regulation establishes a complicated procedure that those interested in installing solar panels on roofs must comply with before the electricity distributor accepts their application and installs the bi-directional meter, the report relays. In a press conference at the Vizcaya restaurant, Diaz said that the regulation is a "real obstacle course" that discourages investment in solar panels, the report discloses. Diaz said that with the regulation, the Superintendence of Electricity is doing the opposite to stimulate the self-consumption of electricity, the report says. He expressed that, contrary to what happens here, in the United States and Spain, families are encouraged to install solar panels on their roofs, providing them with money or credit for acquiring the equipment and paying for the installation, the report notes. The spokesman pointed out that in the United States, the Government considers solar panels as an essential part of the strategy to face inflation because it allows the family to use the savings from the payment of the electricity bill to meet their food, education, and health needs, the report relays. It was further noted that in Bangladesh, a massive solar panel installation program is being developed to dismantle the electricity subsidy that is stifling its economy and generating indebtedness as it is happening in this country, the report notes. He explained that in many countries, the interested party installs solar panels on the roof of their home and then contacts the electricity distribution company to install the bi-directional meter without any prior formalities, the report says. Diaz wondered if the country wants to expand solar panels on roofs if it forces interested families to pay a fixed fee for the panels, the report notes. He further stated that the approval and application of the regulation would make practically impossible the realization of the project elaborated by RD 100% Renovable together with the Ministry of Energy and Mines, with the purpose of installing in three years solar panels on the roofs of 180,000 houses to the installation of 600 megawatts,the report relays. He pointed out that this project seeks to reduce the distributors' electricity subsidy and the millionaire losses, the report discloses. Diaz also called on the Superintendence of Electricity to align itself with the whole Government in the fight against climate change and with the zero carbon policy proclaimed by President Luis Abinader on April 21 at the National Palace, the report adds. About Dominican Republic The Dominican Republic is a Caribbean nation that shares the island of Hispaniola with Haiti to the west. Capital city Santo Domingo has Spanish landmarks like the Gothic Catedral Primada de America dating back 5 centuries in its Zona Colonial district. Luis Rodolfo Abinader Corona is the current president of the nation. TCRLA reported in April 2019 that the Dominican To related that Juan Del Rosario of the UASD Economic Faculty cited a current economic slowdown for the Dominican Republic and cautioned that if the trend continues, growth would reach only 4% by 2023. Mr. Del Rosario said that if that happens, "we'll face difficulties in meeting international commitments." An ongoing concern in the Dominican Republic is the inability of participants in the electricity sector to establish financial viability for the system. Fitch Ratings, in December 2021, revised the Outlook on Dominican Republic's Long-Term Foreign-Currency Issuer Default Rating (IDR) to Stable from Negative and affirmed the IDRs at 'BB-'.The revision of the Outlook to Stable reflects the narrowing of Dominican Republic's government deficit and financing needs since Fitch's last review resulting in the stabilization of the government debt/GDP ratio, as well as the investment-driven economic momentum, reflected in the faster-than-expected economic recovery in 2021 that Fitch expects to carry into above-potential GDP growth during 2022 and 2023. Standard & Poor's, also in December 2021, revised its outlook on the Dominican Republic to stable from negative.S&P also affirmed its 'BB-' long-term foreign and local currency sovereign credit ratings and its 'B' short-term sovereign credit ratings. The stable outlook reflects S&P's expectation of continued favorable GDP growth and policy continuity over the next 12 to 18 months that will likely stabilize the government's debt burden, despite lack of progress with broader tax reforms, S&P said.A rapid economic recovery from the downturn because of the pandemic should mitigate external and fiscal risks. Moody's affirmed the Dominican Republic's long-term issuer and senior unsecured ratings at Ba3 and maintained the stable outlook in March 2021. =========== M E X I C O =========== BANCO AZTECA: Moody's Assigns Ba2 Deposit Ratings, Outlook Stable ----------------------------------------------------------------- Moody's Investors Service has assigned long and short-term local and foreign currency deposit ratings of Ba2 and Not Prime, respectively, to Banco Azteca, S.A. At the same time, Moody's also assigned Banco Azteca long and short-term counterparty risk ratings, both in local and foreign currency, of Ba1 and Not Prime, as well as long and short-term counterparty risk assessments (CRA) of Ba1(cr) and Not Prime(cr), a Baseline Credit Assessment (BCA) of ba3 and an adjusted BCA of ba3. The outlook on the long-term deposit rating is stable. RATINGS RATIONALE Banco Azteca's ba3 BCA acknowledges the bank's well-established franchise in the consumer lending market in Mexico, with a long-track record of high asset risks that reflect the business focus on low-income individuals and a concentrated corporate loan portfolio. The bank's exposure to related-party lending has historically been higher than that of most banks in the country, indicating high interlinkages with the conglomerate, which also considers high dividend payout ratios. The ba3 BCA also incorporates Banco Azteca's adequate capitalization, and high net interest margins, which are supported by its steady access to a granular and low-cost retail deposit base that help compensate the intrinsically high credit and operating cost of its business model. The bank primarily focuses on unsecured consumer lending to low-to-middle-income households reached through the group's retail stores, a portfolio that represented 66% of gross loans in December 2022. Compared to other banks in Mexico, overall nonperforming loan (NPL) ratio reported by Banco Azteca, measured as Stage-3 loans under IFRS, stood at 4.0% of total loans in December 2022, which, considering charge-offs for the last 12 months increased to 9.6% at the end of 2022. Although problem loan ratio remained relatively stable compared to one year prior, Banco Azteca's asset quality metrics has historically been well above the system's average, which at the end of 2022 stood at 2.1% and 3.6% respectively. However, considering the bank's riskier asset profile, reserves for loan losses are also maintained well above market levels, covering by 255% its Stage 3 assets in December 2022, and 100% when including the charge-offs. Under the challenging operating environment in Mexico, the bank will likely continue to reinforce provisioning buffers against potential losses, and asset quality will likely further deteriorate amid high lending rates and elevated inflation that will continue to pressure households' disposable income and debt repayment capacity. While Banco Azteca has been able in increase loan diversification beyond its core business, the commercial loan book has high single-borrower concentrations, exposing the bank to rapid deterioration in asset quality and adding volatility to its earnings profile. In December 2022, Azteca's top 20 largest exposures represented about 1.7x tangible common equity (TCE). An additional key risk arises from its high level of related-party loans that could lead to conflicts of interest stemming from the closely held family-based ownership structure. Among its 10 largest corporate exposures, 20% are to related party companies that represent 32% of TCE in December 2022. Banco Azteca has reported higher-than-the-system loan growth since 2020, supported by the higher interest rates that will continue to support future earnings generation and ample net interest margins (NIM). However, the bank's elevated cost of credit and high operating costs pressure bottom line results. In December 2022, net income to tangible assets stood at just 1.0% (0.6% in 2021), below historic levels and below profitability levels reported by largest banks in Mexico (average of 1.9% in 2022), despite its increased NIMs that reached 26.6% in December 2022 (25.0% in 2021). Historically, the bank maintains a steady access to granular and inexpensive retail deposit base, which reduces the vulnerability to confidence sensitive funding and refinancing risks, particularly in times of tighter financial markets. This funding mix benefits its liquidity structure that remained ample, at about 38.3% of assets as of December 2022, providing adequate financial flexibility as it continues to expand the portfolio. Banco Azteca's Ba2 global deposit ratings benefit from one notch of uplift from the ba3 standalone BCA, by the incorporation of Moody's assessment of a moderate probability of government support. This assessment reflects the bank's important market share within the consumer lending business and its focus on low-income individuals that are underserved by the largest commercial banks in the country. The assigned ratings also incorporate environmental, social and governance (ESG) considerations, as per Moody's Investors Service's General Principles for Assessing Environmental, Social and Governance Risks Methodology. Moody's assessment of the bank's exposure to governance risks is highly negative, reflected in a Governance Issuer Profile Score (IPS) of G-4, largely as Banco Azteca is part of Grupo Salinas, a large Mexican group engaged in the retail, media and financial businesses, with a family-based ownership structure and concentrated decision taking, and the bank's high levels of related-party lending, with strong engagement in a number of intercompany activities. However, as regulated financial entity In Mexico, the bank's compliance and reporting are in line with regulatory standards. The stable outlook is a reflection of Moody's view that Banco Azteca's credit profile will remain stable over the next 12-18 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Upward pressure on Banco Azteca's BCA and deposit ratings could arise if tangible common equity ratio and profitability indicators improve consistently in the coming 12-24 months; and as the balance sheet concentration and related-party exposures are reduced, which could be an indication of diminished exposure to unexpected losses. Conversely, downward pressure to the deposit ratings could develop from either a downgrade of the bank's ba3 BCA that could be lowered if credit conditions in Mexico deteriorate with a substantial impact to the bank's asset quality metrics, that would most likely hit earning generation capacity through sudden increment in provisioning expenses. A weaker capital position would also have negative implications to the bank's BCA. The principal methodology used in these ratings was Banks Methodology published in July 2021. =========== P A N A M A =========== ENA NORTE: Fitch Affirms 'BB' Rating on $600M Notes, Outlook Stable ------------------------------------------------------------------- Fitch Ratings has affirmed the Long-Term rating on ENA Norte Trust's (ENA Norte) USD600 million notes at 'BB' and the national Long-Term rating at 'A+(pan)'. The Rating Outlook is Stable. The standalone credit profile (SCP) is assessed at 'b+'. RATING RATIONALE ENA Norte's ratings reflect a strong and mature asset with a long operational track record. The project has the contractual ability to adjust tolls according to inflation. However, given tolls have not been increased since the issuance of the notes, Fitch continues to assume that tolls will remain unchanged over the life of the notes. ENA Norte's debt structure is robust as the totality of the toll revenue is dedicated to cover operational and financial obligations and has allowed for the project's gradual deleveraging. Under Fitch's Rating Case, minimum Loan Life Coverage Ratio (LLCR) is 0.5x in 2028, which indicates the debt is not fully repaid at maturity. Despite this, the SCP is supported by Fitch's view that the concessionaire will be able to refinance its debt considering the below 1x leverage expected at maturity and the government's ability to implement credit protection measures to enable the concessionaire to refinance and/or repay its debt. According to Fitch's Government-Related Entity criteria, the agency's strong assessment for the strength of the link between the Panamanian government and the project, and a moderate assessment of the perceived incentive of government support when needed, in combination with the four-notch distance between the issuer's SCP at 'b+' and Panama's sovereign rating at 'BBB-'/Stable, results in a top-down minus two approach, as described in Fitch's applicable criteria. The national scale rating of 'A+(pan)' with a Stable Outlook reflects ENA Norte's credit quality relative to other rated issuers and issuances within Panama. KEY RATING DRIVERS Limited Volume Risk - Revenue Risk (Volume): Midrange: The corridor operates in a strong reference market, the city of Panama, with a long track record of traffic, showing moderate volatility, and plays an important connectivity role for commuters and commercial traffic within the city's broader road network. Given the recent infrastructure changes in the city, the assets face competition from free alternatives and other transportation modes. Fixed Toll Rates - Revenue Risk (Price): Weaker Although the concessionaire is entitled to annually adjust toll rates at inflationary levels, toll rates have not been increased by inflation and are not expected to be updated in the medium term. Toll rates are structurally protected with a covenant that prohibits toll rate reductions if the debt service coverage ratio (DSCR) does not meet a minimum threshold. Suitable Infrastructure Plan - Infrastructure Development and Renewal: Midrange Sound contractual requirements to fund capex costs are in place for the corridors. According to the independent engineer, the physical condition of Corridor Norte is not at its best and requires immediate major maintenance. The concessionaire has short- and medium-term maintenance plans in place to perform the work required in certain sections of the corridors. The capital investment program is internally funded. Conservative Debt Structure - Debt Structure: Stronger ENA Norte Trust's debt structure has fixed interest rate, full cash sweep of excess cash flows and has a six-month debt service reserve account for interest payments. Financial Profile Under Fitch's rating case, ENA Norte's minimum LLCR in the rating case is 0.5x and is very weak according to Fitch's applicable criteria, and debt is not fully repaid at its maturity in 2028 (USD18 million are estimated to remain outstanding). Nonetheless, the rating is supported by Fitch's belief that the low expected leverage at maturity will enable the concessionaire to refinance the notes and that the Government of Panama has the capacity and motivation to find a suitable solution for the notes before maturity. PEER GROUP ENA Norte is comparable with Autopistas del Sol (AdS; 'B'/Stable). Both projects provide critical connectivity within their respective areas and are subject to increasing competition from free alternatives, but Fitch assesses Price Risk as Weaker for ENA Norte and as Midrange for AdS. AdS's average DSCR is higher at 1.2x than the 0.5x coverage metric of ENA Norte, whose ratings are supported by the government's ability to implement credit protection measures and the ability to refinance the debt in the medium term. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Traffic performance materially worse than Fitch's rating case projection of 142,570 Average Annualized Daily Traffic (AADT) for 2023; - If Government delays taking timely actions to either refinance the debt or create conditions for the debt payment; - Multi-notch downgrade on Panama's sovereign rating. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Government actions that create better conditions for ENA Norte to repay its debt. CREDIT UPDATE In 2022, AADT reached 136,750 vehicles, representing 79% of 2019's AADT and below Fitch's expectation of an 85% recovery of pre-pandemic traffic. Revenues totaled USD66.9 million, also below Fitch's expectation of USD69.5 million, mainly driven by a lower-than-expected volume. According to the issuer, this slower traffic and revenue recovery was caused by a sluggish start of the year due to the Omicron variant of the coronavirus, a lengthier back-to-the-office process from commuters, and high fuel prices. Also, during July 2022, there were social protests in Panama due to rising costs of fuel, that caused temporary closures of the corridors. The government has since implemented measures to appease the protests. Cash flow available for debt service (CFADS) in 2022 was 3% above expected mainly, because the project had lower than forecast expenses, considering that capex was USD2 million lower than projected given the postponement of the replacement of some of the road's concrete plates until 2023. Operational Expenses (opex) were in line with Fitch's expectations at USD13.4 million. Debt prepayments were also made according to Fitch's estimates at USD32.9 million. As of March 2023, the trust maintains a debt service reserve account equivalent to two quarterly interest payments (six months) at USD6.8 million. FINANCIAL ANALYSIS Fitch 'sbase case assumes traffic grows at an annual rate of 10.5%, 7.4% and 6.9% in 2023, 2024 and 2025, respectively, followed by a CAGR of 2.5%. Toll rates are assumed to remain fixed for the term of the debt. Opex were adjusted to assume a gradual increase to reach around USD13 million in 2024, the amount observed in 2019 in real basis, adding a 5% stress to both opex and capex. Inflation is projected at 2.5% in 2022, 2.0% in 2023 and 1.5% onwards. Under this scenario, LLCR minimum is 1x (in 2023) and debt is tightly but fully paid at maturity. Fitch's rating case assumes traffic grows at an annual rate of 8.8%, 5.0% and 4.5% in 2023, 2024 and 2025, respectively, followed by a CAGR of 2.0%. Opex and capex assumptions are in line with those of Fitch's base case but with an additional 2.5% stress. Tolls and inflation are projected with the same assumptions as in Fitch base case. Under this scenario, LLCR is 0.5x and debt is not paid at maturity (2028), with a remaining balance of around than 3% of the original debt amount or USD18 million. This coverage is weak for ENA Norte's SCP rating, according to Fitch's applicable criteria. However, the SCP is supported by Fitch's view that the concessionaire will be able to refinance its debt considering the below 1x leverage expected at maturity and the government's ability to implement credit protection measures to enable the concessionaire to repay its debt. SECURITY The Panama-Madden Segment (corridor Norte) is a 13.5-kilometer (8.4-mile) toll road that intersects Phase I on the eastern end and runs northwest, connecting to the Interstate Colon Highway. ENA Norte operates the toll road concession of Corridor Norte and has no other significant commercial activities. ENA Norte is a subsidiary of Empresa Nacional de Autopista S.A. (ENA). ENA is an entity wholly owned by the government of Panama, with the purpose of acquiring companies that have been granted concessions for the construction, maintenance and operation of toll roads. 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 ----------- ------ ----- ENA Norte Trust ENA Norte Trust /Debt/1 LT LT ENA Norte Trust 29248DAA0 LT BB Affirmed BB ENA Norte Trust USP3716XAA74 LT BB Affirmed BB ENA Norte Trust/Debt/1 Natl LT Natl LT ENA Norte Trust 29248DAA0 Natl LT A+(pan) Affirmed A+(pan) ENA Norte Trust USP3716XAA74 Natl LT A+(pan) Affirmed A+(pan) ======= P E R U ======= PERU: Central Bank Chief Says Economy May Contract in Q1 -------------------------------------------------------- globalinsolvency.com, citing Reuters, reports that the economy of Peru, the world's No.2 copper producer, may have contracted in the first quarter, though the most likely scenario is for no growth at all, the head of the Andean nation's central bank Julio Velarde said. The grim outlook comes after neighboring Chile upwardly revised its forecast for annual economic growth this year to 0.3%, reversing a previous estimate of a 0.7% contraction, according to globalinsolvency.com. The central bank at the end of March cut its estimate for 2023 economic growth to 2.6%, from a previous view of 2.9%, as massive protests have stunted economic activity and due to the impacts of heavy rains, the report notes. "We are more so expecting growth close to zero (percent), it could even be negative, partly due to the protests that strongly affected January and also due to climatic factors that affected March," Velarde told reporters, the report says. For 2024, the central bank projects the economy will expand by 3.0%, the report adds. ===================== P U E R T O R I C O ===================== AMERICAN FLAMINGO: Court Confirms Plan of Reorganization -------------------------------------------------------- Judge Edward A. Godoy has entered an order confirming American Flamingo LLC's Plan of Reorganization dated March 31, 2023. Under American Flamingo's Amended Chapter 11 Plan of Reorganization, each holder of an Allowed General Unsecured Claim will receive 100% of the amount of such holder's Allowed General Unsecured Claim, plus 5% payable in 60 monthly installments commencing as of the Effective Date. However, there are no Unsecured Claims in this case. All cash necessary to make payments and Plan Distributions shall be obtained from the cash of the Reorganized Debtors as generated from its operations and the cash held in the Contested Claims Reserve, if any, as applicable. Counsel for the Debtor: Hector Eduardo Pedrosa-Luna, Esq. P.O. Box 9023963 San Juan, PR 00902-3963 Tel: (787) 756-7880 Tel: (787) 920-7983 Fax: 787-754-1109 E-mail: hectorpedrosa@gmail.com A copy of the Plan of Reorganization dated March 31, 2023, is available at https://bit.ly/3KdZcnd from PacerMonitor.com. About American Flamingo American Flamingo LLC is a Single Asset Real Estate (as defined in 11 U.S.C. Sec. 101(51B)). It is engaged in the business of leasing office spaces in San Juan, Puerto Rico. At the present time, American Flamingo owns an office located at 644 Fernandez Juncos Avenue, Suite 203, San Juan, PR 00907. American Flamingo sought Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No. 22-01290) on May 5, 2022. In the petition filed by John Hanratty, as member, American Flamingo estimated assets between $500,000 and $1 million and liabilities between $500,000 and $1 million. The Law Offices of Hector Eduardo Pedrosa Luna is the Debtor's counsel. =============== X X X X X X X X =============== [*] BOND PRICING COLUMN: For the Week May 8 to May 12, 2023 ----------------------------------------------------------- Issuer Cpn Price Maturity Country Curr ------ --- ----- -------- ------- ---- QNB Finance 3.4 75.4 10/21/2039 KY AUD QNB Finance 13.5 55.7 10/06/2025 KY TRY QNB Finance 2.9 75.3 12/04/2035 KY AUD Ruta del Maipo 2.3 53.5 12/15/2024 CL CLP Santander Consumer 2.9 73.1 11/27/2034 CL AUD Seagate HDD Cayman 3.4 73.4 07/15/2031 KY USD Seazen Group 4.5 63.6 07/13/2025 KY USD Silk Road Investments 2.9 68.8 01/23/2042 KY AUD Simpar Finance 10.8 73.8 02/12/2028 BR BRL Simpar Finance 10.8 73.8 02/12/2028 BR BRL Skylark 1.8 58.2 04/04/2039 KY GBP KWG Group Holdings 7.4 15.8 01/13/2027 KY USD KWG Group Holdings 6 40.8 01/14/2024 KY USD KWG Group Holdings 5.9 22.2 11/10/2024 KY USD KWG Group Holdings 6.3 17.6 02/13/2026 KY USD KWG Group Holdings 7.4 26.5 03/05/2024 KY USD KWG Group Holdings 6 19.4 08/10/2025 KY USD KWG Group Holdings 6 16.8 08/14/2026 KY USD KWG Group Holdings 7.9 27.5 08/30/2024 KY USD KWG Group Holdings 7.9 60.2 09/01/2023 KY USD Telecom Argentina SA 1 56.5 02/10/2028 AR USD Telecom Argentina SA 1 64.2 03/09/2027 AR USD Tencent Holdings 3.8 74.1 04/22/2051 KY USD Tencent Holdings 3.8 74.1 04/22/2051 KY USD Tencent Holdings 3.9 72.3 04/22/2061 KY USD Tencent Holdings 3.9 72.3 04/22/2061 KY USD UEP Penonome II SA 6.5 73.6 10/01/2038 PA USD UEP Penonome II SA 6.5 74.1 10/01/2038 PA USD Vista Energy 1 73 03/03/2028 AR USD Voyager II 3.3 74.3 03/23/2034 KY AUD VTR Comunicaciones 5.1 55.3 01/15/2028 CL USD VTR Comunicaciones 5.1 53.6 01/15/2028 CL USD VTR Comunicaciones 4.4 54.4 04/15/2029 CL USD VTR Comunicaciones 4.4 54.5 04/15/2029 CL USD Banco del Estado 3.1 72.5 02/21/2040 CL AUD Banco del Estado de 1.7 70 03/01/2032 CL EUR Banco del Estado 2.8 68.9 03/13/2040 CL AUD Banco del Estado 1.7 69.2 07/05/2032 CL EUR Banco GNB Sudameris 7.5 73.3 04/16/2031 CO USD Banco GNB Sudameris 7.5 73.4 04/16/2031 CO USD Banco Santander Chile 1.3 57.6 11/29/2034 CL EUR Banco Santander Chile 3.1 72.3 02/28/2039 CL AUD Guaranteed 5.4 73.7 01/29/2038 KY USD Guaranteed 5.3 71.9 03/23/2038 KY USD Helenbergh China 8 32.9 11/07/2024 KY USD Agile Group Holdings 6.1 41 10/13/2025 KY USD Agile Group Holdings 5.5 45 04/21/2025 KY USD Agile Group Holdings 5.5 39.2 05/17/2026 KY USD Alfa Desarrollo SpA 4.6 72.1 09/27/2051 CL USD Alfa Desarrollo SpA 4.6 72.1 09/27/2051 CL USD Alibaba Group 2.7 67.4 02/09/2041 KY USD Alibaba Group 3.2 65.2 02/09/2051 KY USD Agile Group Holdings 5.8 50.2 01/02/2025 KY USD QNB Finance 11.5 62.1 1/30/2025 KY TRY SYN prop e tech SA 13.6 20.3 3/15/2024 BR BRL Yango Cayman 12 3.9 09/15/2023 KY USD YPF SA 1 69.8 01/10/2026 AR USD YPF SA 7 61.6 12/15/2047 AR USD YPF SA 7 61 12/15/2047 AR USD Tencent Holdings 3.2 66.2 06/03/2050 KY USD Tencent Holdings 3.2 66.5 06/03/2050 KY USD Tencent Holdings 3.3 63 06/03/2060 KY USD Tencent Holdings 3.3 63.5 06/03/2060 KY USD Three Gorges Finance 3.2 74.2 10/16/2049 KY USD Transocean Inc 6.8 67.6 03/15/2038 KY USD Inversiones Latin 5.1 44.6 06/15/2033 CL USD Inversiones Latin 5.1 44.8 06/15/2033 CL USD MSU Energy SA 6.9 70.8 02/01/2025 AR USD MSU Energy SA 6.9 71.2 02/01/2025 AR USD Panama Bond 4.5 73.5 01/19/2063 PA USD Panama Bond 4.3 74.8 04/29/2053 PA USD Panama Bond 3.9 66.8 07/23/2060 PA USD Pearl Holding III 9 30.5 10/22/2025 KY USD Pearl Holding III 9 30.5 10/22/2025 KY USD Peruvian Bond 3.6 68.6 01/15/2072 PE USD Peruvian Bond 2 69.5 11/17/2036 PE EUR Peruvian Bond 2.8 61.1 12/01/2060 PE USD Peruvian Bond 1.3 72.1 03/11/2033 PE EUR Peruvian Bond 3.2 60.9 07/28/2121 PE USD Itau Unibanco SA 5.8 19.4 05/20/2027 BR BRL Jamaica Government 8.5 68.9 12/21/2061 JM JMD Jamaica Government 6.3 72.7 07/11/2048 JM JMD Kaisa Group Holdings 10.9 9.1 KY USD Lani Finance 3.1 68.6 10/19/2048 KY AUD Lani Finance 1.9 63.3 10/19/2048 KY EUR Lani Finance 1.7 60 03/14/2049 KY EUR Lani Finance 1.9 62.3 09/20/2048 KY EUR Fospar S/A 6.5 1.3 05/15/2026 BR BRL Frigorifico 7.7 71.1 07/21/2028 PY USD Frigorifico 7.7 71.4 07/21/2028 PY USD Galaxy Digital 3 62.5 12/15/2026 KY USD Generacion 9.9 73.1 12/01/2027 AR USD Generacion 12.5 0 02/16/2024 AR USD Gol Finance Inc 8.8 40.5 KY USD Gol Finance Inc 8.8 42 KY USD Goldman Sachs 2.3 75.9 06/30/2040 KY EUR Greenland Hong Kong 10.2 45.9 KY USD Guacolda Energia SA 4.6 40.8 04/30/2025 CL USD Guacolda Energia SA 4.6 40.8 04/30/2025 CL USD Colombia Bond 7.3 71.3 10/18/2034 CO COP Colombia Bond 7.3 71.3 10/18/2034 CO COP Colombia Bond 7.3 61.5 10/26/2050 CO COP Colombia Bond 7.3 61.5 10/26/2050 CO COP Colombia Bond 3.9 54.8 02/15/2061 CO USD Colombia Bond 4.1 61.9 02/22/2042 CO USD Colombia Bond 5.6 72.7 02/26/2044 CO USD Colombia Bond 3.1 74 04/15/2031 CO USD Colombia Bond 3.3 72.1 04/22/2032 CO USD Colombia Bond 5.2 67.3 05/15/2049 CO USD Colombia Bond 4.1 58.8 05/15/2051 CO USD Colombia Bond 5 66.9 06/15/2045 CO USD Colombia Bond 6.3 63 07/09/2036 CO COP Colombia Bond 6.3 63 07/09/2036 CO COP Banco Davivienda SA 6.7 66.5 CO USD Banco de Chile 2.7 75.4 03/09/2035 CL AUD Banco de Chile 1.7 69.5 04/26/2032 CL EUR Chile Bond 1.3 52 01/22/2051 CL EUR Chile Bond 3.1 66.9 01/22/2061 CL USD Chile Bond 1.3 65.4 01/29/2040 CL EUR Chile Bond 1.3 71.2 07/26/2036 CL EUR Chile Bond 3.3 66.6 09/21/2071 CL USD China Maple Leaf 2.3 75 01/27/2026 KY USD China SCE Group 6 29 02/04/2026 KY USD China SCE Group 7.4 56.2 04/09/2024 KY USD China SCE Group 7 35.2 05/02/2025 KY USD China SCE Group 6 42.9 09/29/2024 KY USD Earls Eight 0.1 63.8 12/20/2031 KY AUD Earls Eight 2.3 75.2 05/20/2032 KY AUD Earls Eight 1.7 71.4 06/20/2032 KY AUD Ecopetrol SA 4.6 75 11/02/2031 CO USD Ecopetrol SA 5.9 63.9 11/02/2051 CO USD Ecopetrol SA 5.9 65.5 05/28/2045 CO USD eHi Car Services 7 64.9 09/21/2026 KY USD El Salvador Bond 6.4 62.3 01/18/2027 SV USD El Salvador Bond 6.4 62 01/18/2027 SV USD El Salvador Bond 7.1 48.5 01/20/2050 SV USD El Salvador Bond 7.1 48.6 01/20/2050 SV USD El Salvador Bond 5.9 46 01/30/2025 SV USD El Salvador Bond 7.6 49.4 02/01/2041 SV USD El Salvador Bond 7.6 49.4 02/01/2041 SV USD El Salvador Bond 8.6 58.1 02/28/2029 SV USD El Salvador Bond 8.6 57.9 02/28/2029 SV USD El Salvador Bond 8.3 56.4 04/10/2032 SV USD El Salvador Bond 8.3 56.3 04/10/2032 SV USD El Salvador Bond 7.7 50 06/15/2035 SV USD El Salvador Bond 7.7 50 06/15/2035 SV USD El Salvador Bond 9.5 54.6 07/15/2052 SV USD El Salvador Bond 9.5 54.5 07/15/2052 SV USD El Salvador Bond 7.6 49.9 09/21/2034 SV USD El Salvador Bond 7.6 50 09/21/2034 SV USD Banda de Couro 8 69.1 01/15/2027 BR BRL Alibaba Group 3.3 63 02/09/2061 KY USD AMTD IDEA Group 4.5 52.5 KY SGD AAC Technologies 3.8 68.6 06/02/2031 KY USD ACEN Finance 4 70.9 KY USD AES Tiete 6.8 0.7 04/15/2024 BR BRL Agile Group Holdings 13.5 40.7 KY USD Agile Group Holdings 8.4 38.1 KY USD Agile Group Holdings 7.9 31 KY USD Argentina Bonar Bonds 1 19.8 7/09/2029 AR USD Argentina Bonar Bonds 1 27.5 08/05/2023 AR USD Argentina Treasury 2.5 25.3 11/30/2031 AR ARS Argentine Bond 0.5 19.5 07/09/2029 AR EUR Argentine Bond 1 23.7 07/09/2029 AR USD Argentine Bond 0.1 21.5 07/09/2030 AR EUR Argentine Bonos 16 72.6 10/17/2023 AR ARS Argentine Bonos 15.5 22.2 10/17/2026 AR ARS Ascent Finance 3.4 58.4 02/06/2043 KY AUD Ascent Finance 3.8 59.8 06/28/2047 KY AUD Ascent Finance 1.2 61.4 07/12/2047 KY EUR Astra Cumulative 1.5 60.6 11/01/2029 KY USD ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2023. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *