/raid1/www/Hosts/bankrupt/TCRLA_Public/230606.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
Tuesday, June 6, 2023, Vol. 24, No. 113
Headlines
A R G E N T I N A
ARGENTINA: Analysts Forecast Inflation Rate of 9.1% in May
B R A Z I L
BRAZIL: Economic Growth Bounces Back in First Quarter
INTERCEMENT PARTICIPACOES: Fitch Lowers LongTerm IDRs to 'C'
C H I L E
CHILE: Economic Activity Weakens as Rate Cuts Are Predicted
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: 11.2% of Population Live in Informal Houses
DOMINICAN REPUBLIC: Airline Catering Generates Millions of Dollars
DOMINICAN REPUBLIC: DGII Applauds Constitutional Court Decision
P A R A G U A Y
BANCO REGIONAL SAECA: S&P Withdraws 'BB-' Issuer Credit Rating
P E R U
PERU: Inflation Rate Dips Slightly in May But Still Above Forecast
- - - - -
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A R G E N T I N A
=================
ARGENTINA: Analysts Forecast Inflation Rate of 9.1% in May
----------------------------------------------------------
Buenos Aires Times reports that Argentina's inflation rate
surpassed nine percent in May, according to a new forecast issued
by an influential consultancy firm.
The Fundación Libertad y Progreso said that consumer prices likely
rose 9.1 percent last month, a rise of 0.7 points on last month's
official rate issued by the INDEC national statistics bureau. If
confirmed, it would be a sixth consecutive month of accelerating
prices in Argentina, according to Buenos Aires Times.
According to the firm, accumulated inflation so far in 2023 is 44
percent, just five months into the year, the report notes. In the
first five months of 2022, prices rose 29.3 percent, the report
relays.
Official INDEC data published earlier this month showed that prices
have risen 108.8 percent over the last 12 months, with that figure
likely to accelerate when May's data is released, the report says.
The report from Fundación Libertad y Progreso highlighted surges
in the prices of food and non-alcoholic beverages, which soared
more than nine percent last month, the report notes.
"Food increases are very worrying because they strongly affect the
values of the basic food basket, putting higher floors on the
poverty line," said the firm's economist Santiago Casas, the report
discloses.
"If it needed to be demonstrated again, the Precios Justos
[price-control] scheme has failed and all it has achieved is
greater distortions in the economy. Inflation is accelerating as
uncertainty grows," the report relays.
He concluded: "To fix the problem, the next government will have
the challenge of designing a stabilisation plan to restore
confidence in the currency, or replace it with another," 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.
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B R A Z I L
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BRAZIL: Economic Growth Bounces Back in First Quarter
-----------------------------------------------------
globalinsolvency.com, citing Bloomberg News, reports that Brazil's
economy roared back in the first months of 2023, lifted by bumper
harvests that outweighed the drag of double-digit borrowing costs.
Official data released showed gross domestic product expanded 1.9%
in the January-March period from the previous quarter, much more
than the 1.2% median estimate of analysts surveyed by Bloomberg.
From a year ago, the economy grew 4%, the report discloses. A
rebound in Brazil's agriculture and a strong labor market helped
deliver far better results than economists had forecast at the
start of 2023, though few see it lasting, the report notes.
The highest interest rates in six years are weighing on business
and consumer confidence - and have President Luiz Inacio Lula da
Silva clamoring for drastic changes in monetary policy, the report
adds.
About Brazil
Brazil is the fifth largest country in the world and third largest
in the Americas. Luiz Inacio Lula da Silva won the 2022
Brazilian general election. He was sworn in on January 1, 2023, as
the 39th president of Brazil, succeeding Jair Bolsonaro.
As recently reported in the Troubled Company Reporter-Latin
America, Fitch Ratings, in December 2022, affirmed Brazil's
Long-Term Foreign Currency Issuer Default Rating (IDR) at 'BB-'
with a Stable Outlook. The ratings are constrained by high
government indebtedness, a rigid fiscal structure, weak economic
growth potential, and a record of governability challenges that
have hampered efforts to address these fiscal and economic issues
and clouded policy predictability. The Stable Outlook reflects
Fitch's expectation that growth will slow in the coming year and
that recent fiscal improvement will erode under a new government,
but within a margin consistent with the current rating, and from a
better starting point than previously expected. Uncertainty is
elevated regarding the plans of the incoming government and the
extent to which these could ease or aggravate fiscal and economic
challenges. However, Fitch does not expect policies that
jeopardize broad economic stability.
Standard & Poor's affirmed its 'BB-/B' long- and short-term
foreign and local currency sovereign credit ratings on Brazil, and
the outlook remains stable (June 2022). The stable outlook
reflects S&P's base-case assumption that Brazil will maintain its
fiscal anchors over the next two years despite an increasing
interest burden, preventing significant fiscal slippage and
limiting the rise in its already high debt burden.
Moody's credit rating for Brazil was last set at Ba2 in 2018 with
stable outlook. Moody's affirmed the Ba2 issuer ratings and
senior unsecured bond ratings in April 2022.
DBRS's credit rating for Brazil is BB (low) with stable outlook
(March 2018).
INTERCEMENT PARTICIPACOES: Fitch Lowers LongTerm IDRs to 'C'
------------------------------------------------------------
Fitch Ratings has downgraded InterCement Participacoes S.A.
(InterCement)'s Long- Term Foreign and Local Currency Issuer
Default Ratings (IDRs) to 'C' from 'CC' and its wholly owned
subsidiary InterCement Brasil S.A.'s FC and LC LT IDRs to 'C' from
'CC'. The National Scale Long-Term Ratings for both entities have
also been downgraded to 'C(bra)' from 'CC(bra)'. Fitch has
additionally downgraded the ratings of the InterCement Financial
Operations BVs senior notes to 'C/RR4' from 'CC/RR4'.
KEY RATING DRIVERS
The downgrades to 'C' follow InterCement's announcement of a missed
payment on a non-material bank loan (USD19 million loan from Banco
HSBC S.A) and the start of discussions with creditors to formally
request of waivers for its 2Q23 payments. On June 8, 2023 the
company faces a large amount of principal and interest (around
USD130 million) related to its local debentures. This strategy to
preserve cash is an initial step of a more comprehensive debt
restructuring process, which should constitute a distressed debt
exchange (DDE) under Fitch's criteria. In this scenario, Fitch
would likely downgrade the rating to ´RD'.
As of March 31, 2023, InterCement's total consolidated debt was
USD1.7 billion, primarily consisting of USD548 million of 2024
unsecured bonds and USD881 million of local debentures due 2027,
and USD189 million of cash. Debt schedule amortizations were USD183
million in 2023, USD906 million in 2024 (including USD548 million
of senior notes), USD253 million in 2025, USD238 million in 2026
and USD122 million in 2027.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Proactive steps by the company to materially bolster its capital
structure, including asset sale, allowing a smooth refinancing of
its capital market debt without material reduction in terms.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- An uncured payment default on any material financial obligation
would lead to a downgrade of the IDRs to 'RD'.
The completion of the proposed exchange offer will lead to a
downgrade of the Long-Term IDRs to 'RD'. The IDRs would be
subsequently upgraded to a rating level reflecting the post-DDE
credit profile.
ISSUER PROFILE
InterCement is a large cement producer with 20 million tons of
total consolidated cement sales and annual production capacity of
35 million tons. The company has a diversified portfolio of assets
with operations in Brazil, Argentina, Mozambique and South Africa.
ESG CONSIDERATIONS
InterCement has an ESG Relevance Score of '4' for Governance
Structure due to limited board independence through ownership by
key shareholder Mover Participacoes S.A. This has a negative impact
on the credit profile and is relevant to the ratings in conjunction
with other factors.
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
InterCement
Financial
Operations BV
senior
unsecured LT C Downgrade RR4 CC
InterCement
Brasil S.A. LT IDR C Downgrade CC
LC LT IDR C Downgrade CC
Natl LT C(bra)Downgrade CC(bra)
InterCement
Participacoes
S.A. LT IDR C Downgrade CC
LC LT IDR C Downgrade CC
Natl LT C(bra)Downgrade CC(bra)
=========
C H I L E
=========
CHILE: Economic Activity Weakens as Rate Cuts Are Predicted
-----------------------------------------------------------
Matthew Malinowski of Bloomberg News reports that Chile's economic
activity remained flat in April, stoking bets that the central bank
will start to lower the benchmark interest rate from an over
two-decade high as early as July.
Swap rates tumbled, according to the report.
The Imacec index, a proxy for gross domestic product, was unchanged
on the month, below the 0.1% median estimate of analysts in a
Bloomberg survey, according to the report.
From a year prior, it decreased 1.1%, the central bank reported,
the report relays.
Chile's central bank has stuck to its hawkish stance, emphasizing
that headline and core inflation remain well above its 3% target
even as the economy stagnates, Bloomberg discloses.
Policymakers have said they see no evidence that the slowdown in
inflation has been consolidated, Bloomberg relays. Still, traders
surveyed by the monetary authority see an easing cycle starting in
July, the report adds.
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D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: 11.2% of Population Live in Informal Houses
---------------------------------------------------------------
Dominican Today reports that Habitat for Humanity Dominican
Republic has highlighted that approximately 11.2% of the Dominican
population resides in informal settlements, lacking access to basic
necessities such as drinking water, electricity, and storm drainage
systems.
Based on a previous study conducted by the United Nations, the
information underscores the vulnerability faced by impoverished
communities in the face of climate change and emphasizes the need
for public policies to address these critical needs, according to
Dominican Today.
According to UN data, over one billion people worldwide live in
slums and other informal settlements, the report notes.
Cesarina Fabián, director of Habitat Dominican Republic, stated,
"Informal slum dwellers play an incredibly important role in
finding housing solutions for themselves, the report discloses.
The right policies can remove barriers, accelerate these efforts,
and open the door to a better future for many more people who
deserve the chance to live in a safe home," the report relays.
In the Dominican Republic, homes in these settlements often lack
access to water, electricity, and sanitation, the report relays.
They are situated on vulnerable land, frequently have dirt floors,
and families often lack property rights to the land on which their
houses are located. Additionally, these houses are typically
constructed using poor-quality materials, the report notes.
Fabian emphasized that the condition of informal or substandard
housing represents an economic burden for the state and that such
homes are most affected by the impacts of climate change, the
report says.
Habitat for Humanity Dominican Republic, along with its global
partners, recently launched a five-year campaign called "Hogar es .
. ." (Home Equals), the report discloses. The campaign aims to
advocate for changes in national and global policies to improve
access to adequate housing for those residing in informal
settlements, the report says.
In the Dominican Republic, the organization has served
approximately 201,640,000 individuals, providing over 40,328,000
housing solutions through tailored financial credits or the support
of generous donors who contribute to this social cause, the report
relays.
On a global scale, Habitat for Humanity calls on G7 member states
to recognize equitable access to housing as a fundamental driver of
development, the report notes. The organization urges these states
to commit to addressing the housing needs in informal settlements
as a means to advance international development priorities in areas
such as economic growth, health, and education, 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.
DOMINICAN REPUBLIC: Airline Catering Generates Millions of Dollars
------------------------------------------------------------------
Dominican Today reports that the impact of airline catering in the
different productive sectors of the Dominican economy represents
millions of dollars, in addition to its contribution to the
country's image as a tourist destination.
The statement was made by Israel Joa, CEO of JJ Roca, an airline
catering company with 53 years of experience in the country, who
said that the provision of food services to airlines is a strategic
sector for the airline industry and for the economy in general,
according to Dominican Today.
According to a report published by the digital newspaper El Dinero,
Roca said that "in the case of his company, in the last few years,
not counting the closure due to the pandemic, we have contributed
some US$30 million in foreign exchange generation and some RD$384
million to the aeronautical sector, the report notes. In the labor
field, we have 143 direct collaborators, all Dominicans, generating
296 indirect jobs," the report relays.
He pointed out that "what is related to this industry and its
contributions to the country is little known, however, the value
chain generated by the operation even reaches the agro-industrial
sector where we support national producers and in our case we have
contributed with more than US$3 million in purchases in the
mentioned period," the report relays.
"Food on board is part of the passenger's satisfaction and
experience to and from the destination, so a memorable gastronomic
service is part of the image and positive recall of the Dominican
Republic. As a company, we take care of the quality and safety of
the food, as well as the well-being of passengers and crew," added
Joa, the report notes.
The airline catering market, El Dinero concluded, goes hand in hand
with the growth of the aviation sector and the increase in domestic
and international flights, and food production must comply with a
series of regulations, requirements and the strictest quality
standards, 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.
DOMINICAN REPUBLIC: DGII Applauds Constitutional Court Decision
---------------------------------------------------------------
Dominican Today reports that the General Directorate of Internal
Taxes (DGII) has expressed satisfaction with the decision of the
Constitutional Court, which has safeguarded over 500 million pesos
belonging to the Dominican people. The DGII's Director General,
Luis Valdez Veras, emphasized that the state's assets should not be
treated as spoils of war and that the actions of the DGII will
always adhere to the constitution and laws, according to Dominican
Today.
Valdez Veras stated, "Thankfully, our country has a stable legal
framework, with a responsible Constitutional Court and judges who
uphold the law when administering justice," the report notes.
Veras further emphasized that public positions are not inheritances
and that he is prepared to resign if he ever violates the law, the
report relays.
To understand the context of the conflict between the lawyer and
the Dominican State, it is important to explain its progression
through the courts: On May 8, 2009, the Second Chamber of the Civil
Chamber of the National District issued a judgment ordering the
DGII to transfer 15 properties to lawyer Ramon Emilio Concepcion,
the report discloses. These properties were obtained by Concepcion
through a contingency fee agreement, where the lawyer's fees are
derived from a portion of the proceeds of the litigation, the
report relays. The court order required the transfer of the
properties without exempting the DGII from collecting the real
estate transfer tax. Additionally, a daily fine of RD$100,000.00
was imposed on the DGII for each day of non-compliance, the report
notes.
Upon receiving the notification of the Constitutional Court's
decision, the DGII proceeded to comply with the final decision of
the first instance, which had already been transferred to
Concepcion, the report says. It should be noted that the DGII had
already transferred eleven of the properties described in the
judgment, without collecting the tax, at the request of the
interested party, the report relates.
Prior to the Constitutional Court's ruling, Concepcion approached
the DGII requesting a "friendly settlement of the fine," the report
notes. However, the DGII responded that settlement was not
possible and that the only way to disburse public funds from the
treasury was through the appropriate legal procedures, including
the liquidation of the fine and registration of any debt with the
Ministry of Finance, the report discloses.
These events led to accusations that the DGII had disregarded the
Constitutional Court's decision, which resulted in Concepción
seizing various files related to the court, 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.
===============
P A R A G U A Y
===============
BANCO REGIONAL SAECA: S&P Withdraws 'BB-' Issuer Credit Rating
--------------------------------------------------------------
S&P Global Ratings withdrew its global scale 'BB-' issuer credit
rating on Banco Regional S.A.E.C.A. at its request. The outlook on
the rating was stable.
In November 2022, Banco Regional and Sudameris Bank S.A.E.C.A. (not
rated) announced their agreement to merge, which will result in
Paraguay's largest lender in terms of loans and one of the top
players in terms of deposits. Under the proposed structure,
Sudameris will absorb Banco Regional. Regulatory approval is
already in place, with some additional steps to be completed in the
near term.
At the time of the withdrawal, S&P's ratings on Banco Regional
reflected its operations at a sole entity. The intrinsic credit
quality (the stand-alone credit profile) of the bank was 'bb-'.
At the moment of the withdrawal, there were no changes in ESG
factors.
=======
P E R U
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PERU: Inflation Rate Dips Slightly in May But Still Above Forecast
------------------------------------------------------------------
globalinsolvency.com, citing Reuters, reports that Peru's inflation
rate based on the metropolitan region of the capital Lima fell to
0.32% in May, government data showed, but the rate of creeping
consumer prices still came in above the 0.25% estimated by a poll.
The slight uptick for inflation in May slowed from 0.56% in April,
while inflation in the last 12 months reached 7.89%, according to
globalinsolvency.com.
Peru's central bank, as well as many economic analysts, use the
metro Lima inflation rate as an accurate reference for prices
nationwide, the report notes.
Peru, a major global copper producer, posted an inflation rate of
8.46% in 2022, the highest annual figure in more than a quarter of
a century, according to official data, the report relays.
The slowdown in the rise in consumer prices has been driven by more
moderate energy and transportation prices, the data showed, the
report says. Peru's central bank expects annual inflation to
return to its 1%-3% target range by the end of the year, 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.
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balance thereof are US$25 each. For subscription information,
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