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

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

          Friday, July 7, 2023, Vol. 24, No. 136

                           Headlines



A R G E N T I N A

ARGENTINA: IDB Approves $350MM Loan to Boost Growth
ARGENTINA: Inks Paris Club Debt Agreements With Three More Nations


B A H A M A S

FTX GROUP: Bankman-Fried Loses Bid to Toss Charges Over Collapse


B R A Z I L

AMERICANAS SA: Rushes to Produce New Financials
BRAZIL: Inflation Slows as Central Bank Foresees August Rate Cut
PETROBRAS: Fitch Gives BB- Rating on Unsec. Notes Due 2033


C H I L E

INVERSIONES LATIN AMERICA: S&P Lowers ICR to 'D' on Missed Payment


C O L O M B I A

CREDIVALORES: S&P Lowers ICR to 'CCC-', On CreditWatch Negative


X X X X X X X X

LATAM: Food Insecurity Cut by 10% in English-Speaking Caribbean

                           - - - - -


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

ARGENTINA: IDB Approves $350MM Loan to Boost Growth
---------------------------------------------------
The Inter-American Development Bank (IDB) approved a $350 million
loan to boost sustainable and resilient growth in Argentina. The
approval by the Board marks a significant financial milestone in
support of Argentina's climate action plans as well as a major step
in the fight against climate change.

The loan includes policies that will strengthen the government and
allow it to plan, finance and implement actions reducing emissions
in the most sensitive sectors, such as energy and agriculture. It
also promotes policies fostering the circular economy and creating
favorable conditions for sustainable finance. The operation’s
added value lies in its ability to introduce a longer-term vision,
mainstream the climate agenda to all ministries, and promote
policies in the most sensitive sectors.

Climate policies include presenting a revised version of the
Nationally Determined Contribution setting a more ambitious
emissions reduction goal, formalizing the long-term decarbonization
strategy to reach carbon neutrality by 2050, and supporting the
first National Mitigation and Adaptation Plan, which must be
internalized by all provinces by 2024. It also includes policies
institutionalizing climate change in the country's budget planning
tools, a major stride towards implementing the Paris Agreement's
transparency and reporting commitment.

On the energy side, the loan promotes key measures such as the
approval of Argentina's first medium- and long-term "Energy
Transition Plan", which aims to steer the energy sector towards
decarbonization while boosting the use of renewable sources. It
also includes the first Energy Efficiency Bill and the Hydrogen
Bill. The former has the potential to reduce demand for imported
fossil fuels, which is beneficial both for the fight against
climate change globally and for the reduction of the country's
fiscal deficit. The second project seeks to promote the use of
hydrogen, a clean resource that can help reduce emissions in
sectors such as industry and heavy transport.

The program also includes actions for the protection of
biodiversity, such as the National Forest Management Plan with
Integrated Livestock to balance agriculture and forest protection;
the Cultivated Forest Act, the first law to limit the promotion of
the forestry industry outside native forests. Lastly, it also
boosts Argentina's protected areas by 7%, incorporating 1.2 million
hectares of National Parks.

With this IDB loan, Argentina takes an important step toward a
sustainable and resilient future, strengthening its commitment to
climate action and laying the foundation for greener and more
equitable economic growth.

Financing for the current operation will be sourced from the Bank's
Ordinary Capital and will be disbursed in a single tranche in 2023.
The loan has a 20-year repayment term, a 1-year disbursement
period, a grace period of 5.5 years, and an interest rate based on
SOFR.

                          About Argentina

Argentina is a country located mostly in the southern half of South
America. Its capital is Buenos Aires. Alberto Angel Fernandez is
the current president of Argentina after winning the October 2019
general election. He succeeded Mauricio Macri in the position.

Argentina has the third largest economy in Latin America.  The
country's economy is an upper middle-income economy for fiscal year
2019, according to the World Bank. Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.

Last March 25, 2022, Argentina finalized agreement with the IMF for
a new USD44 billion Extended Funding Facility (EFF) intended to
fund USD40 billion in looming repayments of the defunct Stand-By
Arrangement (SBA), with an extra USD4 billion in up-front net
financing. This has averted the risk of a default to the IMF
and is facilitating a parallel rescheduling of Paris Club debt.

S&P Global Ratings, on March 29, 2023, lowered its long-term
foreign currency sovereign credit rating on Argentina to 'CCC-'
from 'CCC+'.  S&P also affirmed its 'C' short-term foreign currency
sovereign credit rating and its 'CCC-/C' local currency ratings on
Argentina.  The outlook on the long-term ratings is negative.  S&P
also lowered the transfer and convertibility assessment to 'CCC-'
from 'CCC+'.  The negative outlook on the long-term ratings
reflects risks surrounding pronounced economic imbalances and
policy uncertainties before and after the 2023 national elections.
Divisions across the political spectrum constrain the sovereign's
ability to implement timely changes in economic policy. Global
capital markets are closed to Argentina. In the local market, swaps
are being deployed to manage large maturities before placing debt
through traditional auctions.  The central bank continues to play a
key role as a backstop for local debt management in the secondary
market. The ongoing severe drought has exacerbated pressures in the
already disrupted foreign exchange (FX) market.

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

Moody's Investors Service, in September 2022, affirmed Argentina's
Ca foreign-currency and local-currency long-term issuer and senior
unsecured ratings.  The outlook remains stable.  The decision to
affirm the Ca ratings balances Argentina's limited market access,
weak governance, and history of recurrent debt restructurings with
recent efforts to marshal fiscal and monetary measures to start
addressing underlying macroeconomic imbalances in the context of
the IMF program that was approved in 2022, according to Moody's.

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


ARGENTINA: Inks Paris Club Debt Agreements With Three More Nations
------------------------------------------------------------------
Buenos Aires Times reports that Economy Minister Sergio Massa has
signed three new agreements with members of the Paris Club group of
wealthy creditors to finalise the restructuring of around US$2
billion in debt.

The accords, inked with permanent Paris Club members Spain, France
and Sweden, means that Argentina has agreed deals with 15 out of
the group's 16 members. Buenos Aires is still seeking a fresh deal
with Japan, the only remaining holdout, with negotiations ongoing,
according to Buenos Aires Times.

Argentina's negotiations with the Paris Club, over a debt of just
under US$2 billion, had dragged on for years before Massa announced
in October 2022 that a restructuring deal had been agreed, the
report notes.  At the same time, the country has been engaged in
parallel negotiations with the International Monetary Fund for a
new financing program, the report relays.

Within the Paris Club, renegotiation of existing debts are agreed
as an institution, though bilateral agreements are signed
individually with specific nations, the report discloses.

The formal signing ceremony was attended by the ambassadors of
Spain (Maria Jesus Alonso), France (Claudia Scherer-Effosse) and
Sweden (Anders Carlsson). Deals have already been reached with
Italy, Belgium, Switzerland, the Netherlands, Germany, Canada,
Israel, Finland, Austria, Denmark, the United States and the United
Kingdom, the report notes.

Massa said in a statement that "these agreements will make it
possible to guarantee the sustainability of the debt profile and
thus sustain the economic recovery,” the report relays.

He said the agreements "as part of the macro-economic organisation
process that will allow both the public and private sectors to
obtain financing for the development of important infrastructure
projects that will increase the competitiveness of the national
economy, while promoting exports of regional goods and services,”
the report says.

Massa said Argentina is "fulfilling an important goal in our
roadmap to order and regularise the macroeconomic order of the
country's economy," the report relays.

Under the new terms, Argentina will adjust earlier repayment
agreements and "clear the remaining debt in arrears due to the
Paris Club creditors over a six-year period" of 13 semi-annual
instalments, the group said in a statement, the report adds.

The last payment is due in September 2028.

                          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 A H A M A S
=============

FTX GROUP: Bankman-Fried Loses Bid to Toss Charges Over Collapse
----------------------------------------------------------------
Luc Cohen at Reuters reports that a federal judge rejected Sam
Bankman-Fried's bid to throw out most of the U.S. government's
criminal case accusing the FTX cryptocurrency exchange founder of
orchestrating a multibillion-dollar fraud.

The decision by U.S. District Judge Lewis Kaplan in Manhattan paves
the way for an Oct. 2 trial of Bankman-Fried, a 31-year-old former
billionaire, according to Reuters.

Prosecutors accused Bankman-Fried of stealing billions of dollars
in FTX customer funds to plug losses at his Alameda Research hedge
fund, the report notes.

They also accused Bankman-Fried of misleading investors and
lenders, and contributing illegally to U.S. political campaigns in
the names of colleagues, the report discloses.

Bankman-Fried has pleaded not guilty and denied stealing funds,
while acknowledging that FTX had inadequate risk management, the
report says.

Bankman-Fried in May asked Kaplan to dismiss at least 11 of the 13
fraud and conspiracy charges he faced, the report relays.

Bankman-Fried said some charges relied on a fraud theory -- where a
defendant could be convicted for depriving someone of economically
valuable information and not just tangible property -- the U.S.
Supreme Court last month deemed invalid, the report notes.

But the judge agreed with prosecutors that the theory, known as
right to control, did not apply to Bankman-Fried, the report says.

"The defendant's assertion that the indictment does not allege any
'economic loss' to FTX customers appears to be factually
incorrect," and the alleged misappropriated funds clearly
constituted property, Kaplan wrote, the report relays.

A spokesman for Bankman-Fried declined to comment.

Bankman-Fried also argued that some charges were improperly brought
without consent from the Bahamas, where he was arrested in December
and extradited to the United States, the report discloses.

An extradition treaty between the United States and the Bahamas,
where FTX was based, says a country must consent before defendants
can be tried on charges brought after their extradition, the report
says.

Kaplan this month said a second trial will be held March 11 on the
five charges prosecutors brought against Bankman-Fried after his
extradition, the report notes.

Prosecutors said they asked the Bahamas to agree to those charges,
which include conspiracy to bribe Chinese officials and commit bank
fraud, but did not know when the Caribbean country would grant its
consent, the report adds.

                          About FTX Group

FTX is the world's second-largest cryptocurrency firm.  FTX is a
cryptocurrency exchange built by traders, for traders.  FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.

Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.

Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell
itself to its giant rival Binance, but Binance walked away from the
deal amid reports on FTX regarding mishandled customer funds and
alleged US agency investigations.

At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step
aside, and restructuring vet John J. Ray III was quickly named new
CEO.

FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
million in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year.  According to Reuters, SBF
shared a document with investors on Nov. 10, 2022, showing FTX had
$13.86 billion in liabilities and $14.6 billion in assets.
However,
only $900 million of those assets were liquid, leading to the cash
crunch that ended with the company filing for bankruptcy.

The Hon. John T. Dorsey is the case judge.

The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims agent,
maintaining the page https://cases.ra.kroll.com/FTX/Home-Index

The Official Committee of Unsecured Creditors tapped Paul Hastings
as counsel, FTI Consulting, Inc., as financial advisor, and
Jefferies LLC as the investment banker. Young Conaway Stargatt &
Taylor LLP is the Committee's Delaware and conflicts counsel.

Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases.

White-collar crime specialist Mark S. Cohen has reportedly been
hired to represent SBF in litigation. Lawyers at Paul Weiss
previously represented SBF but later renounced representing the
entrepreneur due to a conflict of interest.




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B R A Z I L
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AMERICANAS SA: Rushes to Produce New Financials
-----------------------------------------------
globalinsolvency.com, citing Reuters, reports that Brazilian
retailer Americanas SA is scrambling to finalize its fourth-quarter
income statement even as it redoubles efforts to get creditors on
side for a bankruptcy restructuring plan.

Americanas, which filed for bankruptcy protection in January after
uncovering 20 billion reais, some $4 billion, in accounting fraud,
is now negotiating changes in the plan to win over debt holders who
have previously indicated they would reject it, according to
globalinsolvency.com.

At the same time, the company is putting together the audited
financial reports, said a source at the company, who asked to
remain anonymous, as it seeks to reassure creditors that the
dimensions of the accounting debacle have been fully disclosed, the
report notes.

Since the initial January announcement, Americanas has uncovered an
additional $1 billion in accounting fraud, the report relays.

These steps are seen as key for the company to be able to comply
with deadlines and avoid postponing approval of its recovery plan,
the source added.

While presenting an audited income statement is not mandatory to
hold the general meeting, it is essential "to convince" creditors
to approve the plan, the source said, given that they will hold a
higher stake of the company as part of a proposal to convert 10
billion reais of debt into equity, the report discloses.

Americanas said in a securities filing it expected to disclose its
previous financial information by August 31. That was the "best
estimate" from the company to report them, it added.

                     About Americanas SA

Americanas was one of the largest diversified retail chains in
Brazil, with a wide platform of physical stores, robust
e-commerce,
fintech, and has just entered into the niche food retail.  It is
listed on B3, being indirectly controlled by billionaire Jorge
Paulo Lemann, Carlos Alberto Sicupira and Marcel Telles.

The retailer nosedived in January 2023 after becoming mired in an
accounting scandal.  The firm filed for bankruptcy at a court in
Rio de Janeiro on Jan. 19, 2023.

Americanas sought protection under Chapter 15 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 23-10092) on Jan. 25,
2023.  White & Case LLP, led by John K. Cunningham, is the U.S.
counsel.


BRAZIL: Inflation Slows as Central Bank Foresees August Rate Cut
----------------------------------------------------------------
globalinsolvency.com, citing Reuters, reports that annual inflation
in Brazil slowed further in early June, hitting its lowest in
nearly three years as the central bank signaled it may start
cutting interest rates at its next meeting if the positive scenario
for consumer prices consolidates.

In Latin America's largest economy, 12-month inflation reached 3.4%
in mid-June, data from statistics agency IBGE showed, slightly
above market expectations of 3.36% but still the lowest since
September 2020, according to globalinsolvency.com.

The latest figure, showing a deceleration from 4.07% in May, comes
as analysts expect Latin America's major central banks, which have
led some of the most aggressive tightening over the last two years,
to lead the world on interest rate cutting, the report notes.

Brazil's inflation "continued to fall rapidly during Q2 and
inflation expectations are now under control," said Pantheon
Macroeconomics' Andres Abadia, noting that would allow the central
bank "to cut rates soon," the report relays.

Earlier in the day, Brazil's central bank did confirm that a
majority of its monetary policy committee see a rate cut in August
as possible if the ongoing disinflation process continues, 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).


PETROBRAS: Fitch Gives BB- Rating on Unsec. Notes Due 2033
----------------------------------------------------------
Fitch Ratings has assigned a 'BB-' rating to Petrobras Global
Finance B.V.'s new issuance of senior unsecured notes due 2033. The
proceeds of the notes will be used to prepay existing debt and for
general corporate purposes.

Petrobras' ratings and Rating Outlook are linked to Brazil's
sovereign ratings (BB-/Stable) due to the company's strategic
importance to the country and the government's strong ownership and
control. Petrobras' dominant market share in the supply of liquid
fuels in Brazil coupled with its large hydrocarbon production
footprint in the country expose the company to government
intervention through pricing policies and investment strategies.

KEY RATING DRIVERS

Sovereign Linkage: Petrobras' ratings are linked to Brazil's
sovereign ratings as a result of the influence the government may
have over the company's strategies and investments. This is despite
material improvements in the company's capital structure and
efforts to isolate itself from government intervention. By law, the
federal government must hold at least a majority of Petrobras'
voting stock, and currently owns 50.3% of Petrobras' voting rights,
directly and indirectly. The government has a 36.8% overall
economic stake.

Strong SCP: Petrobras' standalone credit profile (SCP) of 'bbb'
reflects the company's operational scale, proved reserves, and
leverage profile, all of which are comparable with investment-grade
international oil companies. Fitch forecasts Petrobras' production
will reach 2.9 million barrels of oil equivalent per day (mmboed)
by 2025 compared with 2.7mmboed in 2022, and will maintain its 1P
reserve life of nearly 10 years. Gross leverage, as measured by
gross financial debt to EBITDA was 0.5x in 2022, assuming USD31.0
billion in debt and for the company to remain at this level
throughout 2025, when applying Fitch's price deck.

Solid Cash Flow Generation: Fitch expects Petrobras to continue
reporting positive FCF over the rating horizon while investing
enough to replenish reserves and grow production. Petrobras is the
lowest cost producer in the region. In 2022, Fitch estimated its
half-cycle cost was USD15bbl and its full-cycle cost of production
was USD30bbl. Its low cost of production led to strong cash flow
generation in 2022, where Fitch estimates the company generated
USD65 billion in EBITDA. The company's cash flow comfortably covers
its capex, as laid out in its current strategic plan.

Bylaws Deter Political Interference: Petrobras' bylaws are expected
to deter political interference to execute on non-strategic and
uneconomical policies and investments. Fitch understands, per the
bylaws of the company, board members and executives have a
fiduciary responsibility to ensure the company implements business
strategies that are profitable, otherwise they may face personal
legal liabilities. This consideration should reduce the risk of
strong negative impacts on Petrobras coming from non-technical
decisions on the company.

Recently, the company announced its revised commercial strategy for
refined product, which raised concerns regarding political meddling
in the company, but even though the policy is less transparent than
its previous import parity policy, Petrobras is expected to remain
profitable and able to pass through costs incurred with a marginal
profit.

DERIVATION SUMMARY

Petrobras' linkage to the sovereign is similar in nature to its
peers, namely Petroleos Mexicanos (PEMEX; BB-/Stable), Ecopetrol
S.A. (BB+/Stable) and YPF S.A. (CCC-). It also compares with
Empresa Nacional del Peru (ENAP; A-/Stable), and Petroleos del Peru
- Petroperu (BB+/Negative Watch). All these companies have strong
linkages to their respective sovereigns, given their strategic
importance and the potentially significant social-political and
financial implications a default could have for their countries.

Petrobras' SCP is commensurate with a 'bbb' rating, which is
materially higher than PEMEX's 'ccc-', as a result of Petrobras'
positive deleverage trajectory compared with PEMEX's increasing
leverage. Furthermore, Petrobras has reported and is expected to
continue to report positive FCF and production growth, which Fitch
expects to reach approximately 3.0 million boe/d in the next three
to five years. In contrast, PEMEX's production has declined in
recent years and requires material capex to sustain the production
stabilization trend reported since 2019.

These production trajectories further support the notching
differential between the two companies' SCPs. Petrobras' SCP is in
line with that of Ecopetrol at 'bbb' given both companies' strong
credit metrics and deleveraging trajectories.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within The Rating Case for the Issuer:

-- Gross production to increase to approximately 3.3 million
    boe/d over the next four years;

-- Ten production units come online during the next four years;

-- Lifting cost average of $5.5bbl over the next four years;

-- Brent Crude trends toward USD53/bbl by 2025;

-- Average FX rate trends toward BRL5.25/USD1;

-- Dividend payouts are 60% of cash flow from operations-capex;

-- No further proceeds of asset sales considered over the rated
    horizon besides what has already been announced.

RATING SENSITIVITIES

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

-- A positive rating action on the Brazilian sovereign could lead

    to a positive rating action on Petrobras.

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

-- A negative rating action on Petrobras could result from a
    downgrade of the sovereign and/or the perception of a lower
    linkage between Petrobras and the government coupled with a
    material deterioration of Petrobras' SCP;

-- An increase of gross leverage to 3.5x or above may result in a

    downgrade of the SCP.

LIQUIDITY AND DEBT STRUCTURE

Strong Financial Flexibility: Petrobras' liquidity is robust and
provides an added comfort during periods of volatility in
hydrocarbon prices. The company's liquidity is supported by
approximately USD13.2 billion of cash and marketable securities as
of 1Q23, compared with current financial debt maturities of
approximately USD4.1 billion. The majority of Petrobras' available
liquidity is composed of readily available liquidity held abroad.

ISSUER PROFILE

Petrobras is a government-related entity and one of the world's
largest integrated oil and gas companies, operating primarily in
Brazil where it is the dominant participant and the largest liquid
fuels supplier.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

The ratings are directly linked to that of the sovereign.

ESG CONSIDERATIONS

Petroleo Brasileiro S.A. (Petrobras) has an ESG Relevance Score of
'4' for Governance Structure due to government ownership of the
company }, which has a negative impact on the credit profile, and
is relevant to the rating[s] in conjunction with other factors.

Petroleo Brasileiro S.A. (Petrobras) has an ESG Relevance Score of
'4' for GHG Emissions & Air Quality due to {DESCRIPTION OF
ISSUE/RATIONALE}, which has a negative impact on the credit
profile, and is relevant to the rating[s] in conjunction with other
factors.

Petroleo Brasileiro S.A. (Petrobras) has an ESG Relevance Score of
'4' for Human Rights, Community Relations, Access & Affordability
due to {DESCRIPTION OF ISSUE/RATIONALE}, which has a negative
impact on the credit profile, and is relevant to the rating[s] 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.




=========
C H I L E
=========

INVERSIONES LATIN AMERICA: S&P Lowers ICR to 'D' on Missed Payment
------------------------------------------------------------------
S&P Global Ratings lowered the issue credit rating on Chilean wind
power generator Inversiones Latin America Power Limitada (ILAP) to
'D' from 'CCC-' and removed the rating from CreditWatch
developing.

S&P will reevaluate its rating on the project upon the conclusion
of the agreement with bondholders.

On July 3, ILAP failed to make its $14 million coupon payment, due
on that day, on its $403 million, 5.25% senior secured notes that
mature in 2033.

The 'D' rating reflects the project's failure to make its $14
million interest payment on July 3. On that date, ILAP reached an
agreement with 75% of the bondholders under which they agree to
avoid declaring the notes due and payable until Aug. 3 (which could
be extended for additional 30 days). During that period, ILAP will
continue exploring alternatives to improve its currently fragile
liquidity and capital structure.

In addition, S&P believes that ILAP won't cure the payment within
the following five business days after the coupon maturity, which
is the grace period included in the debt documentation.

It will reevaluate its rating on the project upon the conclusion of
the agreement with bondholders.




===============
C O L O M B I A
===============

CREDIVALORES: S&P Lowers ICR to 'CCC-', On CreditWatch Negative
---------------------------------------------------------------
S&P Global Ratings, on July 4, 2023, lowered its issuer and issue
credit ratings on Credivalores - Crediservicios SAS' (Credivalores)
to 'CCC-' from 'CCC+' and placed them on CreditWatch with negative
implications.

The CreditWatch negative reflects S&P's view of an increasing
probability of default--either conventional or through a distressed
exchange or restructuring--absent favorable developments.

Rating Action

Colombia's nonbank financial institution (NBFI) Credivalores -
Crediservicios SAS' (Credivalores) liquidity position has continued
to erode as the company keeps struggling to access new funding
sources, constraining its cash flow and increasing default risk
within the next six months.

Moreover, to address its immediate financial obligations, the
company unwound its derivative hedging positions and is now
uncovered to face market fluctuations of the Colombian peso. This
has translated into significant losses in the past two quarters and
jeopardizes its capital sustainability.

The weakening liquidity position of Credivalores, coupled with its
limited funding sources, signals increased default risks. In 2022,
Credivalores faced substantial debt maturities that jeopardized its
business continuity and eroded its financial position. As a result,
the company now has limited funding options to continue growing its
business and pay its upcoming financial obligations. Its remaining
funding sources are secured against its payroll loan portfolio.
However, with the most recent information available, the company's
available payroll loans to pledge under their funding scheme has
continued to shrink as loan origination slowed.

S&P said, "Given that tightening funding conditions for independent
NBFIs continue, we believe that Credivalores will keep struggling
to obtain new funding sources from the market to uphold its
upcoming liquidity needs for the next 12 months. The latter
includes two $9 million coupon payments this August and in February
2024, and Eurocommercial paper notes for $15 million this October
and $17 million in March 2024. In addition, the company also has
the interest payments of all its banking facilities throughout the
year and a $210 million debt maturity in February 2025. In our
opinion, Credivalores' upcoming liquidity needs and very complex
financial situation signal increased default risks.

The firm's weakening operating profile and its high sensitivity to
the Colombian peso's depreciation have squeezed Credivalores'
capitalization. Increased funding costs stemming from debt
refinancings in the past 12 months and the consistently high
interest rates have dented Credivalores' operating and financial
profile. Moreover, to obtain additional liquidity to uphold its
financial commitments, the company unwound its derivative hedging
positions and has no protection against the Colombian peso's
depreciation. This leaves the company vulnerable to external market
conditions. The compound effect of these negative factors resulted
in Credivalores losing nearly Colombian pesos (COP) 300 billion
during 2022 and an additional COP30 billion as of March 2023. As a
result of these losses, the shareholder's equity turned negative
and compromised the firm's business continuity.

To address the negative scenario, Credivalores announced the
incorporation of a new shareholder that pledged nearly $58 million
of additional capital to the company. This new capital position was
enough to turn the company's shareholder's equity back to positive.
Nonetheless, considering that the relief in capital was done
through debt conversion rather than the injection of fresh
financial resources, it doesn't address Credivalores' immediate
liquidity pressures. However, shareholders continue to search for
new funding and liquidity alternatives that could bring new cash
flow to the company--such as the credit facilities they offered the
company during the past 12 months. S&P will continue to monitor
these alternatives and analyze their impact as they develop.

Considering the vulnerable capital position and the absence of
hedging currency derivatives, the company's bottom-line results
could return to negative and squeeze shareholder equity. Therefore,
S&P will closely monitor foreign exchange fluctuations and their
effect on Credivalores' operating profile in order to determine the
company's future payment ability.

CreditWatch

S&P said, "The CreditWatch negative reflects our view of an
increasing probability of default--either conventional or through a
distressed exchange or restructuring--absent favorable
developments. We expect to resolve the placement when we have more
visibility on the various transactions and options that the company
is considering to address its weak liquidity position and
vulnerable capital structure."




===============
X X X X X X X X
===============

LATAM: Food Insecurity Cut by 10% in English-Speaking Caribbean
---------------------------------------------------------------
Trinidad and Tobago Newsday reports that in the English-speaking
Caribbean, there are 3.7 million people - or 52 per cent of the
population - who remain food-insecure.

But this is a ten per cent decrease compared to a survey done last
August, according to Trinidad and Tobago Newsday.  The food
security and livelihoods survey was done by the World Food Program
and the Caribbean Community (Caricom) (WFP Caribbean), the report
notes.

Last year's survey underscored growing financial hardship and
challenges because of rising cost of living in the aftermath of the
covid-19 pandemic, a release from WFP Caribbean said, the report
relays.

The survey also showed 98 per cent of respondents reported high
food prices in the three months before the survey - the highest
level reported since the first survey in 2020, the report
discloses.

The release added that in a region that is highly vulnerable to
climate shocks, the survey showed 42 per cent of households were
affected by climate-related hazards in the 12 months before the
survey, the report says.  These events continue to have a
significant impact on climate-sensitive livelihood activities such
as in agriculture and fisheries, the release said, the report
relates.

Regis Chapman, representative and country director of WFP Caribbean
multi-country office, said, "In this complex socio-economic
environment that is vulnerable to climate change, the priority of
Caricom and national governments to make food accessible amidst
these shocks is important.  Collaboration across agriculture,
social protection, education, and finance sectors, helps to improve
livelihood opportunities and contributes to achieving affordable
food for all," the report notes.

David Prendergast, director, directorate of single market and
external trade added, "Food insecurity is having major effects on
the socio-economic welfare of citizens throughout the region.  The
solution, however, can only be accomplished through joint regional
efforts in the planning and execution of comprehensive sustainable
actionable solutions geared towards building resilience against
climatic conditions and future market disruptions," the report
discloses.

WFP Caribbean said the results are a reminder of the importance of
the region's agenda to reduce imports by 25 per cent by 2025, the
report notes.

This also includes strengthening food systems in the Caribbean so
that they are resilient and adaptive to shocks and building on
measures to address the affordability, accessibility and
availability of livelihood inputs, the report relays.

The survey was completed with the support of the Canadian
government, the European Union and the US Agency for International
Development's Bureau of Humanitarian Assistance, the report adds.



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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
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