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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

          Wednesday, July 26, 2023, Vol. 24, No. 149

                           Headlines



A R G E N T I N A

ARGENTINA: Posts Worst Trade Deficit, Drought Foreshadow Recession


B R A Z I L

LIGHT SA: Elects Business Magnate Tanure, Three Others to Board


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Invites LATAM Capital to Invest in Tourism


J A M A I C A

NCB FINANCIAL: Outgoing Execs Deny Any Wrongdoing


M E X I C O

AXTEL SAB: S&P Affirms 'BB-' ICR on Debt Refinancing, Outlook Neg.


X X X X X X X X

CARIBBEAN: Seeks More Support in the Face of Climate Crisis

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A R G E N T I N A
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ARGENTINA: Posts Worst Trade Deficit, Drought Foreshadow Recession
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Patrick Gillespie at Bloomberg News reports that Argentina posted
its worst monthly trade deficit on record in June, underscoring the
impact of a record drought that's driving the economy into a
recession.

South America's second-largest economy recorded a US$1.7-billion
trade deficit in June, the largest negative figure in monthly data
going back to 1967, according to government data published,
Bloomberg News notes.  Exports were down 35 percent from a year
ago, with losses led by agriculture products, while imports fell by
17 percent, according to Bloomberg News.

Argentina's worst drought in its history cost the economy US$20
billion of commodity exports by government estimates, while Economy
Minister Sergio Massa hasn't cut back as much on imports to keep
other industries going, Bloomberg News says.  That dynamic is
ballooning the trade deficit, exacerbating Argentina's shortage of
dollars that's putting pressure on the peso and inflation running
over 115 percent, Bloomberg News notes.

Economists surveyed by the central bank estimate the economy will
enter recession by the end of the third quarter this year,
contracting about three percent for all of 2023, Bloomberg News
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.

In 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+'.

S&P's 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 March 24, 2023, 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-'.
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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LIGHT SA: Elects Business Magnate Tanure, Three Others to Board
---------------------------------------------------------------
Leticia Fucuchima at Reuters reports that Brazilian electricity
distributor Light SA elected four new members to its board of
directors, including Nelson Tanure, a business magnate linked to an
asset manager that recently became Light's largest shareholder.

The new board proposal came from the asset manager, WNT, which by
the end of last month secured a 28% stake in Light, amid the
distributor's bankruptcy proceedings, according to Reuters.

A securities filing showed that WNT's stake had increased to 30%.

The plan, which passed with 89.4% of votes, saw the number of seats
on the board increase to nine from seven. Helio Costa, Pedro de
Moraes Borba and Wendell Oliveira were also elected alongside
Tanure, the report notes.

Other top shareholders, Ronaldo Cezar Coelho and a Santander fund,
also backed WNT's proposal, the report relays.

The Rio de Janeiro-based firm filed for bankruptcy protection in
May as it looked to restructure some 11 billion reais ($2.29
billion) in debt, but its reorganization plan drew criticism from a
group of lenders, the report discloses.

In a statement, Light said its three top shareholders had pledged
to work together to look for solutions that "guarantee the
continuity of the provision of the company's services for the
benefit of the entire group and its stakeholders," the report
adds.

As reported in the Troubled Company Reporter-Latin America on
June 13, 2023, Bloomberg News reported that investor Nelson
Tanure said he'll vote in favor of the bankruptcy process
for Rio de Janeiro's power company Light SA at a shareholders'
meeting, making the approval of the measure practically certain.

Moody's Investors Service has downgraded to Ca from
Caa3 Light S.A.'s (Light) Corporate Family Rating, the Issuer
Ratings and Backed Senior Unsecured ratings of its operating
subsidiaries Light Servicos De Eletricidade S.A. (Light SESA) and
Light Energia S.A. (Light Energia), both guaranteed by Light. The
outlooks remain negative.

These actions follow the court approval of Light's judicial
recovery request under the Brazilian Bankruptcy and Reorganization
Law. The judicial recovery in Brazil is the closest equivalent to
Chapter 11 of the US Bankruptcy Code.



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D O M I N I C A N   R E P U B L I C
===================================

DOMINICAN REPUBLIC: Invites LATAM Capital to Invest in Tourism
--------------------------------------------------------------
Dominican Today reports that in light of the Dominican Republic's
remarkable tourism growth, authorities are exploring fresh
alternatives to expand the country's offerings for visitors
worldwide.  

Recently, Vice Minister for Economic Affairs and International
Cooperation, Hugo Rivera, met with representatives from LATAM
Capital Group, who are actively engaged in projects in Punta Cana,
according to Dominican Today.

During the meeting, Rivera highlighted the government's
implementation of a new sustainable tourism model in Pedernales,
aimed at attracting esteemed investors like Latam Capital, the
report notes.  This collaboration seeks to provide the project with
a distinct seal of excellence and security, leveraging the
expertise and reputation of respected firms such as LATAM Capital
Group, the report relates.

Mario Alegria, CEO of LATAM Group, expressed their shared
interests, stating, "We are working closely with Vice Minister
Rivera, particularly exploring the possibility of participating in
the Dominican government's construction initiatives in the new
development area located in Pedernales, the report notes.  We aim
to establish a fruitful public-private alliance that benefits all
involved parties," the report discloses.

Alegria further emphasized the allure of Pedernales, highlighting
its breathtaking Caribbean beaches, which he boldly described as
among the finest in the world, the report says.  Recognizing the
vast business potential for foreign investors in the Dominican
Republic, LATAM Capital Group expressed their delight at the
government's invitation to partake in the nascent development of
this area, the report notes.

As the discussions progress, the Dominican Republic eagerly
anticipates the establishment of successful partnerships that will
contribute to the country's sustainable tourism growth, providing
remarkable experiences for visitors while fostering economic
prosperity, 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.

S&P Global Ratings, in December 2022, raised its long-term foreign
and local currency sovereign credit ratings on the Dominican
Republic to 'BB' from 'BB-'. The outlook on the long-term ratings
is stable. S&P affirmed its 'B' short-term sovereign credit
ratings. S&P also revised its transfer and convertibility (T&C)
assessment to 'BBB-' from 'BB+'.  The stable outlook reflects S&P's
expectation of continued favorable GDP growth and policy continuity
over the next 12-18
months that will likely stabilize the government's debt burden.

In February 2023, S&P said its BB ratings reflect the country's
fast-growing and resilient economy.  It also incorporates the
country's historical political and social challenges in passing
structural reforms to contain fiscal deficits, despite recent
improvements in the electricity sector. The ratings are constrained
by relatively high debt, a hefty interest burden, and limited
monetary policy flexibility.

Fitch Ratings, in December 2022, affirmed the Dominican Republic's
Long-Term Foreign Currency Issuer Default Rating (IDR) at 'BB-'
with a Stable Rating Outlook.

Moody's affirmed the Dominican Republic's long-term issuer and
senior unsecured ratings at Ba3 and maintained the stable outlook
in March 2021.




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J A M A I C A
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NCB FINANCIAL: Outgoing Execs Deny Any Wrongdoing
-------------------------------------------------
Joel Julien at Trinidad Express reports that the chief executive
officer and the chief financial officer of NCB Financial Group Ltd,
who both commenced their vacation leave, have issued a joint
statement refuting any allegations of wrongdoing, saying that all
financial compensation they received from the organization was duly
approved by the board.

NCBFG's president and CEO Patrick Hylton and deputy CEO and CFO
Dennis Cohen issued a joint statement hours after the T&T Stock
Exchange announced that they were proceeding on three weeks'
vacation, according to Trinidad Express.

The shake-up at NCBFG came amid concerns among the shareholders
about the non-payment of dividends since May 2021 and news that two
managers had been raking in multi-billion Jamaican dollar
compensation packages, the report notes.

Hylton and Cohen said they needed to clarify the comments being
made, notes Trinidad Express.

"As you will appreciate we are professionals who have carefully
built our careers and our reputation over decades of service in the
sector in general and at NCB in particular.  We have established a
stellar record of performance over those years which speaks for
itself," they stated in the joint statement, the report relays.

"We cannot sit quietly by and allow our integrity to be impugned by
speculation and a misinterpretation of the facts and circumstances.
Firstly, we have done nothing wrong where our compensation is
concerned," it stated, the report notes.

Hylton and Cohen said all they have done is accepted payments as
approved by the board consequent on their surrender and return to
the company some J$13.8 billion of shares which they then owned
free and clear in July 2021, the report notes.

"The appropriate stock exchange releases were made at the time and
it was indicated that the company would be compensating us over
time for this act of surrender and return of the shares," they
said, the report discloses.

                      Asked to Take Leave

The statement said earlier this year they were asked to consider
amendments to their compensation "which would reduce the quantum
and we made certain proposals in that regard," the report notes.

"We were asked to take a look again which we did and we recently
presented another set of proposals to result in a deferral of a
significant portion of our compensation," they said, the report
says.

"The board requested that we look at further adjustments which
would hit a particular target," they added, the report notes.

They said the proposals were shared with acting chairman Prof Alvin
Wint, the report relays.

"We were scheduled to discuss them with him. A special board
meeting was held and we were subsequently informed by chairman
Lee-Chin that the board had taken a decision to ask us to go on
leave while certain discussions regarding a negotiated separation
take place. We agreed to proceed in this manner," they said, the
report discloses.

"Like so many other persons we have families including siblings,
children, friends and professional colleagues. The feedback some of
our families and friends have been getting from some of these news
reports has caused them undue concern and distress. We do not
believe this is fair to us or to them in all the circumstances,"
they noted, the report relays.

A notice from the T&T Stock Exchange announced that Michael
Lee-Chin resumed his duties as NCBFG's chairman cutting short his
previously announced three-month leave of absence, the report
relates.

And according to the notice "for the immediate future" Lee-Chin
"will carry some executive responsibilities," the report adds.

Radio Jamaica News previously reported in February 2022, that NCB
Financial has again avoided paying dividends after its earnings
fell short of prior periods. Prior to the COVID-19 pandemic, NCB
Financial was a faithful distributor of dividends, paying out a
record $8.3 billion in 2019. But amid the health crisis, large
financial institutions were told to safeguard their cash in case of
emergency.

According to Radio Jamaica, NCB Financial put a pause on dividends
that were usually paid quarterly, and since then has made only one
distribution totalling $1.2 billion or $0.50 per share.

As reported in the Troubled Company Reporter-Latin America on
Nov. 16, 2021, Jamaica Observer said that ravaged by lockdowns
induced by the novel coronavirus pandemic, the NCB Financial
Group (NCBFG) reported its net profit dipped 25 percent during
its just-concluded financial year.

The impact is however not only being felt in the company's
performance. Since the start of 2021, the NCBFG has lost 16% or
$57 billion of its value, more than half of the decline weighs on
the
net worth of its chairman, Michael Lee Chin, the report notes.  
At the close of trading, the group - by market capitalization - was

valued at $296 billion. That is down from the $353 billion the
company was valued at the start of the year, the report adds.



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M E X I C O
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AXTEL SAB: S&P Affirms 'BB-' ICR on Debt Refinancing, Outlook Neg.
------------------------------------------------------------------
On July 24, 2023, S&P Global Ratings affirmed its 'BB-'
issuer-credit rating on Mexican integrated telecommunication
company (ITC) Axtel S.A.B. de C.V. At the same time, S&P withdrew
its 'BB-' issue-level rating on its 6.375% senior unsecured notes
due 2024 post full repayment ahead of maturity.

The negative outlook continues to reflect S&P's expectation that
the decline in revenues and customer losses will not be offset in
the next 12 months, weakening the company's business risk profile.
This could cause Axtel to continue to lose market share and cash
flow to decline.

Rating Action Rationale

On July 21, 2023, Axtel fully repaid the $313.6 million outstanding
balance on its unsecured notes ahead of their maturity in November
2024. It did this through a syndicated loan for approximately $265
million and a bilateral loan for $60 million, both with five-year
tenors and floating rates.

S&P said, "As mentioned in our previous report, Axtel had managed
to refinance most of its debt other than these notes, so we believe
this transaction marks the conclusion of the company's refinancing
strategy and the strengthening of its liquidity position. We
consider that Axtel didn't take on additional debt, so we continue
to expect debt to EBITDA of about 3.0x for the next two years
(versus 3.5x in the last 12 months ending March 31, 2023)."

Post-refinancing, Axtel's pro forma total debt as of March 31,
2023, bears a floating interest rate, while it has an interest
coverage covenant of at least 2.75x. Currently, the company doesn't
maintain any hedges to mitigate volatility in interest rates. As a
result, S&P thinks that a 25% upward shift would lead to Axtel
breaching its incurrence interest coverage covenant.

Hence, in a stress scenario, Axtel may be limited in terms of
increasing debt capacity and will depend only on operating cash
flow. S&P will continue to monitor future hedging strategies from
the company and how it will reduce its exposure to interest rates
in the next 12 months.

In the past two years, Axtel's revenues have declined while it
faced a competitive market, the industry's delayed 5G deployment,
and lower budget spending from government entities. In S&P's view,
this represents a risk to Axtel's business risk profile which, if
not reversed, could reduce its scale and competitive advantage to
mitigate potential declines in future revenue.

However, Axtel's redefined business strategy is focused on
specialization. This helped it achieve 7.8% revenue growth in all
business lines as of first-quarter 2023 (from first-quarter 2022).
S&P expects the company to maintain consistent revenue generation
in the second half of 2023, allowing it to strengthen its scale.

The company's EBITDA margins dropped to 19.9% in the first quarter
of 2023 from 28.2% in 2022, below those of peers and the industry
average of about 30%. This was mainly due to provisions stemming
from its participation in Altan Redes S.A.P.I. de C.V. (Altan
Redes)'s bankruptcy proceedings and extraordinary reorganization
expenses from the change in business strategy for growth. S&P will
continue monitoring how the company will compensate for the drop in
profitability through higher market access. Otherwise, it could
reassess the negative effect lower margins may have on its business
risk profile if not reversed.

The spin-off is such that Alfa's shareholders will continue to
control the majority stake in Axtel with 53.9%, but under a new
entity, Controladora Axtel. S&P said, "We don't expect any changes
in Axtel's board and management or in its operating strategy and
financial policy. We believe the spin-off represents an opportunity
for Axtel to continue driving strategic initiatives for growth on
an independent basis, overseen directly by its stakeholders. Given
the divestment of Axtel, the company is no longer part of Alfa's
long-term strategy."

Environmental, Social, And Governance

ESG credit indicators: E-2, S-2, G-2




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X X X X X X X X
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CARIBBEAN: Seeks More Support in the Face of Climate Crisis
-----------------------------------------------------------
Dominican Today reports that the Ministers of Agriculture from
various Caribbean countries gathered both in person and online at
the Inter-American Institute for Cooperation on Agriculture (IICA)
headquarters in Costa Rica.  The meeting aimed to address the
urgent need for increased support to enhance the region's
resilience in the face of the climate crisis, improve agricultural
productivity, and combat food insecurity, according to Dominican
Today.

During the meeting, the ministers emphasized the importance of
bolstering the sector's resilience to climate change, boosting
productivity to reduce reliance on food imports, and leveraging new
technologies to attract younger generations to agricultural
activities, the report notes.

The officials expressed their confidence in the work being carried
out by IICA and its various technical cooperation projects in the
Caribbean, the report relays.  These initiatives focus on
strengthening small farmers, incorporating new technologies, and
promoting agricultural resilience, among other goals, the report
discloses.

Participating in the meeting were ministers of agriculture from
Antigua and Barbuda, Barbados, Grenada, Guyana, Haiti, Jamaica,
Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the
Grenadines, and Trinidad and Tobago, the report notes.

Minister Zulfikar Mustapha of Guyana expressed gratitude to IICA
for its support in areas such as rice production, climate change,
and disease control. He mentioned that the Caribbean Community
(CARICOM) countries have set a goal to reduce food imports by 25%
by 2025, the report says.

Minister Everly Greene of Antigua and Barbuda highlighted the
potential of the Caribbean region to work towards food security,
despite the associated high costs. He emphasized the need to tap
into abundant ocean resources for agricultural water supply, the
report notes.

Manuel Otero, Director General of IICA, assured the ministers that
their concerns and needs would be incorporated into the institute's
regional roadmap, the report relays.  He reaffirmed IICA's
commitment to supporting efforts in reducing food insecurity and
addressing the challenges posed by the climate crisis, the report
discloses.

IICA highlighted the susceptibility of Caribbean nations to
external shocks due to the openness of their economies, as well as
their vulnerability to increasingly frequent and severe natural
disasters caused by climate change, the report notes.

According to data from IICA, agriculture in the Caribbean
contributes 5.9% to the region's Gross Domestic Product (GDP), with
total sector exports reaching $4.26 billion in 2022, while imports
amounted to $10.1 billion, the report relays.

IICA emphasized the potential for the development of bioeconomy
activities in the Caribbean and stressed the importance of
increasing intra-regional trade within Latin America and the
Caribbean, 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
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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