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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, August 4, 2023, Vol. 24, No. 156

                           Headlines



A R G E N T I N A

ARGENTINA: IMF's Statement on Staff-Level Deal on a Policy Package
CAPEX SA: Fitch Affirms 'CCC+' IDR, Rates $239MM Unsec. Notes 'B-'


B R A Z I L

B3 SA BRASIL: Fitch Raises Long Term IDR to 'BB+'; Outlook Stable
BANCO DO BRASIL: Fitch Ups IDR to 'BB', Outlook Stable
PETROBRAS SA: Records 3.1% Up in Oil Production in 1H of 2023


C O L O M B I A

COLOMBIA: Holds Key Rate at 13.25% as Inflation Exceeds Peers


P U E R T O   R I C O

PUERTO RICO: Borrowers Lose Appeal on $384M Loan Sale


T R I N I D A D   A N D   T O B A G O

TRINIDAD & TOBAGO: Inflation Rate at 6.8% for June, CSO Reports

                           - - - - -


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A R G E N T I N A
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ARGENTINA: IMF's Statement on Staff-Level Deal on a Policy Package
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An International Monetary Fund (IMF) team, led by Luis Cubeddu,
Deputy Director of the Western Hemisphere Department and Ashvin
Ahuja, Mission Chief for Argentina, issued the following statement
in Washington, D.C. following conclusions of discussions on the
combined fifth and sixth reviews of the EFF arrangement for
Argentina.

"The Argentine authorities and IMF staff reached staff-level
agreement on a policy package and updated macroeconomic framework
to complete the combined fifth and sixth reviews under Argentina's
30-month EFF arrangement. This agreement is subject to the
continued implementation of agreed policy actions and approval by
the IMF Executive Board, which is expected to meet in the second
half of August. Completion of the fifth and sixth reviews will give
Argentina access of about US$7.5 billion. The proposed combination
of reviews and associated disbursement are intended to support
Argentina's policy efforts and near-term balance of payments needs,
including obligations to the Fund. The next review is expected to
take place in November.

Since completion of the fourth review, Argentina's economic
situation has become very challenging due to the
larger-than-anticipated impact of the drought, which had a
significant impact on exports and fiscal revenues. There have also
been policy slippages and delays, which have contributed to strong
domestic demand and a weaker trade balance. As a result, end-June
2023 performance criteria (PCs) for net international reserves
(NIR) accumulation, the primary fiscal balance and monetary
financing of the fiscal deficit were not reached. Meanwhile, the
introduction of new temporary administrative FX measures, including
in recent days, have occasioned nonobservance of the PCs against
the introduction of multiple currency practices (MCPs). As such,
waivers will be requested, as well as modifications of key targets,
on the basis of the agreed corrective actions to strengthen the
program."

"Given this context, the discussions focused on reaching agreement
on a policy package to rebuild reserves and enhance fiscal order.
Safeguarding stability and addressing underlying imbalances—high
inflation and low reserve coverage -- are fundamental to secure a
more sustainable, resilient, and inclusive growth over the medium
term. Agreement was reached in the following key areas:

FX and monetary policy.

A strengthening and harmonization of the FX regime remains
fundamental to durably improve reserve coverage and external
stability, and measures have been taken to encourage export
liquidation and contain imports in the near term. The rate of crawl
will continue to be used to preserve competitiveness and support
reserve accumulation goals.
To sustain peso demand and address high inflation, the authorities
plan to continue to ensure that policy rates remain sufficiently
positive in real terms. In addition, monetary policy will remain a
key instrument to contain market pressures, with interventions in
the parallel and futures FX markets focused on addressing
disorderly conditions.
Fiscal policy. The 2023 primary fiscal deficit target remains
unchanged at 1.9 percent of GDP. Adherence to the target requires
further tightening the fiscal stance in the second half of this
year, supported by a series of agreed revenue and spending
measures, while protecting priority infrastructure and social
programs.

On the revenue side, the new taxes on FX access for imported goods
and services, and new measures to mobilize export liquidation will
help offset lower export duties resulting from the drought.
On the expenditure side, efforts remain necessary to (i) contain
wage bill growth, (ii) to update energy tariffs to better reflect
changes in production costs, while improving the progressivity of
the system; and (iii) to strengthen spending controls through
better targeted social assistance and further rationalization of
current transfers to provinces and state-owned enterprises.
Financing strategy. The agreed fiscal path assumes no additional
reliance on direct monetary financing of the fiscal deficit. The
recent and successful voluntary debt exchanges have significantly
reduced rollover risks and are expected to support the mobilization
of additional net domestic financing during the rest of the year.
Interventions in the secondary bond markets will focus on securing
normal market functioning, while protecting the central bank
balance sheet.

Reserves. The agreed policy package should boost reserves during
the remainder of this year, consistent with a cumulative net
international reserves accumulation target of around US$1 billion
by end-2023 (compared to a target of US$8 billion at the time of
fourth review). Reserve accumulation is also expected to be
supported by improvements in the energy balance (resulting from
completion of the first phase of the gas pipeline) and by the
expected recovery from the drought starting in the latter part of
this year.

Given the economic challenges, the authorities have agreed to
firmly implement the policy package in the weeks and months ahead,
and to adapt proactively to evolving external and domestic
conditions. They also underscored once again their continued
commitment to remain current on their financial obligations to the
Fund, in line with their external sustainability objectives.

We thank the Argentine authorities for the ongoing open and
constructive discussions. We also welcome their commitment to
strengthen the program and take the actions necessary to secure
Argentina's macroeconomic stability during this challenging period,
marked by the unprecedented drought as a central factor."

                      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 June 13, 2023, raised its local currency
sovereign credit ratings on Argentina to 'CCC-/C' from 'SD/SD' and
its national scale rating to 'raCCC+' from 'SD'. S&P also affirmed
its 'CCC-/C' foreign currency sovereign credit ratings on
Argentina. The outlook on the long-term ratings is negative. S&P's
'CCC-' transfer and convertibility assessment is unchanged. None
of
its rated bond issues are affected.

S&P said the negative outlook  on the long-term ratings is based on

the risks surrounding pronounced  economic imbalances and policy
uncertainties before and after the 2023 national elections.
Divisions
within the government coalition, and infighting among the
opposition,
constrain the sovereign's ability to implement timely changes in
economic policy.

Fitch Ratings also upgraded on June 13, 2023, Argentina's
Long-Term Foreign Currency (FC) Issuer Default Rating (IDR) to
'CC' from 'C' and affirmed the Long-Term Local Currency (LC) IDR
at 'CCC-'. Fitch typically does not assign Outlooks to sovereigns
with a rating of 'CCC+' or below.

The upgrade of the FC IDR reflects that Fitch no longer deems a
default-like process to have begun, as the authorities have not
signaled a clear intention to follow through with an intra-public
debt swap announced in March. The new 'CC' rating signals a default

event of some sort appears probable in the coming years, regardless

of the outcome of upcoming elections. The affirmation of the LC IDR

at 'CCC-' follows the peso debt swap in June that Fitch did not
deem to be a "distressed debt exchange" (DDE).

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.

CAPEX SA: Fitch Affirms 'CCC+' IDR, Rates $239MM Unsec. Notes 'B-'
------------------------------------------------------------------
Fitch Ratings has affirmed Capex S.A.'s Long-Term Foreign and Local
Currency Issuer Default Ratings (IDRs) at 'CCC+'. Fitch has also
affirmed the company's USD300 million senior unsecured bonds due
2024 at 'B-'/'RR3'.

In addition, Fitch has assigned 'B-'/'RR3' rating to the proposed
issuance of up to USD239 million of amortizing senior unsecured
notes due in 2028 as part of an exchange offer.

Capex is rated two notches higher than Argentina's sovereign rating
(CC) due to its diversified cash flow profile, as the oil business
offsets the company's exposure to CAMMESA (Compania Administradora
del Mercado Mayorista Electrico S.A.). Given its reliance on
government subsidies, CAMMESA's credit quality is strongly related
to the sovereign. The company's oil business accounts for more than
70% of its revenue and EBITDA.

Per Fitch's "Country-Specific Treatment of Recovery Ratings
Criteria," Argentina is categorized in Group D, capping it at
'RR4'. Nevertheless, based on precedent in Argentina where issuers
have launched direct debt exchanges (DDEs) that did not result in a
reduction in principal and the recoveries were above the implied
recovery of an 'RR3' (51% to 70%), Capex's recovery rating is
'RR3'.

KEY RATING DRIVERS

Exchange Offer: The proposed bonds will be issued as part of an
exchange offer whereby Capex's bondholders have two options to
tender their current USD300 million 6.875% senior unsecured notes
due 2024. The first one is to receive a combination of USD cash
consideration equal to the lesser USD50 million or 21% of the total
exchange, and new notes bearing an interest rate of 9.25% equal to
the remaining amount. The second option involves an exchange
conversion ratio of 1.04x. This transaction is voluntary and
subject to bondholder participation. If successful, Fitch believes
the transaction would reduce Capex's refinancing risks given the
current capital controls in place in Argentina.

Impact of Capital Controls: The Central Bank of Argentina (BCRA)
extended capital controls restrictions through the end of 2023,
requiring entities with hard-currency international debt and hard
currency local bonds maturing (principal only) through the end of
this year, to present a plan to the BCRA that assumes at least 60%
of the debt to be refinanced with an average maturity of two years,
with the remainder to be settled in cash, accessing the Argentina's
official exchange market. The BCRA approved Capex's current debt
exchange plan. The cash consideration will be finance through
cross-border pre-export financing.

Weak Operating Environment: Capex's ratings reflect regulatory risk
given strong government influence in the energy sectors. Capex
operates in a highly strategic sector where the government has a
role as the price/tariff regulator and controls subsidies for
industry players. Fitch estimates that oil and gas production
comprised nearly 70% of 2023 EBITDA followed by approximately 20%
from the electric business. Over the rating horizon, oil and gas
business will remain a key contributor to cash flow generation,
representing approximately 70% of the company's consolidated
EBITDA.

Advantageous Vertical Integration: Capex is an integrated
thermoelectric generation company whose vertically integrated
business model gives it an advantage over other Argentine
generation companies, especially given existing gas limitations in
the country. Capex benefits from operating efficiencies as an
integrated thermoelectric generation company and the flexibility
from having its own natural gas reserves to supply its plant. The
company's generating units are efficient and the proximity to its
natural gas reserves in the Agua del Cajon field, coupled with gas
transportation restrictions from Neuquen basin to the main
consumption area in Buenos Aires, reduces its gas supply risk.

Small Production Profile: Fitch projects the company's production
to be on average roughly 17,500 boe per day (boed) from FY2024 to
FY2027, with gas production representing approximately 54% of total
output. As of April 2023, 1P reserves were 84.2 million boe with
60% related to oil, and PDP reserves of 47.3 million boe. The
latter numbers yield reserve life ratios of 13 and seven years,
respectively, based on current production.

Moderate Medium-term Leverage: Capex's FY2024 gross leverage is
estimated to be close to 3.0x mainly due to the due to lower oil
prices than anticipated. It is then expected to decline to 2.0x by
FY2027 due to the amortizing nature of the new notes. Fitch expects
average EBITDA interest coverage to be strong at an average of
roughly 6.0x over the rating horizon. Net leverage should be close
at or below 3.0x over the rating horizon.

DERIVATION SUMMARY

As a vertically integrated energy and electricity company, Capex 's
'CCC+' Long-Term Foreign and Local Currency IDRs reflect its
exposure to CAMMESA as an offtaker for its electricity and gas
revenues, as well as private offtakers for its oil revenues. Capex
is rated one notch below Petroquimica Comodoro Rivadavia S.A (PCR;
B-/Stable), which has a notable percentage of its EBITDA from
exports, offshore EBITDA from Ecuador (B-/Negative) and offshore
hard currency. MSU Energy (CCC-) and Generacion Mediterranea S.A.
(CCC-) are rated two notches lower due to their high operational
exposure to Argentina and overall regulatory risk.

Capex is a small oil and gas producer with operation exclusively in
Argentina. Capex's production is expected to stay at an average of
17,500boed through fiscal years 2024-2027. Capex has a strong 1P
reserve life of 13 years compared PCR reserve life of four years.

Capex's gross leverage is expected to be close to 3.0x in FY2024
due to lower realized oil prices, and expected to descend to 2.0x
by FY2027. Capex's expected medium-term leverage is in line with
than that of oil and gas peer PCR (3.0x in FY2023 and close to 2.0x
by FY2025) and Pampa Energia (averaging 2.0x over the rating
horizon). Unlike most of its oil & gas peers, Capex does have a
more diversified business model with its power generation segment.
As an integrated energy company, Capex compares best with Pampa
Energia.

KEY ASSUMPTIONS

-- Fitch's Price deck for Brent oil prices adjusted for Capex's
FYE of April 30 at $73/barrel in 2024, $78 in 2025, $63 in 2026 and
$59 2027;

-- Natural gas production of approximately 9,500boed between
fiscal years 2024-2027;

-- Realized natural gas prices at USD2.4/MMBTU during fiscal years
2023-2026;

-- Oil production reaching approximately 8,000boed between fiscal
years 2024-2027;

-- Annual electricity production of approximately 4,500GWh;

-- Electricity prices denominated in Argentine pesos around
USD12.00/MWh;

-- Diadema Wind Farm average availability factor from fiscal years
2023-2026 at 96% and average load factor of 49% with an average PPA
price of USD103/MWh;

-- Total capex of approximately USD500 million between fiscal
years 2024-2027, mostly concentrated in the fields of Pampa del
Castillo and Agua del Cajon;

-- No dividends payments between FY2024 through FY2027.

RATING SENSITIVITIES

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

-- An upgrade of Argentina's ratings could result in a positive
rating action;

-- Net production rising on a sustainable basis to 35,000boed;

-- Increase in reserve size and diversification while maintaining
a minimum 1P reserve life of at close to 10 years.

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

-- A downgrade by more than one notch of Argentina's country
ceiling;

-- A reversal of government policies that result in a significant
increase in subsidies coupled with a delay in payments for
electricity sales;

-- Sustainable production size decreased to below 10,000boed;

-- Reserve life decreased to below seven years on a sustained
basis;

-- A significant deterioration of credit metrics to total
debt/EBITDA of 4.5x or more.

-- Heightened refinancing risk pertaining to the bond due in May
2024 due to the capital constrains impeding the ability to
refinance.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: As of April 2023, Capex S.A. had available cash
and equivalents of USD10 million. Most of the cash is held offshore
in US dollar accounts. Capex's main financial obligation is a
USD300 million bond due in 2024, with an outstanding balance of
USD239 million.

ISSUER PROFILE

Capex is an integrated Argentine company dedicated to the
exploration and exploitation of hydrocarbons and the generation of
electric, thermal and renewable energy.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING

The principal sources of information used in the analysis are
described in the Applicable Criteria.

ESG CONSIDERATIONS

The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' 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. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.



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B R A Z I L
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B3 SA BRASIL: Fitch Raises Long Term IDR to 'BB+'; Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has upgraded the Long-Term Issuer Default Ratings
(IDRs) of B3 S.A. Brasil, Bolsa, Balcao (B3) to 'BB+' from 'BB' and
XP Inc. (XP) to 'BB' from 'BB-'. In addition, the Short-Term IDRs
have been affirmed at 'B'. The Rating Outlook is Stable for both
issuers.

The rating action review included Brazilian Non-Bank Financial
Institutions (NBFIs) with IDRS at the same level or one notch above
the sovereign. The rating actions on Brazilian NBFIs follows
Brazil's Sovereign ratings upgrade to 'BB' from 'BB-' and the
Sovereign Country Ceiling upgrade to 'BB+' from 'BB' on July 26,
2023.

KEY RATING DRIVERS

B3

B3's IDRs are based on its standalone credit profile (SCP), which
is one notch above the assigned Sector Risk Operating Environment
(SROE) of 'bb' and the sovereign ratings (BB/Stable). Fitch views
it as unlikely for the differential to widen in the foreseeable
future.

B3's SCP reflects its strong business profile, with aa dominant
franchise in trading and clearing service across multiple asset
classes in Brazil, which allows it to generate net revenues of USD
1.8 billion (four-year average as of end-2022). The ratings also
reflect B3's above-peer profitability, strong margins and moderate
risk appetite with strong operational and counterparty risk
infrastructure. B3's ratings also incorporate solid management,
corporate governance, adequate capital and leverage ratios, and
sound funding, liquidity and coverage.

XP Inc.

XP Inc's IDRs are at the same level as the assigned Sector Risk
Operating Environment (SROE) score of 'bb' and sovereign ratings
level (BB/Stable). Fitch views as unlikely that the entity will
have its ratings widen from the sovereign level in the foreseeable
future.

XP Inc ratings are based on the entity´s standalone credit
profile, which reflects its strong business profile and leading
retail brokerage franchise, with a solid business model which has
evolved into a full financial solution supported by a robust
technological platform and strong brand that are key competitive
advantages over domestic peers.

XP Inc.'s ratings also consider its robust management and corporate
governance, well-managed risk management framework, strong asset
quality, resilient profitability, robust funding structure and
still adequate -- although increasing -- leverage ratios.

Debt Ratings

The senior unsecured issuances of both B3 and XP Inc were also
upgraded, reflecting the fact that default on senior obligations
equates to the default of the issuers (as captured by the issuer's
IDR).

RATING SENSITIVITIES

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

Fitch considers that all NBFIs included in this review remain
constrained by the sovereign rating or by the usual maximum uplift
of one notch above the sovereign and, therefore, the main
sensitivities of these entities are linked to potential changes in
the sovereign ratings, in any direction.

Rating downside would primarily be also contingent on a downgrade
of the Brazilian sovereign rating or the SROE factor score.

For more details and for the individual sensitivities for each
institution, please access the individual report of each entity.

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

Rating upside would primarily be contingent on an upgrade of the
Brazilian sovereign rating or the SROE factor score.

For more details and for the individual sensitivities derived or
each institution, please access the individual report of each
entity.

ADJUSTMENTS

B3

The Standalone Credit Profile has been assigned below the implied
Standalone Credit Profile due to the following adjustment
reason(s): Sovereign Rating (negative).

Fitch has assigned an Earning and Profitability score of 'bbb' that
is below the 'aa' category implied score due to the following
adjustment reason: Revenue Diversification (negative).

Fitch has assigned a Capitalization and Leverage score of 'bbb-'
that is below the 'a' category implied score due to the following
adjustment reason: Tangible Capital (negative).

Fitch has assigned a Funding, Liquidity and Coverage score of
'bbb-' that is below the 'aa' category implied score due to the
following adjustment reason: Business Model (negative).

XP Inc

Fitch has assigned an Asset Quality score of 'bb' that is below the
'bbb' category implied score due to the following adjustment
reason: Non-Loan Exposures (negative).

Fitch has assigned an Earning and Profitability score of 'bb+' that
is below the 'bbb' category implied score due to the following
adjustment reason: Revenue Diversification (negative).

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Financial Institutions and
Covered Bond issuers have a best-case rating upgrade scenario
(defined as the 99th percentile of rating transitions, measured in
a positive direction) of three notches over a three-year rating
horizon; and a worst-case rating downgrade scenario (defined as the
99th percentile of rating transitions, measured in a negative
direction) of four notches over three years. The complete span of
best- and worst-case scenario credit ratings for all rating
categories ranges from 'AAA' to 'D'. Best- and worst-case scenario
credit ratings are based on historical performance.

SUMMARY OF FINANCIAL ADJUSTMENTS

Fitch has made an adjustment to XP Inc´s net adjusted leverage
ratio. In addition to the adjustments mentioned under the NBFI
Criteria, retirement plan funds accounted in XP Inc´s own balance
sheet and uninvested cash from clients have been fully deducted
from the calculation.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING

The principal sources of information used in the analysis are
described in the Applicable Criteria.

ESG CONSIDERATIONS

The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' 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. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.

BANCO DO BRASIL: Fitch Ups IDR to 'BB', Outlook Stable
------------------------------------------------------
Fitch Ratings has upgraded the Long-Term (LT) Issuer Default
Ratings (IDRs) of 12 Brazilian financial institutions (FIs)
following the upgrade of Brazil's sovereign LT IDRs to 'BB'/Stable
from 'BB-'/Stable on July 26, 2023, and after the adjustment of
Fitch's assessment of the operating environment (OE) for Brazilian
banks to 'bb'/Stable from 'bb-'/Stable.

The OE upgrade reflects the positive trend in Fitch's core metrics
for the OE assessment and the Brazilian economy's sustained
recovery, translating to resilient banking sector performance.
Fitch's key metrics used to determine the country's OE score are
the Operational Risk Index (ORI) and GDP per capita. Both of these
metrics indicated a positive trend for Brazil as the OE recovered
from the recent macro challenges. The latest ORI was 51.3% compared
with 49.7% in 2022, while, as of YE2022, the GDP per capita was
USD8,905, compared with USD7,705 in 2021.

The rating action review includes Brazilian FIs whose IDRs are
either constrained at the same level or one notch above Brazil's
sovereign rating. The banks' National Ratings were not directly
affected, as these ratings reflect the relative strengths and
weaknesses of each institution in the domestic jurisdiction.

KEY RATING DRIVERS

Government Support-Driven FIs:

Caixa Economica Federal (Caixa)

Banco do Brasil S.A. (BdB)

Banco Nacional de Desenvolvimento Economico e Social (BNDES)

Banco do Nordeste do Brasil S.A. (BNB)

Banco da Amazonia S.A. (BdA)

The banks' IDRs in this group are driven by their GSRs which are
aligned to Brazil's sovereign ratings and, consequently, the
revision of their IDRs to 'BB' with a Stable Outlook and the GSR to
'bb' mirrors the action taken on the LT IDRs of Brazil. In addition
to having their full (or major) ownership exercised by the
Brazilian federal government, these institutions have and important
and long-lasting policy role, as the agency considers they are key
agents for the implementation of government economic guidelines.

VR-Driven FIs Rated at or Above the Sovereign:

Banco Bradesco S.A. (Bradesco)

Itaú Unibanco S.A. (Itau)

Itaú Unibanco Holding S.A. (IUH)

Banco BTG Pactual S.A. (BTG)

BdB

Bradesco, IUH, Itau and BTG's IDRs are driven by their intrinsic
creditworthiness (or Viability Ratings [VRs]). BdB's IDRs are
driven by potential support, but the IDRs are further underpinned
by its VR. This group includes banks with consolidated business
profiles in the context of the domestic environment, but also with
strong links imposed by its historical ample exposure to the
sovereign.

Fitch has upgraded BdB's VR to 'bb' from 'bb-'. In the case of
Bradesco, Itau and IUH Fitch has upgraded their IDRs and VRs to
'BB+' and 'bb+', respectively, which are now one notch above the
sovereign level, reflecting their fairly diversified and very
strong credit profiles; their historical resilience, performing as
a safe haven in periods of economic uncertainty; and the relevant
roles they play in the Brazilian financial system. This also means
that they have robust financial cushions to absorb potential
outcomes from adverse external economic conditions compared with
entities rated at lower levels. Fitch has also upgraded Itau, IUH
and Bradesco's GSRs (to bb- from b+) following the same rating
action on Brazil's IDRs.

Fitch upgraded BTG's IDRs to BB from BB-. The bank's IDRs are in
line and driven by its standalone creditworthiness as measured by
its VR, which was also upgraded to 'bb' from 'bb-'. Prior to the
rating actions, BTG IDRs were on Positive Outlook, reflecting
Fitch's view that maintenance of demonstrated improvements in the
bank's business and financial profile could provide some upside
potential for its rating over the near term. However, the
previously assigned VR was also one notch below the implied VR, as
Fitch rarely assigns a bank VR above the sovereign rating.
Following Brazil's sovereign rating action and the upgrade on the
bank's IDRs, the Outlook on the ratings is now Stable.

Shareholder Support Driven (Local and Foreign Owned) FIs:

Banco BOCOM BBM S.A. (BBM)

Banco Pan S.A. (Pan)

BTG Pactual Holding S.A. (BTGH)

IDRs on the institutions of this group are driven by the
Shareholder Support Rating (SSR), which reflects the likelihood of
receiving support from their respective parents (or driven by the
credit profile of their main operating subsidiary, as in the case
of BTGH), which are rated at or above the Brazilian sovereign
rating.

BBM's IDRs are driven by its SSR were upgraded to 'bb+' from 'bb'
and reflect Fitch's assessment of the expected institutional
support, in case of need, from its parent, Bank of Communications
Co., Ltd. (BOCOM; A/Stable). Its Long-Term Foreign Currency IDR was
upgraded to 'BB+'/Stable from 'BB'/Stable and is constrained by
Brazil's 'BB+' Country Ceiling, while their Long-Term Local
Currency IDR was upgraded to 'BBB-'/Stable from 'BB+'/Stable since
it remains capped at two notches above Brazil's Local Currency
sovereign rating (BB/Stable). BBM's VR has been affirmed at 'bb-'.

Fitch's view is that the propensity and ability of its parent to
provide support is linked to Brazilian sovereign risk and the
country ceiling, and might be reduced in case of extreme sovereign
stress, despite the group's strategic commitment to the country.

Pan's IDRs were also upgraded to 'BB'/Stable from 'BB-'/Positive
due to Fitch's understanding that this level of rating reflects
BTG's high propensity of support since both controller and
subsidiary operate in the same jurisdiction, are subject to the
same regulations, and, following the acquisition, are part of the
same regulatory group under the prudential regulation of Brazil's
central bank. Therefore, the SSR was also upgraded to 'bb' from
'bb-' and in Fitch's view, a lack of support would represent a high
reputational risk for the parent. The Stable Outlook on Pan's
Long-Term IDRs reflects the Outlook assigned to its parent. PAN's
VR has been affirmed at 'bb-'.

BTGH is a pure Holding company and its IDRs are the same level of
BTG's IDRs. The ratings equalization is based on the high
correlation between the credit risk of BTG and BTGH.

RATING SENSITIVITIES

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

Fitch considers that all FIs included in this review remain
constrained by the sovereign rating or by the usual maximum uplift
of one notch above the sovereign and, therefore, the main
sensitivities of all entities included in this action are linked to
potential changes in the sovereign ratings, in any direction.
Similarly, IDRs, which are derived from SSR or GSR, of the entities
mentioned in this report remain dependent on Fitch's view regarding
the ability and/or propensity of its ultimate parent in providing
support to the controlled entity/subsidiary in case of need and
will change depending on Fitch's opinion on it. For more details
and for the individual sensitivities derived from each institution
VR, please access the individual report of each entity.

Rating downside primarily would be also contingent on a downgrade
of the Brazilian sovereign rating or the OE.

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

Upside is contingent to an upgrade on the sovereign or the OE.

OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS

Debt Ratings

The senior unsecured issuances from BdB, BTG, IUH, Bradesco and
BNDES were also upgraded, reflecting the fact that default on
senior obligations equates to the default of the banks (as captured
by the issuer's IDR). The subordinated issuances from BTG and IUH
were also upgraded following the one notch upgrade on its
respective anchor ratings (i.e., its IDRs, based on the respective
VRs of each of these two entities). BTG's rating of the T2
subordinated notes remain two levels below its VR, reflecting the
expected loss severity. IUH's additional Tier 1 (AT1) securities
were affirmed at 'B', four notches below the bank's VR, in line
with Fitch's baseline notching for high loss-absorbing and
subordinated securities (two for loss severity and two for
non-performance risk).

OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES
The senior unsecured debt ratings are sensitive to a change in
banks' IDRs. The hybrid ratings (for banks' Tier II subordinated
debt and AT1) are sensitive to a change in their anchor VR.

VR ADJUSTMENTS

Itau and IUH:

The Asset Quality score of 'bb' was assigned above the 'b' category
implied score because of the following adjustment reasons:
Collateral and Reserves (positive).

Bradesco:

The Asset Quality score of 'bb' was assigned above the 'b' category
implied score because of the following reason: Collateral and
Reserves (positive).

The Capitalization & Leverage score of 'bb-' has been assigned
above the 'b' category implied score because of the following
adjustment reasons: Reserve Coverage and Asset Valuation
(positive).

BTG:

The Asset Quality score of 'bb' has been assigned above the implied
'b' Asset Quality score due to the following adjustment reason:
Underwriting Standards and Growth (positive).

BdB:

The Asset Quality score of 'bb' was assigned above the implied
score of 'b' due to the following reason: Collateral and Reserves
(positive).

BBM:

The Business Profile score of 'bb-' has been assigned above the
implied 'b' Business Profile score due to the following adjustment
reason: Group Benefits and Risks (positive).

The Earnings & Profitability score of 'b+' has been assigned below
the implied 'bb' Earnings & Profitability score due to the
following adjustment reason: Revenue Diversification (negative).

The Funding & Liquidity score of 'bb-' has been assigned above the
implied 'b' Funding & Liquidity score due to the following
adjustment reason: Non-Deposit Funding (positive).

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Financial Institutions and
Covered Bond issuers have a best-case rating upgrade scenario
(defined as the 99th percentile of rating transitions, measured in
a positive direction) of three notches over a three-year rating
horizon; and a worst-case rating downgrade scenario (defined as the
99th percentile of rating transitions, measured in a negative
direction) of four notches over three years. The complete span of
best- and worst-case scenario credit ratings for all rating
categories ranges from 'AAA' to 'D'. Best- and worst-case scenario
credit ratings are based on historical performance.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING

The principal sources of information used in the analysis are
described in the Applicable Criteria.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
International Entity's SSR and IDRs are linked to the IDRs of its
parent.

PAN's SSR is linked to the IDRs of its parent's (BTG Pactual).

BOCOM BBM's IDRs and SSR are driven by support from the Bank of
Communications Co, Ltd. (BOCOM; LT FC IDR A/Stable)Caixa, BNB,
BNDES, BASA and Banco do Brasil´s GSR and IDRs are linked to the
IDRs of Brazil.

Bradesco and IUH's GSR are linked to the IDRs of Brazil.

ESG CONSIDERATIONS

Fitch assigns Caixa a ESG Relevance Score for 'Community Relations,
Social Access, Affordability' of '4[+]'. CAIXA's public sector
ownership supports its ability to attract low-cost retail deposits,
while its policy role ensures it retains a dominant position in the
low-income retail mortgage market. These factors considerably boost
CAIXA's franchise, strengthen its credit profile and have a
moderately positive impact on its ratings in conjunction with other
factors.

Fitch's ESG Relevance Score for Governance Structure for Caixa,
BNDES, BNB and BdA was changed to '3' from '4' reflecting
substantive enhancements to the companies' governance structure
over the past years and Fitch's expectation of overall stability in
the long-term strategy of the banks.

The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' 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. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.

PETROBRAS SA: Records 3.1% Up in Oil Production in 1H of 2023
-------------------------------------------------------------
Richard Mann at Rio Times Online reports that in the first half of
2023, Brazil's Petrobras revealed a 3.1% growth in its oil and
natural gas production, averaging at 3.71 million barrels per day
(mbpd), compared to the same period in 2022.

The company's Q2 average daily production rose to 3.69 mbpd, a 3.9%
increase from 2022, albeit a 1.4% decrease from Q1 2023, according
to Rio Times Online.

The figures cover Petrobras' hydrocarbon production domestically
and internationally, including areas where it is the operator in
partnership with other firms, the report notes.

                     About Petrobras

Petroleo Brasileiro S.A. or Petrobras (in English, Brazilian
Petroleum Corporation - Petrobras) is a semi-public Brazilian
multinational corporation in the petroleum industry headquartered
in Rio de Janeiro, Brazil.  Petrobras control significant oil and
energy assets in 16 countries in Africa, the Americas, Europe and
Asia.  But, Brazil represents majority of its production.

The Brazilian government directly owns 54% of Petrobras' common
shares with voting rights, while the Brazilian Development Bank and
Brazil's Sovereign Wealth Fund (Fundo Soberano) each control 5%,
bringing the State's direct and indirect ownership to 64%.

A corruption scandal was uncovered in 2014 that involved
Petrobras.

The scandal related to money laundering that involved Petrobras
executives.  The executives were alleged to get received kickbacks
from overpriced contracts, to the tune of about $3 billion in
total.  Over a thousand warrants were issued against politicians
and businessmen in relation to the scandal.  In 2016,  Marcelo
Odebrecht, CEO of Odebrecht, was sentenced to 19 years in prison
after being convicted of paying more than $30 million in bribes to
Petrobras executives.

In January 2018, Petrobras agreed to pay $2.95 billion to settle a
U.S. class action corruption lawsuit.  In September 2018, Petrobras
agreed to pay $853.2 million to settle with Brazilian and U.S.
authorities.

In July 2022, Fitch Ratings affirmed Petrobras' BB- Long-Term
Issuer Default Rating. In addition, Fitch has revised the Rating
Outlook to Stable from Negative following a similar revision to
Brazil's Sovereign Rating Outlook.  Also in July 2022, Egan-Jones
Ratings Company upgraded the foreign currency and local currency
senior unsecured ratings on debt issued by Petrobras to BB+ from
BB.



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

COLOMBIA: Holds Key Rate at 13.25% as Inflation Exceeds Peers
-------------------------------------------------------------
Bloomberg News reports that Colombia held interest rates at a
24-year high on July 31 to curb inflation that far exceeds that of
regional peers.

The central bank kept its benchmark rate at 13.25% for a second
straight month, in line with expectations, according to Bloomberg
News. The decision was unanimous, bank Governor Leonardo Villar
told reporters in Bogota, the report notes.

Colombia was the last of Latin America's major economies to end
record monetary tightening, and is now forecast to be among the
last to start easing policy, the report relays.

Colombian annual inflation slowed to 12.13% in June, following a
gradual easing path from a March peak, the report says.  That's
still by far the fastest pace among major inflation-targeting
economies in Latin America: Brazil, Mexico, Peru and Chile all have
inflation rates well below 10%, adds the report.

Colombian core inflation, which excludes the most volatile items of
the consumer basket, has accelerated for 20 straight months, while
inflation expectations remain elevated. The central bank targets
inflation of 3%, the report relates.

Fuel Subsidies

According to Bloomberg News, policymakers have reason to be
cautious. The government of President Gustavo Petro is gradually
phasing out gasoline subsidies, keeping upward pressure on
transport costs, while the El Nino weather phenomenon will likely
hit farmers this year, pressuring food prices, it notes.

Working in the central bank's favor, the Colombian peso's 25%
appreciation this year - the best performance among major emerging
market currencies - is helping to curb import prices, notes
Bloomberg.

The report says economists surveyed by the central bank forecast
that Colombia will start to cut borrowing costs in October.





=====================
P U E R T O   R I C O
=====================

PUERTO RICO: Borrowers Lose Appeal on $384M Loan Sale
-----------------------------------------------------
Yun Park of Bloomberg Law reports that a group of borrowers in
Puerto Rico lost a constitutional challenge alleging that the
federal board overseeing the island's restructuring failed to
review a $384 million loan sale agreement between Puerto Rico's
Economic Development Bank and a private investment company.

The plaintiffs' including R&D Master Enterprises Inc., Pro Pave
Corp., and other businesses owned by a couple on the
island' lacked standing to sue the Financial Oversight and
Management Board (FOMB) for Puerto Rico, the US Court of Appeals
for the First Circuit said. The appeals court upheld a
lower court's dismissal of the case.

Puerto Rico's Economic Development Bank sold a portfolio of loans
valued at over $384 million to PR Recovery and Development JV LLC,
an investment company, at a discount in 2018. Soon after the sale,
PR Recovery initiated collection and foreclosure actions in Puerto
Rico courts against hundreds of borrowers, including the
plaintiffs, according to court records.

The plaintiffs sued the federal oversight board, which was created
by the Puerto Rico Oversight, Management, and Economic Stability
Act, or PROMESA. The 2016 law allows the board to squash some
contracts involving government-backed entities on the island before
they're executed.

The borrowers claimed the oversight board's failure to review the
loan sale agreement violated their constitutional and statutory
rights, forcing them to pay up on loans in a "sham transaction." PR
Recovery shouldn't have been able to purchase the loans because
individual contracts restricted the Economic Development Bank from
transferring the loans to any entity that isn't a financial
institution, according to the lawsuit.

The US District Court for the District of Puerto Rico previously
dismissed the case, saying the claims were brought outside of a
one-year statute of limitations. The First Circuit upheld the
dismissal, but on the grounds that the plaintiffs failed to show
standing.

"Appellants' complaint has failed to allege that the FOMB's
inaction caused their claimed injury, but even if it did, a court
order compelling the FOMB to review the loan sale agreement might
do nothing at all to redress Appellants' injury," the panel said.

The plaintiffs aren't planning to appeal the ruling. "We are not
seeking a cert to the Supreme Court of the United States for
strategic or business reasons," Humberto Guzman-Rodriguez, an
attorney for the borrowers, said by phone.

This case is R&D Master Enterprises, Inc., et al v. FOMB, et al,
1st Cir. App., No. 22-01342, 7/25/23.

                        About Puerto Rico

Puerto Rico is a self-governing commonwealth in association with
the United States.  The chief of state is the President of the
United States of America.  The head of government is an elected
Governor.  There are two legislative chambers: the House of
Representatives, 51 seats, and the Senate, 27 seats.  The
governor-elect is Ricardo Antonio "Ricky" Rossello Nevares, the son
of former governor Pedro Rossello.

In 2016, the U.S. Congress passed PROMESA, which, among other
things, created the Financial Oversight and Management Board and
imposed an automatic stay on creditor lawsuits against the
government, which expired May 1, 2017.

The members of the oversight board are: (i) Andrew G. Biggs, (ii)
Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J.
Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii)
David A. Skeel Jr.

On May 3, 2017, the Commonwealth of Puerto Rico filed a petition
for relief under Title III of the Puerto Rico Oversight,
Management, and Economic Stability Act ("PROMESA").  The case is
pending in the United States District Court for the District of
Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico's
PROMESA petition is available at
http://bankrupt.com/misc/17-01578-00001.pdf               

On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation
(COFINA) commenced a case under Title III of PROMESA (D.P.R. Case
No. 17-01599).  Joint administration has been sought for the Title
III cases.

On May 21, 2017, two more agencies -- Employees Retirement System
of the Government of the Commonwealth of Puerto Rico and Puerto
Rico Highways and Transportation Authority (Case Nos. 17-01685 and
17-01686) -- commenced Title III cases.

U.S. Chief Justice John Roberts named U.S. District Judge Laura
Taylor Swain to preside over the Title III cases.

The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets as municipal investment
banker, and Ernst & Young, as financial advisor.

Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq.,
at O'Neill & Borges LLC are onboard as attorneys.

Prime Clerk LLC is the claims and noticing agent.  Prime Clerk
maintains the case web site
https://cases.primeclerk.com/puertorico

Jones Day is serving as counsel to certain ERS bondholders.

Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General
Obligation Bondholders.





=====================================
T R I N I D A D   A N D   T O B A G O
=====================================

TRINIDAD & TOBAGO: Inflation Rate at 6.8% for June, CSO Reports
---------------------------------------------------------------
Shweta Sharma at Trinidad and Tobago Newsday reports that the
Central Statistical Office (CSO) has reported a 0.2 per cent
decrease in inflation for the month of June, according to its
latest retail price index.

The inflation rate - measured as a percentage change in the average
all items index - for January to June 2023/2022 was 6.8 per cent,
compared to seven per cent for January to May 2023/2022, according
to Trinidad Newsday.

The inflation rate for the previous comparative period (January to
June 2022/2021) was 4.5 per cent, the report notes.

According to the release, the all items index of retail prices was
122.9, representing an increase of 0.4 points or 0.3 per cent above
the index for May 2023, the report relays.

The index for food and non-alcoholic beverages increased from 143.0
in May 2023 to 145.3 in June 2023, reflecting an increase of 1.6
per cent, the report discloses.

Contributing significantly to this increase was the general upward
movement in the prices of tomatoes; chilled or frozen beef; fresh
beef; chilled or frozen pork; celery; onions; Irish potatoes;
powdered milk - full cream; melongene and mixed fresh seasoning,
the release said, the report relays.

However, the full impact of these price increases was offset by the
general decreases in the prices of cucumber; carite-fresh; other
chilled or frozen chicken; sweet potatoes; cheddar cheese; carrots;
king fish-fresh; table margarine; green pigeon peas and
salmon-fresh, the report discloses.

"A further review of the data for June 2023 compared with May 2023
reflected an increase in the sub-index for alcoholic beverages and
tobacco of 0.1 per cent and health of 0.1 per cent. Also, this
period showed a decrease in the sub-index for clothing and footwear
of 0.3 per cent. All other sections remained unchanged," the
release said, 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
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Copyright 2023.  All rights reserved.  ISSN 1529-2746.

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