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/raid1/www/Hosts/bankrupt/TCRLA_Public/230929.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, September 29, 2023, Vol. 24, No. 196 Headlines A R G E N T I N A ARGENTINA: Releases Lorries Detained at Paraguayan Border B R A Z I L BANCO DE BRASILIA: S&P Affirms 'B+' ICR & Alters Outlook to Neg. BRAZIL: Aims for $400 Billion in Biofuel Investments BRAZIL: Central Bank Likely to Cut Interest Rates Again C A Y M A N I S L A N D S SHELF DRILLING: Moody's Hikes LongTerm CFR to B3, Outlook Stable E C U A D O R ECUADOR: To Strengthen Early Warning System for Natural Hazards J A M A I C A DIGICEL GROUP: Hits Chapter 15 Bankruptcy Protection M E X I C O ALSEA SAB: Moody's Affirms Ba3 Corp. Family Rating, Outlook Stable CYDSA SAB: S&P Affirms 'BB/B' ICRs & Alters Outlook to Positive P E R U ORAZUL ENERGY: S&P Affirms 'BB-' ICR, Outlook Stable P U E R T O R I C O EVERTEC GROUP: Moody's Assigns 'Ba3' CFR, Outlook Stable EVERTEC INC: S&P Assigns 'BB-' Issuer Credit Rating, Outlook Stable LUNA DAIRY: Court OKs Cash Collateral Access Thru Sept 27 NEONATOLOGIST ASSOCIATES: Oct. 17 Hearing on Disclosure and Plan X X X X X X X X LATAM: A Tale of Two Banks as Uruguay Rises and Argentina Slides - - - - - ================= A R G E N T I N A ================= ARGENTINA: Releases Lorries Detained at Paraguayan Border --------------------------------------------------------- Buenos Aires Times reports that number of tanker lorries carrying liquefied gas seized for five days by Argentine customs as they were to cross the border to Paraguay were to be released, as reported by a corporate representative who took part in the negotiations. This is taking place a week after some barges with fuel were also held by Argentina and then released, days before Paraguay cut off the electricity supply to its neighboring country, according to Buenos Aires Times. "[B]ased on everybody's good will, the first four lorries containing propane will now be released", stated Gustavo Lucero, president of the Capegas Paraguayan Chamber of Gas, the report notes. The seizure occurred on Sept. 21 there were 22 lorries halted at the crossing between the Argentine town of Puerto Pilcomayo and the neighboring Ita Enramada, without Argentine authorities commenting on this issue so far, the report discloses. The teamsters' union warned about the risks of keeping this type of cargo in the heat of the area, the report says. "We regret the Argentine government's attitude", said earlier vice president Pedro Alliana in a radio interview. "It could be retaliation so we give in at the negotiations over (the hydroelectric dam in) Yacyreta," the report notes. He meant the decision by Paraguay to cut off the electricity supply from the bi-national station on the Parana River, the report relays. The government alleged a debt of 150 million dollars, although Buenos Aires took it as a reprisal for a toll (US$1.47 per tonne) being charged at the Paraguay-Parana waterway headed for the River Plate, which led to a one-week seizure of a convoy of barges, including one with 30 million litres of fuel, the report discloses. Alliana assured that the negotiations were underway and an agreement on Yacyreta was in its infancy, the report adds. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Alberto Angel Fernandez is the current president of Argentina after winning the October 2019 general election. He succeeded Mauricio Macri in the position. Argentina has the third largest economy in Latin America. The country's economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. The IMF's executive board completed on August 23, 2023, the fifth and six reviews of Argentina's 30-month Extended Fund Facility (EFF), and approved a US$7.5-billion disbursement to Argentina as part of the larger program, which refinances payments Argentina owes the institution from a previous bailout that failed to stabilize the economy in 2018. Argentina would receive another IMF disbursement in November of about US$2.75 billion pending another staff-level agreement and board approval. 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. =========== B R A Z I L =========== BANCO DE BRASILIA: S&P Affirms 'B+' ICR & Alters Outlook to Neg. ---------------------------------------------------------------- S&P Global Ratings revised its outlook on its global scale ratings on BRB - Banco de Brasilia S.A. to negative from stable. At the same time, S&P affirmed its long-term global scale ratings at 'B+' and lowered its long-term national scale issuer credit rating to 'brAA-' from 'brAA'. S&P also affirmed the short-term global and national scale ratings at 'B' and 'brA-1+', respectively. While the Basel ratio has remained above 14%, the Tier 1 and core capital ratios have been close to minimum levels. In March 2023, the Tier 1 ratio was 8.6%, while the core capital ratio was 7.0%. By June 2023, they had improved to 9.5% and 7.9%. In addition, the risk-adjusted capital (RAC) ratio has tightened, at close to 5.0% as of December 2022. This resulted from a combination of continued credit expansion and lower profitability, while shareholder payouts have continued. S&P's view of the bank's capital and earnings is based on our forecast RAC ratio. The 5.0% projection for year-end 2023 and 2024 incorporates some recovery in profits in the second half of 2023 because of portfolio sales with premiums and a declining DI rate, but also growth of 15% in total loans for full-year 2023, which is lower than recent expansion rates. Despite the ratio's predicted stability, it would remain at the lower end of the 5.0%-7.0% range we generally consider appropriate for the current capital assessment. BRB's main business, payroll-deductible loans, suffered from margin compression as the Selic rate went up in 2021 and 2022. Meanwhile, BRB has been gradually shifting its loan book to lower-yielding products, such as mortgage loans, which has also affected margins to some extent. Noninterest expenses have expanded, particularly in 2021, which raised the cost-to-income ratio to more than 80% in the first half of 2023 from about 68% in 2020. As a result, the return on average equity (ROAE) fell to less than 5.0% in the first half of 2023, reaching its lowest semiannual point since 2014, when we first assigned this rating. Between 2016 and 2020, ROAE averaged almost 22%. BRB's board of directors has approved the resumption of the company's follow-on process planning, which had been halted when markets cooled down in 2021. However, the potential capital to be raised and the timing of that process are still uncertain, given those factors would also depend on market conditions. Moreover, while it would provide capital relief if successful, the follow-on could also cause the bank to resume its rapid expansion plan, which could add risks in the medium term. The bank benefits from a relatively diversified and stable funding structure compared with those of other midsize banks in the country. This supports BRB's funding stability even in difficult times, such as during the corruption investigation Operation Circus Maximus. The company's broad liquid assets remained solid as of June 2023, covering its short-term wholesale funding by 3.8x, up from an average of 3.1x for the past five years. BRAZIL: Aims for $400 Billion in Biofuel Investments ---------------------------------------------------- Richard Mann at globalinsolvency.com reports that Brazil aims to draw $400 billion in biofuel investments over the next decade, according to Energy and Mining Minister, Alexandre Silveira. During a meeting in New York, Silveria announced this ambitious goal, emphasizing that biofuel production could help Brazil break free from OPEC's influence, according to globalinsolvency.com. Silveira also called on wealthy countries to assist in global efforts to switch to cleaner energy sources, the report notes. 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. Fitch Ratings upgraded on July 26, 2023, Brazil's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'BB', from 'BB-', with a Stable Outlook. The upgrade reflects better-than-expected macroeconomic and fiscal performance amid successive shocks in recent years, proactive policies and reforms that have supported this, and Fitch's expectation that the new government will work toward further improvements. In mid-June 2023, S&P Global Ratings, revised the outlook on its long-term global scale ratings on Brazil to positive from stable. S&P affirmed its 'BB-/B' long- and short-term foreign and local currency sovereign credit ratings on Brazil. S&P also affirmed its 'brAAA' national scale rating, and the outlook remains stable. The transfer and convertibility assessment remains 'BB+'. The positive outlook reflects signs of greater certainty about stable fiscal and monetary policy that could benefit Brazil's still-low GDP growth prospects. Continued GDP growth plus the emerging framework for fiscal policy could result in a smaller government debt burden than expected, which could support monetary flexibility and sustain the country's net external position. 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 Inc., on August 15, 2023, upgraded Brazil's Long-Term Foreign and Local Currency - Issuer Ratings to BB from BB (low). At the same time, DBRS Morningstar confirmed Brazil's Short-term Foreign and Local Currency - Issuer Ratings at R-4. The trend on all ratings is Stable.(March 2018). BRAZIL: Central Bank Likely to Cut Interest Rates Again ------------------------------------------------------- Richard Mann at globalinsolvency.com reports that Brazil's Central Bank (BCB) is set to discuss interest rates, following their decision in August to reduce the Selic rate to 13.25%. A Valor survey indicates investors expect a similar cut to 12.75%. Until last year, the rate stayed at 13.75%, according to globalinsolvency.com. Then, it was the world's highest real interest rate at 7.54%, the report notes. President Lula da Silva keeps pushing for lower rates, the report discloses. He aims to stimulate spending and business growth, 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. Fitch Ratings upgraded on July 26, 2023, Brazil's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'BB', from 'BB-', with a Stable Outlook. The upgrade reflects better-than-expected macroeconomic and fiscal performance amid successive shocks in recent years, proactive policies and reforms that have supported this, and Fitch's expectation that the new government will work toward further improvements. In mid-June 2023, S&P Global Ratings, revised the outlook on its long-term global scale ratings on Brazil to positive from stable. S&P affirmed its 'BB-/B' long- and short-term foreign and local currency sovereign credit ratings on Brazil. S&P also affirmed its 'brAAA' national scale rating, and the outlook remains stable. The transfer and convertibility assessment remains 'BB+'. The positive outlook reflects signs of greater certainty about stable fiscal and monetary policy that could benefit Brazil's still-low GDP growth prospects. Continued GDP growth plus the emerging framework for fiscal policy could result in a smaller government debt burden than expected, which could support monetary flexibility and sustain the country's net external position. 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 Inc., on August 15, 2023, upgraded Brazil's Long-Term Foreign and Local Currency - Issuer Ratings to BB from BB (low). At the same time, DBRS Morningstar confirmed Brazil's Short-term Foreign and Local Currency - Issuer Ratings at R-4. The trend on all ratings is Stable.(March 2018). =========================== C A Y M A N I S L A N D S =========================== SHELF DRILLING: Moody's Hikes LongTerm CFR to B3, Outlook Stable ---------------------------------------------------------------- Moody's Investors Service has upgraded Shelf Drilling, Ltd.'s (Shelf Drilling, or the company) long term corporate family rating to B3 from Caa1 and the probability of default rating to B3-PD from Caa1-PD. Concurrently, Moody's has assigned a B3 instrument rating to the proposed $1,075 million backed senior secured notes (SSNs) issued under the wholly owned subsidiary Shelf Drilling Holdings, Ltd. The outlook on both entities remains stable. RATINGS RATIONALE The rating action follows Shelf Drilling's announcement to issue $1,075 million backed senior secured notes maturing in 2029 under Shelf Drilling Holdings, Ltd. The company has also signed a new $125 million super senior revolving credit facility (RCF) maturing in 2028 and a $50 million super senior term loan A (TLA) maturing in 9 months, all under Shelf Drilling Holdings, Ltd. Additionally, the company plans to raise around $55 million of new equity at Shelf Drilling, Ltd..The proceeds of the new $1,075 million backed senior secured notes, together with the $50 million TLA, cash on balance sheet and equity proceeds will be used to refinance Shelf Drilling Holdings, Ltd.'s outstanding backed senior secured $310 million notes due in November 2024 and senior unsecured $900 million notes due February 2025. The rating action incorporates the expectation of imminent successful refinancing, resulting in a new capital structure with longer-dated debt maturities and lower gross debt levels because of the 7% mandatory amortization feature of the SSNs. This reduces the company's long term refinancing risk. Additionally, a significant improvement in the company's operating performance and favorable conditions in the wider oilfield services market is also a key consideration for the rating upgrade. The refinancing initiative will reposition debt maturities to 2029 except for the $250 million senior secured notes due in October 2025 issued by Shelf Drilling North Sea Holdings, Ltd (SDNS). The new capital structure will result in a gradual reduction of gross debt levels and will accelerate the company's deleveraging prospects with the 7% mandatory repayment clause of the SSNs. Moody's expects that Shelf Drilling will continue its deleveraging trajectory towards 4.5x on a Moody's adjusted basis in the next 12-18 months from 6.6x for the last 12 months to June 30, 2023 (LTM June 2023). Despite a decreasing gross debt level, the company's high debt service requirements will increase as part of the SSNs 7% yearly mandatory redemption. Moody's expects that interest payment outflows will stay broadly unchanged under the new capital structure at $130 million to $135 million (including Shelf Drilling North Sea) and the company will face mandatory debt repayments of about $88 million per year under the new SSNs and the existing SSNs under Shelf Drilling North Sea. Stable interest payments will be offset by an expected improvement in Moody's adjusted EBITDA of close to $300 million in 2024 compared to $220 million as of LTM June 2023. As a result, the rating agency expects a slow recovery in the company's Moody's adjusted interest coverage to 2.0x-2.2x in the next 12 to 18 months from 1.7x as of June 30, 2023. The notes issuance comes at a time when positive market dynamics and higher average dayrates are prevalent, and the company has a growing revenue backlog of $2.6 billion as of June 2023. Supportive oil prices, with tight supply conditions and healthy demand, combined with reduced investments by oil producers over the years has increased the demand for jack-up rigs. Higher dayrates will result in positive Moody's adjusted free cash flow generation from the second half of 2023. Nevertheless, the company remains highly exposed to contracts from Saudi Arabian Oil Company (Aramco, A1 positive) and Oil and Natural Gas Corporation Ltd. (ONGC, Baa3 stable) which represent around 40% of revenue contribution in the 2024 and 2025 period. The B3 CFR reflects Shelf Drilling's (1) exposure to geographically diversified shallow water oil basins; (2) track record of signing and renewing contracts in a competitive environment and having long-standing relationships with bluechip companies; and (3) improvement in underlying market conditions and tight jack-up rig capacity due to lack of new builds. Conversely, the rating is constrained by (1) the company's exposure to a cyclical operating environment susceptible to uncertain global oil markets and macroeconomic developments increase re-contracting risk; (2) a track record of high capital spending requirements for a relatively old fleet, excluding the 2022 acquisitions from Noble Drilling Corporation (Noble); and (3) the company's lack of track record of positive free cash flow generation and aggressive capital structures. ESG CONSIDERATIONS Shelf Drilling's rating factors in certain governance considerations such as the groups historically aggressive financial policies with high debt levels. E-4 and S-4 IPS score reflect that the company's environmental and social risks have also the potential to cause future credit profile deterioration. Carbon transition and demographic and societal trends risk factors may also have negative credit effects over time, but there is limited credit impact to the B3 rating to date. LIQUDITY PROFILE Post refinancing, Shelf Drilling's liquidity is adequate in the absence of any debt maturities until October 2025 for its $250 million Senior Secured Notes issued under Shelf Drilling North Sea. The company benefits from $142 million of cash on balance sheet before the bond refinancing and an expected $125 million revolving credit facility due 2028. Moody's forecasts that the company will generate positive free cash flow during the second half of 2023 and finish the year with more than $75 million of cash on balance sheet on a consolidated basis. Moody's does not anticipate any pressure on liquidity for the upcoming years given the improving market conditions, higher dayrates and the company's adequate cash balances. However, further unanticipated rig acquisitions, elevated capital spending and a decrease in dayrates could put strain on the company's liquidity profile. RATING OUTLOOK The stable outlook reflects Moody's expectation that Shelf Drilling will be able to re-contract rigs in a timely manner and that EBITDA generation will materially improve in the next 12 to 18 months and beyond relative to the weak levels seen in 2020 and 2021. The stable outlook also assumes the company will refinance its $250 million senior secured notes due in October 2025 in a timely manner while maintaining an adequate liquidity. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if (1) the company materially reduces gross debt from current levels so that its credit metrics are less sensitive to a deterioration in financial performance; and (2) the company continues to re-contract rigs as they roll off while securing higher dayrates; and (3) Moody's adjusted Debt/EBITDA is sustained below 4.5x with Moody's-adjusted EBITDA/interest expense sustained above 2.5x; and (4) the company establishes a track record of generating strong positive and growing free cash flow. The ratings could be downgraded if (1) the company faces difficulties re-contracting rigs or these are signed at lower dayrates; or (2) Moody's-adjusted debt/EBITDA fails to trend below 6.5x over the next 12-18 months; or (3) Moody's-adjusted EBITDA/interest expense falls below 1.5x; or (4) free cash flow turns negative and liquidity weakens, including limited headroom under covenants. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Oilfield Services published in January 2023. COMPANY PROFILE Shelf Drilling, Ltd. is a Cayman Islands incorporated holding company that owns 36 jackup rigs including 5 rigs acquired from Noble in the North Sea and Qatar through a 60% ownership in its subsidiary, Shelf Drilling North Sea. The company conducts drilling operations through various subsidiaries in the Southeast Asian, Middle Eastern, Indian, West African, North Sea and North African/Mediterranean markets. Shelf Drilling generated revenues of $786 million and Moody's adjusted EBITDA of $220 million for the last 12 months ended June 30, 2023. The company is listed on the Oslo Stock Exchange since June 2018. ============= E C U A D O R ============= ECUADOR: To Strengthen Early Warning System for Natural Hazards --------------------------------------------------------------- Ecuador will reinforce its national early warning system for natural hazards with the support of a $10 million loan from the Inter-American Development Bank (IDB). The operation, which was approved by the IDB Board of Executive Directors, aims to reduce the number of people who would potentially be affected by floods, landslides, tsunamis, and volcanic eruptions by expanding the monitoring and risk analysis capacity of the Early Warning System. It will also enhance the process of sending out alerts to communities to boost their response capacity. The program will bolster hazard monitoring capacities by installing new detection technology and maintaining and upgrading existing technology, and by creating a center to manage digital information and send out early warnings. The program will also increase the number of communities prepared to evacuate before a disaster occurs. To achieve this goal, it will install new sirens with digital cameras, maintain and relocate existing sirens, develop multiple channels for disseminating warnings, and install or move instruments like signage and lighting that help communities evacuate. Ecuador is among the countries in Latin America and the Caribbean most exposed to natural hazards. Nearly 70% of its population lives in areas with a high threat of natural disasters. From 2000 to 2022, the country experienced 59 major disasters that killed over 1,100 people and affected 2.8 million. These disasters usually take the greatest toll on women and people with disabilities, so the program will especially focus on these vulnerable groups. The program will benefit socioeconomically vulnerable people and communities that are exposed to multiple hazards. It will also benefit the bodies responsible for observing and monitoring hazards and analyzing the associated risks. Additionally, the operation will benefit the ECU911 integrated security service that manages and operates the sirens with digital cameras for warning communities, as well as the Risk Management Secretariat, which trains and supports the communities that receive warnings. The IDB loan has a 24-year repayment period, a six-year grace period, and an interest rate based on the Secured Overnight Financing Rate (SOFR). ============= J A M A I C A ============= DIGICEL GROUP: Hits Chapter 15 Bankruptcy Protection ---------------------------------------------------- Jeremy Hill of Bloomberg News reports that Digicel Group Holdings Ltd. filed for Chapter 15 protection from creditors, a move that protects its US assets while restructuring proceedings play out in another country. The company's bankruptcy petition references restructuring proceedings under way in Bermuda. The case is Digicel Group Holdings Limited and Lawrence Hickey, 23-11479, US Bankruptcy Court for the Southern District of New York (Manhattan). About Digicel Group Digicel Group Holdings Ltd. is the leading digital provider in 25 markets across the Caribbean, Central America, and Asia Pacific. The company is owned by the Irish billionaire Denis O'Brien, is incorporated in Bermuda, and based in Jamaica. Digicel Group sought relief under Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 23-11479) on Sept. 11, 2023. The petition was signed by Lawrence Hickey, as foreign representative. The Debtor's counsel in the Chapter 15 case is: Timothy E. Graulich Davis Polk & Wardwell LLP 212-450-4639 timothy.graulich@davispolk.com =========== M E X I C O =========== ALSEA SAB: Moody's Affirms Ba3 Corp. Family Rating, Outlook Stable ------------------------------------------------------------------ Moody's Investors Service has affirmed the Ba3 Corporate Family Rating and Senior Unsecured rating of Alsea S.A.B. de C.V. At the same time, Moody's has affirmed the Ba3 rating of Food Service Project S.A.'s Backed Senior Unsecured Notes irrevocably and unconditionally guaranteed by its parent company, Alsea. The outlook for all ratings is stable. RATINGS RATIONALE Alsea's Ba3 ratings are supported by its position as one of the largest restaurant operators in the fast-food, coffee shop, casual dining, and family restaurants segments in Latin America. The ratings also incorporate Alsea's broad presence in Latin America and Europe, with 4,477 restaurants as of June 2023 (77% corporate and 23% franchises); together with a portfolio of 15 leading brands that include Starbucks (36% of revenues as of the second quarter of 2023), Domino's (17%), Burger King (14%) and VIPS (13%), among others. Mexico is Alsea's largest market, accounting for 52% of revenues as of the second quarter of 2023, followed by Europe (30%) and South America (18%). Also supporting the rating is Alsea's expansion plan, which is centered on reshaping its restaurant portfolio and pursuing efficiencies to boost the firm's profitability. The primary focus of Alsea's growth strategy is to expand the number of Starbucks and Domino's restaurant, both in Latin America and Europe. In 2023, the company has budgeted approximately MXN5.0 billion for investments, with over a third of this amount allocated for the launch of new restaurants. The ratings for Alsea are somewhat hindered by its exposure to the highly competitive fast-food industry and a concentration of cash flow generation in the Mexican market. Another factor that poses a challenge is Alsea's substantial capital expenditure requirements. Although the company has the flexibility to decelerate the expansion of its restaurant base if necessary (approximately MXN2,5 billion annually in 2023-2024), it would still need to invest in maintenance to at least retain its market share in key markets (around MXN1.2 billion). Alsea has sustained a post-IFRS 16 EBITDA margin (Moody's adjusted) within the 20%-24% range from 2017 to 2022, standing at 20.4% as of the last twelve months ending June 2023. This stability is attributed to the diversification of its restaurant portfolio in terms of brand variety and geographical presence, along with its capacity to transfer a significant part of cost inflation to pricing, primarily for energy and certain products. Moreover, Alsea's expanding revenue base, coupled with a decrease in the company's debt (including operating leases) since 2020, has fortified its credit metrics. Alsea is anticipated to continue driving revenue growth through its investment strategy and new restaurant launches. Moody's forecast a rise in revenues to approximately MXN75 billion in 2023 ($4.1 billion) and MXN80 billion in 2024, a significant increase from MX69 million in 2022, supported by Alsea's restaurant openings and growing same store sales. As of June 2023, the Debt to EBITDA ratio was 3.1x (including leases), a decrease from 3.6x in 2022 and 4.5x in 2021, which is explained by a combination of adjustments in contract terms of rents, improving EBITDA and maturity payments and, as of June 2023, the depreciation of the Euro against the US Dollar. Moody's expects this leverage ratio will hover around 3.4x in 2023-2024. Concurrently, the interest coverage metrics are expected to remain in the 1.7x-1.9x range in 2023-2024, gradually improving from 1.6x in 2022. Alsea's liquidity is supported by an estimated MXN12 billion in operational cash flow in 2023 and 2024, cash and equivalents amounting to MXN4,350 million as of June 30, 2023, and an undrawn committed bank credit facility of EUR29 million (unrated). These factors provide a favorable comparison to the MXN8.6 billion in short-term debt, which includes operating leases. Furthermore, Alsea has a degree of flexibility concerning its investment expenditures on its proprietary brands. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if the company's operation and credit metrics improve such that Alsea's debt/EBITDA as adjusted by Moody's declines and is sustained below 3.5x and its adjusted EBIT/Interest expense ratio remains above 2.5x. To be considered for an upgrade the company will also need to maintain a good liquidity. Alsea's ratings may be downgraded if the company's credit metrics and /or liquidity profile deteriorate; quantitively, if debt to EBITDA rises and is sustained above 4.5x and EBIT to interest expense lowers below 2.0x. Alsea S.A.B. de C.V. (Alsea), headquartered in Mexico City, is a restaurant operator with a presence in Mexico, Europe and South America. Alsea targets the fast food, coffee shop, casual dining and family dining segments. Alsea operates 15 brands, such as Starbucks, Domino's, VIPs and Burger King, among others. The company reported revenue of MXN73.3 billion ($3.85 billion) for the 12 months that ended June 30, 2023. The principal methodology used in these ratings was Restaurants published in August 2021. CYDSA SAB: S&P Affirms 'BB/B' ICRs & Alters Outlook to Positive --------------------------------------------------------------- S&P Global Ratings revised its outlook on Mexican salt, chlorine, caustic-soda, chemicals, and refrigerant gases producer Cydsa S.A.B. de C.V. to positive from stable and affirmed its 'BB/B' global scale issuer credit ratings. S&P also affirmed its 'BB' issue rating on Cydsa's senior unsecured notes and maintained the '4' recovery rating, indicating its expectation of an average recovery (30%-50%) for lenders in the event of a payment default. S&P said, "The positive outlook reflects our view that Cydsa's operating and financial performance will improve consistently in the next 12-18 months -- through solid revenues and enhanced EBITDA margins -- and leverage will remain within the 2.0x area, while the company maintains a prudent financial policy. "The company posted favorable financial results at the end of 2022 and in the first half of 2023. Caustic-soda prices have gradually improved since last year, and we expect them to remain steady, coupled with strong product demand in Cydsa's chlorine and caustic-soda business division (about 40% of the total revenues)." In addition, Cydsa maintains a domestic leadership position in its solid and mature salt business division (about 25% of total revenues) for human consumption and industrial uses, plus demand in the refrigerant gases division (about 25% of total revenues) is broadly stable. As a result, Cydsa's consolidated revenues increased 20% by the end of 2022 and were up by 15% for the 12 months ended June 2023. Moreover, it has had consistent EBITDA generation, efficient and prudent cash management, and no significant debt increases. As a result, it has lowered leverage as expected, with net debt to EBITDA of 3.1x at the end of 2022 (versus 3.5x in 2021). And so far in 2023, the company continued to lower leverage, to 2.7x by the end of March and 2.6x by the end of June. S&P said, "We expect that Cydsa's disciplined operating and financial performance will be supported by favorable product demand across all business divisions and broadly stable average sales prices. We believe that Cydsa's products remain resilient because of their final uses (cleaning, disinfectants, soaps, personal hygiene products, edible salt, among others). As a result, we expect stronger credit metrics with net debt to EBITDA within the 2.0x area, and FOCF to debt above 15%, consistently, while the company maintains a prudent financial policy. "As previously anticipated, during 2023 the company started operations of its latest state-of-the-art membrane technology caustic-soda plant in Coatzacoalcos Veracruz, Mexico. The project began in 2019 with the main focus of addressing the caustic-soda deficit in Mexico, while Cydsa strengthens its market position in the country. We expect the company to improve its profitability through greater cost efficiencies and significant energy reductions provided by this new membrane technology. As a result, we expect the company's EBITDA generation to increase and EBITDA margins to rise above 30% in the next 12-18 months, versus around 25% in previous years. "We don't estimate additional indebtedness to fund investment projects, but we expect the company to gradually reduce its debt through scheduled amortizations coupled with higher cash flows. As a result, leverage metrics should remain below 3.0x consistently and stay within the 2.0x area on a weighted basis for the next 12-18 months. We believe that Cydsa has maintained a conservative and prudent financial policy toward leverage commensurate with the 'BB' credit rating." The company has recently repurchased some of its senior unsecured notes due 2027 through cash tender offers, mainly funded through long-term bank loans. S&P views these transactions as proactive liability managements to enhance the debt structure and lengthen the debt maturity profile. By the end of June 2023 Cydsa's capital structure consisted of: -- 45% of senior notes, -- 20% of a syndicated financing whose final maturity will come due in 2036 and has comfortable amortizations, and -- 35% of debt that is integrated by two bank loans with Scotiabank and Santander that will come due in 2026 and 2029, respectively. S&P said, "We do not expect significant additional indebtedness over the next 12-18 months. We estimate that Cydsa should maintain conservative and disciplined financial measures by keeping a comfortable debt maturity profile in the long run while maintaining adequate liquidity." ======= P E R U ======= ORAZUL ENERGY: S&P Affirms 'BB-' ICR, Outlook Stable ---------------------------------------------------- S&P Global Ratings affirmed its 'BB-' ratings on Orazul Energy Peru S.A. and maintained the stable outlook. The stable outlook reflects S&P's expectation that Orazul's energy generation will remain stable and highly contracted and that the company will post net debt to EBITDA of 4x-4.5x and funds from operations (FFO) cash interest coverage of 3x-3.5x in the next 12 months. S&P said, "We recently lowered our issuer credit rating on Nautilus Inkia Holdings SCS to 'BB-' from 'BB' and maintained the negative outlook following the sale of its power transmission and distribution business in Guatemala that weakens our view of its business risk profile. Our view of the creditworthiness of Nautilus Energy Holdings LLC (Nautilus or the group), which consolidates both Inkia and Orazul Energy Peru S.A., follows a similar trend. "We consider Orazul a strategic asset for Nautilus, though it's partially insulated from the group owing to likely regulatory protection and relatively high operational and financial independence. Therefore, we see a low likelihood that stress at the group level would affect Orazul's creditworthiness. "We lowered our issuer credit rating on Inkia to 'BB-' from 'BB' and maintained its negative outlook following the sale of its power transmission and distribution business in Guatemala. In turn, the transaction eroded Nautilus' business risk profile since it exposes the group to a more volatile business and to less predictable jurisdictions, including Bolivia and Argentina. Also, the sale narrows the group's scale and diversification (geographical and industrial). Consequently, we lowered our rating on Inkia by one notch." ===================== P U E R T O R I C O ===================== EVERTEC GROUP: Moody's Assigns 'Ba3' CFR, Outlook Stable -------------------------------------------------------- Moody's Investors Service assigned a Ba3 Corporate Family Rating and a B1-PD probability of default rating to EVERTEC Group, LLC. Moody's also assigned a Ba3 rating to the company's $415 million existing backed senior secured term loan A and $200 million backed senior secured revolving credit facility, and to the proposed $600 million backed senior secured term loan B. Moody's also assigned an SGL-1 speculative grade liquidity (SGL) rating. The outlook is stable. Proceeds from the proposed $600m term loan B will be used by Evertec for the acquisition of Brazilian software solutions provider, Sinqia S.A. (SQIA3-BR) ("Sinqia"), including refinancing debt at the target and paying fees and other expenses. RATINGS RATIONALE The Ba3 CFR reflects Evertec's very strong market position in Puerto Rico, increased diversification by customer and geography with the acquisition of Sinqia, and solid credit metrics. The rating also takes into account the company's modest size for the rating level, as well as the still elevated concentration in Puerto Rico, which is subject to climate events and low growth dynamics. Governance is a driver of the rating action and is characterized by a conservative approach to leverage, but also an increasingly aggressive M&A strategy which could lead to incremental leverage from time to time. The company provides access to the ATH debit network, along with acquiring processing and issuing processing services, in Puerto Rico and the Caribbean, and its debit network accounts for about 70% of electronic transactions in Puerto Rico. Likewise, Evertec provides merchant acquiring services in Puerto Rico, with an approximately 60% market share. Revenues are driven by the still large opportunity for further penetration of electronic payments, as electronic transactions accounts for about 50% of all transactions. At the same time, concentration in Puerto Rico with about 60% of its sales coming from the island pro forma for the Sinqia acquisition, which comes with hurricane and earthquake risks as well as a low growth economy, dampens expansion opportunities. Also, the company has customer concentration, with about 30% of pro forma revenue attributable to Banco Popular de Puerto Rico, Puerto Rico's largest bank. That being said, the company has a long-term contract with Popular that includes annual minimums, thus mitigating concentration risks. The credit profile will benefit from the diversification that comes from the Sinqia acquisition, as well as overall growth opportunities in Latin America. The acquisition enables the company to establish a larger presence in Latin America's biggest market, Brazil, with a list of 900+ clients across banks, investment funds, pension funds, and consortium entities. In addition to increasing Latin America revenue to about 37%, this acquisition also provides the opportunity to cross-sell payment solutions to Sinqia's customers. Governance considerations were a driver of the rating assignments and reflect modest leverage and expectations for a more aggressive M&A strategy going forward. Environmental risks include physical climate risks stemming from hurricane exposure of the company's operations in Puerto Rico. The stable outlook reflects expectations for at least mid-single digit revenue growth in the near term as well as free cash flow to debt consistently north of 10%. Liquidity is very good as reflected in the SGL-1 rating. The company is expected to maintain a cash balance of about $250 million, a largely undrawn $200 million revolver, and free cash flow of around $120 million, excluding transaction costs. Term loan amortization will be about $27 million per annum. Pro forma for the Sinqia acquisition, Moody's estimate Evertec has about $40 million in contingent liabilities, including legal provisions and earnout consideration for acquisitions, which could be paid out over time. The term loan A and revolver include a maximum net leverage ratio covenant of 4.5x, stepping down to 4x in Q3 2024, and Moody's expect the company to maintain ample cushion, given the approximately 2.5x pro forma net leverage ratio at June 30, 2023. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if financial leverage is sustained below 2.5x, with greater scale and with continued customer and geographic diversification in the business. The ratings could be downgraded if financial leverage is maintained above 3.5x, free cash flow to debt closer to 10% or less, and/or in the event of consistent organic revenue or margin decline, or aggressive financial strategy. STRUCTURAL CONSIDERATIONS The Ba3 ratings for the credit facilities reflect the B1-PD probability of default rating and a higher than average expected family recovery rate in a default scenario, given the single class of first lien secured debt and a financial maintenance covenant. The credit facility has a first priority security interest in substantially all assets of the borrower. As proposed, the new credit facilities are expected to provide covenant flexibility that if utilized could negatively impact creditors. Notable terms include the following: Incremental debt capacity up to the greater of $265 million and an amount equal to 1x pro forma EBITDA, plus unlimited amounts subject to a First Lien Secured Net Leverage ratio threshold not to exceed 3.25x (if pari passu secured). No portion of the incremental may be incurred with an earlier maturity than the initial term loans. The credit agreement is expected to permit the transfer of assets to unrestricted subsidiaries, up to the carve-out capacities, subject to "blocker" provisions which indicate that no restricted subsidiary may: (i) be designated as an unrestricted subsidiary if it owns material intellectual property; or (ii) transfer material intellectual property to an unrestricted subsidiary. Non-wholly-owned subsidiaries are not required to provide guarantees; dividends or transfers resulting in partial ownership of subsidiary guarantors could jeopardize guarantees subject to protective provisions which prohibit guarantee releases if such transfers are to affiliates or they are entered for the primary purpose of releasing the guarantees. The parent and its wholly owned subsidiaries are subject to the guarantor coverage test, which requires at least 80% of Consolidated Total Assets and 80% EBITDA to be held by guarantors. The credit agreement is expected to provide limitations on up-tiering transactions, including the requirement that 100% of all lenders consent to any amendment or waiver that subordinates the debt or the liens to any other debt or liens, except for permitted debt. The proposed terms and the final terms of the credit agreement may be materially different. EVERTEC Group, LLC is a leading diversified financial technology provider in Puerto Rico and the Caribbean, with a growing presence in Latin America. Headquartered in Puerto Rico, the company serves 26 countries out of 11 offices. Evertec's diversified portfolio of businesses and product categories is organized into four business segments: Merchant acquiring, Payment Services - PR & Caribbean, Payment Services - LatAm, Business Solutions. The company's revenues for the last twelve months ended June 2023 were $634 million. Pro forma for the Sinqia acquisition, revenues approximate $780 million on an LTM basis. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. EVERTEC INC: S&P Assigns 'BB-' Issuer Credit Rating, Outlook Stable ------------------------------------------------------------------- S&P Global Ratings assigned its 'BB-' issuer credit rating to payment services provider EVERTEC Inc. At the same time, S&P assigned its 'BB-' issue-level rating and '3' recovery rating to the proposed $600 million Term B Loan facility due 2030. The '3' recovery rating indicates its expectation for meaningful (50%-70%; rounded estimate: 55%) recovery in the event of a default. The stable outlook, which assumes the Sinqia acquisition will close by the end of the fourth quarter of 2023, reflects S&P's expectation that EVERTEC will continue generating good operating performance over the next 12 months, including generating revenue growth of about 6.5%, EBITDA margins over 33%, and free operating cash flow (FOCF) above $150 million, and that its financial policy will remain sufficiently conservative to maintain leverage under 4x. EVERTEC is proposing to issue a $600 million term loan B facility as part of its funding plan for its acquisition of Brazilian financial software provider Sinqia S.A., which should expand its presence in the Brazilian market, add complementary offerings, and provide incremental scale and diversity to the business. EVERTEC has a small market position in the highly competitive merchant acquiring, payment services and technology services markets, in which scale matters and where it encounters substantially larger players. Its revenue base also has significant geographic and customer concentration. These factors constrain S&P's rating assessment. However, factors that partially mitigate these constraints and support the rating include its leading position in Puerto Rico due to its relationship with Banco Popular, the ability to offer a broad range of transaction processing services from a single source, ownership of the ATH network (one of the leading personal identification number {PIN} debit networks in Latin America), its local presence, a high proportion of recurring revenue generated through long-term contracts, and the good levels of profitability it generates. EVERTEC is also well positioned for secular growth given rapid growth in the Puerto Rican and Central and Latin American (LatAM) banking population with increasing preference for card-based payments away from cash payments, leading to accelerating purchase volumes and opportunities to capture share. Sinqia brings modest scale and diversification benefits and provides new growth opportunities, though it may introduce greater earnings volatility. EVERTEC generated approximately $635 million in revenue in 2022 by providing payment processing, merchant acquiring, transaction processing, and other business process outsourcing solutions to customers mainly in Puerto Rico and certain Caribbean ,Central and South American countries. Sinqia, a Brazilian company that offers customized software solutions to financial institutions and has about 960 customers, generated roughly $137 million in revenue in 2022 and is experiencing rapid growth both organically and through acquisitions. On a pro forma basis, for the 12-months-ended June 30, 2023, LatAm constitutes roughly 37% of total revenue compared with about 21% for EVERTEC on a standalone basis. EVERTEC should also gain incremental revenue visibility from the transaction, given that Sinqia operates under a highly recurring revenue model. Still with this improved diversity comes heightened exposure to emerging LatAm economies, which are more susceptible to adverse economic or political developments and potential adverse impacts from foreign currency translation. S&P believes Sinqia's software modules will complement the EVERTEC platform, which should yield natural cross-selling opportunities. Evertec and SINQIA solutions address mission-critical functions for their customers, and the embedded nature of these solutions within their operations typically supports a fair amount of switching costs. In addition, both companies also operate on contractual-based pricing models. EVERTEC derives roughly 95% of revenue from multi-year contracts and Sinqia generates more than 85% of revenues under subscription-based software revenue, adding to the stickiness of its customer relationships. S&P said, "Based on these characteristics and viewing Sinqia's software modules as complementary to the EVERTEC platform, we believe it should create natural opportunities to upsell and cross sell existing customers. Accordingly, we foresee the transaction yielding a fair degree of revenue synergies despite management not yet communicating specific targets. This could also prompt wallet share gains, potentially enhancing EVERTEC's overall value proposition with customers if successful." EVERTEC's geographic and customer concentration remain significant credit risks post-transaction. EVERTEC's revenue base will remain overly reliant on Puerto Rico, as it should represent around 63% of EVERTEC and Sinqia's combined revenues. This degree of concentration could create significant operating headwinds should the region encounter a more challenging economic environment or face disruptions from hurricanes, events that have increased in frequency due to climate change. That said, historically speaking, EVERTEC has a good track record of navigating such situations without experiencing significant impacts. Banco Popular will remain EVERTEC's largest customer after the Sinqia transaction, accounting for roughly 29% of the combined company's revenue. Although the relationship between EVERTEC and Banco Popular has a long tenor and is contractual, which helps mitigate concentration risk, at these levels, Banco Popular holds significant bargaining power over EVERTEC. S&P said, "We believe less favorable terms EVERTEC accepted when it renewed key contracts with Banco Popular in 2022, including the master services agreement (MSA) until 2028, ATH Network participation until 2030, and the Merchant Acquiring agreement to 2035, underscores this. Notably, under the new MSA, EVERTEC agreed to lower the annual price increase cap to 1.5% (from 5%), reducing fees for specific services by 10%. Despite these changes, we believe EVERTEC's ability to include annual MSA minimums through September 30, 2028 and implement a revenue-sharing agreement, should help protect and incentivize growth in the relationship for the foreseeable future." S&P said, "We estimate leverage will rise to the high-3x area at close but expect EVERTEC to gradually deleverage in subsequent quarters. EVERTEC announced plans to fund 90% of the $596 million purchase price of Sinqia using cash and new equity to cover the remaining consideration, with dilution negated through share repurchases after closing. Based on these plans, we anticipate EVERTEC's pro-forma S&P Global Ratings-adjusted leverage will be around 3.9x at closing, which we expect in the fourth quarter. We expect annual interest expense to rise to approximately $78 million. Still, in our forecast, we assume revenue growth and higher levels of profitability will enable the company to generate FOCF of about $150 million in 2024, which should support the ability to reduce leverage gradually. We also do not view the Sinqia acquisition of this level of leverage as a deviation from its current financial policy framework, which targets company-calculated net leverage between 2x and 3x and includes an appetite for ongoing shareholder returns, including cash dividends and opportunistic share repurchases, given that credit agreement calculated leverage is expected to be approximately 2.5x at closing. This is notably below S&P Global Ratings' metrics, which include the adjustments to debt we make for operating leases, contingent consideration tied to earn-out payments owned by Sinqia's prior acquisitions, and do not net cash. "A growing appetite for M&A could challenge our deleveraging expectations. EVERTEC's historical growth has primarily been organic given that Banco Popular's ownership of voting shares in EVERTEC subjected it to the Bank Holding Company Act, which requires Fed approval for any acquisitions. Banco Popular sold its remaining shares in EVERTEC on Aug. 15, 2022, and is therefore no longer subject to these requirements. Since then, EVERTEC has communicated an M&A strategy focused on diversifying outside of Puerto Rico, expanding into new countries, and introducing new products, and increasing scale. Under this framework, the company completed the acquisition of BBR (a payment solutions company with operations in Chile and Peru) in 2022 and Paysmart (a payment solutions company in Brazil) in February of 2023. Although these recent acquisitions have been modest, we believe the company may be motivated to continue additional acquisitions, which could make it challenging to adhere to its existing financial policy and undermine our deleveraging expectations." The stable outlook, which assumes the Sinqia acquisition will close by the end of the fourth quarter of 2023, reflects our expectation that EVERTEC will continue generating good operating performance over the next 12 months, including generating revenue growth of about 6.5%, EBITDA margins over 33%, and free operating cash flow above $150 million, and that its financial policy will remain sufficiently conservative to maintain leverage under 4x. S&P said, "Environmental factors are a negative consideration in our credit rating analysis of EVERTEC. Our view reflects heightened operational risks from climate change because its transaction processing and merchant-acquiring business primarily operate in Puerto Rico, an area heavily exposed to hurricanes. As storm frequency and severity increase from the effects of climate change, we believe operating performance has a higher potential to suffer from either business interruption or adverse consequences that these catastrophes have on tourism and overall economic activity." LUNA DAIRY: Court OKs Cash Collateral Access Thru Sept 27 --------------------------------------------------------- The U.S. Bankruptcy Court for the District of Puerto Rico authorized Lucena Dairy Inc. to use cash collateral on an interim basis in accordance with the budget, through September 27, 2023. The Debtor requested the use of $43,668 collected from the sale of milk to Vaqueria Tres Monjitas Inc. Condado 4 LLC holds a pre-petition security interest over the cash collateral. As of the Petition Date Debtor has estimated Condado's claims in the approximate amount of $11 million. Condado's collateral from the Debtor is valued at approximately $3.3 million. Condado also has liens over the real property that the Debtor leases from Debtor's shareholders. To the extent of any diminution in the value of the Prepetition Secured Party's respective interests in their collateral (including cash collateral) from the Petition Date arising from the use, sale, or lease of such collateral or the imposition of the automatic: stay, such Prepetition Secured Party is granted (i) replacement liens of the same priority on the same assets that serve as preparation collateral of the Debtors and (ii) direct the Debtor to make a payment as additional adequate protection to the Prepetition Secured Creditor in the amount of $10,000, per month, upon entry of the Final Order. The Order will not constitute a finding as to the validity or perfection of any pre-petition lien. For all adequate protection and stay relief purposes throughout the Chapter 11 Cases, the Prepetition Secured Parties will be deemed to have requested relief from the automatic stay and adequate protection as of the Petition Date. A copy of the court's order and the Debtor's is available at https://urlcurt.com/u?l=R7m8Gt from PacerMonitor.com. The Debtor projects $43,668 in total period collection and $41,579 in total period disbursements for 15 days. About Lucena Dairy Inc. Luna Dairy Inc. is engaged in the production of cows' milk and other dairy products and in raising dairy heifer replacements. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. P.R. Case No. 23-02837) on September 9, 2023. In the petition signed by Jorge Lucena Betancourt, president, the Debtor disclosed $4,102,639 in assets and $11,316,130 in liabilities. Judge Edward A. Godoy oversees the case. Carmen D. Conde Torres, Esq., at C. Conde & Associates, represents the Debtor as legal counsel. NEONATOLOGIST ASSOCIATES: Oct. 17 Hearing on Disclosure and Plan ---------------------------------------------------------------- Judge Maria De Los Angeles Gonzalez has entered an order conditionally approving Neonatologist Associates PSC's Disclosure Statement dated September 3, 2023. A hearing for the consideration of the final approval of the Disclosure Statement and the confirmation of the Plan and of such objections as may be made to either will be held on October 17, 2023 at 10:00 AM at the United States Bankruptcy Court, Southwestern Divisional Office, MCS Building, Second Floor, 880 Tito Castro Avenue, Ponce, Puerto Rico. Acceptances or rejections of the Plan may be filed in writing by the holders of all claims on/or before 14 days prior to the date of the hearing on confirmation of the Plan. Any objection to the final approval of the Disclosure Statement and/or the confirmation of the Plan must be filed on/or before 14 days prior to the date of the hearing on confirmation of the Plan. The debtor must file with the Court a statement setting forth compliance with each requirement in section 1129, the list of acceptances and rejections and the computation of the same, within 7 working days before the hearing on confirmation. About Neonatologist Associates Neonatologist Associates, PSC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 23-01393) on May 9, 2023, with as much as $1 million in both assets and liabilities. Miguel A. Suarez Villamil, president of Neonatologist Associates, signed the petition. Judge Maria De Los Angeles Gonzalez oversees the case. The Debtor tapped Jaime Rodriguez-Perez, Esq., at Hatillo Law Office, PSC as legal counsel and Jose A. Toro-Mercado, CPA, CVA as accountant. =============== X X X X X X X X =============== LATAM: A Tale of Two Banks as Uruguay Rises and Argentina Slides ---------------------------------------------------------------- globalinsolvency.com, citing Reuters, reports that Diego Labat, Uruguay's central bank chief, is sitting pretty. Inflation is at the lowest level in nearly two decades, the currency is one of the region's strongest, and the country is leading a regional pivot towards interest rate easing, Reuters reported, according to globalinsolvency.com. That's a sharp contrast to just across the Rio de La Plata estuary in Buenos Aires, where inflation hit 124% in August, the highest since 1991, capital controls are barely holding back a fall in the currency, and net reserve levels are in the red, the report notes. It's also a sign of a tectonic shift over years: strong, independent institutions and political stability helping Uruguay's economy increasingly detach from its larger neighbor, where the two once rose and fell in tandem, the report relays. "Uruguay has done its homework," Labat, 53, told Reuters at his office near the bustling port of Montevideo, adding that the country had been much more susceptible to economic shocks from Argentina just a few decades ago, the report adds. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2023. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *