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/raid1/www/Hosts/bankrupt/TCRLA_Public/231120.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 Monday, November 20, 2023, Vol. 24, No. 232 Headlines A R G E N T I N A ARGENTINA: Banks Load Up On Liquidity Before Election Day ARGENTINA: Inflation Slows to 8.3% in Oct, Prices Up 142.7% YoY ARGENTINA: Libertarian Javier Milei Wins in Presidential Election MSU ENERGY: Fitch Affirms 'CCC-' LongTerm IDRs B R A Z I L AMERICANAS SA: Fraud $1 Billion More Than Previously Suspected BANCO DE DESENVOLVIMENTO: S&P Affirms 'B' Global Scale Rating BRAZIL: Brazil's Economic Index Drops in Q3 C O L O M B I A ECOPETROL SA: Fitch Affirms 'BB+' LongTerm IDRs, Outlook Stable D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Agribiz Exporters Gets Free Trade Zone Benefits X X X X X X X X [*] BOND PRICING COLUMN: For the Week Nov. 13 to Nov. 17, 2023 - - - - - ================= A R G E N T I N A ================= ARGENTINA: Banks Load Up On Liquidity Before Election Day --------------------------------------------------------- Ignacio Olivera Doll at Bloomberg News reports that Argentine banks, taking nothing for granted in the run-up to the presidential election, are loading up on the most liquid assets to ensure they could accommodate a potential surge in peso withdrawals. No-one is forecasting a run on deposits in the aftermath of the vote pitting Economy Minister Sergio Massa against libertarian lawmaker Javier Milei - indeed, nothing of the sort happened after October's first-round vote, according to Bloomberg News. But after being caught off-guard by a jump in demand ahead of that ballot, made worse by last-minute government restrictions that left piles of cash stranded at the country's main airport, they want to be prepared, Bloomberg News notes. Speculation is rampant in Argentina that a currency devaluation is all but inevitable in the days or weeks after the vote, so it's possible savers will rush to pull their peso deposits to buy dollars on the black market ahead of the change, Bloomberg News says. That's especially true if the winner is Milei given his plan to scrap the peso and replace it with the dollar in a bid to tame inflation that's running at more than 140 percent, Bloomberg News notes. Argentine financial entities increased their holdings of one-day term notes in pesos (called "pases") by 47 percent in the past month and a half, bringing it to the highest level in almost two years. Meanwhile, they cut holdings of 28-day term notes in pesos (Leliq) by 10 percent, Bloomberg News notes. Banks had been forced to import dollars in September and October to cope with savers pulling from accounts denominated in that currency, Bloomberg News re;ays. The peso went into free-fall, dropping to 1,000 per dollar on the black market Argentines use to skirt controls, Bloomberg News notes. The government allows savers to hold accounts in dollars, and many do so as a way to protect against inflation and a 90 percent drop in the value of the national currency over the past four years. As things stand now, lenders feel they still have enough greenbacks on hand to meet any surge in demand, according to Andres Borenstein, an economist at the Econviews consulting firm in Buenos Aires, Bloomberg News says. Argentines withdrew 4.5 percent of their savings in dollars and 10 percent of their savings in pesos in October, according to data from the Central Bank, Bloomberg News discloses. But most of those withdrawals were in the early part of the month, Bloomberg News says. After the October 22 first-round vote, peso and dollar deposits in the nation's financial system stayed put, Bloomberg News notes. Both Massa and Milei have shifted toward more centrist positions as the run-off vote approaches, which could also be bolstering confidence in the economy, Bloomberg News says. "We don't know what the winner will do," said Diego Chameides, the chief economist at Banco Galicia, Argentina's largest private bank in terms of assets. "The uncertainty of policies that could be implemented by the two presidential candidates makes it preferable to have that extra liquidity," he added. 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 0its 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. ARGENTINA: Inflation Slows to 8.3% in Oct, Prices Up 142.7% YoY --------------------------------------------------------------- Buenos Aires Times reports that Argentina's inflation rate slowed last month to 8.3 percent, the INDEC national statistics bureau reported. Consumer prices rose 8.3 percent in October on a monthly basis, a notch below September's figure, according to Buenos Aires Times. The cost of living has risen 120 percent in the first 10 months of 2023, the report notes. From a year ago, annual inflation accelerated to 142.7 percent, according to government data, the report relays. The highest increases last month were seen in communications, up 12.6 percent following hikes in the price of telephone and Internet services, the report discloses. Clothing and footwear rose 11 percent, due to the change in season, and household appliances and maintenance was up 10.8 percent, the report discloses. October's figure was the bureau's last update on consumer prices before second-round vote putting Economy Minister Sergio Massa, for the ruling Union por la Patria coalition, against national lawmaker Javier Milei, for La Libertad Avanza, the report says. News that inflation has slowed is a minor piece of good news for the government, the report relays. Prices had accelerated by more than 12 percent in the preceding two months, the report notes. Nevertheless, the October figure is the fourth-highest monthly rate of the past year, the report says. Most analysts had expected October's inflation rate to come in at between nine and ten percent, noting sharp rises in the price of foodstuffs. INDEC's report said food and beverages rose 7.7 percent. The largest hikes were seen in lettuce (40 percent) and white rice(35.6 percent), the report discloses. The Institute for Workers' Statistics (IET) had reported a monthly rate of 9.8 percent, 0.4 points up on the official figure of 9.4 percent issued by the Buenos Aires City government, the report relays. According to weekly indicators issued by the Economy Ministry, consumer prices rose 2.3 percent in the first week of November. The lowest monthly increases in October were recorded in health (up 5.1 percent) and education (up 6.6 percent), the report relays. The region most affected by inflation in October was Greater Buenos Aires (8.6 percent), according to INDEC, with the lowest regional rate recorded in the northeast and Cuyo (both 7.4 percent), the report notes. Economists see annual inflation near 200 percent over the next 12 months, according to the average forecast from the Central Bank's last monthly survey, 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 0its 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. ARGENTINA: Libertarian Javier Milei Wins in Presidential Election ----------------------------------------------------------------- Nicolas Misculin and Walter Bianchi, writing for Reuters, report that Argentina elected libertarian outsider Javier Milei as its new president on Sunday, Nov. 19, rolling the dice on an outsider with radical views to fix an economy battered by triple-digit inflation, a looming recession and rising poverty. Reuters says official results showed Milei with near 56% versus 44% for his rival, Peronist Economy Minister Sergio Massa, who conceded in a speech. His candidacy was hampered by the country's worst economic crisis in two decades while he has been at the helm. "Obviously the results are not what we expected. I have contacted Javier Milei to congratulate him," the report quoted Massa as saying. "From tomorrow the responsibility of providing certainty belongs to Milei." Milei is pledging economic shock therapy, according to Reuters. His plans include shutting the central bank, ditching the peso, and slashing spending, potentially painful reforms that resonated with voters angry at the economic malaise. Milei's challenges are enormous, Reuters relates. He will have to deal with the empty coffers of the government and central bank, a creaking $44 billion debt program with the International Monetary Fund, inflation nearing 150% and a dizzying array of capital controls. Some Argentines had characterized the vote as a choice of the "lesser evil": fear of Milei's painful economic medicine versus anger at Massa and his Peronist party for an economic crisis that has left Argentina deeply in debt and unable to tap global credit markets, says the report. Milei has been particularly popular among the young, who have grown up seeing their country lurch from one crisis to another. According to Reuters, Milei's win shakes up Argentina's political landscape and economic roadmap, and could impact trade in grains, lithium and hydrocarbons. Milei has criticized China and Brazil, saying he won't deal with "communists," and favors stronger U.S. ties. The shock rise of the 53-year-old economist and former TV pundit has been the story of the election, breaking the hegemony of the two main political forces on the left and the right - the Peronists and the main Together for Change conservative bloc, Reuters notes. "The election marks a profound rupture in the system of political representation in Argentina," said Julio Burdman, director of the consultancy Observatorio Electoral, ahead of the vote, Reuters relates. Supporters of Massa, 51, an experienced political wheeler-dealer, had sought to appeal to voter fears about Milei's volatile character and "chainsaw" plan to cut back the size of the state, Reuters relays. Milei is also staunchly anti-abortion, favors looser gun laws and has criticized Argentine Pope Francis. He used to carry a chainsaw in a symbol of his planned cuts but shelved it in recent weeks to help boost his moderate image. Reuters notes that after October's first-round vote, Milei struck an uneasy alliance with the conservatives, which boosted his support. But he faces a highly fragmented Congress, with no single bloc having a majority, meaning that he will need to get backing from other factions to push through legislation. Milei's coalition also does not have any regional governors or mayors. That may temper some of his more radical proposals, Reuters adds. Long-suffering voters are likely to have little patience, and the threat of social unrest is never far below the surface. His backers say only he can uproot the political status quo and economic malaise that has dogged South America's second-largest economy for years. "Milei is the only viable option so we do not end up in misery," the report quotes Santiago Neria, a 34-year-old accountant, as saying. 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 0its 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. MSU ENERGY: Fitch Affirms 'CCC-' LongTerm IDRs ---------------------------------------------- Fitch Ratings has affirmed MSU Energy S.A.'s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'CCC-' and USD600 million senior secured notes due 2025 at 'CCC'/'RR3'. Like its Argentine peers, MSU Energy's ratings continue to reflect its dependence on the country's offtaker and electricity market coordinator, Compania Administradora del Mercado Mayorista Electrico S.A. (CAMMESA). Fitch believes MSU Energy is vulnerable to, and can little afford, payment delays from CAMMESA given its elevated refinancing risk. KEY RATING DRIVERS Elevated Refinancing Risk: Fitch believes MSU Energy faces refinancing risk given the potential impact of Argentina's central bank capital controls on its USD600 million senior secured notes due Feb, 1, 2025. The current capital controls restrict FX market access to 40% of maturities until the end of 2023, but capital controls are likely to be extended given historical precedent. The company reported consolidated cash and investments of USD39.6 million as of 3Q23. MSU Energy's ability to comply with the central bank's 60/40 rule is uncertain given election outcomes and future central bank restrictions are unknown. Heightened Counterparty Exposure: MSU Energy depends on payments from CAMMESA, which acts as an agent for an association representing electricity generators, transmission, distribution and large consumers or the wholesale market participants known as Mercado Mayorista Electrico. CAMMESA is currently paying invoices within around 70 days, which is higher than the contracted payment period of 42 days. Fitch expects continued improvement in collections as CAMMESA collections averaged 123% and overdue receivables to MSU Energy have since then declined to USD18.8 million in 2Q23 from USD33.8 million in 1Q23. Gradual Deleveraging Trajectory: Fitch estimates MSU Energy's total debt/EBITDA for 2023 will decline to 4.4x from 5.4x in 2022 after the third full year of operation of its combined cycle expansions. Leverage is forecast to gradually decline thereafter to 3.8x and remain there over the rating horizon. Fitch expects 2023 EBITDA interest coverage of 2.7x. An increase to 3.4x is expected in 2024, due primarily to anticipated debt reduction over time. Cash Flows Profile: MSU Energy's cash flow generation is relatively stable and predictable. Fitch estimates 60% of the company's EBITDA is related to Resolution 21/2016, as of 2Q23, which is U.S.-dollar denominated for a 10-year period ending in 2027, with the remaining 40% attributable to Resolution 287/17 for 15 years. The company is not expected to have exposure to changes in base energy until 2027, the country's regulatory framework for uncontracted generators, given that MSU began operations in 2017. Uncertain Regulatory Environment: The Argentine electricity sector remains challenged by central bank capital controls and sovereign risk, despite otherwise strong sector credit fundamentals. The government subsidizes generation costs not covered by end users. Fitch estimates the government transferred USD8.4 billion in funds to CAMMESA in 2022, which represented 65% of the total implied cost of the system of USD12.9 billion. Unless end-user tariffs are adjusted further, subsidies will need to continue to increase to help cover system costs. DERIVATION SUMMARY MSU Energy's rated Argentine utility peers are AES Argentina Generacion S.A. (CCC-), Generacion Mediterranea S.A. (GEMSA; CCC-), Pampa Energia S.A. (B-/Stable) and Genneia S.A. (CCC-). MSU Energy's ratings and those of its pure-play generation peers reflect high counterparty exposure given CAMMESA's dependence on government subsidies for payment. MSU Energy's successful completion of its three combined-cycle expansions in 2020 under Resolution 287 provide a significant boost to the company's cash flow generation. MSU Energy's expected 2023 gross leverage, measured as gross debt/EBITDA, is 4.4x, weaker than Pampa Energia's 1.4x, AES Argentina's 1.9x, Genneia's 4.0x and lower than GEMSA's dollar-based leverage of 9.4x. Fitch expects MSU Energy to deleverage to 4.4x in 2024 and to 3.8x in 2025 as increased cash flow from expansions is used to pay down amortizing debt. Similar to MSU Energy, GEMSA has begun the first of its two combined-cycle expansions awarded under Resolution 287 and incurred additional debt of USD130 million to fund the project. KEY ASSUMPTIONS Fitch's Key Assumptions Within The Rating Case for the Issuer Include: - 750MW of total installed capacity with 250MW each at the General Rojo, Barker and Villa Maria power plants; - Simple-cycle PPAs granted under Resolution No. 21 with a fixed payment rate (USD/MW-month) of USD20,900 for General Rojo, and USD19,900 for the Barker, and Villa Maria plants, and a variable payment rate (USD/MWh) of USD8.50 for natural gas and USD12.50 for diesel oil; - Combined-cycle PPAs granted under Resolution 287/2018 with a fixed payment rate (USD/MW-month) of USD18,900 for General Rojo, and USD19,900 for the Barker and Villa Maria plants, and variable payment rates (USD/MWh) of USD10.40, USD8.80, and USD12.70 for electricity dispatched at the General Rojo, Barker, and Villa Maria plants, respectively; - Average projected dispatch rate of 42% in 2023 and 2024, and 45% in 2025; - Capex of USD20 million and USD10 million for continued overhaul of 8 and 4 turbines in 2023 and 2024, respectively, and USD5 million per year in maintenance capex in all years over the rating horizon; - Refinancing of maturing debt at a higher cost of capital; - No taxes paid until 2025. RECOVERY ANALYSIS Assumptions: 30% EBITDA decline during bankruptcy; 5.0x EV/EBITDA multiple; and 10% administrative claims. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An upgrade of the Argentine sovereign rating; - Given the issuer's high dependence on CAMMESA subsidies from the national treasury, any further regulatory developments leading to a market less reliant on support from the Argentine government or a sovereign upgrade could positively affect the company's collections/cash flow. Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Inability to refinance maturity coming due in February 2025 and a default or default-like process has begun; - A default or a default-like process of the sovereign has begun, which would be represented by a 'CC' or 'C' rating given that MSU Energy's ratings are linked to those of the Argentine sovereign due to the high reliance on government subsidies to the electricity sector. LIQUIDITY AND DEBT STRUCTURE Adequate Liquidity: MSU Energy's increased cash flow and small working capital loans have allowed it to pay 80% of its USD250 million 2024 notes as of Sep. 30, 2023; the company has USD49.8 million left to pay until maturity on Feb. 28, 2024. As of Sept. 30, 2023, MSU Energy had cash and equivalents of approximately USD39.6 million and available credit lines of USD36 million with local and regional banks. Despite its good liquidity, MSU Energy remains vulnerable to significant payment delays from its main off-taker, CAMMESA, which is currently settling invoices within 70 days, above the contractually agreed 42 days. ISSUER PROFILE MSU Energy is an Argentine electric power company that currently has 750 megawatts (MW) of electric generating capacity, evenly distributed among its three power plants: General Rojo, Barker and Villa Maria. 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. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- MSU Energy S.A. LT IDR CCC- Affirmed CCC- LC LT IDR CCC- Affirmed CCC- senior secured LT CCC Affirmed RR3 CCC =========== B R A Z I L =========== AMERICANAS SA: Fraud $1 Billion More Than Previously Suspected -------------------------------------------------------------- Bloomberg News reports that an accounting scandal that engulfed Americanas SA last year was deeper than the Brazilian retailer previously reported, according to long-delayed financial reports it released Nov. 16. Americanas said the size of the fraud was 25.2 billion reais ($5.2 billion) as of the end of the end of last year - about 5 billion reais more than it previously estimated, according to the report. The accounting issues stemmed from supply chain financing and false advertising contracts, the report relays. The updated figures, published in a filing, add a layer of complexity to one of Brazil's largest corporate meltdowns, the report says. One of the nation's largest brick-and-mortar retailers, Americanas sank into bankruptcy protection this year, freezing credit markets and sending shock waves across corporate boardrooms, recounts the report. By publishing the old earnings, it moves a step closer to negotiating a deal with creditors to rework 42.5 billion reais of debt, the report relays. An agreement should happen in December, Chief Financial Officer Camille Loyo Faria said in a call with analysts after the release, the report notes. In its most recent offer, Americanas proposed swapping bank debt for equity and getting a 12 billion-real capital injection from its largest shareholders, the report adds. In its most recent offer, Americanas proposed swapping bank debt for equity and getting a 12 billion-real capital injection from its largest shareholders, notes Bloomberg News. "Americanas is the biggest interested party in clarifying what really happened," the company's management said in the statement, the report relays. "The numbers of financial statements now reflect the most realistic and transparent figure of the company's assets and liabilities." The retailer posted a loss of 12.9 billion reais ($2.7 billion) in 2022 and 6.2 billion reais in 2021, according to the filing. It said it won't redo annual figures before 2021 and will re-publish quarterly reports for 2022 along with its 2023 release by year-end, notes Bloomberg News. Shares rose as much as 11% in Sao Paulo to trade at the highest in more than two weeks, adds the report. The company filed for bankruptcy protection in January after uncovering what it estimated at the time was 20 billion reais of fraud, recalls Bloomberg News. Its implosion also came as interest rates in Brazil were near 14% which crippled the broader credit market in the country and put a spotlight on other retailers who have struggled under tougher economic conditions. Since then, the retailer has lost millions of clients, closed dozens of stores and cut its work force. While sales on digital platforms have plummeted, customers continue to frequent the physical stores, according to monthly reports. While details of how the fraud was carried out and how it was hidden for so long remain murky, the Nov. 16 report lays out a path for recovery for the "New Americanas," according to CFO Loyo Faria and the current CEO Leonardo Coelho, notes the report. It plans to cut total debt to as low as 1 billion reais by 2025 and a projected earnings before interest, taxes, depreciation, and amortization of 2.2 billion reais for the full year. The company will have a "significant capitalization" of 24 billion reais in 2024 as part of the funds from shareholders and from the debt overhaul in the judicial recovery process, Loyo Faria said, adds Bloomberg News. Moreover, Americanas views its fintech AME as part of the firm going forward and will continue to hear offers for its Hortifruti Natural da Terra supermarket chain and retail subsidiary Uni.co, though the divestments are currently on hold, Coelho said on the call, the report relates. Once an agreement is reached with banks, it will have to be voted on by a broader group of creditors and taken to the judge overseeing the bankruptcy protection process. It could still take several years to iron out details in order to emerge from the process, according to people involved in the discussions, notes Bloomberg. In the report, the company said within 90 days of the creditors assembly, it would proceed with payment to suppliers, issuance of new notes as part of the restructuring, proceed with the recapitalization and hold a general shareholders meeting, the report adds. About Americanas SA Americanas was one of the largest diversified retail chains in Brazil, with a wide platform of physical stores, robust e-commerce, fintech, and has just entered into the niche food retail. It is listed on B3, being indirectly controlled by billionaire Jorge Paulo Lemann, Carlos Alberto Sicupira and Marcel Telles. The retailer nosedived in January 2023 after becoming mired in an accounting scandal. The firm filed for bankruptcy at a court in Rio de Janeiro on Jan. 19, 2023. Americanas sought protection under Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 23-10092) on Jan. 25, 2023. White & Case LLP, led by John K. Cunningham, is the U.S. counsel. BANCO DE DESENVOLVIMENTO: S&P Affirms 'B' Global Scale Rating ------------------------------------------------------------- S&P Global Ratings affirmed its 'B' global scale rating on Banco de Desenvolvimento de Minas Gerais S.A. (BDMG) and raised its long-term national scale rating to 'brA' from 'brA-'. S&P said, "The stable outlook on the long-term ratings reflects our view that we don't expect any changes to the bank's credit factors in the next 12 months. We expect the bank to maintain a stable financial performance and continue diversifying its funding sources, while keeping its prudent liquidity management." On Nov. 16, 2023, S&P Global Ratings affirmed its 'B' long-term issuer credit ratings on BDMG. At the same time, S&P raised the long-term national scale rating on the bank to 'brA' from 'brA-'. The outlook on both rating scales is stable. The bank lends mostly in the Brazilian state of Minas Gerais, where it provides mainly working capital and long-term loans to local companies and municipalities. S&P also incorporates its stronger capitalization than those of peers. As of June 2023, the bank's Basel III ratio was 26.1%, while its risk-adjusted capital (RAC) ratio was 13.2% as of December 2022. The loan portfolio remained stable at about R$5.6 billion as of June 2023 versus the same period last year. S&P said, "In our view, this indicates a manageable credit portfolio. BDGM also reported stable nonperforming loans (NPLs), despite an overall worsening in the financial system's NPLs due to the retail loan segment. As a result, we believe BDMG has improved its relative credit quality compared to peers with similar ratings." Given BDMG's role as a development bank, it renegotiated existing loans due to the pandemic's economic fallout. As of June 2023, restructured loans accounted for 21.1% of total loans, down from 24.7% at year-end 2022. S&P said, "In our view, the still high level of renegotiated loans keeps asset risk high mostly because of the challenging economic conditions for midsize companies. These companies are struggling to maintain their credit quality due to persistently high interest rates that increase debt burden. We think BDMG's oversight of this portfolio and guarantee structure partially mitigates the risk of material losses. "The state of Minas Gerais (CCC+/Stable/--), BDMG's controlling shareholder, has been improving its finances. In addition, we believe that Brazil's Fiscal Responsibility Law and banking regulations have protected the bank from potential intervention from the state." Moreover, BDMG continues to strengthen its relationship with foreign multilateral lending agencies, which is diversifying its funding sources and gradually decreasing the share of funding from the Brazilian Development Bank (BNDES). BRAZIL: Brazil's Economic Index Drops in Q3 ------------------------------------------- Richard Mann at Rio Times Online reports that Brazil's Central Bank reported a 0.64% decline in the IBC-Br, a preliminary GDP measure, in the third quarter of 2023. This decrease was announced on November 17, 2023, compared to the previous quarter, according to Rio Times Online. In September, the index fell by 0.06%, not meeting the financial analysts' expectation of a 0.20% rise, the report notes. This downturn marks the second consecutive monthly drop, following a 0.81% decrease in August, 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 O L O M B I A =============== ECOPETROL SA: Fitch Affirms 'BB+' LongTerm IDRs, Outlook Stable --------------------------------------------------------------- Fitch Ratings has affirmed Ecopetrol S.A.'s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB+'. The Rating Outlook for the IDRs is Stable. Fitch has also affirmed the company's National Long- and Short-Term ratings at 'AAA(col)'/'F1+(col)'. The Outlook for the National Long-Term rating is Stable. Ecopetrol's ratings reflect the close linkage with the Republic of Colombia (Foreign and Local Currency IDRs, BB+/Stable), which currently owns 88.5% of the company. Ecopetrol's ratings also reflect the company's strategic importance for the country, as well as its ability to maintain a solid financial profile. KEY RATING DRIVERS Linkage to Sovereign: Ecopetrol's ratings reflect the strong linkage with the credit profile of the Republic of Colombia, owner of 88.5% of the company's total capital. The ratings also reflect the very strong incentive of the Colombian government to support Ecopetrol in the event of financial distress, given the company's strategic importance to the country as a supplier of virtually all liquid fuel demand in Colombia, and owner of 100% of the country's refining capacity. Ecopetrol relies on the receipt of funds from the Colombian government, through its stabilization fund Fondo de Estabilizacion de Precios de los Combustibles (FEPC), to offset the difference from selling gasoline and diesel in the local market at lower prices versus the export market. At September 2023, the amount accrued in the FEPC was COP25.7 trillion (USD5.7 billion). Fitch expects that the balance in the FEPC account will decrease with several price adjustments beings rolled-out by the government. During 2022, the price of gasoline was adjusted by COP600/gallon, and by additional COP4,220/gallon during the nine months of 2023. Strong Financial Profile: Ecopetrol's 'bbb' Standalone Credit Profile (SCP) reflects the company's strong financial profile. Fitch-calculated gross leverage as measured by total debt to EBITDA is expected to average 2.5x through the rating horizon, which is moderate for the industry, as Brent prices continue supporting EBITDA generation, and debt is not expected to have any drastic changes. Fitch expects Ecopetrol's interest coverage as measured by EBITDA to interest expense coverage to exceed 6x consistently through the rating horizon. Positive FCF Expected: Fitch expects Ecopetrol's FCF to be positive going forward, subject to revisions to investment and dividends plans. Fitch's base case assumption includes the company having an average annual capex budget of approximately USD5.5 billion over the next three years, and that it will pay 60% of previous year's net income in line with its 40% to 60% dividend policy. This, coupled with Fitch's price assumptions for Brent crude oil price of USD80/bbl in 2023, USD75/bbl in 2024 and USD60/bbl in the long term, would result in positive FCF over the next three years. Stable Operating Metrics: Fitch assumes total hydrocarbons production to be 730 thousand barrels of oil equivalent per day (boe/d) in 2023 exhibiting a trend or recovery expected to continue over the next three years. The company's proved reserve (1P) of 1,969 million boe gave the company a reserve life of 8.7 years as of 3Q23. Fitch assumes a 105% reserve replacement rate. Fitch's calculated after-tax full cycle cost for Ecopetrol has remained relatively stable over the past three years at approximately USD47/boe. DERIVATION SUMMARY Ecopetrol's rating linkage to the Colombian sovereign rating is in line with the linkage for most national oil and gas companies (NOCs) in the region, including Petroleos Mexicanos (PEMEX; B+/Rating Watch Negative), Petroleo Brasileiro S.A. (Petrobras; BB/Stable), Petroleos del Peru - Petroperu S.A. (BB+/ Negative) and Empresa Nacional del Petroleo (ENAP; A-/Stable). In most cases in the region, NOCs are of significant strategic importance for energy supply to their countries, including in Mexico, Colombia and Brazil. NOCs can also serve as a proxy for federal government funding as in Mexico, and have strong legal ties to governments through their majority ownership, strong control and governmental budgetary approvals. Ecopetrol's SCP is commensurate with a 'bbb' rating, which is in line with that of Petrobras at 'bbb', given Petrobras' recent significant debt reduction. Excluding IFRS16 leases, Ecopetrol's leverage at YE 2021 was 3.1x. Ecopetrol's credit profile is materially higher than that of Pemex's 'ccc-' SCP as a result of Ecopetrol's deleveraging capital structure versus PEMEX's increasing leverage trajectory. Ecopetrol will continue to report stable production, which Fitch expects to stabilize around 700,000 boed. This production trajectory further supports the notching differential between the two companies' SCP. KEY ASSUMPTIONS Fitch's Key Assumptions Within the Rating Case for the Issuer - Ecopetrol remains majority owned by Colombia; - Brent average 80 USD/bbl in 2023 and USD75/bbl in 2024 before trending toward USD60/bbl in the long term; - 9.5% discount to Brent on average through rating horizon; - Stable production growth of 1.5% per annum through 2026; - 105% reserve replacement ratio per year; - Aggregate capex of approximately USD5.5 billion per year for the next three years; - Dividends of 60% of previous year's net income. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: - Although not expected in the short to medium term, an upgrade of Colombia's sovereign ratings. Factors that could, individually or collectively, lead to negative rating action/downgrade: - A downgrade of Colombia's sovereign ratings; - A significant weakening of the company's linkage with the government and a lower government incentive to support couple with a deterioration of its standalone credit profile; - A decrease of 1P reserves below 1.5 billion boe could trigger a downgrade to the SCP of the company from 'bbb'. LIQUIDITY AND DEBT STRUCTURE Strong Liquidity: Ecopetrol's strong liquidity profile is supported by cash on hand, which amounted to USD3.46 billion at Sept. 30, 2023, strong access to the capital markets and an adequate debt maturity profile. By November 2023, the company has already refinanced all of its 2023 maturities. Based on market appetite, Fitch does not expect Ecopetrol will have difficulty refinancing, partially or in full, its 2024 maturities. ISA contribution: Fitch expects that the majority of Ecopetrol's consolidated EBITDA will continue to be generated from its oil & gas business. Fitch estimates that ISA's EBITDA of USD1.7 billion in 2023, adjusted to Ecopetrol's ownership, is expected to represent 8.3% of Fitch's projected Ecopetrol EBITDA for 2023. Gross leverage excluding ISA, defined as total debt to EBITDA, is expected to be 2.0x in 2023, and Fitch forecasts 2.3x on average through 2026, compared to 2.5x on a fully consolidated basis. ISSUER PROFILE Ecopetrol is a leading integrated energy and infrastructure company in the Latin American and Central American region. The company is the largest in Colombia in relation to their Upstream, Midstream and Downstream business segments. Interconexion Electrica S.A. is 51% owned by Ecopetrol and is largest energy transmission company in the region acquisition. PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS Ecopetrol S.A.'s Long-Term IDR is linked to the sovereign rating of Colombia. ESG CONSIDERATIONS Ecopetrol S.A. has an ESG Relevance Score of '4' for Governance Structure due to its nature as a majority government-owned entity and the inherent governance risk that arises with a dominant state shareholder, which has a negative impact on the credit profile, and is relevant to the rating[s] in conjunction with other factors. Ecopetrol S.A. has an ESG Relevance Score of '4' for Exposure to Social Impacts due to multiple attacks to its pipelines, which has a negative impact on the credit profile, and is relevant to the rating[s] in conjunction with other factors. 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. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Ecopetrol S.A. LT IDR BB+ Affirmed BB+ LC LT IDR BB+ Affirmed BB+ Natl LT AAA(col) Affirmed AAA(col) Natl ST F1+(col) Affirmed F1+(col) senior unsecured LT BB+ Affirmed BB+ senior unsecured Natl LT AAA(col) Affirmed AAA(col) senior unsecured Natl ST F1+(col) Affirmed F1+(col) =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Agribiz Exporters Gets Free Trade Zone Benefits ------------------------------------------------------------------- Dominican Today reports that the Ministry of Industry, Commerce and Mipymes (MICM) is studying the proposal that companies in the agro-industrial area dedicated to exporting can belong to the Special Free Trade Zone regime and enjoy the tax and customs facilities that apply to them, including tax exemptions, the report notes. This was revealed by Minister Victor Bisono, who emphasized that this proposal has already been presented to the President, according to Dominican Today. Luis Abinader is responsible for creating free agricultural zones, as in other countries competing with local exports, the report relays. He expressed that companies were approved under this particular free zone branch before, but it was eliminated from the law. He said this would give more significant opportunities to accelerate industrialization and add value to Dominican agricultural products, the report discloses. He mentioned that there is a lot of international demand for dried fruit, and support must be given to this sector, the report says. He cited the example of famous agro-industrial companies in the country, such as Goya and Rica, that sell fruit concentrates or canned vegetables, the report notes. "Pineapple, cocoa, mango, greenhouse vegetables, avocado for export would be exempted from paying taxes on boxes, packaging, agrochemicals, fertilizers and other materials used to make them more productive and competitive, because other countries also have it," he said, notes the report. Bisono indicated that this proposal also considers the academic sector, private companies, and the Government, the report relays. He added that in Mao, Valverde, there is a unique free zone called Fresh Fruit, which exports organic bananas and works differently from the banana growers of Monte Cristi who are not, so they are at a disadvantage, the report adds. About Dominican Republic The Dominican Republic is a Caribbean nation that shares the island of Hispaniola with Haiti to the west. Capital city Santo Domingo has Spanish landmarks like the Gothic Catedral Primada de America dating back 5 centuries in its Zona Colonial district. Luis Rodolfo Abinader Corona is the current president of the nation. TCR-LA reported in April 2019 that Juan Del Rosario of the UASD Economic Faculty cited a current economic slowdown for the Dominican Republic and cautioned that if the trend continues, growth would reach only 4% by 2023. Mr. Del Rosario said that if that happens, "we'll face difficulties in meeting international commitments." An ongoing concern in the Dominican Republic is the inability of participants in the electricity sector to establish financial viability for the system. On August 14, 2023, the TCR-LA reported that Moody's Investors Service has changed the outlook on the Government of Dominican Republic's ratings to positive from stable and affirmed the local and foreign-currency long-term issuer and senior unsecured ratings at Ba3. Moody's said the key drivers for the outlook change to positive are: (i) sustained high growth rates have enhanced the scale and wealth levels of the economy; and (ii) a material decline in the government debt burden coupled with improved fiscal policy effectiveness will support medium-term debt sustainability. The affirmation of the Ba3 ratings balances the Dominican Republic's strong economic growth dynamics and relatively contained susceptibility to event risks, with a comparatively weaker fiscal position, reflecting long-standing credit challenges which include: (i) a shallow revenue base compared to peers, (ii) weak debt affordability metrics, and (iii) high exposure to foreign currency borrowing. S&P Global Ratings, in December 2022, raised its long-term foreign and local currency sovereign credit ratings on the Dominican Republic to 'BB' from 'BB-'. The outlook on the long-term ratings is stable. S&P affirmed its 'B' short-term sovereign credit ratings. S&P also revised its transfer and convertibility (T&C) assessment to 'BBB-' from 'BB+'. The stable outlook reflects S&P's expectation of continued favorable GDP growth and policy continuity over the next 12-18 months that will likely stabilize the government's debt burden. In February 2023, S&P said its BB ratings reflect the country's fast-growing and resilient economy. It also incorporates the country's historical political and social challenges in passing structural reforms to contain fiscal deficits, despite recent improvements in the electricity sector. The ratings are constrained by relatively high debt, a hefty interest burden, and limited monetary policy flexibility. Fitch Ratings, in December 2022, affirmed the Dominican Republic's Long-Term Foreign Currency Issuer Default Rating (IDR) at 'BB-' with a Stable Rating Outlook. =============== X X X X X X X X =============== [*] BOND PRICING COLUMN: For the Week Nov. 13 to Nov. 17, 2023 -------------------------------------------------------------- Issuer Cpn Price Maturity Country Curr ------ --- ----- -------- ------- ---- Earls Eight 2.3 75.2 05/20/2032 KY AUD Banco Davivienda SA 6.7 66.5 CO USD Banco de Chile 2.7 75.4 03/09/2035 CL AUD Banco de Chile 1.7 69.5 04/26/2032 CL EUR Banco del Estado 3.1 72.5 02/21/2040 CL AUD Banco del Estado de 1.7 70 03/01/2032 CL EUR Banco del Estado 2.8 68.9 03/13/2040 CL AUD Banco del Estado 1.7 69.2 07/05/2032 CL EUR Banco GNB Sudameris 7.5 73.3 04/16/2031 CO USD Banco GNB Sudameris 7.5 73.4 04/16/2031 CO USD Banco Santander Chile 1.3 57.6 11/29/2034 CL EUR Banco Santander Chile 3.1 72.3 02/28/2039 CL AUD Kaisa Group Holdings 10.9 9.1 KY USD Banda de Couro 8 69.1 01/15/2027 BR BRL Alibaba Group 3.3 63 02/09/2061 KY USD AMTD IDEA Group 4.5 52.5 KY SGD AAC Technologies 3.8 68.6 06/02/2031 KY USD ACEN Finance 4 70.9 KY USD AES Tiete 6.8 0.7 04/15/2024 BR BRL Transocean Inc 6.8 67.6 03/15/2038 KY USD Inversiones Latin 5.1 44.6 06/15/2033 CL USD Inversiones Latin 5.1 44.8 06/15/2033 CL USD Fospar S/A 6.5 1.3 05/15/2026 BR BRL Frigorifico 7.7 71.1 07/21/2028 PY USD Frigorifico 7.7 71.4 07/21/2028 PY USD Galaxy Digital 3 62.5 12/15/2026 KY USD Generacion 9.9 73.1 12/01/2027 AR USD Generacion 12.5 0 02/16/2024 AR USD Gol Finance Inc 8.8 40.5 KY USD Gol Finance Inc 8.8 42 KY USD Goldman Sachs 2.3 75.9 06/30/2040 KY EUR Greenland Hong Kong 10.2 45.9 KY USD Guacolda Energia SA 4.6 40.8 04/30/2025 CL USD Guacolda Energia SA 4.6 40.8 04/30/2025 CL USD Earls Eight 1.7 71.4 06/20/2032 KY AUD Ecopetrol SA 4.6 75 11/02/2031 CO USD Ecopetrol SA 5.9 63.9 11/02/2051 CO USD Ecopetrol SA 5.9 65.5 05/28/2045 CO USD Three Gorges Finance 3.2 74.2 10/16/2049 KY USD Telecom Argentina SA 1 56.5 02/10/2028 AR USD Telecom Argentina SA 1 64.2 03/09/2027 AR USD eHi Car Services 7 64.9 09/21/2026 KY USD Agile Group Holdings 6.1 41 10/13/2025 KY USD Agile Group Holdings 5.5 45 04/21/2025 KY USD Agile Group Holdings 5.5 39.2 05/17/2026 KY USD Alfa Desarrollo SpA 4.6 72.1 09/27/2051 CL USD Alfa Desarrollo SpA 4.6 72.1 09/27/2051 CL USD Alibaba Group 2.7 67.4 02/09/2041 KY USD Alibaba Group 3.2 65.2 02/09/2051 KY USD Agile Group Holdings 5.8 50.2 01/02/2025 KY USD QNB Finance 11.5 62.1 1/30/2025 KY TRY Lani Finance 3.1 68.6 10/19/2048 KY AUD Lani Finance 1.9 63.3 10/19/2048 KY EUR Lani Finance 1.7 60 03/14/2049 KY EUR Lani Finance 1.9 62.3 09/20/2048 KY EUR QNB Finance 3.4 75.4 10/21/2039 KY AUD QNB Finance 13.5 55.7 10/06/2025 KY TRY QNB Finance 2.9 75.3 12/04/2035 KY AUD Ruta del Maipo 2.3 53.5 12/15/2024 CL CLP Santander Consumer 2.9 73.1 11/27/2034 CL AUD Seagate HDD Cayman 3.4 73.4 07/15/2031 KY USD Seazen Group 4.5 63.6 07/13/2025 KY USD Silk Road Investments 2.9 68.8 01/23/2042 KY AUD Simpar Finance 10.8 73.8 02/12/2028 BR BRL Simpar Finance 10.8 73.8 02/12/2028 BR BRL Skylark 1.8 58.2 04/04/2039 KY GBP Tencent Holdings 3.8 74.1 04/22/2051 KY USD Tencent Holdings 3.9 72.3 04/22/2061 KY USD Tencent Holdings 3.2 66.2 06/03/2050 KY USD Tencent Holdings 3.2 66.5 06/03/2050 KY USD Tencent Holdings 3.3 63 06/03/2060 KY USD Tencent Holdings 3.3 63.5 06/03/2060 KY USD Panama Bond 4.5 73.5 01/19/2063 PA USD Panama Bond 4.3 74.8 04/29/2053 PA USD Panama Bond 3.9 66.8 07/23/2060 PA USD Earls Eight 0.1 63.8 12/20/2031 KY AUD Chile Bond 1.3 52 01/22/2051 CL EUR Chile Bond 3.1 66.9 01/22/2061 CL USD Chile Bond 1.3 65.4 01/29/2040 CL EUR Chile Bond 1.3 71.2 07/26/2036 CL EUR Chile Bond 3.3 66.6 09/21/2071 CL USD KWG Group Holdings 7.4 15.8 01/13/2027 KY USD KWG Group Holdings 6 40.8 01/14/2024 KY USD KWG Group Holdings 5.9 22.2 11/10/2024 KY USD KWG Group Holdings 6.3 17.6 02/13/2026 KY USD KWG Group Holdings 7.4 26.5 03/05/2024 KY USD KWG Group Holdings 6 19.4 08/10/2025 KY USD KWG Group Holdings 6 16.8 08/14/2026 KY USD KWG Group Holdings 7.9 27.5 08/30/2024 KY USD KWG Group Holdings 7.9 60.2 09/01/2023 KY USD MSU Energy SA 6.9 71.2 02/01/2025 AR USD Jamaica Government 8.5 68.9 12/21/2061 JM JMD Jamaica Government 6.3 72.7 07/11/2048 JM JMD China Maple Leaf 2.3 75 01/27/2026 KY USD China SCE Group 6 29 02/04/2026 KY USD China SCE Group 7.4 56.2 04/09/2024 KY USD China SCE Group 7 35.2 05/02/2025 KY USD China SCE Group 6 42.9 09/29/2024 KY USD Colombia Bond 7.3 71.3 10/18/2034 CO COP Colombia Bond 7.3 71.3 10/18/2034 CO COP Colombia Bond 7.3 61.5 10/26/2050 CO COP Colombia Bond 7.3 61.5 10/26/2050 CO COP Colombia Bond 3.9 54.8 02/15/2061 CO USD Colombia Bond 4.1 61.9 02/22/2042 CO USD Colombia Bond 5.6 72.7 02/26/2044 CO USD Colombia Bond 3.1 74 04/15/2031 CO USD Colombia Bond 3.3 72.1 04/22/2032 CO USD Colombia Bond 5.2 67.3 05/15/2049 CO USD Colombia Bond 4.1 58.8 05/15/2051 CO USD Colombia Bond 5 66.9 06/15/2045 CO USD Colombia Bond 6.3 63 07/09/2036 CO COP Colombia Bond 6.3 63 07/09/2036 CO COP Itau Unibanco SA 5.8 19.4 05/20/2027 BR BRL VTR Comunicaciones 5.1 55.3 01/15/2028 CL USD VTR Comunicaciones 5.1 53.6 01/15/2028 CL USD VTR Comunicaciones 4.4 54.4 04/15/2029 CL USD VTR Comunicaciones 4.4 54.5 04/15/2029 CL USD Vista Energy 1 73 03/03/2028 AR USD Voyager II 3.3 74.3 03/23/2034 KY AUD YPF SA 1 69.8 01/10/2026 AR USD YPF SA 7 61.6 12/15/2047 AR USD YPF SA 7 61 12/15/2047 AR USD UEP Penonome II SA 6.5 73.6 10/01/2038 PA USD UEP Penonome II SA 6.5 74.1 10/01/2038 PA USD Guaranteed 5.4 73.7 01/29/2038 KY USD Guaranteed 5.3 71.9 03/23/2038 KY USD Helenbergh China 8 32.9 11/07/2024 KY USD SYN prop e tech SA 13.6 20.3 3/15/2024 BR BRL Yango Cayman 12 3.9 09/15/2023 KY USD MSU Energy SA 6.9 70.8 02/01/2025 AR USD El Salvador Bond 6.4 62.3 01/18/2027 SV USD El Salvador Bond 6.4 62 01/18/2027 SV USD El Salvador Bond 7.1 48.5 01/20/2050 SV USD El Salvador Bond 7.1 48.6 01/20/2050 SV USD El Salvador Bond 5.9 46 01/30/2025 SV USD El Salvador Bond 7.6 49.4 02/01/2041 SV USD El Salvador Bond 7.6 49.4 02/01/2041 SV USD El Salvador Bond 8.6 58.1 02/28/2029 SV USD El Salvador Bond 8.6 57.9 02/28/2029 SV USD El Salvador Bond 8.3 56.4 04/10/2032 SV USD El Salvador Bond 8.3 56.3 04/10/2032 SV USD El Salvador Bond 7.7 50 06/15/2035 SV USD El Salvador Bond 7.7 50 06/15/2035 SV USD El Salvador Bond 9.5 54.6 07/15/2052 SV USD El Salvador Bond 9.5 54.5 07/15/2052 SV USD El Salvador Bond 7.6 49.9 09/21/2034 SV USD El Salvador Bond 7.6 50 09/21/2034 SV USD Agile Group Holdings 13.5 40.7 KY USD Agile Group Holdings 8.4 38.1 KY USD Agile Group Holdings 7.9 31 KY USD Argentina Bonar Bonds 1 19.8 7/09/2029 AR USD Argentina Bonar Bonds 1 27.5 08/05/2023 AR USD Argentina Treasury 2.5 25.3 11/30/2031 AR ARS Argentine Bond 0.5 19.5 07/09/2029 AR EUR Argentine Bond 1 23.7 07/09/2029 AR USD Argentine Bond 0.1 21.5 07/09/2030 AR EUR Argentine Bonos 16 72.6 10/17/2023 AR ARS Argentine Bonos 15.5 22.2 10/17/2026 AR ARS Ascent Finance 3.4 58.4 02/06/2043 KY AUD Ascent Finance 3.8 59.8 06/28/2047 KY AUD Ascent Finance 1.2 61.4 07/12/2047 KY EUR Astra Cumulative 1.5 60.6 11/01/2029 KY USD ********* 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 * * *