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

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

          Friday, December 8, 2023, Vol. 24, No. 246

                           Headlines



A R G E N T I N A

GAUCHO GROUP: Investor Converts Note Into Common Shares


B R A Z I L

AMERICANAS SA: Closed 121 Stores During Jan. to Oct. Period
BRAZIL: Inflation Exceeds Forecasts But Rate Cuts Still in Sight
GOL LINHAS: Fitch Lowers LongTerm IDR to 'CCC-'
SAMARCO MINERACAO: Consummates $4.8BB Consensual Debt Restructuring
XP INC: Moody's Affirms 'Ba2' CFR, Outlook Remains Stable



C A Y M A N   I S L A N D S

ITTIHAD INTERNATIONAL: Fitch Assigns Final 'B+' LT IDR


C O S T A   R I C A

COSTA RICA: IMF OKs 725M Loan Under RSF for Project Prep Facility


E L   S A L V A D O R

FONDO DE CONSERVACION: Fitch Rates Sr. Sec. Notes 'CCC+(EXP)sf'
FONDO DE CONSERVACION: Moody's Rates New $500MM Sr. Sec. Notes Caa3


J A M A I C A

JAMAICA: BOJ Progressing With Plan for Deposit Portability


P U E R T O   R I C O

INSIGHT MANAGEMENT: Plan Filing Deadline Extended to Dec. 19


S U R I N A M E

SURINAME: S&P Ups LT Sov. Credit Rating to 'CCC+', Outlook Stable

                           - - - - -


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A R G E N T I N A
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GAUCHO GROUP: Investor Converts Note Into Common Shares
-------------------------------------------------------
Gaucho Group Holdings, Inc. disclosed in a Form 8-K filed with the
Securities and Exchange Commission that on Nov. 20, 2023, pursuant
to a senior secured convertible note, as amended, an institutional
investor elected to convert a total of $181,707 of principal and
$27,256 of premium into 371,081 shares of common stock of the
Company at a conversion price of $0.5631 per share.

On Nov. 27, 2023, pursuant to the Note, the investor elected to
convert a total of $57,659 of principal, $2,743 of interest, and
$9,060 of premium into 135,500 shares of common stock of the
Company at a conversion price of $0.5126 per share.

Gaucho Group the Investor entered into that certain Securities
Purchase Agreement, dated as of Feb. 21, 2023 and the Company
issued to the Holder a senior secured convertible note, as amended,

and warrant to purchase 337,710 shares of common stock of the
Company.

                          About Gaucho Group

Headquartered in New York, NY, Gaucho Group Holdings, Inc.'s
(gauchoholdings.com) mission has been to source and develop
opportunities in Argentina's undervalued luxury real estate and
consumer marketplace.  The Company has positioned itself to take
advantage of the continued and fast growth of global e-commerce
across multiple market sectors, with the goal of becoming a leader
in diversified luxury goods and experiences in sought after
lifestyle industries and retail landscapes.

Gaucho Group reported a net loss of $21.83 million for the year
ended Dec. 31, 2022, compared to a net loss of $2.39 million for
the year ended Dec. 31, 2021. As of March 31, 2023, the Company had
$21.01 million in total assets, $8.60 million in total liabilities,
and $12.40 million in total stockholders' equity.

New York, NY-based Marcum LLP, the Company's auditor since 2013,
issued a "going concern" qualification in its report dated April
17, 2023, citing that the Company has a significant working capital
deficiency, has incurred significant losses and needs to raise
additional funds to meet its obligations and sustain its
operations.  These conditions raise substantial doubt about the
Company's ability to continue as a going concern.



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B R A Z I L
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AMERICANAS SA: Closed 121 Stores During Jan. to Oct. Period
-----------------------------------------------------------
Leonardo Lara of Bloomberg News reports that Americanas S.A., the
Brazilian retailer in judicial recovery, closed 121 stores in the
period between January and October 2023, according to monthly
report of activities, prepared by the retailer's judicial
administrators.

As of Oct. 31, 2023, the company had 1,759 stores in operation,
according to the report.

The Document informs that there are currently 16 eviction actions
underway against the company.

Eviction lawsuits are filed due to non-payment of claims, and in
some of these cases, the recovering companies have judicially
deposited the amounts charged, report says.

The number of active customers ended October at 42 million compared
48.4 million in January 2023.

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

BRAZIL: Inflation Exceeds Forecasts But Rate Cuts Still in Sight
----------------------------------------------------------------
Reuters reports that Brazil's annual inflation came in slightly
above market expectations in mid-November but remained within
striking distance of the top end of the central bank's target
range, likely allowing it to deliver further interest rate cuts.

The IPCA-15 consumer price index stood at 4.84% in the year to
mid-November, data from statistics agency IBGE showed, up from
4.82% at the end of last month and overshooting forecasts of 4.80%
in a Reuters poll of economists, according to globalinsolvency.com.


The latest figure, nonetheless, kept 12-month inflation in Latin
America's largest economy close to the central bank's upper band of
4.75%, a goal private economists believe will be met this year for
the first time since 2020, the report notes.

Following 1,175 basis points of hikes, the central bank held its
benchmark interest rate at a six-year high of 13.75% for nearly a
year before kicking off a monetary easing cycle in August, the
report adds.

The monetary authority has so far delivered three 50-basis-point
rate cuts and flagged that it should maintain the pace and reduce
borrowing costs by another 50 basis points at each of its next two
meetings, notes the report.

"Overall, the inflation picture remains benign in Brazil, and we
expect more good news ahead," the report quotes Pantheon
Macroeconomics' chief Latin America economist Andres Abadia as
saying, citing the lagged effect of tighter financial conditions.

In the month to mid-November, according to IBGE, consumer prices
rose 0.33% in Brazil, up from 0.21% in the previous month and above
the 0.30% expected by Reuters-polled economists.

The increase was mainly driven by higher food and beverage costs,
the agency said, with personal expenses and transportation prices
also ticking up in the month on rises in travel-related items, such
as hotels and air tickets, notes the report.

"Slightly above expectations, but with a very benign qualitative
reading," Inter's chief economist Rafaela Vitoria said of the
monthly figure, Reuters relates. "The last central bank minutes
left no room for it to accelerate (the pace of rate cuts), so a cut
of 50 basis points in December with the bank flagging fresh equal
cuts thereafter should remain the consensus."

Central bank policymakers are due to meet on Dec. 12 to 13, adds
the report.

                          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).

GOL LINHAS: Fitch Lowers LongTerm IDR to 'CCC-'
-----------------------------------------------
Fitch Ratings has downgraded GOL Linhas Aereas Inteligentes S.A.'s
(GOL) Long-Term Foreign and Local Currency Issuer Default Ratings
(IDRs) to 'CCC-' from 'CCC+', and its Long-Term National Scale to
'CCC-(bra)' from 'CCC(bra)'. Fitch has also downgraded GOL Finance
Inc.'s unsecured bonds to 'CC/RR5' from 'CCC/RR5'.

The downgrades reflect increasing risks of GOL's debt restructuring
as a result of its ongoing high refinancing risks, operating cash
flow pressure due to current and deferred leases payments and weak
liquidity position. The assessment incorporates the company´s
recent announcement of hiring a financial advisor to review its
capital structure.

KEY RATING DRIVERS

Concerns of Broader Debt Restructuring: On Dec. 1 2023, GOL
announced that it has mandated Seabury Capital to assist in a
broader review of its capital structure, including full liability
management (financial and leasing obligations) seeking to reprofile
all its debt scheduled amortizations, as well as other measures to
reinforce liquidity. This follows GOL's ongoing renegotiation with
lessors. The increase in lease payments following their
reduction/postponements during the COVID-19 pandemic crisis, in
addition to elevated interest rates have been pressuring GOL´s FCF
generation. Different from others players in the region, GOL has
not yet completed a full renegotiation of its leasing obligations.

Elevated Refinancing Risks: The recurring free cash flow pressure
from high leasing and interest expenses despite improving operating
performance, are resulting in an unsustainable debt profile. GOL's
short-term maturities totaled BRL2.9 billion as of Sept. 30, 2023,
consisting of BRL1.1 billion of financial debt and BRL1.8 billion
of leasing obligations. Readily available cash, per Fitch's
criteria, was BRL905 million. At the same period, GOL had around
USD200 million (out of USD450 million) of available credit line
with its shareholder Abra Group Limited (Abra). This transaction
with Abra is a result of another debt restructuring transaction
that GOL announced early in the year (March 2023), that also
included a credit line of around USD450 million.

Improving Operations: The scenario of strong passenger traffic
levels in Brazil, strong yields, elimination of PIS/Confins taxes,
lower fuel prices and cost structure improvements, including some
fleet optimization, are leading to improvements in GOL's operating
cash flow generation. Fitch expects GOL's adjusted EBITDA to reach
BRL4.4 billion in 2023, compared with BRL2.9 billion in 2022, and
around BRL4.8 billion in 2024, with adjusted EBITDA margins of
24%-25%. Brazilian domestic market demand has rebounded strongly,
with the passenger traffic growing 5% in the first 10 months of the
year compared to same period of 2019 (pre-pandemic level).

Capex to Pressure FCF: GOL also has deal to increasing cash outflow
levels to cope with the growing capex for its ongoing its fleet
renewal. For 2023 and 2024, Fitch forecasts GOL's FCF to be
negative BRL1.6 billion and BRL1.1 billion, respectively,
considering BRL2.5 billion and BRL2.0 billion of capex,
respectively. FCF was positive BRL226 million in 2022, after BRL857
million of capex. Fitch expects GOL's total and net leverage, per
the agency's criteria, to move to around 5.7x and 5.7x,
respectively, in 2023 and 5.7x and 5.6x, respectively, in 2024.

Strong Competitive Environment: The rational behavior of the three
largest players in the domestic market has been key for the
industry recovery. In a scenario of increasing capacity for few
players, traffic levels normalization and weaker macroeconomic
environment, yields are likely to deteriorate in 2023, but Fitch
expects them to remain healthy.

Good Market Position: GOL has a leading business position in the
Brazilian domestic airline market, which Fitch views as sustainable
over the medium term, with around a 34% a market share as measured
by revenue passenger kilometers in 2022. GOL's operating results
are highly correlated to the Brazilian economy, as around 87% of
its revenues are originated in the domestic market.

Fitch assesses GOL on standalone basis and has not incorporated any
developments related to the creation of Abra, despite the recent
debt restructuring. Fitch believes there could be opportunities for
cost savings under a group framework in the medium long term. GOL
and Avianca are likely to continue to operate independently and
maintain their individual brands.

DERIVATION SUMMARY

GOL's 'CCC-' rating reflects the company's challenge to recover and
sustain a positive operating cash flow generation after the
recently announced debt restructuring.

GOL has a weaker position relative to global peers given its
limited geographic diversification and relatively high operating
leverage. In comparison with local players in Latin America, GOL
also has higher leverage and weak position compared to Azul S.A
(B-/BB(bra)/Stable) and LATAM Airlines Group S.A. (BBB(cl)). Its
strong position in the Brazilian regional market and high operating
margins have nevertheless been key rating drivers. Foreign exchange
risk exposure is a negative credit factor for GOL considering its
limited geographic diversification; the company operates currency
hedging which partially mitigates this risk.

KEY ASSUMPTIONS

- For 2023, Fitch's base case includes a recovery in GOL's domestic
RPK to around 90% 2019 levels and by 5% increase in 2024;

- WTI oil prices around USD80/barrel for 2023 and declining towards
USD75/barrel through 2024;

- Load factors around 81% during 2023 and 2024;

- Average Capex of BRL2.5billion in 2023 and BRL2 billion in 2024.

RATING SENSITIVITIES

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

- Material improvement in the company's debt-amortization profile,
reducing refinancing risks, associated with the maintenance of
sound liquidity position;

- Maintenance of the solid rebound in the domestic air traffic in
Brazil.

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

- Announcement of a broader refinancing that would lead to material
reduction in terms for debtholders;

- Continuous difficulties to access credit lines and/or to
refinance its bonds.

LIQUIDITY AND DEBT STRUCTURE

Track Record of Weak Liquidity Position: GOL's short-term
maturities totaled BRL3.0 billion as of Sep. 30, 2023, consisting
of BRL1.2 billion of financial debt and BRL1.8 billion of leasing
obligations. Readily available cash, per Fitch's criteria, was
BRL905 million. GOL considers its accounts receivable (BRL1
billion) and deposits (BRL2.7 billion) as another sources of
liquidity. At the same period, GOL had around USD200 million (out
of anUSD450 million) of available credit line with its shareholder
Abra Group Limited (Abra).

At Sept. 30 2023, GOL's total debt was BRL20.3 billion, per
Fitch´s criteria. Excluding leasing obligations (BRL9.8 billion),
the majority of GOL remain debt refers to cross-border bonds
(BRL9.3 billion). These issuances have the following maturities:
BRL188 million exchangeable notes due 2024, BRL1.7 billion of
senior notes due 2025, BRL2.3 billion of notes due 2026, BRL4.4
billion due 2028 and perpetual notes of BRL708 million.

ISSUER PROFILE

GOL is a leading Brazilian airline, with around 34% market share in
the domestic market, per revenue per RPK in 2022. As of September
30 2023, GOL's fleet included 141 Boeing 737 aircraft, with 97 NGs,
39 MAXs and five Cargo NGs.

ESG CONSIDERATIONS

Gol Linhas Aereas Inteligentes S.A has an ESG Relevance Score of
'4' for Management Strategy due to announcement of a corruption
case and charges implemented by The Securities and Exchange
Commission (SEC) and Department of Justice (DOJ) during 2022. This
has a negative impact on the ratings 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
   -----------              ------            --------  -----
GOL Linhas Aereas
Inteligentes S.A.  LT IDR    CCC-     Downgrade         CCC+
                   LC LT IDR CCC-     Downgrade         CCC+
                   Natl LT   CCC-(bra)Downgrade         CCC(bra)

Gol Finance Inc.

   senior
   unsecured       LT        CC       Downgrade  RR5    CCC

GOL Linhas Aereas
S.A.               LT IDR    CCC-     Downgrade         CCC+
                   LC LT IDR CCC-     Downgrade         CCC+
                   Natl LT   CCC-(bra)Downgrade         CCC(bra)

SAMARCO MINERACAO: Consummates $4.8BB Consensual Debt Restructuring
-------------------------------------------------------------------
On December 1, 2023, Samarco consummated a consensual, cross-border
restructuring of approximately $4.8 billion in funded debt.  The
restructuring transactions, which resolve a contentious,
eight-year-long process, were implemented through a plan that was
jointly filed by Samarco and the ad hoc group in Samarco's
Brazilian judicial reorganization proceeding.  The joint plan was
approved by the Brazilian court overseeing Samarco's judicial
reorganization proceeding on September 1, 2023, and was also
granted enforcement in the United States by the United States
Bankruptcy Court for the Southern District of New York on October
10, 2023.

The plan and restructuring followed the entry by members of the ad
hoc group, Samarco and Samarco's shareholders into a comprehensive
restructuring support agreement that also provided for the
settlement of numerous ongoing litigation proceedings.

The jointly filed plan is the first creditor-proposed Brazilian
restructuring plan approved in an internationally significant case
following a 2021 amendment to Brazil's insolvency laws that, for
the first time, made it possible for creditors to propose
restructuring plans as an alternative to the debtor's plan.
Pursuant to the plan, members of the ad hoc group and most other
financial creditors will receive approximately $3.7 billion of new
senior notes due 2031.

Headquartered in Belo Horizonte, Minas Gerais, Brazil, Samarco is a
mining company with operations in Minas Gerais and Espírito Santo.
Samarco's products include direct reduction and blast furnace
pellets and iron ore fines, which supply various industries in the
Americas, Europe, the Middle East, North Africa and Asia.

Davis Polk served as U.S. counsel to an ad hoc group of financial
creditors of Samarco Mineracao S.A.

The Davis Polk restructuring team included partners Timothy
Graulich, Angela M. Libby and David Schiff and associates Jarret
Erickson, Paavani Garg, Moshe Melcer and Motty Rivkin. The capital
markets team included partner Yasin Keshvargar and associates
Michael Stromquist and Christian Knoble. Partner Antonio J.
Perez-Marques and counsel Matthew Cormack provided litigation
advice. Partners Manuel Garciadiaz and Leo Borchardt provided
general corporate advice. Partners Corey M. Goodman and Lucy W.
Farr provided tax advice. Members of the Davis Polk team are based
in the New York, London and São Paulo offices.

Davis Polk refers to Davis Polk & Wardwell LLP, a New York limited
liability partnership, and its associated entities.

                  About Samarco Mineracao SA

Samarco Mineracao SA is a Brazilian mining joint venture between
BHP Group and Vale SA. erves as an iron ore processing company. The
company provides blast furnace, direct reduction, sinter feed, as
well as low and normal silica content pellets.

On April 9, 2021, the Debtor filed a voluntary petition for
judicial reorganization in the 2nd Business State Court for the
Belo Horizonte District of Minas Gerais in Brazil pursuant to
Brazilian Federal Law No. 11,101 of February 9, 2005.

Samarco Mineracao filed for Chapter 15 bankruptcy recognition
(Bankr. S.D.N.Y. Case No. 21-10754) on April 19, 2021, in New York,
to seek U.S. recognition of its Brazilian proceedings.

The Debtor's U.S. counsel:

      Thomas S. Kessler
      Cleary Gottlieb Steen & Hamilton LLP
      Tel: 212-225-2000
      E-mail: tkessler@cgsh.com

XP INC: Moody's Affirms 'Ba2' CFR, Outlook Remains Stable
---------------------------------------------------------
Moody's Investors Service has affirmed XP Inc.'s long-term
corporate family rating at Ba2 and long-term foreign currency
backed senior unsecured rating at Ba2. The outlook on XP is
maintained stable.

RATINGS RATIONALE

In affirming XP's Ba2 CFR, Moody's acknowledges the company's
consistent track record of generating recurring earnings, which
reflects a business structure consisting of diversified sources of
revenue and well-established footprint in the financial investment
service segment, credit strengths that have helped XP to transition
through economic cycles. In the next 12 months, XP's profitability
will likely strengthen as a result of a gradual easing of Brazil's
monetary policy, which will benefit the origination of revenue from
equities, the largest contributor for XP's gross revenue with 26%
of total earnings in the third quarter of 2023.  

XP has reported a consistent growth in active clients over the past
five years, reaching 4.4 million in September 2023, with total
client assets under management of BRL1.1 trillion ($221 billion).
XP also has a steady history of maintaining a disciplined
risk-appetite strategy in its market-making activities that has
supported its performance in times of high financial market
voltility. The affirmation of the Ba2 CFR also incorporates XP's
wide franchise as a full-service securities company, with a broad
array of market-making and brokerage services to both retail and
institutional clients.

In September 2023, XP's return on average assets (ROAA), as
measured by Moody's, stood at 1.8%, compared with 2.3% one year
prior, reflecting high operating expenses, despite recent cost
savings in 2023 that adjusted its administrative structure to a
more mature operation, as well as a 26% rise in total assets. In
2024, Moody's expect XP's ROAA will move towards ratios the company
reported in 2018-2020, above 2.0%, pushed by growth of its core
operation in the retail segment, particularly equities and
investment funds. Trading volumes and investors' appetite for
riskier assets will strengthen as a result of ongoing easing
monetary cycle in Brazil and the gradual expansion of XP's banking
activities.

However, competition for investors' resources will continue to
intensify, specially from large incumbent banks; although Moody's
expect XP to maintain its strong market presence supported by
robust technological focus, full-digital operation and continued
growth into new products and banking products. In addition, Moody's
notes that the Ba2 CFR assigned to XP acknowledges challenges
associated with keeping diligent risk management policies and
controlling operational risks, while it expands operations into new
lines of business dominated by incumbent banks, which could
eventually result in increased risk taking.

XP's steady profitability has also supported the steady
reinvestment of earnings as capital, which increased 14.6% annually
to BRL20 billion in September 2023. Moody's said that XP's Ba2
rating also incorporates the company's reasonable volume of liquid
assets, modest amount of long-term debt funding relative to capital
and a balance sheet leverage that has remained contained, at 13.4x
as of September 2023, despite strong growth. Moody's expects XP
will likely show a gradual increase in leverage as it continues to
diversify funding sources and optimizes its capital structure while
implementing its growth strategy. Despite that, XP's indebtedness
and coverage ratios will remain consistent with its Ba2 CFR.

XP's stable outlook is consistent with the stable outlook at the
Brazilian sovereign of Ba2, and also considers Moody's expectation
that XP will continue to generate strong profitability and cash
flows and that its ongoing growth will not result in any
significant deterioration in leverage, risk appetite or liquidity.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

XP's CFR and debt rating are at the same level as the Government of
Brazil's Ba2 sovereign rating, reflecting the company's strong link
to sovereign risk through its market-making activities in Brazilian
sovereign debt, holdings of government securities and geographical
concentration of operations in Brazil. A positive move in Brazil's
sovereign rating could result in an upward movement in XP's
ratings.

XP's CFR could be downgraded if the company shows material increase
in risk appetite that could weaken its liquidity profile or rise
its balance sheet leverage. A substantial failure in risk
management and controls, or a sustained fall in profitability from
increased competition or changes in the regulatory environment
could also result in downward rating pressure. A downgrade in
Brazil's credit ratings could also lead to a downgrade in XP's
ratings.

The principal methodology used in these ratings was Securities
Industry Market Makers Methodology published in November 2019.



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C A Y M A N   I S L A N D S
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ITTIHAD INTERNATIONAL: Fitch Assigns Final 'B+' LT IDR
-------------------------------------------------------
Fitch Ratings has assigned Ittihad International Investment LLC
(Ittihad) a final Long-Term Issuer Default Rating (IDR) of 'B+' and
senior unsecured debt rating of 'B+' with a Recovery Rating of RR4.
The Outlook on the IDR is Stable.

Fitch has also assigned Ittihad's USD350 million sukuk trust
certificates, issued through Ittihad International Ltd (Ittihad
International), a final rating of 'B+' with a Recovery Rating of
'RR4'. The instruments were priced at 9.750% maturing in November
2028. The proceeds of the issuance were used to repay USD310
million of existing secured debt at the group level and USD30
million short term facilities at the subsidiaries level.

The ratings reflect Ittihad's high but improving leverage, and
moderately negative free cash flow (FCF) as working capital (WC)
normalises. Rating strengths are a strong regional presence in
paper, cement, building materials and copper production, with a
competitive position in the local market. Fitch rates Ittihad on a
consolidated basis using the generic approach due to its
diversified portfolio of companies spread across the industrials,
healthcare and business services sectors.

Ittihad International is the issuer of the certificates and
trustee. The trustee is an exempted company with limited liability
incorporated in the Cayman Islands and has been incorporated solely
for the purpose of participating in the transactions contemplated
by the transaction documents to which it is a party and its shares
are held by MaplesFS Limited as share trustee.

KEY RATING DRIVERS

Competitive Regional Position: Ittihad's paper businesses benefit
from geographic connectivity and competitive advantage, while
allowing it to build long standing relationship with global
industry players across 25 markets. The company has a diversified
pool of suppliers in LATAM, North America and Europe, adding
further visibility in its value chain while reducing dependency
risk on single supplier.

Diversified Portfolio Mix: Ittihad operates in four key sectors
with the subsectors of paper and building materials contributing
58% and 21% of consolidated gross profit in 2022 respectively. The
group's paper and tissue manufacturer operates to global standards,
being the largest producer of uncoated wood-free paper and the
largest importer of pulp in the region. The infrastructure and
building materials operations comprise the largest standalone
producer of copper rods in the region through Union Copper Rod
(UCR) and an established distributor of straight steel bars.

For pulp and steel commodities, the group maintains around 35 to 60
days worth of inventory backed by customer orders. Inventory prices
reflect raw material costs plus conversion premium in line with
industry averages. The company has long order backlog visibility
and faces minimal cancellations on client orders. The company
production facilities allowed it to be one of the largest importer
of pulp in the region. The impact of raw material cost is
mitigated. Through its subsidiary IPM, Ittihad stands as the second
largest producer of uncoated wood-free paper in MENA and the Indian
subcontinent.

Capital Structure Evolving: While funding is relatively
centralised, substantial debt obligations have been raised at the
Opco level on a secured and guaranteed basis. After the recent
sukuk issuance, the company materially reduced prior-ranking debt
at the Opco level by USD310 million. The unencumbered asset cover
is at 1x with no impact on leverage. As of end-2022, Fitch adjusted
readily marketable inventory (RMI)MI gross leverage stood at 5.7x
with gradual improvement to 4.6x in 2025.

Working Capital and Capex Pressure FCF: Fitch expects a negative
FCF margin in 2024-2025 following capital expenditure and working
capital outflows. The spike in capex for 2024 and 2025 is to fund
the group's expansionary plans such as Crown Paper Mill's factory
in Saudi Arabia and the acquisition of new machinery for UCR. From
2025, Fitch forecasts low, single-digit maintenance capex. Capex is
committed and prefunded by external debt.

Fitch expects working capital outflows in 2024, driven by high
inventory levels at UCR, supported by back-to-back contracts, and
an increase in receivables from the paper and pulp businesses. The
group has stable yet thin margins with consolidated EBITDA margins
at 4.4% in 2022. Fitch expects this to improve over its forecasts,
averaging 4.8% supported by high revenue visibilities from its
consumer goods, copper and business services segments.

Enhanced Operating Environment: The company benefits from strong
market fundamentals in the UAE and in the region. The underlying
demand in its businesses remains robust. The demand for copper rods
is expected to increase to support growth in electrical cables and
utilities in the region. UCR produces on average 220k MT per year,
representing nearly half of the UAE's copper rods production
capacity. Similarly, steel rebar market in the GCC is expected to
benefit from increased momentum in infrastructure projects
primarily in the UAE and Saudi Arabia.

Low Commodity Price Exposure: Ittihad operates a physical
arbitrage-based model for its copper operations, enabling it to
hedge against swings in commodity prices. The company has
back-to-back contracts with suppliers and customers, ensuring full
pass-through of price risk. Exposure to copper volatility is
limited by the LME copper price being a fairly modest component of
its products. In addition, about 80% of copper is procured through
annual contracts with global companies such as Glencore and
Trafigura. The balance is sourced from recycled copper.

Ittihad International - Trustee and Sukuk Issuer

The Sukuk issuance rating is aligned with Ittihad's IDR. This
reflects Fitch's view that a default of these senior unsecured
obligations would reflect a default of Ittihad, in accordance with
the agency's rating definitions.

Fitch has given no consideration to any underlying assets or
collateral provided, as the agency believes that the trustee's
ability to satisfy payments due on the certificates will ultimately
depend on Ittihad satisfying its unsecured payment obligations to
the trustee under the transaction documents described in the
prospectus and other supplementary documents. The sukuk structure
includes a guarantee from wholly-owned subsidiaries of Ittihad such
as Ittihad Paper Mill (IPM) and other guarantors in favour of the
trustee.

In addition to Ittihad's propensity to ensure repayment of Ittihad
International's obligations, Fitch believes it would also be
required to ensure full and timely repayment of Ittihad
International's sukuk obligations, due to its role and obligations
under the sukuk structure and documentation, which include
especially but are not limited to the features below:

- The rental payment by and the instalment payment of any profit
amount is intended to be sufficient to fund the periodic
distribution amount payable by the trustee under the trust
certificates.

- On any dissolution or default event, the aggregate amounts of
deferred sale price then outstanding will become immediately due
and payable; and the trustee will have the right under the purchase
undertaking to require Ittihad to purchase all of its rights,
title, interests, benefits and entitlements in, to and under the
lease assets at an exercise price.

- The exercise price payable by Ittihad under the purchase
undertaking to the trustee, together with the aggregate amounts of
the deferred sale price then outstanding, if any, are intended to
fund the dissolution distribution amount payable by the trustee
under the trust certificates. The dissolution distribution amount
should equal the sum of (i) the outstanding face amount of the
certificates; and (ii) any accrued but unpaid periodic distribution
amounts relating to such certificates.

- In a total loss event or partial loss event (unless the relevant
lease assets have been replaced by Ittihad), if there is a
shortfall from the insurance proceeds, Ittihad undertakes to pay
the loss shortfall amount directly into the transaction account. If
the service agent is not in compliance with the obligation to
insure the assets against total loss or partial loss events, it
will immediately deliver written notice to the trustee and the
delegate of such non-compliance and the details thereof, and this
will constitute an obligor event.

- Ittihad's payment obligations under the lease agreement, purchase
undertaking, service agency agreement, and master murabaha
agreement will be direct, unsubordinated, unconditional and
unsecured obligations and will at all times rank at least equally
with all other present and future unsecured and unsubordinated
obligations of Ittihad from time to time outstanding.

- Additionally, Ittihad's subsidiaries (acting as guarantors) have
agreed to unconditionally, irrevocably and jointly and severally
guarantee, in favour of the trustee, the delegate and the agents,
the due and punctual performance by Ittihad of all of its payment
obligations under, and in accordance with the terms of, the
transaction documents to which the Ittihad is a party. To the
extent that Ittihad does not pay any sum payable by it under the
transaction documents by the time and on the date specified for
such payment, the guarantors will pay that sum as directed.

- The obligations of each guarantor under the guarantee will be
direct, unconditional, unsubordinated and unsecured obligations of
such guarantor, which at all times rank at least equally with all
other present and future unsecured and unsubordinated obligations
from time to time outstanding of such guarantor.

The sukuk documentation includes an obligation for Ittihad to
ensure that at all times, the tangible asset ratio (defined as the
ratio of the value of the lease assets to the aggregate value of
the lease assets plus the outstanding deferred sale price) is more
than 50%. Failure of Ittihad to comply with this obligation will
not constitute an obligor event.

If the tangibility asset ratio falls below 33% (tangibility event),
the certificates will be delisted and certificate holders will have
the option to require the redemption of all or any of its
certificates at the dissolution distribution amount. In this event,
there would be implications on the tradability and listing of the
certificates. Fitch expects Ittihad to maintain the tangibility
ratio above 50% with support from the asset base held by the seller
IPM (a wholly-owned subsidiary of Ittihad). IPM's tangible fixed
assets totaled over USD300 million as of 31 December 2022.

- Ittihad's sukuk documentation includes a change-of-control
clause. It also includes restrictive covenants and cross
acceleration provisions; financial reporting obligations to the
trustee/delegate; and certain Ittihad events. It also includes
cross-default clauses.

- Certain transaction documents are governed by English law while
others are governed by the laws of Abu Dhabi and the federal laws
of the UAE. Fitch does not express an opinion on whether the
relevant transaction documents are enforceable under any applicable
law. However, Fitch's rating on the certificates reflects the
agency's belief that Ittihad would stand behind its obligations.
Fitch does not express an opinion on the certificates' compliance
with sharia principles when assigning ratings to the certificates.

DERIVATION SUMMARY

Ittihad's asset portfolio consists of investments in various
sectors including steel, copper, cement, paper, tissue, waste
management, infrastructure, and medical services. It does not have
close publicly rated peers. Ittihad has conservative financial and
investment policies, strong operational oversight over subsidiaries
and a high leverage profile, leading to commensurate leverage
metrics for its rating category.

Unlike other commodity trading peers, Ittihad has stable margins
and power in the value chain with hedged exposure to commodities.
Fitch analysed Ittihad's subsidiaries based on their respective
peers in each sector. Fitch used Mytilineos S.A. (BB+/Stable) and
JSC Uzbek Mettalurgical Plant (BB-/Stable) for peers in the steel
and copper segment. Mytilineos operates on a larger scale than
Ittihad with a stronger financial profile and higher margins. JSC
Uzbek has similar scale to Ittihad's but a stronger financial
profile.

The sukuk's ratings are derived from Ittihad's Long-Term IDR and
are in line with the company's senior unsecured rating.

KEY ASSUMPTIONS

- Revenue to decrease 2% in 2023 on copper price declines, before
growing on average 3.5% for 2024- 2027

- Stable recovery of EBITDA margin to 2027 on an improved product
mix and price increases

- Higher working capital outflow in 2024 and 2025 on increases in
inventory and receivables, followed by flat working capital to 2027
after cash collection and destocking

- Increased capex for 2024 and 2025 due to expansion of new plants,
followed by declines in 2026 to 2027

- No M&A planned

- Common dividends of AED20 million paid annually

- Release of AED184 million of restricted cash after debt
repayment

- Gradual deleveraging to 2027 after debt repayments and on
improved profitability

RECOVERY ANALYSIS

- The recovery analysis assumes that Ittihad would be liquidated
rather than restructured in bankruptcy

- Its estimate of liquidation value (LV) available for creditor
claims is about AED2.6 billion due to high-value assets in contrast
to its low EBITDA margins

- A 10% administrative claim

- Fitch estimates the total amount of senior debt claims at AED1.55
billion, which comprises the working capital facilities. AED2.1
billion of unsecured debt, assuming a fully drawn revolving credit
facility, and the issued sukuk

- The allocation of value in the liability waterfall results in
recoveries corresponding to 'RR2' and a 'BB' debt rating for the
senior secured notes and 'RR4' and a 'B+' instrument rating for the
senior unsecured debt.

RATING SENSITIVITIES

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

- RMI-adjusted EBITDA gross leverage below 4x on a sustained basis

- EBITDA interest coverage above 3x on a sustained basis

- FCF margin above 2% on a sustained basis

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

- RMI-adjusted EBITDA gross leverage above 5x on a sustained basis

- EBITDA interest coverage below 2x on a sustained basis

- Negative FCF margin on a sustained basis

- Adoption of a more aggressive financial policy with a lower
percentage of inventories hedged or pre-sold

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: Ittihad had AED572 million of readily available
cash as of June 2023, supported by an undrawn committed facility of
AED385 million. Fitch expects a further release of restricted
deposits of AED184 million during 2023, which will strengthen the
group's liquidity.

Low Refinancing Risk: The group has no significant maturities to
2027 post sukuk issue, given the refinancing of its term loans and
partial repayment of its WC facilities. Its capital structure
relies on working capital facilities as part of their commodity
trading businesses. Those facilities are short term and generally
self-liquidating on receipt of payments against commodity delivery.
Fitch assesses the credit risk of these facilities as low, as they
are marked to market and hedged. The refinancing risk for the
short-term facilities is low as Fitch assumes them to be
continuously rolled over each year.

ISSUER PROFILE

Ittihad is based in UAE, with investments in consumer goods (paper
and chemicals), infrastructure and building materials (copper rods,
steel bars and cement), healthcare and business services.

   Entity/Debt               Rating          Recovery   Prior
   -----------               ------          --------   -----
Ittihad International
Investment LLC         LT IDR B+  New Rating            B+(EXP)

   senior unsecured    LT     B+  New Rating   RR4      B+(EXP)

Ittihad
International Ltd

   senior unsecured    LT     B+  New Rating   RR4      B+(EXP)



===================
C O S T A   R I C A
===================

COSTA RICA: IMF OKs 725M Loan Under RSF for Project Prep Facility
-----------------------------------------------------------------
The Government of Costa Rica announced the creation of a
Public-Private Partnership (PPP) Project Preparation Facility (PPF)
to leverage public and private sector resources to develop
sustainable and efficient infrastructure projects.

This initiative will take place in the context of the Resilience
and Sustainability Facility (RSF) arrangement approved by the
International Monetary Fund (IMF)'s Executive Board in November
2022, in the amount of US$ 725 million at the time of approval of
the arrangement. The RSF arrangement supports reforms to integrate
climate risks into fiscal planning, strengthen public investment
and infrastructure resilience to climate change, support its
decarbonization efforts, and reinforce the ability of its financial
sector to assess and manage climate-related risks. RSF reforms
include developing and publishing guidelines to include climate
change criteria in project appraisal and selection; adopting
regulation to facilitate private-sector power generation from
renewables; and introducing feebates to incentivize the purchase of
low-pollution vehicles. The reform package will support creating an
enabling environment to help catalyze critical climate financing
from other official and private partners.

        Establishing a Project Preparation Facility

The Inter-American Development Bank (IDB) will coordinate the
establishment of the PPF jointly with the Government of Costa Rica
that would become a multi-donor facility with the participation of
other stakeholders. The PPF will follow international best
practices for sustainable project preparation and will leverage
IDB’s expertise on the PPP PPF set-up in the region (Brazil,
Colombia, Jamaica). The PPP PPF will also build on IDB’s current
technical assistance to the country, where it works upstream
closely with the government (Ministry of Finance and Ministry of
Public Works’ Consejo Nacional de Concesiones) to develop and
update the institutional coordination guidelines, the
implementation manuals, and PPP best practices to ensure
sustainable development of PPPs—environmental and social
sustainability of infrastructure projects.

The PPP PPF will provide both financial, on a contingent recovery
basis, and technical support that will help to create capacity and
in-house technical expertise in Costa Rica to achieve the
Sustainable Development Goals (SDGs). The facility will have four
areas of intervention: upstream support (regulatory and
institutional PPP reforms required, as well as capacity building),
sustainable project identification and prioritization, sustainable
project structuring (including potential de-risking support to
strengthen project bankability), and private sector support.

The PPP PPF has the potential to catalyze up to USD 1.2 billion in
private sector resources for projects in sustainable public
infrastructure sectors such as sustainable transport and energy,
water and sanitation, and social infrastructure by 2030. The
facility also aims to optimize strategies for risk allocation and
mitigation, and to mainstream sustainability criteria and fiscal
responsibility requirements.

              Establishing a Financing Facility

The European Investment Bank (EIB) announced the creation of a
regional financing facility that will support
sustainability-related projects in the areas of energy, transport,
water and sanitation, and environmental conservation, among others.
Through this facility, the EIB expects to crowd-in additional
resources to support high-impact climate and environmental
initiatives and enhance Costa Rica’s ability to mitigate and
adapt to the effects of climate change. In coordination with the
European Union (EU) Delegation in Costa Rica, the EIB expects to
work closely with national institutions, EU national development
entities, and multilateral partners on the implementation of the
facility.

The World Bank (WB) has been actively engaged in supporting climate
finance in the country, including through supporting disaster risk
management and climate adaptation activities. Recently, the WB
agreed to provide technical assistance to El Instituto
Costarricense de Electricidad, the state energy company, on green
bond issuance, among other areas. The WB has also agreed to provide
financing to Costa Rica for up to US$ 60 million for reducing
emissions from deforestation and forest degradation (REDD+). The
first payment was made in August 2022. Building on the experience
accumulated in related incentive mechanisms in the forest area, the
WB is supporting the development of an innovative Payment for
Marine Ecosystems Services program. Discussions with the
authorities on further collaboration on fostering green finance in
Costa Rica are ongoing given its importance to national
development.

The World Bank Group’s International Finance Corporation (IFC) is
also continuing to bolster climate resilience in Costa Rica through
multifaceted initiatives to support the private sector. These
include developing a green taxonomy at a Central America regional
level to help channel financing into a range of climate-friendly
projects, coordinating the structuring process to sustainably
modernize and expand Puerto Caldera—the main freight port in the
Pacific side of the country—, and designing and implementing
financing solutions to help transform the agribusiness sector.

Developing a Sovereign Thematic Bond Strategy to Support Climate
Goals

Costa Rica is committed to environmental protection and has
implemented a comprehensive strategy to achieve its goals. This
strategy includes potentially issuing sovereign bonds that are
recognized for the country’s overall climate and social
credentials. Taking advantage of its ambitious climate actions,
Costa Rica is also developing, together with the UNDP, a sovereign
thematic bond strategy linked to its SDGs and Nationally Determined
Contribution (NDC), which will allow it to catalyze more financing
from private investors, through the issuance of use of proceeds
bonds or sustainability-linked bonds. As stated at the SDG Summit,
Costa Rica is also committed to look for a more integrated approach
to the SDGs. Additional financial strategies, jointly designed with
other development partners, are expected to be developed to further
support Costa Rica’s comprehensive climate goals.

These collaborative efforts will support Costa Rica’s home-grown
reform program to institutionalize the significant progress to help
promote inclusive and sustainable growth, and to strengthen Costa
Rica’s role as a global leader in the climate agenda achieved in
the context of the IMF supported Extended Fund Facility (EFF) and
RSF arrangements.

                             Quotes

President Rodrigo Chaves of Costa Rica commented "It is crucial for
the country to diversify its investment portfolio and move beyond
relying solely on debt financing. In this regard, fostering
Public-Private Partnerships (PPPs) as sustainable catalysts for
investment projects holds immense significance. The initial
collaboration with the IMF, IDB, and other stakeholders through the
PPF will play a pivotal role in solidifying this approach."

Kristalina Georgieva, Managing Director of the International
Monetary Fund, said "We continue to support Costa Rica through the
IMF’s Resilience and Sustainability Trust as the country advances
on its ambitious climate agenda. I very much welcome these
coordinated initiatives, working with the Inter-American
Development Bank, the European Investment Bank, and other
development agencies to support Costa Rica’s efforts to mobilize
private sector climate financing. Such initiatives help build
resilient and sustainable infrastructure and bolster Costa Rica’s
role as a global leader in the climate agenda."

Ilan Goldfajn, President, Inter-American Development Bank Group,
stated "We are proud to be part of this initiative in Costa Rica,
who is fast becoming a world leader in sustainability. The facility
represents a milestone and is the result of a close partnership
with the IMF and the collaborative work with the Government of
Costa Rica to develop sustainable infrastructure projects".

Werner Hoyer, President of the European Investment Bank, said "At
the EIB, we are very happy to work with the Government of Costa
Rica and international partners like IDB and IMF on innovative
schemes to accelerate green investment and crowd-in private
partners. The Project Preparation Facility has the potential to
bring tangible progress: we are looking forward to delivering
high-impact climate investments through its implementation."

Achim Steiner, Administrator of the United Nations Development
Programme, said "We are proud to be supporting Costa Rica in the
development of a sovereign thematic bond strategy that could bring
significant private capital to deliver on their development, gender
equality, and climate goals. Sustainable sovereign debt can channel
resources towards the achievement of SDGs and NDCs, while
diversifying the investor base and potentially lowering debt costs
and strengthening fiscal positions."

Alfonso García Mora, IFC's Vice President for Europe, Latin
America and the Caribbean, said "Costa Rica is redoubling efforts
to bolster its climate resilience and become a low-carbon leader.
IFC will continue to work closely with the country and collaborate
with other multilateral institutions to accelerate the flow of
private capital in support of Costa Rica's ambitions."




=====================
E L   S A L V A D O R
=====================

FONDO DE CONSERVACION: Fitch Rates Sr. Sec. Notes 'CCC+(EXP)sf'
---------------------------------------------------------------
Fitch Ratings has assigned Fondo de Conservacion Vial de El
Salvador (Fovial) Senior Secured Notes expected ratings.

The assignment of final ratings is contingent on the receipt of
final documents conforming to information already reviewed.

   Entity/Debt           Rating           
   -----------           ------           
Fovial Notes 2023

   Senior Secured
   Notes              LT CCC+(EXP)sf  Expected Rating

TRANSACTION SUMMARY

Fitch Ratings expects to rate the USD500 million Senior Secured
Notes to be issued Fovial 'CCC+sf(exp)'. The notes will be backed
primarily by a road maintenance tax ("Contribución de
Conservación Vial" [CCV tax]), that originates from the sale or
any form of transfer of ownership of diesel, gasoline, or other
fuel blends, performed by importers and refiners who will sign
notice and acknowledgment agreements (N&As), irrevocably obligating
them to pay the tax into an offshore collection account controlled
by the indenture trustee. However, if the CCV tax securing the
notes is insufficient to cover debt service, Fovial will have the
ultimate obligation to ensure debt service is paid in a timely
manner. The proceeds of the notes will be used by Fovial to repay
all of its outstanding debt and for general corporate purposes.

Fitch's rating addresses timely payment of interest and principal
on a quarterly basis.

KEY RATING DRIVERS

The Notes Rating Reflects the Obligor Credit Quality: Fovial is a
public entity with an autonomous legal existence and its own
assets. The company is responsible for efficiently managing the
funds assigned to it by the Republic of El Salvador (RES) to
provide adequate maintenance to the country's national road
network. Although the notes will benefit from N&As signed by
importers of oil in the RES, Fovial will have the ultimate
obligation to ensure debt service is paid in a timely manner hence
the rating linkage of the notes to that of Fovial's credit
quality.

Indirect Sovereign Support: As a public entity, Fovial is
controlled by the government of the RES, who, by decree, defines
the entity's purpose and assigned sources of revenue, one of which
comes directly from the RES' budget. Fitch considers Fovial's
credit highly influenced by that of RES' (CCC+), and that the
sovereign has strong incentives to support this entity due to the
role it plays within RES' economy. Additionally, the transaction
will benefit from a Support Agreement entered into by RES, which
provides recourse to the sovereign if certain actions taken
negatively affect the underlying collateral.

Asset has Proven Stable Over Time: The notes will benefit from the
collections of the CCV tax, originating from the sale or any form
of transfer of ownership of diesel, gasoline or other fuel blends
to importers and refiners, who will sign N&As irrevocably
obligating them to pay the tax into an offshore collection account,
controlled by the indenture trustee. The funds in this account will
be used to pay debt service.

The CCV tax has proven stable over time and has shown an increasing
trend following the -13.1% yoy decrease observed in 2020, as a
result of the macroeconomic impacts of the coronavirus pandemic.
CCV tax collections experienced yoy growth of 26.5% in 2021
followed by a 2.2% increase in 2022, further in line with historic
growth levels. The positive trend of the CCV tax is primarily
driven by the fact that the RES is a net importer of fuel products
given it does not have production and refining capacity.

Additional Liquidity: The transaction will benefit from a reserve
account with a minimum balance requirement that is to be the
equivalent of the amount due on the following two scheduled
interest payments. In the event that funds in the collection
account are not sufficient to meet scheduled debt service
obligations, funds in the reserve account can be used to service
debt. Nevertheless, the notes' rating is linked to the credit
quality of FOVIAL given the company's ultimate obligation should
CCV tax proceeds together with funds in the reserve account not be
sufficient to service debt.

RATING SENSITIVITIES

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

Due to the characteristics of the collateral, the rating of the
notes is linked to the credit quality of Fovial; therefore, a
negative change in Fitch's view of the credit quality of Fovial,
would trigger a negative rating action on the notes.

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

Due to the characteristics of the collateral, the rating of the
notes is linked to the credit quality of Fovial; therefore, a
positive change in Fitch's view of the credit quality of Fovial
would trigger a positive rating action on the notes.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

The ratings on the notes are linked to Fitch's view of Fovial's
credit quality.

FONDO DE CONSERVACION: Moody's Rates New $500MM Sr. Sec. Notes Caa3
-------------------------------------------------------------------
Moody's Investors Service assigned a Caa3 rating to the proposed
$500 million senior secured notes to be issued by the Fondo de
Conservacion Vial de El Salvador (FOVIAL) with a final maturity in
2030. The outlook on the rating is stable. This is the first time
that Moody's rates FOVIAL.

Proceeds from the transactions will be primarily used to repay
existing local debt, fund a capital expenditure account and a debt
service reserve account, and cover transaction fees.

RATINGS RATIONALE

The Caa3 rating reflects the important financial and operational
linkages between FOVIAL and the Government of El Salvador (Caa3,
stable). FOVIAL acts on behalf of the Government carrying out the
essential public mandate of providing maintenance services to the
national road network. Assigned tax revenue and contributions from
the government provide the financial sustenance for FOVIAL's
operations. Although the obligations under the notes are not
directly guaranteed by the government, Moody's considers that
FOVIAL's credit quality to be closely influenced by the government.
That is because of its close integration with the public sector and
its exposure to the local institutional and operating environment.

Under Moody's joint default analysis approach for
Government-Related Issuers, Moody's assessment of government
support for the company is high, and is manifested through various
considerations. Specifically taking into account FOVIAL's special
legal status as a 100% government owned entity that carries a
public policy mandate of roads maintenance and not subject to
bankruptcy or insolvency procedures. The funding sources and
allowed debt incurrences are established and approved by the
central government through the Salvadoran legislative decrees,
depicting the strategic and operational influence by the
Government. In 2022, FOVIAL reported $197 million in net revenues.

FOVIAL depends on three sources of funding: (i) an assigned $0.20
per gallon tax on the sale or transfer of imported gasoline, diesel
fuel or any other mix, (ii) a government contribution of $0.10 per
gallon of gasoline, diesel fuel or any mix sold in El Salvador, and
(iii) vehicular registration fees and fines in the country.

Pivotal components of the proposed debt issuance encompass the
inherent structural characteristics present in the financing. The
structural aspects of the notes incorporate a collateral package
that assigns to creditors a first priority on the designated tax
payments of $0.20 per gallon, which constitutes approximately 56%
of FOVIAL's total revenue, that are accumulated in an offshore
account for the repayment of debt service. These sums are directly
conveyed by importers to the account, thereby partially alleviating
the risks associated with transferability.

The key drivers of FOVIAL's revenue profile are related to the
amount of fuel imports in the country. Because most of the fuel is
consumed through retail gas stations and distribution companies in
El Salvador, vehicular growth in the country is a relevant driver
for fuel and diesel consumption that affects FOVIAL's and the
Government's overall fuel tax revenue. Under more conservative
Moody's financial assumptions, Moody's forecast a vehicular growth
rate to be of 7.5% in the upcoming years and 3% in a more stressed
case. In both scenarios, Moody's expect that assigned tax revenues
collected in the offshore account to be insufficient to fully cover
debt service payments. Therefore the transaction depends on
additional cash transfers from FOVIAL stemming from government
contributions and fine payments. As a result, Moody's expects the
average debt service coverage ratios (DSCR) to be of 2.3x and 1.4x
through the entire debt tenor, respectively for the base and
stressed scenarios.

Additionally, the transaction incorporates change of control
provisions, limitations on additional indebtedness and liquidity
source requirements, such as a six month debt service reserve
account ("DSRA") that will be funded with the initial proceeds only
for interest payments. An additional component of the collateral
package is the inclusion of certain financial assets held by FOVIAL
related to senior bonds issued by the Government of El Salvador.
These bonds amount for around $160 million maturing in the 2028-30
period which interest and principal payments will be collected in
the offshore account. Future bond auctions will be held in order to
convert certain pending government payables owed to FOVIAL. Moody's
note that this collateral is issued by a Caa3 rated sovereign and
that FOVIAL's issuance include a mandatory redemption provision
following a redemption of the sovereign bonds held as collateral.

The entire revenue profile is fully exposed to volume risk and
factors factors the uncertainty on supply and demand for fuel in El
Salvador, vehicular growth rates and local economic performance.
From an environmental perspective, the revenue landscape is
susceptible to potential risks associated with the transition
towards low-carbon initiatives, as industries and consumers
progressively adopt more sustainable energy methods, including the
increased utilization of electric vehicles. The increase of social
awareness, escalating political urgency surrounding climate change,
and advancements in technology could expedite efforts towards
energy transition. However, the pace of material changes during the
life of the transaction is somewhat constrained due to the limited
alternative clean fuel sources.

Moody's considers that FOVIAL will remain subject to government
influence and support as they deploy the projected $1.1 billion in
road maintenance investments towards 2030, while giving priority to
debt service payments. Despite having most of the revenues
collected in an offshore account with clear cash waterfall rules,
the company is positioned at the same level of the sovereign rating
because of the tax revenue linkages between the government and
FOVIAL, a lack of cash flow or asset diversification originating
outside the country and the common exposure to economic cycles that
could have a material adverse effect in oil prices and demand.

Governance factors were a key driver in the assignment of the Caa3
rating, recognizing the linkages and influence that can be exerted
by the Government of El Salvador on FOVIAL's operations and
business model. Moody's acknowledge that the transaction possesses
certain inherent structural attributes that mitigate this exposure
to a degree, however, they do not completely eliminate it.

The assigned rating is based on preliminary documentation received
by Moody's. Should issuance conditions and/or final documentation
of the notes deviate from those reviewed by the rating agency,
Moody's will assess the impact that these differences may have on
the ratings and act accordingly.

OUTLOOK

FOVIAL's stable rating outlook is in line with the stable outlook
on El Salvador's sovereign rating.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING

FACTORS THAT COULD LEAD TO AN UPGRADE

An upgrade of rating would require an upgrade of El Salvador's
sovereign rating while the off-shore revenues continue to be
collected by the independent trustee and sufficient amounts to
comply with the Collection Ratio of 1.40x.

FACTORS THAT COULD LEAD TO A DOWNGRADE

A downgrade of El Salvador's sovereign rating could lead to a
rating downgrade for FOVIAL. Additionally, a decrease in fuel
imports that would cause a drop in fuel tax revenue to cause the
Collection Ratio test below 1.40x would put negative pressure on
the rating.

PROFILE

Fondo de Conservacion Vial de El Salvador (FOVIAL) is an
independent government agency responsible for maintenance,
enhancement, and development of Government of El Salvador's (Caa3
stable) national road network. It covers roughly 7,200 km of roads
and the primary services provided by FOVIAL are routine and
periodic road maintenance, bridge and roadway maintenance,
signaling and road safety.

The principal methodology used in this rating was
Government-Related Issuers Methodology published in February 2020.



=============
J A M A I C A
=============

JAMAICA: BOJ Progressing With Plan for Deposit Portability
----------------------------------------------------------
RJR News reports that the Bank of Jamaica (BOJ) says it is
progressing well with plans to make it easier for bank customers to
transfer their accounts from one institution to another.

BOJ Governor Richard Byles says the new system will possibly
include an electronic Know Your Customer (eKYC) database, according
to RJR News.

"If every customer's KYC information is stored in one place
digitally and a customer wants to move from bank A to bank B, by
simply indicating that to the repository that they want to move,
their data immediately goes to the other institution and the bank
account can be opened within minutes.  It's that kind of ease of
convenience that consumers want in order to be able to make better
choices about who they bank with.  So that form of digitization we
are pursuing ourselves," said Mr. Byles, the report notes.

He disclosed that the central bank is collaborating with the World
Bank to develop a central depository of eKYC information, the
report relays.

Mr. Byles also said digital first banking could improve sector
efficiency, not only for the current stock of banks but also new,
solely digital banks, the report notes.

"If there are new banks that want to start up and be purely digital
we'd be very welcoming of them. I think that to get more
competition going we need to get more digitisation going," the BOJ
governor reasoned, the report adds.

                      About Jamaica

Jamaica is an island country situated in the Caribbean Sea.
Jamaica is an upper-middle income country with an economy heavily
dependent on tourism.  Other major sectors of the Jamaican economy
include agriculture, mining, manufacturing, petroleum refining,
financial and insurance services.

In October 2023, Moody's upgraded the Government of Jamaica's
long-term issuer and senior unsecured ratings to B1 from B2, and
senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has
been changed to positive from stable.  The upgrade of Jamaica's
rating to B1 reflects the government's sustained commitment to
fiscal consolidation and debt reduction.  The positive outlook
reflects Moody's assessment that a continuation of the favorable
fiscal trajectory will further increase Jamaica's credit
resilience.

S&P Global Ratings raised on September 13, 2023, its long-term
foreign and local currency sovereign credit ratings on Jamaica to
'BB-' from 'B+', and affirmed its short-term foreign and local
currency sovereign credit ratings at 'B'.  The stable outlook
reflects S&P's expectation that the government will remain
committed to prudent fiscal policies and reducing debt, as well as
supportive economic policies including a flexible exchange rate
regime and effective monetary policy.  

In March 2022, Fitch Ratings affirmed Jamaica's Long-Term Foreign
Currency Issuer Default Rating (IDR) at 'B+'. The Rating Outlook is
Stable.



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

INSIGHT MANAGEMENT: Plan Filing Deadline Extended to Dec. 19
------------------------------------------------------------
Judge Maria de los Angeles Gonzalez has entered an order granting
the motion filed by Insight Management Group Incorporated, a/k/a
Insight Radiology Puerto Rico, requesting extension of time of 28
days to File Disclosure Statement and Plan of Reorganization.  The
new deadline is Dec. 19, 2023.

                About Insight Management Group

Insight Management Group Incorporated provides specialized services
in radiology in Canovanas, P.R.

Insight Management Group filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No.
23-00506) on Feb. 22, 2023, with $500,000 to $1 million in assets
and $10 million to $50 million in liabilities.  Jose A. Romero
Cruz, president of Insight Management Group, signed the petition.

Judge Maria De Los Angeles Gonzalez presides over the case.

Javier Vilarino, Esq., at Vilarino & Associates, LLC, and Dage
Consulting CPA's, PSC, serve as the Debtor's legal counsel and
financial advisor, respectively.




===============
S U R I N A M E
===============

SURINAME: S&P Ups LT Sov. Credit Rating to 'CCC+', Outlook Stable
-----------------------------------------------------------------
On Dec. 6, 2023, S&P Global Rating raised its long- and short-term
foreign and local currency sovereign credit ratings on Suriname to
'CCC+/C' from 'SD' (selective default). At the same time, S&P
withdrew its ratings on Suriname's senior unsecured debt. S&P also
raised its transfer and convertibility assessment to 'CCC+'. The
outlook on the long-term ratings is stable.

Outlook

The stable outlook balances the government's commitment to fiscal
reform and macroeconomic stabilization with the finalization of the
debt restructuring and risks presented by developing institutions
and weaknesses in governance, including debt management.

Downside scenario

S&P could lower its ratings over the next six-12 months if expected
financing from multilateral lending institutions failed to
materialize, or if other policy or administrative developments
raised the likelihood of another default.

Upside scenario

S&P could raise its ratings over the next year if the government
continues to progress on concluding restructuring agreements with
its creditors, continues to make progress on its reform targets and
meeting the conditions of multilateral lending institutions with
which it has agreements, and develops a track record of
strengthened debt management, and proactive economic policies that
reduce the likelihood of another commercial debt payment default.

Rationale

S&P said, "The 'CCC+' long-term sovereign ratings on Suriname
reflect our view that the country is dependent on favorable
business, financial, and economic conditions to meet its financial
commitments. The ratings also reflect still-high inflation, a
difficult socio-political environment, and financial sector
vulnerabilities. Suriname's recent restructuring agreements follow
missed payments on commercial debt outstanding and subsequent
restructuring announcements in 2020 and 2021.

S&P said, "We raised the long-term rating to 'CCC+' following
Suriname's foreign currency debt exchange, which addressed the
government's commercial U.S. dollar bond debt outstanding. The
government received sufficient consent to exchange and/or modify
all outstanding aggregate principal amounts of each series of its
2023 and 2026 bonds. The two bonds outstanding had been capitalized
at 9.25% and 12.875% and totaled US$912 million. Given this
outcome, we believe this exchange will be the final resolution of
the 2023 and 2026 bonds. At the same time, we believe that the
near-term litigation risk to future debt service posed by creditors
is limited."

In addition to some debt cancellation, the new bonds extend the
previous maturities to 2033, and have an accrued 7.95% interest
rate, with a payable 4.95% interest rate prior to 2026, and the
remaining 3% interest capitalized. Suriname will not pay principal
on the bonds until January 2027. The US$314.7 million aggregate
notional amount of oil-linked securities will pay out only if
Suriname receives oil royalties from offshore oil Block 58. After
US$100 million of oil royalties are paid to the government,
creditors would receive 30% of the yearly oil royalties from Block
58 until bondholders have been compensated for the haircut to which
they have consented.

This latest restructuring of the 2023 and 2026 bonds follows an
earlier restructuring of the 2023 bonds in the summer of 2020.

S&P believes the current negotiations will lead to the resolution
of the sovereign's defaulted obligations and are adopting a
forward-looking opinion about Suriname's creditworthiness on its
foreign and local currency debt. In addition to the restructuring
agreement that has been reached with foreign-currency commercial
bondholders, Suriname has also reached agreements with all official
creditors, excluding China; commercial creditors that provided
export credit agency-backed loans; and the Central Bank of
Suriname. At the same time, Suriname is finalizing agreements with
other domestic and foreign commercial creditors, representing small
shares of debt outstanding.

S&P said, "We expect the government will continue to make reforms
under its economic recovery program and the International Monetary
Fund (IMF) program. The IMF approved a 36-month extended fund
facility (EFF) program for Suriname on Dec. 22, 2021, and has
recently reached a staff-level agreement on the fourth review under
the program. The government has also requested an extension of the
program until March 2025, and an augmentation of the program, which
would raise IMF support to Suriname to about US$650 million. The
current government of President Santokhi took office in mid-2020
amid difficult economic circumstances. Under the current program,
Suriname is working on, among other reforms, broadening the base of
the value-added-tax (VAT); registering all civil servants; halting
salary payments to unregistered workers; reducing fuel,
electricity, and gas subsidies; strengthening fiscal and monetary
institutions, including the central bank; and reforming governance
practices.

"We believe the government is committed to concluding its debt
restructuring and meeting its fiscal targets, despite the
difficulty in implementing reforms. Progress under the EFF program
went off-track between mid-2022 and 2023 due to delays in
implementing a VAT, the introduction of fuel subsidies and higher
public sector wages, missed fiscal targets, and high depreciation
and inflation. Since then, the government has implemented the VAT
and is working to broaden its base, made progress on removing fuel
subsidies, and enacted a new Central Bank Act.

"In our view, Suriname's debt payment culture is weak, and it will
take time to build a stronger track record once the government
concludes its restructuring agreements. Suriname has experienced
poor public sector management and financial instability in the
past. The government has relied heavily on natural resource
revenues from gold and oil and failed to develop more stable and
sustainable revenues, leaving the country vulnerable to downturns
in commodity prices. In addition, the government is working on
addressing capacity weaknesses in its debt management office, as
well as outdated procedures and failures in the coordination
between various government entities that led to missed payments in
2023."

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the methodology
applicable. At the onset of the committee, the chair confirmed that
the information provided to the Rating Committee by the primary
analyst had been distributed in a timely manner and was sufficient
for Committee members to make an informed decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

The committee's assessment of the key rating factors is reflected
in the Ratings Score Snapshot above.

The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision. The
views and the decision of the rating committee are summarized in
the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.

  Ratings List

  NOT RATED ACTION  
                                 TO             FROM
  SURINAME

  Senior Unsecured               NR              D

  UPGRADED  
                                 TO             FROM

  SURINAME

  Transfer & Convertibility Assessment

  Local Currency                 CCC+           CCC

  UPGRADED; CREDITWATCH/OUTLOOK ACTION  
                                 TO             FROM

  SURINAME

  Sovereign Credit Rating    CCC+/Stable/C      SD/--/SD



                           *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Latin America is a daily newsletter
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Chapman, Editors.

Copyright 2023.  All rights reserved.  ISSN 1529-2746.

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