/raid1/www/Hosts/bankrupt/TCRLA_Public/240108.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, January 8, 2024, Vol. 25, No. 6
Headlines
A R G E N T I N A
ARGENTINA: Court Suspends Milei's Labor Reforms
B R A Z I L
BRAZIL: Harvest in Focus Amid Global Corn Plunge
BRAZIL: Sets Limits to Counter Interest Rate Usury
BRAZIL: Shifting Winds in 2024 Farming Exports
M E X I C O
BBVA MEXICO: Fitch Puts 'BB' Final Rating to Sub. Preferred Notes
P E R U
BANCO INTERNACIONAL: S&P Rates New Sub Notes 'BB+'
V I R G I N I S L A N D S
HUARONG FINANCE 2019: Fitch Cuts LT Rating on Sub. Notes to 'BB-'
X X X X X X X X
LATAM: Rising "Working Poor" Concerns in Latin America
[*] BOND PRICING COLUMN: For the Week Jan. 1 to Jan. 5, 2024
- - - - -
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A R G E N T I N A
=================
ARGENTINA: Court Suspends Milei's Labor Reforms
-----------------------------------------------
Buenos Aires Times reports that three judges in Argentina on
Wednesday, January 3, suspended labour law changes that form part
of President Javier Milei's mega-decree of sweeping economic
reforms and deregulation.
The CGT (General Confederation of Labour) umbrella union grouping
had challenged the changes, which technically took effect on
Friday, Dec. 29, on grounds that they erode basic worker
protections such as the right to strike and parental leave,
according to Buenos Aires Times.
The three judges of Argentina's labour appeals chamber (Camara
Nacional de Apelaciones del Trabajo) froze elements of Milei's
decree which, among other things, increased the legal job probation
period from three to eight months, reduced compensation in case of
dismissal, and cut pregnancy leave, the report notes.
Judge Alejandro Sudera also questioned the "necessity" and
"urgency" of the decree Milei signed on December 20 - just days
after taking office - and thereby suspended the measures until they
can be properly considered by Congress, the report relays.
The injunction marks at least a temporary victory for the CGT,
Argentina's most powerful labor grouping, the report discloses.
Some of the measures appeared to be "repressive or punitive in
nature" and it was not clear how their application would aid
Milei's objective of "creating real jobs," Sudera wrote in a ruling
distributed to the media, the report relays.
Solicitor General Rodolfo Barra said that the government will
appeal the ruling, the report discloses.
Milei's press office also confirmed that his administration would
appeal and said the ruling contradicts other courts at the
municipal and provincial level, the report relays.
For now, the court's injunction still avoids a worst case scenario
for Milei where the entire decree is thwarted by either Congress or
the courts, the report notes.
Lawmakers still have time to vote for or against the whole decree
in Congress, the report relays.
Protests Ahead
Thousands took to the streets to protest the reforms proposed by
Milei, who won the November run-off election with promises of
slashing state spending as Argentina deals with an economic crisis,
including triple-digit inflation, the report relays.
The CGT has called a general strike for January 24 - the first of
the Milei administration and a major challenge to Security Minister
Patricia Bullrich's hardline approach to policing protest, the
report says.
Milei's measures have drawn heated debate among jurists about their
constitutionality and is the subject of several court challenges,
the report discloses.
When he announced his mega-degree, Milei said the goal was to
"start along the path to rebuilding the country . . . and start to
undo the huge number of regulations that have held back and
prevented economic growth," the report relays.
The decree changed or scrapped more than 350 economic regulations
in a country accustomed to heavy government intervention in the
market, the report notes.
It eliminates a law regulating rent, envisages the privatisation of
state enterprises and terminates some 7,000 civil service
contracts, the report discloses.
Argentina's economy is on its knees after decades of debt and
financial mismanagement, with inflation surpassing 160 percent
year-on-year and more than 40 percent of the population living in
poverty, the report relays.
Milei has pledged to curb inflation, but warned that economic
"shock" treatment is the only solution and that the situation will
get worse before it improves, the report notes.
The 53-year-old won a resounding election victory on a wave of fury
over the country's decades of economic crises marked by debt,
rampant money printing, inflation and fiscal deficit, the report
says.
His rival candidate, ruling coalition hopeful and former economy
minister Sergio Massa, failed to convince voters that he could lead
Argentina out of economic quagmire, the report relays.
Milei has targeted spending cuts equivalent to five percent of
gross domestic product, the report notes. Shortly after taking
office, his administration devalued the peso by more than 50
percent, and announced huge cuts in generous state subsidies of
fuel and transport, the report relays.
Milei has also announced a halt to all new public construction
projects and a year-long suspension of state advertising, among
other measures, the report adds.
About Argentina
Argentina is a country located mostly in the southern half of South
America. Its capital is Buenos Aires. Javier Milei is the current
president of Argentina after winning the November 19, 2023 general
election. He succeeded Alberto Angel Fernandez 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.
===========
B R A Z I L
===========
BRAZIL: Harvest in Focus Amid Global Corn Plunge
------------------------------------------------
Lachlan Williams at Rio Times Online reports that corn futures saw
a dramatic 30% decline in 2023, marking the steepest drop in a
decade as reported by the Chicago Board of Trade CBOT.
This significant fall, the most substantial since 2013,
overshadowed other grains like wheat and soybeans, according to Rio
Times Online.
They also experienced notable decreases of 21% and 15%,
respectively, influenced by inconsistent harvests and trade
uncertainties, the report notes.
The global market is now keenly observing Brazil's ongoing harvest,
with Conab noting early progress in key regions, 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.
S&P Global Ratings raised on Dec. 19, 2023, its long-term global
scale ratings on Brazil to 'BB' from 'BB-'. The outlook on the
long-term ratings is stable. S&P affirmed Brazil's global scale
short-term ratings at 'B' and its national scale long-term rating
at 'brAAA'. S&P also raised the transfer and convertibility
assessment on the country to 'BBB-' from 'BB+'. S&P said, "The
stable outlook reflects our expectation that Brazil will maintain a
strong external position, thanks to strong commodity output and
limited external financing needs. We also believe Brazil's
institutional framework can sustain stable and pragmatic
policymaking based on extensive checks and balances across the
executive, legislative, and judicial branches of government. We
expect a very gradual fiscal correction but anticipate fiscal
deficits will remain large."
Fitch Ratings affirmed on Dec. 15, 2023, Brazil's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'BB' with a Stable
Outlook. Fitch said Brazil's ratings are supported by its large and
diverse economy, high per-capita income, and deep domestic markets
and a large cash cushion that support the sovereign's financing
flexibility and its high local-currency debt share. Strong external
finances support resilience to shocks, underpinned by a flexible
exchange rate, robust international reserves and a sovereign net
external creditor position. The ratings are constrained by weak
economic growth potential, relatively low governance scores, high
and rising government debt/GDP, and budgetary rigidities. A new
fiscal framework introduced this year aims to anchor a gradual
consolidation process and address these fiscal weaknesses, but its
effectiveness is increasingly unclear.
Moody's credit rating for Brazil was last set at Ba2 in 2018 with
stable outlook. Moody's affirmed the Ba2 issuer ratings and
senior unsecured bond ratings in April 2022.
DBRS Inc., on August 15, 2023, upgraded Brazil's Long-Term
Foreign and Local Currency - Issuer Ratings to BB from BB (low).
At the same time, DBRS Morningstar confirmed Brazil's
Short-term Foreign and Local Currency - Issuer Ratings at R-4.
The trend on all ratings is Stable (March 2018).
BRAZIL: Sets Limits to Counter Interest Rate Usury
--------------------------------------------------
Rio Times Online reports that in the latest development, Brazil has
introduced a limit on credit card interest rates due to a high
level of default.
The new regulation imposed by President Luiz Inacio Lula da Silva's
administration limits the maximum interest rate to 100% of the
original debt, according to Rio Times Online.
For example, if a person owes $200, their total repayment,
including interest, cannot exceed $400, the report relays.
Brazil's average annual interest rate, as per the Central Bank of
Brazil, stands at 431%, the report says.
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.
S&P Global Ratings raised on Dec. 19, 2023, its long-term global
scale ratings on Brazil to 'BB' from 'BB-'. The outlook on the
long-term ratings is stable. S&P affirmed Brazil's global scale
short-term ratings at 'B' and its national scale long-term rating
at 'brAAA'. S&P also raised the transfer and convertibility
assessment on the country to 'BBB-' from 'BB+'. S&P said, "The
stable outlook reflects our expectation that Brazil will maintain a
strong external position, thanks to strong commodity output and
limited external financing needs. We also believe Brazil's
institutional framework can sustain stable and pragmatic
policymaking based on extensive checks and balances across the
executive, legislative, and judicial branches of government. We
expect a very gradual fiscal correction but anticipate fiscal
deficits will remain large."
Fitch Ratings affirmed on Dec. 15, 2023, Brazil's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'BB' with a Stable
Outlook. Fitch said Brazil's ratings are supported by its large and
diverse economy, high per-capita income, and deep domestic markets
and a large cash cushion that support the sovereign's financing
flexibility and its high local-currency debt share. Strong external
finances support resilience to shocks, underpinned by a flexible
exchange rate, robust international reserves and a sovereign net
external creditor position. The ratings are constrained by weak
economic growth potential, relatively low governance scores, high
and rising government debt/GDP, and budgetary rigidities. A new
fiscal framework introduced this year aims to anchor a gradual
consolidation process and address these fiscal weaknesses, but its
effectiveness is increasingly unclear.
Moody's credit rating for Brazil was last set at Ba2 in 2018 with
stable outlook. Moody's affirmed the Ba2 issuer ratings and
senior unsecured bond ratings in April 2022.
DBRS Inc., on August 15, 2023, upgraded Brazil's Long-Term
Foreign and Local Currency - Issuer Ratings to BB from BB (low).
At the same time, DBRS Morningstar confirmed Brazil's
Short-term Foreign and Local Currency - Issuer Ratings at R-4.
The trend on all ratings is Stable (March 2018).
BRAZIL: Shifting Winds in 2024 Farming Exports
----------------------------------------------
Richard Mann at Rio Times Online reports that in 2024, experts
expect a drop in Brazil's grain exports. Despite this, revenues
might not fall.
In 2023 and prior years, Brazil's grain exports consistently grew,
positioning the country as a key global supplier in the
agricultural market, according to Rio Times Online.
Analysts believe price adjustments in most commodities and rises in
some agriculturTal sectors will balance out the decrease in volume,
the report notes.
They argue these factors will support Brazil's export values next
year, the report says.
Agriculture will likely keep its trade balance share, the report
relays. By the end of 2023, it should represent 49% of Brazil's
exports, 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.
S&P Global Ratings raised on Dec. 19, 2023, its long-term global
scale ratings on Brazil to 'BB' from 'BB-'. The outlook on the
long-term ratings is stable. S&P affirmed Brazil's global scale
short-term ratings at 'B' and its national scale long-term rating
at 'brAAA'. S&P also raised the transfer and convertibility
assessment on the country to 'BBB-' from 'BB+'. S&P said, "The
stable outlook reflects our expectation that Brazil will maintain a
strong external position, thanks to strong commodity output and
limited external financing needs. We also believe Brazil's
institutional framework can sustain stable and pragmatic
policymaking based on extensive checks and balances across the
executive, legislative, and judicial branches of government. We
expect a very gradual fiscal correction but anticipate fiscal
deficits will remain large."
Fitch Ratings affirmed on Dec. 15, 2023, Brazil's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'BB' with a Stable
Outlook. Fitch said Brazil's ratings are supported by its large and
diverse economy, high per-capita income, and deep domestic markets
and a large cash cushion that support the sovereign's financing
flexibility and its high local-currency debt share. Strong external
finances support resilience to shocks, underpinned by a flexible
exchange rate, robust international reserves and a sovereign net
external creditor position. The ratings are constrained by weak
economic growth potential, relatively low governance scores, high
and rising government debt/GDP, and budgetary rigidities. A new
fiscal framework introduced this year aims to anchor a gradual
consolidation process and address these fiscal weaknesses, but its
effectiveness is increasingly unclear.
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).
===========
M E X I C O
===========
BBVA MEXICO: Fitch Puts 'BB' Final Rating to Sub. Preferred Notes
-----------------------------------------------------------------
Fitch Ratings has assigned a final rating of 'BB' to BBVA Mexico,
S.A., Institucion de Banca Multiple, Grupo Financiero BBVA Mexico's
(BBVA Mexico) USD900 million Tier 2 subordinated preferred capital
notes.
The notes have a 15-year maturity and an 8.125% fixed rate. The
bank has the option to early redeem the notes one time in the tenth
year from the issuance day. The proceeds will be used to prudently
manage regulatory capital ratios and for general corporate
purposes. These notes are issued under BBVA Mexico's USD10 billion
medium-term note program.
KEY RATING DRIVERS
BBVA Mexico's Tier 2 subordinated preferred capital notes 'BB'
rating is three-notches below the bank's 'bbb' viability rating,
the anchor rating. There is a two-notch adjustment to reflect
loss-severity risk and an additional one notch for non-performance
risk.
Poor Recoveries in a Liquidation Scenario: According to Fitch's
criteria, the two-notch adjustment for loss severity reflects the
issue's subordinated preferred debt status and expected poor
recovery prospects in a liquidation event relative to the bank's
senior debt. The notes will rank subordinated to all senior debt,
pari passu to all subordinated preferred debt and senior to
subordinated non-preferred debt and all classes of capital stock.
Regulatory Mandatory Coupons Deferral: The one-notch adjustment for
non-performance considers that, according to the applicable local
regulation, interest deferral will be triggered at relatively high
levels of capitalization levels before the write-down or point of
non-viability (PONV) occurs. Mandatory coupon deferral will be
activated if the total regulatory capital ratio (ICAP: Indice de
Capitalizacion) declines below 8% or the Tier 1 capital ratio
declines below 6%, plus the applicable capital supplement (an
additional 1.5% for BBVA Mexico as a Domestic Systemically
Important Bank). Mandatory coupon deferral will also occur if the
Mexican regulator classifies BBVA Mexico as "Class III or IV" under
the Mexican Capitalization Requirements or Early Warning System.
Good Capital Metrics: No additional notches are considered for
non-performance as the subordinated notes imply that the write-down
or PONV would be activated at a relatively low trigger that it is
to have a Common Equity Tier 1 (CET1) ratio equal to or below 4.5%.
In addition, Fitch believes breaching a trigger event is hard to
conceive due to the bank's good capitalization levels, supported by
its capacity to generate solid and stable earnings, as well as
strong supervision of the local regulator. BBVA Mexico has to
comply with a minimum level of ICAP of 11.5% plus the proportion of
TLAC requirements, which implies a total ICAP of 15.25% as of
December 2024. As of September 2023, BBVA Mexico´s CET1 and ICAP
ratios were 15.8% and 18.5%, respectively, at comfortable levels
with respect to the minimum required.
Fitch does not consider the parent's support to mitigate
non-performance risk due to the Mexican bank's larger size relative
to Banco Bilbao Vizcaya Argentaria S.A.'s total assets, which Fitch
believes limits the parent's ability to support.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
The rating of this issuance could be downgraded in the event of a
downgrade of BBVA Mexico's anchor rating.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
The rating of this issuance could be upgraded in the event of an
upgrade of BBVA Mexico's anchor rating, and at all times the
notching down will be maintained.
SUMMARY OF FINANCIAL ADJUSTMENTS
Fitch classified pre-paid expenses and other deferred assets as
intangibles and deducted them from total equity due to their low
loss absorption capacity.
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
----------- ------
BBVA Mexico S.A.,
Institucion de Banca
Multiple, Grupo
Financiero BBVA Mexico
Subordinated LT BB New Rating
=======
P E R U
=======
BANCO INTERNACIONAL: S&P Rates New Sub Notes 'BB+'
--------------------------------------------------
S&P Global Ratings assigned its 'BB+' issue-level rating to Banco
Internacional del Peru S.A.A. - Interbank's (BBB-/Stable/--)
proposed issuance of subordinated 10-year (noncall 5.0) notes for
up to $300 million, subject to market conditions.
S&P said, "We rate the notes one notch below the bank's 'bbb-'
stand-alone credit profile (SACP), reflecting contractual
subordination. The rating also incorporates that the notes are
nondeferrable and don't have a mandatory contingent capital clause.
In addition, we assign minimal equity content because these
notes--considered as Tier II by the Peruvian regulator--don't have
characteristics of going concern contingent capital. We believe
that the notes would be subject to a possible write-down only in
resolution.
"Our rating on Interbank reflects its good competitive position in
the Peruvian financial system, with widespread brand recognition as
a major consumer loan provider in the country, and diversified
operations among sectors, segments, and clients. All these factors
support solid customer and revenue growth."
The rating also incorporates the bank's good capitalization levels
and still adequate profitability considering the impact of lower
economic growth and weather and social events on asset quality
metrics and cost of risk (also given its focus on the retail
segment). Moreover, its favorable access to a large retail client
base supports its stable funding structure, with a high proportion
of deposits and adequate liquidity to cover short-term wholesale
needs. Because of these factors, Interbank's SACP is 'bbb-'.
===========================
V I R G I N I S L A N D S
===========================
HUARONG FINANCE 2019: Fitch Cuts LT Rating on Sub. Notes to 'BB-'
------------------------------------------------------------------
Fitch Ratings has downgraded the Issuer Default Ratings (IDRs) of
four Chinese national asset management companies (AMCs) by one
notch, reflecting reduced government support expectations. The IDRs
of China Cinda Asset Management Co., Ltd. and China Orient Asset
Management Co., Ltd. have been downgraded to 'A-', from 'A', while
the IDRs of China Huarong Asset Management Co., Ltd. and China
Great Wall Asset Management Co., Ltd. have been downgraded to
'BBB', from 'BBB+'.
The Outlook on China Cinda's IDR is Stable, while the IDRs and
Government Support Ratings (GSRs) of the other three AMCs have been
placed on Rating Watch Negative (RWN) while Fitch awaits end-2023
financials to assess any further standalone financial deterioration
or reduction in the government's propensity to provide support.
The Shareholder Support Ratings (SSRs) for China Orient Asset
Management (International) Holding Limited (China Orient
International) and China Great Wall AMC (International) Holdings
Company Limited (China Great Wall International) are also on RWN,
in line with the RWN on their respective parents' ratings.
KEY RATING DRIVERS
Non-Bank Financial Institutions Criteria Applied: Fitch reassessed
government support expectations for the AMC sector in these rating
actions by applying the Non-Bank Financial Institutions Rating
Criteria. The AMCs' support-driven ratings were previously assessed
under its Government-Related Entities Rating Criteria and their
standalone credit profiles under the Non-Bank Financial
Institutions Rating Criteria, with the latter approach reflecting
their business models and for-profit orientation. The change in
criteria reflects increasing linkages between the AMCs' standalone
credit profiles and policy roles.
Weakened Support Dynamics: The national AMCs' ratings are driven by
its expectation of government support from the China sovereign
(A+/Stable). The downgrades reflect its view that the government's
propensity to provide timely extraordinary support to the national
AMCs has weakened in light of some AMCs' financial underperformance
and capital constraints, and the government's inconsistent support
stance to the sector. Fitch believes these dynamics have reduced
the AMCs' ability to effectively perform their policy role of
purchasing non-performing assets in the system.
Further Potential Weakening in Government Support: The RWN on China
Orient, China Huarong and China Great Wall is in place as Fitch
awaits the issuers' end-2023 financials to determine if there is
any additional deterioration in the issuers' standalone credit
profiles. This could further reduce the government's propensity to
provide support and pressure the issuers' support-driven ratings.
Fitch expects to resolve the RWN once the latest financials are
available.
The Stable Outlook on China Cinda's rating reflects its expectation
that its policy role and significance should be maintained, given
its stronger capitalisation and internal profit generation
capability relative to peers. Fitch expects China Cinda to take on
more policy responsibility to support financial stability while the
three other AMCs manage through the downturn, underpinning the
likelihood of government support.
GSRs Reflect Meaningful Policy Roles: Fitch has assigned Government
Support Ratings (GSRs) of 'a-' to China Cinda and China Orient and
'bbb' to China Huarong and China Great Wall. These indicate the
minimum Long-Term IDR level if Fitch does not change its view on
the potential for government support.
The GSRs reflect its expectation of extraordinary support from the
government to the AMCs in times of need. This is based on the AMCs'
significant policy functions, counterbalanced by its belief that
the AMCs have a lower support priority relative to other policy
institutions and systemically important banks, the latter of which
have larger, deposit-funded balance sheets. Its government support
expectations also vary between the AMCs based on each issuer's
ability to perform its policy function.
Inconsistent Government Support: Fitch believes the government's
support stance towards the AMCs has been inconsistent. For example,
the significant delays in China Huarong's 2021 capital injection
and China Great Wall's 2022 financial report publication suggest
that the timeliness of required support or resolution could be
adversely affected by the AMCs' ownership structure, role in the
system and lengthy government approval processes.
Varied Policy Execution Ability: The four AMCs have varied
abilities to execute and fulfill their policy roles, due to
different degrees of capital strength. Low capitalisation acts as a
constraint on some of the AMCs' policy role execution, as limited
headroom against regulatory requirements impedes their ability to
undertake policy-driven business, in its view. Unlike many other
policy institutions, the AMCs also seek to balance their policy
roles with their for-profit orientation, which can constrain their
capacity to support projects with limited commercial benefits.
Intrinsic Strength Under Pressure: China's property market slump
and economic challenges weigh on the AMCs' asset quality and
profitability and pressure internal capital generation. Fitch
expects the AMCs' earnings and profitability to eventually recover,
but the pace will depend on the property sector, given the AMCs'
large direct exposure to the property sector and substantial
property collateral. Fitch does not expect a large improvement in
the near term, as the weak property sector will continue to weigh
on domestic demand through its impact on the construction and
household sectors.
Look-Through Approach to Assess Support: Fitch believes the Chinese
government would be the ultimate support provider to the AMCs in
the event of need. This reflects the AMCs' policy significance and
substantial market positions, despite the dilution of the
government's direct shareholding in China Huarong following its
2021 restructuring. Fitch believes the government's direct and
indirect ownership of the AMCs is long term and strategic and do
not foresee large disposals to non-government-controlled entities
in the near-term.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Weakening of the government's ability to support the AMCs, as
indicated by a downgrade in the sovereign rating or a meaningful
increase in system leverage.
- Weakening of the government's propensity to support the AMCs,
either as perceived by Fitch or as evidenced by a material delay or
shortfall in capital or liquidity provision to an AMC when needed.
- Reduced AMC capitalisation headroom relative to regulatory
requirements without credible and achievable plans to replenish the
capital, leading to a weakening of the AMC's ability to execute its
policy function and, thus, reducing the government's propensity to
provide support.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Stabilised or meaningfully improved standalone credit profiles,
with strengthened capitalisation enhancing the AMCs' ability to
carry out their policy functions and increasing their policy
significance.
- A positive change in the sovereign's rating.
- A stronger government support stance, as evidenced by clearer
government statements on support for national AMCs or a more timely
and sufficient support record.
DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS
Fitch downgraded the ratings on the debt issued by AMCs' offshore
funding vehicle, mirroring the rating actions on their AMC parents.
The senior unsecured debt ratings are equalised with the ratings of
the AMCs and their overseas subsidiaries, given the debt is
guaranteed by these overseas subsidiaries and ranks pari passu with
the overseas subsidiaries' other senior obligations.
The rating on senior perpetual bond issued by China Great Wall
International Holdings IV Limited and guaranteed by China Great
Wall International is notched down once from Great Wall
International's rating. This bond ranks pari passu with Great Wall
International's other senior obligations, but the one notch
difference reflects its higher non-performance risk due to the
cumulative coupon deferral feature.
The subordinated perpetual bond issued by Huarong Finance 2019 Co.,
Ltd. and guaranteed by China Huarong International Holdings Limited
is notched down from its internal assessment of China Huarong
International's credit profile, reflecting the legally subordinated
nature and high non-performance risk from the instrument's coupon
deferral feature.
DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES
The ratings assigned to the debt are sensitive to changes in the
ratings of the AMC parents.
SUBSIDIARY AND AFFILIATE RATINGS: KEY RATING DRIVERS
Fitch has downgraded the IDRs on the AMCs' overseas subsidiaries,
mirroring the rating actions on their respective parent companies.
Fitch considers the overseas subsidiaries as core in light of their
roles as their parents' sole offshore funding and investment
platforms. As a result, Fitch equalises their ratings with their
parent companies' ratings.
Fitch has assigned Shareholder Support Ratings (SSRs) of 'a-' to
China Cinda (HK) Holdings Company Limited and China Orient Asset
Management (International) Holding Limited (China Orient
International) and 'bbb' to Great Wall International. These
indicate the minimum Long-Term IDR level for these AMCs' overseas
subsidiaries if Fitch does not change its view on the potential for
shareholder support. The SSRs of China Orient International and
Great Wall International have been placed on RWN, mirroring the RWN
on their respective AMC parents' ratings.
SUBSIDIARY AND AFFILIATE RATINGS: RATING SENSITIVITIES
The ratings assigned to AMCs' overseas subsidiaries are sensitive
to changes in the ratings of the respective AMC parents. Any signs
of weakening linkage between the overseas subsidiaries and their
respective AMC parents, which may weaken the support assessment,
will also lead to negative rating actions.
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
The national AMCs' ratings are directly linked to China's sovereign
rating.
ESG CONSIDERATIONS
China Orient has an ESG Relevance Score of '4' for Management
Strategy, due to continued strategic shift to refocus on its core
distressed asset management business. Its ability to execute its
strategy under capital constraints undermines the company's focus
on its policy role. This has a negative impact on the credit
profile and is relevant to the ratings in conjunction with other
factors.
China Huarong has an ESG Relevance Score of '4' for Management
Strategy, due to its continued strategic shift to refocus on its
core distressed asset management business, non-core business
divestment, investment and legacy asset management. Its ability to
execute its strategy under capital constraints undermines the
company's focus on its policy role. This has a negative impact on
the credit profile and is relevant to the ratings in conjunction
with other factors.
China Great Wall has an ESG Relevance Score of '4' for Management
Strategy, due to its continued strategic shift to refocus on its
core distressed asset management business. Its ability to execute
its strategy under capital constraints undermines the company's
focus on its policy role. This has a negative impact on the credit
profile and is relevant to the ratings in conjunction with other
factors.
Fitch has changed China Huarong's ESG Relevance Score for
Governance Structure to '3', from '4', as the ownership structure
and associated governance structure have stabilised since its 2021
restructuring and its governance structure complies with regulatory
requirement as a publicly listed company on the Hong Kong Stock
Exchange. Therefore, Fitch believes the governance structure has a
minimal credit impact on China Huarong.
China Great Wall and China Orient have ESG Relevance Scores of '4'
for Governance Structure, given both companies have high ownership
concentration, with the Ministry of Finance owning over 70% of the
shareholding. Fitch also considers the companies' governance
structures as weaker, as they are non-publicly listed companies.
This has a negative impact on the companies' credit profiles and is
relevant to the ratings in conjunction with other factors.
China Cinda, China Huarong and China Orient have ESG Relevance
Scores of '4' for Financial Transparency, given the limited
transparency of asset quality. This has a negative impact on their
credit profiles and is relevant to the ratings in conjunction with
other factors.
China Great Wall has an ESG Relevance Score of '5' for Financial
Transparency, given its limited transparency of asset quality and
prolonged delay in the publication of its 2022 financial report.
This has a negative impact on its credit profile and is highly
relevant to 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 Prior
----------- ------ -----
China Great Wall
International
Holdings V Limited
senior unsecured LT BBB Downgrade BBB+
Huarong Finance
2019 Co., Ltd.
senior unsecured LT BBB Downgrade BBB+
subordinated LT BB- Downgrade BB
China Cinda (2020) I
Management Limited
senior unsecured LT A- Downgrade A
China Cinda (HK)
Holdings Company
Limited LT IDR A- Downgrade A
LC LT IDR A- Downgrade A
Shareholder Support a- New Rating
China Cinda Asset
Management Co., Ltd. LT IDR A- Downgrade A
LC LT IDR A- Downgrade A
Government Support a- New Rating
China Great Wall
Asset Management
Co., Ltd. LT IDR BBB Downgrade BBB+
LC LT IDR BBB Downgrade BBB+
Government Support bbb New Rating
China Cinda Finance
(2014) Limited
senior unsecured LT A- Downgrade A
China Cinda Finance
(2017) I Limited
senior unsecured LT A- Downgrade A
China Great Wall
AMC (International)
Holdings Company
Limited LT IDR BBB Downgrade BBB+
LC LT IDR BBB Downgrade BBB+
Shareholder Support bbb New Rating
China Great Wall
International
Holdings IV Limited
senior unsecured LT BBB Downgrade BBB+
senior unsecured LT BBB- Downgrade BBB
Huarong Finance II
Co. Ltd
senior unsecured LT BBB Downgrade BBB+
Charming Light
Investments Ltd.
senior unsecured LT A- Downgrade A
Huarong Finance 2017
Co., Ltd.
senior unsecured LT BBB Downgrade BBB+
China Huarong Asset
Management Co., Ltd. LT IDR BBB Downgrade BBB+
LC LT IDR BBB Downgrade BBB+
Government Support bbb New Rating
China Orient Asset
Management
(International)
Holding Limited LT IDR A- Downgrade A
LC LT IDR A- Downgrade A
Shareholder Support a- New Rating
China Cinda Finance
(2015) I Limited
senior unsecured LT A- Downgrade A
China Great Wall
International
Holdings III Limited
senior unsecured LT BBB Downgrade BBB+
China Orient Asset
Management Co., Ltd. LT IDR A- Downgrade A
LC LT IDR A- Downgrade A
Government Support a- New Rating
Joy Treasure Assets
Holdings Inc.
senior unsecured LT A- Downgrade A
China Great Wall
International
Holdings VI Limited
senior unsecured LT BBB Downgrade BBB+
===============
X X X X X X X X
===============
LATAM: Rising "Working Poor" Concerns in Latin America
------------------------------------------------------
Adele Cardin at Rio Times Online reports that the International
Labour Organization (ILO) recently highlighted a growing issue in
Latin America and the Caribbean.
The "working poor" phenomenon, where employed individuals live in
poverty, is on the rise, according to Rio Times Online.
This is largely due to the high inflation impacting the region,
eroding the purchasing power of labor incomes, the report notes.
The ILO's "Labor Outlook 2023" report reveals that although
employment rates are returning to pre-pandemic levels, real labor
and family incomes remain lower than before, the report adds.
[*] BOND PRICING COLUMN: For the Week Jan. 1 to Jan. 5, 2024
------------------------------------------------------------
Issuer Cpn Price Maturity Country
Curr
------ --- ----- -------- -------
----
Farfetch Ltd 3.8 1.5 5/1/2027 KY USD
Colombia Telecomunicaciones 5.0 65.0 7/17/2030 CO USD
Volcan Cia Minera SAA 4.4 63.2 2/11/2026 PE USD
Spirit Loyalty Cayman Ltd 8.0 72.0 9/20/2025 KY USD
Longfor Group Holdings Ltd 3.4 57.7 4/13/2027 KY USD
YPF SA 7.0 73.6 12/15/2047 AR USD
Brazil Gov't Int'l Bond 4.8 74.2 1/14/2050 BR USD
Seazen Group Ltd 6.0 53.5 8/12/2024 KY USD
Telefonica Moviles Chile SA 3.5 73.2 11/18/2031 CL USD
Camposol SA 6.0 69.4 2/3/2027 PE USD
Longfor Group Holdings Ltd 4.0 46.4 9/16/2029 KY USD
Falabella SA 3.4 73.5 1/15/2032 CL USD
Ecopetrol SA 5.9 72.5 11/2/2051 CO USD
CFLD Cayman 2.5 7.7 1/31/2031 KY USD
Tencent Holdings Ltd 3.8 72.8 4/22/2051 KY USD
Argentina Bonar Bonds 1.0 35.9 7/9/2029 AR USD
Bolivian Gov't Int'l Bond 4.5 49.3 3/20/2028 BO USD
Shui On Development 5.5 66.2 3/3/2025 KY USD
BRF SA 5.8 71.7 9/21/2050 BR USD
Longfor Group Holdings Ltd 4.5 53.7 1/16/2028 KY USD
Agile Group Holdings Ltd 5.8 16.5 1/2/2025 KY USD
Argentina Gov't Int'l Bon 0.5 32.7 7/9/2029 AR EUR
Shui On Development 5.5 56.3 6/29/2026 KY USD
Petroleos del Peru SA 4.8 70.5 6/19/2032 PE USD
Tencent Holdings Ltd 3.2 65.0 6/3/2050 KY USD
Petroleos del Peru SA 5.6 60.2 6/19/2047 PE USD
Agile Group Holdings Ltd 5.5 12.1 5/17/2026 KY USD
Banco Davivienda SA 6.7 72.1 CO USD
Longfor Group Holdings Ltd 3.9 41.5 1/13/2032 KY USD
VTR Comunicaciones SpA 5.1 58.5 1/15/2028 CL USD
Seazen Group Ltd 4.5 30.0 7/13/2025 KY USD
Gol Finance Inc 8.8 25.3 KY USD
Panma Gov't Int'l Bond 3.9 56.3 7/23/2060 PA USD
Powerlong Real Estate 7.0 9.5 12/6/2025 KY USD
Argentina Gov't Int'l Bond 0.1 34.7 7/9/2030 AR EUR
Banco Nacional de Panama 2.5 74.2 8/11/2030 PA USD
Powerlong Real Estate 6.3 9.3 8/10/2024 KY USD
Credivalores-Crediservicios 8.9 23.5 2/7/2025 CO USD
CFLD Cayman Investment 2.5 2.6 1/31/2031 KY USD
Argentine Bonos del Tesoro 15.5 32.3 10/17/2026 AR ARS
VTR Comunicaciones SpA 4.4 58.4 4/15/2029 CL USD
Tencent Holdings Ltd 3.9 70.8 4/22/2061 KY USD
Alibaba Group Holding Ltd 3.3 60.5 2/9/2061 KY USD
Spirit Loyalty/ Spirit IP 8.0 72.8 9/20/2025 KY USD
Alibaba Group Holding Ltd 2.7 66.0 2/9/2041 KY USD
Alibaba Group Holding Ltd 3.2 63.3 2/9/2051 KY USD
Sociedad Quimica 3.5 67.2 9/10/2051 CL USD
Agile Group Holdings Ltd 6.1 13.0 10/13/2025 KY USD
Aeropuerto Internacional 5.1 74.2 8/11/2061 PA USD
eHi Car Services Ltd 7.0 66.6 9/21/2026 KY USD
Colombia Gov't Int'l Bond 3.9 58.6 2/15/2061 CO USD
Colombia Gov't Int'l Bond 5.2 74.5 5/15/2049 CO USD
ENAP 4.5 74.4 9/14/2047 CL USD
Chile Gov't Int'l Bond 3.5 72.3 4/15/2053 CL USD
Agile Group Holdings Ltd 5.5 14.0 4/21/2025 KY USD
Bolivian Gov't Int'l Bond 7.5 54.7 3/2/2030 BO USD
Hilong Holding Ltd 9.8 50.8 11/18/2024 KY USD
AYC Finance Ltd 3.9 62.2 KY USD
AySA 7.9 74.3 5/1/2026 AR USD
Colombia Telecomunicaciones 5.0 65.1 7/17/2030 CO USD
Peru Gov't Int'l Bond 3.2 58.2 7/28/2121 PE USD
ETESA 5.1 71.8 5/2/2049 PA USD
Agile Group Holdings Ltd 7.9 3.3 KY USD
Powerlong Real Estate 7.1 9.4 1/15/2026 KY USD
ENA Master Trust 4.0 70.1 5/19/2048 PA USD
Panma Gov't Int'l Bond 4.5 65.9 4/16/2050 PA USD
Panma Gov't Int'l Bond 4.5 62.1 1/19/2063 PA USD
ACEN Finance Ltd 4.0 64.2 KY USD
Chile Gov't Int'l Bond 3.1 63.3 1/22/2061 CL USD
CODELCO 3.7 68.8 1/30/2050 CL USD
Guacolda Energia SA 4.6 64.4 4/30/2025 CL USD
Powerlong Real Estate 4.0 9.3 7/12/2024 KY USD
Peru Gov't Int'l Bond 2.8 58.7 12/1/2060 PE USD
Panma Gov't Int'l Bond 4.5 63.7 4/1/2056 PA USD
Peru Gov't Int'l Bond 3.6 72.3 3/10/2051 PE USD
Chile Gov't Int'l Bond 3.1 73.4 5/7/2041 CL USD
Spirit Loyalty/ Spirit IP 8.0 72.8 9/20/2025 KY USD
El Slavador Gov't Int'l Bond 7.1 68.5 1/20/2050 SV USD
Peru Gov't Int'l Bond 3.6 67.0 1/15/2072 PE USD
Panma Gov't Int'l Bond 4.5 67.4 5/15/2047 PA USD
Agile Group Holdings Ltd 7.8 4.4 KY USD
General Shopping Finance Ltd 10.0 69.3 KY USD
Chile Gov't Int'l Bond 3.3 63.2 9/21/2071 CL USD
Empresa de los 3.1 60.3 8/18/2050 CL USD
Argentina Treasury Dual Bond 3.3 45.8 4/30/2024 AR USD
Panma Gov't Int'l Bond 4.3 63.5 4/29/2053 PA USD
China Yuhua Education 0.9 65.3 12/27/2024 KY HKD
Spirit Loyalty/Spirit IP 8.0 71.8 9/20/2025 KY USD
CK Hutchison Int'l 20 Ltd 3.4 73.8 5/8/2050 KY USD
Bonos Para La Reconstruccion 5.0 50.2 10/31/2027 AR USD
Colombia Gov't Int'l Bond 4.1 68.0 2/22/2042 CO USD
Empresa de los Ferrocarriles 3.8 67.7 9/14/2061 CL USD
CODELCO 3.2 61.8 1/15/2051 CL USD
Bishopsgate Asset Finance 4.8 69.3 8/14/2044 KY GBP
Tencent Holdings Ltd 3.3 61.3 6/3/2060 KY USD
Telefonica Moviles Chile SA 3.5 73.3 11/18/2031 CL USD
Falabella SA 3.4 73.6 1/15/2032 CL USD
Greenland Hong Kong 10.2 13.2 KY USD
Provincia de Cordoba 7.1 39.9 10/27/2026 AR USD
CFLD Cayman 2.5 3.0 1/31/2031 KY USD
Chile Gov't Int'l Bond 1.3 54.8 1/22/2051 CL EUR
At Home Cayman 11.5 66.6 5/12/2028 KY USD
Peru Gov't Int'l Bond 2.0 74.5 11/17/2036 PE EUR
China Overseas Finance 3.1 73.7 3/2/2035 KY USD
Lunar Funding I Ltd 1.7 73.2 8/11/2056 KY GBP
VTR Comunicaciones SpA 5.1 58.7 1/15/2028 CL USD
El Slavador Gov't Int'l Bond 7.6 71.8 9/21/2034 SV USD
Banco Nacional de Panama 2.5 74.4 8/11/2030 PA USD
Chile Gov't Int'l Bond 1.3 68.7 1/29/2040 CL EUR
El Slavador Gov't Int'l Bond 7.6 72.5 2/1/2041 SV USD
Sociedad Quimica 3.5 67.1 9/10/2051 CL USD
Tencent Holdings Ltd 3.8 72.9 4/22/2051 KY USD
Volcan Cia Minera SAA 4.4 63.0 2/11/2026 PE USD
Colombia Gov't Int'l Bond 7.3 71.4 10/26/2050 CO COP
Empresa de Transporte 3.7 65.8 9/13/2061 CL USD
Guacolda Energia SA 10.0 67.9 12/30/2030 CL USD
Petroleos del Peru SA 5.6 60.2 6/19/2047 PE USD
CFLD Cayman 2.5 8.6 1/31/2031 KY USD
ETESA 5.1 72.0 5/2/2049 PA USD
Camposol SA 6.0 70.0 2/3/2027 PE USD
Chile Gov't Int'l Bond 1.3 74.6 7/26/2036 CL EUR
Southern Water Services 3.0 69.4 5/28/2037 KY GBP
VTR Comunicaciones SpA 4.4 58.4 4/15/2029 CL USD
Three Gorges Finance I 3.2 71.1 10/16/2049 KY USD
AES Argentina Generacion SA 8.0 94.4 7/15/2025 AR USD
QNB Finance Ltd 13.5 67.6 10/6/2025 KY TRY
AMTD IDEA Group 1.5 7.5 KY USD
CODELCO 3.7 68.7 1/30/2050 CL USD
Bolivian Gov't Int'l Bond 4.5 48.6 3/20/2028 BO USD
Gol Finance Inc 8.8 29.1 KY USD
QNB Finance Ltd 11.5 73.1 1/30/2025 KY TRY
Petroleos del Peru SA 4.8 70.6 6/19/2032 PE USD
Aeropuerto Internacional 5.1 74.1 8/11/2061 PA USD
CFLD Cayman 2.5 2.3 1/31/2031 KY USD
Bolivian Gov't Int'l Bond 7.5 54.2 3/2/2030 BO USD
Tencent Holdings Ltd 3.9 70.7 4/22/2061 KY USD
Empresa de Transporte 3.7 66.1 9/13/2061 CL USD
Aruba Gov't Int'l Bonds 6.5 62.8 5/6/2028 AW USD
YPF SA 1.0 65.3 4/25/2027 AR USD
BRF SA 5.8 71.6 9/21/2050 BR USD
Banco Davivienda SA 6.7 71.0 CO USD
Telecom Argentina SA 1.0 73.2 3/9/2027 AR USD
SPE Saneamento RIO 1 SA 7.2 10.6 1/15/2042 BR BRL
SPE Saneamento RIO 1 SA 6.9 10.4 1/15/2034 BR BRL
CODELCO 3.2 61.7 1/15/2051 CL USD
ENAP 4.5 74.4 9/14/2047 CL USD
Logan Group Co Ltd 7.0 3.9 KY USD
Bonos Para La Reconstruccion 3.0 59.9 5/31/2026 AR USD
Telecom Argentina SA 1.0 65.5 2/10/2028 AR USD
Empresa de los Ferrocarriles 3.1 60.1 8/18/2050 CL USD
Tencent Holdings Ltd 3.2 64.9 6/3/2050 KY USD
Hilong Holding Ltd 9.8 51.9 11/18/2024 KY USD
Credivalores-Crediservicios 8.9 23.9 2/7/2025 CO USD
Guacolda Energia SA 4.6 63.9 4/30/2025 CL USD
ENA Master Trust 4.0 69.3 5/19/2048 PA USD
Tencent Holdings Ltd 3.3 61.4 6/3/2060 KY USD
Jamaica Government Bond 8.5 73.0 12/21/2061 JM JMD
SPE Saneamento Rio 4 SA 7.2 10.1 1/15/2042 BR BRL
El Slavador Gov't Int'l Bond 5.9 59.0 1/30/2025 SV USD
CFLD Cayman 2.5 3.0 1/31/2031 KY USD
CFLD Cayman 2.5 3.0 1/31/2031 KY USD
CODELCO 3.6 74.2 7/22/2039 CL AUD
At Home Cayman 11.5 66.6 5/12/2028 KY USD
El Slavador Gov't Int'l 7.1 68.6 1/20/2050 SV USD
General Shopping Finance 10.0 69.3 KY USD
Hilong Holding Ltd 9.8 51.3 11/18/2024 KY USD
CK Hutchison International 3.4 74.0 5/8/2050 KY USD
CFLD Cayman 2.5 2.0 1/31/2031 KY USD
Equatorial Para 11.0 1.0 5/15/2028 BR BRL
El Slavador Gov't Int'l 7.6 72.1 9/21/2034 SV USD
Industrias Metalurgicas 1.0 72.6 12/30/2031 AR USD
YPF SA 7.0 73.4 12/15/2047 AR USD
CFLD Cayman 2.5 8.5 1/31/2031 KY USD
Generacion Mediterranea SA 12.5 0.0 2/16/2024 AR USD
Provincia de la Rioja 7.5 57.1 7/20/2032 AR USD
Enel Generacion Chile SA 6.2 29.0 10/15/2028 CL CLP
SPE Saneamento Rio 4 SA 6.9 10.4 1/15/2034 BR BRL
Sociedad Quimica 4.9 55.7 1/5/2030 CL CLP
Provincia de la Rioja 4.5 58.7 1/20/2027 AR USD
Link Finance Cayman 2009 2.2 72.7 10/27/2038 KY HKD
ICBC DO Brasil Banco 3.3 59.6 BR USD
Provincia del Chaco 4.0 0.0 12/4/2026 AR USD
El Slavador Gov't Int'l Bond 7.6 72.6 2/1/2041 SV USD
Jamaica Government Bond 6.3 67.7 7/11/2048 JM JMD
Empresa de los Ferrocarriles 6.5 11.1 1/1/2026 CL CLP
Empresa de los Ferrocarriles 3.8 67.6 9/14/2061 CL USD
AES Tiete Energia SA 6.8 0.7 4/15/2024 BR BRL
Inversiones CMPC SA 1.5 57.2 7/3/2025 CL CLP
Colombia Gov't Int'l Bond 7.3 71.4 10/26/2050 CO COP
Elektra Noreste SA 3.9 74.2 7/15/2036 PA USD
Amwaj Ltd 6.4 72.8 KY USD
Colombia Gov't Int'l Bond 5.0 73.7 6/15/2045 CO USD
Silk Road Investments Ltd 2.9 66.3 1/23/2042 KY AUD
Banco del Estado de Chile 2.8 67.2 3/13/2040 CL AUD
Vert Cia Securitizadora SA 11.5 56.5 2/15/2024 BR BRL
Guacolda Energia SA 10.0 70.0 12/30/2030 CL USD
Colombia Gov't Int'l Bond 6.3 72.5 7/9/2036 CO COP
AMTD IDEA Group 4.5 61.3 KY SGD
Elektra Noreste SA 3.9 74.2 7/15/2036 PA USD
GDM Argentina SA 2.5 0.0 9/8/2024 AR USD
QNB Finance Ltd 2.9 73.4 9/16/2035 KY AUD
Nuevosur SA/Chile 4.0 40.6 3/21/2028 CL CLP
SYN prop e tech SA 11.3 20.8 3/15/2024 BR BRL
Esval SA 3.5 16.7 2/15/2026 CL CLP
Esval SA 3.4 23.6 3/15/2028 CL CLP
Colombian TES 6.3 72.2 7/9/2036 CO COP
Colombia Gov't Int'l Bond 6.3 72.5 7/9/2036 CO COP
Colombian TES 7.3 71.1 10/26/2050 CO COP
Banco Santander Chile 1.3 72.5 11/29/2034 CL EUR
2W Ecobank SA 10.3 26.3 11/24/2029 BR BRL
Sociedad Concesionaria 5.3 36.6 12/15/2026 CL CLP
Fospar S/A 6.5 1.4 5/15/2026 BR BRL
Luminis IV Ltd 3.2 69.9 1/22/2042 KY AUD
Ascent Finance Ltd 3.8 66.2 6/28/2047 KY AUD
Banda de Couro Energetica 8.0 64.6 1/15/2027 BR BRL
Baraunas II Energetica 8.0 24.0 1/15/2027 BR BRL
Astra Cumulative Return 1.5 61.7 11/1/2029 KY USD
Genneia SA 2.0 56.2 7/14/2028 AR USD
Colombia Gov't Int'l Bond 4.1 62.9 5/15/2051 CO USD
Panma Gov't Int'l Bond 2.3 70.5 9/29/2032 PA USD
Argentina Gov't Int'l Bond 1.0 38.5 7/9/2029 AR USD
Chile Gov't Int'l Bond 3.5 72.9 1/25/2050 CL USD
Rio Alto Energias Renovaveis 7.0 28.4 7/15/2027 BR BRL
Travessia Securitizadora 9.0 1.6 1/20/2032 BR BRL
Hector A Bertone SA 1.9 0.0 4/7/2024 AR USD
Sociedad Concesionaria 5.3 49.3 12/15/2028 CL CLP
Empresa de Transporte 5.5 57.8 7/15/2027 CL CLP
Embotelladora Andina SA 6.5 23.0 6/1/2026 CL CLP
Sylph Ltd 3.1 74.3 9/25/2035 KY USD
Sylph Ltd 2.4 64.0 9/25/2036 KY USD
Lani Finance Ltd 1.9 66.1 9/20/2048 KY EUR
Lani Finance Ltd 1.9 67.2 10/19/2048 KY EUR
Banco de Chile 2.7 74.4 3/9/2035 CL AUD
Lani Finance Ltd 3.1 65.7 10/19/2048 KY AUD
Dibens Leasing S/A 10.6 30.9 3/1/2035 BR BRL
QNB Finance Ltd 2.9 72.1 12/4/2035 KY AUD
Ascent Finance Ltd 3.4 66.6 2/6/2043 KY AUD
Dibens Leasing S/A 10.6 32.4 3/1/2035 BR BRL
Itau Unibanco SA/Nassau 5.8 20.5 5/20/2027 BR BRL
Sylph Ltd 2.9 73.9 6/24/2036 KY AUD
Dibens Leasing S/A 10.6 36.6 3/1/2035 BR BRL
Empresas Gasco SA 7.3 20.4 12/1/2025 CL CLP
QNB Finance Ltd 3.4 71.3 10/21/2039 KY AUD
Banco del Estado de Chile 3.1 70.7 2/21/2040 CL AUD
Sylph Ltd 2.7 68.1 3/25/2036 KY USD
Banco Santander Chile 3.1 70.7 2/28/2039 CL AUD
Luminis III Ltd 2.3 39.4 9/22/2048 KY USD
Ascent Finance Ltd 1.2 61.6 7/12/2047 KY EUR
Spica Ltd 2.0 74.2 3/24/2033 KY AUD
Lani Finance Ltd 1.7 63.8 3/14/2049 KY EUR
Luminis Ltd 2.3 54.5 9/22/2048 KY AUD
Luminis III Ltd 2.4 54.9 9/22/2048 KY AUD
Skylark Ltd 1.8 59.2 4/4/2039 KY GBP
Amwaj Ltd 4.5 51.8 KY USD
Earls Eight Ltd 1.7 71.0 6/20/2032 KY AUD
Santander Consumer Chile SA 2.9 72.1 11/27/2034 CL AUD
Earls Eight Ltd 0.1 63.1 12/20/2031 KY AUD
*********
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 2024. 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.
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