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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, January 12, 2024, Vol. 25, No. 10

                           Headlines



A R G E N T I N A

ARGENTINA: Annual Inflation Soars to 211.4%
YPF SA: Offers to Buy Back Bonds due in April
YPF SOCIEDAD: Moody's Affirms 'Caa3' Issuer Rating, Outlook Stable


B R A Z I L

ATLAS LITHIUM: Marc Fogassa Reports 41.42% Equity Stake


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Has Several Construction Challenges


P A N A M A

FIRST QUANTUM: Panamanian Commission Visits Shut Down Copper Mine

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A R G E N T I N A
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ARGENTINA: Annual Inflation Soars to 211.4%
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AP News reports that Argentina's annual inflation soared to 211.4%
in 2023, the highest rate in 32 years, according to figures
released Thursday, January 11 by the government's INDEC statistics
agency.

The data reflects the strong impact of a series of shock measures,
including a 50% devaluation of the nation's currency, implemented
by right-wing President Javier Milei in hopes of eventually
bringing the country's roaring inflation under control, notes the
report.

The annual inflation compared with about 95% in 2022, AP says. The
country's monthly inflation stood at 25.5% in December, up from
12.8% in November, but slightly below the 30% the government had
forecast, it added.

According to the report, Milei had said in an interview with a
Buenos Aires radio station before the figures were released that if
the monthly inflation rate came in below the forecast, that would
be an accomplishment.

"If the number is closer to 25%, it means that the success was
tremendous," Milei said, the report relates.

In his inauguration speech, Milei announced a painful adjustment
plan aimed at staving off hyperinflation and warned that the
measures would initially have a "negative impact on the level of
activity, employment, real wages, and the number of poor and
indigent people," notes AP.

It is estimated that around 40% of the population live in poverty,
the report discloses.

Milei said in the interview that once the macroeconomic variables
stabilize, he will then dollarize the economy, AP relates.

The report relays that food and non-alcoholic beverages, the
biggest contributors to the annual inflation rate, saw an average
increase of 29.7% in December, according to INDEC. Other products
for mass consumption rose around 30%, while medications had average
increases of 40%.

Consultancy Eco Go warns of a slight slowdown in food prices in the
first days of January and is projecting a monthly increase in the
cost of living of less than the 23% in December, according to AP.

"There is still a process of rearrangement of relative prices," the
report quoted Milei as saying. "We are going to continue to see a
period of inflation with horrible numbers, but then we’ll see
that the next step will be the fall of inflation."

                      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.


YPF SA: Offers to Buy Back Bonds due in April
---------------------------------------------
Buenos Aires Times reports that Argentina's state-run oil producer
launched an offer to buy back some of its dollar bonds due later
this year in a bid to reduce short-term debt.

YPF SA, the country's largest oil producer, said it will pay cash
for the US$346 million outstanding on notes due in April, according
to Buenos Aires Times.  The company is dangling a premium for
investors who tender before an early deadline on January 19, the
report notes.

YPF's dollar bonds returned 30 percent last year, the best
performance for corporate debt in Latin America after airline
Avianca, according to a Bloomberg index, the report relays.  The
bonds due in April trade for around 99.5 cents on the dollar,
according to indicative pricing compiled by Bloomberg.

The firm hired Citigroup, JPMorgan, Santander, Banco Santander
Argentina and Banco de Galicia y Buenos Aires to arrange the
transaction, the report notes.  The offer expires on February 5.

                      About YPF SA
       
YPF S.A. is a vertically integrated, majority state-owned Argentine
energy company, engaged in oil and gas exploration and production,
and the transportation, refining, and marketing of gas and
petroleum products.

Founded in 1922, YPF was an oil company established as a state
enterprise.  YPF was later privatized under president Carlos Menem
and was bought by the Spanish firm Repsol in 1999, and the
resulting merged company was call Repsol YPF.  

In 2012, about 51% of the firm was renationalized and this was
initiated by President Cristina Fernandez se Kirchner.  The
government of Argentina agreed to pay $5 billion compensation to
Repsol.

In April 2023, S&P Global Ratings lowered its local and foreign
currency ratings on YPF SA to 'CCC-' from 'CCC+'.  The outlook on
these ratings is now negative.  The downgrade follows a similar
action on S&P's long-term foreign currency ratings and T&C on
Argentina, following announced plans that, if implemented, would
oblige some nonfinancial public-sector entities to exchange or
sell their holdings of global-and local-law dollar-denominated
bonds issued during the 2020 restructuring for other locally issued
peso debt, likely dollar-and/or inflation-linked bonds. In S&P's
view, the lack of clarity and the apparent motivation for the
potential transaction underscore heightened credit vulnerabilities,
in particular given the increasing pressures from the severe
drought that Argentina is facing, which further constrains the
already disrupted FX market. This expected greater pressure on the
FX markets also explains S&P's downward revision of the T&C
assessment to 'CCC-'.

YPF SOCIEDAD: Moody's Affirms 'Caa3' Issuer Rating, Outlook Stable
------------------------------------------------------------------
Moody's Investors Service affirmed the Caa3 Issuer Rating, Senior
Unsecured Global Notes ratings, and Senior Secured Global Notes
rating of YPF Sociedad Anonima (YPF). Moody's also affirmed YPF's
Senior Unsecured Global MTN Program's rating at (P)Caa3, Caa3
Senior Unsecured Global MTNS, and the company's Baseline Credit
Assessment (BCA), which reflects its standalone credit strength, at
caa3.

At the same time, Moody's assigned a Caa3 Senior Secured Global
Notes rating to YPF's up to $1 billion 7-year amortizing
trust-enhanced global notes. The outlook is maintained stable.

The company will use the proceeds of the notes for repayment and/or
refinancing of indebtedness, including concurrent Tender Offer with
respect to any and all of the 2024 notes whose outstanding amount
is $346.31 million. YPF's offer to purchase its 2024 Notes will
allow the company to extend the duration of the company's debt.
Proceeds will also be used for investments in fixed assets and
working capital in Argentina.

The rating of the proposed notes assumes that the final transaction
documents will not be materially different from draft legal
documentation reviewed by Moody's to date and that these agreements
are legally valid, binding and enforceable.

RATINGS RATIONALE

The affirmation of YPF's caa3 BCA and Caa3 ratings reflect the
company's position as the largest integrated oil and gas company in
Argentina, with an extensive portfolio of assets in the country
including, among others, a large portfolio of oil and gas
concessions and reserves; refining assets that account for over
half Argentina's refining nameplate capacity; a broad network of
service stations and logistics assets; a petrochemical business
through Profertil S.A. (50% stake), fully integrated with its
refining and natural gas businesses; a separation and fractioning
of natural gas liquids (NGL) business through Compania Mega S.A.
(38% stake); and a power generation business through YPF Energia
Electrica S.A. (YPF Luz, Caa3 stable), a company jointly controlled
with GE EFS Power Investments B.V. Also incorporated in the rating,
including the new debt are YPF's good credit metrics for its rating
category.

YPF's Caa3 ratings also take into consideration Moody's joint
default analysis, which includes the rating agency's assumptions of
moderate government support in case of need and high default
correlation between YPF and the Government of Argentina (Ca,
stable), its controlling shareholder. The Caa3 ratings also reflect
Moody's view that the company's creditworthiness cannot be
completely de-linked from the credit quality of the Argentine
government and, thus, the ratings need to closely reflect the risk
that the company shares with the sovereign.

Key rating challenges for YPF's ratings are its concentration of
operations in Argentina, a moderate-to-high foreign-currency risk
given that most of the company's debt is denominated in foreign
currency, coupled with refinancing risk; and its portfolio of
majority mature producing fields and rigid labor cost structure.

The proposed notes maturing in 2031 will be senior and secured,
backed by the company's export revenue. From the issue date until
the date in which YPF pays in full all secured obligations under
the 2026 Notes, the 2031 Notes will be subordinated to the 2026
Notes debt service payments.

Net cash proceeds from exports are initially deposited into 2026
Notes Export Collection Account, with the deposited amount being
the lesser of two conditions: either 120% of the debt service for
the upcoming 12 months or the total exports of the company.
Subsequently, the export proceeds that have been cleared are
transferred to 2026's Reserve and Payment Account. This is done to
maintain a Minimum Coverage Ratio, which is established at 125%
coverage of the debt service payments for the next two quarters.
Once the balance in this Account achieves the stipulated Minimum
Coverage Ratio, any surplus export proceeds from the 2026 Notes
Export Collection Account, are then shifted to 2031's Export
Collection Account. These funds will then follow the same
trajectory to the 2031's Reserve and Payment Account to ensure also
a 125% coverage of the debt service payments for the next
semester.

Upon full repayment of the 2026 Notes, the corresponding Exports
Collection Account, Clearance Account, and Reserve and Payment
Account are expected to be cancelled. This suggests that the 2031
Notes would hold a primary lien on the export revenue for the
majority of their lifespan, encompassing all amortization payments
from July 2026 onwards. At that time, YPF shall have deposited in
the Export Collection Account within the 12-month period prior to
such date of determination, an amount that represents at least the
120% of the sum of principal and interest payments, in respect of
Notes payable on the next two succeeding interest payment dates.

The proposed notes will incorporate a net leverage incurrence ratio
covenant, initially set at 3x, which will remain in effect until
the 2026 Notes are fully paid. Upon this repayment, the incurrence
ratio will then escalate to 3.5x. A further increase in this
threshold is scheduled for January 2028, when the ratio will rise
to 4.0x. This last ratio is designed to remain in place up until
the maturity of the proposed 2031 notes.

The financial position of the company is adequate, with liquidity
indicators demonstrating strong cash and securities holdings. As of
September 2023, the company held approximately $1.5 billion in cash
and marketable securities. Furthermore, Moody's estimates YPF to
generate around $5 billion in cash from operations over the
subsequent 12 month period. These figures are particularly
favorable when compared to the company's upcoming debt maturities,
which total $1.1 billion in 2024. The company's access to bank
lending from various financial institutions, coupled with its
ability to tap into both local and international capital markets,
further demonstrates its adequate financial footing. Given these
factors, along with the company's cash holdings and future cash
generation, the servicing of its debt over the next 12-18 months is
deemed manageable.

The stable outlook reflects Moody's belief that YPF's main
shareholder, the Argentine State, i) will exert no influence over
the company to spend in capital expenditures or dividends beyond
its operating cash flow generation capacity and ii) has incentives
to maintain prices of crude and oil products at a level that makes
it economically attractive for oil companies to invest to increase
production and reduce the country's dependence on imports of oil
products and natural gas. YPF's creditworthiness cannot be
completely de-linked from the credit quality of the Argentine
government, and thus its ratings also incorporate the risks that it
shares with the sovereign. Also, the stable outlook reflects
Moody's view that possible losses for senior unsecured creditors
will not be greater than those associated with a Caa3 rating.

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

YPF's ratings could be upgraded if there is an upgrade of the
government of Argentina's Ca rating and YPF maintains good credit
metrics for its rating category. Upgrade pressure could also be
triggered if the company expands and diversifies further more its
operations outside Argentina while maintaining an adequate
liquidity profile.

YPF's ratings could be downgraded if the company registers a
significant deterioration in liquidity or if it loses access to
debt markets or foreign currency, significantly restricting the
company's ability to meet debt obligations. The ratings could also
be downgraded if Moody's believes possible losses for senior
unsecured creditors would be greater than those associated with a
Caa3 rating or if the Government of Argentina's rating is
downgraded.

The methodologies used in these ratings were Integrated Oil and Gas
published in September 2022.



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B R A Z I L
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ATLAS LITHIUM: Marc Fogassa Reports 41.42% Equity Stake
-------------------------------------------------------
In a Schedule 13D/A filed with the Securities and Exchange
Commission, Marc Fogassa disclosed that as of December 21, 2023, he
beneficially owned 4,444,294 shares of common stock of Atlas
Lithium Corporation, representing 41.42% of the shares
outstanding.

A full-text copy of the filing is available at:

https://www.sec.gov/Archives/edgar/data/1540684/000149315223046638/formsc13da.htm

                        About Atlas Lithium

Atlas Lithium Corporations formerly Brazil Minerals, Inc. is a
mineral exploration and development company with lithium projects
and exploration properties in other critical and battery minerals,
including nickel, rare earths, graphite, and titanium, to power the
increased demand for electrification.  The Company's current focus
is on developing its hard-rock lithium project located in Minas
Gerais State in Brazil at a well-known, premier pegmatitic district
in Brazil.  The Company intends to produce and sell lithium
concentrate, a key ingredient for the global battery supply chain.

Atlas Lithium reported a net loss of $5.66 million in 2022, a net
loss of $4.03 million in 2021, a net loss of $1.55 million in
2020,a net loss of $2.08 million in 2019, a net loss of $1.85
million in 2018, a net loss of $1.89 million in 2017, a net loss of
$1.74 million in 2016, and a net loss of $1.88 million in 2015. For
the nine months ended Sept. 30, 2023, the Company reported a net
loss of $25.60 million.

In its Quarterly Report for the three months ended Sept. 30, 2023,
Atlas Lithium said that it may need to seek additional equity or
debt financing to the extent that its current resources are
insufficient to satisfy its cash requirements. If the needed
financing is not available, or if the terms of financing are less
desirable than it expects, the Company may be forced to scale back
its existing operations and growth plans, which could have an
adverse impact on its business and financial prospects and could
raise substantial doubt about its ability to continue as a going
concern.




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D O M I N I C A N   R E P U B L I C
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DOMINICAN REPUBLIC: Has Several Construction Challenges
-------------------------------------------------------
Dominican Today reports that the President of Codia says that 80%
of the constructions in the country are illegal, so supervision
must be increased.

Updating geomatics and surveying, implementing the one-stop shop,
and increasing supervision in the construction sector at the
national level are challenges the country must face in engineering
in 2024, according to Dominican Today.

On these issues, the president of the Dominican College of
Engineers, Architects and Surveyors (Codia), Juan Villar, said that
in the country, 80% of the constructions are illegal, so the level
of supervision must be increased so that collegiate engineers
ensure that the infrastructure works that are raised comply with
the regulations and established standards, the report notes.

In addition, he said that the single construction window should be
implemented to expedite permits -- and added that it is also
necessary to update the geomatics to better manage the referenced
geographic information, the report relays.

                         Contractor Debt

The president of the Codia said that this guild is making efforts
to achieve the payment of a debt of RD$300 million owed by several
public institutions to 70 engineering contractors of the State, the
report discloses.

                       Anniversary Week

The Codia announced several activities to celebrate its 61st
anniversary, the report relays.  They include lectures by
government officials and awards to 61 engineering and architecture
business people for their contributions to developing the country's
construction and economic sector, the report adds.

                   About Dominican Republic

The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district. Luis Rodolfo
Abinader Corona is the current president of the nation.

TCR-LA reported in April 2019 that Juan Del Rosario of the UASD
Economic Faculty cited a current economic slowdown for the
Dominican Republic and cautioned that if the trend continues,
growth would reach only 4% by 2023. Mr. Del Rosario said that if
that happens, "we'll face difficulties in meeting international
commitments."

An ongoing concern in the Dominican Republic is the inability of
participants in the electricity sector to establish financial
viability for the system.

On December 4, 2023, the TCR-LA reported that Fitch Ratings has
affirmed Dominican Republic's Long-Term Foreign-Currency Issuer
Default Rating (IDR) at 'BB-' and revised the Outlook to Positive
from Stable. Fitch says the Positive Outlook reflects a trend
improvement in governance, and robust growth prospects that should
lead to continued gains in per capita income.  According to Fitch,
growth has decelerated in 2023, but it expects Dominican Republic
to recover to high levels during 2024-2025. External liquidity
metrics have improved in recent years, and foreign currency share
of government debt is on a downward path.

In August 2023, Moody's Investors Service changed the outlook on
the Government of Dominican Republic's ratings to positive from
stable and affirmed the local and foreign-currency long-term issuer
and senior unsecured ratings at Ba3.  Moody's said the key drivers
for the outlook change to positive  are: (i) sustained high growth
rates have enhanced the scale and wealth levels of the economy; and
(ii) a material decline in the government debt burden coupled with
improved fiscal policy effectiveness will support medium-term debt
sustainability.

The affirmation of the Ba3 ratings balances the Dominican
Republic's strong economic growth dynamics and relatively contained
susceptibility to event risks, with a comparatively weaker fiscal
position, reflecting long-standing credit challenges which include:
(i) a shallow revenue base compared to peers, (ii) weak debt
affordability metrics, and (iii) high exposure to foreign currency
borrowing.

S&P Global Ratings, in December 2022, raised its long-term foreign
and local currency sovereign credit ratings on the Dominican
Republic to 'BB' from 'BB-'. The outlook on the long-term ratings
is stable. S&P affirmed its 'B' short-term sovereign credit
ratings. S&P also revised its transfer and convertibility (T&C)
assessment to 'BBB-' from 'BB+'.  The stable outlook reflects S&P's
expectation of continued favorable GDP growth and policy continuity
over the next 12-18 months that will likely stabilize the
government's debt burden.

In February 2023, S&P said its BB ratings reflect the country's
fast-growing and resilient economy.  It also incorporates the
country's historical political and social challenges in passing
structural reforms to contain fiscal deficits, despite recent
improvements in the electricity sector. The ratings are constrained
by relatively high debt, a hefty interest burden, and limited
monetary policy flexibility.



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P A N A M A
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FIRST QUANTUM: Panamanian Commission Visits Shut Down Copper Mine
-----------------------------------------------------------------
AP News reports that Panama's government on Thursday, January 11,
inspected a huge copper mine shut down after the country's Supreme
Court ruled in November that the government's concession with a
Canadian mining company was unconstitutional. The deal had
triggered widespread street protests.

The administration of President Laurentino Cortizo has promised to
carry out an orderly closure of First Quantum Minerals' mine, notes
the report.

The process will take years if carried out in a way to avoid
environmental impacts, according to the company, the government and
outside experts, it added.

The report notes that the mine's closure meant the loss of
thousands of jobs. A small staff has remained to maintain the
sprawling property.

Last March, Panama's legislature approved an agreement with First
Quantum allowing local subsidiary Cobre Panama to continue
operating the copper mine for at least 20 more years. The open-pit
mine was temporarily closed in 2022 when talks between the
government and First Quantum broke down over payments the
government wanted, the report relates. The new contract also
included the possibility of extending the concession for another 20
years.

According to AP, the deal set off weeks of protests. The
protesters, a broad coalition of Panamanians, feared the mine's
impact on nature and especially on the water supply.

First Quantum has requested arbitration block Panama's decision or
obtain damages, relates the report.

Cobre Panama said in a statement that "the abrupt halt to
operations before the useful life of the mine is unusual, so
additional planning and preparation are needed," AP discloses.

It said that at the government's request it will present a
preliminary "safe preservation and management" plan with an eye
toward the mine's permanent closure.

An intergovernmental commission representing various agencies
visited the mine, notes the report. The government also invited
representatives of some civil society groups. Last week, a team
from the Attorney General's Office visited as part of an
investigation into complaints about possible environmental
violations, adds the report.

As reported in the TCR-LA on December 11, 2023, S&P Global Ratings
lowered its ratings on copper producer First Quantum Minerals (FQM)
and its unsecured notes to 'B' from 'B+' and put all ratings on
CreditWatch with negative implications. The CreditWatch negative
reflects that S&P could downgrade FQM in the coming months if a
longer-than-anticipated closure of the Panama mine constrained
FQM's liquidity and credit metrics.


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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
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Chapman, Editors.

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