/raid1/www/Hosts/bankrupt/TCRLA_Public/240313.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
Wednesday, March 13, 2024, Vol. 25, No. 53
Headlines
A R G E N T I N A
ARCOS DORADOS: Fitch Affirms 'BB+' LongTerm Foreign Currency IDR
ARGENTINA: Faces 'Tough Transition', Open to IMF's Ideas
ARGENTINA: Food Prices Have Risen by up to 70% Over Last 3 Mos.
ARGENTINA: Milei Takes Aim at Rivals Online
B R A Z I L
AZUL SA: CEO Says Brazil Aid to Airlines Key as Fuel Debacle Rages
C O S T A R I C A
COSTA RICA: Fitch Hikes LongTerm Foreign Currency IDR to 'BB'
D O M I N I C A N R E P U B L I C
[*] DOMINICAN REPUBLIC: Applies for Membership in Caricom
J A M A I C A
JAMAICA: Spent Less on Fuels, Lubricants for First 10 Mos. of 2023
MYSTIC MOUNTAIN: Sygnus to Collect its Principal
P U E R T O R I C O
LANDMARK COMMERCIAL: Seeks to Extend Plan Exclusivity to March 29
T R I N I D A D A N D T O B A G O
[*] TRINIDAD & TOBAGO: CAF Approves US$250,000 for Tobago Oil Spill
- - - - -
=================
A R G E N T I N A
=================
ARCOS DORADOS: Fitch Affirms 'BB+' LongTerm Foreign Currency IDR
----------------------------------------------------------------
Fitch Ratings has affirmed Arcos Dorados Holdings Inc.'s Long-Term
Foreign Currency Issuer Default Rating (IDR) and senior unsecured
notes at 'BB+'. In addition, Fitch has affirmed Arcos Dorados
B.V.'s senior unsecured notes at 'BB+'. The Rating Outlook is
Stable.
The affirmation reflects the expectation that Arcos Dorados will
continue in 2024 with solid operational performance across most of
its markets, adequate net leverage and ample liquidity. The
affirmation also reflects Fitch's expectation of continued organic
growth funded from internal cash flow generation which will
translate into positive FCF and stable net leverage metrics of
around 2.8x in the next two years.
KEY RATING DRIVERS
Strong Operating Performance: Arcos Dorados' operational metrics
remain solid. LTM revenues as of 3Q23 were nearly USD4.2 billion,
which is higher than the USD3.6 billion revenues reported in 2022.
Fitch estimates Arcos Dorados' EBITDA to be near USD490 million, on
average for the years ended 2023-2024, and for it to increase
towards USD500 million over the ratings horizon. New restaurant
openings, particularly in Brazil, in addition to a system-wide
increase in digital sales are expected to be the main drivers of
this growth. Brazil represented around 60% of total EBITDA as of
3Q23. Digital channels, which include Delivery, Mobile App and
self-order kiosks, represented around 50% of the company sales for
the same period.
Stable Leverage Trend: Fitch expects lease-adjusted net leverage to
remain stable around 2.8x over the forecast period (2023-2025) as
the company expands its restaurant footprint using its own cash
generation. Beyond that, leverage could improve further as EBITDA
contribution from new restaurants ramps up. The company also
benefited from debt derivatives gains that had a positive impact on
net debt, around USD50 million by YE 2023; the company's hedging
strategy with derivative instruments, has a notional of US 230
million.
Positive FCF: Fitch projects Arcos Dorados' overall FCF trend is
positive over the ratings horizon. Fitch expects capex to be
upwards of USD300 million in 2023-2024. Capex is mainly related to
store openings, modernization and maintenance. The company is
targeting to open more than 200 new restaurants between 2022 and
2024 in accordance with its agreements with McDonald's.
The company opened 81 restaurants in 2023 and expects to open 80 to
90 restaurants in 2024, with a pipeline composed of 90%
free-standing restaurants. Its Three D's Strategy of Digital,
Delivery and Drive thru continues to evolve and leverages the Latin
American quick service restaurant industry's. The company expects
to open the majority of these restaurants in Brazil and an even
number of openings between its other regions.
Country Ceiling: Arcos Dorados is headquartered in Argentina
(CCC-), but its cash flow generation is heavily concentrated in
Brazil (BB/Stable), which is estimated to account for approximately
40% of sales and 60% of EBITDA in 2023-2024. The Long-Term Foreign
Currency IDR is not constrained by Brazil's Country Ceiling (BB+),
given the company's ability to cover hard currency debt service
with cumulative cash flow from higher-rated countries, such as
Chile, Mexico, Colombia, Uruguay, and Panama.
Solid Business Profile: Arcos Dorados' ratings reflect its solid
business position as the sole franchisee of McDonald's restaurants
across Latin America. Arcos Dorados benefits from the McDonald's
brand but faces various regional economic challenges. The company
operated or franchised 2,339 McDonald's restaurants and 316 McCafes
in 20 countries as of 3Q23. About 70% of these restaurants were
operated by Arcos Dorados, while the remainder were franchised.
McDonald's Franchise Strength: The ratings also incorporate the
strength of McDonald's as a franchisor and the longstanding
relationship with Arcos Dorados' owners and management. The master
franchise agreement (MFA) sets strict strategic, commercial and
financial guidelines for Arcos Dorados' operations, which support
the operating and financial stability of the business and the
underlying value of McDonald's brand in the region.
DERIVATION SUMMARY
Arcos Dorados' ratings reflect its solid business position as the
sole franchisee of McDonald's restaurants across Latin America,
benefiting from the iconic McDonald's brand. The company faces the
economic challenges in the region. Most of Arcos Dorados' EBITDA is
generated in Brazil. The company's geographical diversification and
presence in several countries in Latin America outside of Brazil
and Argentina support the Foreign Currency IDR.
The business profile is constrained by the company's smaller size
relative to international peers such as Darden Restaurants, Inc.
(BBB/Stable). Arcos Dorados' size in terms of revenues and EBITDA
is more comparable to Alsea, S.A.B. de C.V. (BB/Stable), but Fitch
estimates Arcos Dorados' leverage is lower than Alsea's. The
company also reported lower profitability than its peers due to its
presence in less mature countries.
KEY ASSUMPTIONS
- EBITDA around USD490 million in average for 2023-2025;
- Capex at around USD300 million-USD350 million in 2023-2024;
- Dividend payments remain at current levels in 2023-2025;
- Lease-adjusted net leverage remains around 2.8x over the ratings
horizon.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Net lease-adjusted debt levels below 2.5x on a sustained basis;
- Maintaining strong liquidity;
- EBITDA margin improvements towards 15%, similar to higher rated
peers.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Net lease-adjusted debt levels exceeding 3.5x on a sustained
basis;
- Deteriorating liquidity position.
LIQUIDITY AND DEBT STRUCTURE
Strong Liquidity: Fitch views Arcos Dorados' liquidity as strong
due to its healthy cash position, committed bank lines and
manageable long-term debt maturity profile. The company's debt
consists primarily of two USD notes, a bond due in 2027 with an
outstanding balance of USD386 million, and a USD350 million
sustainability-linked note due in 2029. All the bonds are bullet.
The company had USD251 million in cash and cash equivalents as of
3Q23, and USD25 million of undrawn committed revolving credit
facility with JP Morgan. The company has no short-term debt as of
3Q23.
ISSUER PROFILE
Arcos Dorados is the world's largest independent McDonald's
franchisee in terms of system-wide sales, and operates the largest
quick service restaurant chain in Latin America and The Caribbean.
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 Prior
----------- ------ -----
Arcos Dorados B.V.
senior unsecured LT BB+ Affirmed BB+
Arcos Dorados
Holdings Inc. LT IDR BB+ Affirmed BB+
senior unsecured LT BB+ Affirmed BB+
ARGENTINA: Faces 'Tough Transition', Open to IMF's Ideas
--------------------------------------------------------
globalinsolvency.com, citing Reuters, reports that Argentina is
talking to the International Monetary Fund (IMF) about a possible
new financing program with different targets for the embattled
economy, U.S. Treasury Secretary Janet Yellen said after meeting
Economy Minister Luis Caputo.
The new government of libertarian President Javier Milei is willing
to take "very promising" steps to deal with the South American's
economy's underlying problems, Yellen told Reuters on after her
first meeting with Caputo, according to globalinsolvency.com.
Milei has pledged to reverse the crisis in Argentina - where
inflation is at 250% and a reported 57% of people live in poverty -
with tough austerity measures, a message that has gone down well
with markets and investors but created tension with unions and
regional governors, the report notes.
"They inherited an impossibly difficult situation, and I think the
steps that they have announced that they are willing to take are
very promising," Yellen said on the sidelines of a Group of 20
meeting in Brazil, the report relays. "It's going to be a really
tough transition as they try to get fiscal policy under control,"
he added.
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.
ARGENTINA: Food Prices Have Risen by up to 70% Over Last 3 Mos.
---------------------------------------------------------------
Buenos Aires Times relays that a new report said food prices in
Argentina have risen by as much as 75 percent in just the last
three months.
According to a report by the ISEPCI Social, Economic and Citizen
Policy Research Institute, the sector recording the biggest rise in
the Basic Food Basket came from grocery products (75.16 percent),
followed by fruits and vegetables (68.95 percent) and meats (62.01
percent), the report notes.
In the meantime, according to a monthly survey of 57 basic
products tracked by the ISEPCI in its neighbourhood price index
(covering 850 shops across 20 districts of Greater Buenos Aires),
in February food rose by 14.12 percent, according to Buenos Aires
Times.
A family of two adults and two small children in November 2023
needed 182,905.48 pesos to provide sufficient food for 30 days,
said the institute, the report relays. Three months on, in
February, the same family required 310,431.58 pesos to buy these
same products (+69.72 percent), the report relays.
Looking at the values of the Total Food Basket, which in addition
to food takes in a wider universe of products that are equally
essential for everyday life (healthcare, education, transport,
household rates, among others) the same family of four which in
November needed 393,243.07 pesos, in February needed 665,011.27
pesos - a difference of 261,768.20 pesos (+66.57 percent) to cover
the same expenses, the report specified, 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.
ARGENTINA: Milei Takes Aim at Rivals Online
-------------------------------------------
Buenos Aires Times reports that Argentina's outspoken ultra-liberal
president expresses himself online at frantic speed, using social
media sites as a both a platform for his "revolution" and an outlet
for his anger.
Buenos Aires Times relays that first, he fired off hundreds of
expletives against lawmakers, then came a verbose avalanche against
the nation's governors.
With reposts or likes, Argentina's ultra-liberal president
expresses himself through third parties, mostly users who are part
of a digital ecosystem that is aligned with his government,
according to Buenos Aires Times. Thus, he amplifies, praises,
unveils and reproduces announcements and directs attacks to his
adversaries, the report notes.
His volume is frantic. Since his inauguration on December 10 until
February 10, Milei has given about 14,000 likes and made 4,364
publications, of which only 111 were his own and the rest retweets,
according to a report by La Nacion, the report notes.
"Basically I use social networks at breakfast, lunch and at night,"
Milei said in an interview to LN+ channel. He added: "When I
travel, I get a little more intense."
He said this from Washington after participating in the
conservative CPAC conclave on February 24, the report relays.
According to an AFP study, during the four-day trip, Milei liked
some 2,300 publications and reproduced more than 1,100 posts -
among them, his meeting with former US president Donald Trump,
which he retweeted more than 100 times, the report discloses.
According to Ernesto Calvo, an Argentine political scientist based
in Washington, Milei's digital strategy "takes a page from Trump's
script," although he noted that the Argentine leader's
communication is "more erratic than the one seen in the United
States," the report relays
Milei claims that he manages his own X account, but Clavo questions
this due to the excessive "level of activity," the report notes.
The president posted a photo made with Artificial Intelligence
showing the Statue of Liberty with his face imposed upon it on
Instagram - one more of many retouched images of himself
circulating on his networks since the presidential campaign, the
report notes.
'The Troll Influencer'
"Milei embodies the profile of the troll influencer in tune with
today's digital culture," argued sociologist Silvio Waisbord in an
essay published this month in Anfibia magazine, the report
discloses.
"Trolls humiliate others, adversaries and anyone they come across.
They are provocateurs who enjoy insulting and belittling. They
traffic in ironies and sarcasm that reflect feeling superior to
their targets," he added.
When his reform package failed in Congress on February 7, Milei
published lists of the deputies who voted against it, with their
names and photos, branded them "delinquents" and described
Parliament as a "rat's nest," the report relays.
He then liked posts demanding the resignation of two politicians
who had been called "traitors." The departure of both was confirmed
hours later, the report notes.
One of the president's most recent confrontations on X was with the
governor of Chubut Province, Ignacio Torres, who temporarily
threatened to cut off national oil supplies if the national
government did not disburse funds it had withheld, the report
says.
Milei then shared a meme of a scene from a pornographic movie
showing a young woman with Torres' face superimposed on it and four
muscular men behind her with the faces of pro-government
journalists, the report relays.
Buenos Aires Times discloses that the second post he liked, which
was later removed from X, showed an edited image of the governor
with the features of a person with Down syndrome.
The Down Syndrome Association of Argentina (ASDRA) expressed its
rejection in a statement in which it recalled that the president
had previously used the word "mogolico" as an insult, the report
notes.
Amnesty International Argentina also repudiated both posts: "A
president cannot endorse violent speeches and criminal practices,"
the NGO wrote, Buenos Aires Times relays.
'They Don't See It'
The expression "they don't see it" is a slogan that emerged in
social networks that Milei's followers installed in the public
discourse. It refers to those who, from the opposition, do not
understand or do not value the course taken by the government, the
report discloses.
"The Kirchneristas still do not see it," a publication replicated
by Milei stated on X, highlighting a survey on his positive image,
the report relays.
Both the self-praise to his administration, which considers him as
"the best president in history," and the attacks on his opponents
are reproduced in a context of increasing social conflict, the
report notes.
These are reactions to the economic plan that Milei called
"chainsaw and blender": a quest to cut the fiscal deficit with a
drastic reduction of public spending and a liquefaction of salaries
and pensions driven by inflation of more than 250 percent
year-on-year, the report relays.
"The question is whether he can govern with such a violent
discourse against politics," Calvo told AFP, the report notes.
A survey by the Aresco consulting firm, published by Milei on
social media, gives him a 56 percent positive image, the same
number he obtained in the run-off, the report relays.
Buenos Aires Times discloses that another study by the consulting
firm Opinaia indicates that the president's image fell seven points
between December and February, from 59 percent to 52 percent.
"If his popularity drops, if his political position is weaker . . .
if at some point he needs any of these actors or if these actors
eventually see blood in the water, then this is going to happen,"
Calvo said. "At that moment the political cost is greatly
magnified," 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
===========
AZUL SA: CEO Says Brazil Aid to Airlines Key as Fuel Debacle Rages
------------------------------------------------------------------
globalinsolvency.com, citing Bloomberg News, reports that a $1.2
billion credit line from the government expected as soon as this
month will be key for Brazil's troubled airlines as they lobby for
lower jet fuel costs and for help clamping down on passenger
litigation, Azul SA Chief Executive Officer John Peter Rodgerson
said.
Unlike in the U.S. and Europe, Latin American nations offered
little rescue for the sector during the pandemic, leaving the
region's airlines to deal with the crisis on their own, according
to globalinsolvency.com.
Several buckled: Avianca Holdings SA, Latam Airlines Group SA and
Grupo Aeromexico SAB filed for bankruptcy in 2020. Brazil's Gol
Linhas Aereas Inteligentes SA sought protection from creditors in
late January after a dozen debt exchanges, the report notes.
Gol's Chapter 11 filing “changed the dialogue" with the
government, Rodgerson said in an interview at Bloomberg's Sao Paulo
offices, the report relays. “Nobody is looking for government
aid to get out of the mess."
Azul, Latam and Gol, the country's three largest carriers, are
involved in the talks, and the credit line - of between 4 billion
reais ($807 million) and 6 billion reais ($1.2 billion) - would be
divided among them, according to Rodgerson, the report relays.
Ports and Airports Minister Silvio Costa Filho, who's leading the
talks within the government, shared the details on size and timing
of the aid, local media reported. Other asks, which include
limiting the amount of litigation they are subject to and lower
fuel prices, will likely take longer, he added, the report notes.
As reported in the Troubled Company Reporter-Latin America in July
2023, Fitch Ratings downgraded Azul S.A.'s (Azul) Long-Term Foreign
and Local Currency Issuer Default Ratings (IDRs) to 'RD' from 'C',
following the conclusion of its exchange offer, which Fitch
considered a distressed debt exchange (DDE). Simultaneously, Fitch
has upgraded Azul's IDRs to 'B-' from 'RD' to reflect its
post-restructuring risk profile.
===================
C O S T A R I C A
===================
COSTA RICA: Fitch Hikes LongTerm Foreign Currency IDR to 'BB'
-------------------------------------------------------------
Fitch Ratings has upgraded Costa Rica's Long-Term Foreign-Currency
Issuer Default Rating (IDR) to 'BB' from 'BB-' with a Stable Rating
Outlook.
KEY RATING DRIVERS
Rating Upgrade: The upgrade reflects the ongoing commitment to the
fiscal rule that is anchoring continued structural improvement in
Costa Rica's fiscal position, as well as robust economic growth and
an improved external liquidity position. The tight fiscal stance
has supported a continued decline in the government's debt
trajectory and has contributed to an improvement in borrowing
costs. Economic growth has been robust and exceeded its prior
projections.
Costa Rica's rating is supported by structural strengths relative
to the 'BB' category, including strong governance indicators and
high per-capita income relative to peers. This is counterbalanced
by still high interest payments that are a source of fiscal
rigidity and a track record of political gridlock hindering reforms
and financing flexibility.
Fiscal Framework Entrenched: Entrenchment of the fiscal rule,
strict fiscal targets established under a law authorizing Eurobond
issuance passed in 2022, and an IMF program have been instrumental
in the continued improvement in Costa Rica's credit profile.
Changes to the rule have been modest, and one measure that would
have removed capital expenditure and interest from the cap in
spending growth was not implemented in 2023. Institutional checks
and balances and a gridlock-prone legislature are likely to prevent
any major changes to the established fiscal framework.
Gridlock Remains a Challenge: Fragmentation remains a feature of
Costa Rican politics, with the Congress divided among six political
parties. The Chaves administration's PSD party is relatively weak
and has had little success in forming alliances, and its agenda may
prove hard to advance prior to elections in February 2026. A
constitutional reform that links authorization for external
financing to approval of the budget would improve financing
flexibility but could be difficult to gain traction against the
current political backdrop, as could be a proposal to privatize
state-owned banks Banco de Costa Rica and BICSA and part of
insurance company INS. Crime and insecurity have also emerged as
key issues, as homicide rates climbed to record levels in 2023.
Commitment to Fiscal Rule: The government continues to comply with
the fiscal rule, which caps the growth of total expenditure, rather
than just current expenditure, while government debt to GDP remains
above 60%. The primary surplus fell to 1.6% of GDP (IMF target of
1.3%) from 2.1% in 2022 as one-off revenues transferred from
decentralized agencies to the central government were not repeated.
The overall central government balance remained in deficit,
increasing to 3.3% of GDP, from 2.5% in 2022, reflecting the
smaller primary surplus and larger interest burden.
Fitch forecasts the primary surplus will rise to 1.85% of GDP in
2024 (2.7% overall deficit) in line with the budget and limit set
in the Eurobond authorization law. Further consolidation is likely
to come from tight expenditure restraint imposed by the fiscal rule
and falling interest costs, rather than additional revenue
measures. However, further compression of investment and social
spending to comply with the rule poses a medium-term challenge and
is increasing budgetary rigidity.
Improved Financing Flexibility: The government returned to
international capital markets in 2023 for the first time since
2019, issuing USD3 billion as authorized under the multiyear
(2023-2025) borrowing plan. This has also reduced pressure in the
domestic market, where the government has concentrated more
issuance at longer maturities (15 and 30 years) to gradually extend
the average life of domestic debt. Financing needs in 2024 (5.1% of
GDP in debt maturities and 2.7% CG deficit) should be well covered
by external bond issuance (USD1 billion), multilateral sources, and
rollover and some additional funding in the domestic market.
High Interest Burden Should Improve: Borrowing costs have moved in
a favorable direction for sovereign debt dynamics. External spreads
have compressed significantly, while local-currency yields have
fallen to historic lows, as the fiscal situation and treasury
management have improved. Expected US Fed rate cuts will reduce the
costs on floating-rate debt. Fitch projects the interest bill will
fall to 4.2% of GDP by 2025 from 4.8% in 2023. The interest to
revenue ratio continues to be a rating weakness, at an estimated
18.6% in 2023 at the general government level and a much higher
31.5% at a central government level, compared to a 'BB' median of
9.6%. However, Fitch projects it will decline to 16.0% by 2025.
Debt Declining: Central government debt fell to 61.4% of
Fitch-estimated GDP in 2023, from 63.0% in 2022, a result of strong
real GDP growth, the primary surplus, and currency appreciation.
Fitch expects debt to continue to decline to 61.0% in 2024, above
the 60% threshold (below which the spending cap will become less
restrictive by excluding capex), but could be lower should the
government rely on greater drawdown of deposits built up over the
last two years. On a general government basis (consolidating the
holdings of the social security institute), Fitch forecasts debt to
fall to 55.1% of GDP in 2024, slightly above the current 'BB'
median of 52%.
Robust Growth: Fitch estimates economic growth of 5.4% in 2023,
significantly above the 2.5% forecast at its previous review,
driven in particular by robust external demand, a recovery in
investment, and stronger household consumption. Economic activity
in the Free Trade Zones continues to be dynamic, while growth in
the rest of the economy remains slower. Fitch forecasts growth of
3.7% in 2024 and 3.5% in 2025 as Costa Rica stands to benefit from
the global "near-shoring" trend, especially in the healthcare and
service-related export sectors. Strong FDI inflows could be on
track to surpass the record USD3.7 billion in 2022 and could be
supportive of higher potential growth.
Balance-of-Payments Improvement: Fitch estimates the current
account deficit reached 1.3% of GDP in 2023, down from 3.6% in 2022
and below the 10-year average of 3.0%. The trade balance improved
on surging free-trade-zone exports (22.0%), whereas other exports
have grown more modestly (4.8%). The improved current account has
been accompanied by stronger capital inflows. Foreign direct
investment inflows remain robust, at around 4.5% of GDP.
Reserve Accumulation: Strong balance-of-payments dynamics have
resulted in substantial currency appreciation and reserve
accumulation. The CRC appreciated 25% between end-2021 and February
2024, reaching its strongest level in over a decade. The central
bank (BCCR) has allowed greater flexibility in the currency in
recent years but has intervened to manage volatility and build
reserves, lifting these to USD13.2 billion by end-2023 (nearly
doubled their stock from in 2021) and USD13.7 billion as of
end-February. This reserve build-up has lifted adequacy metrics to
historic highs. As of 2023, reserves cover an estimated 4.4 months
of current external payments and 140% of the IMF's reserve adequacy
(ARA) metric.
Inflation in Negative Territory: Costa Rica has experienced the
region's most dramatic turnaround in inflation, which fell from
7.9% at end-2022 to -1.8% at end-2023. The BCCR has adapted
monetary policies proactively, being the first in the region to
reduce its policy rate in March 2023 and delivering 325bp since
then, to 5.75%.
Country Ceiling: The revision of Costa Rica's Country Ceiling to
'BBB-' from 'BB' reflects Fitch's view that risks of FX controls
are mitigated given strong central bank reserves and broader
external liquidity position, and trade integration under the
US-CAFTA agreement. The BCCR has allowed for greater currency
flexibility in recent years, prompting the IMF to change its
classification of the exchange-rate regime from "crawl-like
arrangement" to "floating" and helping the score in its Country
Ceiling Model (CCM).
ESG Governance: Costa Rica has an ESG Relevance Score of '5' for
Political Stability and Rights and '5+' for the Rule of Law,
Institutional and Regulatory Quality and Control of Corruption.
These scores reflect the high weight that the World Bank Governance
Indicators (WBGI) have in its proprietary Sovereign Rating Model.
Costa Rica has a high WBGI ranking at 71, reflecting its long track
record of stable and peaceful political transitions, well
established rights for participation in the political process,
strong institutional capacity, effective rule of law and a low
level of corruption.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Public Finances: Fiscal policy reversal that results in an upward
debt trajectory and undermines fiscal financing flexibility;
- External Finances: Evidence of external liquidity stress; for
example, a sharp decline of international reserves.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Public Finances: Sustained decline in government's debt/GDP ratio
and interest to revenue ratio;
- Structural Factors: Evidence of reduced political gridlock that
supports progress on reforms and ensures financing flexibility.
- External Finances: Sustained improvement in external liquidity
buffers.
SOVEREIGN RATING MODEL (SRM) AND QUALITATIVE OVERLAY (QO)
Fitch's proprietary SRM assigns Costa Rica a score equivalent to a
rating of 'BBB' on the Long-Term Foreign-Currency (LT FC) IDR
scale.
Fitch's sovereign rating committee adjusted the output from the SRM
score to arrive at the final LT FC IDR by applying its QO, relative
to SRM data and output, as follows:
Structural: -2 notches; reflects a long track record of
institutional gridlock that has hindered timely progress on
necessary reforms and external financing, which is not fully
captured in the high governance scores that feed into the SRM.
Public Finances: -1 notch; reflects an adverse fiscal structure due
to a high central government interest to revenue ratio. Central
government fiscal metrics are much weaker than the general
government metrics that feed into the SRM, signalling greater
fiscal financing and rigidity challenges.
Fitch has removed a -1 notch previously applied in External
Finances, given improvement in external metrics and greater FX
flexibility.
Fitch's SRM is the agency's proprietary multiple regression rating
model that employs 18 variables based on three-year centered
averages, including one year of forecasts, to produce a score
equivalent to a LT FC IDR. Fitch's QO is a forward-looking
qualitative framework designed to allow for adjustment to the SRM
output to assign the final rating, reflecting factors within its
criteria that are not fully quantifiable and/or not fully reflected
in the SRM.
COUNTRY CEILING
The Country Ceiling for Costa Rica is 'BBB-,' two notches above the
LT FC IDR. This reflects strong constraints and incentives,
relative to the IDR, against capital or exchange controls being
imposed that would prevent or significantly impede the private
sector from converting local currency into foreign currency and
transferring the proceeds to non-resident creditors to service debt
payments. The BCCR has allowed for greater currency flexibility in
recent years, prompting the IMF to change its classification of the
exchange-rate regime from "crawl-like arrangement" to "floating",
and helping the score in its CCM.
Fitch's CCM produced a starting point uplift of +2 notches above
the IDR. Fitch's rating committee did not apply a qualitative
adjustment to the model result.
ESG CONSIDERATIONS
Costa Rica has an ESG Relevance Score of '5' for Political
Stability and Rights, as WBGI have the highest weight in Fitch's
SRM and are therefore highly relevant to the rating and a key
rating driver with a high weight. As Costa Rica has a percentile
rank above 50 for the respective governance indicator, but has a
track record of political gridlock that is highly relevant to a -2
QO notch adjustment, this has a negative impact on the credit
profile.
Costa Rica has an ESG Relevance Score of '5' [+] for Rule of Law,
Institutional & Regulatory Quality and Control of Corruption as
WBGI have the highest weight in Fitch's SRM and are therefore
highly relevant to the rating and are a key rating driver with a
high weight. As Costa Rica has a percentile rank above 50 for the
respective governance indicators, this has a positive impact on the
credit profile.
Costa Rica has an ESG Relevance Score of '4' [+] for Human Rights
and Political Freedoms as the Voice and Accountability pillar of
the WBGI is relevant to the rating and a rating driver. As Costa
Rica has a percentile rank above 50 for the respective governance
indicator, this has a positive impact on the credit profile.
Costa Rica has an ESG Relevance Score of '4' [+] for Creditor
Rights as willingness to service and repay debt is relevant to the
rating and is a rating driver for Costa Rica, as for all
sovereigns. As Costa Rica has record of 20+ years without a
restructuring of public debt, which is captured in its SRM
variable, this has a positive impact on the credit profile.
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
----------- ------ -----
Costa Rica LT IDR BB Upgrade BB-
ST IDR B Affirmed B
LC LT IDR BB Upgrade BB-
LC ST IDR B Affirmed B
Country Ceiling BBB- Upgrade BB
senior
unsecured LT BB Upgrade BB-
===================================
D O M I N I C A N R E P U B L I C
===================================
[*] DOMINICAN REPUBLIC: Applies for Membership in Caricom
---------------------------------------------------------
Dominican Today reports that Guyanese President Irfaan Ali
announced that the Dominican Republic and Martinique have applied
for membership in the Caribbean Community (Caricom) during the
community's summit in Georgetown.
"The process for these countries to become associate members has
already begun," Ali said in his closing speech at the summit, which
was broadcast on his social media networks, according to Dominican
Today.
"The (Caricom) secretariat will work with both Martinique and the
Dominican Republic to comply with the procedural aspect of things,
so that by the time we reach July (the month of the next regular
meeting), the full mechanism will be in place and the
recommendations will come," the Guyanese leader said, the report
notes.
The last time talks were suspended was due to the large-scale
deportation of Haitians by the Dominican Republic, the report
relays.
Caricom members are Antigua and Barbuda, Barbados, Bahamas, Belize,
Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saint Kitts
and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname
and Trinidad and Tobago, the report notes.
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.
=============
J A M A I C A
=============
JAMAICA: Spent Less on Fuels, Lubricants for First 10 Mos. of 2023
------------------------------------------------------------------
RJR News reports that Jamaica spent less on the importation of
"Fuels and Lubricants" for the first 10 months of 2023.
The Statistical Institute of Jamaica says 13.7 per cent less money
was spent, amounting to US$1.71 billion, according to RJR News.
That's compared to the $1.99 billion spent in the corresponding
period in 2022, the report notes.
This was due to a 14 per cent decline in the value of imports in
the category 'Other Fuels and Lubricants,' the report relays.
Expenditure on 'Crude Oil' fell by 23.5 per cent, to US$434.8
million, 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.
MYSTIC MOUNTAIN: Sygnus to Collect its Principal
------------------------------------------------
Jamaica Observer reports that Sygnus Credit Investments Limited
(SCI) is looking to collect its principal on its prior Mystic
Mountain deal as the firm gets ready to reopen in short order.
Mystic Mountain was declared bankrupt in February 2022 due to
defaulting on a bond, according to Jamaica Observer. Sygnus Credit
had US$1-million exposure to the tourism attraction business with
external third-party securities, the report notes. Following
numerous court hearings, Northjam Island Tours Limited became the
new owners of the asset as it offered US$13 million for the
business and its leases, the report relays. Mystic Mountain
welcomed more than 100 employees in its relaunch effort last month
as it looks to get back on stream after being shuttered late last
year, the report discloses.
As such, SCI expects to receive the payout within the next month as
it looks to close this portfolio transaction, the report relays.
Jamaica Observer notes that Jason Morris, chief investment officer
at Sygnus Capital Limited, noted that SCI was not as optimistic
regarding recovery of funds in MV Cayman in the Cayman Islands and
was moving to secure the assets for a mining and quarrying company.
SCI's non-performing investments ratio was only 1.1 per cent of
its entire US$128.85-million private credit portfolio, the report
relays.
"We're working through the legal process. For Mystic Mountain, I
assume that this will be very soon. Hopefully, by the time we
reconvene for the next report of SCI, just based on the nature of
how things are unfolding, I don't think that there are many
stumbling blocks to clearing up Mystic Mountain," Morris explained
at SCI's investor briefing on February 15, the report notes.
Sygnus Capital is the investment manager of SCI.
Jamaica Observer relays that SCI had filed a claim in the Supreme
Court of Jamaica against former Mystic Mountain trustee Debbie-Ann
Gordon over her position in disallowing its claim on Mystic
Mountain during the bankruptcy proceedings. Gordon was granted an
extension by the Court of Appeal on February 12 to apply for
permission to appeal each legal case she's involved in, the report
relays. There was a case management conference on March 5.
With Sygnus Credit set to receive these proceeds, it plans to
deploy the funds to some of its committed deals in its growing
pipeline of deal flow, the report discloses. Morris noted that
SCI's 'pipeline' of deals in Jamaica was US$75 million prior to it
completing its recent preference share issue, the report says.
However, since then, he noted that demand has doubled with its
US$50.25 million (J$7.78 billion) preference share raise attracting
more attention. SCI will also receive US$8.50 million from Express
Catering Limited whose recently oversubscribed bond offer closed on
March 1, the report relays.
This also comes at a time when it is looking to sponsor a
US$100-million impact investing fund in Puerto Rico which will be
expounded on further in its third-quarter report, Jamaica Observer
relays. The move comes amidst SCI's recent US$3-million investment
in the Sygnus Credit Investments Puerto Rico Fund LLC for an
additional 0.58 per cent stake during the second quarter, the
report says. Sygnus Credit now owns 95.58 per cent of the Puerto
Rico Fund, which in turn owns 100 per cent of Acrecent Financial
Corporation.
"We're hunkering down trying to, let's say, get to US$500 million
in AUM across Puerto Rico and the English-speaking Caribbean
region, the report notes. For example, we're looking at sponsoring
another private credit investment vehicle in an English-Speaking
Caribbean territory," Morris added while reserving further
discussion on this new private credit vehicle, the report relays.
SCI's interest income reached a new record of US$3.94 million in
the second quarter as it earned more from its growing portfolio of
investments which now stands at 35 companies. Its overall income or
total revenue was up 21 per cent to US$2.80 million during the
second quarter with fee income making up 8.4 per cent of that
figure, the report notes. Despite total expenses rising 19 per
cent to US$1.23 million, its profit before tax came in at US$1.57
million with net profit at US$1.53 million, a 25 per cent
improvement over the prior year, the report says.
For the overall six months, SCI's total income is down four per
cent to US$4.70 million as its fair value gains on investments was
cut drastically from US$1.49 million to US$118,094, the report
discloses. This was as a result of the fair value loss from its
Puerto Rico Fund in the first quarter, the report says. Total
expenses grew 20 per cent to US$2.30 million as it paid a larger
amount in management and performance fees to Sygnus Capital, the
report notes. Net profit is down 20 per cent to US$2.28 million
with basic earnings per share (EPS) at US$0.0039, the report notes.
The trailing 12 months EPS is US$0.0078, the report relays.
SCI's total assets were up 26 per cent to US$206.63 million which
was driven largely by the capital raise which pushed its cash to
US$43.45 million. Total liabilities grew 44 per cent to US$136.15
million as a result of the preference shares issue while
shareholders equity marginally improved to US$70.48 million, teh
report relays.
The company declared a US$0.00263 dividend totalling US$1.55
million to be paid on April 5 to shareholders on record as of March
28, the report relays. This brings the trailing dividend payments
to US$0.00535 and translates a dividend yield of 5.95 per cent. SCI
has not executed any additional share buy back purchases since June
2023 under its US$9-million share buy-back program, the report
relays.
"Obviously, the path to get to the scale that we want is not a
straight line. You're going to have twists and turns, but what we
want to be very clear about is that SCI is not about just being a
small thing. We want to be the dominant force in private credit
and alternative investments in the Caribbean territory," Morris
closed, the report adds.
=====================
P U E R T O R I C O
=====================
LANDMARK COMMERCIAL: Seeks to Extend Plan Exclusivity to March 29
-----------------------------------------------------------------
Landmark Commercial Centers Development Inc. asked the U.S.
Bankruptcy Court for the District of Puerto Rico to extend its
exclusivity periods to file a plan of reorganization and obtain
acceptance thereof to March 29 and May 28, 2024, respectively.
The Debtor asserts that it has acted in good faith and has been
approaching creditors in order to reach agreements that are
mutually beneficial. The present extension grants the Debtor a
necessary timeframe not only to continue negotiations with
creditors but also evaluate the claim presented just a few days ago
and construct a disclosure statement and plan of reorganization
that would allow creditors to determine whether to accept the
same.
The Debtor anticipates that the requested 45-day extension of the
Exclusive Periods will allow the company sufficient time to
complete verify the FirstBank claim, continue settle negotiations
and proffers to creditors, and reconcile all efforts in the best
interests of the estate and creditors, with their intent to build
up a plan to be proposed.
Additionally, Debtor has filed all required Monthly Operating
Reports to date and has no recurring bills past due as reflected
therein.
The Debtor asserts that it is not seeking an extension of their
Exclusive Periods to pressure creditors. To the contrary, the
Debtor has cooperated and worked constructively and in good faith
with all of its officers in the four months since the filing to
comply with all requirements, filing and duties, and resolve claims
through consent. To this date the Debtor's efforts have been aimed
towards preserving Debtor's operations, reconciling them with this
ongoing proceeding. Efforts with creditors are ongoing at this
juncture.
The Debtor further asserts that it will use these extended
Exclusive Periods to continue to negotiate with interested parties
to reach a reorganization or, at the very least, propose in good
faith a plan that maximizes value for all. Debtor has acted and
will continue in good faith, being forthcoming in diligence,
analysis, and collaboration with all parties. The Debtor's
substantial efforts in negotiating with its creditors and
administering its case supports the extension of the Exclusive
Periods.
Landmark Commercial Centers Development Inc., is represented by:
Wigberto Lugo Mender, Esq.
LUGO MENDER GROUP, LLC
100 Carr. 165, Suite 501
Guaynabo, PR 00968-8052
Telephone: (787) 707-0404
Facsimile: (787) 707-0412
Email: a_betancourt@lugomender.com
About Landmark Commercial Centers Development
Landmark Commercial Centers Development Inc. is primarily engaged
in renting and leasing real estate properties.
Landmark Commercial Centers Development filed its voluntary
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
D.P.R. Case No. 23-03338) on Oct. 16, 2023. The petition was
signed by Jose A. Feliciano-Ruiz as president. At the time of
filing, the Debtor disclosed $6,555,072 in assets and $8,609,063 in
liabilities.
Judge Edward A Godoy presides over the case.
Wigberto Lugo Mender, Esq. at Lugo Mender Group, LLC, is the Debtor
as counsel.
=====================================
T R I N I D A D A N D T O B A G O
=====================================
[*] TRINIDAD & TOBAGO: CAF Approves US$250,000 for Tobago Oil Spill
-------------------------------------------------------------------
Trinidad Express reports that CAF - Development Bank of Latin
America and the Caribbean - has approved a donation of US$250,000
to Trinidad and Tobago to alleviate the effects of the oil spill
that has affected the coast of Tobago.
A release from CAF posted online by the Ministry of Finance said
that in a letter from executive president of CAF Sergio
Diaz-Granados to Prime Minister Dr Keith Rowley, Diaz-Granados
announced the immediate donation, according to Trinidad Express.
"CAF stands in solidarity with T&T and offers all its technical and
financial tools to support the Government in facing the effects of
the oil spill on the country's coasts and achieving a prompt
solution to the problem," said Díaz-Granados, the report notes.
The release added that CAF aims to contribute through the
appropriate channels deemed by the Government, the report relays.
It also reiterated its commitment as a "strategic ally for the
development of its member countries," the report discloses.
Responding to Diaz-Granados' letter was Minister of Finance Colm
Imbert, who said he was "very appreciative and truly grateful" for
the financial and moral support extended by CAF, the report adds.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.
Copyright 2024. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
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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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* * * End of Transmission * * *