/raid1/www/Hosts/bankrupt/TCRLA_Public/240520.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, May 20, 2024, Vol. 25, No. 101
Headlines
A R G E N T I N A
ARGENTINA: Buenos Aires Book Fair Attendance Down 10%
ARGENTINA: IMF Paves Way for New Funds
ARGENTINA: Monthly Inflation Cooled for Fourth Straight Month
ARGENTINA: Monthly Inflation Rate Slows to Single Digit in April
IRSA INVERSIONES: Fitch Affirms 'B-' LongTerm IDRs, Outlook Stable
B E R M U D A
SIGNET JEWELERS: Fitch Hikes LongTerm IDR to 'BB+', Outlook Stable
B R A Z I L
BRAZIL: Central Bank Chief Defends Decision to Slow Rate Cuts
BRAZIL: Central Bank Sees More Restrictive Monetary Policy
E C U A D O R
GUAYAQUIL MERCHANT: Fitch Affirms 'BB-' Rating on 2019 Notes
P U E R T O R I C O
SERVICE PROPERTIES: Moody's Cuts Unsecured Notes Rating to 'B2'
X X X X X X X X
[*] BOND PRICING: For the Week May 13 to May 17, 2024
- - - - -
=================
A R G E N T I N A
=================
ARGENTINA: Buenos Aires Book Fair Attendance Down 10%
-----------------------------------------------------
Buenos Aires Times reports that Buenos Aires' famed International
Book Fair is no outlier when it comes to Argentina's economic
crisis: attendance was down 10 percent this year compared to last
year.
The 48th edition of the Feria del Libro Internacional de Buenos
Aires had a total of 1,126,351 visitors, compared to the 1.245
million that attended in 2023, according to data from event
organisers Fundacion El Libro.
Tickets this year were hardly expensive, ranging from 3,500 pesos
to 5,000 pesos. Those entering from 8pm to 10pm were even allowed
to enter for free.
As for sales, the numbers were less auspicious. According to
publishers, there was a 30-to 50-percent decrease from last year.
Still, this year's edition certainly made headlines. The fair took
place amid a bitter dispute with the government and, in particular,
President Javier Milei, who was criticised in the event's inaugural
speeches made by the president of Fundacion El Libro Alejandro
Vaccaro and acclaimed author and writer Liliana Heker.
President Milei was due to present his latest book at the event,
though he eventually cancelled, alleging "Kirchnerite sabotage."
In all, the fair hosted 328 stands and 672 booksellers, both local
and international, featuring 1,620 publishing houses. The
exhibition was broken down into nine themed pavilions and 12 event
halls, with 10 auditoriums.
International participants included the presence of 11 countries
(Armenia, Brazil, Chile, Italy, Cuba, Uruguay, Peru, Paraguay,
Ecuador, Spain and Ukraine). On the other hand, 10 Argentine
provinces and two cities, including Buenos Aires and Lisbon, had
their own space at the event.
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 March 15, 2024, raised its local currency
sovereign credit ratings on Argentina to 'CCC/C' from 'SD/SD' and
its national scale rating to 'raB+' from 'SD'. S&P also raised its
long-term foreign currency sovereign credit rating to 'CCC' from
'CCC-' and affirmed its 'C' short-term foreign currency rating. The
outlook on the long-term ratings is stable. In addition, S&P
revised its transfer and convertibility assessment to 'CCC' from
'CCC-'.
S&P said the stable outlook on the long-term ratings balances the
risks posed by pronounced economic imbalances and policy
uncertainties with the favorable change in near-term debt service
obligations. S&P also expect no further debt exchanges that it
would likely consider to be distressed.
Fitch Ratings 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: IMF Paves Way for New Funds
--------------------------------------
Buenos Aires Times reports that the International Monetary Fund
(IMF) has announced that it has signed off on an eighth quarterly
review of Argentina's US$44-billion credit program, paving the way
for the release of almost US$800 million in fresh funds.
The staff-level agreement is a tacit endorsement of President
Javier Milei's austerity measures, which are intended to balance
national accounts and tackle runway inflation nearing 300 percent
per annum, according to Buenos Aires Times.
The IMF said in a statement that Milei had made
"faster-than-anticipated progress in restoring macroeconomic
stability" and praised the government for putting Argentina's
massive loan programme "firmly back on track," the report relays.
Once the review of the loan deal is rubber-stamped by the Fund's
executive board in the coming weeks, Argentina will receive a batch
of fresh funds, which will allow it to meet repayments owed to the
Fund, the report discloses.
An IMF spokesperson confirmed that the staff-level agreement means
Argentina is on track to receive a payout of roughly US$792 million
in the coming weeks, the report says.
The announcement will be well-received by Milei, who was elected on
a pledge to tackle runaway inflation, improve stagnant growth rates
and tackle rising poverty, the report relays.
Milei's economic reform programme has been praised by international
institutions but labour unions have called a number of strikes
since his election to voice their opposition to the austerity
plans, the report notes.
The report relays that nation's huge umbrella union grouping, the
CGT, staged a nationwide general strike - the second of Milei's six
months in office.
Since taking office last December, the President has embarked upon
a strict campaign of austerity, the report discloses. Public
spending cuts allowed the government to record a budget surplus in
the first quarter of the year for the first time since 2008, but
those advances came at the cost of thousands of lay-offs, rising
utility rates and the deterioration of wages and pensions, the
report relays.
Milei insists his "plan is working," but critics say his
government's few wins have come at the cost of the poor and working
classes, and are unlikely to last, the report relays.
'Back on Track'
In its statement, the IMF praised the Milei government for putting
Argentina's loan programme "firmly back on track," the report
discloses.
The Milei administration's "decisive implementation" of its
stabilization plan had "resulted in faster-than-anticipated
progress in restoring macroeconomic stability," said the Fund's
technicians, the report discloses.
"Notable results include the first quarterly fiscal surplus in 16
years, rapidly falling inflation, a turnaround in international
reserves, and sovereign spreads near multi-year lows," it added.
Alongside economic progress, the Argentine authorities have also
"made significant efforts to scale up social support for vulnerable
young mothers and children and protect the purchasing power of
pensions," IMF staff said, the report says.
"Progress continues in broadening the political and societal
support for these efforts and in tackling vested interests," it
added.
However, it warned that the quality of the adjustment and
Argentina's monetary framework must be improved, the report notes.
Despite the praise, continued efforts are needed "to improve the
quality and fairness of fiscal consolidation, fine-tune monetary
and exchange rate policy frameworks, and address bottlenecks to
growth," said the IMF, the report relays.
Addressing challenges, the IMF said that "social assistance" should
be "strengthened as needed" and warned that blocks on productivity,
private investment and formal employment must be tackled, 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 March 15, 2024, raised its local currency
sovereign credit ratings on Argentina to 'CCC/C' from 'SD/SD' and
its national scale rating to 'raB+' from 'SD'. S&P also raised its
long-term foreign currency sovereign credit rating to 'CCC' from
'CCC-' and affirmed its 'C' short-term foreign currency rating. The
outlook on the long-term ratings is stable. In addition, S&P
revised its transfer and convertibility assessment to 'CCC' from
'CCC-'.
S&P said the stable outlook on the long-term ratings balances the
risks posed by pronounced economic imbalances and policy
uncertainties with the favorable change in near-term debt service
obligations. S&P also expect no further debt exchanges that it
would likely consider to be distressed.
Fitch Ratings 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: Monthly Inflation Cooled for Fourth Straight Month
-------------------------------------------------------------
Patrick Gillespie at Bloomberg News reports that monthly inflation
in Argentina slowed in April for the fourth straight month,
dropping into single-digit territory for the first time in Javier
Milei's Presidency.
Consumer prices in April rose 8.8 percent in April from March, in
line with economists' expectations, according to Bloomberg News.
From a year ago, inflation accelerated a notch to 289.4 percent,
according to government data published, Bloomberg News relays.
Utilities, communication and clothing categories posted the largest
monthly price increases, Bloomberg News notes.
Milei's shock-therapy economic plan continues to tame inflation at
the cost of a deepening recession that could provoke higher
unemployment, Bloomberg News discloses. Argentina's Central Bank
has consistently cut interest rates in recent months in an effort
to end money printing that was a result of high interest payments
owed to banks and other institutions stockpiling into the monetary
authority's one-day notes, Bloomberg News says.
Bloomberg News relays that while Milei has achieved monthly fiscal
surpluses, he's cut almost all federal funding to public works
projects and slashed spending on social security, public sector
wages and other programs. Construction and manufacturing employers
surveyed by the government expect to fire more workers than they
hire in the second quarter, Bloomberg News relates.
Economists polled by the Central Bank see the economy contracting
3.5 percent this year, Bloomberg News 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 March 15, 2024, raised its local currency
sovereign credit ratings on Argentina to 'CCC/C' from 'SD/SD' and
its national scale rating to 'raB+' from 'SD'. S&P also raised its
long-term foreign currency sovereign credit rating to 'CCC' from
'CCC-' and affirmed its 'C' short-term foreign currency rating. The
outlook on the long-term ratings is stable. In addition, S&P
revised its transfer and convertibility assessment to 'CCC' from
'CCC-'.
S&P said the stable outlook on the long-term ratings balances the
risks posed by pronounced economic imbalances and policy
uncertainties with the favorable change in near-term debt service
obligations. S&P also expect no further debt exchanges that it
would likely consider to be distressed.
Fitch Ratings 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: Monthly Inflation Rate Slows to Single Digit in April
----------------------------------------------------------------
Buenos Aires Times reports that Argentina's monthly inflation rate
dropped to a single digit last month, as President Javier Milei's
government continued to make progress in slowing price hikes.
Consumer prices rose 8.8 percent in April, the INDEC national
statistics bureau reported, a drop from the 11 percent registered
the preceding month, according to Buenos Aires Times. It is the
first time that inflation has slowed to a single digit in six
months, the report notes.
In December, the month President Javier Milei took office,
inflation leapt by 25.5 percent, provoked by his devaluation of the
peso by more than 50 percent, the report discloses.
In February, the rate was 13.2 percent, down from 20.7 percent in
January, the report notes.
Nevertheless, inflation remains of high concern for Argentines. The
cost of living is up 65 percent since the turn of the year and
cumulative inflation over the last 12 months is a staggering 289.4
percent – one of the worst annualized rates in the world and the
highest in 33 years, the report relays.
Milei has vowed to halt Argentina's economic decline and reduce the
budget deficit to zero, the report notes.
He has slashed public spending, cut the Cabinet, done away with
thousands of public jobs, suspended public works contracts and
ripped away fuel and transport subsidies, the report discloses.
In April, Milei hailed the country's first quarterly budget surplus
since 2008. He celebrated that his team is "crushing inflation,"
the report relays.
But critics say Milei's few wins have come at the cost of the poor
and working classes, and were unlikely to last, the report
discloses.
The inflationary drop has been sparked by a huge cut in public
spending and consumption, which will likely push the economy into
recession, the report notes.
Economic activity declined 3.2 percent year-on-year in February,
and in March, there was a 21 percent annual slump in industrial
manufacturing and a 42 percent dip in construction, the report
relays.
Poverty levels are nearing 50 percent, according to official data,
the report discloses.
Most multilateral institutions expect GDP to contract by at least
three percent this year, with inflation likely to remain above 120
percent, the report relays.
The International Monetary Fund expects that Argentina's economy
will contract by 2.8 percent this year, the report relays.
"The fiscal surplus was achieved by spending cuts, not by higher
tax revenues. Inflation is falling because of a fall in demand,
not because of increased supply," said independent economist
Salvador Di Stefano, the report discloses.
April's hikes were led by housing, water, electricity, gas and
other fuels, which rose 35.6 percent due to increases in gas, water
and electricity rates, the report says. Milei has been slashing
state subsidies that kept the cost of utilities low, the report
notes.
Communications were up 14.2 percent for the month, due to price
increases in telephone and Internet services, while clothing and
footwear rose 9.6 percent, the report relays.
Healthcare costs soared nine percent, with food and non-alcoholic
beverages – one of the highest categories normally, at six
percent, the report disclsoes.
The divisions that recorded the lowest increases were goods and
services (5.7 percent) and alcoholic beverages and tobacco (5.5
percent). Many businesses have increased offers for shoppers to
stimulate sluggish consumption, the report says.
"Some of the prices have gone down a little, but because there is
no consumption. People are not buying. I think we are worse off
than we were before," said Liliana Segovia, a 44-year-old private
security worker, the report relays.
"April was a complex month for Argentines' pockets. The rise in
utility billing, despite the slowdown in the rise in the price of
goods, left little surplus to maintain spending at constant
values," said Damian Di Pace, the director of the Focus Market
consultancy firm, 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 March 15, 2024, raised its local currency
sovereign credit ratings on Argentina to 'CCC/C' from 'SD/SD' and
its national scale rating to 'raB+' from 'SD'. S&P also raised its
long-term foreign currency sovereign credit rating to 'CCC' from
'CCC-' and affirmed its 'C' short-term foreign currency rating. The
outlook on the long-term ratings is stable. In addition, S&P
revised its transfer and convertibility assessment to 'CCC' from
'CCC-'.
S&P said the stable outlook on the long-term ratings balances the
risks posed by pronounced economic imbalances and policy
uncertainties with the favorable change in near-term debt service
obligations. S&P also expect no further debt exchanges that it
would likely consider to be distressed.
Fitch Ratings 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.
IRSA INVERSIONES: Fitch Affirms 'B-' LongTerm IDRs, Outlook Stable
------------------------------------------------------------------
Fitch Ratings has affirmed IRSA Inversiones y Representaciones
S.A.'s (IRSA) Long-Term Foreign and Local Currency Issuer Default
Ratings (IDRs) at 'B-' and 'B', respectively. Fitch has also
affirmed the company's senior unsecured rating at 'B'/'RR3'. The
Rating Outlook is Stable.
The Local Currency IDR reflects IRSA's strong business profile as
the largest real estate company in Argentina with a leading market
share of the country's shopping mall gross leasable area (GLA).
Fitch expects the company should be able to generate sufficient
cash flows from operations and divestments to maintain gross EBITDA
leverage under 3.5x. However, Argentina's challenging operating
environment will continue to be a significant risk to IRSA's
performance over the rating horizon.
The Foreign Currency IDR is constrained by Argentina's 'B-' Country
Ceiling. The 'RR3' Recovery Rating reflects above average recovery
expectation for creditors in the event of default. This is
supported by Argentine corporates' precedent of numerous distressed
debt exchanges that did not result in a reduction of principal
owed.
KEY RATING DRIVERS
Improved Credit Profile: IRSA's estimated gross leverage should
remain at around 3x in the coming years. Argentina's highly
inflationary environment and weak currency conditions may
temporarily affect leverage metrics; however, the company has shown
operational resilience and an ability to secure local sources of
funding.
A continuously improving credit profile over the last year, through
debt repayment and cashflow generation, has helped reduced debt to
USD357.2 million in 3Q24 from approximately USD570 million as of
fiscal YE 2022. IRSA's sole international bond is an amortizing
USD171 million bond due in 2028. The remainder of the company's
debt locally held.
Healthy Operational Metrics: Fitch projects IRSA's EBITDA will
remain well above USD100 million through the rating horizon. Mall
activity has been solid with healthy levels of tenant sales, but
Fitch expects these to weaken for the remainder of 2024, due to the
initial consumption shock generated by government austerity
measures. LTM average mall occupancy rates are above 97% as of
3Q24, and Fitch estimates this should remain solid in the medium
term.
Office occupancy rates reached 92.8% as of 3Q24, and Fitch expects
they will remain at these levels over the forecast horizon. Hotels
have shown solid performance, with revenue likely to surpass USD50
million and operating margins expected at around 30% in 2024.
IRSA's operating cash flow should remain healthy into 2025.
Persistent Operating Environment Risk: Fitch assumes IRSA will
maintain a prudent approach to growth and dividend distributions,
as Argentina's operating environment remains weak. Fitch will
monitor IRSA's ability to balance capex and dividend distributions
while maintaining enough liquidity to fulfil short-term obligations
and conservative leverage. The company's assets and cash flow come
almost entirely from domestic sources.
High inflation levels, devaluation, capital controls and limited
access to international financial markets are downside risks to
IRSA's operational performance. IRSA's retail rents are mostly tied
to inflation, while office rents are pegged to the USD, which
partially mitigates some of these risks.
Strong Business Position: IRSA's business profile is underpinned by
its operational track record and strong market share, which result
in good operating cash flow. IRSA is the leading commercial real
estate company in Argentina. IRSA's total rental portfolio
encompasses approximately 474,000 sqm of gross leasable area,
distributed in 335,866 sqm among 15 shopping malls, 59,348 sqm in
five office buildings, and 79,000 sqm in three hotels. IRSA is also
working on the initial phases of development of Costa Urbana, a
long-term urbanization project in the city of Buenos Aires that
aims to build up to 866,806 sqm of mixed-use space.
DERIVATION SUMMARY
IRSA ratings are primarily driven by Argentina's weak operating
environment and limited access to external capital, which compares
negatively to regional peers. The ratings also reflect IRSA's
status as an experienced and well-positioned real estate operator.
The company has adequate portfolio granularity with comparatively
low loan-to-value, limited tenant concentration, consistent
consolidated occupancy levels of over 90% for its shopping malls
with lease duration between two and three years.
KEY ASSUMPTIONS
- Occupancy rates of 95% in the mall business and around 85% in the
office segment, and at least 55% in hotels;
- Capex of no more than USD40 million a year in 2025 and 2026;
- Dividends of no more than USD50 million in 2025 and 2026,
assuming capex is as stated above;
- Tenant revenue adjusts with inflation;
- Local bonds and debt are refinanced;
- Opportunistic divestitures.
RECOVERY ANALYSIS
IRSAs bonds have an 'RR3' Recovery Rating to reflect above-average
recovery expectation for creditors in the event of default.
The recovery analysis assumes that IRSA would be a going concern
(GC) in bankruptcy and that it would be reorganized rather than
liquidated.
GC Assumptions:
- A 10% administrative claim.
- The GC EBITDA is estimated at USD67 million. The GC EBITDA
estimate is a discount of 50% to Fitch's forecasted 2024 EBITDA. It
assumes further peso devaluation and potential stress to IRSA's
cash generation in the event of a reorganization.
- EV multiple of 5.5x.
With these assumptions, Fitch's waterfall generated recovery
computation (WGRC) for the senior unsecured notes is in the 'RR1'
band. However, according to Fitch's "Country-Specific Treatment of
Recovery Ratings Criteria," the Recovery Rating for corporate
issuers in Argentina is capped at 'RR4'.
Nevertheless, Fitch may exceed the cap in specific situations where
the indicators used to derive the country caps do not reflect the
risks specific to an issuer. When Fitch assesses that an issuer's
foreign currency default would most likely be caused by exchange
controls, RRs on Foreign Currency instruments can be assigned above
the cap. Ratings may also be assigned above the cap when an issuer
is in distress, or in default, and recoveries are expected to be
higher than implied by the cap.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- The Long-Term Foreign Currency IDR is unlikely to be upgraded as
it is capped by Argentina's Country Ceiling;
- Debt/EBITDA of 2.5x or below;
- Improved liquidity profile.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- The Long-Term Foreign Currency IDR could be downgraded as a
result of a lower Argentina Country Ceiling;
- Debt/EBITDA increases above 3.5x;
- Liquidity, measured as cash/short-term debt, falls below 1.0x.
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity Post-Refinancing: IRSA had close to ARS105
billion in cash and cash equivalents, including short-term
investments, as of fiscal 3Q24. A dividend payment of ARS55 billion
approved in April 2024 will reduce IRSAs cash position
commensurately. Fitch views liquidity as adequate after the
refinancing and dividend payments. Fitch expects cash flow from
operations to be between USD80 million-USD90 million annually,
which, together with access to refinancing of local maturities,
should be sufficient to repay short-term obligations.
ISSUER PROFILE
IRSA is a premier real estate operator in Argentina. The company is
primarily focused in the acquisition, development, and management
of shopping centers and it is the country's market leader in the
segment. The company also owns several office buildings and three
premium hotels.
ESG CONSIDERATIONS
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
IRSA Inversiones y
Representaciones S.A. LT IDR B- Affirmed B-
LC LT IDR B Affirmed B
senior unsecured LT B Affirmed RR3 B
=============
B E R M U D A
=============
SIGNET JEWELERS: Fitch Hikes LongTerm IDR to 'BB+', Outlook Stable
------------------------------------------------------------------
Fitch Ratings has upgraded Signet Jewelers Limited's and Signet
Group Limited's ratings, including their Long-Term Issuer Default
Ratings to 'BB+' from 'BB'. The Rating Outlook is Stable.
The upgrade reflects Fitch's increased confidence that Signet will
sustain EBITDAR leverage (capitalizing leases at 8x) below 4.0x
over the medium term, with proforma EBITDAR leverage as of April
2024 around 3.5x. Although there could be some continued topline
moderation in the near-term given a pullback in discretionary
products spending, Fitch's operating projections, alongside
management's evolving financial policy favoring debt reduction
support expectations that Signet will sustain EBITDAR leverage
below 4.0x.
Signet's rating reflects its leading market position as a U.S.
specialty jeweler with approximately 9% share of a highly
fragmented industry. The ratings consider Signet's good execution
from a top-line and a margin standpoint, which support Fitch's
longer-term expectations of low single-digit revenue and EBITDA
growth.
KEY RATING DRIVERS
Moderate Leverage; Strong FCF: Proforma for the company's
repurchase of 50% of its $655.5 million in outstanding preferred
equity in April 2024, Signet has approximately $475 million in debt
outstanding and a public leverage target of at or below 2.5x
(capitalizing rent at 5x), which equates to a Fitch calculation of
at or below 4.0x EBITDAR leverage (capitalizing leases at 8x). LTM
proforma EBITDAR leverage stands at approximately 3.5x, and Fitch
projects, assuming flat debt levels, that Signet's leverage could
trend in the mid-3x range beginning in 2024. Per Signet's adjusted
leverage calculations, this equates to leverage trending in the
low-2x vicinity.
Signet has strong liquidity and financial flexibility with $1.38
billion of cash as of Feb. 3, 2024 and Fitch expects positive FCF
of $320 million-$380 million across 2024 and 2025. The company
could deploy FCF toward a combination of debt repayment, share
repurchases, dividends and acquisitions. Signet repurchased an
average of $275 million shares annually across 2021-2023. Signet
has been acquisitive, purchasing Diamonds Direct in November 2021
for $503 million and Blue Nile in August 2022 for $390 million.
Both transactions were funded with cash on hand.
Proforma for the recent preferred equity repurchase, Signet has
approximately $475 million in outstanding debt, inclusive of
approximately $148 million in unsecured notes due in June 2024 and
the remaining portion of preferred shares which mature in November
2024. Fitch expects that Signet could address these maturities with
cash when they come due. Given Signet's leverage target, Fitch
expects that Signet could look to issue debt effectively
refinancing these upcoming maturities.
Near-Term Topline Moderation: Signet's results have been impacted
by a slowdown in consumer spending on discretionary products given
moderating consumer fundamentals, as well as the ongoing impact of
a pandemic-driven decline in engagements. Revenue is expected to
decline in the mid-single digits in 2024 towards $6.8 billion after
declining in the high single digits in 2023 to $7.2 billion.
Fitch projects that Signet's revenue could stabilize around $6.9
billion beginning in 2025 as engagement trends recover and the
company benefits from its ongoing topline initiatives. Signet's
projected revenue compares to 2019 levels of $6.1 billion. The
company has closed approximately 20% of its store base since 2019
and this sales volume has been largely been offset by the
acquisitions of Diamonds Direct in 4Q21 and Blue Nile in 3Q22,
which together accounted for approximately $900 million in 2023
revenue. In addition, Signet has benefited from the introduction of
a number of strategies in recent years to improve same-store sales
(SSS), including increasing the pace of product innovation and
investing in its omnichannel platform.
Focused Strategy Supports Margin Profile: EBITDA margins are
expected to trend in the mid-11% range beginning in 2024, modestly
lower than 2023 levels and well above the low-8% vicinity seen in
2019. Based on Fitch's topline assumptions this yields EBITDA in
the upper $700 million to low $800 million range beginning in 2024,
versus approximately $850 million in 2023 and $500 million in 2019.
Signet achieved over $700 million in cost savings from 2019-2023
across a number of categories including store fleet optimization,
sourcing optimization, and store labor rationalization. In 2024,
Signet expects to achieve an additional $150 million-$180 million
in cost savings. Fitch expects Signet to redeploy a significant
level of these savings into topline investments as it has in the
past.
Leading Jeweler Position: Signet is the leading U.S. specialty
jeweler with an approximately 9% share of a fragmented $63 billion
U.S. market. As of Feb. 3, 2024, Signet operated 2,698 stores
across well-known brands like Kay, Jared, Zales and Banter by
Piercing Pagoda in the U.S.; Peoples in Canada; and H. Samuel and
Ernest Jones in the U.K.
Signet benefits from its scale and ability to invest in its
omnichannel platform. If executed effectively, these investments
could provide competitive advantages against smaller and
independent jewelers with limited capacity to invest. Longer term,
the ability to grow its share of the fragmented mid-tier jewelry
market will depend on execution against its omnichannel and other
growth initiatives.
Parent Subsidiary Linkage: Fitch's analysis includes a strong
subsidiary/weak parent approach between the parent, Signet Jewelers
Limited and its subsidiaries Signet UK Finance, PLC and Signet
Group Limited. Fitch assesses the quality of the overall linkage as
high, which results in an equalization of the ratings. The
equalization reflects open legal ring-fencing and open access and
control between the stronger subsidiaries and the parent.
DERIVATION SUMMARY
Signet's ratings consider good execution from a topline and margin
standpoint, which support Fitch's longer-term expectations of low
single-digit revenue and EBITDA growth. The rating reflects its
leading market position as a U.S. specialty jeweler with an
approximately 9% share of a highly fragmented industry. Fitch
expects Signet will be able to sustain EBITDAR leverage below 4.0x
as appropriate for the 'BB+' rating. Similarly rated peers include
Capri Holdings Limited (Capri; BBB-/Rating Watch Negative), Levi
Strauss & Co. (BB+/Stable) and Samsonite International S.A.
(Samsonite; BB/Stable).
Samsonite's rating is one notch lower than Signet's, reflecting
Samsonite's relatively higher leverage with expectations that
EBITDAR leverage will trend in the high-3x range over the next few
years. Samsonite's rating also considers its status as the world's
largest travel luggage company, with strong brands and historically
good organic growth. Samsonite's topline rebounded strongly,
following weak pandemic-era performance in 2020, led by a continued
strong recovery in global travel.
Levi's rating is in line with Signet's and considers the company's
good execution both from a topline and a margin standpoint, which
support Fitch's longer-term expectations of low-single digit
revenue and EBITDA growth. Although there could be some near-term
pressure to operating results given ongoing shifts in consumer
behavior, difficult comparisons, and global macroeconomic
uncertainty, Fitch expects that Levi will be able to maintain
EBITDAR leverage (adjusted debt/EBITDAR, capitalizing leases at 8x)
below 3.5x over time.
Capri's rating is one notch higher than Signet's, in-part
reflecting expectations that Capri will sustain EBITDAR leverage in
the low-3x range longer-term. The rating reflects Capri's strong
positioning in the U.S. handbag market and, good growth at its
various brands along with its demonstrated commitment to debt
reduction. The rating also considers the fashion risk inherent in
the accessories and apparel space. The Negative Watch reflects the
potential for a sustained increase in leverage, pro forma for the
acquisition by Tapestry, Inc., above Fitch's current expectations
for EBITDAR leverage to sustain in the low-3x range.
KEY ASSUMPTIONS
- Signet's revenue is expected to decline in the mid-single digits
in 2024 driven by ongoing soft demand for discretionary goods,
including jewelry, a challenging macroeconomic environment, and the
negative impact of the loss of a 53rd week. Thereafter, revenue is
expected to grow in the low single digits, supported by the
company's topline initiatives, including its omnichannel focus,
along with a general improvement in engagement levels after a
pandemic-driven trough. Revenue is expected to trend around $6.9
billion-$7.0 billion, beginning in 2025, compared with 2019 levels
of $6.1 billion. Across 2021 and 2022, the company made two sizable
acquisitions of Diamonds Direct and Blue Nile, which, together,
accounted for approximately $900 million in revenue in 2023.
- EBITDA is expected to decline approximately 8% to $780 million in
2024 from approximately $850 million in 2023, largely driven by
mid-single digit topline declines expected for the year. EBITDA is
expected to grow modestly beginning in 2025 in the low-$800 million
range relative to 2019 levels of $504 million. EBITDA margins could
trend in the mid-11% range beginning in 2024, slightly below 2023
levels and well above the low-8% range seen in 2019 given effective
expense management initiatives.
- Fitch expects that FCF, post-dividends, could trend around $320
million-$380 million annually beginning in 2024 assuming modest
EBITDA expansion and neutral working capital.
- Signet could use its strong cash balance of $1.38 billion as of
Feb. 3, 2024 and good FCF to reinvest in its business, continue
share buybacks and repay debt. On April 1, 2024, Signet repurchased
50% of its outstanding preferred shares. The company's $148 million
of unsecured notes mature in June 2024 and the remaining $328
million of preferred equity is due in November 2024. Signet could
address these maturities with cash on hand. Given Signet's leverage
target, Fitch expects that Signet could issue new debt in the
medium-term, keeping debt levels near April 2024 proforma levels.
Signet has historically also deployed FCF towards acquisitions
including the Diamonds Direct and Blue Nile acquisitions in 2021
and 2022.
- EBITDAR leverage (capitalizing leases at 8x) is expected to trend
in the mid-3x area across the forecast assuming EBITDA remains in
the low-$800 million range and the company refinances upcoming
maturities. Signet has a public leverage target of maintaining
adjusted leverage (capitalizing rent at 5x) at or below 2.5x, which
equates to at or below 4.0x EBITDAR leverage on a Fitch adjusted
basis.
- The company's unsecured notes are a fixed-rate instrument at
4.7%. The revolving credit facility is floating rate (SOFR +
1.5%).
RECOVERY ANALYSIS
Recovery Considerations
Fitch does not employ a waterfall recovery analysis for issuers'
assigned ratings in the 'BB' category. The further up the
speculative-grade continuum a rating moves, the more compressed the
notching between the specific classes of issuances becomes. Fitch
has affirmed Signet's secured asset-backed lending facility at
'BBB-'/'RR1' indicating outstanding recovery prospects. Fitch has
upgraded the unsecured notes to 'BB+'/'RR4' from 'BB'/'RR4'
indicating average recovery prospects. Fitch has upgraded the
preferred equity to 'BB'/'RR5' from 'BB-'/'RR5', indicating below
average recovery prospects.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- To support an upgrade, Signet would need to show a demonstrated
commitment and ability to sustain EBITDAR leverage below 3.5x while
generating low single-digit revenue growth and EBITDA at or above
$800 million.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- A downgrade could occur if operating performance is below
expectations, yielding EBITDA declines toward $600 million and
EBITDAR leverage sustained above 4.0x.
LIQUIDITY AND DEBT STRUCTURE
Strong Liquidity: Signet had $1.38 billion in cash and cash
equivalents as of Feb. 3, 2024 and no borrowings on its $1.5
billion asset-backed lending facility due July 2026, with $1.1
billion in available borrowing capacity. The company's capital
structure as of Feb. 3, 2024, consisted of $147.7 million in
unsecured notes due June 2024 and $655.5 million of preferred
equity, which receives 0% equity credit.
Permanence in the capital structure, in this case permanence of the
preferreds, is necessary for equity credit recognition. On April 1,
2024, Signet announced that it had repurchased 50% of the
outstanding preferred shares using cash on hand. The remaining $328
million in outstanding preferred equity matures in November 2024.
ISSUER PROFILE
Signet, incorporated in Bermuda, is the world's largest diamond
jewelry retailer, with 2,698 stores and kiosks (as of Feb. 3, 2024)
in the U.S., U.K. and Canada operating under a variety of national
and regional brands. Signet's largest brands include Kay (36% of
2023 sales), Zales (18%), and Jared (17%), all of which operate in
North America.
SUMMARY OF FINANCIAL ADJUSTMENTS
Historical and projected EBITDA is adjusted to add back non-cash
stock-based compensation expense and exclude non-recurring charges.
For the YE Feb. 3, 2024, Fitch added back $41 million in
stock-based compensation expense. Fitch has adjusted the historical
and projected debt by adding 8x annual gross rent expense.
ESG CONSIDERATIONS
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Signet Group Limited LT IDR BB+ Upgrade BB
senior secured LT BBB- Affirmed RR1 BBB-
Signet Jewelers Ltd. LT IDR BB+ Upgrade BB
preferred LT BB Upgrade RR5 BB-
Signet UK Finance plc
senior unsecured LT BB+ Upgrade RR4 BB
===========
B R A Z I L
===========
BRAZIL: Central Bank Chief Defends Decision to Slow Rate Cuts
-------------------------------------------------------------
globalinsolvency.com, citing Bloomberg News, reports that Brazil's
central bank chief justified his decision to change the
institution's written guidance on interest rates during a public
speech, one day after another board member said such a move should
have been discussed with the whole board and communicated through
more formal channels.
Roberto Campos Neto made it clear during a speech in Washington
last month that the bank may not make the additional half-point cut
it had previously signaled in statements, opening the door for the
smaller quarter-point reduction it delivered, according to
globalinsolvency.com.
"The understanding of a majority of the board was clear: there had
been relevant changes and we had to respond with a change of pace,"
Campos Neto said at a event in Brasilia, citing a worsening
inflation scenario and other challenges to its easing cycle, the
report relays. "Our debate was technical, and all arguments were
heard," he added, still reading from a piece of paper but going
off-script from prepared remarks to an economic seminar the bank is
hosting, the report discloses.
Campos Neto led the majority that decided to cut Brazil's benchmark
interest rate by a quarter-point to 10.5%, the report discloses.
All four members of the board appointed by President Luiz Inacio
Lula da Silva, however, favored a seventh consecutive half-point
cut, as the bank had previously signaled, the report relays.
The split decision exposed a rift and caused Brazilian assets to
tumble as investors assessed the monetary authority's tolerance for
inflation once Lula nominates two new directors and the bank's
governor later this year, 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: Central Bank Sees More Restrictive Monetary Policy
----------------------------------------------------------
globalinsolvency.com, citing Bloomberg News, reports that Brazil's
central bank said more restrictive rates are needed to fulfill its
commitment to hitting the inflation target, according to the
minutes to its split decision on borrowing costs that rattled
investors.
"In the end, it was unanimously concluded that a more
contractionary and more cautious monetary policy was needed,"
policymakers wrote in minutes to their May 7-8 rate decision, when
they cut the benchmark Selic rate by a quarter-point to 10.5%,
according to globalinsolvency.com.
Still, all four board members appointed by President Luiz Inacio
Lula da Silva backed a larger, half-point drop at the meeting, the
report notes.
Central bankers disagreed on the costs of scrapping previous
guidance that had signaled a half-point rate cut, according to the
minutes published, the report relays.
The majority argued the economic scenario had changed after
estimates of future inflation worsened, adding that the local
economy is proving stronger and the global outlook is becoming more
adverse, the report discloses.
The minority, including directors Gabriel Galipolo and Paulo
Picchetti, said another half-point cut would keep monetary policy
"sufficiently contractionary" and argued the bank's own inflation
models were more affected by the end-of-cycle rate, the report
notes.
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).
=============
E C U A D O R
=============
GUAYAQUIL MERCHANT: Fitch Affirms 'BB-' Rating on 2019 Notes
------------------------------------------------------------
Fitch Ratings has affirmed the issue-specific ratings assigned to
all outstanding series of notes issued by Guayaquil Merchant
Voucher Receivables Limited and Guayaquil DPR Limited at 'BB-'. The
Rating Outlook on the notes is Stable.
Entity/Debt Rating Prior
----------- ------ -----
Guayaquil Merchant
Voucher Receivables
Limited
2019-1 401539AA9 LT BB- Affirmed BB-
Guayaquil DPR
Limited
2023-1 LT BB- Affirmed BB-
2023-2 LT BB- Affirmed BB-
TRANSACTION SUMMARY
Guayaquil DPR Limited is backed by existing and future USD
diversified payment rights (DPRs) originated by Banco Guayaquil,
S.A. (BG) in Ecuador. The majority of DPRs are processed by
designated depository banks (DDBs) that have executed account
agreements (AAs), irrevocably obligating them to make payments to
an account controlled by the program agent.
Guayaquil Merchant Voucher Receivables Limited is backed by future
flows due from American Express (Amex), Visa International Service
Association (Visa), and MasterCard International Incorporated
(MasterCard) related to international merchant vouchers (MVs)
acquired by Banco Guayaquil, S.A. in Ecuador.
Fitch's ratings address timely payment of interest and principal on
a quarterly basis.
KEY RATING DRIVERS
Future Flow (FF) Ratings Driven by Originator's Credit Quality: The
ratings of these FF transactions are driven by the Long-Term (LT)
Issuer Default Rating (IDR) of the originator, BG. On Nov. 10,
2023, Fitch affirmed BG's LT IDR at 'CCC+' and Viability Rating
(VR) at 'ccc+'. BG's IDR is underpinned by its VR which is highly
influenced by Ecuador's sovereign rating and broader operating
environment (OE) considerations. The bank's ratings are capped by
Fitch's assessment of the OE score of 'ccc+'.
GCA Supports Notching Differential: Fitch uses a going concern
assessment (GCA) score to gauge the likelihood that the originator
of an FF transaction will stay in operation throughout the
transaction's life. Fitch assigned a GCA score of 'GC2' to BG based
on the bank's systemic importance. The score allows for a maximum
of four notches above the Long-Term IDR of the originator.
Notching Uplift from IDR: The 'GC2' allows for a maximum four
notch-rating uplift from the bank's LT IDR pursuant to Fitch's FF
methodology. Considering the bank's current LT IDR, the assigned
ratings are at the maximum notching differential of four notches
allowed by Fitch's FF methodology for an originator with a score of
'GC2'. It is worth highlighting that Fitch reserves the maximum
notching uplift for transactions with originators rated on the
lower end of the rating scale, such as BG.
Moderate Future Flow Debt: Future flow debt represents
approximately 3.4% of BG's total funding and 23.9% of BG's
non-deposit funding when considering the outstanding balances on
the notes issued out of BG's merchant voucher and DPR programs as
of April 2024 and utilizing nonconsolidated financials as of March
2024. Fitch views the ratio of FF debt to overall liabilities as
small enough to allow the financial FF ratings the maximum uplift
indicated by the GCA score.
Coverage Levels - DPR Program: Fitch views the transaction's debt
service coverage ratio (DSCR) as more than sufficient for the
assigned rating. The minimum projected DSCR is approximately 106.9x
when considering the maximum periodic debt service over the life of
the program and DDB flows over the past five years (removing
transactions for amounts greater than $25 million).
Coverage Levels - MV Program: Coverage levels have remained more
than sufficient to cover quarterly debt service payments and remain
commensurate with the rating on the outstanding notes. When
considering average rolling quarterly flows over the past five
years and the maximum periodic debt service over the life of the
program, Fitch's projected minimum quarterly debt service coverage
ratio is 5.1x throughout the life of the program.
De-dollarization Risk: While the dollarization regime anchors
macroeconomic stability, the risk of de-dollarization exists. It
would only occur in an extreme scenario but would be a major shock
to the Ecuadorean system.
Sovereign/Diversion Risks Reduced: The structure mitigates certain
sovereign risks by collecting cash flows offshore until investors
are paid. Fitch believes diversion risk is partially mitigated by
notice, consent and agreements signed by AmEx, Visa, and MasterCard
(in the case of the MV program) and AAs signed by the DDBs (in the
case of the DPR program).
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- The transactions' ratings are sensitive to changes in BG's credit
quality. Currently, the transactions are receiving the maximum
notching uplift from BG's LT IDR. Therefore, a deterioration in
BG's credit quality by one notch would trigger a downgrade of the
ratings of the transactions from their current level.
- The transactions' ratings are sensitive to increases in the FF
debt relative to the bank's funding ratios. If either of the ratios
increase beyond the thresholds outlined in Fitch's Future Flow
Securitization Rating Criteria, it could result in a downgrade of
the transactions' ratings from their current level.
- The transactions' ratings are sensitive to the credit card
acquiring and DPR business lines' performances and their ability to
continue operating, as reflected by the bank's GCA score. Changes
in Fitch's view of the bank's GCA score could lead to a change in
the transactions' ratings. Additionally, the MV program could also
be sensitive to significant changes in the credit quality of
American Express, Visa, or MasterCard to a lesser extent. Any
changes in these variables will be analyzed in a rating committee
to assess the possible impact on the transaction ratings.
- No company is immune to the economic and political conditions of
its home country. Political risks and the potential for sovereign
interference may increase as a sovereign's rating is downgraded.
However, the underlying structures and transaction enhancements
mitigate these risks to a level consistent with the assigned
ratings.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- The main constraint to the transactions' ratings is the
originator's rating and BG's operating environment. If the bank's
LT IDR is upgraded by more than one notch from its current rating,
Fitch would consider an upgrade to the ratings of the transactions
from their current level.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
The future flow ratings are driven by the credit risk of Banco
Guayaquil, S.A. as measured by its Long-Term IDR.
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.
=====================
P U E R T O R I C O
=====================
SERVICE PROPERTIES: Moody's Cuts Unsecured Notes Rating to 'B2'
---------------------------------------------------------------
Moody's Ratings downgraded Service Properties Trust's ("SVC")
guaranteed and non-guaranteed senior unsecured ratings to B2 and B3
from B1 and B2, respectively, and its senior unsecured shelf rating
to (P)B3 from (P)B2. In addition, Moody's downgraded the senior
secured rating to B2 from B1 and the backed senior unsecured shelf
rating to (P)B2 from (P)B1. In the same action, Moody's assigned B2
ratings to SVC's proposed guaranteed senior unsecured notes due
2032 and 2034. The Speculative Grade Liquidity rating remains
unchanged at SGL-4. The Corporate Family Rating is affirmed at B2
and the outlook remains negative.
The proceeds from the proposed $1.2 billion guaranteed senior
unsecured notes and existing liquidity will be used to repay SVC's
$800 million notes and $350 million notes that each come due in
2025.
The downgrade of SVC's senior unsecured ratings reflects the REIT's
weak operating performance and deteriorating cash flow trends,
which is impacting key credit metrics. In particular, Moody's
expects weakness from SVC's hotel operations and higher interest
costs from the new $1.2 billion notes will keep fixed charge
coverage below 1.7x over the coming year. This leaves the REIT with
limited cushion on its bond covenants, which requires debt service
coverage of at least 1.5x. Fixed charge coverage could decline
further in the coming years, absent a material improvement in the
REIT's hotel operations, as SVC will need to refinance $800 million
of notes with a weighted average cost of 5% that mature in 2026.
SVC has been successful in refinancing looming maturities, however
this has been in the form of higher cost debt, some of which
includes encumbrance of higher-quality assets. This leaves SVC with
weakened flexibility as it continues to address future refinancing
needs.
The negative outlook reflects weak operating trends and the risk
that the cushion in SVC's debt service coverage covenant in the
bond indenture will erode further.
Following the action, SVC's guaranteed senior unsecured notes are
rated at the same level as the REIT's B2 CFR. This reflects SVC's
evolving capital structure, where the majority of its debt now
consists of first mortgage liens or unsecured bonds with subsidiary
guarantees.
RATINGS RATIONALE
SVC's CFR reflects its high financial leverage and weak fixed
charge coverage and an operating environment that will make it
challenging for the company to meaningfully reduce leverage in the
near term. Moody's expects growth, particularly for SVC's hotel
portfolio, to moderate going forward due to recessionary pressures
stemming from inflationary headwinds and higher interest rates.
First quarter 2024 results were unexpectedly weak with RevPAR down
3.5% year-over-year, driven by a 90 basis point decline in average
daily rate and 160 basis point decline in occupancy. The weakness
was driven by softening in transient and business travel across
SVC's select service portfolio, in addition to disruptions due to
hotel renovations. Excluding active renovation projects, RevPAR was
still down 1.1% versus the prior year period.
Despite these challenges, SVC's ratings are supported by the
company's meaningful scale and its portfolio mix, including hotels
and net lease service and necessity-based retail properties, which
provide diversification to cash flows. The ratings also reflect the
value of its unencumbered asset pool, which the company has
leveraged successfully in recent transactions to manage its capital
needs. Pro forma for the new senior unsecured notes and subsequent
repayment of 2025 maturities, SVC will have over $7 billion in
unencumbered assets on a book value basis.
SVC's SGL-4 rating reflects a weak liquidity profile given expected
sources and uses over the next 24 month period. Pro forma liquidity
is comprised of $87 million in cash on hand and full availability
under SVC's $650 million secured credit facility due June 2027,
which was downsized from $800 million in its June 2023
refinancing.
Debt maturities after the proposed issuance and pay down of 2025
maturities include $800 million due in 2026, $850 million due in
2027, and $1 billion due in 2028. Moody's expects the company to
manage its near-term maturities primarily through additional
secured debt funding and/or higher cost of capital unsecured debt,
though traditional refinancing will be harder to come by due to the
REIT's weak financial profile. SVC maintains a certain level of
financial flexibility with a large, unencumbered portfolio of about
$7 billion but the size and quality of this pool continues to
diminish with the delivery of first lien mortgages and equity
interests on certain higher quality properties to secure
obligations. Moody's also notes that the REIT retains limited
cushion on the debt service coverage covenant within its bond
indenture.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
A downgrade of SVC's ratings could occur should the company fail to
maintain sufficient liquidity related to near-term maturities or if
it continues to materially encumber more assets. Fixed charge
coverage below 1.5x, Net Debt/EBITDA above 11.5x, or a
deterioration in operating performance could also lead to a
downgrade.
SVC's ratings could be upgraded if the REIT were to maintain ample
long-term liquidity. A return to an unsecured funding strategy,
improving Net Debt/EBITDA below 8.5x and fixed charge coverage
closer to 2.0x, as well as demonstration of earnings stability on a
sustained basis, particularly in its hotel business, would also
support an upgrade.
Service Properties Trust is a real estate investment trust (REIT)
which owns a diverse portfolio of hotels and net lease service
retail (businesses that sell non-physical goods and services) and
necessity-based retail properties across the United States and in
Puerto Rico and Canada. SVC is managed by the operating subsidiary
of The RMR Group Inc., an alternative asset management company
headquartered in Newton, MA.
The principal methodology used in these ratings was REITs and Other
Commercial Real Estate Firms published in February 2024.
===============
X X X X X X X X
===============
[*] BOND PRICING: For the Week May 13 to May 17, 2024
-----------------------------------------------------
Aeropuerto de Tocumen 4.0 70.3 8/11/2041 PA USD
Aeropuerto de Tocumen 5.1 69.7 8/11/2061 PA USD
Aeropuerto de Tocumen 4.0 70.9 8/11/2041 PA USD
AES Tiete Energia SA 6.8 0.7 4/15/2024 BR BRL
Agile Group Holdings 5.8 16.3 1/2/2025 KY USD
Agile Group Holdings 6.1 13.4 10/13/2025 KY USD
Agile Group Holdings 5.5 13.0 5/17/2026 KY USD
Agile Group Holdings 7.9 3.3 KY USD
Agile Group Holdings 5.5 15.0 4/21/2025 KY USD
Agile Group Holdings 7.8 3.3 KY USD
Alfa Desarrollo SpA 4.6 74.5 9/27/2051 CL USD
Alfa Desarrollo SpA 4.6 74.7 9/27/2051 CL USD
Alibaba Group Holding 3.2 65.4 2/9/2051 KY USD
Alibaba Group Holding 2.7 68.6 2/9/2041 KY USD
Alibaba Group Holding 3.3 62.9 2/9/2061 KY USD
AMTD IDEA Group 1.5 7.5 KY USD
AMTD IDEA Group 4.5 55.3 KY SGD
Amwaj 6.4 71.6 KY USD
Amwaj 4.5 50.9 KY USD
Argentina Bonar Bonds 1.0 43.7 7/9/2029 AR USD
Argentina Treasury Dual 3.3 45.8 4/30/2024 AR USD
Argentine Bonos del Tesoro 15.5 40.3 10/17/2026 AR ARS
Argentine Gov't Int'l Bond 1.0 47.5 7/9/2029 AR USD
Argentine Gov't Int'l Bond 0.5 41.9 7/9/2029 AR EUR
Argentine Gov't Int'l Bond 0.1 42.5 7/9/2030 AR EUR
Ascent Finance 1.2 61.0 7/12/2047 KY EUR
Ascent Finance 3.4 66.6 2/6/2043 KY AUD
Ascent Finance 3.8 67.9 6/28/2047 KY AUD
Astra Cumulative 2019 1.5 62.1 11/1/2029 KY USD
At Home Cayman 11.5 69.3 5/12/2028 KY USD
At Home Cayman 11.5 70.6 5/12/2028 KY USD
AYC Finance 3.9 63.2 KY USD
Banco Davivienda SA 6.7 65.8 CO USD
Banco Davivienda SA 6.7 70.3 CO USD
Banco de Chile 2.7 75.1 3/9/2035 CL AUD
Banco del Estado de Chile 3.1 71.2 2/21/2040 CL AUD
Banco del Estado de Chile 2.8 67.7 3/13/2040 CL AUD
Banco Nacional de Panama 2.5 75.4 8/11/2030 PA USD
Banco Nacional de Panama 2.5 75.2 8/11/2030 PA USD
Banco Santander Chile 3.1 71.2 2/28/2039 CL AUD
Banco Santander Chile 1.3 73.9 11/29/2034 CL EUR
Banda de Couro Energetica 8.0 55.1 1/15/2027 BR BRL
Baraunas II Energetica S/A 8.0 12.5 1/15/2027 BR BRL
Bishopsgate Asset Finance 4.8 66.9 8/14/2044 KY GBP
Bolivian Gov'tInt'l Bond 4.5 58.3 3/20/2028 BO USD
Bolivian Gov'tInt'l Bond 7.5 59.4 3/2/2030 BO USD
Bolivian Gov'tInt'l Bond 4.5 58.5 3/20/2028 BO USD
Bolivian Gov'tInt'l Bond 7.5 59.5 3/2/2030 BO USD
Bonos Para La Reconstruccion 5.0 63.6 10/31/2027 AR USD
Bonos Para La Reconstruccion 3.0 60.5 5/31/2026 AR USD
Bonos Para La Reconstruccion 5.0 51.9 10/31/2027 AR USD
Brazilian Gov't Int'l Bond 4.8 74.1 1/14/2050 BR USD
BRF SA 5.8 78.1 9/21/2050 BR USD
BRF SA 5.8 78.1 9/21/2050 BR USD
Caja de Compensacion 2.4 49.6 4/5/2025 CL CLP
Camposol SA 6.0 72.3 2/3/2027 PE USD
Camposol SA 6.0 72.6 2/3/2027 PE USD
CFLD Cayman Investment 2.5 3.4 1/31/2031 KY USD
CFLD Cayman Investment 2.5 3.4 1/31/2031 KY USD
CFLD Cayman Investment 2.5 2.9 1/31/2031 KY USD
CFLD Cayman Investment 2.5 3.8 1/31/2031 KY USD
CFLD Cayman Investment 2.5 2.2 1/31/2031 KY USD
CFLD Cayman Investment 2.5 3.5 1/31/2031 KY USD
CFLD Cayman Investment 2.5 2.9 1/31/2031 KY USD
CFLD Cayman Investment 2.5 3.5 1/31/2031 KY USD
CFLD Cayman Investment 2.5 2.2 1/31/2031 KY USD
Chile Gov'tInt'l Bond 3.5 72.7 1/25/2050 CL USD
Chile Gov'tInt'l Bond 3.1 73.6 5/7/2041 CL USD
Chile Gov'tInt'l Bond 3.1 62.8 1/22/2061 CL USD
Chile Gov'tInt'l Bond 3.5 72.3 4/15/2053 CL USD
Chile Gov'tInt'l Bond 1.3 67.4 1/29/2040 CL EUR
Chile Gov'tInt'l Bond 1.3 54.0 1/22/2051 CL EUR
Chile Gov'tInt'l Bond 3.3 62.9 9/21/2071 CL USD
Chile Gov'tInt'l Bond 1.3 74.4 7/26/2036 CL EUR
China Yuhua Education Corp 0.9 65.1 12/27/2024 KY HKD
CK HutchisonInt'l 19 II 3.4 74.4 9/6/2049 KY USD
CK HutchisonInt'l 19 II 3.4 74.4 9/6/2049 KY USD
CK HutchisonInt'l 20 3.4 74.1 5/8/2050 KY USD
CK HutchisonInt'l 20 3.4 74.1 5/8/2050 KY USD
Colombia Gov't Int'l Bond 4.1 61.2 5/15/2051 CO USD
Colombia Gov't Int'l Bond 3.9 57.2 2/15/2061 CO USD
Colombia Gov't Int'l Bond 5.2 72.4 5/15/2049 CO USD
Colombia Gov't Int'l Bond 4.1 66.7 2/22/2042 CO USD
Colombia Gov't Int'l Bond 7.3 71.1 10/26/2050 CO COP
Colombia Gov't Int'l Bond 6.3 73.3 7/9/2036 CO COP
Colombia Gov't Int'l Bond 7.3 71.1 10/26/2050 CO COP
Colombia Gov't Int'l Bond 5.0 71.6 6/15/2045 CO USD
Colombia Gov't Int'l Bond 6.3 73.3 7/9/2036 CO COP
Colombia Telecomunicaciones 5.0 67.5 7/17/2030 CO USD
Colombia Telecomunicaciones 5.0 67.5 7/17/2030 CO USD
Colombian TES 7.3 70.9 10/26/2050 CO COP
Colombian TES 6.3 73.1 7/9/2036 CO COP
Coopeucha 4.6 38.3 6/1/2029 CL CLP
CODELCO 3.7 67.4 1/30/2050 CL USD
CODELCO 3.2 61.0 1/15/2051 CL USD
CODELCO 3.7 67.3 1/30/2050 CL USD
CODELCO 3.2 61.0 1/15/2051 CL USD
CODELCO 3.6 74.7 7/22/2039 CL AUD
Earls Eight 0.1 64.5 12/20/2031 KY AUD
Earls Eight 1.7 72.4 6/20/2032 KY AUD
Ecopetrol SA 5.9 73.6 5/28/2045 CO USD
Ecopetrol SA 5.9 70.5 11/2/2051 CO USD
El Salvador Gov'tInt'l Bond 7.1 68.3 1/20/2050 SV USD
El Salvador Gov'tInt'l Bond 7.6 72.0 9/21/2034 SV USD
El Salvador Gov'tInt'l Bond 7.6 72.8 2/1/2041 SV USD
El Salvador Gov'tInt'l Bond 5.9 65.1 1/30/2025 SV USD
El Salvador Gov'tInt'l Bond 7.6 72.6 9/21/2034 SV USD
El Salvador Gov'tInt'l Bond 7.1 68.4 1/20/2050 SV USD
El Salvador Gov'tInt'l Bond 7.6 72.9 2/1/2041 SV USD
Embotelladora Andina SA 6.5 23.2 6/1/2026 CL CLP
EFE 3.8 65.7 9/14/2061 CL USD
EFE 3.1 59.8 8/18/2050 CL USD
EFE 3.1 59.8 8/18/2050 CL USD
EFE 3.8 65.8 9/14/2061 CL USD
EFE 6.5 11.1 1/1/2026 CL CLP
ETESA 5.1 71.5 5/2/2049 PA USD
ETESA 5.1 72.2 5/2/2049 PA USD
Metro SA 3.7 65.1 9/13/2061 CL USD
Metro SA 3.7 65.0 9/13/2061 CL USD
Metro SA 5.5 50.1 7/15/2027 CL CLP
Metro SA 5.0 63.8 5/11/2025 AR USD
ENAP 4.5 73.2 9/14/2047 CL USD
ENAP 4.5 73.2 9/14/2047 CL USD
ENA Master Trust 4.0 70.5 5/19/2048 PA USD
ENA Master Trust 4.0 70.9 5/19/2048 PA USD
Enel Generacion Chile SA 6.2 29.2 10/15/2028 CL CLP
Equatorial Energia 10.9 1.1 10/15/2029 BR BRL
Equatorial Energia 10.8 1.0 5/15/2028 BR BRL
Esval SA 3.5 13.1 2/15/2026 CL CLP
Farfetch 3.8 4.3 5/1/2027 KY USD
Fospar S/A 6.5 1.4 5/15/2026 BR BRL
GDM Argentina SA 2.5 0.0 9/8/2024 AR USD
GDS Holdings 4.5 67.7 1/31/2030 KY USD
Generacion Mediterranea SA 4.6 0.0 11/12/2024 AR ARS
General Shopping Finance 10.0 66.2 KY USD
General Shopping Finance 10.0 65.0 KY USD
Genneia SA 2.0 56.9 7/14/2028 AR USD
Greenland Hong Kong 10.2 13.4 KY USD
Guacolda Energia SA 4.6 70.5 4/30/2025 CL USD
Guacolda Energia SA 10.0 70.1 12/30/2030 CL USD
Guacolda Energia SA 4.6 71.8 4/30/2025 CL USD
Guacolda Energia SA 10.0 70.1 12/30/2030 CL USD
Hector A Bertone SA 1.9 0.0 4/7/2024 AR USD
Hilong Holding 9.8 68.7 11/18/2024 KY USD
Hilong Holding 9.8 69.7 11/18/2024 KY USD
Hilong Holding 9.8 69.4 11/18/2024 KY USD
Multiplo SA 3.3 59.5 BR USD
Itau Unibanco SA/Nassau 5.8 20.2 5/20/2027 BR BRL
Jamaica Gov't Bond 6.3 67.8 7/11/2048 JM JMD
Jamaica Gov't Bond 8.5 73.0 12/21/2061 JM JMD
Lani Finance 1.7 63.5 3/14/2049 KY EUR
Lani Finance 1.9 66.9 10/19/2048 KY EUR
Lani Finance 3.1 66.1 10/19/2048 KY AUD
Lani Finance 1.9 65.8 9/20/2048 KY EUR
Link Finance Cayman 2009 2.2 70.0 10/27/2038 KY HKD
LIPSA Srl 1.0 0.0 8/23/2024 AR USD
Logan Group Co 7.0 5.1 KY USD
Longfor Group Holdings 4.0 43.3 9/16/2029 KY USD
Longfor Group Holdings 3.4 56.1 4/13/2027 KY USD
Longfor Group Holdings 3.9 38.4 1/13/2032 KY USD
Longfor Group Holdings 4.5 53.1 1/16/2028 KY USD
Luminis III 2.3 41.8 9/22/2048 KY USD
Luminis III 2.4 55.3 9/22/2048 KY AUD
Luminis IV 3.2 70.4 1/22/2042 KY AUD
Luminis 2.3 54.8 9/22/2048 KY AUD
Lunar Funding I 1.7 8/11/2056 KY GBP
MTR Corp CI 2.8 73.3 9/6/2047 KY HKD
MTR Corp CI 3.0 73.1 3/11/2051 KY HKD
MTR Corp CI 3.0 75.4 4/26/2047 KY HKD
MTR Corp CI 3.2 73.7 2/5/2055 KY HKD
MTR Corp CI 3.0 73.1 3/11/2051 KY HKD
NIO Inc 4.6 73.1 10/15/2030 KY USD
Panama Gov'tInt'l Bond 4.5 63.1 4/1/2056 PA USD
Panama Gov'tInt'l Bond 2.3 70.2 9/29/2032 PA USD
Panama Gov'tInt'l Bond 3.9 55.8 7/23/2060 PA USD
Panama Gov'tInt'l Bond 4.5 64.9 4/16/2050 PA USD
Panama Gov'tInt'l Bond 4.5 62.0 1/19/2063 PA USD
Panama Gov'tInt'l Bond 4.5 66.6 5/15/2047 PA USD
Panama Gov'tInt'l Bond 4.3 62.6 4/29/2053 PA USD
Peruvian Gov'tInt'l Bond 3.6 71.8 3/10/2051 PE USD
Peruvian Gov'tInt'l Bond 2.8 57.3 12/1/2060 PE USD
Peruvian Gov'tInt'l Bond 3.2 57.3 7/28/2121 PE USD
Peruvian Gov'tInt'l Bond 3.6 65.7 1/15/2072 PE USD
Peruvian Gov'tInt'l Bond 3.3 74.3 3/11/2041 PE USD
Petroleos del Peru SA 5.6 68.3 6/19/2047 PE USD
Petroleos del Peru SA 5.6 68.3 6/19/2047 PE USD
Powerlong Real Estate 6.3 10.3 8/10/2024 KY USD
Provincia de Cordoba 7.1 39.6 10/27/2026 AR USD
Provincia de la Rioja 7.5 45.9 7/20/2032 AR USD
Provincia de la Rioja 4.5 51.8 1/20/2027 AR USD
Chaco Argentina 4.0 0.0 12/4/2026 AR USD
QNB Finance 13.5 63.1 10/6/2025 KY TRY
QNB Finance 11.5 71.7 1/30/2025 KY TRY
QNB Finance 2.9 74.2 9/16/2035 KY AUD
QNB Finance 2.9 72.9 12/4/2035 KY AUD
QNB Finance 3.0 75.4 2/14/2035 KY AUD
QNB Finance 3.4 72.0 10/21/2039 KY AUD
Radiance Holdings Group 7.8 49.6 3/20/2024 KY USD
Rio Alto Energias Renovaveis 7.0 29.1 7/15/2027 BR BRL
Santander Consumer Chile SA 2.9 72.7 11/27/2034 CL AUD
Seazen Group 6.0 75.2 8/12/2024 KY USD
Seazen Group 4.5 34.1 7/13/2025 KY USD
Shui On Development Holding 5.5 61.2 6/29/2026 KY USD
Shui On Development Holding 5.5 73.0 3/3/2025 KY USD
Silk Road Investments 2.9 66.8 1/23/2042 KY AUD
Skylark 1.8 59.0 4/4/2039 KY GBP
Autopista Central 5.3 37.2 12/15/2026 CL CLP
Autopista Central 5.3 50.6 12/15/2028 CL CLP
SQM 3.5 65.5 9/10/2051 CL USD
SQM 3.5 65.5 9/10/2051 CL USD
Southern Water Service 3.0 70.8 5/28/2037 KY GBP
SPE Saneamento RIO 1 7.2 10.8 1/15/2042 BR BRL
SPE Saneamento RIO 1 SA 6.9 10.5 1/15/2034 BR BRL
SPE Saneamento Rio 4 SA 7.2 10.2 1/15/2042 BR BRL
SPE Saneamento Rio 4 SA 6.9 10.2 1/15/2034 BR BRL
Spica 2.0 74.9 3/24/2033 KY AUD
Spirit Loyalty Cayman 8.0 72.2 9/20/2025 KY USD
Spirit Loyalty Cayman 8.0 73.0 9/20/2025 KY USD
Spirit Loyalty Cayman 8.0 70.3 9/20/2025 KY USD
Spirit Loyalty Cayman 8.0 72.5 9/20/2025 KY USD
Sylph 2.7 68.5 3/25/2036 KY USD
Sylph 3.1 74.7 9/25/2035 KY USD
Sylph 2.4 64.2 9/25/2036 KY USD
Sylph 2.9 74.5 6/24/2036 KY AUD
Telecom Argentina SA 1.0 74.0 3/9/2027 AR USD
Telecom Argentina SA 1.0 66.1 2/10/2028 AR USD
Telefonica Moviles Chile SA 3.5 74.4 11/18/2031 CL USD
Telefonica Moviles Chile SA 3.5 74.4 11/18/2031 CL USD
Tencent Holdings 3.2 67.9 6/3/2050 KY USD
Tencent Holdings 3.3 64.0 6/3/2060 KY USD
Tencent Holdings 3.9 73.9 4/22/2061 KY USD
Tencent Holdings 3.8 75.4 4/22/2051 KY USD
Tencent Holdings 3.2 67.6 6/3/2050 KY USD
Tencent Holdings 3.9 73.9 4/22/2061 KY USD
Tencent Holdings 3.3 64.1 6/3/2060 KY USD
Three Gorges Finance 3.2 71.6 10/16/2049 KY USD
Grupo Travessia 9.0 1.6 1/20/2032 BR BRL
Volcan Cia Minera SAA 4.4 62.2 2/11/2026 PE USD
Volcan Cia Minera SAA 4.4 62.0 2/11/2026 PE USD
VTR Comunicaciones SpA 5.1 61.6 1/15/2028 CL USD
VTR Comunicaciones SpA 4.4 60.8 4/15/2029 CL USD
VTR Comunicaciones SpA 5.1 61.9 1/15/2028 CL USD
VTR Comunicaciones SpA 4.4 60.6 4/15/2029 CL USD
YPF SA 7.0 72.6 12/15/2047 AR USD
YPF SA 1.0 66.8 4/25/2027 AR
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Latin America is a daily newsletter
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