---

       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, May 29, 2024, Vol. 25, No. 108

                           Headlines



A R G E N T I N A

ARGENTINA: Economy Extends Downturn Amid Milei's Cuts


B R A Z I L

BRAZIL: Central Bank Plans Year-End Proposal for Crypto Regulation
BRAZIL: Concedes to Q2 GDP Decline


C O L O M B I A

OLEODUCTO CENTRAL: Moody's Cuts Rating on Unsecured Notes to Ba1


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: $5,400M Investment Sustainable Future
DOMINICAN REPUBLIC: Tax Reform Crucial for Achieving Objectives


E L   S A L V A D O R

EL SALVADOR: Moody's Ups LT Foreign Currency Issuer Rating to Caa1


J A M A I C A

JAMAICA: BOJ Says Inflation Target Will Remain at 4-6%
JETCON: Realizes Loss for First Quarter

                           - - - - -


=================
A R G E N T I N A
=================

ARGENTINA: Economy Extends Downturn Amid Milei's Cuts
-----------------------------------------------------
Manuela Tobias at Bloomberg News reports that Argentina's monthly
economic activity extended a downturn in March as President Javier
Milei pressed on with his austerity drive to put an end to
inflation.

The economy in March shrank 8.4 percent from a year ago, more than
the median estimate for a 7.3 percent decline among economists
surveyed by Bloomberg. On a monthly basis, activity dropped 1.4
percent, according to government data published, according to
Bloomberg News.

Since taking office in December, Milei removed generous energy and
transport subsidies, froze public works and sharply devalued the
currency, Bloomberg News relays.  His spending cuts allowed the
government to achieve monthly fiscal surpluses in January through
April, and Economy Minister Luis Caputo expects another positive
print in May, Bloomberg News relays.  The belt-tightening efforts
are reflected in prices, with monthly inflation falling to 8.8
percent in April from a three-decade high of 25.5 percent in
December Bloomberg News notes.

Bloomberg News relays that government popularity remains high even
as the cuts sting the middle class, with subway fares quadrupling
in May.  Argentina's manufacturing and construction output
plummeted in March, Bloomberg News notes.  Industrial production
dropped 21.2 percent in March from a year ago, while construction
activity plunged 42 percent in the same month, a level not seen
since the pandemic lockdowns, Bloomberg News says.  Employers in
both sectors expect to reduce headcount in the coming months,
Bloomberg News notes.

Economists surveyed by Argentina's Central Bank forecast gross
domestic product contracting 3.5 percent this year, according to an
April poll, Bloomberg News relays.  The IMF said at a recent press
conference it expects Argentina to begin growing again in the
second half of the 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.




===========
B R A Z I L
===========

BRAZIL: Central Bank Plans Year-End Proposal for Crypto Regulation
------------------------------------------------------------------
globalinsolvency.com, citing Reuters, reports that Brazil's central
bank announced it has decided to divide the process of regulating
crypto-assets and virtual asset service providers into phases, with
regulatory proposals expected by the end of this year.

The decision effectively delays the completion of the process
following a 2022 law on the subject, which paved the way for
subsequent regulation by the central bank, according to
globalinsolvency.com.

In a congressional hearing last year, the bank's director of
regulation, Otavio Damaso, had projected regulation to be wrapped
up by June 2024, the report notes.  After launching a public
consultation on the matter in December 2023, which concluded in
January, the central bank said it would now open a new consultation
in the second half of 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: Concedes to Q2 GDP Decline
----------------------------------
Richard Mann at Rio Times Online reports that in a surprising
announcement at a Rio de Janeiro conference, the Brazilian
government conceded that the second quarter's GDP might see a dip.

This comes after catastrophic floods hit Rio Grande do Sul, an
economic powerhouse in the south, according to Rio Times Online.

Planning Minister Simone Tebet shared the news, highlighting the
floods' severe toll on the region, the report notes.

Moreover, Tebet voiced hope, suggesting that the economy might
bounce back by the end of the year, thanks to targeted government
stimulus, the report relays.

Analysts agree, predicting a short-term downturn but remaining
optimistic about a quick recovery, the report discloses.

This resilience is crucial; Rio Grande do Sul isn't just any
region—it's a hub for agriculture and industry, contributing
significantly to Brazil's overall economic performance, the report
says.

Despite the setbacks, Brazil's economic forecast for the year still
shows promise, the report relays.

Rio Times Online discloses that the government projects a growth
rate of 2.5%, slightly higher than financial market predictions of
2.09%.

As the world watches, Brazil's response offers a case study in
handling economic shocks with agility and foresight, the report
relays.

The government's strategic interventions aim to mitigate the
disaster's impacts and secure a robust recovery, the report notes.

This scenario underscores the broader global issue of economic
stability in the face of natural disasters, resonating with
audiences worldwide who face similar threats, the report relays.

                        Background

Heavy rains battered Brazil's southernmost state, Rio Grande do
Sul. The storm undid days of cleanup efforts, the report discloses.
Previously unaffected areas in Porto Alegre flooded, the report
notes.

Over the past month, record flooding claimed 163 lives, the report
relays.  The disaster displaced approximately 600,000 people, the
report notes.  Another 64 individuals remain missing, the report
says.

According to the national meteorological institute, some parts of
Porto Alegre received a month's worth of rain in 12 hours, the
report discloses.  The latest flooding affected new areas,
including southern regions, the report adds.

                         About Brazil

Brazil is the fifth largest country in the world and third largest
in the Americas. Luiz Inacio Lula da Silva won the 2022 Brazilian
general election. He was sworn in on January 1, 2023, as the 39th
president of Brazil, succeeding Jair Bolsonaro.

S&P Global Ratings raised on Dec. 19, 2023, its long-term global
scale ratings on Brazil to 'BB' from 'BB-'. The outlook on the
long-term ratings is stable. S&P affirmed Brazil's global scale
short-term ratings at 'B' and its national scale long-term rating
at 'brAAA'. S&P also raised the transfer and convertibility
assessment on the country to 'BBB-' from 'BB+'. S&P said, "The
stable outlook reflects our expectation that Brazil will maintain
A strong external position, thanks to strong commodity output and
limited external financing needs. We also believe Brazil's
institutional framework can sustain stable and pragmatic
policymaking based on extensive checks and balances across the
executive, legislative, and judicial branches of government. We
expect a very gradual fiscal correction but anticipate fiscal
deficits will remain large."

Fitch Ratings affirmed on Dec. 15, 2023, Brazil's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'BB' with a Stable
Outlook. Fitch said Brazil's ratings are supported by its large and
diverse economy, high per-capita income, and deep domestic markets
and a large cash cushion that support the sovereign's financing
flexibility and its high local-currency debt share. Strong external
finances support resilience to shocks, underpinned by a flexible
exchange rate, robust international reserves and a sovereign net
external creditor position. The ratings are constrained by weak
economic growth potential, relatively low governance scores, high
and rising government debt/GDP, and budgetary rigidities. A new
fiscal framework introduced this year aims to anchor a gradual
consolidation process and address these fiscal weaknesses, but its
effectiveness is increasingly unclear.

Moody's credit rating for Brazil was last set at Ba2 in 2018 with
stable outlook.  Moody's affirmed the Ba2 issuer ratings and
senior unsecured bond ratings in April 2022.

DBRS Inc., on August 15, 2023, upgraded Brazil's Long-Term
Foreign and Local Currency - Issuer Ratings to BB from BB (low).
At the same time, DBRS Morningstar confirmed Brazil's
Short-term Foreign and Local Currency - Issuer Ratings at R-4.
The trend on all ratings is Stable (March 2018).




===============
C O L O M B I A
===============

OLEODUCTO CENTRAL: Moody's Cuts Rating on Unsecured Notes to Ba1
----------------------------------------------------------------
Moody's Ratings downgraded Oleoducto Central S.A.'s (Ocensa) Senior
Unsecured Rating to Ba1 from Baa3 and changed the outlook to stable
from negative.

This follows Moody's rating action in which the agency downgraded
Ecopetrol S.A.'s (Ecopetrol) ratings to Ba1 from Baa3 and changed
the outlook to stable from negative.

RATINGS RATIONALE

The downgrade of Ocensa's rating to Ba1 from Baa3 and the change in
outlook to stable from negative reflect the rating action on
Ecopetrol, its main shareholder and customer - Ecopetrol indirectly
owns over 73% of Ocensa's capital and is the off-taker of more than
70% of the company's volume capacity. Ocensa has adequate corporate
governance practices regarding independent board members and
minority veto rights on capital structure, dividends, capital
spending, and asset sales. However, the company remains vulnerable
to possible adverse influence by Ecopetrol.

Ocensa's Ba1 rating reflects its low financial leverage (gross
debt/ EBITDA lower than 0.5x on a sustained basis) and leading
industry position in Colombia; its strategic importance to
Ecopetrol; and the favorable industry dynamics in Colombia in terms
of preference for pipeline transportation given the country's
geography. Ocensa's rating also incorporates its regulated tariffs
and sales contract structure, which support solid margins and
predictable cash flows.

These factors help mitigate its business exposure to a single asset
(pipeline); its small scale within the midstream peer group; and
its high dividend payout policy. Ocensa's Ba1 rating also considers
Moody's expectation of at least stable oil production in Colombia
in the foreseeable future and that Ocensa will remain the
transportation pipeline of choice in the country.

The rating also incorporates the consideration that the updated
regulated tariff, which was originally intended to be deployed in
July 2023, will continue to encounter unexpected delays in the
formulation of the new methodology to determine the adjustments.
Regardless, Moody's forecasts the maintenance of strong revenue
stream and cash flow throughout 2024.

Ocensa has good liquidity. The company repurchased $100 million of
its $500 million bond issuance during 2023 with available cash.
Ocensa's next major debt payment of $400 million is due in July
2027. The company's cash on hand as of December 2023 was close to
$287 million. Moody's expects the company's capital spending in the
next couple of years to be low and mainly focused on maintenance
and internal projects. Ocensa has no committed bank facilities but
has close relationships with Colombian banks.

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

Ocensa's rating could be upgraded if it maintains strong credit
metrics but reduces distributions to shareholders to levels more
aligned with the interests of bondholders and if Ecopetrol's
ratings are upgraded, given the close linkages between both
companies from the control and revenue perspectives.

In turn, large projects or acquisitions that increase financial
leverage could trigger a negative action on Ocensa's rating. A
downgrade of Ecopetrol's ratings would result in a rating downgrade
for Ocensa.

Ocensa is the largest crude oil pipeline and the only public-use
pipeline in Colombia. Its pipeline is about 848 kilometers (km)
long (836 km on land and 12 km offshore) with 745,000 barrels per
day (bpd) of nominal capacity and 579,000 barrels per day of
average volume. Ocensa connects the country's largest
crude-producing fields in the Llanos Basin at the Cusiana
offloading facility to export facilities at Covenas on the
Caribbean coast. The company is 72.7% owned by Ecopetrol through
its wholly owned midstream subsidiary, Cenit SAS, the remaining
27.3% belong to a joint venture between Romero Group and I Capital
Square, a private equity firm. In December 2023, the company's
assets amounted more than $1.83 billion.

The principal methodology used in this rating was Midstream Energy
published in February 2022.




===================================
D O M I N I C A N   R E P U B L I C
===================================

DOMINICAN REPUBLIC: $5,400M Investment Sustainable Future
---------------------------------------------------------
Dominican Today reports that during the panel discussion titled
"Opportunities and Challenges in the Energy Transition and
Sustainable Development of the Dominican Republic," Edward Veras,
the executive director of the National Energy Commission (CNE),
emphasized the need for significant investment in renewables to
achieve the country's 2030 targets.  Veras stated that the
Dominican Republic requires $5,400 million in investments to reach
its goals, according to Dominican Today.

"In order to attain 30% renewable energy by 2030, the upcoming
edition of the National Energy Plan will propose the necessity of
$5,400 million in investments," Veras explained, the report notes.

He emphasized the crucial role of private investments in renewable
energy projects to meet the nation's energy objectives, the report
relays.  Veras noted, "Considering both energy produced in the main
system and distributed generation, we have currently achieved
between 16 and 17% renewable energy. With the ongoing construction
of various projects, reaching the 25% mark by 2025 is feasible,"
the report discloses.

Dominican Today relays that Veras highlighted the government's
commitment to expanding the use of natural gas and integrating
renewable energies, as outlined in the 2022 Energy Plan.  "The
first step in this endeavor was to resume comprehensive planning,"
Veras acknowledged, emphasizing the conducive environment for
investors created by this approach, the report discloses.



He stressed the importance of collaborative efforts among all
stakeholders in the sector to ensure a sustainable and prosperous
energy future, stating, "Without proper planning, raising capital
in the market will not be feasible," the report notes.

Veras reassured that public policies will provide stability to the
existing legal framework, offering the necessary reliability for
investments, the report relays.

Furthermore, he underscored the significance of technological
innovation and research advancements in supporting the energy
transition and enhancing efficiency in renewable resource
utilization, the report says.

The panel also featured contributions from Andres Astacio,
Superintendent and President of the SIE Council; Yamily Lopez,
General Manager of REFIDOMSA; and Martín Robles, General
Administrator of ETED. Manuel Cabral, executive vice president of
ADIE, served as the moderator, the report notes.

The discussion encompassed topics such as renewable energies,
energy efficiency, emerging technologies, and environmental
sustainability, the report says.  It served as a platform to
propose innovative strategies aimed at accelerating the energy
transition and positioning the Dominican Republic as a regional
leader in resilience and energy diversification, the report adds.

                  About Dominican Republic

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

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

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

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

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

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

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

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



DOMINICAN REPUBLIC: Tax Reform Crucial for Achieving Objectives
---------------------------------------------------------------
Dominican Today reports that Rosanna Ruiz, the executive president
of the Association of Multiple Banks (ABA), emphasized the
necessity of tax reform to achieve the goals of the National
Development Strategy. She stressed that this reform should involve
public-private consultations.

"The best reform is to grow, because if wealth and jobs are
generated, there are resources to raise," Ruiz stated during an
interview on the ImoneyRadio program, as shared on the ABA's X
account, according to Dominican Today.

She highlighted that the sector's tax pressure is 22.9%, but it
reaches 29% when including the bank consolidation fund, the
contingency fund, and the supervision fee, making it the highest
among all economic actors, the report relays.

Ruiz believes that facilitating taxation for micro, small, and
medium-sized enterprises (MSMEs) is crucial for their formalization
and ease in tax payments, the report relays.  "It is vital to
reorganize public spending and promote public-private partnerships
to finance infrastructure and productive works," she added.

She assured that the financial sector is ready to contribute to the
negotiation table for the crucial fiscal pact needed for the
country's economic and social development. She also noted
opportunities to expand the tax base without penalizing productive
sectors, the report notes.

"The role of the financial system is fundamental for the
sustainability of public finances and to continue generating wealth
and jobs," Ruiz concluded, the report adds.

                  About Dominican Republic

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

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

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

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

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

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

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

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




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

EL SALVADOR: Moody's Ups LT Foreign Currency Issuer Rating to Caa1
------------------------------------------------------------------
Moody's Ratings has upgraded the Government of El Salvador's
long-term foreign currency issuer and senior unsecured ratings to
Caa1 from Caa3. The outlook remains stable.

The upgrade is driven by a material decrease in credit risks, from
very high-risk levels, for the sovereign given a lower likelihood
of liquidity stress episodes. Liability management operations
involving a debt buyback carried in April 2024 have significantly
reduced external debt amortizations through 2027. In addition, the
government has been able to extend the maturity profile of its
domestic debt decreasing its reliance on short-term instruments by
issuing longer-dated notes to local banks, and debt reprofiling
operations coupled with moderate and relatively stable fiscal
deficits have reduced government overall financing needs.

El Salvador's Caa1 rating continues to incorporate weak
institutions and governance, as well as relatively high
susceptibility to event risk which reflects the government's
limited access to cross-border funding.

The stable outlook balances positive developments that have led to
a more favorable debt profile, which could reduce liquidity-related
credit risks more significantly than currently assessed, as well as
the substantial improvement in domestic security and safety that
could support increased investment prospects and higher economic
growth, against continued credit challenges that weigh on El
Salvador's credit profile and pose downside risks, including
limited fiscal space, low debt affordability, and lack of a fiscal
and financing strategy that effectively addresses elevated funding
costs and identifies accessible financing to meet medium-term
repayment needs.

Concurrently, El Salvador's foreign-currency ceiling was raised to
B2 from Caa1, maintaining a two-notch gap between the sovereign
rating and the foreign-currency ceiling to reflect weak policy
effectiveness, low capital account openness, and the government's
relatively large share in the country's total external debt.
Moody's does not assign a local currency country ceiling for El
Salvador because the country is fully dollarized.

RATINGS RATIONALE

RATIONALE FOR THE UPGRADE TO Caa1

REDUCED RISK OF A LIQUIDITY STRESS-RELATED CREDIT EVENT AS A RESULT
OF REDUCED EXTERNAL DEBT AMORTIZATIONS THROUGH 2027

El Salvador's near-term risk of a credit event has decreased
materially and external maturities through the end of 2027 are now
low. On April 19, the government settled a reprofiling operation
where it bought back a portion of its 2025, 2027 and 2029
outstanding global bonds through a tender offer where investors
were offered prices slightly above the prevailing market price at
the time of the tender announcement. In parallel, the government
issued a $1 billion bond maturing in 2030 that helped finance the
repurchase and provided additional funds for general budgetary
support. The bond was issued below par to yield about 12%,
demonstrating market access at an elevated but not distressed yield
level that supported Moody's decision not to view the buyback as a
distressed exchange, in addition to Moody's view that the
transactions were akin to a liability management operation given
that, without them, the government would likely have fulfilled its
near-term financial commitments.

The new issuance consisted of two jointly issued instruments.
First, the aforementioned 2030 notes and, second, interest only
notes (officially Macro Variable Interest Only Step-up Notes). The
interest-only notes will pay a coupon of 0.25% until October 2025,
when the sovereign must meet a "macro test," by either signing an
agreement for a program with the IMF or by achieving a credit
rating of B2 or B from two of three major credit rating agencies.
If the sovereign achieves either of the two conditions, the coupon
on the interest-only notes will remain 0.25%. If the sovereign
fails to meet either of the two conditions, the coupon increases to
4%. The macro test is then conducted every six months until the
final maturity date of April 2030.

El Salvador's funding capacity remains limited, but new financing
options have opened up with access to international capital markets
and improved market sentiment. Overall, the April transactions
helped the sovereign regain market access and reduce its financing
needs through 2027, keeping liquidity risks in check. Repayment
risk for the 2025 bonds has declined substantially given the small
amount of principal outstanding, leaving only $99.6 million in
principal at par value. Moreover, the government has set aside part
of the funds raised from the April bond issuance to cover the
remaining principal of the January 2025 bond. The improved external
amortization profile supports a lower repayment risk.

Nevertheless, funding capacity remains somewhat limited based on
the cost at which the sovereign can currently access external
markets, the fact that official dollarization constrains the
availability of a lender of last resort, and the lack of an
International Monetary Fund (IMF) program that could provide and
catalyze funding at more affordable rates. Local funding options
are also limited, with a shallow domestic market and with banks
having an elevated exposure to government debt.

DOMESTIC DEBT REPROFILING OPERATIONS HAVE IMPROVED THE MATURITY
PROFILE

Moody's forecasts that the sovereign's financing needs declined to
11.1% of GDP in 2024 from 13.2% in 2023, and that they will
continue to decline to 9.1% in 2025. The lower financing needs are
the result of an agreement between the sovereign and the country's
private banks to lengthen the maturity profile of their government
debt holdings. In October 2023, domestic banks began accepting
government-issued notes with longer maturities once some of the
existing short-term instruments known as LETES and CETES came due.
The exchange was not carried out as a swap or as a single
operation, rather the new notes are being issued as the stock of
LETES and CETES matures through September 2024. Moody's understands
that once completed, approximately $1.5 billion (4.2% of GDP) of
short-term instruments will have been swapped for longer-dated debt
with maturities of two, three, five and up to seven years, but with
a correspondingly higher interest rate, such that no economic loss
is being incurred. The longer maturities are greatly contributing
to reduce the government's yearly financing needs and easing
rollover risk.

MODERATE AND RELATIVELY STABLE FISCAL DEFICITS ALSO CONTRIBUTE TO
LOWER FINANCING NEEDS

Additionally, the continued improvement in fiscal performance also
supports lower borrowing requirements. The non-financial public
sector (NFPS) deficit narrowed to 2.3% of GDP in 2023, its lowest
level since 2007, down from 2.6% in 2022 and 5.5% in 2021. The
narrower deficit was partly supported by a suspension of transfers
to the private pension system enabled by the pension reform from
December 2022 that resulted in approximately 1.4% of GDP in pension
deferrals including interest payments on pension certificates. The
deferrals are likely to remain in place in 2024 such that Moody's
forecasts the NFPS deficit will remain unchanged at 2.3% of GDP.

Despite the lower financing needs, weak institutions and the still
limited funding capacity will continue to constrain the sovereign's
creditworthiness, particularly if a greater share of more
affordable financing is not forthcoming. In this regard, an IMF
program and the associated financing from other multilateral
institutions would help to bring down the overall cost of funding
and provide a credible fiscal anchor that could allow the sovereign
to access market funding at more affordable rates. Absent an IMF
program, Moody's believes that presently weak governance will
continue to undermine policy predictability.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook balances the positive trends above against
continued credit challenges that could weigh on El Salvador's
credit profile more than Moody's currently assumes, including the
lack of a fiscal and financing strategy that effectively addresses
elevated funding costs and identifies accessible financing to meet
medium-term repayment needs. The sovereign's persistently low debt
affordability constrains fiscal space and leaves little room for
policy maneuver.

A well-articulated funding strategy that identifies financing
sources at more affordable rates would support an improvement in
funding costs and could begin to address the challenge of low debt
affordability given that Moody's estimates that interest payments
in 2024 will represent approximately 3.9% of GDP (15.9% of NFPS
revenues), even with the suspension of interest payments on the
pension certificates. There are indications that such a strategy is
part of the working agenda and negotiations with the IMF. Should
the ongoing negotiations with the IMF result in a financing
program, the increased transparency in the form of regular IMF
monitoring and reports would provide more visibility about the
country's fiscal outlook and financing prospects. Moody's current
baseline is that the prospect of an agreement remains unclear. If
an agreement is reached, depending on the details and the
government's adherence to the program, this could constitute an
upside risk for El Salvador's credit profile.

The strong decline in violence levels in the country is addressing
a longstanding constraint to higher growth. The sustained
improvements in the security environment could potentially remove a
major deterrent to investment and to the tourism sector that holds
much promise for diversifying the economy. The improved security
situation has not yet led to a marked shift in foreign direct
investment (FDI) inflows or the overall level of gross investment
in the economy, despite an uptick in the years since the global
pandemic where it has averaged 20.1% in 2021-23 from an average of
17.1% in 2010-19. Should investment be sustained at such levels or
higher, upside risks to growth and fiscal revenues could arise and
enhance fiscal flexibility.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS

El Salvador's ESG Credit Impact Score (CIS-4) reflects the
country's governance challenges that weigh on creditworthiness,
elevated social risks that have also constrained economic
performance and the country's elevated exposure to environmental
risks.

El Salvador's exposure to environmental risks (E-4 issuer profile
score) reflects exposure to physical climate change and limited
natural capital. El Salvador's geography is dominated by a region
known as the Dry Corridor, characterized by heavy precipitation
events that lead to flooding and landslides and occasional
droughts. The steady rise in the frequency and severity of droughts
and other climate-related shocks poses a threat to the country's
agriculture sector, which employs 16% of the country's workforce.
Extreme weather events can influence El Salvador's key credit
metrics, such as GDP growth volatility, household incomes and
agricultural export earnings.

Exposure to social risks (S-4 issuer profile score) reflects
challenges from a lack of adequate housing in the country. Low
availability of adequate housing reflects the high levels of
informality in the economy and is also a vestige of the elevated
levels of violence the country experienced. Violence levels have
declined markedly in recent years. El Salvador's homicide rate has
decreased substantially, going from one of the highest in the
Western Hemisphere to one of the lowest. In the past, violence had
been a key driver behind the significant emigration of its
residents to the US. While remittances from El Salvadorans living
abroad support more than 25% of economic activity, which boosts
consumption, the country's investment levels, productivity and
long-term growth potential have been negatively affected by the
high level of violence that is subsiding. As citizens begin feeling
more secure, their priorities will shift toward demanding more
basic services including housing, health and education.

El Salvador's governance risks (G-5 issuer profile score) reflect
its weak government effectiveness, rule of law and control of
corruption. Weak governance in El Salvador undermines policy
predictability and has led to a lack of transparency on government
finances and financing plans. Moreover, weakened checks on
executive power have centralized decision making, giving rise to
discretionary and erratic policymaking, such that the government
has at times prioritized political considerations that weighed on
investor sentiment.

SUMMARY OF MINUTES FROM RATING COMMITTEE

GDP per capita (PPP basis, US$): 11,179 (2022) (also known as Per
Capita Income)

Real GDP growth (% change): 2.8% (2022) (also known as GDP Growth)

Inflation Rate (CPI, % change Dec/Dec): 7.3% (2022)

Gen. Gov. Financial Balance/GDP: -2.6% (2022) (also known as Fiscal
Balance)

Current Account Balance/GDP: -6.8% (2022) (also known as External
Balance)

External debt/GDP: 66.2% (2022)

Economic resiliency: b2

Default history: At least one default event (on bonds and/or loans)
has been recorded since 1983.

On May 22,2024, a rating committee was called to discuss the rating
of the El Salvador, Government of. The main points raised during
the discussion were: The issuer's economic fundamentals, including
its economic strength, have not materially changed. The issuer's
institutions and governance strength, have materially increased.
The issuer's fiscal or financial strength, including its debt
profile, has materially increased. The issuer's susceptibility to
event risks has not materially changed.

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

WHAT COULD MOVE THE RATINGS UP

A significant narrowing of the fiscal deficit that leads to a
material reduction in financing needs or increased availability of
funding at more affordable rates, including through an IMF program,
would support improved debt affordability and could lead to an
upgrade. Additionally, a credible medium-term fiscal framework and
financing plan would provide evidence of increased policy
predictability supporting a higher rating.

WHAT COULD MOVE THE RATINGS DOWN

A material widening of the fiscal deficit, the re-emergence of
liquidity pressures as a result of a deterioration in debt
affordability or evidence of financing strains that weaken the
government's capacity to service debt could lead to a downgrade.

The principal methodology used in these ratings was Sovereigns
published in November 2022.




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

JAMAICA: BOJ Says Inflation Target Will Remain at 4-6%
------------------------------------------------------
RJR News reports that the Bank of Jamaica says the country's
inflation target will remain at 4 to 6 per cent.

BOJ Governor Richard Byles says it received written confirmation
from Finance Minister Dr. Nigel Clarke in April, according to RJR
News.

"This inflation target is a major policy instrument for the
government of Jamaica, and it is an important guidance tool for the
entire economy.  The target is the anchor that underpins how
individuals and businesses should view current and future changes
in the general level of prices in the economy. The determination of
the target by the minister followed consultation with the central
bank," he outlined, the report notes.  

The central bank says it recommend the target being maintained,
based on Jamaica's economic structure and rate of development, the
report relays.

The 4 to 6 per cent target range was first implemented in 2017, 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.


JETCON: Realizes Loss for First Quarter
---------------------------------------
RJR News reports that used car dealer Jetcon Corporation has
reported a loss for the first quarter ending March 2024.

The company made a total loss of J$885,500, according to RJR News.

That's 50.3 per cent less than their loss in March 2023, which was
J$1.76 million, the report notes.

Jetcon says its revenues totaled J$136.4 million for the three
months, the report relays.

That's compared to the J$179.7 million made during the same period
in March 2023, the report says.

Low vehicle sales and increased expenses accounted for the
performance, 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
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Peter A. Chapman at 215-945-7000.
.


                  * * * End of Transmission * * *