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       T R O U B L E D   C O M P A N Y   R E P O R T E R

                 L A T I N   A M E R I C A

          Friday, June 7, 2024, Vol. 25, No. 115

                           Headlines



A R G E N T I N A

FABRICACIONES MILITARES: Vested Interests Stall Milei's Plan
FTX GROUP: Ex-Executive Salame Sentenced to 7.5 Years in Prison
POSADAS: Police Protest Lifted After Pay Deal


B R A Z I L

BANCO DE DESENVOLVIMENTO: Fitch Affirms BB/B IDRs, Outlook Stable
BRAZIL: Economy Has Been Remarkably Resilient, IMF Says
LIGHT SA: Creditors Approve Restructuring Plan
PETROBRAS: Moody's Affirms 'Ba1' CFR, Outlook Stable


C H I L E

AES ANDES: Fitch Gives BB Rating on Up to $500MM Junior Sub. Notes


E C U A D O R

ECUADOR: IMF OKs 48-Month US$4 Billion Extended Fund Facility Deal


J A M A I C A

JAMAICA: NFA Reporting Uptick in Seafood Production


P E R U

CAMPOSOL SA: Moody's Upgrades CFR to B3 & Alters Outlook to Stable


X X X X X X X X

LATAM: New Report Reveals Region Represent 7.3% of Global GDP

                           - - - - -


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

FABRICACIONES MILITARES: Vested Interests Stall Milei's Plan
------------------------------------------------------------
Buenos Aires Times reports that after almost six months in office,
the Javier Milei government has yet to define what to do with the
giant state-run firm that provides 1,465 jobs and covers over
55,000 hectares of terrain – almost triple the surface of Buenos
Aires City.

Over the years, Fabricaciones Militares Sociedad del Estado (FMSE),
the munitions manufacturer and complex that is dependent on the
Defence Ministry, has been at the heart of political scandal and
corruption allegations, according to Buenos Aires Times.

It was targeted by President Milei and appeared on the initial list
of companies to be privatised in the first run of his
'Omnibus'/'Ley de Bases' mega-reform bill, the report notes.
However, by the time the proposed legislation re-appeared last
month, it had been excluded, the report discloses.

Nevertheless, the government does not rule out advancing with its
privatisation again at a later date, the report notes.

In recent weeks the FMSE board of directors, headed by Hugo
Pascarelli, has embarked upon a plan of voluntary and early
retirement offers, the report relays.  "The objective of the board
of directors is to have a staffing in keeping with the company's
economic and productive reality for its daily operations," read an
April communiqué addressing the subject, the report says.

On May 21, Fabricaciones Militares decided to halt activities at
its Azul FANAZUL branch in Buenos Aires Province, one of its five
industrial plants where it produces mining explosives, the report
relays.  The official argument is that there is no remaining market
for the product, given the supposed collapse of an agreement with a
Peruvian mining company, the report discloses.

In Cordoba, the company has two more plants: one in Villa María
producing mining explosives and gunpowder in bulk, the other in
Río Tercero separated into two sites, the report relays.  One is
dedicated to metal engineering for the repair and upkeep of railway
rolling stock and Army jeeps and the manufacture of storage tanks
for chemicals, while the other sector operates as a chemicals plant
producing nitric acid, ammonium nitrate and sulphuric acid, the
report notes.

The firm's main munitions plant is in Luis Beltran Fray, Santa Fe
Province, where it produces ammunition of different calibre,
bulletproof jackets and hand grenades, the report relays.

These industrial plants, plus the company's central administrative
headquarters in the nation's capital, total almost 1,400 hectares,
the report discloses.  But Perfil has been able to ascertain that
the sum total of FMSE assets is a total 55,388 hectares – i.e.
almost triple the land surface of Buenos Aires City, the report
relays.  The vast differential comes from just one site: the
Serrezuela shooting range in Córdoba that accounts for 53,869
hectares, the report notes.

The company has been loss-making in the past with negative balances
of 447,026,129 and 948,781,877 pesos in the years 2020 and 2021,
respectively, the report relays.  It has reversed the situation in
the last two years, according to accounts to which Perfil had
accesses, posting surpluses of 423,756,262 pesos in 2022 and
10,864,973,506 pesos last year – a massive improvement from one
year to the next, the report discloses.

                           Controversies

The firm's assets, however, do not tell the full story.
Fabricaciones Militares has been at the heart of a series of
controversies and scandals involving deficient products and
overpricing, the report relays.

In 2021, the company was denounced for the overpriced purchase of
Beretta Pistols in relation to direct contracts dating from 2017,
as well as the overpriced sale of bulletproof jackets to Santa Fe
Province. Contraband has also been suspected in the case of
armaments manufactured in Río Tercero, the report says.

The biggest recent controversy has been the sale of deficient
bulletproof jackets with ANMAC banning the continued manufacture of
that model, the report relays.  The death of Buenos Aires City
Police officer Maribel Salazar in February, 2023, placed the
spotlight on those bulletproof jackets which had been categorised
as "unsuitable" following expert examination, the report notes.

Prosecutors specialising in the illicit use of firearms and other
explosives are investigating irregularities in the manufacture of
these jackets and analysing whether there is sufficient evidence to
present charges, the report relays.  But despite all these
antecedents, Bullrich ordered the purchase of bulletproof jackets
for US$607,500 last December, the report notes.

                         Oversight

The state firm is monitored by ANMAC (Agencia Nacional de
Materiales Controlados), the report discloses.  This means the
state is on both sides of the counter in a sensitive issue like the
manufacture and sale of armaments, the report says.  Until 2015
many officials interchanged careers between FMSE and ANMAC, which
might explain some of the links between Fabricaciones Militares and
its apparent watchdog, the report relays.  Furthermore, there is an
inter-administrative system of contracting – i.e. there is no
need to tender for contracts and purchases being made directly, the
report notes.

Now the Milei government is debating within itself whether to cash
in on the firm's real estate or to beef it up as Argentina attempts
to join NATO as a "global partner," the report relays.

Back in April, Defence Minister Luis Petri met with the treaty
organisation's Assistant Secretary-General Mircea Geoana at NATO
headquarters in Brussels, while he was in Europe to confirm the
purchase of several F-16 fighters of United States manufacture in
Denmark, the report notes.  It's a clear display of where the
government is heading in its foreign policy – to consolidate its
alignment with the United States, Israel and the European Union,
the report says.

One recent internal signal was Petri's dismissal of his portfolio's
Cabinet chief Carlos Becker, who had been imposed by Security
Minister Patricia Bullrich to advance purchases to modernise the
Armed Forces – he had been previously in charge of all war
materiel under the orders of General César Milani, the Army
chief-of-staff during the Cristina Fernández de Kirchner
Presidency, the report adds.


FTX GROUP: Ex-Executive Salame Sentenced to 7.5 Years in Prison
---------------------------------------------------------------
Kanishka Singh at Reuters reports that Ryan Salame, the former
co-CEO of FTX's Bahamian subsidiary and a top lieutenant to the
bankrupt cryptocurrency exchange's founder, Sam Bankman-Fried, was
sentenced to 90 months in prison, U.S. federal prosecutors said.

Salame pleaded guilty in September to making tens of millions of
dollars in unlawful campaign donations to boost causes supported by
his boss. His prison sentence was longer than the five to seven
years sought by prosecutors, according to Reuters.

Bankman-Fried was sentenced earlier this year, opens new tab to 25
years in prison for stealing $8 billion from FTX customers, the
report notes.  A jury found him guilty in November on seven fraud
and conspiracy counts stemming from FTX's 2022 collapse, which
prosecutors have called one of the biggest financial frauds in U.S.
history, the report recalls.

Prosecutors say Salame, Bankman-Fried and former FTX engineering
chief Nishad Singh used FTX customer funds to donate to political
candidates supporting crypto-friendly legislation, the report
discloses.

Salame's lawyers have tried to distance him from the FTX fraud. "He
was duped, as was everyone else, into believing that the companies
were legitimate, solvent and wildly profitable," they said in a
filing earlier in May ahead of the sentencing, the report relays.

In addition to the prison term, Salame, 30, was sentenced to three
years of supervised release and ordered to pay more than $6 million
in forfeiture and more than $5 million in restitution, prosecutors
said in a statement, the report relays.

"Salame's involvement in two serious federal crimes undermined
public trust in American elections and the integrity of the
financial system," said Damian Williams, U.S. Attorney for the
Southern District of New York, the report notes.

Salame gave more than $24 million to Republican candidates and
causes in the 2022 election cycle, according to Federal Election
Commision data, making him one of that year's top donors, the
report says.

He had pleaded guilty to one count of conspiracy to make unlawful
political contributions and one count of conspiracy to operate an
unlicensed money transmitting business, the report adds.

                     About FTX Group

FTX is the world's second-largest cryptocurrency firm.  FTX is a
cryptocurrency exchange built by traders, for traders.  FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.

Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.

Faced with liquidity issues, FTX on Nov. 9, 2022, struck a deal to
sell itself to its giant rival Binance, but Binance walked away
from the deal amid reports on FTX regarding mishandled customer
funds and alleged US agency investigations.  Bankman-Fried agreed
to step aside, and restructuring vet John J. Ray III was quickly
named new CEO.

FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.

FTX Trading and its affiliates each listed $10 billion to $50
billion in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year.  

According to Reuters, SBF shared a document with investors on Nov.
10, 2022, showing FTX had $13.86 billion in liabilities and $14.6
billion in assets.  However, only $900 million of those assets
were
liquid, leading to the cash crunch that ended with the company
filing for bankruptcy.

The Hon. John T. Dorsey is the case judge.

The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor.  Kroll is the claims
agent, maintaining the page
https://cases.ra.kroll.com/FTX/Home-Index

The Official Committee of Unsecured Creditors tapped Paul Hastings
as counsel, FTI Consulting, Inc., as financial advisor, and
Jefferies LLC as the investment banker.  Young Conaway Stargatt &
Taylor LLP is the Committee's Delaware and conflicts counsel.

Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases.

White-collar crime specialist Mark S. Cohen has reportedly been
hired to represent SBF in litigation.  Lawyers at Paul Weiss
previously represented SBF but later renounced representing the
entrepreneur due to a conflict of interest.


POSADAS: Police Protest Lifted After Pay Deal
---------------------------------------------
Buenos Aires Times reports that after nearly two weeks of
demonstrations by the Misiones police officers and penitentiary
staff in Posadas, union representatives have reached a deal with
the provincial government and called off the protest.

Police officers, prison staff and support workers took to the
streets on May 17, setting up an encampment in front of the
regional radio command headquarters, according to Buenos Aires
Times.  Protesters burned tyres and blocked roads as they demanded
pay hikes to combat 290 percent annual inflation, the report
notes.

Teachers, state employees and private-sector workers also joined
the protests, the report relays.

Officers from the Police and the Provincial Penitentiary Service
(SPP) of Misiones Province confirmed a pay deal had been reached
and began dismantling their encampment, the report relays.

'The government understood that the Misiones Police and the
Penitentiary Police Service are the guarantors of security in
Misiones and we had a positive meeting with the coordinating
minister and the head of the Misiones police," confirmed retired
officer Ramón Amarilla, the spokesman for the police and prison
staff, the report notes.

Amarilla reported that Sandro Martínez, head of the local police
force, had summoned reps to make them a new salary proposal that
was ultimately accepted, the report relays.

Minutes of the meeting show that the parties agreed to an increase
of a basic 15,521 pesos, applied proportionately to all positions,
which will be added to salaries starting from June, the report
discloses.

The increase brings the starting salary for a Posadas police
officer to 520,000 pesos, the report notes.

Governor Hugo Passalacqua and police officials also agreed to meet
again in July to re-analyse salary scales, the report relays.

Amarilla added that "all measures are backdated to January 1.  We
are recognised as a body to discuss salary and labour issues.  We
achieved 15,521 pesos for the settlement of the month of June to
the basic salary and we continue to discuss for the coming months.
We will meet again in July," report discloses.




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

BANCO DE DESENVOLVIMENTO: Fitch Affirms BB/B IDRs, Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has affirmed Banco de Desenvolvimento do Espirito
Santo S.A.'s (Bandes) Long-Term Local and Foreign Currency Issuer
Default Ratings (IDRs) at 'BB', and Short-Term Local and Foreign
Currency IDRs at 'B'. The Rating Outlook is Stable. In addition,
Fitch has affirmed Bandes' Shareholder Support Rating (SSR) at 'bb'
and Long-Term National Rating at 'AAA(bra)'/Outlook Stable.

KEY RATING DRIVERS

Ratings Driven by SSR: Bandes' IDRs and National Ratings are driven
by its SSR, and based on the expectation of support from its
controlling shareholder, the government of the State of Espirito
Santo. Fitch believes Bandes plays an important policy role for the
state, as it is the government's development arm, with an important
role in boosting the local economy's growth through lending to
small and medium enterprises, as well as providing resources for
municipalities within the state.

High Propensity of Support: In Fitch's view, the shareholder's
propensity to provide support to Bandes, if needed, is high,
reflecting the bank's strategic role and importance as a
development bank in the State of Espirito Santo.

Fitch views group regulation of the institution relative to the
financial capacity of Espirito Santo as a significant factor for
Bandes' rating. Since the regulator is very active and imposes some
limitations on the actions of development banks in Brazil, the fact
that there is no impediment on the regulator's part for potential
support by the state is an important factor.

Fitch also considers in its assessment Bandes' relatively
manageable size, high reputational risk to the state, high level of
operational integration between the state and Bandes, and that the
development bank is a state-owned institution.

Regional Development: Bandes' main objective is to expand and
promote government programs to help develop the regional economy
through financing lines to small and medium-sized enterprises and
municipalities, especially for investments focused on technology.
Bandes also plays an important role in supporting the state economy
through government created funds managed by the bank.

No VR: Fitch does not assign Bandes a Viability Rating, as the
bank's business model is largely determined by its policy role and
its ratings, in Fitch's view, are entirely determined by the
support it would receive from the State of Espirito Santo.

Financial Performance with Moderate Influence on Ratings: Bandes'
primary risk is credit, which represents 71% of its risk-weighted
assets (RWA). The top 10 clients comprised 25% of its total
portfolio in 2023 (20% in 2022). Fitch believes that, as with other
public banks, strategies and goals could be influenced by the
political guidelines of the bank's shareholder. Loans classified in
the D-H categories have decrease over the past years from
persistently high levels in 2018-2019.

In 2018-2019, a severe drought affected the State of Espirito Santo
and its customers, leading to high delinquency ratios. Impaired
loans/gross loans fell to 14.8% in 2023 from 24.2% in 2022 and
35.5% in 2019. Additionally, NPLs over 90 days were low at 1.8% in
2023 (2.4% in 2022), showing that new credit concessions have also
performed well.

Better Profitability Support Capitalization: The bank's revised
strategy has also resulted in improved profitability. In 2023, the
operating profits/RWA ratio was 9.2% compared with 7.3% in 2022,
5.8% in 2021 and four-year average of 6.3%. The bank remains
strongly capitalized, supported by the state government, and
maintains sufficient liquidity. Bandes' regulatory capital ratio
was 37% at YE 2023 (29% at YE 2022), and capital is integrally
composed of common equity Tier 1.

New Funding Sources: As a development bank, Bandes has limited
funding sources compared to commercial banks. The credit portfolio
has been financed by equity and deposits, mainly from the State of
Espirito Santo, or lending from official entities, such as Banco
Nacional de Desenvolvimento e Social (BNDES). Bandes aims to
increase and diversify its funding profile, including with credit
from international development banks such as the IDB
(Inter-American Development Bank).

RATING SENSITIVITIES

Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade

IDRs, National Ratings and SSR

- A deterioration of Fitch's view of the State of Espirito Santo's
creditworthiness;

- A deterioration on Fitch's view of the State of Espirito Santo's
propensity to support Bandes.

Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade

- Fitch's improved view of the State of Espirito Santo's
creditworthiness;

- Fitch's improved view of the State of Espirito Santo's propensity
to support Bandes.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

Bandes' SSR and IDRs are linked to the credit quality of its
parent, Espirito Santos State.

ESG CONSIDERATIONS

The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.

   Entity/Debt                     Rating              Prior
   -----------                     ------              -----
Banco de
Desenvolvimento
do Espirito
Santo S.A.      LT IDR              BB      Affirmed   BB
                ST IDR              B       Affirmed   B
                LC LT IDR           BB      Affirmed   BB
                LC ST IDR           B       Affirmed   B
                Natl LT             AAA(bra)Affirmed   AAA(bra)
                Natl ST             F1+(bra)Affirmed   F1+(bra)
                Shareholder Support bb      Affirmed   bb


BRAZIL: Economy Has Been Remarkably Resilient, IMF Says
-------------------------------------------------------
An International Monetary Fund (IMF) team, led by Ana Corbacho and
Daniel Leigh, conducted discussions for the 2024 Article IV
Consultation with the Brazilian authorities and consulted with
other stakeholders during May 15-27, 2024. At the conclusion of the
visit, Ms. Corbacho and Mr. Leigh issued the following statement:

"Brazil's economy has been remarkably resilient as inflation has
come down over the past two years. Growth is projected to moderate
to 2.1 percent in 2024 and 2.4 percent in 2025, from 2.9 percent in
2023. Inflation is expected to reach 3.7 percent by end-2024 and
converge to the 3 percent target in the first half of 2026. The
current account deficit narrowed in 2023 on the back of a strong
trade surplus and was financed by robust FDI.

"Over the medium term, growth is expected to strengthen to 2.5
percent—an upward revision of 0.5 percentage point compared with
estimates in the 2023 Article IV Staff Report. This reflects the
implementation of the efficiency-enhancing VAT reform and an
acceleration in hydrocarbon production. Investment in green growth
opportunities could further boost economic potential.

"The balance of risks to the growth outlook has improved since the
2023 Article IV Consultation. However, estimates of the adverse
macroeconomic and fiscal effects of the flood calamity in Rio
Grande do Sul are still uncertain. A sound financial system,
adequate FX reserves, low reliance on FX debt, large government
cash buffers, and a flexible exchange rate continue to support
Brazil's resilience.

"The careful pace of monetary easing since August 2023 has been
appropriate and consistent with the inflation targeting framework.
Looking ahead, given strong labor market conditions and inflation
expectations above the 3 percent target, maintaining flexibility on
the easing cycle is prudent.

"Banks are highly liquid and adequately capitalized, the financial
system remains resilient, and systemic risks are contained. Steps
to address households' debt burden and reduce credit costs are
welcome. Lending by public banks to specific sectors could be
warranted in the presence of well-established market failures,
subject to minimizing distortions to the private credit market.

"The Central Bank of Brazil's (BCB) financial innovation agenda has
promoted financial inclusion, efficiency, and competition. The
adoption of the instant payment system Pix continues to expand,
making Brazil a global leader in transactions per capita. The BCB
is also at the frontier of central bank digital currencies with its
flagship initiative Drex, while privacy and security challenges are
being addressed.

"The authorities' continued commitment to improve Brazil's fiscal
position is welcome. To put public debt on a firmly downward path
and open space for priority investments, IMF staff recommends a
sustained and more ambitious fiscal effort, supported by both
revenue and spending measures and an enhanced fiscal framework in
line with recommendations at the time of the 2023 Article IV
Consultation. Implementation of the landmark VAT reform is expected
to significantly raise productivity, support formal job creation,
and improve equity of the tax system.

The authorities have advanced their ambitious sustainable and
inclusive growth agenda. Implementation of the Ecological
Transformation Plan is accelerating, with a government commitment
to halt illegal deforestation by 2030; important progress on
establishing Brazil's Sustainable Taxonomy; a new carbon market
framework; and the issuance of the first Global ESG sustainable
government bond. Given sizable climate financing gaps, we welcome
progress in designing instruments to attract longer-term green
financing.

"The team would like to thank the authorities and private sector
representatives for their support, hospitality, and constructive
dialogue."

                         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).


LIGHT SA: Creditors Approve Restructuring Plan
----------------------------------------------
globalinsolvency.com, citing Reuters, reports that creditors of
Brazilian electric utility Light approved the firm's restructuring
plan, which includes a capital injection of up to 1.5 billion reais
($288.33 million), the company said.

Light, which operates Rio de Janeiro's power service, filed for
bankruptcy last year, with its debt totaling 11 billion reais,
according to globalinsolvency.com.  

As part of the proposed restructuring, Light would receive up to
1.5 billion reais in capital, including 1 billion reais from its
reference shareholders, the trio of businessmen Nelson Tanure,
Ronaldo Cezar Coelho and Carlos Alberto Sicupira, the report notes.


The plan, which needs to be approved by a judge, also includes up
to 2.2 billion reais in a debt-for-equity swap, the report relays.


Light CEO Alexandre Nogueira told Reuters the plan would give the
firm a "very sustainable" debt level in terms of size, rates and
maturities. Shares in Light ended up 5.3%, having hit a session
high after the approval, the report adds.

As reported in the Troubled Company Reporter-Latin America in May
2024, Fitch Ratings has affirmed Light S.A. (Light) and its wholly
owned subsidiaries Light Servicos de Eletricidade S.A. (Light Sesa)
and Light Energia S.A. (Light Energia)'s Local Currency and Foreign
Currency Long-Term Issuer Default Ratings at 'D' and Long-Term
National Scale Ratings at 'D(bra)'. Fitch has also affirmed the
ratings of Light Sesa and Light Energia senior unsecured bonds at
'C'/'RR4'.


PETROBRAS: Moody's Affirms 'Ba1' CFR, Outlook Stable
----------------------------------------------------
Moody's Ratings has affirmed the Ba1 corporate family rating of
Petroleo Brasileiro S.A. - PETROBRAS (Petrobras). At the same time,
Moody's affirmed Petrobras' ba1 baseline credit assessment (BCA)
and the Ba1 rating of the backed unsecured debt issuances of
Petrobras Global Finance B.V. and Petrobras International Finance
Company. Moody's also affirmed the (P)Ba2 subordinate shelf ratings
of Petrobras and Petrobras International Finance Company, the
(P)Ba1 senior unsecured shelf ratings of Petrobras and Petrobras
International Finance Company, the (P)B1 Pref. Shelf rating for
Petrobras, and the (P)Ba1 and (P)Baa3 senior secured shelf ratings
under Petrobras and Petrobras International Finance Company
respectively. The outlook for all issuers is maintained stable.

RATINGS RATIONALE

Petrobras' Ba1 corporate family rating (CFR) and ba1 Baseline
Credit Assessment (BCA), a measure of a company's standalone credit
risk without government support, reflect the company's strong
credit metrics for its rating category, and its positive track
record of operational and financial improvement. The rating also
reflects Moody's expectation that Petrobras' operating and
financial discipline will continue to support cash generation,
which will help sustain its current capital structure. Conversely,
Petrobras' rating is constrained by the company's exposure to
potential policy shifts and risk of government influence in the
company's business decisions.

Petrobras' Ba1 rating is one notch above the Government of Brazil's
(Brazil, Ba2 positive) rating based on the company's considerably
stronger fundamental credit profile than that of the sovereign, and
its ability to withstand adverse economic and business conditions,
as observed during the coronavirus pandemic in 2020. There is a low
likelihood that the company will default as a result of sovereign
credit distress given Petrobras' solid financial metrics and
capital structure; its low reliance on domestic funding sources;
its limited exposure to foreign-currency risk; and the fact that
around 30% of its sales are related to exports.

Policy shifts can pose higher credit risk for Petrobras if the
government starts to use the national oil company to cover fiscal
deficits, control fuel prices and inflation. Petrobras' corporate
governance standards provides it with some protection from
government interference and so far, the current administration's
changes to its executive team, boardroom and financial and
investment strategies have not materially changed its credit
quality. There would be negative credit implications if the quality
of Petrobras' corporate governance declines, increasing its
vulnerability to policy shifts. A change in Petrobras' current
business strategy or capital allocation that weakens its credit
metrics or financial strength would also be credit negative.

Shortly after taking office in January 2023, the government changed
Petrobras' chief executive, later appointing a new chief financial
officer and others to the executive team, and making several more
nominations to the board. On May 2024, the government appointed a
new CEO to the company and a renewal of the management team may
occur in the short term. The new management has also changed some
of Petrobras' internal policies, announced a four-month tax on oil
exports and ended a federal tax holiday on gasoline and ethanol in
February 2023 that affected the entire oil and gas sector in
Brazil, and revised Petrobras' asset sales agreement with Conselho
Administrativo de Defesa Econômica (CADE) last month.

A new May 2023 policy using market references for diesel and
gasoline prices relaxed import parity practices, increasing the
pricing flexibility in order to attempt to boost market share, but
risking losses if Petrobras cannot transfer the cost of volatile
international oil prices to domestic fuel prices. Since May 2023,
Moody's estimates that domestic prices for gasoline and diesel have
tracked -5% and -7% below international parity, compared to -3% and
-5% below parity during 2022, respectively. Petrobras also changed
its dividend policy, cutting its dividends in July 2023 to 45% of
operating cash flow minus investment, down from 60%, thereby
protecting its balance sheet from higher investments or
acquisitions. The company maintained its cash-flow-based
shareholder remuneration plan and pledged to limit its total gross
debt at $65 billion. A new business plan published in November 2023
will increase Petrobras' 5-year investments to $102 billion for
2024-28, up from $78 billion expected in the previous 2023-27
strategic plan, which will be fully self-funded by the company's
operational cash flow generation.

The company's execution of its asset sale program, liability
management and its business strategy over the past several years
have allowed it to reduce debt levels significantly and to improve
its credit metrics, which leaves Petrobras at a very comfortable
level to withstand volatility at this point. Petrobras' strong
credit metrics and liquidity support its rating, with leverage
declining to 1.3x in the twelve months ended March 2024 from 4x in
2017 and a very good liquidity profile. At the end of March 2024,
Petrobras had $16.4 billion in cash and short-term investments and
a sizable committed revolving credit facilities in an aggregate
amount of $7.9 billion. Moody's expects the company's cash
generation of around $35 billion in 2024 to be more than enough to
cover its annual debt maturities of around $3.0 billion plus annual
capital spending of about $19 billion through the period, allowing
it to maintain reported debt below $65 billion.

Moody's continues to assume moderate default dependence between
Petrobras and the government.

RATING OUTLOOK

The stable outlook on Petrobras' ratings reflects Moody's view that
its credit profile will remain mostly unchanged over the next 12-18
months.

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

An upgrade of Petrobras' Ba1 rating is unlikely over the next 12-18
months because Moody's expects the company's credit metrics to
remain relatively stable and it is unlikely that the company would
be rated more than one notch above the sovereign. However, the
ratings could be upgraded if credit metrics are at least stable and
there is evidence of significant lower exposure to adverse
government influence. An upgrade of Petrobras' rating would also
require an upgrade of  Brazil's sovereign rating.

Petrobras' ratings could be downgraded if its operating performance
deteriorates or there are external factors that increase liquidity
risk or debt leverage from the current levels on a sustained basis;
if the quality of the company's corporate governance declines,
increasing its vulnerability to adverse government interference; or
if Brazil's sovereign rating is downgraded.

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

COMPANY PROFILE

Petrobras is an integrated energy company, with total assets of
$213 billion and annual revenue of $99.4 billion in the twelve
months ended March 2024. Petrobras dominates Brazil's oil and
natural gas production, and refining and fuel marketing sectors.
The company also holds a stake in petrochemicals and power plant
business segments. The Brazilian government directly and indirectly
owns about 36.6% of Petrobras' outstanding capital stock and 50.3%
of its voting shares.




=========
C H I L E
=========

AES ANDES: Fitch Gives BB Rating on Up to $500MM Junior Sub. Notes
------------------------------------------------------------------
Fitch Ratings has assigned a 'BB' long-term rating to AES Andes
S.A.'s proposed issuance of up to USD500 million to USD600 million
junior subordinated green (hybrid) notes. AES Andes expects to use
the proceeds from the issuance to refinance its outstanding junior
subordinated debt and will allocate an amount equal to the net
proceeds to finance or refinance eligible green projects under its
green financing framework. Fitch currently rates AES Andes's
Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs)
'BBB-' and its Long-Term National Scale Rating 'A+(cl)'. The Rating
Outlook is Stable.

The proposed hybrid notes will receive a 50% equity credit, given
that interest payments on the notes are deferrable at the company's
discretion and are compounded at the applicable interest on the
notes. Additionally, the notes' subordinated ranking provides loss
absorption for more senior indebtedness of the company, as notes
will be subordinated to all existing and future unsecured and
unsubordinated debt of AES Andes.

KEY RATING DRIVERS

Low Business Risk: AES Andes' ratings reflect its low business risk
resulting from a balanced contractual position. A portion of the
contracts include fixed charges and pass-through clauses for
variable costs with strong counterparties combined with additional
renewable PPAs indexed to US CPI. The average remaining contract
life is 13 years in Chile and 12 years in Colombia. The company's
diverse portfolio of generation assets supports cash flow
generation stability and predictability. The ratings also reflect
the company's major plants operating under constructive regulatory
environments in Chile and Colombia.

Strong Contracted Position: AES Andes maintains more than 65% of
its capacity contracted in the long term with investment-grade
counterparties. It has benefited from regulated clients migrating
to the unregulated market due to regulatory changes. AES Andes
continued to implement its coal to green "Greentegra" strategy with
PPAs that totaled 14.1 terawatt hours (TWh) per year. The most
relevant was a 17-year agreement with Corporacion Nacional del
Cobre de Chile (CODELCO) (BBB+/Stable) for 1.6TWh annually and a
16-year agreement with Teck Resources Ltd. (BBB-/Stable) for 2.1TWh
per year.

Equity Credit for Hybrid Notes: A 50% equity credit is given as
interest payments on the notes are deferrable at the company's
discretion and are compounded at the applicable interest on the
notes. As noted above, the notes' subordinated ranking provides
loss absorption for more senior indebtedness of the company.

Per Fitch's "Corporate Hybrids Treatment and Notching Criteria,"
there is no explicit limit on the amount of equity credit granted,
but equity credit is not fully given when the proportion of hybrids
in the capital structure is unsustainably high and/or reduces the
benefits of the instrument´s equity like features. For this case,
Fitch believes that the equity credit can be granted to 50% of the
hybrid instruments as long as the absolute amount of the hybrid
debt remains below 25% of total debt, in conjunction with
permanence of the capital structure. This encompasses Fitch's
assessment of the company's ability and willingness to access
hybrid instruments in call dates and hybrid maturities.

Leverage in Line with Expectations: Fitch estimates AES Andes'
EBITDA leverage will remain between 3.5x and 4.0x over the rating
horizon. Fitch's base case projects the gross leverage decreasing
to 3.6x in 2026 from 4.4x in the LTM ended March 31, 2024. The
company's leverage is in line with Fitch's expectations and is
partially offset by its strong contracted position. Fitch
anticipates EBITDA coverage at 3.1x in 2024 and remaining above 3x
in the following years. Fitch's base case assumes the company will
refinance its existing outstanding hybrids notes, and these
instruments will remain in the company's long-term capital
structure.

Decarbonization Strategy on Track: AES Andes is committed to
retiring Ventanas 3 and 4 and Angamos 1 and 2 by 2025; the units
total approximately 1,095MW of coal installed capacity. After
selling 50% plus one share in Guacolda Energia SpA, followed by the
end of operations of Ventanas 1 and 2 and Norgener, AES Andes has
removed over 1300MW of coal capacity from its balance sheet. The
extent to which the company can achieve this significant milestone
by 2025 is subject to analysis of the potential retirement, sale or
conversion to zero-emissions technologies of these units. It will
also depend on Chilean electric system requirements, as
transmission limitations could make disconnection unfeasible.

Expansion Plans Through Partnerships: As part of its growth
strategy, AES Andes partnered with Global Infrastructure Partners
(GIP), selling GIP a 49% stake in special vehicles that build and
operate renewable projects. AES Andes received approximately USD750
million from this operation between 2021 and 2023 and expects to
receive another USD100 million, mainly in 2024 and the remaining in
2025, adding 1,400MW of renewable installed capacity. The company's
strategy is to keep the contracted PPAs at AES Andes while
providing energy through renewable vehicles under AES Andes'
operation.

Same Ratings with Ultimate Parent: Fitch rates AES Andes on a
standalone basis, although its ratings are in line with those of
its majority owner, The AES Corporation (BBB-/Stable). Fitch
believes, per its "Parent and Subsidiary Linkage Rating Criteria,"
that there is a strong operational and strategic relationship
between AES Andes and AES Corp., given that AES Andes' cash
distributions represents a material portion of AES Corp.'s incoming
dividends.

Fitch projects that AES Andes' contribution to its parent will come
from capital reductions of USD 300 million in 2024 and USD 200
million in 2025, resuming in 2026 its historical dividend pay-out
ratio of 100% of the previous year net income.

DERIVATION SUMMARY

AES Andes' ratings are below those of Enel Generacion Chile S.A.
(BBB+/Stable), Engie Energia Chile S.A. (BBB/Stable) and Colbun
S.A. (BBB+/Stable) due to the company's relatively weaker financial
profile, although they carry similar business risks. AES Andes'
consolidated gross leverage remains between 3.5x and 4.0x. Enel
Generacion Chile consistently reports gross leverage of around
1.5x, and Colbun have leverage between 2.5x and 3.0x.

Similar to those Chilean electricity generation companies, AES
Andes' credit profile benefits from a diverse generation portfolio,
which features a component of long-term contracted assets with
investment-grade counterparties and supports these companies'
ratings. AES Andes' PPAs have an average life of 13 years in Chile
and 12 years in Colombia. The PPAs allow for the pass-through of
variable costs to the company's counterparties. AES Andes is
slightly more exposed to recontracting risk than peers Enel
Generacion Chile and Engie Energia Chile and is in a similar
position to Colbun.

AES Andes is well positioned relative to its Latin American
generation peers in installed capacity, asset diversification and
contracted position. AES Andes has an installed capacity of
approximately 5.2 gigawatts (GW), which compares favorably with
Colbun's and is similar to Enel Generacion Chile's.

Unlike Enel Generacion Chile and Engie Energia Chile, AES Andes
benefits from geographical diversification, with operating assets
in Chile, Colombia and, to a lesser extent, Argentina. This
geographic diversification bodes well for the company's credit
quality compared with Enel Generacion Chile and Engie Energia
Chile, which are concentrated in a single country. In addition, AES
Andes has limited exposure to hydrological conditions in Chile or
Argentina, as its major hydro assets are in Colombia.

KEY ASSUMPTIONS

- Contracted volume in Chile of 10,700 gigawatt hours (GWh) in
2024; 10,170GWh in 2025; and 9,900GWh in 2026;

- Average energy sales in Colombia of 6,500GWh in 2024-2027;

- Thermal coal (Australia Newcastle) at USD100/ton in 2024,
USD90/ton in 2025 and USD80/ton in 2025;

- The withdrawal from AES Andes assets of Ventanas 3 and 4 and
Angamos 1 and 2 during 2025;

- Total capex of USD620 million in 2024-2027, including
maintenance;

- Additional renewable capacity, including wind, solar and
batteries, of 543MW in 2024 and 283MW in 2025;

- Monetization of approximately USD220 million from PEC 2 and PEC 3
during 2H24;

- Annual capital reductions between USD300 million in 2024 and
USD200 million 2025;

- Refinance of existing hybrids notes, with equity credit assigned
totaling USD325 million;

- Expansion projects to be financed with cash flow, new contracts
and partnerships.

RATING SENSITIVITIES

Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade

- EBITDA leverage consistently below 3.0x on a sustained basis,
combined with EBITDA interest coverage above 4.5x;

- Cash flow from new contracted capacity that integrates renewable
projects supports results;

- Improvement in the mix of cash flow generation toward higher
credit quality markets;

- Structurally neutral to positive FCF across the investment
cycle;

- Upgrade of AES Andes could result from an upgrade on the
company's outstanding hybrid notes.

Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade

- EBITDA leverage consistently above 4.5x, combined with EBITDA
interest coverage below 3.5x;

- Acceleration of decarbonization laws in Chile affecting AES
Andes' cash-flow profile, liquidity and leverage;

- Higher probability of loss absorption or actual loss absorption
on hybrids, losing the current 50% equity credit;

- A downgrade of AES Andes could result in a downgrade of the
company's outstanding hybrid notes;

- A change in the company's commercial policy, leading to an
unbalanced contractual position in the long term;

- Pressure from shareholders to increase dividends and reduce debt
repayments;

- Increased exposure to non-investment-grade countries.

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: As of March 31, 2024, the company had cash on
hand of USD326 million and short-term debt maturities of USD318
million, mainly concentrated in bank debt. AES Andes' liquidity is
supported by good access to refinancing and a comfortable debt
maturity schedule. Liquidity is further buoyed by a USD250 million
undrawn committed revolving credit facility.

ISSUER PROFILE

AES Andes is the third largest electricity generation company in
Chile, with 3.4GW of installed capacity. In addition, AES Andes
operates 1.1GW in Colombia and 0.6GW in Argentina. The AES
Corporation owns more than 99% of AES Andes.

DATE OF RELEVANT COMMITTEE

29 May 2024

MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS

Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.

ESG CONSIDERATIONS

AES Andes has an ESG Relevance Score of '4' for Greenhouse Gas
Emissions and Air Quality due to its high reliance on coal for
energy generation. Fitch estimates it has a negative impact on the
company's credit profile, in conjunction with others factors,
following the agreement between the Chilean government and
generation companies to completely phase out coal generation by
2040.

AES Andes has an ESG Relevance Score of '4' for Management Strategy
due to the company's aggressive expansion strategy and its history
of abandoning assets after they are deemed not strategic, not core
or insolvent to The AES Corporation. Prior to Alto Maipo's Chapter
11 filing, in 2021, the company sold its majority stake in
Guacolda, a coal power plant in Chile, and divested its material
economic interest in Cochrane, both of which were viewed as
efficient power plants with substantial debt loads, structured as
nonrecourse to AES Andes. This has no impact on the credit
profile.

The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision

   Entity/Debt              Rating           
   -----------              ------           
AES Andes S.A.

   junior subordinated   LT BB  New Rating




=============
E C U A D O R
=============

ECUADOR: IMF OKs 48-Month US$4 Billion Extended Fund Facility Deal
------------------------------------------------------------------
The Executive Board of the International Monetary Fund (IMF)
approved a 48-month extended arrangement under the Extended Fund
Facility (EFF) for Ecuador, with access equivalent to SDR 3 billion
(430 percent of quota, equivalent to US$4 billion). The Board's
approval allows the authorities an immediate disbursement of SDR
753 million, equivalent to US$1 billion, available to the public
budget. This follows a previous EFF arrangement approved by the IMF
Executive Board in September 2020 and completed in December 2022.

The Ecuadorian authorities have put together a robust plan and have
started to take important policy steps to address the liquidity and
fiscal situation. The IMF-supported program will build on these
steps to strengthen fiscal and debt sustainability, protect
vulnerable groups, rebuild liquidity buffers, safeguard
macroeconomic and financial stability, and advance the structural
reform agenda to lay the foundations for sustainable, inclusive,
and stronger growth that benefits all Ecuadorians.

Following the Executive Board's discussion on Ecuador, Ms.
Kristalina Georgieva, Managing Director and Chair, issued the
following statement:

"The Ecuadorian authorities have undertaken swift and bold actions
to tackle the fiscal and security crises. The IMF-supported
arrangement under the Extended Fund Facility, which incorporates
lessons from the earlier Fund arrangement, will support the
authorities' policy plans to strengthen fiscal sustainability and
protect vulnerable groups, safeguard dollarization and
macroeconomic stability, rebuild liquidity buffers, enhance
financial stability and integrity, and further advance the
structural reform agenda to promote sustainable and inclusive
growth. Strong commitment to the program and steadfast reform
implementation will be critical for success. Continued engagement
with official creditors and development partners, contingency
planning, and a strong communication of the program's objectives to
the public will also be important.

"The authorities are committed to implementing an ambitious fiscal
consolidation plan, which will help mitigate Ecuador's structural
fiscal vulnerabilities and cement fiscal sustainability over the
medium term. It envisages balanced efforts on both the revenue and
expenditure sides, with less reliance on oil sector developments,
while protecting essential spending on security, the social safety
net, and public investment.

"Work will continue to enhance the social safety net by expanding
the coverage of cash transfer programs to families in need. This
will help mitigate the adverse impact of fiscal consolidation on
those vulnerable groups.

"Building on the recommendations of the IMF's Financial Sector
Stability Assessment for Ecuador, the financial policy agenda aims
to strengthen financial sector oversight and coordination among
relevant agencies, enhance the prudential framework governing
capital and liquidity, and foster financial deepening and capital
market development.

"The authorities are committed to continuing to strengthen their
institutional framework by enhancing governance, transparency,
public financial management, and public procurement. This will
include advancing the audits of the state-owned oil company and
healthcare expenditure, clearing arrears and improving cash
management practices, and making progress with key AML/CFT
legislation."




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

JAMAICA: NFA Reporting Uptick in Seafood Production
---------------------------------------------------
RJR News reports that the National Fisheries Authority (NFA) is
reporting an uptick in diverse fisheries production outturns,
including for sea cucumber and sea moss, which are produced
primarily for export.

Principal Director of the NFA's Capture Fisheries Division, Stephen
Smikle, says the Authority welcomes this level of engagement by
local producers, according to RJR News.

Mr Smikle says in recent years, there has also been increased
production of conch and lobster, the report notes.

He says a licensing regime is in place, and persons involved in sea
moss fisheries have been invited to visit the Fisheries Authority
and normalize their operations, the report relays.

According to a Polaris Market Research Report, the global sea moss
industry was valued at $US2.58 billion in 2023, and is expected to
grow at a compound annual rate of 1.8 per cent by 2032, 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.




=======
P E R U
=======

CAMPOSOL SA: Moody's Upgrades CFR to B3 & Alters Outlook to Stable
------------------------------------------------------------------
Moody's Ratings has upgraded Camposol S.A. 's ("Camposol")
Corporate Family Rating and the rating of its 6% $350 million
Backed Senior Unsecured Notes due 2027 and guaranteed by Camposol's
parent company, CSOL Holding Ltd. to B3 from Caa1. The outlook was
changed to stable from negative.

The upgrade of Camposol's ratings reflects improved liquidity and
credit metrics. The rating action incorporates Camposol's improved
Moody's adjusted leverage and interest coverage (EBITA/interest
expense) of 3.6x and 2.0x for the last twelve months ended March
2024 from 10.9x and 0.2x, respectively, in December 2022. The
rating action also considers lower refinancing risk with short term
debt reduction to $103 million from $213 million over the same
period.

The stable outlook reflects Camposol's improved operating
performance, leading to solid credit metrics for the rating
category. It also reflects Moody's view that these credit metrics
will be sustained over time based on management's cost control,
commercial execution and liquidity management.

RATINGS RATIONALE

The B3 ratings of Camposol incorporate the company's improved
liquidity that has been under pressure by working capital needs
since 2022. Management has been addressing this through several
initiatives: 1) extending maturities of $80 million in short term
debt, 2) repaying $24 million in short term debt and, 3) increasing
availability under committed facilities, which as of March 2024
amounts $40 million.

The company's liquidity sources, including cash and committed
facilities, amount $66 million as of March 2024, which cover 64% of
short term debt. Given the cyclical nature of Camposol's
operations, Moody's expects short term debt to be in the $100-$125
million range. Liquidity remains weak, but the risk is more
manageable now as  Moody's also expects the company to continue
renewing its advised credit lines, out of which as of March 2024
the company has $181 million available, and to generate positive
free cash flow (FCF) above $15 million based on $40 million of
annual capex and limited dividend payments.

Moody's adjusted EBITDA generation also improved to $146 million
for the last twelve months ended March 2024, that is 29% margin, up
from $56 million in 2022, 12% margin. These improvements are based
on cost control efforts, improved market conditions for the
blueberry segment, lower freight expenses and reduced expenses in
third-party services, such as travel expenses and professional
fees. Going forward, EBITDA will be further supported by
unproductive plantations that will start generating cash in 2024.
Moody's expects EBITDA margin to remain in the mid-twenties as
percentage of revenues leading to a leverage at around 4x.

The B3 ratings reflect the commoditized and seasonal nature of the
company's highest-selling fruits which could pressure working
capital. The ratings also reflect Camposol's modest segment and
geographic diversification, with most of its cash flows generated
from blueberries and productive assets concentrated in Peru; its
relatively small size compared with that of its industry peers;
historical tolerance to refinancing risk and high leverage; and its
exposure to weather events. The B3 ratings also consider the
company's position as a vertically integrated producer of fresh and
frozen fruits, its portfolio of fruits with increasing demand and
the expertise of its senior management.

The upgrade also reflects governance considerations as key drivers
of the rating action including liquidity management and improved
credit metrics, which is reflected now in the company's Financial
Strategy and Risk Management assessment that was changed to 4 from
5, and the overall exposure to governance risks (Issuer Profile
Score or "IPS") to 4 (G-4) and Camposol's Credit Impact Score to 4
(CIS-4), from 5. The ESG Credit Impact Score is CIS-4, revised from
CIS-5, since ESG considerations are a constraint for the rating.

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

Camposol's ratings could be upgraded if the company improves its
liquidity profile by securing additional liquidity sources that
covers the company's working capital needs through the cycle. The
ratings could also be upgraded if the company maintains adj.
debt/EBITDA below 4.5x and EBITA/interest expense above 1.5x.
Longer term, positive pressure could arise should the company
increases its size, segment and geographic diversification.

The ratings could be downgraded if Camposol's liquidity worsens,
due to negative FCF or if the company is unable to rollover its
short term debt. Negative pressure could also arise if Camposol's
adj. debt/EBITDA increases above 5x without clear prospects of
improvement or EBITA/interest expense declines towards 1.0x.

The principal methodology used in these ratings was Protein and
Agriculture published in November 2021.

Based in Lima, Peru, Camposol S.A. (Camposol) is the main operating
subsidiary of CSOL Holding Ltd. and a vertically integrated
producer of branded fresh fruit. Camposol's main products are
avocados and blueberries, which are sold to the largest retailers
and wholesalers in the world. Camposol reported revenue of $499
million for the last twelve months ended March 2024.




===============
X X X X X X X X
===============

LATAM: New Report Reveals Region Represent 7.3% of Global GDP
-------------------------------------------------------------
RJR News reports that a new report says Latin America and the
Caribbean represent 7.3 per cent of global Gross Domestic Product.

The new Purchasing Power Parities (PPP) for the 2021 cycle report
was undertaken by the International Comparison Program in
collaboration with the Economic Commission for Latin America and
the Caribbean, according to RJR News.

The report shows that the size of the world economy was almost
US$152.4 trillion measured in PPP terms, the report discloses.

More than half of the total global production came from low- and
middle-income economies, the report notes.

In Latin America and the Caribbean, Brazil, with US$3.7 trillion,
and Mexico, with $2.7 trillion, were the two largest economies in
the region, the report relays.  Together, they contributed 57 per
cent of the region's GDP, the report notes.



                           *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.

Copyright 2024.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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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,
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                  * * * End of Transmission * * *