/raid1/www/Hosts/bankrupt/TCRLA_Public/240617.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Monday, June 17, 2024, Vol. 25, No. 121
Headlines
A R G E N T I N A
ARGENTINA: Fitch Affirms 'CC' LongTerm Foreign Currency IDR
ARGENTINA: IMF Expects China to Reschedule Billions in Debt
ARGENTINA: Loses US$1.5-Billion UK Appeal Over GDP Linked Bonds
ARGENTINA: Will Seek New IMF Program to Exit 'Cepo', Caputo Says
C O L O M B I A
BOGOTA: Fitch Affirms 'BB+' LongTerm IDRs, Outlook Stable
GRAN TIERRA: Fitch Affirms 'B' LongTerm IDR, Outlook Stable
J A M A I C A
JAMAICA: BOJ to Stop Exchange of Canadian, Euro & British Pound
JAMAICA: Mining and Quarrying Exports Drop 11.9% in January 2024
M E X I C O
FINACIERA INDEPENDENCIA: Fitch Hikes IDR to 'BB-', Outlook Stable
P A R A G U A Y
BANCO CONTINENTAL: Fitch Affirms BB+ LongTerm IDRs, Outlook Stable
P U E R T O R I C O
AGREGADOS FURIA: Hires Lugo Mender Group as Legal Counsel
V E N E Z U E L A
VENEZUELA: Inflation Slows to 10-Year Low of 59% Ahead of Vote
X X X X X X X X
[*] BOND PRICING: For the Week June 10 to June 14, 2024
- - - - -
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A R G E N T I N A
=================
ARGENTINA: Fitch Affirms 'CC' LongTerm Foreign Currency IDR
-----------------------------------------------------------
Fitch Ratings has affirmed Argentina's Long-Term Foreign-Currency
Issuer Default Rating (IDR) at 'CC'. Fitch typically does not
assign Outlooks to sovereigns with a rating of 'CCC+' or below.
KEY RATING DRIVERS
Probable Default: Argentina's 'CC' rating signals Fitch's view that
a bond restructuring or other default event of some sort appears
probable in the coming years, given persisting uncertainty around
the sovereign's ability to achieve a sustained build-up in
international reserves and recover access to global capital
markets, and thus make large foreign-currency bond payments due in
coming years.
The administration of Javier Milei has made initial progress on
economic adjustments since taking office in December 2023, via
executive action rather than legislation. However, achieving a
durable adjustment sufficient to build reserves and recover market
access may also require broader political support and reforms,
which remains to be seen, while growing tensions in the new policy
mix add to the uncertainty.
Major Policy Changes: Milei's economic plan centers on an
aggressive fiscal adjustment, to end monetary financing from the
central bank (BCRA) and unwind past financing, and 54% currency
devaluation followed by a 2%-per-month crawling peg to anchor price
expectations. Monetary policy has been heterodox, involving deeply
negative real interest rates to shrink peso supply and other BCRA
liabilities. FX controls have been preserved, for now, to sustain
this policy mix. These efforts have been initially successful,
narrowing the gap between parallel and official exchange rates,
lowering inflation after a post-devaluation jump, and encouraging
an incipient credit recovery.
Emerging Policy Tensions: Some tensions within this policy mix are
becoming apparent. The crawling peg has allowed a rapid real
re-appreciation of the peso and may be hard to sustain, potentially
weakening its efficacy as an anchor for price expectations. An exit
strategy from FX controls and negative real interest rates is not
yet clear, and these policies could undermine confidence the longer
they remain in place. Inflation may face greater resistance after
falling to an estimated 5% in May, due to an economic recovery,
wage indexation, and policy uncertainties.
Reserve Build-up: These policy changes have enabled the BCRA to buy
USD17.3 billion in the FX market in mid-December through May,
lifting its net international reserves from negative USD12.5
billion to around zero. The sustainability of the reserve build-up
is unclear, however, given that is has been made possible through
deferral of dollars owed to importers via issuance of BOPREAL
securities and through tightened import restrictions that are now
expiring. Real peso appreciation and economic recovery could also
boost import demand later in 2024. FX purchases have already slowed
sharply in recent weeks, despite the ongoing soy harvest.
Large Debt Payments Loom: These initial reserve gains should enable
the sovereign to make USD4.3 billion in FC bond payments due in
2024. However, amounts due will rise significantly to USD9
billion-USD10 billion in 2025-2027 and coincide with other payments
by provinces and the BCRA (on the BOPREAL). To honor these
payments, the sovereign will likely need to achieve a stronger
build-up in reserves and also recover international market access
to refinance a portion.
Fitch remains uncertain whether Argentina will be able to
accomplish these goals. Recovering market access may not only
require further macroeconomic adjustments, but also evidence of
broader political buy-in and preservation of social support. This
may be particularly hard to achieve before midterm legislative
elections in November 2025.
Aggressive Fiscal Adjustment: The administration is pursuing an
ambitious goal of reducing the fiscal deficit to zero in 2024,
which requires an 5pp-of-GDP improvement in the primary balance to
a 2% surplus. It is off to a good start, having achieved surpluses
through April. The inflation surge has driven most of the
improvement so far, dramatically eroding primary spending in real
terms (-34%), and delivering the biggest savings in pensions. Other
cuts have been more deliberate but may not be sustainable, such as
a virtual elimination of capex. Part of the reduction in energy
subsidies has come from non-payment to electricity companies.
Milei's strategy has also included revenue measures, the largest
being a hike in a tax on FX purchases intended to expire at
yearend, and he is still working to secure congressional approval
of a tax package with some permanent elements and one-offs (e.g. an
amnesty). Fitch projects a 0.5% primary surplus.
Fiscal Challenges Ahead: Ensuring a durable fiscal adjustment will
eventually require a shift to a more sustainable strategy, given
the temporary nature of some of this year's measures, lower
inflation that is narrowing scope to compress spending in real
terms, and the economic risks posed by the draconian cuts to items
such as capex. This could require greater cooperation with congress
via the budget process, and may be harder to deliver.
Sharp Recession: Economic activity fell sharply amid these policy
adjustments, by 6% yoy as of March, but could stabilize by in the
second quarter and recover later in the year. Fitch projects the
economy to contract 3.6% in 2024 and grow by 3.9% in 2025, though
this does not reflect a strong V-shaped recovery given a positive
base effect after last year's drought. Improved confidence and
lower inflation should propel a recovery in consumption. Fiscal
adjustment will remain a drag, while a revival in private-sector
confidence may not occur until capital controls are dismantled.
Governability Challenges: Milei continues to benefit from solid
popular support around 50%, but does not have a working majority in
congress, and has not yet delivered any major legislative
victories. His flagship "base law" bill, with sweeping measures to
liberalize the economy, is still pending congressional approval
despite some dilution from the negotiation process. He also faces a
stand-off regarding the pension indexation formula, with important
fiscal implications. The outcome of these matters may have
meaningful policy ramifications and could significantly affect
market confidence, which is central to economic stabilization
prospects.
ESG - Governance: Argentina has an ESG Relevance Scores (RS) of '5'
both Political Stability and Rights; the Rule of Law, Institutional
and Regulatory Quality and Control of Corruption. These scores
reflect the high weight that the World Bank Governance Indicators
(WBGI) have in Fitch's proprietary Sovereign Rating Model (SRM).
Argentina has a medium WBGI ranking at the 41st percentile,
balancing moderately high voice and accountability, a moderate
level of corruption, and a recent track record of peaceful
political transitions with weak institutional capacity and uneven
application of the rule of law.
Argentina also has an ESG Relevance Score of '5' for Creditor
Rights, as willingness to service and repay debt is highly relevant
to the rating, and given the sovereign's particularly weak
repayment record and Fitch's view that another default event of
some sort is probable.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Failure to make payment on debt securities issued in public
markets, or announcement of plans to conduct debt management
operations that would constitute a DDE per Fitch's criteria.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Assertive policy adjustments (fiscal, monetary, exchange-rate),
as well confidence in their medium-term viability, that result in a
sustained build-up in international reserves.
- Recovery of market access or some other large-scale external
financing source.
SOVEREIGN RATING MODEL (SRM) AND QUALITATIVE OVERLAY (QO)
Fitch's proprietary SRM assigns Argentina a score equivalent to a
rating of 'CCC+' on the Long-Term Foreign-Currency IDR scale.
However, in accordance with its rating criteria, Fitch's sovereign
rating committee has not utilized the SRM and QO to explain the
ratings in this instance. Ratings of 'CCC+' and below are instead
guided by the rating definitions.
Fitch's SRM is the agency's proprietary multiple regression rating
model that employs 18 variables based on three-year centred
averages, including one year of forecasts, to produce a score
equivalent to a LT FC IDR. Fitch's QO is a forward-looking
qualitative framework designed to allow for adjustment to the SRM
output to assign the final rating, reflecting factors within its
criteria that are not fully quantifiable and/or not fully reflected
in the SRM.
COUNTRY CEILING
The Country Ceiling for Argentina is 'B-'. For sovereigns rated
'CCC+' or below, Fitch assumes a starting point of 'CCC+' for
determining the Country Ceiling. Fitch's Country Ceiling Model
produced a starting point uplift of 0 notches. Fitch's rating
committee applied a +1 notch qualitative adjustment to this, under
the Balance of Payments Restrictions pillar, reflecting that while
strict controls are in place that affect corporates' ability to
access the official FX market, these have not resulted in
restructurings for many corporates, and those that have done so are
presently able to access the official FX market to service these
obligations under their new terms.
Fitch does not assign Country Ceilings below 'CCC+', and only
assigns a Country Ceiling of 'CCC+' in the event that transfer and
convertibility risk has materialised and is impacting the vast
majority of economic sectors and asset classes.
ESG CONSIDERATIONS
Argentina has an ESG Relevance Score of '5' for Political Stability
and Rights as WBGIs have the highest weight in Fitch's SRM and are
therefore highly relevant to the rating and a key rating driver
with a high weight. As Argentina has a percentile rank below 50 for
the respective Governance Indicator, this has a negative impact on
the credit profile.
Argentina has an ESG Relevance Score of '5' for Rule of Law,
Institutional & Regulatory Quality and Control of Corruption as
WBGIs have the highest weight in Fitch's SRM and are therefore
highly relevant to the rating and are a key rating driver with a
high weight. As Argentina has a percentile rank below 50 for the
respective Governance Indicators, this has a negative impact on the
credit profile.
Argentina has an ESG Relevance Score of '4'[+] for Human Rights and
Political Freedoms as the Voice and Accountability pillar of the
WBGIs is relevant to the rating and a rating driver. As Argentina
has a percentile rank above 50 for the respective Governance
Indicator, this has a positive impact on the credit profile.
Argentina has an ESG Relevance Score of '5' for Creditor Rights as
willingness to service and repay debt is relevant to the rating and
is a rating driver for Argentina, as for all sovereigns. As
Argentina has a fairly recent restructuring of public debt in 2020
and another default event appears probable in Fitch's view, this
has a negative impact on the credit profile.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
----------- ------ -----
Argentina LT IDR CC Affirmed CC
ST IDR C Affirmed C
LC LT IDR CCC- Affirmed CCC-
LC ST IDR C Affirmed C
Country Ceiling B- Affirmed B-
ARGENTINA: IMF Expects China to Reschedule Billions in Debt
-----------------------------------------------------------
Jorgelina do Rosario, Eric Martin & Manuela Tobias at Bloomberg
News report that the International Monetary Fund expects China to
reschedule payments on part of the US$18-billion swap line that it
has extended to Argentina, a key step that frees up cash amid
President Javier Milei's deep budget cuts and helps sustain the
fund's massive fiscal support program for the country.
Argentina owes the People's Bank of China about US$2.9 billion this
month and US$1.9 billion in July, according to Central Bank data
released last month, Bloomberg News discloses.
An agreement between Argentine authorities and IMF staff last month
on the latest review of the country's program included a firm
commitment to refinance or roll over the debt, which was drawn down
from an existing US$18-billion swap line between Beijing and Buenos
Aires, according to people familiar with the deal, who asked not to
be identified as the information isn't public, according to
Bloomberg News.
Bloomberg News relays that the rollover commitment clears a major
obstacle for Argentina's US$44-billion IMF program, as the
government must show it has so-called financing assurances to
manage its enormous debt pile.
The details of the rollover or any refinancing weren't immediately
available. One of the people suggested Argentina could repay some
of the debt while rolling over the majority of it.
The IMF declined to comment. Argentina's Central Bank did not
immediately respond to a request for comment. China's embassy in
Washington also did not immediately respond.
The Washington-based lender's executive board is scheduled to vote
on the agreement, Economy Minister Luis Caputo said, Bloomberg News
relays. The IMF will publish the staff-level agreement after the
vote, Bloomberg News discloses.
Caputo said in April that Argentina is starting talks for a new IMF
financing program that could involve fresh funds, adding that
Milei's monetary and foreign exchange plans are part of the
discussion, Bloomberg News relays.
Former president Alberto Fernandez's government last year used some
of the money from China to pay off part of its loan from the IMF,
something that no fund member has done in its 80-year history,
Bloomberg News discloses. It also used the Chinese funds to
finance imports as it ran low on dollars, Bloomberg News relays.
Bloomberg News relays that China's swap is the largest source of
foreign gross reserves in Argentina's Central Bank, whose debts are
currently larger than its assets. It's also the biggest yuan swap
line in the world, Bloomberg News notes.
On the campaign trail last year, Milei raised questions about the
future of Argentina's relations with China if elected, calling the
Chinese "assassins" and "Communists," Bloomberg News discloses.
But in an April interview with Bloomberg News, the president
adopted a much more pragmatic tone, avoiding incendiary remarks and
assuring he wouldn't touch the currency swaps.
About Argentina
Argentina is a country located mostly in the southern half of South
America. Its capital is Buenos Aires. Javier Milei is the current
president of Argentina after winning the November 19, 2023 general
election. He succeeded Alberto Angel Fernandez in the position.
Argentina has the third largest economy in Latin America. The
country's economy is an upper middle-income economy for fiscal year
2019, according to the World Bank. Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.
The IMF's executive board completed on August 23, 2023, the fifth
and six reviews of Argentina's 30-month Extended Fund Facility
(EFF), and approved a US$7.5-billion disbursement to Argentina as
part of the larger program, which refinances payments Argentina
owes the institution from a previous bailout that failed to
stabilize the economy in 2018. Argentina would receive another IMF
disbursement in November of about US$2.75 billion pending another
staff-level agreement and board approval.
S&P Global Ratings, on March 15, 2024, raised its local currency
sovereign credit ratings on Argentina to 'CCC/C' from 'SD/SD' and
its national scale rating to 'raB+' from 'SD'. S&P also raised its
long-term foreign currency sovereign credit rating to 'CCC' from
'CCC-' and affirmed its 'C' short-term foreign currency rating. The
outlook on the long-term ratings is stable. In addition, S&P
revised its transfer and convertibility assessment to 'CCC' from
'CCC-'.
S&P said the stable outlook on the long-term ratings balances the
risks posed by pronounced economic imbalances and policy
uncertainties with the favorable change in near-term debt service
obligations. S&P also expect no further debt exchanges that it
would likely consider to be distressed.
Fitch Ratings upgraded on June 13, 2023, Argentina's Long-Term
Foreign Currency (FC) Issuer Default Rating (IDR) to 'CC' from
'C'and affirmed the Long-Term Local Currency (LC) IDR at 'CCC-'.
Fitch typically does not assign Outlooks to sovereigns with a
rating of 'CCC+' or below.
The upgrade of the FC IDR reflects that Fitch no longer deems a
default-like process to have begun, as the authorities have not
signaled a clear intention to follow through with an intra-public
debt swap announced in March. The new 'CC' rating signals a default
event of some sort appears probable in the coming years, regardless
of the outcome of upcoming elections. The affirmation of the LC IDR
at 'CCC-' follows the peso debt swap in June that Fitch did not
deem to be a "distressed debt exchange" (DDE).
Moody's Investors Service, in September 2022, affirmed Argentina's
Ca foreign-currency and local-currency long-term issuer and senior
unsecured ratings. The outlook remains stable. The decision to
affirm the Ca ratings balances Argentina's limited market access,
weak governance, and history of recurrent debt restructurings with
recent efforts to marshal fiscal and monetary measures to start
addressing underlying macroeconomic imbalances in the context of
the IMF program that was approved in 2022, according to Moody's.
DBRS, Inc. confirmed Argentina's Long-Term Foreign Currency Issuer
Rating at CCC and downgraded its Long-Term Local Currency Issuer
Rating to CCC from CCC (high) on March 3, 2023.
ARGENTINA: Loses US$1.5-Billion UK Appeal Over GDP Linked Bonds
---------------------------------------------------------------
Buenos Aires Times reports that Argentina lost its attempt to
overturn a UK court order to pay US$1.5 billion to compensate
investors for losses in the country's growth-linked securities.
The Court of Appeal refused the appeal over the payments to hedge
funds including Palladian Partners LP, according to Buenos Aires
Times. The investors alleged the loses were a result of a change
in the method of calculating the country's gross domestic product,
the report notes.
The ruling is another setback for the country that's battling
annual inflation near 300 percent and a worsening recession, even
after President Javier Milei's economic shock therapy, the report
relays. The nation would be at the risk of struggling to service
some of its debt if it's forced to pay out US$1.5 billion in this
case, its lawyers argued last month, the report discloses.
Milei's spokesman didn't immediately respond to a request for
comment.
At the root of the case is the country's default on US$95 billion
of debt in 2001 amid one of the worst financial crises in its
history, the report notes. GDP-linked bonds, which pay out when
the economic expansion reaches a set threshold, were part of a
restructuring program, the report relays.
A dispute arose after Argentina changed the base year for
calculating growth in 2013, the report says. Hedge funds, also
including HBK Master Fund LP, Hirsh Group LLC and Virtual Emerald
International Ltd, alleged Argentina made the changes to avoid
payments on the bonds, the report discloses.
The changes were necessary to avoid the returns on the warrants to
be guided by "obsolete 1993 measure of GDP" until 2035, Argentina's
lawyers argued, the report says.
Earlier this year, the Court of Appeal ordered the country to
deposit 310 million euros (US$334 million) in an account before the
May hearing, the report relays.
Argentina must now pay the warrant holders, Aidan O'Rourke, a
lawyer at Quinn Emanuel Urquhart & Sullivan representing the funds,
said, the report notes.
"As ordered by the court, Argentina should now also publish the GDP
data required for the securities for each year from 2014 onwards,
so that payments for those subsequent years can be assessed," he
added.
About Argentina
Argentina is a country located mostly in the southern half of South
America. Its capital is Buenos Aires. Javier Milei is the current
president of Argentina after winning the November 19, 2023 general
election. He succeeded Alberto Angel Fernandez in the position.
Argentina has the third largest economy in Latin America. The
country's economy is an upper middle-income economy for fiscal year
2019, according to the World Bank. Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.
The IMF's executive board completed on August 23, 2023, the fifth
and six reviews of Argentina's 30-month Extended Fund Facility
(EFF), and approved a US$7.5-billion disbursement to Argentina as
part of the larger program, which refinances payments Argentina
owes the institution from a previous bailout that failed to
stabilize the economy in 2018. Argentina would receive another IMF
disbursement in November of about US$2.75 billion pending another
staff-level agreement and board approval.
S&P Global Ratings, on March 15, 2024, raised its local currency
sovereign credit ratings on Argentina to 'CCC/C' from 'SD/SD' and
its national scale rating to 'raB+' from 'SD'. S&P also raised its
long-term foreign currency sovereign credit rating to 'CCC' from
'CCC-' and affirmed its 'C' short-term foreign currency rating. The
outlook on the long-term ratings is stable. In addition, S&P
revised its transfer and convertibility assessment to 'CCC' from
'CCC-'.
S&P said the stable outlook on the long-term ratings balances the
risks posed by pronounced economic imbalances and policy
uncertainties with the favorable change in near-term debt service
obligations. S&P also expect no further debt exchanges that it
would likely consider to be distressed.
Fitch Ratings upgraded on June 13, 2023, Argentina's Long-Term
Foreign Currency (FC) Issuer Default Rating (IDR) to 'CC' from
'C'and affirmed the Long-Term Local Currency (LC) IDR at 'CCC-'.
Fitch typically does not assign Outlooks to sovereigns with a
rating of 'CCC+' or below.
The upgrade of the FC IDR reflects that Fitch no longer deems a
default-like process to have begun, as the authorities have not
signaled a clear intention to follow through with an intra-public
debt swap announced in March. The new 'CC' rating signals a default
event of some sort appears probable in the coming years, regardless
of the outcome of upcoming elections. The affirmation of the LC IDR
at 'CCC-' follows the peso debt swap in June that Fitch did not
deem to be a "distressed debt exchange" (DDE).
Moody's Investors Service, in September 2022, affirmed Argentina's
Ca foreign-currency and local-currency long-term issuer and senior
unsecured ratings. The outlook remains stable. The decision to
affirm the Ca ratings balances Argentina's limited market access,
weak governance, and history of recurrent debt restructurings with
recent efforts to marshal fiscal and monetary measures to start
addressing underlying macroeconomic imbalances in the context of
the IMF program that was approved in 2022, according to Moody's.
DBRS, Inc. confirmed Argentina's Long-Term Foreign Currency Issuer
Rating at CCC and downgraded its Long-Term Local Currency Issuer
Rating to CCC from CCC (high) on March 3, 2023.
ARGENTINA: Will Seek New IMF Program to Exit 'Cepo', Caputo Says
----------------------------------------------------------------
Buenos Aires Times reports that Economy Minister Luis Caputo said
that Argentina intends to ask the International Monetary Fund for
"new money" as part of a new credit program.
Speaking at a seminar held at the Hilton Hotel in Buenos Aires,
Caputo said President Javier Milei's government will seek a new
deal with the multilateral lender that will allow Argentina to
remove strict currency controls, according to Buenos Aires Times.
He said negotiations over a new program would begin once the IMF's
executive board signs off on Argentina's latest quarterly review,
which has already been approved by IMF technical staff, the report
notes.
The IMF executive board's "evaluation will be on June 13 and based
on that, we will negotiate with them a new program," Caputo
announced during a forum on the "rebirth of freedom in Argentina"
at the Hilton Hotel in Buenos Aires, the report relays.
Caputo, speaking during a dialogue with Aldo Abram, the executive
director of Fundacion Libertad y Progreso, said a deal "will
probably take a little time" and refused to provide further
details, saying "first it has to be agreed with them," the report
discloses.
"It will take some time but it has to be agreed with the Fund and
eventually, with this new program, new money will arrive," the
minister said, the report relays.
The minister did, however, add that the program would be part of a
plan to remove Argentina's strict currency controls, which are
colloquially known as the "cepo," the report relays.
Argentina currently has a US$44.5-billion credit program with the
IMF, which provides it with fresh funds to make existing repayments
on the condition that the nation's quarterly accounts meet with
approval, the report discloses.
Caputo also highlighted the importance of Congress approving
President Milei's sweeping 'Ley de Bases' reform bill and its
accompanying fiscal package, the report adds.
About Argentina
Argentina is a country located mostly in the southern half of South
America. Its capital is Buenos Aires. Javier Milei is the current
president of Argentina after winning the November 19, 2023 general
election. He succeeded Alberto Angel Fernandez in the position.
Argentina has the third largest economy in Latin America. The
country's economy is an upper middle-income economy for fiscal year
2019, according to the World Bank. Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.
The IMF's executive board completed on August 23, 2023, the fifth
and six reviews of Argentina's 30-month Extended Fund Facility
(EFF), and approved a US$7.5-billion disbursement to Argentina as
part of the larger program, which refinances payments Argentina
owes the institution from a previous bailout that failed to
stabilize the economy in 2018. Argentina would receive another IMF
disbursement in November of about US$2.75 billion pending another
staff-level agreement and board approval.
S&P Global Ratings, on March 15, 2024, raised its local currency
sovereign credit ratings on Argentina to 'CCC/C' from 'SD/SD' and
its national scale rating to 'raB+' from 'SD'. S&P also raised its
long-term foreign currency sovereign credit rating to 'CCC' from
'CCC-' and affirmed its 'C' short-term foreign currency rating. The
outlook on the long-term ratings is stable. In addition, S&P
revised its transfer and convertibility assessment to 'CCC' from
'CCC-'.
S&P said the stable outlook on the long-term ratings balances the
risks posed by pronounced economic imbalances and policy
uncertainties with the favorable change in near-term debt service
obligations. S&P also expect no further debt exchanges that it
would likely consider to be distressed.
Fitch Ratings upgraded on June 13, 2023, Argentina's Long-Term
Foreign Currency (FC) Issuer Default Rating (IDR) to 'CC' from
'C'and affirmed the Long-Term Local Currency (LC) IDR at 'CCC-'.
Fitch typically does not assign Outlooks to sovereigns with a
rating of 'CCC+' or below.
The upgrade of the FC IDR reflects that Fitch no longer deems a
default-like process to have begun, as the authorities have not
signaled a clear intention to follow through with an intra-public
debt swap announced in March. The new 'CC' rating signals a default
event of some sort appears probable in the coming years, regardless
of the outcome of upcoming elections. The affirmation of the LC IDR
at 'CCC-' follows the peso debt swap in June that Fitch did not
deem to be a "distressed debt exchange" (DDE).
Moody's Investors Service, in September 2022, affirmed Argentina's
Ca foreign-currency and local-currency long-term issuer and senior
unsecured ratings. The outlook remains stable. The decision to
affirm the Ca ratings balances Argentina's limited market access,
weak governance, and history of recurrent debt restructurings with
recent efforts to marshal fiscal and monetary measures to start
addressing underlying macroeconomic imbalances in the context of
the IMF program that was approved in 2022, according to Moody's.
DBRS, Inc. confirmed Argentina's Long-Term Foreign Currency Issuer
Rating at CCC and downgraded its Long-Term Local Currency Issuer
Rating to CCC from CCC (high) on March 3, 2023.
===============
C O L O M B I A
===============
BOGOTA: Fitch Affirms 'BB+' LongTerm IDRs, Outlook Stable
---------------------------------------------------------
Fitch Ratings has affirmed Bogota, Capital District of Colombia's
(Bogota) Long-Term Foreign and Local Currency Issuer Default
Ratings (IDRs) at 'BB+' with a Stable Outlook. Fitch has also
affirmed Bogota's senior unsecured bonds at 'BB+'. Fitch has
additionally affirmed Bogota's National Scale Long-Term and
Short-Term Ratings at 'AAA(col)' and 'F1+(col)', respectively.
The affirmation of IDRs results from the Capital District of
Bogota's Standalone Credit Profile (SCP) of 'bbb-' still being
above Colombia's (BB+/Stable) sovereign ratings. Therefore, the
ratings remain capped by the sovereign.
Fitch has applied a financial adjustment that significantly
improved the calculation of Bogota's operating balance. This
adjustment is related to the reclassification of recurring
dividends from capital revenue to operating revenue. However, this
positive impact is largely offset by expectations of weaker
expenditure control compared to the previous rating review. This is
attributed to the current administration's intention to maintain
the social programs initiated by its predecessor.
Fitch notes that expenditure expanded significantly during the
historical analysis period, reducing Bogota's operating margins
significantly. Therefore, expenditure control in other areas is a
key assumption for the affirmation of the ratings. Should this
assumption be challenged, there may be a negative action on the
rating.
Bogota's average payback ratio (net adjusted debt/operating
balance) over the last two years of Fitch's rating scenario stands
at 7.3 times (x). Additionally, Bogotá has a synthetic debt
service coverage ratio (SDSCR) close to 1.2x. These metrics are in
line with Bogotá's 'bbb-' SCP.
KEY RATING DRIVERS
Risk Profile: 'Low Midrange'
Fitch assesses Bogota's risk profile at 'Low Midrange', reflecting
a combination of key risk factors (KRFs) with a majority of
'Midrange' attributes (five) and some 'Weaker' (one).
Revenue Robustness: 'Midrange'
The assessment for this key risk factor is supported by Bogota's
revenue structure, made up mainly of locally collected taxes that
have low to moderate cyclicality, with a highly diversified base.
National transfers represent less than 30% of operating revenue and
less than 25% of total revenue, so the assessment is not limited by
the sovereign rating.
Revenue Adjustability: 'Midrange'
Bogota has the ability to independently modify the rates of its
main tax revenue, subject to limits imposed by national law. Most
tax rates are far from legal limits, although reaching them in
practice may be difficult. The 'Midrange' assessment reflects
Fitch's opinion that using the legal leeway would yield enough to
offset at least 50% of a reasonably expected revenue decline during
a regular economic downturn, although this estimation is difficult
to make due to the highly complex nature of the city's tax code.
The assessment also considers Fitch's belief that taxpayers have a
moderate ability to afford increases in tax rates, given Bogota's
socioeconomic profile.
Expenditure Sustainability: 'Midrange'
The expenditure sustainability assessment is based on Fitch's
opinion that Bogota's expenditure is moderately correlated with the
economic cycle. Although expenditure grew significantly above
revenue in 2019-2023, Fitch believes this was partly due to the
previous administration's policy to create and expand discretionary
social programs and increase capex. Fitch does not believe there is
a structural mismatch between expenditure and revenue growth.
Expenditure Adjustability: 'Midrange'
Fitch estimates that Bogota's mandatory expenditure items represent
between 70% and 90% of total expenditure. Capex alone represented
around 30% of total expenditure in 2020-2023, although part of it
corresponds to inflexible items, such as multiyear commitments for
the city's main infrastructure projects. The city could be able to
make cuts to discretionary social programs or raise bus fares to
curb the growth of grants toward the transportation system.
Although these measures could be unpopular, Fitch believes they are
feasible in a scenario where the administration feels the city's
financial stability could face difficulties.
Liabilities & Liquidity Robustness: 'Midrange'
Bogota operates under a moderate national and individual debt
management framework. The city has negligible foreign exchange
risk, as only around 2% of outstanding debt at YE 2023 was
denominated in foreign currency. Interest rate risk is moderate, as
variable interest debt represents close to 50% of direct debt.
Inflation is the main variable with potential to affect Bogota's
debt stock, but it is considered manageable, given the inflation
target of Colombia's central bank and the natural hedge provided by
the fact that revenues tend to adapt to changes in price. There is
no significant maturity concentration, as the debt portfolio
comprises a mix of bullet bonds with maturities spread over
different time periods and amortizing loans.
Liabilities & Liquidity Flexibility: 'Weaker'
Fitch believes Bogota has low levels of available liquidity. At YE
2023, the city's reported accounts payable and other short-term
commitments exceeded total cash by more than COP1 trillion. This is
not a major concern for Fitch, as Fitch believes the city has
sufficient borrowing capacity and budget flexibility to cover the
deficit, but it shows that the city's cash is more than fully
committed to offset short-term obligations. Additionally, the city
does not have any committed credit lines with providers rated above
'BB+'.
Debt Sustainability: 'aa category'
According to Fitch's International local and regional government
(LRG) rating criteria, Bogota is classified as a Type B LRG as it
is required to cover its debt service from cash flow on an annual
basis. Therefore, the primary metric to assess debt sustainability
is the payback ratio.
Bogota's average payback ratio would be 7.3x for 2027-2028 in
Fitch's rating case, compared with 7.2x in 2023, indicative of a
'aa' assessment. The SDSCR would be in the 'bbb' range, just above
1.2x. Ultimately, the debt sustainability assessment is defined by
the payback ratio, which is the primary metric. Fitch does not
apply an override to the DS score due to the relatively weaker
SDSCR as Fitch believes that Bogota has the capacity to refinance
its debt easily.
DERIVATION SUMMARY
Bogota's SCP of 'bbb-' results from a combination of 'Low Midrange'
risk profile and a debt sustainability score at the lower end of
the 'aa' category. The latter is derived from a payback ratio near
the middle of the 'aa' category range and a relatively weaker SDSCR
in the 'bbb' range. Bogota's IDRs are capped by the sovereign.
National Ratings
Bogota's 'AAA(col)' national long-term rating corresponds to its
'BB+' Local Currency Long-Term IDR and considers that the latter is
capped by the sovereign. Likewise, its 'F1+(col)' national
short-term rating is the only one corresponding to the national
long-term rating.
Debt Ratings
The rating of Bogota's senior unsecured bond maturing in 2028 is
the same as Bogota's Foreign Currency IDR of 'BB+'. The local bond
program is senior unsecured and therefore is rated at 'AAA(col)',
at the same level of the issuer.
KEY ASSUMPTIONS
Risk Profile: 'Low Midrange'
Revenue Robustness: 'Midrange'
Revenue Adjustability: 'Midrange'
Expenditure Sustainability: 'Midrange'
Expenditure Adjustability: 'Midrange'
Liabilities and Liquidity Robustness: 'Midrange'
Liabilities and Liquidity Flexibility: 'Weaker'
Debt sustainability: 'aa'
Support (Budget Loans): 'N/A'
Support (Ad Hoc): 'N/A'
Asymmetric Risk: 'N/A'
Rating Cap (LT IDR): 'BB+'
Rating Cap (LT LC IDR) 'BB+'
Rating Floor: 'N/A'
Quantitative assumptions - Issuer Specific
Fitch's rating case is a "through-the-cycle" scenario, which
incorporates a combination of revenue, cost and financial risk
stresses. It is based on 2019-2023 figures and 2024-2028 projected
ratios. The key assumptions for the scenario include:
- Tax revenues grow in line with national GDP and lagged inflation,
resulting in an average annual growth rate of 6.1%;
- Current transfers received grow at an average rate of 13.2% per
annum, considering allocation made for 2024, historical and
conservative expectations for growth of national government
revenues;
- Total operating revenue grows at an average rate of 8.2% per
annum;
- Most operating expenditure items grow in line with lagged
inflation plus between 0 and 3 percentage points;
- Grants to the transportation system remain around COP3 trillion
throughout the scenario horizon;
- Total operating expenditure grows at an average rate of 7% per
annum;
- Average capital balance declines to near COP5.1 trillion per year
due to a decrease in the level of capex;
- Average cost of debt of 7.1%.
Liquidity and Debt Structure
Bogota's direct debt at YE 2023 was approximately COP9.3 trillion.
The city's adjusted debt includes an estimate of Bogota's share in
the debt of Empresa Metro de Bogota S.A. (EMB; AAA[col]/Stable),
valued at close to COP778 billion at YE 2023. This leads to an
adjusted debt calculation of COP10 trillion at YE 2023. Bogota's
net adjusted debt is equal to its gross adjusted debt, as all of
the city's COP3.9 trillion in cash at YE 2023 is considered
restricted by Fitch.
Between January and April 2024, the city borrowed around COP915
billion from local commercial and foreign development banks,
increasing direct debt to about COP10.2 trillion. Bogota's weighted
average life of debt estimated at YE 2023 is close to nine years,
reflecting the long-term nature of the city's debt portfolio.
Summary of Financial Adjustments
During this rating review, Fitch reclassified ordinary dividends
from Grupo de Energia de Bogotá (GEB) from capital revenue to
operating revenue. This change is based on the observed stability
of this important revenue source, which amounted to about COP1.1
trillion in 2023, and the fact that these revenues may help fund
many of the expenditures that are considered as operating by Fitch.
This is in line with the treatment given to dividends received by
LRGs in other regions such as North America and EMEA. Extraordinary
dividends from GEB and dividends received from other companies
remain classified as capital revenue due to their extraordinary or
volatile nature.
The above results in a positive adjustment to the operating balance
by between COP780 billion and COP1.1 trillion in the historical
period, resulting in an average decrease of 7x in the payback ratio
for this period. The positive adjustment for the operating balance
over the rating case scenario amounts to between COP1.2 and 1.4
trillion per annum, which results in a decrease of 4.3x in the
average payback ratio for 2027 and 2028 relative to the scenario
where the dividends remain as capital revenue.
For its analysis, Fitch considers the city's annual budget, which
includes Bogota's public establishments. Fitch does not consider
the revenue and expenditure of Universidad Distrital for its
analysis but considers Bogota's transfers to the university as part
of operating expenditure.
Fiscal surplus from previous fiscal years are excluded from
revenues, and payment of expenses committed during previous fiscal
years are excluded from expenditure.
Revenues collected on behalf of CAR de Cundinamarca are excluded
from revenues, and transfers of these revenues to CAR de
Cundinamarca are excluded from expenditure.
Bogota's operating expenditure is based on a Fitch estimate and
includes items reported under "investment expenditure" that Fitch
believes to be recurring in nature. These include staff and other
operating costs of the education sector, subsidies and grants for
utilities, health insurance, and transportation, among others.
Issuer Profile
Bogota is Colombia's capital city and its most important economic
hub. As of 2023, its population is estimated at close to eight
million. Bogota's GDP per capita is greater than 1.6x the national
average.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- A downgrade of Colombia's IDRs would lead to a downgrade of
Bogota's IDRs;
- Bogota's IDRs could be downgraded if its SCP is lowered to 'bb'
or below, resulting from a payback ratio above 9.0x in the last
years of Fitch's rating case. This could result from the city
failing to control expenditure growth, boost its revenues or
achieve sustained national funding for the transportation system
over the medium term;
- Bogota's Long-Term National Ratings could be downgraded if the
payback ratio was close to 9.0x in the last years of the rating
case.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- An upgrade of Colombia's IDRs would lead to an upgrade of
Bogota's IDRs, as long as its SCP remains above the current
sovereign ratings;
- An upgrade of Bogota's national scale ratings is impossible, as
they are the highest ratings possible.
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.
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
Bogota's ratings are capped by the sovereign (BB+).
Entity/Debt Rating Prior
----------- ------ -----
Bogota, Distrito
Capital LT IDR BB+ Affirmed BB+
LC LT IDR BB+ Affirmed BB+
Natl LT AAA(col)Affirmed AAA(col)
Natl ST F1+(col)Affirmed F1+(col)
senior unsecured LT BB+ Affirmed BB+
senior unsecured Natl LT AAA(col)Affirmed AAA(col)
GRAN TIERRA: Fitch Affirms 'B' LongTerm IDR, Outlook Stable
-----------------------------------------------------------
Fitch Ratings has affirmed Gran Tierra Energy Inc.'s (GTE) and Gran
Tierra Energy International Holdings Ltd's (GTE International)
Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs)
at 'B'. The Rating Outlook is Stable. In addition, Fitch has
affirmed the 2027 USD300 million senior unsecured notes and the
2029 USD588 million senior secured notes issued by GTE at
'B'/'RR4'. Fitch has also affirmed the 2025 USD300 million senior
unsecured notes issued by GTE International at 'B'/'RR4'.
GTE's ratings and Outlook reflect the company's adequate capital
structure and low-cost operating profile, constrained by small
scale of operations and limited geographic diversification. Fitch
forecasts the company's gross production will grow at a CAGR of 11%
over the next three years, reaching an average of 45,000boed by
YE2026, while maintaining PDP and 1P reserve life at 4.0 years and
7.0 years, respectively. Fitch estimates GTE's debt/1P should be at
or below USD7/boe, and gross EBITDA leverage at or below 2.0x, over
the rating horizon.
KEY RATING DRIVERS
Small Concentrated Production Profile: GTE's ratings are
constrained by its production size, projected to increase to an
average of 45,000boed by YE2026, in line with Fitch's positive
sensitivity trigger. The company has a concentrated production
profile where the Midas block accounts for nearly 50% of total
current production. GTE's PDP and 1P reserve life is stable and
close to 4.0 years and 7.0 years, respectively, in 2024.
Growth Strategy: Fitch expects total production to reach 45,000boed
by YE2025, at a CAGR of 11% from YE2023 production. Growth will
come mainly from the Cohembi field as GTE continues its development
drilling plan while expanding its oil recovery program through
waterflooding and the polymer injection. Growth will also be
supported by the expected increase in production in Ecuador, where
the company recently announced oil discovery at the Arawana-J1
field with an average output per well of 1,000 bbl/d.
Low-Cost Production Profile: GTE is well positioned compared with
peers with half-cycle cost of production of USD25/boe in 2023, and
Fitch expect it to remain at or below this level over the next
three years. The company's half-cycle cost increased in 2023 as
interest expenses grew by USD7.0 million, compared to FY2022. GTE's
production profile allows the company greater financial flexibility
to absorb shocks in pricing, as lower cost of production has
allowed it to sell at a deeper discount than peers. The rating case
assumes GTE will sell at an average discount to Brent of
USD12.0/bbl over the rated horizon.
Adequate Capital Structure: Fitch projects that GTE's gross
leverage will be 1.5x in 2024, assuming an EBITDA of USD390 million
and total debt of USD600 million, and remain at or below 2.0x over
the rating horizon. Fitch also projects debt/1P will be at or below
USD6.5/boe assuming 1P replacement of 106%. Fitch's base case
assumes that the 2024-2027 capex plan will be close to USD900
million and will be funded with internal cash flows without
additional debt. Annual FCF should average USD65 million in 2024
and 2025.
DERIVATION SUMMARY
GTE's credit and business profiles are comparable with other small
independent oil producers in Colombia. The ratings of SierraCol
Energy (B+/Stable) and Geopark (B+/Negative) are constrained to the
'B' category or below, given the inherent operational risk
associated with the small scale and low diversification of their
oil and gas production.
Fitch expects GTE's production will average 45,000boed by YE2026
and its PDP reserve life will be 4.0 years with a 1P reserve life
7.0 years. This compares well with SierraCol's PDP reserve life of
4.5 years and 1P reserve life of 7.0 years in 2024.
GTE's half-cycle production was USD25/boe in 2023 and the
full-cycle cost was USD40/boe. This is in line with SierraCol's
half-cycle production cost of USD26/boe in 2023 but lower than its
full-cycle cost of USD44/boe. Geopark is the lowest cost producer
in the region at USD15/bbl and estimated USD26/bbl.
GTE, SierraCol and Geopark have low leverage. Fitch expects GTE's
2024 leverage to be 1.5x, its total debt to PDP to be USD12/boe and
total debt to 1P to be USD6.3/boe in FY2024.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within the Rating Case for the Issuer
- Fitch's price deck of USD80/bbl in 2024, USD70/bbl in 2025,
USD65/bbl in 2026 and 2027;
- Average daily gross production of 33,000boed in 2024, and an
average of 40,000boed between 2025-2027;
- Average USD12/bbl discount to Brent over 2024-2027;
- Royalties of USD16/bbl in 2024 and an average of USD10/bbl from
2025-2027;
- Operating expenses at USD16/boe in 2024, an average of USD15/boe
between 2025-2027;
- Transportation cost of USD1/boe over the rating horizon;
- SG&A cost of USD3/boe over the rating horizon;
- Capex of USD230 million in 2024;
- No dividends over the rating horizon, share repurchases close to
USD15 million in 2024;
- 1P Reserve Replacement of 106%.
RECOVERY ANALYSIS
The recovery analysis assumes that GTE would be a going concern
(GC) in bankruptcy and that it would be reorganized rather than
liquidated.
GC Approach:
- A 10% administrative claim.
- The GC EBITDA is estimated at USD370 million. The GC EBITDA
estimate reflects Fitch's view of a sustainable,
post-reorganization EBITDA level upon which Fitch bases the
valuation of GTE.
- EV multiple of 4.0x.
With these assumptions, Fitch's waterfall generated recovery
computation (WGRC) for the senior secured notes is in the 'RR1'
band and the senior unsecured notes are in the 'RR2' band. However,
according to Fitch's Country-Specific Treatment of Recovery Ratings
Criteria, the Recovery Rating for corporate issuers in Colombia is
capped at 'RR4'.
RATING SENSITIVITIES
Factors That Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Net production maintained at 45,000boed or more, while
maintaining a 1P reserve life of seven years or greater;
- Maintenance of a conservative financial profile with gross
leverage of 2.5x or below and total debt/1P reserves of USD8/bbl or
below.
Factors That Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Sustainable production size declines to below 30,000boed;
- 1P reserve life declines to below seven years on a sustained
basis;
- A significant deterioration of credit metrics to total
debt/EBITDA of 3.5x or more;
- A persistently weak oil and gas pricing environment that impairs
the longer-term value of its reserve base;
- Sustained deterioration in liquidity and operating profile,
particularly in conjunction with more aggressive dividend
distributions than previously anticipated.
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: GTE reported USD126.6 million in cash and
equivalents as of 1Q24 and USD25 million of debt maturing in the
short term. In 1Q24, the company issued an additional USD100
million offering for the 2029 senior secured notes and paid USD36.4
million outstanding balance of the credit facility, which was
subsequently terminated. The rating case assumes GTE's FCF will be
positive between 2024 and 2027.
ISSUER PROFILE
Gran Tierra is an independent energy company with an average oil
production of approximately 32,000boed onshore in Colombia. GTE's
blocks are located in the Middle Magdalena, Llanos and Putumayo
basins. The company had 90MMboe of 1P reserve and 7.6-year reserve
life as of FY23.
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
Gran Tierra Energy Inc. has an ESG Relevance Score of '4' for GHG
Emissions & Air Quality due to the growing importance of policies
designed to limit the greenhouse gas (GHG) emissions from the
production of oil and gas and potentially lessening demand, which
has a negative impact on the credit profile, and is relevant to the
ratings in conjunction with other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Gran Tierra
Energy Inc. LT IDR B Affirmed B
LC LT IDR B Affirmed B
senior
unsecured LT B Affirmed RR4 B
senior secured LT B Affirmed RR4 B
Gran Tierra Energy
International
Holdings Ltd. LT IDR B Affirmed B
LC LT IDR B Affirmed B
senior
unsecured LT B Affirmed RR4 B
=============
J A M A I C A
=============
JAMAICA: BOJ to Stop Exchange of Canadian, Euro & British Pound
---------------------------------------------------------------
RJR News reports that Bank of Jamaica said it will no longer
exchange coins of the Canadian Dollar, British Pound, and Euro at
its banking counter effective July 1.
As a part of its banking services offered to the public, the bank
facilitates the exchange of specified foreign currency banknotes
and coins for Jamaican dollars at its banking counter, according to
RJR News.
However, the BOJ says in recent years it has become increasingly
challenging to offer this service for non-United States dollar
foreign coins, primarily due to the unavailability of options for
the repatriation of these coins to their respective issuing central
banks, the report notes.
The Bank continues to accept and exchange US, Canadian, British,
and EUR banknotes as well as USD coins, 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.
JAMAICA: Mining and Quarrying Exports Drop 11.9% in January 2024
----------------------------------------------------------------
RJR News reports that the value of exports in the mining and
quarrying industry decreased by 11.9 per cent for January 2024.
The Statistical Institute of Jamaica (STATIN) says US$45.5 million
was earned for that month, according to RJR News.
That's down from the US$51.7 million recorded for January 2023, the
report notes.
STATIN said this was largely due to the 11.2 per cent fall in
earnings from alumina exports, the report relays.
This decline totaled $39.6 million, the report notes.
In January 2023, the value of those exports was US$44.5 million,
the report adds.
About Jamaica
Jamaica is an island country situated in the Caribbean Sea.
Jamaica is an upper-middle income country with an economy heavily
dependent on tourism. Other major sectors of the Jamaican economy
include agriculture, mining, manufacturing, petroleum refining,
financial and insurance services.
In October 2023, Moody's upgraded the Government of Jamaica's
long-term issuer and senior unsecured ratings to B1 from B2, and
senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has
been changed to positive from stable. The upgrade of Jamaica's
rating to B1 reflects the government's sustained commitment to
fiscal consolidation and debt reduction. The positive outlook
reflects Moody's assessment that a continuation of the favorable
fiscal trajectory will further increase Jamaica's credit
resilience.
S&P Global Ratings raised on September 13, 2023, its long-term
foreign and local currency sovereign credit ratings on Jamaica to
'BB-' from 'B+', and affirmed its short-term foreign and local
currency sovereign credit ratings at 'B'. The stable outlook
reflects S&P's expectation that the government will remain
committed to prudent fiscal policies and reducing debt, as well as
supportive economic policies including a flexible exchange rate
regime and effective monetary policy.
In March 2022, Fitch Ratings affirmed Jamaica's Long-Term Foreign
Currency Issuer Default Rating (IDR) at 'B+'. The Rating Outlook is
Stable.
===========
M E X I C O
===========
FINACIERA INDEPENDENCIA: Fitch Hikes IDR to 'BB-', Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has upgraded Financiera Independencia, S.A.B. de
C.V., SOFOM, E.N.R.'s (Findep) Long-Term Local and Foreign Currency
Issuer Default Ratings (IDRs) to 'BB-' from 'B+', and the senior
unsecured long-term debt rating to 'BB-' from 'B+'/'RR4'. Fitch has
also affirmed the Short-Term Local and Foreign Currency IDRs at
'B'. The Rating Outlook of the Long-Term ratings is Stable.
Fitch has also upgraded Findep's and Apoyo Economico Familiar, S.A.
de C.V., Sociedad Financiera de Objeto Multiple, E.N.R. (AEF)
Long-Term National rating to 'A-(mex)' from 'BBB(mex)' and the
Short-Term National Rating to 'F2(mex)' from 'F3(mex)'. The Outlook
of the Long-Term ratings is Stable.
KEY RATING DRIVERS
Findep's IDR are based on its Standalone Credit Profile (SCP). The
rating actions reflect Findep's improved maturity profile which
reduces liquidity and refinancing risks over the rating horizon.
The ratings also consider the company's high non-performing loan
(NPL) metric, its concentration in the microfinance segment,
although with a reasonable geographical diversification. Findep's
low tangible leverage and sound profitability are rating
strengths.
SROE Underpinned by Geographical Diversification: Fitch maintained
its assessment of the Sector Risk Operating Environment (SROE)
score at 'bbb-' with negative trend. The score is above the Mexican
finance and leasing companies (FLC) SROE (bb+ with Negative trend),
capturing the company's international operation in the United
States through its subsidiary Apoyo Financiero Inc. (AFI). The
Negative trend reflects the decrease of Findep's U.S. operations
and Mexican FLC' funding pressures.
Increasing Total Net Operating Income: The agency has revised the
Business Profile trend to 'Positive' from 'Stable' to reflect
Findep's increasing Total Net Operating Income (TNOI). Findep's
business profile assessment of 'bb-' considers its business model
concentrated in a high-risk segment of unsecured loans to
individuals unserved by banks and with high-interest rates, that
could be subject to reputational risks. As of December 2023,
Findep's TNOI reached USD288 million (2022: approximately USD251
million). This figure compares well with several non-bank financial
institutions rated by the agency in Latin America.
Lower Execution Risk: Fitch revised the trend of the Management and
Strategy factor score to 'Stable' from 'Negative' considering
reduced pressures over Findep's funding structure and considering
Fitch's view that the entity has proven its ability to generate
cash. The entity continues being proactive at reducing its
delinquency metrics and charge-offs.
High Risk Profile: Fitch has revised the score of Risk Profile to
'b' from 'b+' with stable trend to align the score to the asset
quality score considering that Findep's main exposure is its credit
risk and high delinquency and charge-offs metrics.
High Level of Charge-offs: while the asset quality core metric of
stage 3 portfolio to total loan portfolio as of March 2024 improved
to 5.6% (2023: 6.2%, 2022: 6.7%), TTM charge-offs were a still high
20% of total average loan portfolio despite a reduction of 15% YoY.
Fitch expects this strengthening trend to continue supported by the
actions to control loan deterioration implemented by the entity.
Good and Sustained Profitability Levels: Fitch has revised the
score of Earnings and Profitability factor to 'bbb-' from 'bb+',
since profitability has consistently increased in the last three
years, although revenues are highly concentrated in interest
income. As of March 2024, Findep's pre-tax income to average assets
was a high 9.5%, above the 9.1% registered as of YE 2023. In
Fitch's view, Findep could sustain these profitability metrics
considering its strategy of controlled expenses and as loan growth
starts to resume.
Sound Loss Absorption Capacity: Findep's increasing capital base
driven by sustained generation and reinvestment of profits and
declining debt support a stronger tangible leverage core metric. As
of March 2024, tangible leverage decreased to around 0.9x (2023:
1x). Fitch views this metric could slightly increase as the company
resumes loan growth, nevertheless the indicator will remain
commensurate with the Capitalization and Leverage factor score of
'bb+'.
Increasing Liquidity Coverage: Fitch has revised its assessment of
Funding, Liquidity and Coverage to 'bb-' from 'b' with stable trend
due to Findep's sound liquidity management and proven cash flow
generation capacity. Consequently, this factor is no longer the
weakest link in Findep's credit profile. As of December 2023, and
March 2024 its liquid assets covered in excess its shot-term
maturities, after the early amortization of its Senior Notes due in
2024, the refinancing of a significant credit line and constant
cash flow generation. Findep sustains a reasonable funding
flexibility considering the relatively high proportion of unsecured
debt (59.2% of total debt as of March 2024).
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- A ratio of cash and undrawn committed credit facilities below
0.5x in a sustained manner, in conjunction with a significant
reduction of unsecured debt portion consistently below 40% of total
debt;
- A change in the SROE could pressure the ratings;
- A significant asset quality deterioration;
- A sustained and significant deterioration on profitability and
tangible leverage ratios.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- A relevant and sustained improvement on asset quality with an
important reduction of charge-offs in order to represent a
single-digit of average loan portfolio, in conjunction with
increasing TNOI consistently above USD300 million. The latter while
maintains similar to recent metrics of profitability, tangible
leverage, liquidity coverage and unsecured debt to total debt.
DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS
Debt Ratings: Findep's global debt issuance rating is in aligned
with its IDR reflecting average recovery prospects.
DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES
The senior unsecured debt rating will mirror any changes to
Findep's IDRs, or it could be downgraded below Findep's IDRs if the
level of unencumbered assets substantially deteriorates,
subordinating bondholders to other debt.
SUBSIDIARY AND AFFILIATE RATINGS: KEY RATING DRIVERS
Subsidiary Ratings: AEF national ratings are equalized to Findep's,
driven by Fitch's opinion that the high integration and large
relative size of the subsidiary support a group ratings approach.
As of March 2024, AEF accounted for close to 28% of Findep´s
consolidated assets after eliminations, plays a relevant role to
the consolidated operation, and received the majority of its
funding from related parties.
SUBSIDIARY AND AFFILIATE RATINGS: RATING SENSITIVITIES
AEF's national ratings will move in tandem with Findep's national
ratings, consistent with the group ratings approach.
ADJUSTMENTS
The Business Profile score has been assigned below the implied
score due to the following adjustment reason(s): Business model
(negative).
The Asset Quality score has been assigned below the implied score
due to the following adjustment reason(s): Loan charge-offs,
depreciation or impairment policy (negative).
The Earnings & Profitability score has been assigned below the
implied score due to the following adjustment reason(s): Revenue
diversification (negative).
The Capitalisation & Leverage score has been assigned below the
implied score due to the following adjustment reason(s): Risk
profile and business model (negative).
The Funding, Liquidity & Coverage score has been assigned below the
implied score due to the following adjustment reason(s): Funding
flexibility (negative).
Criteria Variation
This is a text exhibit 'NBFI - Criteria Variations'. See
instructions in side pane.
SUMMARY OF FINANCIAL ADJUSTMENTS
Pre-paid expenses and other deferred assets were reclassified as
intangibles and deducted from equity to reflect their low loss
absorption capacity.
Sources of Information
Financial figures are in accordance with the CNBV criteria. 1Q24,
4Q23 and 4Q22 figures include recent accounting changes in the
process to converge to International Financial Reporting Standards
(IFRS). Prior years did not include this change and the agency
believes they are not directly comparable
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
AEF's ratings are linked to Financiera Independencia's ratings.
ESG CONSIDERATIONS
Fitch has change Findep's ESG Relevance for Management Strategy to
'3' from '4' due to eased risks associated with the execution of
the company's strategy to reduce refinancing risks. Fitch considers
that refinancing strategy is currently managed in a manner that
results in a low impact on the entity's rating, considering the
liquidity coverage and maturity structure of the company exhibited
in recent periods. Therefore, Fitch believe management strategy has
a minimal credit impact on Findep's credit profile.
Findep has an ESG Relevance Score of '4' for Customer Welfare —
Fair Messaging, Privacy & Data Security as its business model has
high lending rates to unbanked, lower income segments of the
population, which exposes Findep to relatively high regulatory,
legal and reputational risks. This has a negative impact on the
credit profile and is relevant to the rating in conjunction with
other factors.
Findep has an ESG Relevance Score of '4' for Exposure to Social
Impacts given that its business model (individual loans to
unbanked, low-income segments) is exposed to shifts of consumer or
social preferences or to measures that the government could take to
increase financial inclusion. This has a negative impact on the
credit profile and is relevant to the rating in conjunction with
other factors.
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
----------- ------ -----
Financiera
Independencia,
S.A.B. de C.V.,
SOFOM, E.N.R. LT IDR BB- Upgrade B+
ST IDR B Affirmed B
LC LT IDR BB- Upgrade B+
LC ST IDR B Affirmed B
Natl LT A-(mex)Upgrade BBB(mex)
Natl ST F2(mex)Upgrade F3(mex)
senior
unsecured LT BB- Upgrade B+
Apoyo Economico
Familiar S. A. de
C. V., Sociedad
Financiera de
Objeto Multiple,
E. N. R. Natl LT A-(mex)Upgrade BBB(mex)
Natl ST F2(mex)Upgrade F3(mex)
===============
P A R A G U A Y
===============
BANCO CONTINENTAL: Fitch Affirms BB+ LongTerm IDRs, Outlook Stable
------------------------------------------------------------------
Fitch Ratings has affirmed Banco Continental S.A.E.C.A.'s
(Continental) Long-Term Foreign and Local Currency Issuer Default
Ratings (IDRs) at 'BB+'. The Rating Outlook is Stable. Fitch also
affirmed Continental's Short-Term Foreign and Local Currency IDR's
at 'B'.
KEY RATING DRIVERS
IDRs Driven by VR: Continental's IDRs are driven by its intrinsic
creditworthiness, as reflected in its 'bb+' Viability Rating (VR).
The bank's VR is in line with its implied VR and considers
Continental's strong local franchise as the second largest
Paraguayan bank with a 17.2% market share of the banking system's
loans. Continental's strong capitalization metrics relative to its
local and similarly rated international peers also influence the
bank's ratings. Additionally, the VR considers Continental's good
asset quality, improved profitability and good liquidity, as well
as its stable, but somewhat, concentrated funding.
Good Business Profile: Despite Continental's modest size on a
global basis, Fitch's business profile assessment reflects the
bank's leading market share in Paraguay in terms of assets, (second
largest) and deposits (third largest), supporting a business
profile score of 'bb'. This is above the implied score due to the
bank's market position (positive). As of March 31, 2024 the bank
has a deposit market share of 15% among the Paraguayan banks.
Continental's business model focuses primarily on corporate lending
and to a lesser extent small and medium companies. The bank's risk
profile also supports its VR, as conservative underwriting policies
have enabled the bank to maintain stable and low non-performing
loan (NPL) ratios over the past few years (NPLs 2019-2023: 1.7% on
average). However, it has resulted in some concentration in the
top-20 borrowers accounting for approximately 20% of the total
loans and about 1x of the FCC.
Good Asset Quality: Continental's impaired-loan ratio over 60 days
remained low at 1.5% as of Dec. 31, 2023, which compares well with
the banking system average of 3%. This is also at the lower end of
the benchmark range for an implied assessment in the 'bb' category.
Reserve coverage to impaired loans was 224%. Fitch expects any
pressure on asset quality to be manageable, given the bank's
business model, and good reserve coverage and collateralization
policies, as nearly a third of the loans have some type of
guarantee. The bank's asset quality ratios compare favorably with
those of its local peers.
Strong Capitalization: Continental's capitalization is one of its
main financial strengths. The bank's Fitch Core Capital (FCC) to
risk-weighted assets (RWA) ratio was at a comfortable 18.6% at Dec.
31, 2023. Continuous earnings retention has supported this ratio.
In Fitch's view, the bank remains well prepared to face the Central
Bank's higher capital requirements for domestic systemically
important banks if required under law No.5587/16. However, there is
no specific effective date for such a requirement.
Improved Profitability: Continental had very strong performance in
2023, as its operating profit to RWA ratio increased to nearly 3.5%
as of December 2023 (up from 2.9% in 2022 and 2.6% in 2021). The
upward trend is underpinned by its strong franchise with growing
net interest margins and increased cost efficiencies. Fitch expects
this ratio to remain above 3%.
Satisfactory Liquidity: The bank's funding relies primarily on
wholesale deposits, which are concentrated (the top-20 depositors
accounted for 26.3% of total deposits at end-December 2023).
However, 9.9% of the total deposits are from a public company that
provides stable funding. Continental had further diversified its
funding base through an international issuance of a five-year
USD300 million sustainable bond. Its funding is complemented by
approved credit lines with a number of foreign financial
institutions and global development banks.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Continental's VR and IDRs could be affected by material weakening
of the bank's currently strong capital metrics (FCC sustained below
16%);
- A deterioration of the operating environment that results in a
sustained deterioration of the bank's asset quality (impaired loans
ratio above 3.5%) or an Operating Profit to Risk-Weighted Assets
metric below 1.5% could be negative for creditworthiness;
- Loss of the bank's strong competitive position in the local
market could also pressure ratings.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- An upgrade is unlikely over the foreseeable future, but could
result from potential improvements in Fitch's assessment of the
Paraguayan operating environment faced by local banks together with
an improvement with the bank's financial profile.
OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS
The senior unsecured debt rating of 'BB+' is at the same level as
the bank's Long-Term IDR, as Fitch views the likelihood of default
of the senior debt as the same as that of the issuer.
OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES
- Senior debt ratings would generally move together with the bank's
Long-Term IDRs.
GOVERNMENT SUPPORT RATING
Continental's GSR of 'bb' reflects a moderate probability of
support because of uncertainties regarding the sovereign's ability
or propensity to do so, despite the bank's systemic importance. The
ability of the sovereign to provide support is based on Paraguay's
(Long-Term Foreign Currency IDR BB+/Stable).
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Continental' GSR is sensitive to changes in Fitch's assessment
about the ability and/or propensity of the sovereign to provide
timely support to the bank.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Downgrade
- A potential rating upgrade in the bank's GSR is unlikely.
Continental is considered by Fitch as a domestic systemically
important financial institution (D-SIFI) of the Paraguay financial
system;
VR ADJUSTMENTS
- The Operating Environment score of 'bb' has been assigned above
the 'b' category implied score due to the following adjustment
reasons: Sovereign Rating (positive).
- The Business Profile score of 'bb' has been assigned above the
'b' category implied score due to the following adjustment reasons:
Market Position (positive).
ESG CONSIDERATIONS
Banco Continental S.A.E.C.A. has an ESG Relevance Score of '4' for
Governance Structure due to low board independence compared to
regional peers, and due to the main shareholder of the bank having
a high influence on Continental's strategic decisions, which Fitch
considers as a key person risk. This has a negative impact on the
credit profile, and is relevant to the ratings in conjunction with
other factors.
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 Continental
S.A.E.C.A. LT IDR BB+ Affirmed BB+
ST IDR B Affirmed B
LC LT IDR BB+ Affirmed BB+
LC ST IDR B Affirmed B
Viability bb+ Affirmed bb+
Government Support bb Affirmed bb
senior
unsecured LT BB+ Affirmed BB+
=====================
P U E R T O R I C O
=====================
AGREGADOS FURIA: Hires Lugo Mender Group as Legal Counsel
---------------------------------------------------------
Agregados Furia, Inc. seeks approval from the U.S. Bankruptcy Court
for the District of Puerto Rico to employ Lugo Mender Group, LLC as
counsel.
The firm will render these legal services:
(a) advise the Debtor regarding its duties, powers and
responsibilities in the continued management of its business
operations;
(b) advise the Debtor in connection with its reorganization
endeavors;
(c) assist the Debtor with respect to negotiations with
creditors for the purpose of arranging a feasible Plan of
Reorganization;
(d) prepare legal papers;
(e) appear before the bankruptcy court, or any other court in
which the Debtor asserts a claim or defense directly or indirectly
related to this bankruptcy case; and
(f) perform such other legal services for the Debtor as may be
required in these proceedings.
The firm will be paid at these rates:
Wigberto Lugo Mender, Esq. $325 per hour
Senior Attorney $250 per hour
Associate Staff Attorney $175 per hour
Legal and Financial Assistants $125 per hour
In addition, the firm will seek reimbursement for expenses
incurred.
Prior to the petition date, the firm received a retainer in the
amount of $8,262 for the legal services to be rendered in
connection with this case.
Wigberto Lugo Mender, Esq., an attorney at Lugo Mender Group,
disclosed in a court filing that the firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Wigberto Lugo Mender, Esq.
Lugo Mender Group, LLC
100 Carr. 165, Suite 501
Guaynabo, PR 00968-8052
Telephone: (787) 707-0404
Facsimile: (787) 707-0412
Email: a_betancourt@lugomender.com
About Agregados Furia, Inc.
The Debtor is in the business of non-metallic mineral mining and
quarrying.
Agregados Furia Inc. in Barceloneta, PR, filed its voluntary
petition for Chapter 11 protection (Bankr. D.P.R. Case No.
24-02130) on May 21, 2024, listing as much as $1 million to $10
million in both assets and liabilities. Carmen L. Alvarado Torres
as authorized representative, signed the petition.
LUGO MENDER GROUP, LLC serve as the Debtor's legal counsel.
=================
V E N E Z U E L A
=================
VENEZUELA: Inflation Slows to 10-Year Low of 59% Ahead of Vote
--------------------------------------------------------------
globalinsolvency.com, citing Bloomberg News, reports that annual
inflation slowed to a 10-year low in Venezuela as the central bank
intervenes to prop up the currency.
Consumer prices rose 59% in May from a year earlier, the weakest
pace since 2014, the bank said, according to globalinsolvency.com.
Monthly inflation eased to 1.5%, from 2% in April, the report
notes.
President Nicolas Maduro's government has sought to help ease
consumer price pressure by selling more dollars in the official
exchange market and cutting expenses in local currency as he
campaigns for a third consecutive term in the July 28 election, the
report relays. The president hailed cooling inflation as evidence
his government is "walking the correct road," the report discloses.
Venezuela's annual rate still remains the highest in Latin America
after Argentina, but is now far below its 2019 peak of more than
300,000%, the report says. For at least four years, policymakers
have spent dollars to prevent the bolivar from weakening too fast,
the report notes. The central bank spent nearly $140 million
defending the currency, according to estimates by Caracas-based
consulting firm Síntesis Financiera, the report adds.
About Venezuela
Venezuela, officially the Bolivarian Republic of Venezuela, is a
country on the northern coast of South America, consisting of a
continental landmass and a large number of small islands and islets
in the Caribbean sea. The capital is the city of Caracas.
Hugo Chavez was president to Venezuela from 1999 to 2013. The
Chavez presidency was plagued with challenges, which included a
2002 coup d'etat, a 2002 national strike and a 2004 recall
referendum. Nicolas Maduro was elected president in 2013 after the
death of Chavez. Maduro won a second term at the May 2018
Venezuela elections, but this result has been challenged by
countries including Argentina, Chile, Colombia, Brazil, Canada,
Germany, France and the United States who deemed it fraudulent and
moved to recognize Juan Guaido as president.
The presidencies of Chavez and Maduro have challenged Venezuela
with a socioeconomic and political crisis. It is marked by
hyperinflation, climbing hunger, poverty, disease, crime and death
rates, social unrest, corruption and emigration from the country.
Moody's has withdrawn 'C' local currency and foreign currency
ceilings for Venezuela in September 2022. Standard & Poors has
also withdrawn its 'SD/D' foreign currency sovereign credit ratings
and 'CCC-/C' local currency ratings on Venezuela in September 2021
due to lack of sufficient information. Fitch withdrew its own
'RD/C' Issuer Default Ratings on Venezuela in June 2019 due to the
imposition of U.S. sanctions on the country's government.
===============
X X X X X X X X
===============
[*] BOND PRICING: For the Week June 10 to June 14, 2024
-------------------------------------------------------
Issuer Name Cpn Price Maturity
Cntry Curr
---------- --- ----- --------
----- ----
Aeropuerto de Tocumen 4.0 70.3 8/11/2041 PA USD
AES Tiete Energia SA 6.8 0.7 4/15/2024 BR BRL
Agile Group Holdings 5.8 16.3 1/2/2025 KY USD
Agile Group Holdings 6.1 13.4 10/13/2025 KY USD
Agile Group Holdings 5.5 13.0 5/17/2026 KY USD
Agile Group Holdings 7.9 3.3 KY USD
Agile Group Holdings 5.5 15.0 4/21/2025 KY USD
Agile Group Holdings 7.8 3.3 KY USD
Alfa Desarrollo SpA 4.6 74.5 9/27/2051 CL USD
Alfa Desarrollo SpA 4.6 74.7 9/27/2051 CL USD
Alibaba Group Holding 3.2 65.4 2/9/2051 KY USD
Alibaba Group Holding 2.7 68.6 2/9/2041 KY USD
Alibaba Group Holding 3.3 62.9 2/9/2061 KY USD
AMTD IDEA Group 1.5 7.5 KY USD
AMTD IDEA Group 4.5 55.3 KY SGD
Amwaj 6.4 71.6 KY USD
Amwaj 4.5 50.9 KY USD
Argentina Bonar Bonds 1.0 43.7 7/9/2029 AR USD
Argentina Treasury Dual 3.3 45.8 4/30/2024 AR USD
Argentine Bonos del Tesoro 15.5 40.3 10/17/2026 AR ARS
Argentine Gov't Int'l Bond 1.0 47.5 7/9/2029 AR USD
Argentine Gov't Int'l Bond 0.5 41.9 7/9/2029 AR EUR
Argentine Gov't Int'l Bond 0.1 42.5 7/9/2030 AR EUR
Ascent Finance 1.2 61.0 7/12/2047 KY EUR
Ascent Finance 3.4 66.6 2/6/2043 KY AUD
Ascent Finance 3.8 67.9 6/28/2047 KY AUD
Astra Cumulative 2019 1.5 62.1 11/1/2029 KY USD
At Home Cayman 11.5 69.3 5/12/2028 KY USD
At Home Cayman 11.5 70.6 5/12/2028 KY USD
AYC Finance 3.9 63.2 KY USD
Banco Davivienda SA 6.7 65.8 CO USD
Banco Davivienda SA 6.7 70.3 CO USD
Banco de Chile 2.7 75.1 3/9/2035 CL AUD
Banco del Estado de Chile 3.1 71.2 2/21/2040 CL AUD
Banco del Estado de Chile 2.8 67.7 3/13/2040 CL AUD
Banco Nacional de Panama 2.5 75.4 8/11/2030 PA USD
Banco Nacional de Panama 2.5 75.2 8/11/2030 PA USD
Banco Santander Chile 3.1 71.2 2/28/2039 CL AUD
Banco Santander Chile 1.3 73.9 11/29/2034 CL EUR
Banda de Couro Energetica 8.0 55.1 1/15/2027 BR BRL
Baraunas II Energetica S/A 8.0 12.5 1/15/2027 BR BRL
Bishopsgate Asset Finance 4.8 66.9 8/14/2044 KY GBP
Bolivian Gov'tInt'l Bond 4.5 58.3 3/20/2028 BO USD
Bolivian Gov'tInt'l Bond 7.5 59.4 3/2/2030 BO USD
Bolivian Gov'tInt'l Bond 4.5 58.5 3/20/2028 BO USD
Bolivian Gov'tInt'l Bond 7.5 59.5 3/2/2030 BO USD
Bonos Para La Reconstruccion 5.0 63.6 10/31/2027 AR USD
Bonos Para La Reconstruccion 3.0 60.5 5/31/2026 AR USD
Bonos Para La Reconstruccion 5.0 51.9 10/31/2027 AR USD
Brazilian Gov't Int'l Bond 4.8 74.1 1/14/2050 BR USD
BRF SA 5.8 78.1 9/21/2050 BR USD
BRF SA 5.8 78.1 9/21/2050 BR USD
Caja de Compensacion 2.4 49.6 4/5/2025 CL CLP
Camposol SA 6.0 72.3 2/3/2027 PE USD
Camposol SA 6.0 72.6 2/3/2027 PE USD
CFLD Cayman Investment 2.5 3.4 1/31/2031 KY USD
CFLD Cayman Investment 2.5 3.4 1/31/2031 KY USD
CFLD Cayman Investment 2.5 2.9 1/31/2031 KY USD
CFLD Cayman Investment 2.5 3.8 1/31/2031 KY USD
CFLD Cayman Investment 2.5 2.2 1/31/2031 KY USD
CFLD Cayman Investment 2.5 3.5 1/31/2031 KY USD
CFLD Cayman Investment 2.5 2.9 1/31/2031 KY USD
CFLD Cayman Investment 2.5 3.5 1/31/2031 KY USD
CFLD Cayman Investment 2.5 2.2 1/31/2031 KY USD
Chile Gov'tInt'l Bond 3.5 72.7 1/25/2050 CL USD
Chile Gov'tInt'l Bond 3.1 73.6 5/7/2041 CL USD
Chile Gov'tInt'l Bond 3.1 62.8 1/22/2061 CL USD
Chile Gov'tInt'l Bond 3.5 72.3 4/15/2053 CL USD
Chile Gov'tInt'l Bond 1.3 67.4 1/29/2040 CL EUR
Chile Gov'tInt'l Bond 1.3 54.0 1/22/2051 CL EUR
Chile Gov'tInt'l Bond 3.3 62.9 9/21/2071 CL USD
Chile Gov'tInt'l Bond 1.3 74.4 7/26/2036 CL EUR
China Yuhua Education Corp 0.9 65.1 12/27/2024 KY HKD
CK HutchisonInt'l 19 II 3.4 74.4 9/6/2049 KY USD
CK HutchisonInt'l 19 II 3.4 74.4 9/6/2049 KY USD
CK HutchisonInt'l 20 3.4 74.1 5/8/2050 KY USD
CK HutchisonInt'l 20 3.4 74.1 5/8/2050 KY USD
Colombia Gov't Int'l Bond 4.1 61.2 5/15/2051 CO USD
Colombia Gov't Int'l Bond 3.9 57.2 2/15/2061 CO USD
Colombia Gov't Int'l Bond 5.2 72.4 5/15/2049 CO USD
Colombia Gov't Int'l Bond 4.1 66.7 2/22/2042 CO USD
Colombia Gov't Int'l Bond 7.3 71.1 10/26/2050 CO COP
Colombia Gov't Int'l Bond 6.3 73.3 7/9/2036 CO COP
Colombia Gov't Int'l Bond 7.3 71.1 10/26/2050 CO COP
Colombia Gov't Int'l Bond 5.0 71.6 6/15/2045 CO USD
Colombia Gov't Int'l Bond 6.3 73.3 7/9/2036 CO COP
Colombia Telecomunicaciones 5.0 67.5 7/17/2030 CO USD
Colombia Telecomunicaciones 5.0 67.5 7/17/2030 CO USD
Colombian TES 7.3 70.9 10/26/2050 CO COP
Colombian TES 6.3 73.1 7/9/2036 CO COP
Coopeucha 4.6 38.3 6/1/2029 CL CLP
CODELCO 3.7 67.4 1/30/2050 CL USD
CODELCO 3.2 61.0 1/15/2051 CL USD
CODELCO 3.7 67.3 1/30/2050 CL USD
CODELCO 3.2 61.0 1/15/2051 CL USD
CODELCO 3.6 74.7 7/22/2039 CL AUD
Earls Eight 0.1 64.5 12/20/2031 KY AUD
Earls Eight 1.7 72.4 6/20/2032 KY AUD
Ecopetrol SA 5.9 73.6 5/28/2045 CO USD
Ecopetrol SA 5.9 70.5 11/2/2051 CO USD
El Salvador Gov'tInt'l Bond 7.1 68.3 1/20/2050 SV USD
El Salvador Gov'tInt'l Bond 7.6 72.0 9/21/2034 SV USD
El Salvador Gov'tInt'l Bond 7.6 72.8 2/1/2041 SV USD
El Salvador Gov'tInt'l Bond 5.9 65.1 1/30/2025 SV USD
El Salvador Gov'tInt'l Bond 7.6 72.6 9/21/2034 SV USD
El Salvador Gov'tInt'l Bond 7.1 68.4 1/20/2050 SV USD
El Salvador Gov'tInt'l Bond 7.6 72.9 2/1/2041 SV USD
Embotelladora Andina SA 6.5 23.2 6/1/2026 CL CLP
EFE 3.8 65.7 9/14/2061 CL USD
EFE 3.1 59.8 8/18/2050 CL USD
EFE 3.1 59.8 8/18/2050 CL USD
EFE 3.8 65.8 9/14/2061 CL USD
EFE 6.5 11.1 1/1/2026 CL CLP
ETESA 5.1 71.5 5/2/2049 PA USD
ETESA 5.1 72.2 5/2/2049 PA USD
Metro SA 3.7 65.1 9/13/2061 CL USD
Metro SA 3.7 65.0 9/13/2061 CL USD
Metro SA 5.5 50.1 7/15/2027 CL CLP
Metro SA 5.0 63.8 5/11/2025 AR USD
ENAP 4.5 73.2 9/14/2047 CL USD
ENAP 4.5 73.2 9/14/2047 CL USD
ENA Master Trust 4.0 70.5 5/19/2048 PA USD
ENA Master Trust 4.0 70.9 5/19/2048 PA USD
Enel Generacion Chile SA 6.2 29.2 10/15/2028 CL CLP
Equatorial Energia 10.9 1.1 10/15/2029 BR BRL
Equatorial Energia 10.8 1.0 5/15/2028 BR BRL
Esval SA 3.5 13.1 2/15/2026 CL CLP
Farfetch 3.8 4.3 5/1/2027 KY USD
Fospar S/A 6.5 1.4 5/15/2026 BR BRL
GDM Argentina SA 2.5 0.0 9/8/2024 AR USD
GDS Holdings 4.5 67.7 1/31/2030 KY USD
Generacion Mediterranea SA 4.6 0.0 11/12/2024 AR ARS
General Shopping Finance 10.0 66.2 KY USD
General Shopping Finance 10.0 65.0 KY USD
Genneia SA 2.0 56.9 7/14/2028 AR USD
Greenland Hong Kong 10.2 13.4 KY USD
Guacolda Energia SA 4.6 70.5 4/30/2025 CL USD
Guacolda Energia SA 10.0 70.1 12/30/2030 CL USD
Guacolda Energia SA 4.6 71.8 4/30/2025 CL USD
Guacolda Energia SA 10.0 70.1 12/30/2030 CL USD
Hector A Bertone SA 1.9 0.0 4/7/2024 AR USD
Hilong Holding 9.8 68.7 11/18/2024 KY USD
Hilong Holding 9.8 69.7 11/18/2024 KY USD
Hilong Holding 9.8 69.4 11/18/2024 KY USD
Multiplo SA 3.3 59.5 BR USD
Itau Unibanco SA/Nassau 5.8 20.2 5/20/2027 BR BRL
Jamaica Gov't Bond 6.3 67.8 7/11/2048 JM JMD
Jamaica Gov't Bond 8.5 73.0 12/21/2061 JM JMD
Lani Finance 1.7 63.5 3/14/2049 KY EUR
Lani Finance 1.9 66.9 10/19/2048 KY EUR
Lani Finance 3.1 66.1 10/19/2048 KY AUD
Lani Finance 1.9 65.8 9/20/2048 KY EUR
Link Finance Cayman 2009 2.2 70.0 10/27/2038 KY HKD
LIPSA Srl 1.0 0.0 8/23/2024 AR USD
Logan Group Co 7.0 5.1 KY USD
Longfor Group Holdings 4.0 43.3 9/16/2029 KY USD
Longfor Group Holdings 3.4 56.1 4/13/2027 KY USD
Longfor Group Holdings 3.9 38.4 1/13/2032 KY USD
Longfor Group Holdings 4.5 53.1 1/16/2028 KY USD
Luminis III 2.3 41.8 9/22/2048 KY USD
Luminis III 2.4 55.3 9/22/2048 KY AUD
Luminis IV 3.2 70.4 1/22/2042 KY AUD
Luminis 2.3 54.8 9/22/2048 KY AUD
Lunar Funding I 1.7 8/11/2056 KY GBP
MTR Corp CI 2.8 73.3 9/6/2047 KY HKD
MTR Corp CI 3.0 73.1 3/11/2051 KY HKD
MTR Corp CI 3.0 75.4 4/26/2047 KY HKD
MTR Corp CI 3.2 73.7 2/5/2055 KY HKD
MTR Corp CI 3.0 73.1 3/11/2051 KY HKD
NIO Inc 4.6 73.1 10/15/2030 KY USD
Panama Gov'tInt'l Bond 4.5 63.1 4/1/2056 PA USD
Panama Gov'tInt'l Bond 2.3 70.2 9/29/2032 PA USD
Panama Gov'tInt'l Bond 3.9 55.8 7/23/2060 PA USD
Panama Gov'tInt'l Bond 4.5 64.9 4/16/2050 PA USD
Panama Gov'tInt'l Bond 4.5 62.0 1/19/2063 PA USD
Panama Gov'tInt'l Bond 4.5 66.6 5/15/2047 PA USD
Panama Gov'tInt'l Bond 4.3 62.6 4/29/2053 PA USD
Peruvian Gov'tInt'l Bond 3.6 71.8 3/10/2051 PE USD
Peruvian Gov'tInt'l Bond 2.8 57.3 12/1/2060 PE USD
Peruvian Gov'tInt'l Bond 3.2 57.3 7/28/2121 PE USD
Peruvian Gov'tInt'l Bond 3.6 65.7 1/15/2072 PE USD
Peruvian Gov'tInt'l Bond 3.3 74.3 3/11/2041 PE USD
Petroleos del Peru SA 5.6 68.3 6/19/2047 PE USD
Petroleos del Peru SA 5.6 68.3 6/19/2047 PE USD
Powerlong Real Estate 6.3 10.3 8/10/2024 KY USD
Provincia de Cordoba 7.1 39.6 10/27/2026 AR USD
Provincia de la Rioja 7.5 45.9 7/20/2032 AR USD
Provincia de la Rioja 4.5 51.8 1/20/2027 AR USD
Chaco Argentina 4.0 0.0 12/4/2026 AR USD
QNB Finance 13.5 63.1 10/6/2025 KY TRY
QNB Finance 11.5 71.7 1/30/2025 KY TRY
QNB Finance 2.9 74.2 9/16/2035 KY AUD
QNB Finance 2.9 72.9 12/4/2035 KY AUD
QNB Finance 3.0 75.4 2/14/2035 KY AUD
QNB Finance 3.4 72.0 10/21/2039 KY AUD
Radiance Holdings Group 7.8 49.6 3/20/2024 KY USD
Rio Alto Energias Renovaveis 7.0 29.1 7/15/2027 BR BRL
Santander Consumer Chile SA 2.9 72.7 11/27/2034 CL AUD
Seazen Group 6.0 75.2 8/12/2024 KY USD
Seazen Group 4.5 34.1 7/13/2025 KY USD
Shui On Development Holding 5.5 61.2 6/29/2026 KY USD
Shui On Development Holding 5.5 73.0 3/3/2025 KY USD
Silk Road Investments 2.9 66.8 1/23/2042 KY AUD
Skylark 1.8 59.0 4/4/2039 KY GBP
Autopista Central 5.3 37.2 12/15/2026 CL CLP
Autopista Central 5.3 50.6 12/15/2028 CL CLP
SQM 3.5 65.5 9/10/2051 CL USD
SQM 3.5 65.5 9/10/2051 CL USD
Southern Water Service 3.0 70.8 5/28/2037 KY GBP
SPE Saneamento RIO 1 7.2 10.8 1/15/2042 BR BRL
SPE Saneamento RIO 1 SA 6.9 10.5 1/15/2034 BR BRL
SPE Saneamento Rio 4 SA 7.2 10.2 1/15/2042 BR BRL
SPE Saneamento Rio 4 SA 6.9 10.2 1/15/2034 BR BRL
Spica 2.0 74.9 3/24/2033 KY AUD
Spirit Loyalty Cayman 8.0 72.2 9/20/2025 KY USD
Spirit Loyalty Cayman 8.0 73.0 9/20/2025 KY USD
Spirit Loyalty Cayman 8.0 70.3 9/20/2025 KY USD
Spirit Loyalty Cayman 8.0 72.5 9/20/2025 KY USD
Sylph 2.7 68.5 3/25/2036 KY USD
Sylph 3.1 74.7 9/25/2035 KY USD
Sylph 2.4 64.2 9/25/2036 KY USD
Sylph 2.9 74.5 6/24/2036 KY AUD
Telecom Argentina SA 1.0 74.0 3/9/2027 AR USD
Telecom Argentina SA 1.0 66.1 2/10/2028 AR USD
Telefonica Moviles Chile SA 3.5 74.4 11/18/2031 CL USD
Telefonica Moviles Chile SA 3.5 74.4 11/18/2031 CL USD
Tencent Holdings 3.2 67.9 6/3/2050 KY USD
Tencent Holdings 3.3 64.0 6/3/2060 KY USD
Tencent Holdings 3.9 73.9 4/22/2061 KY USD
Tencent Holdings 3.8 75.4 4/22/2051 KY USD
Tencent Holdings 3.2 67.6 6/3/2050 KY USD
Tencent Holdings 3.9 73.9 4/22/2061 KY USD
Tencent Holdings 3.3 64.1 6/3/2060 KY USD
Three Gorges Finance 3.2 71.6 10/16/2049 KY USD
Grupo Travessia 9.0 1.6 1/20/2032 BR BRL
Volcan Cia Minera SAA 4.4 62.2 2/11/2026 PE USD
Volcan Cia Minera SAA 4.4 62.0 2/11/2026 PE USD
VTR Comunicaciones SpA 5.1 61.6 1/15/2028 CL USD
VTR Comunicaciones SpA 4.4 60.8 4/15/2029 CL USD
VTR Comunicaciones SpA 5.1 61.9 1/15/2028 CL USD
VTR Comunicaciones SpA 4.4 60.6 4/15/2029 CL USD
YPF SA 7.0 72.6 12/15/2047 AR USD
YPF SA 1.0 66.8 4/25/2027 AR USD
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S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
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.
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contact Peter A. Chapman at 215-945-7000.
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