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

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

          Wednesday, June 19, 2024, Vol. 25, No. 123

                           Headlines



A R G E N T I N A

ARGENTINA: Inflation Slowed to 4.2% in May
ARGENTINA: Monthly Inflation Slows to Lowest Level Since 2022
ARGENTINA: Traders Cheer on as Milei Win Underpins Austerity Push


B E R M U D A

NABORS INDUSTRIES: All Proposals Approved at Annual Meeting


B R A Z I L

ALAGOAS: S&P Affirms 'BB-' ICR & Alters Outlook to Negative


C A Y M A N   I S L A N D S

XP INC: Fitch Affirms 'BB' LongTerm IDRs, Outlook Stable


C O S T A   R I C A

BANCO BAC: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable
BANCO DAVIVIENDA: Fitch Affirms BB+ LongTerm IDRs, Outlook Negative


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: World Bank to Support Sustainable Growth


J A M A I C A

JAMAICA: World Bank Maintains 2% Growth Outlook


P A N A M A

PROMERICA FINANCIAL: Fitch Affirms B+ LongTerm IDRs, Outlook Stable


P U E R T O   R I C O

TRADITION FRANCAISE: Plan Contemplates Two Scenarios


V E N E Z U E L A

VENEZUELA: Energy Crisis is Struggle Beyond Oil

                           - - - - -


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A R G E N T I N A
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ARGENTINA: Inflation Slowed to 4.2% in May
------------------------------------------
Buenos Aires Times reports that monthly inflation in Argentina
dropped below five percent last month for the first time in more
than two years, official data showed.

The INDEC national statistics bureau reported a rate of 4.2 percent
for May, the fifth consecutive monthly decline and the lowest since
January 2022 (3.9 percent), according to Buenos Aires Times.
       
Consumer prices had risen by 8.8 percent in April, meaning that
from one month to the next, inflation more than halved, the report
relays.
       
The news is a boost for President Javier Milei, who the previous
day was able to celebrate a slender Senate victory for his sweeping
'Ley de Bases' mega-reform bill and accompanying fiscal package,
the report notes.

Nevertheless, prices have increased by 71.9 percent in just the
first five months of the year, underlining the severity of the task
of bringing inflation under control, the report discloses.

Inflation over the last year totals 276.4 percent, the report
relays.

The divisions registering the highest increases last month were
communication (up 8.2 percent due to hikes in the costs of
telephone and Internet services), education (rising 7.6 percent)
and alcoholic beverages and tobacco (6.7 percent, factoring in
price rises for cigarettes), the report discloses.

Food and non-alcoholic beverages, which have consistently risen at
above average rates, rose 4.8 percent in May, the report says.

The smallest increases were seen in healthcare (0.7 percent) and
housing, water, electricity and fuels (2.5 percent), the report
notes.

Government officials had projected optimism ahead of the release of
INDEC's data, the report relays.  Earlier, Economy Minister Luis
Caputo had anticipated that "inflation in May will be below five
percent," the report notes.

In a statement, the Economy Ministry hailed the "deepening" of the
"ongoing disinflation process," the report notes

"Price dynamics were once again below the consensus of analysts
participating in the BCRA's Relevamiento de Expectativas de Mercado
(REM)" survey, said the portfolio headed by Caputo, the report
relays.

In December, the month budget-slashing President Javier Milei took
office, inflation leapt by 25.5 percent, provoked by his
devaluation of the peso by more than 50 percent, the report
discloses.

Milei has vowed to halt Argentina's economic decline and reduce the
budget deficit to zero, the report relays.

He has slashed public spending, cut the Cabinet in half, done away
with tens of thousands of state jobs, suspended new public works
contracts and ripped away fuel and transport subsidies, the report
notes.

In April, Milei hailed the country's first quarterly budget surplus
since 2008, the report recalls.

            Significant Fall in Consumption

The slowing of inflation has come at the cost of falling
consumption. Economic activity in April fell 8.8 percent
year-on-year, according to INDEC, the report relays.  In the first
quarter of 2024, activity slumped 5.3 percent from the previous
year, the report notes.

The decline has been felt especially at bars and restaurants, the
report discloses.  Local reports estimate that the gastronomy
sector has seen a decline of between 25 and 30 percent so far this
year, while data from the Confederación Argentina de la Mediana
Empresa (CAME) industry group has registered a sales drop of 22.1
percent so far this year, the report says.

Critics say Milei's few wins have come at the cost of the poor and
working classes, and were unlikely to last, the report relays.

Buenos Aires Times notes that Economist Hernan Letcher of the CEPA
economics think tank said the inflation drop was explained, in
large part, by a "significant fall in consumption."

"We consultants expect that the process of reducing the rate of
inflation will not continue in June," he added.

"The [REM] market expectation survey shows that a level in the
order of five percent will be maintained until the end of the
year," he said.

The International Monetary Fund expects Argentina's economy to
contract by 2.8 percent this year, after a 1.6-percent decline in
2023, the report recalls.

The government reported a 16-percent increase in real wages in the
private sector in April and a recovery of purchasing power that is
the "most significant since 2009," the report notes.

It is a relative figure, however, in a country where informal
employment accounted for more than 45 percent of the work force
even before the impact of Milei's austerity measures started
hitting home, the report relays.

Poverty now stands at 55.5 percent, according to data from the
Catholic University of Argentina's Social Debt Observatory, the
report notes.

Last month, Argentina introduced a 10,000-peso banknote, worth the
equivalent of about US$11 – five times the face value of the
previous biggest 2,000-peso bill, the report relays.

The inflation data came hours after a key victory for Milei in the
Senate, which approved a modified version of his economic
liberalization package, the report discloses.

Milei's bill, which makes provision for privatization of
state-owned companies and weakens labor protections, have raised
the ire of workers and leftists, who fought running battles with
police outside Congress, the report relays.

The draft legislation must still be given a final green light by
the lower house Chamber of Deputies, the report adds.

                      About Argentina

Argentina is a country located mostly in the southern half of South
America. Its capital is Buenos Aires. Javier Milei is the current
president of Argentina after winning the November 19, 2023 general
election. He succeeded Alberto Angel Fernandez in the position.

Argentina has the third largest economy in Latin America.  The
country's economy is an upper middle-income economy for fiscal year
2019, according to the World Bank. Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.

The IMF's executive board completed on August 23, 2023, the fifth
and six reviews of Argentina's 30-month Extended Fund Facility
(EFF), and approved a US$7.5-billion disbursement to Argentina as
part of the larger program, which refinances payments Argentina
owes the institution from a previous bailout that failed to
stabilize the economy in 2018. Argentina would receive another IMF
disbursement in November of about US$2.75 billion pending another
staff-level agreement and board approval.

S&P Global Ratings, on March 15, 2024, raised its local currency
sovereign credit ratings on Argentina to 'CCC/C' from 'SD/SD' and
its national scale rating to 'raB+' from 'SD'. S&P also raised its
long-term foreign currency sovereign credit rating to 'CCC' from
'CCC-' and affirmed its 'C' short-term foreign currency rating. The
outlook on the long-term ratings is stable. In addition, S&P
revised its transfer and convertibility assessment to 'CCC' from
'CCC-'.

S&P said the stable outlook on the long-term ratings balances the
risks posed by pronounced economic imbalances and policy
uncertainties with the favorable change in near-term debt service
obligations. S&P also expect no further debt exchanges that it
would likely consider to be distressed.

Fitch Ratings upgraded on June 13, 2023, Argentina's Long-Term
Foreign Currency (FC) Issuer Default Rating (IDR) to 'CC' from
'C'and affirmed the Long-Term Local Currency (LC) IDR at 'CCC-'.
Fitch typically does not assign Outlooks to sovereigns with a
rating of 'CCC+' or below.

The upgrade of the FC IDR reflects that Fitch no longer deems a
default-like process to have begun, as the authorities have not
signaled a clear intention to follow through with an intra-public
debt swap announced in March. The new 'CC' rating signals a default
event of some sort appears probable in the coming years, regardless
of the outcome of upcoming elections. The affirmation of the LC IDR
at 'CCC-' follows the peso debt swap in June that Fitch did not
deem to be a "distressed debt exchange" (DDE).

Moody's Investors Service, in September 2022, affirmed Argentina's
Ca foreign-currency and local-currency long-term issuer and senior
unsecured ratings.  The outlook remains stable.  The decision to
affirm the Ca ratings balances Argentina's limited market access,
weak governance, and history of recurrent debt restructurings with
recent efforts to marshal fiscal and monetary measures to start
addressing underlying macroeconomic imbalances in the context of
the IMF program that was approved in 2022, according to Moody's.

DBRS, Inc. confirmed Argentina's Long-Term Foreign Currency Issuer
Rating at CCC and downgraded its Long-Term Local Currency Issuer
Rating to CCC from CCC (high) on March 3, 2023.


ARGENTINA: Monthly Inflation Slows to Lowest Level Since 2022
-------------------------------------------------------------
Patrick Gillespie at Bloomberg News reports that monthly inflation
in Argentina slowed to its lowest level in May since early 2022,
capping the fifth straight cooler print under President Javier
Milei as market doubts linger that the trend can be sustained.

Consumer prices rose 4.2 percent last month, less than economists
estimates for five percent and the lowest level since January 2022.
From a year ago, inflation slowed to 276.4 percent, according to
government data published, according to Bloomberg News.

Communication costs and education led monthly price gains in May by
categories, Bloomberg News notes.

While far from a definitive victory, a slower pace of price
increases marks another positive development for Milei after the
majority of his economic reforms passed through the Senate in a
pivotal vote, Bloomberg News discloses.

Bloomberg News says that his government also renewed a portion of
its currency swap line with China, while the International Monetary
Fund's executive board is expected to approve the latest review of
the country's program sometime soon.  Milei will participate in the
Group of Seven summit in Italy, too, Bloomberg News relays. ​

While the Milei's administration is expected to trumpet the
positive results of its economic shock therapy program, private
economists see the current pace of monthly inflation as somewhat of
a floor in the short term, Bloomberg News discloses.  Although
inflation expectations have declined significantly this year,
analysts surveyed by Argentina's Central Bank in May don't expect
monthly price rises below five percent through September, Bloomberg
News says.  Even by November, monthly inflation is seen at 4.5
percent, Bloomberg News notes.

Milei has held off on removing a large portion of the subsidies
that keep utility and public transport costs artificially low,
Bloomberg News relays.  Cutting these subsidies, which have
surpassed US$10 billion of annual government spending in recent
years, are essential to Milei's commitment to a fiscal balance this
year, Bloomberg News discloses. However, once subsidies are
removed, prices will inevitably go up across the board because of
the cascading effect utilities and transport have on all other
categories, Bloomberg News relays.

The Argentine peso's parallel exchange rate is also under more
pressure lately, fuelling concern about some pass-through to
prices, Bloomberg News relates.  A stagnant inflation outlook for
the second half of the year comes against the backdrop of another
recession in Argentina: economists project gross domestic product
will contract 3.8 percent this year, Bloomberg News adds.

About Argentina

Argentina is a country located mostly in the southern half of South
America. Its capital is Buenos Aires. Javier Milei is the current
president of Argentina after winning the November 19, 2023 general
election. He succeeded Alberto Angel Fernandez in the position.

Argentina has the third largest economy in Latin America.  The
country's economy is an upper middle-income economy for fiscal year
2019, according to the World Bank. Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.

The IMF's executive board completed on August 23, 2023, the fifth
and six reviews of Argentina's 30-month Extended Fund Facility
(EFF), and approved a US$7.5-billion disbursement to Argentina as
part of the larger program, which refinances payments Argentina
owes the institution from a previous bailout that failed to
stabilize the economy in 2018. Argentina would receive another IMF
disbursement in November of about US$2.75 billion pending another
staff-level agreement and board approval.

S&P Global Ratings, on March 15, 2024, raised its local currency
sovereign credit ratings on Argentina to 'CCC/C' from 'SD/SD' and
its national scale rating to 'raB+' from 'SD'. S&P also raised its
long-term foreign currency sovereign credit rating to 'CCC' from
'CCC-' and affirmed its 'C' short-term foreign currency rating. The
outlook on the long-term ratings is stable. In addition, S&P
revised its transfer and convertibility assessment to 'CCC' from
'CCC-'.

S&P said the stable outlook on the long-term ratings balances the
risks posed by pronounced economic imbalances and policy
uncertainties with the favorable change in near-term debt service
obligations. S&P also expect no further debt exchanges that it
would likely consider to be distressed.

Fitch Ratings upgraded on June 13, 2023, Argentina's Long-Term
Foreign Currency (FC) Issuer Default Rating (IDR) to 'CC' from
'C'and affirmed the Long-Term Local Currency (LC) IDR at 'CCC-'.
Fitch typically does not assign Outlooks to sovereigns with a
rating of 'CCC+' or below.

The upgrade of the FC IDR reflects that Fitch no longer deems a
default-like process to have begun, as the authorities have not
signaled a clear intention to follow through with an intra-public
debt swap announced in March. The new 'CC' rating signals a default
event of some sort appears probable in the coming years, regardless
of the outcome of upcoming elections. The affirmation of the LC IDR
at 'CCC-' follows the peso debt swap in June that Fitch did not
deem to be a "distressed debt exchange" (DDE).

Moody's Investors Service, in September 2022, affirmed Argentina's
Ca foreign-currency and local-currency long-term issuer and senior
unsecured ratings.  The outlook remains stable.  The decision to
affirm the Ca ratings balances Argentina's limited market access,
weak governance, and history of recurrent debt restructurings with
recent efforts to marshal fiscal and monetary measures to start
addressing underlying macroeconomic imbalances in the context of
the IMF program that was approved in 2022, according to Moody's.

DBRS, Inc. confirmed Argentina's Long-Term Foreign Currency Issuer
Rating at CCC and downgraded its Long-Term Local Currency Issuer
Rating to CCC from CCC (high) on March 3, 2023.


ARGENTINA: Traders Cheer on as Milei Win Underpins Austerity Push
-----------------------------------------------------------------
Buenos Aires Times reports that investors welcomed congressional
approval of President Javier Milei's 'omnibus' bill, saying it
showed he can push through contentious reforms many see as key to
getting Argentina's economy back on track.

The president won just enough support to advance his landmark
austerity package in the Senate, following weeks of horse-trading
and pushback from opposition lawmakers, according to Buenos Aires
Times.

The vote confirmed many investors' base case scenario, sending
sovereign bonds higher, the report notes.  US-listed shares of
Argentine companies and an exchange-traded fund that tracks the
country's stocks also climbed, the report relays.

Still, some see additional gains as limited since much of the
reform was already priced in, and the Senate's rejection of a
provision that would expand income tax triggered concerns over
Milei's ability to eliminate fiscal deficits, the report relays.  A
cobweb of capital controls and a weaker peso in parallel markets
may also hinder foreign investment, they said, the report notes.

The report discloses that Graham Stock, senior EM sovereign
strategist at RBC BlueBay Asset Management:

   -- The bill's approval is a "very important milestone," as it
      moves the "government a step closer to having some
      legislative underpinning for its reform program rather than
      relying solely on executive actions"

   -- Move has "positive implications" for bond prices as it puts
      the fiscal adjustment on a more sustainable footing

   -- "It is very important that the Lower House reinstates the   
      personal income tax, both as a source of revenue for the
      provinces and as a signal that Argentina is returning to
      more normal public policy settings"

The report relays that Kate Moreton, analyst at Columbia
Threadneedle, said:

   -- "It proves that Milei has some governability and that his  
      reform story has legs, but I expect us to kind of top out
      where we are" in terms of the levels at which bonds are
      trading, given how much reforms were already priced in

   -- "My base case is that we will still need a restructuring at
       some point"

   -- "This is kicking the can down the road further, but I think
      there's still a lot of of risk here"

The report relays that Citigroup Inc strategists led by Donato
Guarino:

   -- The bill's approval marks a "bittersweet win" for Milei's
      administration as it has been in the works for the last six
      months, but has been "constantly diluted"

   -- Remains overweight on Argentina's bonds and reiterates call
      to go long on notes due 2030

The report discloses that Stuart Sclater-Booth, portfolio manager
for emerging-markets debt at Stone Harbor Investment Partners:

   -- While watered down, the bill demonstrates that Milei and
      team can in fact pass legislation, which is "important for
      credibility with investors and with likely negotiations with

      the IMF"

   -- "The passage of the bill was a necessary, but not
      necessarily sufficient condition for the Argentina recovery.

      There is still progress to be made on normalising FX,
      improving domestic credit and generating growth"

   -- While the reforms facilitate some foreign investment, the
      lack of a normalised FX regime still presents some obstacles

      for "meaningful FDI"

The report says that David Austerweil, deputy portfolio manager for
emerging-markets at Van Eck Associates Corp:

   -- The bill's "passage was largely expected and due to the many

      compromises needed to gain its acceptance, it will not
      generate material fiscal savings"

   -- "We currently have no position in Argentine sovereign bonds.

      With the likely passage of the Omnibus bill, the expected
      good news is likely behind us"

   -- The pace of the country's reserve accumulation has slowed
      and "even turned slightly.

                      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.




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B E R M U D A
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NABORS INDUSTRIES: All Proposals Approved at Annual Meeting
-----------------------------------------------------------
Nabors Industries Ltd. held its Annual General Meeting of
Shareholders during which Shareholders:

     A. Elected Tanya S. Beder, Anthony R. Chase, James R. Crane,
John P. Kotts, Michael C. Linn, Anthony G. Petrello, and John
Yearwood as Directors.

     B. Approved the appointment of PricewaterhouseCoopers LLP as
the Company's Independent Auditor and authorized the Audit
Committee to set the Independent Auditor's Remuneration.

     C. Approved Compensation of Named Executive Officers.

     D. Approved Amendment No. 3 to the Company's Amended and
Restated 2016 Stock Plan.

                           About Nabors

Bermuda-based Nabors Industries Ltd. (NYSE: NBR) owns and operates
land-based drilling rig fleets and provides offshore platform rigs
in the United States and several international markets.  Nabors
also provides directional drilling services, tubular services,
performance software, and innovative technologies for its own rig
fleet and those of third parties.

Nabors Industries reported a net loss of $11.8 million for the year
ended December 31, 2023, a net loss of $307.22 million in 2022, a
net loss $543.69 million in 2021, a net loss of $762.85 million in
2020, a net loss of $680.51 million in 2019, a net loss of $612.73
million in 2018, and a net loss of $540.63 million in 2017.
As of March 31, 2024, the Company had $4.64 billion in total
assets, $3.37 billion in total liabilities, and $522.82 million in
total stockholders' equity.

                            *    *    *

In September 2023, Egan-Jones Ratings Company upgraded the foreign
currency and local currency senior unsecured ratings on debt issued
by Nabors Industries, Inc. to CCC+ from CCC-.

In March 2024, S&P Global Ratings revised its outlook to stable
from positive and affirmed its 'B-' issuer credit rating on Nabors
Industries Ltd. At the same time, S&P affirmed its 'B-' issue-level
rating on the company's senior priority guaranteed notes with
recovery rating of '3' and 'CCC' issue-level rating on the
company's priority guaranteed notes with recovery rating of '6'.
The stable outlook reflects S&P's expectation for the company's
operating performance, industry fundamentals, near-term debt
maturity profile, and credit metrics to remain appropriate for the
'B-' issuer credit rating. The outlook revision reflects S&P's
expectation of reduced free cash flow generation and lower than
anticipated debt reduction.



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ALAGOAS: S&P Affirms 'BB-' ICR & Alters Outlook to Negative
-----------------------------------------------------------
On June 14, 2024, S&P Global Ratings revised its rating outlook on
the State of Alagoas to negative from stable. At the same time, S&P
affirmed the 'BB-' global scale and 'brAA+' national scale issuer
credit ratings.

Outlook

The negative outlook reflects the risk that a continuation of high
spending levels will lead to structurally lower cash levels or a
marked increase in the debt burden. Four years of high capex
spending, along with a court decision that compelled the State of
Alagoas to transfer a large share of resources in 2024,
significantly reduced available free cash.

Downside scenario

S&P said, "We could lower the ratings in the next 12 months if a
continued deterioration of Alagoas' fiscal performance impedes the
recovery of its cash reserves, or if high capex translates into a
more pronounced increase in its debt burden (with interest payments
surpassing 5% of operating revenue). This would ultimately signal
weaker financial management, in our view."

Upside scenario

S&P could revise the outlook back to stable if the state recovers
its liquidity buffer through measures to improve its fiscal results
and balance its capex ambitions--all while interest payments remain
below 5% of operating revenue.

Rationale

The negative outlook reflects a one-in-three probability of a
downgrade because of persistent pressures on Alagoas' liquidity
position. The ratings continue to be anchored by the state's
adequate financial management, which S&P expects will implement
enough measures to contain liquidity slippage and a buildup in
debt. Constraining the ratings are its weak budgetary performance,
the already high level of debt that it has, and an economic
structure that is weaker than those of its peers.

A recovery of Alagoas' liquidity buffer will depend on its fiscal
execution

The State of Alagoas' recent fiscal deficits stem from its
record-high capex over the past four years--18% of total spending,
on average, and mostly using available cash.

In addition, a court decision in early 2024 forced the state to
share, with its municipalities, resources from its water and sewage
concession for the Maceio metropolitan area, performed in 2020. The
state has transferred 900 million Brazilian reals (R$) in 2024,
reducing its total free cash to roughly R$650 million. As a result,
cash plus operating cash flow should cover about 85% of debt
service for the next 12 months.

Moreover, S&P considers Alagoas' access to external liquidity to be
limited--as is the case for most Brazilian states--reducing its
capacity to quickly tap debt in case of intra-annual cash
mismatches.

Alagoas' one-off transfers to municipalities will affect its 2024
fiscal results, but our base-case scenario still assumes an average
annual operating surplus of 9% in 2024-2026. This assumption
incorporates the full-year effects of the 2023 state-level tax
(ICMS) basic rate increase to 19% from 17%, as well as the expected
burden from Alagoas' pension system.

S&P said, "We expect Alagoas to slow down its capex execution so
that its liquidity can gradually recover. We believe its capex will
fall to approximately R$1.5 billion starting in 2025, and to the
historical level of 9% of total spending. As a result, we think
Alagoas will post surpluses after capex starting in 2025.

"Part of the capex will still be financed by new borrowing, and we
expect Alagoas' debt to stabilize at roughly 95% of operating
revenue by 2026--a level that we still consider high, but also a
level that compares favorably with where it was in 2015 (150%). A
gradual correction on Brazil's reference rate (the Selic rate) will
help Alagoas keep its interest burden below 5% of operating
revenue. The state's main creditor is the federal government (at
67% of total debt). Alagoas also has loans from multilateral
lending institutions and from domestic banks, which the federal
government guarantees. Thirteen percent of Alagoas' debt is in
foreign currency.

"Management will, in our view, maintain its solid policies amid a
weaker economy and the constraints of the institutional framework
Our base-case scenario assumes continuity in Alagoas' prudent
management practices, with the objective of duly managing
interrelated budgetary execution, liquidity, and debt burden
trajectories to a consolidation path. The state's ruling party
continues to have broad support in the state legislature for
passing reforms aimed at such a goal. This has been pivotal for
passing key pieces of legislation, such as legislation revising the
spending structure as well as for efforts to raise local tax
revenue. Alagoas has prioritized improving its finances,
transparency, and accountability, which we consider a rating
strength.

"At the same time, the state's weaker socioeconomic conditions
weigh on its creditworthiness. Its estimated GDP per capita of
US$5,700 in 2024 is roughly half of the estimated 2024 GDP per
capita for Brazil. We forecast that economic growth in Alagoas will
keep pace with economic growth nationally, with real GDP expanding
annually by 2%, on average, in 2024-2026. Alagoas' main economic
activities are public administration, tourism, and agriculture
(mainly the sugarcane industry, which is the second-largest
employer in the state, after the public sector).

"We assess Brazilian local and regional governments' institutional
framework as volatile and unbalanced, which constrains our ratings
on the State of Alagoas. In our opinion, the rigidities of Brazil's
intergovernmental system continue to prevent local and regional
governments from structurally balancing their finances.
Nonetheless, we believe the system continues to have a certain
degree of predictability and transparency, with enhanced oversight
over local and regional governments' finances and their adherence
to fiscal discipline."

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the methodology
applicable. At the onset of the committee, the chair confirmed that
the information provided to the Rating Committee by the primary
analyst had been distributed in a timely manner and was sufficient
for Committee members to make an informed decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

The committee's assessment of the key rating factors is reflected
in the Ratings Score Snapshot above.

The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision. The
views and the decision of the rating committee are summarized in
the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action."

  Ratings List

  RATINGS AFFIRMED; CREDITWATCH/OUTLOOK ACTION  
                                  TO                FROM

  ALAGOAS (STATE OF)

   Issuer Credit Rating     BB-/Negative/--     BB-/Stable/--

  Brazil National Scale     brAA+/Negative/--   brAA+/Stable/--




===========================
C A Y M A N   I S L A N D S
===========================

XP INC: Fitch Affirms 'BB' LongTerm IDRs, Outlook Stable
--------------------------------------------------------
Fitch Ratings has affirmed XP Inc.'s (XP) Long-Term Local and
Foreign Currency Issuer Default Ratings (IDRs) at 'BB'. The Rating
Outlook is Stable. Fitch has also affirmed Banco XP SA's National
Long- and Short-Term Ratings at 'AAA(bra)'/'F1+(bra)',
respectively. The Rating Outlook for the long-term Rating is
Stable.

KEY RATING DRIVERS

Ratings Driven by Standalone Credit Profile: XP's 'BB' Long-Term
Local and Foreign Currency IDRs are driven by its Standalone Credit
Profile (SCP), which considers the company's strong franchise and
business model, coupled with a robust financial profile.

Strong Business Profile; Solid Execution: XP has a solid business
model, with a strong retail brokerage franchise. Additionally, its
investment platform has evolved into a full financial solution
encompassing complementary products for both retail and corporate
clients such as insurance, banking and retirement plans. XP's solid
execution reflects its ability to generate sustained growth despite
domestic challenges.

XP reported total operating income of USD2.15 billion in the last
four-year average between 2020-2023, commensurate with the assigned
'bb' score for its business profile. The score Outlook revision to
Positive, reflecting Fitch's expectation that XP's ongoing growth
strategy for its core and complementary business will potentially
increase its revenue generation and aid diversification.

Adequate Risk Profile: XP's risk profile reflects the likelihood of
operational, cyber and reputational risks, although these have been
well-managed by a sophisticated risk management framework. XP's
growth has outpaced peers, particularly in retail lending and
insurance, but is in line with the company's strategic planning and
market opportunities. Fitch also considers XP's high volume of
private securities, although the entity is constantly revolving
those assets, which reduces relevant credit risks.

Asset Quality Remains Strong: XP's credit risk stems from its
lending assets and the securities portfolio held, which encompass
most of the group's assets. Although XP reported a slight increase
in delinquency metrics in 1Q24, impaired loans rose to 0.9% from
0.8% at YE 2023, more than 85% of XP's lending portfolio is secured
by client's assets in custody by the group. Fitch expects that
delinquency to remain low. For the same period, the loan loss
reserve coverage ratio was a strong 1.3x from 1.4x at YE 2023. XP's
non-loan exposures, notably trading securities, losses have been
low in this portfolio.

Resilient Profitability: XP has consistently demonstrated robust
profit margins, driven by the sustained expansion of its main
brokerage services and asset management, as well as the
introduction of new business sectors. The firm has seen a
significant rebound in corporate fees. XP's core ratio of operating
profit to average equity has remained strong at 21.7% as of March
2024. This figure is comparable to the performance in previous
years, albeit slightly lower than the four-year average of 25.1%.
Although Fitch anticipates the domestic operating environment could
pose growth-related challenges, particularly within the brokerage
services and the growth of assets under custody.

XP's profitability is expected to remain resilient and gradually
more diversified. This expectation is bolstered by the expansion of
complementary business units that are less variable, such as
insurance and banking divisions, coupled with the continued
operational efficiency ratios. Fitch revised the outlook for XP's
earnings and profitability score to Positive from Stable.

Higher Leverage but Mitigated by Capital Generation: Growth in
banking activities — deposits and lending products — has
resulted in an increase, although at a slower pace, in XP's
adjusted tangible leverage ratio, defined by Fitch as tangible
assets excluding securities borrowed and reverse repurchase
agreements, divided by tangible equity. This ratio increased to
9.6x at March 2024 from 9.3x at YE 2023 and 7.2x in 2022, but still
commensurate with its ratings.

Fitch believes XP's leverage metrics are likely to continue
increasing, potentially reaching the upper range of Fitch's
leverage benchmark of 12x in the rating horizon, as a result of
lending and trading portfolios growth. However, XP is likely to
sustain a strong internal capital generation. This underpins the
revision of the capitalization and leverage score outlook to
Negative.

Growing Funding Franchise, Strong Liquidity: Fitch views XP's
liquidity and funding profile as strong. Due to the expansion of
its bank-like activities, XP has reduced its dependency on
wholesale funding lines over the past year. Its Customer funding
base, considering letras and structured notes, grew by 38% yoy,
representing 89% of XP's total debt as of March 2024. Complementary
funding lines are comprised of bonds, debentures and financial
borrowings.

Compared to other larger domestic peers, Fitch considers XP's
funding profile less diversified, with a relative short track
record. Liquid assets, comprised by repos, government securities
and other liquid assets cover a large part of the company's
short-term liabilities, with a strong liquid assets to short-term
funding ratio of 105% in March 2024, compared with 110% at YE
2023.

Banco XP

Banco XP's National Ratings are based on Fitch's view that the
company's operation is fully integrated with its parent in terms of
management, systems and strategy. Fitch believes this creates a
highly correlated credit profile between the companies. Banco XP is
one of the most relevant subsidiaries in terms of assets,
accounting for more than 46% of the consolidated numbers as of
December 2023. According to Fitch's methodology, in such cases the
agency assigns group ratings to both parent and subsidiary.

RATING SENSITIVITIES

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

XP Inc. IDRs; Banco XP National Ratings

- Rating downside would be primarily contingent on a downgrade of
the Brazilian sovereign rating;

XP Inc. IDRs

- Ratings could be downgraded under a scenario where XP reports
operational incidents that could result in severe damage to the
company's image, leading to a substantial outflow of client's
assets;

- XP's ratings could also suffer if the entity reports relevant
losses regarding its own securities portfolio (including loans)
and/or strong volatility in its profitability metrics;

- An unexpected increase in the company's leverage through the
rating horizon, tangible leverage ratio above 12x and/or a
significant decrease in the group's regulatory metrics in Brazil -
CET 1 ratio below 11%.

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

XP Inc. IDRs,

- Rating upside is limited in the short term. However, on the
long-term XP's ratings could benefit in the case the entity is able
to achieve its growth strategic objectives, reporting a
substantially higher level of total operating income;

- An upgrade would also require XP to sustain its current
outstanding profitability and asset quality metrics, in addition to
a stability on its leverage ratios;

- An upgrade of the Brazilian sovereign rating would also be
necessary for an upgrade of XP's ratings, as Fitch considers it
unlikely that XP's ratings could be above the sovereign given the
significant holding of sovereign securities.

Banco XP National Ratings

- The National Scale Ratings of Banco XP are at the highest level
on the national scale; therefore, they cannot be upgraded.

DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS

XP's unsecured senior notes rating is equalized with the Long-Term
IDR, as the probability of default is the same as that of the
entity. The notes will also rank pari passu with other senior
unsecured obligations.

DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES

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

- XP's senior unsecured debt ratings are sensitive to a change in
its IDR.

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

- XP's senior unsecured debt ratings are sensitive to a change in
its IDR.

ADJUSTMENTS

The Asset Quality score has been assigned below the implied score
due to the following adjustment reason(s): Non-Loan Exposure.

The Earnings & Profitability score has been assigned below the
implied score due to the following adjustment reason(s): Revenue
Diversification.

ESG CONSIDERATIONS

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

   Entity/Debt            Rating              Prior
   -----------            ------              -----
Banco XP S.A     Natl LT   AAA(bra)Affirmed   AAA(bra)
                 Natl ST   F1+(bra)Affirmed   F1+(bra)

XP Inc.          LT IDR    BB      Affirmed   BB
                 ST IDR    B       Affirmed   B
                 LC LT IDR BB      Affirmed   BB
                 LC ST IDR B       Affirmed   B

   senior
   unsecured     LT        BB      Affirmed   BB




===================
C O S T A   R I C A
===================

BANCO BAC: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable
-----------------------------------------------------------
Fitch Ratings has affirmed Banco BAC San Jose, S.A. 's Long-Term
Foreign Currency Issuer Default Rating (IDR) at 'BB+' and Local
Currency IDR at 'BB+'. The Rating Outlook for the Long-Term IDRs
remains Stable. Fitch has also affirmed BAC San Jose's Short-Term
Foreign and Local Currency IDRs at 'B', Viability Rating (VR) at
'bb' and Shareholder Support Rating (SSR) at 'bb+'. Fitch has also
affirmed BAC San Jose's Long-Term National Rating at
'AAA(cri)'/Stable Outlook and Short-Term National Rating at
'F1+(cri)' both for the bank and its issuances local programs.

KEY RATING DRIVERS

Shareholder Support Drives IDRs: BAC San Jose's IDRs, SSR and
National Scale ratings are driven by its SSR, which reflect Fitch's
view of a high propensity and adequate ability of support from its
parent, BAC International Bank, Inc. (BIB; BB+/Stable) if needed.
The National Rating reflects BIB's relative creditworthiness
relative to other rated entities in Costa Rica. The BAC San Jose's
international and national long-term ratings, as well as the Stable
Outlook on the bank's ratings, mirrors that of its shareholder.

Core Subsidiary; High Integration: Fitch's assessment of the
parent's ability to provide support weighs heavily on BAC San
Jose's key and integral role in BIB's regional diversification
strategy, as well as the significant management and operational
integration between entities of the group. The Costa Rican
subsidiary provides core products in a strategically important
jurisdiction.

Reputational Influence: BIB's subsidiaries in Central America
operate under the same brand. Therefore, Fitch's support assessment
reflects its view that the event of an unexpected default of BAC
San Jose or any of its rated subsidiaries would constitute a
relevant reputational risk for BIB and could affect its franchise
significantly.

Strong, Diversified Franchise: BAC San Jose's VR reflects its solid
domestic franchise, supported by a solid business model in an
improving economic environment. The bank's solid retail and
corporate franchise has resulted in good pricing power in key
segments and access to a large and stable deposit base, which has
lead to more revenue diversification compared to peers. BAC San
Jose ranks third in terms of total assets, and is a market leader
in certain business segment. BAC San Jose is recognized as the
largest domestic provider of U.S. dollar liquidity.

Improving Asset Quality: BAC San Jose's asset-quality metrics
compare well with other local and regional peers. At end march
2024, the decreasing trend for loans over 90 days past due reached
a low 1.3% (2023: 1.3%, 2022: 1.7%), partly benefiting from
write-offs, which were on an upward trend, and maintained a robust
impaired loans coverage above 3.4x. The relevant share of the
retail segment enables BAC San Jose to maintain one of the lowest
concentrations by debtor in the sector, below 1x FCC. Fitch expects
the bank's core metric to remain sound, supported by a resilient
economy and labor market, as well as prudent risk controls.

Consistent Profitability: BAC San Jose has demonstrated a good
ability to generate steady results through the cycles. Thanks to a
four-year average of operating profit to risk-weighted assets (RWA)
that has remained above 2%, the bank has been able to fully cover
regulatory countercyclical estimates, ahead of peers. While this
impacted 2023 results, which fell to 1.6%, the effect is one-off,
and by 1Q24, the bank had recovered to the 3.7% level. The
diversified revenue mix supports Fitch's expectation that the core
metrics will remain consistent within its category.

Satisfactory Capital Buffers: BAC San Jose's capitalization is
adequate for its business model and market risks levels. Fitch
expects the bank to maintain its Fitch Core Capital (FCC) to RWA at
approximately 12%, supported by stronger earnings generation. BAC
San Jose's FCC to RWA ratio was 13.1% (2023: 12.3%) in a FX
fluctuation context, with satisfactory capital buffers above
regulatory requirements of a 13.8% ratio (2023: 13.0%), despite
dividend payments. Fitch also considers in its assessment the high
reserve coverage and ordinary support from BIB, if needed.

Stable Funding and Liquidity: BAC San Jose's funding benefits from
strong deposit franchise, with a stable and granular deposit base,
which covers 93.5% of the bank's total funding. The diversified
financing profile also benefits from good access to local and
international institutions. The bank's gross loans to deposit ratio
was a reasonable 80.1% as of 1Q24 (2024: 81.3%). Liquidity is
adequate for upcoming maturities and is reflected in its sound
regulatory ratios, liquid assets provide coverage of about 37.5% of
total deposits.

RATING SENSITIVITIES

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

- Negative changes in BAC San Jose's IDRs and SSR would result from
a negative more than one notch rating action on Costa Rica's
sovereign and country ceiling ratings;

- Any relevant reduction in BIB's propensity of support may trigger
a downgrade of BAC San Jose's IDRs, SSR and National Ratings.
Additionally, a downgrade of BIB's IDRs could lead to a similar
action on BAC San Jose's ratings;

- BAC San Jose's VR could be downgraded in the case of a material
deterioration of the bank's financial performance resulting from a
material asset-quality deterioration that significantly erodes its
profitability and drops its FCC to RWA consistently below 9%.

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

- BAC San Jose's IDRs and SSRs could be upgraded one notch
following a similar action on BIB's IDRs.

- The VR could be upgraded if the bank consistently maintains a
very strong financial profile, while improving Fitch's OE
assessment;

- There is no room for positive actions, as BAC San Jose's National
Ratings are at the top of the scale.

OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS

Senior Unsecured Debt: BAC San Jose's National Scale Ratings for
its outstanding senior unsecured obligations are at the same level
of the issuer's National Ratings. Fitch believes the likelihood of
default of the obligations is the same as for BAC San Jose, given
the debt does not have specific guarantees.

OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES

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

- BAC San Jose's senior unsecured debt would mirror any potential
downgrade on the bank's National Ratings.

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

- There is no room for positive action given that the National
Ratings are at the top of the national scale.

VR ADJUSTMENTS

The Operating Environment score of 'bb' has been assigned below the
implied score of 'bbb' due to the following adjustment reason(s):
Sovereign Rating (negative).

SUMMARY OF FINANCIAL ADJUSTMENTS

Pre-paid expenses and other deferred assets were re classified as
intangibles and deducted from total equity, to reflect its low
absorption capacity.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

BAC San Jose's IDRs are driven by the potential support it could
receive from its parent, BAC International Bank, Inc, if required.

ESG CONSIDERATIONS

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

   Entity/Debt                    Rating           Prior
   -----------                    ------           -----
Banco BAC San
Jose, S.A.     LT IDR              BB+ Affirmed    BB+
               ST IDR              B   Affirmed    B
               LC LT IDR           BB+ Affirmed    BB+
               LC ST IDR           B   Affirmed    B
               Natl LT         AAA(cri)Affirmed    AAA(cri)
               Natl ST         F1+(cri)Affirmed    F1+(cri)
               Viability           bb  Affirmed    bb
               Shareholder Support bb+ Affirmed    bb+

   senior
   unsecured   Natl LT         AAA(cri)Affirmed    AAA(cri)

   senior
   unsecured   Natl ST         F1+(cri)Affirmed    F1+(cri)


BANCO DAVIVIENDA: Fitch Affirms BB+ LongTerm IDRs, Outlook Negative
-------------------------------------------------------------------
Fitch Ratings has affirmed Banco Davivienda (Costa Rica), S.A.'s
(Davivienda CR) Long-Term (LT) Foreign Currency (FC) Issuer Default
Ratings (IDR) and LT Local Currency (LC) IDR at 'BB+'. Fitch has
also affirmed the FC and LC Short-Term (ST) IDRs at 'B',
Shareholder Support Rating (SSR) at 'bb+' and Viability Rating (VR)
at 'bb-'. Fitch has additionally affirmed the bank's National LT
and ST Ratings at 'AAA(cri)' and 'F1+(cri)', respectively, as well
as the ratings of the local debt issue programs.

The Rating Outlook for the LT FC and LC IDRs and LT National Rating
is Negative.

KEY RATING DRIVERS

Shareholder Support-Driven Ratings: Davivienda CR's IDRs, SSR and
national ratings are based on Fitch's assessment of the ability and
propensity of its parent, Banco Davivienda S.A. (Davivienda;
BB+/Negative), to provide support, if required. This assessment
results in Davivienda CR's LT FC and LC IDRs and Outlook aligned to
that of its parent IDRs at 'BB+'/Negative. Davivienda's relative
credit strength with respect to the Costa Rican sovereign
(BB/Stable), and other rated issuers in the country, enable
Davivienda CR's LT National Rating to be placed at the top of the
national scale with Negative Outlook.

High Reputational Risk: In the evaluation of propensity to support,
Fitch considers with high importance the huge reputational risk
that the Davivienda group could face in the event of a possible
default of its subsidiary in Costa Rica, with whom it shares the
same brand.

Strategic Role in Group: In Fitch's support analysis, Davivienda
CR's key role in the group's geographic diversification strategy,
operating in a market considered strategic and with which it also
exhibits operating synergies, carries moderate weight.

Consolidated Business Profile: Davivienda CR's VR of 'bb-', equal
to its implied VR, captures the agency's assessment of its business
profile, characterized by its consistent and well-diversified
business model between corporate and personal banking, as well as
the moderate size of its franchise, as the second-largest private
bank in Costa Rica, and which has resulted in a four-year average
operating income by USD148 million.

Risk Profile Sensitive to Exchange Risk: Fitch evaluates the risk
profile at the same level of the operating environment (OE),
influenced by the higher than local bank peers to sensitivity to
exchange risk, given that Davivienda CR is characterized by the
high percentage of its balance in U.S. which results in a balance
sheet size and profits that fluctuate due to changes in the
exchange rate. As of March 2024, Davivienda CR's USD denominated
assets represented 53% of total, mostly comprised by loans.

Good Asset Quality: Fitch evaluation of the loan quality at the
same level of the Costa Rican OE, mirrors the good levels of
non-performing loans (NPLs) of 1.6% as of March 2024 (2020-2023:
1.8%), low net charge-off levels around 1% of gross loans, an
adequate reserve coverage for NPL of 165.7%, additional to a good
level of collaterals. Fitch estimates loan quality ratios to remain
at similar levels over the rating horizon.

Profitability Still Affected by Exchange Rate Volatility: Since
2023, profitability metrics has been affected by the exchange rate
volatility, with an operating profit to risk-weighted assets (RWA)
ratio of -0.4% as of March 2024 and 0.6% as of December 2023
against an average of 1.6% during 2020-2022. However, when
excluding the effect of losses derived for the local currency
appreciation, the ratio results in similar levels respect its
historical records. The agency expects the exchange rate will
stabilize, which would lead to a recovery in Davivienda CR's
profitability.

Appropriate Capitalization: Davivienda CR's capitalization ratios
has improved in recent years, this despite the lower operating
income given the entity's conservative strategies to protect its
capital levels against exchange rate volatility, which Fitch
considers prudent. As of march 2024, the Fitch Core Capital to RWA
was 14.0% (2020-2023: 12.0%).

Stable and Diversified Funding Profile: Davivienda CR's funding is
based on customer deposits, which represented around 73% of total
funding as of March 2024. This has resulted in a loan-to-deposit
ratio by 107.4% similar to its historical levels (2023: 112.3%),
complemented with issuances in the local market and credit lines
with financial institutions.

RATING SENSITIVITIES

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

- A downgrade in Davivienda's IDRs would trigger the same action on
Davivienda CR's IDRs, SSR and national ratings;

- Negative changes in Davivienda CR's IDRs and SSR would mirror a
more than one notch negative movement in Costa Rica's sovereign
ratings and Country Ceiling;

- Any perception by Fitch of the parent's significantly reduced
propensity to support the subsidiary may trigger a downgrade of
IDRs, SSR and national ratings;

- A downgrade of Davivienda CR's VR could result from a material
deterioration of the banks' financial performance that drops its
FCC/RWA ratio consistently below 9% alongside incurring in
operating losses consistently.

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

- The Negative Outlook on Davivienda CR's IDRs indicate positive
rating actions are unlikely in the foreseeable future. The Negative
Outlook on Davivienda CR's IDRs and National Ratings would be
revised to Stable mirroring the same action on the Outlook of
Davivienda's IDR;

- Davivienda CR's VR could be upgraded if the bank continues with
consistent financial performance metrics, reflected with an
operating profit to RWA ratio consistently above 2.0% and a FCC to
RWA ratio above 13.5%.

- National ratings are at the top of the scale. There is no room to
upgrade.

OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS

Senior Unsecured Debt: Senior unsecured debt is rated at the same
level as Davivienda CR's national ratings, as Fitch considers the
probability of default on its debt to be the same as that of the
bank.

OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES

Factors that could, individually or collectively, lead to negative
rating action/downgrade

- Senior unsecured debt national ratings would be downgraded in the
case of negative rating actions on the bank's national ratings.

Factors that could, individually or collectively, lead to positive
rating action/upgrade

- Debt issue programs national ratings are at the top of the scale.
There is no room to upgrade.

VR ADJUSTMENTS

The OE Score of 'bb' has been assigned below the 'bbb' category
implied score due to the following adjustment reason: Sovereign
rating (negative).

SUMMARY OF FINANCIAL ADJUSTMENTS

Prepaid expenses were reclassified as intangibles, and deducted
from equity, to reflect their lower loss absorption capacity.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

Shareholder Support-Driven Ratings: Davivienda CR's ratings are
based upon Fitch's assessment of the potential support that it
would receive from its Colombian shareholder Banco Davivienda S.A.
(Davivienda, BB+/Negative), if needed.

ESG CONSIDERATIONS

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

   Entity/Debt                         Rating          Prior
   -----------                         ------          -----
Banco Davivienda
(Costa Rica) S.A.   LT IDR              BB+ Affirmed   BB+
                    ST IDR              B   Affirmed   B
                    LC LT IDR           BB+ Affirmed   BB+
                    LC ST IDR           B   Affirmed   B
                    Natl LT         AAA(cri)Affirmed   AAA(cri)
                    Natl ST         F1+(cri)Affirmed   F1+(cri)
                    Viability           bb- Affirmed   bb-
                    Shareholder Support bb+ Affirmed   bb+

   senior
   unsecured        Natl LT         AAA(cri)Affirmed   AAA(cri)




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

DOMINICAN REPUBLIC: World Bank to Support Sustainable Growth
------------------------------------------------------------
Dominican Today reports that the World Bank has approved a new
project to assist the Dominican Republic in its efforts to promote
key institutional reforms for climate resilience, reduced water,
soil, and air pollution, as well as enhanced natural resource
protection.  The US$400 million project will support the
government's efforts to strengthen institutional and financing
capacity for environmental protection, with important positive
effects on public health and the livelihoods of communities
involved in tourism and fishing activities, according to Dominican
Today.

"The Dominican Republic, due to extreme natural hazards associated
with climate change, annually loses an equivalent of 0.4% of its
Gross Domestic Product.  The World Bank's support has been and
continues to be crucial in achieving our goals of building climate
resilience in agriculture, ensuring food security, improving
landscape and natural resource management, and addressing the
challenges posed by sargassum," stated Pavel Isa Contreras,
Minister of Economy, Planning, and Development, the report notes.

The Dominican Republic faces significant challenges linked to the
loss and degradation of natural resources, caused by extreme
weather events, changing water cycles, and environmental pollution,
the report relays.  These challenges impact the key drivers of
economic growth and employment: tourism, fishing, and farming, the
report discloses.  Without addressing these issues, the country
could lose as much as 16 percent of the Gross Domestic Product it
expects to earn by 2050, according to the latest World Bank Group's
Country Climate and Development Report for the Dominican Republic,
the report says.

The Sustainable Development Policy Loan project aims to enhance the
government's institutional and financial capacity for natural
resource protection, climate change adaptation, and mitigation, the
report relays.  It will also support marine conservation, reduce
air and marine pollution, and strengthen river and water body
protection, the report discloses.  Additionally, the project will
help regulate waste management from electrical and electronic
equipment and address environmental challenges such as phasing out
hydrofluorocarbon substances, thereby lowering greenhouse gas
emissions, the report says.  Furthermore, it will help tackle the
sargassum seaweed issue and establish the regulatory framework for
issuing green, social, and sustainable bonds, the report notes.

These efforts will contribute to climate resilience and sustainable
growth, benefiting vulnerable populations, including the poor, the
report relays.  Alexandria Valerio, World Bank Representative,
emphasized, "By addressing pollution, promoting green and social
finance, and strengthening the country's institutional capacity to
enhance its resilience to climate change, the project will
significantly enable the Dominican Republic to continue growing
economically while also preserving its natural assets," the report
adds.

                 About Dominican Republic

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

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

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

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

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

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

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

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




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

JAMAICA: World Bank Maintains 2% Growth Outlook
-----------------------------------------------
RJR News reports that the World Bank has maintained its economic
growth outlook for Jamaica this year.

In its latest Global Economic Prospects report, the agency has kept
the projected gross domestic product (GDP) growth at 2 per cent,
according to RJR News.

This was the same level as the forecast in January, the report
notes.

The World Bank has, however, increased its expectation of Jamaica's
growth in 2025, the report relays.

The Global Economic Prospects see local GDP growth of 1.6 per cent
next year, the report notes.

That's a 0.2 per cent upward adjustment, compared to the January
outlook, the report discloses.

The World Bank says subdued private sector consumption will affect
growth, the report adds.

                       About Jamaica

Jamaica is an island country situated in the Caribbean Sea.
Jamaica is an upper-middle income country with an economy heavily
dependent on tourism.  Other major sectors of the Jamaican economy
include agriculture, mining, manufacturing, petroleum refining,
financial and insurance services.

In October 2023, Moody's upgraded the Government of Jamaica's
long-term issuer and senior unsecured ratings to B1 from B2, and
senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has
been changed to positive from stable.  The upgrade of Jamaica's
rating to B1 reflects the government's sustained commitment to
fiscal consolidation and debt reduction.  The positive outlook
reflects Moody's assessment that a continuation of the favorable
fiscal trajectory will further increase Jamaica's credit
resilience.

S&P Global Ratings raised on September 13, 2023, its long-term
foreign and local currency sovereign credit ratings on Jamaica to
'BB-' from 'B+', and affirmed its short-term foreign and local
currency sovereign credit ratings at 'B'.  The stable outlook
reflects S&P's expectation that the government will remain
committed to prudent fiscal policies and reducing debt, as well as
supportive economic policies including a flexible exchange rate
regime and effective monetary policy.  

In March 2022, Fitch Ratings affirmed Jamaica's Long-Term Foreign
Currency Issuer Default Rating (IDR) at 'B+'. The Rating Outlook is
Stable.




===========
P A N A M A
===========

PROMERICA FINANCIAL: Fitch Affirms B+ LongTerm IDRs, Outlook Stable
-------------------------------------------------------------------
Fitch Ratings has affirmed Promerica Financial Corporation's (PFC)
Long-Term Issuer Default Ratings (IDR) at 'B+' and Short-Term IDR
at 'B'. Fitch has also affirmed PFC's Viability Rating (VR) at 'b+'
and senior secured debt rating at 'B+'/'RR4'. The Rating Outlook of
the Long-Term IDR is Stable.

KEY RATING DRIVERS

Ratings Driven by Standalone Creditworthiness: PFC's IDR is driven
by its VR, supported by the bank holding company's consolidated
risk profile. PFC's VR reflects the performance of nine banking
entities under PFC's umbrella across different Latin America
countries.

Diversified Operating Environment: Fitch assesses the holding
company's OE by computing a weighted average that considers the
total assets in each jurisdiction. The company has presence in nine
countries with the biggest exposure by assets in Ecuador (33.3%),
followed by Guatemala (16.6%), Panama (12.6%), Nicaragua (11.5%),
and Costa Rica (10.9%).

Fitch applies a one notch uplift due to the benefits of
geographical diversification and the stronger regulatory framework
present in Panama, where PFC's is legally domicile. This results in
an OE score of 'b+' with a Stable Outlook. The joint venture
transaction that resulted in the consolidation of a new subsidiary
in Nicaragua, has no material impact in the calculation of the
blended OE.

Strong Business Profile: PFC operates as a banking network in the
Central America and is the second-largest financial conglomerate
owned by local shareholders in Central America. PFC's business
profile is diversified and consistent, which has resulted in
sustained stable earnings through economic cycles. PFC has a strong
market position across the countries where it operates, and owns
the third-largest private sector bank in Ecuador. It is also the
largest credit card lender in Guatemala and the largest bank in
Nicaragua.

In Nicaragua, the company has reached a joint venture agreement
with Grupo ASSA, S.A., owner of Banco de Finanzas, S.A., combining
both Nicaraguan banks under one single holding company, where PFC
will keep the majority ownership of the new consolidated entity.
Fitch believes this transaction has no material impact on PFC's
business profile. Additionally, in the long term this represents an
opportunity to enhance PFC's already strong competitive position in
the country. During 2023, PFC's total operating income was USD1.43
billion (average 2020-2023: USD1.2 billion), growing 15% yoy from
FY 2022.

Good Asset Quality Remains: PFC asset quality is strong, which has
stabilized over the last year, in line with the trends in the most
relevant jurisdictions where it operates. As of March 2024, the
Stage 3 ratio was 1.9% (four-year average of 2.6%) , and the 90
days past-due loans was 1.7%, while the reserves coverage is good
at 155% of Stage 3 loans. Concentrations are moderate, with the 20
largest debtors representing 0.8x of total equity, mostly located
in Ecuador and Guatemala. The agency expects the Stage 3 ratio to
remain close to the 2.0% as small deterioration is expected in the
nine jurisdictions.

Moderate Profitability: Historically, profitability has been
moderate, and despite signs of improvement, this trend was mostly
paused due to the performance of its largest subsidiary in Ecuador.
As of March 2024, the core metric of operating profit to RWA was
0.5 (December 23: 1.4%) affected by non-recurrent costs in Ecuador.
PFC's profitability could improve during the rest of 2024, if
supported by expected stable asset quality in most of the countries
where it operates and by its geographic diversification. This
should offset pressures from the most sensitive OE where the bank
operates. Fitch expects the core metric to remain closer to the YE
2023 figure.

Adequate Capital: PFC's CET1 ratio was 9.1% in March 2024, lower
than in the past two years (2023: 9.2%; 2022: 9.8%). This decline
was driven by loan growth and a slowdown in internal capital
generation in 2023 and in line with the expected improvement in
profitability, capital ratios could improve by YE 2024, but is not
expected to reach 2022 levels. Dividends at the holding level are
low, below 10% of net income in 2023, and the upstream from
subsidiaries remained healthy, considering the challenges of the
largest subsidiary. But this should be mitigated by performance in
Guatemala and Nicaragua.

Stable Funding Structure: PFC's funding structure has been stable,
with 81.7% of funds originating from core deposits. PFC's loans to
deposits ratio has increased to 95.6% from the upper 80s, due to
loan growth and some natural reduction in liquidity. Concentrations
are low, with the top 20 depositors accounting for 7.8% of total
deposits. The group's financial flexibility is good and benefits
from a business model focused on traditional banking services,
recurrent access to interbank funding and global capital markets.

Liquidity will remain adequate in forecast years, despite expected
loan growth. As of March 2024, liquid assets (loans and advances to
banks, cash and investment-grade securities) represented 27.9% of
total customer deposits.

Government Support Rating (GSR)

The 'ns' GSRs reflect that, however possible, external support
cannot be relied upon, given the banking system's large size
relative to the economy and weak support stance due to Panama's
lack of a lender of last resort.

RATING SENSITIVITIES

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

- The VR and IDR could be negatively affected by a sustained
decline in the CET1 ratio below 8%, and, or a reduction in
subsidiary dividends to upstream to PFC that pressures its debt
service capacity.

- The ratings could also be pressured by a materially weaker
assessment of PFC's multijurisdictional OE, especially within its
largest markets, although this does not currently reflect Fitch's
baseline scenario.

GSR

- Because the GSR is at the lowest level in its scale, there is no
downside potential for the GSR.

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

- Ratings could be upgraded by an improvement in PFC's
multijurisdictional operating environment.

GSR

- As Panama is a dollarized country with no lender of last resort,
a GSR upgrade is considered unlikely.

OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS

The ratings assigned to PFC's senior notes of USD225 million are in
line with its Long-Term IDR, as the likelihood of default on the
notes is the same as that of PFC. Despite the notes being senior
secured and comprising unsubordinated obligations, Fitch believes
the collateral mechanism would not have a significant impact on
recovery rates. In accordance with Fitch's rating criteria,
recovery prospects for the notes are average and reflected in their
Recovery Rating of 'RR4'.

OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES

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

- PFC's senior debt ratings would be downgraded if PFC's Long-Term
IDR is downgraded.

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

- PFC's senior debt ratings would be upgraded if PFC's Long-Term
IDR is upgraded.

VR ADJUSTMENTS

The OE score has been assigned below the implied score due to the
following adjustment reason: International operations (negative).

The Business Profile score has been assigned above the implied
score due to the following adjustments: Business Model (positive)
and Market Position (positive).

ESG CONSIDERATIONS

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

   Entity/Debt                    Rating       Recovery   Prior
   -----------                    ------       --------   -----
Promerica
Financial
Corporation      LT IDR             B+ Affirmed           B+
                 ST IDR             B  Affirmed           B
                 Viability          b+ Affirmed           b+
                 Government Support ns Affirmed           ns

   senior
   secured       LT                 B+ Affirmed   RR4     B+




=====================
P U E R T O   R I C O
=====================

TRADITION FRANCAISE: Plan Contemplates Two Scenarios
----------------------------------------------------
Tradition Francaise Inc. d/b/a La Boulangerie filed with the U.S.
Bankruptcy Court for the Dstrict of Puerto Rico a Small Business
Plan of Reorganization under Subchapter V dated May 30, 2024.

The Debtor, who is also known as the Boulangerie, operates a French
cuisine restaurant since 1998, and is located on Taft Street in San
Juan, P.R.

The Debtor had to seek relief from the Bankruptcy Court to protect
its business and the assets of the corporation, in an emergency
fashion, from a labor law dispute which resulted on the entry of a
garnishment order against the business, which if granted, it would
have caused an immediate insolvency to the detriment of 18 family
members who are employed by the Debtor. The judgment is on appeal
and the amount subject to such judgment is in the amount of $1.4
million.

The Debtor, with the assistance of its Financial Advisor, has
prepared the Cash Flow Projections, showing the feasibility of the
Plan and that the Debtor will have the projected disposable income
to meet the Plan payments.

Based on the projections, the Debtor has concluded that the Plan is
feasible and that he will have enough funds over the life of the
Plan to make the required payments.

The Debtor's Plan provides for the payment of creditors with income
generated from Debtor's business operations.

Due to the contingent nature of the claims arising from the state
court judgment entered against the Debtor and which is pending
before the Puerto Rico Court of Appeals, the Plan proposes two
different scenarios for treatment for each class of general
unsecured creditors.

Class 1 consists of the allowed unsecured claims for vendors of
Debtor's business as scheduled in the bankruptcy petition or as per
the claim's registry.

     * Scenario A: In the event that the Debtor prevails in its
appeal before the Puerto Rico Court of Appeals, and the Debtor is
relieved from any liability in case SJ2019CV10058. Each claim
holder under this class will receive 100% of their claim, plus
interest. The Plan proposes a monthly cash dividend of $661.40 for
60 months beginning from the effective date and the sum of these
payments is $39.685.00.

     * Scenario B: In the event that Debtor does not prevail in its
appeal before the Puerto Rico Court of Appeal, or any further
appellate procedure and the Debtor is liable for the judgment
entered in case SJ2019CV10058. Each claim holder under this class
will receive pro-rata distributions, as per the allowed amounts.
The Plan proposes a monthly cash dividend of $31.85 for 60 months
beginning from the effective date and the sum of these payments is
$1,910.00. Based on the current allowed amounts, each claimholder
in this class will receive approximately 5.01% of the allowed
amounts.

Class 2 consists of the unsecured claims arising from legal
proceeding SJ2019CV10058 which were scheduled as disputed,
contingent and unliquidated. Claimants for this class filed Proof
of Claims 5,6,7, & 8.

     * Scenario A: in the event that Debtor prevails in its appeal
before the Puerto Rico Court of Appeal, and the Debtor is relieved
from any liability in case SJ2019CV10058. Each claim holder under
this class will not receive any distributions.

     * Scenario B: In the event that Debtor does not prevail in its
appeal before the Puerto Rico Court of Appeal, or any further
appellate procedure and the Debtor is liable for the judgment
entered in case SJ2019CV10058. Each claim holder under this class
will receive pro-rata distributions, as per the allowed amounts.
The Plan proposes a monthly cash dividend of $1,168.15 for 60
months beginning from the effective date and the sum of these
payments is $70,090.00. Based on the current allowed amounts, each
claimholder in this class will receive approximately 5.01% of the
allowed amounts.

Class 3 consists of the Debtor's insiders and equity security
holders. The Debtor's shareholder Fernando Perez will not receive
any distribution under the Plan but will retain its ownership
interest over the corporation.

The Debtor will use the income generated from the Tradition
Francaise Inc. business to fund the Plan and implement the
provisions included.

A full-text copy of the Plan of Reorganization dated May 30, 2024
is available at https://urlcurt.com/u?l=nNsTHh from
PacerMonitor.com at no charge.

Counsel to the Debtor:

      Javier Vilarino, Esq.
      Vilarino & Associates, LLC
      P.O. Box 9022515
      San Juan, PR 00902-2515
      Telephone: (787) 565-9894
      Email: jvilarino@vilarinolaw.com

                 About Tradition Francaise Inc.

Tradition Francaise Inc. d/b/a LA Boulangerie operates a French
cuisine restaurant since 1998, and is located on Taft Street in San
Juan, P.R.

The Debtor filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. D.P.R. Case No. 24-00841) on March
1, 2024. The petition was signed by Fernando Perez as president. At
the time of filing, the Debtor estimated $100,000 to $500,000 in
assets and $1 million to $10 million in liabilities.

Javier Vilarino, Esq. at Vilarino & Associates LLC represents the
Debtor as counsel.




=================
V E N E Z U E L A
=================

VENEZUELA: Energy Crisis is Struggle Beyond Oil
-----------------------------------------------
Juan Martinez at Rio Times Online reports that in the 2010s,
Venezuela aimed for decarbonization, cutting carbon emissions from
198 million tons in 2013 to 62 million in 2020.

This reduction stemmed not from proactive policies but from a drop
in oil production due to U.S. sanctions and mismanagement,
according to Rio Times Online .

The US targeted PDVSA, Venezuela's state oil company, crippling its
ability to export crude and acquire production supplies, the report
notes.

As Venezuela's oil output plummeted from 2.32 million barrels daily
in 2013 to just 786,000 in 2023, so did its emissions, the report
relays.

Yet, the country's reliance on oil revenue remained, frustrating
efforts to enact climate protection laws and diversify energy
sources, the report discloses.

Amidst this economic turmoil, Mérida, a city known for its scenic
vistas, suffered frequent power outages due to neglected
infrastructure and rampant corruption, the report says.

The city's residents, like many in Venezuela, turned to
fossil-fueled generators, contradicting the nation's apparent
carbon cutback, the report notes.

The industrial sector echoed this dependency, with over 90% of
businesses using generators to bypass the unstable grid, the report
relays.

Despite hydropower's dominance, Venezuela's reliance on
thermoelectric power rose, increasing its share from 25% to 34%
between 2001 and 2010.

Meanwhile, renewable alternatives like wind and solar remained
negligible, the report relays.  Venezuela's energy policy continued
to focus on fossil fuels, the report discloses.

     Venezuela's Energy Crisis: A Struggle Beyond Oil

PDVSA sought new partnerships to boost dwindling oil production,
with no visible plans for decarbonization or investment in clean
energy, the report notes.

This stance was highlighted by a 2023 report showing PDVSA and a
few others lagged in renewable energy commitments, the report
relays.

Despite potential legal frameworks like the renewable energy bill,
Venezuela's legislative progress on energy transition stalled, the
report discloses.

The country missed opportunities to tap international green
financing, crucial for recovering from economic strife, the report
says.

This energy paradox illustrates Venezuela's broader challenges: a
reliance on an outdated oil economy, inadequate infrastructure, and
unexecuted environmental reforms, 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.



                           *********


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

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

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

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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of the same firm for the term of the initial subscription or
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                  * * * End of Transmission * * *