/raid1/www/Hosts/bankrupt/TCRLA_Public/250106.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, January 6, 2025, Vol. 26, No. 4
Headlines
B R A Z I L
ANDRADE GUTIERREZ: Fitch Lowers Long-Term IDR to 'C'
C A Y M A N I S L A N D S
SHANDONG ENERGY: Fitch Puts 'BB+' Rating to New USD Sr. Unsec Bonds
J A M A I C A
JAMAICA: 2024 a Bad Year For Coffee, Industry Official Says
JAMAICA: BOJ to Auction $42BB Certificate of Deposit on Jan. 7
P E R U
COMPANIA DE MINAS: S&P Assigns 'BB-' LT ICR, Outlook Stable
T R I N I D A D A N D T O B A G O
TRINIDAD & TOBAGO: Central Bank Holds Repo Rate at 3.5%
TRINIDAD & TOBAGO: Central Bank Says Inflation "Very Low"
X X X X X X X X
LATAM: Jamaica and Others Benefit From FAO Financial Support
[*] BOND PRICING: For the Week from Dec. 30, 2024 to Jan. 3, 2025
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B R A Z I L
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ANDRADE GUTIERREZ: Fitch Lowers Long-Term IDR to 'C'
----------------------------------------------------
Fitch Ratings has downgraded Andrade Gutierrez Engenharia S.A.'s
(AGE) Long-Term Foreign and Local Currency Issuer Default Ratings
(IDRs) to 'C' from 'CC' and Long-Term National Scale Rating to
'C(bra)' from 'CC(bra)'. Fitch has also downgraded Andrade
Gutierrez International S.A.'s (AGI) senior secured notes due 2029,
fully and irrevocably guaranteed by AGE, to 'C' with a Recovery
Rating of 'RR4' from 'CC'/'RR4'. The rating of the senior secured
notes due 2040 were affirmed at 'C'/'RR6'.
AGE's downgrade to 'C' results from entering the cure period after
missing an interest payment on Dec. 30, 2024 for its 2029 senior
secured notes. The cure period will expire on Jan. 27, 2025. AGE
initiated discussions with a financial advisor to an ad hoc group
representing the majority of the aggregate principal amount of the
2029 and 2040 notes for more comprehensive renegotiation. In
Fitch's view, this indicates that a default-like process has
begun.
Key Rating Drivers
Missed Coupon Payment: On Dec. 30th, 2024, AGE missed the USD19
million (BRL118 million) semi-annual interest payment of its USD413
million 9.00%, senior secured bond due December 2029, issued by
Andrade Gutierrez International S.A. (AGI) and guaranteed by AGE.
The company announced it will prioritize its liquidity to execute
the backlog and has chosen to engage in discussions with an ad hoc
group of bondholders for a more comprehensive renegotiation. If the
coupon payment is not made within the grace period, Fitch will
downgrade the ratings to 'RD'.
Weak Liquidity: AGE has an estimated BRL458 million in interests to
be serviced in 2025, of which BRL354 million (USD57 million)
relates to the 2029 coupon payment, including the missed coupon. In
September 2024, cash position was BRL472 million and short-term
debt was BRL523 million.
Backlog Recovery: Fitch recognizes the substantial backlog
improvements in 2024. However, AGE's ability to convert these
contracts in cash flow from operations (CFO) in a profitable and
timely manner remains to be tested. AGE closed September 2024 with
a backlog of approximately BRL17 billion, which favorably compares
to 2023's BRL11 billion. During the first nine months of 2024,
EBITDA was negative BRL87 million.
Derivation Summary
AGE's 'C' Long-Term IDR reflects the entrance of a 30-day grace
period to cure to coupon payments of AGI's 2029 notes, which in
Fitch's view indicates that a default-like process has begun.
Key Assumptions
- Backlog of BRL17 billion in 2024 and 2025;
- Average conversion ratios of backlog into revenues of six years
in 2024 and three years in 2025;
- No dividend distribution in the foreseeable future.
Recovery Analysis
Key Recovery Rating Assumptions
The recovery analysis assumes AGE would be reorganized as a going
concern (GC) in bankruptcy rather than liquidated. Fitch assumes a
10% administrative claim;
- AGE's going concern EBITDA is BRL300 million, reflecting
approximately 50% discount to Fitch's 2025 projections;
- Fitch considers no gains from the potential collection of
past-due receivables and legal claims, as they would distort
recurring EBITDA;
- A 5x enterprise value multiple is used to calculate a
post-reorganization valuation, in line with the industry's
historical multiples;
- The approach considers the 2040 notes subordinated to the 2029.
Liquidation Value Approach
Fitch excluded this method because Brazilian bankruptcy law tends
to favor the maintenance of a business to preserve direct and
indirect jobs. Moreover, in extreme cases in which liquidation has
been necessary, asset recovery has been very difficult for
creditors.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Failure to pay coupon within the grace period would result in a
downgrade to RD.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Payment of the coupon within the grace period.
Liquidity and Debt Structure
AGE's liquidity is weak and insufficient to cover interest
payments. As of September 30, 2024, AGE had cash and marketable
securities of BRL472 million and total debt of BRL3.9 billion.
Total debt mainly consists of AGI's USD413 million bond due 2029
and USD63 million bond due 2040 (68% of total debt), debentures
with sister-company Andrade Gutierrez Participacoes S.A. (AGPar)
due to the sale of CCR S.A. (17%), working capital lines (4%),
sister-company CONSAG Engenharia S.A.'s debt (10%), and permanent
asset loans and others (1%).
Issuer Profile
Brazilian-based AGE is one of the largest contractors of the
country and also operates in Latin America, Africa and Europe. AGE
had a backlog of BRL17 billion in Sept. 2024, considering
affiliates CONSAG's and Inzag's projects.
Summary of Financial Adjustments
Fitch uses Andrade Gutierrez Engenharia pro forma financials, which
also includes AGI's debt service and CONSAG's and Inzag's
statements, co-guarantors of the bond.
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
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
----------- ------ -------- -----
Andrade Gutierrez
Engenharia S.A. LT IDR C Downgrade CC
LC LT IDR C Downgrade CC
Natl LT C(bra)Downgrade CC(bra)
Andrade Gutierrez
International S.A.
senior secured LT C Affirmed RR6 C
senior secured LT C Downgrade RR4 CC
===========================
C A Y M A N I S L A N D S
===========================
SHANDONG ENERGY: Fitch Puts 'BB+' Rating to New USD Sr. Unsec Bonds
-------------------------------------------------------------------
Fitch Ratings has assigned Shandong Energy Group Co., Ltd.'s
(BB+/Stable) proposed US-dollar senior unsecured bonds a rating of
'BB+'.
The proposed bonds will be issued by Shandong Energy's 100%
indirectly owned subsidiary, Yankuang Group (Cayman) Limited, and
will be unconditionally and irrevocably guaranteed by Shandong
Energy. Proceeds will be used to repay Shandong Energy's existing
debt. The proposed bonds are rated at the same level as Shandong
Energy's senior unsecured debt, as they will rank equally with its
present and future unsecured and unsubordinated obligations.
Shandong Energy's IDR is notched up from its assessment of the
group's 'b+' Standalone Credit Profile (SCP), based on a bottom-up
approach, in line with its Government-Related Entities Rating
Criteria. The Stable Outlook reflects its expectation that Shandong
Energy will remain a market leader and that the government is
likely to continue supporting the group.
Key Rating Drivers
State Decision-Making, Oversight - 'Strong': Fitch assesses the
government's decision-making and oversight over Shandong Energy as
'Strong'. It is fully government owned; 70% by the Shandong
State-owned Assets Supervision and Administration Commission
(SASAC), 10% by Shandong Caixin Asset Management Co. Ltd. and 20%
by Shandong Guohui Investment Holding Group Co., Ltd.
(BBB+/Stable). The entity is the result of a state-initiated
merger. Shandong SASAC appoints the company's management team and
supervises its operating, investing and financing activities.
Precedents of Support - 'Not Strong Enough': The Shandong
provincial government has provided tangible support to Shandong
Energy, including injected assets, land and regular subsidies.
However, the support has not been sufficient to boost the company's
standalone financial position to a stronger level.
Incentive to Support - 'Not Strong Enough': Fitch evaluates
Shandong Energy's preservation of government policy role as 'Not
Strong Enough'. Most of Shandong's coal demand is met by supply
from other provinces and more than half of its coal production is
outside the province. Hence, Fitch does not expect a default by
Shandong Energy to pose a risk to the province's coal supply.
Shandong Energy is tasked with optimising the energy source mix in
Shandong by investing in renewable power, but the scale of its
power business remains insignificant compared with its coal mining
business.
Contagion Risk - 'Strong': Shandong Energy is Shandong's largest
provincial state-owned enterprise (SOE) in terms of revenue scale
and the second largest by asset size. Fitch considers it a
"back-bone" provincial SOE and believe a default would damage
investor sentiment in the capital market and disrupt the ability of
other local government-related entities to raise funds in the
capital market.
Normalising Coal Segment Margin: Fitch expects the coal segment
margin to average at around 30% in 2024-2027, down from over 40% in
2021-2023, due to normalising coal prices, although this will be
partially offset by efficient cost control. The average selling
price (ASP) of coal fell to CNY624/tonne (t) in 1H24, from CNY754/t
in 2023. Fitch expects the ASP to drop below CNY600/t by end-2024
and then further decline by high single digits in 2025 and 2026.
Continued Diversification: Shandong Energy has been diversifying
into green energy and chemical products. It plans to install six
gigawatts of green energy capacity by 2025. Fitch expects the
company to continue its efforts in renewable power to help with the
province's energy transition and reduce its energy-transition risks
in the long term. Shandong Energy has also expanded its exposure to
the chemicals industry, with an investment in its large 46.1%-owned
Yulong refinery and chemical compound, and acquisition of Zibo
Qixiang Tengda Chemical Co., Ltd., a listed chemicals producer.
SCP Constrained by Leverage: Shandong Energy's SCP is supported by
its large operating scale, moderate cost position and strong
funding access, but has medium-term constraints of sustained high
leverage and negative free cash flow (FCF). Fitch forecasts EBITDA
net leverage to rebound to 8x-9x in 2024-2027, modestly above the
7.1x in 2023, as Fitch expects negative FCF in the medium-term as
coal prices normalise and amid high capex. Fitch expects EBITDA
interest coverage to stay above 2.5x, given the group's low funding
costs arising from its SOE status.
Derivation Summary
Shandong Energy's rating incorporates a three-notch uplift from its
SCP under its Government-Related Entities Rating Criteria.
Key Assumptions
- Annual revenue to decrease by low single digits over 2024-2027 as
the coal ASP trends down, to be partially offset by higher revenue
from the chemical segment.
- Self-mined coal gross profit margin to average around 40% in
2024-2027 on a lower coal ASP, supported by lower production
costs.
- Self-mined coal sales volume of over 210 million t in 2024,
increasing marginally in 2025-2027, due to a ramp-up in asset
utilisation.
- Capex averaging around 4.5% of revenue per year during
2024-2027.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- EBITDA interest coverage below 1.5x
- Significant deterioration in funding capability
- Weaker likelihood of support from the Shandong government
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- EBITDA net leverage sustained below 6.5x
- Stronger likelihood of support from the Shandong government
Liquidity and Debt Structure
Shandong Energy had sufficient liquidity for debt servicing at
September 2024, with readily available cash of CNY115 billion,
compared with debt maturing within one year of around CNY140
billion. In addition, it had total undrawn bank credit facilities
of CNY537 billion. Fitch expects Shandong Energy to continue to
benefit from strong access to domestic funding due to its large SOE
status.
Issuer Profile
Shandong Energy was created by the 2021 merger of Yankuang Group
(renamed to Shandong Energy) and the previous Shandong Energy. The
new entity is among the three largest coal producers in China, with
274 million t in sales of self-mined coal in 2023. Coal mining
accounted for 72% of the group's reported gross profit in 2023.
Other major business segments include trading, coal chemicals,
power generation, manufacturing and new energy and materials.
Date of Relevant Committee
06 December 2024
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
Shandong Energy has an ESG Relevance Score of '4' for GHG Emissions
& Air Quality, due to its revenue concentration in thermal coal.
Coal faces the risk of declining demand in the medium term, because
of its high carbon footprint. 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
----------- ------
Yankuang Group
(Cayman) Limited
senior unsecured LT BB+ New Rating
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J A M A I C A
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JAMAICA: 2024 a Bad Year For Coffee, Industry Official Says
-----------------------------------------------------------
RJR News reports that Managing Director of the Mavis Bank Coffee
Factory Norman Grant said 2024 has not been a good year for the
coffee industry.
Production of both High Mountain and Blue Mountain Coffee tumbled
by almost 50%, from 150 thousand boxes during the period August to
November 2023 to only 76 thousand boxes during the corresponding
period in 2024, he revealed, according to RJR News.
Mr. Grant said, in financial terms the industry lost a total J$1
billion due to flooding and poor road conditions, the report notes.
He added that a meeting will shortly be held with Agriculture
Minister Floyd Green to again highlight the urgent need for the
government to provide a billion dollars in assistance to the sector
over a five-year period, 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.
In September 2023, S&PGlobal Ratings raised 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', with a stable outlook. In
September 2024, S&P affirmed 'BB-/B' sovereign ratings on Jamaica
and revised outlook to positive.
In March 2022, Fitch Ratings affirmed Jamaica's Long-Term Foreign
Currency Issuer Default Rating (IDR) at 'B+'. The Rating Outlook
is Stable.
JAMAICA: BOJ to Auction $42BB Certificate of Deposit on Jan. 7
--------------------------------------------------------------
RJR News reports that the Bank of Jamaica will be auctioning
another 30-day 6.5% per annum Certificate of Deposit for $42
billion on Tuesday, January 7.
It says $39 billion of this amount will be allocated on a
competitive bidding basis, while $2.10 billion will be allocated on
a non-competitive basis, according to RJR News.
All bids from the public sector must be submitted on a
non-competitive basis, the report notes.
The instrument will mature on January 31, 2025, and interest will
be subject to the 25% withholding tax, the report relays.
The minimum subscription or the minimum amount that can be applied
for is $100,000, adds the report.
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.
In September 2023, S&PGlobal Ratings raised 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', with a stable outlook. In
September 2024, S&P affirmed 'BB-/B' sovereign ratings on Jamaica
and revised outlook to positive.
In March 2022, Fitch Ratings affirmed Jamaica's Long-Term Foreign
Currency Issuer Default Rating (IDR) at 'B+'. The Rating Outlook
is Stable.
=======
P E R U
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COMPANIA DE MINAS: S&P Assigns 'BB-' LT ICR, Outlook Stable
-----------------------------------------------------------
S&P Global Ratings assigned its 'BB-' long-term issuer credit
rating to Peruvian mining company Compania de Minas Buenaventura
S.A.A. (BVN).
The stable outlook reflects that BVN will maintain leverage below
2.0x and post positive cash flow amid its expansion. The outlook
also reflects that through the refinancing of its 2026 notes, the
company will maintain an adequate liquidity headroom and a
comfortable debt maturity schedule.
BVN benefits from a portfolio of mines and equity investments in
assets that produce precious and base metals. Nevertheless, its
concentration in Peru and medium-size scale compared to larger and
well-diversified mining peers constrain S&P's view of its business
risk profile. BVN currently operates seven mines and has 19.58%
equity stake in Cerro Verde, a world-class copper production asset,
whose yearly dividends bolster the company's EBITDA. BVN has also
invested heavily in the development of the San Gabriel mine for the
last two years. The mine is set to replace and help grow its gold
and silver production in the coming years, providing a life of mine
(LOM) of more than 14 years once it begins operations by the second
half of 2025. At the same time, the company has a mildly
diversified product mix. For the fiscal 2024 ended Dec. 31, S&P
forecasts BVN's metals sales will consist of copper (38%), silver
(30%), and gold (24%), while the remaining 8% will derive from
zinc, lead, and other metals.
S&P said, "On the one hand, we believe that this operating model
compares well with those of mining peers in the Americas that have
a portfolio of four or fewer mines and which are focused on the
production of a single metal, thus having a higher exposure to
price volatility. Such peers include Aris Mining Corp.
(B+/Stable/--), Aura Minerals Inc. (B+/Stable/--), and ElDorado
Gold Inc. (B+/Stable/--). On the other hand, the company's
operations will remain concentrated in Peru and its scale in terms
of revenue and EBITDA doesn't compare well with those of rated
peers that either produce materially higher volumes of a specific
metal or have a wider and more diversified portfolio of assets or
products. Some of these peers with a stronger business risk profile
include AngloGold Ashanti PLC (BB+/Stable/--), Minsur S.A.
(BB+/Stable/--), and Navoi Mining and Metallurgical Co.
(BB-/Stable/--). These factors limit our view of BVN's business
risk profile.
"However, in our view, the company's strategy of replacing older
mines and improving its LOM, as well as reducing cash costs through
investments in its key assets will enhance its credit profile. We
consider these factors will enable BVN to generate higher and more
stable earnings, somewhat reducing its dependence on dividends from
Cerro Verde.
"Our expectation of adjusted leverage below 2.0x starting in 2024
supports our forecast of a stable financial risk profile. During
2024, the resumption of operations at Uchucchacua-Yumpag, strong
metals prices, and higher output increased revenue and EBITDA. As a
result, adjusted debt to EBITDA for the 12 months ended Sept. 30,
2024, was 1.6x, well below the level in the two previous years. Our
base-case scenario considers that, even though metals prices are
likely to decline in 2025-2026, BVN's efforts to replace some of
its declining assets and to raise production volumes will enable
the company to maintain consolidated revenue above $1.1 billion and
adjusted EBITDA margins above 40%. This will allow for stable
credit metrics in the next three years.
"A potential risk to its financial position stems from investments
and other cash outflows that would require BVN to issue incremental
debt above our expectations or dent its cash flow. Nevertheless, we
expect the company's current cash position and improved cash
flow--amid steady growth in production and a better cash cost
profile--to be sufficient to fund scheduled capital expenditure
(capex) in the San Gabriel mine and its dividends. In addition,
after the start of operations in San Gabriel in the second half of
2025, we expect capex to decline, boosting discretionary cash flow
in 2026. Consequently, our assessment of the financial risk profile
as significant reflects the expectation that BVN will maintain
leverage below 2.0x and generate positive cash flow during
2024-2026, consolidating the financial position that the company
has reached over the last year.
"Given its plans to refinance its 2026 senior unsecured notes in
advance, BVN will have an ample liquidity headroom amid its
expansion and ensure a favorable capital structure with limited
refinancing needs for the rest of the decade. Our assessment of
BVN's liquidity as adequate reflects the company's sufficient cash
balance, access to committed credit facilities, and forecasted cash
flow to fund its capex, dividends, and debt-related cash outflows
in the next 24 months. Through its refinancing strategy, BVN seeks
to extend the bullet maturity on most of its reported debt due July
2026. Consequently, any potential refinancing and liquidity risks
associated to the repayment of the notes will diminish, and we
therefore view BVN's capital structure as a neutral factor to the
rating. Additionally, BVN will comfortably cope with the remaining
debt, which is due in 2027 and has a balloon amortizing maturity
schedule. This is because we forecast BVN to generate nearly $80
million in discretionary cash flow in 2024-2025. This will cover
outstanding bank debt at the subsidiary level (about $73 million),
following the debt repayment for its El Brocal subsidiary for
nearly $50 million in October 2024.
"We assess the management and governance factor as moderately
negative to reflect BVN's tax dispute, which led to the debt
issuance in 2021. However, we don't view this as having a material
impact on our rating analysis. In 2021, following the tax dispute
between BVN and Peru's government and the court decision, the
company recognized more than $567 million in debt related to taxes,
penalties, and fees accumulated during 2007-2010. The company
issued the $550 million senior unsecured notes due 2026 and used
the proceeds to pay these obligations. Given that the notes
represented above 85% of reported debt in 2024, we believe BVN
still carries the impact on its balance sheet, and therefore, in
its credit metrics. Nevertheless, since 2021, there have not been
any material tax disputes or related penalties with any other
government authorities.
"Moreover, BVN's current management has demonstrated risk
management, internal controls, and audit practices and capabilities
that are in line with the industry standards. Therefore, we believe
that the impact from the 2021 tax dispute is captured in our rating
analysis through credit metrics and the financial risk profile. In
that sense, although we assess management and governance as
moderately negative, it doesn't have an additional impact on our
final rating."
=====================================
T R I N I D A D A N D T O B A G O
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TRINIDAD & TOBAGO: Central Bank Holds Repo Rate at 3.5%
-------------------------------------------------------
Trinidad and Tobago News reports that the Central Bank has
maintained its repo rate at 3.5 per cent, citing low inflation,
robust liquidity and moderate economic growth.
In its December 27 monetary policy announcement, the Central Bank
reported that headline inflation remained subdued at 0.5 per cent
in November, up slightly from 0.2 per cent in October, according to
Trinidad and Tobago News.
Core inflation, which excludes food prices, was unchanged, while
food inflation rose to 3.1 per cent, the report notes.
Liquidity in the financial system remained strong, supported by a
reduction in the reserve requirement for commercial banks from 14
to ten per cent in July, the report relays, Trinidad and Tobago
News says.
"This adjustment allowed commercial banks to maintain an average of
$6.4 billion in excess reserves during the first two weeks of
December," the report said, Trinidad and Tobago News discloses.
Real gross domestic product (GDP) grew by 1.5 per cent year-on-year
in the first quarter of 2024, driven by resilience in the
non-energy sector, Trinidad and Tobago News relays. Key
contributions came from trade, transportation, storage and
construction, the report says.
However, natural gas supply constraints negatively affected the
energy sector in the second and third quarters, tempering overall
growth, Trinidad and Tobago News notes.
Unemployment improved slightly, with the rate declining to 4.8 per
cent in the second quarter of 2024 from 5.1 per cent in the
previous quarter, the report relays.
However, this figure remained higher than the 3.7 per cent recorded
in the corresponding period in 2023, the report recalls.
Private sector credit expanded steadily throughout 2024. Business
lending outpaced consumer loans, with financing spread across
manufacturing, agriculture and construction sectors, , the report
says.
Consumer lending growth was concentrated in durable goods,
particularly vehicles, the report relays.
The global economic outlook remained stable, the report notes.
According to Trinidad and Tobago News, the International Monetary
Fund projects 3.2 per cent growth for 2024, slightly below the 3.3
per cent recorded in 2023. Geopolitical conflicts in Eastern Europe
and the Middle East continued to pose risks, the report discloses.
However, easing inflation prompted central banks globally to reduce
interest rates, including the US Federal Reserve, which implemented
three rate cuts during the year, the report says.
The Central Bank's Monetary Policy Committee (MPC) acknowledged the
favourable domestic and global conditions but stressed a need for
caution, the report relays.
"Low inflation, buoyant credit conditions, ample liquidity and a
continued measured expansion of non-energy output formed key
components of the domestic backdrop," the MPC said, adding that
rapid economic changes remain possible, the report discloses.
The next monetary policy announcement is scheduled for March 28,
2025, the report adds.
TRINIDAD & TOBAGO: Central Bank Says Inflation "Very Low"
---------------------------------------------------------
Trinidad and Tobago Express reports that headline inflation in the
country continues to be "very low", according to the Central Bank
in its most recent Monetary Policy Announcement.
"Headline inflation remained very low, and was recorded at 0.5% in
November, up from 0.2% in the previous month. Core inflation, which
excludes food prices, was unchanged at -0.3% while food inflation
rose to 3.1% from 2.4% over the two-month period," the Central Bank
stated in its Monetary Policy Announcement issued December 26,
according to Trinidad and Tobago Express.
The Central Bank also stated that data from the Central Statistical
Office (CSO) showed the country's real Gross Domestic Product (GDP)
grew by 1.5% year-on-year in the first quarter of 2024, the report
notes.
"This reflected a resilient non-energy sector, alongside a marginal
rise in energy sector output. According to subsequent indicators
monitored by the Central Bank, constraints in natural gas
availability negatively affected the energy sector during the
second and third quarters," it stated, the report relays.
"At the same time, non-energy production appears to have
strengthened, notably in the trade, transportation and storage and
construction sub-sectors. Meanwhile, the unemployment rate
measured 4.8% in the second quarter of 2024 compared with 5.1% one
quarter earlier and 3.7% in the corresponding quarter one year
earlier," the Central Bank added, the report discloses.
In addition, the Central Bank stated that financial system
liquidity remained "quite comfortable" throughout the second half
of 2024, following the reduction of the reserve requirement in July
from 14% to 10% of applicable deposits, the report says.
Commercial banks' excess reserves at the Central Bank averaged $6.4
billion in the first two weeks of December, the Central Bank
stated, the report relays.
The Central Bank also said that business loans surpassed consumer
lending in September, the report discloses.
"The momentum in private sector credit accelerated in September
2024, with the growth in business loans outpacing consumer lending.
The rise in credit to businesses was fairly broad based
(manufacturing, distribution, agriculture, construction, and
finance areas) while the growth in consumer financing was
concentrated on durables, notably automobiles," according to the
Central bank's Monetary Policy Announcement, the report relays.
"Relatively high domestic Government financing helped to push up
local treasury bill rates. Combined with the policy rate cuts by
the US Fed in late 2024, this resulted in a narrowing of the
(negative) TT/US interest differential on three month treasuries by
63 basis points to -233 basis points in November 2024."
For the 20th consecutive time since March 2020, the Central Bank
has kept the repo rate unchanged at 3.5%, the report relays.
In March 2020, following a special sitting of the Central Bank's
Monetary Policy Committee (MPC), the repo rate was reduced by 150
basis points to 3.5%, the report discloses.
"In its deliberations, the MPC acknowledged the steady expansion in
the world economy, albeit in an environment of significant economic
policy uncertainty. Low inflation, buoyant credit conditions,
ample liquidity and a continued measured expansion of non-energy
output formed key components of the domestic backdrop," stated the
Central Bank, the report notes. "The MPC recognised, however, that
close vigilance remained essential as developments could change
rapidly. Taking all factors into account, the Committee decided to
maintain the repo rate at its current level of 3.5%. The Central
Bank will continue to monitor international and domestic
developments and will take further actions as necessary."
The Central bank noted that global economic growth remained stable
in 2024 despite ongoing geopolitical conflicts in Eastern Europe
and the Middle East, the report says.
"The International Monetary Fund, in its October 2024 World
Economic Outlook, forecasts global activity to expand by 3.2% in
2024, slightly lower than the 3.3% registered in 2023. General
progress toward inflation targets allowed major central banks to
initiate monetary policy easing during the second half of 2024," it
said, the report discloses. "In December, the United States Federal
Reserve (US Fed) reduced its target range for the federal funds
rate by 25 basis points from 4.25 to 4.5% -- its third rate cut for
the year."
===============
X X X X X X X X
===============
LATAM: Jamaica and Others Benefit From FAO Financial Support
------------------------------------------------------------
RJR News reports that the UN Food & Agriculture Organization has
helped 22 countries unlock US$68 million in financing from the
Global Environment Facility to address biodiversity loss,
groundwater management, climate change, land degradation, and
pollution.
The projects expect to leverage an additional US$273 million in
co-financing to advance global goals for biodiversity, social
inclusion, land and water management, and reducing use of hazardous
chemicals, according to RJR News.
The project will work with local organizations across 14 countries,
including, Cuba, Guyana and Jamaica, the report notes.
It aims to restore 20,000 hectares of land, improve practices
across 350,000 hectares, and benefit 45,000 people, adds the
report.
[*] BOND PRICING: For the Week from Dec. 30, 2024 to Jan. 3, 2025
-----------------------------------------------------------------
Issuer Name Cpn Price Maturity Cntry Curr
---------- --- ----- -------- ----- ----
Alibaba Group Holding 3.3 63.4 2/9/2061 KY USD
AMTD IDEA Group 1.5 7.5 KY USD
AMTD IDEA Group 4.5 55 KY SGD
Amwaj 6.4 69.7 KY USD
Amwaj 4.5 49.6 KY USD
Argentina Bonar Bonds 1 43.3 7/9/2029 AR USD
Argentina Treasury Bond 3.3 45.8 4/30/2024 AR USD
Argentine Bonos del Te 15.5 39.7 10/17/2026 AR ARS
Argentine Gov't Int'l 1 46.4 7/9/2029 AR USD
Argentine Gov't Int'l 0.5 41.4 7/9/2029 AR EUR
Argentine Gov't Int'l 0.1 42 7/9/2030 AR EUR
Ascent Finance 1.2 61.6 7/12/2047 KY EUR
Ascent Finance 3.8 67 6/28/2047 KY AUD
Ascent Finance 3.4 65.7 2/6/2043 KY AUD
Astra Cumulative 2019 1.5 62 11/1/2029 KY USD
At Home Cayman 11.5 69.3 5/12/2028 KY USD
At Home Cayman 11.5 70 5/12/2028 KY USD
AYC Finance 3.9 62.2 KY USD
Banco Davivienda SA 6.7 64.1 CO USD
Banco Davivienda SA 6.7 70.3 CO USD
Banco de Chile 3.6 75.7 11/18/2039 CL AUD
Banco de Chile 3.5 75.4 9/5/2039 CL AUD
Banco de Chile 2.7 74.7 3/9/2035 CL AUD
Banco del Estado de Ch 3.1 70.5 2/21/2040 CL AUD
Banco del Estado de Ch 2.8 67 3/13/2040 CL AUD
Banco Nacional de Pana 2.5 74.7 8/11/2030 PA USD
Banco Santander Chile 3.1 70.6 2/28/2039 CL AUD
Banco Santander Chile 1.3 73.5 11/29/2034 CL EUR
Banda de Couro Energe 8 54.4 1/15/2027 BR BRL
Baraunas II Energeti 8 12.4 1/15/2027 BR BRL
Bishopsgate Asset Fi 4.8 66.9 8/14/2044 KY GBP
Bolivian Gov't Int'l 4.5 55.6 3/20/2028 BO USD
Bolivian Gov't Int'l 7.5 57.2 3/2/2030 BO USD
Bolivian Gov't Int'l 4.5 55.8 3/20/2028 BO USD
Bolivian Gov't Int'l 7.5 57.2 3/2/2030 BO USD
BOPREAL 5 64.7 10/31/2027 AR USD
BOPREAL 3 60.9 5/31/2026 AR USD
Brazilian Gov't Int'l4.8 73.8 1/14/2050 BR USD
BRF SA 5.8 73.5 9/21/2050 BR USD
BRF SA 5.8 73.6 9/21/2050 BR USD
Camposol SA 6 72.1 2/3/2027 PE USD
Camposol SA 6 72.5 2/3/2027 PE USD
CFLD Cayman Investment 2.5 3.4 1/31/2031 KY USD
CFLD Cayman Investment 2.5 3.6 1/31/2031 KY USD
CFLD Cayman Investment 2.5 3.1 1/31/2031 KY USD
CFLD Cayman Investment 2.5 3.8 1/31/2031 KY USD
CFLD Cayman Investment 2.5 2.4 1/31/2031 KY USD
CFLD Cayman Investment 2.5 3.4 1/31/2031 KY USD
CFLD Cayman Investment 2.5 8.7 1/31/2031 KY USD
CFLD Cayman Investment 2.5 3.4 1/31/2031 KY USD
CFLD Cayman Investment 2.5 2.2 1/31/2031 KY USD
Chile Gov't Int'l Bond 3.5 72.6 1/25/2050 CL USD
Chile Gov't Int'l Bond 3.1 73.4 5/7/2041 CL USD
Chile Gov't Int'l Bond 3.1 62.7 1/22/2061 CL USD
Chile Gov't Int'l Bond 3.5 72.1 4/15/2053 CL USD
Chile Gov't Int'l Bond 1.3 67.4 1/29/2040 CL EUR
Chile Gov't Int'l Bond 1.3 54 1/22/2051 CL EUR
Chile Gov't Int'l Bond 3.3 62.8 9/21/2071 CL USD
Chile Gov't Int'l Bond 1.3 74.2 7/26/2036 CL EUR
China Overseas Cayman 3.1 75.1 3/2/2035 KY USD
China Yuhua Education 0.9 65.8 12/27/2024 KY HKD
CK Hutchison Int'l 19 3.4 74 9/6/2049 KY USD
CK Hutchison Int'l 19 3.4 73.9 9/6/2049 KY USD
CK Hutchison Int'l 20 3.4 73.7 5/8/2050 KY USD
CK Hutchison Int'l 20 3.4 73.8 5/8/2050 KY USD
Colombia Gov't Int'l 3.9 2/15/2061 CO USD
Colombia Gov't Int'l 4.1 61.6 5/15/2051 CO USD
Colombia Gov't Int'l 5.2 72.9 5/15/2049 CO USD
Colombia Gov't Int'l 4.1 67 2/22/2042 CO USD
Colombia Gov't Int'l 6.3 73.5 7/9/2036 CO COP
Colombia Gov't Int'l 7.3 71.7 10/26/2050 CO COP
Colombia Gov't Int'l 7.3 71.7 10/26/2050 CO COP
Colombia Gov't Int'l 5 72 6/15/2045 CO USD
Colombia Gov't Int'l 6.3 73.5 7/9/2036 CO COP
Colombia Telecom 5 66.9 7/17/2030 CO USD
Colombia Telecom 5 67 7/17/2030 CO USD
Colombian TES 7.3 71.6 10/26/2050 CO COP
Colombian TES 6.3 73.4 7/9/2036 CO COP
Corp Nacional de Chile 3.7 67.5 1/30/2050 CL USD
Corp Nacional de Chile 3.2 61.2 1/15/2051 CL USD
Corp Nacional de Chile 3.7 67.5 1/30/2050 CL USD
Corp Nacional de Chile 3.6 74 7/22/2039 CL AUD
Corp Nacional de Chile 3.2 61.2 1/15/2051 CL USD
Dibens Leasing S/A 10.9 30.6 3/1/2035 BR BRL
Dibens Leasing S/A 10.9 34.6 3/1/2035 BR BRL
Dibens Leasing S/A 10.9 29.2 3/1/2035 BR BRL
Earls Eight 1.7 72 6/20/2032 KY AUD
Earls Eight 0.1 64.2 12/20/2031 KY AUD
Ecopetrol SA 5.9 74.2 5/28/2045 CO USD
Ecopetrol SA 5.9 70.7 11/2/2051 CO USD
El Salvador Gov't Int 7.1 68.7 1/20/2050 SV USD
El Salvador Gov't Int 7.6 72.9 9/21/2034 SV USD
El Salvador Gov't Int 7.6 73.3 2/1/2041 SV USD
El Salvador Gov't Int 5.9 65.1 1/30/2025 SV USD
El Salvador Gov't Int 7.6 73.5 9/21/2034 SV USD
El Salvador Gov't Int 7.1 68.7 1/20/2050 SV USD
El Salvador Gov't Int 7.6 73.5 2/1/2041 SV USD
Embotelladora Andina 6.5 23.3 6/1/2026 CL CLP
EFE 3.8 65.8 9/14/2061 CL USD
EFE 3.1 60 8/18/2050 CL USD
EFE 3.1 59.9 8/18/2050 CL USD
EFE 3.8 65.8 9/14/2061 CL USD
EFE 6.5 11.2 1/1/2026 CL CLP
ETESA 5.1 71.8 5/2/2049 PA USD
Empresa de Transmision 5.1 72.2 5/2/2049 PA USD
Metro SA 3.7 65.2 9/13/2061 CL USD
Metro SA 3.7 65.1 9/13/2061 CL USD
Metro SA 5.5 50.2 7/15/2027 CL CLP
Edsa SA 5 62.6 5/11/2025 AR USD
ENAP 4.5 73.3 9/14/2047 CL USD
ENAP 4.5 73.4 9/14/2047 CL USD
ENA Master Trust 4 70.8 5/19/2048 PA USD
ENA Master Trust 4 71.1 5/19/2048 PA USD
Enel Generacion Chile 6.2 29.4 10/15/2028 CL CLP
Equatorial Energia 11 1.1 10/15/2029 BR BRL
Equatorial Energia 10.8 1 5/15/2028 BR BRL
Esval SA 3.5 13.2 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 9/8/2024 AR USD
GDS Holdings 4.5 67.7 1/31/2030 KY USD
Generacion Mediterrane 4.6 0 11/12/2024 AR ARS
General Shopping Finan 10 66.2 KY USD
General Shopping Finan 10 65.1 KY USD
Genneia SA 2 56.4 7/14/2028 AR USD
Greenland Hong Kong 10.2 12.9 KY USD
Guacolda Energia SA 4.6 70.4 4/30/2025 CL USD
Guacolda Energia SA 10 70 12/30/2030 CL USD
Guacolda Energia SA 4.6 70.6 4/30/2025 CL USD
Guacolda Energia SA 10 70 12/30/2030 CL USD
Hector A Bertone SA 1.9 0 4/7/2024 AR USD
Hilong Holding 9.8 65.7 11/18/2024 KY USD
Hilong Holding 9.8 62.2 11/18/2024 KY USD
Hilong Holding 9.8 65.6 11/18/2024 KY USD
ICBC DO Brasil 3.3 59.5 BR USD
IMPSA 1 75 12/30/2031 AR USD
Itau Unibanco SA/Nassau 5.8 20.1 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 12/21/2061 JM JMD
Lani Finance 1.7 64.1 3/14/2049 KY EUR
Lani Finance 1.9 66.5 9/20/2048 KY EUR
Lani Finance 1.9 67.5 10/19/2048 KY EUR
Lani Finance 3.1 64.7 10/19/2048 KY AUD
Link Finance Cayman 2.2 69.8 10/27/2038 KY HKD
LIPSA Srl 1 0 8/23/2024 AR USD
Logan Group Co 7 5 KY USD
Longfor Group Holdings 4 45.2 9/16/2029 KY USD
Longfor Group Holdings 3.4 58 4/13/2027 KY USD
Longfor Group Holdings 3.9 40.2 1/13/2032 KY USD
Longfor Group Holdings 4.5 55.2 1/16/2028 KY USD
Luminis III 2.3 41.5 9/22/2048 KY USD
Luminis III 2.4 54 9/22/2048 KY AUD
Luminis IV 3.2 69.6 1/22/2042 KY AUD
Luminis 2.3 53.5 9/22/2048 KY AUD
Lunar Funding I 1.7 70.7 8/11/2056 KY GBP
MTR Corp CI 3 72.6 3/11/2051 KY HKD
MTR Corp CI 2.8 72.7 9/6/2047 KY HKD
MTR Corp CI 3.2 73.1 2/5/2055 KY HKD
MTR Corp CI 3 72.5 3/11/2051 KY HKD
Panama Gov't Int'l Bon 4.5 64.1 4/1/2056 PA USD
Panama Gov't Int'l Bon 2.3 70.3 9/29/2032 PA USD
Panama Gov't Int'l Bon 3.9 56.6 7/23/2060 PA USD
Panama Gov't Int'l Bon 3.3 75.7 1/19/2033 PA USD
Panama Gov't Int'l Bon 4.5 65.7 4/16/2050 PA USD
Panama Gov't Int'l Bon 4.5 63 1/19/2063 PA USD
Panama Gov't Int'l Bon 4.5 67.3 5/15/2047 PA USD
Panama Gov't Int'l Bon 4.3 63.8 4/29/2053 PA USD
Peruvian Gov't Int'l 2.8 57.2 12/1/2060 PE USD
Peruvian Gov't Int'l 3.2 57 7/28/2121 PE USD
Peruvian Gov't Int'l 3.6 71.3 3/10/2051 PE USD
Peruvian Gov't Int'l 3.6 65.4 1/15/2072 PE USD
Peruvian Gov't Int'l 3.3 74 3/11/2041 PE USD
Petroleos del Peru SA 5.6 66.3 6/19/2047 PE USD
Petroleos del Peru SA 5.6 66.4 6/19/2047 PE USD
Powerlong Real Estate 6.3 10.3 8/10/2024 KY USD
Provincia de Cordoba 7.1 39.7 10/27/2026 AR USD
Provincia de la Rioja 4.5 55.5 1/20/2027 AR USD
Provincia de la Rioja 7.5 51.1 7/20/2032 AR USD
Chaco Argentina 4 0 12/4/2026 AR USD
QNB Finance 13.5 65.4 10/6/2025 KY TRY
QNB Finance 11.5 73.2 1/30/2025 KY TRY
QNB Finance 2.9 73.4 9/16/2035 KY AUD
QNB Finance 2.9 72.1 12/4/2035 KY AUD
QNB Finance 3 74.6 2/14/2035 KY AUD
QNB Finance 3.4 70.7 10/21/2039 KY AUD
Radiance Holdings Grou 7.8 69.6 3/20/2024 KY USD
Rio Alto Energias Reno 7 28.7 7/15/2027 BR BRL
Santander Consumer Ch 2.9 72.5 11/27/2034 CL AUD
Seazen Group 6 70.3 8/12/2024 KY USD
Seazen Group 4.5 30.6 7/13/2025 KY USD
Shui On Dev't 5.5 73.2 3/3/2025 KY USD
Shui On Dev't 5.5 61.7 6/29/2026 KY USD
Silk Road Investments 2.9 66 1/23/2042 KY AUD
Skylark 1.8 59.1 4/4/2039 KY GBP
Autopista Central 5.3 37.3 12/15/2026 CL CLP
Vespucio Norte 5.3 50.7 12/15/2028 CL CLP
Minera de Chile SA 3.5 65.5 9/10/2051 CL USD
Minera de Chile SA 3.5 65.4 9/10/2051 CL USD
Southern Water Services 3 70.9 5/28/2037 KY GBP
SPE Saneamento RIO 1 7.2 10.7 1/15/2042 BR BRL
SPE Saneamento RIO 2 6.9 10.3 1/15/2034 BR BRL
SPE Saneamento RIO 3 7.2 10.8 1/15/2042 BR BRL
SPE Saneamento RIO 4 6.9 10.3 1/15/2034 BR BRL
Spica 2 74.6 3/24/2033 KY AUD
Spirit Loyalty Cayman 8 72.1 9/20/2025 KY USD
Spirit Loyalty Cayman 8 72.5 9/20/2025 KY USD
Spirit Loyalty Cayman 8 72 9/20/2025 KY USD
Spirit Loyalty Cayman 8 70.9 9/20/2025 KY USD
Sylph 2.7 68.3 3/25/2036 KY USD
Sylph 2.4 64.1 9/25/2036 KY USD
Sylph 3.1 74.6 9/25/2035 KY USD
Sylph 2.9 74.1 6/24/2036 KY AUD
SYN prop e tech SA 11.1 21.1 3/15/2024 BR BRL
Telecom Argentina SA 1 74.1 3/9/2027 AR USD
Telecom Argentina SA 1 66.2 2/10/2028 AR USD
Telefonica Moviles Chi 3.5 74.1 11/18/2031 CL USD
Telefonica Moviles Chi 3.5 74.2 11/18/2031 CL USD
Tencent Holdings 3.8 75.4 4/22/2051 KY USD
Tencent Holdings 3.2 67.3 6/3/2050 KY USD
Tencent Holdings 3.3 63.6 6/3/2060 KY USD
Tencent Holdings 3.9 73.4 4/22/2061 KY USD
Tencent Holdings 3.8 74.8 4/22/2051 KY USD
Tencent Holdings 3.2 67.2 6/3/2050 KY USD
Tencent Holdings 3.3 63.8 6/3/2060 KY USD
Tencent Holdings 3.9 73.2 4/22/2061 KY USD
Three Gorges Finance 3.2 70.5 10/16/2049 KY USD
Grupo Travessia 9 1.6 1/20/2032 BR BRL
Vina Santa Rita SA 4.4 63.8 9/15/2030 CL CLP
Volcan Cia Minera SAA 4.4 61.7 2/11/2026 PE USD
Volcan Cia Minera SAA 4.4 61.8 2/11/2026 PE USD
VTR Comunicaciones SpA 5.1 62.5 1/15/2028 CL USD
VTR Comunicaciones SpA 4.4 62.9 4/15/2029 CL USD
VTR Comunicaciones SpA 5.1 63.1 1/15/2028 CL USD
VTR Comunicaciones SpA 4.4 63.1 4/15/2029 CL USD
YPF SA 7 72.5 12/15/2047 AR USD
YPF SA 7 72.1 12/15/2047 AR USD
YPF SA 1 65.9 4/25/2027 AR USD
*********
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 2025. All rights reserved. ISSN 1529-2746.
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.
* * * End of Transmission * * *