/raid1/www/Hosts/bankrupt/TCRLA_Public/250121.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
Tuesday, January 21, 2025, Vol. 26, No. 15
Headlines
A R G E N T I N A
ARGENTINA: Cuts Peso Crawling Peg to 1% After Inflation Stabilizes
ARGENTINA: Moody's Upgrades Foreign Currency Ceiling to Caa1
ARGENTINA: Public Spending Slashed 26.8% Last Year
ARGENTINA: Takes Steps to Dollarise And Holds Key Rate
C H I L E
EMPRESA ELECTRICA: Moody's Alters Outlook on Ba1 Rating to Stable
C O L O M B I A
BANCO DAVIVIENDA: Fitch Affirms 'BB+/B' Issuer Default Ratings
BANCO DAVIVIENDA: S&P Affirms 'BB+/B' ICRs, Outlook Negative
TERMOCANDELARIA POWER: S&P Withdraws 'BB' Rating on 2029 Bond
J A M A I C A
JAMAICA: 2024 Inflation Hits Six-Year Low
JAMAICA: Accepts 31 Bids for 25-year Benchmark Investment Note
JAMAICA: Urges Stronger Private Sector Collaboration
P U E R T O R I C O
NUGEN GROUP: Case Summary & 20 Largest Unsecured Creditors
NUGEN GROUP: Sec. 341(a) Meeting of Creditors on February 10
- - - - -
=================
A R G E N T I N A
=================
ARGENTINA: Cuts Peso Crawling Peg to 1% After Inflation Stabilizes
------------------------------------------------------------------
Patrick Gillespie at Bloomberg News reports that Argentina's
Central Bank disclosed it will slow the pace of the peso's
controlled depreciation to one percent a month starting in February
after fresh inflation data paved the way for the policy change.
The move marks President Javier Milei's first shift in the currency
policy, known as a crawling peg, in more than a year since taking
office, according to Bloomberg News . Consumer price increases
have been hovering near their lowest since 2020, with the president
and his officials pledging in November to slow the peg to one
percent a month if inflation remained constant through the end of
2024, Bloomberg News notes.
"The exchange rate adjustment continues accomplishing its role as a
complementary anchor in inflation expectations," the Central Bank
said in a statement sent by text message, Bloomberg News relays.
Government data released earlier showed prices rose 2.7 percent in
December from November, the third straight month below three
percent and in line with the median estimate from economists
surveyed by Bloomberg. Annual inflation slowed to 117.8 percent,
from a peak of near 300 percent last year, Bloomberg News
discloses.
Milei's popularity remains high ahead of midterm elections due in
October largely because he brought annual inflation down while
keeping the exchange rate relatively steady, Bloomberg News says.
Argentines are increasingly positive about the economy on his
watch, but any currency policy changes risk stoking inflation and
jeopardising his party's standing with voters, Bloomberg News
relays.
His government had kept the crawling peg at two percent a month
despite inflation surpassing that figure, Bloomberg News notes.
While markets broadly applaud Milei's other economic
accomplishments, economists say the currency policy is overvaluing
the peso, a recipe that under past governments led to abrupt
devaluations and political upheaval, Bloomberg News discloses.
Although Milei slowed the peg, he's also committed to moving toward
a "flexible exchange rate" once he lifts Argentina's currency
controls sometime this year, Bloomberg News relays. The last time
an Argentine government lifted controls and let the currency float
in 2015, it backfired, inflation surged and former President
Mauricio Macri faced early setbacks in his one-term presidency,
Bloomberg News says.
Milei's team is weighing whether to introduce a managed exchange
rate - "dirty float" - once it lifts currency and capital controls
where the peso could freely float under strict parameters that
haven't yet been defined, 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.
In March 2022, the International Monetary Fund (IMF) approved a new
30-month arrangement under an Extended Fund Facility for Argentina
in the amount of SDR 31.914 billion (equivalent to US$44 billion,
or 1000 percent of quota). The IMF Executive Board's decision
allowed the authorities an immediate disbursement of an equivalent
of US$9.65 billion in March 2022.
Argentina's IMF-supported program seeks to improve public finances
and start to reduce persistent high inflation through a
multi-pronged strategy, involving a gradual elimination of monetary
financing of the fiscal deficit and enhancements in the monetary
policy framework.
In June 2024, the IMF Board completed an eighth review of the
Extended Arrangement under the Extended Fund Facility for
Argentina. The IMF Board's decision enabled a disbursement of
around US$800 million to support the authorities' efforts to
entrench the disinflation process, rebuild fiscal and external
buffers, and underpin the recovery.
On Jan. 8, 2025, Moody's Ratings raised Argentina's local currency
ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1
from Caa3. Moody's said the decision to raise the local and
foreign currency ceilings reflects the increased predictability and
the greater consistency in economic policy that has led to a rapid
reduction in monetary and fiscal imbalances that were stoking very
high inflation.
On Nov. 15, 2024, Fitch Ratings upgraded Argentina's Long-Term
Foreign-Currency Issuer Default Rating (IDR) to 'CCC' from 'CC',
and its Long-Term Local-Currency IDR to 'CCC' from 'CCC-'.
Argentina's upgrade to 'CCC' from 'CC' reflects developments that
have improved Fitch's confidence in the authorities' ability to
make upcoming foreign-currency bond payments without seeking relief
of some sort.
S&P, in March 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 S&P ratings have
been affirmed as of August 2024. S&P said the stable outlook on
the long-term ratings balances the risks posed by pronounced
economic imbalances and other uncertainties with recent progress in
making fiscal adjustments, reducing inflation, and undertaking
structural reforms to address long-standing microeconomic
weaknesses that have contributed to poor economic performance for
many years that it would likely consider to be distressed.
DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local
Currency Issuer Ratings to B (low) from CCC on November 25, 2024.
The trend on all ratings is Stable.
ARGENTINA: Moody's Upgrades Foreign Currency Ceiling to Caa1
------------------------------------------------------------
Moody's Ratings has raised Argentina's local currency ceiling to B3
from Caa1 and the foreign currency ceiling to Caa1 from Caa3.
ASSESSMENT RATIONALE
The decision to raise the local and foreign currency ceilings
reflects the increased predictability and the greater consistency
in economic policy that has led to a rapid reduction in monetary
and fiscal imbalances that were stoking very high inflation. The
government's policy actions to unwind restrictions on cross-border
payments and foreign exchange convertibility have increased
availability of foreign currency liquidity in the country despite
the low capital account openness. Government policy has shifted
toward a reduced role of the State in the economy and less
interventionist policies that suggest a lower likelihood of
transfer and convertibility risks in the event of a sovereign
default.
The four-notch gap between the local-currency ceiling and the Ca
sovereign rating balances the increased predictability of
government actions and institution and a decreased footprint of the
government in the economy and the financial system, against weak
external balance of payments stability.
The one-notch gap between the foreign currency ceiling and local
currency ceiling reflects improved policy effectiveness and
relatively low external indebtedness, balanced by low capital
account openness.
The methodology used in this analysis was Country Ceilings
Methodology published in December 2020.
ARGENTINA: Public Spending Slashed 26.8% Last Year
--------------------------------------------------
Buenos Aires Times reports that real primary spending in Argentina
fell by 5.8 percent in December as against the previous month,
according to a report by Analytica consultancy firm.
Last year's spending at constant prices was cut by an accumulated
26.8 percent, according to Buenos Aires Times. Transfers to the
provinces were the hardest hit by the austerity with a 68.5 percent
cut last month as against the previous December or an accumulated
75.1 percent, explained by reductions in the transfers for both
current (minus 68.6 percent) and capital (minus 94.3 percent)
spending, the report notes.
Within the transfers for current spending, the only district to
benefit was Buenos Aires City (CABA), which received 32 percent
more funds than in 2023, the report recalls. This increase is
explained by the transfers in compliance with Supreme Court
injunction 1864/2022 regarding the federal revenue-sharing arrears
owed CABA, which represented 73 percent of the funds remitted to
this city, the report notes.
Excluding this component and the transfers under Law 27.606, this
item was reduced by an inter-annual 34.8 percent, the report says.
Other items suffering important cuts were economic subsidies (minus
61 percent inter-annually in December) and social programmes (minus
47.2 percent inter-annually last month), the report says.
Economic subsidies were reduced by 37 percent in real terms
throughout the year while social programs fell 41 percent, the
report discloses.
In contrast, some items registered real increases last month, the
report says. Spending on goods and services rose 58.8 percent,
family and child (AUH) by 47.6 percent and pensions by 20.3 percent
with the latter the most relevant as representing 47 percent of
total primary spending in December, the report notes.
Despite this increase last month, pensions also experienced an
accumulated fall of 12.5 percent, thus explaining around a fifth of
the total adjustment of spending, the report relays.
Public works was another item to suffer a major adjustment last
year, being slashed by 76.5 percent, 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.
In March 2022, the International Monetary Fund (IMF) approved a new
30-month arrangement under an Extended Fund Facility for Argentina
in the amount of SDR 31.914 billion (equivalent to US$44 billion,
or 1000 percent of quota). The IMF Executive Board's decision
allowed the authorities an immediate disbursement of an equivalent
of US$9.65 billion in March 2022.
Argentina's IMF-supported program seeks to improve public finances
and start to reduce persistent high inflation through a
multi-pronged strategy, involving a gradual elimination of monetary
financing of the fiscal deficit and enhancements in the monetary
policy framework.
In June 2024, the IMF Board completed an eighth review of the
Extended Arrangement under the Extended Fund Facility for
Argentina. The IMF Board's decision enabled a disbursement of
around US$800 million to support the authorities' efforts to
entrench the disinflation process, rebuild fiscal and external
buffers, and underpin the recovery.
On Jan. 8, 2025, Moody's Ratings raised Argentina's local currency
ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1
from Caa3. Moody's said the decision to raise the local and
foreign currency ceilings reflects the increased predictability and
the greater consistency in economic policy that has led to a rapid
reduction in monetary and fiscal imbalances that were stoking very
high inflation.
On Nov. 15, 2024, Fitch Ratings upgraded Argentina's Long-Term
Foreign-Currency Issuer Default Rating (IDR) to 'CCC' from 'CC',
and its Long-Term Local-Currency IDR to 'CCC' from 'CCC-'.
Argentina's upgrade to 'CCC' from 'CC' reflects developments that
have improved Fitch's confidence in the authorities' ability to
make upcoming foreign-currency bond payments without seeking relief
of some sort.
S&P, in March 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 S&P ratings have
been affirmed as of August 2024. S&P said the stable outlook on
the long-term ratings balances the risks posed by pronounced
economic imbalances and other uncertainties with recent progress in
making fiscal adjustments, reducing inflation, and undertaking
structural reforms to address long-standing microeconomic
weaknesses that have contributed to poor economic performance for
many years that it would likely consider to be distressed.
DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local
Currency Issuer Ratings to B (low) from CCC on November 25, 2024.
The trend on all ratings is Stable.
ARGENTINA: Takes Steps to Dollarise And Holds Key Rate
------------------------------------------------------
Buenos Aires Times reports that Argentina's Central Bank said
payment intermediaries will have to enable debit card transactions
in US currency by February 28, marking a key step in President
Javier Milei's pledge to dollarise the economy.
The bank also developed a program to allow people to make installed
payments in either dollars or pesos. The move aims to "bolster
currency competition in order to allow people and businesses to use
the currency they wish in their daily transactions," according to a
Central Bank statement, according to Buenos Aires Times.
Separately, the bank decided to keep its interest rate unchanged at
32 percent, frustrating investors' growing bets on another
borrowing cost cut, according to a person with direct knowledge of
the matter, the report notes. Bloomberg Linea first reported the
key rate news, the report relays.
Financial markets had expected a rate reduction after December's
annual inflation slowdown and the Central Bank's decision to lower
the official currency's monthly depreciation rate to one percent
from two percent, the report discloses.
Economy Minister Luis Caputo added in a post on X that starting
businesses will be able to post price tags for goods and services
in dollars or other foreign currency - alongside the cost in pesos,
the report says.
During his presidential campaign, Milei promised to encourage
currency competition in South America's second largest economy, a
plan that was widely known as "dollarisation," the report relays.
The proposal sparked criticism from the opposition because it was
seen as impossible amid a shortage of greenbacks. Still, the
announcement points in the direction of Milei's pledge, the report
discloses.
Argentina still keeps a litany of capital and currency controls in
place. Milei has promised to lift those restrictions this year,
which could force the Central Bank to provide more attractive
interest rates to stave off a possible currency run, the report
notes.
The International Monetary Fund, which Argentina is hoping will
lend it more money to help to lift controls, has long been a
proponent of borrowing costs well above inflation, the report
says.
Government data released showed prices rose 2.7 percent in December
from November, the third straight month below three percent and in
line with the median estimate from economists surveyed by
Bloomberg, the report relays. Annual inflation eased to 117.8
percent, down from a peak of near 300 percent last year, the report
notes.
The Central Bank has cut rates eight times since Milei took office
in December 2023, when borrowing costs were 133 percent, the report
says. The strategy has become one of the most unorthodox parts of
Milei's strategy to slow inflation, 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.
In March 2022, the International Monetary Fund (IMF) approved a new
30-month arrangement under an Extended Fund Facility for Argentina
in the amount of SDR 31.914 billion (equivalent to US$44 billion,
or 1000 percent of quota). The IMF Executive Board's decision
allowed the authorities an immediate disbursement of an equivalent
of US$9.65 billion in March 2022.
Argentina's IMF-supported program seeks to improve public finances
and start to reduce persistent high inflation through a
multi-pronged strategy, involving a gradual elimination of monetary
financing of the fiscal deficit and enhancements in the monetary
policy framework.
In June 2024, the IMF Board completed an eighth review of the
Extended Arrangement under the Extended Fund Facility for
Argentina. The IMF Board's decision enabled a disbursement of
around US$800 million to support the authorities' efforts to
entrench the disinflation process, rebuild fiscal and external
buffers, and underpin the recovery.
On Jan. 8, 2025, Moody's Ratings raised Argentina's local currency
ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1
from Caa3. Moody's said the decision to raise the local and
foreign currency ceilings reflects the increased predictability and
the greater consistency in economic policy that has led to a rapid
reduction in monetary and fiscal imbalances that were stoking very
high inflation.
On Nov. 15, 2024, Fitch Ratings upgraded Argentina's Long-Term
Foreign-Currency Issuer Default Rating (IDR) to 'CCC' from 'CC',
and its Long-Term Local-Currency IDR to 'CCC' from 'CCC-'.
Argentina's upgrade to 'CCC' from 'CC' reflects developments that
have improved Fitch's confidence in the authorities' ability to
make upcoming foreign-currency bond payments without seeking relief
of some sort.
S&P, in March 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 S&P ratings have
been affirmed as of August 2024. S&P said the stable outlook on
the long-term ratings balances the risks posed by pronounced
economic imbalances and other uncertainties with recent progress in
making fiscal adjustments, reducing inflation, and undertaking
structural reforms to address long-standing microeconomic
weaknesses that have contributed to poor economic performance for
many years that it would likely consider to be distressed.
DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local
Currency Issuer Ratings to B (low) from CCC on November 25, 2024.
The trend on all ratings is Stable.
=========
C H I L E
=========
EMPRESA ELECTRICA: Moody's Alters Outlook on Ba1 Rating to Stable
-----------------------------------------------------------------
Moody's Ratings affirmed Empresa Electrica Cochrane SpA
(Cochrane)'s Ba1 Senior Secured Global Notes and changed the
outlook to stable from negative.
RATINGS RATIONALE
Moody's decision to affirm the rating and stabilize the outlook is
based on Moody's increased comfort with the overall credit quality
of the project's off-takers. This improvement comes after one of
Cochrane's main off-takers (Sierra Gorda), which was previously
under liquidity pressure due to a significant shareholder loan
maturing, successfully extended the loan by several years to 2032,
thereby alleviating Moody's primary credit concerns.
Cochrane's Ba1 senior secured rating continues to reflect the
project's sound operations and cash flows visibility that is
supported by the robust terms of its availability based PPAs and
the system's capacity payments. This cash flow predictability
underpins the project's ability to report a debt service coverage
ratio (DSCR) of at least 1.4x from the fixed capacity charges it
will receive during the life of the notes. It also encompasses the
terms and conditions of the PPAs with a favorable allocation of
risks in favor of Cochrane, such as robust termination payments and
a priority of claim for the collection of receivables in the event
of a counterparty bankruptcy.
The credit profile will remain constrained by Cochrane's single
asset, coal based operations in Chile and by the project's exposure
to its main three off-takers which incorporates Moody's view that a
weakened counterparty risk profile could expose the project to
delays in collection, contractual disputes or ultimately more
volatile revenues if part of the contracted output is redirected to
the spot market.
The stable outlook incorporates Moody's view that Cochrane's
counterparty risk will remain stable over the next 12-18 months and
that the project will be able to generate cash flows from its fixed
revenues that will allow the project to report a DSCR consistently
above 1.4 times.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
An upgrade of the rating is possible if Cochrane's weighted-average
counterparty risk improves and credit metrics remain strong with a
DSCR above 1.8 times on a sustained basis.
A downgrade of Cochrane is likely if Moody's see a permanent
deterioration in the offtakers' credit quality, leading to a
weighted average counterparty risk that is weakly positioned for
the Ba1 rating coupled with less cash flow predictability that
leads the project's DSCR to less than 1.4 times.
Negative pressure on the rating will also be considered if Moody's
see a higher-than-expected risk for Cochrane's exposure to carbon
transition, a more aggressive cash distribution policy or
additional changes to its ownership and capital structure that
translate into unexpected negative consequences on the issuer's
ability to service debt on time.
Empresa Electrica Cochrane SpA (Cochrane) is a privately held
joint-stock special-purpose vehicle organized under the laws of the
Republic of Chile. Cochrane owns and operates two units 550
megawatt (MW, gross) coal-fired generation facility in northern
Chile. The complex includes a 20 MW Battery Energy Storage System
(BESS). It also shares some installations with Empresa Electrica
Angamos SpA (Angamos), which owns and operates an adjacent 558 MW
coal-fired plant.
Cochrane's majority indirect shareholder is AES Andes S.A. with 57%
ownership rights. In September 2020, AES Andes S.A. sold a portion
of its economic rights to the Investment Fund TIF Inversiones SpA
(indirect interest: 3%; economic interest: 30%), owned by Toesca
Infraestructura II Fondo de Inversión. In June 2020, Daelim Energy
Co acquired a direct 40% interest in Cochrane from Mitsubishi
Corporation (A2 stable).
The principal methodology used in this rating was Power Generation
Projects published in June 2023.
===============
C O L O M B I A
===============
BANCO DAVIVIENDA: Fitch Affirms 'BB+/B' Issuer Default Ratings
--------------------------------------------------------------
Fitch Ratings has affirmed Banco Davivienda S.A.'s (Davivienda)
Long-and Short-Term Local and Foreign Currency Issuer Default
Ratings (IDRs) at 'BB+' and 'B', respectively. Fitch has also
affirmed Davivienda's Viability Rating (VR) at 'bb+' and its
National Long-Term rating at 'AAA(col)' and 'F1+(col)'. The rating
outlook for the Long-Term IDRs and National Rating is Stable.
Fitch has also affirmed Banco Davivienda (Costa Rica), S.A.'s
(Davivienda CR) Long- and Short-Term Local and Foreign Currency
Issuer Default Ratings (IDRs) at 'BB+' and 'B', respectively, and
its Shareholder Support Rating (SSR) at 'bb+'. Additionally, Fitch
has affirmed Davivienda CR's National Long- and Short-Term ratings
at 'AAA(cri)' and 'F1+(cri)', as well as the ratings of the local
debt issue programs. The Rating Outlook for the Long-Term IDRs and
National Rating is Stable.
Fitch has placed Scotiabank Colpatria S.A.'s (SBC) Long-Term
Foreign Currency and Local Currency IDRs of 'BBB-' and 'BBB',
respectively, its Short-Term Foreign Currency and Local Currency
IDRs of 'F3', respectively, its SSR of 'bbb-', and its local
subordinated debt on Rating Watch Negative (RWN). At the same time,
Fitch affirmed the bank's VR at 'bb', its national ratings,
including the local senior unsecured debt, at 'AAA(col)' and
'F1+(col)', respectively.
The RWN on SBC's ratings reflects the potential credit implications
due to anticipated changes in its shareholder structure. This is
because, upon completion of the transaction, the expected main
shareholder, Davivienda, would be rated lower than the current
shareholder, The Bank of Nova Scotia (BNS) 'AA-'/ROS. Consequently,
the SSR, which drives the ratings, will be capped at Davivienda's
rating of 'BB+'. Upon completion of the integration, Fitch expects
SBC's IDRs to converge toward those of Davivienda, which are in
turn driven by the latter's intrinsic credit profile as reflected
in its own VR.
Fitch Ratings has also affirmed the Long- and Short-Term National
Ratings of Scotiabank de Costa Rica, S.A. (Scotiabank CR) at
'AAA(cri)' and 'F1+(cri)', respectively. The Long-Term National
Rating Outlook is Stable. At the same time, it affirmed the senior
unsecured debt ratings at 'AAA(cri)'.
These actions follow the Jan. 6, 2025 announcement that Davivienda
has reached an agreement with BNS to integrate Scotiabank's
operations in Colombia, Costa Rica, and Panama into Davivienda. In
exchange, Scotiabank will receive approximately 20% ownership stake
in the new combined operations and participation on the Board of
Directors. Simultaneously, BNS will purchase Grupo Mercantil
Colpatria S.A.'s stake (44%) in SBC. This strategic move aims to
consolidate their market position in Colombia and Central America
and capitalize on synergies between Davivienda and BNS. The
transaction is dependent on regulatory approval from authorities in
Colombia, Costa Rica and Panama.
Upon completion of the non-cash agreement, Davivienda's assets,
liabilities, and equity are expected to grow by 40% while
maintaining its capital position relatively stable without any
goodwill generation. The strengthened market position in these
three markets will enhance Davivienda's footprint as a regional
leader, while synergies from BNS will provide access to a broad
global offering of financial solutions.
Fitch expects to resolve the RWN on SBC upon closing of the
transaction, which could take more than six months.
Key Rating Drivers
Davivienda
The affirmation of Davivienda's ratings reflects Fitch's
expectation that this transaction will not negatively impact its
operations or its strong business and financial profiles.
Particularly, Fitch expects Capitalization core metric to be
maintained above 10%, once the transaction is completed. Upside
potential is limited due to challenges regarding the integration of
bank operations and the significant efforts needed to normalize
asset quality and profitability, mainly in Colombia, which remain
contingent on its disciplined lending standards and pace of
growth.
VR Drives IDRs: Davivienda IDRs are driven by its VR. The VR is one
notch above the 'bb'-implied VR and reflects the bank's strong
business profile. This factor has a positive impact on the bank's
credit profile given its leading market position in Colombia as the
second-largest bank and adequate franchise in Central America. The
assessment also considers its sound risk management and financial
performance recovery amid the recent challenging operating
environment (OE), as well as its good capital position and large,
stable deposit base.
Strong Business Profile: Davivienda's business profile is
underpinned by its stable total operating income (TOI), strong
market position in Colombia and leading franchise in Central
America. Davivienda has a diversified business model, serving more
than 24 million customers and offering a full suite of retail and
commercial banking, as well as wealth management and capital market
services. Fitch expects improvements in TOI, efficiency and
profitability, based on strengthened geographic diversification and
synergies between the two entities once the integration of
operations is completed.
Improving Asset Quality: Davivienda's improvement in the
asset-quality metrics of its consumer portfolio suggested a more
rigorous credit risk management approach, important collection
efforts and a shift toward borrowers of better credit quality.
Before regulatory approvals are obtained, Fitch anticipates that
NPL ratio will improve in 2025, mainly in Colombia, where both
banks faced a strong deterioration of the consumer portfolio.
However, credit costs should remain above 3% for the next 12 months
given the need for further provision expenses.
Adequate Capital Metrics: Davivienda's capitalization remains
adequate amid asset contraction and weak profitability in 2023 and
2024, with a 10.4% common equity Tier 1 (CET1)-to-risk weighted
asset (RWA) ratio as of 3Q24 and a 14.7% total regulatory capital
ratio due to additional loss absorption provided by hybrid capital
securities.
According to the agreement with BNS, integration includes a USD1.5
million increase on equity for the combined entity, which will help
maintain stable CET1 and regulatory capital ratios upon
consolidation. This will allow for a capital score of 'bb-',
commensurate with the bank's planned growth and earnings recovery.
Davivienda Costa Rica
Ratings Driven by Parent Support: Davivienda CR's IDRs and National
scale ratings are underpinned by its 'bb+' Shareholder Support
Rating (SSR), which reflects Fitch's assessment of the ability and
propensity of its shareholder Davivienda to provide timely support
if needed. Davivienda's ability to provide support is sustained by
its 'BB+' IDR.
The National Ratings reflect Davivienda's relative creditworthiness
regarding the Costa Rican sovereign (BB/Stable) and other rated
entities in Costa Rica, allowing Davivienda CR's National Ratings
to be at the top of the national scale.
Scotiabank Colpatria
Ratings Driven by Shareholder Support: SBC's IDRs and national
ratings are based on the support it would receive from its parent,
BNS, should it be required, as reflected in the SSR of 'bbb-'.
Fitch believes that the parent's propensity to support SBC relies
on its ownership and operational integration between the two
companies.
SBC's LT IDR is two notches above Colombia's sovereign rating,
which is in line with Fitch's parent/subsidiary criteria. The FC
IDR is constrained at 'BBB-' by Colombia's Country Ceiling. Fitch
expects support from BNS to continue until the transaction with
Davivienda is completed. At that point, Fitch will evaluate whether
the ratings should be assessed on a standalone basis or based on
the support from Davivienda, which is rated at 'BB+'/ROS.
Viability Rating: SBC's VR is driven by its standalone performance,
which considers its evolving business model, negative performance
affected by increased delinquency and tight capital metrics
compared with those of its peers in this rating category.
Scotiabank CR
Support-Based Ratings: The ratings are derived from Fitch's
assessment of the potential support that Scotiabank CR would
receive from its current shareholder, The Bank of Nova Scotia
(BNS). BNS's strong support capacity is reflected in its IDR of
'AA-' with a Stable Outlook. Fitch expects support from BNS to
continue until the new ownership structure comes into effect. Fitch
does not anticipate a change on Scotiabank CR's ratings derived
solely from the change of the ultimate shareholder.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Davivienda VR, IDRs and National Ratings
- The ratings could be downgraded if asset-quality deterioration is
not controlled below 4% and profitability ratio (operating profit
to RWA) consistently deviate below from 1.25% over the next 12-24
months, resulting in an erosion of CET1 consistently below 10%;
- A weakening of Fitch's assessment of the business or risk
profiles could trigger a downgrade;
- Davivienda's national scale ratings will reflect any change in
local relativities.
Davivienda Costa Rica
- 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;
- A downgrade in Davivienda's IDRs would trigger the same action on
Davivienda CR's IDRs, SSR and national ratings;
- Any perception by Fitch of the parent's significantly reduced
propensity to support the subsidiary may trigger a downgrade of the
IDRs, SSR and National Ratings.
Scotiabank Colpatria
- The bank's global ratings would be downgraded upon completion of
the transaction, to the level of Davivienda's ratings;
- SBC's IDRs are subject to sovereign rating and/or Country Ceiling
considerations and could be affected by a negative sovereign rating
action;
- SBC's SSR could potentially be withdrawn and the Davivenda's
Government Support Rating (GSR) would also be considered for this
entity;
- SBC's VR could be negatively affected if the bank's asset quality
continues to deteriorate, further impacting its financial
performance;
- National ratings could be downgraded following a multinotch
downgrade on the bank's IDR, but this is not the base scenario.
Scotiabank CR
- once the ownership transfer concludes, Scotiabank CR's national
ratings could be downgraded if Fitch perceives a reduced
willingness of Davivienda to support the bank, if needed;
- once the change of ownership gets completed, a downgrade in
Davivienda's IDR would put downward pressure on Scotiabank CR's
national ratings.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Davivienda VR, IDRs and National Ratings
- Given the limitations of the OE, a ratings upgrade is unlikely in
the medium term;
- Over the long term, the ratings could be upgraded by a confluence
of improvement within the OE and in the bank's financial profile;
- Davivienda's national ratings have no upside potential because
they are at the highest level in the national rating scale.
Davivienda Costa Rica
- Davivienda CR's IDRs and SSR could be upgraded one notch
following a similar action on Davivienda's IDRs;
- The National Ratings cannot be upgraded as they are already at
the top of the rating scale.
Scotiabank Colpatria
- The RWN on the bank's ratings could be removed in the event that
the transaction does not close, in which case the ratings would be
affirmed at their current level with a Stable Outlook;
- The VR has limited upside potential in the short-to-medium term.
However, a return to significantly enhanced profitability ratios,
along with a CET1 ratio that is consistently above 10%, could lead
to an upgrade.
- The national ratings do not have upside potential as they are
already at the highest possible local rating.
Scotiabank CR National Ratings
- The bank's ratings are at the highest level on the national
scale, therefore, they cannot be upgraded.
OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS
Davivienda's AT1 notes are rated four notches below its VR. The
notching reflects the notes' higher loss severity in light of their
deep subordination, along with additional nonperformance risk
relative to the VR, given the high write-down trigger of CET1 at
5.125% and full discretion to cancel coupons. As such, the debt has
been affirmed due to the affirmation of Davivienda's VR.
Davivienda's local subordinated debt is rated two notches below its
National Long-Term Rating, encompassing two notches for loss
severity (-2) and zero notches for nonperformance risk (0), given
the issuance terms (plain vanilla subordinated debt).
Davivienda's local senior unsecured bonds are rated at the same
level as the bank's National Long-Term Rating, considering the
absence of credit enhancement or any subordination feature.
Davivienda CR's senior debt is rated at the same level as the
issuer's National Long-Term Rating. Fitch believes the likelihood
of default on the obligations is the same as that of the bank,
given the debt lacks specific guarantees or subordination.
SBC's national rated senior unsecured debt is in line with its
national rating of 'AAA(col)'. The likelihood of default for the
debt issuance is the same as the likelihood of default for the
bank.
SBC's subordinated debt national rating is two notches below what
Fitch considers the appropriate anchor rating, the bank's LC LT IDR
of 'BBB', since this is a local-currency issue program. The
two-notch difference reflects the loss severity, given the
characteristics (no coupon flexibility). The global rating maps
have the local national rating of 'AAA(col)'. The RWN placement on
this debt reflects the potential downgrade in the bank's anchor
rating, its LC LT IDR.
Scotiabank CR's National Long-Term Rating of its senior unsecured
debt is aligned with Scotiabank CR's National Long-Term Rating. The
probability of default for these issuances is the same as that of
Scotiabank CR due to the absence of specific guarantees.
Government Support Rating
The bank's Government Support rating of 'bb' reflects Davivienda's
size, systemic importance and the country's historical support
policy. Fitch believes there is a high probability of sovereign
support. Colombia's ability to provide such support is reflected in
the sovereign's Long-Term IDR (BB+/Stable).
OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES
Other Debt and Issuer Ratings: Rating Sensitivities
- Davivienda's junior subordinated debt ratings will mirror any
action on the bank's VR.
- Davivienda's local senior debt ratings would move in line with
its National Long-Term rating.
- Davivienda's local subordinated debt ratings would move in line
with its National Long-Term rating.
- Davivienda CR's senior debt rating would move in line with its
National Long-Term rating.
- SBC's local subordinated debt could be downgraded by a similar
action to the bank's IDR.
- SBC's local senior unsecured debt could be downgraded by a
similar action to the bank's LT national rating.
- A downgrade in the National Long-Term Ratings of Scotiabank CR's
senior unsecured debt would reflect any negative movement in the
bank's National Long-Term Rating.
- SBC's local senior unsecured and subordinated debt ratings are at
the highest level on the national scale, therefore, they cannot be
upgraded.
- Scotiabank CR's senior unsecured debt ratings are at the highest
level on the national scale, therefore, they cannot be upgraded.
- Davivienda's GSR are potentially sensitive to any change in
assumptions as to the propensity or ability of Colombia to provide
timely support to the bank.
VR ADJUSTMENTS
Davivienda's VR is one notch above the 'bb' implied rating due to
the following adjustment reason: Business Profile (positive).
Davivienda's Business Profile score has been assigned above the
implied score due to the following adjustment reason: Business
Model (positive).
SBC: Fitch has assigned a Capitalization and Leverage score above
the implied score due to the following adjustment reason: Capital
Flexibility and Ordinary Support (positive).
Public Ratings with Credit Linkage to other ratings
SBC: Ratings are shareholder support driven (The Bank of Nova
Scotia; AA-).
Scotiabank CR Ratings are shareholder support driven (The Bank of
Nova Scotia; AA-).
Davivienda CR: Ratings are shareholder support driven (Davivienda;
BB+).
ESG Considerations
Davivienda, Davivienda CR and SBC
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)
Shareholder Support bb+ Affirmed bb+
senior
unsecured Natl LT AAA(cri) Affirmed AAA(cri)
Scotiabank
Colpatria S.A. LT IDR BBB- Calificación
en Observación BBB-
ST IDR F3 Calificación
en Observación F3
LC LT IDR BBB Calificación
en Observación BBB
LC ST IDR F3 Calificación
en Observación F3
ENac LP AAA(col)Afirmada AAA(col)
ENac CP F1+(col)Afirmada F1+(col)
Viability bb Afirmada bb
Shareholder Support bbb-
Calificación en Observación bbb-
senior
unsecured ENac LP AAA(col)Afirmada AAA(col)
subordinated ENac LP AAA(col) Calificación
en Observación AAA(col)
Banco
Davivienda 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(col)Affirmed AAA(col)
Natl ST F1+(col)Affirmed F1+(col)
Viability bb+ Affirmed bb+
Government Support bb Affirmed bb
junior
subordinated LT B Affirmed B
senior
unsecured Natl LT AAA(col)Affirmed AAA(col)
subordinated Natl LT AA(col)Affirmed AA(col)
Scotiabank de
Costa Rica, S.A. ENac LP AAA(cri)Afirmada AAA(cri)
ENac CP F1+(cri)Afirmada F1+(cri)
senior
unsecured ENac LP AAA(cri)Afirmada AAA(cri)
BANCO DAVIVIENDA: S&P Affirms 'BB+/B' ICRs, Outlook Negative
------------------------------------------------------------
S&P Global Ratings affirmed its 'BB+/B' long- and short-term issuer
credit ratings on Banco Davivienda S.A. The outlook on the
long-term rating remains negative.
On Jan. 6, 2025, Banco Davivienda S.A. announced that it entered
into an agreement to incorporate Scotiabank's operations in
Colombia, Costa Rica, and Panama, subject to regulatory approval.
S&P said, "We expect the transaction to be approved by regulators
in respective countries and completed in the second half of 2025.
Scotiabank is transferring its operations in three Latin American
countries to Davivienda in exchange for an approximate 20%
ownership stake in the new combined operations and participation on
the board of directors.
"In our view, Davivienda could face execution risks during the
integration, while continue working on improving its asset quality
metrics and profitability. Positively, Davivienda could expand
further its presence in Central America and Colombia, strengthening
its business diversification and its resilience to withstand
adverse operating conditions.
"In our view, once regulators approve the transaction and
operations are fully integrated, Davivienda's market share and
geographic diversification will increase, improving its business
resilience. Our assessment of the bank's business position already
incorporates Davivienda's ability to withstand adverse operating
conditions better than its domestic and regional peers. We estimate
that Davivienda--the second-largest Colombian bank--will increase
its market share in the country to roughly 19% in terms of gross
loans and to 17% in deposits, from 15% and 14%, respectively. The
bank's market share by loans will also rise in Costa Rica and
Panama to 13% and 5%, respectively, nearly doubling and tripling
its presence in those countries.
"We expect operating revenue to continue improving for the next 12
months. In our opinion, its business diversity and competitive
advantages should enable the bank to recover its growth dynamism in
the two next years.
"If the transaction is approved, we estimate that Davivienda's
total assets could jump about 40%, with S&P risk-weighted assets
likely increasing proportionally, as new assets are in countries
with very similar economic risks to those in which Davivienda
currently operates. Additionally, total adjusted capital (TAC)
could rise similarly, due to the new capital coming from
Scotiabank, coupled with a modest dividend payout ratio. Therefore,
we estimate Davivienda's RAC ratio will be between 5.8% and 6.2% in
2025-2026. We consider this range slightly higher than those of
Colombian peers but lower than those of regional banks.
"Despite improved profitability during 2024, we expect it will
remain below historical levels during 2025, due to still high cost
of risk than historical levels. Moreover, we don't anticipate
significant improvements after the integration, since Scotiabank's
profitability in Colombia is subpar and its Central American
operations will represent a modest proportion of Davivienda's
consolidated results. However, for 2026, we expect higher operating
revenue and some improved efficiencies that will raise
profitability.
"Given that Colombian operations will still account for more than
70% of the bank's total loans and that Scotiabank Colombia's asset
quality metrics are similar to Davivienda's, we expect asset
quality will remain pressured. In our view, Davivienda's
nonperforming assets and net charge-offs will be 4.0%-4.7% and
3.7%-4.8%, respectively, during 2025. These ratios will be above
our expectation for the Colombian banking system's averages of 3.4%
and 2.9%, respectively. Additionally, we estimate the bank's
reserves coverage will remain below 100%, which is lower than its
historical level of 110% (excluding collaterals) and those of its
domestic peers."
Davivienda continues working to reverse its asset quality
deterioration by strengthening its origination practices and
shrinking its personal loan portfolio, among other measures, which
have already improved its consumer loan portfolio quality. However,
S&P believes adverse economic conditions and the uncertainty over
the government's economic policies--including the implementation of
ambitious social reforms--could impair clients' payment capacity
and weaken credit demand, slowing Davivienda's asset quality
recovery.
S&P said, "We do not anticipate a significant change in
Davivienda's funding structure after the integration, as both banks
primarily fund their operations through wholesale deposits. In our
view, Davivienda's customer deposits will continue accounting for
more than 80% of the funding base, while the rest will consist of
market debt, credit lines, and repurchase agreements. In this
sense, we expect the bank to maintain its stable funding ratio
slightly above 100%.
"Although wholesale bank deposits are less stable under stress
conditions, in our view, the bank has maintained long-lasting
relationships with these depositors, and their share of the deposit
base is in line with the Colombian banking system average. On the
other hand, we consider that liquidity will remain healthy, mainly
consisting of cash and equivalents, and an investment portfolio
primarily allocated in government securities. Moreover, we consider
its refinancing risk manageable, given Davivienda's comfortable
maturity profile coupled with very low financing needs for
Scotiabank's operations. Therefore, we expect the bank's broad
liquid assets to cover comfortably its short-term funding needs in
the next 12 months.
"We expect the bank will maintain its long-term strategy of green
and social financing. The bank aims for around 30% of its total
loan portfolio to focus on ESG lending by 2030. However, both
factors don't influence its credit quality more than those of
peers. Finally, in our opinion, the bank has clear governance
practices and standards, which comply with the regulatory
frameworks of the different jurisdiction in which Davivienda
operates. If the transaction is approved, we consider Scotiabank's
operations will follow Davivienda's ESG plan."
TERMOCANDELARIA POWER: S&P Withdraws 'BB' Rating on 2029 Bond
-------------------------------------------------------------
S&P Global Ratings withdrew its 'BB' issue rating on
Termocandelaria Power S.A.'s bond due 2029 at the issuer's request.
This follows the company's September 2024 issuance of a seven-year
$425 million bond maturing in 2031. Termocandelaria used these
proceeds to refinance the 2029 bond (with a tender participation of
88.14%). S&P continues to have a 'BB' issuer credit rating on
Termocandelaria with the stable outlook and a 'BB' issue rating on
its 2031 bond.
=============
J A M A I C A
=============
JAMAICA: 2024 Inflation Hits Six-Year Low
-----------------------------------------
Dashan Hendricks at Jamaica Observer reports that JAMAICA'S
inflation rate dropped to 5 per cent in 2024, the lowest annual
reading since 2018, when it stood at 2.4 per cent, according to a
report published by the Statistical Institute of Jamaica (Statin).
The rate retreated from 6.9 per cent in 2023 and a 10-year peak of
9.4 per cent in 2022, as the Bank of Jamaica maintained price gains
within its 4-6 per cent target range, according to Jamaica
Observer. Yet while inflation has moderated compared to previous
years, rising costs in essential goods like food and housing remain
the main pressure points for households in 2024, the report notes.
Food prices rose 8.1 per cent in December from a year earlier,
driven by higher costs for fruits, vegetables, and pulses, the
report notes. Items such as bananas, tomatoes and plantains saw
particularly sharp increases in 2024, the report relays.
Housing-related expenses also increased, influenced by higher
rental costs and electricity rates, the report discloses.
The 'Restaurants and Accommodation Services' division saw a 4 per
cent increase in prices over the year ending December 2024, the
report says. This rise was primarily driven by higher costs for
meals purchased from fast food outlets, street vendors, and
cookshops, the report discloses. Transport costs eased due to
lower petrol prices, providing some relief to overall inflationary
pressures, the report says. Other categories, including health
services, restaurants, and personal care products, experienced
moderate price increases over the year, the report notes.
The Bank of Jamaica expects inflation to remain within its target
range of 4-6 per cent over the next two years, with occasional
temporary dips below 4 per cent during some months in 2024 and
2025, according to minutes from its December Monetary Policy
Committee meeting, the report relays. These dips are attributed to
lower transport-related costs and agricultural prices, the report
notes.
Reflecting this outlook, the central bank revised its inflation
forecast for the two-year period starting November 2024 downward to
an average of 5.0 per cent, compared to the previous projection of
6.4 per cent, the report relays. The revision reflects easing
demand pressures, reduced inflation expectations, and a slower pace
of currency depreciation, the report says. While the outlook
remains optimistic, the breaches below the lower end of the target
are expected to be brief, with inflation generally anchored within
the target range over the medium term, the report notes.
Still, the central bank warns that its fight to maintain price
increases within its mandated range could be challenged in the
coming months, the report discloses. It cited reduced global
inventory, geopolitical tensions, and US-China trade uncertainties
as factors that could drive grain prices above projections, the
report says.
Domestic agricultural disruptions also threaten price stability, it
noted, with crop production recovery delayed until March 2025 due
to Hurricane Beryl and Tropical Storm Rafael, the report relays.
This delay has already fuelled higher-than-expected inflationary
pressures in the December 2024 quarter, the report notes.
In addition, it pointed out that potential changes in US economic
policies may exert upward pressure on domestic inflation, the
report discloses. The MPC emphasised the importance of maintaining
foreign exchange market stability to anchor inflation expectations
amidst these risks, 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&P
Global 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: Accepts 31 Bids for 25-year Benchmark Investment Note
--------------------------------------------------------------
RJR News reports that the Jamaican government says 85 bids valued
at $16.58 billion were submitted for the $9 billion it wanted from
the issuance of a 25-year, 12.25% per annum benchmark investment
note. The instrument matures in 2050.
The government, however, only accepted 31 bids and allocated $5.4
billion to help fund this year's $1.38 trillion budget, according
to RJR News.
Meanwhile, it also says 159 bids valued at $20.27 billion were
submitted for the $7 billion it wanted from the 10% per annum
12-year benchmark investment note, the report notes. But it only
accepted 55 bids for the full $7 billion, the report relays.
Additionally, 179 bids valued at $24.83 billion were obtained for
the $6 billion it wanted to take in from the 3-year, 10% per annum
benchmark investment note, the report notes. Only 131 bids were
accepted, 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&P
Global 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: Urges Stronger Private Sector Collaboration
----------------------------------------------------
RJR News reports that Jamaica Minister of Industry, Investment, and
Commerce, Senator Aubyn Hill has called for the private sector to
deepen its engagement with the Ministry in shaping policies that
drive economic growth and national development.
He made the call at the post cabinet press briefing where he
emphasised the critical role of public-private partnerships in
addressing economic challenges and seizing emerging opportunities
for Jamaicans, according to RJR News.
The Minister said to achieve sustainable growth in accordance with
the ASPIRE strategy, the voices of private sector stakeholders must
be at the heart of the policy-making process, the report notes.
He says the Ministry of Industry, Investment, and Commerce will
continue to create an enabling environment that fosters innovation,
entrepreneurship, and investment for the business community and
Jamaica, 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&P
Global 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 U E R T O R I C O
=====================
NUGEN GROUP: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Nugen Group, Incorporated
Urb. Roosevelt
464 Calle Ing. Jose. A Canals
San Juan, PR 00918
Business Description: The Debtor operates within the Special Food
Services industry.
Chapter 11 Petition Date: January 9, 2025
Court: United States Bankruptcy Court
District of Puerto Rico
Case No.: 25-00045
Debtor's Counsel: Alexis Fuentes-Hernandez, Esq.
FUENTES LAW OFFICES, LLC
P.O. Box 9022726
San Juan PR 00902-2726
Tel: (787) 722-5215
E-mail: fuenteslaw@icloud.com
Total Assets: $700,000
Total Liabilities: $1,909,827
The petition was signed by Gerardo D. Navarro as president.
A full-text copy of the petition, which includes a list of the
Debtor's 20 largest unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/APZDOZA/NUGEN_GROUP_INCORPORATED__prbke-25-00045__0001.0.pdf?mcid=tGE4TAMA
NUGEN GROUP: Sec. 341(a) Meeting of Creditors on February 10
------------------------------------------------------------
On January 9, 2025, Nugen Group Incorporated filed Chapter 11
protection in the U.S. Bankruptcy Court for the District of Puerto
Rico.
According to court filing, the Debtor reports between $1 million
and $10 million in debt owed to 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
A meeting of creditors under Sec. 341(a) to be held on February 10,
2025 at 11:00 AM via Telephonic Conference Information for
AUST/Trial Attys.
About Nugen Group Incorporated
Nugen Group Incorporated is a Puerto Rico-based food services
company operating in San Juan.
Nugen Group Incorporated sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.P.R. Case No. 25-00045) on January 9,
2025. In its petition, the Debtor reports estimated assets between
$500,000 and $1 million and estimated liabilities between $1
million and $10 million.
Alexis Fuentes-Hernandez of Fuentes Law Offices, LLC represents the
Debtor as counsel.
*********
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.
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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contact Peter A. Chapman at 215-945-7000.
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