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

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

          Friday, January 24, 2025, Vol. 26, No. 18

                           Headlines



B R A Z I L

AGROGALAXY: Drops as Distress-Related Costs Boost Loss
GOL LINHAS: In Talks w/ Global Airlines as Part of Bankruptcy Exit
MINAS GERAIS: Moody's Alters Outlook on 'B1' Issuer Rating to Pos.


C O L O M B I A

COLOMBIA: Colombian Peso Falters Amid Trump's Tariff Uncertainty


J A M A I C A

JAMAICA: Unemployment Rate Falls to Record 3.5%, STATIN Says


P U E R T O   R I C O

IGLESIA ESCUELA: Seeks Approval to Tap Jose O. Ayala as Accountant


U R U G U A Y

ARCOS DORADOS: Moody's Affirms 'Ba1' CFR, Outlook Remains Stable

                           - - - - -


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B R A Z I L
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AGROGALAXY: Drops as Distress-Related Costs Boost Loss
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globalinsolvency.com, citing Bloomberg News, reports that
AgroGalaxy Participacoes SA, a Brazilian agricultural supplies
retailer that sought creditor protection last year, plunged the
most in more than a month as its third-quarter loss widened because
of expenses related to the bankruptcy process.

The loss was 1.6 billion Brazilian reais (US$265 million), roughly
18 times its loss a year earlier, the company said, according to
globalinsolvency.com.  AgroGalaxy had postponed the earnings
release twice, the report notes.


GOL LINHAS: In Talks w/ Global Airlines as Part of Bankruptcy Exit
------------------------------------------------------------------
globalinsolvency.com, citing Reuters, reports that global airlines
are in talks with Gol Linhas to invest in the Brazilian airline,
which is undergoing Chapter 11 bankruptcy proceedings in the U.S.,
local newspaper Valor Economico reported.

The report mentions U.S.-based companies United Airlines and
American Airlines, as well as European firms Air France-KLM,
International Airlines Group and Lufthansa Group among the groups
in talks with Gol, according to globalinsolvency.com.

                  About Gol Linhas

GOL Linhas Aereas Inteligentes S.A. provides scheduled and
non-scheduled air transportation services for passengers and cargo;
and maintenance services for aircraft and components in Brazil and
internationally. The company offers Smiles, a frequent-flyerprogram
to approximately 20.5 million members, allowing clients to
accumulate and redeem miles. It operates a fleet of 146 Boeing 737
aircraft with 674 daily flights. The company was founded in 2000
and is headquartered in Sao Paulo, Brazil.

GOL Linhas Aereas Inteligentes S.A. and its affiliates and its
subsidiaries voluntarily filed for Chapter 11 protection (Bankr.
S.D.N.Y. Lead Case No. 24-10118) on Jan. 25, 2024.

GOL Linhas estimated $1 billion to $10 billion in assets as of the
bankruptcy filing.

The Debtors tapped Milbank LLP as counsel, Seabury Securities LLC
as restructuring advisor, financial advisor and investment banker,
Alixpartners, LLP, as financial advisor, and HUGHES Hubbard & Reed
LLP as aviation related counsel. Kroll Restructuring Administration
LLC is the claims agent.


MINAS GERAIS: Moody's Alters Outlook on 'B1' Issuer Rating to Pos.
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Moody's Ratings has upgraded the State of Minas Gerais' baseline
credit assessment (BCA) to caa1 from caa2, affirmed its B1 issuer
ratings and changed its outlook to positive from stable.

RATINGS RATIONALE

The upgrade of the BCA to caa1 from caa2 follows the state's formal
adhesion to the federal government's fiscal recovery regime (RRF)
as defined in the Brazilian complementary laws 159 and 178, which
allow the states in the country to rebuild their fiscal equilibrium
through the reprofiling of the state's obligations with the federal
government. Within this process, Minas Gerais also formally agreed
on some fiscal consolidation measures to improve the state's
revenue collections and reduce its recurring expenses. The formal
adhesion to the RFF, which Moody's view as an attribute of Moody's
governance assessment of the state, anchors the state's ongoing
austerity measures and decreases the risk that such measures will
be discontinued by future administrations. It also restructures the
debt repayment schedule, with an important level of debt servicing
to be provided by the funds raised through the privatization of
Codemig, while formalizing the resumption of the state's debt
payment autonomy. Nonetheless, there remains a high level of
execution risk that Minas Gerais will provide timely debt service.

The affirmation of the B1 issuer ratings reflects a combination of
the caa1 BCA along with Moody's assumption of a high level of
extraordinary support from the Government of Brazil (Brazil, Ba1
positive). Brazil has serviced most of Minas Gerais' debt since
2018 and Moody's expect this will continue, not only because of
Brazil's irrevocable and unconditional guarantees on the state
debt, but also since the state accounts for 9% of the national
gross domestic product, highlighting its importance to the national
economy.

Additionally, the affirmation of the B1 issuer ratings reflects
Minas Gerais' high debt burden, large personnel expenses structure
and pension obligations will remain key credit challenges. As such,
meaningful improvements towards establishing a sustainable
operating balance and debt structure will take years to be fully
implemented.

The positive outlook on the State of Minas Gerais' rating reflects
Moody's expectations that further progress towards a reduction in
the state's debt burden, combined with improvements in fiscal
flexibility, could be made over the next 12 to 18 months. In
January, Brazil's central government approved a new program
(Propag) to facilitate the repayment of states' debt with
receivables from state owned companies, royalties or asset
transfers, which allows for a longer repayment horizon, along with
decreased interest rates on the outstanding debt (under some
conditions). Under this program, states could exchange their
ownership interest in state-owned companies for an
equivalent-amount reduction on its outstanding debt with the
sovereign government, leading to a meaningful reduction in their
outstanding debt balance and future interest burden. Minas Gerais'
state-owned companies include Companhia de Desenvolvimento
Econômico de Minas Gerais, Companhia Energetica de Minas Gerais -
CEMIG (Ba1 Stable), and Companhia de Saneamento de Minas Gerais
COPASA. Brazilian states' adhesion to the Propag program are
expected to be completed through December 2025.

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

A reduction in the state's debt burden or material improvements in
the conditions for debt repayments significantly reducing the
probability of future defaults could lead to positive credit
pressures. A sustained improvement in key financial metrics that
provides for improved capacity to make debt service payments could
also lead to upward credit pressures. Given the significant uplift
provided to Minas Gerais' ratings already by Brazil, an upgrade of
Brazil's sovereign ratings would not necessarily lead to an upgrade
of Minas Gerais' issuer ratings, although it would exert positive
pressure.

A ratings downgrade is unlikely at this point given the positive
outlook. However, a downgrade of the sovereign rating or a
deterioration in Minas Gerais' solvency profile that results in
sustained cash financing deficits, combined with diminished
assumptions of support from the federal government, could lead to a
rating downgrade.

The principal methodology used in these ratings was Regional and
Local Governments published in May 2024.




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C O L O M B I A
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COLOMBIA: Colombian Peso Falters Amid Trump's Tariff Uncertainty
----------------------------------------------------------------
Rio Times Online reports that the Colombian peso weakened on as
markets grappled with President Donald Trump's vague tariff
threats.  The peso closed at COP4,259.90 against the US dollar,
down COP17.07 from the previous day's official rate of
COP4,307.07.

Trading saw the peso swing between COP4,254.50 and COP4,297.50.
Investors executed 19 trades totaling US$1.4 million, reflecting
cautious sentiment, according to Rio Times Online.

Trump's recent comments about potential tariffs on various
countries have unsettled global markets.  He mentioned a possible
10% levy on Chinese imports and 25% on Mexican and Canadian goods
starting February 1, the report notes.

The peso‘s decline mirrors broader Latin American currency
trends.  While Colombia wasn't directly named, the region remains
sensitive to US trade policy shifts, the report relays.

Experts warn that Trump's protectionist stance could reshape global
trade patterns, indirectly impacting Colombia's export-driven
sectors. Market participants now await concrete policy
announcements from the Trump administration, the report discloses.

The peso's stability in the coming weeks will likely hinge on both
domestic factors and international reactions to US trade decisions,
the report says.  Colombian businesses and investors must stay
alert to these developments, the report notes.

The currency's performance serves as a key indicator of
Colombia‘s economic resilience in 2025. As external pressures
mount, the peso's ability to hold ground will be closely watched,
the report discloses.

The evolving trade landscape presents both challenges and
opportunities for Colombia's economy. Trump's first days in office
have surprisingly boosted investor confidence.

Markets are focusing on his pro-business policies rather than
protectionist rhetoric, the report says.  However, the peso's
recent dip suggests lingering concerns about potential trade
disruptions, the report relays.

As the situation unfolds, Colombia's economic policymakers face the
task of navigating these uncertain waters, the report notes.  Their
decisions in response to global trade shifts will play a crucial
role in shaping the peso's trajectory and the country's economic
outlook for 2025, the report adds.

As reported in the Troubled Company Reporter in August 2024, Fitch
Ratings has affirmed Colombia's Long-Term Foreign Currency Issuer
Default Rating (IDR) at 'BB+' with a Stable Rating Outlook.




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J A M A I C A
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JAMAICA: Unemployment Rate Falls to Record 3.5%, STATIN Says
------------------------------------------------------------
Jamaica Observer reports that Jamaica's unemployment rate for
October 2024 is at a new record low of 3.5 per cent.  The previous
record was 3.6 per cent which was recorded in July 2024, according
to Jamaica Observer.  The information is contained in the
Statistical Institute of Jamaica's (STATIN) October 2024 Labour
Force Survey (LFS), the report notes.

According to the LFS, the total labour force in October 2024 was
1,468,300 individuals - 789,100 males (53.7 per cent) and 679,200
females (46.3 per cent), the report relays.

STATIN said the overall labour force participation rate was 68.1
per cent.  Males had a higher participation rate of 74.5 per cent
compared to 61.9 per cent for females, the report discloses.

The total number of employed individuals was 1,417,000, with males
comprising more than half (768,500 or 54.2 per cent) of the
employed labour force, the report says.  Of those employed, 22,900
individuals (1.6 per cent) were underemployed, which is, working
part-time while wanting additional hours, the report relays.

The largest occupation group was 'Services and Sales Workers' with
343,400 employed individuals, accounting for nearly one-fourth
(24.2 per cent) of the total employed population, the report notes.
This group had the largest number of employed females, 224,600;
nearly twice as many as the 118,800 males, the report discloses.

The second largest occupation group was 'Skilled Agricultural,
Forestry and Fisheries Workers' with 201,400 workers, followed by
'Elementary Occupations' with 176,200 employed people, the report
says.  The occupation group 'Craft and Related Trades Workers' had
the largest employment of males, 154,200, the report relays.

The largest employer among industry groups was 'Wholesale and
Retail Trade; Repair of Motor Vehicles and Motorcycles', employing
265,600 individuals, representing 18.7 per cent of the total
workforce, the report discloses.  There were 144,700 females
employed in this industry group, accounting for 54.5 per cent, the
report notes.

The second largest industry group was 'Agriculture, Forestry, and
Fishing', which employed 201,400 people, with males accounting for
73.7 per cent of employees in this group, the report relays.

STATIN said the total number of unemployed individuals in October
2024 was 51,300, with females making up 60.0 per cent, the report
discloses.  Among the unemployed, 21,600 were youth aged 15 to 24
years, with females accounting for 12,000 or 55.6 per cent of this
category of workers, the report relays.

Overall, the female unemployment rate was higher at 4.5 per cent,
while the unemployment rate for males was 2.6 per cent, the report
relays.  The youth unemployment rate was 11.0 per cent, the report
discloses.

Of significance is that there were 687,500 individuals outside the
labour force in October 2024, with more females (417,800) than
males (269,700) within this group, the report notes.  Of those
outside the labour force, 29,400 or 4.3 per cent were classified as
part of the potential labour force which includes individuals
seeking employment but not available to work, or available for work
but not looking for a job, the report says.

There were 294,300 young people (aged 15 to 24 years) outside the
labour force, accounting for 42.8 per cent of this group, 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.




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P U E R T O   R I C O
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IGLESIA ESCUELA: Seeks Approval to Tap Jose O. Ayala as Accountant
------------------------------------------------------------------
Iglesia Escuela Bautista Castillo Fuerte Inc. seeks approval from
the U.S. Bankruptcy Court for the District of Puerto Rico to employ
Jose O. Ayala, CPA, MBA, an accountant practicing in Toa Alta,
Puerto Rico.

The accountant will render these services:

     (a) assist the Debtor in gathering and compiling the
         necessary information required to file the Chapter 11
         petition and court required information and schedules;

     (b) provide consulting services and assist the Debtor and
         its attorney in documenting the reorganization plan
         to be filed in the case;

     (c) prepare monthly operating reports;

     (d) prepare all necessary tax returns to ascertain the
         Debtor is in full compliance with its fiscal
         responsibilities; and

     (e) assist the Debtor and its attorney in all matters
         related to court instructions, transactions, and
         or information requests of an accounting or
         financial nature.

The accountant's hourly rates are as follows:

     Jose Ayala, CPA, MBA     $190
     Senior Accountant        $125
     Staff Accountant          $75

In addition, the accountant will seek reimbursement for expenses
incurred.

Mr. Ayala also requires a retainer of $2,000 for this case.

Mr. Ayala disclosed in a court filing that he is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.

The accountant can be reached at:

     Jose O. Ayala, CPA, MBA
     Urb Ciudad Jardin III
     Toa Alta, PR 00953
     Telephone: (939) 438-0254
     Email: jayalacpa@gmail.com

          About Iglesia Escuela Bautista Castillo Fuerte Inc.

Iglesia Escuela Bautista Castillo Fuerte Inc. sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No.
24-05680) on December 30, 2024, listing under $1 million in both
assets and liabilities.

The Debtor tapped C. Conde & Associates as counsel and Jose O.
Ayala, CPA, MBA as accountant.




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U R U G U A Y
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ARCOS DORADOS: Moody's Affirms 'Ba1' CFR, Outlook Remains Stable
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Moody's Ratings has affirmed Arcos Dorados Holdings Inc.'s (Arcos
Dorados) Ba1 corporate family rating and senior unsecured notes'
rating. Moody's also affirmed Arcos Dorados B.V.'s backed senior
unsecured notes' Ba1 rating, which are fully and unconditionally
guaranteed by its parent, Arcos Dorados. At the same time, Moody's
have assigned a Ba1 rating to the proposed backed senior unsecured
notes (benchmark size) to be issued by Arcos Dorados B.V., also
fully and unconditionally guaranteed by its parent, Arcos Dorados.
The outlook remains stable for all ratings.

The transaction will have no material effect on leverage as the
company will use the net proceeds of the notes to fund the tender
offer conducted by Arcos Dorados through intercompany arrangements,
which will then use the proceeds to pay for the outstanding 5.875%
senior notes due 2027 validly tendered, and for general corporate
purposes. The proposed notes will rank pari passu with all other
unsecured and unsubordinated debt obligations of the guarantors.

The rating of the proposed notes assumes that the final transaction
documents will not be materially different from draft legal
documentation reviewed by us to date and that these agreements are
legally valid, binding and enforceable.

RATINGS RATIONALE

Arcos Dorados credit profile reflects the company's solid market
position in Latin America as McDonald's Corporation's (McDonald's,
Baa1 stable) master franchisee, and its size and scale as the
largest independent McDonald's franchisee worldwide by sales and
number of restaurants (2,410 as of September 30, 2024, 71% company
operated and 29% sub-franchised). The rating is supported by the
geographic diversification of the company's solid restaurant base
throughout Latin America; and by Arcos Dorados' good liquidity.

Arcos Dorados' liquidity is supported by $120 million in cash and
short-term investments as of September 30, 2024, about half of
which was in US dollars. The company also has access to unused $75
million in committed credit facilities. These resources compare
with its $61 million short-term debt (including leases) as of the
same date. Additionally, Moody's expect the company's cash from
operations will be approximately $500 million in 2025. This cash
flow will balance the company's projected capital expenditure of
around $300-350 million annually during the same period. The
proposed notes issuance will expand the company's funding sources
and extend its debt maturity profile to support its capital
spending program in 2025.

In late 2024, Arcos Dorados Holdings Inc. announced the renewal of
its Master Franchise Agreement (MFA) with McDonald's, effective
January 1, 2025, for a term of 20 years, with an option for a
further 20-year renewal beginning January 1, 2045, which reinforces
McDonald's commitment with the company and the region.

The ratings are mainly constrained by Arcos Dorados' concentration
of cash flow in a limited number of markets, with Brazil serving as
the most significant contributor to both revenue and EBITDA,
generating 40% of total revenue and 58% of total reported EBITDA.
Other limiting factors include an intense competitive environment,
moderate exposure to foreign currency risks, fluctuations in
consumer purchasing power and preferences, and inflation-induced
cost pressures on labor and raw materials.

Arcos Dorados' competitive edge in the region is underscored by its
restaurant portfolio. Approximately half of its restaurants are
free-standing units (1,275 or 53% as of September 2024), a feature
that competitors would find difficult to replicate. Free-standing
restaurants have proven to be a key advantage in adapting to
evolving customer preferences because they offer a mix of takeout,
drive-thru, and delivery services, options that enhance restaurant
sales. The company's 4Ds' strategy (Digital, Delivery, Drive-thru
and Development) has effectively capitalized on the flexibility of
its restaurant portfolio. As of Q3 2024, digital sales had
increased by 16% year-over-year and made up 58% of Arcos Dorados
systemwide sales. Brazil was leading the digitalization with
digital sales penetration at 70%. Regarding the fourth "D",
Development, as of September 2024, 1,560 or 65% of total
restaurants were" Experience of The Future" restaurants (EOTF),
which include key physical upgrades and digital capabilities.

Arcos Dorados is set to benefit from steady revenue growth in the
coming years, as the company continues to expand its restaurant
network, particularly in underpenetrated markets across Latin
America. Complementing this is a robust focus on digital sales and
delivery services, part of the successful 4Ds' strategy. As the
consumer shift towards online ordering and delivery continues,
Arcos Dorados is well-positioned to capitalize on this trend. The
company's commitment to menu innovation, offering localized food
options that cater to Latin American tastes, is a key driver in
customer attraction and retention. Furthermore, the company's
emphasis on operational efficiency and cost management, including
optimizing supply chain management and leveraging technology to
enhance customer service, bolsters sales growth.

Arcos Dorados' Moody's adjusted gross debt to EBITDA was 2.6x for
the twelve months ending September 2024. Moody's expect that good
operational performance will keep this ratio within the 2.5x-3.0x
range through 2024-2025, despite currency depreciation, especially
in Brazil. In this regard, operating across various countries in
Latin America, Arcos Dorados' revenue and costs are subject to the
impacts of currency depreciation when converted into its reporting
currency, the US dollar. Periods of pronounced currency
depreciation can adversely affect the company's US dollar revenue.
However, the impact on its operating margin is less severe, as a
significant portion of the cost of goods sold, sales, and general
and administrative expenses are denominated in local currencies.
Furthermore, to mitigate this risk, Arcos Dorados hedges a part of
its US dollar-denominated cost of goods sold, specifically those
related to food and paper imports.

Arcos Dorados' stable outlook reflects Moody's expectation of
sustained good operating performance and liquidity over the next
12-18 months. Arcos Dorados will continue to pursue growth across
the region under the investment requirements set by the Master
Franchise Agreement (MFA) with McDonald's and benefit from
increased operating efficiency.

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

Positive pressure on the ratings would require Arcos Dorados to
perform in a more resilient manner regardless of the underlying
macroeconomic environment and consumption patterns, particularly in
Brazil. An upgrade would require the company to achieve more stable
earnings across economic cycles and consumer preferences,
maintaining lease-adjusted debt/EBITDA is below 2.5x; adjusted
retained cash flow (RCF)/debt above 30%; and EBIT to interest
expense above 4.0x. An upward rating movement would be subject to
the relative position to the Government of Brazil rating.

The ratings could be downgraded if there is a deterioration in
Arcos Dorados' liquidity and operational performance. Specifically,
Moody's would downgrade the ratings if the company's
Moody's-adjusted gross debt/EBITDA remains above 3.5x, RCF/debt
below 20% and EBIT to interest expense below 3.0x on a sustained
basis. In addition, given the high concentration of operations in
Brazil, a downgrade of Brazil's sovereign rating could strain Arcos
Dorados' ratings.

The principal methodology used in these ratings was Restaurants
published in August 2021.

Headquartered in Uruguay, Arcos Dorados Holdings Inc. (Arcos
Dorados) is the leading quick-service restaurant operator in Latin
America and the Caribbean. It is also McDonald's largest
independent franchisee globally in terms of systemwide sales and
restaurant count, with around 6.0% share of McDonald's total
systemwide restaurants as of year-end 2023. The company has the
exclusive rights to own, operate and grant franchises of McDonald's
restaurants in 20 Latin American and Caribbean countries.



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

Troubled Company Reporter-Latin America is a daily newsletter
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