/raid1/www/Hosts/bankrupt/TCRLA_Public/250409.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
Wednesday, April 9, 2025, Vol. 26, No. 71
Headlines
A R G E N T I N A
ARGENTINA: IMF Deal Advances Fail to Clear FX Haze
ARGENTINA: Milei Looks for IMF Support, Trade Deal From Trump
ARGENTINA: Trump Sparks Trade War With Tariffs; 10% for Country
B R A Z I L
BANCO DE BRASILIA: Fitch Puts 'B-' Long-Term IDR on Watch Evolving
BANCO TOPAZIO: Moody's Affirms B1 LT Deposit Rating, Outlook Stable
BRAVA ENERGIA: S&P Affirms 'B+' ICR, Outlook Positive
J A M A I C A
JAMAICA: Only 282 Bids for Fixed Rate Cert. of Deposits Accepted
M E X I C O
GRUPO POSADAS: Taps Ritch Mueller y Nicolau as Mexican Counsel
T R I N I D A D A N D T O B A G O
TRINIDAD & TOBAGO: Import Duty on Cement Cut to 0%
[] TRINIDAD & TOBAGO: First Country to Enter CFATF
X X X X X X X X
LATAM: Trump's Tariffs Threaten Region Steel industry
- - - - -
=================
A R G E N T I N A
=================
ARGENTINA: IMF Deal Advances Fail to Clear FX Haze
--------------------------------------------------
globalinsolvency.com, citing Reuters, reports that Argentina and
the International Monetary Fund may be on the home stretch over a
$20 billion new program, but the deal has so far failed to dispel
traders' anxiety and a haze of uncertainty around the outlook for
the country's peso currency.
The South American nation, under libertarian President Javier
Milei, is trying to rebuild investor confidence and bolster
depleted foreign currency reserves after years of overspending that
left the grains producer locked out of global markets and battling
to stabilize its finances, according to the report.
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 Feb. 17, 2025, S&P Global Ratings lowered its local currency
sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and
its national scale rating to 'SD' from 'raB+'. At the same time,
S&P affirmed its 'CCC/C' foreign currency sovereign credit ratings
on Argentina. The outlook on the long-term foreign currency rating
remains stable.
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.
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: Milei Looks for IMF Support, Trade Deal From Trump
-------------------------------------------------------------
Buenos Aires Times reports that President Javier Milei sought
crucial support from US President Donald Trump as he attended an
event in Florida.
On a whistlestop trip to the United States - which saw the head of
state spend less than 24 hours in North America - Milei visited
Trump's Mar-a-Lago resort to receive an award, according to Buenos
Aires Times.
He also intended to share a brief unscheduled meeting with the
Republican leader, though at press time, no confirmation of their
encounter had been received, the report notes.
Despite the festivities, the real purpose of Milei's visit was to
shore up support for Argentina's bid for a new financing program
with the International Monetary Fund and reiterate his government's
desire for a free-trade deal with Washington, the report relays.
The trip came a day after Trump unveiled sweeping tariffs for
almost every nation on earth in a move he branded 'Liberation
Day'," the report notes.
Argentina, despite Milei's apparent closeness to Trump, did not
escape - all exports to the United States will now face a
10-percent tariff, the report says.
Frequent Flyer
Milei's jaunt to Florida on the ARG-01 presidential plane is the
10th trip to the United States he has taken since his inauguration
in December 2023, the report recalls.
He was joined by Presidential Chief-of-Staff Karina Milei, Economy
Minister Luis Caputo on the flight, with Foreign Minister Gerardo
Werthein meeting up with the team in Florida, the report notes.
During his appearance at the "American Patriots Gala" at
Mar-a-Lago, Milei was honoured with the "Lion of Liberty" award
from the We Fund The Blue Foundation, in recognition of "his
unwavering dedication to freedom, market economics and conservative
values," the report says.
Another Argentine, businesswoman, television host and producer
Natalia Denegri, was also given a prize, the report discloses.
Confirmation of facetime with Trump did not arrive prior to the
trip, though Milei was expected to have "an informal meeting" with
the US leader, according to Presidential Spokesperson Manuel
Adorni, the report says.
He said the trip had been planned for another date, though it had
to be rescheduled due to "agenda issues," the report notes.
"In addition to receiving an award in honour of his efforts in the
fight against terrorism, illegal immigration and the strengthening
of the alliance between Argentina and the United States, he will be
meeting with leading international figures related to security and
US policy," the official said at a press conference, the report
discloses.
In recent days, Werthein has been making Argentina's case to top US
officials. He met with US Secretary of State Marco Rubio for talks
about "Argentina's achievements" under Milei, the report says.
He also met with two top US officials who oversee tariff issues --
a fact Milei implied on social media illustrated his government's
ties with Washington, the report relays.
Funds
Backing from Trump could strengthen Argentina's position vis-a-vis
the IMF, at a time when Milei needs key backing for his economic
programme ahead of crunch midterm elections in October, the report
discloses.
Another sign of international support arrived, when the World Bank
confirmed it will disburse "a significant support package" to
Argentina over the next three years, the report says.
The institution is "working closely with President Milei and his
team to support his ambitious reform agenda," said World Bank Ajay
Banga after meeting with the president in Buenos Aires, according
to an official statement obtained by the news agency.
This assistance, the amount of which was not specified, would be in
addition to the new agreement that Argentina is seeking with the
IMF, the report relays.
Buenos Aires wants an extra US$20 billion in fresh funds to
strengthen Central Bank reserves and bolster Milei's reform
program, the report relays. This would be on top of the
US$44-billion agreement it signed with the IMF in 2018 - the
largest loan ever granted by the multilateral organization, the
report notes.
Negotiators and IMF staff are still haggling over how much of the
money Argentina will receive up front and to what extent the
government loosens currency restrictions that investors see
deterring foreign investment and overvaluing the peso, the report
discloses.
The US has the most voting power on the IMF's board (16 percent),
making Trump's support for Argentina's programme crucial to get it
over the finish line and overcome any resistance from other board
members to providing a large portion up front, the report says.
Argentina is seeking more than 40 percent of the programme - or
US$8 billion - in the first disbursement, according to Economy
Minister Luis Caputo, the report notes.
IMF Managing Director Kristalina Georgieva called Caputo's
40-percent request "reasonable" (stating: "They earned it"), while
Representative Maria Elvira Salazar, a Florida Republican, went
further, urging the US Treasury to support an initial disbursement
of US$15 billion, the report notes.
Trade
Argentina's head of state is also seeking a free-trade deal with
Washington - a move the Republican leader says he is open to, the
report relays.
"I'll consider anything," Trump told reporters at the White House
back in March, the report discloses.
Milei and Trump previously met in February on the sidelines of the
Conservative Political Action Conference's (CPAC) annual meeting in
Washington, the report notes.
They have now met four times since Trump's election victory in
November, the report relays.
The two presidents often praise each other. "I think he's a great
leader, he's doing a fantastic job," Trump said of Milei in March.
The Argentine has called his US counterpart "the president of the
most important country on the planet," 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 Feb. 17, 2025, S&P Global Ratings lowered its local currency
sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and
its national scale rating to 'SD' from 'raB+'. At the same time,
S&P affirmed its 'CCC/C' foreign currency sovereign credit ratings
on Argentina. The outlook on the long-term foreign currency rating
remains stable.
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.
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: Trump Sparks Trade War With Tariffs; 10% for Country
---------------------------------------------------------------
Buenos Aires Times reports that US President Donald Trump ignited a
potentially ruinous global trade war as he slapped 10-percent
tariffs on imports from around the world and harsh extra levies on
key trading partners.
Holding up a chart of the sweeping measures in the White House Rose
Garden, Trump unveiled particularly stinging tariffs on major trade
partners China and the European Union on what he called "Liberation
Day," according to Buenos Aires Times.
"This is one of the most important days, in my opinion, in American
history," said Trump, the report notes. "It's our declaration of
economic independence."
The announcement triggered immediate anger, with China warning the
tariffs could "endanger" global economic development, US ally
Australia blasting them as "not the act of a friend," and threats
of retaliation from around the world, the report relays.
Argentina, despite President Javier Milei's strong relationship
with the Republican leader, failed to escape: it too will face
10-percent tariffs on goods entering the United States, the report
discloses.
The move will put the sustainability of sales at risk, ramping up
the price of Argentine goods for US consumers, the report says.
Milei will hope to leverage his strategic alliance with the US
president to receive an exemption, the report relays.
The La Libertad Avanza leader has pitched heavily for a free-trade
deal with the US and hopes his ties with Trump can seal the deal,
the report discloses.
Heaviest Blows
Trump reserved some of the heaviest blows for what he called
"nations that treat us badly," according to the report. That
included an additional 34 percent on goods from superpower rival
China -- bringing the new added tariff rate there to 54 percent,
the report relays.
Beijing swiftly vowed countermeasures and called for dialogue,
warning the levies would "seriously harm" those involved. "There
is no winner in a trade war, and there is no way out for
protectionism," its commerce ministry said, the report notes.
The figure for the European Union was 20 percent. It was 24 percent
on Japan, whose trade minister called the tariffs "extremely
regrettable." For the rest, Trump said he would impose a "baseline"
tariff of 10 percent, including another key ally, Britain, the
report says.
Sweeping auto tariffs of 25 percent that Trump announced were due
to take effect, the report relays.
Trump previously imposed 25 percent charges on steel and aluminum
imports too, which will impact Argentine producers, the report
notes.
He has ordered probes into imports of copper and lumber as well,
which could lead to further duties, the report discloses.
The 78-year-old Republican brushed off fears of turmoil, insisting
that the tariffs would restore a "Golden Age" for the US economy.
"For decades, our country has been looted, pillaged, raped and
plundered by nations near and far, both friend and foe alike,"
Trump said, the report relays.
A hand-picked audience of cabinet members, as well as workers in
hard hats from industries including steel, oil and gas, whooped and
cheered as Trump promised tariffs would "make America wealthy
again," the report notes.
Reciprocal?
Trump labelled tariffs "reciprocal" but many experts say his
administration's estimates for levies placed on US imports by other
countries are wildly exaggerated, the report says.
The US president had telegraphed the move for weeks, sparking fears
of a recession at home as costs are passed on to US consumers, and
a damaging trade war abroad, the report discloses.
US Treasury Secretary Scott Bessent warned against countermeasures,
saying on Fox News: "If you retaliate, there will be escalation."
Some of the worst-hit trading partners were in Asia, including 49
percent for Cambodia, 46 percent for Vietnam and 44 percent for
military-ruled Myanmar, recently hit by a devastating earthquake,
the report says.
Cuba, Belarus, North Korea, and Russia were not affected, the
latter because it is already facing sanctions over the Ukraine war
"which preclude any meaningful trade," a White House official said,
the report relays.
Certain goods like copper, pharmaceuticals, semiconductors, lumber
and gold will not be subject to the tariffs, according to the White
House, the report discloses.
They will also reinforce fears that Trump is backing further away
from allies towards a new order based on his vision of US
supremacy, the report notes.
Regional View
Major US partners Canada and Mexico are not hit by the new tariffs,
the report says. Trump earlier imposed 25 percent tariffs on
imports from both countries, with a lower rate on Canadian energy,
and they will continue to face these duties, the report relays.
Goods entering the world's biggest economy under the
US-Mexico-Canada Agreement will still be exempted, the report
notes.
Most of the United States largest trading partners in South America
-- including Brazil, Chile, and Colombia -- were given the
10-percent levy. However, tariffs of 18 percent will apply to goods
from Nicaragua, the report discloses.
Reacting to the news, Brazil's Congress approved a so-called
"Economic Reciprocity Law" allowing the Executive to respond to the
10-percent tariffs on exports from Latin America's biggest economy,
the report says.
The law was approved unanimously by the House of Representatives
after receiving the Senate's green light, the report relays.
Brazil is the second-largest exporter of steel to the United States
after Canada, shipping four million tonnes of the metal in 2024,
the report discloses.
Colombian President Gustavo Petro said Trump had made a wrong move
in imposing the sweeping tariffs, the report relays.
"The US government now believes that by raising tariffs on its
imports in general, it can increase its own production, wealth, and
employment; in my opinion, this could be a big mistake," he said,
the report notes.
Massive Malvinas Tariffs
The world's remotest corners couldn't hide from Trump's global
tariffs -- even the uninhabited Heard and McDonald Islands, the
report relays.
The Australian territory in the sub-Antarctic Indian Ocean was
slapped with tariffs on all its exports, despite the icy
archipelago having zero residents -- other than many seals,
penguins and other birds, the report notes.
Another eye-catching inclusion in the tariffs list was the Malvinas
(Falkland) Islands, the report relays. The South Atlantic
territory -- famous for the 1982 war fought by Britain and
Argentina -- was walloped with tariffs of 41 percent on exports,
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 Feb. 17, 2025, S&P Global Ratings lowered its local currency
sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and
its national scale rating to 'SD' from 'raB+'. At the same time,
S&P affirmed its 'CCC/C' foreign currency sovereign credit ratings
on Argentina. The outlook on the long-term foreign currency rating
remains stable.
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.
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.
===========
B R A Z I L
===========
BANCO DE BRASILIA: Fitch Puts 'B-' Long-Term IDR on Watch Evolving
------------------------------------------------------------------
Fitch Ratings has placed on Rating Watch Evolving (RWE) BRB - Banco
de Brasilia SA's (BRB) 'B-' Long-Term Foreign and Local Currency
Issuer Default Ratings (IDRs) and its 'BBB+(bra)' National
Long-Term Rating. Fitch has also placed on RWE Banco Master SA's
(Master) 'B+' Long-Term Foreign and Local Currency IDRs and its
'A-(bra)' National Long-Term Rating. This action follows BRB's
announcement to acquire 49% of Master's common shares and 100% of
its preferred shares, totaling 58% of the bank's overall capital.
This follows the ongoing partial merger between BRB and Master,
which faces challenges and uncertainties regarding its completion.
This transaction and Master's ownership changes are pending
regulatory approvals and, if completed, could impact BRB and
Master's financial profiles.
Fitch will monitor the transaction's progression and assess
additional details as they become available to determine the likely
direction of the ratings. RWE indicates that the ratings could be
upgraded, downgraded or affirmed, depending on how financial and
operational trends develop following the sale announcement.
The transaction may take six months or more to be completed. Fitch
will resolve the Rating Watch upon transaction close and
confirmation of corporate and capital structure details. Fitch will
also assess BRB's credit profile and the impacts of these events in
a consolidated basis considering the acquired Master assets.
Key Rating Drivers
BRB's Ratings Driven by Shareholder Support: Prior to today's
action, BRB's ratings reflected its Viability Rating (VR) and
shareholder support from its parent, the Federal District
Government (GDF). The 'b-' VR aligned with this support assessment,
while its IDRs and national ratings reflected GDF's ability and
willingness to provide timely support. The Negative Outlook
reflected concerns about medium-term capitalization challenges and
delayed shareholder support, which have kept BRB's core equity
regulatory capitalization low.
Master´s Ratings Driven by VR: Prior to today's action, Master's
ratings benefited from business expansion and company acquisitions,
which stabilized its franchise and improved risk profile management
after periods of growth. However, the bank's asset quality remains
riskier than those of more traditional retail banks. Additionally,
concerns exist related to asset-liability management (ALM), as the
bank relies on expensive retail platform funding against a
moderately higher duration asset base.
Consolidated Structure: As part of the acquisition, BRB will lead
the prudential conglomerate, implementing governance structures
across the group. This includes strategic involvement in Master's
boards and executive committees to ensure cohesive operational and
strategic alignment.
The conglomerate resulting from the acquisition is expected to
present a consolidated balance sheet combining the operations of
the current BRB and the current Banco Master Múltiplo SA, its
subsidiaries, and Maximainvest Securitizadora Ltda. The remaining
companies of the Master Group, along with the precatory bonds,
stocks, and equity funds operations currently allocated in Master's
balance sheet, will remain excluded from the deal. Fitch's premises
consider this scenario.
Capitalization Expected to Strengthen Position: As part of the
acquisition, a capital injection will bolster BRB's capital
position and alleviate its tight common equity Tier 1 (CET1)
buffers, strengthening its market position and business model.
Strategic assumptions include leveraging Master's expertise in
handling complex financial transactions, incorporating the Will
digital banking platform to enhance BRB's technological offerings,
expanding payroll loan offerings such as Master's Credcesta
business unit, optimizing financial operations through BRB's lower
funding costs, and implementing robust governance frameworks.
Execution Risks Remain: Execution risks arise from BRB and Master
differing models. Despite these risks, potential synergies in
retail banking, product diversification, and geographic expansion
offer growth opportunities. However, if the transaction does not
proceed as planned, BRB's existing capitalization challenges could
worsen. For Master, the RWE reflects similar uncertainties
regarding the organizational structure post-acquisition.
Liquidity Strategies: Although ALM is well matched, the credit
profile remains sensitive to this risk, which has increased notably
after the deal announcement. As the liquidity provider, BRB will
leverage its advantageous funding position, with Master's funding
costs expected to decrease. While the acquisition could address
some of vulnerabilities, it also introduces uncertainties that
Fitch will evaluate as the transaction progresses.
Synergies to Enhance Financial Metrics: Fitch believes that the
consolidated prudential balance sheet of BRB and Master, presented
after the deal's completion, will show improvements, mainly marked
by improved capital ratios compared to BRB's current capitalization
metrics. This should also lead to funding costs lower than Master's
current funding profile. Additionally, Fitch anticipates potential
synergies in several business areas for both entities, which can
contribute to a more robust business model and higher total
operating income. Improvements in governance, product
diversification, and geographic expansion are also expected for the
new bank.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- If regulators block the transaction, Fitch would review the
potential impacts on the business model and liquidity/funding on
both banks;
- Fitch may also negatively review its position if the minimum and
mandatory conditions for the deal are not met.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
The ratings could change positively based on Fitch's better
evaluation of BRB´s consolidated business and financial profiles,
especially with better capitalization metrics and improved funding
structure.
ESG Considerations
BRB - Banco de Brasilia SA has an ESG Relevance Score of '4' for
Financial Transparency due to delays in the presentation of audited
financial statements, raising concerns about governance, which has
a negative impact on the credit profile, and is relevant to the
rating[s] in conjunction with other factors. The highest level of
ESG credit relevance is a score of '3', unless otherwise disclosed
in this section.
A score of '3' means ESG issues are credit-neutral or have only a
minimal credit impact on the entity, either due to their nature or
the way in which they are being managed by the entity. Fitch's ESG
Relevance Scores are not inputs in the rating process; they are an
observation on the relevance and materiality of ESG factors in the
rating decision.
Entity/Debt Rating Prior
----------- ------ -----
BRB - Banco de
Brasilia SA LT IDR B- Rating Watch On B-
ST IDR B Rating Watch On B
LC LT IDR B- Rating Watch On B-
LC ST IDR B Rating Watch On B
Natl LT BBB+(bra) Rating Watch On BBB+(bra)
Natl ST F2(bra) Rating Watch On F2(bra)
Viability b- Rating Watch On b-
Shareholder Support b- Rating Watch On b-
Banco Master
S.A. LT IDR B+ Rating Watch On B+
ST IDR B Rating Watch On B
LC LT IDR B+ Rating Watch On B+
LC ST IDR B Rating Watch On B
Natl LT A-(bra) Rating Watch On A-(bra)
Natl ST F2(bra) Rating Watch On F2(bra)
Viability b+ Rating Watch On b+
Government Support ns Rating Watch On ns
BANCO TOPAZIO: Moody's Affirms B1 LT Deposit Rating, Outlook Stable
-------------------------------------------------------------------
Moody's Ratings has affirmed all ratings and assessments assigned
to Banco Topazio S.A. (Topazio), including its B1 long-term local
and foreign currency bank deposit ratings and Ba3 long-term local
and foreign currency Counterparty Risk Ratings. The Baseline Credit
Assessment (BCA) and adjusted BCA of b1, the long and short-term
Counterparty Risk Assessments of Ba3(cr) and Not Prime(cr),
respectively, as well as the short-term local and foreign currency
bank deposit ratings and Counterparty Risk Ratings of Not Prime
were also affirmed. The outlook on the long-term deposit ratings is
stable.
RATINGS RATIONALE
Topazio's b1 BCA reflects its strong profitability and capital
replenishment capacity since its strategic shift in 2021, supported
by consistent growth in foreign-exchange (FX) services, as well as
business synergies with related companies such as Ebanx, Ticket
Soluções, and Saque e Pague. However, the BCA remains constrained
by a highly concentrated operation, as modest growth in its credit
and bank-as-a-service businesses results in continued reliance on
FX revenues. The b1 BCA also incorporates the intense competition,
high regulatory risks, and challenges of technological disruptions
and operational risks related to its main FX business, which the
bank has been managing well over the past years.
Net income to tangible assets was 3.6% as of June 2024 and has
consistently stayed close to or higher than 2% since 2021. FX
income accounted for 62% of net revenues over the twelve months
ending in June, remaining the primary driver of profitability. In
2024, the bank ranked 21st in total FX transacted volume in the
country, up from 35th three years earlier. Profitability will
likely moderate in 2025 from current levels, due to increasing
competition in the digital assets segment, where Topazio has a
significant presence. Nonetheless, Moody's anticipates the bank
will maintain adequate earnings generation, supported by diligent
cost control and strong partnerships that provide the bank with
recurring revenues.
Topazio's capital buffer remains ample with tangible common equity
(TCE) to risk-weighted assets (RWAs) ratio consistently above 15%
over the past 3 years.
Topazio's b1 BCA also reflects the bank's heavy reliance on
brokered deposits that could expose its liquidity profile to shifts
in the commercial strategy of a few market-dominant investment
platforms. To mitigate this risk, Topazio maintains a disciplined
management of deposits' maturity mismatches concentrations, as well
as a long-track record of maintaining high liquidity levels.
The stable rating outlook reflects Moody's expectations that growth
in Topazio's bank-as-a-service and lending businesses will remain
slow, keeping earnings reliant on FX business over the next 12-18
months. This assessment also considers that the bank will maintain
diligent liquidity and operational risk management.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Upward pressure on Topazio's b1 BCA could arise from a consistent
and sustainable increase in business diversification and recurrent
earnings generation capacity. Enhanced access to a more diverse
funding mix and lower reliance on third party brokers deposits
could also be positive for the BCA.
Evidence of weakening in credit underwriting standards or
operational controls, or a sudden deterioration in the bank's
earnings potential that could result from changes in the regulatory
framework or termination of key business partnerships could have a
negative pressure on Topazio's BCA. A sustained decline in capital
or liquidity position could also add downward rating pressure.
The principal methodology used in these ratings was Banks published
in November 2024.
BRAVA ENERGIA: S&P Affirms 'B+' ICR, Outlook Positive
-----------------------------------------------------
S&P Global Ratings affirmed the 'B+' global scale issuer credit
rating on Brava Energia S.A. and the 'brAA-' national scale rating.
S&P also affirmed all issue-level ratings. The outlook remains
positive.
The positive outlook reflects S&P's expectation of an upgrade once
it is confident on Brava's leverage reduction. For an upgrade, S&P
would see average S&P adjusted debt to EBITDA trending below 2.5x
and FFO to debt above 30%.
Brava Energia S.A. had production hurdles during 2024, but the
issues seem addressed, and S&P expects production to rise
throughout 2025.
The company encountered several operational issues in the fourth
quarter of 2024, importantly due to delays in receiving regulatory
permits for the start-up of the new FPSO Atlanta, and a prolonged
maintenance stoppage at Papa-Terra field due to works to improve
the integrity of the oil treatment systems and gas production
facilities. Such improvements should reduce diesel consumption, due
to the increased use of the field's natural gas. This should
contribute to lower lifting costs this year. The company already
resumed operations in that field, which registered daily production
of 15,000 boe in February 2025.
Brava delivered Atlanta's long-awaited first oil by Dec. 31, 2024,
with the connection of two wells to the new FPSO. The field
registered 16,800 boe/day in January and 19,900 boe/day in February
2025 (80% working interest). S&P said, "We expect it to expand to
more than 32,000 boe/day in the next few months with an additional
four wells, which have proved production, and have connections
scheduled for the first half of 2025. In addition, after relevant
revitalization work in Potiguar field and the gradual increase in
steam injection capacity, we expect the Potiguar complex to sustain
production at 24,500 barrels of oil equivalent a day in
2025-2026."
S&P said, "We expect gradual leverage improvement over the next
quarters. We currently forecast S&P adjusted debt to EBITDA of
about 3.0x in 2025 and in 2026, versus our previous expectations of
1.5x-2.5x, and funds from operations (FFO) to debt between 20%-25%,
versus 55%, considering the lower production levels and Brent price
at $70 per barrel. Although we now expect it will take longer for
the company to reduce leverage, we think Brava will focus on
improving efficiency and consequently internal cash generation. We
assume that the company will use excess cash generation to pay down
debt, reducing gross debt by about R$1 billion this year.
"We also expect Brava to work on liability management alternatives
to reduce cost of debt, and potentially monetize Yinson's
receivables of $400 million, using proceeds to paydown debt. The
company ended 2024 with gross debt of R$15.7 billion (ex-total
return swap of R$3.3 billion) and a cash position of R$5.6
billion."
Capex will be directed to increase production levels and for
drilling campaigns at offshore fields in the next two years. On a
proforma basis (3R+Enauta), Brava deployed high capex of
approximately US$950 million in 2024, mostly directed to the new
FPSO, drilling campaigns, and subsea works in Atlanta field, the
relevant maintenance works in Papa-Terra, workover and wells
reactivation. For the next few years, S&P expects Brava to be more
efficient in capex allocation and to continue focusing on offshore,
which has higher average capital returns. On the onshore business,
the company should continue working on revitalizing fields and on a
steam injection platform to optimize production levels and reduce
the length of reserves natural decline.
The company recently approved an integrated drilling campaign at
Atlanta and Papa-Terra, which besides drilling considers a tieback
of two wells each at Atlanta and Papa-terra. It is scheduled to
begin in the fourth quarter this year and should start contributing
to higher production by the second half 2026. Capex associated to
the main contracts for the campaign, which are already signed, is
estimated at US$200 million during 2025-2027, more importantly, 72%
in 2026.
S&P said, "The positive outlook indicates our view that Brava will
increase production levels and cash flows, as it proceeds with
drilling campaigns at Papa-Terra and Atlanta, besides continue
working on revitalization of onshore fields to sustain relatively
stable production levels. With that, we expect S&P adjusted gross
debt to EBITDA at around 3.0x and FFO to debt between 20%-25% in
the next two years.
"We could revise the outlook to stable in the next 12-18 months if
production is significantly lower than our base-case because of
further delays in projects development or operational issues arise
in main fields, or if oil prices stay below our current expectation
for a prolonged period; either could result in lower EBITDA
generation and consequently higher leverage. In this scenario, we
would see debt to EBITDA of about 3.0x and FFO to debt below 30%
for a prolonged period.
"Furthermore, we could downgrade Brava if the company demonstrates
a more aggressive acquisition or growth strategy, significantly
increasing leverage and reducing free operating cash flow.
"We could upgrade the rating in the next 12-18 months once we are
confident that Brava is improving leverage with average debt to
EBITDA trending below 2.5x and FFO to debt above 30%. In our view,
this would result from production levels approaching 100,000
boe/day in 2026, higher in 2027 and improving margins."
=============
J A M A I C A
=============
JAMAICA: Only 282 Bids for Fixed Rate Cert. of Deposits Accepted
----------------------------------------------------------------
RJR News reports that the Bank of Jamaica has reported that 359
bids, valued at J$62.5 billion, were submitted for the $42 billion
in liquidity it wanted to mop-up with its latest 6.25% per annum
fixed rate Certificate of Deposit.
The Central Bank floated the instrument in order to contain
inflation and stabilise the dollar, according to RJR News.
It said it accepted only 282 bids, valued at the $42 billion, the
report notes.
The average yield for the successful bids was 5.58% per annum while
the highest bid was 9.99% per annum for $250 million, the report
relays.
The lowest bid was five per cent per annum for two million dollars,
the report discloses.
The total amount of fixed rate Certificates of Deposit outstanding
is $80 billion, or 2.3% of nominal GDP, 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.
On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a
positive rating outlook. 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 2024, S&P affirmed 'BB-/B' longterm foreign and local
currency sovereign credit ratings on Jamaica and revised outlook to
positive.
===========
M E X I C O
===========
GRUPO POSADAS: Taps Ritch Mueller y Nicolau as Mexican Counsel
--------------------------------------------------------------
Grupo Posadas S.A.B. de C.V. and its affiliates seek approval from
the U.S. Bankruptcy Court for the Southern District of New York to
employ Ritch Mueller y Nicolau, S.C. as special Mexican counsel.
The Debtors need the firm's legal assistance to negotiate and
implement the required documentation related to the collateral for
the new notes, which documentation will be governed by Mexican
law.
The firm's hourly rates are as follows:
Partners $500 to $650 per hour
Associates $200 to $310 per hour
The Debtors paid the firm the sum of $739,592 for its
pre-bankruptcy services and a retainer fee of $290,000.
The firm will receive reimbursement for out-of-pocket expenses
incurred.
Jean Paul Farah Chajin, Esq., a partner at Ritch Mueller y Nicolau,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Jean Paul Farah Chajin, Esq.
Ritch Mueller y Nicolau, S.C.
Pedregal 24 Piso 10, Col. Molino del Rey
Alcaldia Miguel Hidalgo, 11040
Ciudad de Mexico
Tel: +52 55 9178 7000
Email: jpfarah@ritch.com.mx
About Grupo Posadas
Grupo Posadas S.A.B. de C.V. is the leading hotel operator in
Mexico and owns, leases, franchises and manages 185 hotels and
28,690 rooms in the most important and visited urban and coastal
destinations in Mexico. Urban hotels represent 87% of total rooms
and coastal hotels represent 13%. Posadas operates the following
brands: Live Aqua Beach Resort, Live Aqua Urban Resort, Live Aqua
Boutique Resort, Grand Fiesta Americana, Curamoria Collection,
Fiesta Americana, The Explorean, Fiesta Americana Vacation Villas,
Live Aqua Residence Club, Fiesta Inn, Fiesta Inn LOFT, Fiesta Inn
Express, Gamma, IOH Hotels, and One Hotels. Posadas has traded on
the Mexican Stock Exchange since 1992.
Grupo Posadas S.A.B. de C.V. and affiliate Operadora del Golfo de
Mexico, S.A. de C.V. sought Chapter 11 protection (Bankr. S.D.N.Y.
Case No. 21-11831) on Oct. 26, 2021, listing up to $1 billion in
both assets and liabilities.
Judge Sean H. Lane oversees the cases.
The Debtors tapped Cleary Gottlieb Steen & Hamilton, LLP as
international legal counsel; Ritch, Mueller y Nicolau, S.C. and
Creel, Garcia-Cuellar, Aiza y Enriquez SC, as Mexican legal
counsel; and DD3 Capital Partners as investment banker. Prime
Clerk, LLC is the claims agent and administrative advisor.
=====================================
T R I N I D A D A N D T O B A G O
=====================================
TRINIDAD & TOBAGO: Import Duty on Cement Cut to 0%
--------------------------------------------------
Trinidad Express reports that following Trinidad Cement Ltd's
decision to raise the price of cement five times in five years, the
Ministry of Trade says it has agreed to reduce the rate of duty on
Other Hydraulic Cements to 0%.
The Ministry of Trade stated that the duty reduction will take
effect upon the publication of the necessary Legal Orders, which is
expected to be completed within the next few days, according to
Trinidad Express.
Last May, at the Council for Trade and Economic Development (COTED)
meeting, Trinidad and Tobago obtained approval to reduce the duty
on Other Hydraulic Cements from 20% to 10%, the report notes. That
was supposed to have been effective until June 30, the report
relays.
"This decision was made further to the MTI's monitoring of market
conditions in the cement industry and the recent action by Trinidad
Cement Ltd (TCL) to raise the price of cement by 7%. This price
adjustment was the fifth increase implemented by TCL since 2021," a
release from the Trade Ministry stated, the report discloses.
TCL implemented five price increases since December 2021: 15.6% in
December 2021, 7.0% in August 2022, 5% in March 2023, 7.6% in
February 2024, and 7% in February 2025, the report says.
"Cement is a critical linkage between the manufacturing and
construction sectors and is therefore vital for the country's
sustainable development. Of paramount importance to the Government
of Trinidad and Tobago is the availability of affordable cement to
consumers," the Trade Ministry stated, the report relays.
"In February 2024, Cabinet agreed to the suspension of the Quota
and Registration System for Cement (Building Cement—Grey and
Other Hydraulic Cements) which allows any quantity of imported
cement to enter the local market," it stated, the report notes.
The Ministry of Trade stated that, notwithstanding the duty
reduction, cement remains on the Import Negative List, meaning a
licence is still required to import it, the report discloses.
Applications for a licence to import cement must be submitted to
the Minister of Trade and Industry, and applicants are required to,
inter alia: (1) be registered under the Companies Act; (2) have
adequate and appropriate warehousing facilities for the safe and
reliable storage of imported cement; (3) have an established
distribution network; and (4) ensure that all imported cement meets
the relevant Caricom Regional Product Standards, the report says.
"This licensing regime allows for the quality of imported cement to
be monitored by the Trinidad and Tobago Bureau of Standards, to
ensure consumer safety. This entails strict enforcement of the
Compulsory Standard for cement on the local market which specifies
the requirements for Hydraulic, Portland (Building Cement—Grey)
and Blended Cements used primarily in the construction industry.
The Compulsory Standard includes requirements for compressive
strength, physical properties, chemical properties, packaging,
labelling and the means of determining compliance to these
requirements," it stated, the report relays.
"The MTI wishes to assure the public that it will continue to
monitor market conditions and ensure that critical products such as
cement remain accessible and affordable," the Trade Ministry
stated, the report adds.
[] TRINIDAD & TOBAGO: First Country to Enter CFATF
--------------------------------------------------
Trinidad and Tobago Express reports that Trinidad and Tobago will
be the first country to enter the Caribbean Financial Action Task
Force (CFATF) Fifth Round Mutual Evaluation Process and will
present the Fifth Round Report at the CFATF Plenary Meeting in
December 2026, the Office of the Attorney General has said.
The Mutual Evaluation process will assess Trinidad and Tobago's
adherence to global AML/CFT/CPF standards, focusing on both
legislative frameworks and the effectiveness of their
implementation, according to Trinidad and Tobago Express.
As part of country's preparation for this process, the Caribbean
Financial Action Task Force (CFATF), in collaboration with the 11th
European Development Fund (EDF), delivered Assessed Country
Training during the three-day period of March 26-28 at the AGLA
Auditorium, AGLA Towers, Port of Spain, the AGLA said in a media
release, the report relays.
The event was hosted by Attorney General Camille Robinson-Regis
with technical support from the National Anti-Money Laundering and
Countering the Financing of Terrorism Committee (NAMLC), the report
discloses.
"The training provided critical guidance to national stakeholders
on the mutual evaluation process, with a focus on ensuring
technical compliance and effectiveness in Anti-Money Laundering
(AML), Countering the Financing of Terrorism (CFT), and
Counter-Proliferation Financing (CPF) measures," it stated, the
report says.
The sessions covered essential topics such as the importance of
risk and context, regulatory frameworks and the steps leading up to
on-site visit by the assessment team for Trinidad and Tobago
demonstrating compliance with international standards set by the
Financial Action Task Force (FATF), the report relays.
===============
X X X X X X X X
===============
LATAM: Trump's Tariffs Threaten Region Steel industry
-----------------------------------------------------
Mauricio Rabufetti at AFP News reports that Chile's largest steel
plant shut down last year, yielding to cheaper production in China.
Now, six months later, the tariffs that US President Donald Trump
has imposed on imports of the metal threaten the livelihood of 1.4
million workers in Latin America, according to AFP News.
As he did during his first term in office from 2017 to 2021, Trump
is trying to protect US producers by making steel imports costlier
with a 25-percent tariff that kicked in on March 12, the report
notes.
The United States imports 25 million tons of steel each year, and
Canada is its main supplier, followed by Brazil and Mexico, each
with products tailored to other industries like car manufacturing
and construction, the report notes.
The United States relies on Latin America for specialised steel
products, said Ezequiel Tavernelli, head of the Asociacion
Latinoamericana del Acero (Latin American Steel Association,
Alacero), the report relays.
With the world awash in steel production overcapacity and China the
main offender, Trump's tariffs will distort the market, the report
discloses.
"The only thing they will bring is a flood of steel" that had been
headed to the United States and is now rerouted to regions that are
less protected and have less ability to defend themselves, like
Latin America, said Tavernelli, the report says.
To explain the threat he gives these figures: in 2000 China
exported less than 100,000 tons of steel a year to Latin America,
but it is more than 14 million tons, the report notes. The growth
is exponential, the report discloses.
Steel production in Latin America has been falling for three years
-- in 2024, the drop was 3.6 percent to 56 million tonnes for a
consumption of 73 million, the report says. And the Chinese share
of what is consumed is getting bigger and bigger, the report
relays.
And now, due to the Trump tariffs, Latin American producers will
not only lose market share in the United States but also miss out
in some markets of their own region due to Chinese competition, the
report notes.
When it Rains it Pours
The numbers are jarring, according to AFP News. Global production
capacity is 2.48 billion tonnes of steel per year. China accounts
for more than 45 percent of the world's steel production capacity
and produces 140 million tons it does not need, the report notes.
It dumps this excess cheaply on the international market, says
Alacero, which says China produces 23 percent of the world's excess
steel, the report relays.
"The main problem of our region, and that of the United States, is
world steel overcapacity," Tavernelli told AFP.
And China behaves disloyally, he argued, by selling steel below
cost thanks to government subsidies, the report discloses.
In September of last year, Chile endured what Tavernelli is talking
about, recall the report. Its Huachipato steelworks, the country's
largest, shut down its blast furnaces for good.
With the smoke that drifted out of its chimneys went nearly 75
years of company history, the report relays. Chinese steel was 40
percent cheaper and Huachipato simply could not compete, the report
adds.
Alacero argues that regionalisation of supply chains -- for
instance, US steel producers, car makers and construction companies
buy Latin American steel -- "is the best way to defend against
disloyal business by China and countries of Southeast Asia," the
report discloses.
As Brazil's Vice-President Geraldo Alckmin, who is also the
development and industry minister, put it, the region's goal should
be to achieve "economic complementarity," the report relays.
Brazil and Mexico are negotiating with the United States to try to
win exemptions from the US tariffs, and managed to pull this off
during Trump's first term in power, the report notes.
In the same vein, Mexico's iron and steel producers association,
Canacero, said last month there is a high level of production
integration between the US and Mexican steel industries and
regional benefits should be the priority in the face of the threat
of excess capacity of China and Southeast Asia, the report
discloses.
So there is the risk that more long-standing firms like Huachipato
will have to shut down, said Tavernelli, who insisted the countries
of Latin America have to work together, the report adds.
*********
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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balance thereof are US$25 each. For subscription information,
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* * * End of Transmission * * *