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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

          Thursday, April 10, 2025, Vol. 26, No. 72

                           Headlines



A R G E N T I N A

ARGENTINA: Milei Says He Will Change Laws to Mitigate US Tariffs


B R A Z I L

BANCO MASTER: Brazil's BRB Only Acquiring Key Assets, CEO Says
COMPANHIA DE SANEAMENTO: Fitch Affirms 'BB+' IDR, Outlook Stable


C O L O M B I A

CANACOL ENERGY: S&P Cuts ICR to 'CCC+' on Weaker Growth Prospects


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Trump Imposes 10% Tariffs


P A N A M A

TODOPLAY LLC: S&P Discontinues Preliminary 'B+' Long-Term ICR


T R I N I D A D   A N D   T O B A G O

TRINIDAD & TOBAGO: Headline Inflation Climbed to 0.7% YoY in Feb.


V E N E Z U E L A

CITGO PETROLEUM: Venezuela Bondholders Find Path to Repayment

                           - - - - -


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A R G E N T I N A
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ARGENTINA: Milei Says He Will Change Laws to Mitigate US Tariffs
----------------------------------------------------------------
AFP News reports that Argentina's President Javier Milei says he
will change legislation to meet the requirements of US President's
Donald Trump's new tariffs and mitigate their impact.

Speaking at an event at Trump's Mar-a-Lago residence and resort in
Florida, Milei delivered a brief speech as he received an award for
his defence of free markets and conservative values, according to
AFP News.

Declaring he is ready to work side-by-side with the United States
and Trump, Milei praised the US president and ruled out retaliatory
measures, the report notes.

"Argentina is going to move forward to readjust the regulations so
that we meet the requirements of the reciprocal tariffs proposal
developed" by Trump, Milei said, according to remarks briefed by
his office, the report relays.

"We have already met nine of the 16 necessary requirements, and I
have instructed my country's Foreign Ministry and Commerce
Secretariat to move forward with the remaining requirements," he
said, speaking a day after Trump slapped 10-percent tariffs on
Argentine goods entering the United States, the report discloses.

"As you can see, we make policies with actions, not mere words, and
on that, we agree with President Trump: it is time to act, and we
are committed to taking the necessary measures," he added.

Milei said that he had given instructions to ensure Argentina
complies with Washington's remaining requirements and vowed to
"resolve the asymmetries with the United States in a short period
of time," the report relays.

During 2024, Argentina experienced a remarkable growth in its
exports to the US, reaching a total of US$6.395 billion - an
increase of 13.2 percent compared to the previous year, the report
discloses.  This increase contributed to Argentina's first trade
surplus with the US  in 18 years, with a positive balance of US$
232 million, the report says.

Milei said he saw the changes as a "step forward" towards a
free-trade agreement with the United States, painting a picture of
the future in which "tariffs and trade barriers are just a bad
memory of the past," the report notes.

The Trump and Milei administrations are making progress on a
bilateral agreement between the two countries. In principle, the
government will move forward on "harmonising tariffs on a basket of
50 products so that they flow more freely" between the two nations,
although for the moment it would start with around 10 products, the
report relays.

In March, Trump said he was open to discussing the possibility of a
free-trade deal with Argentina, the report notes.

Milei, whom Trump calls a "great leader," has said he is willing to
pull Argentina out of Mercosur regional trade bloc if necessary,
the report discloses.

"To make Argentina great again . . . we must work back to back as
strategic partners with common objectives" with the United States,
said Milei, who is seeking US support in negotiations for a new
financing program with the International Monetary Fund (IMF), the
report relays.

The La Libertad Avanza leader was speaking at the American Patriots
Gala organised by the Make America Clean Again (MACA) foundation
and the We Fund the Blue NGO, the report notes.

Argentina's leader failed to meet Trump during his brief visit to
Florida, which lasted less than 24 hours, 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.




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B R A Z I L
===========

BANCO MASTER: Brazil's BRB Only Acquiring Key Assets, CEO Says
--------------------------------------------------------------
globalinsolvency.com, citing Reuters, reports that
government-controlled Banco de Brasilia (BRB) only agreed to
acquire the healthiest and most strategically relevant assets from
fellow lender Banco Master after months of negotiations, BRB CEO
Paulo Henrique Costa said.

The agreement, announced and subject to review by the central bank,
is still under due diligence that could eventually bring down the
negotiated price of 2 billion reais ($350 million), to be paid over
up to six years, he added, according to the report.

Headquartered in Sao Paulo, Brazil, Banco Master S.A. reported
assets of BRL51.0 billion and shareholders' equity of BRL4.19
billion as of June 30, 2024.

As reported in the TCR-LA on March 31, 2025, Moody's Ratings has
withdrawn all ratings of Banco Master S.A. (Master), including
the B3 and Not Prime long-and short-term local- and
foreign-currency deposit ratings, as well as the B2 and Not
Prime long- and short-term local- and foreign-currency
counterparty risk ratings. The bank's baseline credit assessment
(BCA) and adjusted BCA were also withdrawn, previously at b3,
and long- and short-term counterparty risk assessments (CRAs)
of B2(cr) and Not Prime(cr), respectively, were withdrawn.
Prior to the withdrawal, the outlook on the long-term deposit
ratings was positive.

The TCR-LA reported on April 9, 2025, that 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.

COMPANHIA DE SANEAMENTO: Fitch Affirms 'BB+' IDR, Outlook Stable
----------------------------------------------------------------
Fitch Ratings has affirmed Companhia de Saneamento Basico do Estado
de Sao Paulo's (Sabesp) Long-Term Foreign Currency (FC) and Local
Currency (LC) Issuer Default Ratings (IDRs) at 'BB+'. Fitch also
affirmed Sabesp's Long-Term National Scale Rating and its unsecured
debenture issuances at 'AAA(bra)'. The Rating Outlook is Stable.

Sabesp's ratings reflect its solid business profile in Brazil's
water/wastewater industry and the benefits from its large-scale
operations and predictable demand. Fitch expects the company's net
leverage to remain aligned with the ratings, despite the
significantly negative FCF expected due to more aggressive capex
plan than previously anticipated.

Sabesp's current EBITDA margins are above the average of its
Brazilian peers. and its ability to continue improving it is
crucial for managing higher debt levels. The company has strong
financial flexibility to support capex and refinancing needs. Fitch
evaluates the company's credit profile on a standalone basis from
its main shareholders.

Key Rating Drivers

Low Business Risk: Sabesp's credit profile benefits from its near
monopoly on the provision of an essential service in its concession
area. As the largest water/wastewater company in the Americas by
customer base, it has economies of scale that enhance
profitability. Fitch's analysis considers the evolving regulatory
environment and the hydrological risk inherent in Sabesp's
business. The company's activity in the state of Sao Paulo is
favorable, given the state has the largest GDP and population in
the country.

Above-Peer EBITDA Margin: Fitch expects Sabesp to continue to
improve its already-high EBITDA margin, achieving 54% in 2025 with
gradual growth to above 60% in 2028. This level compares favourably
with its peers in Latin America. The estimates of profitability
increase incorporate results from operating efficiency gains, which
is crucial to mitigating pressure on the company's credit metrics
in the near term. The average EBITDA margin was 46% in 2020-2024,
rising to 52% in 2024. The base case scenario forecasts EBITDA of
BRL12.6 billion in 2025 and BRL14.7 billion in 2026.

High Revenue Predictability: Sabesp's credit profile benefits from
resilient demand and record of adequate tariff increases that
support its high revenue predictability. Fitch assumes tariff
increases in line with inflation in 2025 and annual average of
around 7% thereafter, supported by annual tariff revisions until
2029 to incorporate high capex levels. The total volume billed
should grow by an average 3.1% annually during this period, given
the increasing number of connections and improved billing measures.
The base case scenario incorporates manageable levels of water
losses and delinquency, with no water supply restrictions, as
reservoirs are currently at comfortable levels.

Aggressive Capex Cycle: Sabesp has a capex plan of more than BRL60
billion for 2025-2029 to meet the regulatory target to provide
water distribution services for 99% of the population and sewage
collection and treatment to 90% of the population within its region
of operation. The company focus mainly to increase sewage treatment
ratio, which is currently above 80%, as it already complies with
the water distribution and sewage collection targets.

Manageable Leverage Increase: Fitch expects Sabesp's strong
financial profile to be sustained through its capex cycle, despite
estimates of higher indebtedness. Fitch forecasts EBITDA Interest
Coverage reducing to 2.9x and net leverage peaking at 2.7x in the
next three years, which are still commensurate with its ratings.
These ratios were 5.7x and 1.7x at YE 2024, respectively. Fitch
also expects Sabesp's interest payments to increase because of the
upward trend of the basic interest rates in Brazil, which is likely
to further pressure FCF generation.

Strong Negative FCF: Fitch estimates Sabesp's cash flow from
operations (CFFO) of BRL6.1 billion in 2025, resulting in strong
negative FCF of BRL11.0 billion after relevant investments of
BRL15.0 billion and dividends of BRL2.3 billion. Annual FCF in
2026-2027 should average negative BRL7.1 billion, following an
average CFFO of BRL7.8 billion and relevant average annual
investments and dividends of BRL13.2 billion and BRL1.7 billion,
respectively. The company is implementing a crucial operating
efficiency strategy, including cost-cutting initiatives and
commercial measures, which should improve cash flow generation and
mitigate FCF pressure.

Peer Analysis

Sabesp's mature operations and its position as the largest
water/wastewater utility in the Americas benefit its business
profile in terms of economies of scale and financial structure. In
comparison, Aegea Saneamento e Participacoes S.A. (Aegea; LC and FC
IDRs BB/Stable), has moderate leverage, reflecting its growth
strategy, partially mitigated by stronger EBITDA margins. Sabesp's
sound CFFO generation capacity also supports the one-notch
difference in the IDR. Aegea's credit profile benefits from its
diversified concessions within Brazil, while Sabesp operates
exclusively in the state of Sao Paulo, which results in
concentrated operational and regulatory risks.

Compared with power-transmission company Alupar Investimento S.A.
(LC IDR BBB-/Stable; FC IDR BB+/Stable), Sabesp has higher
regulatory risk, lower operational cash flow predictability and
less asset diversification, which explains the difference in the LC
IDRs.

Sabesp favorably compares with Namibia Water Corporation (NamWater;
LC and FC IDRs BB-/Stable), a government-related entity in Namibia
that has its ratings constrained by the shareholder. This is due to
Fitch's view of legal ringfencing and access and control as 'open',
which leads to the company's IDRs being constrained by the
sovereign's. NamWater Standalone Credit Profile is 'bb-', supported
by the company's role as the water supplier in Namibia, with a cost
pass-through tariff framework and a strong financial profile.

Key Assumptions

- Total volume billed growth of 2.9% on annual average for
2025-2027, supported mainly by growth of connections and overall
stable volume/connection consumption;

- Total annual tariff increase of 6.4% on annual average for
2025-2027;

- Average annual capex of BRL15.4 billion in 2025-2027;

- Average annual dividends of BRL2.2 billion in 2025-2027,
equivalent to a payout ratio of 25% of net profit until 2026 and of
50% in 2027.

RATING SENSITIVITIES

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

- Negative action on the Brazilian Country Ceiling, which will lead
to negative action on the FC IDR;

- EBITDA margins below 40%;

- Net leverage sustained above 3.0x;

- Increased regulatory risk;

- Lower financial flexibility.

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

- A positive rating action on the LC IDR depends on FCF neutral to
slightly negative;

- A positive rating action on the FC IDR depends on the same
movement on the LC IDR and on the Brazilian Country Ceiling;

- An upgrade of the National Scale Ratings is not possible as the
rating is at the top of the national scale.

Liquidity and Debt Structure

Sabesp' strong access to financial market is a key factor for the
rating, as it enables the company to finance its negative FCF and
rollover existing debt. The company's strong cash position of
BRL5.4 billion at YE 2024 is likely to decline as Sabesp implements
its capex plan. Sabesp has a lengthened debt maturity schedule,
with BRL2.9 billion maturing in 2025. In 1Q25, the company issued
BRL3.7 billion in debentures for refinancing purposes and reinforce
liquidity. Fitch expects Sabesp to sustain its cash
balance-to-short term debt ratio above 1.0x through the cycle.

At YE 2024, Sabesp's total debt of BRL24.7 billion consisted
primarily of funding of BRL9.8 billion from multilateral agencies,
BRL11.7 billion in debenture issuances, and BRL2.7 billion from
Caixa Economica Federal (Caixa) and Banco Nacional de
Desenvolvimento Economico e Social (BNDES). Positively, Sabesp
hedges all its FX debt exposure.

Issuer Profile

Sabesp is the largest basic sanitation company in Latin America,
providing services to around 28 million people in 375
municipalities in Sao Paulo state in Brazil. Its main shareholders
are Equatorial S.A. (15% ownership) and the São Paulo state
(18%).

MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS

Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.

ESG Considerations

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

   Entity/Debt                Rating                Prior
   -----------                ------                -----
Companhia de
Saneamento Basico
do Estado de Sao
Paulo (SABESP)        LT IDR    BB+      Affirmed   BB+
                      LC LT IDR BB+      Affirmed   BB+  
                      Natl LT   AAA(bra) Affirmed   AAA(bra)

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



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C O L O M B I A
===============

CANACOL ENERGY: S&P Cuts ICR to 'CCC+' on Weaker Growth Prospects
-----------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit and issue
ratings on Colombian natural gas producer Canacol Energy Ltd. and
its senior unsecured notes to 'CCC+' from 'B-'.

The stable outlook indicates that the company will continue to
largely depend on successful investments to increase its reserve
and production base in the next 12-18 months, while managing
upcoming maturities expected in 2027 and 2028.

Canacol reported a 30% replacement ratio on its proved reserves,
representing about 4.2 years of average reserve life at current
production rates as of Dec. 31, 2024.

Revenue grew 19% to $376 million in 2024 supported by average
prices of $6.99 per thousand cubic feet (Mcf), while production
continued to fall to 160,664 Mcf per day (versus 181,277 Mcf per
day in 2023).

Canacol does not face immediate financial stress, but current
production volumes, reserves, and growth prospects suggest
vulnerable business conditions. S&P said, "Even though we do not
envision Canacol will default on its debt because of its still
comfortable maturity schedule, we believe the company no longer
maintains the necessary reserve replacements, nor production
volumes to reduce refinancing risks on upcoming maturities in 2027
and 2028. In addition, the bond is currently trading below $50
(about 50% below par), which could suggest the possibility of
Canacol considering a distressed exchange to reduce total debt and
allow for more liquidity sources for capital expenditure (capex),
if the bond market permits."

There has not been a recovery in proved (1P) reserve replacement
ratios, leading to 30% of its annual production recovered and a
reduction to 4.2 years of reserves left as of Dec. 31. 2024. S&P
said, "We believe the company remains unable to translate increased
capex into production volumes and requires higher liquidity sources
to secure future production volumes. Moreover, this business
decline could also hurt its chances of refinancing, and/or
substantially increase interest rates on its debt, while
maintaining weak sources of liquidity. Based on the company's
previous investments, we could assume potential production and
reserve growth by 2026, given most investments were made about four
years ago. However, our base-case scenario does not indicate
this."

Canacol largely depends on high prices to mitigate production
declines and maintain current revenue generation.
Above-industry-average prices continue to weigh on Canacol's
revenue as production declines. The company's average prices are
expected to remain at $7-$8 per Mcf because growing demand for
natural gas has not been met by Ecopetrol, nor other independent
producers in the region. For now, S&P considers this a credit
positive in Canacol's assessment. However, independent producers
have been investing in natural gas production so, under a stressed
scenario, Canacol's cash generation could deteriorate if prices
fall while demand is covered by other peers and production does not
improve. The company's production was 156.1 Mcf per day for the
full year ended Dec. 31, 2024, versus 178.3 Mcf per day in 2023.

S&P said, "The stable outlook on Canacol reflects our view that the
'CCC+' rating already indicates the company's low replacement
ratios, rate of production decline, and potential limited access to
financial markets for refinancing purposes. We do not envision a
default on its debt in the next 12 months because of its still
comfortable debt maturity schedule." However, the company will
depend on improved business and financial conditions to meet the
significant $200 million maturity of its revolving credit facility
(RCF) in 2027.

S&P could downgrade Canacol in the next six to 12 months if:

-- It enters a distressed exchange on its debt, taking advantage
of the low-price trading of its bond due 2028;

-- The company shows liquidity deficits and/or access to financial
markets is limited while maturities have not been managed; or

-- S&P has further reason to believe that the current debt
structure remains highly unsustainable against expected production
and reserve growth prospects.

S&P could raise the ratings back to 'B-' in the next 18 months if
the company builds a sufficient production and reserve cushion to
meet cash generation increases needed for a healthy refinancing of
its debt and the strengthening of liquidity sources to reduce debt
repayment risks. This would need to be complemented by above 100%
reserve replacement ratios, consistent production growth rates, and
tangible evidence of successful capex.




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

DOMINICAN REPUBLIC: Trump Imposes 10% Tariffs
---------------------------------------------
Dominican Today reports that U.S. President Donald Trump announced
the imposition of a 10% tariff on imports from the Dominican
Republic, alongside 20% tariffs on the European Union (EU) and 10%
on other Latin American nations, including Argentina, Brazil, and
Chile.  Speaking at a White House event, Trump called the day
"American Liberation Day" and framed the decision as a declaration
of economic independence for the U.S, according to Dominican
Today.

The executive order establishes a minimum 10% tariff for numerous
countries, with higher tariffs for those considered "worst
offenders" in blocking U.S. products, the report notes.  Trump
specifically criticized the EU, claiming they impose an average 39%
tax on American goods, and announced a 20% tariff in retaliation.
He also criticized the EU's ban on American poultry imports while
continuing to export cars to the U.S, the report relays.

In addition to the Dominican Republic, the new tariffs will affect
Argentina, Brazil, Colombia, Chile, Ecuador, Guatemala, Honduras,
Peru, Costa Rica, and Nicaragua, with a standard 10% levy, the
report discloses.  Venezuela will face a 15% tariff, while
Nicaragua will be hit with 18%. The tariffs will be enforced in two
phases: the 10% minimum starts on April 5, while additional
country-specific tariffs will begin on April 9, the report adds.

                About Dominican Republic

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

S&P Global Ratings affirmed its 'BB' long-term foreign
and local currency sovereign credit ratings on the
Dominican Republic on December 3, 2024. The outlook remains
stable. S&P also affirmed its 'B' short-term sovereign
credit ratings and kept the transfer and convertibility
(T&C) assessment unchanged at 'BBB-'.

Fitch, on November 26, 2024, affirmed the Dominican Republic's
Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-'.
The Rating Outlook is Positive.

Moody's credit rating for Dominican Republic was last set at Ba3
in August 2023 with the outlook changed to positive.  



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

TODOPLAY LLC: S&P Discontinues Preliminary 'B+' Long-Term ICR
-------------------------------------------------------------
S&P Global Ratings discontinued its preliminary 'B+' long-term
issuer credit and issue-level ratings assigned to sportswear
retailer Todoplay LLC on Jan. 30, 2025. This is because the
proposed transaction did not close.




=====================================
T R I N I D A D   A N D   T O B A G O
=====================================

TRINIDAD & TOBAGO: Headline Inflation Climbed to 0.7% YoY in Feb.
-----------------------------------------------------------------
RJR News reports that the central bank of Trinidad & Tobago has
reported that headline inflation climbed to 0.7%, year over year,
in February, although food prices jumped by 3.9% during the month.


The central bank also revealed that the increase in food prices was
driven by local and  international factors, according to RJR News.


The bank pointed out, however, that core inflation, which excludes
volatile food and energy prices dipped by 0.1% during the month,
the report adds.



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

CITGO PETROLEUM: Venezuela Bondholders Find Path to Repayment
-------------------------------------------------------------
Alicia McElhaney, writing for WSJ Pro Bankruptcy, reports that a
group of Venezuela bondholders have found a path to be repaid
through the auction of the country's U.S.-based oil refiner, Citgo
Petroleum, and potentially avoid the risk of a separate adverse
court ruling.  

The leading bid for Citgo favors creditors whose collateral rights
over the refiner are in dispute, notes the report. Specifically,
the offer from Red Tree Investments would give holders of $1.7
billion in bonds issued by its ultimate parent company, state-owned
Petroleos de Venezuela SA, the ability to swap out their defaulted
debt for new bonds and convertible notes backed by Citgo's assets.

Citgo Petroleum Corporation is a United States-based refiner,
transporter and marketer of transportation fuels, lubricants,
petrochemicals and other industrial products.  Based in Houston,
Texas, Citgo is majority-owned by PDVSA, a state-owned company of
the Venezuelan government (although due to U.S. sanctions, in
2019, they no longer economically benefit from Citgo.)

Fitch Ratings, in early October 2024, affirmed the Long-Term
Issuer Default Rating (IDR) of CITGO Petroleum Corp. (CITGO, or
Opco) at 'B' with a Stable Outlook and the IDR of CITGO Holding,
Inc. (Holdco) at 'CCC+'. Fitch also affirmed Opco's existing
senior secured notes and industrial revenue bonds at 'BB'/'RR1'.
S&P Global Ratings, in June 2022, affirmed its 'B-' long-term
issuer credit ratings on CITGO Holding Inc. and core subsidiary
CITGO Petroleum Corp.


                           *********


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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Chapman, Editors.

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