250604.mbx

250604.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, June 4, 2025, Vol. 26, No. 111 Headlines A R G E N T I N A ARGENTINA: Limit on Tax Agency Referral for Shopping Raised to 10M ARGENTINA: Sells Peso Bonds Abroad for First Time Since Macri Era B R A Z I L BRAZIL: Rio Alto Works With Debt Restructuring Advisers J A M A I C A JAMAICA: Touts Heavy Investment in Expanding Water Supply Systems M E X I C O CEMEX SAB: S&P Rates Proposed $1BB Sub. Hybrid Notes 'BB' S T . V I N C E N T A N D T H E G R E N A D I N E S ST. VINCENT & GRENADINES: Records Dip in Remittances T R I N I D A D A N D T O B A G O TRINIDAD CEMENT: Refinances Loan Again - - - - - ================= A R G E N T I N A ================= ARGENTINA: Limit on Tax Agency Referral for Shopping Raised to 10M ------------------------------------------------------------------ Buenos Aires Times reports that the ARCA (Agencia de Recaudacion y Control Aduanero) tax bureau has raised the basic sum for automatic consumer identification to 10 million pesos via Resolucion General 5700/2025 published in the Official Gazette. With the move, the tax bureau officialises changes in the framework in the government plan to stimulate the circulation of the so-called "mattress dollars" plan announced the previous week, according to Buenos Aires Times. In this case, the modifications cover the updating of the floor for the compulsory documentary identification of the final consumer, increasing the scope of the operations which can be backed by using the "Facturador" invoicing for those within the Simplified Regime for Minor Taxpayers (RS in its Spanish acronym), the report notes. The norm increases to 10 million pesos the sum requiring documented identification of the buyer, tenant, lender or any other category of final consumer, the report discloses. Until then, the benchmark was 250,000 pesos for purchases in cash and 400,000 for other means of payment, the report relays. The updating implemented has unified both floors provided that the buyer has at least one of the following identity documents: CUIT (Clave Unica de Identificacion Tributaria), CUIL (Codigo Único de Identificacion Laboral) CDI (Clave de Identificacion), DNI (Documento Nacional de Identidad), or an identity document or passport in the case of foreigners, the report relays. At the same time, a larger sum of 500,000 pesos was ruled for the operations which can be backed by using the "Facturador" invoicing for those within the Simplified Régime for Minor Taxpayers (RS), the report notes. Meanwhile, it was explained that the monotributistas sociales (self-employed) registered in the Registro Nacional de Efectores de Desarrollo Local y Economía Social will not be able to issue "Facturador" invoices when the sum of the operation exceeds half the new sum, i.e. 250,000 pesos, the report relays. The measure is covered by Decree No. 353, which "disposed the simplification and deregulation of all the formalities involved in investment and in the acquisition of goods, in the framework of standards, the good practices and guidelines currently valid in conformity with the international commitments assumed by the Argentine Republic," the report discloses. In the above decree, ARCA is urged "to simplify its norms in information and tax regimes and others entrusted to it," proceeding from it "being a main objective of the national state to constitute a public administration in favour of the citizen in a context of efficiency and quality when rendering services," 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 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) -- with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. The upgrade reflects the launch of a new IMF program, among other things. S&P Global Ratings, in February 2025 lowered its local currency sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and its national scale rating to 'SD' from 'raB+'. Moody's Ratings, in January 2025, raised Argentina's local currency ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1 from Caa3. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. ARGENTINA: Sells Peso Bonds Abroad for First Time Since Macri Era ----------------------------------------------------------------- Kevin Simauchi & Ignacio Olivera Doll at Bloomberg News reports that Argentina sold local currency debt to foreign investors, raising roughly US$1 billion that will help boost Central Bank reserves a month after President Javier Milei's government lifted most currency controls. The five-year peso bonds carry a coupon of 29.5 percent, more than what some local banks had expected, Finance Secretary Pablo Quirno said in a social media post, according to Bloomberg News. The notes also include a two-year put option, offering investors an early exit before another presidential vote takes place in 2027, Bloomberg News recalls. The auction, hailed by the government as a return to global markets after a sovereign debt restructuring during the Covid-19 pandemic, is the first time since President Mauricio Macri's term that Argentina has issued local debt directed almost exclusively at Wall Street, Bloomberg News relays. It's also part of a broader strategy by Milei's team to bolster the country's war chest of hard-currency reserves ahead of a key deadline under its US$20-billion agreement with the International Monetary Fund, Bloomberg News discloses. Quirno added that the country's treasury received 146 offers from foreign investors tallied at some US$1.7 billion, Bloomberg News says. Authorities also sold a range of peso instruments to domestic investors including short-term notes maturing between June and November 2025 and some bonds maturing next year, Bloomberg News relays. Investors have lauded the government's efforts to tame inflation and reverse years of budget deficits, all while chasing economic growth — challenges that proved elusive for Milei's predecessors, Bloomberg News notes. But for all of the optimism, the libertarian leader still faces a slew of hurdles. The Central Bank's total reserves have ticked down since the IMF sent a US$12-billion disbursement last month, Bloomberg News relays. And so far, Milei has dismissed the need to build up reserves, citing the country's floating exchange rate, Bloomberg News notes. As part of its IMF deal unveiled in April, Argentina agreed to amass some US$4.4 billion in net international reserves between the end of March and mid-June, Bloomberg News relays. Private estimates indicate the monetary authority remains significantly short of that goal, Bloomberg News adds. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Javier Milei is the current president of Argentina after winning the November 19, 2023 general election. He succeeded Alberto Angel Fernandez in the position. Argentina has the third largest economy in Latin America. The country's economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. In March 2022, the International Monetary Fund (IMF) approved a 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) -- with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. The upgrade reflects the launch of a new IMF program, among other things. S&P Global Ratings, in February 2025 lowered its local currency sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and its national scale rating to 'SD' from 'raB+'. Moody's Ratings, in January 2025, raised Argentina's local currency ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1 from Caa3. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. =========== B R A Z I L =========== BRAZIL: Rio Alto Works With Debt Restructuring Advisers ------------------------------------------------------- globalinsolvency.com, citing Bloomberg News, reports that Brazilian renewable energy company Rio Alto Energias Renovaveis SA is working with financial advisory firm Laplace Finanças and law firm Felsberg Advogados as debt restructuring advisers. Laplace and Felsberg have been helping Rio Alto negotiate with its creditors to reach an agreement as the company seeks to avoid filing for bankruptcy protection, according to globalinsolvency.com. About Brazil Brazil is the fifth largest country in the world and third largest in the Americas. Luiz Inacio Lula da Silva won the 2022 Brazilian general election. He was sworn in on January 1, 2023, as the 39th president of Brazil, succeeding Jair Bolsonaro. In October 2024, Moody's Ratings upgraded the Government of Brazil's long-term issuer and senior unsecured bond ratings to Ba1 from Ba2, the senior unsecured shelf rating to (P)Ba1 from (P)Ba2; and maintained the positive outlook. S&P Global Ratings raised on Dec. 19, 2023, its long-term global scale ratings on Brazil to 'BB' from 'BB-'. Fitch Ratings affirmed on Dec. 15, 2023, Brazil's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB' with a Stable Outlook. DBRS' credit rating for Brazil was last reported at BB with stable outlook at July 2023. ============= J A M A I C A ============= JAMAICA: Touts Heavy Investment in Expanding Water Supply Systems ----------------------------------------------------------------- RJR News reports that the government says it is investing $22 billion in the country's water supply systems, while unlocking another $14.2 billion in private sector investments in the sector. Matthew Samuda, Minister with responsibility for Water in the Ministry of Economic Growth and Job Creation, says the Rio Cobre Water Treatment Plant is one of the major projects being funded, according to RJR News. This project is expected to contribute an additional 15 million gallons of water per day to St. Catherine, Kingston and St. Andrew and Portmore, the report notes. Minister Samuda also stressed that plans are being put in place to facilitate the expansion of Mona Reservoir and the Hermitage Dam, the country's two main catchment facilities, 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 =========== CEMEX SAB: S&P Rates Proposed $1BB Sub. Hybrid Notes 'BB' --------------------------------------------------------- S&P Global Ratings assigned its 'BB' long-term issue-level rating to the proposed $1.0 billion perpetual subordinated notes to be issued by Mexican cement company Cemex S.A.B. de C.V. (global scale: BBB-/Stable/--; national scale: mxAA+/Stable/mxA-1+). Cemex will use the net proceeds for general corporate purposes, including the refinancing of part of its outstanding debt. S&P said, "We view this transaction as an intent from Cemex to replace the April 10, 2025, fully redeemed 9.125%, $1.0 billion hybrid instrument, following S&P Global Ratings' updated criteria on hybrids with sliding step-up features. In our view, the proposed transaction reflects the company's medium- to long-term commitment to maintain $2.0 billion of hybrids within its capital structure." The proposed transaction would carry intermediate equity content from the issuance date until its first reset date (falling in September 2030), 20 years before the second step-up in 2050 of a cumulative 100 basis points (bps), because it meets S&P's criteria in terms of subordination, loss absorption, and cash preservation, through optional coupon deferability if needed. The interest to be paid on the proposed securities will increase by 25 bps on the first step-up date, which should take place 5.25 years after the issuance, and by a further 75 bps on the second step-up date 20 years after the first step-up date. S&P considers the cumulative 100 bps as a material step-up, thus creating an incentive for the issuer to redeem the instrument on its second step-up date. S&P said, "Therefore, we will no longer recognize the instrument as having intermediate equity content after its first reset date since the remaining period until its economic maturity would, by then, be less than 20 years. However, we will classify the instrument's equity content as intermediate until its first reset date, so long as we think that the loss of the beneficial intermediate equity content treatment will not cause the issuer to call the instrument at that point. Cemex's willingness to maintain or replace the instrument in the event of a reclassification to no equity content is underpinned by its statement of intent." S&P derive its 'BB' issue-level rating on the proposed hybrid notes by notching down from its 'BBB-' long-term issuer credit rating (ICR) on Cemex. The two-notch difference reflects: -- A one-notch deduction because of the contractual subordination of the notes and that the rating on Cemex is 'BBB-'; and -- An additional one-notch deduction to reflect the interest payment flexibility, since the deferral is at the option of the issuer. In our view, Cemex is relatively unlikely to defer interest on the hybrid notes. S&P said, "The notching reflects our view that the issuer is relatively unlikely to defer interest. Should our view change, we may increase the number of notches we deduct from the ICR to derive the issue rating. "In addition, to capture our view of intermediate equity content, we consider 50% of the related payments on the proposed notes as a fixed charge (interest expenses) and 50% as equivalent to a common dividend, in line with our hybrid capital criteria. The proposed hybrid's principal and accrued interest will be treated as 50% debt and 50% equity in our calculation of Cemex's adjusted debt." Key factors in S&P's assessment of the proposed hybrid's permanence The proposed notes do not have a legal maturity date. That said, Cemex can fully redeem them during the period starting on the first call date, which falls five years after the issuance, and ends on the first reset date and on any interest payment date after that. In addition, Cemex has the ability to call the instrument any time prior to the first call date at a premium through a make-whole redemption option. S&P said, "In our view, Cemex doesn't intend to redeem the instrument prior to the redemption window of the first reset date, and we don't think this type of make-whole clause creates an expectation that Cemex will redeem the issue before then. Accordingly, we don't view it as a call feature in our hybrid analysis, even if it's referred to as a make-whole option clause in the hybrid instrument's documentation. Cemex can also redeem the instrument at any time due to a rating methodology, tax, repurchase, accounting, or change-of-control event." Key factors in S&P's assessment of the proposed hybrid's subordination The proposed instrument and interest will constitute the issuer's direct, unconditional, unsecured, and subordinated obligations, ranking junior to all existing and future unsubordinated debt, and pari passu among themselves and any future similar instruments. They are senior only to all existing and future common equity and preferred stock. Key factors in S&P's assessment of the proposed hybrid's deferability S&P said, "In our view, Cemex's option to defer payment on the proposed notes is discretionary. This means the issuer may elect not to pay accrued interest on an interest payment date because doing so is not an event of default, and there is no cross default under the notes. However, any outstanding deferred interest payment will have to be settled in cash if Cemex declares a cash dividend, other cash distribution, or a payment in cash of any nature is validly declared, paid, or made in respect of any of the issuer's capital stock or parity security (other than the notes), subject to certain exceptions. This condition is in line with our criteria because, once the issuer has settled the deferred amount, it can still choose to defer on the next interest payment date." =========================================================== S T . V I N C E N T A N D T H E G R E N A D I N E S =========================================================== ST. VINCENT & GRENADINES: Records Dip in Remittances ---------------------------------------------------- Jamaica Observer reports that St Vincent and the Grenadines Finance Minister Camillo Gonsalves says a single-digit unemployment rate is cushioning the decline in remittances from St Vincent and the Grenadines nationals residing overseas. "There are more people employed in St Vincent and the Grenadines today than at any point in the history of St Vincent and the Grenadines since slavery," Gonsalves said on a radio programme here, according to Jamaica Observer. "We have that data. I would say that we have single digits, high single-digit unemployment in this country and I would say that you probably have another low single-digit number of people who could work but don't want to work," he told radio listeners, the report notes. Gonsalves said the economy was buoyant, saying that businesses had reported, through the Chamber of Industry and Commerce, better performance this year, even as he acknowledged that remittances had fallen, the report relays. "And the working theory that we have right now is it is because of the United States' current crackdown on migrants," Gonsalves said, the report discloses. He said there are reports that in major metropolitan areas of the United States and areas where Vincentians live, US Immigration and Customs Enforcement (ICE) is "essentially camped out outside of these Western Unions and these MoneyGram offices," the report relays. The finance minister said ICE has not been explicitly targeting people of Caribbean descent, as the initial focus appears to be on Latin Americans, the report discloses. "They have been essentially waiting outside of these places and arresting people as they go in and out of these money transfer places," Gonsalves said, adding that this has had "a chilling effect on the money transfer business, obviously, the report notes. "So, there are a lot of people who may not be fully regularised in the United States, but have a job. And every month, they would go to the Western Union and send down US$100 or US$200. And there are people who are actually fully regularised, but this thing has been a very scary experience for everybody," the report relays. He said it seems that there is a decline in the volume of transfers, the report discloses. "The data that we have to date is that it is not that people are sending less money, it's that fewer people are sending money. And so, the remittance numbers have ticked downwards in country, the report notes. "Now, what we are seeing on the other side, while remittances are in decline, we are seeing a number of reports that employment is up in St Vincent and the Grenadines, and up considerably," the report relays. Gonsalves said that the last "firm data" that the government has is from 2022, which said that unemployment was 10.8 per cent", adding that this was before the opening and full operationalization of Sandals Resorts, the report relays. "And it was before some other major construction projects were underway fully. We believe now that the unemployment number would be in single digits," he said, adding that he was referring to the standard definition of unemployment, "which is somebody who does not have a job but is looking for a job, he added. "I don't doubt that there are more people out there who don't have a job, but they ain't interested in working," he said, the report relays. Gonsalves said contractors across country have complained to the government, "telling us that they're having tremendous difficulty finding workers," he added. ===================================== T R I N I D A D A N D T O B A G O ===================================== TRINIDAD CEMENT: Refinances Loan Again -------------------------------------- Trinidad and Tobago Guardian reports that Trinidad Cement Limited (TCL) has amended its loan agreements with Citibank and Scotiabank for the third time. According to a notice published in local newspapers, TCL's board of directors on May 28, 2025 entered into a third amended and restated agreement to TCL's loan agreement dated July 24, 2018 with Citibank (Trinidad & Tobago) as lender for a principal amount of TT$135 million and Scotiabank as lender of the principal amount of $135 million, the report notes. The notice confirmed the loan had last been amended on December 2, 2022, the report recalls. The loan is being used to repay existing loan obligations of TCL under loan agreements dated July 22, 2021 with Republic Bank and RBC Merchant Bank, according to Trinidad and Tobago Guardian. The key terms of the agreements are a term loan for the aggregate principal sum of TT$270 million for a period of 4 years, with a two-year grace period for quarterly capital repayments, the report relays. The interest rate is the most recent T&T three-month Treasury Bill rate plus 250 basis points, the report discloses. The effective yield of the 91-day Treasury Bill, which matures on July 31, is 2.14 per cent, the report relays. The agreements are guaranteed by Cemex, S.A.B.de C.V, which is the parent company of TCL, the report discloses. Cemex, which is a Mexican multinational building materials company, owns 69.83 per cent of TCL, through a holding company called Sierra Trading, the report says. In its unaudited financial results for the three months ended March 31, 2025, TCL declared after-tax profit of $85.9 million, an increase of 9.67 per cent over its first quarter of 2024, the report notes. The cement-manufacturing company's revenue for the period January 1 to March 31, 2025 was $626.48 million, an increase of 9.25 per cent, 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 publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *