/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/220704.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 Monday, July 4, 2022, Vol. 23, No. 126 Headlines A R G E N T I N A ARGENTINA: Default Jitters Mount as Local Yields Top 70% MASTELLONE HERMANOS: Fitch Affirms 'B-/B' IDRs, Outlook Stable PAN AMERICAN: Fitch Rates $120MM Unsecured Notes Due 2025 'BB-' B R A Z I L BRAZIL: Government Reports Bigger-Than-Expected Deficit in May C O L O M B I A ECOPETROL SA: S&P Affirms 'BB+' LongTerm ICR, Outlook Stable D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: BCRD Ups Monetary Policy Rate to 7.25% Per Year J A M A I C A JAMAICA: BoJ to Reveal Latest Interest Rate Decision P A R A G U A Y FRIGORIFICO CONCEPCION: Fitch Affirms 'B+/B+' IDRs, Outlook Stable P U E R T O R I C O PUERTO RICO: HTA Plan Confirmation Hearing Set for Mid-August T R I N I D A D A N D T O B A G O TRINIDAD & TOBAGO: Discuss Energy Cooperation With Suriname X X X X X X X X [*] BOND PRICING: For the Week June 27 to July 1, 2022 - - - - - ================= A R G E N T I N A ================= ARGENTINA: Default Jitters Mount as Local Yields Top 70% -------------------------------------------------------- Buenos Aires Times reports that two years after Argentina emerged from its latest default, a debt crisis in brewing once again. This time, the immediate trouble is in the local bond market, where creditors have become reluctant to roll over maturing government bonds, according to Buenos Aires Times. With spending still high and the leftist government under pressure from the IMF to stop hitting up the Central Bank for cheap loans to cover its budget deficit, there's a growing sense in Buenos Aires that officials are running out of financing options and that a local bond restructuring is becoming all but inevitable, the report notes. Part of the problem is rooted in the fact that the value of the vast bulk of the bonds is linked to inflation - the lone security that crisis-scarred investors have found appealing, the report discloses. So the explosion in inflation, rather than providing a big dose of debt relief as it has for governments across the globe this year, is actually further straining fiscal coffers, the report relays. Consumer prices are soaring at an annual pace of more than 60 percent here this year, the fastest rate this century and one of the highest in the world, the report notes. A government bond auction scheduled will provide a look at just how acute the crunch has become, the report relays. The government is looking to sell some 250 billion pesos (US$2 billion) of inflation-linked notes and other securities, the report discloses. Demand has sagged at recent auctions, and yields on the notes have soared above 12 percent in secondary-market trading, providing an all-in rate of more than 70 percent at current inflation rates, the report adds. At the same time, demand for dollars is surging, sinking the parallel peso to record lows almost daily, in a clear sign that investors are redeeming their bonds and whisking the cash offshore, the report relays. All of this is catching the attention of Argentina's foreign bondholders, too, the report discloses. The government has no major payments due on those bonds for years, but still investors are getting anxious, pushing down the price on benchmark securities to just 23 cents on the dollar, the report ontes. At that price, they yield 21 percent, making the country one of almost two dozen emerging-market nations that has now sunk deep into distressed territory - a level that signals investors are starting to brace for the possibility of default, the report says. This is old hat by now for Argentine creditors, the report relays. The country has defaulted on its foreign bonds three times this century, most recently in a 2020 restructuring deal that gave investors just over 50 cents on the dollar, the report notes. "The path forward for Argentina to accumulate enough international reserves to make the principal payments on its overseas debt in the coming years looks increasingly narrow," said Jared Lou, a portfolio manager at William Blair Investment Management in New York. "The restructuring last time around was flawed, as it offered debt relief and low coupons without any reforms, and here is where we are today," the report relays. The government is taking steps to defuse the local debt time bomb. On June 22, the Economy Ministry exchanged more than half of its 600 billion pesos (US$4.8 billion) in local obligations due at the end of the month in a swap that drastically reduced pressure for the key rollover, the report notes. But even though the government exchanged more than expected, most of the participation came from public institutions, the report relays. It's far from certain that private creditors will be as enthusiastic, the report notes. The selloff in local debt had been building as Argentines prepared to make June tax payments, and accelerated after comments from the opposition casting doubt on the debt's sustainability, a senior Economy Ministry official said, the report relays. Argentina is planning new measures in the coming days to stabilise the local market, according to the person, who asked not to be identified discussing the matter, the report discloses. Economy Minister Martín Guzman has said repeatedly that the government will never stop paying its local debt, the report notes. But it could be difficult given the targets laid out in the nation's US$44-billion loan program with the International Monetary Fund, the report says. The program limits Argentina's monetary emission to one percent of gross domestic product this year, cutting off a key source of Central Bank financing to pay the local debt, the report notes. Amid all the recent market volatility, efforts to strengthen the peso debt market "remain critical, alongside steadfast implementation of fiscal targets," IMF Managing Director Kristalina Georgieva said, the report relays. Argentina has been slow to hike interest rates in an economy still struggling to leave its pandemic-induced doldrums, the report notes. Growth slowed in the first three months of this year from the previous quarter as the agriculture sector contracted and exports dropped, the report discloses. The Central Bank raised its key interest rate three percentage points to 52 percent earlier this month to prod investors into buying local securities, the report relays. Still, it may not be enough to avoid a debt crisis before presidential elections in October 2023 as investors demand increasingly shorter-dated paper, according to Ramiro Blazquez, the head of strategy for broker BancTrust & Co. in Buenos Aires, the report says. "Shorter and shorter maturities could build into a debt crisis before the elections," Blazquez said, the report notes. "To avoid that scenario, the government will likely resort to a combination of arm-twisting and moderate rate hikes to ensure decent rollover rates. But success is by no means guaranteed," he added. Sale will mostly consist of inflation-linked and discount Treasury notes due later this year, the report relays. Argentina is also selling dollar-linked bonds maturing in 2023 and 2024, the report notes. "As long as the prices are reasonable and the Treasury issues short-dated instruments, most of what needs to be rolled over should be rolled over," said Carolina Gialdi, head of international markets sales and trading at Max Capital in Buenos Aires. "But investors are showing a preference for higher liquidity, so they may not get to 100 percent," she added. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Alberto Angel Fernandez is the current president of Argentina after winning the October 2019 general election. He succeeded Mauricio Macri 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. Standard & Poor's credit rating for Argentina stands at CCC+ with stable outlook, which was a rating upgrade issued on Sept. 8, 2020. Moody's credit rating for Argentina was last set at Ca on Sept. 28, 2020. Fitch's credit rating for Argentina was last reported on Sept. 11, 2020 at CCC, which was a rating upgrade from CC. DBRS' credit rating for Argentina is CCC, given on Sept. 11, 2020. As reported by The Troubled Company Reporter - Latin American, DBRS noted that the recent upgrade in Argentina's ratings (September 2020) follows the closing of two debt restructuring agreements between the Argentine government and private creditors. The first restructuring involved $65 billion in foreign-law bonds. The deal achieved the requisite participation necessary to trigger the collective action clauses and finalize the restructuring on 99% on the aggregate principal outstanding of eligible bonds. DBRS added that the debt restructurings conclude a prolonged default and provide the government with substantial principal and interest payment relief over the next four years. Argentina obtained on March 25, 2022, approval from the Executive Board of the International Monetary Fund (IMF) of a 30-month extended arrangement under the Extended Fund Facility (EFF) amounting to SDR 31.914 billion (equivalent to US$44 billion). Under the new terms, Argentina secured a much-needed grace period that postpones repayment of its debt. However, IMF warned of exceptionally high risks to the program. MASTELLONE HERMANOS: Fitch Affirms 'B-/B' IDRs, Outlook Stable -------------------------------------------------------------- Fitch Ratings has affirmed Mastellone Hermanos Sociedad Anonima's Long-Term Foreign Currency Issuer Default Rating (IDR) at 'B-' and Local Currency IDR at 'B'. The Rating Outlook is stable. In addition, Fitch has affirmed Mastellone's senior secured debt-class rating at 'B-'/'RR4'. The ratings reflect Mastellone's improved debt maturity profile, deleveraging trend, and lower interest expenses. The Long-Term Foreign Currency IDR is constrained by Argentina's 'B-' Country Ceiling. KEY RATING DRIVERS Manageable Leverage: Mastellone's debt/EBITDA ratio is expected to remain stable in 2022 at around 4x in ARS. Leverage should trend downwards over the ratings horizon as the company pays down debt. EBITDA declined to USD53 million in 2021 from USD58 million in 2020. The company's sales volumes declined as a result of lower production post pandemic, which it mitigated with price increases. Fitch estimates the EBITDA margin for 2021 was around 5.3%, down from 6% in 2020. Fitch expects EBITDA of around USD60 million for 2022, and for margins to remain below 6% over the next 24 months. Geographic Concentration: Mastellone is concentrated in Argentina (sovereign rating CCC), where it generates over 80% of its sales. This exposes the company to hyperinflation and other direct and indirect sovereign-related risks, including currency depreciation. In 2021, the company generated about 9% of sales in Brazil (BB-/Negative) and Paraguay (BB+/Stable) and 10.5% from exports. Exposure to Currency Risk: The majority of Mastellone's debt is denominated in USD and over 80% of sales are in Argentine pesos. Capital controls in Argentina also limit access to U.S. dollars. It is unclear how long these will be in place, given the adverse macroeconomic conditions in the country. The difficulty in accessing foreign currency increases refinancing risk for Argentinean companies. Mastellone's recent debt refinancing, however, has reduced this risk by lowering exposure to USD and extending the larger portion of its debt repayments to 2026. Volatility of Raw Milk Production: The company is exposed to raw milk production volatility, and a shortage could interrupt the company's export and foreign businesses, or increase production costs. Mastellone's business is divided among sales to Argentine, Brazilian and Paraguayan domestic markets and exports, with excess raw milk supply exported. Strong Business Position: Mastellone is the largest dairy company and the leading processor of dairy products in Argentina, operating as the number one player in the fluid milk market, based on physical volume, with a market share of approximately 65%. The company maintains the No. 1 or No. 2 market position in most of its product lines, and its strong market shares allow Mastellone to benefit from economies of scale in production, marketing and distribution. The company purchases about 13% of all raw milk in Argentina, which provides it with a degree of negotiating power. Arcor and Bagley Call Option: Fitch views Mastellone as strategic for Arcor in the long term. Arcor S.A.I.C. and Bagley Argentina, S.A., together, own about 49% of Mastellone's shares, and Arcor has a call option for outstanding corporate stock of Mastellone that started in 2020. DERIVATION SUMMARY Mastellone is Argentina's largest dairy company and leading processor of dairy products, with a market share of 65% in fluid milks and 30% across all dairy products in terms of total volume. The company's rating is limited by Argentina's 'B-' country ceiling. Mastellone has a weaker position in scale, product diversification, profitability and geographic diversification compared with international peers such as Fonterra Co-operative Group Limited (A/Stable), Nestle SA (A+/Stable), Sigma Alimentos, S.A. de C.V. (BBB/Stable) and Arcor (B/Stable). KEY ASSUMPTIONS Modest revenue growth driven by domestic high double-digit price increases and exports; EBITDA approaching USD60 million in 2022; Debt/EBITDA of 4x in ARS or around 3.5x in USD for 2022. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- An upgrade of the Argentine sovereign could result in a positive rating action for the Foreign Currency IDR; -- Increased ownership above 50% by Arcor and Bagley could result in positive actions for both the Foreign and Local Currency IDRs. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- A downgrade of Argentina's country ceiling rating would likely lead to a negative rating action on the Foreign and Local Currency IDRs; -- Debt to EBITDA above 5x on a sustained basis could impact the Local Currency IDR. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. LIQUIDITY AND DEBT STRUCTURE Adequate Liquidity: Mastellone's liquidity is adequate as the company does not face high short-term refinancing post the debt exchange transaction. The debt is comprised of the USD110 million secured bond due in June 2026, a five-year USD50 million secured loan amortized over 17 quarterly periods beginning June 1, 2022, and two local bonds due in 2023 and 2024 of manageable amounts. ISSUER PROFILE Mastellone is the largest dairy company and the leading processor of dairy products in Argentina. It is first in the fluid milk market, based on physical volume. The company maintains the No. 1 or No. 2 market position in most of its product lines. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This 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. DEBT RATING RECOVERY PRIOR ---- ------ -------- ----- Mastellone Hermanos Sociedad Anonima LT IDR B- Affirmed B- LC LT IDR B Affirmed B senior secured LT B- Affirmed RR4 B- PAN AMERICAN: Fitch Rates $120MM Unsecured Notes Due 2025 'BB-' --------------------------------------------------------------- Fitch Ratings has assigned a 'BB-' rating to Pan American Energy S.L., Argentine Branch's USD120 million proposed unsecured notes due in 2025. The notes will be guaranteed by Pan American Energy S.L. (PAE; BB-/Stable) and will be used to exchange the notes due in 2023. Supporting factors for PAE's 'BB-' ratings are its stable production track record, large reserve base, and low leverage. The Foreign Currency (FC) Issuer Default Rating (IDR) is three-notches higher than Argentina's 'B-' Country Ceiling due to the cash held abroad by the company, its access to hard-currency credit lines, and cash flow from its Bolivian and Mexican operations. The combination of these factors adequately cover the next 24 months of debt service by a ratio in excess of 1.5x. KEY RATING DRIVERS Geographic Diversification: PAE's operations in Mexico and Bolivia are positive credit considerations. However, the company's overall credit quality remains highly tied to Argentina, as PAE's operations in that country represent an estimated 80% of its EBITDA in 2021. EBITDA from Mexico and Bolivia is projected to increase during the rating horizon, which could result in the applicable Country Ceiling changing from Argentina to Bolivia (Country Ceiling of B) or Mexico (Country Ceiling of BBB+) per Fitch's Non-Financial Corporates Exceeding the Country Ceiling Rating Criteria. Stable Production Profile: PAE's has a strong and stable production profile that is consistent with a higher rating category. PAE is expected to increase daily average production to over 250,000boe/d by 2023 under Fitch's base case with production in 2022 projected to grow by mid-single digits. PAE's consolidated production increased by 10% in 2021 due to post-COVID-19 corrections, driven by higher Argentine gas production (+15%), and a full year of growing operations in Mexico. Fitch believes the company has extraordinary flexibility from its strong reserve base, which allows production adjustments to support profitability. Strong Hydrocarbon Reserves: The company has a strong 1P reserve life of 19 years, providing ample flexibility to adjust capex investment. PAE reported 1,608MMboe in 1P reserves, 66% of which is oil and 34% natural gas as of YE 2020. Fitch estimates PAE had oil 1P reserve life of 24 years and gas 1P reserve life of 12 years at YE 2021. PAE's strong reserve base is supported by a strong concession life. Operating concessions expire in 2046-2047, and the company's Mexico asset has a remaining concession life of 24 years. Solid Leverage Metrics: The company's capital structure remains strong with gross leverage, defined as total debt to EBITDA, of 1.7x at FY 2021. Total debt to 1P reserves was USD1.74/boe. Fitch estimates the company's gross leverage will average 2.2x between 2022-2024 as PAE's indebtedness modestly increases to execute on expansion plans. The company has solid access to capital and will likely refinance its debt at competitive rates, especially with its Mexican asset in full operation. Integrated Business Model: PAE's integrated energy model in Argentina gives the company flexibility to optimize profitability. After the integration of Axion Energy by PAE, the company became the largest private integrated energy company in Argentina. PAE's upstream business is the largest private Oil & Gas company in the country, and the largest private entity with 19% market share in oil production and 14% in gas production in Argentina. Axion was the third largest refiner in Argentina during 2021 with a 16% market share with 95kbbl/d of refining capacity after the refinery's successful modernization. PAE expects to operate the refinery at 80% capacity, and to produce higher-value products, which are currently imported. PAE's facility along with YPF are the only facilities in Argentina that can process its heavy crude, which it generally exported. With the completion of the expansion, PAE has greater flexibility to meet domestic demand of diesel product, with the ability to adjust its operations in line with domestic and international demand. Strong Ownership: PAE is rated on a standalone basis. Per Fitch's parent-subsidiary criteria, it views the legal, strategic and operational incentive from its shareholders as low. The company's primary shareholders, which is a 50/50 strategic alliance between BP plc (A/Stable) and BC Energy Investments Corp. ([BC Energy] formerly known as Bridas Corporation). BC Energy is also a 50/50 joint venture between Bridas Energy Holdings Ltd. and CNOOC International Ltd. (A+/Stable). Even though, PAE's ratings are not impacted by those of its shareholders. The company stands to benefit from their industry and international expertise and relationships with global creditors. DERIVATION SUMMARY PAE's FC IDR continues to be constrained by the Argentine Country Ceiling at 'B-'; however, its medium production size of 250kboed and strong reserve life of close to 20 years compare favorably to other 'BB'-rated oil and gas exploration and production producers. These peers include Tecpetrol Internacional (Tecpetrol; BB/Stable) with production of 180kboed, Murphy Oil Corporation (BB+/Stable) with 150kboed and YPF SA (CCC) with 480kboed. Further, PAE reported 1,608 million boe of 1P reserves at the end of 2021 equating to a reserve life of 19 years, higher than Murphy Oil's at 14 years and Tecpetrol's with 10 years. Fitch expects the company will be able to maintain its strong reserve life. PAE's capital structure remained strong in YE 2021 with gross leverage measured by total debt to EBITDA at 1.7x, down from 3.7x at YE 2020, in line with Murphy Oil (2.3x), but higher than Tecpetrol (0.8x). On debt to 1P reserve basis, Fitch estimates PAE's debt as of 2020 to 1P reserves at USD1.34boe comparing favorable to Tecpetrol (USD1.62boe), Murphy Oil (USD3.4boe) and YPF (USD7.70boe). PAE operates in a lower OE, which is a constraining factor for its ratings, but receives a one notch uplift from the Country Ceiling due to its cash flows from export revenues and cash flows from abroad. KEY ASSUMPTIONS -- Fitch's price deck is applied at USD71bbl in 2021, USD70bbl in 2022, USD60bbl in 2023 and USD53bbl in the long term; -- Reserve replacement ratio of 102% per annum; -- Domestic gas price of USD3.10MMBTU in 2021 and USD3.50MMBTU over the rated horizon; -- Average gross production of 250,000boe/d-290,000boe/d from 2021-2024; -- Production cost of $7.7boe between 2021-2024; -- Royalties of $5.4boe between 2021-2024; -- SG&A of $3.0boe between 2021-2024; -- Annual consolidated capex averaging of USD850 million per year from 2021-2024; -- No dividend payments in 2021 and 2022, and $35MM per annum thereafter. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- Cash flows from operations outside of Argentina (Bolivia and Mexico) adequately covering hard currency gross interest expense for 12 months, resulting in a higher applied Country Ceiling than Argentina (B-). Factors that could, individually or collectively, lead to negative rating action/downgrade: -- Downgrade of the Country Ceiling of Argentina; -- PAE's ratings could be negatively affected if hard-currency liquidity is weakened by capital controls; -- Inability to renew hard-currency committed credit lines from highly rated international banks. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. LIQUIDITY AND DEBT STRUCTURE Strong Liquidity: Fitch believes PAE can comfortably service debt with cash on hand and cash flows through the rating horizon in the event the company faces a challenging financing environment due to the Argentina's capital controls. PAE also has a strong and conservative track record of tapping local and international markets and accessing capital at competitive rate. ISSUER PROFILE Pan American Energy is a leading integrated energy company with upstream and downstream operations in Argentina, as well as upstream operations in Bolivia and Mexico. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This 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. DEBT RATING ---- ------ Pan American Energy LLC Sucursal Argentina senior unsecured LT BB- New Rating =========== B R A Z I L =========== BRAZIL: Government Reports Bigger-Than-Expected Deficit in May -------------------------------------------------------------- globalinsolvency.com, citing Reuters, reports that Brazil's federal government posted a bigger-than-expected primary budget deficit in May as net revenue fell during the period, official figures showed. According to the Treasury, the budget deficit reached 39.4 billion reais ($7.55 billion), worse than the median forecast of a 30.3 billion reais deficit in a Reuters poll, the report notes. Net revenue fell 3.3% in real terms over May of last year, as transfe2rs to states and municipalities surged 35.4% on the same basis, the report relays. That jump occurred on the back of a 7.7 billion reais atypical transfer from proceeds received in the transfer of rights for the Sepia and Atapu deepwater oil fields, which are located in the pre-salt region, the report discloses. Total government expenditures, in turn, rose 7.9% in May over the year-earlier period, driven by an increase in social security benefits after the government decided to bring forward the so-called thirteenth payment for retirees and pensioners, the report relays. In the 12 months to May, the primary deficit reached 21.3 billion reais, worth 0.26% of gross domestic product, the Treasury said, the report adds. As recently reported in the Troubled Company Reporter-Latin America on June 17, 2022, S&P Global Ratings affirmed its 'BB-/B' long- and short-term foreign and local currency sovereign credit ratings on Brazil. =============== C O L O M B I A =============== ECOPETROL SA: S&P Affirms 'BB+' LongTerm ICR, Outlook Stable ------------------------------------------------------------ S&P Global Ratings affirmed its 'BB+' long-term issuer credit and issue-level ratings on Colombian state-owned oil and gas company Ecopetrol S.A. The stable outlook reflects S&P's view that Ecopetrol will continue to play a very important role in the Colombian economy and maintain its very strong link to the government. S&P said, "We expect the company's debt to EBITDA to be below 2.0x in the next two years, mainly due to our higher oil price assumptions and EBITDA, despite Ecopetrol's efforts to stabilize production and higher debt related to ISA's acquisition for about $3.6 billion. Our revised price assumptions include a $10 per barrel (bbl) increase in Brent oil prices for the remainder of 2022 and 2023 to $100/bbl, and $85/bbl, respectively. We expect Ecopetrol's debt to EBITDA and discretionary cash flows (DCF) to debt to improve in 2022 to about 1.5x and above 5.0%, respectively. As a result, we kept our 'bbb-' stand-alone credit profile (SACP) unchanged. "We believe that ISA's main operations in the electric power transmission segment are insulated from cash flow volatility because these assets receive payments from their availability to the national systems, rather than from the energy flows through them. Therefore, ISA generates a more resilient and predictable revenue stream than that in the oil and gas industry that's heavily influenced by variations in international prices for these commodities. As a result, the transmission line business has higher margins (70%) than the oil and gas industry's 40%. Ecopetrol's EBITDA margins have risen to about 46% for the quarter ended March 31, 2022, from 40% during the same period last year. While the transmission line represents about 12% of the company's total EBITDA and about 10% of total revenues as of the first quarter of 2022, we expect this segment to increase its contribution to 15% and 13%, respectively, in the next three years. "This is despite the new administration's ambitious proposals to accelerate energy transition towards renewable energy and to potentially cancel field exploration auctions. In our opinion, Ecopetrol has already an extensive pipeline projects for the next 10 years, coupled with about 280 megawatts (MW) in renewable energy. The company started operations of the San Fernando Solar Ecopark last year an achieved a total of 112.5 MW of renewable energy, representing 8% of its installed capacity. We're not including in our base-case assumptions any additional hydrocarbon production for the next couple of years from unconventional sources in Colombia, given that the two main projects are still in initial phases, Kalé and Platero." ESG credit indicators: E-4, S-2, G-2 S&P said, "Environmental credit factors are a negative consideration in our credit rating analysis on Ecopetrol due to the inherent environmental risks in the oil and gas industry. However, the company has set specific decarbonization and energy consumption milestones to reduce gas emissions, in line with government plans. Ecopetrol has allocated a higher portion of its capital spending to ensure its competitiveness and expand its decarbonization initiatives. Its recent acquisition of ISA will enable the company to diversify into a regulated and predictable electric transmission business, while taking further steps toward transitioning to renewable energy." =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: BCRD Ups Monetary Policy Rate to 7.25% Per Year ------------------------------------------------------------------- Dominican Today reports that the Central Bank of the Dominican Republic (BCRD) reported that it decided to increase its monetary policy interest rate by 75 basis points, from 6.50 to 7.25% per year. In this way, the permanent liquidity expansion facility (1-day Repos) increases from 7.00 to 7.75% per year, and the rate of remunerated deposits (Overnight) from 6.00 to 6.75% per year, according to Dominican Today. According to the records published by the Central Bank, the last time the monetary policy rate was so high was in January 2009, when it was set at 8.50%, the report recalls. This would be the highest rate in the last 13 years, the report notes. According to the statement, this decision is based on an "exhaustive evaluation" of the recent behavior of the world economy and its impact on inflation, influenced by geopolitical conflicts and the global cost shock, the institution reported, Dominican Today relays. In that order, the BCRD indicated that the dynamics of prices continue to be affected by external factors that have been more persistent than expected, associated with the extraordinary increase in the prices of oil and other raw materials, as well as the high costs of international transport of containers and other disruptions in supply chains, the report says. In addition to these external components, in recent months, internal pressures have begun to be verified to the extent that aggregate demand has recovered notably in relation to pre-pandemic levels, and the rates of various economic services have been adjusted, the report notes. In particular, the monthly variation of the consumer price index (CPI) stood at 0.49% during May 2022, while year-on-year inflation, that is, in the last 12 months, moderated slightly to 9.47%, the report discloses. On the other hand, year-on-year core inflation, which excludes the most volatile components of the basket, reached 7.29% in May, reflecting second-round effects on production associated with external supply shocks and internal demand pressures, the report relays. "To help counteract inflationary pressures, the Central Bank has significantly reduced the excess liquidity of the financial system through open market operations and the gradual return of the resources that had been granted during the pandemic, the report notes. These measures have accelerated the transmission mechanism of monetary policy, contributing to the adjustment in domestic interest rates and significant moderation in the growth of monetary aggregates", explained the institution in the document delivered to the media, the report relates. He added that liquidity control measures and gradual increases in the monetary policy rate had reversed the expansionary stance implemented during the pandemic, facilitating a gradual convergence of inflation to the target range of four percent ± one percent over the monetary policy horizon, the report notes. He explained that the monetary normalization process seeks to avoid overheating the economy, deepen the inflationary pressures of exogenous origin and internal demand, and deteriorate the differential with respect to external interest rates that could cause volatility in the flow of capital, the report discloses. In this active monetary policy scenario, the BCRD will continuously monitor global financial conditions and economic agents' expectations to take the necessary measures to maintain price stability, the report says. International Environment In the international environment, the BCRD indicated that uncertainty remains high due to the military confrontation between Russia and Ukraine, which has caused a deterioration in the global economic outlook, the report relays. As a result, according to Consensus Forecasts, the forecasts for world growth continue to be revised downwards to 2.9% in 2022, while international inflation projections continue to increase, the report notes. He added that in the United States of America, the Dominican Republic's leading trading partner, growth has moderated to 3.5% year-on-year in the first quarter of 2022, equivalent to an annualized quarter-on-quarter contraction of -1.6%, the report discloses. On the other hand, year-on-year inflation in that country reached 8.6% in May, the highest in four decades and more than four times higher than the 2.0% target for average inflation, 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. TCRLA reported in April 2019 that the Dominican Today related that Juan Del Rosario of the UASD Economic Faculty cited a current economic slowdown for the Dominican Republic and cautioned that if the trend continues, growth would reach only 4% by 2023. Mr. Del Rosario said that if that happens, "we'll face difficulties in meeting international commitments." An ongoing concern in the Dominican Republic is the inability of participants in the electricity sector to establish financial viability for the system. Fitch Ratings, in December 2021, revised the Outlook on Dominican Republic's Long-Term Foreign-Currency Issuer Default Rating (IDR) to Stable from Negative and affirmed the IDRs at 'BB-'. The revision of the Outlook to Stable reflects the narrowing of Dominican Republic's government deficit and financing needs since Fitch's last review resulting in the stabilization of the government debt/GDP ratio, as well as the investment-driven economic momentum, reflected in the faster-than-expected economic recovery in 2021 that Fitch expects to carry into above-potential GDP growth during 2022 and 2023. Standard & Poor's, also in December 2021, revised its outlook on the Dominican Republic to stable from negative. S&P also affirmed its 'BB-' long-term foreign and local currency sovereign credit ratings and its 'B' short-term sovereign credit ratings. The stable outlook reflects S&P's expectation of continued favorable GDP growth and policy continuity over the next 12 to 18 months that will likely stabilize the government's debt burden, despite lack of progress with broader tax reforms, S&P said. A rapid economic recovery from the downturn because of the pandemic should mitigate external and fiscal risks. Moody's affirmed the Dominican Republic's long-term issuer and senior unsecured ratings at Ba3 and maintained the stable outlook in March 2021. ============= J A M A I C A ============= JAMAICA: BoJ to Reveal Latest Interest Rate Decision ---------------------------------------------------- RJR News reports that the Bank of Jamaica's Monetary Policy Committee is scheduled to hand down its latest interest rate decision. Last month, the committee agreed to a 50 basis point increase pushing the interest rate to 5 per cent, according to RJR News. The committee will also share its latest inflation projections, the report relays. As reported in the Troubled Company Reporter-Latin America in March 2022, Fitch Ratings has affirmed Jamaica's Long-Term Foreign Currency Issuer Default Rating (IDR) at 'B+'. The Rating Outlook is Stable. =============== P A R A G U A Y =============== FRIGORIFICO CONCEPCION: Fitch Affirms 'B+/B+' IDRs, Outlook Stable ------------------------------------------------------------------ Fitch Ratings has affirmed Frigorifico Concepcion S.A. (Frigorifico Concepcion) Long-Term Foreign and Local Currency Issuer Default Ratings at 'B+'. In addition, Fitch has affirmed the senior secured bond at 'B+'/'RR4'. The Rating Outlook is Stable. The ratings reflect the company's improved business profile and expected deleveraging with the ramp-up of profitability from the recent acquisitions in Brazil and Paraguay. KEY RATING DRIVERS Expected Deleveraging: Net debt/EBITDA is expected to decline below 3x in 2022 after reaching 4.1x at YE21, which was low for the rating. Net leverage peaked in 2021 due to negative FCF, high capex, and several acquisitions in Paraguay and Brazil. Fitch forecasts EBITDA close to USD110 million in 2022 compared with USD65 million in 2021. EBITDA is expected to increase due to the ramp-up of companies acquired in 2021, improved performance of the Bolivian operation, and higher export beef prices. In 1Q22, LTM sales increased 37% yoy due to the increase in export sales, and LTM EBITDA reached USD72 million in 1Q22 (EBITDA margin of 9.7%). The group benefits from low production costs, cattle availability in the domestic market, and high international prices. Expansion: Fitch projects investments of about USD34 million for growth and maintenance in 2022, which in addition to working capital needs, should cause FCF after interest payment to remain negative in 2022. Frigorifico Concepcion spent USD63 million in investments and acquisitions in 2021. The company expanded its production basis in Paraguay, Bolivia, and entered the Brazilian market by acquiring BMG Foods in 2021. Investments are expected to be related to constructing a pork processing plant in Paraguay in 2022, which should be operational by 2023. Increased Geographical Protein Diversification: Frigorifico Concepcion operates in beef and pork following the 2021 acquisitions, which in Fitch's view is positive as it diversifies the company's production and revenue base. Beef remains the main protein as Fitch estimates that beef operations in Paraguay and Bolivia will account for more than 80% of EBITDA in 2022. In addition, the company is ramping up production at BMG Foods in Brazil, representing about 13.6% of sales as of 1Q22. As a protein producer, the company remains exposed to sanitary, environmental including cattle traceability, climatic change, quotas, and export restriction risks, which explains its historically volatile performance. Export Business Model: Frigorifico Concepcion has developed an export platform that benefits from high international protein demand; 78% of revenues came from exports to countries such as Chile, Brazil and China from Bolivia LTM 1Q22. The company can export to China through its 80% controlled subsidiary in Bolivia, as meatpackers in Paraguay are not allowed to export to China, given Paraguay's recognition of Taiwan as a sovereign. In addition, Fitch understands that the company was able to redirect shipments to other export markets that were initially destined for Russia (21% revenues as of 1Q22). DERIVATION SUMMARY Frigorifico Concepcion's ratings reflect its solid business profile as a protein company with a leading presence in Paraguay and Bolivia. The company entered the Brazilian protein market by acquiring BMG Foods (beef and pork) in 2021.Beef protein remains the main contributor to the group's profitability. The company has developed an export-oriented business model. About 83% of Frigorifico's revenues were derived from exports in 2021. The company has been able to maintain good operating margins over the years despite facing several challenges such as export restrictions or unfavorable weather conditions. From a financial standpoint, Fitch expects net leverage to gradually decline as the newly acquired assets enter production gradually. The company benefits from a favorable debt amortization profile and post-bond issuance in 2021. However, FCF remains limited, resulting from investments and working capital needs. The ratings also consider limited scale and exposure to potential import or local restrictions. KEY ASSUMPTIONS -- Sales driven by higher slaughtering capacity, new acquisitions, and the ramp-up of the Bolivian operations; -- Negative FCF due to working capital and investments; -- No dividends paid in 2022; -- Net debt/EBITDA below 3x in 2022. KEY RECOVERY RATING ASSUMPTIONS The recovery analysis assumes Frigorifico Concepcion would be reorganized as a going-concern (GC) in bankruptcy rather than be liquidated. Fitch has assumed a 10% administrative claim. The GC EBITDA assumption of about USD54 million reflects the volatility of the protein industry, potential sanitary risks or temporary shutdown of any export markets. An EV multiple of 5x EBITDA is applied to the GC EBITDA to calculate a post-reorganization enterprise value. Fitch uses a multiple of 5x that reflects the sector dynamics and the company's business profile as mid-sized company with strong growth prospect and good operating margin. The above assumption result in a recovery rate assumption within the 'RR3' range for the new senior secured notes. Due to the 'RR4' cap for Paraguay Corporates, Fitch limits the recovery for the senior secured bond at 'RR4' despite a higher projected recovery. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- Greater scale and profitability; -- Full ramp-up of recent acquisitions and investments; -- Good tracked record on business integration -- Debt/ EBITDA below 3x on a sustained basis; -- Sustainable positive FCF. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- Debt/ EBITDA above 4.5x or net debt/ EBITDA above 3.5x a sustained basis; -- Deterioration of liquidity. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. LIQUIDITY AND DEBT STRUCTURE Sound Liquidity: Cash and cash equivalents was USD70 million and short-term debt totaled about USD17 million as of 1Q22. Total debt was USD355 million as of 1Q22, comprised of USD300 million secured notes due in 2028 and bank debt. The company does not hedge as revenues and costs are mainly in U.S. dollars. ISSUER PROFILE Frigorifico Concepción S.A. (Frigorifico) is a leading exporter of beef from Paraguay and accounted for 22.2% of Paraguay's beef processing in 2020 based on the number of head of cattle slaughtered. The company was founded in 1997 and is based in Concepción, Paraguay. In addition to its operations in Paraguay, the company has a 80% ownership interest in a Bolivian beef processing facility, which began full operations in October 2019. In 2021, the company started its expansion and geographical and protein diversification (pork) with the acquisition of assets in Brazil (BMG Foods) and in Paraguay. ESG CONSIDERATIONS Frigorifico Concepcion has an ESG Relevance Score of '4' for Governance Structure due to ownership concentration. The shareholder's strong influence upon management could result in decisions being made to the detriment of the company's creditors, which has a negative impact on the credit profile, and is relevant to the rating in conjunction with other factors. Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This 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. DEBT RATING RECOVERY PRIOR ---- ------ -------- ----- Frigorifico Concepcion S.A. LT IDR B+ Affirmed B+ LC LT IDR B+ Affirmed B+ senior secured LT B+ Affirmed RR4 B+ ===================== P U E R T O R I C O ===================== PUERTO RICO: HTA Plan Confirmation Hearing Set for Mid-August ------------------------------------------------------------- Robert Slavin of The Bond Buyer reports that Puerto Rico Highways and Transportation Authority plan confirmation hearing scheduled for mid-August 2022. Puerto Rico bankruptcy Judge Laura Taylor Swain this fourth week of June 2022 approved key Puerto Rico Highways and Transportation Authority bankruptcy documents and dates, moving the plan closer to confirmation with a final hearing set for mid-August 2022. Swain filed her order in the U.S. District Court for Puerto Rico, approving the Oversight Board-proposed disclosure statement, ballots, and election notices on the proposed plan of adjustment. Swain set the confirmation hearing for Aug. 17 to 18, 2022. In mid-May, the Oversight Board told Swain the plan already was supported by enough of the creditors to assure passage. About Puerto Rico Puerto Rico is a self-governing commonwealth in association with the United States. The chief of state is the President of the United States of America. The head of government is an elected Governor. There are two legislative chambers: the House of Representatives, 51 seats, and the Senate, 27 seats. The governor-elect is Ricardo Antonio "Ricky" Rossello Nevares, the son of former governor Pedro Rossello. In 2016, the U.S. Congress passed PROMESA, which, among other things, created the Financial Oversight and Management Board and imposed an automatic stay on creditor lawsuits against the government, which expired May 1, 2017. The members of the oversight board are: (i) Andrew G. Biggs, (ii) Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J. Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii) David A. Skeel Jr. On May 3, 2017, the Commonwealth of Puerto Rico filed a petition for relief under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act ("PROMESA"). The case is pending in the United States District Court for the District of Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico's PROMESA petition is available at http://bankrupt.com/misc/17-01578-00001.pdf On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation (COFINA) commenced a case under Title III of PROMESA (D.P.R. Case No. 17-01599). Joint administration has been sought for the Title III cases. On May 21, 2017, two more agencies -- Employees Retirement System of the Government of the Commonwealth of Puerto Rico and Puerto Rico Highways and Transportation Authority (Case Nos. 17-01685 and 17-01686) -- commenced Title III cases. U.S. Chief Justice John Roberts has named U.S. District Judge Laura Taylor Swain to preside over the Title III cases. The Oversight Board has hired as advisors, Proskauer Rose LLP and O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq., at O'Neill & Borges LLC are onboard as attorneys. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains a case web site at: https://cases.primeclerk.com/puertorico Jones Day is serving as counsel to certain ERS bondholders. Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General Obligation Bondholders. ===================================== T R I N I D A D A N D T O B A G O ===================================== TRINIDAD & TOBAGO: Discuss Energy Cooperation With Suriname ----------------------------------------------------------- Trinidad Express reports that Trinidad and Tobago and Suriname are on the verge of forging closer energy ties, based on discussions between officials of the two Caribbean Community (Caricom) member states. President Chandrikapersad Santokhi and Trinidad and Tobago's Minister of Energy Stuart Young have held extensive discussions about a potential energy collaboration on the sidelines of the second Suriname Energy, Oil and Gas Summit & Exhibition (SEOGS), according to Trinidad Express. Young said serious consideration will be given to how to intensify cooperation between the two countries, saying that "the oil and gas industry is one of the important areas to enter into a partnership," the report notes. Trinidad and Tobago is the largest producer of oil and gas in the Caribbean. These natural resources account for about 40 per cent of the country's GDP and 80 per cent of its exports, the report relays. Recent growth has been fuelled by investments in liquefied natural gas, with the twin-island republic transitioning from an oil to a natural gas-based economy, the report discloses. Suriname's Minister of Foreign Affairs, International Business and International Cooperation Albert Ramdin said Suriname could learn from Trinidad's expertise, the report says. "We discussed bilateral cooperation in general and cooperation in the field of energy, with a view to developments in the Surinamese oil and gas sector. We want to respond immediately," he said, noting that T&T is a strong player in the oil and gas industry, the report relays. "We can learn from this and work together. The talks will continue when the Prime Minister of Trinidad and Tobago will also be in Suriname to attend the Caricom Heads of Government Meeting," the report notes. In his address during the SEOGS, Ramdin said the oil, and gas industries were important sectors for the Suriname economy that will contribute significantly to the socio-economic development of the country in a sustainable way, the report discloses. "Visionary leadership is needed to create the spin-offs of cost-effective gas-based energy generation, such as new industrial complexes that will guarantee the continuity of food production, for example. And that leadership is there," he said, identifying the host President and his Guyanese counterpart Irfaan Ali among those with the leadership qualities and vision to take both countries to the next level, the report relays. Also on the sidelines of the conference, local State-owned energy companies, Heritage Petroleum and Paria Fuel Trading signed a Memorandum of Understanding with Staatsolie Maatschappij Suriname N.V, the state-owned Suriname energy company, the report notes. The MoU establishes a framework for cooperation among three of the top state-owned energy companies in the Caribbean region, the report relays. Energy Minister Stuart Young, who was at the signing,affirmed the opportunities for collaboration among the MoU parties, the report notes. "As Caricom partners, Trinidad and Tobago and Suriname will work together to address the challenges to develop our energy sectors as well as those of our region. Our countries have an important role to play in energy security for the region. I look forward to a fruitful relationship and I am pleased that discussions have already commenced among the parties," said Young, the report says. Under the MoU, the Parties agreed to enter into discussions related to identifying mutually beneficial partnership opportunities under three broad areas- Exploration and Production (E&P); Trading and Marketing; and Environment, Social, and Governance (ESG), the report adds. =============== X X X X X X X X =============== [*] BOND PRICING: For the Week June 27 to July 1, 2022 ------------------------------------------------------ Issuer Name Cpn Price Maturity Country Curr ----------- --- ----- -------- ------- --- Avadel Finance Cayman 4.5 55.0 2/1/2023 US USD Sylph Ltd 2.4 65.1 9/25/2036 KY USD Argentine Republic Gov 4.3 70.0 12/31/2033 AR JPY Provincia de Buenos Ai 7.9 75.3 6/15/2027 AR USD Province of Santa Fe 6.9 74.7 11/1/2027 AR USD Polarcus Ltd 5.6 71.8 7/1/2022 AE USD Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD Argentine Republic Gov 0.5 27.6 12/31/2038 AR JPY Metrogas SA/Chile 6.0 41.6 8/1/2024 CL CLP Province of Santa Fe 6.9 75.2 11/1/2027 AR USD Provincia de Cordoba 7.1 74.7 8/1/2027 AR USD Esval SA 3.5 49.9 2/15/2026 CL CLP Argentine Republic Gov 6.9 75.2 1/11/2048 AR USD Argentine Republic Gov 8.3 74.5 12/31/2033 AR USD Provincia del Chubut A 4.5 2208 3/30/2021 AR USD Argentina Bonar Bonds 5.8 75.2 4/18/2025 AR USD Noble Holding Internat 6.1 62.0 3/1/2041 KY USD Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD Provincia de Rio Negro 7.8 70.3 12/7/2025 AR USD Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD AES Tiete Energia SA 6.8 1.2 4/15/2024 BR BRL Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD Province of Santa Fe 6.9 74.7 11/1/2027 AR USD Fospar S/A 6.5 1.2 5/15/2026 BR BRL Cia Latinoamericana de 9.5 73.9 7/20/2023 AR USD Argentine Republic Gov 6.3 74.1 11/9/2047 AR EUR Argentina Bonar Bonds 7.6 74.4 4/18/2037 AR USD Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD Cia Latinoamericana de 9.5 74.3 7/20/2023 AR USD Noble Holding Internat 6.2 62.2 8/1/2040 KY USD Provincia del Chaco Ar 4.0 0.0 12/4/2026 AR USD Province of Santa Fe 6.9 75.2 11/1/2027 AR USD Noble Holding Internat 5.3 60.5 3/15/2042 KY USD Provincia de Cordoba 7.1 72.7 8/1/2027 AR USD Argentine Republic Gov 8.3 74.5 12/31/2033 AR USD Provincia de Rio Negro 7.8 70.4 12/7/2025 AR USD City of Cordoba Argent 7.9 73.1 9/29/2024 AR USD Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD Argentine Republic Gov 7.1 75.7 6/28/2117 AR USD Provincia del Chaco Ar 9.4 74.8 8/18/2024 AR USD Provincia de Rio Negro 7.8 70.3 12/7/2025 AR USD ********* 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 2022. 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 * * *