/raid1/www/Hosts/bankrupt/TCRLA_Public/230421.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
Friday, April 21, 2023, Vol. 24, No. 81
Headlines
A R G E N T I N A
ARGENTINA: IDB OKs $200M Loan to Bolster Healthcare System
B A H A M A S
BAHAMAS: IDB OKs S$160M-Loan to Enhance Natural Disaster Risk Mgmt.
FTX GROUP: Recovered More Than $7.3 Billion in Assets
B O L I V I A
BOLIVIA: S&P Lowers SCR to 'B-' on Worsening External Liquidity
B R A Z I L
BRAZIL: Annual Inflation Hits Lowest Since 2021
C H I L E
WOM MOBILE: Moody's Lowers CFR to B2 & Alters Outlook to Negative
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Inflation Expected to Slow Down in 2023
DOMINICAN REPUBLIC: World Bank Lowers Growth Forecast for Country
P U E R T O R I C O
ECSEM CORP: May 24 Plan & Disclosure Hearing Set
- - - - -
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A R G E N T I N A
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ARGENTINA: IDB OKs $200M Loan to Bolster Healthcare System
----------------------------------------------------------
The Board of Executive Directors of the Inter-American Development
Bank (IDB) has authorized a $200 million loan to enhance
Argentina's healthcare system. This financing is the first
individual operation of a conditional credit line for investment
projects (CCLIP) totaling $600 million.
As a result of the pandemic, emergency healthcare has displaced,
limited, and postponed preventive care and treatment for many
patients with chronic diseases. In addition, a sizable portion of
the population does not generally seek preventive medical care to
receive timely assessments of their risk levels.
This first individual operation aims to reduce premature mortality
and close the gaps in access to health services between Argentina's
provinces. To achieve its goal, the initiative will increase
effective access to diagnostic and care services for the population
relying solely on public healthcare coverage.
Among other objectives, this initiative aims to increase cervical
cancer screenings for women with public coverage only and increase
human papillomavirus vaccination rates for 11-year-old girls and
boys. Another goal is to better identify and monitor people with
high blood pressure, hyperglycemia, or diabetes.
In Argentina, as in the rest of the world, the pandemic has
heightened demand for mental health care. This operation will
support the implementation of the Community Mental Health Model and
increase the number of mental health medications delivered to
health facilities.
The IDB loan is designed to benefit those who rely solely on public
healthcare coverage (an estimated 20.5 million people in 2022)
across all 23 of Argentina's provinces plus the autonomous city of
Buenos Aires.
The $200 million IDB loan has a 3-year disbursement period, a
5.5-year grace period, and an interest rate based on the Secured
Overnight Financing Rate (SOFR).
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.
Last March 25, 2022, Argentina finalized agreement with the IMF for
a new USD44 billion Extended Funding Facility (EFF) intended to
fund USD40 billion in looming repayments of the defunct Stand-By
Arrangement (SBA), with an extra USD4 billion in up-front net
financing. This has averted the risk of a default to the IMF
and is facilitating a parallel rescheduling of Paris Club debt.
S&P Global Ratings, on March 29, 2023, lowered its long-term
foreign currency sovereign credit rating on Argentina to 'CCC-'
from 'CCC+'. S&P also affirmed its 'C' short-term foreign currency
sovereign credit rating and its 'CCC-/C' local currency ratings on
Argentina. The outlook on the long-term ratings is negative. S&P
also lowered the transfer and convertibility assessment to 'CCC-'
from 'CCC+'.
The negative outlook on the long-term ratings reflects risks
surrounding pronounced economic imbalances and policy uncertainties
before and after the 2023 national elections. Divisions across the
political spectrum constrain the sovereign's ability to implement
timely changes in economic policy. Global capital markets are
closed to Argentina. In the local market, swaps are being deployed
to manage large maturities before placing debt through traditional
auctions. The central bank continues to play a key role as a
backstop for local debt management in the secondary market. The
ongoing severe drought has exacerbated pressures in the already
disrupted foreign exchange (FX) market.
Fitch Ratings, on the other hand, downgraded Argentina's Long-Term
Foreign Currency
Issuer Default Rating (IDR) to 'C' from 'CCC-', and has affirmed
the Long-Term Local Currency IDR at 'CCC-' on March 24, 2023.
Fitch's downgrade of Argentina's rating to 'C' from 'CCC-' follows
an executive decree that forces domestic public-sector entities
into operations involving their holdings of
sovereign debt securities, which would involve unilateral exchanges
and forced currency conversion that constitute default events under
Fitch's criteria. The 'C' rating reflects Fitch's view that
default
is thus imminent. Fitch said the rating would be downgraded to
'Restricted Default' (RD) upon execution of the exchanges.
Moody's Investors Service, in September 2022, affirmed Argentina's
Ca foreign-currency and local-currency long-term issuer and senior
unsecured ratings. The outlook remains stable. The decision to
affirm the Ca ratings balances Argentina's limited market access,
weak governance, and history of recurrent debt restructurings with
recent efforts to marshal fiscal and monetary measures to start
addressing underlying macroeconomic imbalances in the context of
the IMF program that was approved in 2022, according to Moody's.
DBRS, Inc. confirmed Argentina's Long-Term Foreign Currency Issuer
Rating at CCC and downgraded its Long-Term Local Currency Issuer
Rating to CCC from CCC (high) on March 3, 2023.
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B A H A M A S
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BAHAMAS: IDB OKs S$160M-Loan to Enhance Natural Disaster Risk Mgmt.
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The Inter-American Development Bank (IDB) has approved a US$160
million loan to The Bahamas for policy reforms to improve its
natural disaster risk governance. The operation seeks to create
better governance conditions for implementing public policies for
risk identification and reduction, disaster preparedness, recovery,
and financial protection.
This loan is expected to foster a macroeconomic environment
conducive to the program's objectives. Additionally, this operation
supports the Disaster Risk Management (DRM) Act, which establishes
the legal, institutional, and budgetary conditions needed to
implement more effective public policies in disaster risk
management.
This legislation, passed in Parliament in December 2022, introduces
a new paradigm for addressing disaster risk, prioritizing
prevention based on accurate risk analysis, and establishing an
institutional framework that defines the responsibilities of
various public entities and levels of government, along with
financial resources for preventing and responding to emergencies.
To measure the governance conditions that facilitate disaster risk
management, in 2012 the IDB designed the Index of Governance and
Public Policy in Disaster Risk Management (iGOPP), which has been
endorsed by the United Nations. The iGOPP is measured as a
percentage ranging from 0% to 100%. The Bahamas' iGOPP score in
2020 was 22%, below even the average of 33% for Latin America and
the Caribbean. With the passing of the DRM Act, The Bahamas' iGOPP
score was projected to increase to 38% in 2022.
The Bahamas is among the countries in the Latin America and
Caribbean region that are most exposed to natural disasters,
especially climate-related ones. Over the last 20 years, it has
experienced 14 major catastrophes—mainly hurricanes—resulting
in 400 fatalities, 50,000 affected individuals, and over US$6.7
billion in damages. Climate change is likely to exacerbate these
impacts.
The IDB-approved program will benefit the inhabitants of the
country who are exposed to disasters, who number as many as 344,279
in the case of a hurricane with extreme winds.
This operation is the first loan in a two-part programmatic series.
The loan has a 20-year repayment period and a 5.5-year grace
period.
FTX GROUP: Recovered More Than $7.3 Billion in Assets
-----------------------------------------------------
Dietrich Knauth at Reuters reports that bankrupt crypto exchange
FTX has recovered over $7.3 billion in cash and liquid crypto
assets, an increase of more than $800 million since January, the
company's attorney said at a U.S. bankruptcy court hearing in
Delaware.
FTX attorney Andy Dietderich said the company is starting to think
about its future after months of effort devoted to collecting
resources and figuring out what went wrong under the leadership of
indicted ex-founder Sam Bankman-Fried, according to Reuters.
Bankman-Fried has pleaded not guilty, the report notes.
"The situation has stabilized, and the dumpster fire is out,"
Dietderich said, the report relays.
FTX has benefited from a recent rise in crypto prices, Dietderich
said, the report discloses. Its total recovery would be valued at
$6.2 billion based on crypto prices from November 2022, when it
filed for bankruptcy after traders pulled $6 billion from the
platform in three days and rival exchange Binance abandoned a
rescue deal, the report says.
FTX's new CEO John Ray has detailed improper fund transfers and
poor accounting at the collapsed crypto exchange, describing it as
a "complete failure" of controls, the report notes.
As it looks to the future, FTX is negotiating with stakeholders
about options for restarting its crypto exchange, and it may make a
decision on that in the current quarter, Dietderich said, the
report discloses.
He offered few details on what a reboot might mean for FTX
customers whose crypto deposits have been locked up during the
bankruptcy case, the report relays.
So far, FTX customers in Japan have been the only ones able to
withdraw any funds so far, because of that country's relatively
strong crypto regulations, Dietderich said, the report discloses.
FTX would need significant capital to restart its crypto exchange,
because the existing customer interface had little connection to
the movement of money behind the scenes, the lawyer said, the
report says.
"The app worked beautifully, but in truth it was a facade,"
Dietderich said, the report relays.
It is not clear whether FTX should use its own funds to re-start
the exchange, rather than using the money to repay customers,
Dietderich said. Restarting the exchange might require outside
funding or a sale of the exchange's assets, the report discloses.
FTX is also working on a preliminary Chapter 11 plan that would
offer the company a path out of bankruptcy, Dietderich said, the
report relays.
FTX intends to file that plan by July, but it acknowledged that
many details would have to be worked out as creditors fight for
their share of the company's assets, the report discloses. FTX
does not expect any Chapter 11 plan to be approved before the
second quarter of 2024, the report relays.
Bankman-Fried and several company insiders have been indicted on
fraud charges for their role in the company's collapse, the report
says. In contrast to Bankman-Fried's not guilty plea, the former
members of his inner circle have pleaded guilty and agreed to
cooperate with prosecutors, the report adds.
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B O L I V I A
=============
BOLIVIA: S&P Lowers SCR to 'B-' on Worsening External Liquidity
---------------------------------------------------------------
S&P Global Ratings lowered its long-term foreign and local currency
sovereign credit ratings on Bolivia to 'B-' from 'B'. S&P removed
its ratings from CreditWatch, where it had placed them with
negative implications on March 15. The outlook on the long-term
ratings is negative. S&P also affirmed its 'B' short-term foreign
and local currency sovereign credit ratings. At the same time, S&P
revised its transfer and convertibility assessment to 'B-' from
'B'.
Outlook
The negative outlook indicates the risk of further worsening of
external liquidity, which could undermine economic stability.
Political disagreements, including within the governing coalition,
raise questions about the government's ability to secure timely
approval of new loans from Congress that, along with other
measures, could support external liquidity and strengthen public
confidence.
Downside scenario
S&P could lower the ratings over the next 12 months if continued
political stalemate limits the government's ability to stabilize
and reverse the decline in external liquidity that, if unchecked,
could pose greater risk to economic and monetary stability. Further
erosion in the availability of foreign exchange to meet debt
service and other needs could have an abrupt negative impact on the
economy, resulting in a downgrade.
Upside scenario
S&P said, "We could stabilize the rating at its current level in
the next 12 months if we see policy steps and other developments
that boost investor confidence and reverse recent worsening of the
country's external profile. Among other things, this would include
steps to gain better and timely access to external sources of
liquidity and to correct the still large fiscal deficits and,
thereby, curtail the government's high financing needs."
Rationale
The downgrade reflects higher external vulnerabilities. Outflow of
dollars increased over the last two months, amid weaker public
confidence in the sustainability of the exchange rate regime, with
the Boliviano de facto linked with the U.S. dollar since 2011.
The authorities have reinforced their commitment to sustain the
exchange rate while relying on short-term measures to manage
liquidity pressure in the financial system--including by lowering
reserve requirements for dollar deposits and by direct sale of
dollars by the central bank to the public. However, lack of
agreement within the governing coalition has impeded the
implementation of forceful policies to significantly reduce
Bolivia's fiscal and external deficits. The current account balance
will likely remain negative over the next two years as commodity
prices become less supportive, while natural gas exports are
expected to continue shrinking.
S&P estimates Bolivia's gross external financing needs at 90% of
current account receipts plus usable reserves for 2023. Its metric
assumes some erosion of reserves since the last reported $3.5
billion in February. Over the last month, the central bank
converted nearly $500 million in SDRs (special drawing rights) to
dollars to meet demand for foreign exchange.
Amid weakened investor sentiment, continued access to funding from
official creditors is key to supporting Bolivia's external position
and to meeting debt service over the coming years. The Bolivian
government has $914 million in external amortization payments due
in the next 12 months, of which only $183 million corresponds to
bond payments. In 2021-2022, net inflow from multilateral and
bilateral creditors averaged $600 million. Over the last few
months, authorities have been seeking new loans from official
creditors. The Bolivian Congress recently approved nearly $800
million in new borrowings, and part of these funds has already been
disbursed. There are also $800 million in new loans pending in
Congress, including $500 million from the InterAmerican Development
Bank for budgetary purposes. However, the timing of Congressional
approval of these loans, and of the "Ley del Oro" (which is
important to expand central bank powers to manage gold reserves),
is unknown.
The low share of dollar deposits within total deposits has limited
liquidity pressure on local banks. Nevertheless, dollar deposits
have declined in recent weeks, despite some withdrawal restrictions
imposed by banks. Deteriorating confidence has also led to the
growth of an informal foreign exchange market.
In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the methodology
applicable. At the onset of the committee, the chair confirmed that
the information provided to the Rating Committee by the primary
analyst had been distributed in a timely manner and was sufficient
for Committee members to make an informed decision.
After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.
The committee's assessment of the key rating factors is reflected
in the Ratings Score Snapshot above.
The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision. The
views and the decision of the rating committee are summarized in
the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.
Ratings List
DOWNGRADED
TO FROM
BOLIVIA (PLURINATIONAL STATE OF)
Transfer & Convertibility Assessment B- B
DOWNGRADED; CREDITWATCH/OUTLOOK ACTION
TO FROM
BOLIVIA (PLURINATIONAL STATE OF)
Senior Unsecured B- B/Watch Neg
DOWNGRADED; CREDITWATCH/OUTLOOK ACTION; RATINGS AFFIRMED
TO FROM
BOLIVIA (PLURINATIONAL STATE OF)
Sovereign Credit Rating B-/Negative/B B/Watch Neg/B
===========
B R A Z I L
===========
BRAZIL: Annual Inflation Hits Lowest Since 2021
-----------------------------------------------
globalinsolvency.com, citing Bloomberg News, reports that Brazil's
annual inflation slowed more than expected, reaching the lowest
since January 2021 as congress prepares to debate President Luiz
Inacio Lula da Silva's new fiscal framework meant to shore up the
nation's finances.
Official data released showed consumer prices rose 4.65% in March
compared to the year prior, less than February's reading of 5.6%
and below the 4.71% median estimate from analysts surveyed by
Bloomberg, according to globalinsolvency.com.
Monthly inflation slowed to 0.71%. Brazil's central bank has held
the country's benchmark interest rate steady at 13.75% for five
consecutive meetings in response to a deteriorating inflationary
outlook, the report notes.
Growing debts and Lula's plans for a more active role for the state
in the economy have spooked investors and analysts alike, who say
Brazil's public accounts are in bad shape, the report adds.
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.
As recently reported in the Troubled Company Reporter-Latin
America, Fitch Ratings, in December 2022, affirmed Brazil's
Long-Term Foreign Currency Issuer Default Rating (IDR) at 'BB-'
with a Stable Outlook. The ratings are constrained by high
government indebtedness, a rigid fiscal structure, weak economic
growth potential, and a record of governability challenges that
have hampered efforts to address these fiscal and economic issues
and clouded policy predictability. The Stable Outlook reflects
Fitch's expectation that growth will slow in the coming year and
that recent fiscal improvement will erode under a new government,
but within a margin consistent with the current rating, and from a
better starting point than previously expected. Uncertainty is
elevated regarding the plans of the incoming government and the
extent to which these could ease or aggravate fiscal and economic
challenges. However, Fitch does not expect policies that
jeopardize broad economic stability.
Standard & Poor's affirmed its 'BB-/B' long- and short-term
foreign and local currency sovereign credit ratings on Brazil, and
the outlook remains stable (June 2022). The stable outlook
reflects S&P's base-case assumption that Brazil will maintain its
fiscal anchors over the next two years despite an increasing
interest burden, preventing significant fiscal slippage and
limiting the rise in its already high debt burden.
Moody's credit rating for Brazil was last set at Ba2 in 2018 with
stable outlook. Moody's affirmed the Ba2 issuer ratings and
senior unsecured bond ratings in April 2022.
DBRS's credit rating for Brazil is BB (low) with stable outlook
(March 2018).
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C H I L E
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WOM MOBILE: Moody's Lowers CFR to B2 & Alters Outlook to Negative
-----------------------------------------------------------------
Moody's Investors Service has downgraded WOM Mobile S.A. and
subsidiaries Corporate Family Rating to B2 from B1. At the same
time Kenbourne Invest S.A.'s 2024 and 2028 senior unsecured notes
ratings were downgraded to B2 from B1. The outlook was changed to
negative from stable.
WOM Mobile S.A. is the parent company of WOM S.A., Conect S.A., and
Multikom S.A. The existing notes issued by Kenbourne Invest S.A.
are backed by WOM Mobile S.A. and its subsidiaries.
Downgrades:
Issuer: WOM Mobile S.A. and subsidiaries
Corporate Family Rating, Downgraded to B2 from B1
Issuer: Kenbourne Invest S.A.
Backed Senior Unsecured Regular Bond/Debenture, Downgraded to B2
from B1
Outlook Actions:
Issuer: Kenbourne Invest S.A.
Outlook, Changed To Negative From Stable
Issuer: WOM Mobile S.A. and subsidiaries
Outlook, Changed To Negative From Stable
RATINGS RATIONALE
The downgrades to B2 reflect WOM's persistently high leverage and
the company's more aggressive approach towards financial policy and
deleveraging. Moody's adjusted leverage closed 2022 at 5.2x, in
line with year-end 2021 and above Moody's expectations of 4.9x.
Despite the execution of the partial tender offer in October 2022
that reduced the 2024 and 2028 notes' outstanding balance by $300
million to $660 million, leverage remained constant, mostly
affected by a significant increase in lease liabilities. The tender
offer was financed by a portion of the proceeds from the sale and
lease-back of WOM's tower portfolio to Phoenix Tower International
(PTI) for a total of $930 million.
In addition, WOM's announcement that it plans to use $100 million
of additional tower sale proceeds to be received over the course of
2023 to invest in WOM Colombia implies an increase in risk
tolerance and lower commitment by shareholders to continue
deleveraging the Chilean operation. As such, Moody's expects
leverage to remain elevated at around 5.0x in 2023, since lease
liabilities will continue to grow as the company delivers the
remaining towers to PTI. Moody's also expects the majority of the
$360 million notes balance maturing in November 2024 to be
refinanced, which will limit further reduction in leverage over the
rating horizon.
WOM's B2 ratings also reflect its relatively new but already
well-established position in the competitive mobile services market
of Chile. The rating also takes into consideration WOM's network
with nationwide coverage, strong brand recognition and
cost-efficient structure, which helps mitigate inflationary
pressures and support profitability. The ratings are constrained by
WOM's modest revenue size compared with that of its global and
local peers and intense competition in the Chilean telecom market,
in addition to the persistently high leverage.
Moreover, the company has only a recent track record of stronger
profitability, with positive EBITDA achieved for the first time in
the fourth quarter of 2017, although it is continuously improving.
Accordingly, the B2 ratings also factor in the execution risks in
WOM's plan to continue expanding its market share in the
competitive Chilean market as well as the added exposure to the
challenging and competitive operating environment in Colombia
arising from the announced equity investment.
Governance factors are important considerations for WOM's ratings
and consider the risks associated with the private ownership by NC
Telecom AS II, a Norwegian fund controlled by British private
equity firm, Novator Group, the lack of board independence, and
lack of track record of prudent financial policies. The recent
weakening in financial policies and higher tolerance for leverage
highlight these governance risks.
The negative outlook considers Moody´s expectation that the
company will continue to operate in a challenging environment, with
slow economic growth, persistent inflation and intense competition
pressuring performance and profitability. In addition, high capex
needs to continue to expand the network and capture market share
will drive negative free cash flow over the rating horizon.
Furthermore, the negative outlook considers the increase in
liquidity risk steaming from the need to refinance the majority of
2024 maturities under current market conditions.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade is unlikely at this point given the negative outlook.
However, Moody's could stabilize the rating outlook if the company
demonstrates adequate liquidity and the ability to secure
refinancing to timely meet its 2024 maturities. In addition, the
company needs to be able to sustain positive revenue growth and
steady improvement in profitability over the rating horizon, while
maintaining Moody's adjusted leverage below 5.0x.
The rating could be downgraded if liquidity deteriorates further,
or the company is unable to secure the additional funding to
address its 2024 maturities. Quantitatively ratings could be
downgraded if leverage is expected to remain at 5.0x or higher for
a prolonged time.
The principal methodology used in these ratings was
Telecommunications Service Providers published in September 2022.
WOM Mobile S.A. (WOM), domiciled in Santiago, Chile, is a mobile
telecommunications services provider, serving more than 7 million
clients across its business segments, including mobile voice, data
services, mobile broadband and, more recently, Fiber to the Home.
WOM was launched in 2015 after the acquisition and rebranding of
Nextel Chile S.A. (Nextel Chile) by its controlling shareholder
Novator Partners LLP (Novator), and became a well-established
company in the Chilean mobile market. WOM reported CLP654.0 billion
in net revenue and CLP210.5 billion in Adjusted EBITDA for the full
year 2022.
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D O M I N I C A N R E P U B L I C
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DOMINICAN REPUBLIC: Inflation Expected to Slow Down in 2023
-----------------------------------------------------------
Dominican Today reports that the Ministry of Economy, Planning, and
Development (MEPyD) officials have claimed that the adoption of
restrictive monetary policies, coupled with the subsidies offered
by the Dominican Government to counter the rise in fuel prices and
the prolongation of the temporary suspension of adjustments to
electricity rates, have helped slow down inflation. Furthermore,
the drop in raw material prices in the global market and the
worldwide costs of container transportation continue to affect the
moderation of local price levels, according to Dominican Today.
In the "Macroeconomic Panorama 2023-2027" report published by
MEPyD, it is stated that inflation is projected to converge to the
target range of 4% +/- 1% in 2023, with an estimated year-end price
growth of 4.5% and an average of 5.5%, the report notes. The
Central Bank of the Dominican Republic, on April 4, reported that
the monthly CPI variation was 0.21% in March 2023, resulting in
interannual inflation of 5.90% by the end of the month, the report
relays. The bank suggested that the slowing of inflation would
result in a convergence towards the target range of 4% +/- 1% by
mid-year, the report notes.
According to the MEPyD report, economic prospects for 2023 in the
Dominican Republic are still influenced by the current global
market's level of uncertainty, given the tightening of financial
conditions and the slowdown in major trading partner economies, the
report discloses. The government institution explained that the
country's economy is expected to grow by 4.25% in 2023, 0.25
percentage points less than the macroeconomic forecast for November
2022, and these predictions remain vulnerable to the levels of
uncertainty in the global market, the report says. The MEPyD
assured its commitment to monitor the international environment and
its potential effects on the domestic macroeconomic outlook, 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 To 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.
DOMINICAN REPUBLIC: World Bank Lowers Growth Forecast for Country
-----------------------------------------------------------------
Dominican Today reports that as the year progresses, new challenges
may arise and change the economic landscape. This is the case with
the growth projections made by international organizations such as
the World Bank (WB), which initially forecasted "a solid 4.9% in
2023 and 2024", but reduced that projection to 4.4%, according to
Dominican Today.
This announcement comes alongside others released by state agencies
such as the Ministry of Economy, Planning, and Development, which
indicated that the gross domestic product (GDP) would grow 4.25%
this year, 0.25% less than projected in November, the report notes.
Oxford Economics, which initially indicated that the Dominican
Republic would have the strongest post-pandemic recovery in 2023,
now maintains that this performance would be 3.8%, the report
says.
Both forecasts are consistent with the regional perspective, the
report relays. The WB report estimates that regional GDP will grow
1.4% in 2023, a lower rate than anticipated, with rates of 2.4%
expected for 2024 and 2025, the report discloses. For the
international organization, these indicators are "too low to
achieve significant progress in reducing poverty," the report
says.
With the new projections, Panama takes the lead in terms of
economic growth, expected to grow by 5.7% in 2023, the report
recalls. In this sense, Paraguay is also positioned above the
Dominican Republic, with growth projected at 4.8%, the report
notes. Looking to 2024, the Dominican GDP would advance one
position to 5.0%, while Panama would present indicators of 5.8%,
the report relays. The only nations with negative growth are Chile
(-0.7) and Haiti (-1.1), although they are expected to turn
positive in 2024, 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 To 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.
=====================
P U E R T O R I C O
=====================
ECSEM CORP: May 24 Plan & Disclosure Hearing Set
------------------------------------------------
On April 14, 2023, ECSEM Corporation filed with the U.S. Bankruptcy
Court for the District of Puerto Rico a Disclosure Statement and
Small Business Plan.
On April 17, 2023, Judge Mildred Caban Flores conditionally
approved the Disclosure Statement and ordered that:
* May 24, 2023, at 9:00 AM, at the U.S. Bankruptcy Court, Jose
V. Toledo U.S. Post Office and Courthouse Building, 300 Recinto Sur
Street, Courtroom 1, Second Floor, San Juan, Puerto Rico is the
hearing for the consideration of the final approval of the
Disclosure Statement and the confirmation of the Plan.
* That acceptances or rejections of the Plan may be filed in
writing by the holders of all claims on/or before 14 days prior to
the date of the hearing on confirmation of the Plan.
* That any objection to the final approval of the Disclosure
Statement and/or the confirmation of the Plan shall be filed on/or
before 14 days prior to the date of the hearing on confirmation of
the Plan.
* That the debtor shall file with the Court a statement
setting forth compliance with each requirement in Section 1129 of
the Bankruptcy Code, the list of acceptances and rejections and the
computation of the same, within 7 working days before the hearing
on confirmation.
A copy of the order dated April 17, 2023 is available at
https://bit.ly/3LbTe85 from PacerMonitor.com at no charge.
Attorney for the Debtor:
Mary Ann Gandia-Fabian
GANDIA-FABIAN LAW OFFICE
P.O. Box 270251
San Juan, PR 00927
Tel: (787) 390-7111
Fax: (787) 729-2203
E-mail: gandialaw@qmail.com
About Ecsem Corporation
Ecsem Corporation is a "for profit" corporation organized under the
laws of the Commonwealth of Puerto Rico, and is dedicated to the
rental of commercial properties. It owns two real properties
located in TOa Baja and Cidra, Puerto Rico. The property located
at Toa Baja has 5 commercial spaces and the property in Cidra is a
vacant lot composed of 5.28 "cuerdas".
Ecsem Corporation filed a Chapter 11 bankruptcy petition (Bankr.
D.P.R. Case No. 22-03006) on Oct. 19, 2022, with up to $500,000 in
both assets and liabilities. Judge Mildred Caban Flores oversees
the case.
The Debtor tapped Mary Ann Gandia-Fabian, Esq., at Gandia-Fabian
Law Office as legal counsel and Jimenez Vazquez & Associates, PSC
as accountant.
*********
S U B S C R I P T I O N I N F O R M A T I O N
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Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.
Copyright 2023. All rights reserved. ISSN 1529-2746.
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