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       T R O U B L E D   C O M P A N Y   R E P O R T E R

                 L A T I N   A M E R I C A

          Tuesday, May 2, 2023, Vol. 24, No. 88

                           Headlines



A R G E N T I N A

ARGENTINA: Slams on The Brakes, Keeps Foot on Accelerator
ARGENTINA: VP Fernandez Blames IMF for Peso Sell-Off and Inflation


B R A Z I L

AMERICANAS SA: Congress to Probe Crisis at Company
BANCO SANTANDER: Moody's Affirms 'Ba1' Deposit Ratings
MUNICIPALITY OF NITEROI: Moody's Assigns 'Ba2' Issuer Ratings
NATURA &CO HOLDING: Moody's Affirms Ba3 CFR, Alters Outlook to Neg.


C O L O M B I A

AVIANCA: Regulator Formally Approves Merger With Viva Air
BANCO DAVIVIENDA: Moody's Cuts Add'l Tier 1 Notes Rating to B2(hyb)


D O M I N I C A N   R E P U B L I C

[*] DOMINICAN REPUBLIC: Seeks to Strengthen Commercial Ties With SA


P A R A G U A Y

PARAGUAY: Pres. Hopeful Has Plan to Win Investment-Grade Status


P E R U

AUNA SAA: Fitch Hikes Foreign & Local Curr. IDRs to B, Outlook Pos.


P U E R T O   R I C O

AZURE DEVELOPMENT: May 31 Plan & Disclosure Hearing Set
BED BATH & BEYOND: Gets Nasdaq Delisting; Cancels Meet
ECSEM CORP: Unsecured Creditors to Get 5% in Plan


U R U G U A Y

BANCO DE LA NACION: Fitch Affirms 'CCC-' Long-Term IDRs
SANCOR SEGUROS: Fitch Affirms 'B+' LT IFS Rating, Outlook Now Pos.

                           - - - - -


=================
A R G E N T I N A
=================

ARGENTINA: Slams on The Brakes, Keeps Foot on Accelerator
---------------------------------------------------------
Sebastian Boyd at Bloomberg News reports that Argentina's Central
Bank just raised its rate by 1,000 basis points.  What appears to
be a sharp brake is too little too late, according to Bloomberg
News.  And it won't save the peso.

Like a speeding car in a Buster Keaton movie, you can see the
wheels of the Argentine economy wobbling, Bloomberg News notes.
Unofficial exchange rates have been under pressure as traders lose
patience with the government's reliance on issuing money, Bloomberg
News discloses.  The big question this year has been whether the
government can keep things going until after the October elections
or whether the country will collapse economically before then,
Bloomberg News says.

The exchange rate known as contado con liquidacion, a measure of
the peso's true value, jumped, Bloomberg News discloses.  But even
1,000 basis points is unlikely to halt the long-term slide,
Bloomberg News relays. Inflation is above 104 percent, so the 10
percentage point increase in the benchmark rate, to 91 percent,
still leaves the country with one of the lowest real interest rates
in emerging markets (only in Turkey, where the president believes
rate hikes cause inflation, are they lower), Bloomberg News notes.
At the same time, a record drought is wreaking havoc on the
country's exports of maize, wheat and soybeans, Bloomberg News
says.

What Argentina needs is for the government to spend less than its
revenues in order to pay down some of its peso debt, rather than
constantly increasing it and eventually regaining access to
international markets, Bloomberg News discloses.  However, cutting
spending does not seem to be politically possible, so it will
continue to rely on patches such as price controls and an absurd
exchange rate policy to try to curb inflation, Bloomberg News
notes.

There has been some speculation that Economy Minister Sergio Massa
could be the ruling coalition's candidate in this year's elections,
but if he cannot curb inflation or stabilise the currency, that
seems a tall order, Bloomberg News notes.  The president, Alberto
Fernandez, has already ruled himself out, Bloomberg News adds.

                       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.

ARGENTINA: VP Fernandez Blames IMF for Peso Sell-Off and Inflation
------------------------------------------------------------------
Patrick Gillespie at Bloomberg News reports that Argentine
Vice-President Cristina Fernandez de Kirchner blamed the country's
US$44-billion agreement with the International Monetary Fund for a
recent plunge in the value of the peso and wave of inflation
pushing consumer price increases up over 100 percent.

Fernandez de Kirchner, the most powerful leader in the ruling
Frente de Todos coalition, criticized the IMF program for
prohibiting Argentina's Central Bank from intervening in financial
markets to tame currency volatility that triggered a 13 percent
loss in the peso in parallel markets, fuelling more inflation,
according to Bloomberg News.

Economy Minister Sergio Massa notified IMF staff that the
government wanted to change that condition and began market
interventions, the report notes.  The IMF hasn't commented on that
policy shift.

"The IMF agreement prohibited the Central Bank from intervening in
the currency market to avoid a sell-off," said Fernandez de
Kirchner, who called for a revision of the agreement she sees as
"inflationary," the report adds.

IMF staff warned Argentina officials against intervening in markets
to preserve its razor thin dollar reserves, the report notes.  Most
economists in Argentina see inflation as being driven by the
government's money printing to finance government deficits,
political infighting and lack of a credible economic plan, the
report discloses.

Fernandez de Kirchner pointed the finger at the IMF for the peso's
depreciation in recent days, though, the report relays.  

"What we fundamentally want is that they revise the conditions," of
the IMF deal, Fernandez de Kirchner said.  During her presidency,
"the Central Bank intervened in the administration of the exchange
rate - it couldn't do this until when it took the decision," adds
the report.

                       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.



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

AMERICANAS SA: Congress to Probe Crisis at Company
--------------------------------------------------
Bloomberg News reports that Brazil's lower house will investigate
the events leading up to the financial crisis at Americanas SA, the
retail giant that went into bankruptcy protection in January after
unveiling a massive accounting hole of BRL20 billion ($4 billion).


Speaker Arthur Lira authorized the creation of an inquiry committee
and party leaders will now nominate representatives to lead the
probe, according to Bloomberg News.

While former Chief Executive Officer Sergio Rial and the current
top executive have testified in congress since the crisis exploded,
a trio of billionaires who are the top shareholders of Americanas
have remained largely quiet, the report notes.

The management team that ran the firm until the turn of the year
has also refrained from making public comments, adds the report.

While Americanas has remained operative without widespread firings
or store closures due to a capital injection from top shareholders,
the incident affected a long chain of suppliers, the report notes.
It has also contributed to tighter credit conditions in Brazil more
broadly, as banks turn more conservative due to their exposure, the
report discloses.

The billionaire shareholders, Jorge Paulo Lemann, Marcel Telles and
Carlos Sicupira, said they were unaware of the accounting issues at
the firm, the report relays.

Hedge fund Verde Asset Management, which held some local Americanas
bonds, called the incident Brazil's biggest fraud ever, the report
says.

Americanas has made a restructuring offer and talks with banks,
which are its largest creditors, have advanced with expectations of
an agreement in the coming weeks, the report adds.

                      About Americanas SA

Americanas was one of the largest diversified retail chains in
Brazil, with a wide platform of physical stores, robust e-commerce,
fintech, and has just entered into the niche food retail. It is
listed on B3, being indirectly controlled by billionaire Jorge
Paulo Lemann, Carlos Alberto Sicupira and Marcel Telles.

The retailer nosedived in January 2023 after becoming mired in an
accounting scandal. The firm filed for bankruptcy at a court in Rio
de Janeiro on Jan. 19, 2023.

Americanas sought protection under Chapter 15 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 23-10092) on Jan. 25,
2023.  White & Case LLP, led by John K. Cunningham, is the U.S.
counsel.



BANCO SANTANDER: Moody's Affirms 'Ba1' Deposit Ratings
------------------------------------------------------
Moody's Investors Service has affirmed all ratings and assessments
assigned to Banco Santander (Brasil) S.A. (SANBR), including the
Ba1 and Not Prime local and foreign currency deposit ratings, long-
and short-term, respectively, the (P)Ba1 and (P)Not Prime long- and
short-term senior unsecured ratings assigned to its $10 billion
Global Medium Term Note Program. At the same time, Moody's also
affirmed SANBR's Baa3 and Prime-3 local and foreign currency
counterparty risk ratings, long and short-term, respectively. The
bank's baseline credit assessment (BCA) of ba2 and adjusted BCA of
ba1 were also affirmed as well as its long- and short-term
counterparty risk assessments (CRA) of Baa3(cr) and Prime-3(cr),
respectively. The long-term bank deposit ratings have a stable
outlook.

RATINGS RATIONALE

The affirmation of SANBR's ratings and assessments acknowledges the
bank's well-established banking franchise in Brazil, with solid
balance sheet, business diversification, cost discipline and
earnings recurrence through the cycle. After steady asset growth
that boosted the bank's profitability between 2017 and 2021, SANBR
started an adjustment phase of its credit origination standards
amid more challenging operating conditions, by increasing
provisions for loan losses and reducing loan origination. In
addition, the bank also shifted its focus towards lower-yielding
secured lending products to individuals, including payroll loans,
mortgages, and vehicle financing, while selectively growing on
corporate loans. As consequence, profitability measured by net
income to tangible assets declined from 1.6% average between 2018
and 2021 to 1.2% in December 2022, reflecting higher credit and
funding costs, which pressured its margins in the period, mostly in
line with its peers' performance. Moody's expect profitability to
remain pressured for most of 2023 as the peak in delinquency will
likely be reached between third and fourth quarter, with gradual
improvement in asset risk metrics by the end of the year. Moreover,
as new credit vintages with superior quality gain more relevance in
the overall portfolio, Moody's shall expect gradual reduction
credit costs over the coming quarters, with positive implications
to bottom line results. SANBR historical cost discipline and
growing focus on fee-based activities will also continue to benefit
future earnings generation.

Problem loans reached 4.6% in March 2023, up from its historical
lows of 3% between 2020 and 2021. SANBR relatively higher exposure
to unsecured consumer loans (20.8% of gross loans in March 2023)
and SME loans (12.5%), alongside with a slowdown in new loan
origination negatively impacted its problem loans metric over the
past two quarters. Moody's expect problem loans to remain under
pressure by a combination of higher interest rates, inflationary
pressure, and low economic growth, especially affecting the older
credit vintages. Allowance for loan losses remained high in March
2023, covering 166% of its problem loans.

SANBR's capital position, measured by Moody's as tangible common
equity relative to risk weighted assets, ended March 2023 at 6.8%,
relatively low compared to peers in Brazil, but in line with the
past 3 years average, reflecting the bank's capital efficiency
strategy. In regulatory terms, SANBR has been able to consistently
deliver its soft guidance of 11% in common equity tier 1 ratio
(10.8% in March 2023), while maintaining a 64% payout ratio
(December 2022).  While SANBR's has a high leverage ratio than its
peers, Moody's highlight the bank has a long track record of strong
capital replenishment capacity and access to additional capital.

As the third- largest private bank in the system, SANBR has a
stable core deposit base, with 10.5% deposit market share as of
2022, that has historically supported its adequate liquidity
position. The Ba1 local currency deposit ratings and (P)Ba1 senior
unsecured MTN program rating assigned to SANBR incorporates a
moderate likelihood that the Brazilian subsidiary would receive
support from its parent, Banco Santander S.A. (Spain), which has a
BCA of baa1. Therefore, SANBR's ba2 BCA incorporates one notch of
uplift to an adjusted BCA of ba1, which anchors the local currency
deposit ratings and senior unsecured MTN program rating at Ba1 and
(P)Ba1, respectively.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

Currently, there is no upward pressure on SANBR's ba2 BCA, which is
in line to the Government of Brazil's Ba2 sovereign rating,
reflecting the strong credit interlinks between the sovereign and
the bank's creditworthiness. However, upward movement on the bank's
adjusted BCA would depend on an upgrade at the parent Banco
Santander S.A. (Spain)'s baa1 BCA, currently also aligned to the
Government of Spain's Baa1 sovereign debt rating, which has a
stable outlook.

Conversely, SANBR's BCA could be downgraded if Brazil's sovereign
rating is downgrade. In addition, negative pressures on the
adjusted BCA as well as its deposit ratings would arise from a
downgrade at the parent's BCA. On a standalone, downward pressure
to the bank's ba2 BCA would also arise if the bank's asset quality,
capital, and profitability metrics deteriorated materially.

The principal methodology used in these ratings was Banks
Methodology published in July 2021.

MUNICIPALITY OF NITEROI: Moody's Assigns 'Ba2' Issuer Ratings
-------------------------------------------------------------
Moody's Investors Service has assigned initial Ba2 issuer ratings
and a ba3 baseline credit assessment (BCA) to the Municipality of
Niteroi. The outlook is stable.

Ratings assigned:

Issuer: Niteroi, Municipality of

Baseline Credit Assessment: Assigned ba3

Long-term Issuer Rating (Foreign): Assigned Ba2

Long-term Issuer Rating (Domestic): Assigned Ba2

Outlook:

Issuer: Niteroi, Municipality of

Outlook: Assigned Stable

RATINGS RATIONALE

Niteroi's ba3 BCA and Ba2 ratings reflect its established track
record of fiscal surpluses, conservative budget setting, prudent
fiscal management and a stable political environment, all of which
highlight a robust governance framework which presents low
governance risk to the credit profile. The BCA and ratings also
take into consideration the municipality's revenue profile that is
reliant on oil royalties; the volatility of which is a credit
weakness but which is partially mitigated by an equalization fund
to offset potential shortfalls in transfers. The municipality
demonstrates a strong liquidity position to face its modest
indebtedness, although Niteroi pension obligations are not fully
funded. The BCA and rating also take into account Niteroi's
systemic risk environment which Moody's assesses at Ba2, the level
of Brazil's sovereign rating.

The municipality has a strong and relatively diversified
service-based economy with some degree of concentration. The
strength of the municipality's economy is reflected in its gross
domestic product per capita, which was 221% the national average in
2020.

Oil royalties and special participations represented 44% of the
municipality's operating revenue in 2022. These revenue sources are
volatile in nature given they are impacted by changes in commodity
prices and production levels. In addition, the sharing mechanism of
oil royalties has been subject to controversies in the past. As
such, the legal framework is not insulated from political
interference and eventual changes by the federal government. To
address the risk of volatility in oil royalties, Niteroi
established a revenue equalization fund in 2019 in which 10% of
special participations (7% of total oil revenues in 2021) are
invested annually. In years in which oil revenues fall short of
expectations, the municipality can withdraw 50% of the shortfall
from the fund, up to 20% of the fund's total assets. Withdrawals
from the equalization funds must be matched with cost-cutting
initiatives. Moody's considers that the revenue equalization fund
is an efficient mechanism against revenue volatility and partially
mitigates Niteroi's reliance on oil transfers.

Highlighting the strong risk controls and financial management of
Niteroi, the municipality has established a track record of prudent
fiscal planning, realistic budget setting and solid controls that
have resulted in recurring operating surpluses and achievement of
bottom-line fiscal targets. The municipality demonstrates expertise
in setting and following multi-years investment plans. Over the
last five years to 2022, gross operating balance averaged a very
high 28.7% of operating revenues. Operating revenues have grown by
a compound annual growth rate of 12.4%, while operating expenditure
have grown 8.9%. In 2022, the municipality registered a record
operating surplus over operating revenues of 41.6%, from 29.2% in
2021.

With cash and equivalents at 71% of operating revenues as
calculated by Moody's for the yearend 2022, the agency considers
that Niteroi's liquidity is strong and constitutes an ample cushion
to face its modest indebtedness, compared to direct and indirect
debt of 13% of operating revenues as of the same date. The
government of Brazil guaranteed 63% of Niteroi's debt at year end
2022. Moody's calculations of Niteroi's direct debt do not include
BRL4.4 billion of pension liability that are not fully funded.
Although onerous to the balance sheet of the municipality, Moody's
views the unfunded gap as manageable.

The Ba2 ratings take into account the ba3 BCA, which represents the
standalone credit strength of the municipality, and incorporates
one notch of uplift reflecting Moody's assessment of a strong
likelihood that the municipality would receive extraordinary
support from the Government of Brazil (Ba2 stable) in the event of
acute liquidity stress.

RATINGS OUTLOOK

The stable outlook on the ratings is based on Niteroi's capacity to
maintain strong fiscal surpluses and modest indebtedness over the
near to medium term, supported by the strong institutional
framework and the close oversight of Brazil's federal government on
municipalities in the country.  

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

An upgrade of Brazil's sovereign rating could lead to a rating
upgrade. Continued growth in Niteroi's revenue equalization fund
over a longer-term horizon coupled with continued fiscal surpluses
could positively pressure the municipality's baseline credit
assessment. A downgrade of Brazil's sovereign bond rating or a
significant deterioration in the municipality's operating margins
with increased reliance on indebtedness could exert downward
pressure on the assigned ratings.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS

Niteroi's ESG Credit Impact Score is CIS-3, indicating ESG factors
are considered as having a limited impact on the current rating,
with greater potential for future negative impact over time. The
credit impact of ESG reflects Niteroi's exposure to environmental
and social risks that is partially mitigated by adaptation measures
taken to reduce the city's vulnerability to climate related events
and its history of support to its population.

Niteroi is geographically exposed to physical climate risks, such
as heat stress and heavy rains, which requires large investments in
water management and natural capital. The municipality has been
conducting meaningful initiatives to mitigate those risks,
including hardening the mountains sides to prevent landslides and
improving drainage of areas prone to flooding. As such, Niteroi's
moderately negative exposure to environmental risks is balanced by
the ongoing investments to offset these risks.

The exposure to social risks is also relevant, because of the
relatively large informal economy, income inequality, and elevated
criminality rate compared to international rated peers.
Nonetheless, Niteroi's GDP per capita is one of the highest among
Brazilian municipalities, and its health care system stands out
positively from other regional rated peers. The municipality spends
over 40% more than the national average on health. During the Covid
pandemic, it has also taken a proactive role to support and
vaccinate its population. Social risks are also balanced by the
households' access to basic services, demographics, education,
housing and labor and income.

The exposure to governance risks is scored neutral-to-low, which
reflects Moody's view on the municipality's budget management
discipline, institutional structure, policy credibility and
effectiveness, transparency and disclosure.

The principal methodology used in these ratings was Regional and
Local Governments published in January 2018.

NATURA &CO HOLDING: Moody's Affirms Ba3 CFR, Alters Outlook to Neg.
-------------------------------------------------------------------
Moody's Investors Service has affirmed Natura &Co Holding S.A. 's
(Natura) Ba3 corporate family rating. At the same time, Moody's has
affirmed the Ba2 issuer rating to Natura Cosmeticos S.A. (Natura
Cosmeticos) and the Ba3 issuer rating to Avon Products, Inc. The
outlook was changed to negative from stable.

Issuer: Natura &Co Holding S.A.

Corporate Family Rating, Affirmed Ba3

Affirmations:

Issuer: Avon Products, Inc.

Issuer Rating, Affirmed Ba3

Senior Unsecured Regular Bond/Debenture, Affirmed Ba3

Issuer: Natura Cosmeticos S.A.

Issuer Rating, Affirmed Ba2

Senior Unsecured Regular Bond/Debenture, Affirmed Ba2

Outlook Actions:

Issuer: Avon Products, Inc.

Outlook, Changed To Negative From Stable

Issuer: Natura &Co Holding S.A.

Outlook, Changed To Negative From Stable

Issuer: Natura Cosmeticos S.A.

Outlook, Changed To Negative From Stable

RATINGS RATIONALE

The change in Natura's rating outlook to negative from stable
considers Moody's expectation that Natura will continue to operate
in a challenging environment, with slow economic growth and
persistent inflation pressuring performance and profitability. In
addition, the negative outlook considers the increase in execution
risk steaming from the need to implement structural changes in the
business model of both Avon and The Body Shop under these
challenging economic conditions.

Natura's Ba3 rating reflects primarily the company's size and scale
as the fourth largest pure cosmetics group globally operating
through four well-established brands (Natura, Avon, The Body Shop
and Aesop) with significant cross-selling and synergies
opportunities, its leading market position in several markets where
it operates and good geographic diversification, although with an
increasing degree of concentration of operations in growing, but
potentially volatile, developing markets. Natura has a proven
know-how in managing the direct selling network model and strong
digital capabilities and online presence. In addition, the rating
incorporates Natura's track record of financial discipline and
conservative approach to leverage and liquidity, reinforced by the
company's announcement that it will use proceeds from the pending
sale of its Aesop brand to reduce leverage and improve its capital
structure.

On April 3, Natura announced a $2.53 billion agreement to sell its
Aesop luxury brand to L'Oréal S.A. The company expects the
all-cash deal to close in the third quarter of 2023, pending
regulatory approvals. The sale will benefit Natura &Co, despite the
effect on its consolidated revenue and EBITDA, by helping it
significantly reduce leverage and interest expense. Consolidated
gross leverage was 5.6x at year-end 2022, including Moody's
standard adjustments, up from 4.0x at the end of 2021, reflecting
lower EBITDA and higher debt. Although the sale's final impact on
Natura's adjusted gross leverage is still uncertain, Moody´s
expects the company to apply a significant part of the proceeds to
debt reduction. Assuming it uses 70%-80% of net proceeds to repay
debt, leverage would fall to around 2.5x-3.0x, while net debt would
be neutral or slightly negative. This improvement in its capital
structure would also allow Natura &Co to accelerate its integration
of Avon Latam, as well as focus on improving the performance of The
Body Shop and Avon International.

Natura's ratings are constrained mainly by the execution risk
stemming from Avon's and The Body Shop's ongoing turnaround
process, and its impact on Natura's consolidated credit metrics and
liquidity, detracting from the strengths coming from the Natura
Cosmeticos S.A. businesses.

Natura Cosmeticos' ratings stand one notch above Natura &Co's and
Avon's ratings, reflecting the priority of the claim of its
creditors to the company's cash flows and its privileged position
within the group's capital structure. Natura Cosmeticos, the main
cash generator of the group, holds roughly 58% of the group's total
debt, with the remaining 42% being structurally subordinated at
Avon and Natura &Co. Avon's ratings stand at the same level as
Natura &Co's, reflecting the close ties between the two companies
following several pieces of evidence since the acquisition of
strong support from the parent Natura &Co to Avon. For example,
Natura &Co has provided intercompany loans to Avon including $960
million to pay Avon's notes due 2022 and, more recently, in April
2022, the group used proceeds from a $600 million 7-year bond
issuance at Natura &Co Luxembourg to refinance Avon's 2023 notes.
The issuance was guaranteed by Natura &CO and Natura Cosmeticos.
Avon, Natura Cosmeticos and the parent Natura remain independent
legal entities. Natura &Co and Natura Cosmeticos do not provide
upstream, downstream or cross-debt guarantee to Avon. However,
Moody's believes that Natura will continue to support Avon given
its strategic relevance for the group, as evidenced by the
provided.  

LIQUIDITY

Natura's liquidity is strong, backed by BRL6 billion ($1.15
billion) in available cash at the end of 2022, enough to cover debt
amortizations through 2027 and support the investments required to
achieve full integration of Avon. In addition, the company has in
place a stand-by credit facility of $625 million maturing in
October 2024. Refinancing risks are low for Natura given its
comfortable debt maturity schedule as its next significant maturity
does not fall due until 2027. In addition, the company benefits
from a longstanding relationship with Brazilian and international
banks and access to both the international and local capital
markets.

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 once the
deleveraging process following the sale of Aesop is completed and
Natura is able to demonstrate improvement in the group's
performance resulting from the integration of Avon Latam and
strategic realignment of Avon International and The Body Shop
businesses.

The ratings could be downgraded in case Natura fails to restore
Avon's and The Body Shop´s operating performance, such that
Natura's credit metrics or credit worthiness deteriorates further,
with leverage above 4.0x and interest coverage (measured by EBITA
to interest expense) below 2.5x without prospects for improvement.
A deterioration in Natura Cosmeticos's credit quality could also
lead to negative rating actions for Natura.

The principal methodology used in these ratings was Consumer
Packaged Goods published in June 2022.

Natura &Co is the fourth largest pure cosmetics group globally,
with presence across 100 countries and in the skincare, haircare,
body care, men care, fragrancies, color, fashion and home segments.
The company has a leading market position in several markets, with
a particular focus on emerging markets such as Brazil, other Latin
American countries, and operates through a multi-channel strategy
through its four brands Avon, Natura, The Body Shop and Aesop. In
2022, Natura & Co reported BRL36.3 billion ($7.0 billion) in
revenues and adjusted EBITDA margin of 10.5%.



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

AVIANCA: Regulator Formally Approves Merger With Viva Air
---------------------------------------------------------
Reuters reports that Colombia's civil aviation authority has
formally approved a merger between Avianca, the Andean country's
flag carrier, and Viva Air, the regulator said in a statement.

The merger is a lifeline for embattled Viva, which has struggled
financially in the wake of the coronavirus pandemic and seen its
situation worsen due to higher fuel prices in 2022 and the
depreciation of Colombia's peso, according to the report.

The aviation authority has "confirmed the conditional approval of
the integration operation," it said in a statement obtained by the
news agency.  The merger suffered repeated delays, with the civil
aviation authority objecting to the deal last November, before
annulling and reopening the process in January after citing
procedural irregularities, the report notes.  

Amid the limbo, Viva Air abruptly suspended operations in late
February, leaving passengers stranded in airports across the
country, the report adds.

                       About Avianca

Avianca -- https://aviancaholdings.com/ -- is the commercial brand
for the collection of passenger airlines and cargo airlines under
the umbrella company Avianca Holdings S.A.  Avianca has been flying
uninterrupted for 100 years.  With a fleet of 158 aircraft, Avianca
serves 76 destinations in 27 countries within the Americas and
Europe.

Avianca Holdings S.A. and its affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. N.Y. Lead Case No.
20-11133) on May 10, 2020. At the time of the filing, Debtors
disclosed $7,273,900,000 in assets and $7,268,700,000 in
liabilities.  

Judge Martin Glenn oversees the cases.

The Debtors tapped Milbank LLP as general bankruptcy counsel;
Urdaneta, Velez, Pearl & Abdallah Abogados and Gomez-Pinzon
Abogados S.A.S. as restructuring counsel; Smith Gambrell and
Russell, LLP as aviation counsel; Seabury Securities LLC as
financial restructuring advisor and investment banker; FTI
Consulting, Inc. as financial restructuring advisor; and Kurtzman
Carson Consultants LLC as claims and noticing agent.

The U.S. Trustee for Region 2 appointed a committee of unsecured
creditors in Debtors' bankruptcy cases on May 22, 2020.




BANCO DAVIVIENDA: Moody's Cuts Add'l Tier 1 Notes Rating to B2(hyb)
-------------------------------------------------------------------
Moody's Investors Service has affirmed Banco Davivienda S.A.'s
(Davivienda) long- and short-term local and foreign currency
deposit ratings at Baa3 and Prime-3, respectively. The rating
agency has also affirmed the bank's long- and short-term local and
foreign currency Counterparty Risk Ratings at Baa2 and Prime-2,
respectively, and long- and short-term Counterparty Risk
Assessments at Baa2(cr) and Prime-2(cr), respectively.
Concurrently, Moody's downgraded Davivienda's Baseline Credit
Assessment (BCA) and Adjusted BCA to ba2 from ba1. Moody's also
downgraded to B2(hyb) from B1(hyb) the foreign currency
subordinated debt rating on Davivienda's Additional Tier 1
subordinated notes. The outlook on the long-term deposit ratings
remains stable.

RATINGS RATIONALE

According to Moody's, the downgrade of Davivienda's BCA to ba2
reflects metrics for profitability and capital, measured under
Moody's Banks Methodology, that are inherently lower than those of
peer banks in Colombia and also compared to the bank's historic
levels. The bank's profitability ratios and capitalization showed
little change in the past two years, despite its strategy to
accelerate business growth that resulted in strong market share
gains in loans and deposits in Colombia in recent years.

In December 2022, Davivienda's net income to tangible assets ratio
was 0.89%, 50 basis points above the ratio in December 2021, but
still below the 1.23% reported at the end of 2019, just before the
coronavirus pandemic. The bank's performance in 2022 reflected
increased credit costs, operating expenses and funding costs in the
period, which offset the improvement in loan income as a result of
the strong credit growth of 22% in the 12 months ended in December
2022. The bank's strong operational growth, with total assets up
20.6% year-over-year, also strained profitability ratios. Moody's
expect Davivienda to report a flat performance in 2023 as new loan
origination slows down amid weakened economic activity in the
period. Credit costs remain high, as loan delinquency will inch up,
which is in line with the overall trend expected for the Colombian
banking system.

Davivienda's capitalization, measured by Moody's ratio of tangible
common equity (TCE) to risk weighted assets (RWA), remained below
that of its peers in Colombia in December 2022 due to higher
dividend payout ratio of 40%, above historical average level of
about 30%. Moody's acknowledges, however, that Davivienda's
regulatory Common Equity Tier 1 (CET1) ratio of 11.07%, as of
December 2022, remained fairly stable over the previous 12 months
and provided the bank a robust cushion over the regulatory minimum
level of 4.5%. During the next 12 months, Moody's anticipate the
bank's capital ratio will also remain relatively stable, with
slower loan origination easing pressure on capital consumption,
which will partly compensate a modest increase in net income and
will support a dividend payout in line with previous years.

At the same time, the bank's ba2 BCA is supported by asset quality
metrics that remained below its peers' and improved in the past
four to six quarters. In December 2022, Davivienda's problem loan
ratio, measured as Stage 3 loans under IFRS to gross loans, stood
at 3.21%, down from 4.27% one year prior. While the loan
delinquency ratio incorporated a 22.1% growth in gross loans, there
has been an improvement in the recovery of past-due loans in the
period and an increase in loan granularity provided by the bank's
growth into consumer lending. Despite that, Moody's expect
Davivienda's problem loan ratios will rise gradually in the next
three to four quarters – in line with other banks in Colombia –
with loans maturing under a less favorable scenario that will
continue to pressure households' repayment capacity. With that, the
bank's still adequate volume of loan loss reserves as of December
2022, at 135.89% of Stage 3 loans and 4.36% of gross loans, will
provide an important cushion to absorb additional deterioration in
asset quality in 2023.

As a result of the downgrade of the adjusted BCA to ba2,
Davivienda's subordinate debt rating was also downgraded to B2(hyb)
from B1(hyb). The subordinate debt rating remained positioned three
notches below the bank's Adjusted BCA of ba2, in line with Moody's
standard notching guidance for contractual non-viability perpetual
maturity securities.

The affirmation of the bank's Baa3 long-term deposit ratings
reflects Moody's assessment of a very high probability of support
from the Government of Colombia (Baa2, stable). In Moody's view,
Davivienda would benefit from government support in an event of
financial stress considering its 15% market share in local deposits
as of December 2022. This results in two notches of uplift from the
bank's ba2 BCA.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

Davivienda's BCA could be upgraded if the bank reports sustainable
and material improvement of its profitability and capital metrics
in the next 18 months. A possible upgrade of the bank's BCA would
also depend on asset quality metrics that remain in line with
levels observed currently.

Moody's could downgrade Davivienda's BCA if there is a sizable and
consistent weakening in the bank's asset quality metrics. The BCA
could also be lowered if the bank's profitability and
capitalization weakens materially. The bank's deposit ratings would
not be affected by a downgrade of the Government of Colombia's
sovereign bond rating of Baa2, which is unlikely at this time given
the stable outlook on the rating.

METHODOLOGY USED

The principal methodology used in these ratings was Banks
Methodology published in July 2021.



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

[*] DOMINICAN REPUBLIC: Seeks to Strengthen Commercial Ties With SA
-------------------------------------------------------------------
Dominican Today reports that the Dominican Republic and Saudi
Arabia convened a meeting to explore opportunities to strengthen
investment ties.  The Dominican Republic presented its projects and
prospects for business, highlighting its investment-friendly
environment, according to Dominican Today.  Raquel Pena, Vice
President of the Dominican Republic and head of the Investment
Cabinet for Strategic Projects, ProDominicana, and the Ministry of
Investment of the Kingdom of Arabia, presided over the event with
H.E. Mr. Badr AlBadr, Vice Minister of Investments of Saudi Arabia,
the report notes.

The Saudi delegation consisted of over 60 representatives from
various sectors, including energy, construction, tourism, real
estate, healthcare, food and beverage, banking and finance,
petrochemicals, pharmaceuticals, legal, aviation, mining, and
industrial sectors, the report discloses.  Several officials from
the Ministry of Energy, the Ministry of Economy, the Ministry of
Tourism, the Saudi Development Fund, and the Royal Commission of
the City of Riyadh were present, along with business leaders and
government officials from the Dominican Republic, the report says.

The event included presentations on several projects, and
approximately 100 meetings were held between the governments and
businesses of the two countries, the report notes.  The Vice
President of the Dominican Republic presented investment
opportunities, which reached a historic milestone of RD$4 billion
dollars this year, the report relays.  She emphasized the
importance of working together with Saudi Arabia to increase
bilateral trade and facilitate access to new markets, the report
discloses.

Biviana Riveiro Disla, executive director of ProDominicana,
expressed her interest in continuing to strengthen commercial ties
with Saudi Arabia and opening new ways to expand the exchange of
goods and new investments through the Single Investment Window, the
report relays.  The Dominican Republic shared investment
opportunities in sectors such as tourism, renewable energy, mining,
logistics, and free zones during the event, the report notes.

Joel Santos, Minister of the Presidency; Antonio Almonte, Minister
of Energy and Mines; Sigmund Freund, Director of the General
Directorate of Public-Private Partnerships (DGAPP); Yarisol Lopez,
Deputy Executive Director of the National Council of Export Free
Zones (CNZFE); and Marcial Smester, Investment Director of
ProDominicana presented the portfolio of projects with the greatest
potential for investors and commercial prospects with Saudi Arabia,
the report adds.

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
===============

PARAGUAY: Pres. Hopeful Has Plan to Win Investment-Grade Status
---------------------------------------------------------------
Ken Parks at Bloomberg News reports that opposition presidential
candidate Efrain Alegre says Paraguay needs a judiciary overhaul to
regain its status as an economic outperformer and finally win a
much-desired investment grade status.

Abundant natural resources and a young workforce alone won't
guarantee sustainable development unless Paraguay cleans up its
opaque system for appointing judges through fresh legislation or
changing the selection process rules, Alegre said in an interview
ahead of general elections April 30, according to Bloomberg News.

While the land-locked South American country has built a reputation
among investors since first issuing international bonds in 2013,
credit rating companies have long flagged weak institutions as a
barrier to investment grade, Bloomberg News notes.  Paraguay
frequently ranks among the worst Latin American countries in
Transparency International's annual corruption perceptions index,
Bloomberg News relays.

"What we need today is the rule of law," Alegre, 60, said in a
telephone interview from Asuncion.  "If we can obtain investment
grade, we know that we can make a great leap forward," he added.

He says winning investment grade could benefit the economy with as
much as US$2.5 billion in additional investment, Bloomberg News
discloses.  Paraguay received just US$122 million in foreign direct
investment in 2021, according to the UN's Economic Commission for
Latin America and the Caribbean, Bloomberg News notes.

Recent polls show a tight race between Alegre, a career politician
leading a coalition of conservatives and leftists, and the ruling
Colorado Party's candidate, Santiago Pena, ahead of the election.
Pena's staff declined an interview request, Bloomberg News relays.

A win by the opposition candidate would not only further a recent
trend of incumbent parties losing office in Latin America, but also
unseat the Colorados from power for just the second time since the
end of the Alfredo Stroessner dictatorship in 1989, Bloomberg News
recalls.

Paraguay, a country of 7.5 million people about the size of
California, is set to become the world's third-largest exporter of
soybeans this year after a deep drought curtailed production in
neighbouring Argentina, Bloomberg News says.  It's also a major
exporter of beef and renewable energy from hydroelectric dams,
Bloomberg News notes.

Still, about a quarter of the population lives in poverty and
growth averaged just over one percent in the last five years after
an average expansion of 4.3 percent in the decade through 2019, one
of the best performances in the Americas, Bloomberg News relays.
The US$43-billion economy is expected to bounce back and grow 4.5
percent this year, according to the International Monetary Fund,
Bloomberg News discloses.

The country's bonds are rated BB at Standard & Poor's, two levels
below investment grade, while Moody's and Fitch have them one notch
higher, Bloomberg News notes.

                       Renewables, Taiwan

Alegre, a member of the conservative Authentic Radical Liberal
Party since his youth, doesn't fall into the mould of leftists
leaders who in recent years won office in Latin American countries
from Colombia to Chile, Bloomberg News relays.  In fact, he has
pledged to cut the fiscal deficit, promote foreign investment and
keep taxes low, Bloomberg News notes.

He pitches his Concertacion Para un Nuevo Paraguay, coalition as a
stabilizing force and agent of change amid US sanctions against
senior Colorado leaders and says improving the selection system for
the judiciary is key to fight corruption and illegality, Bloomberg
News discloses.

"We have to establish a process that guarantees the selection of
the best and most capable" judges, he said during the interview,
Bloomberg News notes.

Alegre also wants to create more manufacturing jobs by tendering
renewable energy contracts to industrial firms, Bloomberg News
relays.  Paraguay's cheap electricity and close proximity to Brazil
and Argentina have nurtured a growing manufacture for export
industry that shipped more than US$1 billion in goods last year,
Bloomberg News says.

Fulfilling his vision of an industrial revolution underpinned by
clean energy will demand considerable political and diplomatic
skills, Bloomberg News notes.

Alegre has promised to renegotiate a pact with Argentina governing
the Yacyreta dam on the Parana River, Bloomberg News discloses.

He also plans to negotiate a new power distribution and rate
agreement with Brazil for Itaipu, one of the world's largest
hydroelectric dams, early in his government, Bloomberg News says.
Itaipu provided almost 86 percent of Paraguay's power in 2021,
Bloomberg News relays.

"The fact that Lula is president again will facilitate this
conversation," Alegre said referring to Brazil's Luiz Inacio Lula
da Silva, Bloomberg News notes.

Yet his most controversial foreign policy proposal is his
long-standing pledge to review Paraguay's alliance with Taiwan if
he wins office, the report relays.  The nation, which has held
diplomatic relations with Taiwan since 1957, can't directly sell
its farm goods to China because of its ties with the island that
Beijing views as a renegade province, the report says.

Alegre says that strategy means Paraguayan companies lose business
opportunities, adding that he is in conversations with the
Taiwanese government ahead of the vote, the report discloses.

"We are talking with Taiwan, with its ambassador.  We haven't taken
a position.  We have a critical view of how the relationship
between Paraguay and Taiwan has been managed," said Alegre, adding
that his team currently isn't negotiating with China, the report
adds.





=======
P E R U
=======

AUNA SAA: Fitch Hikes Foreign & Local Curr. IDRs to B, Outlook Pos.
-------------------------------------------------------------------
Fitch Ratings has upgraded Auna S.A.A.'s Long-Term Foreign and
Local Currency Issuer Default Ratings (IDRs) to 'B' from 'B-' and
assigned a Positive Rating Outlook. Fitch has also upgraded Auna's
2025 notes to 'B'/'RR4' from 'B-'/'RR4'. Rating Watch Negative has
been removed from the ratings.

The upgrade reflects the reduction of Auna's high refinancing risks
following the completion of USD406 million bridge loan refinancing
through the disbursement of USD455 million from a new private
placement senior secured notes due 2028. A second and final
disbursement (USD50 million) is expected within the next 45 days
and is subject to certain closing conditions. The positive outlook
reflects expectations of ongoing improvement in Auna's internal
cash flow generation and an expected deleverage trend that should
support the refinancing of its USD300 million senior notes due 2025
in the next 12 months-18 months.

KEY RATING DRIVERS

Improvements on High Refinancing Risks: Auna has addressed the
important refinancing of its of short-term debt, including the
USD406 million bridge loan (USD56 million due April 20, 2023 and
USD350 million due October 2023). The company has lengthened its
debt profile and have reduced most immediate liquidity risks with
the new issuance of senior notes due 2028.

Challenge to Improve Financial Flexibility: The high interest rate
of this new facility, consuming part of the cash flow improvements,
as well as the important debt refinancing of its outstanding USD300
million senior notes due 2025 and its mostly secured debt basis
remain limiting further improvements in Auna's credit profile at
this time. Fitch's base case scenario does not incorporate any
dividend pressure from Auna to its shareholders in terms of the
equity support (USD342 million) received to help fund acquisitions
during 2022. Any deviation from that could bring further pressure
to the ratings.

Acquisitions Benefited Business Profile: The acquisitions in
Colombia and Mexico enhanced Auna's business profile with
improvement in diversification, scale and profitability. Auna
acquired a controlling stake in IMAT Oncomedica, a leading health
care group in Monteria, Colombia. It specializes in oncology,
cardiology and high complexity services, and, added capacity of 427
beds in two hospitals. Following the acquisition , Auna's total
operating beds in Colombia increased to 1.096 and 375 in Peru.

Auna has also acquired 100% ownership stake in OCA, a leading
health care group in Mexico providing premium health care and
oncological services in Monterrey. OCA operates three
high-complexity hospitals representing the largest infrastructure
footprint in Monterrey´s health care market, with 708 operating
beds and approximately 35% market share based on number of beds.
Total acquisition disbursements amounted to USD822 million for OCA
and IMAT.

On a pro forma basis, around 43% of Auna's revenue is expected to
be generated in Peru, 30% in Colombia and 27% in Mexico. This
represents an improvement in revenue diversification compared with
2021, when 65% of Auna's revenues were originated in Peru and 35%
in Colombia. The hospital operations in Monterrey offer a
high-quality asset base with a track record of robust operating
margins (average of 34%). Fitch foresees Auna's consolidated EBITDA
margins moving around 22% by 2024, an improvement from its
historical 14% pre-pandemic levels and 10.5% average during
2020-2021.

Operating Cash Flow Improving: Fitch expects Auna to generate
adjusted EBITDA of around PEN759 million in 2023 and PEN853 million
in 2024, which compares to proforma EBITDA of PEN673 million in
2022, considering full year of acquisitions. Operating cash flow
should be around PEN137 million in 2023 and PEN156 million in 2024,
pressured by higher interest expenses, leading to a negative free
cash flow generation in the PEN75 million - PEN95 million range.
The company is expected to focus on maintenance capex and continue
to seek opportunities to improve profitability. Fitch incorporates
around PEN230 million of capex in 2023 and 2024 (including PEN60
million of Dentegra acquisition in January 2023).

Leverage to Improve: On a proforma basis, including the LTM EBITDA
for the acquired assets, Fitch expects Auna's net leverage to move
to around 3.8x-4.1x in the next two years from expected net
leverage of around 5.9x as of Dec. 31, 2022.This includes only
three quarters of IMAT and one quarter of OCA. On a proforma basis,
including last 12 months of the acquired assets EBITDA, net
leverage would be around 5.0x, per Fitch's calculations. During
2021, Auna's net leverage was 6.3x.

Solid Business Position: Auna operates through four business
segments: (1) Oncosalud Peru; (2) Health care services in Peru,
which consists of its Auna Peru network; (3) Health care services
in Colombia, which consists of its Auna Colombia network; and (4)
Health care services in Mexico, which consists of its Auna Mexico
network and its insurance business from Dentegra. . In Peru, Auna
has a solid business position as one of the largest and most
recognized players in the health care industry due to its highly
regarded oncology services.

Oncosalud is considered the leading brand in Peru, maintaining
approximately 30% market share in terms of private insurance plan
members with 1,039,000 members as of Sept. 30, 2022. This market
position makes Oncosalud the largest single private health care
plan in the country. Auna has achieved integration in its Peruvian
oncology platform through its ownership and management of hospitals
and clinics in all of the major cities in the country.

DERIVATION SUMMARY

Auna's ratings reflect the company's strong market position as one
of Peru's largest and well-known, reputable health care providers
and its growing presence in Colombia, and more recently in Mexico.
The company's current capital structure and financial flexibility
are pressured by recent acquisitions and the challenges to pursue
continuous improvements on its debt profile, representing an
important factor for its 'B' ratings.

Auna's strong brand, reputation in the industry, and R&D platform
are among its competitive advantages, translating into strong
relationships with payers and bargaining ability with third
parties. Fitch views Auna as weaker compared with regional peers in
terms of business scale and size of coverage. However, recent
acquisitions and diversification movements are positive for its
business profile.

Rede D'Or Sao Luiz S.A. (BB/Stable) and Diagnosticos Da America
S.A. - DASA (DASA; AA[bra]/Negative Outlook), comparably with Auna,
both have strong relationships with payers, as well as providers
and insurance companies, in Brazil due to the two companies'
positive brands and reputations. In terms of capital structure,
Auna has projected higher leverage than both. Although Auna has
comparable business risk with many players in the health care
industry, the company benefits from the growing Peruvian and
Colombian operating markets with predominantly middle-class
demographics, and its strong asset base and market-share in
Monterrey, Mexico.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within the Rating Case for the Issuer
Include:

- Revenue growth reflecting ongoing acquisitions, reaching around
PEN3.5 billion in 2023 with a full year of operations of the
acquired assets;

- EBITDA margins of around 21%-22% for 2023-2024;

- Average capex of PEN220 million during 2022-2024;

- No dividend payment during 2022-2024.

KEY RECOVERY RATING ASSUMPTIONS

The recovery analysis assumes that Auna would be considered a going
concern in bankruptcy and that the company would be reorganized
rather than liquidated. Fitch has assumed a 10% administrative
claim.

Going-Concern Approach: Auna's going-concern EBITDA is based on a
proforma considering the recent acquisitions. The going-concern
EBITDA estimate reflects Fitch's expectation of a sustainable,
post-reorganization EBITDA level, upon which Fitch's bases the
valuation of the company. The EV/EBITDA multiple applied is 6.5x,
reflecting Auna's strong brand and market position in the regions
it operates.

Fitch applies a waterfall analysis to the post-default enterprise
value (EV) based on the relative claims of the debt in the capital
structure. The agency's debt waterfall assumptions take into
account the company's total debt at Sept. 30, 2022, plus the new
secured bridge loans. These assumptions result in a recovery rate
for the unsecured bonds within the 'RR4' range, which, per Fitch's
criteria, leads to equalization of the rating with the IDR.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

- Fitch's adjusted EBITDA margin consistently above 22.5%;

- Fitch's net adjusted leverage ratio consistently below 4.0x;

- EBITDA interest coverage above 2.0x;

- Proactively addressing the refinancing of the 2025s maturity.

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

- Fitch's net adjusted leverage ratio consistently above 5.0x;

- Maintenance of aggressive growth strategy and/or shareholder
friendly policies limiting improvements in capital structure as
expected;

- Major legal contingencies issues that represent a disruption in
the company's operations or a significant impact to its credit
profile.

LIQUIDITY AND DEBT STRUCTURE

Improved Refinancing Risks: As of Sept. 30, 2022, Auna had PEN136
million of cash and cash equivalents, PEN669 million of short-term
debt, and total debt of around PEN2.1 billion per Fitch's criteria,
which excludes leases. On a proforma basis, following the recent
refinancing and debt-acquisition, Auna's total debt is around
PEN3.8 billion, with around PEN365million of debt due 2023, PEN42
million in 2024, bullet payment of PEN1.2 billion of its unsecured
notes in 2025 and a more relevant maturity of PEN1.9 billion of
notes due 2028. Remaining working capital lines are more manageable
at PEN60 million-PEN65 million per year by 2025-2027.

ISSUER PROFILE

Auna S.A. is one of the largest and most recognized players in the
Peruvian health care industry, with a growing presence in
Colombia's health care industry, and more recently in Mexico. The
company offers oncology and general health care plans and operates
hospitals and clinics.

ESG CONSIDERATIONS

Auna S.A.A. has an ESG Relevance Score of '4' for Management
Strategy management's appetite for debt financed growth (albeit
adding diversification to the business) that underscores higher
than expected event risk and potentially higher comfort with
elevated/longer periods of leverage than anticipated, which has a
negative impact on the credit profile, and is relevant to the
ratings in conjunction with other factors.

Auna S.A.A. has an ESG Relevance Score of '4' for Financial
Transparency as financial transparency/reporting continues to be
relatively weaker than peers, which has a negative impact on the
credit profile, and is relevant to the ratings 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.

   Entity/Debt             Rating        Recovery   Prior
   -----------             ------        --------   -----
Auna S.A.A.       LT IDR    B  Upgrade                B-
                  LC LT IDR B  Upgrade                B-

   senior
   unsecured      LT        B  Upgrade      RR4       B-



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P U E R T O   R I C O
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AZURE DEVELOPMENT: May 31 Plan & Disclosure Hearing Set
-------------------------------------------------------
On April 20, 2023, Azure Development, Inc., filed with the U.S.
Bankruptcy Court for the District of Puerto Rico a Disclosure
Statement describing Plan of Reorganization.

On April 24, 2023, Judge Enrique S. Lamoutte conditionally approved

the Disclosure Statement and ordered that:

     * May 31, 2023 at 10:00 AM at the U.S. Bankruptcy Court, U.S.
Post Office and Courthouse Building, 300 Recinto Sur, Courtroom No.

2, 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 10 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 10 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, 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 24, 2023 is available at
https://bit.ly/3n9a1Q8 from PacerMonitor.com at no charge.

Debtor's Counsel:

     Charles A. Cuprill, Esq.
     Charles A. Cuprill, P.S.C., Law Offices
     356 Fortaleza Street (2nd Floor)
     San Juan, PR 00901
     Tel: 787-977-0515
     Email: ccuprill@cuprill.com

                      About Azure Development

Azure Development, Inc., owns properties in Luquillo, P.R., valued
at $3.14 million. The company is based in San Juan, P.R.

Azure Development filed a petition for relief under Chapter 11 of
the Bankruptcy Code (Bankr. D.P.R. Case No. 23-00462) on Feb. 18,
2023, with $3,142,794 in assets and $3,246,910 in liabilities.
Jose Ricardo Martinez, vice-president of Azure Development, signed

the petition.

Judge Enrique S. Lamoutte Inclan oversees the case.

The Debtor tapped Charles A. Cuprill, P.S.C., Law Offices as
bankruptcy counsel and CPA Luis R. Carrasquillo & Co., P.S.C., as
financial advisor.



BED BATH & BEYOND: Gets Nasdaq Delisting; Cancels Meet
------------------------------------------------------
Bed Bath & Beyond Inc. (Nasdaq: BBBY), on April 25, 2023, announced
that it was notified by the Listing Qualifications Department of
The Nasdaq Stock Market LLC that Nasdaq had determined to delist
the Company's common stock as a result of the Company's
commencement of voluntary proceedings under Chapter 11 of the
United States Bankruptcy Code.  Nasdaq informed the Company that
trading in the Company's common stock would be suspended at the
opening of business on May 3, 2023.

Additionally, the Company is also announcing the cancellation of
its previously announced Special Meeting of Shareholders that was
scheduled for May 9, 2023.  The Company is also withdrawing from
consideration all proposals set forth in the Company's Definitive
Proxy Statement on Schedule 14A filed with the Securities and
Exchange Commission on April 5, 2023.

                    About Bed Bath & Beyond

Bed Bath & Beyond Inc., together with its subsidiaries, is an
omnichannel retailer selling a wide assortment of merchandise in
the Home, Baby, Beauty & Wellness markets and operates under the
names Bed Bath & Beyond, buybuy BABY, and Harmon, Harmon Face
Values.  The Company also operates Decorist, an online interior
design platform that provides personalized home design services.

At its peak, Bed Bath & Beyond operated the largest home furnishing
retailer in the United States with over 970 stores across all 50
states, consistently at the forefront of major home and bath
trends. Operating stores spanning the United States, Canada,
Mexico, and Puerto Rico, Bed Bath & Beyond offers everything from
bed linens to cookware to electric appliances, home organization,
baby care, and more.

Bed Bath & Beyond closed over 430 locations across the United
States and Canada before filing chapter 11 cases, implementing full
scale winddowns of their Canadian business and the Harmon branded
stores.

Left with 360 Bed Bath & Beyond and 120 buybuy BABY stores, Bed
Bath & Beyond Inc. and 73 affiliated debtors on April 23, 2023,
each filed a voluntary petition for relief under Chapter 11 of the
United States Bankruptcy Code to pursue a wind down of operations.
The cases are pending before the Honorable Vincent F. Papalia and
have requested joint administration of the cases under Bankr.
D.N.J. Lead Case No. 23-13359.

Kirkland & Ellis LLP and Cole Schotz P.C. are serving as legal
counsel, Lazard Frares & Co. LLC is serving as investment
banker, and AlixPartners LLP is serving as financial advisor.  Bed
Bath & Beyond Inc. has retained Hilco Merchant Resources LLC to
assist with inventory sales.  Kroll LLC is the claims agent.


ECSEM CORP: Unsecured Creditors to Get 5% in Plan
-------------------------------------------------
Ecsem Corporation submitted a Chapter 11 Small Business Plan and a
Disclosure Statement on April 14, 2023.

General unsecured creditors are classified in Classes 6 and 7.
Classes 6 and 7 will receive a distribution of 5% of their allowed
claims over a period of 5 years.

Ecsem Corporation is a "for profit" corporation organized under the
laws of the Commonwealth of Puerto Rico, since May 6, 1999, and is
dedicated to the rental of commercial properties. Debtor owns 2
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".

Under the Plan, Class 6 General Unsecured Claims of $5,500 or more
total $87,722.  Allowed claims in this class shall receive a
dividend of 5% over the course of 5 years from the Effective Date,
in monthly instalments in full payment of their claims. Class 6 is
impaired.

Class 7 General Unsecured Claims of $5,499 or less total $7,788.
Allowed claims in this class shall receive a dividend of 5% on
Effective Date in full payment of their claims. Class 7 is
impaired.

Payments and distributions under the Plan will be funded by
business income or any other income to which the Debtor may be
eligible.

Counsel for the Debtor:

     Mary Ann Gandia Fabian, Esq.
     GANDIA FABIAN LAW OFFICE
     PO Box 270251
     San Juan, PR 00928
     Tel: (787) 390-7111
     Fax: (787) 729-2203
     E-mail: gandialaw@gmail.com

A copy of the Disclosure Statement dated April 14, 2023, is
available at https://bit.ly/3MS0tDC from PacerMonitor.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.




=============
U R U G U A Y
=============

BANCO DE LA NACION: Fitch Affirms 'CCC-' Long-Term IDRs
-------------------------------------------------------
Fitch Ratings has affirmed Banco de la Nacion Argentina's (Sucursal
Uruguay) [BNAUY]) Long-Term Foreign and Local Currency Issuer
Default Ratings (IDRs) at 'CCC-'.

KEY RATING DRIVERS

BNAUY is a full branch of Banco de la Nacion Argentina (BNA), which
has a leading franchise and systemic important in its Argentina.
The bank also has international coverage through branches and
representative offices in seven countries, mainly to attend its
clients' domestic needs related to intraregional foreign trade and
supporting Argentina's commercial activity in the region.

BNAUY is the same legal entity as its head office BNA, therefore
its IDRs reflect Fitch's opinion on BNA's stand-alone credit
profile, which does not take support into consideration. BNA is
fully owned by the Argentine state and its liabilities (including
its branches abroad) are guaranteed by the sovereign. In Fitch's
view, BNA's creditworthiness is highly influenced by Argentina's
volatile operating environment.

On the other hand, BNAUY is the smallest bank in Uruguay due to its
narrow business focus. It is fully integrated with the head
office's structure, strategies, corporate governance, practices,
risk management procedures, and it operates through one main
office. BNAUY has volatile profitability, a liquid balance sheet,
adequate capitalization and limited lending activity.

The outcome of the committee would be the same if applying the
methodology registered in Uruguay (from March 28, 2022) or Fitch's
new Bank Rating Methodology published on Sept. 7, 2022

RATING SENSITIVITIES

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

- A downgrade would be triggered by a downgrade of Argentina's
Country Ceiling Rating below 'CCC-';

- The IDRs would also be pressured by a significant deterioration
in BNA's financial profile caused by a deterioration in the
Argentine operating environment;

- Any policy announcement in Argentina that would be detrimental to
either BNA or BNAUY´s ability to service their obligations would
be negative for their creditworthiness.

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

- The IDRs could benefit from an upgrade of Argentina's IDR above
'CCC-'.

   Entity/Debt                  Rating           Prior
   -----------                  ------           -----
Banco de la Nacion
Argentina
(Sucursal Uruguay)     LT IDR    CCC-  Affirmed   CCC-
                       LC LT IDR CCC-  Affirmed   CCC-

SANCOR SEGUROS: Fitch Affirms 'B+' LT IFS Rating, Outlook Now Pos.
------------------------------------------------------------------
Fitch Ratings has affirmed Sancor Seguros S.A.'s (Sancor) Long-Term
Insurer Financial Strength (IFS) at 'B+'. The Rating Outlook has
been revised to Positive from Stable.

The affirmation of Sancor is based on the stability of its main
rating factors, incorporating the maintenance of positive and
favorable results for the rating, stable leverage indicators, which
had been contained by growing capital, as well as the less
favorable evaluation of the business profile mainly as a result of
its limited operating scale in accordance with Fitch's guidelines.

The Positive Outlook reflects mainly the improvement of the
insurer's results, which has allowed it to sharply reduce its
dependence on capital from its parent company Sancor Cooperativa,
an entity for which Fitch maintains a credit opinion highly
influenced by Argentine sovereign risk.

KEY RATING DRIVERS

Reduction of Dependence to its Parent: The Positive Outlook on the
rating of Sancor Seguros S.A. (Sancor) is based on the substantial
reduction in the insurer's dependence on its Argentine parent,
Sancor Cooperativa. This separation is observed at the level of
systems and processes and mainly at the level of capital
requirements. Sancor has shown improvements in performance levels
over the last four years, which have implied the constant
generation of positive results. These results have made it possible
to sustain the growth levels shown to date, while accumulated
losses have decreased, strengthening the entity's equity base.

Fitch expects a more challenging 2023 for the business underwritten
by Sancor, mainly from the technical performance, for which an
upgrade to the rating would be contingent on maintaining during the
next 12 to 18 months profitability levels in line with the average
of the last four years, together with leverage indicators that
remain favorable for the rating.

Moderate Business Profile: Sancor's rating reflects a moderate
business profile based on the company's moderate market position,
as well as its business risk profile and diversification aligned to
the Uruguayan industry. The business profile is limited by its
small operating scale (in-line with Fitch criteria), which is
affected not only by the Uruguayan market size, but also by the
market share and concentration of the state-owned company (69.0%
December 2022), which limits the growth base for all the private
insurers in the country.

Favorable Financial Results: At YE 2022, Sancor presented positive
results, which, despite being weaker than the two previous years,
remained within the parameters considered in the score of the key
rating factor. The lower performance was mainly due to an inferior
financial income, while the technical result improved in comparison
with last year, benefited by a reduction of the net loss ratio.

Fitch evaluates improvement in the insurer's underwriting and
pricing policies as a positive factor, which improved the technical
income. Despite this, the 2023 ratios could deteriorate as a
consequence of the normalization of the claims in the agriculture
segment.

Stable Leverage: Leverage indicators have maintained alignment with
the company's historic average and are favorable in relation with
the guidelines of the current rating. At YE 2022 the index
presented a small increase from the previous year, influenced not
only by the company's bigger growth in the period but also by the
increase in the reserves due to regulatory changes, which were
partially offset by the strengthening equity position. The insurer
does not foresee the distribution of dividends in the short term,
so the maintenance of positive results should strengthen Sancor's
capitalization and leverage indicators.

Sancor Cooperativa's Credit Opinion: Sancor's rating considers the
credit opinion that Fitch maintains internally regarding its parent
company, Sancor Cooperativa, which, although it incorporates the
broad solvency levels and adequate nominal results, is strongly
influenced by the sovereign rating of Argentina and due to the
economic conditions of that country (inflation). Sancor
Cooperativa's credit opinion weighs negatively on Sancor's rating.

Investment Risk: The investment risk stays limited due to the wide
concentration in sovereign instruments (linked to sovereign risk).

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

- Return on Equity (ROAE) above 5.5% during the next 12 months;

- Combined ratio under 105% and operational indicator under 100%
during the next 12 months;

- Strengthening of the leverage indicators, including the result in
the evaluation of Fitch's Factor-Based Capital Model, maintaining
in a category equal or superior to Somewhat Weak;

- Positives changes in Fitch's view regarding Sancor Cooperativa's
credit profile.

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

- The revision of the Outlook to Stable could include a significant
deterioration in leverage indicators, with a GWP to equity steadily
above 3.5x and a result of Fitch's Fitch's Factor-Based Capital
Model in the lower part of the Weak category;

- Significant deterioration in the technical performance
indicators, with a combined ratio increasingly above 110% and a ROE
lower than 4% could also affect the Positive Outlook.

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.

   Entity/Debt              Rating        Prior
   -----------              ------        -----
Sancor Seguros S.A.   LT IFS B+  Affirmed   B+


                           *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Latin America is a daily newsletter
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Chapman, Editors.

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