---

       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 16, 2023, Vol. 24, No. 98

                           Headlines



A R G E N T I N A

ARGENTINA: Food Heads Price Up Amid 126% Inflation Rate Forecast


B R A Z I L

BRAZIL: Inflation Slowed Again in April to 4.18%
LIGHT SA: Files for Bankruptcy Protection with US$2.2-Bil. Debt
LIGHT SA: Stolen Electricity Raises Threat of Power-Supply Crisis


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Gasoline Price Higher Than in Central America


E C U A D O R

ECUADOR: Completes Debt-for-Nature Conversion With IDB Support
ECUADOR: S&P Affirms B-/B Sovereign Credit Ratings, Outlook Stable


V E N E Z U E L A

CITGO PETROLEUM: Judge Temporarily Suspends Creditors From Auction

                           - - - - -


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

ARGENTINA: Food Heads Price Up Amid 126% Inflation Rate Forecast
----------------------------------------------------------------
Buenos Aires Times reports that surging food costs in Argentina are
pushing inflation into the clouds, with market experts and analysts
now forecasting that price hikes will total 126.4 percent for this
calendar year.

The projection, delivered on the eve of the release of the INDEC
national statistics bureau's official inflation data for April, is
a significant jump of more than 16 points on the previous month,
according to Buenos Aires Times.

It also comes just days after a World Bank report said that
Argentina is suffering from the second-highest global food price
surge, trailing only Lebanon, the report notes.

Increases in food prices, which were projected to have risen 9.5
percent last month, would total 197 percent over the next 12 months
if they continue at the same rate, a report from the University of
Buenos Aires' Centre for Argentine Recovery Studies said, the
report notes.

The latest market expectations survey from the Central Bank shows
that experts now forecast a monthly inflation floor of seven
percent in the lead up to October's general elections, the report
discloses.  By next April, the annual inflation rate could reach
146.7 percent, the report warned, implying a 33.4 percent growth
from previous forecasts, the report says.

The World Bank report placed Argentina, at 107 percent, in second
place among the nations that suffered the highest food inflation
rate, behind Lebanon (352 percent) and ahead of Zimbabwe (102
percent), the report notes.

The damning data piles further pressure on Economy Minister Sergio
Massa, who has promised to contain prices through trade agreements
and a sweeping price-control scheme, the report relays.

                   Inflationary Weight on Food

In Argentina, food inflation disproportionately affects those who
have less, as can be seen in the 120.1 percent yearly increase from
INDEC's basic food basket, an economic marker based on the
indigence line, and the 113.2 percent increase for the total basic
basket, a marker based on the poverty line, the report discloses.

"This problem afflicts, above all, low-income households who do not
have the means to protect themselves from price increases, since
they allocate most of their income to subsistence," the UBA-Centro
RA report observed, the report relays.

Many crucial products from the basic food basket, such as sugar,
cooking oils, eggs, beer and wine experienced high annual
inflationary increases, it added.

Oranges, sweet potatoes, and lettuce experienced among the highest
annual price jumps, the report notes.

                      Inflation in Buenos Aires

At the municipal level, Buenos Aires is following the national
trends, the report relays.  The City recorded an overall 7.8
percent Consumer Price Index jump for April, raising the first
quarter inflation figure to 31.2 percent, the report notes.

With a 10.4 percent increase in the month of April, food and
non-alcoholic beverages was also the sector with the highest price
variations for the city, according to a report released by the City
Economy Ministry, the report relays.

Following closely behind, the clothing sector increased by 9.4
percent last month and transportation costs have jumped 8.1
percent, the report discloses.

In comparison to April 2022, restaurants and hotels experienced the
greatest increase in inflation, 130.9 percent, followed by food and
non-alcoholic beverages, 119.5 percent, the report 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.




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

BRAZIL: Inflation Slowed Again in April to 4.18%
------------------------------------------------
Buenos Aires Times reports that Brazil's annual inflation rate fell
for the 10th straight month in April, to 4.18 percent, the national
statistics institute said, bolstering President Luiz Inacio Lula da
Silva's push for growth-spurring interest-rate cuts.

The rate, which was within the Central Bank's target range for the
second straight month, was down from 4.65 percent the previous
month, hitting its lowest level since October 2020 when it stood at
3.92 percent, according to figures from national statistics
institute IBGE, according to Buenos Aires Times.

The monthly inflation rate came in at 0.61 percent, down from 0.71
percent in March, IBGE said, the report notes.

That was higher than the average forecast of 0.55 percent by 46
specialists polled by business daily Valor Economico, the report
relays.

But analysts said the latest figures added to evidence the Central
Bank's hawkish inflation-fighting campaign was working, the report
discloses.

"The sharp fall in Brazilian inflation . . . was encouragingly
broad based" across the different categories of goods surveyed,
notably food prices, said William Jackson, chief emerging markets
economist at consulting firm Capital Economics, the report says.

However, he cautioned that did not mean the central bank would
start interest-rate cuts just yet, the report discloses.

"We think the Central Bank will want to see more evidence that core
price pressures are easing," he wrote in a note, the report
relays.

Lula, who took office in January, has called Brazil's benchmark
interest rate "absurd" at 13.75 percent, saying it is stunting the
growth of Latin America's biggest economy, the report says.

The veteran leftist's administration fears a recession, after
Brazil's sluggish economy contracted 0.2 percent in the fourth
quarter of 2022 – the last under ex-president Jair Bolsonaro, the
report notes.

But the Central Bank's monetary policy committee has showed no
signs of easing off its hawkish stance yet, despite the inflation
rate returning within its target range (1.75-4.75 percent) in
March, the report relays.

The committee ended its last meeting on May 3 holding the key rate
for the sixth straight time and calling for "patience," 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).


LIGHT SA: Files for Bankruptcy Protection with US$2.2-Bil. Debt
---------------------------------------------------------------
Reuters reports that Light SA has filed for bankruptcy protection
with some 11 billion reais (US$2.2 billion) of debt, it said,
making the utility the latest high-profile Brazilian firm to seek
such protection in recent months.

Light, which distributes power in Rio de Janeiro state, joined the
ranks of retail giant Americanas SA (AMER3.SA), telecoms firm Oi SA
(OIBR4.SA) and brewer Petropolis, which have all filed for
bankruptcy this year amid financial crises, according to Reuters.

Light said in a securities filing the request before a court in Rio
de Janeiro came as the economic and financial conditions of the
firm and some of its subsidiaries continued to worsen despite
efforts to meet financial obligations, the report notes.

That required "the urgent adoption of other measures that can
protect them until it is possible to implement the readjustment of
its indebtedness and the readjustment of its capital structure,"
Light said, the report discloses.

The electric utility had earlier this year already requested a
court to temporarily suspend payments of financial debts, he report
relays.

It said it was "confident" in its operational capacity as well as
in its commercial reach to approve the reorganization plan also
aimed at preserving its services, a view shared by the state of Rio
de Janeiro, the report relays.

"We understand the financial issues must be resolved within the
process, in talks with creditors, while the services provided by
the company would remain normal," Rio's Chief of Staff Nicola
Miccione told Reuters.

Earlier, Brazil's Mines and Energy Minister Alexandre Silveira
criticized Light, saying that companies with "no management
efficiency . . . such as Light," should not get their distribution
contracts renewed, the report adds.

Light at the time declined to comment.


LIGHT SA: Stolen Electricity Raises Threat of Power-Supply Crisis
-----------------------------------------------------------------
globalinsolvency.com, citing Bloomberg News, reports that Rio de
Janeiro's electric company says so many people are stealing power
in the city's slums that it has been pushed into default, causing a
massive selloff and attracting a veteran buyer of distressed
Brazilian corporations.

Light SA lost around $200 million last year from the illegal
hookups, perched like a tangle of wire birds' nests atop power
poles across Rio's favelas, according to globalinsolvency.com.
That's even after years of investment to prevent theft, the report
notes.

The 120-year-old utility says it can't keep absorbing the losses,
which also include delinquencies and judicial costs, the report
relays.   As a June deadline approaches, it is mulling walking away
from its contract with the city, an unlikely and unprecedented move
that has the potential of throwing Brazil's second-largest city
into an electricity-supply crisis, the report notes.

Light last year posted its worst results since at least 2006, as an
economic slowdown reduced demand from large clients and increased
delinquencies, the report says.  Its debt levels soared due to
higher interest rates, the report notes.  The company is now
pressing the government to raise tariffs, the report discloses.  
Otherwise, it says, the business is unviable. It could use its
holding company to file for bankruptcy protection, according to a
person familiar with the matter, the report says.

"Everybody was expecting the energy losses to decline, and that was
a frustration," said Lucas Rios, the primary analyst for Light at
Fitch Ratings, the report notes.  If the holding company files for
bankruptcy protection, "it's going to be very difficult," the
report relays.

Already, the company won a court order allowing it to temporarily
halt payments to financial creditors, which ratings firms,
including S&P Global Markets, classified as a default, the report
discloses.  Its dollar bonds have handed investors losses of 55%
this year, among the worst performers in Latin America, the report
adds.




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

DOMINICAN REPUBLIC: Gasoline Price Higher Than in Central America
-----------------------------------------------------------------
Dominican Today reports that the Dominican Republic has
consistently had the highest prices for gasoline and diesel among
six Central American countries over a span of 12 years,
specifically from 2010 to 2021.

According to data compiled by the Economic Commission for Latin
America and the Caribbean (ECLAC) on hydrocarbon statistics in the
region, the Dominican Republic consistently had higher average
prices for premium and regular unleaded gasoline, as well as
diesel, compared to Costa Rica, El Salvador, Guatemala, Honduras,
Nicaragua, and Panama, the report notes.

In a recent report titled "Central America and the Dominican
Republic: hydrocarbon statistics, 2021" published by ECLAC, the
internal prices per gallon of fuel derivatives were converted into
dollars for comparison, the report relays.  Analyzing the data from
2010 to 2021, it is evident that the Dominican Republic
consistently had the highest prices, except for diesel in 2015,
2017, 2019, and 2020, and gasoline in 2020, the report notes.

The ECLAC report also examines the impact of tax differences on
prices, the report discloses.  In 2021, the Dominican Republic and
Costa Rica had similar average tax amounts per gallon of premium
gasoline, amounting to $1.60, according to the data, the report
recalls.  For regular gasoline, the Dominican Republic ranked
second with $1.44 in taxes per gallon, while for diesel, it ranked
first with $0.94 per gallon, the report says.

Since March 2022, the Dominican Government has implemented a policy
of extraordinary fuel subsidies to curb inflation, resulting in
frozen prices for premium gasoline at 293.60 pesos per gallon and
regular gasoline at 274.50 pesos per gallon, the report relays.
Regular diesel has remained at 221.60 pesos per gallon, and optimum
at 241.10 pesos per gallon, the report notes.  For instance, out of
the 293.60 pesos per gallon for premium gasoline, 97 pesos are
attributed to taxes and 43.34 pesos to marketing margins, totaling
140.34 pesos, the report says.

In a recent development, the government reduced the price of
liquefied petroleum gas (LPG) from 147.60 to 144.60 pesos per
gallon, marking a decrease of 3 pesos, the report relays.  Ramon
Perez Fermin, the Vice Minister of Internal Commerce of the
Ministry of Industry, expressed optimism when announcing the
current fuel prices, stating that it was the most favorable week
for the Dominican market since 2021 in terms of fuel pricing, the
report discloses.

The ECLAC report also highlights a 14.8% increase in hydrocarbon
consumption in 2021 across the seven analyzed countries, indicating
a near-full recovery to pre-pandemic levels in terms of mobility
and economic activities, the report relays.  However, kero/jet fuel
has not yet reached its pre-pandemic level due to the gradual
recovery of air mobility, the report notes.

Of the seven countries analyzed, the Dominican Republic had the
highest total consumption in 2021, accounting for 66.5 million
barrels or 32.4% of the total, the report says.  When excluding
consumption for electricity production, the Dominican Republic
experienced the highest increase in hydrocarbon consumption at
24.5%, according to the report, Dominican Today notes.  The report
also notes that fuel consumption for electricity generation in the
region only decreased by 0.1% in 2021 due to improved efficiency of
natural gas units, increased generation from renewable sources, and
favorable rainfall, Dominican Today discloses.

Regarding the production of fuel derivatives in refineries, the
report states that the Dominican Republic's refineries only covered
13% of the national market, 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.




=============
E C U A D O R
=============

ECUADOR: Completes Debt-for-Nature Conversion With IDB Support
--------------------------------------------------------------
With support from the Inter-American Development Bank (IDB) and the
U.S. Development Finance Corporation (DFC), Ecuador completed a
debt conversion that will allow the country to allocate resources
for long-term marine conservation in the Galapagos Islands to
promote greater sustainability and improve the quality of life of
Ecuadorians.

To date, this is the largest debt-for-nature conversion completed
in the world. The operation consists of an $85 million IDB
guarantee and an $656 million DFC political-risk insurance to
Ecuador to purchase existing public debt at better terms. This debt
purchase with cheaper financing will generate lifetime savings of
more than $1.126 billion. Besides providing the guarantee, the IDB
has supported institutional strengthening policies for
environmental and public-debt management in the country.

"Ecuador and the IDB are breaking ground with this debt-for-nature
conversion. Not only is this the largest operation of its kind, but
it is the first time that a multilateral institution is combining
guarantees with political-risk insurance to mobilize resources from
different actors towards conservation. It is an example of how the
region is not only tackling global challenges, but is also being
part of the solution – pioneering innovative approaches and
instruments that can be replicated and scaled globally," said IDB
President Ilan Goldfajn.

This operation is estimated to generate savings to finance
conservation activities for $323 million. These resources will be
used to create the Galapagos Life Fund, which will finance
conservation activities over the next 18.5 years in both the
Galápagos Marine Reserve and the Reserva Marina Hermandad, an area
of conservation created in the Galápagos area in 2022.

Gustavo Manrique Miranda, Ecuador's Minister of Foreign Affairs,
said: "This marine reserve is special because of the participatory
process involved in its creation: the government, the fishing
sector, academia, and civil society, in general, joined forces to
increase and strengthen mechanisms for the conservation of the
extraordinary biodiversity of Galápagos. The debt-for-nature
conversion is a recognition of all the work done, an example to the
world of environmental protection, support for scientific research
and support for production; this is true sustainable development."

This type of operation allows countries to improve their debt
management, while boosting investment in environmental
sustainability and biodiversity. The operation also marks an
important milestone for the IDB in its strategy to deploy
innovative financing instruments to mobilize resources for
sustainable development.

"This transaction supports Ecuador's efforts to achieve the
Sustainable Development Goals linked to biodiversity and
sustainability and targets under the Global Biodiversity Framework
agreed at COP 15. It also promotes economic and social reactivation
based on the conservation and sustainable use of its natural
capital. The actions taken by Ecuador in this debt-for-nature
conversion mark a milestone and show its commitment to building a
sustainable present and future based on the participation of
communities, articulated work with the productive sectors and care
for the environment," said Juan Carlos De la Hoz Vinas, IDB
Representative in Ecuador.

The Reserva Marina Hermandad comprises 60,000 square kilometers of
ocean between the Galápagos Marine Reserve and the Costa Rican
maritime border northwest of the Galápagos Islands. This will help
create a corridor of trans-national protected areas in a vitally
important habitat for threatened shark species. The Galápagos
Marine Reserve comprises 13 large islands in an area of 40 nautical
miles. It has more than 3,500 species, 25% of which are endemic
marine organisms, and 24 species of mammals, two of which are
endemic. In addition to their intrinsic value, these two reserves'
natural capital is crucial for important economic sectors in
Ecuador, such as tourism and artisanal fishing.

Credit Suisse acted as global lead arranger for this transaction,
Oceans Finance Company served as project manager and Pew Bertarelli
Ocean Legacy as cooperating partner.


ECUADOR: S&P Affirms B-/B Sovereign Credit Ratings, Outlook Stable
------------------------------------------------------------------
S&P Global Ratings, on May 12, 2023, affirmed its 'B-/B' long- and
short-term foreign and local currency sovereign credit ratings on
Ecuador. The outlook remains stable. The 'AAA' transfer and
convertibility assessment is unchanged.

Outlook

The stable outlook balances Ecuador's improved fiscal profile,
after having met the benchmarks under the IMF's Extended Fund
Facility program that ended December 2022, with policy execution
risks amid increased political uncertainty following the
presidential impeachment process initiated in March 2023.

Downside scenario

S&P could lower the ratings over the next 12 months if policy
reversals occur that elevate fiscal and external imbalances beyond
its expectations or hamper access to official lending. Because
access to international markets is still uncertain, larger fiscal
deficits may increase reliance on short-term debt, potentially
reversing some recent improvement in Ecuador's debt profile and
increase liquidity pressures.

Upside scenario

S&P said, "We could upgrade Ecuador in the next 12-18 months if
more clarity on political dynamics creates space for execution of
fiscal and other policies that translate into a
faster-than-expected pace of fiscal adjustment while the country
maintains current account surpluses. The combination of stronger
fiscal and external flows should help Ecuador improve its external
debtor position and regain market access in time. We could also
raise the ratings if real GDP growth dynamics become more
comparable to peers' with similar levels of economic development."

Rationale

On May 9, Ecuador announced it had completed a debt exchange of
$1.6 billion in global bonds maturing 2030, 2035, and 2040 for a
new $656 million loan with the GPS Blue Financing SPV in a
debt-for-nature transaction. The primary goal of the transaction is
directing funds to environmental conservation purposes. S&P said,
"We consider this transaction an opportunistic liability management
operation, rather than a distressed exchange, notwithstanding the
'B-' rating; in general, at such low rating levels, we tend to
classify exchanges or buybacks as distressed and tantamount to
default. In this case, however, we do not believe that absent
participation in this transaction, there would have been a
conventional default."

On May 4, GPS Blue had purchased around 10% of the outstanding
amount of the three international bonds following a bidding
mechanism via a modified Dutch auction procedure; Credit Suisse
acted as arranger for the transaction. Investors who did not accept
the offer maintain the right to receive the full payment amount at
each global bond's maturity date.

GPS Blue financed the buyback of Ecuador's global bonds by issuing
a $656 million "Galapagos bond" due 2041. GPS Blue benefits from
the U.S. International Development Finance Corp.'s provision of
$656 million in political risk insurance for Ecuador and from
Inter-American Development Bank's partial guarantee of $85 million
on quarterly interest payments. In a subsequent operation, GPS Blue
swapped with Ecuador the $1.6 billion (face value) in these global
Ecuadorian bonds, issued 2020 for a $656 million loan that has
terms similar to the Galapagos bond. Ecuador will then delist the
$1.6 billion global bonds, which will result in a reduction in
Ecuador's debt stock of around $1 billion. This net reduction in
debt represents only 6% of Ecuador's commercial external debt, and
the savings in debt service are not material for the short term.
Part of these savings will be dedicated to the conservation of the
Galapagos marine reserve.

S&P said, "It remains our expectation, consistent with our rating
action and B- rating, that Ecuador's debt payments over the coming
year are manageable. The 2020 debt restructuring pushed principal
repayments of global bonds to 2026-2040, starting with $740 million
in 2026 associated with the 2030 step-ups. Until then, interest
payments on all these eligible bonds average $650 million per year
(2% of general government revenue).

"Our 'B-' ratings on Ecuador reflect the progress in reducing its
once-large fiscal deficits and the stabilization of the general
government debt burden. The general government posted a 0.4% of GDP
surplus in 2022, from a 7.1% deficit in 2020. We expect a deficit
of around 2.3% of GDP this year in light of lower global oil prices
and complex social and political dynamics, including the ongoing
impeachment process, which pressures spending and revenue. That
said, we estimate the government's financing needs, at 6% of GDP,
to be mostly financed by prearranged official lending.

"We will analyze the rating implications of any potential future
debt buyback or exchange on a case-by-case basis, considering the
respective terms and conditions, as well as the prevailing
macroeconomic context and interim policy developments."

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

  RATINGS AFFIRMED

  ECUADOR

   Sovereign Credit Rating         B-/Stable/B

   Transfer & Convertibility Assessment    AAA

  ECUADOR

   Senior Unsecured                         B-




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

CITGO PETROLEUM: Judge Temporarily Suspends Creditors From Auction
------------------------------------------------------------------
globalinsolvency.com, citing Reuters, reports that a U.S. court of
appeals has granted Venezuela a temporary stay preventing six
companies from joining a proposed court auction of shares in a
Citgo Petroleum parent to enforce judgments for past expropriation
of assets.

Since March, creditors including a unit of O-I Glass, Huntington
Ingalls Industries, ACL1 Investments, Koch Minerals and mining
firms Rusoro Mining and Gold Reserve, have been granted rights to
seize shares in the parent of Venezuela-owned refiner Citgo, PDV
Holding, according to globalinsolvency.com.

The companies had won conditional attachments to a federal case in
which the judge has approved a process to auction the shares to pay
a $970 million judgment won by miner Crystallex, the report notes.


The six hold arbitration awards or judgments that total about $2.6
billion and wanted those awards to be included in the auction, the
report relays.

The appeals court suspended the attachments until a panel could
hear from Venezuela and the six companies to be filed with the
court by June, the report says.

The proposed auction, which could break up the seventh largest U.S.
refiner to pay creditors, took a giant step forward last month with
a greenlight from the U.S. Treasury, the report adds.



                           *********


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

Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.

Copyright 2023.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Peter A. Chapman at 215-945-7000.
.


                  * * * End of Transmission * * *