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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, June 13, 2023, Vol. 24, No. 118

                           Headlines



A R G E N T I N A

ARGENTINA: S&P Lowers Sovereign Credit Ratings to 'SD/SD'


B E R M U D A

NABORS INDUSTRIES: Egan-Jones Retains 'CCC-' Unsec. Debt Ratings


B R A Z I L

BANCO YAMAHA: Moody's Affirms 'Ba1' Deposit Rating, Outlook Stable
BRAZIL: Inflation Falls to 2-Year++ Low Amid Calls for Rate Cuts
EMBRAER SA: Egan-Jones Retains 'B' Sr. Unsecured Debt Ratings
LIGHT SA: Distressed Investor to Vote for Bankruptcy
UNIGEL PARTICIPACOES: S&P Lowers ICR to 'CCC+', On Credit Negative



C H I L E

CHILE: Inflation Slows Past All Estimates With Interest Rate Cuts


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Chinese Firms Evade Taxes, Amchamdr Laments
DOMINICAN REPUBLIC: Monetary Expansion Measures Boost Liquidity


G U A T E M A L A

GUATEMALA: Fitch Assigns 'BB' Rating to USD1 Billion Notes Due 2036


J A M A I C A

JAMAICA: Construction Industry Declines by 4% in Q1

                           - - - - -


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A R G E N T I N A
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ARGENTINA: S&P Lowers Sovereign Credit Ratings to 'SD/SD'
---------------------------------------------------------
S&P Global Ratings, on June 8, 2023, lowered its local currency
sovereign issuer credit ratings on Argentina to 'SD/SD' from
'CCC-/C' and its national scale rating to 'SD' from 'raCCC+'. None
of its ratings on bond issues are affected. S&P affirmed its
'CCC-/C' foreign currency sovereign issuer credit ratings on
Argentina. The outlook on the long-term foreign currency rating
remains negative. S&P's 'CCC-' transfer and convertibility
assessment is unchanged.

Outlook

The negative outlook on the long-term foreign currency rating
reflects risks surrounding pronounced economic imbalances and
policy uncertainties before and after the 2023 national elections.
Divisions within the government coalition, and infighting among the
opposition, 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 complementing traditional auctions to place debt.
The central bank continues to play a key role as a backstop for
local debt management in the secondary market.

Downside scenario

S&P could lower the foreign currency ratings over the next six to
12 months on unexpected negative policy or political developments
that undermine already limited access to financing complicated even
further by the severe drought. Particularly, setbacks under the
Extended Fund Facility (EFF) that reduce access to IMF financing,
and potentially to other multilateral lending institutions. This
scenario would likely weigh on modest commercial foreign currency
debt servicing. As well as further aggravate local investor
confidence and access to peso-denominated debt
markets--exacerbating the risks associated with recourse to central
bank financing amid already triple-digit inflation--could lead to a
downgrade. Heightened pressure in local financial markets,
including the banking system's deposit base, or difficulties in
managing central bank debt (LELIQs), could also lead to a
downgrade.

Upside scenario

S&P said, "Upon completion of the local currency debt exchange and
the issuance of new securities, we would likely raise our long-term
local currency rating to the 'CCC' category, at which point we
would consider the default to be "cured," as per our criteria."

S&P could raise the foreign currency ratings over the next six to
12 months following:

-- A track record of successful execution under the EFF; and

-- Clarity on how policy will ease financing challenges in the
local market and provide a road map to address Argentina's major
structural macroeconomic imbalances.

S&P could also raise the ratings if there is a more pronounced
economic recovery that supports stronger fiscal outcomes that take
pressure off the government's financing needs.

Rationale

S&P said, "We lowered our local currency ratings on Argentina to
'SD' following this week's announcement of a peso-denominated debt
exchange that we view as distressed, rather than opportunistic,
owing to the government's weak market access. This week's swap aims
to clear peso-denominated maturities coming due in June through
September and push them into 2024 and 2025. It's the fifth such
operation since August 2022. At the beginning of 2023, the
government's peso-denominated debt coming due this year totaled $88
billion . The January and March swaps still left significant
maturities in place over the next months.

"In general, we consider most exchanges at such low rating levels
as distressed and tantamount to default following our criteria and
ratings definitions. We continue to analyze debt exchanges at this
low rating level on a case-by-case basis and in the macroeconomic
and political context. We have indicated that we would likely
classify such exchanges as a distressed exchange, indicating a view
that absent participation, a conventional default would likely
ensue."

With the primary and national elections forthcoming in August and
October, political stress continues to rise amid persistent
macroeconomic imbalances, including:

-- Inflation over 100%;

-- The gap between the official and multiple parallel exchange
rates is around 100%;

-- Already low international reserves remain under pressure;

-- Uncertainties on fiscal execution in the run-up to the
elections persist; and

-- The economy looks set to contract this year given these
uncertainties, the drought that's hitting agricultural exports, and
tight import controls that weigh on domestic production.
S&P said, "Amid these challenges, the government is, in our view,
relying on debt exchanges to manage the peaks in its
peso-denominated maturities, and then conducting auctions to
refinance smaller amounts of debt coming due. We expect
public-sector entities (mostly the central bank [BCRA], the social
security institute [ANSES], and Banco de la Nacion Argentina),
which hold about two-thirds of the seven eligible securities in the
exchange, to participate. Of the remaining one-third held by the
private sector, with a high concentration in June, we expect some
participation by banks and funds." The government solicited their
feedback on designing the new instruments. BCRA's put option
mechanism continues to offer another formal backstop for maturities
on government debt due in 2024 and 2025.

Upon completion of the debt exchange--including issuance of the new
securities—S&P would consider the local currency default to be
"cured," and it would likely raise its long-term local currency
rating to the 'CCC' category.




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B E R M U D A
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NABORS INDUSTRIES: Egan-Jones Retains 'CCC-' Unsec. Debt Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company, on May 19, 2023, maintained its 'CCC-'
foreign currency and local currency senior unsecured ratings on
debt issued by Nabors Industries Ltd. EJR also withdrew its 'C'
rating on commercial paper issued by the Company.

Headquartered in Hamilton, Bermuda, Nabors Industries Ltd., is a
land drilling contractor, and also performs well servicing and
workovers.




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B R A Z I L
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BANCO YAMAHA: Moody's Affirms 'Ba1' Deposit Rating, Outlook Stable
------------------------------------------------------------------
Moody's Investors Service has affirmed all ratings and assessments
assigned to Banco Yamaha Motor Do Brasil S.A. (Banco Yamaha),
including the Ba1 and Not Prime local and foreign currency deposit
ratings, long- and short-term, respectively. At the same time,
Moody's also affirmed Banco Yamaha's Baa3 and P-3 local and foreign
currency counterparty risk ratings, long and short-term,
respectively. The bank's baseline credit assessment (BCA) of ba3
and its adjusted BCA of ba1 were also affirmed as well as its
counterparty risks assessments of Baa3(cr) and P-3(cr), long- and
short-term, respectively. The long-term deposit ratings have a
stable outlook.

RATINGS RATIONALE

The affirmation of Banco Yamaha's BCA of ba3 is underpinned by the
bank's well established captive operation of Yamaha Motor Company
Limited (Baa1 stable) in Japan, its robust capitalization and
historically high profitability, which mitigates risks posed by a
weaker asset quality metrics relative to peers, and a predominantly
confidence sensitive funding profile.

The ba3 BCA captures current negative credit cycle that has
affected profitability and asset quality amid high interest rates
and inflation that impacted households' repayment capacity.
Profitability as measured by net income to tangible asset declined
from 3.8% average in the past four years to 0.7% in the end of
2022, as a result of higher provisioning expenses and funding costs
that pressured the bank's margins. While Banco Yamaha is solely
focused on motorcycle financing, a business segment highly
sensitive to interest rates, future profitability will continue to
be constrained as interest rates remain high for longer.

In terms of asset quality, Banco Yamaha's problem loans remained
above that of other captive auto lenders in Brazil (5.5% of gross
loans on average in April 2023) and above its historical average of
5.4% between 2017 and 2020, reaching 7.9% of gross loans by the end
of 2022, after the 9.2% peak in June 2022. This improvement in
problem loans resulted from an accelerated loan growth between 2021
and 2022 that averaged 22% year over year. Although asset risk will
likely to remain under pressure in the short term, Moody's
acknowledge that Banco Yamaha's portfolio is highly granular
helping to offset the structural risk posed by sector
concentration. At the same time, the bank increased substantially
its reserves for loan losses that covered 106.8% problem loans in
December 2022.

Banco Yamaha's ba3 BCA also reflects the bank's reliance on
wholesale funding sources and the low level of liquidity maintained
by the bank. About 17% of the bank's funds are sourced from related
parties in the form of time deposits, while the bulk of resources
refers to borrowings and interbank deposits with Japanese and
Brazilian large financial institutions, resulting in a concentrated
funding mix. Despite the bank's recent actions to diversify its
funding profile amongst other institutional depositors, including
asset managers, Moody's expect no material change in its funding
profile in the next 12 to 18 months because these deposits tend to
be more confidence sensitive than traditional retail deposits.
Additionally, its stock of liquid assets is modest relative to
similarly rated banks, a factor mitigated by conservative liquidity
management evidenced throughout economic cycles. In December 2022,
liquid asset to tangible banking assets stood at 7.67%, low
compared to an average of 33.1% reported by other Brazilian banks
with similar rating.

Conversely, a positive rating driver is Banco Yamaha's high
capitalization base reflected by Moody's TCE ratio, calculated as
tangible common equity (TCE) relative to risk weighted assets
(RWAs), which remained at 16.3% in December 2022 despite the strong
loan growth over the past 2 years. The bank's conservative earnings
retention policy supports capitalization and loss absorption
capacity to the bank, while its allows Banco Yamaha to continue to
grow in the double-digit rate.

By affirming Banco Yamaha's Ba1 deposit ratings, Moody's
acknowledges the role of the bank as the captive finance arm of
Yamaha Motors do Brasil, the affiliate of Japan's Yamaha Motor
Company Limited (Baa1 stable). Solely engaged in financing sales of
motorcycles, Banco Yamaha's strategy and operations are closely
tied to those of the manufacturing company and the rating,
therefore, incorporates Moody's assessment of a very high
probability of support from its ultimate parent Yamaha Motor
Company Limited in Japan. This assessment results in two notches of
uplift to Moody's ba3 BCA for Banco Yamaha.

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

Banco Yamaha's BCA could be upgraded if there is a material
improvement in the bank's liquidity and funding profile and its
reliance on market fund were to fall. The deposit ratings could
also be affected positively if there is an upgrade of the parent's
Baa1 issuer rating.

Banco Yamaha's ba3 BCA could face negative pressures if there is
further deterioration of its asset quality and profitability
indicators due to a material increase in provisions for loan losses
and in funding costs. A consistent decline in profitability could
compromise the bank's capacity to replenish capital through
earnings, which could be negative in the long run.

PRINCIPAL METHODOLOGY

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


BRAZIL: Inflation Falls to 2-Year++ Low Amid Calls for Rate Cuts
----------------------------------------------------------------
globalinsolvency.com, citing Reuters, reports that consumer prices
in Brazil decelerated more than expected in May, government data
showed with 12-month inflation hitting its lowest level in more
than two years and dropping below the 4% mark for the first time
since late 2020.

The figures are likely to add weight to calls by President Luiz
Inacio Lula da Silva's government and business people for the
central bank to lower its key interest rate from the current
six-year high of 13.75%, according to globalinsolvency.com.

Annual inflation in Latin America's largest economy hit 3.94% in
May, statistics agency IBGE said, below the median forecast of
4.04% in a Reuters poll of economists and the lowest level since
October 2020, the report notes.

Markets responded favorably, with the benchmark stock index Bovespa
gaining 1% to trade above 115,000 points for the first time since
November 2022, while interest rate futures dropped sharply, the
report relays.

The real strengthened 0.1% against the dollar, the report
discloses.  Brazil's Planning Ministry said in a statement the
lower-than-expected inflation data proved that a disinflationary
process was underway in the country, even with unfavorable base
effects expected to trigger an uptick starting July, 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).


EMBRAER SA: Egan-Jones Retains 'B' Sr. Unsecured Debt Ratings
-------------------------------------------------------------
Egan-Jones Ratings Company, on May 24, 2023, maintained its 'B'
foreign currency and local currency senior unsecured ratings on
debt issued by Embraer SA. EJR also withdrew its 'A3'  rating on
commercial paper issued by the Company.

Headquartered in Sao Jose dos Campos, State of Sao Paulo, Embraer
SA manufactures and markets commercial, corporate, and defense
aircraft.


LIGHT SA: Distressed Investor to Vote for Bankruptcy
----------------------------------------------------
globalinsolvency.com, citing Bloomberg News, reports that investor
Nelson Tanure said he'll vote in favor of the bankruptcy process
for Rio de Janeiro's power company Light SA at a shareholders'
meeting, making the approval of the measure practically certain.

"We are looking for a completely uniform direction for the
company," Tanure said in an interview.  Tanure, a veteran investor
in distressed assets in Brazil, holds a 21.8% stake in Light
through the fund WNT Gestora de Recursos Ltda, after starting to
buy shares when they went declined this year, according to
globalinsolvency.com.

He now tops Ronaldo Cezar Coelho, who has about 20%, and
billionaire Carlos Sicupira, with about a 10% stake. Light's shares
are up 11.66% this year, the report notes.

The holding company filed for bankruptcy protection from creditors
on May 12 after warning that it was struggling to pay its 11
billion reais ($2.24 billion) in debts without government
authorization to increase tariffs, the report discloses.

The decision prompted protests from many local bondholders, which
promised a court fight, the report relays.

"They filed using the holding company, which has no debt at all,
because of a distressed situation in the distribution subsidiary,
which can't use a bankruptcy filling process according to Brazilian
law," Claudio Brandao Silveira, founding partner at BeeCap, a
boutique advisory firm representing a group of bondholders with
about 5 billion reais in Light debt, said at the time, the report
notes.

The bankruptcy protection process was approved by a court in Rio on
May 15.

On the same day, the company said that in order to raise cash it
was considering selling off its generation business, according to
it Chief Executive Officer Octavio Lopes, the report relays.

In a webcast, he added that this sale was "not the best solution,"
the report adds.

As reported in the Troubled Company Reporter-Latin America on
May 18, 2023,  Moody's Investors Service has downgraded to Ca from
Caa3 Light S.A.'s (Light) Corporate Family Rating, the Issuer
Ratings and Backed Senior Unsecured ratings of its operating
subsidiaries Light Servicos De Eletricidade S.A. (Light SESA) and
Light Energia S.A. (Light Energia), both guaranteed by Light. The
outlooks remain negative.

These actions follow the court approval of Light's judicial
recovery request under the Brazilian Bankruptcy and Reorganization
Law. The judicial recovery in Brazil is the closest equivalent to
Chapter 11 of the US Bankruptcy Code.


UNIGEL PARTICIPACOES: S&P Lowers ICR to 'CCC+', On Credit Negative
------------------------------------------------------------------
S&P Global Ratings lowered its global scale issuer credit and
issue-level ratings on Unigel Participacoes S.A. to 'CCC+' from
'B+', and its national scale ratings to 'brBB-' from 'brAA-'. The
recovery rating on the company's senior notes and debentures
remains at '3'. S&P also placed the ratings on CreditWatch with
negative implications.

The CreditWatch negative listing reflects that S&P could downgrade
the company further if it sees a high likelihood of debt
restructuring.

S&P said, "We understand that the initial focus of the advisor
would be on the negotiation of a waiver with the company's
debenture holders and banks given the likely breach of a
payment-acceleration covenant in the next few quarters, which set
the limit at net debt to EBITDA 3.5x. While we previously assumed
that Unigel would be able to negotiate a waiver fee, the need to
hire a financial advisor indicates that the conversations with
debenture holders might be more complex than we anticipated. The
hiring of a financial advisor also indicates that the situation may
prompt a broader discussion of the company's capital structure,
given the weak prospects for cash flow generation and the
dependence on favorable external conditions."

Environmental, Social, And Governance

ESG credit indicators: E-3, S-2, G-2

S&P said, "Environmental factors are a moderately negative
consideration in our credit rating analysis of Unigel. As a
petrochemical and nitrogen fertilizer producer, it's among the most
intensive carbon dioxide emissions producers. Still, we view
relatively low substitution risks, given that Unigel sells
styrenics, acrylics, and fertilizers to various industries, such as
home appliances and electronics, automotive, pulp and paper,
textile, agriculture, and others. Also, all of Unigel's plants are
in Brazil and Mexico, the environmental regulations of which will
likely lag those in Europe or the U.S. The company has some
recycling and reverse logistics initiatives in place, focused on
reducing waste and energy consumption. The company's current
investments on a project to produce green hydrogen and green
ammonia could help in decarbonization for different end products,
but this is a still incipient market."




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C H I L E
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CHILE: Inflation Slows Past All Estimates With Interest Rate Cuts
-----------------------------------------------------------------
globalinsolvency.com, citing Bloomberg News, reports that Chile's
annual inflation slowed more than forecast in May on falling
transportation costs, stoking bets that the central bank will lower
its interest rate from an over two-decade high as soon as next
month.

Consumer prices increased 8.7% from a year prior, less than the
8.9% median forecast of analysts in a Bloomberg survey.

Monthly inflation stood at 0.1%, the national statistics institute
reported, according to globalinsolvency.com.

A closely-watched price gauge that excludes volatile items rose
9.9% in 12 months and 0.5% from April, the report notes.  Chile's
central bank targets inflation of 3%, the report relays.

Chile's central bank is seen inching toward the start of an easing
cycle as headline inflation falls back from last year's high above
14% and economic activity stagnates, the report discloses.

Policymakers led by Rosanna Costa have remained cautious, arguing
that core price readings have been slow to ease, the report says.

Still, traders surveyed by the monetary authority see rate cuts
starting in July, the report notes.

Short-term swap yields, an indication of future interest rates,
extended their recent declines after the report, with the one-year
tenor dropping 15.5 basis points, the report discloses.

The two-year tenor fell to the lowest level since January, the
report adds.




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D O M I N I C A N   R E P U B L I C
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DOMINICAN REPUBLIC: Chinese Firms Evade Taxes, Amchamdr Laments
---------------------------------------------------------------
Dominican Today reports that in view of the proliferation in the
country of Chinese-owned businesses that evade taxes, the American
Chamber of Commerce of the Dominican Republic (Amchamdr, for its
acronym in English) advocates, before regulatory entities, to speed
up the process of establishing clear rules and that are complied
with, for business stability.

Edwin de los Santos and William Malamud, president and executive
vice president of Amchamdr, respectively, spoke with Diario Libre
and expressed the concerns of the entity - which groups 1,600
companies - regarding the evolution of businesses that do not
comply with the laws and generates an environment of "unfair tax
competition," according to Dominican Today.

For Malamud, who has been in charge of the operations of one of the
largest organizations in the country for 25 years, there is still a
long way to go. "We are pro-free trade, and free trade implies
respected rules of the game," he said, the report notes.

So, he continued: "If the companies in question are legitimate
companies, that are selling products legally, it is healthy and
good for the economy," the report relays.

However, he stressed that there are situations that deviate from
the regulations, the report discloses.  "We have cases, such as
hardware stores, pharmacies, among others, that are in our
membership, and they speak of Chinese merchants who establish
businesses; they do not pay taxes and after a year they change the
RNC (National Taxpayer Registry) to avoid the issue of taxes. This
is worrisome and it is something that has happened in several
Central American countries," commented the executive vice president
of Amchamdr, the report relays.

De los Santos pointed out the importance of those businesses that
evade the tax law being able to be regulated by the auditing
entities. "What is pursued at the end of the day is that there are
clear rules and that transparency rules are established," he said,
the report relays.

He acknowledged that the country has a strengthened regulatory
framework, but did not fail to highlight the problems that persist
in local commerce and affect competitiveness, the report adds.

                   About Dominican Republic

The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district. Luis Rodolfo
Abinader Corona is the current president of the nation.

TCRLA reported in April 2019 that the Dominican To related that
Juan Del Rosario of the UASD Economic Faculty cited a current
economic slowdown for the Dominican Republic and cautioned that if
the trend continues, growth would reach only 4% by 2023. Mr. Del
Rosario said that if that happens, "we'll face difficulties in
meeting international commitments."

An ongoing concern in the Dominican Republic is the inability of
participants in the electricity sector to establish financial
viability for the system.

Fitch Ratings, in December 2021, revised the Outlook on Dominican
Republic's Long-Term Foreign-Currency Issuer Default Rating (IDR)
to Stable from Negative and affirmed the IDRs at 'BB-'.The
revision of the Outlook to Stable reflects the narrowing of
Dominican Republic's government deficit and financing needs since
Fitch's last review resulting in the stabilization of the
government debt/GDP ratio, as well as the investment-driven
economic momentum, reflected in the faster-than-expected economic
recovery in 2021 that Fitch expects to carry into above-potential
GDP growth during 2022 and 2023.

Standard & Poor's, also in December 2021, revised its outlook on
the Dominican Republic to stable from negative.S&P also
affirmed its 'BB-' long-term foreign and local currency sovereign
credit ratings and its 'B' short-term sovereign credit ratings. The
stable outlook reflects S&P's expectation of continued favorable
GDP growth and policy continuity over the next 12 to 18 months that
will likely stabilize the government's debt burden, despite lack of
progress with broader tax reforms, S&P said.A rapid economic
recovery from the downturn because of the pandemic should mitigate
external and fiscal risks.

Moody's affirmed the Dominican Republic's long-term issuer and
senior unsecured ratings at Ba3 and maintained the stable outlook
in March 2021.


DOMINICAN REPUBLIC: Monetary Expansion Measures Boost Liquidity
---------------------------------------------------------------
Dominican Today reports that based on the most recent data from the
Central Bank, the M1, a key indicator of basic monetary aggregates
representing money in circulation, has shown a slight contraction
as of May 23.  However, it is expected that in the coming days,
there will be a more positive movement in terms of liquidity,
according to Dominican Today.

This change is a result of a new monetary expansion measure
implemented by the Monetary Board, the report notes.  The measure
permits the financial intermediation sector, including banks and
other regulated entities, to utilize a portion of their reserve
resources to provide cheaper financing, the report relays.  This
move aims to stimulate specific sectors such as private
construction, the report discloses.

During its recent session on the 1st of this month, the Monetary
Board introduced a new facility to promote credit and boost the
economy, the report relays.  It involved releasing around RD$34,000
million from the legal reserve, equivalent to 2% of the liabilities
subject to the legal reserve, the report says.  These funds will be
channeled as loans to productive sectors and households through
multiple banks, savings and loan associations, and other financial
intermediaries, at an interest rate of up to 9% per year, valid for
4 years, the report notes.

Additionally, a new Quick Liquidity Facility (FLR) of RD$60,000
million has been established to provide additional liquidity to the
financial system and facilitate financing for the private sector,
the report relays.  This facility will have an interest rate of no
more than 9% per year for a two-year period, the report discloses.

The Central Bank's interest rate on financial intermediation
entities will be set at 3% per year, the report says.

The circulating medium is an indicator that measures the money in
circulation within an economy, the report notes. It includes M1
(money in the hands of the public, available for immediate use), M2
(extended money supply, including deposits and securities), and the
broader measure of money supply (M3), the report says.

While liquid money in the hands of the public experienced a
decrease of RD$5,049.8 million in May compared to April, the
expanded money supply witnessed a slight increase, the report
relays.  The Dominican economy had a total of RD$723,826.2 million
in circulation in May, as opposed to RD$728,612.7 million in April,
the report discloses.

Moreover, M2, representing the expanded money supply, reached
RD$703,982.7 million by May 31. This indicator covers additional
deposits in the national currency, securities issued by Other
Depository Companies (OSDs), and non-share securities issued by the
Central Bank, the report says.

By the end of May, the growth of this monetary indicator showed an
increase of RD$29,313.8 million compared to April, the report
notes.

M3 encompasses the expanded money supply, other deposit values
issued by OSDs in foreign currency, and other securities issued by
the Central Bank, the report discloses.

While monetary restrictions are often imperceptible, particularly
for individuals, households, and companies with debt capacity
utilizing credit cards or preferential facilities, lower-income or
informal groups commonly feel the impact as a lack of circulating
money, the report relays.  These circumstances were part of a
restrictive policy aimed at reducing demand in the economy to
control inflation, the report notes.  The increase in bank interest
rates was among the measures implemented to achieve this goal, 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.




=================
G U A T E M A L A
=================

GUATEMALA: Fitch Assigns 'BB' Rating to USD1 Billion Notes Due 2036
-------------------------------------------------------------------
Fitch Ratings has assigned a 'BB' rating to Guatemala's USD1
billion notes maturing June 13, 2036. The notes have a coupon of
6.6%.

Proceeds of the issuance will be used for general budgetary
purposes.

KEY RATING DRIVERS

The bond rating is in line with Guatemala's Long-Term Foreign
Currency IDR, which Fitch upgraded to 'BB' from 'BB-' on Feb. 16,
2023. The Rating Outlook is Stable.

ESG - Governance: Guatemala has an ESG Relevance Score (RS) of '5'
for both Political Stability and Rights and for the Rule of Law,
Institutional and Regulatory Quality and Control of Corruption.
Theses scores reflect the high weight that the World Bank
Governance Indicators (WBGI) have in Fitch's proprietary Sovereign
Rating Model. Guatemala has a low WBGI ranking at 26th percentile,
reflecting relatively weak rights for participation in the
political process, weak institutional capacity, uneven application
of the rule of law and a high level of corruption.

RATING SENSITIVITIES

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

The bond rating would be sensitive to any negative change to
Guatemala's Long-Term Foreign-Currency IDR.

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

The bond rating would be sensitive to any positive change to
Guatemala's Long-Term Foreign-Currency IDR.

ESG CONSIDERATIONS

Guatemala has an ESG Relevance Score of '5' for Political Stability
and Rights as World Bank Governance Indicators have the highest
weight in Fitch's SRM and are therefore highly relevant to the
rating and a key rating driver with a high weight. As Guatemala has
a percentile rank below 50 for the respective Governance Indicator,
this has a negative impact on the credit profile.

Guatemala has an ESG Relevance Score of '5' for Rule of Law,
Institutional & Regulatory Quality and Control of Corruption as
World Bank Governance Indicators have the highest weight in Fitch's
SRM and are therefore highly relevant to the rating and are a key
rating driver with a high weight. As Guatemala has a percentile
rank below 50 for the respective Governance Indicators, this has a
negative impact on the credit profile.

Guatemala has an ESG Relevance Score of '4' for Human Rights and
Political Freedoms as the Voice and Accountability pillar of the
World Bank Governance Indicators is relevant to the rating and a
rating driver. As Guatemala has a percentile rank below 50 for the
respective Governance Indicator, this has a negative impact on the
credit profile.

Guatemala has an ESG Relevance Score of '4[+]' for Creditor Rights
as willingness to service and repay debt is relevant to the rating
and is a rating driver for Guatemala, as for all sovereigns. As
Guatemala has track record of 20+ years without a restructuring of
public debt and captured in its SRM variable, this has a positive
impact on the credit profile.

Except for the matters discussed above, the highest level of ESG
credit relevance, if present, is a score of 3. This means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity(ies), either due to their nature or to the way in which
they are being managed by the entity(ies).

   Entity/Debt            Rating        
   -----------            ------        
Guatemala

   senior unsecured   LT BB  New Rating




=============
J A M A I C A
=============

JAMAICA: Construction Industry Declines by 4% in Q1
---------------------------------------------------
RJR News reports that Jamaica's construction industry is estimated
to have declined by four per cent in the first quarter of this
year.

Dr. Wayne Henry, Director General of the Planning Institute of
Jamaica (PIOJ), said this was driven by a dip in the building
construction and other construction sub industries, according to
RJR News.

For the building construction sub industry, performance was
constrained by a 32.6% contraction in housing starts by the
National Housing Trust and a 9.1% contraction in the real sales of
construction input, the report notes.

"The decrease in the other construction component was due to lower
capital expenditure on civil engineering activities reflecting the
net effect of a 67.2% contraction in disbursements by the National
Works Agency to $2.2 billion; disbursement facilitated works on the
Yallahs to Harbour View leg of the Southern Coastal Highway
Improvement Project; and a 36.9% increase in disbursements by the
Jamaica Public Service Company to $1.2 billion," Dr. Henry added.

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.



                           *********


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
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Information contained herein is obtained from sources believed to
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of the same firm for the term of the initial subscription or
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