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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

          Friday, June 16, 2023, Vol. 24, No. 121

                           Headlines



A R G E N T I N A

ARGENTINA: Inflation Seen Speeding Up in May


B R A Z I L

BRAZIL: S&P Affirms 'BB-/B' ICRs & Alters Outlook to Positive


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Allocates 0.13% of GDP to Env'l. Spending
DOMINICAN REPUBLIC: BCRD Transactions Exceeding US$30BB in Imports


E L   S A L V A D O R

GRUPO UNICOMER: S&P Lowers ICR to 'B+', Outlook Negative


P E R U

PERU: Central Bank Flags Slower Conversion to Inflation Target


P U E R T O   R I C O

ANOINTED SECURITY: Taps Carmen Mercado Rosa as Administrator
SAN JORGE CHILDREN'S: Has Deal on Cash Collateral Access

                           - - - - -


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

ARGENTINA: Inflation Seen Speeding Up in May
--------------------------------------------
globalinsolvency.com, citing analysts polled by Reuters, reports
that Argentina's monthly inflation rate likely sped up to 8.8% in
May as prices in the South America country continue to soar despite
a cooling trend in other countries around the region.

Argentina is battling soaring inflation likely to end the year near
150%, sapping people's spending power, pummeling the peso currency
and pulling the rug out from under the ruling Peronist coalition
ahead of October elections, according to globalinsolvency.com.

That's one of the highest rates in the world and the fastest annual
reading for the major grains exporter since 1991, the report notes.


The expected monthly rise was the median forecast of 19 analysts,
with estimates ranging between 8% and 9.4%, the report relays.

It would be faster than the 8.4% rise in April.

Analysts said it would be hard for Argentina's government to bring
prices down, even as inflation has started to ease in places like
Mexico, Chile and Brazil, the report notes.

"It will be hard to put the brakes on inflation without any policy
that attacks the underlying problem, which is monetary," said
Natalia Motyl, economist and director of the consultancy NM, adding
monthly inflation could hit double digits by June, 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.  




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B R A Z I L
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BRAZIL: S&P Affirms 'BB-/B' ICRs & Alters Outlook to Positive
-------------------------------------------------------------
S&P Global Ratings, on June 14, 2023, revised the outlook on its
long-term global scale ratings on Brazil to positive from stable.
S&P affirmed its 'BB-/B' long- and short-term foreign and local
currency sovereign credit ratings on Brazil. S&P also affirmed its
'brAAA' national scale rating, and the outlook remains stable. The
transfer and convertibility assessment remains 'BB+'.

Outlook

The positive outlook reflects signs of greater certainty about
stable fiscal and monetary policy that could benefit Brazil's
still-low GDP growth prospects. Continued GDP growth plus the
emerging framework for fiscal policy could result in a smaller
government debt burden than expected, which could support monetary
flexibility and sustain the country's net external position. Such
developments would reinforce our view of the resilience of Brazil's
institutional framework, with stable policymaking based on
extensive checks and balances across the executive, legislative,
and judicial branches of government.

Downside scenario

S&P could revise its outlook to stable within the next two years if
an inadequate policy framework or poor implementation results in
limited economic growth, leading to further fiscal deterioration
and a higher-than-expected debt burden. A deterioration in policy
signaling could also affect foreign direct investment (FDI) inflows
and, thereby, weaken Brazil's strong net external position.

Upside scenario

S&P could raise its ratings over the next two years if Brazilian
governing institutions are able to implement pragmatic economic
policy that contains vulnerabilities in the country's public
finances and sets the stage for better GDP growth. Key to this
would be passage of additional reforms--among them a tax reform
currently under debate.

Rationale

S&P's ratings on Brazil indicate its complex institutional
framework that anchors macroeconomic stability but also translates
into very gradual policy implementation. In its opinion, the lack
of capacity to swiftly address economic shortcomings prevents
Brazil from growing at a faster pace more consistent with other
emerging market sovereigns at a similar level of development. It
also limits Brazil's capacity to address a rigid budgetary
structure, which contributes to large fiscal deficits and a high
burden of debt.

That said, measures implemented over recent years have helped
contain risks to macroeconomic stability posed by low growth and
high government debt. The trajectory of GDP growth and public
finances has been better than previously expected, helping to
contain the risks that otherwise could have undermined monetary
policy and Brazil's net external position. In S&P's opinion, the
risk of such reforms being reversed or poorly implemented has
fallen because of more pragmatic economic policymaking across the
branches of government.

Brazil's strong external position, a flexible exchange rate, and a
monetary policy regime based on an inflation-targeting framework
conducted by an autonomous central bank support the ratings.
Moreover, deep domestic capital and debt markets mitigate the
sovereign's funding risk and allow the government to maintain a
favorable composition of debt, mostly denominated in local
currency.

Institutional and economic profile: A complex institutional
arrangement impedes fast policy implementation

-- The need to garner widespread support across diverse political
leadership to achieve policy changes will likely support continuity
in economic policy and a gradual pace of reforms.

-- In S&P's opinion, there is more visibility on policy direction
following uncertainty during the electoral period and first months
of the current presidential term.

-- Lower inflation and easing monetary policy will likely support
growth prospects.

-- Brazil is a democracy with extensive checks and balances,
including an active judiciary. It has political stability and
continuity in key economic policies.

The new center-left administration is likely to work pragmatically
with a divided, but largely centrist, Congress to implement its
plans. The Brazilian political system requires extensive consensus
to pass legislation. Due to a very detailed constitution, many
changes in economic policy require constitutional reforms,
resulting in lengthy procedures. This, combined with a fragmented
Congress, results in very slow reform (such as tax and
administrative reforms) that could address economic weaknesses in a
timelier manner.

That said, since 2016, Brazil has passed several reforms to
modernize its economy and manage fiscal deficits and related risks.
In S&P's view, these reforms partially explain why Brazil's GDP
growth, though poor in comparison with its peers, was better than
expected over the last couple of years. S&P believes that as a
result of the balance of power between the administration,
Congress, and independent public institutions, a reversal of these
reforms is unlikely. These reforms include the independence of the
central bank, changes in the pension system, an overhaul of the
labor code, stronger governance of government-related entities, and
the existence of a fiscal rule.

S&P said, "Moreover, we expect policy pragmatism from the
government will translate into stable and predictable framework for
monetary policy, efforts to contain fiscal slippage, and effective
governance of government-related entities, many of them with key
roles in the Brazilian economy.

"We expect a new fiscal rule that replaces the current spending
ceiling will be approved in the near term. In our view, the new
rule will be more permissive than the soon-to-expire spending
ceiling but will maintain many of the triggers that enabled fiscal
improvement over the last two years." Considering that Brazil
already has high fiscal revenues, the viability of the fiscal rule
will depend on the administration and Congress addressing budgetary
rigidities, including spending indexation and burdensome public
employee remuneration across the government and in public-sector
institutions.

The government is working on a bill to reform the country's
complicated consumption tax framework. Simplifying the tax system
could provide a strong signal for policy direction in the short
term and benefit economic growth prospects over the medium to long
term. However, the debate in Congress is at a very early stage and
will still require time and significant political capital.

Economic growth has outperformed expectations since 2020. In 2022,
the economy grew 3% owing to favorable terms of trade and resilient
consumption in the aftermath of a strong employment recovery. Large
liquidity injections by the central bank and favorable financial
conditions in 2020-2021 also supported the recovery.

S&P recently revised its growth forecast to 1.7% for 2023 from 0.7%
because of very strong agricultural performance and its spillover
effects on the rest of the economy. These effects more than
compensate for a very restrictive monetary stance that has slowed
consumption and contracted investment thus far in 2023.

With inflation at significantly lower levels than 12 months ago,
the monetary stance is likely to ease, leading economic growth
toward 2% by 2026. S&P estimates GDP per capita will reach US$9,700
in 2023 and trend toward US$10,800 by 2026. The average rate of GDP
growth is picking up but is still lower than that of peers with the
same level of economic development.

Flexibility and performance profile: Strong external position and
monetary policy credibility mitigate still-weak fiscal performance

-- S&P expects fiscal deficits and the debt burden to remain high
in 2023-2026, although better than prior expectations.

-- Greater export volumes continue to strengthen Brazil's external
position.

-- Restrictive monetary policy has helped to curb inflation.

The approval of the proposed new fiscal rule will help to limit
fiscal deterioration. But the fiscal consolidation since 2021 was
interrupted by the current administration's more expansive fiscal
policy. A constitutional amendment passed in December 2022 allowed
the Lula government to undertake higher spending in 2023 to finance
and expand the president's flagship program "Bolsa Familia" and
other electoral promises. The reintroduction of federal taxes on
gasoline and efforts to tackle fiscal spending and subsidies should
mitigate further fiscal slippage.

S&P said, "Still, we believe that given Brazil's high tax revenue,
relying mostly on revenue measures will result in only modest
fiscal improvement. High fiscal deficits and budget rigidities will
continue to limit long-term growth prospects.

"We expect interest rates to peak in 2023 owing to expectations of
monetary easing and lower interest premiums. That said, central
government debt is being rolled over at high interest rates, and
the debt stock is growing, which together will result in a rising
interest burden.

"As a result, we expect Brazil's general government to post fiscal
deficits at an average of 5.5% of GDP during 2023-2026, compared
with 3.8% in 2022. Capturing the effect of inflation-link
instruments, we expect Brazil's change in net general government
debt to average just above 6% of GDP, on average, over 2023-2026.
We expect Brazil's net general government debt (net of assets held
in the government's single treasury account) to increase toward 64%
of GDP by 2026 from 52.3% of GDP in 2022. The interest burden is
expected to grow compared with 2022 but average less than 15% of
general government revenues for the same period. This forecast has
improved compared with the fiscal deterioration we assumed in our
previous base case."

The composition of Brazil's debt mitigates the risks embedded in
the high debt burden despite high interest costs. The debt is
mostly denominated in local currency, and the central government's
strong liquidity position mitigates rollover risk. Nonresidents
hold only around 10% of local currency central government debt,
limiting the risk of potential adverse external shocks on debt
rollover. The share of domestic lenders, including the banking
sector, is high. On the other hand, the banking sector's already
high exposure to the government (which accounts for over 20% of its
assets) will constrain the availability of credit to other sectors
of the economy.

S&P said, "Contingent liabilities from the financial system are
low, considering the size of the financial sector, at around 135%
of GDP, and our Banking Industry Country Risk Assessment is '6'.
(BICRA scores are on a scale from '1' to '10', with group '1'
representing the lowest-risk banking systems and group '10' the
highest-risk ones.) Debt issued by public-sector companies is less
than 10% of GDP and poses limited risk to the government. That
said, potential legal claims against the government amount to over
20% of GDP, which we consider a significant contingent liability.
Yearly payments on legal claims are capped by law until 2027, but
significant shares of legal claims are likely to materialize as
debt over the long term."

Brazil is benefiting from rising commodity output over recent
years, mostly from grains and oil, which are likely to offset lower
commodity prices. Current account receipts, as a result, increased
to 22% of GDP in 2022 from 11.5% in 2010, and they're likely to
remain at a similar level for the foreseeable future. The current
account deficit should remain below 2% of GDP, fully financed by
inflows of FDI. S&P expects the domestic market to provide most of
the government's financing needs, which should help shift Brazil
back to a narrow net creditor position by 2024.

S&P classifies the Brazilian real as an actively traded currency,
based on the Bank for International Settlements' 2022 Triennial
Survey. The survey showed that the real contributes at least 1% of
global foreign exchange market turnover.

A reduction in commodity prices, easing pressures on supply chains,
more favorable weather conditions benefiting food and energy
prices, tax rate reductions, and a restrictive monetary policy have
significantly lowered inflation. After peaking at 12% in April
2022, inflation has dopped consistently, reaching 3.9% in May 2023.
S&P expects that the independence of the central bank to pursue its
inflation target will continue despite some political pressures.

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

  BRAZIL

  Sovereign Credit Rating

  Brazil National Scale              brAAA/Stable/--

  Transfer & Convertibility Assessment   

  Local Currency                         BB+

  BRAZIL

  Senior Unsecured                       BB-

  Senior Unsecured                       brAAA


  RATINGS AFFIRMED; CREDITWATCH/OUTLOOK ACTION

                                   TO             FROM
  BRAZIL

  Sovereign Credit Rating  BB-/Positive/B     BB-/Stable/B




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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: Allocates 0.13% of GDP to Env'l. Spending
-------------------------------------------------------------
Dominican Today reports that governments worldwide must take action
and increase investment in initiatives and programs that prioritize
the care of our planet, in line with the Sustainable Development
Goals (SDGs). A report titled "State of Finance for Nature"
highlights that a global investment of $8.1 trillion is required by
2050 to address the planetary crisis.

The Dominican Republic has recognized the importance of
environmental protection, according to Dominican Today.  In 2021,
the country allocated RD$6.4 billion to environmental spending,
which accounts for 0.13% of the gross domestic product (GDP), the
report notes.  While this amount may seem minimal, it is crucial to
consider that only RD$468 million was allocated in 2001, indicating
significant growth in environmental funding over the past 20 years,
the report relays.

According to data from the National Statistics Office (ONE),
environmental spending increased to RD$5 billion in 2020, RD$4.5
billion in 2019, RD$4 billion in 2018, and RD$3 billion in 2017,
the report discloses.  The upward trend in funding could signify
that environmental challenges are becoming more acute or that the
government is implementing practices to align with the 2030 Agenda,
the report notes.  This underscores one of the objectives of World
Environment Day, which has been celebrated since June 5, 1973, to
raise awareness among the world's population of the importance of
ecosystem preservation, the report says.

However, it is worth noting that only between 20% and 45% of the
global population considers environmental protection a relevant
issue, the report discloses.  Statista data reveals that 45% of
Brazilians express concern for the environment, followed by Italy
and Mexico with 44% and 41%, respectively, the report relays.  In
contrast, smaller percentages include 36% of Indonesians, 28% of
Nigerians, 27% of Americans, and 21% of Saudi Arabians, the report
notes.

Environmental pollution is one of the most significant challenges
facing humanity, emphasizing the need for corrective action to
ensure a healthy planet for future generations, the report relays.

The United Nations has designated the theme for 2023 as "No Plastic
Pollution," emphasizing that 400 million tons of plastic are
produced globally each year, with between 19 and 23 million tons
ending up in rivers, lakes, and oceans, the report notes.

Filmmaker Jose Maria Cabral's documentary "Isla de plastico"
(Plastic Island) serves as an example of raising awareness. The
film explores how plastic waste from landfills makes its way to
rivers, lakes, and ultimately the sea.  The documentary has
garnered over 1.6 million views, 13,000 likes, and 1,338 comments
on YouTube, the report discloses.

Transitioning to a circular economy could reduce plastic pollution
in the oceans by more than 80% by 2040, saving $70 billion for the
global economy and creating 700,000 jobs, the report notes.

Solid waste presents income opportunities for the Dominican
Republic, which views plastic as a sustainable business that
generates employment and contributes to the circular economy, the
report relays.  The "Plastic manufacturing" sector achieved
consolidated sales of RD$45 billion in 2020, marking a 9.7%
increase compared to 2019 (RD$41 billion) and a difference of RD$8
billion compared to 2018 (RD$37 billion), the report says.

According to the study "Economic Profile of the Plastics Industry
in the Dominican Republic," revenues in the industry increased by
6.3% from RD$30 billion to RD$32 billion between 2015 and 2017,
representing an absolute increase of RD$2 billion, the report
discloses.

As of December 2020, there were 190 registered companies engaged in
plastic product manufacturing, contributing to the creation of
11,556 jobs, as stated in a report prepared by the Ministry of
Industry, Commerce, and MSMEs (MICM), 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: BCRD Transactions Exceeding US$30BB in Imports
------------------------------------------------------------------
Dominican Today reports that according to data from the Central
Bank of the Dominican Republic (BCRD), in 2022, the country
generated total transactions exceeding US$30 billion in imports and
US$13 billion in exports.  The shipping industry played a
significant role in these figures, with 93.71% of imports and
44.50% of exports being transported via sea routes, according to
Dominican Today.

The Dominican Republic has approximately 23 ports, of which 16 are
commercial, eight serve as tourist terminals or anchorages, and
four are marinas or sports docks, according to the Dominican Port
Authority (Apordom), the report notes.  Out of the numerous ports,
five accounted for 67% of the total vessel movements in 2022: Rio
Haina, Puerto Caucedo (DP World), Santo Domingo, and Puerto Plata,
the report relays.

Each port has its specialization based on the type of products it
receives, the report discloses.  For example, the Rio Haina port,
particularly Haina Occidental and its Itabo terminal, is
specialized in unloading mineral coal, the report says.  The port
has the capacity to receive 15 vessels and handle various types of
cargo, including general cargo, containers, roll-on/roll-off,
liquids, and dry bulk materials, the report relays.

The DP World's Caucedo Multimodal port, which started operations in
2003, is used for importing containerized and loose cargo ships,
the report notes.  It has four berths and is involved in the import
of bulk fertilizers and wheat, as well as the export of cement,
clinker, sugar, molasses, and bagged fertilizers, the report
relays.

Other ports, such as AES - Andre's terminal in Boca Chica and Punta
Cana Macao, EGE Haina, Sistemas de Boyas (Coyen Trix), and Coastal
Dominicana, have specific capacities for unloading fuel, liquefied
natural gas (LNG), liquefied petroleum gas (LPG), and other
petroleum products, the report discloses.

The ports play a vital role in facilitating international trade and
supporting the import and export activities of the Dominican
Republic, contributing to the country’s economic growth and
development, 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 L   S A L V A D O R
=====================

GRUPO UNICOMER: S&P Lowers ICR to 'B+', Outlook Negative
--------------------------------------------------------
S&P Global Ratings, on June 14, 2023, lowered its issuer and
issue-level credit ratings on El Salvador-based retailer Grupo
Unicomer Corp. (Unicomer) to 'B+' from 'BB-'.

The negative outlook reflects a potential downgrade in the next
three months if the company doesn't successfully refinance its 2024
notes, which would further weaken its liquidity.

Unicomer's $350 million notes due 2024 now mature in about 10
months, which pressures the company to quickly refinance this debt
under significantly tighter financing conditions. S&P considers the
refinancing as key for future rating actions. Moreover, it expects
Unicomer to close the refinancing in the next few months because
it's currently working on the transaction. However, if the
refinancing is delayed, it would pressure the 'B+' rating due to
increased debt maturity risks.

S&P said, "In addition, we anticipate that the company's debt will
increase in the next 12 months to fund the acquisition of CSF and
due to working capital requirements. We estimate this higher debt
and expected higher financing costs would raise interest expenses
to $90 million to $100 million, weighing on Unicomer's
profitability and cash flow generation.

"We note that the company has significant account receivables from
its captive finance operations -- close to $550 million due in the
short term -- that could provide liquidity inflows if needed.
Nonetheless, we expect Unicomer to continue growing its captive
finance operations, resulting in slightly negative working capital.
Our forecast funds from operations (FFO; EBITDA minus cash interest
and tax payments) represent 25% of adjusted net debt, and EBITDA
interest coverage is 2.7x for the next two years, which are below
2017-2020 averages of 43% and 3.2x, respectively.

"Our revised base-case scenario assumes that Unicomer won't quickly
deleverage in the next 12 months because of higher debt levels and
challenging economic conditions that we expect to soften
consumption in Unicomer's key markets. We forecast EBITDA margins
to recover for the next 12 months because the company reported
one-off expenses related to IT costs and bloated inventory
management in 2022. However, we estimate EBITDA growth won't be
enough to materially deleverage the company in the next 12 months,
given our expectation of new debt within $70 million to $100
million. We estimate Unicomer's adjusted net debt to EBITDA to be
near 3.0x in the next 12 months, while reported net debt to EBITDA
(including captive finance operations) will be near 4.5x. Moreover,
we expect its free operating cash flow (FOCF), after capital
expenditures (capex), will be below 10%, consistently."

For the past 12-18 months, the company's adjusted leverage has
increased due to high working capital needs. After Unicomer's
operations recovered from the impact of the COVID-19 pandemic, its
growth strategy aimed to continue taking advantage of pent-up
demand, quickly resizing its credit portfolio and increasing
inventory purchases, which raised financing needs. Moreover,
top-line growth slowed in the last two reported quarters (as of
September and December 2022), reflecting softening consumption,
which led to a bloated inventory and more leveraged balance sheet.
The company pursued an aggressive discount campaign, which
alleviated inventory levels; nonetheless, margins took a hit. S&P
estimates adjusted EBITDA margins of 7.5% for the fiscal year ended
March 31, 2023 (yet to be reported), and near 11% when
consolidating consumer finance (captive finance) operations.

S&P said, "Although the transaction is still subject to regulatory
approval, we assume the company will close the CSF's acquisition in
the next six months or so, and will manage this business separately
from its current operations. In our view, the transaction will
likely result in higher debt at Unicomer and its parent, Milady
Associates Ltd. (Milady; not rated), though final terms and
conditions haven't been disclosed. Although we don't expect
Unicomer or Milady's credit metrics to materially worsen given the
estimated dividend distributions and the improving operation of
CSF, greater debt at either level could pressure Unicomer's credit
quality, depending on its magnitude."

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




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P E R U
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PERU: Central Bank Flags Slower Conversion to Inflation Target
--------------------------------------------------------------
globalinsolvency.com, citing Reuters, reports that Peru's central
bank expects inflation to converge to its target in 2024, not the
end of this year as previously estimated, the bank's manager for
economic studies Adrian Armas said.

The monetary authority's inflation target is between 1% and 3%. At
a press conference, Armas attributed the revised forecast to
inflationary pressures on food prices, according to
globalinsolvency.com.

Peru's annual inflation rate slowed to 7.89% in May. But food
prices are still high, Armas said, adding they are expected to
decrease in the coming months, but not enough for the rate of
rising consumer prices to cool to the bank's target before this
year ends, the report notes.

The central bank kept its benchmark interest rate unchanged at
7.75% for the fifth consecutive month as it vowed to keep
monitoring inflation closely, the report adds.




=====================
P U E R T O   R I C O
=====================

ANOINTED SECURITY: Taps Carmen Mercado Rosa as Administrator
------------------------------------------------------------
Anointed Security Services Inc. seeks approval from the U.S.
Bankruptcy Court for the District of Puerto Rico to employ Carmen
Mercado Rosa, an individual based in Puerto Rico, as its office
administrator.

Ms. Mercado Rosa will render these services:

  (a) actively manage the Debtor's office, payroll and the
      operation of its business, and supervise the management of
      its property;

  (b) prepare all administrative matters necessary for a
      security firm; and

  (c) perform other administrative services.

Ms. Mercado Rosa will be compensated at ordinary rates of $1,000
per month, with payment of all obligatory tax and payroll
deductions.

Ms. Mercado Rosa disclosed in a court filing that she is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.

                 About Anointed Security Services

Anointed Security Services, Inc. has been in the business of
providing security services to its clients since 2011.

Anointed Security Services sought protection for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 23-00365)
on Feb. 10, 2023, with $100,001 to $500,000 in both assets and
liabilities. Judge Mildred Caban Flores oversees the case.

Hector J. Figueroa Vincenty, Esq., at El Bufete Del Pueblo, PSC
represents the Debtor as counsel.


SAN JORGE CHILDREN'S: Has Deal on Cash Collateral Access
--------------------------------------------------------
San Jorge Children's Hospital Inc. and Oriental Bank advised the
U.S. Bankruptcy Court for the District of Puerto Rico that they
have reached an agreement regarding the Debtor's use of cash
collateral and now desire to memorialize the terms of this
agreement into an agreed order.

The parties agree the Debtor may continue using cash collateral up
to August 31, 2023.

All terms, requirements, acknowledgments, assurances, and adequate
protection remedies already granted to the secured creditor and
approved by the Court regarding its rights and claim will remain
unaltered as specifically detailed in the Stipulation for the
interim use of cash collateral dated November 1, 2022, and the Cash
Collateral Order dated November 11, 2022.

A copy of the motion is available at https://urlcurt.com/u?l=Bpq0jz
from PacerMonitor.com.

                About San Jorge Children's Hospital

San Jorge Children's Hospital, Inc. operates a hospital
specializing in pediatrics in San Juan, P.R.

San Jorge Children's Hospital filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case
No. 22-02630) on Sept. 1, 2022, with between $10 million and $50
million in both assets and liabilities. Edward P. Smith, chief
operating officer, signed the petition.  

Judge Maria De Los Angeles Gonzalez presides over the case.

The Debtor tapped Wigberto Lugo Mender, Esq., at Lugo Mender Group,
LLC as bankruptcy counsel and Galindez, LLC as external auditor.

Cardona Jimenez Law Offices, P.S.C. represents the official
committee of unsecured creditors appointed in the Debtor's case.



                           *********


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.

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

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