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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

          Thursday, July 6, 2023, Vol. 24, No. 135

                           Headlines



A R G E N T I N A

ARGENTINA: To Get $800,000 Credit Line for Hydroelectric Complex


B R A Z I L

AMAGGI: Fitch Affirms 'BB' LongTerm IDRs, Outlook Stable
AZUL SA: 86% of Bondholders Have Agreed with Exchange Offer
BANCO BTG PACTUAL: Fitch Alters BB- IDRs to Positive
BRAZIL: Formal Job Creation Drops 44% in May 2023
BRAZIL: Postal Service Faces Challenges in Transforming the Sector



D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Abinader Outlies Key Focus on Public Policies


J A M A I C A

DIGICEL GROUP: Davis Polk Advises Business on Restructuring
DIGICEL GROUP: Reaches Debt Deal With Bondholders
JAMAICA: To Complete 3 More Steps for Removal From FATF Grey List


M E X I C O

BBVA MEXICO: Fitch Rates USD1-BB Tier 2 Sub. Preferred Notes 'BB'


P E R U

RUTAS DE LIMA: S&P Retains 'B-' ICR on CreditWatch Negative

                           - - - - -


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A R G E N T I N A
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ARGENTINA: To Get $800,000 Credit Line for Hydroelectric Complex
----------------------------------------------------------------
The Inter-American Development Bank (IDB) has approved a
Conditional Credit Line for Investment Projects (CCLIP) of up to
$800 million to support the implementation of the Strategic
Investment Plan for the modernization of the Salto Grande
Binational Hydroelectric Complex (CHSG, for its Spanish acronym) in
Argentina and Uruguay. The objective is to contribute to the
decarbonization of the interconnected electricity system and foster
regional sustainable development, which are crucial for both
countries efforts to advance their climate commitments.

The First Individual Loan Operation under this CCLIP is for up to
$75 million for each country (up to $150 million total). This
operation will contribute to ensuring the reliability and
availability of the CHSG, extending its useful life and its
environmental and social sustainability. The project will benefit
more than 17 million users of the interconnected electricity
systems of Argentina and Uruguay. Additionally, residents of Salto
and Concordia, the cities surrounding the CHSG, will benefit from
coastal protection works in the public spaces to be intervened.

The CHSG was the first binational project in the region, initiating
the process of electrical systems integration in the Southern Cone,
which in turn paved the way for further binational projects down
the road. Argentina and Uruguay are members of the Energy
Integration System of the Southern Cone Countries, whose goal is to
promote regional power integration using CHSG as a cornerstone.

The loan will help upgrade CHSG's infrastructure and finance its
institutional strengthening, with a focus on digitalization,
inclusion and regional development. In terms of institutional
strengthening, it will improve digital corporate management by
incorporating cybersecurity measures and conducting technical
studies to support the execution of the operation. It will also
prepare a next stage of modernization and training for CHSG staff
on technical issues, management, promotion of gender policies,
inclusion of persons with disabilities, and prevention of sexual
and workplace violence and harassment. In addition, the loan will
promote local productive development and job creation through the
strengthening of regional suppliers' capacities.

The IDB has been supporting CHSG's modernization since 2019,
through the Modernization of the Salto Grande Binational
Hydroelectric Complex operation (RG-L1124) currently under
execution, for a total of $80 million (US$40 million per country).

The Conditional Credit Line for investment loans in the energy
sector will be available for 15 years (for an amount of up to $800
million), through at least three individual lending operations. The
first loan approved under this credit facility will be for up to
$150 million, with a repayment term of 23.5 years, a disbursement
period of 6 years, a grace period of 7 years and an interest rate
based on SOFR.

                          About Argentina

Argentina is a country located mostly in the southern half of South
America. Its capital is Buenos Aires. Alberto Angel Fernandez is
the current president of Argentina after winning the October 2019
general election. He succeeded Mauricio Macri in the position.

Argentina has the third largest economy in Latin America.  The
country's economy is an upper middle-income economy for fiscal year
2019, according to the World Bank. Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.

Last March 25, 2022, Argentina finalized agreement with the IMF for
a new USD44 billion Extended Funding Facility (EFF) intended to
fund USD40 billion in looming repayments of the defunct Stand-By
Arrangement (SBA), with an extra USD4 billion in up-front net
financing. This has averted the risk of a default to the IMF
and is facilitating a parallel rescheduling of Paris Club debt.

S&P Global Ratings, on March 29, 2023, lowered its long-term
foreign currency sovereign credit rating on Argentina to 'CCC-'
from 'CCC+'.  S&P also affirmed its 'C' short-term foreign currency
sovereign credit rating and its 'CCC-/C' local currency ratings on
Argentina.  The outlook on the long-term ratings is negative.  S&P
also lowered the transfer and convertibility assessment to 'CCC-'
from 'CCC+'.  The negative outlook on the long-term ratings
reflects risks surrounding pronounced economic imbalances and
policy uncertainties before and after the 2023 national elections.
Divisions across the political spectrum constrain the sovereign's
ability to implement timely changes in economic policy. Global
capital markets are closed to Argentina. In the local market, swaps
are being deployed to manage large maturities before placing debt
through traditional auctions.  The central bank continues to play a
key role as a backstop for local debt management in the secondary
market. The ongoing severe drought has exacerbated pressures in the
already disrupted foreign exchange (FX) market.

Fitch Ratings, on the other hand, downgraded Argentina's Long-Term
Foreign Currency Issuer Default Rating (IDR) to 'C' from 'CCC-',
and has affirmed the Long-Term Local Currency IDR at 'CCC-' on
March 24, 2023. Fitch's downgrade of Argentina's rating to 'C' from
'CCC-' follows an executive decree that forces domestic
public-sector entities into operations involving their holdings of
sovereign debt securities, which would involve unilateral exchanges
and forced currency conversion that constitute default events under
Fitch's criteria. The 'C' rating reflects Fitch's view that default
is thus imminent. Fitch said the rating would be downgraded to
'Restricted Default' (RD) upon execution of the exchanges.

Moody's Investors Service, in September 2022, affirmed Argentina's
Ca foreign-currency and local-currency long-term issuer and senior
unsecured ratings.  The outlook remains stable.  The decision to
affirm the Ca ratings balances Argentina's limited market access,
weak governance, and history of recurrent debt restructurings with
recent efforts to marshal fiscal and monetary measures to start
addressing underlying macroeconomic imbalances in the context of
the IMF program that was approved in 2022, according to Moody's.

DBRS, Inc. confirmed Argentina's Long-Term Foreign Currency Issuer
Rating at CCC and downgraded its Long-Term Local Currency Issuer
Rating to CCC from CCC (high) on March 3, 2023.  




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B R A Z I L
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AMAGGI: Fitch Affirms 'BB' LongTerm IDRs, Outlook Stable
--------------------------------------------------------
Fitch Ratings has affirmed Andre Maggi Participacoes S.A.'s
(Amaggi) Long-Term Foreign and Local Currency Issuer Default
Ratings (IDRs) at 'BB' and National Long-Term rating at 'AA+(bra)'.
Fitch has also affirmed Amaggi Luxembourg International S.a r.l.'s
senior debt at 'BB'. The Rating Outlook is Stable.

KEY RATING DRIVERS

Slight increase in RMI-Adjusted Net Leverage Ratio: Amaggi's RMI
net-adjusted leverage is projected to increase to about 3.5x in
2023 (3.2x in 2022) due to lower profitability of the commodities
division after a strong 2022 performance, while the agro division
is expected to perform well thanks to better yields for cotton. For
credit purposes, Fitch considers RMI-adjusted leverage when
evaluating agricultural processors and calculates RMI-adjusted
leverage by first subtracting the structural inventory required to
operate a downstream processing facility on a steady state basis.

This inventory is generally not readily available for liquidation
purposes with a going-concern entity. A 10% discount is taken for
the remaining merchandisable inventory (25% of cotton) to account
for potential basis risk loss. Fitch factors in an RMI of USD408
million at YE 2023 (USD498 million in 2022).

Lower Capex and Positive FCF: Fitch expects Amaggi to generate
positive FCF thanks to lower capex and improved working capital.
Capex is due to decrease toward USD150 million in 2023 compared to
USD308 million (excluding other investments) in 2022 as Amaggi
doesn't aim for significant investments or expansion capex. Working
capital is expected to be a resource thanks to lower margin call
and soybean prices. Net derivatives exposure (foreign exchange,
commodities, interest rates) was approximately USD96 million in
2022 (-USD18 million at YE 2021).

Business Diversification: The group's business diversification
provides stability in cash flow generation and mitigates volatility
inherent to the agribusiness industry. Amaggi has a
regionally-integrated agribusiness footprint in the production,
origination, and commercialization of grains from Mato Grosso state
in Brazil, and approximately 81% of revenues are from exports. The
company also owns 314,000 hectares of agricultural land, of which
185,000 hectares are farmable, and leases another 53 thousand
hectares of farmable land from third parties, for a total of 238
thousand hectares of land available for production. The company is
self-sufficient in terms of energy and benefits from its logistic
segment, which includes the management of its hydro transportation
system (Hermasa) and access to other navigation routes, warehouses,
and terminals through joint ventures or companies where the group
has a minority interest.

Origination and Counterparty Risks: Amaggi's capacity to process
large volumes thanks to its logistics, enables the group to compete
with large multinational grain companies (Archer Daniels Midland
Company [ADM], LDC, Cargill Incorporated [Cargill], Bunge Limited
[Bunge]) in the acquisition of grains in Mato Grosso, which is an
abundant region for soy and corn. Advances in financing to farmers
are provided under strict criteria with the use of CPRs (rural
credit notes) for collateral. No single producer represents more
than 1.4% of Amaggi's annual origination.

No Country Ceiling Cap: The Foreign Currency IDR is not capped by
Brazil's 'BB' Country Ceiling rating, due to the company's exports
in hard currency and cash abroad that cover Foreign Currency
interest expenses. A multi-notch downgrade of Brazil's Country
Ceiling could lead to a downgrade of the company's ratings.

DERIVATION SUMMARY

Fitch views Amaggi's business risk profile as weak relative to
peers, Bunge (BBB/RW Positive), Cargill (A/Stable), and ADM
(A/Stable), due to its smaller operational scale, lower
diversification, and substantial concentration in one region. Fitch
also considers the risks related to the agribusiness industry in
Brazil, which includes the exposure to great supply and demand
imbalances, weather patterns, trade-related wars, government
policies, agricultural crop breaks, deforestation and alternative
usage of the land.

Although Amaggi's consolidated profitability is satisfactory, it
remains exposed to strong competition within the industry, with the
presence of important international groups operating with strong
credit profiles.

The company's operations are concentrated in Mato Grosso, Brazil,
which would subject the company to the Brazil's 'BB' Country
Ceiling. As most revenues are derived from export markets, Fitch
believes the rating could be maintained if the Brazilian Country
Ceiling were downgraded by no more than one notch. When combined
with higher average leverage, these factors result in lower ratings
than peers.

KEY ASSUMPTIONS

-- Steady revenues due to lower grains prices;

-- EBITDA close to USD500 million in 2023;

-- Capex of about USD150 million in 2023;

-- RMI Net debt/ EBITDA close to 3.5x as of YE 2023.

RATING SENSITIVITIES

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

-- Improved scale and geographical diversification;

-- RMI-adjusted net leverage (RMI adjusted total net debt to
   operating EBITDA) below 2.5x range on a sustained basis;

-- Liquidity ratio (cash and marketable securities + RMI + account

   receivables/Total short-term liability) above 1x on a
sustainable
   basis;

-- Secured debt/EBITDA below 1x.

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

-- Loss of business diversification;

-- RMI-adjusted net leverage (RMI adjusted total net debt to
   operating EBITDA) sustained above 3.5x range on a sustainable
   basis;

-- Liquidity ratio (cash and marketable securities + RMI + account

   receivables/Total short liabilities) below 0.8x at year-end;

-- Secured debt/Ebitda above 2.5x;

-- A multi-notch downgrade of Brazil Country Ceiling and inability

   to cover hard currency interest expenses by offshore cash and
   exports.

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: The diversified sources of external liquidity
used for short-term working capital financing — combined with
cash, short-term marketable securities and high levels of liquid
RMI — provide Amaggi with adequate financial flexibility. Amaggi
reported consolidated cash and marketable securities of USD1
billion, covering 1.3x times (x) the USD811 million of short-term
debt as of 1Q23 (1.1x at YE22). The company also has access to
several uncommitted bank lines and maintains a minimum cash policy
of USD400million. The company's liquidity ratio based on total
current liabilities was about 1x as of YE22.

ISSUER PROFILE

Amaggi operates in an integrated and synergistic way throughout the
agribusiness chain: agricultural production, river and road
transport, port operations, origination, processing and
commercialization of grains and inputs, generation and
commercialization of electricity.

ESG CONSIDERATIONS

Andre Maggi Participacoes S.A. has an ESG Relevance Score of '4'
for Waste & Hazardous Materials Management; Ecological Impacts
related to land use, as a large part of the volume of grains coming
from the commodities business come from Amazon and Cerrado Biomes
that are exposed to deforestation, which has a negative impact on
the credit profile, and is relevant to the rating[s] in conjunction
with other factors.

Andre Maggi Participacoes S.A. has an ESG Relevance Score of '4'
for Group Structure due to lack of board independence as the
company is privately-controlled, which has a negative impact on the
credit profile, and is relevant to the rating[s] in conjunction
with other factors.

Andre Maggi Participacoes S.A. has an ESG Relevance Score of '4'
for Governance Structure due to the existence of related parties
transaction, which has a negative impact on the credit profile, and
is relevant to the rating[s] in conjunction with other factors.

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.

Entity                       Rating             Prior
------                       ------             -----
Amaggi Luxembourg
International S.a r.l.

  senior unsecured   LT         BB       Affirmed  BB

Andre Maggi
Participacoes S.A.

                     LT IDR     BB       Affirmed  BB

                     LC LT IDR  BB       Affirmed  BB

                     Natl LT    AA+(bra) Affirmed  AA+(bra)


AZUL SA: 86% of Bondholders Have Agreed with Exchange Offer
-----------------------------------------------------------
globalinsolvency.com, citing Reuters, reports that Brazilian
airline Azul said that a group accounting for roughly 86% of
holders of bonds expiring in 2024 and 2026 have agreed with an
exchange offer proposed by the company to delay their maturities to
2029 and 2030.

The offer had been announced by the company earlier this month as
part of a broader restructuring plan that also included deals with
aircraft lessors for lower payments, with initially 65.5% of the
bondholders having agreed with it, according to
globalinsolvency.com.

Now, with the early participation phase of the offer concluded, the
carrier celebrated what it described as a high level of acceptance.
"It's a very positive figure," Azul Chief Financial Officer Alex
Malfitani told Reuters in an interview, the report notes.

"That leaves us in a very solid financial position, with no more
doubts on whether we would be able to roll over that debt." Azul
expects the exchange offer for bonds totaling $1 billion to remove
an overhang on its stock as it deals with high short-term
indebtedness, even though it had to increase interest paid on those
notes against a backdrop of high borrowing costs, the report adds.

As reported in the Troubled Company Reporter-Latin America in
February 2023, Moody's Investors Service has downgraded to Caa2
from B3
Azul S.A. (Azul)'s corporate family rating. At the same time,
Moody's has downgraded to Caa3 from Caa1 the rating of the senior
unsecured notes issued by Azul Investments LLP and unconditionally
guaranteed by Azul. The outlook for all ratings is negative.


BANCO BTG PACTUAL: Fitch Alters BB- IDRs to Positive
----------------------------------------------------
Fitch Ratings has revised Banco BTG Pactual S.A.'s (BTG Pactual)
and BTG Pactual Holding S.A.'s (BTGH) Long-Term Rating Outlooks to
Positive from Stable, while affirming their Foreign and Local
Currency Long-Term Issuer Default Ratings (IDRs) at 'BB-'. Fitch
has also revised the Outlook to Positive from Stable and affirmed
BTG Pactual and BTGH's Long-Term National Ratings at 'AA(bra)'.

The Outlook revision to Positive reflects an improvement in BTG
Pactual's business profile due to its transforming revenue and
funding mix as well as the strength and resilience of the bank's
overall financial profile. Maintenance of these trends could
provide some upside potential for its rating over the near-term.

KEY RATING DRIVERS

BTG Pactual - IDR, VR, NATIONAL RATINGS

Ratings Driven by VR: BTG Pactual's IDRs and National Ratings are
driven by BTG Pactual's standalone creditworthiness, as measured by
its Viability Rating (VR) of 'bb-'. However, the VR is one notch
below the implied VR as Fitch rarely assigns a bank VR above the
sovereign rating.

BTG Pactual's ratings are underpinned by its solid domestic
franchise and improving product and funding mix that has supported
a good record of earnings resilience even under a more unstable
operating environment. BTG Pactual's ratings further includes its
solid risk-management infrastructure and adequate lending
standards, better-than-peer capital buffers, and adequate funding
and liquidity profiles.

Strong Franchise: BTG Pactual' business profile benefits from an
integrated and fairly diversified business model. The bank
continues to hold leading or near-leading market shares in many
business segments, including a leading market share in debt and
equity underwriting, and a growing client asset management and
corporate lending franchises. This results in a certain degree of
pricing power, good cross-selling among its business units and
revenue stability.

Improved Revenue Mix: Fitch has revised BTG Pactual's Business
Profile assessment to 'bbb-' from 'bb', to highlight a
better-balanced revenue mix. The bank's stronger investment
management divisions (asset and wealth management) and corporate
lending units, which Fitch's sees as reasonably stable, accounted
for around 40% of BTG Pactual's total revenues in 2022 from levels
of around 27% in 2019. Sales & trading (31% of revenues in 2022)
and investment banking revenues (11%), can be more sensitive to
market dislocations but these revenues' through the cycle
profitability is viewed as strong.

Market, Lending Risks Well Managed: BTG Pactual's risk profile is
assessed as moderate, balancing the bank's conservative lending
standards toward top-tier domestic companies and some structural
exposure to market-risk, which is viewed in the context of BTG
Pactual's well-developed market risk management that has allowed it
to avoid meaningful revenue volatility within its sales and trading
segment.

Exposure to trading assets and liabilities remains higher compared
with the sector average but market risk materially declined
relative to historical averages. Market risk-weighted assets (RWAs)
averaged 14% of total RWAs in the last eight quarters ended in
1Q23, down from levels of 49% prior to 4Q19, reflecting a much
larger share of client fee and flow-based activities, relative to
proprietary trading.

Moderate Increase in Impaired Loans: BTG Pactual's consolidated
impaired loan ratio of 8.0% at end-March 2023 from 5.2% at end-21,
reflecting some inflows of D-H loans, is largely linked to
Americanas' (IDR, D) risk reclassification following the domestic
retailer petition for bankruptcy protection on January 2023.
Asset-quality pressures on the bank's overall exposures remained
well contained to date.

Fitch expects BTG Pactual's impaired ratio to peak at 9.0% at
end-2023 held by the bank's loan mix largely oriented to large
corporates within stable sectors, in the context of the domestic
economy. In Fitch's view, BTG Pactual's BRL5.4 billion in allowance
for loan losses at end-March 2023 is adequate to absorb medium term
losses without presenting a material challenge to earnings or
solvency in light of its current lending exposures.

Peer-Leading Operating Profitability: BTG Pactual's operating
profit as a share of risk weighted assets was 3.1% in 1Q23. The
bank has consistently outperformed domestic peers according to this
metric over the past four years. Fitch expects profitability to
remain resilient over 2023, despite pressures on investment banking
revenues due to a contraction in the number of deals, reflecting
the stronger revenue performance on asset, wealth management and
corporate lending.

Adequate Capitalization: BTG Pactual is adequately capitalized for
its risk profile supported by good earnings retention. At end-March
2023, the regulatory common equity Tier 1 ratio of 13.0% compared
well by national standards and we expect this to be maintained in
the medium term in line with the bank's presented capital plan. The
equity-to-asset ratio was also sound at around 13% at end-March
2023.

Improved Deposit Structure: As a result of the improvement in the
bank's deposit gathering capabilities, Fitch has revised its
outlook on BTG Pactual's funding and liquidity score of 'bb-' to
positive. The ramp-up of BTG Pactual's digital bank combined with
selected acquisitions of independent platforms and the
consolidation of PAN have supported material progress on its
funding franchise, including a larger share of retail deposits (30%
of total deposits at end-1Q23) and reduced reliance on wholesale
funding. The bank's loan/deposits at end-1Q23 of 102% shows an
improved matching of assets and liabilities (from 139% in end-2019)
and are expected to remain relatively stable as loan growth
moderates.

RATING SENSITIVITIES

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

Rating downside would be primarily contingent on a downgrade of the
Brazilian sovereign rating. BTG Pactual's VR could also suffer if
regulatory capital ratios approach the minimum requirements, due to
a combination of asset quality deterioration or weakening of
profitability.

Exceptionally strong performance of the bank's capital markets
business that dilutes the contribution of asset, wealth management
and corporate lending performance to the bank's results would not
necessarily be viewed negatively provided the company maintains a
conservative risk appetite.

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

BTG's ratings could be upgraded if the bank continues to improve
its funding profile through the ongoing development of its deposit
franchise, while maintaining or further improving its business mix
and financial profile.

An upgrade of Brazil's sovereign ratings could lead to a similar
action on BTG's ratings.

NATIONAL RATINGS

Rating actions on BTG Pactual's IDRs or a change in the bank's
credit profile relative to Brazilian peers may lead to a similar
action on the bank's national scale ratings.

OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS

BTGH - KEY RATING DRIVERS

BTGH is a pure holding company and its Long-Term and Short-Term
IDRs and national ratings are the same as those of BTG Pactual, its
main operating subsidiary (controls 81.9% of BTG), due to its
moderate leverage and the favorable regulatory framework for
financial groups in Brazil. The equalization of the ratings is
based on the high correlation between the probability of default
for BTGH and the bank. Both are incorporated in the same
jurisdiction and are supervised by the Brazilian authorities. At
105%, the holding company's double-leverage ratio was moderate.

OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS

BTG Pactual's senior unsecured issuances are in line with its IDRs.
The probability of default of any senior obligation is tied to that
of the bank (reflected in the Long-Term IDR), as a default of
senior obligations would be treated by the agency as default by the
entity.

The subordinated notes eligible as Tier 2 capital due in 2029 are
rated two notches below BTG Pactual's VR of 'bb-'. The notching is
driven by the notes' high expected loss severity. No notching for
non-performance is applied because coupons are not deferrable and
the write-off trigger is close to the point of non-viability. As a
result, Fitch believes that the incremental non-performance risk is
not material from a rating perspective.

OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES

BTGH - RATING SENSITIVITIES

BTGH's IDR and national ratings would remain at the same level as
BTG Pactual and would move in tandem with any rating actions on its
main operating subsidiary. However, a material and sustained
increase in BTGH's double-leverage metrics (above 120%), would be
negative for ratings. Additionally, a change in the dividend flows
from the operating companies or debt levels at the holding company
that affects its debt coverage ratios could also be detrimental to
its ratings.

OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES

BTG Pactual's senior debt ratings would move in line with the
bank's IDRs. Subordinated debt and hybrid ratings would be
sensitive to changes in the bank's VR and maintain the relativity
in respect to this anchor rating.

VR ADJUSTMENTS

The VR of 'bb-' has been assigned below the 'bb' implied VR due to
the following adjustment reason: Sovereign Rating Constrain
(negative)

The Asset-Quality of 'bb-' has been assigned above the implied 'b'
Asset Quality Score due to the following adjustment reason:
Underwriting standards and growth (positive).

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING

The principal sources of information used in the analysis are
described in the Applicable Criteria.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.


BRAZIL: Formal Job Creation Drops 44% in May 2023
-------------------------------------------------
Rio Times Online reports that the Ministry of Labor and Employment
in Brazil announced that the country generated 155.27 thousand
formal jobs in May 2023, according to the General Cadastre for
Employed and Unemployed (Caged).

This figure represents the net balance of job creation after
accounting for hirings and layoffs, according to Rio Times Online.
In May, there were 2 million hirings and 1.844 million layoffs, the
report notes.

Compared to May 2022, when 277.73 thousand formal jobs were
created, there was a significant decrease of 44% in job creation,
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).


BRAZIL: Postal Service Faces Challenges in Transforming the Sector
------------------------------------------------------------------
Iolanda Fonseca at Rio Times Online reports that Brazil's logistics
and delivery sector has witnessed significant changes due to the
rise of e-commerce and evolving consumer demands.

However, experts believe that the state-owned company, Correios
(Post Office), will face difficulties in remaining competitive in
this dynamic market, despite the government's plan to revive its
relevance, according to Rio Times Online.

Recently, the Brazilian government announced a R$350 (US$70)
million investment to strengthen the company, the report notes.

However, industry specialists, such as Maurício Lima from the ILOS
Institute, argue that this investment alone will not solve the Post
Office's challenges, the report adds.

                              About Brazil

Brazil is the fifth largest country in the world and third largest
in the Americas. Luiz Inacio Lula da Silva won the 2022
Brazilian general election. He was sworn in on January 1, 2023, as
the 39th president of Brazil, succeeding Jair Bolsonaro.

As recently reported in the Troubled Company Reporter-Latin
America, Fitch Ratings, in December 2022, affirmed Brazil's
Long-Term Foreign Currency Issuer Default Rating (IDR) at 'BB-'
with a Stable Outlook. The ratings are constrained by high
government indebtedness, a rigid fiscal structure, weak economic
growth potential, and a record of governability challenges that
have hampered efforts to address these fiscal and economic issues
and clouded policy predictability. The Stable Outlook reflects
Fitch's expectation that growth will slow in the coming year and
that recent fiscal improvement will erode under a new government,
but within a margin consistent with the current rating, and from a
better starting point than previously expected. Uncertainty is
elevated regarding the plans of the incoming government and the
extent to which these could ease or aggravate fiscal and economic
challenges. However, Fitch does not expect policies that
jeopardize broad economic stability.

Standard & Poor's affirmed its 'BB-/B' long- and short-term
foreign and local currency sovereign credit ratings on Brazil, and
the outlook remains stable (June 2022).  The stable outlook
reflects S&P's base-case assumption that Brazil will maintain its
fiscal anchors over the next two years despite an increasing
interest burden, preventing significant fiscal slippage and
limiting the rise in its already high debt burden.

Moody's credit rating for Brazil was last set at Ba2 in 2018 with
stable outlook.  Moody's affirmed the Ba2 issuer ratings and
senior unsecured bond ratings in April 2022.

DBRS's credit rating for Brazil is BB (low) with stable outlook
(March 2018).




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

DOMINICAN REPUBLIC: Abinader Outlies Key Focus on Public Policies
-----------------------------------------------------------------
Dominican Today reports that during the closing speech of the
Second National Planning Meeting organized by the Ministry of
Economy, President Luis Abinader outlined the key focus areas of
his administration's public policies aimed at enhancing the
population's quality of life.  These include job creation,
promotion of public and private investments, and building economic
resilience against the impacts of climate change, according to
Dominican Today.

President Abinader emphasized the need to adapt the healthcare
system to the evolving epidemiological profile of the population,
with a particular emphasis on promoting lifestyle changes through
physical activity, the report notes.  He also highlighted the
importance of improving the quality of life for the rural
population, viewing them not just as food providers but as a
segment that deserves attention and support, the report relays.

In his speech, President Abinader stressed the significance of
generating employment opportunities that involve women,
technological advancements, and artificial intelligence (AI), the
report discloses.  He mentioned that the National Multiannual Plan
of the Public Sector has prioritized investments in water, health,
housing, and transportation, with a budget exceeding RD$50 billion
in 2023, surpassing previous administrations, the report says.

The president also discussed the Territorial Cohesion Fund, a tool
through which 123 projects are being executed in vulnerable
municipalities and municipal districts across the country, the
report notes.

President Abinader emphasized the government's commitment to making
investments in the areas where people reside, recognizing the
importance of local development, the report relays.  He highlighted
the ongoing construction of seven extensions of the Autonomous
University of Santo Domingo (UASD), the Technical Institute for
Vocational Training (Infotep), and the Technological Institute of
the Americas (ITLA) in various provinces, the report notes.  These
initiatives have contributed to a decrease in the number of "ninis"
(young people who neither study nor work) from 28% to 21%, the
report relays.

The president proudly mentioned the declining unemployment rate,
which decreased from 14.7% in December 2020 during the pandemic to
11.7% in the same period in 2022, the report discloses.  He also
noted an increase in the participation of women in the labor
market, rising from 43.5% to 46.5% during the same timeframe, the
report relates.

President Abinader attributed these positive developments to the
promotion of productive sectors, including the establishment of new
companies, industrial parks, and free zones, the report notes.  He
highlighted the significant investments in the hotel sector, which
reached a record high of US$4 billion in 2022, 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.




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

DIGICEL GROUP: Davis Polk Advises Business on Restructuring
-----------------------------------------------------------
Davis Polk is advising Digicel Group Holdings Limited ("DGHL") and
Digicel Limited ("DL" and together with certain of its
subsidiaries, the "Company") in connection with the cross-border
restructuring of more than $4.4 billion of indebtedness.

On May 28, 2023, DGHL, its shareholder (the "Shareholder"), an ad
hoc group of DGHL noteholders (the "DGHL AHG") and an ad hoc group
of crossover holders (the "Crossover AHG") entered into a
restructuring support agreement (the "DGHL RSA"). The DGHL AHG and
Crossover AHG collectively hold over 80% of the face amount of
DGHL's approximately $640 million of outstanding notes. Among other
things, the DGHL RSA contemplates that existing noteholders will
receive, in full and final satisfaction of their claims,
approximately $183 million in cash and new secured limited recourse
notes in respect of, among other things, certain future
distributions, which will be consummated through a Bermuda scheme
of arrangement and a U.S. chapter 15 recognition proceeding.

On June 27, 2023, the (i) Company, (ii) Crossover AHG, (iii) an ad
hoc group of Digicel International Finance Limited ("DIFL") secured
lenders and noteholders (the "DIFL Secured AHG" and, together with
the Crossover AHG, the "AHGs") and (iiii) the Shareholder entered
into a restructuring support agreement (the "DL/DIFL RSA").
Together, the AHGs hold more than 78% of all of the Company's
funded indebtedness. The DL/DIFL RSA provides a pathway for the
Company to implement a comprehensive financial recapitalization
that would, together with the DGHL Restructuring, reduce DGHL's and
the Company's consolidated funded debt by approximately $1.7
billion and annual cash interest expense by approximately $120
million. The restructuring contemplated in the DL/DIFL RSA is
expected to equitize 100% of DL's senior notes (the "DL Notes") and
DIFL's subordinated notes (the "DIFL Subordinated Notes") as well
as refinance and extend the maturity of the Company's other funded
indebtedness. The DL/DIFL RSA contemplates that the Company will
implement its restructuring through an exchange offer for the DIFL
Subordinated Notes, Bermuda schemes of arrangement and U.S. chapter
15 recognition proceedings.

In addition, DIFL and certain of its subsidiaries have agreed with
the AHGs to amend DIFL's term loan B credit agreement to allow for
an aggregate principal amount of $60 million of incremental DIFL
term loan Bs, to be provided by the Crossover AHG. Additionally,
the Crossover AHG has agreed to backstop a new-money equity rights
offering of up to $110 million, which all holders of DL Notes and
DIFL Subordinated Notes will have the opportunity to participate
in.

As a Digital Operator, Digicel is in the business of delivering
powerful digital experiences 1440 minutes of each day to customers.
Through its world-class LTE and fibre networks, together with its
suite of apps spanning sports, news, local radio and podcasts and
self-care, Digicel is the only operator in its markets that can
deliver that. Serving consumer and business customers in 25 markets
in the Caribbean and Central America, its investments of over $5
billion and a commitment to its communities through its Digicel
Foundations in Haiti, Jamaica and Trinidad & Tobago have
contributed to positive outcomes for over two million people to
date.  

The Davis Polk restructuring team includes partners Timothy
Graulich and Darren S. Klein, counsel Stephen D. Piraino and
associates Richard J. Steinberg, Matthew B. Masaro and Kayleigh
Yerdon. The capital markets team includes partner Michael Kaplan,
counsel Joseph S. Payne and associate Dennis Chu. The finance team
includes partner Hilary Dengel, counsel David J. Kennedy and
associate Theodore N. Batis. The litigation team includes partner
James I. McClammy, counsel Marc J. Tobak and associate Garret
Cardillo. All members of the Davis Polk team are based in the New
York office.

Davis Polk refers to Davis Polk & Wardwell LLP, a New York limited
liability partnership, and its associated entities.

                      About Digicel Group

Digicel Group is a mobile phone network provider operating in 33
markets across the Caribbean, Central America, and Oceania
regions.

The company is owned by the Irish billionaire Denis O'Brien, is
incorporated in Bermuda, and based in Jamaica.

As reported in the Troubled Company Reporter-Latin America on
May 25, 2023, Fitch Ratings downgraded the Long-Term Issuer Default
Ratings (IDRs) of Digicel Group Holdings Limited (DGHL) and of
Digicel Limited (DL) to 'RD' from 'C'. DGHL's senior unsecured
notes and subordinated notes have been affirmed at 'C/RR5' and
'C/RR6', respectively.

On Aug. 11, 2022, the TCR-LA reported that Moody's Investors
Service confirmed Digicel Group Holdings Limited's Caa2 corporate
family rating, its Caa2-PD probability of default rating and Ca
senior unsecured ratings. Moody's also confirmed the senior
unsecured ratings of Digicel Group Two Limited, Digicel Limited and
the senior secured ratings of Digicel International Finance
Limited. Concurrently, Moody's downgraded the senior unsecured and
subordinated ratings of Digicel International Finance Limited to
Caa3 from Caa2. The outlook was changed to negative.


DIGICEL GROUP: Reaches Debt Deal With Bondholders
-------------------------------------------------
RJR News reports that Digicel Group and a majority of its
bondholders have struck a deal to reduce the telecommunications
company's debt.

Digicel founder Denis O'Brien will relinquish his majority stake in
the company, with holders of Digicel Limited and Digicel
International Finance Limited bonds taking approximately 62 per
cent of new common equity in the company, according to RJR News.

They will also have the opportunity to participate in an equity
rights offer by the company, which will raise up to US$110 million,
the report notes.

Denis O'Brien is set to keep up to a 10 per cent stake in Digicel,
rising to a possible 20 per cent, once the restructuring is
finalized, the report relays.

He will also stay on as one of nine directors of Digicel's new
board, the report discloses.

Digicel and holders of its bond have been working on a deal since
February, the report says.

With the deal, the company's debt will be reduced by about US$1.7
billion, and its annual interest expenses will fall by US$120
million, the report notes.

The new deal could take a few months to be actioned, with a number
of formal stages to be undertaken, the report adds.

                        About Digicel Group

Digicel Group is a mobile phone network provider operating in 33
markets across the Caribbean, Central America, and Oceania
regions.

The company is owned by the Irish billionaire Denis O'Brien, is
incorporated in Bermuda, and based in Jamaica.

As reported in the Troubled Company Reporter-Latin America in April
2020, Moody's Investors Service downgraded Digicel Group Limited's
probability of default rating to Caa3-PD from Caa2-PD. At the same
time, Moody's downgraded the senior secured rating of Digicel
International Finance Limited to Caa1 from B3. All other ratings
within the group remain unchanged. The outlook is negative.

Also in April 2020, the TCR-LA reported that Fitch Ratings has
downgraded Digicel Limited to 'C' from 'CCC', and its outstanding
debt instruments, including the 2021 and 2023 notes to 'C'/'RR4'
from 'CCC'/'RR4'. Fitch has also downgraded Digicel International
Finance Limited to 'CCC+' from 'B-'/Negative, and its outstanding
debt instruments, including the 2024 notes and the 2025 credit
facility, to 'CCC+'/'RR4' from 'B-'/'RR4'. Fitch has removed the
Negative Rating Outlook from DIFL.


JAMAICA: To Complete 3 More Steps for Removal From FATF Grey List
-----------------------------------------------------------------
Finance Minster Dr. Nigel Clarke says Jamaica only has three more
steps to complete before meeting the Financial Action Task Force
(FATF) requirements for removal from the grey list.

Speaking with Dionne Jackson Miller on Radio Jamaica's Beyond the
Headlines, Dr. Clarke said progress is being made to meet the
October deadline.

"Three outstanding matters are to operationalise risk-based
supervision of beneficial ownership by the Companies Act, of
lawyers by the General Legal Counsel, and of trust and corporate
service providers by the FSC (Financial Services Commission)," he
revealed.  

"Once that risk-based supervision is demonstrably operationalised
by those three regulatory bodies, Jamaica will then be able to
apply for an on-site examination where FATF will come to Jamaica
and verify for themselves that these actions have indeed been
taken, the operationalisation is indeed in effect, and then if that
on-site is successful, Jamaica will be able to be removed from this
grey list that we are currently on," said the minister.

Countries which fall on the grey list are subject to increased
monitoring, as the entity deems them as needing to address certain
gaps in their terrorist financing and money laundering regimes.

If Jamaica does not meet the October deadline, further enhanced
restrictions could be put in place for financial transactions and
business relations.

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.




===========
M E X I C O
===========

BBVA MEXICO: Fitch Rates USD1-BB Tier 2 Sub. Preferred Notes 'BB'
-----------------------------------------------------------------
Fitch Ratings has assigned a final rating of 'BB' to BBVA Mexico,
S.A., Institucion de Banca Multiple, Grupo Financiero BBVA Mexico's
(BBVA Mexico) USD1 billion Tier 2 subordinated preferred capital
notes. The rating is in line with the expected rating assigned on
June 19, 2023.

The notes have a 15-year maturity and an 8.450% fixed rate. The
bank has the option to early redeem the notes one time only on year
10 from the issuance day. The proceeds will be used to prudently
manage the regulatory capital ratios and for general corporate
purposes. These notes are issued under BBVA Mexico's USD10 billion
medium-term note program.

KEY RATING DRIVERS

BBVA Mexico's Tier 2 subordinated preferred capital notes 'BB'
rating is three-notches below the bank's 'bbb' viability rating,
the anchor rating. There is a two notches adjustment to reflect the
loss-severity risk and an additional one notch for non-performance
risk.

According to Fitch's criteria, two notches for loss severity
reflects the issue's subordinated preferred debt status and
expected poor recovery prospects in a liquidation event relative to
the bank's senior debt. The notes will rank subordinated to all
senior debt, pari passu to all subordinated preferred debt and
senior to subordinated non-preferred debt and all classes of
capital stock.

The one-notch for non-performance considers that according to the
applicable local regulation, interest deferral will be triggered at
relatively high levels of capitalization levels before the
write-down or point of non-viability (PONV) occurs. Mandatory
coupon deferral will be activated if the total regulatory capital
ratio (ICAP, Indice de Capitalizacion) declines below 8% or the
Tier 1 capital ratio declines below 6%, plus the applicable capital
supplement (an additional 1.5% for BBVA Mexico as a Domestic
Systemically Important Bank).

BBVA Mexico has to comply with a minimum level of ICAP of 11.5%
plus the proportion of TLAC requirements, which implies a total
ICAP of 13.625%. Mandatory coupon deferral will also occur if the
Mexican regulator classifies BBVA Mexico as "Class III or IV" under
the Mexican Capitalization Requirements or Early Warning System.

No additional notches are considered for non-performance as the
subordinated notes imply the write-down or PONV would be activated
at a relatively low trigger when the Common Equity Tier 1 ratio is
equal to or below 4.5%. In addition, the bank's good capitalization
level, supported by sound and stable earnings, as well as strong
supervision of the local regulator, are factors that Fitch believes
partially mitigate the likelihood of breaching a trigger event.

Fitch does not consider the parent's support to mitigate
non-performance risk due to the Mexican bank's larger size relative
to Banco Bilbao Vizcaya Argentaria S.A.'s total assets, which Fitch
believes limits the parent's ability to support.

RATING SENSITIVITIES

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

The rating of this issuance could be downgraded in the event of a
downgrade of BBVA Mexico's anchor rating.

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

The rating of this issuance could be upgraded in the event of an
upgrade of BBVA Mexico's anchor rating, and at all times the
notching down will be maintained.

SUMMARY OF FINANCIAL ADJUSTMENTS

Fitch reclassified pre-paid expenses and other deferred assets as
intangibles and deducted them from total equity due to their low
loss absorption capacity.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.




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P E R U
=======

RUTAS DE LIMA: S&P Retains 'B-' ICR on CreditWatch Negative
-----------------------------------------------------------
S&P Global Ratings kept its 'B-' issue rating on Rutas de Lima
S.A.C. (RdL) on CreditWatch with negative implications.

S&P said, "The CreditWatch negative reflects that we could lower
the rating if we perceive higher risks of bond payment
acceleration, which could occur if the bondholders don't grant a
waiver to extend the due date of PS and PN's pending construction
works before Dec. 31, 2023. Also, we could lower the rating if the
Court of Arbitration issues a final judgment against the project on
the concession termination dispute."

On March 7, 2023, RdL petitioned the Permanent Court of Arbitration
in The Hague to include a dispute on the termination of the
concession agreement as a new claim in the existing process
(referred to as Arbitration Nº3). It seeks to compensate several
of the MML's breaches of contract. Specifically, RdL filed its
petition under the rules of the U.N. Commission for International
Trade Development. The project also petitioned the court to issue
an injunction measure to suspend the termination while the dispute
is being resolved.

On June 13, 2023, the court ruled in favor of RdL and ordered the
MML to:

-- Keep the status quo until the arbitration disputes are
resolved, thereby suspending the termination of the concession
agreement during the arbitration procedure; and

-- Refrain from aggravating the controversy with public statements
about the dispute and against the claimant during the arbitration
procedure.

In addition, the court stated that the events that led to the MML's
unilateral decision to terminate the concession contract, along
with its conduct during the termination process, indicate the
alleged reasons of public interest were not properly founded and
justified.



                           *********


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.
.


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