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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, August 10, 2023, Vol. 24, No. 160

                           Headlines



A R G E N T I N A

BANCO BBVA ARGENTINA: Fitch Affirms 'CCC-' Long Term IDRs
BANCO MACRO: Fitch Affirms 'CCC-/C' Foreign & Local Currency IDRs
BANCO SANTANDER: Fitch Affirms 'CCC-' Long Term IDRs
BANCO SUPERVIELLE: Fitch Affirms 'CCC-' Long Term IDRs


B R A Z I L

BRADSEG PARTICIPACOES: Fitch Raises IDRs to 'BB+'; Outlook Stable
BRAZIL: Mercosur Meets on Counterproposal for Trade Talks with EU
BRAZIL: Selic Cut to 13.25%, Corp. Interest Rates Remain at 20%


C H I L E

LATAM AIRLINES: Expects Record 2023 Earnings After Q2 Results Boost


C U B A

CUBA: Bans Companies From Using ATMs, Limits Cash Transactions


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Some Ministries Funds Will be Reduced in 2023


E C U A D O R

CUENCA DPR: Fitch Assigns 'B-' Rating to Series 2023-1 Loans


J A M A I C A

CARIBBEAN CEMENT: 6-Month Earnings Fall

                           - - - - -


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

BANCO BBVA ARGENTINA: Fitch Affirms 'CCC-' Long Term IDRs
---------------------------------------------------------
Fitch Ratings has affirmed Banco BBVA Argentina S.A.'s (BBVA Arg)
Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs)
at 'CCC-' and Viability rating (VR) at 'ccc-'. In addition, Fitch
has affirmed BBVA Arg's Short-Term Foreign and Local Currency IDRs
at 'C' and Government Support Rating (GSR) at 'no support' (ns).

KEY RATING DRIVERS

Highly Challenging Operating Environment: Banco BBVA Argentina
S.A.'s Viability Rating (VR) drives its IDRS. The 'ccc-' VR is
capped by the operating environment (OE) score of 'ccc-'. In
Fitch's view, regardless of its overall adequate financial
condition, the bank's ratings are highly influenced Argentina's
IDRs ('CC' Foreign Currency IDR), and the still volatile OE, which
has risks clearly skewed to the downside.

Weak Macroeconomic Factors: BBVA Arg's VR is below the 'ccc'
implied level and is highly influenced by Fitch's assessment of the
challenging operating environment (OE). The OE in Argentina remains
very challenging due to very weak macroeconomic factors, triple
digit inflation, a severe drought affecting FX revenues and asset
quality, pending negotiations for support from the IMF, as well as
political uncertainties during an election year.

Good Market Position: BBVA Arg is a universal commercial bank, that
provides retail and corporate banking services to individuals,
small and medium companies and large-sized corporates. The bank
benefits from its strong franchise, which places it among the top
four private sector banks in Argentina by loans and deposits, with
market shares of approximately 9.3% and 6.8%, respectively, as of
March 31, 2023. This Argentine subsidiary benefits from the ample
expertise of its main (66.6%) shareholder, Spain's Banco Bilbao
Vizcaya Argentaria (BBVA; 'BBB+'/Stable). The other shareholder is
ANSES with 7% and 26.4% is Free Float.

Good Asset Quality: Over the past few years the bank has maintained
better-than-peers asset quality indicators, despite its large
retail and middle market corporate portfolios, and the challenging
OE. BBVA Arg's impaired loan ratio ended March 2023 at 1.4% from
1.2% at YE2022, and a four-year average of 2%. The bank maintains
an internal policy of exceeding regulatory loan loss reserve
requirements, and keeps presenting comfortable coverage levels,
with loan loss allowances to impaired loans ratio at 220%, which
also compares favorably to its peer group.

Satisfactory Profitability: BBVA Arg has sustained adequate
profitability, even in a difficult economic scenario. For the first
quarter ended March 31, 2023, its operating profit (adjusted for
inflation)/Risk Weighted Asset (RWA) ratio increased to 5.9% from
4.9% by year-end 2022. That was mainly due to improved interest
income, due to a higher monetary policy rate. The bank's ROAA
reached 2.6% (from 3.6% in 4Q22), while its ROAE was 13.7% (versus
19.4% in 4Q22). Fitch expects BBVA Arg's performance to remain
pressured until the political uncertainty abates and the economy
strengthens, leading to higher credit demand, albeit an unlikely
scenario in the short term. The bank prioritizes asset quality over
profitability.

Comfortable Capitalization: Similar to other banks in the financial
system, BBVA Arg's capitalization has continued to strengthen over
the past few years given the low loan growth. Its Common Equity
Tier 1 (CET 1) to RWA ratio was strong at nearly 27% at March 31,
2023. Given the bank's traditionally conservative risk appetite,
Fitch expects management will maintain the bank's capital cushion
at comfortable levels in the short term, but as the operating
environment improves, the ratio will likely revert to lower level
similar to that of YE 2019 when it was slightly over 17%.

Good Liquidity and Funding Metrics: BBVA Arg's main funding source
are deposits from its customer base, and the bank has a long track
record of attracting and maintaining a stable base. As of March 31,
2023, these deposits accounted for slightly over 92% of the bank's
total non-equity funding. The bank's loan to deposit ratio as of
the same date continued to shrink to a low 56%, reflecting a modest
risk appetite and low customer credit demand which is driven by the
challenging operating environment. Short-term liquidity is mostly
allocated in central bank instruments.

RATING SENSITIVITIES

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

-- The bank's IDRs and VRs would be pressured by a further
downgrade of Argentina's sovereign rating or a deterioration in the
local operating environment beyond current expectations that leads
to a significant deterioration in their financial profiles;

-- Any policy announcements that would be detrimental to the
banks' ability to service their obligations, including a tightening
of capital controls to the extent that they restrict debt payments,
would be negative for creditworthiness.

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

-- The IDRs and VRs would benefit from an upgrade of Argentina's
sovereign rating.

No Government Support: BBVA Argentina's Government Support Rating
(GSR) of 'no support (ns)' reflects Fitch's view that, despite the
bank's systemic importance, government support cannot be relied
upon given the constraints on such ability. Fitch does not consider
the possibility of any potential support from BBVA Argentina's
parent entity, Banco Bilbao Vizcaya Argentaria (BBVA; BBB+/Stable),
given the risk of government intervention in the Argentine
financial system.

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

-- Changes in BBVA Arg's GSR are unlikely in the medium term given
Argentina's low sovereign rating.

VR ADJUSTMENTS

-- The Viability Rating has been assigned below the implied
Viability Rating due to the following adjustment reason(s):
Operating Environment / Sovereign Rating Constraint (negative).

-- The Operating Environment score has been assigned below the
implied score due to the following adjustment reason: Sovereign
Rating (negative) and Macroeconomic Stability (negative).

-- The Business Profile score has been assigned below the implied
score due to the following adjustment reason: Business Model
(negative).

-- The Earnings and Profitability score has been assigned below
the implied score due to the following adjustment reason: Earnings
Stability (negative).

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Financial Institutions and
Covered Bond issuers have a best-case rating upgrade scenario
(defined as the 99th percentile of rating transitions, measured in
a positive direction) of three notches over a three-year rating
horizon; and a worst-case rating downgrade scenario (defined as the
99th percentile of rating transitions, measured in a negative
direction) of four notches over three years. The complete span of
best- and worst-case scenario credit ratings for all rating
categories ranges from 'AAA' to 'D'. Best- and worst-case scenario
credit ratings are based on historical performance.

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

BBVA Argentina's ESG score for Management Strategy of '4' reflects
the high level of government intervention in the Argentine banking
sector. The enforcement of interest rate caps can lead to
inadequate loan pricing and, together with the imposing of interest
rate floors on time deposits, applies significant pressure on
banks' net interest margins. In addition, restrictions on fee
levels can negatively affect performance ratios. This challenges
the bank's ability to define and execute its own strategy. This has
a moderately negative impact on the rating 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.

BANCO MACRO: Fitch Affirms 'CCC-/C' Foreign & Local Currency IDRs
-----------------------------------------------------------------
Fitch Ratings has affirmed Banco Macro S.A.'s (Macro) Foreign and
Local Currency Long-Term Issuer Default Ratings (IDRs) at 'CCC-'
and its Viability Rating (VR) at 'ccc-'. At the same time, Fitch
has affirmed Macro's Short-Term Foreign and Local Currency IDRs at
'C' and Government Support Rating (GSR) at 'no support' (ns).

KEY RATING DRIVERS

Highly Challenging Operating Environment: Macro's IDRs are driven
by its VR of 'ccc-'; which is capped by the operating environment
(OE) score of 'ccc-'. In Fitch's view, regardless of its overall
adequate financial condition and good market position, the bank's
ratings are highly influenced by the low IDRs of Argentina (Foreign
Currency IDR CC), and the still volatile OE whose risks are clearly
skewed to the downside.

Weak Macroeconomic Factors: Macro's VR is below the 'ccc' implied
level and it is highly influenced by Fitch's assessment of the
challenging Argentinean OE. The OE continues to be extremely
challenging due to very weak macroeconomic factors, triple digit
inflation, a severe drought that affected FX revenues and asset
quality, pending negotiations for support from the IMF and
political uncertainties during an election year.

Good Market Position: Macro is a universal bank, which focuses on
low, and middle-income individuals and small and mid-sized
companies. The bank has a strong presence is outside of Buenos
Aires. The bank benefits from its strong nationwide presence, which
places it among the top four private sector banks in Argentina in
terms of loans and deposits.

Although Macro benefits from its diverse business profile and
strong nationwide franchise, its business profile score has been
assigned below its implied score as the majority of its activities
are concentrated in a higher-risk OE.

Good Risk Management: Fitch expects Argentine banks' performance to
remain under pressure until the political and economic situation
recovers leading to an increase in credit demand. In response to
that, many banks have taken strategic measures to manage their
ample liquidity while limiting their credit risk, as is the case
with Macro. With few profitable alternatives, banks have
strategically directed their investments towards public sector
assets (in Macro's case, nearly 46% of the bank's total assets as
of 1Q23), particularly central bank securities and other
sovereign-related bonds.

Asset Quality Ratios Remain Good: Macro's risk appetite is
considered to be relatively higher than its closest peers due to
its middle market focus, and its retail focus on low to middle
income individuals. However, these generally higher risks are
usually mitigated by management's conservative underwriting
policies and sound risk controls, which benefit asset quality
metrics. In addition, the semi-secured nature of the bank's
payroll/pension-backed loan portfolio contributes to a lower-level
of impairments.

The bank's impaired loans to gross loans ratio as calculated by
Fitch as of March 31, 2023 was at a satisfactory level of 1.06%.
Although not as strong as the 0.8% reported as of Dec. 31, 2022,
this higher level still compares favorably to the banking system
average of 3.1%. The impaired loan coverage ratio stood at a
satisfactory 1.87x as of the end of 1Q23.

Satisfactory Profitability: Profitability remains satisfactory
despite the weak OE and government regulations. Macro benefits from
its strong market position outside of Buenos Aires. The bank has
good income diversification and a low average cost of funding from
customer deposits. Macro bank posted an operating profit to
risk-weighted asset (RWA) ratio of 4.9% at December 2022. Low
lending levels have affected net interest margins, however, returns
on investments in Central bank securities have partially replaced
the lower loan revenues. Fee income has grown. The bank continues
to focus on cost control posting a strong efficiency ratio of 25.5%
at March 31, 2023.

Ample Capitalization: Macro's capitalization is a strength relative
to local peers and it is supported by consistent earnings retention
and a conservative risk appetite. As of March 2023, the bank's CET1
to RWA ratio was at a very comfortable 39.1% an increase from 36.6%
at Dec. 31, 2022 and 30.9% at Dec. 31, 2021. The ratio was
strengthened in part by the internal capital generation while
risk-weighted assets remained stable. The ratio compares very well
to the bank's local and international peers and far exceeds the
regulatory capital minimums.

Satisfactory Liquidity Metrics: The bank's liquidity metrics remain
at very comfortable levels, which benefit from Macro's diverse
funding profile. This funding profile is supported by a generally
stable retail deposit base and complemented by demonstrated access
to capital markets. As of March 2023, customer deposits accounted
for 86% of total non-equity funding and the bank's gross loan to
deposit ratio was at a historically low 52.5%.

As Macro also provides financial agency services to four provincial
governments, its liquidity benefits from the mobilization of public
sector institutional deposits. In addition, the bank provides
payroll services to over two million retail clients, providing
another source of stable and low-cost funding.

RATING SENSITIVITIES

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

-- The IDRs and VRs would be pressured by a downgrade of
Argentina's sovereign rating or a deterioration in the local
operating environment beyond current expectations that leads to a
significant deterioration in its financial profile;

-- Any policy announcements that would be detrimental to the
bank's ability to service its obligations would be negative for
creditworthiness.

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

-- Macro's IDRs and VRs would benefit from an upgrade of
Argentina's sovereign rating.

OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS

Subordinated Debt: Macro's subordinated debt's 'C'/'RR6' rating is
two notches below the bank's VR reflecting Fitch's base case
notching for loss severity. These securities are plain vanilla
subordinated liabilities, without any deferral feature on coupons
and/or principal. The 'RR6' for subordinated debt reflects poor
recovery prospects due to a low priority position relative to
Macro's senior unsecured debt.

Government Support Rating: Macro's GSR of 'no support' (ns)
reflects Fitch's view that despite the bank's systemic importance,
government support cannot be relied upon given constraints on the
government's ability to provide support.

OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES

Any change, either positive or negative to Macro's VR could result
in a similar change to the subordinated debt rating.

Changes in the GSR of Macro are unlikely in the medium term given
the low sovereign rating of Argentina.

VR ADJUSTMENTS

The implied VR of 'ccc+' has been adjusted to 'ccc-' due to
OE/sovereign rating constraint (negative);

The OE score of 'ccc-' has been assigned below the implied score of
'bb' due to the following adjustment reasons: Sovereign Rating
(negative) and Macroeconomic Stability (negative);

The Business Profile score of 'ccc+' has been assigned below the
implied score of 'bb' due to the following adjustment reason:
Business Model (negative).

The Earnings and Profitability score of 'ccc' has been assigned
below the implied score of 'bb' due to the following adjustment
reason: Earnings Stability (negative).

The Capitalization and Leverage score of 'ccc+' has been assigned
below the implied score of 'bb' due to the following adjustment
reason: Leverage and risk weight calculation (negative).

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Financial Institutions and
Covered Bond issuers have a best-case rating upgrade scenario
(defined as the 99th percentile of rating transitions, measured in
a positive direction) of three notches over a three-year rating
horizon; and a worst-case rating downgrade scenario (defined as the
99th percentile of rating transitions, measured in a negative
direction) of four notches over three years. The complete span of
best- and worst-case scenario credit ratings for all rating
categories ranges from 'AAA' to 'D'. Best- and worst-case scenario
credit ratings are based on historical performance.

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

Banco Macro S.A. has an ESG Relevance Score of '4' for Management
Strategy reflects the high level of government intervention in the
Argentine banking sector. The imposition of interest rate caps can
lead to inadequate loan pricing and, together with the imposition
of interest rates floors on time deposits, puts significant
pressure on banks' net interest margins. In addition, restrictions
on fee levels can negatively impact on performance ratios. This
challenges Macro's ability to define and execute its own strategy.
This has a moderately negative impact on the rating in conjunction
with other factors.

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. A score of '3' 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. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.

BANCO SANTANDER: Fitch Affirms 'CCC-' Long Term IDRs
----------------------------------------------------
Fitch Ratings has affirmed Banco Santander Argentina S.A.'s
(Santander Argentina) Long-Term Foreign and Local Currency Issuer
Default Ratings (IDRs) at 'CCC-' and Viability rating (VR) at
'ccc-'. In addition, Fitch has affirmed Santander Argentina's
Short-Term Foreign and Local Currency IDRs at 'C' and Government
Support Rating (GSR) at 'no support' (ns).

KEY RATING DRIVERS

Highly Challenging Operating Environment: Santander Argentina's
IDRs are driven by its 'ccc-' VR, which is capped by the operating
environment (OE) score of 'ccc-'. In Fitch's view, regardless of
its overall adequate financial condition, the bank's ratings are
highly influenced by Argentina's low IDRs ('CC' Foreign Currency
IDR), and the still volatile OE, which has risks clearly skewed to
the downside.

Operating Environment High Influence: Santander Argentina's VR is
below the 'ccc' implied level and it is highly influenced by
Fitch's assessment of the challenging OE. The OE in Argentina
remains very challenging due to very weak macroeconomic factors,
triple digit inflation, a severe drought affecting FX revenues and
asset quality, pending negotiations for support from the IMF, as
well as political uncertainties during an election year.

Strong Market Position: Santander Argentina is a universal
commercial bank with the third largest bank by total loans and the
second by deposits, with market shares of 11.3% and 10.7%,
respectively, as of March 2023. However, despite the bank's
diversified operations and strong market share, its business
profile score of 'ccc+' has been assigned below the 'bb' implied
score due to the concentration of its operations in a high-risk
OE.

Good Risk Management: Fitch expects Argentine banks' performance to
remain under pressure until the political and economic situation
recovers, leading to an increase in credit demand. In response,
many banks have taken strategic measures to manage their ample
liquidity, which is the case for Santander Argentina. With few
profitable alternatives, the bank strategically directed their
investments towards public sector assets (39% of total bank's
assets as of March 31, 2023), particularly central bank securities
and sovereign-related bonds.

Good Asset Quality despite OE Challenges: Santander Argentina's
asset quality as measured by Non-performing loans (NPLs) has
improved reflecting the bank's good credit risk management. The
metrics stood at reasonable levels considering the depth of the
economic crisis in Argentina and pressures over the OE in the
latest years. As of March 2023, NPLs fell to 1.8% from a four-year
end-average of 2.5%. Loan loss reserve coverage remains at sound
levels of 224% of NPLs and 4.1% of total gross loans as of March
31, 2023, while loan impairment charges and low charge-offs also
supported improved asset quality metrics.

Profitability Increased, although Capped by Inflation: In spite of
the adverse OE, Santander Argentina has managed to post a
satisfactory level of profitability. In 1Q23, its operating profit
(adjusted for inflation)/Risk Weighted Asset (RWA) ratio was a
7.73%, higher than previous four-years average (4.5%), given the
moderate loans growth (in real terms) and the effect of higher
inflation.

Good Capital Ratios: As with the rest of the financial system,
Santander Argentina's capitalization has significantly improved in
the recent past given the very low loan growth. Its CET1 ratio rose
to 22.3% at 1Q23. Fitch's adjusted capitalization score of 'bb' to
'ccc' considers, as a negative deviation factor, the bank's
leverage and risk-weight calculation as it benefits from the
sovereign assets' exposure.

Reliance on Customer Deposits: Like other Argentine systemic banks,
Santander Argentina's main funding source is its customer deposits
base. These have grown at a solid pace in line with the high
inflation in Argentina and comprised 97.6% of the bank's total
funding as of March 31, 2023. As with most of its local peers,
Santander Argentina's loan to deposits ratio has significantly
decreased in part to the bank's risk appetite and low customer
demand for loans, while deposit growth has outpaced loan growth. At
March 2023, the ratio was only 47.9%.

Liquidity is sound, with a liquidity coverage ratio (LCR) at a
comfortable 227% and a net stable funding ratio (NSFR) of 185% as
of March 31, 2023. In addition, cash and due from banks represented
22.9% of total deposits and 59% considering also central bank and
government securities.

RATING SENSITIVITIES


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

-- The IDRs and VRs would be pressured by a downgrade of
Argentina's sovereign rating or a deterioration in the local
operating environment beyond current expectations that leads to a
significant deterioration in its financial profile.

-- Any policy announcements that would be detrimental to the
bank's ability to service its obligations would be negative for
creditworthiness.

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

-- Santander Argentina's IDRs and VRs would benefit from an
upgrade of Argentina's sovereign rating.

OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS

Government Support Rating: Santander Argentina's GSR of 'no
support' (ns) reflects Fitch's view that despite the bank's
systemic importance, government support cannot be relied upon given
constraints on the government's ability to provide support.

Spain's Banco Santander S.A. (SAN; A-/Stable Outlook) currently
holds 99.3% of the bank's capital. Fitch does not consider any
potential support from its parent given the risk of government
intervention in the Argentine financial system.

OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES

-- Changes in Santander Argentina's GSR are unlikely in the medium
term given Argentina's low sovereign rating.

VR ADJUSTMENTS

-- The VR of 'ccc-' has been assigned below the 'ccc' implied VR
due to the following adjustment reasons: Operating
Environment/Sovereign Rating Constraint (negative).

-- The Operating Environment score of 'ccc-' has been assigned
below the 'bb' implied score due to the following adjustments
reasons: Sovereign Rating (negative) and Macroeconomic Stability
(negative).

-- The Business Profile score of 'ccc+' has been assigned below
the 'bb' implied score due to the following adjustment reason:
Business Model (negative).

-- The Capitalization and Leverage score of 'ccc' has been
assigned below the 'bb' implied score due to the following
adjustment reason: Leverage and Risk-Weight Calculation
(negative).

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Financial Institutions and
Covered Bond issuers have a best-case rating upgrade scenario
(defined as the 99th percentile of rating transitions, measured in
a positive direction) of three notches over a three-year rating
horizon; and a worst-case rating downgrade scenario (defined as the
99th percentile of rating transitions, measured in a negative
direction) of four notches over three years. The complete span of
best- and worst-case scenario credit ratings for all rating
categories ranges from 'AAA' to 'D'. Best- and worst-case scenario
credit ratings are based on historical performance.

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

Santander Argentina's ESG score for Management Strategy of '4'
reflects the high level of government intervention in the Argentine
banking sector. The imposition of interest rate caps can lead to
inadequate loan pricing and, together with the imposition of
interest rates floors on time deposits, puts significant pressure
on banks' net interest margins. In addition, restrictions on fee
levels can negatively impact on performance ratios. This challenges
Santander Argentina's ability to define and execute its own
strategy. This has a moderately negative impact on the rating 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.

BANCO SUPERVIELLE: Fitch Affirms 'CCC-' Long Term IDRs
------------------------------------------------------
Fitch Ratings has affirmed Banco Supervielle's (Supervielle)
Foreign and Local currency Long-Term Issuer Default Ratings (IDRs)
at 'CCC-' and viability rating (VR) at 'ccc-'. Fitch has also
affirmed Supervielle's Government Support Rating (GSR) of 'no
support' (ns) and the bank's Short-Term IDRs at 'C'.

KEY RATING DRIVERS

Highly Challenging Operating Environment: Supervielle's IDRs are
driven by its 'ccc-' VR, which is capped by the operating
environment (OE) score of 'ccc-'. In Fitch's view, the bank's
ratings are constrained by Argentina's low IDRs (currently 'CC' for
the Foreign Currency IDR) and the still volatile OE.

Weak Macroeconomic Factors: Supervielle's VR is below the 'ccc'
implied level and is highly influenced by Fitch's assessment of the
challenging Argentine OE. Fitch believes that regardless of the
bank's overall adequate financial condition and moderate market
position, its ratings are highly influenced by the Argentina 'CC'
Foreign Currency IDR, and OE risks clearly skewed to the downside.
The OE remains very challenging due to very weak macroeconomic
factors, triple digit inflation, a severe drought and political
uncertainties during an election year.

Asset Quality is Challenging: Supervielle's NPL ratio has remained
relatively stable since 2020 at around 4%-5%, favored by the high
inflation, higher charge offs and measures taken by the bank to
strengthen collections and make originations more conservative. As
of March 2023, Supervielle's impaired loans to gross loans ratio
was 4.6% (up from 3.9% in December 2022), reflecting the tough
operating environment.

In addition, loan loss reserve coverage declined to 110.1% of NPLs
in March 2023, from 130.3% in December 2022. However, reserves
remained adequate considering that around 76% of the non-performing
commercial loans had tangible collateral, and 56% of retail lending
is in the form of payroll loans or financing to retirees.

Profitability Under Pressure: In late 2022, Supervielle launched a
plan to restore its profitability, which had been negative for the
previous two years. The plan is based on cost efficiencies arising
from the absorption of its consumer finance subsidiary IUDU
Compania Financiera S.A. (IUDU), reducing the bank's staff and
branch network, ending the business of being financial agent of the
province of San Luis, and looking for higher productivity and
cross-selling.

The plan has started to bear fruit and in 1Q23 the bank posted a
net profit after six quarters of losses. As of March 31, 2023, the
bank's ratio of Operating Profit/Risk Weighted Assets (RWA)
improved to 0.4% from negative -2.1% at December 2022. Fitch
expects profitability to remain under pressure in 2023. However,
Fitch believes it should gradually improve throughout 2023 as the
bank's strategic plan yields results.

The bank's capitalization remains adequate as it benefits from the
very low loan growth in recent years. As of March 31, 2023, the
bank's CET1 to risk-weighted assets ratio improved to 14.2%. Fitch
expects Supervielle's capitalization to remain at reasonable levels
as loan growth in the short term will likely be low, but these
levels could gradually decline once loan growth resumes.

Satisfactory Funding and Liquidity Metrics: Supervielle is
currently totally funded through deposits. The bank's loan to
deposits ratio has rapidly decreased over the past few years given
that deposit growth has been faster than loan growth. As of March
2023, the ratio declined to 47.1%, well below the 100-110% range
shown in the recent past.

The bank's liquidity levels are adequate, and the liquidity
coverage ratio (LCR) that has remained above 100%; as of March
2023, the LCR was 108% and the NSFR 138.8%. The immediate liquidity
ratio (cash and equivalents plus short-term central banks
securities divided by total deposits) was high at 46.6% of total
deposits as of March 2023, while only cash and equivalents
represented 9.8% of deposits.

RATING SENSITIVITIES

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

-- Supervielle's IDRs and VR would be pressured by a downgrade of
Argentina's sovereign rating or a deterioration in the local
operating environment beyond current expectations that leads to a
significant deterioration in its financial profiles;

-- Any policy announcements that would be detrimental to the
banks' ability to service their obligations, including a tightening
of capital controls to the extent that they restrict debt payments,
would be negative for creditworthiness.

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

-- The IDRs and VR would benefit from an upgrade of Argentina's
sovereign rating.

OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS

Government Support Rating: Supervielle's GSR of 'no support' (ns)
reflects Fitch's view that despite the bank's moderate franchise,
government support cannot be relied upon given constraints on the
government's ability to provide support.

OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES

Changes in Supervielle's GSR are unlikely in the medium term given
Argentina's low sovereign rating.

VR ADJUSTMENTS

-- The VR of 'ccc-' has been assigned below the 'ccc' implied VR
due to the following adjustment reasons: Operating
Environment/Sovereign Rating Constraint (negative).

-- The Operating Environment score of 'ccc-' has been assigned
below the 'bb' implied score due to the following adjustments
reasons: Sovereign Rating (negative) and Macroeconomic Stability
(negative).

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Financial Institutions and
Covered Bond issuers have a best-case rating upgrade scenario
(defined as the 99th percentile of rating transitions, measured in
a positive direction) of three notches over a three-year rating
horizon; and a worst-case rating downgrade scenario (defined as the
99th percentile of rating transitions, measured in a negative
direction) of four notches over three years. The complete span of
best- and worst-case scenario credit ratings for all rating
categories ranges from 'AAA' to 'D'. Best- and worst-case scenario
credit ratings are based on historical performance.

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

Banco Supervielle S.A. has an ESG Relevance Score of '4' for
Management Strategy, which has a moderately negative impact on the
credit profile, and is relevant to the ratings in conjunction with
other factors. The '4' score reflects the high level of government
intervention in the Argentine banking sector. The imposition of
interest rate caps can lead to inadequate loan pricing and,
together with the imposition of interest rate floors on time
deposits, puts significant pressure on banks' net interest margins.
Also, restrictions on fee levels can negatively affect performance
ratios. This challenges the ability of these financial institutions
to define and execute their own strategies.

Except for the matters discussed, the highest level of ESG credit
relevance is a score of '3', unless otherwise disclosed in this
section. A score of '3' 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.
Fitch's ESG Relevance Scores are not inputs in the rating process;
they are an observation on the relevance and materiality of ESG
factors in the rating decision.



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

BRADSEG PARTICIPACOES: Fitch Raises IDRs to 'BB+'; Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has upgraded the Long-Term Local Currency Issuer
Default Ratings (IDR) of Bradseg Participacoes S.A. to 'BB+' from
'BB'. The Rating Outlook is Stable.

The upgrade of Bradseg's rating reflects Fitch's action on the
Local Currency Long-Term IDR of its parent company, Banco Bradesco
S.A. (Bradesco, Long-Term Local Currency IDR 'BB+'/Stable)
following the upgrade of Brazil's sovereign ratings.

KEY RATING DRIVERS

Support-Driven Ratings: Bradseg's IDRs are aligned with the ratings
of its parent, Bradesco. The Outlook for Bradseg's IDR mirrors
Bradesco's, which is one notch above Brazil's sovereign ratings
(BB/Stable). Fitch has upgraded Bradesco's IDRs to 'BB+', which are
now one notch above the sovereign level, reflecting their fairly
diversified and very strong credit profile; their historical
resilience, performing as a safe haven in periods of economic
uncertainty; and the significant role the bank play in the
Brazilian financial system.

Core Subsidiary: Fitch considers BradSeg a core subsidiary of
Bradesco. This reflects the strategic importance of its insurance
operations, common branding and BradSeg's high contribution to
group profits, with an average of 27.1% from 2019 through 2022.

Robust Market Position: The rating also reflects the company's
leading position, consistent performance and diversified revenue
base. Bradseg had a leading position and overall market share of
approximately 22.5% as of September 2022. The rating also consider
the company's strong distribution capacity, underpinned by the wide
branch network of its parent, good performance and comfortable
capitalization ratios.

RATING SENSITIVITIES

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

-- Bradseg' IDR has limited upside potential, as it is equalized
to that of Banco Bradesco, the ratings of which are constrained by
its operating environment. Over the medium term, the ratings could
benefit from stabilization and eventual improvement of Fitch's
assessment of the operating environment for Brazilian banks.

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

-- Bradseg' rating are linked to that of Banco Bradesco.
Therefore, any negative change in the bank's ratings would affect
Bradseg's ratings, as would a change in its willingness to provide
support, which Fitch considers highly unlikely.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Financial Institutions and
Covered Bond issuers have a best-case rating upgrade scenario
(defined as the 99th percentile of rating transitions, measured in
a positive direction) of three notches over a three-year rating
horizon; and a worst-case rating downgrade scenario (defined as the
99th percentile of rating transitions, measured in a negative
direction) of four notches over three years. The complete span of
best- and worst-case scenario credit ratings for all rating
categories ranges from 'AAA' to 'D'. Best- and worst-case scenario
credit ratings are based on historical performance.

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.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

Bradseg's rating is directly linked to the IDR of Banco Bradesco,
the ultimate parent company.

BRAZIL: Mercosur Meets on Counterproposal for Trade Talks with EU
-----------------------------------------------------------------
globalinsolvency.com, citing Reuters, reports that South American
trade bloc Mercosur officials met to agree on their counterproposal
to a European Union addendum on a long-awaited trade deal before
meeting with EU negotiators in August in the hopes of closing the
accord by year-end, Brazilian diplomats.

The four-nation Mercosur will seek to unify its positions to
respond to the EU on environmental additions the European body made
to the trade deal, said Brazil's foreign ministry, where the talks
are being held, according to the report.  

Brazil felt targeted by a "side letter" the EU added early this
year to the 2019 deal, requiring environmental guarantees by the
signatories, they said, the report discloses.

The government of President Luiz Inacio Lula da Silva, who has made
bold pledges of environmental stewardship in contrast to his
predecessor, has taken its time to come up with a response, the
report relays.

One diplomat with knowledge of the negotiations said Brazil would
seek compensation for the side letter in the form of increased
quotas for exports to the EU or reduced quotas for European
products sold to Mercosur, 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.

Fitch Ratings upgraded on July 26, 2023, Brazil's Long-Term
Foreign-Currency Issuer Default Rating (IDR) to 'BB', from 'BB-',
with a Stable Outlook. The upgrade reflects better-than-expected
macroeconomic and fiscal performance amid successive shocks in
recent years, proactive policies and reforms that have supported
this, and Fitch's expectation that the new government will work
toward further improvements.
 
In mid-June 2023, S&P Global Ratings, 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+'. 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.
 
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: Selic Cut to 13.25%, Corp. Interest Rates Remain at 20%
---------------------------------------------------------------
Rio Times Online reports that the Central Bank has cut the Selic,
Brazil's key interest rate, to 13.25% annually after almost a year
without changes.

Despite this reduction, corporate loans are likely to continue to
have interest rates around 20%, according to Rio Times Online.

According to the monetary and credit statistics released by the
authority for June 2023, the average interest rate for legal
entities was 23.1% per annum, the report notes.

For individuals, it was even higher at 59.1%, the report relays.

Special checks (133.6% p.a.) and credit cards (104.2% p.a.) have
rates significantly higher than the average for businesses, 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.

Fitch Ratings upgraded on July 26, 2023, Brazil's Long-Term
Foreign-Currency Issuer Default Rating (IDR) to 'BB', from 'BB-',
with a Stable Outlook. The upgrade reflects better-than-expected
macroeconomic and fiscal performance amid successive shocks in
recent years, proactive policies and reforms that have supported
this, and Fitch's expectation that the new government will work
toward further improvements.
 
In mid-June 2023, S&P Global Ratings, 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+'. 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.
 
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).



=========
C H I L E
=========

LATAM AIRLINES: Expects Record 2023 Earnings After Q2 Results Boost
-------------------------------------------------------------------
Fabian Cambero and Gabriel Araujo at Reuters report that LATAM
Airlines expects "record" net earnings in 2023 after posting
stronger second-quarter results and improved forecasts, company
executives said, hoping to bolster investor confidence after the
company's exit from bankruptcy in November.

Speaking at a news conference, the Santiago-based airline's chief
financial officer, Ramiro Alfonsin, said the company (LTM.SN) had
enjoyed a strong first half of the year, according to Reuters.

"Without a doubt we are foreseeing a much better financial
situation and very good profitability in 2023," he told reporters,
the report notes.

The company also raised its 2023 forecasts for adjusted earnings
before interest, taxes, depreciation, amortization, and
restructuring or rent costs (EBITDAR) to between $2.35 billion and
$2.50 billion from $2 billion-$2.2 billion, the report discloses.

It also raised its revenue forecasts for the year to between $11.3
billion and $11.6 billion, from $11 billion-$11.5 billion,
according to its quarterly report filing, the report notes.

Alfonsin added that the company was expecting to hit pre-pandemic
level results for the year and record EBITDAR, the report says.

LATAM Airlines, South America's largest airline, operates units
across the continent, with routes across the world, the report
discloses.

The airline, created out of the 2012 merger of Chilean airline LAN
with Brazilian carrier TAM, was hit hard by the pause in travel
demand caused by the coronavirus pandemic in 2020, leading it to
declare bankruptcy later that year, the report notes.

It came out of bankruptcy protection last November with an $8
billion reorganization plan, the report discloses.

The company posted earlier a second-quarter net profit of $145.25
million, reversing the year-ago loss on increased revenues of $2.63
billion, the report relays.

The appreciation of the Brazilian real meanwhile gave the company a
$26 million boost in revenues, it said in a filing to Chile's stock
market, the report says.

The company's operating result stood at $228.5 million in the
quarter, "driven by good performance in the passenger business" and
improved fuel costs, with operating costs coming in at $2.45
billion, the report notes.

The U.S. Department of Transportation fined the airline for $1
million in May after saying it failed to provide timely refunds to
passengers for U.S. flights, the report discloses.

Available seat kilometers (ASKs), a measure of passenger-carrying
capacity, are forecast to grow 20%-22% this year versus 2022, the
report adds.

             About LATAM Airlines Group

LATAM Airlines Group S.A. -- http://www.latam.com/-- is a
pan-Latin American airline holding company involved in the
transportation of passengers and cargo and operates as one unified
business enterprise. It is the largest passenger airline in South
America.

Before the onset of the COVID-19 pandemic, LATAM offered passenger
transport services to 145 different destinations in 26 countries,
including domestic flights in Argentina, Brazil, Chile, Colombia,
Ecuador and Peru, and international services within Latin America
as well as to Europe, the United States, the Caribbean, Oceania,
Asia and Africa.

LATAM and its 28 affiliates sought Chapter 11 protection (Bankr.
S.D.N.Y. Lead Case No. 20-11254) on May 25, 2020. Affiliates in
Chile, Peru, Colombia, Ecuador and the United States are part of
the Chapter 11 filing.

The Debtors disclosed $21,087,806,000 in total assets and
$17,958,629,000 in total liabilities as of Dec. 31, 2019.

The Hon. James L. Garrity, Jr., is the case judge.

The Debtors tapped Cleary Gottlieb Steen & Hamilton LLP as
bankruptcy counsel, FTI Consulting as restructuring advisor, Lee
Brock Camargo Advogados as local Brazilian litigation counsel, and
Togut, Segal & Segal LLP and Claro & Cia in Chile as special
counsel. The Boston Consulting Group, Inc. and The Boston
Consulting Group UK LLP serve as the Debtors' strategic advisors.
Prime Clerk LLC is the claims agent.

The official committee of unsecured creditors formed in the case
tapped Dechert LLP as its bankruptcy counsel, Klestadt Winters
Jureller Southard & Stevens, LLP as conflicts counsel, UBS
Securities LLC as investment banker, and Conway MacKenzie, LLC as
financial advisor. Ferro Castro Neves Daltro & Gomide Advogados is
the committee's Brazilian counsel.

The ad hoc group of LATAM bondholders tapped White & Case, LLP as
counsel.

Glenn Agre Bergman & Fuentes, LLP, led by managing partner Andrew
Glenn and partner Shai Schmidt, has been retained as counsel to the
ad hoc committee of shareholders.




=======
C U B A
=======

CUBA: Bans Companies From Using ATMs, Limits Cash Transactions
--------------------------------------------------------------
RJR News reports that the Cuban Central Bank has banned state and
private businesses from using ATMs.

It's also limited cash transactions between businesses, according
to RJR News.

This is in a bid to slow inflation amid a grave economic crisis,
the report relays.

Reuters reports that the regulations went into effect August 3,
2023.

They limit cash transactions to 5,000 pesos, and will be
implemented gradually over six months, the report discloses.

The government pegs the dollar at 24 pesos to 1, and for select
companies, tourists and residents at 120 pesos to 1 US dollar, the
report notes.

Cuba's government puts inflation at 45 per cent so far this year,
the report says.

The communist authorities say the decision is in a bid to control
the devaluation of the peso, by taking a series of measures to
promote "banking" in the country and encourage the use of
"electronic payments," the report adds.




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

DOMINICAN REPUBLIC: Some Ministries Funds Will be Reduced in 2023
-----------------------------------------------------------------
Dominican Today reports that the Executive Power has presented a
bill to modify the nation's general budget for the 2023 financial
year.  The proposal includes reallocating funds among different
public entities, resulting in a reduction of 9,118,252,346 pesos
for seven ministries and the chapter on Administration of Public
Debt and Financial Assets, according to Dominican Today.

The ministries most affected by the budget adjustments are
Industry, Commerce and MSMEs with a decrease of 3,884,800,000
pesos, and Debt Administration with 3,011,008,578 pesos, the report
discloses.  Other ministries facing budget reductions include
Tourism, Education, Energy and Mines, Labor, and Youth, the report
notes.

On the other hand, the transferred funds will be distributed by the
Ministry of Finance to various entities, the report says.  The
Presidency of the Republic will receive 5,578,561,412 pesos,
followed by the Ministries of the Interior and Police, and Public
Works and Communications, the report discloses,.  Other ministries
benefiting from the funds include Foreign Relations, Defense,
Agriculture, Culture, Finance, Economy, Higher Education, and the
Ministry of Women, the report notes.

The bill aims to increase capital spending and current spending,
with a focus on investments and projects with a high social impact.
The Ministry of Finance also intends to rethink tax revenue goals
and lower the debt limit approved by Congress, 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.

S&P Global Ratings, in December 2022, raised its long-term foreign
and local currency sovereign credit ratings on the Dominican
Republic to 'BB' from 'BB-'. The outlook on the long-term ratings
is stable. S&P affirmed its 'B' short-term sovereign credit
ratings. S&P also revised its transfer and convertibility (T&C)
assessment to 'BBB-' from 'BB+'.  The stable outlook reflects S&P's
expectation of continued favorable GDP growth and policy continuity
over the next 12-18
months that will likely stabilize the government's debt burden.

In February 2023, S&P said its BB ratings reflect the country's
fast-growing and resilient economy.  It also incorporates the
country's historical political and social challenges in passing
structural reforms to contain fiscal deficits, despite recent
improvements in the electricity sector. The ratings are constrained
by relatively high debt, a hefty interest burden, and limited
monetary policy flexibility.

Fitch Ratings, in December 2022, affirmed the Dominican Republic's
Long-Term Foreign Currency Issuer Default Rating (IDR) at 'BB-'
with a Stable Rating Outlook.

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



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

CUENCA DPR: Fitch Assigns 'B-' Rating to Series 2023-1 Loans
------------------------------------------------------------
Fitch Ratings has assigned a rating of 'B-' to the series 2023-1
loans to be issued by Cuenca DPR and affirmed the outstanding
series 2021-1 loan at 'B-'. The Rating Outlook is Negative.

ENTITY/DEBT            RATING   PRIOR  
----------                     ------          -----
Cuenca DPR

2021-1 G2706*AA4 LT B- Affirmed B-
2023-1   LT B-          New Rating

TRANSACTION SUMMARY

Cuenca DPR will enter into a loan agreement to receive a
disbursement of $35 million as part of an existing future flow
program backed by U.S. dollar-denominated existing and future
diversified payment rights (DPRs) originated by Banco del Austro
S.A. (Austro) of Ecuador. 100% of DPR flows are processed in the
U.S. by Citibank N.A. (Citibank), the sole designated depository
bank (DDB) in this transaction, that executed an account agreement
(AA) irrevocably obligating the bank to make payments to an account
controlled by the transaction trustee.

Fitch's rating addresses timely payment of interest and principal
on a quarterly basis.

KEY RATING DRIVERS

Future Flow Rating Driven by Originator's Credit Quality:

The rating of this future flow transaction is tied to the credit
quality of the originator, Banco del Austro S.A. On May 31, 2023,
Fitch affirmed Austro's Long-Term (LT) Issuer Default Rating (IDR)
at 'CCC+' and Viability Rating (VR) at 'ccc+'. Austro's IDR and VR
are sensitive to its local operating environment, Ecuador
(B-/Negative). On May 23, 2023, Fitch affirmed Ecuador's IDR and
revised its Outlook to Negative from Stable.

Notching Differential Limited by Going Concern Assessment (GCA)
Score:

Fitch uses GCA score to gauge the likelihood that the originator of
a future flow transaction will stay in operation through the
transaction's life. Fitch's Financial Institutions (FI) group
assigns a GCA score of 'GC3' to Austro, which reflects the bank's
position as the seventh largest bank in Ecuador by total assets
with a market share of around 4% as of March 2023. Although
Austro's business model is adequately diversified, it does not have
any relevant product leadership position within Ecuador, which is
also reflected in the GCA score.

Several Factors Limit Notching Uplift from IDR:

The 'GC3' score allows for a maximum uplift of two notches from the
bank's IDR, pursuant to Fitch's future flow methodology. However,
uplift is tempered to one notch from Austro's IDR due to factors
mentioned, including high future flow debt to non-deposit funding
and DDB concentration risk, among others.

High Future Flow Debt Relative to Balance Sheet:

Fitch estimates future flow debt will represent approximately 5.2%
of Austro's total funding and around 52% of non-deposit funding
when considering the bank's balance sheet as of March 2023, the
outstanding series 2021 loan as of June of 2023, and the $35
million series 2023 loan. Fitch does not allow the maximum uplift
for originators that have future flow debt greater than 30% of the
overall non-deposit funding. Nevertheless, given the benefits of
the proposed structure and quality of flows, Fitch allows for some
differentiation (one-notch) from Austro's LT IDR.

Coverage Levels Commensurate with Assigned Rating:

When considering average rolling quarterly DDB flows over the last
five years (June 2018 - May 2023) and the maximum periodic debt
service over the life of the program, including Fitch's interest
rate stress, the projected quarterly debt service coverage ratio
(DSCR) is 22.3x. Additionally, the transaction can withstand a
decrease in flows of 95.5% and still cover the proposed maximum
quarterly debt service obligation. Nevertheless, Fitch will
continue to actively monitor the performance of the flows.

Structure Reduces Potential Redirection/Diversion Risk:

The structure mitigates certain sovereign risks by collecting cash
flows offshore until collection of the periodic debt service
amount. In Fitch's view, diversion risk is partially mitigated by
the AA signed by the sole DDB (Citibank) in the transaction.
However, as Citibank processes 100% of DPR flows, Fitch believes
this exposes the transaction to a higher degree of diversion risk
relative to other Fitch-rated DPR programs in the region, limiting
the overall notching differential.

RATING SENSITIVITIES

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

The transaction's ratings are sensitive to changes in the credit
quality of Austro. A deterioration of the credit quality of Austro
by one notch would pose a constraint to the rating of the
transaction from its current level.

The transaction's ratings are also sensitive to the ability of the
DPR business line to continue operating, as reflected by the GCA
score, and a change in Fitch's view on the bank's GCA score could
lead to a change in the transaction's rating.

Additionally, the transaction's rating is sensitive to the
performance of the securitized business line. The expected
quarterly DSCR is approximately 22.3x, which includes Fitch's
interest rate stress, and should therefore be able to withstand a
significant decline in cash flows in the absence of other issues.
However, significant further declines in flows could lead to a
negative rating action. Fitch will analyze any changes in these
variables in a rating committee to assess the possible impact on
the transaction ratings.

No company is immune to the economic and political conditions of
its home country. Political risks and the potential for sovereign
interference may increase as a sovereign's rating is downgraded.
However, the underlying structure and transaction enhancements
mitigate these risks to a level consistent with the assigned
rating.

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

The main constraint to the program rating is the originator's
rating and Austro's operating environment. If upgraded, Fitch will
consider whether the same uplift could be maintained or if it
should be further tempered in accordance with criteria.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Structured Finance
transactions have a best-case rating upgrade scenario (defined as
the 99th percentile of rating transitions, measured in a positive
direction) of seven notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of seven notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings
are based on historical performance.

USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10

Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.

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.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

The future flow rating is driven by the credit risk of Austro as
measured by its LT IDR.

REPRESENTATIONS, WARRANTIES AND ENFORCEMENT MECHANISMS

A description of the transaction's representations, warranties and
enforcement mechanisms (RW&Es) that are disclosed in the offering
document and which relate to the underlying asset pool was not
prepared for this transaction. Offering Documents for this market
sector typically do not include RW&Es that are available to
investors and that relate to the asset pool underlying the trust.
Therefore, Fitch credit reports for this market sector will not
typically include descriptions of RW&Es. For further information,
please see Fitch's Special Report titled 'Representations,
Warranties and Enforcement Mechanisms in Global Structured Finance
Transactions'.

ESG CONSIDERATIONS

The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' 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. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.



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

CARIBBEAN CEMENT: 6-Month Earnings Fall
---------------------------------------
Jamaica Observer reports that high cost attributed to a scheduled
annual maintenance exercise done during the first quarter sent
operational earnings and six months profit falling for cement
manufacturer Carib Cement at the end of June.

For the reporting period, net profit, which amounted to $2.4
billion, was approximately 20 per cent below the $3 billion earned
for the half-year mark in 2022, according to Jamaica Observer.
Operating earnings for the period also fell by about 24 per cent to
total $3.6 billion when compared to the $4.8 billion seen for last
year's period, the report notes.

Quarterly out-turns, on the other hand, went up by almost $705
million above the previous year's quarter to close at $2.2 billion,
the report relays.  Total assets for the period rose to $31.5
billion, the report notes.

"For the second quarter, the group started to realise the benefits
from its first-quarter investment in maintenance efforts, as
evidenced by the operational efficiencies and operative cost
containment experienced in the second quarter," the company's
directors said in notes accompanying its latest financial, noting
the increases as being 34 per cent above the corresponding quarter
of 2022, the report says.

The country's sole cement manufacturing company hopes to continue
in taking advantage of the growth in construction activities across
the country and said it remains optimistic about future
performances, even as it undertakes the implementation of some
requisite business strategies to ensure the sustainability of
operations, the report discloses.

"The company remains optimistic about its financial position,
buoyed by the large number of real estate developments slated to
come on stream, especially in the parishes of Trelawny and St
James," the report signed by Chairman Parris Lyew-Ayee and Managing
Director Yago Castro stated, the report relays.

"Furthermore, recent pronouncements about the new high-end tourism
developments in the eastern part of the island, which feature
premium villas, will augur well for the company," it continued, the
report discloses.

With the advancement of infrastructural projects including the
Southern Coastal Highway and the Morant Bay Urban Centre, the St
Thomas and Portland corridor is primed to become the new exciting
frontier for tourism development in the country, luring a number of
new property and other real estate development in that part of the
island and others adjoining, the report says.

The cement company, which has been benefiting greatly from the boom
in construction activities, has through a multimillion-dollar
concrete road programme also been integral in improving a number of
road networks in various communities across the island, the report
notes.

"The company will continue to carry out its flagship concrete road
solution programme, with several communities slated to benefit from
the intervention in short order," the report also said, notes
Jamaica Observer.

                     About Caribbean Cement

Caribbean Cement Company Limited, together with its subsidiaries,
manufactures and sells cement and clinker in Jamaica and other
Caribbean countries. The company was incorporated in 1947 and is
based in Kingston, Jamaica.  

As reported in the Troubled Company Reporter-Latin America on
August 16, 2021, Jamaica Observer said that after enduring years
of sluggish results and a mountain of debt, Caribbean Cement
has shrunk its long-term debt from $11.39 billion in 2018 to
$500 million as at June 30, 2021.  At the same time, the company
reported $3.09 billion in net profit over the six months which
ended June 30. Its profit for all of 2020 was $3.2 billion.
The performance is coming off a challenging decade for the
cement producer which included four consecutive years of losses
from 2009 to 2013.


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