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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, November 2, 2023, Vol. 24, No. 220

                           Headlines



A R G E N T I N A

ARGENTINA: Central Bank to Hold Interest Hike on Election Surprise
ARGENTINA: Zimbabwe Cedes Highest Interest Rate Title to Country


B R A Z I L

BRAZIL: Fast Aging Population Raises Economic Worries
MINAS GERAIS: S&P Affirms 'CCC+' LongTerm ICRs, Outlook Stable


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: People Were Able to Move More Money in October
DOMINICAN REPUBLIC: Poverty Does Not Relent in Times of Prosperity

                           - - - - -


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A R G E N T I N A
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ARGENTINA: Central Bank to Hold Interest Hike on Election Surprise
------------------------------------------------------------------
globalinsolvency.com, citing Reuters, reports that Argentina's
central bank is planning to hold fire for now on any major policy
adjustments after a shock win for the Peronist government in a
general election, two bank sources said, a sharp contrast to rapid
moves after an August primary.

Economy Minister Sergio Massa outperformed in a first round
election to take pole position ahead of a run-off vote this
November where he will face radical libertarian Javier Milei, who
wants to dollarize the economy and shut the central bank, according
to globalinsolvency.com.

"I don't see it on the BCRA's (central bank) agenda," one of the
sources said to Reuters when asked about a potential hike to the
benchmark interest rate from the current 133% level, set to help
boost the peso and temper triple-digit annual inflation.  The bank
had sharply hiked the rate and devalued the peso currency after
Milei, a right-wing outsider, sent shockwaves through the country
by winning an August open primary vote, the report notes.

                      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.

The IMF's executive board completed on August 23, 2023, the fifth
and six reviews of Argentina's 30-month Extended Fund Facility
(EFF), and approved a US$7.5-billion disbursement to Argentina as
part of the larger program, which refinances payments Argentina
owes the institution from a previous bailout that failed to
stabilize the economy in 2018. Argentina would receive another IMF
disbursement in November of about US$2.75 billion pending another
staff-level agreement and board approval.

S&P Global Ratings, on June 13, 2023, raised its local currency
sovereign credit ratings on Argentina to 'CCC-/C' from 'SD/SD' and
0its national scale rating to 'raCCC+' from 'SD'. S&P also affirmed
its 'CCC-/C' foreign currency sovereign credit ratings on
Argentina. The outlook on the long-term ratings is negative. S&P's
'CCC-' transfer and convertibility assessment is unchanged. None of
its rated bond issues are affected.

S&P said the negative outlook on the long-term ratings is based on
the risks surrounding pronounced economic imbalances and policy
uncertainties before and after the 2023 national elections.
Divisions within the government coalition, and infighting among the
opposition, constrain the sovereign's ability to implement timely
changes in economic policy.

Fitch Ratings also upgraded on June 13, 2023, Argentina's Long-Term
Foreign Currency (FC) Issuer Default Rating (IDR) to 'CC' from
'C'and affirmed the Long-Term Local Currency (LC) IDR at 'CCC-'.
Fitch typically does not assign Outlooks to sovereigns with a
rating of 'CCC+' or below.

The upgrade of the FC IDR reflects that Fitch no longer deems a
default-like process to have begun, as the authorities have not
signaled a clear intention to follow through with an intra-public
debt swap announced in March. The new 'CC' rating signals a default
event of some sort appears probable in the coming years, regardless
of the outcome of upcoming elections. The affirmation of the LC IDR
at 'CCC-' follows the peso debt swap in June that Fitch did not
deem to be a "distressed debt exchange" (DDE).

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.


ARGENTINA: Zimbabwe Cedes Highest Interest Rate Title to Country
----------------------------------------------------------------
globalinsolvency.com, citing Bloomberg News, reports that Zimbabwe
gave up its unenviable position of having the world's highest
interest rate to Argentina, after slashing borrowing costs to help
boost economic growth.

The monetary policy committee cut the benchmark interest rate to
130% from 150%, which lags Argentina's 133%, according to
globalinsolvency.com.

The MPC acted because of "emerging global risks and the need to
keep exchange rate and inflation expectations anchored to support
economic growth," Governor John Mangudya said in an emailed
statement.

"Subdued global growth emanating from geo-economic fragmentation
and the effects of tight monetary policy, high interest rates,
credit squeeze and low international commodity prices could pose
significant risks to the current stability in the domestic
economy," he said, the report notes.

Unlike Argentina, which raised borrowing costs by 15 percentage
points to 133% on Oct. 12 to curb price growth that's running at
138%, government interventions in Zimbabwe have enabled it to cut
rates, the report adds.

                      About Argentina

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

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

The IMF's executive board completed on August 23, 2023, the fifth
and six reviews of Argentina's 30-month Extended Fund Facility
(EFF), and approved a US$7.5-billion disbursement to Argentina as
part of the larger program, which refinances payments Argentina
owes the institution from a previous bailout that failed to
stabilize the economy in 2018. Argentina would receive another IMF
disbursement in November of about US$2.75 billion pending another
staff-level agreement and board approval.

S&P Global Ratings, on June 13, 2023, raised its local currency
sovereign credit ratings on Argentina to 'CCC-/C' from 'SD/SD' and
0its national scale rating to 'raCCC+' from 'SD'. S&P also affirmed
its 'CCC-/C' foreign currency sovereign credit ratings on
Argentina. The outlook on the long-term ratings is negative. S&P's
'CCC-' transfer and convertibility assessment is unchanged. None of
its rated bond issues are affected.

S&P said the negative outlook on the long-term ratings is based on
the risks surrounding pronounced economic imbalances and policy
uncertainties before and after the 2023 national elections.
Divisions within the government coalition, and infighting among the
opposition, constrain the sovereign's ability to implement timely
changes in economic policy.

Fitch Ratings also upgraded on June 13, 2023, Argentina's Long-Term
Foreign Currency (FC) Issuer Default Rating (IDR) to 'CC' from
'C'and affirmed the Long-Term Local Currency (LC) IDR at 'CCC-'.
Fitch typically does not assign Outlooks to sovereigns with a
rating of 'CCC+' or below.

The upgrade of the FC IDR reflects that Fitch no longer deems a
default-like process to have begun, as the authorities have not
signaled a clear intention to follow through with an intra-public
debt swap announced in March. The new 'CC' rating signals a default
event of some sort appears probable in the coming years, regardless
of the outcome of upcoming elections. The affirmation of the LC IDR
at 'CCC-' follows the peso debt swap in June that Fitch did not
deem to be a "distressed debt exchange" (DDE).

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

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




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B R A Z I L
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BRAZIL: Fast Aging Population Raises Economic Worries
-----------------------------------------------------
Oliver Mason at Rio Times Online reports that Brazil's population
is aging rapidly, with 10.9% aged 65 or older in 2022, a rise from
7.4% in 2010, leading to economic worries.

Demographer Izabel Marri says Brazil is aging much quicker than
developed countries, according to Rio Times Online.

                          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 Inc., on August 15, 2023, upgraded Brazil's Long-Term
Foreign and Local Currency - Issuer Ratings to BB from BB (low).
At the same time, DBRS Morningstar confirmed Brazil's
Short-term Foreign and Local Currency - Issuer Ratings at R-4.
The trend on all ratings is Stable (March 2018).


MINAS GERAIS: S&P Affirms 'CCC+' LongTerm ICRs, Outlook Stable
--------------------------------------------------------------
S&P Global Ratings, on Oct. 30, 2023, affirmed its long-term 'CCC+'
foreign and local currency issuer credit ratings on the state of
Minas Gerais.  S&P also affirmed its 'brBB' national scale rating.
The outlook on both scales is stable.

Outlook

S&P said, "The stable outlook on Minas Gerais reflects our
expectation that the state will continue to enjoy substantial debt
relief. We expect piecemeal progress at approving the pending
legislation necessary to assure legal certainty of its debt relief
under the FRR and gradually improve its fiscal profile."

Downside scenario

S&P could lower its ratings on the state of Minas Gerais in the
next 12 months if the state stops receiving debt relief from
central government, which could happen if it fails to pass the
necessary legislation to balance its finances and formally join the
FRR.

Upside scenario

S&P could upgrade the state of Minas Gerais in the next 12 months
if the state's fiscal profile prospects improve, which could stem
from the local assembly passing legislation that will support
fiscal sustainability allowing the state to continue to benefit
from debt relief under the FRR.

Rationale

S&P said, "The affirmation reflects our view that Minas Gerais'
fiscal profile is unsustainable in the long term because it still
needs to pass additional legislation to assure a positive fiscal
trajectory and submit to terms of the FRR to continue beneffiting
from its debt relief. Our 'CCC+' global scale ratings on Minas
Gerais balance our expectation of timely repayments of debt with
the fragile long-term fiscal profile, including still weak cash
flows and liquidity, as well as high debt. In our opinion, the
state's creditworthiness will be at risk of default if it doesn't
implement a consistent fiscal plan."

Important steps taken to continue to benefit from the FRR, but
additional measures are still required to support long-term fiscal
sustainability

A favorable ruling of the Brazil's Supreme Federal Court allowed
the state to temporarily join the FRR and benefit from significant
debt relief. Then, the central government approved the state's
proposed fiscal consolidation plan, a mandatory condition to
participate formally in the FRR. However, the state has yet to
approve legislation to assure legal certainty of debt relief by
remaining in the FRR. It also hasn't yet approved the
implementation of fiscal measures including a spending cap, which
are key requirements to continue receiving debt relief under the
FRR and to follow its fiscal plan. Without the approval of the
local legislature, the Supreme Court ruling that allowed the state
to benefit from debt relief under the FRR expires in December
2023.

As a result, the discussion on the bill to remain in the FRR has
resumed in the local legislature, and we expect other pending
legislation key to the FRR consolidation plan to be submitted,
including an expenditure ceiling. S&P believes that the re-election
of Governor Romeu Zema and his efforts to broaden his political
coalition improves prospects of ratifying the FRR before December
2023 deadline. Nonetheless, the divided local legislative will
still make negotiations to approve the required fiscal measures
difficult.

If Minas Gerais fulfills all the requirements to ratify the FRR,
the federal government will continue to repay the state's
guaranteed debt in full on the due date, and reschedule
intergovernmental obligations. The federal government will also be
precluded from activating counter-guarantees to recoup guaranteed
or rescheduled debt service, which would occur under normal
circumstances. Then, the state's share of the debt service will be
paid directly to the central government according to the gradual
phasing out of the debt service relief.

In addition to the bill to join the FRR, a legislation to
facilitate privatizations was submitted to the state assembly to
streamline the government structure and convert assets to fund the
projected short-term deficits. Nevertheless, the administration
will need to garner political support to pass and implement
unpopular fiscal measures.

Fiscal performance is likely to worsen in the short term as
salaries increase amid lagging economic growth and the rigid
intergovernmental system

S&P estimates an average operating surplus of 2% of operating
revenues and deficit after capital expenditures of 3% of total
revenues in 2023-2025, compared to the average 7.5% and 2%
surpluses, respectively, posted in 2020-2022. Its forecast assumes
debt relief benefits, which combined with effects of fiscal
measures picking up steam, starting in 2025 will gradually narrow
the currently high cash flow slippage.

S&P said, "That said, our forecast also incorporates the 2022
national congress bill to reduce the tax rates on essential items
of consumption, as well as the 2023 national congress increases to
nurses' and teachers' minimum salaries. Moreover, the state
proposes a general increase to salaries in 2024. We also view Minas
Gerais' unfunded pension system as one of its key budgetary
constraints. Pension fund deficits are still high despite the
approval of the 2020 pension reform. We expect annual pension fund
deficits to remain large and in line with 20% of operating revenue,
as in 2022."

A potential spending ceiling would help restrain spending growth,
but the mandatory nature of Minas Gerais' expenditures (estimated
at 95% of the total expenditures), which is also indexed or linked
to revenue collection, will represent structural challenges.

S&P said, "We think liquidity will remain structurally weak. The
state lacks free cash and has a negative short-term cash flow
capacity, leading to a very low expected debt service coverage
ratio. Moreover, the state has no access to new financing, and we
expect accounts payable and unfulfilled budgetary commitments to
grow as a source for financing the projected fiscal deficits.

"Despite restrictions on new debt instruments, low debt service
will result in high debt levels for the forecast period. We
incorporate the share of debt service rescheduled through FRR debt
relief into Minas Gerais' debt stock, and account for the Brazilian
real's depreciation trajectory over its foreign exchange debt and
the monetary update coefficient for the largest share of debt,
which it owes to federal government. Considering this, we forecast
Minas Gerais' debt at about 185% of operating revenues in
2023-2025. Interest payments will be about 3% of operating revenues
during the same period, as the state benefits from the central
government's extraordinary support.

"We estimate that the state's GDP per capita will be $8,400 for
2023, compared with Brazil's $9,800. Minas Gerais' economy output
is significant to Brazil, contributing about 10% to the national
GDP. Most of the state's economy is based on the services sector,
but mining activities have important indirect effects. We expect
Minas Gerais' economy to perform generally in line with the
sovereign's in 2023-2025: we expect the state's real GDP growth of
about 3.0% in 2023, but to average 1.5% in 2024-2025.

"We assess the Brazilian local and regional governments' (LRGs)
institutional framework as volatile and unbalanced. Structural
rigidities of Brazil's intergovernmental system have prevented
local and regional governments (LRGs) from reaching balanced fiscal
accounts. Nonetheless, we believe the system continues to have some
degree of predictability and transparency, with enhanced oversight
over LRGs' finances and adherence to fiscal discipline."

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the methodology
applicable. At the onset of the committee, the chair confirmed that
the information provided to the Rating Committee by the primary
analyst had been distributed in a timely manner and was sufficient
for Committee members to make an informed decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

The committee's assessment of the key rating factors is reflected
in the Ratings Score Snapshot above.

The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision. The
views and the decision of the rating committee are summarized in
the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.

  Ratings List

  RATINGS AFFIRMED

  MINAS GERAIS (STATE OF)

  Issuer Credit Rating      CCC+/Stable/--

  Brazil National Scale     brBB/Stable/--




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D O M I N I C A N   R E P U B L I C
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DOMINICAN REPUBLIC: People Were Able to Move More Money in October
------------------------------------------------------------------
Dominican Today reports that as of October 20, 2023, Dominicans had
RD$71,049.9 million more to mobilize in the market, either in their
accounts through bank transfers or in their hands, compared to the
exact date of the previous year, because the monetary aggregate
known as the Circulating Medium (M1) went from RD$66,766.5 million
to RD$77,816.6 million.

The M1 is the most liquid mechanism of the use of money since it is
the money that people have in their hands or forms of payment
through transfers or checks and checking accounts, according to
Dominican Today.

The figures published by the Central Bank, however, show that the
way of moving money in the economy has changed with the
technological advances that allow the availability of monetary
resources for quick transfers, the report notes.

The money in the hands of the people decreased between September
and October this year by RD$1,059.71 million, as well as the bills
and coins, the report relays.  Still, the transferable deposits in
national currency grew by RD$3,765.5 million, which means that
liquid money can be mobilized because it is available, the report
discloses.

In addition, in general, money, in a broad sense, grew by
RD$1,952.4 million in October of this year, the report says.

The money that moves an economy is identified with the letter M,
and the numbers 1 to 3 are added as the monetary mass grows, the
report notes.  For example, M2, known as expanded money supply,
includes M1 and other deposits in national currency, as well as
securities issued by OSD (Other Depository Corporations), generally
financial institutions, and by the Central Bank, the report says.

M3 or broad money includes the expanded money supply (M2) and other
deposits and securities issued in foreign currency, the report
relays.

In his most recent activity, on the occasion of the 76th
anniversary of the Central Bank, the governor of the monetary
institution, Hector Valdez Albizu, indicated that as a result of
liquidity facility measures of rapid placement in households and
productive sectors, RD$126,000 million were channeled to
consumption, commerce, MSMEs, housing, construction, manufacturing,
agriculture, and others, the report discloses.

In addition, in October, the Monetary Board ordered a new rapid
liquidity facility for RD$40 billion to the construction,
manufacturing, export, and agricultural sectors, of which, as of
October 19, the financial system had channeled some RD$13.735
billion, the report says.

He assured that as a result of these measures, in September, there
were already expansions in the monetary aggregates, "specifically
the circulating medium M1, which registered an inter-annual growth
of 11.2% in September," the report notes.

He stressed that the expanded money supply M2, which includes
longer-term deposits, grew by 17 %, while broad money, M3, which
encompasses M2 and other foreign currency deposits, expanded by 14.
6 % in September of this year, 2023, 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.

TCR-LA reported in April 2019 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.

On August 14, 2023, the TCR-LA reported that Moody's Investors
Service has changed the outlook on the Government of Dominican
Republic's ratings to positive from stable and affirmed the local
and foreign-currency long-term issuer and senior unsecured ratings
at Ba3.  Moody's said the key drivers for the outlook change to
positive  are: (i) sustained high growth rates have enhanced the
scale and wealth levels of the economy; and (ii) a material decline
in the government debt burden coupled with improved fiscal policy
effectiveness will support medium-term debt sustainability.

The affirmation of the Ba3 ratings balances the Dominican
Republic's strong economic growth dynamics and relatively contained
susceptibility to event risks, with a comparatively weaker fiscal
position, reflecting long-standing credit challenges which include:
(i) a shallow revenue base compared to peers, (ii) weak debt
affordability metrics, and (iii) high exposure to foreign currency
borrowing.

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.


DOMINICAN REPUBLIC: Poverty Does Not Relent in Times of Prosperity
------------------------------------------------------------------
Dominican Today reports that in the Dominican Republic economy,
some mechanisms hinder income distribution during boom times, and
the wealthiest 1% concentrates the wealth.

Social inequality has become structural in the Dominican economy,
affirms Rosa Canete Alonso in a special publication by the
Dominican Academy of Sciences with works of thirteen economists on
different topics, according to Dominican Today.

She points out that in the Dominican economy, there are mechanisms
that hinder the distribution of income during times of prosperity,
to the point that in some years, the GDP grows, and poverty also
grows, the report notes.

This has made the Dominican Republic the number one among the
countries of Latin America and the Caribbean, where the wealthiest
1% concentrates most of the national income, and it is also the
third in the world, only behind Mozambique and the Central African
Republic, the report relays.

The economist reveals that an analysis of elasticities showed that
if inequality in the country had been reduced at the same levels at
which income increased from 2016 to 2021, the decrease in monetary
poverty would have been at least double that observed in 2021, the
report discloses.

That is, it would have been reduced by 9.5 percentage points
instead of 4.8 percentage points.

In contrast, a 10% increase in household income would reduce
poverty by 19.7%, and a 10% reduction in inequality would result in
a 27% reduction in poverty, the report discloses.

Inequality limits economic growth and affects society as a whole.
The International Monetary Fund (IMF) calculates in a sample of 156
countries that if the percentage of total income received by people
with low incomes and the middle class increases, the economy grows,
the report relays.  On the other hand, if the percentage of income
captured by the wealthiest increases, the economy of that country
shrinks, the report says.

He also states that a simple regression analysis based on quarterly
data from the Continuous National Labor Force Survey (ENCFT)
indicates that in the Dominican Republic if the share of income
received by the poorest population (quintile 1) in the Dominican
Republic increases, the national average household income also
increases, the report discloses.  If only the share of income
received by the richest (quintile 5) increases, the average income
would decrease, although in this case, with a very low statistical
significance, 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.

TCR-LA reported in April 2019 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.

On August 14, 2023, the TCR-LA reported that Moody's Investors
Service has changed the outlook on the Government of Dominican
Republic's ratings to positive from stable and affirmed the local
and foreign-currency long-term issuer and senior unsecured ratings
at Ba3.  Moody's said the key drivers for the outlook change to
positive  are: (i) sustained high growth rates have enhanced the
scale and wealth levels of the economy; and (ii) a material decline
in the government debt burden coupled with improved fiscal policy
effectiveness will support medium-term debt sustainability.

The affirmation of the Ba3 ratings balances the Dominican
Republic's strong economic growth dynamics and relatively contained
susceptibility to event risks, with a comparatively weaker fiscal
position, reflecting long-standing credit challenges which include:
(i) a shallow revenue base compared to peers, (ii) weak debt
affordability metrics, and (iii) high exposure to foreign currency
borrowing.

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.



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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
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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.

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