/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/231108.mbx 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 Wednesday, November 8, 2023, Vol. 24, No. 224 Headlines A R G E N T I N A ARGENTINA: Makes US$2.6-Billion IMF Payment as Reserves Drop ARGENTINA: Oil Workers to Strike, Blame Companies for Lack of Fuel ARGENTINA: Will Freeze Fuel Levies Until February 2024 B R A Z I L BRAZIL: Struggles to Grow Fruit Exports CIELO SA: Fitch Hikes LongTerm IDRs to 'BB+', Outlook Stable C O S T A R I C A COSTA RICA: Moody's Hikes Issuer Ratings to B1, Outlook Positive J A M A I C A JAMAICA: Government Seeks Investment for New Agro Parks P E R U UNACEM CORP: S&P Affirms 'BB' ICR & Alters Outlook to Stable P U E R T O R I C O PUERTO RICO: Dechert LLP Updates Rule 2019 Statement SAN JORGE CHILDREN'S: Hires IEC as Investment Consultant - - - - - ================= A R G E N T I N A ================= ARGENTINA: Makes US$2.6-Billion IMF Payment as Reserves Drop ------------------------------------------------------------ Patrick Gillespie & Manuela Tobias at Bloomberg News report that Argentina has paid the International Monetary Fund US$2.6 billion, complying with major maturities before the presidential run-off election November 19, according to two people with direct knowledge of the matter. The government, led by ruling coalition presidential candidate and Economy Minister Sergio Massa, paid the IMF as the Central Bank reported reserves fell to US$21.9 billion, the lowest level since 2006, according to Bloomberg News. With the payment, Argentina avoids falling into arrears - a worst case scenario - on its US$43-billion IMF programme, the lender's largest, Bloomberg News notes. With razor-thin level of liquid cash reserves, Argentina tapped a currency swap line from China and the remaining amount of IMF special drawing rights (SDRs) from an August disbursement to make the payment, according to one of the people, Bloomberg News relays. It remained unclear how much of the China swap Argentina had spent to make the IMF payment. Argentine officials confirmed earlier this month that China approved them using another US$6.5 billion from the US$18-billion swap line, Bloomberg News says. Argentina owes the IMF another US$1.77 billion across principal and interest payments in November and December, according to the IMF's website Bloomberg News notes. Massa has made IMF payments at the final minute a few times this year by using various loans and currencies, illustrating Argentina's lack of dollars that are putting pressure on the peso and unsustainable currency controls, Bloomberg News discloses. The government's dollar shortage spearheaded another controversy in recent days as long lines of cars lined up around gas stations short on petrol in part because the government hadn't paid tankers anchored off the Argentine coast waiting with fuel, Bloomberg News says. Massa faces off against outsider candidate Javier Milei in the definitive November run-off vote where the future of Argentina's IMF deal is on the line after Massa has failed to meet the key targets this year, Bloomberg News 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. ARGENTINA: Oil Workers to Strike, Blame Companies for Lack of Fuel ------------------------------------------------------------------ Buenos Aires Times reports that the Oil and Private Gas Union of Rio Negro, Neuquen and La Pampa announced a total strike in support of Segio Massa's measures, in order to normalise the sale of fuel, while accusing companies of the sector of "punishing Argentines" and warned that "time's up for speculators." "In addition to unconditionally backing the closing of exports announced by Massa, if the companies continue to punish Argentines our union will start a total strike affecting production," the union announced via a press release obtained by the news agency. The union expressed "its full support for the measures established by Economy minister Sergio Massa to normalize the fuel sales sector across the nation and the announcement of an increase in the biofuel cuts in petrol and diesel oil," according to Buenos Aires Times. Moreover, they pointed out that "it must be made clear that operators, refiners and exporters are not complying with the scope of National Law 17,319 which advocates self-supply and helps export the remainder with significant profits, the report relays. On the other hand, the union believed that "it makes no sense to permanently speak of record production and have a shortage of fuel at the same time," the report notes. "Us workers know about sacrifices and effort to keep the country standing. Day after day we put our bodies on the line to break those records in spite of everything we've been through. And we see profits always going to the same people: those who are speculating now and show their true colours: greed", they added. "Electoral matters and corporate speculation cannot hold an entire country hostage. There's no room for opportunists and petty people in the future Argentina. Starting at 6 am on Wednesday we will halt all activities in the Neuquen watershed. We're 25,000 workers defending a whole country!", they concluded, the report says. Oil companies have promised to normalise the fuel supply over the next few days, while there are still long car queues at petrol stations, the report discloses. Through a press release, companies YPF, Axion, Raizen and Trafigura clarified that the situation "will normalize over the next few days", and in line with what the Government already said, that the petrol supply suffered a series of events over the last few days which have pushed them to the limit of their capacity, the report says. Among these events, they mentioned "(i) extraordinary demand levels, especially in the last fortnight - long weekend, an election with peak mobility, start of sowing time, among others, (ii) greater dependency than usual on fuel imports due to programmed halts in some refineries, and (iii) more recently, excessive demand caused by an expectation of shortages," 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. ARGENTINA: Will Freeze Fuel Levies Until February 2024 ------------------------------------------------------ Buenos Aires Times reports that Argentina's government announced that it extended a freeze on fuel taxes until February 2024 to avoid further hikes. The news, announced less than three weeks before the presidential run-off between Sergio Massa and Javier Milei, comes with runaway inflation set to exceed 150 percent in the coming days, according to Buenos Aires Times. The freeze, which was to have end but has now been extended by three months, meant "the state is renouncing income so that fuel prices do not rise more than expected," Massa, Argentina's economy minister, said in a video broadcast, the report notes. In a decree confirming the move, published in the Official Gazette, the government claimed that the measure would "ensure the necessary stabilization and adequate evolution of prices," the report relays. Under an agreement with the oil sector to control inflation, prices at the pump had been capped for several months, the report says. They rose by between seven and ten percent to about 400 pesos (US$1.10) per litre for premium gasoline - less than they would have with the levy added, the report discloses. "Every time we have to give up a tax to . . . protect the wallet of Argentines, we will," said Massa, who is the presidential candidate for the ruling Unión por la Patria coalition, the report notes. On October 22, Massa pulled off a major upset to garner the most votes – 36.68 percent – in a first round against Milei, the libertarian outsider who took 29.98 percent, the report says. Massa has overseen triple-digit inflation and record poverty levels in little over a year as economy minister, the report relays. The minister continued a war of words with oil companies which he has all but accused of being responsible for fuel shortages in the country, by favouring exports over domestic supply, the report discloses. Domestic production reached 645,000 barrels of oil a day in September – a seven percent improvement on the same month in 2022. "They can try to force an increase of 20 percent or 40 percent, with me they will not have it," said Massa, who also warned that economist Milei's plans to liberalise the economy would see "fuel prices increase to 800 pesos per litre," the report relays. The minister had recently threatened to freeze fuel exports altogether, the report says. Long queues formed at petrol stations across the country over the weekend as drivers rushed to fill up their tanks, the report notes. Following these threats, he said: "Yesterday, magically, fuel began to appear that was not there," adding that supply at fuel stations was "normalizing," the report relays. "I understand that the critical situation has been overcome," he added. Massa's first-round rivals Milei and Patricia Bullrich, who placed third, have both accused him of electioneering in office, with several recent relief measures for Argentines even at the risk of further inflating a chronic budget deficit, 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. =========== B R A Z I L =========== BRAZIL: Struggles to Grow Fruit Exports --------------------------------------- Richard Mann at Rio Times Online reports that Guilherme Coelho, leader of Brazil's Abrafrutas, arrived in India to expand market opportunities and clarify regulations. Meanwhile, in Sao Paulo, experts discuss fruit exports, according to Rio Times Online. They focus on the need for Global G.A.P certifications, which are crucial for meeting international quality standards, the report notes. Brazil holds only 602 such certifications, the report relays. This low number affects the country's export performance, the report says. Even though Brazil set a revenue record of $1.6 billion in 2022 fruits sales, it still lags behind in export volume, the report discloses. 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). CIELO SA: Fitch Hikes LongTerm IDRs to 'BB+', Outlook Stable ------------------------------------------------------------ Fitch Ratings has upgraded Cielo S.A.'s Foreign and Local Currency Long-Term Issuer Default Ratings (IDRs) to 'BB+' from 'BB' and affirmed its Long-Term National Scale Rating at 'AAA(bra)'. At the same time, Fitch has affirmed the senior unsecured 6th debentures issued by Cielo at 'AAA(bra)'. The Rating Outlook for the corporate ratings is Stable. The upgrade reflects the recovery of Cielo's profitability and the expectation of growing and strong operating cash flow generation. Cielo continues to benefit from its strong position in the Brazilian card payment industry and its competitive advantage relies in part on the relationship and distribution network of two important banks in the Brazilian banking system, Banco do Brasil S.A. (Foreign and Local Currency IDRs BB, Long-Term National Scale Rating AAA(bra), Outlook Stable) and Banco Bradesco S.A. (Foreign and Local Currency IDRs BB+, Long-Term National Scale Rating AAA(bra), Outlook Stable), which were upgraded following the upgrade of the Brazilian sovereign rating. KEY RATING DRIVERS Highly Competitive Environment: The market dynamics for the Brazilian payment industry will continue to change quickly and Fitch expects competition to remain strong in the near term. The sector should continue to evolve rapidly, with technological innovations and new payment options, structurally changing the traditional business model. Cielo has the important challenge of quickly adapting its business model, and improving diversification in other products like financial solutions and software services. Strong Position in the Brazilian Market: Cielo lost its position as the largest Brazilian merchant acquirer, with a reduction of market share to around 23% as of June 2023 (from 26% in 2022); the leader has around 24%. Cielo's strategy to focus on profitability recovery in detriment of Total Payment Volume (TPV) resulted in the loss of market share and Fitch expects market share to stabilize at current levels. Despite the significantly increased competition in recent years, the industry still remains concentrated, with the two largest participants still accounting for approximately 47% of the market. TPV Growth Expected for 2024: Fitch projects Cielo's TPV to reduce in 2023 and to present growth in line with the industry in 2024 going forward. The base case scenario incorporates a TPV reduction of 7% in 2023 and growth of 6% in 2024. Cielo processed BRL594 billion in credit and debit transactions in 9M23, a 7% decrease in relation to 9M22. Fitch projects that Brazilian market TPV is expected to grow around 7% in 2024 going forward. Stronger Operating Margins: Cielo improved its profitability, with greater penetration of small and medium merchants and of prepayment products, loss of less profitable clients, gradual improvement in product diversification, together with the greater stability of Cateno's (JV responsible for managing services related to Banco do Brasil's card business) results. Merchant E-Solutions' (MeS) divestiture in 1Q22 also had a positive impact on Cielo's operating margins, as MeS had a small contribution to the consolidated EBITDA. Fitch's base case considers an EBITDA margin between 44% and 48% in 2023-2025, compared with the average of 32% from 2019 to 2022. Cielo is expected to generate a strong EBITDA of BRL5.0 billion in 2023, including income from acquisition of receivables, and BRL5.1 billion in 2024, compared with BRL4.8 billion generated in 2022, as per Fitch's calculations. Higher volume of pre-payment products should contribute to this growth. Cateno's contribution to Cielo's EBITDA between 35% to 40% also adds more stability to the company's cash flow generation. Fitch expects positive FCF of BRL2.0 billion for 2023 and positive BRL394 million in 2024, as Cielo's working capital needs are directly linked to the company's strategy to finance the acquisition of receivables to merchants. Base case projections incorporate average annual investments of BRL800 million and dividends around BRL600 million per year. Low Risk of Credit Loss: Cielo has no direct credit exposure to cardholders, as the card-issuing bank guarantees cardholders' payments, while the company's exposure to merchants is limited. The company is, however, partially exposed to card-issuing bank defaults on a payment settlement for Visa and MasterCard transactions. The risk associated with Visa and MasterCard transactions is mitigated because more than 85% of the volume of transactions is concentrated in the five largest Brazilian banks, Banco do Brasil, Banco Bradesco, Itau (BB+/Stable), Caixa (BB/Stable), and Santander Brasil (not rated). For some non-investment-grade banks, Cielo's risk management policy requires the card-issuing bank to pledge collateral and/or provide SBLC (Standby Letters of Credit). Strong Capital Structure: Cielo's net adjusted leverage, measured by the net debt to adjusted EBITDA ratio, including financial income derived from the acquisition of receivables from merchants, should be close to 2.0x in 2023 and to remain below 2.5x in the next three years. As of Dec. 31, 2022, net adjusted leverage was 2.5x. DERIVATION SUMMARY Cielo is the second largest company in Brazil's merchant acquiring and payment processing industry, with an estimated 23% market share, after Redecard (not rated; controlled by Itau Unibanco Holding S.A.) with a 24% share. The third-largest is GetNet (not rated; controlled by Grupo Santander) with 15%. Compared with independent players, such as Stone and PagSeguro, both with 11%, the three leaders have some competitive advantages due to their controlling shareholders' structure, as their relationship with leading commercial banks gives them access to a broad customer base to acquire merchant accounts. As is characteristic of the industry in Brazil, Cielo and its peers have no direct credit exposure to cardholders, as the card-issuing bank guarantees cardholders' payments. KEY ASSUMPTIONS - Revenues of Cielo Brasil of around BRL6.4 billion in 2023 and BRL6.9 billion in 2024; - Revenues of Cateno of around BRL4.1 billion in 2023 and BRL4.3 billion in 2024; - Annual investments of approximately BRL800 million; - Dividends of 35% of net income in 2023 and 2024. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: - A sustained improvement in profitability and market-share gains. Factors that could, individually or collectively, lead to negative rating action/downgrade: - An increase in the volume of credit and debit transactions with banks rated 'BB-' and below without collateral being pledged by the card-issuing bank or not guaranteed by MasterCard; - Weakening credit profile of the main banks that operate with Cielo; - A significant loss due to fraud and chargebacks; - Tougher competition leading to a significant loss of market share and profitability; - Significant changes in regulatory risk; - A negative rating action on Brazil's sovereign ratings that leads to negative rating actions on Banco do Brasil, Bradesco, Caixa Economica Federal and Itau. LIQUIDITY AND DEBT STRUCTURE Strong Financial Flexibility: Cielo has a strong financial flexibility. As of Sept. 30, 2023, the company reported cash and marketable securities of BRL1.1 billion and total debt was BRL13.8 billion. Cielo has around BRL5.4 billion of debt maturing in the short term, including a BRL3.4 billion private debentures due in December 2023. Cielo has strong financial flexibility to address upcoming maturities and good access to the bank and capital markets, including a sizable pool of receivables. With the repayment of the bonds in November of 2022, the company has no debt in Foreign Currency. Total debt was composed of private debentures (24.6%), FIDC (53.5%), public debentures (21.7%) and others (0.2%). ISSUER PROFILE Cielo is a multi-brand acquirer that captures, transmits, processes and settles transactions between large to small merchants with consumers under international brands such as Mastercard, Visa, Amex and local brands. Cielo is controlled by Banco do Brasil and Bradesco, with 28.65% of participation each. 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. Entity/Debt Rating Prior ----------- ------ ----- Cielo S.A. LT IDR BB+ Upgrade BB LC LT IDR BB+ Upgrade BB Natl LT AAA(bra)Affirmed AAA(bra) senior unsecured Natl LT AAA(bra)Affirmed AAA(bra) =================== C O S T A R I C A =================== COSTA RICA: Moody's Hikes Issuer Ratings to B1, Outlook Positive ---------------------------------------------------------------- Moody's Investors Service has upgraded the Government of Costa Rica's long-term local and foreign currency issuer ratings to B1 from B2. Concurrently, Moody's has upgraded the foreign currency senior unsecured debt rating to B1 from B2. The outlook has been changed to positive from stable. The upgrade of Costa Rica's ratings to B1 from B2 reflects Moody's view that the country's credit profile has strengthened, benefiting from the substantial progress achieved on structural fiscal consolidation and measures taken by the authorities to (i) increase sovereign liquidity, (ii) improve debt affordability, and (iii) ensure a sustained decline in public debt. Additionally, debt management capabilities have strengthened, helping to reduce sovereign borrowing costs and to increase government liquidity buffers. Overall, fiscal pressures have eased significantly as a result of strong fiscal outturns that have curbed government financing needs. Moreover, policy measures adopted in the context of the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF) programs with the International Monetary Fund (IMF) have played an important role in supporting fiscal sustainability and helping to develop a track record of fiscal policy credibility. The positive outlook reflects the increasing likelihood that favorable credit trends will, over time, enhance Costa Rica's fiscal strength and will eventually offset lingering challenges that constrain the ratings at the current B1 level. The government is making progress to improve institutions and governance strength backed by stronger debt and liquidity management, and continued compliance with fiscal rules embedded in the medium-term fiscal framework. Continued progress in these areas will help establish a track record of credible policymaking that has increasing potential to improve creditworthiness. Costa Rica's local currency country ceiling has been raised to Baa3 from Ba1, while the foreign-currency country ceiling was raised to Ba2 from Ba3. The four-notch gap between the local currency ceiling and the sovereign rating reflects limited government intervention in the economy, high predictability and reliability of institutions, overall low political risk and relatively contained external imbalances. The Ba2 foreign-currency ceiling, two notches below the local currency ceiling, reflects the economy's moderate level of external indebtedness, open capital account a low level of policy effectiveness. RATINGS RATIONALE STRUCTURAL FISCAL CONSOLIDATION ALONGSIDE MEASURES THAT HAVE LED TO IMPROVED LIQUIDITY BUFFERS AND DEBT AFFORDABILITY ENSURING A SUSTAINED DECLINE IN PUBLIC DEBT RATIOS A steady reduction of the fiscal deficit is helping the sovereign build a track record of fiscal credibility. For the first time in over 10 years, Costa Rica's central government deficit came below 4% of GDP narrowing to 2.5% in 2022 from 5% in 2021, due to expenditure restraint and a strong revenue performance. The 2018 tax reform has continued to yield durable revenue gains through phased increases in both value-added taxes (VAT) and the capital gains tax. A strong rebound in economic activity coupled with various revenue measures resulted in the highest level of government revenues relative to GDP on record in 2022, despite an extensive cyberattack that shut down the tax collection systems for nearly two months last year. Moody's forecasts that after it widens temporarily in 2023, the fiscal deficit will resume its declining trend and will continue to narrow as debt management operations prove effective in lowering the overall cost of debt in 2024 and beyond. After central government debt declined to 63.8% of GDP in 2022 from its 68% peak in 2021, Moody's forecasts the debt ratio will decrease further, coming below 60% of GDP by 2025, in line with the targets set in the medium-term fiscal framework. The structural reduction of the fiscal deficit has led to materially lower borrowing requirements. Government financing needs decreased to 7.9% of GDP in 2022 from 11.1% in 2021, and after a temporary increase to 9.1% of GDP in 2023 owing to liability management and liquidity-boosting operations, Moody's expects they will remain below 9% of GDP in 2024-25. The ability to access external market borrowing will have a substantial impact on improving the structure of debt and reducing its cost. The proceeds from cross-border debt issuances have been used to retire more expensive domestic debt. Additionally, the government's liquidity buffers have improved as part of the proceeds from external issuances have been kept in its single treasury account, and new treasury guidelines will ensure these buffers remain at higher levels than in the past. Although increased liquidity will bring with it a cost of carry, Moody's expects debt affordability will gradually improve through 2025. FISCAL SUSTAINABILITY REINFORCED BY ONGOING REFORMS Costa Rica's credit profile has benefited from a number of structural reforms adopted under the EFF program, and others being implemented under the RSF. Revenue measures that improved the efficiency and progressivity of the tax system and led to a narrowing of the fiscal deficit are structural in nature and will be complemented by tax compliance measures that will be adopted through 2025. Reforms have strengthened the Treasury's financial management operations by concentrating cash that had previously been held by autonomous government entities in commercial banks into a single treasury account, a move that has effectively reduced the central government's funding needs. The authorities have developed a medium-term fiscal framework and a medium-term debt strategy with technical assistance from the IMF that improves the credibility of the budget process by incorporating a coherent fiscal strategy with clear targets that integrates financing, liquidity, and debt management elements through 2027. A fiscal council is being set up to assess the credibility of macroeconomic assumptions incorporated into the budget process and to evaluate compliance with fiscal rules. An ambitious reform of public sector employment is ensuring that growth in nominal current primary spending will remain in check with the freeze in the basic public sector wages extending beyond 2025. The reform will contribute to broad expenditure restraint in support of the government's fiscal consolidation strategy. Lastly, the public procurement framework has been enhanced to eliminate bad practices and assure savings by revamping the public sector's purchasing process. Overall, Moody's view is that these reforms will have a lasting impact on fiscal trends while allowing Costa Rica to gradually but consistently build policy credibility over time. RATIONALE FOR THE POSITIVE OUTLOOK The positive outlook reflects the increasing likelihood that reforms that have improved financial management and policy effectiveness, helping to establish coherent fiscal and debt management frameworks, will materially enhance Costa Rica's fiscal strength. Over time, ongoing debt management efforts are increasingly likely to improve debt affordability by containing interest expenditure, helping to reduce the headline deficit and creating additional fiscal space. If implemented, these measures will remove a key credit constraint of Costa Rica's credit profile. With the sovereign already moving to build a track record of prudent fiscal management and the benefits derived from additional policy measures under the current IMF program more likely to materialize in the coming years, Costa Rica is making progress as it proves capable of establishing and strengthening fiscal credibility. ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS Costa Rica's ESG Credit Impact Score is moderately negative (CIS-3), reflecting moderate exposure to environmental and social risk, and a moderately negative governance issuer profile score with limited financial resilience. Costa Rica's exposure to environmental risks is moderately negative (E-3 issuer profile score), related to physical climate change and natural capital erosion. Lower crop yields because of climate events can harm the agricultural export sector and tourism revenues may be affected by rising sea levels and increased storm severity. Exposure to social risks is also moderately negative (S-3 issuer profile score). Social considerations historically were not material to Costa Rica's credit profile given a long history of stable governments and democratic institutions but attempts to reduce high fiscal deficits have encountered significant social resistance in recent years. Popular demands to reduce perceived inequalities and high rates of violence will continue to constrain domestic policy choices. The influence of Governance on Costa Rica's credit profile is moderately negative (G-3 issuer profile) and risks are mainly related to the political inability of several administrations to arrest the deterioration in fiscal strength over the past decade. The sovereign is in the initial phases of building a track record of more prudent fiscal management since approving a tax form in 2018 and a series of complementary measure under the current IMF program, but it will take time to establish and strengthen fiscal credibility. GDP per capita (PPP basis, US$): 25,000 (2022) (also known as Per Capita Income) Real GDP growth (% change): 4.6% (2022) (also known as GDP Growth) Inflation Rate (CPI, % change Dec/Dec): 8% (2022) Gen. Gov. Financial Balance/GDP: -2.5% (2022) (also known as Fiscal Balance) Current Account Balance/GDP: -4% (2022) (also known as External Balance) External debt/GDP: 52.4% (2022) Economic resiliency: baa2 Default history: No default events (on bonds or loans) have been recorded since 1983. On November 1, 2023, a rating committee was called to discuss the rating of the Costa Rica, Government of. The main points raised during the discussion were: The issuer's economic fundamentals, including its economic strength, have materially increased. The issuer's institutions and governance strength, have materially increased. The issuer's governance and/or management, have materially increased. The issuer's fiscal or financial strength, including its debt profile, has not materially changed. The issuer's susceptibility to event risks has not materially changed. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS Costa Rica's credit profile could improve as a result of a faster increase in debt affordability, i.e., lower interest-to-revenue ratio, and a further narrowing of the fiscal deficit that leads to a more rapid reduction in government debt ratios than currently expected. Continued compliance with fiscal rules combined with material progress on reforms that boost structural government revenues would reinforce the ongoing fiscal consolidation process, beyond Moody's current projections, helping to consolidate the foundations of policy credibility and placing upward pressure on the ratings. FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS A downgrade of the rating is unlikely given the positive outlook. However, Costa Rica's rating could be subject to downward pressure as a result of the re-emergence of liquidity and financing constraints, or if the trajectory of the government accounts deviates materially from the fiscal framework resulting in wider deficits and higher debt metrics. The principal methodology used in these ratings was Sovereigns published in November 2022. ============= J A M A I C A ============= JAMAICA: Government Seeks Investment for New Agro Parks ------------------------------------------------------- RJR News reports that as the government seeks to expand the number of agro parks in Jamaica, Agriculture Minister Floyd Green says more investment opportunities are becoming available. Currently, the ministry's Agro-Investment Corporation manages eight agro parks and nine industrial agricultural production zones, according to RJR News. "We have new agro parks coming on stream and we think it's very important that we start hunting the investments for those agro parks starting now. So we will be using the stakeholder engagement to promote new investment opportunities," he said, the report notes. Mr. Green said the ministry is also in the process of exploring the expansion of local produce for export beyond the traditional markets, the report relays. "I have found as minister that a number of us are not sure what are the crops, the products that the world is really clamouring for. We do have some misconceptions. So some of us do know by now that yam is our number one traditional export. But I'm not sure we are certain that there's a tremendous demand for dasheen, a tremendous demand for cocoa, tremendous demand for ackees, and I could go on and on." Mr. Green was speaking at post Cabinet press briefing, the report adds. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. In October 2023, Moody's upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to B1 from B2, and senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has been changed to positive from stable. The upgrade of Jamaica's rating to B1 reflects the government's sustained commitment to fiscal consolidation and debt reduction. The positive outlook reflects Moody's assessment that a continuation of the favorable fiscal trajectory will further increase Jamaica's credit resilience. S&P Global Ratings raised on September 13, 2023, its long-term foreign and local currency sovereign credit ratings on Jamaica to 'BB-' from 'B+', and affirmed its short-term foreign and local currency sovereign credit ratings at 'B'. The stable outlook reflects S&P's expectation that the government will remain committed to prudent fiscal policies and reducing debt, as well as supportive economic policies including a flexible exchange rate regime and effective monetary policy. In March 2022, Fitch Ratings affirmed Jamaica's Long-Term Foreign Currency Issuer Default Rating (IDR) at 'B+'. The Rating Outlook is Stable. ======= P E R U ======= UNACEM CORP: S&P Affirms 'BB' ICR & Alters Outlook to Stable ------------------------------------------------------------ S&P Global Ratings, on Nov. 3, 2023, therefore revised its rating outlook on Peru-based building materials company UNACEM Corp. S.A.A. to stable from positive and affirmed the 'BB' issuer credit rating. The stable outlook reflects S&P's view that UNACEM will quickly integrate the Tehachapi assets while maintaining steady performance in other operations in the next 12 months, reaching net debt to EBITDA just below 3x by year-end 2024. S&P said, "We now expect UNACEM to maintain a tighter liquidity position and refinance short-term debt maturities beyond what we previously expected. However, we think the company maintains good access to capital markets and sound relationships with several banks, as reflected in the syndicated bank loan secured for the Tehachapi acquisition. Still, short-term financing surpasses our estimated liquidity sources, mainly cash reserves and funds from operations (FFO), for the next 12 months, increasing the company's reliance on rolling over debt maturities." UNACEM secured the transaction with a $345 million syndicated bank loan with a three-year bullet tenor. S&P said, "Our revised base-case scenario now estimates reported net debt to EBITDA for 2023 will be 3.7x-3.8x, but on a pro forma basis, considering 12 months of Tehachapi operations, it would likely be 3.1x-3.2x. This is a deviation from our prior expectation of net debt to EBITDA of 2.1x in 2023. The price of the acquisition was $315 million, and we expect UNACEM will use the remainder of the proceeds for ramp-up investments in the plant." S&P said, "We estimate leverage will fall below 3x by year-end 2024, due to a quick integration of the recently acquired assets, including the Termochilca plant earlier this year, along with a modest improvement in the Peruvian operations' sales and profitability after weaker performance--though better than the total Peruvian market--in 2023. Year to date, cement demand in Peru has decreased by 10%-12% because of softer economic growth and weaker investment sentiment, given political turmoil. In addition, UNACEM's profitability has decreased due to lower administrative expense dilution, given lower cement dispatches and energy purchases amid lower output from its hydroelectric plants, partly compensated by thermal operations recently acquired. UNACEM is entering the California market with the Tehachapi acquisition, which provides an important opportunity for the company to expand its operations in the U.S. and continue diversifying its geographic footprint. The Tehachapi plant represents close to 10% of installed capacity in Southern California, which S&P considers a highly competitive market with big cement industry players, along with seaborne imports. In 2022, the plant had sales close to $114 million with a utilization rate near 90%, but this rate has fallen to about 70% this year. UNACEM management expects some synergies between its California and Arizona operations, given the greater cement and clinker installed capacity at the Tehachapi plant. S&P estimates U.S. operations, between California and Arizona, will likely represent 18%-20% of UNACEM's consolidated sales in 2024-2025. S&P said, "Environmental factors are a moderately negative consideration in our credit rating analysis of UNACEM. Although environmental regulatory scrutiny is progressing more slowly in Peru and Latin America overall than in developed markets, we think the company's U.S. operations, especially the newly acquired assets in California, could be exposed to tighter regulations, potentially requiring greater investments in the medium term. "The bulk of UNACEM's operations are in Peru -- accounting for 64% of sales -- while 16% are in the U.S. and 19% in other Latin American countries. Therefore, we expect potential regulatory requirements to be relatively mild for UNACEM, and we expect its cash generation to provide sufficient cushion." On average, the company has deployed about PEN30 million annually for environmental investments -- about 6% of its total capex. In 2022, it emitted 650 kilograms (kg) of carbon dioxide equivalent per ton of cement produced, similar to regional peers. Moreover, the company has a commitment to decrease its carbon dioxide equivalent emissions per ton of cement produced to 500 kg by 2030 and to reach carbon neutrality by 2050. ===================== P U E R T O R I C O ===================== PUERTO RICO: Dechert LLP Updates Rule 2019 Statement ---------------------------------------------------- The law firm of Dechert LLP filed a second verified statement pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure to disclose that in the Chapter 11 case of Puerto Rico Electric Power Authority ("PREPA"), the firm represents PREPA Ad Hoc Group. Dechert notes that it does not represent the PREPA Ad Hoc Group as a committee (as such term is used in the Bankruptcy Code and Bankruptcy Rules) and does not undertake to, and does not, represent the interest of, and is not a fiduciary for, any creditor, party in interests, or entity other than the PREPA Ad Hoc Group and Invesco. Dechert has been advised by the Members of the PREPA Ad Hoc Group that its Members either hold, or manage funds and/or accounts that hold, collectively, approximately $2.3 billion in aggregate principal amount of uninsured Bonds, in addition to approximately $472 million in aggregate principal amount of insured Bonds. In addition, Dechert does not hold claims against, nor interests in, the Debtor or its estate, except for potential claims for fees and expenses incurred in representing the PREPA Ad Hoc Group. Dechert does not perceive any actual or potential conflict of interest with respect to the representation of the PREPA Ad Hoc Group and its Members in this case. PREPA Ad Hoc Group is represented by: MONSERRATE SIMONET & GIERBOLINI, LLC Dora L. Monserrate-Peñagarícano, Esq. Fernando J. Gierbolini-González, Esq. Richard J. Schell, Esq. 101 San Patricio Ave., Suite 1120 Guaynabo, PR 00968 Phone: (787) 620-5300 Facsimile: (787) 620-5305 Email: dmonserrate@msglawpr.com fgierbolini@msglawpr.com rschell@msglawpr.com -and- DECHERT LLP G. Eric Brunstad Jr., Esq. Stephen D. Zide, Esq. David A. Herman, Esq. 1095 Avenue of the Americas New York, NY 10036 Phone: (212) 698-3500 Facsimile: (212) 698-3599 Email: eric.brunstad@dechert.com stephen.zide@dechert.com david.herman@dechert.com About Puerto Rico Puerto Rico is a self-governing commonwealth in association with the United States. The chief of state is the President of the United States of America. The head of government is an elected Governor. There are two legislative chambers: the House of Representatives, 51 seats, and the Senate, 27 seats. The governor-elect is Ricardo Antonio "Ricky" Rossello Nevares, the son of former governor Pedro Rossello. In 2016, the U.S. Congress passed PROMESA, which, among other things, created the Financial Oversight and Management Board and imposed an automatic stay on creditor lawsuits against the government, which expired May 1, 2017. The members of the oversight board are: (i) Andrew G. Biggs, (ii) Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J. Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii) David A. Skeel Jr. On May 3, 2017, the Commonwealth of Puerto Rico filed a petition for relief under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act ("PROMESA"). The case is pending in the United States District Court for the District of Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico's PROMESA petition is available at http://bankrupt.com/misc/17 01578-00001.pdf On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation (COFINA) commenced a case under Title III of PROMESA (D.P.R. Case No. 17-01599). Joint administration has been sought for the Title III cases. On May 21, 2017, two more agencies -- Employees Retirement System of the Government of the Commonwealth of Puerto Rico and Puerto Rico Highways and Transportation Authority (Case Nos. 17-01685 and 17-01686) -- commenced Title III cases. U.S. Chief Justice John Roberts named U.S. District Judge Laura Taylor Swain to preside over the Title III cases. The Oversight Board has hired as advisors, Proskauer Rose LLP and O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq., at O'Neill & Borges LLC are onboard as attorneys. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains the case Web site https://cases.primeclerk.com/puertorico Jones Day is serving as counsel to certain ERS bondholders. Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General Obligation Bondholders. SAN JORGE CHILDREN'S: Hires IEC as Investment Consultant -------------------------------------------------------- San Jorge Children's Hospital Inc. seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ IEC Consulting, LLC as investment consultant. The firm will provide these services: a. identify and contact prospective investors/purchasers and solicit and assist in evaluating indications of interest & proposals among prospective investors/purchasers related to the Sale Transactions; b. assist in structuring and negotiating the Sale Transactions and the terms of the securities/consideration; c. assist in developing/presenting financial and operational data to facilitate the Sale Transactions; d. participate in hearings before the bankruptcy court concerning matters upon which IEC has provided advice, including coordinating with the Company's counsel concerning the testimony in connection therewith; e. seek to proceed with the Sale Transactions, advise and assist the Client in executing such Sale Transactions; f. assist in matters associated with closing the Sale Transactions; and g. provide such other advisory services reasonably necessary to accomplish the foregoing and consummate the Sale Transactions as requested by the Client and agreed to by IEC occasionally. The firm will be paid at the rate of $250 per hour. Upon execution of the Sale Transactions, a transaction fee ("Sale Transactions Fee") of 1 percent of gross proceeds of any amount. The Sale Transactions Fee will be payable in cash upon closing of the Sales Transactions. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Ivan E. Colon, a partner at IEC Consulting, LLC, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Ivan E. Colon, MHSA, FACHE IEC Consulting, LLC 1201 S. Hope St. #4002 Los Angeles, CA 90015 About San Jorge Children's Hospital Inc. San Jorge Children's Hospital, Inc. operates a hospital in San Juan, P.R., which specializes in pediatrics. San Jorge Children's Hospital filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 22-02630) on Sept. 1, 2022, with between $10 million and $50 million in both assets and liabilities. Edward P. Smith, chief operating officer, signed the petition. Judge Maria De Los Angeles Gonzalez presides over the case. The Debtor tapped Wigberto Lugo Mender, Esq., at Lugo Mender Group, LLC as bankruptcy counsel and Galindez, LLC as external auditor. Cardona Jimenez Law Offices, P.S.C. represents the official committee of unsecured creditors appointed in the Debtor's case while RSM Puerto Rico serves as the committee's financial advisor. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2023. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *