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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

          Tuesday, November 14, 2023, Vol. 24, No. 228

                           Headlines



A R G E N T I N A

AGUA Y SANEAMIENTOS: Fitch Affirms 'CCC-' Issuer Default Ratings
PETROQUIMICA COMODORO: Fitch Affirms 'B-' IDRs, Outlook Stable


B A R B A D O S

BARBADOS: Financial System Remains Stable


B E R M U D A

777 RE: A.M. Best Cuts Financial Strength Rating to B(Fair)


B R A Z I L

AMBIPAR PARTICIPACOES: Fitch Assigns 'BB-' IDRs, Outlook Stable
BRAZIL: Public Sector Logs Highest Deficit in September Since 2020


C H I L E

WOM SA: Fitch Cuts & Withdraws Foreign Currency 'B-' IDR


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Former ICPARD Exec Advocates Tax Collection


E C U A D O R

BANCO DEL AUSTRO: Fitch Affirms 'CCC+' LongTerm IDR
BANCO GUAYAQUIL: Fitch Affirms 'CCC+' LongTerm IDR
BANCO PICHINCHA: Fitch Affirms 'CCC+' LongTerm IDR
BANCO PROCREDIT: Fitch Affirms 'B' LongTerm IDR, Outlook Stable
PRODUBANCO: Fitch Affirms 'B-' LongTerm IDR, Outlook Stable



H O N D U R A S

HONDURAS: Inflation Been Coming Down During Most of 2023, IMF Says


J A M A I C A

JAMAICA: Cost of Clothing and Footware Items Increase


U R U G U A Y

MERCADOLIBRE INC: Fitch Affirms 'BB+' LongTerm IDRs, Outlook Stable


V E N E Z U E L A

MERCANTIL CA: Fitch Affirms 'CC' LongTerm IDRs

                           - - - - -


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

AGUA Y SANEAMIENTOS: Fitch Affirms 'CCC-' Issuer Default Ratings
----------------------------------------------------------------
Fitch Ratings has affirmed Agua y Saneamientos Argentinos S.A.'s
(AySA) Long-Term Foreign and Local Currency Issuer Default Ratings
(IDRs) at 'CCC-'. Fitch has also affirmed the company's USD310
million senior unsecured amortizing notes due 2026 at 'CCC-'/'RR4'.
The 'RR4' Recovery Rating for the company's senior unsecured notes
incorporates an average expected recovery given default of 31% to
50% and is the soft cap established for Argentine corporates.

AySA is rated on a stand-alone basis as its SCP at 'ccc-' is above
that of the sovereign, and its GRE assessment score is 22.5,
resulting in the government-related entity (GRE) rating being
assessed on a stand-alone basis.

KEY RATING DRIVERS

Significant Support for Debt and Operations: AySA is dependent on
capital injections from the Argentine government to support its
loss-making operations, capex and debt obligations. The company
provides important water/wastewater utility services for the most
economically relevant region in Argentina, which underpins
expectations of continued government support. The government's
capital injections for O&M and capex totaled ARS93 billion in
1H2023 and ARS190 billion in 2022; AySA's first principal and
interest payment made on its 2026 senior unsecured notes was paid
on time.

Government-Related Entity: AySA's ratings reflect default is a real
possibility; the company's GRE assessment score is 22.5 as a result
of having a Support Track Record of 'moderate', Financial
Implications of a Default as 'moderate', and Socio-Political
Implications of Default as 'moderate'. Improvement in the overall
GRE scoring can occur if the Support Track Record reflects more
predictable and stable financial support from the government either
through an equity injection or adjustment in tariffs and/or
subsidies to improve the company's credit profile.

Continued Negative EBITDA and FCF Expected: AySA is expected to
continue reporting negative EBITDA estimated at negative ARS71
billion in 1H2023 and close to negative ARS300 billion for YE2023.
The company's unbalanced tariff levels and cost structure led to
negative EBITDA of ARS98 billion at YE2022. AySA's FCF is also
expected to remain negative, projected at negative ARS412 billion
in 2023, down further from negative ARS216 billion in 2022 due to
increasing negative operating cash flow generation and higher
capex.

The base case scenario assumes tariff growth below inflation rates
over the 2023 to 2026 period. Negative FCF should continue to be
funded with capital injections estimated at ARS370 billion as of
Dec. 30, 2023, and should continue to fund the negative FCF going
forward and maintain minimum liquidity levels.

DERIVATION SUMMARY

AySA's SCP is weak as compared with its main peers in other Latin
American countries, owing to its fragile operating performance,
weak regulatory environment and strong dependence on its dominant
state shareholder to support its negative operating cash flow
generation and debt payments.

This condition compares unfavorably with Companhia de Saneamento
Basico do Estado de Sao Paulo (Sabesp; 'BB+'/Stable), a state-owned
company based in Brazil with sound cash flow generation and strong
credit metrics, and Aegea Saneamento e Participacoes S.A.
('BB'/Stable), a privately-owned company in Brazil with strong
EBITDA margins and diversified portfolio of concessions.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within The Rating Case for the Issuer
Include:

- Continued support from government through capital injections;

- Tariff segmentation and removal of subsidies as of Nov. 1, 2022;

- Tariff increases at 50% of inflation estimates in 2023 and
thereafter;

- Additional revenue growth in 2022 and thereafter in line with the
five-year historical annual average growth in connections;

- Average annual maintenance capex of approximately USD300 million
over the 2023-2026 period;

- Operating losses, capex and financial obligations backed almost
fully by government transfers over the forecast horizon.

RECOVERY ANALYSIS

For issuers with IDRs of 'B+' or below, Fitch performs a recovery
analysis for each class of obligations of the issuer based on the
going concern enterprise value of a distressed scenario or the
company's liquidation value. In AySA's case, the consideration for
average recovery considers the company's state-owned condition that
operates a concession utility and is strongly supported by the
Argentine government that subsidizes its loss-making operations.
Under these circumstances, the recovery exercise is meaningless
either through enterprise value as a going concern (given its
loss-making figures) or the liquidation approach (given its
concessionaires status).

RATING SENSITIVITIES

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

- Upgrade of Argentine sovereign IDR, coupled with improvement in
AySA's credit metrics and financial flexibility.

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

- A downgrade of AySA below 'CCC-' could occur if Fitch believes
that a default of some kind is probable or a default-like process
has begun. This would be represented by a 'CC' or 'C' rating, given
that AySA's ratings are linked to those of the Argentine sovereign
at 'CC', due to the high reliance on the government for O&M, capex,
and to meet its financial obligations.

LIQUIDITY AND DEBT STRUCTURE

Weak Liquidity: AySA's liquidity fully relies on cash injections
from its majority shareholder, the national state, given its
inability to generate internal cash and restricted access to debt
and the capital markets on a standalone basis.

ISSUER PROFILE

Agua y Saneamientos Argentinos S.A. is the water/wastewater
concessionaire of Buenos Aires and 26 municipalities of the
metropolitan region. The company is a service provider to an
estimated 15 million people through a 20-year, extendable
concession agreement.

ESG CONSIDERATIONS

Agua y Saneamientos Argentinos S.A. has an ESG Relevance Score of
'4' for Governance Structure due to its nature as a majority
government-owned entity and the inherent governance risk that
arises with a dominant state shareholder, which has a negative
impact on the credit profile, and is relevant to the rating[s] in
conjunction with other factors.

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         Recovery   Prior
   -----------                 ------         --------   -----
Agua y Saneamientos
Argentinos S.A.      LT IDR    CCC-  Affirmed            CCC-

                     LC LT IDR CCC-  Affirmed            CCC-

   senior
   unsecured         LT        CCC-  Affirmed   RR4      CCC-


PETROQUIMICA COMODORO: Fitch Affirms 'B-' IDRs, Outlook Stable
--------------------------------------------------------------
Fitch Ratings has affirmed Petroquimica Comodoro Rivadivia S.A.'s
(PCR) Long-Term Foreign and Local Currency Issuer Default Ratings
(IDR) at 'B-'. The Rating Outlook is Stable.

PCR's ratings reflect its small oil production size, concentrated
cement business in the Patagonia region of Argentina and exposure
to the Argentine electricity industry's regulatory risk. PCR's
Argentine operations and cash flow are slightly offset by its
Ecuadorian oil operations, which cover its hard-currency
consolidated interest expense. Fitch estimates PCR's ex-Argentine
EBITDA will cover its hard-currency consolidated interest expense
over the rated horizon, mitigating the impact of capital controls.

KEY RATING DRIVERS

Diversified Cash Flow: PCR's has diversified cash flow profile
stemming from its three business segments. In 2022, PCR's EBITDA
reached USD210 million, USD120 million of which was from its Oil
and Gas (O&G) business, USD64 million from Renewables and USD31
million from Cement. Over the rating horizon, Fitch estimates the
share of consolidated EBITDA from the Renewable Energy segment will
reach 47% -- roughly USD96 million by 2025 -- contributing to a
more predictable cash flow profile, while reducing O&G production
and maintaining its strong position in the Cement business in
Patagonia.

Adequate Leverage: Fitch expects PCR will increase gross leverage,
defined as total debt to EBITDA, close to 3.1x at YE 2023, compared
to 2.0x in 2022 and 2021. Fitch estimates PCR's consolidated debt
will end 2023 at approximately USD624 million as it continues
expanding renewable generation. Fitch expects gross leverage will
be at or below 3.0x between 2024-2026. EBITDA to interest expense
is estimated to be above 5.0x throughout the rating horizon.

Small Production Profile: PCR's ratings reflect its small and
concentrated production profile of below 20,000boed, which is
consistent with the low end of the 'B' rating category. The company
has exploration and production interest in 14 blocks in Argentina
(10) and Ecuador (four), but most of its respective asset base of
Proven Reserves (1P) and production is concentrated in Argentina at
84% and 60%, and Ecuador at 16% and 40%.

Counterparty Exposure: PCR's power cash flows are concentrated with
one off-taker, approximately 63% of PCR's Renewable Energy segment
revenues depend on payments from Compania Administradora del
Mercado Mayorista Electrico Sociedad Anonima (CAMMESA), which acts
as an agent on behalf of an association representing agents of
electricity generators, transmission, distribution, large consumers
or wholesale market participants (Mercado Electrico Mayorista). All
contracts are under the RenovAr program and have a guarantee from
FODER (Argentina Renewable Fund Guarantee) and in certain cases,
with an additional guarantee from the World Bank, the latter of
which applies to the Mataco/San Jorge plant for up to USD21.5
million.

DERIVATION SUMMARY

PCR is a small oil and gas producer with operations in Argentina
and Ecuador. Argentina represents 60% of production and Ecuador
contributed 40%. Production is expected to remain relatively flat,
averaging around 18,000boed through 2025, comparable to its 'B'
rated peers, GeoPark Limited (B+/Stable), Frontera Energy
Corporation (B/Stable) and Gran Tierra Energy Inc. (B/Stable).

Over the rated horizon, PCR will have the smallest production
profile among rated Latin American peers. Fitch estimates GeoPark
will average approximately 40,000boed over the rated horizon, Gran
Tierra approximately 47,000boed and Frontera Energy 48,000boed. PCR
reported 22.7 million boe of 1P reserves at the end of 2022,
equating to a reserve life of 4.0 years, which is lower than
GeoPark at 5.2 years, Frontera Energy's 8.6 years and Gran Tierra's
7.0 years.

PCR's cement segment is small and geographically focused and does
not compare well with some of its regional peers. PCR has the
capacity to produce 825,000 tons per year, compared with GCC,
S.A.B. de C.V. (BBB-/Positive) with capacity of 5.9 million metric
tons per year. PCR's cement business is focused in the Patagonia
region and has a strong market share due to its geographic location
and production efficiencies caused by lower freight and energy
costs. PCR's cement margins averaged 32% from 2019 to 2022 above
peers' median of approximately 30%.

PCR's gross leverage is expected to be close to 3.1x in 2023,
increased due to lower EBITDA in its O&G business pressured by
decreased Brent prices and lower margins. PCR's gross leverage is
higher than oil and gas peer GeoPark (0.8x), Frontera (0.8x) and
Gran Tierra (1.2x). Unlike its oil and gas peers, PCR has a more
diversified business model due to its Cement and Renewable Energy
segments. The power business compares with Pampa Energia S.A.
(B-/Stable), MSU Energy S.A. (CCC-), Capex S.A. (CCC+) and Genneia
S.A. (CCC-). Similar to PCR, Pampa Energia and Capex have oil and
gas, as well as energy business segments, taking into consideration
that Capex is a closer peer by scale compared with the much larger
Pampa Energia.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within Its Rating Case for the Issuer
Include

- Fitch's end-of-period and average foreign exchange rate for
Argentine pesos to U.S. dollars;

- Average working interest production of 18,000boed from 2023 to
2025;

- Fitch's price deck for Brent per barrel (bbl) of USD80 in 2023,
USD75 in 2024, USD70 in 2025 and USD65 in the long term;

- Cement sales growth linked to Fitch's real GDP growth of
Argentina;

- Capex of USD368 million between 2023 and 2025, with average
annual capex of USD123 million;

- Average dividends of USD10 million paid each year from 2023
through 2025;

- Installed capacity of 415MW, increasing to 527MW in 2024;

- Renewables have 98% availability and a 45% capacity factor
increasing to 52% at a monomic price of USD45/MWh in 2023;

- CAMMESA/FODER pay on time.

RATING SENSITIVITIES

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

- An upgrade on the company is unlikely given its business
concentration and over size of its operations, but one may be
considered if the company further diversifies its business outside
of Argentina while maintaining its conservative capital structure
and investment discipline.

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

- Ecuadorian EBITDA does not cover Hard Currency interest expense;

- Material delay in CAMMESA/FODER payments that materially affect
working capital;

- A significant deterioration of credit metrics to total
debt/EBITDA of 5.0x or more.

- Weakening of liquidity.

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: As of 3Q23, PCR reported a cash balance of
USD194.2 million, which covers about four years of interest
expense. Fitch believes with a strong cash balance and cash flow
from operations, the company will adequately cover its interest
expense and upcoming maturities. Fitch believes the company's
maturity profile is manageable and the company has strong access to
local banks in the event it needs additional liquidity.

ISSUER PROFILE

PCR is an Argentine independent energy company focused on three
main activities: the exploration and production of hydrocarbons,
the production and distribution of cement and construction
materials, and renewable power generation.

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
   -----------             ------           -----
Petroquimica Comodoro
Rivadavia S.A.

                 LT IDR      B-   Affirmed    B-

                 LC LT IDR   B-   Affirmed    B-




===============
B A R B A D O S
===============

BARBADOS: Financial System Remains Stable
-----------------------------------------
RJR News reports that the financial system in Barbados remained
stable throughout last year and continued up to the end of the
third quarter of 2023, despite global economic and political
turmoil.

According to the 2022 Financial Stability Report released
yesterday, the domestic financial sector retained its capability to
serve as a conduit between savers and investors while also
providing clients with a range of credit, investment, and payment
options, the report notes.

The report is a joint publication by the Central Bank of Barbados
and the country's Financial Services Commission, according to RJR
News.

It was noted that financial stability was largely sustained by
improved domestic economic conditions, the report relays.

It said the majority of the sector's financial stability metrics
improved, including asset growth, credit quality, liquidity, and
capital adequacy, the report adds.




=============
B E R M U D A
=============

777 RE: A.M. Best Cuts Financial Strength Rating to B(Fair)
-----------------------------------------------------------
AM Best has downgraded the Financial Strength Rating to B (Fair)
from A- (Excellent) and the Long-Term Issuer Credit Rating to "bb"
(Fair) from "a-" (Excellent) of 777 Re. Ltd. (Hamilton, Bermuda).
Concurrently AM Best has placed these Credit Ratings (ratings)
under review with negative implications.

The ratings reflect 777 Re. Ltd.'s balance sheet strength, which AM
Best assesses as weak, as well as its adequate operating
performance, neutral business profile and marginal enterprise risk
management (ERM).

The rating downgrades reflect the revision of 777 Re. Ltd.'s
balance sheet strength assessment to weak from very strong, driven
by the material decline in the company's risk-adjusted capital
ratio, as measured by Best's Capital Adequacy Ratio (BCAR). This
resulted from the company's significant exposure to investments in
various 777 Partners LLC originated assets resulting in higher risk
charges. These concerns are heightened by uncertainty regarding the
financial condition of 777 Partners LLC as it has not provided
audited financial statements for the past two years.

The rating downgrades also reflect the revision of 777 Re. Ltd.'s
ERM assessment to marginal from appropriate, reflecting AM Best's
concern regarding the governance and risk management practices that
led to the significant investment in affiliated assets.

The company has been placed under review with negative implications
pending the completion of its plans to improve risk-adjusted
capitalization materially by divesting the majority of its
affiliated holdings.

Additional negative rating actions could occur if the company is
unable to execute on its plan to improve risk-adjusted
capitalization materially, if the quality of capital or assets
deteriorates further, or if the company's execution of its business
plan leads to a deterioration in its prospective operating
performance.




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

AMBIPAR PARTICIPACOES: Fitch Assigns 'BB-' IDRs, Outlook Stable
---------------------------------------------------------------
Fitch Ratings has assigned Ambipar Participacoes e Empreendimentos
S.A. (Ambipar) Long-Term Foreign and Local Currency Issuer Default
Ratings (IDRs) of 'BB-' with a Stable Rating Outlook. Fitch
currently rates Ambipar and its subsidiaries', Emergência
Participações S.A. (Emergência) and Environmental ESG
Participações S.A. (Environmental), Long-Term National Scale
Ratings 'AA-(bra)' with a Stable Outlook.

Ambipar's credit profile reflects its outstanding position in the
environmental services industry, with strong growth potential, and
the diversification of its revenues in countries that are more
economically stable than Brazil. The company also benefits from its
favorable track record of contract renewal and the reasonable
protection of its adequate margins, due to contractual pass-through
mechanisms of costs, which are mostly variable. Ambipar and its
subsidiaries' ratings are limited by its consolidated high gross
leverage, with important cash flow consumption by interests, as
well as the lack of a longer performance track record of the
company.

The Stable Outlook reflects Ambipar's ability to sustain robust
liquidity and gradual indebtedness reduction in the medium term,
under lower investments and absence of significant acquisitions,
which should bring gross and net leverage to more moderate levels.

KEY RATING DRIVERS

Favorable Business Model: Ambipar's business model includes a set
of service provisions in its two main operating segments:
environment (mainly waste management and recovery) and response
(mitigation of environmental damage from accidents). The
environment segment (where the subsidiary Environmental operates)
represents around 50% of the revenue and benefits from agreements
with an average duration of five years and low contractual exposure
to volume risk. The response segment (where the subsidiary
Emergencia operates) corresponds to around 50% of the revenue and
is supported by contracts lasting around three years, which are
renewable.

Approximately 25% of this revenue is recurrent, and the remainder
is related to the number of occurrences. The company's current
strategy, focused on organic growth, reduces its exposure to
acquisition execution risks.

Geographic Diversification: Ambipar's international activities are
mainly concentrated in low-risk countries in Latin America, in
addition to North America and Europe, which represent,
respectively, around 15%, 25% and 5% of its revenues. The record of
contract renewals, above 95%, reflects the absence of competition
with similar geographic coverage and service provision, which gives
the company a competitive advantage. The strategy is to work mainly
with private clients and expand its operations based on
complementary services, operating in an evolving industry, with low
penetration and high competitiveness.

Moderate Profitability: The services provided by Ambipar have an
EBITDA margin of 25% to 30% in Brazil and abroad. Approximately 70%
of the cost and expense structure is variable and mostly accounts
for personnel, which allows greater flexibility to adjust and
protect margins in scenarios of weak business demand. Service
provision contracts incorporate the pass through of payroll and
other non-manageable costs variations.

High Interest Payments: Debt interests should continue to represent
high cash commitments in the coming years. The base scenario
considers increase in EBITDA to BRL1.4 billion in 2023 and BRL1.5
billion in 2024, supported by business expansion, with cash flow
from operations (CFFO) reaching around BRL115 million and BRL415
million in the respective years, after interest payments. Estimated
investments range from BRL450 million to BRL500 million in the
two-year period, resulting in negative FCFs close to BRL376 million
in 2023 and BRL51 million in the following year.

High Gross Leverage: Fitch expects Ambipar to move its gross
debt/EBITDA ratio to more conservative levels. The expectation is
that gross leverage will be 5.7x at the end of 2023, with a
reduction to less than 4.5x in 2025, as the company expands its
EBITDA generation and uses part of its cash to repay debt. Net
financial leverage has been moderate, with Fitch's base case
scenario considering a reduction to less than 3.0x in 2025.

It also accounted for the equity injection of BRL717 million
concluded by the end of 2023 to strengthen its capital structure.
Fitch does not anticipate any material gross debt reduction and
also expects low to moderate reduction of around 0.5x on net
leverage ratio due to the capitalization. The high volume of debt
should result on interest coverage by EBITDA to remain low, at
1.2-1.5x, in 2023-2024, and above 2.0x from 2025 onwards.

Consolidated Approach: The assessment of Ambipar and its two
subsidiaries are on consolidated basis due to the high legal ties
between them, such as relevant guarantees and cross-default clauses
in the group's financial obligations, in accordance with Fitch's
'Parent and Subsidiary Linkage Rating Criteria'. Fitch also
considers the strategic and operational incentives to be high for
the holding company to support the two subsidiaries, if necessary.
Both are relevant for the group's revenue and EBITDA, with broad
growth potential and capturing synergies. Emergência and
Environmental are managed in an integrated manner.

DERIVATION SUMMARY

Ambipar's credit profile is weaker than that of Aegea Saneamento e
Participações S.A. (Aegea; BB/Stable). Both operate under
long-term contracts, with relatively stable demand, although
Aegea's business is more resilient. Aegea's EBITDA margins in the
range of 50%-60% are higher than those of Ambipar (around 25%),
although the geographic diversification of Ambipar's operations is
superior and strengthens its business model.

Ambipar's rating incorporates the expectation of a gradual increase
in its operating cash generation, while Aegea's considers the
important challenge of relevant investments and efficiency
improvements in important recently incorporated assets. Aegea's
financial profile presents high leverage due to the expectation of
the company's strong investment cycle and should remain close to
Ambipar throughout the rating horizon. Aegea's demonstrated access
to the debt market favors its financial flexibility.

Ambipar's credit profile evenly compares to FS Indústria de
Biocombustíveis Ltda's (FS; BB-/Stable), which operates in the
volatile Brazilian ethanol industry. FS and Ambipar's leverage
profiles are similar and Fitch incorporates both companies to
deleverage in the medium term. FS EBITDA margins at around 30% is
above Ambipar's and its low cash cost business model partially
mitigates its operations within riskier industry as compared to
environmental services.

KEY ASSUMPTIONS

- Average EBITDA margins of 27% from 2023 to 2025;

- Average annual capex of around BRL480 million from 2023 to 2025;

- Dividends of 25% of net income.

- Absent of acquisitions.

RATING SENSITIVITIES

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

- Longer track record of Ambipar's growth of operations;

- Net Debt/EBITDA below 3.0x and Gross Debt/EBITDA below 4.0x,
sustainably.

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

- Net Debt/EBITDA above 4.0x and Gross Debt/EBITDA above 5.0x,
sustainably;

- EBITDA interest coverage ratio below 1.5x, sustainably;

- Weakening of liquidity profile with refinancing risks increase;

- Deterioration of profitability with EBITDA margins below 22%.

LIQUIDITY AND DEBT STRUCTURE

Strong Liquidity: Fitch expects Ambipar to maintain robust
liquidity in the coming years also supported by the recently
concluded equity injection. By the end of June 2023, the group
registered strong balance of cash and equivalents, of BRL3.2
billion, as compared to short-term debt of BRL1.0 billion, a
coverage of 3.2x, and the expectation of negative FCF. The group
presents extended debt repayment schedule and has demonstrated
access to financing sources.

Ambipar's total consolidated debt, adjusted for acquisition
obligations, was BRL7.8 billion by the end of June 2023, mainly
comprised of debentures (65%) and working capital (around 20%). The
parent company's debt was BRL3.2 billion (mainly of debentures),
guaranteed by its subsidiaries.

ISSUER PROFILE

Ambipar provides environmental services in Brazil (around 60% of
the consolidated EBITDA), and the rest of Latin America, the United
States, Canada and the United Kingdom, in two large segments:
response (by mitigating and preventing environmental damage from
accidents) and environment (by managing and recovering industrial
waste from private clients.

   Entity/Debt                  Rating           
   -----------                  ------           
Ambipar
Participacoes e
Empreendimentos S.A.   LT IDR    BB-  New Rating
                       LC LT IDR BB-  New Rating


BRAZIL: Public Sector Logs Highest Deficit in September Since 2020
------------------------------------------------------------------
Arkady Petrov at Rio Times Online reports that in September,
Brazil's public sector recorded a primary deficit of R$ 18.1
billion ($3.70 billion).

This figure, announced by the Central Bank, is the highest for
September in the past three years, interrupting two consecutive
years of positive results for this month, according to Rio Times
Online.

The primary deficit reflects the revenues minus expenditures, not
including the debt interest costs, the report notes.

The federal government was the main contributor to this deficit,
showing a shortfall of R$16.5 billion (US$3.37 billion), the report
adds.

                          About Brazil

Brazil is the fifth largest country in the world and third largest

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

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

In mid-June 2023, S&P Global Ratings, revised the outlook on its
long-term global scale ratings on Brazil to positive from stable.
S&P affirmed its 'BB-/B' long- and short-term foreign and local
currency sovereign credit ratings on Brazil. S&P also affirmed its
'brAAA' national scale rating, and the outlook remains stable. The
transfer and convertibility assessment remains 'BB+'. The positive
outlook reflects signs of greater certainty about stable fiscal and
monetary policy that could benefit Brazil's still-low GDP growth
prospects. Continued GDP growth plus the emerging framework for
fiscal policy could result in a smaller government debt burden than
expected, which could support monetary flexibility and sustain the
country's net external position.

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

DBRS 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).




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

WOM SA: Fitch Cuts & Withdraws Foreign Currency 'B-' IDR
--------------------------------------------------------
Fitch Ratings has downgraded and withdrawn WOM S.A.'s Long-Term
Foreign Currency Issuer Default Rating (IDR) and Local Currency IDR
to 'B-' from 'B+' due to commercial reasons. Fitch has also
assigned Long-Term Foreign Currency and Local Currency IDRs of 'B-'
to WOM Mobile S.A., the holding company of WOM S.A. Fitch has
additionally downgraded the 2024 and 2028 unsecured
U.S.-dollar-denominated notes issued by Kenbourne Invest S.A. to
'B-'/'RR4' from 'B+'/'RR4'. In conjunction with these actions,
Fitch has placed the ratings of WOM Mobile S.A. and the unsecured
notes on Rating Watch Negative (RWN).

The downgrade reflects WOM's tight liquidity position and elevated
refinancing risk against a backdrop of closed capital markets. This
has impaired the company's ability to roll portions of debt and
sell assets. Additionally, Fitch expects the company to remain FCF
negative through at least 2024, further straining liquidity. The
ratings take into consideration the decision to postpone further
investments into WOM Colombia, WOM Chile's sister company.

The Rating Watch reflects heightened uncertainty regarding the
company's ability to improve its liquidity position materially in
the next months. Unless there is significant improvement on the
company's liquidity position or ability to refinance its maturities
in the next three months additional downgrades are likely to occur
given the increased risk of a debt restructuring or a distressed
exchange.

Fitch has downgraded and withdrawn WOM S.A.'s Long-Term Foreign
Currency IDR and Local Currency IDR due to commercial reasons.

KEY RATING DRIVERS

Refinancing Uncertainty: With persistent negative FCF and tight
liquidity, WOM faces heightened refinancing risk as its debt
maturities approach. WOM had readily available cash and equivalents
of CLP36 billion as of June 2023 compared to short-term debt of
CLP92 billion (including short-term bank debt of CLP12 billion and
receivables factoring of CLP80 billion). The company is in active
discussions with potential lenders and investors to try to
refinance its senior unsecured notes due November 2024 (USD348
million outstanding as of 2Q23). Fitch believes an exchange could
be a potential outcome given very challenging credit market
conditions. Positively, the company has announced that it intends
to postpone further investments into its sister company, WOM
Colombia, at least until after the refinancing process is complete
and the company is able to execute on its plan to continue to
deleverage. Further cash receipts from tower sales in 2023 and 2024
will help offset expected negative FCF and support WOM's liquidity
position, but refinancing of the 2024 notes is a key credit
concern.

Negative FCF: Fitch projects negative FCF of CLP115 billion in 2023
and negative CLP42 billion in 2024 largely due to elevated levels
of capex as the company continues to roll out its 5G network and
build capacity to meet growing demand for 4G and 5G service. Fitch
expects EBITDA to grow only modestly in 2023 as strong revenue
growth from postpaid subscriber growth and stabilization of ARPUs
is offset by continued cost pressures in the near-term. An adverse
outcome relating to the company's disputed delays in 5G tower
coverage requirements could further pressure FCF if WOM is required
to pay fines in the near-term.

Leverage to Remain Elevated: The recent announcement by WOM Chile
to postpone further investments into WOM Colombia (a separate
entity sharing the same controlling shareholder as WOM Chile)
should allow leverage to moderate in the near-term absent large
fines from Subtel. Fitch now expects that lease-adjusted net
leverage of WOM Chile will be 5.0x in 2023, and gradually decline
toward 4.5x over the rating horizon, consistent with the 'B'
category.

Competitive Telecom Market: The Chilean telecom market remains very
competitive, as incumbent operators have had to cut prices and
improve service to defend market share, pressuring margins and cash
flow. Fitch expects industrywide mobile ARPU to remain pressured in
the near term, although cost pressures impacting all of the mobile
operators and WOM's success in growing its market share have led to
somewhat improving pricing rationality in the mobile market. The
Chilean mobile market is relatively mature, although the ongoing
migration from prepaid to post-paid and the attendant growth in
data consumption present opportunities.

Proven Operating Track Record: After WOM launched in mid-2015, it
scaled rapidly, reaching approximately 8.0 million customers, more
than half of which are post-paid. The company has taken market
share from larger incumbents through its disruptive marketing
campaign, based on brand recognition, gigabyte-per-Chilean peso
value and retail experience. Fitch expects the company's market
share to grow modestly, but growth in market share will be more
modest than in prior years given greater focus on improving
profitability.

DERIVATION SUMMARY

WOM's ratings reflect the company's impressive operational track
record in Chile since its launch and Fitch's expectation that the
company will maintain high leverage. WOM has higher leverage and
greater refinancing risk than Chilean rival Telefonica Moviles
Chile S.A. (BBB-/Stable), and less scale and service
diversification. WOM is expected to carry higher net leverage over
the medium term than mobile leader Empresa Nacional de
Telecomunicaciones S.A.'s (Entel; BBB/Stable) as a result of its
high investment needs.

Chilean fixed-line provider VTR Finance N.V. (VTR; CCC-) is similar
to WOM in scale, while VTR's market position in fixed telecom
services has quickly deteriorated in recent years, resulting in a
weakened credit profile. Uncertainty surrounding VTR's joint
venture with Claro Chile has also weighed on VTR's credit profile.

Relative to Axtel (BB-/Negative), a Mexican B2B-focused telecom
operator, WOM has more consistently generated positive revenue and
EBITDA growth in recent years. Axtel however has been able to
sustain greater EBITDA margins and positive FCF whereas WOM has
demonstrated consistently negative FCF.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within Its Rating Case for the Issuer
Include:

- Subscribers grow to over 8 million by 2024, with more than 50%
post-paid consumers; service ARPUs flat to up slightly over the
rating horizon; fiber-optic network contributions are minor (5%-10%
of revenue);

- Revenue grows to CLP774 billion by 2025;

- EBITDA margins declining to around 20% in 2023 from 22% in the
past two years, reflecting the incremental lease expense; gradually
improving to around 22% longer term;

- EBITDAR margins (fully excluding leases) gradually improving to
around 37% over the rating horizon from 32.2% in 2022, benefiting
from economies of scale;

- Capex around 31% of revenue in 2023, 20% in 2024, and around 12%
thereafter;

- Net leverage (fully expensing leases) above 3.5x in 2023,
trending toward 3.0x by 2026;

- Net leverage (fully capitalizing leases) around 5.0x in 2023,
trending toward 4.5x over the rating horizon.

RATING SENSITIVITIES

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

- A positive rating action would depend on achieving greater
clarity on a pathway to refinance the 2024 notes.

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

- Inability to progress in refinancing of 2024 notes in the next
three months could lead to multi-notch downgrade;

- Additional investments into WOM Colombia that would impair WOM
Chile's liquidity position and prevent sustained deleveraging;

- Higher than expected fines materializing or additional liquidity
deterioration.

LIQUIDITY AND DEBT STRUCTURE

Limited liquidity: WOM has limited liquidity, with negative FCF
driven by high investment needs and approaching debt maturities. As
of June. 30, 2023, WOM had CLP36 billion of cash (about 84% of
which is in USD) with short-term debt consisting of CLP12 billion
in bank loans. Fitch also includes WOM's off-balance-sheet A/R
factoring facility with IDB Invest as short-term debt. As of June
30, 2023, the debt maturity profile for the outstanding notes is
USD348 million in 2024 and USD290 million in 2028.

WOM has recently announced that its previously announced minority
investment into WOM Colombia would be limited to USD16 million in
2023, down from the previously expected amount of USD100 million in
order to bolster WOM Chile's liquidity position given the company's
ongoing refinancing process.

ISSUER PROFILE

WOM S.A. is a Chilean telecommunications provider whose primary
business is the provision of mobile services. The company was
formed in 2015 after Novator Partners LLP purchased Nextel Chile
S.A.'s assets out of bankruptcy.

SUMMARY OF FINANCIAL ADJUSTMENTS

- Standard lease adjustments;

- Receivables factoring adjustments.

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          Recovery   Prior
   -----------             ------          --------   -----
WOM Mobile S.A.   LT IDR    B-  New Rating            WD

                  LC LT IDR B-  New Rating            WD

WOM S.A.          LT IDR    B-  Downgrade             B+

                  LT IDR    WD  Withdrawn             B-

                  LC LT IDR B-  Downgrade             B+

                  LC LT IDR WD  Withdrawn             B-

Kenbourne Invest S.A.

   senior
   unsecured      LT        B-  Downgrade    RR4      B+




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

DOMINICAN REPUBLIC: Former ICPARD Exec Advocates Tax Collection
---------------------------------------------------------------
Dominican Today reports that during the International Seminar
"Labor and Tax Business Perspectives 2024," organized by Tax &
Labor, Bacilio Sanchez, the representative of the tax area for the
Dominican Republic and former president of the Institute of
Accountants of the Dominican Republic, addressed the complexities
of the country's tax system.  Sanchez expressed concerns about the
tax collection system, particularly regarding the high arrears
contained in Title 1 of the tax code, which have made some debts
nearly impossible to pay, according to Dominican Today.

Sanchez advocated for the prompt approval of modifications to Title
I of the Tax Code, which is currently under consideration in
Congress, the report notes.  These proposed changes aim to
streamline collection processes and establish consistent procedures
in the relationship between the treasury and taxpayers, the report
relays.  He also encouraged taxpayers to take advantage of the
payment facilities provided by Law 51-23, which grants prescription
for old debts, and to prepare for the implementation of the
Electronic Invoices Law, set to modernize the tax system starting
in January 2024, the report discloses.

He emphasized the need for tax collection system reform to enhance
efficiency and fairness for all taxpayers, the report notes.
Sanchez believes that the introduction of e-invoicing will promote
transparency and traceability in business transactions, reduce tax
evasion, and enhance government revenue collection, the report
says.

The seminar, titled "Business Perception: Labor and Taxes 2024,"
gathered prominent figures in the legal and tax fields, serving as
a platform for discussing current trends and challenges in tax
management and business affairs in the Dominican Republic, 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.




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

BANCO DEL AUSTRO: Fitch Affirms 'CCC+' LongTerm IDR
---------------------------------------------------
Fitch Ratings has affirmed Banco del Austro S.A.'s (Austro)
Long-Term Issuer Default Rating (IDR) at 'CCC+' and Viability
Rating (VR) at 'ccc+'. The Government Support Rating (GSR) was also
affirmed at 'ns'.

KEY RATING DRIVERS

IDRs AND VR

Operating Environment with High Influence: Austro's VR underpins
its IDR. However, the ratings are capped by Fitch's assessment of
the operating environment (OE) score of 'ccc+'. Ecuador's sovereign
rating and broader OE considerations greatly influences the bank's
VR. The heightened sovereign political, fiscal and financing risks,
as well as the potential for renewed social unrest could negatively
result in rising non-performing loans (NPL), and limit the bank's
profitability and internal capital-generation capacity.

Moderate Franchise and Business Model: Austro is the eighth largest
bank in terms of gross loans (3.7%), assets (4.1%) and deposits
(4.5%) within private banks in the financial Ecuadorian system,
which is highly concentrated, with the six largest private banks
having approximately the 79.9% of total assets as of 3Q23. Austro's
loan portfolio is fairly diversified, with consumer loans
representing 49.0% of total loans, commercial 46.5% and mortgages
4.5%. Business model has been stable through economic cycle.

Asset Quality Metrics with Room of Deterioration: As of 3Q23,
Austro's regulatory impaired loan ratio, which is more conservative
than 90 days delinquency, to 3.4% (YE 2022: 2.4%), driven mainly by
the expiration of the regulatory flexibility to delay recognition
of deteriorated loans and OE risks. To mitigate this deterioration,
the bank has reduced its growth appetite, reflected by the
contraction of its loan portfolio as of 3Q23.

Reserve coverage of impaired loans decreased to 107.5%, aligned
with the increase of impaired loans. Fitch does not rule out
additional pressures on asset quality metrics, driven by a
challenging operating environment, weakened investment prospects,
potential for renewed social unrest, and economic slowdown.
Additionally, Fitch believes that the negative impacts of El Niño
weather pattern could pressure debtor's payment ability.

Steady Profitability Metrics: As of 3Q23, the operating profit to
risk-weighted assets (RWA) ratio stood at 1.5% (YE 2022: 1.7%),
driven by a steady NIM due to a higher growth in profitable
segments, such as consumer loans, to mitigate rises on funding
costs due to increased competition in the system. In addition, net
fees and commissions boosted operating income due to credit card
campaigns.

Fitch expects profitability ratios to remain stable, driven by
controlled loan impairment charges due to lower credit growth.
However, it doesn't rule out additional pressures driven by higher
funding costs, due to less liquidity and high competition for
deposits at a systemic level.

Adequate Capitalization Levels: Austro's Fitch Core Capital (FCC)
to RWA ratio of 11.6% and the regulatory capital ratio of 12.1% as
of 3Q23 remain adequate. In 3Q23 the bank's capitalization ratios
improved due to the new regulation that reduced the RWA density.
Fitch doesn't expect material deterioration on capitalization
ratios, since growth is expected to be moderate and given the
bank's commitment to capitalizing a minimum of 80% of profits to
sustain growth.

Adequate Funding Structure: Austro's funding structure is adequate,
although less diversified than that of the largest banks, with
customer deposits representing 92.4% of total funding as of 3Q23.
Loans-to-deposits ratio remains sound at 76.4% as of 3Q23 and
continues to compare favorably among its peers and the system's
average (94.7%) despite a decrease in deposits due to the decision
of the bank to reduce funding costs to protect its NIM, given a
highly competitive environment.

GOVERNMENT SUPPORT RATING

Austro's GSR is 'ns', since there is no reasonable assumption that
such support will be available since it is not considered a
domestic systemically important bank (D-SIB). Ecuador has limited
financial flexibility to support Austro, and the bank does not have
a lender of last resort.

RATING SENSITIVITIES

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

IDRs and VR:

- The IDRs are sensitive to changes in the sovereign rating, or
further deterioration within the local operating environment;

- The IDRs and VR could be downgraded if there is significant
deterioration in the banks' intrinsic credit profile, although
downside potential due to intrinsic financial deterioration is
somewhat limited, given the low VR level imposed by the sovereign
constraint.

GSR:

- The GSR has no downgrade potential, as it is at the lowest
possible level.

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

IDRs and VR:

- Austro's upside potential is limited. In the long term, a rating
upgrade would require improved prospects for the operating
environment and a meaningful and sustained improvement in the
bank's core profitability, along with improvement in the bank's
credit quality and capitalization.

GSR:

- Ecuador's propensity or ability to provide timely support to
Austro is not likely to change given the sovereign's low
sub-investment-grade IDR. As such, the GSR has no upgrade
potential.

VR ADJUSTMENTS

The VR of 'ccc+' has been assigned below the 'b-' implied VR due to
the following adjustment reason: Operating Environment (negative).

Fitch has assigned an Operating Environment score of 'ccc+' that is
below the 'b' category implied score due to the following
adjustment reason: Sovereign Rating (negative).

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
   -----------                     ------           -----
Banco del
Austro S.A.      LT IDR             CCC+  Affirmed   CCC+
                 ST IDR             C     Affirmed   C
                 Viability          ccc+  Affirmed   ccc+
                 Government Support ns    Affirmed   ns


BANCO GUAYAQUIL: Fitch Affirms 'CCC+' LongTerm IDR
--------------------------------------------------
Fitch Ratings has affirmed Banco Guayaquil S.A. (BG) Long-Term
Issuer Default Rating (IDR) at 'CCC+' and Viability Rating (VR) at
'ccc+'. Fitch also affirmed the Government Support Rating (GSR) at
'ns'.

KEY RATING DRIVERS

IDRs AND VR

Operating Environment with High Influence: BG's VR underpins its
IDR. However, the ratings are capped by Fitch's assessment of the
operating environment (OE) score of 'ccc+'. Ecuador's sovereign
rating and broader OE considerations highly influence the bank's
VR. The heightened sovereign political, fiscal, and financing
risks, as well as the potential for renewed social unrest could
negatively result in rising non-performing loans (NPL), and limit
the bank's profitability and internal capital-generation capacity.

Good Business Model: BG is the second largest bank in Ecuador, with
a market share of 12.2% by loans and deposits, respectively, as of
3Q23. BG's loan portfolio is fairly diversified, with commercial
loans accounting for 52.6% of total loans, 42.4% consumer and 5.0%
mortgages. The bank's business model has been stable through time;
it has a long track record of earnings stability, which have proven
to be resilient amid the economic cycles. However, BG's total
operating income level is almost three times lower than the market
leader.

Asset Quality Metrics Include Room for Deterioration: As of 3Q23,
BG's regulatory impaired loan ratio, which is more conservative
than 90 days delinquency, deteriorated to 2.8% from 1.4% at YE22,
driven by the expiration of the regulatory flexibility to delay
recognition of deteriorated loans and risk of the OE. Reserve
coverage of impaired loans remains sound at 155.4% and enhances the
bank's loss absorption capacity. Historically, the bank has
evidenced adequate asset quality ratios, reflecting a conservative
risk appetite; however, Fitch does not rule out additional
pressures on asset quality metrics, driven by a challenging
operating environment, the economic slowdown, the potential for
renewed social unrest, and lower credit growth. Additionally, Fitch
believes that the negative impacts of the El Niño weather pattern
could pressure the debtor's payment ability.

Higher Profitability Levels: BG's profitability has improved due to
controlled operating expenses and lower impairment charges due to
the excess of loan loss allowances. In addition to a steady NIM due
to a higher growth in profitable segments, the bank focused its
growth strategy on consumer loans in order to mitigate rising
funding costs caused by high competition in the system. As of 3Q23,
operating Profit to Risk Weighted Assets (RWA) ratio improved to
2.6% from 2.3%. Fitch expects BG's profitability to remain stable,
driven by controlled impairment charges due to lower growth.
However, it does not rule out additional pressures driven by higher
funding costs, due to less liquidity and high competition at a
systemic level.

Stable Capitalization Ratios: BG's Fitch Core Capital (FCC) to RWA
ratio stood at 12.5% (YE22: 12.41%), remaining at adequate levels.
The regulatory capital ratio of 15.2% as of 3Q23 is well above the
regulatory minimum of 9.0% and is mainly composed of Tier I capital
(approximately 77% of regulatory capital). Capitalization ratios
have benefited from the new regulation that reduced the weightings
for some types of assets. Fitch does not expect material
deterioration in capitalization levels of Ecuadorian banks, since
growth is expected to be moderate.

Ample Funding and Liquidity Levels: BG's liquidity position is
conservative but is decreasing due to OE risks. Loans-to-deposits
ratio remained sound at 94.1% as of 3Q23 but increased from 89.0%
at YE22. Historically, customer deposits have covered most of the
bank's funding needs (87.9% as of 3Q23). The bank maintains good
access to capital debt markets and wholesale funding. It benefits
from high quality available funds that represented 34.5% of
short-term deposits as of 3Q23, which is considered adequate by
Fitch. In order to complement its liquidity levels, the bank
maintains credit lines with local and foreign financial
institutions.

GOVERNMENT SUPPORT RATING

The GSR of 'ns' reflects that despite BG's important market share
and local franchise, Fitch believes that there is no reasonable
assumption of support being forthcoming from the sovereign due to
Ecuador's limited financial flexibility and the lack of a lender of
last resort.

RATING SENSITIVITIES

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

IDRs and VR:

- The IDRs are sensitive to changes in the sovereign rating or to
further deterioration within the local operating environment;

- The IDRs and VR could be downgraded if there is significant
deterioration in the banks' intrinsic credit profile, although
downside potential due to intrinsic financial deterioration is
somewhat limited, given the low VR level imposed by the sovereign
constraint.

GSR:

- The GSR has no downgrade potential, as it is at the lowest
possible level.

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

IDRs and VR:

- BG's upside potential is limited. In the long term, a rating
upgrade would require improved prospects for the operating
environment and a meaningful and sustained improvement in the
bank's core profitability, along with improvement in the bank's
credit quality and capitalization.

GSR:

- Ecuador's propensity or ability to provide timely support to BG
is not likely to change given the sovereign's low
sub-investment-grade IDR. As such, the GSR has no upgrade
potential.

VR ADJUSTMENTS

The VR of 'ccc+' has been assigned below the 'b' implied VR due to
the following adjustment reason: Operating Environment (negative).

Fitch has assigned an Operating Environment score of 'ccc+' that is
below the 'b' category implied score due to the following
adjustment reason: Sovereign Rating (negative).

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
   -----------                        ------           -----
Banco Guayaquil, S.A.

                    LT IDR             CCC+  Affirmed   CCC+
                    ST IDR             C     Affirmed   C
                    Viability          ccc+  Affirmed   ccc+
                    Government Support ns    Affirmed   ns


BANCO PICHINCHA: Fitch Affirms 'CCC+' LongTerm IDR
--------------------------------------------------
Fitch Ratings has affirmed Banco Pichincha C.A. y Subsidiarias'
(Pichincha) Long-Term Issuer Default Rating (IDR) at 'CCC+' and its
Viability Rating (VR) at 'ccc+'. Fitch typically does not assign
Outlooks to ratings in the 'CCC+' categories or below.

KEY RATING DRIVERS

IDRs, VRs and Government Support Rating (GSR)

Operating Environment with High Influence: Pichincha's VR underpin
its IDR. However, the ratings are capped by Fitch's assessment of
the operating environment (OE) score of 'ccc+'. Ecuador's sovereign
rating and broader OE considerations highly influence the bank's
VR. The heightened sovereign political, fiscal, and financing
risks, as well as the potential for renewed social unrest could
negatively result in rising non-performing loans (NPL), and limit
the bank's profitability and internal capital-generation capacity.

Asset Quality Metrics with Room for Deterioration: At 3Q23, the
regulatory NPL ratio, which is more conservative than 90 days
delinquency, deteriorated to 4.0% from 3.0% at YE 2022, reflecting
the unwinding of forbearance regulatory measures as of January
2023, economic slowdown, weather events, and weaker borrower
payment capacity in an unfavorable OE. The adequate loan loss
allowances coverage of impaired loans of 234.3% at 3Q23 supports
Pichincha's loan portfolio. Asset quality will likely improve at YE
2023 due to the seasonal stronger repayment capacity. Nevertheless,
in 2024, Fitch expects additional downside credit risk amid
prolonged economic uncertainty in Ecuador, but the ratio would
remain commensurate with the bank's rating category.

Stable Profitability: Pichincha's operating profit to risk-weighted
assets (RWA) ratio remained stable at 1.1% in 3Q23 compared to 0.9%
at YE 2022. Adequate profitability benefited from the lower cost of
credit by excess of loan loss allowances, compensating for
increased funding costs and reduced business volumes. Fitch expects
stable profitability in 2024 to result from controlled loan
impairment charges due to conservative reserve cushions and
moderate credit expansion.

Improved Capitalization: Pichincha's Fitch Core Capital (FCC) to
RWA ratio improved to 10.6% at 3Q23 compared to 9.6% at YE 2022,
reflecting lower RWA due to moderate credit growth, adequate asset
quality, and the regulatory change resulting in lower RWA density.
Furthermore, sound reserves coverage for impaired loans provide a
sound cushion to absorb potential losses. Fitch expects the FCC
ratio to remain stable or improve in 2024, driven by moderate
credit growth and conservative dividend payment.

Sound Liquidity: Pichincha's liquidity position is sound although
it has slightly reduced as core deposits grew by only 5% at 3Q23,
reflecting lower liquidity in the banking system due to OE risks.
The loan-to-deposit ratio deteriorated to 91.3% at 3Q23 compared to
89.3% at YE 2022. However, Pichincha's liquidity is sound as it
benefits from having the largest deposit market share in the
country and access to local and international financing. Fitch
expects some liquidity pressures in 2024, driven by low deposits
growth but mitigated by moderate credit expansion.

Government Support Rating: The GSR of 'ns' reflects that despite
Pichincha's important market share and local franchise, Fitch
believes that there is no reasonable assumption of support being
forthcoming from the sovereign due to Ecuador's limited financial
flexibility and the lack of a lender of last resort. At 3Q23,
Pichincha's market share in customer deposits was 28.7%.

RATING SENSITIVITIES

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

IDRs and VR

- The IDRs are sensitive to changes in the sovereign rating or
further deterioration within the local OE;

- The IDRs and VR could be downgraded if a relevant deterioration
of asset quality or profitability lead into a sustained decline in
the bank's FCC-to-RWA ratio below 9%.

GSR

- Pichincha's GSR has no downgrade potential as it is at the lowest
possible level.

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

IDRs and VR

- Pichincha's upside potential is limited. In the long term, a
rating upgrade would require improved prospects for the OE and a
meaningful and sustained improvement in the bank's core
profitability, along with improvement in the bank's credit quality
and capitalization.

GSR

- Ecuador's propensity or ability to provide timely support to
Pichincha is not likely to change given the sovereign's low
sub-investment-grade IDR. As such, the GSR has no upgrade
potential.

VR ADJUSTMENTS

Pichincha's VR of 'ccc+' has been assigned below the 'b' implied VR
due to the following adjustment reason: Operating Environment
(Negative).

Fitch has assigned an Operating Environment score of 'ccc+' that is
below the 'b' category implied score due to the following
adjustment reasons: Sovereign Rating (Negative).

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
   -----------                          ------           -----
Banco Pichincha
C.A. y Subsidiarias   LT IDR             CCC+ Affirmed   CCC+
                      ST IDR             C    Affirmed   C
                      Viability          ccc+ Affirmed   ccc+
                      Government Support ns   Affirmed   ns


BANCO PROCREDIT: Fitch Affirms 'B' LongTerm IDR, Outlook Stable
---------------------------------------------------------------
Fitch Ratings has affirmed Banco ProCredit S.A.'s (PCEC) Long-Term
Issuer Default Rating (IDR) and Short-Term IDR at 'B'. The Rating
Outlook for the Long-Term IDR is Stable. Fitch has also affirmed
PCEC's Shareholder Support Rating (SSR) at 'b' and the bank's
Viability Rating (VR) at 'ccc+'.

KEY RATING DRIVERS

PCEC's Shareholder Support Rating (SSR) drives its Long-Term IDR.

Shareholder Support Rating: PCEC's IDRs are driven by Fitch's
assessment of the ability and propensity of potential support it
would receive from its parent, ProCredit Holding AG & Co. KGaA
(PCH; BBB/Stable), if required. The 'b' Shareholder Support Rating
reflects Fitch's view of parent support as robust but constrained
by Ecuador's transfer and convertibility risks, captured by the 'B'
country ceiling rating.

Fitch's assessment of support considers the strategic role PCEC
plays for ProCredit Group through its operation, providing the
group's core products and services. The ProCredit Group is an
international group of development-oriented commercial banks with a
focus on Eastern Europe. Ecuador is the group's only remaining
operation in Latin America.

PCH's ability to provide timely support contemplates PCEC's
relative size of approximately 6% of consolidated assets. Fitch
believes any required support would be immaterial relative to the
parent's ability to provide it. The propensity and commitment of
PCH to provide support is reflected in the high level of
operational and managerial integration and the reputational
implications of subsidiary default. In addition, Fitch considers
the presence of related funding and guarantees during different
economic cycles in the support assessment.

VR

Operating Environment with High Influence: PCEC's SSR drives its
IDRs. However, the Viability Rating (VR) is capped by Fitch's
assessment of the operating environment (OE) score of 'ccc+'. The
heightened sovereign political, fiscal, and financing risks, as
well as the potential for renewed social unrest could negatively
result in rising non-performing loans (NPL), and limit the bank's
profitability and internal capital-generation capacity.

Negative Trend in Asset Quality: As of September 2023 (3Q23),
PCEC's regulatory nonperforming loans (NPL) ratio, which is more
conservative than 90 days delinquency, composed of a mix of
maturity that vary by segment type, deteriorated to 3.8% from 2.3%
at year-end 2022 (YE22). The decay on PCEC'S core asset quality
ratio was mostly due to the conclusion of regulatory forbearance at
YE22, exerting a general pressure on the Ecuadorian financial
system. The rest of the impact derives largely from customers with
lags in their payment behavior since the coronavirus pandemic.

PCEC's deterioration was accompanied by a worsening in its coverage
to 84.6% at 3Q23, from 117.6% at YE22. Amid economic downside risks
in Ecuador, Fitch now anticipates slightly greater NPL ratio
deterioration than expected previously.

Operating Losses: PCEC continues to capture still insufficient
pre-impairment profits to absorb loan impairment charges, also a
result of a lower interest margin and increased funding costs. This
was reflected in an operating losses-to-risk-weighted assets (RWA)
ratio of -1.10% as of 3Q23, versus -0.03 at YE22. Despite the
deterioration, Fitch does not rule out a slight improvement, given
the expectation of less dynamism in loans at a systemic level,
which would exert less pressure on loan impairment charges.

Parent Supported Capitalization: As of 3Q23, PCEC's Fitch Core
Capital (FCC)-to-RWA ratio deteriorated to 10.2%, comparing
unfavorably to the entity's four-year average of 13.5% due to
higher RWA. Fitch expects the entity's capitalization metrics to
remain cushioned by PCH's propensity to provide support and to
remain commensurate with the bank's rating category over the medium
term.

Stable and Adequate Liquidity: Fitch believes PCEC maintains a
stable funding structure and adequate liquidity. As of 3Q23, PCEC's
loans-to-deposits ratio was 123.2%, reflecting the bank's reliance
on external funding sources, which are primarily related to the
bank. This enhances Fitch's view of support. Fitch does not rule
out further funding diversification in line with retail deposits,
consistent growth and regulatory limits on parent funding.

RATING SENSITIVITIES

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

IDR/VR

- PCEC's IDRs could be downgraded if the country ceiling is
downgraded or if PCH's propensity or ability to support is
materially weakened.

- The VR could be downgraded in the event of a sharp deterioration
of the asset quality and consequently on its profitability metrics
that would significantly reduce capital metrics.

SSR

- PCEC's SSR could be downgraded if PCH's propensity or ability to
support materially weakens.

XGS

- PCEC's Long-Term IDR ex-government support (xgs) could be
downgraded if PCH's ability or propensity to provide support
weakens, as assessed by Fitch. The former could stem from an
increase in country risks as assessed by Fitch.

- Short-Term IDR (xgs) are primarily sensitive to changes in
Long-Term IDR (xgs) ratings and could be downgraded if the latter
is downgraded and the new Long-Term ratings map to lower Short-Term
ratings in accordance with Fitch's criteria.

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

IDR/VR

- PCEC's IDR could be upgraded in the event of an upgrade of
Ecuador's country ceiling.

- The VR has limited upside potential considering the still
challenging operating environment.

- An upgrade of PCEC's VR would also require sustainable
improvements of its profitability ratios.

SSR

- PCEC's SSR could be upgraded in the event of an upgrade of
Ecuador's country ceiling.

XGS

- An upgrade of PCEC's Long-Term IDR (xgs), which is constrained by
Ecuador's transfer and convertibility risks, would require an
upgrade of Ecuador's Country Ceiling, provided Fitch's view on the
parent bank's ability and propensity to provide support remains
otherwise unchanged.

- The Short-Term IDR (xgs) ratings is primarily sensitive to a
change in the Long-Term IDR (xgs) could be upgraded if the latter
is upgraded and the new Long-Term rating map to higher Short-Term
ratings in accordance with Fitch's criteria.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

PCEC's ratings are linked to ProCredit Holding AG's Long-Term IDR

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
   -----------                       ------             -----
Banco ProCredit S.A.

                  LT IDR              B      Affirmed   B
                  ST IDR              B      Affirmed   B
                  Viability           ccc+   Affirmed   ccc+
                  LT IDR (xgs)        B(xgs) Affirmed   B(xgs)
                  Shareholder Support b      Affirmed   b
                  ST IDR (xgs)        B(xgs) Affirmed   B(xgs)

PRODUBANCO: Fitch Affirms 'B-' LongTerm IDR, Outlook Stable
-----------------------------------------------------------
Fitch Ratings has affirmed Banco de la Produccion S.A. Produbanco y
Subsidiarias' (Produbanco) Long-Term Issuer Default Rating (LT IDR)
at 'B-' with a Stable Rating Outlook and its Short-Term IDR at 'B'.
Fitch has also affirmed Produbanco's Shareholder Support Rating
(SSR) at 'b-' and the bank's Viability Rating (VR) at 'ccc+'.

KEY RATING DRIVERS

Produbanco's Shareholder Support Rating (SSR) drives its Long-Term
IDR.

Supported IDRs: Produbanco's IDRs are driven by Fitch's assessment
of propensity and ability of the potential support it would receive
from its parent, Promerica Financial Corporation (PFC; B+/Stable),
if required. The 'b-' Shareholder Support Rating reflects Fitch's
view of parent support as good, considering Produbanco's consistent
key and integral strategic role for PFC's business through the
years, providing core products and services of the group.

PFC's ability to provide timely support contemplates Produbanco's
relative size of approximately 35% of consolidated assets; Fitch
believes any required support would be considerable relative to the
ability of parent to provide it. The propensity and commitment of
PFC to provide support is reflected in the significant operational
and managerial integration, as well as the high reputational
implications of subsidiary default.

VR

Operating Environment with High Influence: Produbanco's SSR
underpins its IDR. However, the Viability Rating (VR) is capped by
Fitch's assessment of the operating environment (OE) score of
'ccc+'. Ecuador's sovereign rating and broader OE considerations
highly influence the bank's VR. The heightened sovereign political,
fiscal, and financing risks, as well as the potential for renewed
social unrest could negatively result in rising non-performing
loans (NPL), and limit the bank's profitability and internal
capital-generation capacity.

Asset Quality Metrics with Room for Deterioration: Produbanco's
asset quality has historically been sound, reflecting its portfolio
composition, which is focused heavily on large corporations,
accompanied by a controlled risk policy. However, the conclusion of
regulatory forbearance and OE risks have resulted in asset quality
deterioration, as the bank's regulatory non-performing loan (NPL)
ratio, which is more conservative than 90-days delinquency,
increased to 3.0% at 3Q23 from 1.7% at YE22, with approximately
100bp explained by the local regulatory changes (December 2022 more
than 60 days, September 2023 more than 30 days delinquency). Amid
economic downside risks, Fitch now anticipates slightly greater NPL
ratio deterioration than expected previously. Nonetheless, the
agency expects this ratio to remain commensurate with the bank's
rating category over the medium term.

Modest Profitability Deterioration: Produbanco's profitability
metrics continue to be weaker than those of its closest peers.
Recently the metrics deteriorated as a result of a lower net
interest margin and higher credit costs. This resulted in a decline
of the operating profit to risk-weighted assets (RWA) ratio to 0.9%
at 3Q23 from 1.4% at YE22. Despite the decay, Fitch estimates
stability in Produbanco's profitability and does not rule out a
slight improvement given the expectation of reduced pressure on
loan impairment charges.

Pressured Capitalization: Produbanco's Fitch Core Capital (FCC) to
RWA ratio has remained slightly above Fitch's downside sensitivity
of 9% since 2018, reaching 9.3% at 3Q23, which results in a limited
capacity to absorb unexpected losses. Nonetheless, Fitch highlights
that this is part of the bank's parent efficient usage of capital
strategy, reflected in stable core capitalization metrics over
time. Moreover, the capital adequacy ratio under local regulation
benefits from the usage of subordinated debt, which is not included
in FCC calculation (3Q23: 13.0%). Produbanco's capital and leverage
score also considers the entity's adequate loan loss reserve
coverage (3Q23: 155%). Fitch anticipates capitalization evaluation
to remain commensurate to its rating category in the medium term,
sustained by steady internal capital generation and a more
conservative dividend strategy.

Good Deposit Base and Adequate Liquidity: The bank maintains a
funding structure reliant on deposits and with adequate liquidity
levels, which Fitch expects to continue over the rating horizon.
The bank's deposits decreased by the OE risks. The bank's funding
relies mainly on customer deposits, accounting for 87% of the loan
book, while financial and subordinated debt obligations composed
mostly of funds from multilateral agencies account for the
remaining 13%. At 3Q23, Produbanco reported a slender worsened loan
to deposits ratio of 98.4% from 90.1% at YE22, responding to a 1.4%
contraction in customer deposits in the same period in the face of
current OE conditions.

RATING SENSITIVITIES

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

IDR/VR

- Produbanco's IDRs could be downgraded if PFC's propensity or
ability to support materially weaken or in the event of regulatory
controls that could undermine potential support;

- The VR would be downgraded if the FCC-to-RWA ratio is sustained
below 9% without a credible plan to strengthen and restore
capitalization metrics along with a deterioration in its
profitability performance.

SSR

- Produbanco' SSR could be downgraded if PFC's propensity or
ability to support materially weakens or any likelihood of
regulatory controls that could undermine possible support.

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

IDR/VR

- Produbanco's IDR could be upgraded in the event of an upgrade of
PFC's Long-Term IDR. The VR has limited upside potential
considering the still challenging operating environment;

- Upside potential is limited. However, in the long term, a VR
upgrade would require improved prospects for the operating
environment and a meaningful and sustained improvement of capital
metrics and core profitability, combined with improvements in the
bank's asset quality.

SSR

- Produbanco's SSR has limited upgrade potential over the rating
horizon, given its size and relevance relative to PFC.

VR ADJUSTMENTS

Fitch has assigned an Operating Environment score of 'ccc+' that is
below the 'b' category implied score due to the following
adjustment reason: Sovereign Rating (negative).

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

Produbanco's ratings are linked to Promerica Fianncial
Corporation's LT IDR.

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
   -----------                       ------           -----
Banco de la
Produccion S.A.
Produbanco y
Subsidiarias      LT IDR              B-   Affirmed   B-
                  ST IDR              B    Affirmed   B
                  Viability           ccc+ Affirmed   ccc+
                  Shareholder Support b-   Affirmed   b-




===============
H O N D U R A S
===============

HONDURAS: Inflation Been Coming Down During Most of 2023, IMF Says
------------------------------------------------------------------
An International Monetary Fund (IMF) team led by Ricardo Llaudes
and supported by resident representative Christian Henn visited San
Pedro Sula and Tegucigalpa, Honduras, during November 5-9, 2023, to
discuss recent economic developments and the authorities'
implementation of their economic program supported by the Fund
through the ECF/EFF arrangements approved in late September. At the
conclusion of the visit, Mr. Llaudes issued the following
statement:

"The team discussed with the authorities recent economic
developments and the outlook for Honduras amid a more complex
global environment. Growth has been picking up since May and is
expected to close 2023 somewhat above 3 percent. Inflation has been
coming down during most of this year, despite recent increases in
global oil prices, and is expected to reach the BCH's reference
range in early 2024. Fiscal policy has remained prudent with
incipient signs of higher budget execution, in particular on
capital spending.

"Against the backdrop of a more challenging global outlook, with US
interest rates expected to remain higher, and a domestic
environment characterized by many challenges in the political
debate, policies to safeguard economic stability and foster
investment remain essential. Discussions centered on monetary and
exchange rate policies needed to ensure low inflation and preserve
external competitiveness and the country's international reserves,
which remain at adequate levels. Recent increases in banks' reserve
requirements are a valuable first step. It will be necessary to
decisively redouble efforts, in line with program commitments on
monetary and foreign exchange (FX) policies, to achieve these
objectives. Forthcoming Fund technical assistance will assist the
BCH in evaluating the monetary and exchange rate frameworks to
identify measures to strengthen these and improve the efficiency of
FX allocation.

"The team welcomed the authorities' focus on scaling up public
investment. In addition, progress continues in rolling out social
programs, especially Red Solidaria, while keeping them focused on
the poorest and most vulnerable. These efforts are critical to
increase economic opportunities and reduce poverty. The authorities
have also resumed domestic bond placements, essential to deepen
domestic financial markets. Timely adoption of the 2024 draft
budget submitted to Congress will be important to support inclusive
growth and preserve debt sustainability.

"The authorities emphasized their steadfast commitment to implement
their economic program. They pointed to recent achievements such as
the launches of customs reform and an electronic asset declaration
system for public officials, as well as publication of a public
borrowing policy. They reiterated their commitment to energy sector
reforms, including to improve the financial position of ENEE and
guarantee the adequate provision of energy. Key measures include
investment in transmission and distribution and stepping up
implementation of the national loss reduction program (NLRP).
Finally, timely bond issuances by ENEE are important to address
arrears and improve payment discipline.

"The IMF team would like to thank the authorities for their kind
hospitality and candid discussions and stands ready to continue to
support the government of Honduras in the implementation of its
economic reform program."




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

JAMAICA: Cost of Clothing and Footware Items Increase
-----------------------------------------------------
RJR News reports that the cost of clothing and footware in Jamaica
increased by 4.9 per cent on an annual basis as of September 2023.

The Statistical Institute of Jamaica (STATIN) says for the month of
September alone, consumers paid 0.6 per cent more for goods in this
category, according to RJR News.

'Clothing' specifically went up by 0.8 per cent.

This was mainly due to rises in the cost of 'Clothing materials'
and 'Garments,' the report notes.

The index for the group 'Footwear' rose by 0.2 per cent, resulting
from a 0.2 per cent increase in the cost of 'Shoes and other
Footwear' and a 0.5 per cent increase in the cost of services
relating to the 'Cleaning repair and hire for Footwear,' 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.




=============
U R U G U A Y
=============

MERCADOLIBRE INC: Fitch Affirms 'BB+' LongTerm IDRs, Outlook Stable
-------------------------------------------------------------------
Fitch Ratings has affirmed MercadoLibre, Inc.'s (MELI) Foreign and
Local Currency Long-Term Issuer Default Ratings (IDRs) at 'BB+'.
The Rating Outlook is Stable. In addition, Fitch has affirmed
MELI's USD1.1 billion senior unsecured notes due in 2026 and 2031
at 'BB+' and MercadoLivre.com Atividades de Internet Ltda.'s
(MercadoLivre) and Mercado Pago Instituição de Pagamento Ltda.'s
(Mercado Pago) Long-Term National Scale Ratings at 'AAA(bra)'. The
Rating Outlook is Stable.

MELI's ratings reflects its leadership position in the competitive
and underpenetrated e-commerce and digital payments sectors in
Latin America, its high geographic footprint and Fitch's
expectation that MELI will preserve good financial discipline while
it continues to invest in logistics and technology. MELI's strong
financial flexibility and the solid long-term fundamentals for the
industries are also embedded in the rating.

Mercado Livre's and Mercado Pago's ratings incorporate their strong
operating and legal ties with MELI and, therefore, ratings are
based on Fitch's "Parent and Subsidiary Linkage Criteria" and the
consolidated credit profile.

KEY RATING DRIVERS

Slow Economic Recovery in Latam: Macroeconomic headwinds will
continue to challenge consumption dynamics in Latin America in
2024, after an adverse environment in 2023, marked by stubborn
inflation and monetary tightening policy across major Central
Banks. Economic performance will remain muted, with largest
economies in the region (Brazil, Mexico, Colombia and Chile)
growing 1.6% on average in 2024, from 1.9% in 2023, while Argentina
will likely contract 2.5%, per Fitch's forecast.

Tamed inflation and the beginning of interest rate cuts will help
to gradually restore purchasing power, sustaining adequate gross
merchandise volume (GMV) and total payment volume (TPV) growth
rates to MELI even under macroeconomic uncertainties. Fitch expects
company's performance to remain resilient as MELI's superior
execution and competitive positioning in several verticals
continues to drive its market share and scale gains over peers.

Strong Business Profile: MELI's ratings reflect its leadership
position in the e-commerce and payment solutions in Latin America,
its geographic footprint across 18 countries in the region and
diversified service offering. MELI's scale and verticalization
through marketplace, classified, advertising, logistics, payments
and credit are key competitive advantages difficult to replicate.

Long-term industry fundamentals remain positive, and MELI will
continue to benefit from ongoing shifts to online shopping and
digital payments. The region is still highly underpenetrated, as
only 10%-12% of retail sales are online, and roughly half of the
population lacks adequate access to financial services.

Improving Financial Profile: MELI's financial profile has
consistently strengthened during the last three years, as a result
of its gains of scale across multiple business verticals,
increasing managed network and fulfillment penetration as well as
higher credit origination and advertising. The number of active
users rose to 170 million YTD Sep.23 compared with 127 million a
year earlier. Fitch forecasts MELI's consolidated GMV and TPV to
grow by 22% and 33% in 2023 and by average 15% and 22% in
2024-2025, with Mexico leading this growth, followed by Brazil.

Relatively stable take rates in commerce and increasing penetration
of high-margin credit business will translate into EBITDA of USD2.4
billion in 2023 and USD2.9 billion in 2024, with cost dilution and
new verticals driving profitability (17.5% average margin from
2023-2025). By 2025 Fitch believes Mexico will be responsible for
approximately 25% of GMV and 20% of direct contribution, from 20%
and 13% in YE2022.

Manageable Exposure to NPLs: Financial services will continue to be
an important growth area, as MELI expands its credit origination in
Mexico and Brazil due to the industry's long-term growth potential.
Non-performed loans (NPLs) are relatively high (~10% 90 days) but
are compatible with the business profitability, with Net Interest
Margin After Losses (NIMAL) above 30%. MELI's credit business
consists of loans to consumers (55% of total), merchants (22%) and
credit cards (23%).

Duration ranges between two and five months, while exposure per
user is USD200 to USD1.7 thousand, allowing MELI to adjust credit
offering if NPLs severely deteriorate. There are strong synergies
and cross selling between commerce, payments and credit. Fitch
forecasts that MELI's credit portfolio will grow between USD1.0
billion and USD2.0 billion per year in the next three years. This
would constitute the company's primary use of cash in the medium
term, along with USD600 million to USD1.1 billion in annual capex.

Conservative Capital Structure: Fitch expects MELI to preserve a
conservative capital structure, with EBITDAR/leverage and
EBITDAR/net leverage limited to 2.0x and 0.5x, respectively, in
2023 and 2024, and e-commerce-only, applying captive finance
adjustment at 1.5x and -0.5x. Fitch incorporated around USD360
million in share buybacks in 2023 and USD100 million per year in
2024-2025 and the early redemption of the USD400 million 2028
convertibles in 2023. As of September 2023, MELI's debt totaled
USD4.5 billion, including USD1.1 billion senior notes due in 2026,
2028 and 2031, USD1.4 billion in collateralized debt through SPEs
and USD900 million in deposit certificates at the non-bank
financial institution.

Competitive Environment: Competition in MELI's sectors remains
intense, and Fitch does not expect it to ease anytime soon, in
spite of consolidating trends. MELI was able to leverage its market
share in Brazil through superior execution and the weakening credit
profiles of large omnichannel players. Pure online Asian entities
(Aliexpress, Shopee, Shein, Temu) continue to strengthen their
footprint in Brazil, taking advantage of tax exemptions over
imported products and are able to offer competitive pricing.
However, they lack logistic efficiencies and an assortment of
products. Amazon is also becoming a relevant player in Brazil, as
it is in Mexico. Overall, Fitch sees more discipline in the
industry related to take rates, free shipping and subsidies, but
dynamics vary depending on each country and company strategy. In
the financial arm, MELI's main peers are smaller banks and
fintechs, which predominantly operate on a domestic level.

Strong Linkages with Controller: The Mercado Livre and Mercado Pago
ratings reflect the high legal, strategic and operational
incentives that would support MELI if needed and are based on the
entity's consolidated credit profile. The operational linkages are
characterized by the financial and strategic importance of the
Brazilian subsidiaries, which are both fully controlled by MELI,
directly or indirectly. The legal ties are strengthened by cross
acceleration clauses between the subsidiaries and the parent. MELI
also guarantees part of the Brazilian subsidiaries' debt. Besides
being MELI's largest market, Brazil also offers strong long-term
growth potential.

DERIVATION SUMMARY

MELI presents significantly lower scale as measured by revenues and
EBITDA when compared to international peers such as Amazon
(AA-/Stable), Alibaba (A+/Stable) and PayPal Holdings (A-/Stable).
This is due to the current market stage in Latin American
countries, which remains highly underpenetrated and offers better
long-term growth potential compared to the U.S., Europe and China.

MELI has been able to reduce the profitability gap to peers early
than anticipated by Fitch. Fitch projects 17.5% EBITDA margin for
2023-2025 compares well with Amazon's 16%-17% but is still below
Alibaba (20%) and Paypal (24%). This is due to a more competitive
environment and growth trends, which demand more investments in
logistics, marketing, IT and P&D. MELI's good operating performance
in the last years also positioned its gross leverage close to its
peers, with EBITDA(R)/leverage between 1.0x and 2.0x.

MELI's 'BB+' ratings are three notches below El Puerto de
Liverpool, S.A.B. de C.V.'s (Liverpool)'s 'BBB+' rating. This is
due to the latter's solid track record of delivering robust free
cash flows, very low leverage ratios and a leading position in the
Mexican retail sector. Liverpool operates 28 shopping malls in 22
cities and owns a non-controlling 50% stake in Grupo Unicomer Co.
Ltd. (BB-), which has more than a thousand stores selling consumer
durable products in 27 countries across Central America, South
America and the Caribbean. Liverpool's rating is also highly
exposed to Mexico's operating environment.

MELI is exposed to higher operating environment risk compared with
its international peers due to its presence in Latin America, which
exposes the company to currency fluctuations, capital controls
(Argentina) and volatile economies. Most of MELI's revenues and
profitability originate from non-investment grade countries.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within the Rating Case for the Issuer:

- GVM and TPV growing 22% and 33% in 2023 and 15% and 22% on
average in 2024-2025;

- Average commerce take rate at 16.4% between 2023-2025;

- Average fintech take rate at 3.7% between 2023-2025;

- Credit revenues representing 42% of fintech revenues between
2023-2025;

- Capex equivalent to 4.0% of net revenues in 2023, 5.4% in 2024
and 5.5% in 2025;

- No dividend distribution between 2023-2025.

RATING SENSITIVITIES

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

- Increased revenue and EBITDA contribution from investment-grade
countries;

- Commerce-only debt/EBITDA below 3.5x on a sustained basis;

- Commerce-only net debt/EBITDA below 2.0x on a sustainable basis;

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

- Mexican and Brazilian operations not jointly covering hard
currency debt service;

- Material reduction in USD cash at holding level not enough to
cover debt service of the notes;

- Significant deterioration of market position and/or operating
performance resulting in commerce-only debt/EBITDA and net
debt/EBITDA above 4.5x and 3.0x.

LIQUIDITY AND DEBT STRUCTURE

Robust Financial Flexibility: MELI's strong liquidity provides it
good flexibility to continue to grow in the next few years while
also investing in the business competitiveness. Liquidity consists
primarily of USD3.7 billion in readily available cash and
marketable securities, of which USD1.3 is in the U.S. or Spain, an
undrawn revolving credit facility of USD400 million and forecasted
USD600 million annual free cash flow, on average, after portfolio
financing. Short-term debt was USD2.3 billion, including USD670
million collateralized debt to fund credit origination and USD900
million in deposit certificates. MELI is also in the process of
redeeming its USD400 million 2028 convertible notes by exchanging
for shares.

The company has good access to the local and international banking
and capital markets though several funding sources and Fitch expect
it to continue to prudently manage financial profile and debt
schedule.

ISSUER PROFILE

MELI is the leading technology player in ecommerce and financial
services in Latin America with roughly 170 million active users, as
of September 2023. The company is present in 18 countries of the
region, with its largest operations in Brazil, Argentina and
Mexico.

SUMMARY OF FINANCIAL ADJUSTMENTS

- Fitch applied captive finance adjustments to calculate
commerce-only leverage.

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
   -----------              ------              -----
MercadoLivre.com
Atividades de
Internet Ltda.     Natl LT   AAA(bra)Affirmed   AAA(bra)

Mercado Pago
Instituicao de
Pagamento Ltda.    Natl LT   AAA(bra)Affirmed   AAA(bra)

MercadoLibre,
Inc.               LT IDR    BB+     Affirmed   BB+

                   LC LT IDR BB+     Affirmed   BB+

   senior
   unsecured       LT        BB+     Affirmed   BB+




=================
V E N E Z U E L A
=================

MERCANTIL CA: Fitch Affirms 'CC' LongTerm IDRs
----------------------------------------------
Fitch Ratings has affirmed Mercantil, C.A. Banco Universal's
(Mercantil) Long-Term Foreign and Local Currency Issuer Default
Ratings (IDRs) at 'CC'.  Fitch expects the bank to continue meeting
its overall financial obligations in the absence of government
intervention, given the bank's and the market's high level of
liquidity.

KEY RATING DRIVERS

IDR Driven By VR; Highly Influenced By OE: Mercantil's 'cc'
Viability Rating (VR) drives its IDRs. According to Fitch's Rating
Criteria, the operating environment (OE) constrains the bank's VR
and Fitch's assessment of the key rating drivers at one category
above the OE score of 'c'. The analysis of profitability ratios,
risk management and asset quality under the weakened OE and
hyperinflationary conditions is not meaningful to the ratings at
this time.

Strong Local Business Profile: Mercantil has a long track record
operating in Venezuela and has a well-known reputation in the local
market with solid and longstanding customer relationships. Among
private-sector banks, the bank ranks fourth in terms of assets and
holds a market share of nearly 15%. The bank offers a wide-range of
products and services that contribute to revenue diversification.
The bank has a proven capacity to adapt its operation and business
model despite difficult, high-risk market environment.

Sufficient Capitalization: The bank's tangible common
equity/tangible assets ratio as of June 2023 was 21%. Fitch expects
Mercantil to continue meeting regulatory requirements for
capitalization even under the challenging regulatory environment
that may result in a change in the capital regulatory framework.
More than half of the bank's capital is in the form of foreign
currency in accordance with the bank's strategy to protect the
stability of the bank's operations over the long term.

Retail, Deposit-Based Funding: Mercantil's liquidity metrics remain
satisfactory as the bank relies on its stable deposit base for its
funding. The bank also maintains a very liquid balance sheet as
cash and due from banks is the largest part of the bank's assets
representing nearly 45% of total assets. As of Sept. 30, 2023, the
bank's customer deposits accounted for 92% of the bank's non-equity
funding.

Mercantil saw a significant increase in deposits in local currency
and U.S. dollars during the past few years as the bank's well-known
franchise and reputation for conservative management continued to
attract a stable funding base. Retail deposits account for the
majority of the funding, but this is closely followed by deposits
from large corporations and SMEs. Loans only represented 67% of
customer deposits in September of 2023, but this has grown from
only 43% at December 2022 following the improved economy. Given the
high level of liquid assets, a negative mismatch between short-term
assets and liabilities is manageable, as long as domestic monetary
conditions remain liquid.

Stable and Resilient Asset Quality: The bank's loan portfolio
accounted for nearly 43% of total assets as of Sept. 30, 2023. The
bank has remained conservative with its risk appetite as loans only
represented nearly 67% of customer deposits at Sept. 30, 2023.
Mercantil's asset quality ratios continue to be satisfactory, as
the impaired loans to gross loan ratio was only 0.7% at September
2023.

However, it must be remembered that, aside from the bank's
conservative underwriting policies, part of the reason for such a
low percentage of impairments is the high level of inflation that
distorts the comparisons to international peers. The loan loss
allowance to impaired loan ratio was a conservative 359% at
September 2023. The bulk (45%) of the bank's assets are in the form
of cash and due from banks and 5% were loans and due from banks.
Liquid assets are concentrated in the Venezuelan Central Bank.

Profitability has Improved: High inflation combined with regulatory
intervention limit the meaningfulness of the bank's profitability
metrics. At YE 2022, the bank's reported an operating profit to RWA
ratio of 19.6% was driven in part by a strong growth in interest
income due to improved market conditions that enabled the bank to
increase its loan portfolio and net interest margin. By YE 2022 the
loan portfolio reached 29% of total assets (up from only 17% a year
earlier). By June 30, 2023 the bank had further grown its loan
portfolio to 37% of total assets. As a result, the bank's
profitability improved further. The operating profit/RWA as of June
30, 2023 rose to 33%.

Government Support Not Expected: Mercantil's Government Support
Rating of 'ns' reflects Fitch's expectation of no support as
support from the government cannot be relied upon given Venezuela's
weak fiscal position and lack of a consistent policy on bank
support.

RATING SENSITIVITIES

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

- While not Fitch's base case, due to capital controls and domestic
market liquidity, a persistent decline in deposits would pressure
ratings.

- A sustained decline in the bank's regulatory capital ratio,
either due to nominal growth or losses, which increases the risk of
some form of regulatory intervention, could also lead to a
downgrade.

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

- The upside potential to Mercantil's ratings is limited in the
near term due to the current operating environment.

VR ADJUSTMENTS

The adjustments to the implied viability rating factor scores that
resulted in the overall Viability Rating of 'cc' were as follows:

Operating Environment: The implied rating of 'b' was adjusted to
'c' due to Macroeconomic Stability (negative) and Regulatory and
Legal Framework (negative);

Business Profile: The implied score of 'b' was adjusted to 'cc' due
to Business Model (negative);

Asset Quality: The implied score of 'bb' was adjusted to 'cc' due
to Non-Loan Exposures (negative) and Underwriting Standards and
Growth (negative);

Earnings and Profitability: The implied score of 'bb' was adjusted
to 'cc' due to Earnings Stability (negative) and Risk-Weight
Calculation (negative);

Capitalization and Leverage: The implied score of 'bb' was adjusted
to 'cc' due to Capital Flexibility and Ordinary Support (negative),
and Leverage and Risk-Weight Calculation (negative);

Funding and Liquidity: The implied score of 'bb' was adjusted to
'cc' due to Deposit Structure (negative).

ESG CONSIDERATIONS

Mercantil has an ESG Relevance score of '4' for Financial
Transparency due to the distortion of its financial indicators from
hyperinflation and limited regulatory transparency, and changes in
regulatory framework, which has a negative impact on the credit
profile.

Mercantil also has as an ESG Relevance Score of '4' for Governance
Structure, which reflects the extent to which the regulatory
framework negatively affects the operating environment and the
bank's financial performance. This has a moderately negative impact
on the ratings in conjunction with other factors.

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
   -----------                      ------        -----
Mercantil, C.A.
Banco Universal   LT IDR             CC  Affirmed   CC
                  ST IDR             C   Affirmed   C
                  LC LT IDR          CC  Affirmed   CC
                  LC ST IDR          C   Affirmed   C
                  Viability          cc  Affirmed   cc
                  Government Support ns  Affirmed   ns



                           *********


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
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