/raid1/www/Hosts/bankrupt/TCRLA_Public/231214.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Thursday, December 14, 2023, Vol. 24, No. 250
Headlines
A R G E N T I N A
ARGENTINA: Fernandez Says Goodbye With 'Blue Dollar' Close to 1K/$
GAUCHO GROUP: Grosses $870K From Placement of Common Shares
B R A Z I L
BRASKEM SA: Moody's Lowers CFR to Ba2 & Alters Outlook to Negative
BRAZIL: Sees Sharp Decline in Vehicle Exports
BRAZIL: To Expand Farming by Transforming Degraded Pasture
C H I L E
AGROSUPER SA: Moody's Affirms Ba1 CFR & Alters Outlook to Negative
CHILE: Inflation Surprises Investors by Exceeding All Forecasts
C O L O M B I A
AVIANCA GROUP: S&P Affirms 'B-' ICR, Outlook Stable
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Updates Methods in Measuring Housing Deficit
G U Y A N A
GUYANA: Should Monitor Macroeconomic & Fin'l. Indicators, IMF Says
J A M A I C A
JAMAICA: Earned More Money Than Budgeted for April to September
X X X X X X X X
LATAM: Business Climate Hits Highest Since 2018
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A R G E N T I N A
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ARGENTINA: Fernandez Says Goodbye With 'Blue Dollar' Close to 1K/$
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Buenos Aires Times reports that Alberto Fernandez, the man who took
power after winning the 2019 election against Mauricio Macri, said
goodbye to the Casa Rosad and spent his last working day there,
before he handed over the presidential sash to Javier Milei in
Congress.
The Peronist leader has been rocked by currency turmoil during his
four years in office and the unofficial, parallel "blue dollar"
rate stood at 995 pesos for buying and 945 pesos for selling - just
shy of breaking into four digits, a turn of events seen often over
the last few months, Buenos Aires Times relays.
Underlining the huge gap between the 'blue' and the 'official'
rate, the latter stoofd at 382 pesos and 362 pesos respectively,
with a 161-percent gap between them, the report notes.
Over the last four years, the US currency has been under permanent
discussion, a constant part of public economic debate, the report
relays. It is worth noting that, although the dollar is not in
people's wallets or bags every day, it is the currency used to
trade internationally, which sets reference parameters for goods,
such as smartphones, services, such as streaming, raw materials,
such as oil, soy and wheat, among others, which can have an impact
on price rises, and by extension, inflation rates, the report
discloses.
On December 10, 2019, when Fernandez was inaugurated, the rate
stood at 63 pesos, after a 540-percent devaluation during the
Juntos por el Cambio administration, whereas the parallel "blue"
rate could be found at 69.50 pesos, after a 379.3-percent rise over
the four years between 2015 and 2019, the report relays.
According to figures from the Libertad y Progreso Foundation, over
the past eight years of government (December 9, 2015 to December 7,
2023), taking in the Mauricio Macri and Alberto Fernandez
presidencies, the official exchange rate has soared 506 percent
while the 'blue dollar' has risen 1,331 percent, the report notes.
In Congress, Alberto Fernandez himself has stressed that the
constant currency turbulence has been one of the causes behind
Argentina's economic "free-fall," the report relates.
"In his inauguration address, it was clear that he wanted to help
people. However, with all the determining factors we can add, such
as the [Covid-19] pandemic, he leaves behind a government with
completely out of control variables," stated economist Gaston
Lentini, the report discloses.
Two of his campaign promises were specifically related to these
topics: the quest for a "competitive dollar" (something that did
not happen if we compare the weight of the legal tender as against
other countries in the region) and the accumulation of Central Bank
reserves, another missed target, the report relays.
Hours after the Fernandez-Fernandez ticket was inaugurated, the
Central Bank's international reserves stood at US$43.785 billion.
Even though there were periods in which they rose, with an upper
ceiling of US$46.3 billion in August 2021, during the
administration there has always been a downward trend, the report
notes. The Central Bank currently has US$21.329 billion in
international reserves - the lowest value since March 2006, the
report recalls.
This can be explained, among other reasons, not only by the
macroeconomic imbalances caused by the different measures taken,
but also by the debt commitments with the International Monetary
Fund, with whom Argentina has a US$44.5-billion credit program, the
report relates.
According to the chief researcher of the Ecolatina consultancy
firm, Santiago Manoukian, the government's actions in this aspect
have been "extremely poor," the report notes.
"In 2021 certain inconsistencies started to be noticed and there
were corrections which were not carried out, when the world showed
favourable conditions. In 2022, we had a crisis of the debt in
pesos and the multiple exchange rates started, with the first 'soy
dollar' [scheme]. And [former economy minister] Martin Guzman's
resignation caused an overshooting of the dollar. That's where the
figure of [current Economy Minister] Sergio Massa showed up," he
told Perfil, the report relates.
The economist also pointed to "the foreign exchange delay" and the
gap between the official rate and the financial and parallel rates,
the report discloses. He also trained criticism on the SIRA import
system, which he considered "stepped on imports," with a record
debt for the Central Bank which stands at US$58.5 billion - a
"bomb" which is part of the legacy to be received by new president
Javier Milei, the report notes.
About Argentina
Argentina is a country located mostly in the southern half of South
America. Its capital is Buenos Aires. Alberto Angel Fernandez is
the current president of Argentina after winning the October 2019
general election. He succeeded Mauricio Macri in the position.
Argentina has the third largest economy in Latin America. The
country's economy is an upper middle-income economy for fiscal year
2019, according to the World Bank. Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.
The IMF's executive board completed on August 23, 2023, the fifth
and six reviews of Argentina's 30-month Extended Fund Facility
(EFF), and approved a US$7.5-billion disbursement to Argentina as
part of the larger program, which refinances payments Argentina
owes the institution from a previous bailout that failed to
stabilize the economy in 2018. Argentina would receive another IMF
disbursement in November of about US$2.75 billion pending another
staff-level agreement and board approval.
S&P Global Ratings, on June 13, 2023, raised its local currency
sovereign credit ratings on Argentina to 'CCC-/C' from 'SD/SD' and
0its national scale rating to 'raCCC+' from 'SD'. S&P also affirmed
its 'CCC-/C' foreign currency sovereign credit ratings on
Argentina. The outlook on the long-term ratings is negative. S&P's
'CCC-' transfer and convertibility assessment is unchanged. None of
its rated bond issues are affected.
S&P said the negative outlook on the long-term ratings is based on
the risks surrounding pronounced economic imbalances and policy
uncertainties before and after the 2023 national elections.
Divisions within the government coalition, and infighting among the
opposition, constrain the sovereign's ability to implement timely
changes in economic policy.
Fitch Ratings also upgraded on June 13, 2023, Argentina's Long-Term
Foreign Currency (FC) Issuer Default Rating (IDR) to 'CC' from
'C'and affirmed the Long-Term Local Currency (LC) IDR at 'CCC-'.
Fitch typically does not assign Outlooks to sovereigns with a
rating of 'CCC+' or below.
The upgrade of the FC IDR reflects that Fitch no longer deems a
default-like process to have begun, as the authorities have not
signaled a clear intention to follow through with an intra-public
debt swap announced in March. The new 'CC' rating signals a default
event of some sort appears probable in the coming years, regardless
of the outcome of upcoming elections. The affirmation of the LC IDR
at 'CCC-' follows the peso debt swap in June that Fitch did not
deem to be a "distressed debt exchange" (DDE).
Moody's Investors Service, in September 2022, affirmed Argentina's
Ca foreign-currency and local-currency long-term issuer and senior
unsecured ratings. The outlook remains stable. The decision to
affirm the Ca ratings balances Argentina's limited market access,
weak governance, and history of recurrent debt restructurings with
recent efforts to marshal fiscal and monetary measures to start
addressing underlying macroeconomic imbalances in the context of
the IMF program that was approved in 2022, according to Moody's.
DBRS, Inc. confirmed Argentina's Long-Term Foreign Currency Issuer
Rating at CCC and downgraded its Long-Term Local Currency Issuer
Rating to CCC from CCC (high) on March 3, 2023.
GAUCHO GROUP: Grosses $870K From Placement of Common Shares
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Gaucho Group Holdings, Inc. previously reported on a Current
Report on Form 8-K filed on Feb. 21, 2023, that the Company and an
institutional investor entered into that certain Securities
Purchase Agreement, dated as of Feb. 21, 2023 and the Company
issued to the Holder a senior secured convertible note, as amended
and warrant to purchase 337,710 shares of common stock of the
Company.
On Dec. 1, 2023, pursuant to the Note, the investor elected to
convert a total of $57,957 of principal, $2,857 of interest, and
$9,122.10 of premium into 145,000 shares of common stock of the
Company at a conversion price of $0.4823 per share.
As previously reported on the Company's Current Report on Form 8-K
filed on Nov. 27, 2023, the Company commenced a private placement
of shares of common stock for gross proceeds of up to $4,000,000
at a price per share which equals the Nasdaq Rule 5653(d) Minimum
Price definition, but in no event at a price per share lower than
$0.60.
On Nov. 30, 2023, pursuant to the Private Placement, the Company
issued a total of 346,535 shares of common stock for gross proceeds
of $210,000 at $0.606 per share.
On Dec. 1, 2023, pursuant to the Private Placement, the Company
issued a total of 100,000 shares of common stock for gross proceeds
of $60,000 at $0.60 per share.
On Dec. 4, 2023, pursuant to the Private Placement, the Company
issued a total of 1,000,000 shares of common stock for gross
proceeds of $600,000 at $0.60 per share.
Pending approval by the stockholders at the Company's Special
Meeting of Stockholders scheduled for Dec. 28, 2023, each investor
in the Private Placement will be afforded certain anti-dilution
protections for a period of 18 months following each closing of the
Private Placement. If, during the 18-month period following each
closing of the Private Placement, the Company issues or sells any
shares of common stock of the Company, then each participant in the
Private Placement will automatically be issued such number of
shares of common stock as is necessary to maintain the percentage
ownership that such participant would have had if the Dilutive
Issuance had not occurred.
The Company presently intends to use the net proceeds from the
Private Placement to extinguish debt, fund infrastructure
development at Algodon Wine Estates, and for general working
capital. The Company anticipates that the Private Placement will
be completed within a month from date of commencement.
About Gaucho Group
Headquartered in New York, NY, Gaucho Group Holdings, Inc.'s
(gauchoholdings.com) mission has been to source and develop
opportunities in Argentina's undervalued luxury real estate and
consumer marketplace. The Company has positioned itself to take
advantage of the continued and fast growth of global e-commerce
across multiple market sectors, with the goal of becoming a leader
in diversified luxury goods and experiences in sought after
lifestyle industries and retail landscapes.
Gaucho Group reported a net loss of $21.83 million for the year
ended Dec. 31, 2022, compared to a net loss of $2.39 million for
the year ended Dec. 31, 2021. As of March 31, 2023, the Company had
$21.01 million in total assets, $8.60 million in total liabilities,
and $12.40 million in total stockholders' equity.
New York, NY-based Marcum LLP, the Company's auditor since 2013,
issued a "going concern" qualification in its report dated April
17, 2023, citing that the Company has a significant working capital
deficiency, has incurred significant losses and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
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B R A Z I L
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BRASKEM SA: Moody's Lowers CFR to Ba2 & Alters Outlook to Negative
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Moody's Investors Service downgraded to Ba2 from Ba1 Braskem S.A.
("Braskem")'s Corporate Family Rating and the rating on Braskem
America Finance Company's Backed Senior Unsecured Global Bonds,
fully guaranteed by Braskem S.A. The outlook for both companies
were changed to negative from stable.
RATINGS RATIONALE
The downgrade of Braskem's ratings to Ba2 follows the potential
heightened risks related to the geological incident in Alagoas,
which comes at a time of strained credit metrics and weak cash
generation due to the petrochemical downcycle and still subdued
operations in Mexico, and Moody's assessment that Braskem's
leverage ratios throughout commodity price cycles and risks of
additional liabilities is more commensurate with a lower rating.
In Moody's view, the recent events in Alagoas may lead to an
additional provision of BRL1 billion for urgent relief and new
security areas, as requested by the plaintiffs of a Public Civil
Action filed by the Federal Public Prosecutors Office, Public
Prosecutors Office of the State of Alagoas and Federal Public
Defender's Office against the company and the Municipality of
Maceió. The potential for additional provision reduces the
visibility over future liabilities that were not covered in the
agreement Braskem ratified with authorities on December 2020 and
that can potentially arise from the more recent incident that has
been happening since late November. Total provisions related to
this incident amount to BRL14.4 billion, of which BRL9.2 billion
were disbursed until September 2023. The provisions did not
jeopardize Braskem's liquidity, but reduced the company's cushion
to ride through the downcycle.
While Braskem's robust cash position provides a good cushion
against the potential financial impact of the new provision, the
potential heightened risks related to the incident comes at a time
of high financial leverage. At the end of September 2023, Braskem
had total cash of BRL18.7 billion, plus a $1 billion (BRL5 billion)
committed credit facility, and only BRL4.3 billion in debt coming
due until the end of 2026, including Mexico's debt. However, the
company's Moody's adjusted gross leverage (including Mexico) peaked
at 15.7x times, and free cash flow generation was negative BRL4.7
billion in the twelve months ended September 2023, reflecting the
weak level of operations and the disbursements related to the
provisions in Alagoas. Moody's expects Braskem's adjusted leverage
(including Mexico) to decline to around 5.0-6.0x by year-end 2024
as the company's EBITDA improves along with petrochemical spreads,
and Braskem's cost saving initiatives to lead to a neutral free
cash flow generation even with the current disbursements related to
Alagoas.
Braskem's credit quality remains mainly supported by its large cash
position, lack of financial covenants that could threaten the
company's short-term liquidity amid a rising leverage, and track
record of positive free cash flow generation under adverse market
conditions. Moreover, the company announced measures to reduce
costs and cash outflows during the downcycle -- namely optimization
of commercial management, working capital and fixed and variable
costs; reduction in capex; and sale of non-core assets. Still, with
the resurgence of the uncertainties related to the liabilities of
Alagoas and continued subdued operations in Mexico, Braskem's
cushion to withstand the industry's weakness in the next few years
diminished.
Moody's will assess the evolution of Braskem's current liabilities
related to Alagoas and its operating environment, particularly the
trend of petrochemical spreads, and the company's ability to
increase its financial flexibility and generate positive free cash
flow during 2024. A reversal in the current deleverage and positive
free cash flow generation trend, or increased provisions in
Alagoas, would lead to additional negative pressure on the rating
in the next few quarters.
Braskem's rating continues to be supported by its size as the
largest petrochemical company in Brazil and in the Americas in
terms of production capacity of resins, with historically
above-industry-average operating margins because of high capacity
utilization rates, long-term client relationships and product
customization. The rating also reflects the company's dominant
market position in Brazil and its geographic diversification, with
operations in the US, Mexico and Europe. Finally, the company's
sizable cash position, track record of positive free cash flow
generation under adverse market conditions and liability management
initiatives support its good liquidity and are additional positive
credit considerations.
The rating is constrained by the sharp deterioration in credit
metrics since late 2022, weak industry conditions globally stemming
from global overcapacity as well as the company's high exposure to
the volatility of petrochemical spreads. The rating also considers
the dependence on Petroleo Brasileiro S.A. - PETROBRAS (PETROBRAS,
Ba1 stable) and Petroleos Mexicanos (PEMEX, B1 negative) for the
supply of naphtha and ethane in Brazil and Mexico, respectively,
although both have been declining over the past years. Additional
credit concerns include the potential additional liabilities
related to Alagoas, still subdued operations in Mexico and
Braskem's shareholders intention to divest the business.
As for the environmental, social and governance (ESG) factors
incorporated into Braskem' ratings, Moody's considered
environmental risks mainly related to the company's exposure to
waste and pollution and social risks related to responsible
production, in the context of the Alagoas geological incident and
its negative consequences to operations and effects on the
population and ecosystem. Braskem's operations have allegedly
caused geological damages in the northeast of Brazil, which has led
the company suspended its salt extraction, chlorine and caustic
soda activities in Alagoas and therefore operate in a nonintegrated
basis in the region, which increased its costs. While the
operational impact is limited, given that the affected segment
represents less than 5% of total EBITDA, the financial strain from
penalties, lawsuits and cash freezes has reduced the company's
available liquidity. The geological instability in Braskem's salt
mine area can lead to clean-up costs, increased expenses related to
ongoing monitoring and regulatory compliance, fines and
reputational and litigation risk.
RATING OUTLOOK
The negative outlook reflects the potential overhangs on Braskem's
credit quality coming from the incident in Alagoas at a time of
weakened operations and credit metrics. The outlook also reflects
Moody's expectations that Braskem's credit metrics will remain weak
for its rating category in the next 12-18 months, but that the
company will continue to prudently manage liquidity to preserve its
credit profile through the downcycle.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The rating could be downgraded if Braskem's liquidity profile
deteriorates because of additional material liabilities from
litigations and class actions, weaker than anticipated sales
volumes or petrochemical spreads that results in higher leverage or
cash burn, or more aggressive financial policies, including
dividend payout consistently above the minimum level established by
the law. Furthermore, negative rating pressure could result from
weaker operating results on a sustained basis or persistently high
leverage through the cycle, with total adjusted debt/EBITDA
(including Mexico) of 4.5x or above and interest coverage (measured
by EBITDA/interest expense) below 2.5x (0.7x in the twelve months
ended September 2023) on a sustained basis.
An upgrade of Braskem's rating is unlikely in the short-term, but
the rating outlook could be stabilized if the company resolves the
current overhangs related to the geological event in Alagoas, while
improving its liquidity, financial flexibility and credit metrics.
Longer term, the rating could be upgraded if Braskem shows a
continued track record of a conservative financial policy,
maintaining sound liquidity and positive free cash flow generation.
Quantitatively, an upgrade would also require leverage (as measured
by total adjusted debt/EBITDA including Mexico) sustained below
3.5x through commodity cycles.
COMPANY PROFILE
Braskem is the largest producer of thermoplastic resins
(polyethylene, polypropylene and polyvinyl chloride) in the
Americas, with an annual production capacity of 9.3 million tons.
Braskem also has a production capacity of 10.8 million tons of
basic petrochemicals such as ethylene, propylene and gasoline,
among others; and about 1.4 million tons of caustic soda, EDC and
chlorine. For the 12 months ended September 2023, the company
reported consolidated net revenue of BRL73 billion ($14.6 billion),
with EBITDA margin of 5%.
The principal methodology used in these ratings was Chemicals
published in October 2023.
BRAZIL: Sees Sharp Decline in Vehicle Exports
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Richard Mann at Rio Times Online reports that Brazil's vehicle
exports plummeted by 23% in November, a significant drop from the
previous month's total of 31,276 units to 24,068.
This decline also marked a 44.6% fall compared to last year's
month, according to Rio Times Online.
The National Association of Automotive Vehicle Manufacturers
(Anfavea) released these figures in their recent report, Rio Times
Online relays.
The decrease stems from reduced demand in Chile and Colombia, where
Brazil usually exports many vehicles, 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).
BRAZIL: To Expand Farming by Transforming Degraded Pasture
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Iolanda Fonseca at Rio Times Online reports that Brazil is
embarking on an ambitious plan to expand its farming without
damaging forests.
The government's new decree focuses on converting degraded pastures
into productive, eco-friendly agricultural lands, according to Rio
Times Online.
This move aims to protect the Amazon rainforest, of which Brazil
holds 60%, and halt deforestation by 2030, the report says.
Since taking office, President Luiz Inacio Lula da Silva has been
committed to reducing deforestation and promoting environmentally
friendly agriculture, the report relays.
This approach is expected to maintain Brazil's strength in
agricultural output, 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).
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C H I L E
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AGROSUPER SA: Moody's Affirms Ba1 CFR & Alters Outlook to Negative
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Moody's Investors Service has affirmed Agrosuper S.A.'s Ba1
Corporate Family Rating and Senior Unsecured Global Notes rating.
The outlook was changed to negative from stable.
RATINGS RATIONALE
The outlook change to negative reflects Agrosuper's subpar
financial results over the first nine months of 2023, and Moody's
expectation that persistent weak market fundamentals may keep
credit metrics strained over the next 12 months. In particular,
Agrosuper's exposure to volatility in commodity prices and the
overall protein industry, which is subject to risk factors such as
weather conditions, diseases, supply imbalances and global trade
variables, may pose a barrier to Agrosuper's profitability
recovery, which in turn may hinder the company's ability to reduce
its leverage metrics to levels more consistent with its Ba1
ratings.
In addition to factors that affected in general the protein
industry, mainly increase of grain costs, a decrease of poultry and
salmon prices and oversupply periods across different protein
segments, Agrosuper also experienced a challenging 2023 due to non-
recurring events that negatively impacted its performance. These
included avian flu outbreaks in Chile, affecting some of its
chicken and turkey plants, an isolated ISA virus outbreak and a
reduction in the share of premium product produced in the salmon
segment. This combination of factors led to an increase in
operational costs and a decrease in revenue, causing a significant
dip in profitability. The EBITDA margin (Moody's adjusted) fell to
7.7% as of LTM Sep-23, a sharp decline from 14.9% in 2022.
Moody's expects an improvement in Agrosuper's performance in Q4
2023, compared to previous quarters, however. This is driven mainly
by the recovery and normalization of export volumes in poultry.
This is particularly significant as most export markets for
Agrosuper's poultry were shut for most of Q2 2023 and part of Q3
2023, forcing the company to redirect almost all its volumes to the
local market during those periods. By the end of fiscal year 2023,
Moody's expects Agrosuper to have a debt to EBITDA ratio of around
4.6x (4.1x on a net debt basis). Moody's also expects the company's
profitability to continue to recover in 2024, with an EBITDA margin
of around 12.5%, which in turn would allow Agrosuper to reduce its
indebtedness and leverage to approximately 2.5x-3.0x by the end of
fiscal year 2024. This aligns more closely with the target level
stipulated in the company's fiscal policies and with the company's
Ba1 rating. However, a downside risk to this scenario is a
continued underperformance resulting from higher price volatility
in protein and commodity markets, and new outbreaks at the
companies' facilities given its geographic concentration in Chile.
Agrosuper's ratings affirmation is also based on its strong
business profile. The company boasts a diverse portfolio, including
pork, chicken, salmon, turkey, and processed food. It has strong
brands and holds a leading market share in various domestic market
segments. It is also the third-largest salmon producer worldwide.
Vertical integration across all its business segments gives
Agrosuper a competitive advantage, enabling higher efficiency and
profitability compared to regional peers.
The company also maintains a good liquidity profile. As of
September 30, 2023, Agrosuper had about $108 million in cash and
marketable securities and Moody's expects around $300 million in
cash flow from operations in 2024. These compare favorably with the
company's debt obligations of around $122 million next year
(apro-forma reported by the company following a liability
management performed in October 2023). If Agrosuper's profitability
and cash flow persist in performing below historical standards,
however, it could potentially lead to a deterioration in the
company's liquidity.
Agrosuper's ratings also consider certain constraints. These
include exposure and sensitivity to global protein and grain
prices, the cyclical nature of the protein industry, climate risk,
environmental regulations, and trade barriers in international
markets.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Agrosuper's ratings could be downgraded if its liquidity or
operating performance deteriorates. Quantitatively, a downgrade
could also occur if the company's leverage, as measured by
Moody's-adjusted gross debt to EBITDA ratio, remains above 3.5x and
cash flow from operations/debt stays below 20% on a sustained
basis.
An upgrade would require Agrosuper to show a resilient performance
regardless of the underlying macroeconomic environment and
consumption patterns in its key markets, maintaining a conservative
financial policy regarding capital allocation and dividend
payments. More stability in earnings, so that gross debt to EBITDA
is sustained below 2.0x (even though it may surpass this level
during the low points of the protein cycles), could also lead to an
upgrade.
Founded in 1955 and headquartered in Rancagua, Chile, Agrosuper is
a vertically integrated protein producer with more than 2,000
fresh, frozen and value-added products, and around 68,000 clients.
Through its meat business, Agrosuper produces chicken, pork, turkey
and processed food; through its aquaculture business, it produces
Pacific and Atlantic salmon. The company is vertically integrated
throughout the whole production and commercial chain and is Chile's
market leader in chicken, pork and turkey, with over 50% market
share as of September 2023. For year-end 2022, total revenue
amounted to $4.2 billion and assets totaled $4.7 billion.
The principal methodology used in these ratings was Protein and
Agriculture published in November 2021.
CHILE: Inflation Surprises Investors by Exceeding All Forecasts
---------------------------------------------------------------
Bloomberg News reports that Chilean consumer prices rose more than
three times as fast as analysts expected in November, surprising
investors ahead of the central bank's final monetary policy meeting
of the year.
Swap rates and the peso soared in response, Bloomberg News
reported.
Prices climbed 0.7% in the month, above the 0.2% median estimate of
analysts surveyed by Bloomberg, the report notes. While annual
inflation slowed to 4.8%, it also exceeded the 4.2% forecast, the
national statistics institute reported, the report relays.
Chile's central bank targets cost-of-living increases at 3%. "This
is a big surprise, as leading indicators and survey data pointed to
a modest month-to-month gain in November," Andres Abadia, chief
Latin America economist at Pantheon Macroeconomics, wrote in a
note, the report discloses.
The reading gives policymakers pause for thought after the latest
survey by the central bank showed economists expect a 75
basis-point interest rate cut on Dec. 19, the report relays.
The institution's President Rosanna Costa said that price shocks
have been dissipating, especially in volatile items, and inflation
has seen a relevant slowdown, the report notes.
Policymakers see cost-of-living increases converging to target by
the end of 2024, the report relays.
A key price gauge that excludes volatile items increased 6% in the
12 months through November and printed at 0.5% on the month, the
report discloses.
While inflation has slowed significantly, "this process is not over
yet," Costa said in a presentation at a seminar in Santiago, the
report notes.
Policymakers needed to "carefully evaluate" economic data and
trends as inflation's slowdown to the target has been more complex
in recent times due to intense shocks, the report adds.
===============
C O L O M B I A
===============
AVIANCA GROUP: S&P Affirms 'B-' ICR, Outlook Stable
---------------------------------------------------
S&P Global Ratings affirmed the 'B-' issuer credit rating and 'B'
issue rating on Avianca Group International's senior secured notes.
At the same time, SP affirmed the 'B-' issuer credit rating and
'B-' issue rating on LifeMiles' term loan B.
The stable outlook reflects S&P's view that Avianca will continue
strengthening its leverage metrics toward funds from operations
(FFO) to debt of 20% while it increases its capacity, taking
advantage of market conditions, passenger traffic, and its business
model.
Colombia's leading airline, Avianca, has strengthened its EBITDA
margins while addressing higher inflation and higher fuel prices.
Leverage metrics have remained consistent with S&P's expectations.
Avianca's loyalty program company, LifeMiles Ltd., has continued to
boost passenger traffic to the airline. In S&P's view, LifeMiles
remains a highly strategic subsidiary of the airline.
S&P said, "Avianca reported EBITDA margins of about 22% for the
first nine months of 2023, and we expect those margins to remain
stable for the next 12 months while Avianca increases capacity.
Avianca's third-quarter 2023 results showed a trend of profitable,
successful capacity growth amid higher passenger traffic. During
the nine months ended Sept. 30, the company increased available
seats per kilometer (ASK) by 33%, and it saw the number of
passengers it served on domestic and international flights surge
33%--all while maintaining a load factor of about 82%. This,
combined with 6%-7% growth in average fares, gave rise to the
company's good revenue performance, with revenue jumping 17% from
the same period last year. It's important to note that growth in
average fares on Avianca corresponds to the strategy of mitigating
increases in fuel and labor costs, while also improving
profitability.
"Going forward, we expect Avianca to expand its fleet by 17 units
in 2024 and by eight units in 2025, representing 26% and 8%
increases in ASK, respectively. While the industry will lose some
competitors in the Central and South American market by the end of
2023, such as Ultra and Viva, we expect Avianca to demonstrate its
ability to retain strengthen profitability while also increasing
its fleet capacity.
"Our stable outlook on Avianca reflects our view that it will
continue to maintain a sustained track record of FFO to debt
leverage metrics closer to 20% even as capacity growth increases
its lease obligations.Avianca's adjusted debt was $4.7 billion as
of the 12 months ended Sept. 30, 2023, an 18% increase from the
$3.9 billion recorded by the end of 2022 that was mainly the result
of a 46.6% increase in leases as the company expanded its fleet.
However, because of Avianca's higher base of EBITDA generation
stemming from the industry's recovery, Avianca's leverage metrics
improved in line with our expectations for the year, with FFO to
debt close to 20% (versus 2% in 2022). The company has been
successfully reducing leverage quarter over quarter with the
improvement in EBITDA. We expect will continue to monitor Avianca's
operating performance and the balance between capacity growth and
passenger traffic, while protecting its liquidity.
"Avianca is now part of Abra Group Ltd., and we expect this to
bring cost efficiencies and operating synergies to Avianca.On April
3, 2023, the Abra Group became Avianca's holding entity; the Abra
Group is an air transportation group that includes Avianca and the
economic interests on Gol Linhas Aereas Inteligentes S.A.
(CCC-/Negative/--)." As seen in other industry codeshare models, we
expect Avianca to:
-- Complement networks, connecting traffic in Europe, North
America, Brazil, and other countries in South America by
coordinating schedules;
-- Connect traffic to optimize the cargo segment;
-- Share spare parts and combine attractive fuel supply contracts
to reduce costs and achieve economies of scale; and
-- Expand its loyalty programs, making the customer perspective
more attractive, and combine the benefits of the programs.
As of this report's date, S&P has not seen any cash dynamics
towards the group.
S&P said, "The rating action on LifeMiles reflects our action on
its parent company, Avianca.The rating on LifeMiles remains capped
by the rating on its parent company given LifeMiles' status as a
highly strategic subsidiary of Avianca. The stand-alone credit
profile (SACP) on LifeMiles remains at 'b', and therefore, if
there's an upgrade of Avianca, the rating on LifeMiles will move
the same way.
"We continue to believe LifeMiles remains part of the group's
long-term strategy since the loyalty program enables it to increase
passenger traffic while also supporting the airline's reduction in
leverage. We believe LifeMiles' efforts to increase EBITDA will
enable its debt-to-EBITDA ratio to drop to about 3.0x by the end of
2024."
Avianca: S&P said, "The stable outlook reflects our view that
Avianca will continue to benefit from profitable passenger growth
over the next 12 months while it increases its fleet capacity. We
believe FFO to debt will continue strengthening to above 20%, and
we believe it will have consistent liquidity. We also expect
Avianca to continue gaining market share and positioning itself as
Colombia's leading airline, taking advantage of Ultra's and Viva's
exits."
LifeMiles: The stable outlook reflects the outlook on its parent
company, Avianca, given LifeMiles' status as a highly strategic
subsidiary. During the next 12-18 months, S&P expects LifeMiles to
continue deleveraging with debt to EBITDA ratios toward 4.0x and
discretionary cash flow (DCF) to debt of about 5%.
Avianca: S&P could lower the ratings on Avianca in the next 12
months if:
-- The company fails to benefit from passenger volume recovery and
improve its EBITDA, raising debt to EBITDA beyond S&P's
expectations and it concludes that the company's capital structure
is unsustainable; or
-- Avianca, under adverse conditions, burns its cash position
faster than S&P expects or makes significant capital expenditures
(capex) for growth and/or other cash outflows, and if it identifies
a potential default on its liquidity covenants.
LifeMiles: S&P could revise downward LifeMiles' SACP in the next
12-18 months if:
-- Debt to EBITDA remains above 4x and DCF to debt remains below
5%.
-- The company reduces its ability to maintain adequate
liquidity.
-- LifeMiles' business scale shrinks, given lower accrual of
Program Miles due to high penetration of Avianca's lowest fare
class, causing EBITDA margins to decline below 30%, on a consistent
basis.
Avianca: S&P could raise the ratings if Avianca establishes a track
record of sustainable increases in profitability and maintains FFO
to debt of 20% within the next 12 months while protecting its
liquidity position and managing aggressive capacity growth.
LifeMiles: A higher rating on LifeMiles would require an upgrade of
Avianca to 'B' while LifeMiles maintains or improves its SACP,
given S&P's assessment that it is a highly strategic subsidiary.
S&P could revise up the company's SACP if LifeMiles generates
higher EBITDA as a result of new alliances and operating
strategies, reducing debt to EBITDA to close to 3x and raising DCF
to debt above 5%, while also maintaining its healthy liquidity
position.
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Updates Methods in Measuring Housing Deficit
-----------------------------------------------------------------
Dominican Today reports that the Ministry of Housing and Buildings
(MIVED) and the National Statistics Office (ONE) have jointly
presented an updated methodology for measuring the housing deficit
in the Dominican Republic. The aim is to provide a comprehensive
and up-to-date view of the country's housing situation, benefiting
policymakers, academics, and the public, according to Dominican
Today.
This updated methodology aligns with the new legal framework for
the housing sector under Law 160-21 and the National Multiannual
Public Sector Plan 2021-2024, the report relays. It recognizes the
need for a holistic understanding of the country's housing reality,
the report relays.
The methodology update, based on the Continuous National Workforce
Survey (ENCFT), disaggregates indicators down to the province level
and includes additional variables, the report discloses. It
characterizes the housing deficit as either quantitative (lack of
housing units) or qualitative (deterioration in materials, space,
or services), the report says.
According to the results, the total housing deficit in the
Dominican Republic in 2018 is 1,464,463 homes, with 32.26% being
qualitative and 11.84% quantitative, the report notes. Most of the
deficit (73.54%) is in urban areas, with provinces like Santo
Domingo and the National District having the highest deficits, the
report relays.
The qualitative deficit is mainly due to the lack of basic
services, particularly access to water, the report notes. In
contrast, the quantitative deficit is primarily driven by homes
that need replacement, the report relays.
This updated methodology provides a valuable tool for addressing
housing challenges in the Dominican Republic and guiding housing
policies to improve living conditions for its citizens, 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 December 4, 2023, the TCR-LA reported that Fitch Ratings has
affirmed Dominican Republic's Long-Term Foreign-Currency Issuer
Default Rating (IDR) at 'BB-' and revised the Outlook to Positive
from Stable. Fitch says the Positive Outlook reflects a trend
improvement in governance, and robust growth prospects that should
lead to continued gains in per capita income. According to Fitch,
growth has decelerated in 2023, but it expects Dominican Republic
to recover to high levels during 2024-2025. External liquidity
metrics have improved in recent years, and foreign currency share
of government debt is on a downward path.
In August 2023, Moody's Investors Service 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.
===========
G U Y A N A
===========
GUYANA: Should Monitor Macroeconomic & Fin'l. Indicators, IMF Says
------------------------------------------------------------------
The Executive Board of the International Monetary Fund (IMF)
concluded the Article IV consultation with Guyana and considered
and endorsed the staff appraisal without a meeting.
The Guyanese economy has tripled in size since the start of oil
extraction (end-2019), from one of the lowest GDP per capita in
Latin America and the Caribbean in the early nineties. Oil
production is ramping up rapidly, supporting the highest real GDP
growth in the world in 2022 (62.3 percent). With the help of oil
revenues, first transferred to the budget in 2022, the government
has started investing heavily to address large development needs.
Fundamentals remain strong and there are no signs of inflationary
pressures or overheating as of yet.
Guyana's oil reserves per capita are one of the highest in the
world. Going forward, oil production will continue to expand
rapidly as four new fields will come on stream by end-2028.
Sustained real non-oil GDP growth is also expected, as the
government continues to invest in human capital, lower energy
costs, and build infrastructure, including for climate change
adaptation. Real GDP is expected to continue to grow extremely fast
in 2023 (38.4 percent) and on average of 20 percent per year during
2024-28.
Gross international reserves are expected to continue to accumulate
and reserves coverage to strengthen. Substantial savings will
accumulate in the Natural Resource Fund (NRF) in the medium-term.
Annual transfers from the NRF to the budget according to the NRF
Act will finance most of the increase in public capital spending to
meet developmental needs.
These very favorable prospects are accompanied by balanced risks.
On the upside, further oil discoveries would continue to improve
Guyana's long-term economic prospects and a construction boom would
support higher short-term growth than projected. The main downside
risks are overheating, leading to inflationary pressures and
appreciation of the real exchange rate beyond the level implied by
a balanced expansion of the economy. Other downside risks include
highly volatile commodity prices and adverse climate shocks as well
as governance concerns, which could negatively impact the economy.
Executive Board Assessment
In concluding the 2023 Article IV consultation with Guyana,
Executive Directors endorsed staff's appraisal, as follows:
The Guyanese economy continues to experience record growth,
supported by the government's modernization plans and unparalleled
oil and gas sector expansion. Guyana's external position at
end-2022 is assessed to be moderately stronger than the level
implied by fundamentals and desired policies. Guyana's
debt-sustainability analysis (DSA) indicates that the risk of
(overall and external) debt distress remains moderate, with debt
dynamics improving significantly with incoming oil revenues.
Overall real GDP growth is projected to grow 38.4 percent in 2023
and on average of 20 percent per year during 2024-28. Guyana's very
favorable medium-term growth prospects are accompanied by upside
risks--key among them being further oil discoveries that would
continue to improve growth prospects--and downside
risks--inflationary pressures and the appreciation of the real
exchange rate beyond the level implied by a balanced expansion of
the economy. Adverse climate shocks, and volatile or lower than
projected commodity prices, may also negatively impact the economy.
The key challenges are managing large resource revenue inflows to
ensure macro-economic stability and sustainability, while investing
steadily in people, physical infrastructure, and institutions.
Given the medium-term risks of inflationary pressures and real
exchange rate appreciation beyond the level implied by a balanced
expansion of the economy, staff recommend a continued focus on
maintaining macroeconomic stability through an appropriate policy
mix. Staff assess the 2023 policy mix to be appropriate, with
fiscal policy increasing public investment to address the large
development needs, and broad money growing in line with non-oil
GDP. Staff welcome maintaining debt sustainability and a balanced
growth path through moderating fiscal impulses over the
medium-term, while continuing to address development needs.
The authorities' commitment to fiscal discipline is welcome and
allows for a balanced growth path, with moderating fiscal impulses
projected to achieve a zero overall fiscal balance by 2028. Gross
international reserves and substantial saving in the National
Resource Fund are expected to continue to accumulate in the
medium-term.
Staff recommend adopting over the medium-term a comprehensive
medium-term fiscal framework (MTFF). As a fiscal anchor, staff
recommend setting a path for the non-oil primary balance (as a
percent of non-oil GDP) consistent with the ceilings the
withdrawals from the NRF of oil revenues which aim to ensure
inter-generational equity. The MTFF should encompass further
modernizing the public financial management framework, to contain a
clear medium-term fiscal anchor, a transition path, and an
operational target. Staff recommend periodic expenditure reviews to
ensure macroeconomic stability and preserve competitiveness by
setting the pace of public investment to take into account
absorption and institutional capacity constraints of the economy.
Staff recommend continuing close monitoring of macroeconomic and
financial indicators, tightening monetary policy stance, and using
macroprudential tools as needed. In the medium term, staff
recommends a review of the exchange rate framework to ensure that
it best serves the economy.
Staff support the authorities' efforts to maintain financial
stability and recommend completing the implementation of the 2016
FSAP recommendations. Staff welcome BoG's asset quality reviews,
the progress in conducting stress tests exercises, and the
authorities' strategies to promote financial inclusion. Staff
strongly support the authorities' commitment to complete the
implementation of the 2016 FSAP recommendations, including closely
monitoring sectoral lending exposures, related party lending,
banks' ownership structure and increasing competition in the
banking sector.
Staff commend the authorities' progress in strengthening AML/CFT,
governance, anti-corruption frameworks and support further advances
in their effective implementation.
Staff commend the authorities' progress to strengthen the
management of oil wealth and its fiscal transparency and recommend
addressing remaining gaps. In particular it is important to
implement the recommendations of the 2019 Extractive Industries
Transparency Initiative (EITI) reports, including in moving towards
electronic disclosure and adequate follow-up.
Staff welcome the authorities' climate efforts implemented through
LCDS 2030, which maintains forest coverage and preserves
sequestration rates, and aims to enhance nature conservation, by
including biodiversity conservation, watershed management, and the
ocean economy, and receive payments for these efforts.
=============
J A M A I C A
=============
JAMAICA: Earned More Money Than Budgeted for April to September
---------------------------------------------------------------
RJR News reports that Jamaica earned more revenue than budgeted for
April to September.
Economic Programme Oversight Committee (EPOC) Chairman Keith Duncan
says revenue and grants for the period amounted to $427.1 billion,
according to RJR News.
This surpassed the second supplementary estimates by $8.4 billion,
which is two per cent ahead of budget, the report notes.
Tax revenues amounted to $390.1 billion, or 1.8 per cent ahead of
budget, while non-tax revenues came in at $32.5 billion, the report
relays.
"This was actually a 14.6 per cent performance improvement compared
with last year for the same period. In other words, tax revenues
increased year over year by $49.7 billion," Mr. Duncan noted, the
report discloses.
He said this performance was linked to a marginal increase in some
receipts, the report says.
"PAYE . . . as ahead of budget by $5.3 billion, SCT imports higher
by $2.9 billion and other companies like taxes on profits were
ahead of budget by $2.5 billion, the report relays. So therefore,
from an overview of the economy, we can see this has been driven by
stronger economic performance than budgeted, along with
improvements in Jamaica's labor market," he outlined, 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.
===============
X X X X X X X X
===============
LATAM: Business Climate Hits Highest Since 2018
-----------------------------------------------
Richard Mann at Rio Times Online reports that the business climate
in Latin America has shown a significant improvement, reaching its
highest point since 2018, according to the Getulio Vargas
Foundation (FGV-Ibre).
This growth, marked by an increase to 102 points in the fourth
quarter, was driven by Mexico's progress across various economic
indicators, according to Rio Times Online.
Conversely, despite showing year-over-year improvements, Brazil
recorded a decline in its economic climate indicators during this
period, the report notes.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.
Copyright 2023. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.
Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.
The TCR Latin America subscription rate is US$775 per half-year,
delivered via e-mail. Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each. For subscription information,
contact Peter A. Chapman at 215-945-7000.
.
* * * End of Transmission * * *