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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

          Wednesday, December 20, 2023, Vol. 24, No. 254

                           Headlines



A R G E N T I N A

AGUA Y SANEAMIENTOS: Moody's Withdraws 'Ca' Corp. Family Rating
ARGENTINA: Crops Get Cheaper on Argentine Currency Plunge
ARGENTINA: November Inflation Quickened Before Milei Devaluation


B A H A M A S

BAHAMAS: Still a Choice for Private Wealth Management, Rolle Says


B R A Z I L

BANCO BTG: Moody's Affirms 'Ba2' LT Deposit Ratings, Outlook Stable
BRASKEM SA: Fitch Lowers IDRs to 'BB+' & Placed on Watch Negative
SOUTHROCK CAPITAL: Brazil Court OKs Bankruptcy Protection


C O L O M B I A

AVIANCA GROUP: Fitch Assigns 'B' LongTerm IDR, Outlook Stable


C O S T A   R I C A

BANCO DAVIVIENDA: Fitch Alters Outlook on 'BB+' LongTerm IDR to Neg


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Notes Job Growth; Significant Cut in Poverty


M E X I C O

CYDSA, SAB: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable


P U E R T O   R I C O

BED BATH: Panel Dings Suit Over 401(k) Bankruptcy Losses


S U R I N A M E

SURINAME: Implements Ambitious Economic Reform Agenda, Says IMF

                           - - - - -


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A R G E N T I N A
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AGUA Y SANEAMIENTOS: Moody's Withdraws 'Ca' Corp. Family Rating
---------------------------------------------------------------
Moody's Investors Service has withdrawn all the ratings assigned to
Agua y Saneamientos Argentinos S.A. (AYSA), including the CFR
previously rated Ca. At the time of withdrawal the outlook was
stable.

RATINGS RATIONALE

Moody's has withdrawn all of AYSA's ratings because the company has
exchanged its outstanding senior unsecured notes due 2023
previously rated and there is no other debt instrument rated by
Moody's outstanding.

COMPANY PROFILE

Agua y Saneamientos Argentinos S.A., a company 90% owned by the
Government of Argentina and 10% by an employee participation plan,
holds an exclusive concession for the provision of water and sewage
services to the City of Buenos Aires and 26 districts in the
Province of Buenos Aires. AYSA was created pursuant to Decree
304/2006 of the Argentine Executive Branch on March 21, 2006,
following the termination of the concession held until then by a
private sector operator.

LIST OF AFFECTED RATINGS

Issuer: Agua y Saneamientos Argentinos S.A.

Withdrawals:

Corporate Family Rating, Withdrawn, previously rated Ca

Outlook Actions:

Outlook, Changed To Rating Withdrawn From Stable

ARGENTINA: Crops Get Cheaper on Argentine Currency Plunge
---------------------------------------------------------
Buenos Aires Times reports that prices for grains slid after
Argentina, a major supplier, devalued its currency in a move that
could encourage farmers to sell more of their crops into global
markets.

Wheat futures for March delivery lost as much as three percent on
the Chicago Board of Trade, according to Buenos Aires Times.  Corn
and soybean contracts with similar maturity dates fell as much as
1.6 percent, the report notes.

Argentina's newly inaugurated administration has weakened the
nation's official exchange rate to 800 pesos per dollar, marking
the first steps of President Javier Milei's "shock therapy"
measures to boost exports and fix a crumbling economy, the report
relays.  The move means grain producers will now receive more cash
from their sales, which are typically tied to dollar values on
export markets, encouraging more exports, the report discloses.

Any increase in Argentine exports comes when grain prices have
generally been curbed by rising supplies and lagging demand, adding
further pricing pressure, the report says.

"Certainly what happened in Argentina contributed to the weakness
that we see today," said Arlan Suderman, chief commodities
economist at StoneX Financial Inc., the report notes.

The devaluation should spur sales of the little more than 2 million
metric tons of soybeans left over from this year's harvest, the
report relays.  Farmers also have 5.4 million tons of corn and 11
million tons of wheat left to sell, according to Argentine
brokerage house Zeni, the report discloses.  The revised exchange
rate should also more than offset the impact of higher taxes on
corn and wheat, a move aimed at boosting government revenues, Zeni
analyst Eugenio Irazuegui said, the report says.

The new exchange rate "is going to get the market moving," said
Juan Ouwerkerk, who heads an agriculture cooperative in Buenos
Aires Province, the report relays.  "We'll start to see selling
after a very quiet for weeks," he added.

A weaker peso may also boost the cost of imported agricultural
inputs such as fertilisers, partially offsetting the increase in
farmers' revenues. Still, Francisco Perkins, a grower in Pehuajo,
Buenos Aires Province, said farmers are better off in the long run
with Milei, the report notes.

"This exchange rate is much more competitive," Perkins said.
"We're on the right path," he added, notes the report.

                       About Argentina

Argentina is a country located mostly in the southern half of South
America. Its capital is Buenos Aires. Javier Milei is the current
president of Argentina after winning the November 19, 2023 general
election. He succeeded Alberto Angel Fernandez in the position.

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

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

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

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

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

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

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

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

ARGENTINA: November Inflation Quickened Before Milei Devaluation
----------------------------------------------------------------
Manuela Tobias at Bloomberg News reports that Argentina's inflation
soared above 160 percent in November ahead of President Javier
Milei's massive currency devaluation that's likely to accelerate
price increases ever further this month.

Consumer prices rose 12.8 percent in November from a month earlier,
above the 11.4 percent median estimate of economists surveyed by
Bloomberg.  From a year ago, inflation hit 160.9 percent, the
highest level since the early 1990s when Argentina was exiting
hyperinflation, according to Bloomberg News.

The figure is already outdated, as Milei won a presidential run-off
against former economy minister Sergio Massa on November 19,
ushering in the end of price freezes on hundreds of products that
were set to expire after the election and a major currency
devaluation of 54 percent that's expected to send prices spiraling,
Bloomberg News  relays.

The first days of December have already seen price increases of 15
percent compared with a month earlier, and may end the month up
around 20 percent, according to consulting firm C&T Asesores,
Bloomberg News discloses.  Inflation is the result of "a general
coming clean on prices," including gasoline, according to economist
Maria Castiglioni, the firm's director, Bloomberg News says.
JPMorgan Chase & Co forecasts an accumulated rise in prices of 60
percent in December and January, according to a recent note,
Bloomberg News reports.

Food and beverages led all price increases in November, followed by
clothing and living expenses, Bloomberg News discloses.

In addition to the devaluation, Milei's economy minister, Luis
Caputo, announced a package of measures to cut spending by the
equivalent to 2.9 percent of gross domestic product in order to
reach fiscal balance in the next year, including critical subsidies
to energy and transport, Bloomberg News  relays.  The new
government acknowledges the measures will be recessionary - but
promises they're the last hard pill Argentines will have to swallow
to redress the previous government's economic mismanagement,
Bloomberg News notes.

Milei braced Argentines for tough times ahead in a bleak speech as
he took his oath of office, repeating several times that "there is
no money" - a phrase echoed by Caputo during his recorded
announcements, Bloomberg News relays.  Milei warned if drastic
measures were not taken now, Argentina could see annual inflation
reach 15,000 percent, Bloomberg News notes.

The Central Bank maintained the benchmark Leliq rate at 133 percent
while lowering the interest rate on one-day repo notes to 100
percent from 126 percent, Bloomberg News adds.

                       About Argentina

Argentina is a country located mostly in the southern half of South
America. Its capital is Buenos Aires. Javier Milei is the current
president of Argentina after winning the November 19, 2023 general
election. He succeeded Alberto Angel Fernandez in the position.

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

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

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

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

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

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

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

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



=============
B A H A M A S
=============

BAHAMAS: Still a Choice for Private Wealth Management, Rolle Says
-----------------------------------------------------------------
RJR News reports that Central Bank Governor in the Bahamas John
Rolle, says the country remains a center of choice in the western
hemisphere for private wealth management, despite several global
challenges.

He said the Bank of Nova Scotia Trust Company Limited operating
there is a testament to a sound business model that has
successfully adapted even as the financial sector continues to
align itself with evolving global regulatory and compliance
standards, according to RJR News.

Mr Rolle said during the transitioning out of the 1960s, the
Bahamian register of banks and trust companies was drastically
reduced to weed out hundreds of entities that were damaging to the
reputation of the sector, the report adds.




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

BANCO BTG: Moody's Affirms 'Ba2' LT Deposit Ratings, Outlook Stable
-------------------------------------------------------------------
Moody's Investors Service has affirmed all ratings and assessments
assigned to Banco BTG Pactual S.A. (BTG, BTG Pactual, or the bank),
including the bank's long and short-term local and foreign currency
deposit ratings of Ba2 and Not Prime, the foreign currency senior
unsecured MTN program rating of (P)Ba2, as well as the long and
short-term local and foreign currency counterparty risk ratings of
Ba1 and Not Prime. The bank's Baseline Credit Assessment (BCA) and
Adjusted BCA of ba2 were also affirmed as well as its long and
short-term counterparty risk assessments of Ba1(cr) and Not
Prime(cr). The outlook on BTG's long-term deposit ratings was
maintained stable.

At the same time, Moody's also affirmed all ratings assigned to
Banco BTG Pactual S.A., Grand Cayman Branch (Grand Cayman Branch)
and Banco BTG Pactual S.A., Luxembourg Branch (Luxembourg Branch),
including the foreign currency senior unsecured debt rating of Ba2
and the foreign currency subordinate debt rating of B1 (hyb) at
Grand Cayman Branch and the foreign currency senior unsecured MTN
rating of (P)Ba2 at Grand Cayman Branch and Luxembourg Branch.

RATINGS RATIONALE

The affirmation of BTG's ba2 BCA acknowledges its large and
well-positioned investment banking and financial advisory franchise
with a growing arm in the commercial and digital banking segments,
a strategy that has helped to enhanced earnings diversification
over the past five years. BTG's asset management and wealth
management activities have presented consistent expansion over time
providing sound earnings recurrence  and increasing stability to
revenues structure,  supported by discipline and sophisticated risk
architecture. In affirming the bank's BCA, Moody's acknowledges the
benefits of expansion into retail banking and its leading track
record in the Brazilian investment industry that benefits BTG's
access to steady deposit base from high-income individual and
corporate customers, balancing  its intrinsic reliance on
confidence sensitive market-based funding, which remains above
other same-rated peers in Brazil.

BTG leading track record in investment banking in Brazil, as well
as in capital market activities continues to expose the bank's
profitability to relatively higher volatility when compared to
peers. Sales and trading continue to represent a significant share
of total revenues, accounting for 30.4% as of September 2023, and
investment banking contributed for an additional 7.3% of total
revenues in the same period. Notwithstanding, the bank has been
demonstrating its capacity to consistently increase businesses
scalability in more diversified segments that have been adding
earnings recurrence. Corporate lending accounted for 23.8% of the
total revenues in September 2023, up from 15.9% in 2018, while
earnings from asset and wealth management represented  a share of
22.3% of total revenues. In the first nine months of 2023, BTG
reported net income to tangible assets at a high 1.9% in line with
the average in the past five years.

In terms of asset risk, problem loan ratio reached 3% in September
2023, above 1.6% one year prior and 2.6x the ratio in September
2021, mainly because of a single borrower, a case that occurred in
the first quarter of 2023. At the same time, the bank continues to
expand lending above the market levels (23.8% in the 12 months
ended in September 2023) increasing its footprint into servicing
medium size companies (SME) with relatively higher spreads, beyond
its core operations with large corporates. This high-growth
strategy into SME is mitigated by conservative collateralization
structures and high loan loss reserve buffer maintained by the bank
at 145% of problem loans in September 2023.

BTG's capitalization, measured by tangible common equity as a
proportion of risk weighted assets (TCE/RWA), was 10.2% as of
September 2023, up from 9.4% in September 2022, mainly due to
earnings retention. The bank`s adequate replenishment capacity and
ample access to local and foreign capital markets will continue
supporting its lending growth strategy and the expansion of its
digital retail banking platform.

Moody's assessment also reflects the large volume of highly liquid
assets held by BTG, which amounted for BRL217.0 billion as of
September 2023, or 44.1% of tangible banking assets. In September
2023, liquidity coverage ratio remained high at 196%, with
improving long-term stability of its funding mix. BTG's total
funding grew 11.0% in the 12 months that ended September 2023,
boosted by long-term local capital markets issuances, including
subordinate notes, and has demonstrated sustainable increase of
retail customer base through its fast-growth digital platform.

The ba2 BCA continues to reflect BTG's complex legal structure with
a large number of direct and indirectly controlled entities and
higher exposure to capital market activities, that exposes the bank
to tail risks events, when compared to other banks at the same
rating level in Brazil. However, Moody`s notes that BTG's strong
governance frameworks and related controls and processes partially
mitigates this risk.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

BTG's BCA and deposit ratings are unlikely to face upward pressure,
because they are currently at the same level of Brazil's Ba2
sovereign bond rating, which carries a stable outlook.

Conversely, the rating could be downgraded if the Government of
Brazil's sovereign rating is downgraded, or if its loan growth
strategy leads to a greater than expected increase in asset risk
for BTG Pactual or if the bank's capitalization ratio drops
sharply. Downward rating pressure could also be triggered by
weakening liquidity, which could increase the bank's intrinsic
vulnerability to its institutional-based funding structure.

LIST OF AFFECTED RATINGS

Issuer: Banco BTG Pactual S.A.

Affirmations:

Adjusted Baseline Credit Assessment, Affirmed ba2

Baseline Credit Assessment, Affirmed ba2

LT Counterparty Risk Rating (Foreign Currency), Affirmed Ba1

LT Counterparty Risk Rating (Local Currency), Affirmed Ba1

LT Counterparty Risk Assessment, Affirmed Ba1(cr)

ST Counterparty Risk Rating (Foreign Currency), Affirmed NP

ST Counterparty Risk Rating (Local Currency), Affirmed NP

ST Counterparty Risk Assessment, Affirmed NP(cr)

LT Bank Deposits (Foreign Currency), Affirmed Ba2 STA

LT Bank Deposits (Local Currency), Affirmed Ba2 STA

ST Bank Deposits (Foreign Currency), Affirmed NP

ST Bank Deposits (Local Currency), Affirmed NP

Senior Unsecured Medium-Term Note Program (Foreign Currency),
Affirmed (P)Ba2

Other Short Term (Foreign Currency), Affirmed (P)NP

Outlook Actions:

Outlook, Remains Stable

Issuer: Banco BTG Pactual S.A., Grand Cayman Branch

Affirmations:

LT Counterparty Risk Rating (Foreign Currency), Affirmed Ba1

LT Counterparty Risk Rating (Local Currency), Affirmed Ba1

LT Counterparty Risk Assessment, Affirmed Ba1(cr)

ST Counterparty Risk Rating (Foreign Currency), Affirmed NP

ST Counterparty Risk Rating (Local Currency), Affirmed NP

ST Counterparty Risk Assessment, Affirmed NP(cr)

Subordinate Regular Bond/Debenture (Foreign Currency), Affirmed B1
(hyb)

Senior Unsecured Medium-Term Note Program (Foreign Currency),
Affirmed (P)Ba2

Senior Unsecured Regular Bond/Debenture (Foreign Currency),
Affirmed Ba2 STA

Other Short Term (Foreign Currency), Affirmed (P)NP

Outlook Actions:

Outlook, Remains Stable

Affirmations:

Issuer: Banco BTG Pactual S.A., Luxembourg Branch

LT Counterparty Risk Rating (Foreign Currency), Affirmed Ba1

LT Counterparty Risk Rating (Local Currency), Affirmed Ba1

LT Counterparty Risk Assessment, Affirmed Ba1(cr)

ST Counterparty Risk Rating (Foreign Currency), Affirmed NP

ST Counterparty Risk Rating (Local Currency), Affirmed NP

ST Counterparty Risk Assessment, Affirmed NP(cr)

Senior Unsecured Medium-Term Note Program (Foreign Currency),
Affirmed (P)Ba2

Outlook Actions:

Outlook, Remains Stable

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks
Methodology published in July 2021.

BRASKEM SA: Fitch Lowers IDRs to 'BB+' & Placed on Watch Negative
-----------------------------------------------------------------
Fitch Ratings has downgraded Braskem S.A.'s Local and Foreign
Currency Issuer Default Ratings (IDRs) to 'BB+' from 'BBB-'. Fitch
has also downgraded Braskem America Finance's senior unsecured
long-term issue ratings to 'BB+' from 'BBB-' and Braskem Netherland
Finance B.V.'s senior unsecured long-term issue rating and
subordinated long-term issue rating to 'BB+' from 'BBB-' and to
'BB-' from 'BB', respectively. The ratings of Braskem S.A. as well
as that of Braskem Netherlands Finance B.V. and Braskem America
Finance Company have been placed on Rating Watch Negative.

The downgrade and Rating Watch Negative reflect the increase in
environmental risks and new claims of BRL1 billion (USD200 million)
associated with the possible collapse of a salt mine in the context
of the geological event in Alagoas, which could worsen the
company's cash flow profile. Fitch expects that FCF will be
negative for a longer period than expected, while the company
remains exposed to a prolonged downturn in the petrochemical
sector, all of which resulted in material increase to net debt.

KEY RATING DRIVERS

Elevated Environmental Risks: Fitch has lowered several of the
company's ESG Relevance Scores as a result of the mine incident,
incorporating incremental environmental and social impacts that
could potentially result in additional reparation costs and
monetary fines. The geological event could be a catalyst of
financial deterioration, increasing Braskem's liabilities, since
the number of cases levied upon the company could build up.

In the past two weeks, the state government filed a BRL1 billion
(USD200 million) lawsuit still to be judged and a fine of BRL72
million (USD14 million) from regulatory agencies was imposed. In
addition, the municipality of Maceio announced the desire to review
the BRL1.7 billion (USD340 million) deal settled in July, which
still needs Braskem's consent, and a congressional inquiry has been
installed in the senate, despite the fact that it does not have
power to impose sanctions, but only recommend actions and
remediations. Fitch believes these cases can negatively impact the
company's FCF, beyond the previous forecast.

Operating Performance: Fitch's base case does not account for
decrease in production in the near term as the salt mines have been
decommissioned since 2019, and the company is in the process of
stabilizing them through 2025. The caustic soda plant in the state
is operating by acquiring feedstock from external producers and
despite the geological event, no further backlash is anticipated to
its core operations. Nevertheless, Fitch expects pressure on
petrochemical spreads to continue into 2024 following challenging
market conditions in 2023. The pent-up supply coming online, the
excess production in Asia along with lower freight costs and
concerns over demand due to a fragile global economy are more
pronounced than anticipated and are now expected to spill over well
into 2024.

Weakened Financial Flexibility: Fitch forecasts net leverage,
excluding Braskem Idesa to be around 10.0x in 2023, declining to
5.5x in 2025, in comparison to 3.5x from its previous forecast.
Fitch expects Braskem to remain committed to preserving its
liquidity by maintaining its conservative dividend policy,
particularly while leverage is above 2.5x. The company has the
ability to reduce capex and fixed costs, optimize working capital
and monetize tax credits if market conditions remain worse than
anticipated in 2024.

Medium-Term FCF Negative: Fitch forecasts EBITDA to be USD800
million, USD750 million and USD1.4 billion in the next three years.
Capex is estimated at USD725 million, USD400 million and USD650
million, respectively, in the same period, with no dividends in the
next three years. Consequently, Fitch expects FCF to be negative in
2023, 2024 and 2025, at -BRL4.5 billion (-USD860 million), -BRL3.5
billion (-USD685 million) and -BRL 1 billion (-USD200 million),
respectively, mostly due to disbursements related to the Alagoas
settlements. FCF will turn positive in 2026 at BRL5 billion (USD1
billion) as resin prices recover and the disbursements reach an
end.

ESG - Environmental and Social Impacts: Fitch understands that an
increased exposure to environmental and ecological impacts due to
the potential collapse of a salt mine in the context of the
geological event in Alagoas could possibly pollute nearby
landscapes, the lagoon and the soil. In addition to that, Fitch
sees incremental exposure to social impacts from new claims and
reparation costs to the victims and community living in neighboring
areas on top of the 14,446 families relocated to other areas. This
could have a negative impact on credit profile as it damages the
company's reputation and could jeopardize FCF. Braskem has been
committed to assisting people affected by the incident and has
disbursed approximately BRL 10 billion (USD2 billion) to date, in
action fronts such as support for relocating and compensating,
closing and monitoring the salt cavities, environmental and other
technical matters, as well as social and urban measures.

DERIVATION SUMMARY

Braskem's leading position in the Americas in its core products, PE
and PP, is a key credit strength, mitigating the commodity nature
of its products, which are characterized by volatile raw material
prices and price-driven competition. Braskem has medium scale
compared with global chemical peers, such as Dow Chemical Company
(BBB+/Stable), but it is well positioned relative to Latin American
peers, such as Orbia Advance Corporation, S.A.B de C.V.
(BBB/Stable) and Alpek, S.A.B. de C.V. (BBB-/Stable), in terms of
scale, profitability and geographic diversification.

Around 43% of Braskem's EBITDA is generated outside Brazil, moving
to around 50% in the medium term. Its thermoplastic resin
operations in Brazil are integrated, which reduces cash flow
volatility. The company's strong 60%-65% market share in Brazil is
also a competitive advantage, as it allows Braskem to better
withstand higher raw material prices and pass-through strategies.

Braskem's leverage, excluding Braskem Idesa, under Fitch's base
case is expected to be around 10.0x in 2023. This is higher than
its petrochemical peers, such as Orbia's at 2.3x, Alpek's at 1.4x
and Dow's at 1.2x. All three Latin American players maintain strong
cash positions, long-term debt-amortization profiles, and strong
access to local and international debt markets.

KEY ASSUMPTIONS

- Brazil PE realized revenue/ton of USD1,420, USD1,385 and USD1,480
during 2023-2025;

- Brazil PP realized revenue/ton of USD1,040, USD1,120 and USD1,040
during 2023-2025;

- Brazil vinyls realized revenue/ton of USD1,530, USD1,430 and
USD1,450 during 2023-2025;

- Brazil ethylene/propylene realized revenue/ton of USD1,030,
USD1,200 and USD1,500 during 2023-2025;

- U.S. and Europe PP realized revenue/ton of USD1,790, USD1,915 and
USD1,780 during 2023-2025;

- Mexico PE realized revenue/ton of USD1,160, USD1,130 and USD1,200
during 2023-2025;

- PE-ethane reference spreads of USD760/ton in 2023, USD750/ton in
2024 and USD 930 in 2025;

- PE-naphtha reference spreads of USD240/ton in 2023, USD210/ton in
2024 and USD300/ton in 2025;

- PP-propylene reference spreads of USD340/ton in 2023, USD325/ton
in 2024 and USD370/ton in 2025;

- Capex according to management's guidance;

- No dividends to shareholders in 2023 and 2024.

RATING SENSITIVITIES

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

- Net debt/EBITDA below 2.5x on average through the cycle,
excluding Braskem Idesa;

- Sustained consolidated net debt of less than USD5 billion.

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

- Additional contingent claims for the Alagoas incident;

- Net debt/EBITDA above 3.5x, on average through the cycle,
excluding Braskem Idesa;

- Sustained negative FCF at the bottom of the cycle that results in
incurring additional debt;

- Sustained EBITDA interest coverage below 1.0x;

- Material financial support to Braskem Idesa.

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: Braskem adopts a conservative and proactive
financial strategy to limit the risks associated with exposure to
the cyclical and capital-intensive nature of its business. The
company has a strong cash position, with USD3.4 billion of readily
available cash and marketable securities as of Sept. 30, 2023,
excluding Braskem Idesa (USD287 million). Its gross debt excluding
Braskem Idesa stands at USD8.4 billion, USD390 million of which was
short-term debt as of 3Q23.

Braskem's strong cash position and its extended debt-amortization
profile lead to manageable refinancing risks in the medium term.
Over 2023 and 2024, the company faces debt amortization of BRL400
million (USD80 million) and BRL1.5 billion (USD300 million) per
year. As of Sept. 30, 2023, about 87% of the company's total debt
was denominated in U.S. dollars. Braskem has a track record of
accessing both local and international debt markets. The company's
financial flexibility is enhanced by a USD1 billion unused stand-by
credit facility due in 2026.

ISSUER PROFILE

Braskem S.A. produces and sells chemicals, petrochemicals, fuels,
steam, water, compressed air and industrial gases. The company has
plants in Brazil, the U.S., Germany and Mexico that produce
thermoplastic resins, such as polyethylene, polypropylene and
polyvinyl chloride.

ESG CONSIDERATIONS

Braskem S.A. has an ESG Relevance Score of '5' for Waste &
Hazardous Materials Management; Ecological Impacts due to the
geological event in Alagoas that affected its salt mining
operations, which has a negative impact on the credit profile, and
is highly relevant to the rating, resulting in one notch
downgrade.

Braskem S.A. has an ESG Relevance Score of '5' for Exposure to
Environmental Impacts due to the potential collapse of a Salt Mine
in the context of the geological event in Alagoas, which has a
negative impact on the credit profile, and is highly relevant to
the rating, resulting in one notch downgrade.

Braskem S.A. has an ESG Relevance Score of '5' for Exposure to
Social Impacts due to the possibility of new relocation of local
communities, which has a negative impact on the credit profile, and
is highly relevant to the rating, resulting in one notch
downgrade.

Braskem S.A. has an ESG Relevance Score of '4' for Governance
Structure due to a past history of corruption scandals and
shareholder's financial stress, which has a negative impact on the
credit profile, and is relevant to 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
   -----------             ------                     -----
Braskem
Netherlands
Finance B.V.

   senior
   unsecured      LT        BB+     Downgrade         BBB-

   subordinated   LT        BB-     Downgrade         BB

Braskem America
Finance Company

   senior
   unsecured      LT        BB+     Downgrade         BBB-

Braskem S.A.      LT IDR    BB+     Downgrade         BBB-
                  LC LT IDR BB+     Downgrade         BBB-
                  Natl LT   AAA(bra)Rating Watch On   AAA(bra)

   senior
   unsecured      Natl LT   AAA(bra)Rating Watch On   AAA(bra)

SOUTHROCK CAPITAL: Brazil Court OKs Bankruptcy Protection
---------------------------------------------------------
Andre Romani, Patricia Vilas Boas and Paula Arend Laier at Reuters
report that a Sao Paulo judge approved bankruptcy protection for
SouthRock Capital, which runs all Starbucks coffee shops and TGI
Fridays restaurants in Brazil, according to a court filing.

SouthRock had filed for protection from creditors in late October,
according to Reuters.

SouthRock said in a statement that with the approval, it will
continue to restructure operations with the aim of protecting
employees and customers, while it intends to keep operating stores
as normal, the report notes.

The bankruptcy protection process includes its Starbucks and TGI
Fridays stores, as well as some restaurants located in airports,
SouthRock later said, the report relays.

Stores from sandwich-maker Subway and Italian food chain Eataly,
brands also exclusively operated by SouthRock in Brazil, are not
part of the bankruptcy protection, SouthRock added.

The firm operates about 140 Starbucks stores in Brazil and nine TGI
Fridays, according to a list of restaurants on its website, the
report discloses.

In a statement, Starbucks said SouthRock directly manages and
operates store development, retail operations, supply chain and
staffing across Brazil, the report relays.

"As a brand with a presence around the world, we have active and
ongoing conversations with our licensed operators as a regular
course of business," Starbucks said, adding it does not disclose
the content of its discussions, the report adds.

TGI Fridays did not immediately respond to a request for comment.





===============
C O L O M B I A
===============

AVIANCA GROUP: Fitch Assigns 'B' LongTerm IDR, Outlook Stable
-------------------------------------------------------------
Fitch Ratings has assigned Long-Term Foreign and Local Currency
Issuer Default Ratings (IDR) of 'B' to Avianca Group International
Limited (Avianca) and to its loyalty program subsidiary, LifeMiles
Ltd. (LifeMiles). Fitch has also assigned a rating of 'B'/'RR4' to
Avianca's senior secured exit notes Tranche A-1 and Tranche A-2,
total amount of USD1.7 billion due 2028, issued by Avianca MidCo2
Limited.

Avianca's 'B' rating reflects the industry's high cyclicality
risks, the company's solid market position in the Latin American
airline passenger industry, lean cost structure, moderate leverage,
with net debt/adjusted EBITDA remaining in the range of 3.0x-4.0x
within the rating horizon, and good liquidity position, yet limited
financial flexibility.

Medium term uncertainties include Avianca's ability to maintain its
strong operating margins while resuming its business growth post
Chapter 11 process in U.S. and under a more challenging business
environment and rising fuel prices. Ongoing execution risks related
to its new business strategy moving towards a low-cost carrier are
also embedded into the analysis, but recent quarters performance
have shown good progress and favorable dynamics.

KEY RATING DRIVERS

Above Average Industry Risks: The airline industry is inherently a
high-risk sector, given that it is a cyclical, capital intensive
business with various structural challenges and is also prone to
exogenous shocks. High fixed costs combined with swings in demand
and fuel prices typically translate into volatile profitability and
cash flows. The exposure to foreign exchange fluctuations for the
Latin America players constitutes an additional risk, as the
majority of its costs are dollar denominated and large part of
their operating cash flow are generally in local currency. The
track record of several debt restructurings processes within the
airline sector in the region over the past years highlights the
risks.

Diversified Regional Market Position: Avianca's business model
combines solid brand and large operations in Colombia, Central and
South America. Its geographic diversification allowed the company
to rotate capacity within the region and maintain consistently
solid average load factors of 80%-82% over the past years. The
company's business diversification is viewed as adequate, with
domestic passengers and international passengers representing
around 46% and 31% of the company`s revenues during first nine
months of 2023, while the cargo operations, and the loyalty program
and other segments represented approximately 20% and 2% of its
total revenues. In the same period, around 43% of Avianca`s
revenues were originated within Colombia, 19% Central America, 17%
U.S., 15% Other South America and 6% rest of the world.

New Business Strategy: Avianca has the challenge of proving its new
business model under different macroeconomic scenarios and/or fuel
prices environments. Avianca has been working to shift to a
low-cost carrier model, focusing on a simplified and cost-efficient
narrow-body operation, with limited exceptions. Increasing aircraft
utilization to around 12 hours a day, and fleet densification, with
around 20% increase in seats per aircraft, have been a key pillar
of the company`s goal of achieving Cask ex-fuel of 3.4 cents. Due
to foreign exchange valuations, inflationary pressures, changes in
network and higher costs of leases the company has already reviewed
this initial guidance now to a range of 3.7-3.8 cents by end of
2023. As of Sept. 30 2023, 100% of Avianca's narrowbody were
already reconfigured and aircraft utilization was between
11h-12h/day, and Cask ex-fuel was 3.9 cents.

Stronger Operations: Fitch expects Avianca's operating cash flow to
improve during 2023 due to the solid domestic traffic level,
relatively lower fuel prices, cost efficiencies and capacity
expansion. Fitch forecasts Avianca's adjusted EBITDA to move around
USD1.2 billion in 2023 and USD1.3 billion in 2024, an increase from
USD639 million in 2022 and USD602 million during 2019
(pre-pandemic). As of Sept. 30, 2023, on a 12-month rolling basis,
Avianca's ASKs and RPKs were just 6% lower compared to end of
2019.

Fitch estimates that by the end of 2023, Avianca will reach same
capacity volume of pre-pandemic levels. The most efficient cost
base is driving to higher EBITDA margins, with Fitch`s base case
reaching 23.7% during 2023, and important expansion from 15% in
2022 or even 13% in 2019. For 2024 and 2025, Fitch expects adjusted
EBITDA margins to range from 21%-22% in a scenario of a less
favorable fuel prices and the burden of investing again on growth
and competitive environment.

Growth Appetite to Drive FCF: Avianca's stronger operating cash
flow generation is likely to be consumed by fleet modernization and
ongoing business growth. Fitch forecasts Avianca's free cash flow
generation to be neutral during 2023, but negative at USD123
million in 2024 and USD174 million in 2025 after increasing capex.
Fitch considered capex of USD260 million in 2023, and for 2024 and
2025, this raises to USD400 million and USD575 million. Fitch
expects Avianca to remain cautious on its inorganic growth
strategy, as any M&A opportunities should be led by its parent
company, Abra Group.

Manageable Leverage: Fitch's base case scenario forecasts the
company's total and net adjusted leverage/EBITDAR ratios at around
3.9x and 3.1x, respectively, during 2023, an improvement from the
2022 levels of 6.2x and 5.0x. For 2024 and 2025, it should remain
within the range of 3.0x-4.0x. Those metrics are considered
relatively strong for the rating category. Avianca`s ability to
maintain those metrics within the next 18 months-24 months should
benefit its credit profile assessment.

Limited Financial Flexibility: Avianca's ability to access new
credit lines, seeking to refinance short-to-medium term obligations
is also a key factor to support continuous improvement on its
credit risks profile. Avianca has a weak unencumbered asset base
and large share of secured debt. Fitch expects Avianca to maintain
solid cash balances, with cash to LTM revenues not below 15%-20%,
seeking to reduce exposure to short-term refinancing risks under
its industry high volatility.

Consolidated Approach: Fitch applies its Parent and Subsidiary
Rating Linkage criteria following the Stronger Parent path to
Avianca and LifeMiles, which is 100% owned by Avianca. The legal
incentive for support is considered high, the operational and
strategic incentives are medium to high, resulting in equalization
of the ratings. Fitch considers that there are some uncertainties
in relation of Avianca`s shift to low-cost carrier and the
sustainability of the LifeMiles business model. LifeMiles has a
track record of around 20% contribution to EBITDA and represents
less than 10% of Avianca`s net debt position.

DERIVATION SUMMARY

Avianca's 'B' rating reflects its post-restructuring credit
profile, good asset base compared to its regional peers based in
terms of fleet, network and route diversification as well as its
important regional market position. The company's past quarters of
continuous improvement on its cost structure and good operating
margins are also incorporated into the analysis. Avianca's rating
is above Azul S.A. (B-/Stable) and GOL Linhas Aereas Inteligentes
S.A. (CCC-), mostly reflecting relatively lower leverage ratios and
lower refinancing risks. The company's limited financial
flexibility in terms of unencumbered asset base and the industry's
high risks remain as rating constrains.

KEY ASSUMPTIONS

- Fitch's base case during 2023 and 2024 includes an increase in
ASK by 31% and 29%;

- Load factors around 80%-81% during 2023-2024;

- Brent crude prices average USD85/barrel through the forecast;

- Capex of USD280 million in 2023 and USD400 million in 2024.

RECOVERY ANALYSIS

KEY RECOVERY RATING ASSUMPTIONS

The recovery analysis assumes that Avianca would be considered a
going concern in bankruptcy and that the company would be
reorganized rather than liquidated. Fitch has assumed a 10%
administrative claim.

Going-Concern Approach: Avianca's going concern EBITDA is USD500
million which incorporates the company's EBITDA post-pandemic,
adjusted by lease expenses, plus a discount of 20%. This correlates
to the average of USD561 million during 2016-2019 that reflects
intense volatility in the airline industry in Latin America. The
going-concern EBITDA estimate reflects Fitch's view of a
sustainable, post-reorganization EBITDA level, upon which Fitch
bases the valuation of the company. The enterprise value
(EV)/EBITDA multiple applied is 5.5x, reflecting Avianca's strong
market position in Colombia.

Fitch applies a waterfall analysis to the post-default EV based on
the relative claims of the debt in the capital structure. The debt
waterfall assumptions consider the company's total debt. These
assumptions result in a recovery rate for the first lien secured
debt within the 'RR1' range and second-lien secured debt within
'RR2' range, but due to the soft cap of Colombia at 'RR4',
Avianca's senior secured are rated at 'B'/'RR4'. For an unsecured
debt, the recovery would likely be within the RR5 range, resulting
in a rating downgrade from the IDR.

RATING SENSITIVITIES

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

- Ability to maintain strong cost structure, with adjusted EBITDA
margin above 22% on a sustainable basis;

- Maintenance of strong liquidity position (cash to LTM Revenues
consistently 20%), and well-spread debt amortization profile with
no major refinancing risks in the medium term;

- EBITDAR fixed-charge coverage sustained at or above 2.5x;

- Sustainable positive FCF generation;

- Continued solid rebound of Avianca's main markets air traffic.

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

- Liquidity deterioration and/ or difficulties to continue to
access credit lines;

- Gross and net leverage ratios consistently above 5.x and 4.0x;

- EBITDA fixed-charge coverage sustained at or below 1.5x;

- Competitive pressures leading to severe loss in market-share or
yield deterioration;

- Aggressive growth strategy leading to consolidation movement
financed with debt.

LIQUIDITY AND DEBT STRUCTURE

Strong Liquidity Position: Avianca has maintained a solid liquidity
position that is strong for the rating category. As of Sept. 30
2023, Avianca had around USD1 billion in cash and cash equivalents,
compared with USD348 million of short-term debt, including USD253
million of leasing obligations. At the same period, Avianca´s
total debt was USD4.7 billion, and was mainly composed by USD2.3
billion of leasing, USD1.7 billion of TranchA1 and A2
(exit-financing) due 2028, and LifeMiles Term Loan B (USD316
million) due 2026. Avianca's cash position was sufficient to cover
maturities until 2025.

ISSUER PROFILE

Avianca is the leading airline in Colombia, Ecuador, and Central
America and has one of the largest airline operations in Latin
America. As of Sept. 30, 2023, total fleet was 159 aircraft,
composed by 148 passenger aircraft and 11 freighters serving
markets (141 Airbus, and 18 Boeing). LifeMiles is Avianca's world
class loyalty program and the leading loyalty program in Colombia,
Ecuador and Central America.

ESG CONSIDERATIONS

Avianca Group International Limited has an ESG Relevance Score of
'4' for Group Structure due to {DESCRIPTION OF ISSUE/RATIONALE},
which has a negative impact on the credit profile, and is relevant
to the rating[s] in conjunction with other factors.

Avianca Group International Limited has an ESG Relevance Score of
'4' for Governance Structure due to {DESCRIPTION OF
ISSUE/RATIONALE}, 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   
   -----------                     ------           --------   
Avianca
Midco 2
Limited

   senior
   secured       LT                  B   New Rating   RR4

Avianca Group
International
Limited          LT IDR              B   New Rating
                 LC LT IDR           B   New Rating
                 Going Concern Score GC2 New Rating

LifeMiles Ltd.   LT IDR              B   New Rating
                 LC LT IDR           B   New Rating



===================
C O S T A   R I C A
===================

BANCO DAVIVIENDA: Fitch Alters Outlook on 'BB+' LongTerm IDR to Neg
-------------------------------------------------------------------
Fitch Ratings has revised Banco Davivienda (Costa Rica), S.A.'s
(Davivienda CR) Long-Term (LT) Local Currency Issuer Default Rating
(LC IDR) Outlook to Negative from Stable. At the same time, Fitch
has affirmed its LT LC IDR at 'BB+', LT Foreign Currency (FC) IDR
at 'BB', Short-Term (ST) FC and LC IDRs at 'B' and Shareholder
Support Rating (SSR) at 'bb'. Fitch also affirmed the bank's
National LT and ST Ratings at 'AAA(cri)' and 'F1+(cri)',
respectively, as well as the ratings of the local debt issue
programs. The Rating Outlook of the bank's LT FC IDR and LT
National Rating remains Stable.

The Negative Outlook revision on Davivienda CR's LT LC IDR reflects
the same action on the Outlook of its shareholder Banco Davivienda
S.A. (Davivienda; BB+/Negative), since Davivienda CR's ratings are
based on the potential support it could receive from its parent,
being Davivienda CR's LT LC IDR equalized to Davivienda, at 'BB+',
as it is not limited by the Costa Rica's country ceiling. For more
information about Davivienda please see "Fitch Revises Davivienda's
Outlook to Negative; Affirms IDR at 'BB+'."

KEY RATING DRIVERS

FC IDR and National Ratings: Davivienda CR's LT FC IDR Outlook
remains Stable, since is one notch below its shareholder's LT IDR,
capped by Costa Rica's country ceiling. Under its base case
scenario, Fitch estimate the parent's IDR downside potential would
be limited to a one-notch downgrade. Therefore, if the Outlook
materializes, the country ceiling would not constrain its
subsidiary's FC IDR, remaining unchanged. The Stable Outlook on the
LT National rating is supported by the fact that Davivienda's IDR
would maintain its relative strength with respect to the Costa
Rica's sovereign rating (BB-/Stable) and other rated issuers in the
country.

Support-Driven Ratings: Davivienda CR's IDRs and national ratings
are based on Fitch's assessment of the capacity and propensity of
its parent, Davivienda, to provide support, if required. Fitch
believes that Davivienda's propensity to support its subsidiary is
highly influenced by the reputational risk that its group could
face in the event of a possible default from its subsidiary in
Costa Rica, with which it shares the same brand. Fitch believes
that, despite the downside potential in Davivienda's support
capacity in the event of a downgrade of its IDR, the high support
propensity would remain, which would allow to continue with the
assessment of equalizing Davivienda CR's ratings with those of its
parent, although subject to country ceiling or sovereign risk
restrictions.

Ratings Constrained by Country Risk: With a high degree of
influence, Fitch also considers the possible transfer and
convertibility (T&C) risks, reflected in Costa Rica's country
ceiling of 'BB', which could limit Davivienda CR's ability to
receive support and Davivienda's ability to provide it, which
results in Davivienda CR's SSR and LT FC IDR being rated one notch
below its parent's IDR.

The LT LC IDR of 'BB+' is equalized to its parent's LT FC IDR and
two notches above Costa Rica's sovereign rating, since it is not
constrained by T&C risks, according to Fitch's criteria.

Role in Group: With moderate importance, the agency evaluates the
key role of the operations in Central America in the group's
geographic diversification strategy, operating in a market
considered relevant and with which it also exhibits high
operational synergies.

Well-Established Franchise, Good Asset Quality: Fitch moderately
weights the financial performance of Davivienda CR in the support
propensity assessment. Its business profile is characterized by a
well-established franchise, being the fourth largest bank in terms
of loans and deposits, and a diversified and consistent business
model. The bank's moderate risk appetite has led to good and stable
loan quality indicators, with a NPLs metric of 1.7% as of September
2023, complemented by an adequate reserve coverage of 167.9% at the
same date.

Profitability Affected by Exchange Rate Volatility: During 2023,
the ratio of operating profit to risk-weighted assets (RWA) showed
a reduction compared to its historical averages, at 0.5% as of
September 2023, compared to an average of 1.5% (2019-2022), mainly
explained by losses derived from volatility in the exchange rate.
In Fitch's base scenario, these indicators would show a recovery
over the next year given a stabilization of the exchange rate.

Capitalization and Funding Benefited by its Group: Davivienda CR's
capitalization metrics remains at adequate levels, with a Fitch
Core Capital (FCC) to RWA metric of 12.8% as of September 2023
(2022: 12.4%) given the entity's conservative strategies to protect
its capitalization against exchange rate volatility. The evaluation
of this factor also benefits from ordinary support could receive
from its shareholder. Davivienda CR's funding and liquidity
profiles are favored by its customer deposit base, which
represented 68.3% of total funding at the same date, as well as
synergies between its parent company. The loans to deposits metric
remains at comparable levels respect last years, registered at
115.8% as of September 2023 (2019-2022: 126.2%), complemented by
issuances in the local market and lines of credit with financial
entities.

RATING SENSITIVITIES

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

- A one notch downgrade in Davivienda's IDRs would trigger a
downgrade in Davivienda CR's LC IDR. Meanwhile a multi-notch
downgrade of Davivienda's IDRs would also entail a downgrade in
Davivienda CR's FC and LC IDRs, SSR and national ratings; however,
this is not Fitch's base scenario.

- Negative changes in Davivienda CR's IDRs and SSR would mirror any
movement in Costa Rica's sovereign ratings and Country Ceiling;

- Any perception by Fitch of the parent's significantly reduced
propensity to support the subsidiary may trigger a downgrade of
IDRs, SSR and national ratings.

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

- The Negative Outlook on Davivienda CR's IDRs indicate positive
actions are unlikely in the foreseeable future. The Negative
Outlook on Davivienda CR's LC IDR would be revised to Stable
mirroring the same action on the Outlook of Davivienda's IDR.

- Although positive actions are unlikely given the Negative
Outlook, Davivienda CR's FC IDR and SSR could be upgraded in the
event of an upgrade of Costa Rica's Country Ceiling combined with
Davivienda's IDRs Outlook being revised to Stable from Negative.
While the LC IDR would be upgraded if Davivienda's IDRs and Costa
Rica sovereign rating are upgraded.

- The bank's national scale ratings are at the top of the scale,
and therefore there is no room for positive actions.

OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS

Senior Unsecured Debt: Senior unsecured debt is rated at the same
level as Davivienda CR's national ratings, as Fitch considers the
probability of default on its debt to be the same as that of the
bank.

OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES

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

- Senior unsecured debt national ratings would be downgraded in the
case of negative rating actions on the bank's national ratings.

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

- Debt issue programs national ratings are at the top of the scale.
Therefore, there is no room to upgrade.

SUMMARY OF FINANCIAL ADJUSTMENTS

Fitch reclassified prepaid expenses as intangibles and deducted
them from equity to reflect their lower absorption capacity.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

Shareholder Support-Driven Ratings: Davivienda CR's ratings are
based upon Fitch's assessment of the potential support that it
would receive from its Colombian shareholder Banco Davivienda S.A.
(Davivienda, BB+/Negative), if needed.

   Entity/Debt                       Rating              Prior
   -----------                       ------              -----
Banco
Davivienda
(Costa Rica),
S.A.              LT IDR              BB      Affirmed   BB
                  ST IDR              B       Affirmed   B
                  LC LT IDR           BB+     Affirmed   BB+
                  LC ST IDR           B       Affirmed   B
                  Natl LT             AAA(cri)Affirmed   AAA(cri)

                  Natl ST             F1+(cri)Affirmed   F1+(cri)
                  Shareholder Support bb      Affirmed   bb

   senior
   unsecured      Natl LT             AAA(cri)Affirmed   AAA(cri)



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

DOMINICAN REPUBLIC: Notes Job Growth; Significant Cut in Poverty
----------------------------------------------------------------
Dominican Today reports that President Luis Abinader of the
Dominican Republic announced a notable decrease in the country's
poverty rate, marking a 23.4% reduction from April to June 2023,
reaching the lowest level since 2016.  This significant development
aligns with his administration's economic policies and initiatives,
according to Dominican Today.

On salary increases, President Abinader highlighted that his
administration has implemented two minimum wage hikes: a 19%
increase in 2022, followed by a 15% increase in 2023, with an
additional 4% planned for February 2024, the report notes.  The
cumulative wage increase from 2022 to 2024 stands at 38%, against
an accumulated inflation of 22.7% from 2020 to 2023, the report
relays.

In terms of the minimum wage measured in dollars, there has been a
35.7% increase over three years, rising from US$245.8 (2012 to
2020) to US$333.6 (2020 to May 2023), the report discloses.

Addressing the evolution of the labor market, President Abinader
reported the creation of 222,497 jobs from September 2022 to
September 2023, with 164,498 being formal employment, accounting
for 74% of the total, the report relays.  Since the beginning of
his government, a total of 422,739 new formal jobs have been
created across various sectors, including hospitality, retail,
services, manufacturing, construction, transportation, and
healthcare, the report says.

During his speech at LA Semanal, which focused on the theme "More
and better jobs," President Abinader also highlighted job growth in
free zones, showing a 20% increase since 2020, reaching 197,313
jobs in October 2023, the report discloses.

In the micro, small, and medium enterprise (MYPIME) sector, the
President noted significant job contributions, with microbusinesses
accounting for 9.2% of jobs, small businesses 13.2%, and
medium-sized businesses 4.9%, the report notes.

For the third quarter of 2023, the employment figure stands at 4.85
million, marking the highest historical employment level in the
Dominican Republic. This indicates a robust and growing job market
under President Abinader's administration, the report relays.



                   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.



===========
M E X I C O
===========

CYDSA, SAB: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable
------------------------------------------------------------
Fitch Ratings has affirmed Cydsa, S.A.B. de C.V.'s (Cydsa)
Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs)
and senior unsecured debt at 'BB+'. The Rating Outlook is Stable.

The ratings reflect Cydsa's mid-size operating scale, limited
geographic diversification (90% of the economic value comes from
Mexico) and price volatility of its chlorine and caustic soda
business. The ratings also incorporate Cydsa's diversified business
profile, low cost position, business resilience of some of its
operations, vertical integration and strong domestic brand
recognition in table salt.

Fitch estimates Cydsa's FY23 net leverage ratio close to 2.7x and
gross leverage of 3.0x, and then gradually reduce to 1.0x and 2.3x
by FY26, respectively. Fitch expects the company to fund its
operations with internal cash flows and without incremental debt,
given lower capex needs, which will enhance Cydsa's FCF and give
room for increasing deleveraging capacity.

KEY RATING DRIVERS

Mid-Size Producer: Cydsa is a mid-scale vertically integrated and
domestically focused chemical company in Mexico (BBB-/Stable) with
a diversified portfolio of products and services. The company
operates in the table salt business, where it has a strong brand
and market position, and in the chlorine-caustic soda, refrigerant
gases and underground hydrocarbon storage businesses. Fitch
estimates that 39% of EBITDA comes from Energy Processing and
Logistics and Salt segments. These more resilient operations add
important stability to the company's originally more-volatile
chemicals portfolio and is a key rating differentiator compared
with pure chemical peers in the region.

Improving Operating Performance: Fitch projects Cydsa's EBITDA will
be close to MXN4.1 billion, on better than expected results from
its Salt and Chlorine & Caustic Soda segments given resilient
demand and improving pricing environment, respectively. Cydsa's
share of Chlorine - Caustic Soda installed capacity in Mexico will
increase to 64% by YE 2023 from current 51%, as a result of the
completion of the Membrane Plant in Coatzacoalcos, Veracruz, with a
capacity of 100,000 Electrochemical Units (ECUs). This new
technology facilitates cost savings that coupled with a higher
market share, give room to higher expected profitability. Fitch
forecasts EBITDA margins will be close to 30% over the rating
horizon.

Positive FCF: The company will complete a five-year capex plan of
MXN9.4 billion in FY23, which was mainly focused on the
construction of a new Membrane Chlorine Caustic Soda Plant and the
expansion of the Coatzacoalcos Mercury Plant (from 50k to 100k
ECUs). Fitch expects the company to be FCF positive between
2024-2026, as capex intensity reduces from 15% of revenues to 4%,
over the next three years. This expectation includes average
dividend payments of MXN255 million per year.

Deleveraging Capacity: Fitch estimates Cydsa's FY23 consolidated
net leverage ratio close to 2.7x and gross leverage of 3.0x, and
then gradually reduce to 1.0x and 2.3x by FY26, respectively. Fitch
expects the company to fund its operations with internal cash flows
and without incremental debt, given lower capex needs, which will
enhance Cydsa's FCF and give room for increasing deleveraging
capacity. On Oct. 6, 2023, the company repurchased USD79.7 million
in aggregate principal of the 6.25% senior notes due in 2027, using
the proceeds from a MXN3.0 billion bridge loan. The outstanding
amount of the senior notes is USD252 million.

DERIVATION SUMMARY

Cydsa is well positioned against small scale chemical producers
with limited regional diversification, which are typically rated in
the low 'BB' or below rating categories. Cydsa's business profile
is more diversified and its cash flows are more stable than
companies such as Braskem Idesa, S. A. P. I. (B+/RWN). Cydsa's
diversified business profile is supported by the strong brand
recognition of its household salt products, and its cost position
in its chlorine-alkali chain segment benefits from important
investments in technology and the operations in the energy
processing and logistic segment.

Larger and more diversified chemical companies with lower leverage
such as Orbia Advance Corporation, S.A.B. de C.V. (BBB/Stable) or
Alpek, S.A.B. de C.V. (BBB-/Positive) are typically rated in the
low to mid 'BBB' category due to their stronger financial market
access and broader geographic diversification. Chemical companies
rated in the 'BBB' category tend to be product leaders across
broader regions, often spanning several continents.

KEY ASSUMPTIONS

- Cydsa generates annual EBITDA in the range of MXN4.1
billion-MXN4.6 billion between 2024-2026;

- Salt prices of USD20.1 in 2023 and 2024; USD25.3 per ton in
2025;

- Salt volumes to grow at 1.0% per year during 2024-2026, in line
with expected population growth;

- Caustic soda prices of USD719 in 2023, USD729 in 2024 and USD745
in 2025;

- Capex of roughly USD105 million in 2023; average of USD35 per
year between 2024-2026;

- Fitch estimates dividends of USD14 million 2023-2024 and share
buybacks of USD6 million per year.

RATING SENSITIVITIES

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

- Sustained net debt/EBITDA below 1.5x and gross debt/EBITDA below
2.0x;

- EBITDA of at least USD400 million and adequate portfolio
diversification.

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

- Expectation of sustained net debt/EBITDA above 3.5x on a
consolidated basis, and gross debt/EBITDA above 4.5x;

- A further steep decline of chlorine and caustic soda prices that
erodes Cydsa's EBITDA or competitive dynamics, weakening Cydsa's
caustic soda business;

- Material increases in dividends that impacts liquidity;

- Any change or disruption in the contract with PEMEX for the
underground storage business could pressure the ratings;

- Large debt-financed acquisitions or investments.

LIQUIDITY AND DEBT STRUCTURE

Sound Liquidity: As of Sept. 30, 2023, the company held cash of
MXN4.4 billion, of which MXN141 million was restricted due to a
non-recourse secured loan due 2036. On Sept. 1 2023, the company
drew down a MXN3.0 billion bridge loan from Banco Santander, with a
maturity date of Aug. 31, 2024. The proceeds of refinancing were
used to repurchase of its senior notes for a total amount of
USD79.6 million and to paydown the Syndicated Credit Facility of
USD105 million (Scotiabank).

Additionally, on Nov. 29, 2023, the company issued MXN850 million
(~USD47.2 million) in long-term local bonds which were used to pay
part of the above-mentioned USD3.0 billion short-term loan.

ISSUER PROFILE

Cydsa, S.A.B. de C.V. is a mid-scale chemical producer in Mexico,
with a diversified portfolio of products. The company manufactures
and commercializes salt for household and food industry use, as
well as chlorine-caustic soda, refrigerant gases and also operates
underground hydrocarbon storage.

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
   -----------             ------           -----
Cydsa, S.A.B.
de C.V.           LT IDR    BB+  Affirmed   BB+
                  LC LT IDR BB+  Affirmed   BB+

   senior
   unsecured      LT        BB+  Affirmed   BB+



=====================
P U E R T O   R I C O
=====================

BED BATH: Panel Dings Suit Over 401(k) Bankruptcy Losses
--------------------------------------------------------
Jacklyn Wille of Bloomberg Law reports that Bed Bath & Beyond
Inc.'s 401(k) committee asked a federal judge to dismiss litigation
over alleged plan losses tied to the retailer's recent bankruptcy,
saying the case's legal theory would fault the company for failing
to predict the future.

The proposed class action centers on a MassMutual guaranteed
interest account offered by the retailer's retirement plan, which
was aimed at preserving assets and providing a fixed rate of
return.

According to NAPA-net.org, Plaintiffs Paul Harvey and Lela LaPlante
(both of whom claim to have lost 10% of their GIA balance) on
behalf of the Bed Bath & Beyond, Inc. 401(k) Savings Plan have
filed suit pursuant to the Employee Retirement Income Security Act
against Defendants Bed Bath & Beyond, Inc. 401(k) Savings Plan
Committee, and Laura Crossen (BBBs Chief Accounting Officer and
later its Chief Financial Officer) for having "failed to monitor
the prudence of the Plan's investment in the MassMutual Guaranteed
Interest Account (GIA), certified false and misleading statements
concerning the risk of loss to Plan participants invested in the
GIA and failed to take action to avoid the multi-million-dollar
losses that followed."

According to the suit (Harvey v. Bed Bath & Beyond, Inc. 401(k)
Savings Plan Comm., D.N.J., No. 2:23-cv-20376, complaint 9/14/23)
filed in the U.S. District Court for the District of New Jersey,
"the GIA was the Plan's investment option intended to preserve Plan

participants' principal balances and provide a fixed rate of
return" was "governed by a group annuity contract between the Plan
and Massachusetts Mutual Life Insurance Company," and that
"participants were able to move their account balances between the
GIA and other Plan investment options at 'contract value,'" which
the suit says "preserved the principal balance of Plan assets
invested in the GIA, as well as all interest credited to the
participants' accounts under the contract terms."

                     About Bed Bath & Beyond

Bed Bath & Beyond Inc., together with its subsidiaries, is an
omnichannel retailer selling a wide assortment of merchandise in
the Home, Baby, Beauty & Wellness markets and operates under the
names Bed Bath & Beyond, buybuy BABY, and Harmon, Harmon Face
Values.  The Company also operates Decorist, an online interior
design platform that provides personalized home design services.

At its peak, Bed Bath & Beyond operated the largest home furnishing
retailer in the United States with over 970 stores across all 50
states, consistently at the forefront of major home and bath
trends. Operating stores spanning the United States, Canada,
Mexico, and Puerto Rico, Bed Bath & Beyond offers everything from
bed linens to cookware to electric appliances, home organization,
baby care, and more.

Bed Bath & Beyond closed over 430 locations across the United
States and Canada before filing Chapter 11 cases, implementing
full-scale wind-downs of their Canadian business and the Harmon
branded stores.

Left with 360 Bed Bath & Beyond, and 120 buybuy BABY stores, Bed
Bath & Beyond Inc. and 73 affiliated debtors on April 23, 2023,
each filed a voluntary petition for relief under Chapter 11 of the
United States Bankruptcy Code to pursue a wind-down of operations.
The cases are pending before the Honorable Vincent F. Papalia and
requested joint administration of the cases under Bankr. D.N.J.
Lead Case No. 23-13359.

Kirkland & Ellis LLP and Cole Schotz P.C. are serving as legal
counsel, Lazard Frares & Co. LLC is serving as investment banker,
and AlixPartners LLP is serving as financial advisor.  Bed Bath &
Beyond Inc. has retained Hilco Merchant Resources LLC to assist
with inventory sales. Kroll LLC is the claims agent.



===============
S U R I N A M E
===============

SURINAME: Implements Ambitious Economic Reform Agenda, Says IMF
---------------------------------------------------------------
The Executive Board of the International Monetary Fund (IMF)
completed the fourth review under the EFF arrangement for Suriname.
The completion of the review allows the authorities to draw the
equivalent of SDR 39.4 million (about US$53 million), bringing
total purchase under the EFF arrangement to SDR 197 million (about
US$263 million). In completing the review, the Board also approved
the authorities' request for an augmentation of access equivalent
to SDR 46.8 million (about US$ 63 million) and an extension of the
EFF arrangement to end-March 2025. With this augmentation, the
total access expected under the EFF arrangement is SDR 430.7
million (about US$ 577 million).

Suriname is implementing an ambitious economic reform agenda aimed
at restoring fiscal and debt sustainability through fiscal
consolidation and debt restructuring, protecting the vulnerable by
expanding social protection, upgrading the monetary and exchange
rate policy framework, addressing the financial sector's
vulnerabilities, and advancing the anti-corruption and governance
agenda. These policies are supported by the EFF arrangement, which
was approved by the Executive Board on December 22, 2021 (see Press
Release No. 21/400).

Following the Executive Board discussion on Suriname, Mr. Kenji
Okamura, Deputy Managing Director and Acting Chair, issued the
following statement:

"The authorities' have shown continued commitment to fiscal
discipline and macroeconomic stabilization under the EFF-supported
program. The economy is stabilizing, pressures on the exchange rate
have eased, and inflation is on a downward trend.

"The authorities' implementation of difficult reforms in a
challenging political and socio-economic environment is
commendable. These included reforms such as complete elimination of
fuel subsidies, gradual phasing out of electricity subsidies,
curtailing wage payments to unregistered public servants, and
broadening the VAT base.

"A more gradual path of fiscal consolidation than planned at the
previous review will help protect the still fragile recovery,
increase support for the poor and vulnerable, prevent further
erosion in real wages for registered civil servants, and scale up
growth-enhancing investment. An extension of the arrangement to
end-March 2025 and an augmentation of access will help address
balance of payment needs and help ensure that the 2025 budget is
consistent with the 3.5 percent of GDP primary balance target
(medium-term debt sustainability anchor).

"Excellent progress has been made with debt restructuring. The debt
exchange with private bondholders has been finalized with high
participation rate. An agreement in principle at the technical
level has been reached with Exim China and is under internal
approval process for signature.

"The monetary policy stance has been appropriately tight, helping
ease inflationary pressures. The authorities demonstrated
commitment to a flexible, market-determined exchange rate is
helping support accumulation of international reserves. Swift
implementation of the new Central Bank Act and finalization of its
recapitalization plan will help further strengthen its operational
independence and financial autonomy. Steadfast progress is also
necessary to address continued banking system vulnerabilities,
including through stronger oversight of the banking system and
promptly finalizing the assessment of the government-owned bank's
recapitalization plan.

"Structural reforms to strengthen institutions, governance, and
data quality remain key priorities with continued capacity building
support by the Fund and other development partners. The authorities
should continue pursuing measures to strengthen their
anti-corruption and AML/CFT frameworks and ensure their alignment
with international standards."



                           *********


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.

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