/raid1/www/Hosts/bankrupt/TCRLA_Public/240408.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
Monday, April 8, 2024, Vol. 25, No. 71
Headlines
A R G E N T I N A
ARGENTINA: Defeats Hedge Fund Suits Over GDP-linked Securities
GENNEIA SA: Fitch Affirms LT IDRs at 'CCC-'
B R A Z I L
BANCO BTG: Fitch Assigns 'BB(EXP)sf' Rating to Sr. Unsecured Notes
BRAZIL: Mixed Fortunes for Vehicle Market in Early 2024
MOVIDA EUROPE: Fitch Assigns 'BB' Rating to Sr. Unsecured Notes
C H I L E
CHILE: Central Bank Slows Pace of Interest Rate Cuts
WOM MOBILE: Fitch Lowers LongTerm IDR to 'D'
WOM MOBILE: Moody's Downgrades CFR to Ca, Outlook Remains Negative
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Air Transport Prices Jump 16.3%
DOMINICAN REPUBLIC: Cocoa More Expensive Than Copper
P U E R T O R I C O
ESJ TOWERS: Court OKs Bid Rules for Asset Sale
T R I N I D A D A N D T O B A G O
CARIBBEAN AIRLINES: Not Current With NP Payments
X X X X X X X X
[*] BOND PRICING COLUMN: For the Week April 1 to April 5, 2024
- - - - -
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A R G E N T I N A
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ARGENTINA: Defeats Hedge Fund Suits Over GDP-linked Securities
--------------------------------------------------------------
Bob Van Voris at Bloomberg News reports that Argentina has won the
dismissal of lawsuits by Aurelius Capital Management and other
hedge funds seeking payment on securities tied to the performance
of the nation's economy.
Aurelius' 2019 lawsuit claimed it was entitled to payment on gross
domestic product-linked warrants issued in connection with
restructurings of sovereign debt in 2005 and 2010, according to
Bloomberg News. Other funds followed with similar claims. All of
the cases were thrown out in a ruling made public in Manhattan
federal court, Bloomberg News notes.
Bloomberg News relays that U.S. District Judge Loretta Preska said
the suits were barred by a "no-action clause" in the bond agreement
that required investors to meet five preconditions before filing
suit. These included getting at least 25 percent of the
bondholders to make a written request to the bond trustee,
Bloomberg News notes.
"Plaintiffs' failure to take the contractually required steps
precludes them from bringing suit," the judge said in her ruling,
Bloomberg News says.
Lawyers for the funds didn't immediately respond to requests for
comment.
Argentina, which defaulted on US$95 billion in sovereign debt in
2001, offered investors new bonds at a sharp discount in the
restructurings, Bloomberg News discloses. To sweeten the deal, the
nation agreed to give investors warrants entitling them to payments
when its GDP expanded by more than three percent in a year,
Bloomberg News says.
Bloomberg News relays that Preska rejected the hedge funds'
argument that their claims fell under an exception for bondholders
to sue for principal and interest, saying that didn't apply to
warrants. Aurelius and the other funds said Argentina should have
paid on the warrants in 2014 and now owed principal and interest,
Bloomberg News discloses.
In addition to the suit by Aurelius, Judge Preska dismissed claims
by Novoriver SA, ACP Master Ltd., 683 Capital Partners, Adona LLC
and Ape Group SpA, Bloomberg News notes.
The case is ACP Master Ltd. v. Republic of Argentina, 19-cv-10109,
U.S. District Court, Southern District of New York (Manhattan).
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 March 15, 2024, raised its local currency
sovereign credit ratings on Argentina to 'CCC/C' from 'SD/SD' and
its national scale rating to 'raB+' from 'SD'. S&P also raised its
long-term foreign currency sovereign credit rating to 'CCC' from
'CCC-' and affirmed its 'C' short-term foreign currency rating. The
outlook on the long-term ratings is stable. In addition, S&P
revised its transfer and convertibility assessment to 'CCC' from
'CCC-'.
S&P said the stable outlook on the long-term ratings balances the
risks posed by pronounced economic imbalances and policy
uncertainties with the favorable change in near-term debt service
obligations. S&P also expect no further debt exchanges that it
would likely consider to be distressed.
Fitch Ratings 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.
GENNEIA SA: Fitch Affirms LT IDRs at 'CCC-'
-------------------------------------------
Fitch Ratings has affirmed Genneia S.A.'s Long-Term Foreign
Currency and Local Currency Issuer Default Ratings (IDRs) at
'CCC-'. In addition, Fitch has affirmed Genneia's senior secured
notes due 2027 at 'CCC'/'RR3'.
Like its Argentine utility peers, Genneia's ratings continue to
reflect its dependence on the country's, Compania Administradora
del Mercado Mayorista Electrico (CAMMESA). CAMMESA acts as a market
agent on behalf of companies in the electricity sector and relies
heavily upon the Argentine government for subsidies.
KEY RATING DRIVERS
Heightened Counterparty Exposure: Genneia depends on payments from
CAMMESA, which acts as an agent on behalf of an association
representing agents of electricity generators, transmission,
distribution and large consumers or the wholesale market
participants. CAMMESA's payment delays to the electricity sector
ended 2023 at over 90 days, compared with the contractual 42 days,
and payment days in 2024 are over 100, thus far.
This risk is mitigated in Argentina's Renewable Energy Auction
(RenovAr) program through Fondo Fiduciario para el Desarollo de
Energias Renovables (FODER), a national trust fund for renewable
energy, which is prefunded with one year of revenue. Payment days
for the FODER are 42 days, resulting in a consolidated payment lag
for Genneia of under 60 days. The company estimates 20% of its
consolidated EBITDA is backed by a World Bank guarantee and 60% by
FODER.
255MW of renewable projects under way (the La Elbita wind project
with 162MW of installed capacity, and the Los Molles solar project
with 93MW of installed capacity) fall under the Renewable Energy
Term Market framework and will supply energy to large industrial
users. This reduces Genneia's exposure to CAMMESA's non-guaranteed
power purchase agreements (PPAs).
Uncertain Regulatory Environment: The Argentine electricity sector
remains challenged by central bank capital controls, sovereign
risk, and now a new libertarian government seeking aggressive
economic reform. The government has historically subsidized
generation costs not covered by end-users, but is now pushing for
tariffs to fully cover generation costs. Fitch estimates the
government transferred USD5.9 billion in funds to CAMMESA in 2023.
While tariffs have gradually been increased, Fitch expects a
portion of the system to remain subsidized, as it will take time to
transition to a scheme where generation companies purchase their
own fuels and charge total costs. Fitch expects generation
companies, particularly those with less cash and working capital,
to endure some financial pressure in the short to medium term.
Renewables Capital Expansion Ramping Down: Although Genneia is a
relatively small player in the Argentine power generation industry,
it is the leading wind power generation provider, with
approximately 19% of the country's wind and solar installed
capacity at YE 2023. The company added 60MW (Tocota III) of solar
capacity in February 2024, and will add another 255MW of wind and
solar capacity in the next two years. Nevertheless, while capital
costs reached a four-year high of USD214 million in 2023, expansion
capex is estimated at a far lower USD153 million and USD28 million
in 2024 and 2025, respectively. Fitch expects that renewables,
including wind and solar, will constitute 85% of its revenue and
86% of its EBITDA in 2024.
Predictable Operating Cash Flow: Genneia's cash flow is relatively
stable and predictable. Almost all of the company's revenue is
related to sales to the wholesale electricity market under
contracts signed with RenovAR, the Renewable Energy Generation
Program and Resolution No. 21/16.
The company benefits from U.S. dollar-denominated PPAs expiring in
2027 for its thermal capacity, and between 2027 and 2041 for
renewables. Genneia's renewable asset PPAs have an average life of
15 years and account for roughly 90% of its EBITDA. Its total PPAs
(renewable and conventional) have an average life of 13 years,
including Tocota III, which reached full commercial operation date
(COD) on Feb. 1, 2024. These PPAs support the company's cash flow
stability and predictability through U.S. dollar-denominated
long-term variable payments and renewables priority dispatch.
Solid EBITDA Margins and Credit Metrics: Fitch expects the
company's EBITDA to be USD250 million in 2024, up from USD215
million in 2023, with 86% from renewables. The company's EBITDA
margins remained solid in 2023 at 76%; Fitch expects EBITDA margins
to remain in the 70%-76% range over the 2024-2026 period. Genneia
has relatively fixed and stable operating costs and does not need
to acquire fuel. The company has wind and solar expansion plans for
2024 and 2025 and no PPA expirations are anticipated until 2027.
Fitch expects Genneia's leverage to decline annually through 2026.
The company's leverage was 3.8x in 2023 and Fitch estimates
Genneia's leverage will decline to 3.1x in 2024. Furthermore, Fitch
expects the company will generate positive FCF in 2024 and
thereafter as expansion capex ramps down considerably.
DERIVATION SUMMARY
Genneia's Issuer Default Ratings reflect its exposure to CAMMESA as
an off-taker, which relies on subsidies from the Argentine
government. This is similar for Argentine utility and energy peers
Pampa Energia S.A. (B-/Stable), Capex S.A. (CCC+) and AES Argentina
Generacion S.A. (CCC-). Genneia is the leading wind power
generation provider in the country, and is completing an aggressive
expansion plan in renewables.
Pampa has a more diversified business profile as a leading company
in electricity generation, distribution, transmission, gas
production and transportation. Capex has an advantageous vertical
integration in thermoelectric generation, with the flexibility of
having its own natural gas reserves to supply its plants.
Genneia's gross leverage at YE 2022 was 3.8x, compared with Pampa
at 1.6x, AES Argentina Generacion at 2.7x, Capex at 1.7x,
Generacion Mediterranea S.A. (CCC-) at 5.6x, and MSU Energy S.A.
(CCC-) at 5.1x. On a net basis, Genneia's leverage was 3.0x in
2022, reflecting USD149 million of cash and equivalents. Fitch
estimates that Genneia's projected gross leverage will average 2.6x
over the rating horizon, slightly below its Argentine peers' median
of 3.0x.
KEY ASSUMPTIONS
- Thermal PPAs awarded under Resolution 220/2007 expire with no
renewal;
- Average thermal plant load factor of 25% over the rating
horizon;
- Average wind load factor of 47% over the rating horizon;
- Average solar load factor of 29% over the rating horizon;
- Further solar capacity expansion in 2024, with Tocota III having
reached full COD in February, and La Elbita anticipated to reach
full COD in 4Q of 2024, and Los Molles expected to reach full COD
in the 1H of 2025;
- New debt issuance of USD100 million in 2024 to fund planned
capex;
- Payments received from CAMMESA within 95 days;
- Average monomic price of USD105.72/MWh for thermal power plants
in 2024, roughly USD100.7/MWh through 2026, with the company
becoming 100% renewable in 2027;
- Average price of USD65/MWh in 2024 and thereafter for
renewables.
RECOVERY ANALYSIS
Key Recovery Rating Assumptions
- The recovery analysis assumes that Genneia would be reorganized
as a going concern in bankruptcy rather than liquidated;
- Fitch has assumed a 10% administrative claim, an EBITDA multiple
of 6.0x and a nearly 50% EBITDA change during a hypothetical
bankruptcy.
RATING SENSITIVITIES
- An upgrade to Argentina's ratings;
- Given the company's high dependence on payments from CAMMESA, any
further regulatory developments leading to a more independent
market that relies less on support from the Argentine government
and positively affects the company's collections and cash flow.
- A downgrade of Genneia below 'CCC-' could occur if Fitch's
believes that a default of some kind is probable or a default or
default-like process has begun. This would be represented by a 'CC'
or 'C' rating, given that Genneia's ratings are linked to those of
the Argentine sovereign 'CCC', due to the high reliance on
government subsidies to the electricity sector.
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: Available cash and short-term investments
amounted to approximately USD110 million at YE 2023 equivalent to
2.7x of interest expenses. An additional USD31 million of
restricted cash was held by subsidiaries to service non-recourse
project finance debt and is not available to service the company's
corporate debt.
Genneia had gross leverage of 3.8x at YE 2023. Historically,
Genneia has had strong access to financing in Argentina, given the
company's relationship with local banks, as well as international
financing from export credit agencies and development finance
institutions. In March of 2023, the company successfully placed two
new senior unsecured bonds for a total of USD33 million, with the
proceeds used primarily to finance the company's La Elbita wind and
Los Molles solar projects.
ISSUER PROFILE
Genneia S.A. is an Argentine power company, primarily engaged in
the generation of electrical power from both renewable (wind and
solar) and conventional (thermal) sources and is the leading wind
power generation company in Argentina in terms of installed
capacity.
ESG CONSIDERATIONS
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Genneia S.A. LT IDR CCC- Affirmed CCC-
LC LT IDR CCC- Affirmed CCC-
senior secured LT CCC Affirmed RR3 CCC
===========
B R A Z I L
===========
BANCO BTG: Fitch Assigns 'BB(EXP)sf' Rating to Sr. Unsecured Notes
------------------------------------------------------------------
Fitch Ratings has assigned an expected Long-Term rating of
'BB(EXP)' to Banco BTG Pactual S.A.'s (BTG Pactual) proposed senior
unsecured notes, acting through its principal office in Brazil or
its Cayman Islands Branch. The notes have an indicative tenor of
five years.
The net proceeds will used by for general corporate purposes. The
final rating is contingent upon the receipt of final documents
conforming to the information already received.
KEY RATING DRIVERS
The expected rating on the notes corresponds to BTG Pactual's
Long-Term Foreign Currency Issuer Default Rating (IDR; BB/Stable)
and ranks equal to its other senior unsecured debt as the default
on the notes equals to the default of the bank. BTG Pactual's
ratings are driven by its standalone creditworthiness, as measured
by its 'bb' Viability Rating (VR).
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
The rating of the notes could be downgraded in the event of a
downgrade of BTG Pactual's VR and IDR.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
The rating of the notes could be upgraded in the event of an
upgrade of BTG Pactual's VR and IDR.
For further information on BTG's rating rationale and sensitivities
please refer to latest press release " Fitch Takes Actions on 12
Brazilian Banks Following Sovereign Upgrade" dated Aug. 2, 2023.
DATE OF RELEVANT COMMITTEE
01 August 2023
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
----------- ------
Banco BTG Pactual S.A.
senior unsecured LT BB(EXP) Expected Rating
BRAZIL: Mixed Fortunes for Vehicle Market in Early 2024
-------------------------------------------------------
Rio Times Online reports that in March 2024, Brazil's vehicle
market saw a 5.6% sales drop from the previous year to 187,700
units, including passenger and commercial vehicles.
Despite this decline, there was a notable recovery from February to
March, with sales jumping by 13.6%, as reported by Fenabrave, the
body representing dealerships, according to Rio Times Online.
The broader picture for the first quarter of 2024, however, paints
a more optimistic scenario, the report notes.
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.
S&P Global Ratings raised on Dec. 19, 2023, its long-term global
scale ratings on Brazil to 'BB' from 'BB-'. The outlook on the
long-term ratings is stable. S&P affirmed Brazil's global scale
short-term ratings at 'B' and its national scale long-term rating
at 'brAAA'. S&P also raised the transfer and convertibility
assessment on the country to 'BBB-' from 'BB+'. S&P said, "The
stable outlook reflects our expectation that Brazil will maintain
a
strong external position, thanks to strong commodity output and
limited external financing needs. We also believe Brazil's
institutional framework can sustain stable and pragmatic
policymaking based on extensive checks and balances across the
executive, legislative, and judicial branches of government. We
expect a very gradual fiscal correction but anticipate fiscal
deficits will remain large."
Fitch Ratings affirmed on Dec. 15, 2023, Brazil's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'BB' with a Stable
Outlook. Fitch said Brazil's ratings are supported by its large and
diverse economy, high per-capita income, and deep domestic markets
and a large cash cushion that support the sovereign's financing
flexibility and its high local-currency debt share. Strong external
finances support resilience to shocks, underpinned by a flexible
exchange rate, robust international reserves and a sovereign net
external creditor position. The ratings are constrained by weak
economic growth potential, relatively low governance scores, high
and rising government debt/GDP, and budgetary rigidities. A new
fiscal framework introduced this year aims to anchor a gradual
consolidation process and address these fiscal weaknesses, but its
effectiveness is increasingly unclear.
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).
MOVIDA EUROPE: Fitch Assigns 'BB' Rating to Sr. Unsecured Notes
---------------------------------------------------------------
Fitch Ratings has assigned a 'BB' rating to Movida Europe S.A. 's
(Movida Europe) proposed benchmark sized senior unsecured notes due
in five years or longer. The notes will be unconditionally and
irrevocably guaranteed by its controlling shareholder Movida
Participações S.A. (Movida) and Movida Locação de Veículos
S.A. (Movida Locação). Proceeds will be used to refinance
existing debt and general corporate purposes.
Fitch currently rates Movida's Foreign Currency (FC) and Local
Currency (LC) Issuer Default Ratings (IDRs) at 'BB' and Movida and
Movida Locação's Long-Term National Scale Rating at 'AAA(bra)',
all with Stable Rating Outlook. Fitch equalizes the ratings of
Movida and its controlling shareholder Simpar S.A. (Simpar; FC and
LC IDR BB/Stable), reflecting the medium legal and strong
operational and strategic incentives that the holding has to
support Movida, if needed.
Simpar's 'BB' IDRs reflect its large scale, robust business profile
and strong competitive position within the Brazilian rental and
logistics industry. Simpar group benefits from a diversified
service portfolio and long-term contracts for a significant part of
its revenues, with a solid and resilient operating performance. The
ratings also incorporate the group's ample financial flexibility
and the expectation that EBITDA expansion and moderate capex levels
will lead to a gradual and consistent consolidated leverage
reduction. Fitch considers that there is limited room for
frustration on expected cash generation, capex and more meaningful
acquisitions without pressuring the ratings.
On a standalone basis, Movida has a solid position in the
competitive Brazilian car and fleet rental business, with relevant
scale and positive operating performance. Movida's consolidated
financial leverage should remain moderate, despite of expected
negative FCFs. The company has consistent access to funding and
significant liquidity, allowing it to properly manage its debt
amortization schedule.
KEY RATING DRIVERS
Parent and Subsidiary Linkage: Movida's ratings reflect Simpar's
medium legal and strong operational and strategic incentives to
support its subsidiary, which equalize the ratings of both
companies. In addition to the cross-default clauses on Simpar's
debt and the relevant shareholding control, Movida has strong
growth potential and important commercial synergies, which
contributes to the group's greater bargaining power with customers,
suppliers and in vehicle purchases. Simpar's controlling
shareholders and its managers form the majority of Movida's board
of directors.
Solid Business Position: As the second largest player in the car
and fleet rental industry in Brazil, Movida has a strong business
position, supported by its relevant scale, positive operating
performance, a national footprint and an adequate used car sale
operation. As of December 2023, Movida's total fleet of 244
thousand vehicles, consisting of 113 thousand in rent-a-car (RaC)
and 131 thousand in fleet management (GTF), secured meaningful
market shares both in RaC and GTF. As a result, the company has
proven bargaining power with automobile manufacturers and is able
to capture economies of scale. At YE 2024 and 2025, Fitch forecasts
Movida's own total fleet at around 256 thousand and 287 thousand
vehicles, respectively.
Resilient Operating Performance: Movida's rental EBITDA should grow
gradually based on organic growth and resilient margins, as the
company scale increases. Balanced demand and supply dynamics,
declining interest rates and adequate rental rates, should enable a
gradual return on invested capital (ROIC) spread recovery, closer
to historic levels. The rating scenario considers Movida's net
rental revenues around BRL6.1 billion in 2024 and BRL7.0 billion in
2025, comparing with BRL5.1 billion in 2023. Rental EBITDA margin
should be adequate at 60%-62%.
Pressured FCFs: The rating scenario considers that Movida's cash
flow from operations (CFFO) should evolve along with rental EBITDA
and benefit from the expected interest rates decline in Brazil.
Fitch forecasts EBITDA of BRL3.7 billion and CFFO reaching BRL1.5
billion in 2024, with BRL4.3 and BRL2.0 billion, respectively, in
2025. Movida operates in a capital-intensive industry, with FCF
expected to remain negative, around BRL8.0 billion, after average
annual capex of BRL9.9 billion in 2024 and 2025, and dividend
payout ratio of 30%. Movida's used car sale proceeds, forecasted at
BRL6 billion, on average, over the two-year period, will fund part
of its expected capex.
Deleverage May Take Longer: Net leverage (IFRS-16 adjusted),
measured by adjusted net debt/rental EBITDA, should remain around
4.0x, on average, over the rating horizon, compared to an average
of 4.2x in the last four years. The expected negative FCFs and weak
used car sale prices pose a challenge for Movida's intended
financial deleverage. Movida 2023's liability management, which
reduced total adjusted debt to BRL16 billion from BRL19.5 billion
are positive as they can benefit the overall cost of capital and
support the reduction of the company's net leverage.
DERIVATION SUMMARY
Compared with Localiza Rent a Car S.A. (Localiza; FC and LC IDR
BB+/Stable), Simpar has similar scale and a much more diversified
service portfolio, but a weaker financial profile, with higher
leverage and more pressured FCF. In the case of Unidas Locações e
Serviços S.A. (Unidas; FC and LC IDRs BB-/Stable), Simpar has a
much stronger business profile, higher liquidity, better access to
the credit market and similar leverage.
KEY ASSUMPTIONS
- Total fleet increasing 5% in 2024 and 9% on average on the next
three years;
- Average ticket for RaC increasing 2% in 2024 and 3% on average on
the next three years;
- Average ticket for GTF increasing 8% in 2024 and 5% on average on
the next three years;
- Capex of BRL8.5 billion in 2024, BRL11.3 billion in 2025 and
BRL10 billion in 2026;
- Dividend payout around 30% throughout the rating horizon.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Upgrade on Simpar's ratings.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Downgrade of Simpar's ratings;
- Deterioration of Simpar's legal, strategic and operational
incentives to provide support.
LIQUIDITY AND DEBT STRUCTURE
Robust Liquidity: Movida presents a robust liquidity profile and
proven access to capital markets. The bond issuance will reinforce
the company's cash position and enable it to better manage its
liabilities due in the short and medium-term, resulting in a longer
debt amortization schedule. The issuer's cash to short-term debt
ratio has been strong at 2.0x on average during the last four
years. As of December 2023, Movida had BRL3 billion of cash and
equivalents and BRL16 billion of total adjusted debt (95%+
unsecured), with BRL2 billion due in 2024, BRL3.5 billion in 2025
and BRL3.6 billion in 2026.
Movida's debt profile is mainly comprised of local debentures
(61%), bank loans (22%) and the fully hedged U.S. dollar
denominated bonds due 2031 (8%). The company's ability to postpone
growth capex to adjust to the economic cycle and the considerable
number of the group's unencumbered assets, with a book value of
fleet over net debt at around 1.3x, add to its financial
flexibility.
ISSUER PROFILE
Movida is the second largest vehicle and fleet rental company in
Brazil, both in terms of fleet size and revenue, and also operates
in the sale of used vehicles. The company is publicly traded, with
shares traded on B3 S.A. - Brasil, Bolsa, Balcao and a free float
of 34.24%, with Simpar (65,02%) being the main shareholder.
DATE OF RELEVANT COMMITTEE
01 September 2023
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
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.
EXTERNAL APPEAL COMMITTEE OUTCOMES
In accordance with Fitch's policies the Issuer appealed and
provided additional information to Fitch that resulted in a rating
action that is different than the original rating committee
outcome.
Entity/Debt Rating
----------- ------
Movida Europe
senior unsecured LT BB New Rating
=========
C H I L E
=========
CHILE: Central Bank Slows Pace of Interest Rate Cuts
----------------------------------------------------
Bloomberg News reports that Chile's central bank slowed the pace of
interest rate cuts and left its options open for the size of future
reductions, signaling caution in the face of inflation risks from
stronger economic activity and a weaker peso.
Policymakers cut their interest rate by three quarters of a
percentage point to 6.5%, as expected by nearly all analysts in a
Bloomberg survey, the report notes.
In a statement, they wrote borrowing costs will continue to fall,
and that the easing cycle will consider the evolution of the
economy and effects on inflation, according to the report.
"Rising inflation figures at the beginning of the year and higher
imported cost pressures emphasize the need to continue closely
monitoring its evolution," they wrote, the report relates. "To the
extent that the shocks that affect inflation are transitory, the
monetary policy framework based on a two-year target allows them to
be accommodated" without putting inflationary convergence at risk.
Policymakers are recalibrating the pace of easing as they guide
inflation back to the 3% target amid a rebound in some sectors
including manufacturing and retail, the report relays.
Chile's economy picked up at the start of the year after barely
growing in 2023 as restrictive rates and political uncertainty
weighed on demand, the report discloses. Consumer prices also rose
more than expected in January and February, the report adds.
WOM MOBILE: Fitch Lowers LongTerm IDR to 'D'
--------------------------------------------
Fitch Ratings has downgraded WOM Mobile S.A.'s Long-Term Foreign
and Local Currency Issuer Default Ratings (IDRs) to 'D' from
'CCC-'. Fitch has also downgraded the unsecured
U.S.-dollar-denominated bonds issued by Kenbourne Invest S.A. to
'C'/'RR5' from 'CCC-'/'RR4'. The bonds issued by Kenbourne Invest
are guaranteed by WOM Mobile S.A. and its subsidiaries. The rating
actions follow the company's Chapter 11 bankruptcy protection
filing on April 1, 2024.
The company has also indicated it has entered the U.S. legal
process with a financing commitment for USD210 million in new
debtor-in-possession (DIP) financing from JPMorgan.
KEY RATING DRIVERS
Chapter 11 Process: On April 1, 2024, WOM Mobile S.A. announced
that it has filed for voluntary reorganization under Chapter 11 of
the United States Bankruptcy Code in the District of Delaware to
reorganize its capital structure and address its short-term
liquidity needs while continuing to operate. This follows WOM's
recent delays with refinancing their 2024 notes amid a period of
difficult credit market conditions, weak liquidity, and negative
FCF.
As of April 1, 2024, Fitch estimates that WOM Mobile had debt of
approximately CLP700 billion.
DERIVATION SUMMARY
WOM Mobile's downgrade to 'D' follows its April 1, 2024 Chapter 11
bankruptcy filing. The bankruptcy filing follows delays in the
refinancing process of the company's 2024 notes and weak liquidity
position.
RECOVERY ANALYSIS
Fitch's criteria uses bespoke recovery analysis for issuers with
IDRs of 'B+' and below. The bespoke recovery analysis assumes that
WOM would be considered a going concern in bankruptcy and that the
company would be reorganized rather than liquidated.
WOM's going concern EBITDA of CLP90 billion is based on Fitch's
expectation of a sustainable, post-reorganization EBITDA level.
This compares with an LTM EBITDA of CLP140 billion and reflects
high levels of competition in the Chilean mobile market and the
company's limited financial flexibility. Fitch applied an
enterprise value/EBITDA multiple of 4.0x. This figure reflects
WOM's limited scale and the highly competitive environment in
Chile.
Fitch applies a waterfall analysis to the post-default enterprise
value based on the relative claims of debt in the capital
structure. The debt waterfall assumptions consider the company's
proforma total debt including the recently announced DIP Financing.
These assumptions result in a 'RR5' Recovery Rating for senior
unsecured debt.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade:
- Positive rating action will occur when the proposed debt
restructuring process is announced and executed.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade:
- As the company is rated 'D' there can be no negative rating
action for the IDR.
ISSUER PROFILE
WOM Mobile S.A. is a Chilean telecommunications provider whose
primary business is the provision of mobile services. The company
was formed in 2015 after Novator Partners LLP purchased Nextel
Chile S.A.'s assets out of bankruptcy.
ESG CONSIDERATIONS
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
WOM Mobile S.A. LT IDR D Downgrade CCC-
LC LT IDR D Downgrade CCC-
Kenbourne Invest S.A.
senior unsecured LT C Downgrade RR5 CCC-
WOM MOBILE: Moody's Downgrades CFR to Ca, Outlook Remains Negative
------------------------------------------------------------------
Moody's Ratings has downgraded WOM Mobile S.A. and subsidiaries'
("WOM") Corporate Family Rating to Ca from Caa3. At the same time,
Kenbourne Invest S.A.'s 2024 and 2028 Backed Senior Unsecured Notes
ratings were downgraded to Ca from Caa3. The outlook remains
negative.
WOM Mobile S.A. and subsidiaries is the parent company of WOM S.A.,
Conect S.A., and Multikom S.A. The existing notes issued by
Kenbourne Invest S.A. are backed by WOM Mobile S.A. and its
subsidiaries.
Following the actions, all WOM's ratings will be withdrawn, in
accordance with Moody's Investors Service Policy for Withdrawal of
Credit Ratings. Moody's views WOM's Chapter 11 filing as a default
on all its debt.
RATINGS RATIONALE
The downgrade follows WOM's announcement of a voluntary capital
structure reorganization under the United States Bankruptcy Code's
Chapter 11 protection and Moody's view that losses to existing
unsecured creditors could be higher than 50%. The company's
decision comes amid continuous delays in arranging a refinancing
package for the outstanding CLP312 billion ($346 million) unsecured
notes due in November 2024, as well as rapidly deteriorating
liquidity.
In connection to the filing, WOM announced that it has secured a
$210 million 10% interest plus fees Debtor-in-possession (DIP)
financing agreement with JPMorgan Chase & Co. to address its
immediate liquidity needs. However, there is still no clarity on
how the company plans to address the 2024 notes as maturity date
nears.
The negative outlook reflects the company's untenable capital
structure and lack of liquidity which has led to the proposed
voluntary capital structure reorganization under Chapter 11
protection. It also considers the company's deteriorating liquidity
and the negative impacts of this distressed situation on the
company's ability to maintain operations and market share.
Furthermore, the negative outlook considers Moody's expectation
that the company will continue to operate in a challenging
environment, with slow economic growth and intense competition
pressuring performance and profitability.
ESG CONSIDERATIONS
Governance factors have been a key driver of the rating actions and
reflect WOM's private ownership by NC Telecom AS II, a Novator
Group-controlled Norwegian fund, and its aggressive financial
policies and high leverage tolerance. Despite a partial tender
offer in October 2022 funded by tower portfolio sales, gross debt
remained steady due to the increased lease liabilities and the
shareholder's decision to prioritize dividend distributions over
debt reduction. In March 2023, WOM planned to use half of the
anticipated $200 million tower sales proceeds over the next two
years for investment in WOM Colombia, evidencing high risk
tolerance and less shareholder commitment to deleveraging the
Chilean operation. This investment plan, however, was later
suspended amid concerns about the company's liquidity position.
Furthermore, WOM's failure to meet a 5G antenna rollout deadline in
October raises questions about management's execution capabilities
and may lead to regulatory fines, which could significantly strain
its already precarious liquidity position.
Subsequent to the actions, all WOM's ratings will be withdrawn as
Moody's considers the filing of the judicial recovery as a default
by WOM in all of its debt.
The principal methodology used in these ratings was
Telecommunications Service Providers published in November 2023.
WOM Mobile S.A. and subsidiaries (WOM), domiciled in Santiago,
Chile, is a mobile telecommunications services provider, serving
more than 8.4 million clients across its business segments,
including mobile voice, data services, mobile broadband and, more
recently, Fiber to the Home. WOM was launched in 2015 after the
acquisition and rebranding of Nextel Chile S.A. (Nextel Chile) by
its controlling shareholder Novator Partners LLP (Novator) and
became a well-established company in the Chilean mobile segment,
holding about 25.8% of the mobile market share. WOM's operations
are supported by a network with nationwide coverage, strong brand
recognition and a cost-efficient structure, which has helped
mitigate inflationary pressures and support profitability. WOM
reported CLP697 billion in net revenue and CLP251 billion in
Moody's Adjusted EBITDA for the last twelve months ending in
September 2023.
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Air Transport Prices Jump 16.3%
---------------------------------------------------
Dominican Today reports that in February of this year, air
transport prices surged by 16.3%, as reported by the Services
Sector Producer Price Index (IPP Services). This index tracks
price variations for a range of domestically produced services and
serves as a gauge for changes in the cost of commercial flights and
the transportation of goods to and from the country, according to
Dominican Today.
Over the past 12 months, prices in this sector have seen a notable
increase of 28.96 points, rising from 177.58 points in February
2023 to 206.54 points in February of this year, the report notes.
This upward trajectory has persisted into 2024, with air transport
emerging as the primary segment within the services sector
experiencing price hikes in February, the report relays. Compared
to January, prices in this category surged by 10.33%, with the
indicator climbing from 187.21 points to its current level, the
report notes.
On a year-on-year basis, air transport ranks as the second economic
activity witnessing the most substantial price increases over the
past 12 months, trailing only behind postal and courier activities,
which saw a surge of 18.50% compared to February of the previous
year, the report discloses.
Following air transport, rental and leasing activities experienced
a notable uptick, rising by 14.70% compared to 2023, as indicated
in a report from the National Statistics Office (ONE), 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.
DOMINICAN REPUBLIC: Cocoa More Expensive Than Copper
----------------------------------------------------
Dominican Today reports that the escalation of cocoa prices has no
limits and has surprised even professionals in the sector, who
speak of a "market gone mad." Prices have doubled since January,
with a 60% rise in March alone. On the London Stock Exchange,
cocoa prices fluctuated by more than 600 pounds in a single day,
while a year ago, daily variations were between 15 and 20 pounds
and even reached 50 pounds, according to Dominican Today.
Supply Crisis
These prices, which seem to have no ceiling, reflect the declining
harvests in West Africa, linked in particular to poor weather
conditions, aging plantations, and the persistence of a high
prevalence of diseases affecting cocoa trees, the report notes.
The main crop that just ended could be down by a quarter or even a
third, and the next one, which is about to start, does not look any
better, the report discloses.
Dominican Today relays that the massive fear among manufacturers
also drives up prices of running out of raw materials. "Everyone is
panicking," the head of Guan Chong Cocoa (GCB), one of Asia's
largest cocoa bean crushers, said a few days ago.
Another industry expert confirms: "Cocoa butter traders and
manufacturers are looking for beans everywhere. The only watchword
is to buy, regardless of origin and quality," the report relays.
Deteriorating Supply
Some millers do not hesitate to pay premiums for supplies in the
hope of not having to close their factories, the report notes.
Apart from Côte d'Ivoire and Ghana, where prices are fixed for the
whole season, most other origins have seen their prices soar:
grains can now be bought at 4,000 CFA francs per kilo in
Madagascar, for example, and at 5,000 CFA francs in Cameroon, the
report discloses.
One of the crushers confesses that the situation is so tense that
they have exhausted half of their grain stocks. Smaller processors
have only a few days' stock left, the report says.
Another consequence of this increase for consumers is that the
price of eggs and other Easter figures has skyrocketed, the report
relays. The situation could worsen next year, as most price
increases are passed on with a time lag of several months, 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.
=====================
P U E R T O R I C O
=====================
ESJ TOWERS: Court OKs Bid Rules for Asset Sale
----------------------------------------------
ESJ Towers, Inc. received approval from the U.S. Bankruptcy Court
for the District of Puerto Rico to solicit bids for its assets.
Under the court-approved bid procedures, the deadline for potential
buyers to place their bids on the assets is on May 3, at 5:00 p.m.
(Prevailing Eastern Time).
An auction will be conducted on May 8, at 10:00 a.m. (Prevailing
Eastern Time) if ESJ receives offers by the bid deadline.
The hearing to approve the sale to the winning bidder is set for
June 6, at 10: 0 a.m. (Prevailing Eastern Time). Objections to the
sale must be filed seven days prior to the sale hearing.
ESJ is selling most of its assets to Fortaleza Equity Partners 2,
LLC or to another buyer with a better offer.
Fortaleza made a cash offer of $13.5 million for the assets, which
include ESJ's real properties and other assets used to operate its
business. Its $13.5 million offer will serve as the stalking horse
bid at the auction.
ESJ will use the proceeds from the sale to pay its creditors
pursuant to its proposed Chapter 11 plan of reorganization.
The company currently owns and operates 126 studio apartments,
which are classified either as vacation club or hotel units, and
one hospitality center.
About ESJ Towers
ESJ Towers, Inc. owns the ESJ Towers in Carolina, P.R. The luxury
apartments and condo units at ESJ Towers have direct access to Isla
Verde Beach, widely considered one of the best in Puerto Rico.
ESJ sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. D.P.R. Case No. 22-01676) on June 10, 2022, with as much as
50 million in both assets and liabilities. ESJ President Keith St.
Clair signed the petition.
Judge Enrique S. Lamoutte Inclan oversees the case.
The Debtor tapped Charles A. Cuprill, Esq., at Charles A. Cuprill,
PSC Law Offices as bankruptcy counsel; Ramon Luis Nieves, Esq., at
RL Legal Consulting Services, LLC and Luis Daniel Muniz, Esq., as
special counsels; Dage Consulting CPAS, PSC as financial advisor;
CPA Luis R. Carrasquillo & Co., P.S.C. as financial consultant; and
De Angel & Compania, PA, LLC as auditor.
The U.S. Trustee for Region 21 appointed an official committee of
unsecured creditors on Sept. 12, 2022. The committee tapped the Law
Office of Jonathan A. Backman as lead bankruptcy counsel; Julio
Cesar Alejandro Serrano, Esq., at JCAS Law as local counsel; and
Dage Consulting CPAS, PSC as financial advisor.
The Debtor filed its Chapter 11 plan of reorganization and
disclosure statement on June 1, 2023.
=====================================
T R I N I D A D A N D T O B A G O
=====================================
CARIBBEAN AIRLINES: Not Current With NP Payments
------------------------------------------------
Andrea Perez-Sobers at Trinidad and Tobago Guardian reports that
majority state-owned Caribbean Airlines Ltd (CAL) owes wholly
state-owned National Petroleum Marketing Company (NP) millions of
dollars in outstanding bills for aviation fuel, it was disclosed.
This was revealed by Chester Beeput, NP's general manager of
aviation and marine fuels, during a session of a Public Accounts
Enterprises Committee (PAEC), that is examining NP's audited
accounts, balance sheet and other financial statements, according
to Trinidad and Tobago Guardian.
Beeput told the PAEC that CAL, which is the NP's biggest aviation
customer, owes NP $15 million, of which $5 or $ 6 million, would
have been overdue, as the airline company usually pays NP between
$5 and $10 million a week, the report notes.
He said NP follows up with CAL and payments will eventually be
made, at which point the airline would become current, Trinidad and
Tobago Guardian relays.
"So, we tend to have a lag with Caribbean Airlines, but again they
will settle their invoices, in a relatively timely manner," Beeput
said, the report discloses.
Giving details about the contract between the two state-owned
companies and Rubis Caribbean, NP's Marla Pacheco, acting manager
of legal and company secretary, noted that there has been back and
forth on the agreements, in the sense that sometimes NP has a lag
in receiving responses and that is what primarily causes the delay
in the finalization and the execution of the agreement, the report
says.
"In terms of getting timely feedback from the other entity, whether
it be Rubis or Caribbean Airlines, there is a significant delay in
NP receiving a response for the settlement of the terms and
agreement," Pacheco explained, the report notes.
The PAEC chairman Wade Mark injected by asking why it takes so long
for the NP's board to be made aware of these delays, the report
relays.
He called for clarification about the delays and asked if this was
still taking place, the report discloses.
"I raise this to bring to your attention the concerns of the
external auditor. The auditors are very concerned that this could
cause some challenges to the company, so that is why I am asking if
this is still going on," Mark mentioned, the report says.
Pacheo responded by saying "There may have been an improvement in
the time in which responses are received and what the legal
department will do is laze with the line department, in terms of
receiving follow-ups, to progress the matter further," the report
notes.
NP was also criticized by Mark for its failure to provide
up-to-date financial statements, the report relays.
In giving an explanation, NP chairman Sahid Hosein said part of the
problem was the company having to wait its turn for the accounting
firm to do its audits, the report says.
"Part of the issue is that the accounting firm does not have NP
alone in its portfolio of clients and therefore sometimes we have
to wait our turn even though they would tell you they are ready and
waiting. The accounting firm has indicated that by the end of this
month, 2022 financials will be completed and I think at the end of
this year we should have 2023, if not 2024 also," Hosein outlined,
the report notes.
This incensed the committee chairman, who said the accounting firm
was out of place to tell NP it has too much work, the report
relates.
"Get rid of them," Mark exclaimed. "If they cannot deal with you,
fire them and get somebody else, but to keep the taxpayers abreast
with the expenditure, we need to be on time," he lamented, the
report notes.
Mark asked whether the time has come to impose penalties when
financial statements are not submitted on time to parliament, the
report adds.
About Caribbean Airlines
Caribbean Airlines Limited -
http://www.caribbean-airlines.com/providespassenger airline
services in the Caribbean, South America, and North America. The
company also offers freighter services for perishables, fish and
seafood, live animals, human remains, and dangerous goods. In
addition, it operates a duty free store in Trinidad. Caribbean
Airlines Limited was founded in 2006 and is based in Piarco,
Trinidad and Tobago.
Caribbean Airlines is among many airlines whose business has been
greatly affected in 2020 by the slowdown of international travel
caused by the COVID-19 pandemic. The government of Trinidad &
Tobago guaranteed a US$65 million loan for the airline, and that
funding has helped with the airlines' cash flow shortfall since
May 2020. In September 2020, the airline related it will be
taking cost-cutting measures to help keep it afloat. The
measures, which was to affect some 1,700 employees, included
salary deductions, no-pay leaves and lay-offs.
===============
X X X X X X X X
===============
[*] BOND PRICING COLUMN: For the Week April 1 to April 5, 2024
--------------------------------------------------------------
Issuer Name Cpn Price Maturity
Cntry Curr
---------- --- ----- --------
----- ----
2W Ecobank SA 10.6 28.6 11/24/2029 BR BRL
ACEN Finance 4.0 64.0 KY USD
Tocumen Int'l Airport Panama 5.1 69.9 8/11/2061 PA USD
Tocumen Int'l Airport Panama 4.0 71.3 8/11/2041 PA USD
Tocumen Int'l Airport Panama 5.1 70.0 8/11/2061 PA USD
Tocumen Int'l Airport Panama 4.0 70.3 8/11/2041 PA USD
AES Tiete Energia SA 6.8 0.7 4/15/2024 BR BRL
Agile Group Holdings 5.8 15.9 1/2/2025 KY USD
Agile Group Holdings 6.1 13.5 10/13/2025 KY USD
Agile Group Holdings 5.5 13.7 5/17/2026 KY USD
Agile Group Holdings 5.5 15.0 4/21/2025 KY USD
Agile Group Holdings 7.9 3.3 KY USD
Agile Group Holdings 7.8 3.3 KY USD
Alfa Desarrollo SpA 4.6 75.3 9/27/2051 CL USD
Alfa Desarrollo SpA 4.6 74.9 9/27/2051 CL USD
Alibaba Group Holding 2.7 69.0 2/9/2041 KY USD
Alibaba Group Holding 3.2 66.0 2/9/2051 KY USD
Alibaba Group Holding 3.3 63.1 2/9/2061 KY USD
AMTD IDEA Group 1.5 7.5 KY USD
AMTD IDEA Group 4.5 55.5 KY SGD
Amwaj 2.6 69.8 3/31/2036 KY USD
Amwaj 6.4 67.1 KY USD
Amwaj 4.5 47.7 KY USD
Amwaj 4.6 69.2 10/4/2047 KY USD
Argentina Bonar Bonds 1.0 45.1 7/9/2029 AR USD
Argentina Treasury Bond 3.3 45.8 4/30/2024 AR USD
Argentine Bonos del Tesoro 15.5 41.4 10/17/2026 AR ARS
Argentine Gov' Int'l Bond 1.0 47.2 7/9/2029 AR USD
Argentine Gov' Int'l Bond 0.5 42.9 7/9/2029 AR EUR
Argentine Gov' Int'l Bond 0.1 43.2 7/9/2030 AR EUR
Ascent Finance 3.4 67.5 2/6/2043 KY AUD
Ascent Finance 1.2 62.2 7/12/2047 KY EUR
Ascent Finance 3.8 68.9 6/28/2047 KY AUD
Astra Investments 2019 1.5 62.1 11/1/2029 KY USD
At Home Cayman 11.5 69.3 5/12/2028 KY USD
At Home Cayman 11.5 71.2 5/12/2028 KY USD
AYC Finance 3.9 62.9 KY USD
Banco Davivienda SA 6.7 71.1 CO USD
Banco Davivienda SA 6.7 70.3 CO USD
Banco del Estado de Chile 2.8 68.5 3/13/2040 CL AUD
Banco del Estado de Chile 3.1 72.0 2/21/2040 CL AUD
Banco Santander Chile 1.3 72.8 11/29/2034 CL EUR
Banco Santander Chile 3.1 72.0 2/28/2039 CL AUD
Banda de Couro Energetica 8.0 55.3 1/15/2027 BR BRL
Baraunas II Energetica 8.0 12.6 1/15/2027 BR BRL
Bishopsgate Asset Finance 4.8 67.2 8/14/2044 KY GBP
Bolivian Gov't Int'l Bond 4.5 59.1 3/20/2028 BO USD
Bolivian Gov't Int'l Bond 7.5 59.8 3/2/2030 BO USD
Bolivian Gov't Int'l Bond 4.5 59.1 3/20/2028 BO USD
Bolivian Gov't Int'l Bond 7.5 59.4 3/2/2030 BO USD
BOPREAL 5.0 64.3 10/31/2027 AR USD
BOPREAL 5.0 64.6 10/31/2027 AR USD
BOPREAL 5.0 71.8 10/31/2027 AR USD
BOPREAL 3.0 62.7 5/31/2026 AR USD
Brazilian Gov't Int'l Bond 4.8 74.7 1/14/2050 BR USD
Camposol SA 6.0 72.4 2/3/2027 PE USD
Camposol SA 6.0 72.7 2/3/2027 PE USD
Celulosa - ARAUCO 4.3 56.1 10/30/2029 CL CLP
CFLD Cayman Investment 2.5 3.4 1/31/2031 KY USD
CFLD Cayman Investment 2.5 2.9 1/31/2031 KY USD
CFLD Cayman Investment 2.5 3.4 1/31/2031 KY USD
CFLD Cayman Investment 2.5 3.8 1/31/2031 KY USD
CFLD Cayman Investment 2.5 2.2 1/31/2031 KY USD
CFLD Cayman Investment 2.5 3.5 1/31/2031 KY USD
CFLD Cayman Investment 2.5 2.9 1/31/2031 KY USD
CFLD Cayman Investment 2.5 3.5 1/31/2031 KY USD
CFLD Cayman Investment 2.5 2.2 1/31/2031 KY USD
Chile Gov't Int'l Bond 3.5 73.5 1/25/2050 CL USD
Chile Gov't Int'l Bond 3.1 63.5 1/22/2061 CL USD
Chile Gov't Int'l Bond 3.1 74.3 5/7/2041 CL USD
Chile Gov't Int'l Bond 3.5 73.2 4/15/2053 CL USD
Chile Gov't Int'l Bond 1.3 68.5 1/29/2040 CL EUR
Chile Gov't Int'l Bond 3.3 63.6 9/21/2071 CL USD
Chile Gov't Int'l Bond 1.3 55.1 1/22/2051 CL EUR
Chile Gov't Int'l Bond 1.3 75.3 7/26/2036 CL EUR
China Yuhua Education Corp 0.9 64.6 12/27/2024 KY HKD
CK HutchisonInt'l 20 3.4 74.8 5/8/2050 KY USD
CK HutchisonInt'l 20 3.4 74.7 5/8/2050 KY USD
Colombia Gov't Int'l Bond 4.1 62.0 5/15/2051 CO USD
Colombia Gov't Int'l Bond 5.2 73.3 5/15/2049 CO USD
Colombia Gov't Int'l Bond 3.9 57.7 2/15/2061 CO USD
Colombia Gov't Int'l Bond 4.1 67.4 2/22/2042 CO USD
Colombia Gov't Int'l Bond 6.3 73.1 7/9/2036 CO COP
Colombia Gov't Int'l Bond 7.3 71.3 10/26/2050 CO COP
Colombia Gov't Int'l Bond 7.3 71.3 10/26/2050 CO COP
Colombia Gov't Int'l Bond 6.3 73.1 7/9/2036 CO COP
Colombia Gov't Int'l Bond 5.0 72.1 6/15/2045 CO USD
Colombia Telecomunicacion 5.0 68.8 7/17/2030 CO USD
Colombia Telecomunicacion 5.0 69.0 7/17/2030 CO USD
Colombian TES 7.3 71.3 10/26/2050 CO COP
Colombian TES 6.3 73.1 7/9/2036 CO COP
Codelco 3.7 68.2 1/30/2050 CL USD
Codelco 3.2 61.8 1/15/2051 CL USD
Codelco 3.7 68.2 1/30/2050 CL USD
Codelco 3.2 61.8 1/15/2051 CL USD
Earls Eight 0.1 65.2 12/20/2031 KY AUD
Earls Eight 1.7 73.1 6/20/2032 KY AUD
Ecopetrol SA 5.9 73.8 5/28/2045 CO USD
Ecopetrol SA 5.9 70.4 11/2/2051 CO USD
El Salvador Gov't Int'l Bond 7.1 66.2 1/20/2050 SV USD
El Salvador Gov't Int'l Bond 7.6 71.5 9/21/2034 SV USD
El Salvador Gov't Int'l Bond 7.6 71.1 2/1/2041 SV USD
El Salvador Gov't Int'l Bond 5.9 64.7 1/30/2025 SV USD
El Salvador Gov't Int'l Bond 7.1 66.4 1/20/2050 SV USD
El Salvador Gov't Int'l Bond 7.6 71.3 2/1/2041 SV USD
El Salvador Gov't Int'l Bond 7.6 71.5 9/21/2034 SV USD
Embotelladora Andina SA 4.0 74.9 1/21/2050 CL USD
Embotelladora Andina SA 4.0 74.3 1/21/2050 CL USD
Embotelladora Andina SA 6.5 23.3 6/1/2026 CL CLP
EFE 3.8 65.8 9/14/2061 CL USD
EFE 3.1 59.9 8/18/2050 CL USD
EFE 3.1 59.8 8/18/2050 CL USD
EFE 3.8 65.8 9/14/2061 CL USD
EFE 6.5 11.2 1/1/2026 CL CLP
ETESA 5.1 71.0 5/2/2049 PA USD
ETESA 5.1 71.6 5/2/2049 PA USD
Metro SA 3.7 65.5 9/13/2061 CL USD
Metro SA 3.7 65.3 9/13/2061 CL USD
Metro SA 5.5 50.3 7/15/2027 CL CLP
Edesa SA 5.0 64.6 5/11/2025 AR USD
Enap 4.5 73.5 9/14/2047 CL USD
Enap 4.5 73.4 9/14/2047 CL USD
ENA Master Trust 4.0 70.0 5/19/2048 PA USD
ENA Master Trust 4.0 70.7 5/19/2048 PA USD
Enel Generacion Chile SA 6.2 29.2 10/15/2028 CL CLP
Equatorial Energia 10.9 1.1 10/15/2029 BR BRL
Equatorial Energia 10.7 1.0 5/15/2028 BR BRL
Esval SA 3.5 13.2 2/15/2026 CL CLP
Farfetch 3.8 4.3 5/1/2027 KY USD
Fospar S/A 6.5 1.4 5/15/2026 BR BRL
GDM Argentina SA 2.5 0.0 9/8/2024 AR USD
GDS Holdings 4.5 67.7 1/31/2030 KY USD
Generacion Mediterranea 4.6 0.0 11/12/2024 AR ARS
General Shopping Finance 10.0 66.2 KY USD
General Shopping Finance 10.0 65.0 KY USD
Genneia SA 2.0 56.4 7/14/2028 AR USD
Greenland Hong Kong 10.2 13.5 KY USD
Guacolda Energia SA 4.6 70.5 4/30/2025 CL USD
Guacolda Energia SA 10.0 70.3 12/30/2030 CL USD
Guacolda Energia SA 4.6 70.9 4/30/2025 CL USD
Guacolda Energia SA 10.0 70.3 12/30/2030 CL USD
Hector A Bertone SA 1.9 0.0 4/7/2024 AR USD
Hilong Holding 9.8 69.6 11/18/2024 KY USD
Hilong Holding 9.8 69.7 11/18/2024 KY USD
Hilong Holding 9.8 70.0 11/18/2024 KY USD
ICBC DO Multiplo SA 3.3 59.8 BR USD
Inversiones CMPC SA 1.5 58.4 7/3/2025 CL CLP
Itau Unibanco SA/Nassau 5.8 20.5 5/20/2027 BR BRL
Jamaica Gov't Bond 6.3 67.8 7/11/2048 JM JMD
Jamaica Gov't Bond 8.5 70.6 12/21/2061 JM JMD
Lani Finance 1.7 65.1 3/14/2049 KY EUR
Lani Finance 1.9 68.5 10/19/2048 KY EUR
Lani Finance 3.1 66.9 10/19/2048 KY AUD
Lani Finance 1.9 67.4 9/20/2048 KY EUR
Link Finance Cayman 2009 2.2 71.9 10/27/2038 KY HKD
LIPSA Srl 1.0 0.0 8/23/2024 AR USD
Logan Group Co 7.0 5.3 KY USD
Longfor Group Holdings 4.0 39.4 9/16/2029 KY USD
Longfor Group Holdings 3.4 50.0 4/13/2027 KY USD
Longfor Group Holdings 3.9 35.9 1/13/2032 KY USD
Longfor Group Holdings 4.5 47.9 1/16/2028 KY USD
Luminis III 2.3 41.6 9/22/2048 KY USD
Luminis III 2.4 56.0 9/22/2048 KY AUD
Luminis IV 3.2 71.2 1/22/2042 KY AUD
Luminis 2.3 55.4 9/22/2048 KY AUD
Lunar Funding I 1.7 74.6 8/11/2056 KY GBP
MTR Corp CI 2.8 75.0 9/6/2047 KY HKD
MTR Corp CI 3.2 75.5 2/5/2055 KY HKD
MTR Corp CI 3.0 74.8 3/11/2051 KY HKD
MTR Corp CI 3.0 74.8 3/11/2051 KY HKD
Panama Gov't Int'l Bond 3.9 56.9 7/23/2060 PA USD
Panama Gov't Int'l Bond 2.3 71.0 9/29/2032 PA USD
Panama Gov't Int'l Bond 4.5 64.1 4/1/2056 PA USD
Panama Gov't Int'l Bond 4.5 66.1 4/16/2050 PA USD
Panama Gov't Int'l Bond 4.5 62.9 1/19/2063 PA USD
Panama Gov't Int'l Bond 4.5 67.7 5/15/2047 PA USD
Panama Gov't Int'l Bond 4.3 63.7 4/29/2053 PA USD
Peruvian Gov't Int'l Bond 3.6 72.6 3/10/2051 PE USD
Peruvian Gov't Int'l Bond 2.8 58.0 12/1/2060 PE USD
Peruvian Gov't Int'l Bond 3.2 57.9 7/28/2121 PE USD
Peruvian Gov't Int'l Bond 3.3 74.9 3/11/2041 PE USD
Peruvian Gov't Int'l Bond 3.6 66.6 1/15/2072 PE USD
Petroleos del Peru SA 5.6 68.4 6/19/2047 PE USD
Petroleos del Peru SA 5.6 68.4 6/19/2047 PE USD
Powerlong Real Estate 6.3 10.3 8/10/2024 KY USD
Provincia de Cordoba 7.1 39.6 10/27/2026 AR USD
Provincia de la Rioja 7.5 45.7 7/20/2032 AR USD
Provincia de la Rioja 4.5 51.5 1/20/2027 AR USD
Provincia del Chaco 4.0 0.0 12/4/2026 AR USD
QNB Finance 13.5 60.5 10/6/2025 KY TRY
QNB Finance 11.5 70.2 1/30/2025 KY TRY
QNB Finance 3.4 73.4 10/21/2039 KY AUD
QNB Finance 2.9 74.1 12/4/2035 KY AUD
Radiance Holdings Group Co 7.8 55.2 3/20/2024 KY USD
Rio Alto Energias Renovaveis 7.0 29.2 7/15/2027 BR BRL
Salfacorp SA 3.0 49.3 4/5/2025 CL CLP
Santander Consumer Chile 2.9 73.7 11/27/2034 CL AUD
Seazen Group 6.0 72.1 8/12/2024 KY USD
Seazen Group 4.5 33.3 7/13/2025 KY USD
Shui On Dev't Holding 5.5 70.0 3/3/2025 KY USD
Shui On Dev't Holding 5.5 58.2 6/29/2026 KY USD
Silk Road Investments 2.9 67.4 1/23/2042 KY AUD
Skylark 1.8 60.5 4/4/2039 KY GBP
Autopista Central SA 5.3 37.3 12/15/2026 CL CLP
Vespucio Norte 5.3 50.8 12/15/2028 CL CLP
Vespucio Norte 3.5 66.0 9/10/2051 CL USD
Vespucio Norte 3.5 66.1 9/10/2051 CL USD
Southern Water Service 3.0 72.0 5/28/2037 KY GBP
SPE Saneamento RIO 1 SA 7.2 10.6 1/15/2042 BR BRL
SPE Saneamento RIO 1 SA 6.9 10.7 1/15/2034 BR BRL
SPE Saneamento Rio 4 SA 7.2 10.3 1/15/2042 BR BRL
SPE Saneamento Rio 4 SA 6.9 10.3 1/15/2034 BR BRL
Spirit Loyalty Cayman 8.0 74.5 9/20/2025 KY USD
Spirit Loyalty Cayman 8.0 74.9 9/20/2025 KY USD
Spirit Loyalty Cayman 8.0 72.2 9/20/2025 KY USD
Spirit Loyalty Cayman 8.0 74.4 9/20/2025 KY USD
Sylph 2.4 64.9 9/25/2036 KY USD
Sylph 2.7 69.1 3/25/2036 KY USD
SYN prop e tech SA 11.0 21.3 3/15/2024 BR BRL
Telecom Argentina SA 1.0 75.4 3/9/2027 AR USD
Telecom Argentina SA 1.0 68.0 2/10/2028 AR USD
Telefonica Moviles Chile 3.5 74.7 11/18/2031 CL USD
Telefonica Moviles Chile 3.5 74.7 11/18/2031 CL USD
Tencent Holdings 3.2 67.3 6/3/2050 KY USD
Tencent Holdings 3.9 73.8 4/22/2061 KY USD
Tencent Holdings 3.3 63.9 6/3/2060 KY USD
Tencent Holdings 3.2 67.5 6/3/2050 KY USD
Tencent Holdings 3.3 63.9 6/3/2060 KY USD
Tencent Holdings 3.9 73.6 4/22/2061 KY USD
Three Gorges Finance I 3.2 73.0 10/16/2049 KY USD
Creditos Mercantis VII SA 9.0 1.6 1/20/2032 BR BRL
Volcan Cia Minera SAA 4.4 63.1 2/11/2026 PE USD
Volcan Cia Minera SAA 4.4 63.0 2/11/2026 PE USD
VTR Comunicaciones SpA 5.1 60.9 1/15/2028 CL USD
VTR Comunicaciones SpA 4.4 60.5 4/15/2029 CL USD
VTR Comunicaciones SpA 5.1 60.8 1/15/2028 CL USD
VTR Comunicaciones SpA 4.4 60.5 4/15/2029 CL USD
YPF SA 7.0 75.8 12/15/2047 AR USD
YPF SA 1.0 65.9 4/25/2027 AR USD
YPF SA 7.0 75.2 12/15/2047 AR USD
*********
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 2024. All rights reserved. ISSN 1529-2746.
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