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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

          Thursday, May 2, 2024, Vol. 25, No. 89

                           Headlines



A R G E N T I N A

ARGENTINA: Tough Times for Factories as Consumers Cut Back


B R A Z I L

BRAZIL: Notes Insights Into April Inflation Slowdown
OHI GROUP: S&P Assigns 'B' Issuer Credit Rating, Outlook Positive


D O M I N I C A N   R E P U B L I C

[*] DOMINICAN REPUBLIC: Initiates Sustainable Tourism Strategy


E C U A D O R

ECUADOR: IDB Lends $2M to DoctorOne to Finance Telemedicine


P E R U

ASB BANK: S&P Lowers ICRs to 'BB+/B' on Parent's Downgrade
CRPAO VAC 2009-100: S&P Cuts Class A-1, A-2 Notes Rating to BB+(sf)


P U E R T O   R I C O

FIRSTBANK PUERTO RICO: Affirms 'BB+' Long-Term ICR, Outlook Stable
OFG BANCORP: Alters Outlook to Positive, Affirms 'B+' LT ICR


V E N E Z U E L A

PDVSA: To Accelerate Cryptocurrency Shift as Oil Sanctions Return

                           - - - - -


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A R G E N T I N A
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ARGENTINA: Tough Times for Factories as Consumers Cut Back
----------------------------------------------------------
Sonia Avalos at AFP News reports that industry is on the ropes in
Argentina.  The nation's factories, like many economic sectors, are
floundering between adjustment and recession as consumers hit by
sky-high inflation and shrinking income buy fewer goods, according
to AFP News.

Economic activity has been falling for four consecutive months
until February, according to the latest official data, notes AFP
News.

Few hold out hope that things will get better any time soon, the
report notes.

"People still have savings" for now, said Gustavo Avalos, who owns
the Tintas Opalo ink factory in Avellaneda, Greater Buenos Aires.
But "the outlook is bleak," the report relays.

Indeed those savings may run out soon enough, with annual inflation
approaching 290 percent and wage-earners losing about a fifth of
their purchasing power, AFP News discloses.

Economic activity dropped 3.2 percent year-on-year in February and
by 0.2 percent from January as President Javier Milei's
budget-slashing plans took hold, the report relays.  He has sought
to deregulate the economy and undo trade protections, also
devaluing the peso by 50 percent, the report notes.

Eight sectors recorded an annual decline, including construction,
manufacturing, wholesale and retail, the report discloses.

Some small-and medium-sized businesses (SMEs) "can't pay salaries,
others can't pay rent," said Avalos, whose factory sales fell by
more than two-thirds in December and by 40 percent in March, the
report relays.

Energy prices skyrocketed 500 percent during the same period.

"I can hold on for a year, then we'll see," summarized Avalos.
"Without consumption we . . . die bit by bit."

The drop in orders has made use of the brand-new automatic packing
machine he bought in December unnecessarily, the report discloses.
They are still being wrapped by hand on the middle of the workshop
floor, the report says.

"They pack some 8,000 jars every day," Avalos said proudly, notes
the report. "But we're back to packing by hand so as not to suspend
anyone," he added.

The factory-owner's story is one repeated across Buenos Aires
Province, the vast region that is home to 40 percent of the
population and much of the industrial sector, the report notes.

Appraisals of machinery for auction have increased at a frantic
pace, said Adrian Mercado, the founder of an eponymous auction
company, the report relays.

                 Cutting Back on Cupcakes

SME chamber CAME says manufacturing output among its members
dropped by nearly 12 percent year-on-year last month and by 20
percent for the first quarter.

The business chamber for small-and medium-sized firms, CAME, says
manufacturing output among its members dropped by nearly 12 percent
year-on-year last month and by 20 percent for the first quarter,
the report relays.

The majority of the country's SMEs, or PyMES as they are known
locally, produce exclusively for the domestic market, the report
notes.

"SMEs don't see a floor [to the downward trend] in the short term,"
CAME said in a recent statement, the report discloses.

Big business doesn't, either.

Steel company Acindar, from the ArcelorMittal group, said in March
it was stopping production for a month at four plants to compensate
for a 40-percent drop in sales of the commodity, the report says.

In Caseros, in western Greater Buenos Aires, cookie factory
Dulcypas makes biscuits at half-speed, the report discloses.  Its
half-empty offices have desks to spare and at the plant, two
production lines have been halted, the report notes.

The founder's grandson and current owner Fernando Martinez said he
has had to fire staff, reduce salaries and limit output. But he
remains optimistic, the report relays.  Numbers are kept up by
direct points of sale and exports to Uruguay, the report says.

"We have an idle capacity of 50 percent," he specified, the report
disclsoes.  "We're experiencing a major adjustment. There's little
money, prices are rising rapidly and then consumption is being
cut," he added.

"The biscuits sell very well because they are cheap," he said. "The
cupcakes? More expensive, not so much," he added.

"In order to keep up profitability we had to dismiss staff, lower
salaries and production volumes", he said. They also set technology
aside, he added.

The International Monetary Fund has forecast Argentina's economy
will contract 2.8 percent this year before rebounding with growth
of about five percent in 2025, the report says.

                    Calls for Regulation

At Industrias Baigorria, which produces screws and fastening
elements for the auto and agricultural sectors, sales have dropped
by 30 percent since last January, the report relays.

"A plunge is felt in the market.  Many clients tell us they're not
selling anything," explained Belen Lo Russo, the firm's foreign
trade manager, the report relays.

Paper mill owner Daniel Rosato, who is also president of the
Industrial Union of Berazategui – a grouping of factory owners on
the southern outskirts of the capital - is pessimistic, the report
notes.

He said some 600 SMEs that exported manufactured goods have closed
since last year, the report recalls.

"Supplies in dollars have increased," said Rosato. "There is no
industrial policy," he added.

"The other side of that is a rise in informal work, which
represents less income for the state," he told AFP.

For Alejandro Bartolini, who owns oil pump producer Metalcrom, fair
competition is the only way out, the report notes.

"The only way is by competing.  We don't believe in closed markets,
but we also don't believe that indiscriminate opening can lead to
success, because manpower and capital will be lost if the [entry of
products from the] foreign market is not regulated," he said, the
report relays.

"Milei has not mentioned SMEs, production, work; the only thing we
heard is 'adjustment, zero deficit, there's no money,'" he
complained, the report notes. "Labour and capital will be lost if
we do not regulate the external market."

                      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.
       



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

BRAZIL: Notes Insights Into April Inflation Slowdown
----------------------------------------------------
Rio Times Online reports that in April, inflation in Brazil
experienced a significant deceleration, as evidenced by the IPCA-15
index, which rose by just 0.21%.

This rise fell short of the anticipated 0.29% monthly and 3.86%
annually, according to Rio Times Online.

Compared to March's 0.36%, the annual rate for April stood at
3.77%, down from last year's 4.14%, the report notes.

These figures from the Brazilian Institute of Geography and
Statistics (IBGE) indicate a trend toward moderating prices, the
report relays.

Sector performance varied, with food and beverages recording a
0.61% increase, the report says.

Conversely, transportation costs declined, driven by cheaper
airfares and vehicle fuels. Such sector-specific trends highlight
the complex dynamics within Brazil's economy, Rio Times Online
discloses.

Roberto Campos Neto, President of the Central Bank of Brazil,
acknowledged the inflation reduction, Rio Times Online notes.

However, he expressed concerns about persistent high costs in
service sectors linked to the labor market, the report discloses.

Despite these challenges, Campos Neto forecasted a resilient
economy, projecting growth of at least 2% in 2024, an update from
the earlier 1.7% to 1.9% growth expectation, the report recalls.

Campos Neto also discussed global economic issues, especially the
impact of sustained high U.S. interest rates, the report says.

These could tighten global liquidity, affecting emerging markets
like Brazil, the report relays.  He stressed the need for agile
fiscal management in these volatile times, the report notes.

Brazil's recent fiscal policy adjustments have added complexity,
necessitating careful management to maintain economic stability,
the report relays.

Campos Neto reassured stakeholders of the Central Bank's commitment
to a robust monetary policy, the report says.

This strategy aims to anchor inflation expectations, which have
recently worsened due to variables like fuel prices and exchange
rates, the report relays.

Brazil stands at a crucial juncture, balancing domestic reforms
with global economic uncertainties, the report notes.

The Central Bank's vigilance and strategic planning are vital as
the country navigates towards sustainable growth and controlled
inflation, the report discloses.

As Brazil moves forward, these concerted efforts will be crucial in
shaping its economic future, the report says.

                          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).
       

OHI GROUP: S&P Assigns 'B' Issuer Credit Rating, Outlook Positive
-----------------------------------------------------------------
S&P Global Ratings assigned its 'B' issuer credit rating to
helicopter operator OHI Group S.A. S&P also assigned its 'B'
issue-level rating and its '3' recovery rating to the company's
proposed $400 million senior secured notes due 2029. The '3'
recovery rating indicates its expectation of meaningful recovery
(rounded estimate: 50%) to creditors in an event of default.

The positive outlook indicates that S&P will raise the ratings in
the next 12 to 18 months if OHI increases scale, controls leverage,
and increases the liquidity cushion through cash balance.

The company operates a fleet of 71 aircraft mostly in Brazil, and
its largest client, Petrobras, represented about 45% of revenue in
2023. For that year, OHI's net revenue was $395 million and EBITDA
of $124 million, below those of its main peer Bristow Group Inc.
(B/Stable/--) with $1.3 billion and $255 million, respectively.
Bristow operates a fleet of over 200 aircraft in diverse
geographies and offers a broader range of services. On the other
hand, OHI has historically generated higher EBITDA margins of
25%-30% thanks to its solid contract structure and efficient
operations.

Moreover, the company benefits from its scale in the Brazilian
vertical air mobility market, with 11 bases on the coast and in
Amazonas, enabling pricing power and competitiveness in bidding
process. S&P expects the company will maintain a solid win ratio
for new bids over the coming years while maintaining sound renewal
rates. Moreover, the match of length of contracts between clients
and lessor keeps OHI's idle capacity lower than those of peers.

The company posted an EBITDA margin of 26% in 2023, down from 29%
in 2022, given pre-operational expenses in Guyana and preparation
for new contracts in Brazil this year. At the end of 2023, OHI had
a total backlog of EUR1.7 billion, which includes a mix of legacy
contracts and repriced ones at higher rates amid higher market
demand. S&P said, "In our view, the solid prospects for Brazil's
offshore hydrocarbon production will support the company's backlog
growth in the coming years. As the share of repriced contracts
outpaces that of legacy contracts, we expect gradual margin
expansion. Given a number of repriced and new contracts this year,
we forecast EBITDA margin of 35%-40% in 2024. We believe that OHI's
stronger EBITDA margins is a competitive edge over peers."

S&P said, "Our forecast assumes the company will be successful in
the issuance of the new senior notes, extending its debt maturity
profile, and possibly reducing the cost of debt. New aircraft will
be financed with financial or operating leases, while the company
should use part of the notes' proceeds to acquire aircraft as
financial leases terminate. We expect adjusted gross debt of EUR600
million to EUR650 million in 2024 and 2025, which, coupled with
higher EBITDA, will reduce leverage."

The company has had higher leverage, with gross debt to EBITDA of
5x and FFO to debt below 15% in the past two years. But if the
margin improvement occurs, leverage will drop with gross debt to
EBITDA of 3.0x-3.5x and FFO to debt of 20% in 2024.

The company has been operating with limited liquidity cushion,
mostly because of substantial capital expenditure (capex) last year
to finance new contracts and the startup operations in Guyana. At
the end of 2023, OHI's cash position was EUR8.5 million and
short-term debt of EUR60 million. S&P believes that, with the new
notes and future cash flow, the company will maintain higher cash
balance, which together with lower leverage and solid
profitability, will allow for a higher rating.

The company is controlled by the private-equity firm, Stirling
Square Capital with a 71.4% stake since 2011. S&P said, "In our
view, the presence of a financial sponsor limits the potential for
a stronger financial risk profile, given the strategy typically
more aggressive toward expansion and the historically low liquidity
cushion. On the other hand, Stirling Square introduced several
institutional and corporate governance frameworks. OHI didn't
distribute dividends in the past years, and the company has been
expanding primarily organically. We expect it will improve its
liquidity cushion if it successfully issues the proposed notes."




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

[*] DOMINICAN REPUBLIC: Initiates Sustainable Tourism Strategy
--------------------------------------------------------------
Dominican Today reports that the Ministry of Tourism (Mitur)
initiated an agenda of meetings with public, private, and
third-sector entities in the tourism value chain that impact the
industry's development to create the National Sustainability
Strategy for the Tourism Sector.

The two-day workshops received support and advice from UN-Tourism,
a specialized agency of the United Nations that promotes
responsible, sustainable, and accessible tourism, according to
Dominican Today.

Veronica Pinilla and Victor Gorga, members of UN-Tourism Technical
Cooperation, were present at 12 meetings, under the coordination of
the Vice-Ministries of International Cooperation and Destination
Management of Mitur, to listen to representatives of companies,
state institutions, the third sector and international
organizations related to tourism, sustainability, environment,
Territorial planning, water, energy and solid waste management,
data, and statistics, the report relays.

The Deputy Minister of International Cooperation, Carlos Peguero,
headed these roundtables, the report notes.

The Strategy, which is being implemented for the first time in the
country, is an initiative of Minister David Collado, who has
expressed his priority, interest, and commitment to making the DR
the leading country in sustainable tourism in the entire region,
the report discloses.

Peguero said that all these exercises and meetings with the sectors
linked to tourism will define the roadmap that will mark the design
of the National Sustainability Strategy for the Dominican Republic,
the report adds.

        About Dominican Republic

The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district. Luis Rodolfo
Abinader Corona is the current president of the nation.

TCR-LA reported in April 2019 that Juan Del Rosario of the UASD
Economic Faculty cited a current economic slowdown for the
Dominican Republic and cautioned that if the trend continues,
growth would reach only 4% by 2023. Mr. Del Rosario said that if
that happens, "we'll face difficulties in meeting international
commitments."

An ongoing concern in the Dominican Republic is the inability of
participants in the electricity sector to establish financial
viability for the system.

On 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.



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E C U A D O R
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ECUADOR: IDB Lends $2M to DoctorOne to Finance Telemedicine
-----------------------------------------------------------
IDB Lab, the innovation and venture laboratory of the
Inter-American Development Bank (IDB) Group, will lend $2 million
from the IDB's Social Entrepreneurship Program through a loan to
the Ecuadorian company DoctorOne to help it reach more underserved
communities and improve access to quality healthcare.

Telemedicine is a useful digital solution to narrow access gaps in
health services, especially in remote areas. It can also shorten
waiting times and reduce unnecessary visits to hospitals and
clinics. This loan will support the expansion of DoctorOne's
telemedicine services to more rural and underserved areas of
Ecuador, where access to quality health care is limited.

With this loan, DoctorOne aims to offer affordable, convenient, and
universal quality healthcare, setting DoctorOne on a path to become
the leading telemedicine platform in Ecuador and Latin America and
the Caribbean. It plans to implement technological improvements,
develop its commercial strategy through massive B2B channels, and
install virtual health care centers, as well as set mobile units
and recruit and train doctors in the different regions where health
care will be provided.

DoctorOne will offer its platform as a benefit to members of
cooperatives, associations, and microfinance institutions. This
way, the company will provide vulnerable and low-income populations
in rural and peri-urban areas with quick (less than 30 seconds)
digital access to first aid medical services for primary
diagnosis.

"With this loan we leverage the entrepreneurial talent in our
region to find innovative tech solutions that address the health
care challenges facing many poor and vulnerable populations. A
pioneer in telemedicine in Ecuador, DoctorOne is providing better
access and quality of healthcare and, with the support of IDB Lab,
it will expand access to the communities that need it most," said
Irene Arias Hofman, CEO of IDB Lab.

"We are very excited to partner with IDB Lab, a leading institution
that supports innovative solutions for social and environmental
challenges in Latin America and the Caribbean. This investment will
allow us to scale up our telemedicine services and reach more
people who need quality health care, especially in rural areas
where there is a shortage of doctors and health facilities," said
Pablo Cevallos, CEO and co-founder of DoctorOne.



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P E R U
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ASB BANK: S&P Lowers ICRs to 'BB+/B' on Parent's Downgrade
----------------------------------------------------------
S&P Global Ratings lowered its long- and short-term issuer credit
ratings on ASB Bank Corp. (ASB) to 'BB+/B' from 'BBB-/A-3'. The
outlook is stable.

S&P said, "The downgrade of ASB follows a similar action on its
parent. This reflects our view that ASB is a highly strategic
subsidiary of Credicorp, meaning that our long-term rating on the
former is one notch below the 'bbb-' GCP. We believe Credicorp's
commitment to support ASB will remain strong, given the
subsidiary's integration with the group's long-term strategy and
the latter's commitment to the bank through funding sources.
Therefore, in our view, the parent's divestment of ASB is highly
unlikely.

"We believe the sovereign influences Credicorp's creditworthiness
due to the direct and indirect effects sovereign stress would have
on the group's business conditions. We expect Peru's complex
political landscape will persist in the run-up to the next
presidential and Congressional elections. This in turn limits the
government's capacity to implement more timely policies to boost
the investment and economic growth outlook. Moderate growth,
especially in per capita terms, will limit improvement in Peru's
socioeconomic conditions.

"In 2024, we expect ASB's net income to rise by about 3% thanks to
resilient net interest margins and manageable cost of risk. We
believe ASB will continue maintaining a high percentage of its
loans collateralized with liquid guarantees (back-to-back), while
keeping prudent underwriting standards. Therefore, we expect the
bank will preserve its solid asset quality metrics."


CRPAO VAC 2009-100: S&P Cuts Class A-1, A-2 Notes Rating to BB+(sf)
-------------------------------------------------------------------
S&P Global Ratings lowered its ratings on six repackaged
asset-backed securities (ABS) transactions to 'BB+' from 'BBB-'.
The transactions are backed by certificados de reconocimiento de
derechos del pago anual por obras (CRPAOs) and Retribucion por
Inversion-Certificado de Avance de Obras (RPI-CAOs), which are
unconditional and irrevocable obligations of the Peruvian
government to reimburse the costs associated with several
infrastructure projects in Peru.

The rating actions follow a similar action taken on S&P's long-term
sovereign foreign currency rating on Peru to 'BBB-' from 'BBB'.

The ratings on the six repackaged ABS transactions are based on the
Peruvian government's underlying payment obligation through the
Ministry of Transport and Communication on the CRPAOs and RPI-CAOs,
and other structural features, including credit default swaps and
reserve accounts. S&P said, "The downgrades reflect our opinion on
the credit quality of the underlying assets backing the
transactions, which we continue believing to be one notch below
than the foreign currency rating on Peru."

S&P will continue monitoring the ratings on these structured
finance transactions and revise the ratings as necessary to reflect
any changes in the transactions' underlying credit quality.

  Ratings Lowered

  CRPAO VAC Trust Series 2009-100

   Class A-1 to 'BB+ (sf)' from 'BBB- (sf)'
   Class A-2 to 'BB+ (sf)' from 'BBB- (sf)'

  IIRSA Norte Finance Ltd.

   Senior series to 'BB+ (sf)' from 'BBB- (sf)'

  Interoceanica IV Finance Ltd.

   Series 2007-1 to 'BB+ (sf)' from 'BBB- (sf)'

  Peru Enhanced Pass Through Finance Ltd.

   Class A-2 to 'BB+ (sf)' from 'BBB- (sf)'

  Lima Metro Line 2 Finance Ltd.

   Series 2015-1 to 'BB+' from 'BBB-'

  Lima Metro Line 2 Finance II Ltd.

   Series 2019-1 to 'BB+' from 'BBB-'




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

FIRSTBANK PUERTO RICO: Affirms 'BB+' Long-Term ICR, Outlook Stable
------------------------------------------------------------------
S&P Global Ratings affirmed its 'BB+' long-term issuer credit
rating on FirstBank Puerto Rico. The outlook on the long-term
rating remains stable.

S&P said, "The rating affirmation primarily reflects our view that
FirstBank has maintained relatively stable financial performance
amid tough conditions for regional banks. The bank has maintained
strong capital ratios, better-than-average funding metrics,
consistent profitability, and solid liquidity in recent years. We
expect earnings to remain solid, but upside is limited near term
because we expect some net interest margin pressures as deposits
likely continue to reprice. We also expect higher loan loss
provisions given that nonperforming assets continue to exceed most
other U.S. rated banks'. However, we believe FirstBank is better
reserved compared with most U.S. rated banks, which we view
favorably.

"We believe FirstBank has improved its competitive position and
demonstrated relative business stability and a more conservative
risk appetite. FirstBank is the second-largest bank based in Puerto
Rico, aided by its 2020 acquisition of Banco Santander Puerto Rico
and its holding company, Santander BanCorp., which boosted its
market share across its product segments, particularly
middle-market commercial and small business banking."

However, the bank competes with much larger banks, including the
largest bank in Puerto Rico and has only a modest domestic U.S.
market share.

In addition, revenue diversification still lags peers. The
proportion of noninterest income to total revenue was about 15% in
2023, below the median of 25% for rated U.S. banks.

S&P said, "We expect that the Puerto Rican economy will continue to
benefit from fiscal stimulus, as well as from residual
disbursements of private insurance payments and federal aid related
to Hurricane Maria. However, we view FirstBank's concentration in
Puerto Rico negatively given the U.S. territory's weak economic
growth over the past decade, which has lagged economic growth in
mainland U.S.

"We expect the bank to maintain strong capital and earnings despite
large payouts in recent years,.FirstBank's regulatory capital
ratios are much higher than those of most rated U.S. banks. Parent
holding company First BanCorp.'s common equity Tier 1, Tier 1, and
total risk-based capital ratios were 15.90%, 15.90%, and 18.36%,
respectively, as of March 31, 2024. However, the total payout ratio
has been about 100% or above the last three years, and
risk-weighted capital ratios have declined by over 100 basis points
since year-end 2021. We expect risk-weighted capital ratios to
decline gradually over the next few years on continued capital
returns and moderate loan growth.

"In first-quarter 2024, First BanCorp. repurchased $50 million in
common shares and raised its common-stock dividend by 14% to 16
cents per share. We expect earnings to remain solid, aided by a
relatively high net interest margin and continued expense
discipline.

"We also consider the bank's large unrealized losses on investment
securities and First BanCorp.'s tangible common equity ratio, which
is not meaningfully above the median of U.S. rated banks. That
ratio decreased to 7.59% on March 31, 2024, from 11.54% on Dec. 31,
2020, largely because of unrealized losses on its
available-for-sale securities. The company's investment securities
(approximately $5.5 billion as of March 31, 2024) have low credit
risk, in our opinion, and were primarily invested in
mortgage-backed securities issued by the U.S. government and
government-sponsored enterprises.

"Funding and liquidity ratios remain better than pre-pandemic
levels and stronger than those of most rated U.S. banks. FirstBank
has a diversified deposit franchise, including retail and
commercial customers. Also, as the banking industry in Puerto Rico
has consolidated, the bank has reduced its reliance on wholesale
funding over the past decade, which we view favorably. Excluding
fully collateralized government deposits and FDIC-insured
deposits,
uninsured deposits were roughly 28% of total deposits and its
retail-oriented deposit base has very low average account
balances.

"We expect funding ratios to moderate somewhat over the next few
years owing to loan growth, but they should remain better than the
median ratios of rated U.S. banks.

"The stable outlook incorporates our view that in the next 12
months, notwithstanding large payouts, FirstBank will maintain
strong capital ratios. We also expect the bank to remain firmly
profitable and capital ratios to decline modestly over the next few
years.

"We expect nonperforming assets and credit losses will exceed most
mainland U.S. peers'. However, we don't expect FirstBank to
experience a meaningful deterioration in asset quality, absent a
significant economic slowdown, which is not in our base case.

"We could lower the rating in the next 12 months if asset quality
deteriorates more than we expect, if profitability declines
materially, or if funding ratios weaken substantially--none of
which we currently expect. An unexpected change in risk
appetite--for example, a large acquisition, which we think is
unlikely, could also be viewed negatively.

"We could raise the rating if financial performance improves to
levels that we view as consistent with higher-rated U.S. banks.
More specifically, we would view favorably stable funding and
liquidity metrics, and the maintenance of high risk-weighted
capital ratios--including a RAC ratio well above 15%. To consider
an upgrade, we would also assess the company's asset quality
performance and tangible capital position."

OFG BANCORP: Alters Outlook to Positive, Affirms 'B+' LT ICR
------------------------------------------------------------
S&P Global Ratings said it affirmed its 'B+' long-term issuer
credit rating on OFG Bancorp (OFG), its 'BB' rating on Oriental
Bank and revised the outlook to positive from stable.

The positive outlook indicates that OFG is well positioned to
continue its steady performance, aided by prudent risk management
over the last several years and a relatively resilient Puerto Rican
economy. Despite a challenging environment for most U.S. regional
banks amid market interest rate and deposit pressures in 2023, OFG
maintained good performance, which continues into 2024. In recent
years, solid profitability and earnings retention has supported
organic loan growth and led to improved capital ratios. In
addition, the bank has maintained stable funding and liquidity
metrics, helped by sensible interest rate risk management. S&P
said, "Although we expect credit to continue normalizing from lower
levels of net-charge-offs (NCOs) relative to pre-pandemic years, we
think that sustained hurricane and earthquake relief, and other
government program funds, may limit the downside risk to asset
quality over the next several years. In addition, with OFG's higher
exposure to consumer credit, at just under 40% of total loans, we
expect it could benefit from a favorable macroeconomy in Puerto
Rico, more than regional peers, with unemployment near historical
lows."

S&P expects earnings to remain strong further supporting already
robust capital ratios. OFG's earning generation remains a key
strength, with first quarter 2024 earnings comparing well to peers
as reflected by its substantial net interest margin (NIM) of 5.40%
and return on average assets of 1.77%. Capital ratios, as a result,
increased meaningfully year over year, helped by modest shareholder
payouts, and remain well above the median of rated peers, with a
common equity Tier 1 of 14.45% and total risk-based capital ratio
of 15.71% as of March 31, 2024.

The company's earnings and capital continue to benefit from prudent
investment of excess liquidity into securities once interest rates
increased in 2022. This resulted in an additional uplift to the net
interest margin (NIM), coupled with a relatively lower impact of
unrealized losses on securities amid higher market interest rates.
As such, tangible capital metrics are well above most regional
banks, with a tangible common equity to tangible assets ratio of
10.06% as of March 31, 2024. Given the company's asset sensitivity,
continued high interest rates in the near term should help OFG
mitigate some of the expected NIM compression from rising funding
costs.

While asset quality metrics are expected to normalize from low
levels, S&P thinks OFG's improved credit profile will support loan
performance. Net charge-offs have ticked up, though remain below
pre-pandemic levels, at 1.05% as of March 31, 2024. Positively,
delinquency rates have trended downward, and nonperforming loans
continue to decline steadily. This reflects management's credit
tightening initiatives in recent years, particularly within its
consumer portfolio. The proportion of subprime auto loans (measured
by FICO below 660 at origination) decreased to about 18% in 2023
from 36% in 2019. However, credit metrics continue to lag that of
mainland rated peers, exacerbated by the company's concentrated
loan portfolio, which is almost entirely in Puerto Rico.

S&P said, "We think the overall stability of OFG's funding and
liquidity measures, which have been improving, position the company
well relative to mainland peers. Although OFG did experience some
core deposit attrition in the first half of 2023, it was less
pronounced than most U.S. regional peers. While total deposits were
up substantially over the year, driven by an influx of government
deposits (fully collateralized by investment securities) in
December 2023, we expect this to largely reverse within the year.
This should decrease uninsured deposits from an elevated 50% of
total deposits. In addition, funding costs remain toward the lower
end of rated peers, reflecting minimal brokered and wholesale
funding reliance, as well as the relative stickiness of its deposit
franchise in Puerto Rico. Positively, on balance sheet liquidity
increased, with cash and securities comprising nearly 30% of total
assets. We think liquidity could moderate somewhat in the near
term, but we expect the bank to maintain solid liquidity buffers.

"The positive outlook on OFG reflects the possibility that we could
raise our ratings on the bank in the next 12 months if the company
continues to maintain robust capital levels and strong earnings
performance, with adequate reserve coverage against some expected
normalization in asset quality. The outlook also reflects our
expectation that economic conditions in Puerto Rico will remain
relatively stable, supported by relief funding, which should limit
downside risk to the performance of OFG's substantial consumer
portfolio."

Upside scenario

S&P could raise its ratings if OFG continues to drive solid
financial performance while demonstrating prudent management,
reflected by ample tangible capital, appropriate credit reserves,
and well controlled credit risk.

Downside scenario

S&P said, "We could revise the outlook to stable if asset quality
deteriorates more than expected, resulting in higher provisioning
and worse profitability, or if capital ratios decline substantially
below peers. We could also consider a revision if funding and
liquidity measures were to materially weaken."




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V E N E Z U E L A
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PDVSA: To Accelerate Cryptocurrency Shift as Oil Sanctions Return
-----------------------------------------------------------------
Reuters reports that Venezuela's state-run oil company PDVSA plans
to increase digital currency usage in its crude and fuel exports as
the U.S. reimposes oil sanctions on the country.

The U.S. Treasury Department gave PDVSA's customers and providers
until May 31 to wind down transactions under a general license it
did not renew due to a lack of electoral reforms, according to
Reuters.
       
The move will make it more difficult for the country to increase
oil output and exports as companies will have to wait for
individual U.S. authorizations to do business with Venezuela, the
report notes.
       
PDVSA since last year had been slowly moving oil sales to USDT, a
digital currency also known as Tether whose value is pegged to the
U.S. dollar and designed to maintain a stable value, the report
discloses.  The return of oil sanctions is speeding up the shift, a
move to reduce the risk of sale proceeds getting frozen in foreign
bank accounts due to the measures, the people said, the report
adds.

                           About PDVSA

Founded in 1976, Petroleos de Venezuela, S.A. (PDVSA) is the
Venezuelan state-owned oil and natural gas company, which engages
in exploration, production, refining and exporting oil as well as
exploration and production of natural gas.  It employs around
70,000 people and reported $48 billion in revenues in 2016.

In May 2019, Moody's Investors Service withdrew all the ratings of
Petroleos de Venezuela, S.A. including the senior unsecured and
senior secured ratings due to insufficient information.  At the
time of withdrawal, the ratings were C and the outlook was stable.

Citgo Petroleum Corporation (CITGO) is Venezuela's main foreign
asset.  CITGO is majority-owned by PDVSA.  CITGO is a United
States-based refiner, transporter and marketer of transportation
fuels, lubricants, petrochemicals and other industrial products.

However, CITGO formally cut ties with PDVSA at about February 2019
after U.S. sanctions were imposed on PDVSA.  The sanctions are
designed to curb oil revenues to the administration of President
Nicolas Maduro and support for the Juan Guaido-headed party.



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