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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

          Friday, May 31, 2024, Vol. 25, No. 110

                           Headlines



A R G E N T I N A

ARGENTINA: Dollar-Peso Turbulence Heats Up, Analysts Call For Calm


B A H A M A S

FTX GROUP: Bankruptcy Lawyers Not Complicit in Fraud, Report Finds


B R A Z I L

PETROLEO BRASILEIRO: Court Rules Against Firm in $193MM Tax Case
PETROTRIN: Ex Workers Demand Transparency on Land Distribution


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Foundations Unite for Sustainable Development


E L   S A L V A D O R

BANDESAL: Moody's Hikes Foreign Currency LT Issuer Rating to Caa1


G U A T E M A L A

GUATEMALA: Economy Continues to Show Stability, IMF Says


P E R U

PETROLEOS DEL PERU: S&P Lowers ICR to 'B', On Watch Negative


U R U G U A Y

MINERVA: Meat Giants' Merger Faces Regulatory Roadblock in Uruguay

                           - - - - -


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A R G E N T I N A
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ARGENTINA: Dollar-Peso Turbulence Heats Up, Analysts Call For Calm
------------------------------------------------------------------
Lorena Rodriguez at Buenos Aires Times reports that peso-greeback
turbulence is back and heating up.  Argentina's parallel exchange
rate went up by 45 pesos and closed at 1,275 pesos, when only 10
days ago it seemed to lie dormant at 1,050, according to Buenos
Aires Times.

In the meantime, the so-called 'stock exchange' dollar also grew
during the day and reached 1,230 pesos, while the CCL rate also
went up by 5 percent to finish at 1,256 pesos, the report notes.
In merely a week, the 'blue' dollar rose by over 160 pesos and
exceeded its previous maximum level of the year, recorded on
January 24, the report relays.

In a context of uncertainty Argentina's country risk rating has
placed at nearly 1,400 points, when in early April it was slightly
above 1,200, the report discloses.  In the meantime, those
criticizing a delayed exchange rate depreciation, which the
government assures will continue, are multiplying, the report
notes.

Some people are beginning to question other things too - will this
dollar leap apply to prices? President Javier Milei's government,
represented yesterday by Presidential Spokesperson Manuel Adorni,
stated clearly that it will not happen and that inflation will
continue to fall, the report says.  Nevertheless, the waters are
restless, the report relays.

According to economist Elena Alonso from the Emerald Capital
consultancy firm, investors start to resort to the dollar as a
result of the abrupt drop of Central Bank interest rates, the
report relays.

Alonso pointed out two matters: "On the one hand, the situation of
the failure to get as many dollars from exports and on the other
hand, the fear that this dollar increase goes to prices after all
the effort made by the government to lower inflation by means of
the 'chainsaw' and through the recession," he said, the report
relates.

She added: "That would seem to be senseless now if this continues
to happen to the dollar and it is applied to prices, so there's a
budding caution when looking at Argentina, the report discloses.

In the same vein, Alonso added that another major point is the need
for the government has to obtain legislative support, the report
notes.  "It's a permanente negotiation, but the things they want to
turn out lie in the hope that they will turn out, but it needs more
strength in that respect to be able to make changes," she
explained, referring to President Milei's attempt to push through
sweeping reforms in Congress via its 'Ley de Bases' omnibus bill,
the report relays.

"I believe there is some pressure about the existing exchange rate,
even if they do not wish to move the official exchange rate. If the
gap widens, the expectations for a devaluation make more sense, and
on the other hand, there is the fear of an increasing inflation.
All of that makes the market move with the expectation that there
isn't much margin in my opinion," said the analyst, the report
relates.

Meanwhile, Gaston Lentini laid more emphasis on policy in this
context. "The May Pact has fallen, rates have fallen, [provincial]
governors are not being supportive and the 'Ley de Bases' [bill] is
not coming out.  The result is clearly increased uncertainty and
nothing is more coward than money, which runs to take shelter, once
again in the dollar thus causing the rise," reflected the analyst,
the report discloses.

In his view, "the particular thing about this which many wish to
call a run, is that the Central Bank has purchased dollars and
ended up with more reserves, unlike other times, where the 'run'
happened due to a widespread increase in the demand for dollars
draining the State coffers," said the author and analyst. "That is
why I must first call for people to be calm," the report notes.

Among other reflections, he added: "I think the rise of the dollar
of the last few days is just one more adjustment which maybe
happened late," the report relays.

                       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.




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B A H A M A S
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FTX GROUP: Bankruptcy Lawyers Not Complicit in Fraud, Report Finds
------------------------------------------------------------------
Dietrich Knauth at Reuters reports that FTX's bankruptcy lawyers at
Sullivan & Cromwell were not complicit in the fraud that caused the
crypto company to collapse, a court-appointed examiner concluded.

Former FTX CEO Sam Bankman-Fried was convicted in November of
stealing $8 billion from FTX customers, according to Reuters.  FTX
creditors and investors had accused the company's lawyers at
Sullivan & Cromwell of failing to stop the fraud while positioning
themselves for a lucrative position as the company's primary
bankruptcy counsel, the report notes.

Reuters relays that an independent bankruptcy court investigation
by former prosecutor Robert Cleary found no evidence that the law
firm knew about the fraud or ignored any "red flags" when it
performed pre-bankruptcy work, such as assisting FTX with
regulatory filings and a failed buyout of crypto lender Voyager
Digital.

"Sullivan & Cromwell remains confident in our pre-petition work for
FTX and the commencement of the Chapter 11 cases, and we welcome
the examiner's findings to date rejecting various baseless
allegations about our work for FTX," the law firm said in a
statement obtained by the news agency.

The U.S. Trustee, a Department of Justice bankruptcy watchdog, had
demanded an independent investigation into fraud and mismanagement
that occurred at FTX before its collapse, saying it was "too
important" to leave to creditors and current management, the report
discloses.

The office of the U.S. Trustee declined to comment.

Sullivan and Cromwell attorneys made false statements to outside
parties while doing that work, but they did not know at the time
that the statements were untrue, Cleary found, the report relays.

For example, Sullivan & Cromwell partner Andy Dietderich told
Voyager Digital on Nov. 7 that FTX's finances were "rock solid" and
that questions about FTX's ability to close the deal were just
"silliness" based on rumors spread by a rival bidder, Binance, the
report notes.

That same day, however, FTX's Bankman-Fried was desperately trying
to raise emergency financing, and FTX went bankrupt four days
later, according to Cleary's report, Reuters says.

Some FTX creditors had unsuccessfully sought to block Sullivan &
Cromwell from representing FTX in its bankruptcy, due to its
previous ties to the company, including the fact that FTX's former
U.S. general counsel, Ryne Miller, was a former partner at Sullivan
& Cromwell, Reuters notes.

FTX investors have also sued the law firm, accusing it of abetting
Bankman-Fried's fraud, the report discloses.

The firm has charged more than $180 million for its work on FTX's
Chapter 11 from November 2022 until January 2024, according to
court documents, the report says.

The bankruptcy judge overseeing FTX's case had initially rejected
the U.S. Trustee's demand for an examiner as duplicative and
costly, but was overruled on appeal, the report adds.

                     About FTX Group

FTX is the world's second-largest cryptocurrency firm.  FTX is a
cryptocurrency exchange built by traders, for traders.  FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.

Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.

Faced with liquidity issues, FTX on Nov. 9, 2022, struck a deal to
sell itself to its giant rival Binance, but Binance walked away
from the deal amid reports on FTX regarding mishandled customer
funds and alleged US agency investigations.  Bankman-Fried agreed
to step aside, and restructuring vet John J. Ray III was quickly
named new CEO.

FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.

FTX Trading and its affiliates each listed $10 billion to $50
billion in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year.  

According to Reuters, SBF shared a document with investors on Nov.
10, 2022, showing FTX had $13.86 billion in liabilities and $14.6
billion in assets.  However, only $900 million of those assets were
liquid, leading to the cash crunch that ended with the company
filing for bankruptcy.

The Hon. John T. Dorsey is the case judge.

The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor.  Kroll is the claims
agent, maintaining the page
https://cases.ra.kroll.com/FTX/Home-Index

The Official Committee of Unsecured Creditors tapped Paul Hastings
as counsel, FTI Consulting, Inc., as financial advisor, and
Jefferies LLC as the investment banker.  Young Conaway Stargatt &
Taylor LLP is the Committee's Delaware and conflicts counsel.

Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases.

White-collar crime specialist Mark S. Cohen has reportedly been
hired to represent SBF in litigation.  Lawyers at Paul Weiss
previously represented SBF but later renounced representing the
entrepreneur due to a conflict of interest.




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B R A Z I L
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PETROLEO BRASILEIRO: Court Rules Against Firm in $193MM Tax Case
----------------------------------------------------------------
globalinsolvency.com, citing Reuters, reports that Brazil's
Superior Court of Justice has denied state-run oil company Petroleo
Brasileiro S.A. or Petrobras an appeal against the collection of
some 987 million reais (US$192.68 million) in taxes, the company
said.

The taxes relate to sales of oil derivatives from March 2002 to
October 2003, Petrobras said in a securities filing, according to
globalinsolvency.com.

The firm said it would assess whether a fresh appeal could be
lodged against the decision, the report notes.

                    About Petrobras

Petroleo Brasileiro S.A. or Petrobras (in English, Brazilian
Petroleum Corporation - Petrobras) is a semi-public Brazilian
multinational corporation in the petroleum industry headquartered
in Rio de Janeiro, Brazil.  Petrobras control significant oil and
energy assets in 16 countries in Africa, the Americas, Europe and
Asia.  But, Brazil represents majority of its production.

The Brazilian government directly owns 54% of Petrobras' common
shares with voting rights, while the Brazilian Development Bank
and Brazil's Sovereign Wealth Fund (Fundo Soberano) each control
5%, bringing the State's direct and indirect ownership to 64%.

A corruption scandal was uncovered in 2014 that involved
Petrobras.

The scandal related to money laundering that involved Petrobras
executives.  The executives were alleged to get received kickbacks
from overpriced contracts, to the tune of about $3 billion in
total.  Over a thousand warrants were issued against politicians
and businessmen in relation to the scandal.  In 2016,  Marcelo
Odebrecht, CEO of Odebrecht, was sentenced to 19 years in prison
after being convicted of paying more than $30 million in bribes to
Petrobras executives.

In January 2018, Petrobras agreed to pay $2.95 billion to settle a
U.S. class action corruption lawsuit.  In September 2018,
Petrobras agreed to pay $853.2 million to settle with Brazilian
and
U.S. authorities.

In July 2022, Fitch Ratings affirmed Petrobras' BB- Long-Term
Issuer Default Rating. In addition, Fitch has revised the Rating
Outlook to Stable from Negative following a similar revision to
Brazil's Sovereign Rating Outlook.  Also in July 2022, Egan-Jones
Ratings Company upgraded the foreign currency and local currency
senior unsecured ratings on debt issued by Petrobras to BB+ from
BB.

In January 2024, S&P Global Ratings assigned a new management &
governance (M&G) assessment of moderately negative to Brazil-based
Petroleo Brasileiro S.A. - Petrobras. At the same time, S&P has
affirmed its issuer credit ratings on Petrobras at 'BB' on the
global scale and 'brAAA' on the Brazilian national scale. S&P has
also affirmed its issue-level ratings on the company, and removed
all its ratings from under criteria observation (UCO).


PETROTRIN: Ex Workers Demand Transparency on Land Distribution
--------------------------------------------------------------
Verdel Bishop at Trinidad Express reports that former Petrotrin
workers are calling for full disclosure regarding the proposed
residential plots of land for ex-workers of the now-defunct
refinery.

The former workers and members of the Oilfield Workers Trade Union
(OWTU), led by president of the OWTU Pointe a Pierre branch,
Christopher Jackman, delivered a Freedom of Information request to
the Land Settlement Agency (LSA) at Orange Grove Road in Tacarigua,
according to Trinidad Express.

In August last year, as part of their termination benefits, 180
ex-workers of the former Petrotrin were awarded residential plots
of land at a function hosted by the LSA through a random lottery
draw, the report notes.  To date, 271 former workers have been
selected for the program that started in September 2021, the report
relays.

However, the former workers have labelled the program a sham and a
political gimmick, the report discloses.  They also claim that not
one of the workers selected for residential plots has received
deeds to their lands, the report says.

"They are informing everybody that Petrotrin workers would have
been getting land and that is part of our termination benefit but
thus far we have received nothing.  They need to stop saying that
they are distributing land to Petrotrin workers when they are not.
As far as we are aware, not one person would have received their
lease agreements from the Commissioner of State Lands," said
Jackman, the report notes.

In December 2018, Prime Minister Dr Keith Rowley announced in
Parliament that the government would provide land for former
employees of Petrotrin, and in March 2020, the Cabinet approved the
policy framework for the distribution of residential lots and
agricultural plots to former employees who received termination
benefits resulting from the closure of the Petrotrin refinery and
restructuring of exploration and production in 2018, the report
discloses.

The workers are requesting information on the number of Petrotrin
employees that were identified for land via the lottery system,
held on September 7, 2021, in which 70 ex-workers were selected, on
August 6, 2022, in which 21 persons were selected, and on August 9,
2023, in which 180 persons were selected, the report says.

They are also requesting to know the number of Petrotrin employees
in the pool for land distribution and for persons who have not yet
been able to apply for the lots or land bank, the report relays.

They are also requesting information on when the distribution
process for agricultural lots and lots for people who already own
homes will commence, the report notes.

"We have over 4,500 workers, and they claim that every worker will
be getting a piece of land, but so far they have reached 300, and
nobody has gotten their land.  Another issue is that people who did
not get a chance to apply are being told that there is no way that
they can apply, so the question is, is it really just a front that
they are putting forward to make the public believe that they are
distributing land to Petrotrin workers?" Jackman said, the report
discloses.

Jackman continued, "180 names were called in a lottery system last
year, and some have said that they got calls six weeks after their
names were called, promising that they would be contacted. Some
were told that because they couldn't start to build within a year's
time, their names were thrown out and placed back into a pool to be
drawn via the lottery system again, but how could that be when they
have also announced that there is a self-help program that will
cover the expenses to build? Added to that, when they rolled out
this plan, which the OWTU had no part in negotiating, they made
promises that persons who also had land would be able to apply and
persons who wanted agricultural plots would also be able to apply.
To this day, when we call the LSA and ask their response is that
this is not happening. In fact, the LSA is not even aware of the
agricultural plots and they have said that they are only working
with first time home owners," the report relays.

Jackman said the Freedom of Information Request is the second in
eight months, as the first one went unanswered, the report notes.
"This time we delivered the letter to Miss George, who promised a
response in 30 days. This issue has been a burning issue for former
Petrotrin workers, and we have not received an answer on the first
one, which was over eight months ago," he added.

"We need to stop using this issue as a means of making the public
believe that you are meeting your promises and commitments. This is
a false narrative because there is nothing to show for it. Has
anyone of the workers received their title deeds since 2021? They
are using this as a political tool to sway the minds of the people.
The workers want this issue settled. While they are trying to
convince the country that they are distributing land, the workers
are not getting anything," Jackman said, the report relays.

                        About Petrotrin

State-owned Petroleum Co. of Trinidad & Tobago (Petrotrin) closed
its oil refinery in November 2018. Prior to closure, Petrotrin
underwent a corporate reorganization that started in the last
quarter of 2018.  The T&T government insisted that the
reorganization was necessary to improve the company's efficiency.

As a result of the reorganization, Petrorin's refining business
was shut down and new entities were created: three operating
subsidiaries (Heritage Petroleum Company Limited, Paria Fuel
Trading Company and Guaracara Refining Company Limited), and the
new holding company, TPH, to which the international bonds were
transferred from Petrotrin.




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

DOMINICAN REPUBLIC: Foundations Unite for Sustainable Development
-----------------------------------------------------------------
Dominican Today reports that the Sur Futuro Foundation and the
Genera ITM Foundation have signed a memorandum of understanding to
collaborate on the sustainable development of Pedernales province.

This alliance aims to improve the quality of life for the residents
of Pedernales by focusing on five key areas: promoting sustainable
tourism, comprehensive training for individuals, supporting
strategic local ventures, protecting the environment, and fostering
community dialogue and participation, according to Dominican
Today.

The report notes that Melba Segura de Grullón, president of the
Sur Futuro Foundation, emphasized the urgent needs of Pedernales:
"If someone asks me which place in the Southern region shows the
most visible needs on the faces of its inhabitants, I tell them:
that place is Pedernales.  That's where the work is needed. In the
Oviedo Lagoon, in Juancho, in Aguas Negras, and in the Mulito
basin, which, if we do not pay attention, we will not have water."

She added, "Having Genera ITM as an ally to improve the quality of
life in that region is a dream come true. For 22 years, Sur Futuro
has strived to uplift the living conditions of those neglected
people, who were always the last to be remembered because they
lived far from the capital and had few votes," the report relays.

Alicia Mateos, president of the Genera ITM Foundation, expressed
her commitment to working with Sur Futuro to ensure a sustainable
and prosperous future for the communities of Pedernales and future
generations, the report discloses.

The partnership includes co-creating an action plan to define
programs or projects, their scope, and goals to achieve the shared
objectives, the report notes.

Promoting Sustainable Tourism in the Province
The goal is to promote sustainable, community-focused tourism, the
report says.  This involves creating spaces for dialogue among
communities, public and private institutions, and civil society to
define sustainability's key aspects, address the local tourism
offer, and develop comprehensive training programs for residents,
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.




=====================
E L   S A L V A D O R
=====================

BANDESAL: Moody's Hikes Foreign Currency LT Issuer Rating to Caa1
-----------------------------------------------------------------
Moody's Ratings has upgraded Banco de Desarrollo de El Salvador
("Bandesal" or "the bank") foreign currency long-term issuer rating
to Caa1, from Caa3, and its baseline credit assessment (BCA) and
adjusted BCA to caa1, from caa3. The bank's long-term counterparty
risk rating and counterparty risk assessment were also upgraded to
B3 and B3(cr), from Caa2 and Caa2(cr), respectively. At the same
time, the short-term counterparty risk rating and counterparty risk
assessment were affirmed at Not Prime and Not prime(cr),
respectively. The outlook of the long-term issuer rating remains
stable.

The rating action follows the upgrade of Government of El
Salvador's sovereign bond rating to Caa1, from Caa3 with stable
outlook.

RATINGS RATIONALE

Bandesal's Caa1 issuer rating is constrained by Government of El
Salvador's sovereign rating, reflecting Moody's views that as a
state-owned bank, Bandesal's creditworthiness is intrinsically
interlinked with that of the government. These interlinkages are
mainly related to the impact of the sovereign credit profile on the
bank's operating and funding structure. As a government-owned
development institution, Bandesal has a public mandate fully
aligned to the government's economic and social development agenda
with a funding limitation to multilaterals and government
resources. The upgrade of Bandesal's BCA to caa1 acknowledges the
bank's strong capitalization, its key credit strength, with
tangible common equity (TCE) accounting to 41% of risk weighted
assets (RWAs) in 2023, providing a sizeable buffer to absorb losses
and support loan growth. Historically maintaining high capital
ratios, since 2021, the bank has been increasing its direct lending
to small and medium sized businesses, while at the same time,
maintains its indirect lending activities which as of December 2023
accounted for 69% of total loans. In 2023,  credit grew 6.1%, and
12.4% in  2022, mostly driven by direct lending businesses. This
complementary strategy has had impact to its asset risk profile,
with NPLs increasing from almost 0% to 2.2% of gross loans in 2022
and 2.5% in 2023. Moreover, charge-offs in 2023 accounted for an
additional 2.0% of gross loans. As the bank shifts towards riskier
asset mix, Bandesal increased provisions for loan losses with
reserve coverage representing  122% of problem loans in 2023.

In terms of profitability, net income to tangible assets fell to
1.2% in 2023, from 1.4% in 2022, that despite the expansion into
higher-yielding loans, reflected lower net interest margin (NIM) by
the effect of higher funding costs and increased provisions for
loan losses. As a non-deposit taking institution, the bank has been
able to add resources diversification by increasing access to
multilateral organizations, which somewhat mitigates refinancing
and interest rate risks.

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

The Caa1 issuer rating of Bandesal is positioned at the same level
of the sovereign bond rating. The bank's BCA and rating could be
upgraded if El Salvador's sovereign bond rating was upgraded,
provided that the bank's financial profile remained sound and asset
quality stabilizes.

Conversely, the downward pressure on the bank's ratings would also
arise from  a downgrade of the sovereign rating. On a standalone
basis, its BCA of caa1 could be impacted by unexpected
deterioration in  asset quality metrics as the bank continues to
move towards direct lending strategy, or if profitability
deteriorates materially.

The principal methodology used in these ratings was Banks
Methodology published in March 2024.




=================
G U A T E M A L A
=================

GUATEMALA: Economy Continues to Show Stability, IMF Says
--------------------------------------------------------
An International Monetary Fund (IMF) mission, led by Ms. Maria A.
Oliva, visited Guatemala City during May 13-23 for the 2024 Article
IV consultation. At the end of the visit, the mission issued the
following statement:

The Guatemalan economy continues to show remarkable stability and
soundness thanks to a legacy of prudent monetary and fiscal
policies- with the inflation rate on target, ample international
reserves, contained fiscal deficits, and a low public debt/GDP
ratio that continues to fall. In line with the country's goals, the
administration needs to advance in the structural reform agenda.
The implementation of urgent reforms in the areas of
infrastructure, human capital investment, and governance cannot
wait if it is to support the country's productive sectors and
secure higher sustained and inclusive growth.

Macroeconomic policy will require structural reforms to continue to
support economic growth and increase it in the medium term.

Growth moderated in 2023 to 3.5 percent and is expected to remain
at that level in 2024. Despite some inflationary pressures in the
coming months, inflation is expected to remain within the bands at
the end of this and next year. The exchange rate remained
relatively stable. The current account is expected to remain in
surplus, but to gradually decline with higher imports as the
administration's fiscal agenda is being implemented. Credit market
development opportunities and ample liquidity in the markets help
explain the double-digit growth in bank credit to the private
sector. Slowing exports and limited foreign investment underscore
the urgent need for reforms.

The country's outlook remains favorable, with risks skewed to the
downside. Guatemala's dependence on remittances conditions the
robustness of private consumption to the U.S. Hispanic labor market
conditions, with greater impact on the most vulnerable population.
This dependence makes Guatemala's monetary and exchange rate
policies more complex and costly. Other risks to the economy would
include the lack of progress in the economic agenda, with economic
growth below potential and the possible resurgence of social
unrest. Increased volatility in commodity prices and the scourge of
natural disasters or major cyber-attacks are other risks on the
horizon. Successful execution of the administration's structural
reform agenda could lead to higher inclusive and sustainable growth
potential.

A renewed opportunity to strengthen spending and its quality, as
well as the culture of public management.

Guatemala needs more tax collection if it wants to continue
advancing on the road to development. The efforts to strengthen the
tax administration that have been made over the years have been
bearing fruit, but they will require greater impetus if the
country's development challenges are to be faced. We recognize the
efforts of the tax authorities, but at the same time it needs to be
acknowledged that revenues are among the lowest in the world.
Realistically, with tax revenue collection below 13 percent of GDP
(11.7 percent in 2023), it will be difficult to address the
country's urgent needs (e.g., infrastructure, education, health,
and malnutrition) without increasing debt. The mission has
advocated in favor of ensuring continuity in tax management,
approving legal protections for public servants in the fulfillment
of their mandate, as well as improving the communication with
taxpayers. A structural increase in tax collection-very necessary
to achieve sustainable growth goals consistent with the investment
grade discussion-will require comprehensive tax reform in the
future. Public outreach will help strengthen the importance of tax
compliance and of passing a tax reform that finances an agenda of
quality spending.

The mission stressed the importance of making progress in the
execution of capital spending, based on the quality, efficiency,
and transparency criteria, in line with the vision advanced by the
administration. Spending execution will require a multi-year agenda
of strategic transformation projects for the country, with a clear
timeline for objectives and realistic tax revenue projections. In
efforts to increase infrastructure investment and show results, the
mission emphasized the importance of sharing with the public
concrete and detailed action plans of the various ministries (e.g.,
Ministry of Communication, Infrastructure and Housing, Ministries
of Education and Health) to guide expectations and sustain support.
Institutional strengthening, with greater transparency, efficiency,
and quality of spending, are some of the areas of focus and on
which the IMF is assisting with technical assistance.

Aware of the imperative need to reduce gaps in the country, the
team supports temporary fiscal deficits that exceed two percent, if
linked to an action plan of well-designed and clear investments in
the areas of infrastructure, education, health, and social programs
to address child malnutrition and poverty. Guatemala's debt-to-GDP
ratio is low and projected to be sustainable under the
administration's expansionary fiscal policy. With financing costs
on the rise, the mission recommends developing the domestic capital
market - developing the secondary debt market and yield curve and
communicating with investors-in order to ensure more competitive
market conditions over time, including for the private sector.

Higher growth and absorption of capital flows into the country
requires gradual strengthening of the monetary and exchange rate
policy frameworks.

Changes in the leading interest policy rate should continue to be
data driven. Anticipated downward adjustments to the leading
interest rate, which could require subsequent upward corrections,
could de-anchor inflation expectations and jeopardize the
credibility of the monetary authority. At this juncture, it is
important for the Central Bank to move forward with reforms that
will strengthen the effectiveness of the policy rate by
strengthening the monetary policy transmission mechanisms. With
improvements in liquidity provision, the interbank market should be
able to manage liquidity asymmetries that may arise in the system.
Under an expansive fiscal policy scenario, consistency in monetary,
exchange rate, and fiscal policies will play a particularly
important role. In addition, it is important to continue advancing
in the development of foreign exchange and hedging, debt, and
financial markets that allow the private sector to manage market
risks, as well as to provide instruments for climate risk
management. The mission continues to advocate for a solvent Central
Bank that is able to conduct monetary liquidity management and
maintain price stability, as well as continue addressing challenges
ahead.

An inclusive financial sector guided by prudential principles could
further support the development of Guatemala.

The Guatemalan banking sector remains liquid and profitable and
shows resilience to shocks. The approval of the credit regulations
of the Superintendency of Banks, as well as the follow-up on their
implementation and effectiveness, is a step forward in
strengthening the sector. The mission reiterates the need to
approve a new Banking Law (which updates the 2002 Law on Banks and
Financial Groups)aligned with international standards of
regulatory, supervisory, and crisis management practices. The law
needs to also provide supervisory authorities with the necessary
tools to monitor risks and vulnerabilities that could affect
Guatemala's financial system, as well as to be able to respond, if
necessary. The mission also emphasized the importance of
communicating with the markets through risk assessment publications
and the publication of bank balance sheets using international
accounting standards.
Steady progress in the implementation of reforms would improve the
investment climate.

A good competition law that includes investment aspects, an
infrastructure and ports laws, the revision of the Public Private
Partnerships (PPP) and Free Trade Zone laws, as well as the civil
servants and procurement reforms are essential for the economy to
take off. Also, to improve legal certainty consistent with
international best practices, the mission urges the approval of
internal practices and structures in the legislation process such
as the review of draft legal texts by specialized teams and the
unification of criteria in the application of legislation in
court.

Greater competitiveness of the economy would require an active
policy in favor of the formal labor market, greater digitalization
and innovation, and a clear gender strategy, among others. The
implementation of the goals established in the 2024-2027 financial
inclusion strategy will help reduce social gaps.
Measures to strengthen governance include the publication of a
national anti-corruption plan and medium-term strategy to combat
impunity with a timetable for implementation and measurement
indicators. The approval of legislation aligning Guatemala's
anti-money laundering law with Financial Action Task Force
(GAFI/FATF) standards cannot wait longer, given the evaluation
based on effective compliance of the Law by 2027.
The mission wishes to thank the Guatemalan authorities for their
cooperation and openness in the exchanges throughout our visit and
wishes them every success in their efforts to move the country
towards an inclusive and sustainable growth that provides answers
to all Guatemalans.




=======
P E R U
=======

PETROLEOS DEL PERU: S&P Lowers ICR to 'B', On Watch Negative
------------------------------------------------------------
S&P Global Ratings lowered its ratings on Petroleus del Peru S.A.
(Petroperu S.A.) to 'B' from 'B+' and placed the rating on
CreditWatch with negative implications. S&P also revised downward
the company's stand-alone credit profile (SACP) to 'ccc' from
'ccc+', reflecting further deterioration in expected cash flow. S&P
also reassessed its view of the company's likelihood of government
support to high from very high and its link to the government to
strong from very strong, reflecting its belief that the latter has
shifted negatively.

S&P said, "The placement of the rating on CreditWatch negative
captures our view that we could lower our rating on Petroperu to
'B-' or lower in the next three months, based on the company's need
to obtain a waiver consent to avoid a technical default due to its
delay in obtaining the audited statements.

"We believe Petroperu's operating and financial condition has
weakened as a result of unexpected issues and a consequent stoppage
at one of Talara's units. The company had stated that the refinery
was fully operational by Dec. 31, 2023, but this unexpected
stoppage of the flexicoking unit, announced in April 2024 and
lasting until June 30, if not longer, has weakened EBITDA and cash
flows for 2024. This has delayed to 2025 the so much expected
recovery in EBITDA, exacerbating Petroperu's liquidity stress and
compromising its already weak working capital position. We believe
the 'ccc' SACP better reflects our view of the creditworthiness of
the company on a stand-alone basis, which is now even more
dependent on government support to avoid a default in payments over
the next 12 months.

"Recent developments have raised questions about the government's
link with Petroperu, although at this stage we still expect the
government to intervene to avoid a payment default. Our view is
based on the track record of support, recent public confirmation
from the Ministry of Finance (MEF), and our understanding that a
default in the company would have material social, economic and
reputational impacts for the Peruvian government.

"The government has a track record of supporting the company, and
we have noted the materialization of such support on various
occasions since Petroperu's crisis began in early 2022. These
measures were essential for maintaining business continuity and
instrumental in preserving the country's fuel supply while avoiding
a default. However, in our view, these measures haven't addressed
the company's unsustainable capital structure, its operational
deficiencies, or its scarce liquidity, and haven't restored market
confidence. After more than two years since crisis erupted, we
believe there is very little visibility on how Petroperu will
address its crisis and on management's effectiveness in doing so."

S&P's view of the likelihood of support incorporates such
qualitative factors as:

-- S&P's belief that there are more uncertainties on the
government's ability to implement sustainable corrective measures
in a context of persistent vulnerabilities.

-- Although Petroperu is fully owned by the government (Ministry
of Energy and MEF), concerns about effective governance persist.
The company is increasingly dependent on government support.

-- Complicated politics around support, and injecting more money
into the company widely perceived as inefficient in a context of a
government with limited political capital and popular support.

S&P will continue to monitor the relationship between Petroperu and
the government, including the latter's incentives, capacity,
timing, and tools for supporting the company, particularly if there
are complications in receiving a waiver for the audit or if the
Talara stoppage persists through 2024.

As in 2022 and 2023, in 2024 Petroperu will likely miss the
deadline to release its previous-year audited financial statements
(2023), as required by its bonds agreement and its credit agreement
with Companía Espanola de Seguros de Crédito a la Exportacion
(CESCE), which is 150 days from closing. The company would
negotiate a waiver to avoid a technical breach of the documentation
covenant. If it doesn't obtain a waiver, this would represent an
EoD on the two main funding sources for the Talara refinery project
(the international bonds and the CESCE facility), which could
potentially result in debt acceleration, also cascading to other
short-term uncommitted bank facilities in case of nonpayment due to
the cross-default clauses.

In the past, Petroperu managed to obtain the necessary waivers.
However, at this stage, given the events commented in this report
(noted above), the new setbacks at Talara (with the resulting much
weaker performance in 2024), and new uncertainties surrounding the
audit (e.g., timeliness, and the valuation of Talara), this
exercise appears to be more challenging, as S&P believes the
market's appetite for continuing to support the company has
potentially eroded over the last two years.




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

MINERVA: Meat Giants' Merger Faces Regulatory Roadblock in Uruguay
------------------------------------------------------------------
Richard Mann at Rio Times Online reports that Uruguay's antitrust
authority has halted part of a massive $1.5 billion deal between
Brazilian giants Marfrig Global Foods and Minerva.

This decision addresses concerns about potential market dominance
that could impact meat and cattle market dynamics in Uruguay
negatively, according to Rio Times Online.

The blocked transaction specifically involved three key plants in
Uruguay, part of a larger deal including 16 facilities across
Brazil, Argentina, Chile, and Uruguay, the report notes.

While the blockage affects only the Uruguayan assets valued at
about $132 million, the broader deal progresses with facilities in
other countries, the report relays.

Rio Times Online discloses that Minerva's strategy aims to
strengthen its position in South American beef exports.

This is particularly significant as global beef demand surges,
notably due to shortages in the U.S. Uruguay's decision was
scrutinized by local ranchers and industry associations, the report
relays.

They expressed concerns about Minerva potentially controlling
around 50% of Uruguay's cattle slaughtering capacity, which could
significantly influence cattle prices, the report relates.

This deal is part of Minerva's aggressive strategy to expand its
regional footprint, the report says.

Completing this deal will greatly increase Minerva's operational
scope, boosting its daily slaughtering capacity and market
position, the report notes.

Minerva financed this expansion with significant credit facilities,
highlighting the strategic importance of this acquisition, the
report discloses.

  Meat Giants' Merger Faces Regulatory Roadblock in Uruguay

This story is more than corporate maneuvering; it underscores the
dynamic, competitive nature of the global meat industry, the report
notes.

Strategic acquisitions like this can reshape market landscapes and
influence supply chains across continents, the report says.

The repercussions of such deals affect everything from local
farming communities to international meat prices, the report
relays.

This ongoing development is crucial for stakeholders in the meat
industry, especially regarding its influence on market competition
and pricing strategies in South America, the report says.

The unfolding story of global meat trade significantly impacts
economies and dinner tables worldwide, the report adds.



                           *********


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