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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

          Tuesday, June 18, 2024, Vol. 25, No. 122

                           Headlines



A R G E N T I N A

ARGENTINA: Central Bank Says China Currency Swap Renewed
ARGENTINA: Milei to Meet IMF Chief During Push for New Program
ARGENTINA: Workers to Halt Grain Exports Against Milei's Reforms
LATAM: Caribbean Urged to Take Advantage of Existing Trade Deals


J A M A I C A

JAMAICA: BOJ to Stop Exchanging Coins for Three Major Currencies


P U E R T O   R I C O

PUERTO RICO: First Circuit Says PREPA Bondholders' Liens Valid


T R I N I D A D   A N D   T O B A G O

TRINIDAD & TOBAGO: Moody's Affirms 'Ba2' Issuer & Unsec. Ratings


V E N E Z U E L A

CITGO PETROLEUM: Local Creditors Seek JPMorgan Help for $7BB Bid

                           - - - - -


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A R G E N T I N A
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ARGENTINA: Central Bank Says China Currency Swap Renewed
--------------------------------------------------------
Manuela Tobias at Bloomberg News reports that Argentina's Central
Bank has renewed a roughly US$5-billion portion of its currency
swap line with the People's Bank of China for another two years,
the monetary authority said in a statement.

Starting in mid-2025, Argentina will begin to gradually pay down
the activated portion of the US$18-billion currency swap over a
12-month period, pushing out maturities that were scheduled for
this June and July, according to the statement, the report
discloses.

The roughly US$5-billion loan was drawn down from the swap line
between Beijing and Buenos Aires during former president Alberto
Fernandez's government last year to make payments owed to the
International Monetary Fund and finance imports, according to
Bloomberg News.

An agreement between the new government of President Javier Milei
and IMF staff last month on the latest review of the country's
US$44-billion program included a firm commitment to refinance or
roll over the debt, according to people familiar with the deal, who
asked not to be identified as the information isn't public, the
report notes.

The rollover commitment clears a major obstacle for Argentina's
programme, as the government must show it has so-called financing
assurances to receive IMF board approval, the report adds.

                      About Argentina

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

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

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

S&P Global Ratings, on 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.


ARGENTINA: Milei to Meet IMF Chief During Push for New Program
--------------------------------------------------------------
Manuela Tobias at Bloomberg News reports that resident Javier Milei
will meet face-to-face with the head of the International Monetary
Fund in Italy, with Argentina claiming it has cleared a key hurdle
as it seeks fresh funds to eventually lift capital controls.

The libertarian leader's talks with Managing Director Kristalina
Georgieva on the sidelines of the Group of Seven summit will take
place a day after the Fund's executive board votes on its latest
review of the crisis-prone nation's US$44-billion program,
according to Bloomberg News.

Milei's government said it was ending its policy of negative real
interest rates on Treasury auctions, a strategy implemented during
the administration's first six months of trying to tame
triple-digit annual inflation, Bloomberg News relays.  Positive
real rates from the Central Bank are a key demand of the
Washington-based lender, Bloomberg News notes.

Economy Minister Luis Caputo trumpeted a sovereign debt auction
that featured a 4.25 percent interest rate on 90-day Treasury
notes.  With monthly inflation for May expected to come in under
five percent in data due, Caputo declared victory. "The era of the
negative real rates ended for us today," he said at an event in
Buenos Aires, Bloomberg News discloses.

Bloomberg News says that the Argentine Central Bank's benchmark
lending rate, however, stands at 40 percent - down from 133 percent
when Milei took office in December, with another cut expected soon.
Annual inflation is running at nearly 300 percent, so it remains
to be seen if the Fund will agree with the government's argument
that real rates are now positive, Bloomberg News relays.    

Milei wants to begin negotiations on a new IMF programme in a bid
to build up enough reserves to lift a web of currency controls
that's holding back investment in Argentina, Bloomberg News notes.
The president has estimated that about US$15 billion would be
required, though he indicated not all of that would need to come
from the IMF, Bloomberg News says.

Negotiations with the IMF could take some time, Caputo said at a
Cato Institute event, declining to specify how long or how much
money Argentina would request, Bloomberg News discloses.

Bloomberg News relays that the board vote would free up about
US$800 million for debt repayments.  In accordance with the latest
review, Argentina's Central Bank announced that it has renewed a
roughly US$5 billion portion of its currency swap line with the
People's Bank of China for another two years, Bloomberg News
notes.

While in Italy, Milei will also hold bilateral talks with Emmanuel
Macron, Bloomberg News relays.  He'd originally planned to meet the
French president in Paris after the G7 summit but backtracked,
citing his signature reform package that is up for a vote in
Argentina's opposition-controlled Senate, Bloomberg News
discloses.

The Argentine leader will deliver a speech at the G7 about
artificial intelligence, Presidential Spokesman Manuel Adorni
announced via text message, along with the rest of his itinerary,
Bloomberg News relays.  Milei is also slated to meet Italian Prime
Minister Giorgia Meloni, who as summit host extended the invitation
to the libertarian, as well as World Bank President Ajay Banga,
Bloomberg News notes.

Milei will then travel to Switzerland, where he'll attend a
conference on the war in Ukraine and hold a bilateral meeting with
President Volodymyr Zelenskyy, Bloomberg News says.

Back at home, his government is hoping to pass its so-called
'omnibus' bill and an accompanying fiscal package in a general vote
with a razor-thin margin, Bloomberg News discloses.  But many of
its most important measures are hanging by a thread, with their
fate to be determined in a chapter-by-chapter vote, Bloomberg News
adds.

                       About Argentina

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

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

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

S&P Global Ratings, on 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.


ARGENTINA: Workers to Halt Grain Exports Against Milei's Reforms
----------------------------------------------------------------
AFP News reports that Argentine oil unions stopped activity at
ports exporting grains and related products, as well as grinding
plants in the country.

The move came in rejection of the economic deregulation agenda
pushed by President Javier Milei, according to AFP News.

The measure, announced by the Workers' Federation of the Oleaginous
Industrial Complex, the industry reporting the highest income in
foreign currency in Argentina, will be "indefinite" starting, said
to AFP their leader, Daniel Yofra, the report notes.

"The main reason is the labor reform pushed by the government,
which it calls modernization," explained the union leader, the
report discloses.

AFP News relays that the strike against the "Ley de Bases" reform
promises to halt the activity of the industries located outside
Rosario, Santa Fe, which are the third biggest agro-exporing port
complex.

The Senate will discuss an abridged version of Milei's reform bill,
who marks his first semester in power without having achieved the
approval of laws in Congress, where his party, La Libertad Avanza,
is a minority, the report discloses.

If senators approve the statute, which in April was given the green
light by the Chamber of Deputies, the package with over 200
articles will go back to the Lower House for its final approval,
the report relays.

The bill delegates the Parliament's powers to the Executive Branch,
including a controversial incentive regime for big investment and
subjects some ten state companies for privatization, among other
measures, the report notes.

A fiscal reform including the so-called income tax on salaries and
pensions at scales involving an increased base is also being
debated, the report relays.

Yofra highlighted that for workers the reinstatement of this tax
"means a pay cut," the report notes.

For the leader of the oleaginous industry workers, "there is no
article in the Bases Law benefitting workers," the report
discloses.

In addition to the strike, the Federation called a demonstration
opposite Congress in Buenos Aires alongside the main workers'
associations in the country, social organisations, left-wing
parties and members of civil society, the report says.

The strike is taking place in a context of tension between the
agro-exporting sector and Milei's government over the dollar
exchange rate, which companies consider low and unattractive to
liquidate foreign currency from their sales abroad, the report
adds.

                      About Argentina

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

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

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

S&P Global Ratings, on 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.


LATAM: Caribbean Urged to Take Advantage of Existing Trade Deals
----------------------------------------------------------------
RJR News reports that Caribbean countries are being encouraged to
take advantage of existing sovereign agreements for trade between
African territories.

Commissioner in charge of Economic Development & Trade at the
African Union, Ambassador Albert Muchanga, said this will help to
bridge the trade gap between the two regions, until a free trade
agreement can be finalized, according to RJR News.

Albert Ramdin, Minister of Foreign Affairs in Suriname, said
connectivity issues must also be addressed as a priority, the
report notes.

"If you want to come to our region or we go to Africa, we have to
go through either New York or Miami or Europe.  It's incredible.
There's no direct connection. Very few possibly.  That has to
increase because people-to-people communication will make trade
easier and investment flows easier. It will create trust," he
noted, adding that this will aid in connecting the private sector
of the two regions, the report notes.

Mr. Ramdin and Mr. Muchanga were speaking at the second day of the
Afreximbank Annual Meetings and Afri-Caribbean Trade and Investment
Forum in Nassau, Bahamas, the report adds.




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J A M A I C A
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JAMAICA: BOJ to Stop Exchanging Coins for Three Major Currencies
----------------------------------------------------------------
RJR News reports that the Bank of Jamaica (BOJ) said it will no
longer exchange coins for three major currencies.

In a notice, the central bank said it will no longer change
Canadian Dollar, Great Britain Pound and Euro coins at its counter,
effective July 1 this year, according to RJR News.

The central bank says it has become challenging to offer this
service, due to the unavailability of options for sending these
coins back to their issuing central banks, the report relays.

The Bank of Jamaica says the decision to cease accepting non-US
dollar coins is consistent with the practice of central banks in
the Caribbean region, the report adds.

                       About Jamaica

Jamaica is an island country situated in the Caribbean Sea.
Jamaica is an upper-middle income country with an economy heavily
dependent on tourism.  Other major sectors of the Jamaican economy
include agriculture, mining, manufacturing, petroleum refining,
financial and insurance services.

In October 2023, Moody's upgraded the Government of Jamaica's
long-term issuer and senior unsecured ratings to B1 from B2, and
senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has
been changed to positive from stable.  The upgrade of Jamaica's
rating to B1 reflects the government's sustained commitment to
fiscal consolidation and debt reduction.  The positive outlook
reflects Moody's assessment that a continuation of the favorable
fiscal trajectory will further increase Jamaica's credit
resilience.

S&P Global Ratings raised on September 13, 2023, its long-term
foreign and local currency sovereign credit ratings on Jamaica to
'BB-' from 'B+', and affirmed its short-term foreign and local
currency sovereign credit ratings at 'B'.  The stable outlook
reflects S&P's expectation that the government will remain
committed to prudent fiscal policies and reducing debt, as well as
supportive economic policies including a flexible exchange rate
regime and effective monetary policy.  

In March 2022, Fitch Ratings affirmed Jamaica's Long-Term Foreign
Currency Issuer Default Rating (IDR) at 'B+'. The Rating Outlook is
Stable.




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

PUERTO RICO: First Circuit Says PREPA Bondholders' Liens Valid
--------------------------------------------------------------
The United States Court of Appeals for the First Circuit has ruled
that bondholders of the Puerto Rico Electric Power Authority
(PREPA) have a claim for over $8.5 billion and valid liens on the
revenue of utility, reversing the lower court on both issues.  A
three-judge panel consisting of William J. Kayatta Jr., Jeffrey R.
Howard and Julie Rikelman concluded that the language in a trust
agreement governing the revenue bonds created a security interest
in the net revenues of PREPA. The decision also found that the
bondholders have a bankruptcy claim for the full amount of the
bonds issued. It will now be up to the bankruptcy court to decide
the impact this will have on the restructuring plan.

PREPA is an electric power company owned by the Commonwealth of
Puerto Rico responsible for electricity generation, power
distribution, and power transmission on the island. The company
began restructuring proceedings in 2017.

Bondholders of the Puerto Rico Electric Power Authority ("PREPA"),
including GoldenTree Asset Management, LP and Assured Guaranty
Municipal Corp. and Assured Guaranty Inc., commented on the First
Circuit decision:

"We are pleased with the First Circuit Court of Appeals' decision
reinstating the bondholders' claim for the principal amount of the
bonds plus matured interest (approximately $8.5 billion) and
finding that the claim is secured by all of PREPA's past, present,
and future Net Revenues. The decision restores the municipal
market's understanding of the proper functioning of special revenue
bonds.

The PREPA Bondholders remain hopeful that the Puerto Rico
government and the Oversight Board will engage in a constructive
fashion to reach a fair resolution of the PREPA restructuring that
allows the Commonwealth to move past its bankruptcy proceedings and
focus its efforts on providing services to the island's citizens. A
consensual emergence from bankruptcy will best position the people
of Puerto Rico for economic success and allow the island to achieve
its goal of re-accessing the capital markets as an investment grade
issuer, and the PREPA Bondholders remain ready to engage."

Dechert LLP represented the municipal bondholders.  The Dechert
team included financial restructuring partners G. Eric Brunstad
Jr., Stephen D. Zide, and David A. Herman. Mr. Brunstad argued it
in the First Circuit.

                       About Puerto Rico

Puerto Rico is a self-governing commonwealth in association with
the United States. The chief of state is the President of the
United States of America. The head of government is an elected
Governor. There are two legislative chambers: the House of
Representatives, 51 seats, and the Senate, 27 seats.

In 2016, the U.S. Congress passed PROMESA, which, among other
things, created the Financial Oversight and Management Board and
imposed an automatic stay on creditor lawsuits against the
government, which expired May 1, 2017.

The members of the oversight board are: (i) Andrew G. Biggs, (ii)
Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J.
Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii)
David A. Skeel Jr.

On May 3, 2017, the Commonwealth of Puerto Rico filed a petition
for relief under Title III of the Puerto Rico Oversight,
Management, and Economic Stability Act ("PROMESA"). The case is
pending in the United States District Court for the District of
Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico's
PROMESA petition is available at
http://bankrupt.com/misc/17-01578-00001.pdf                       



On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation
(COFINA) commenced a case under Title III of PROMESA (D.P.R. Case
No. 17-01599). Joint administration has been sought for the Title
III cases.

On May 21, 2017, two more agencies -- Employees Retirement System
of the Government of the Commonwealth of Puerto Rico and Puerto
Rico Highways and Transportation Authority (Case Nos. 17-01685 and
17-01686) -- commenced Title III cases.

U.S. Chief Justice John Roberts named U.S. District Judge Laura
Taylor Swain to preside over the Title III cases.

The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets as municipal investment
banker, and Ernst & Young, as financial advisor.

Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq.,
at O'Neill & Borges LLC are onboard as attorneys.

Prime Clerk LLC is the claims and noticing agent.  Prime Clerk
maintains the case Website https://cases.primeclerk.com/puertorico

Jones Day is serving as counsel to certain ERS bondholders.

Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General
Obligation Bondholders.




=====================================
T R I N I D A D   A N D   T O B A G O
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TRINIDAD & TOBAGO: Moody's Affirms 'Ba2' Issuer & Unsec. Ratings
----------------------------------------------------------------
Moody's Ratings has changed the Government of Trinidad & Tobago's
outlook to stable from positive and affirmed the Ba2 long-term
local and foreign currency issuer and senior unsecured ratings.

The change in the outlook to stable is driven by increasing
external vulnerability risks as highlighted by the accelerated pace
of liquid foreign exchange reserves drawdown observed over the
first four months of 2024. The drawdown is the result of declining
energy receipts owing to declining gas prices and significant
capital outflows, indicating higher than previously anticipated
macroeconomic and fiscal adjustment costs for the next two years
until large new natural gas developments are projected to come
onstream starting 2026 or 2027. These downside risks balance upside
risks resulting from the government's continued economic and fiscal
revenue diversification effort in light of a mature domestic energy
sector and volatile natural gas prices. At the Ba2 rating level,
Moody's expects the credit profile to be resilient to potential
project delays and increased capital flow volatility around current
foreign exchange reserve levels that Moody's expects over the next
two years.

The Ba2 rating is supported by a return to sustained positive
growth mainly driven by the non-energy sector, following several
years of contraction owing to the weak energy sector performance.
Fiscal risks related to a relatively high debt burden are mitigated
by significant buffers consisting of the Heritage and Stabilization
Fund amounting to 20% of GDP, plus cash buffers at a similar
amount. The Ba2 rating also takes into account Trinidad & Tobago's
moderate external vulnerability, with falling reserves despite
large current account surpluses; and moderate institutional and
governance strength.

Local currency (LC) and foreign currency (FC) country ceilings
remain unchanged at Baa2 and Ba1, respectively. The three-notch gap
of the LC ceiling at Baa2 with the sovereign rating reflects the
economy's significant exposure to the hydrocarbon sector with
spillovers to activity in the non-energy sector, balanced by low
exposure to domestic and geopolitical risk. The FC ceiling remains
at Ba1. The two-notch gap with the LC ceiling captures potential
transfer and convertibility risks reflected in the track record of
balance of payments weakness over the past few years, which
contributed to reported foreign exchange shortages and has the
potential to affect the import capacity of small and medium-sized
businesses in the non-energy sector.

RATINGS RATIONALE

RATIONALE FOR THE STABLE OUTLOOK

INCREASING EXTERNAL VULNERABILITY RISKS BALANCE CONTINUED ECONOMIC
AND FISCAL REVENUE DIVERSIFICATION EFFORTS

Following a period of foreign exchange reserve stability in 2022
until mid-2023, liquid foreign exchange reserves (defined as gross
reserves excluding gold and SDR, FX reserves) have resumed a
decade-long downward trend that has further accelerated over the
first four months of 2024. This drawdown of FX reserves to $4
billion in April 2024 from $4.9 billion in December 2023 is mainly
driven by declining energy receipts owing to declining gas prices
and significant capital outflows, exacerbated by the persistent
interest rate differential with the US.

Compared to one year before, FX reserves as of April have declined
by an unprecedented 28%, indicating a higher than previously
anticipated degree of capital flow volatility during the transition
phase until large new natural gas developments are projected by the
government to come onstream starting 2026 or 2027. The weaker level
of FX reserve coverage that Moody's estimates at 5.5 months of
imports (based on goods and services imports as of Q3 2023) reduces
the economy's external shock absorption capacity in case this trend
persists.

These increased downside risks mitigate upside credit pressure
related to the government's continued economic and fiscal revenue
diversification efforts in light of a mature domestic energy sector
and volatile natural gas prices. For instance, despite lower than
budgeted energy revenue projected for fiscal 2024 (ending September
2024) according to the government's mid-year review, Moody's
projects the fiscal deficit to remain close to the budgeted 2.7% of
GDP in light of the government's spending reduction and non-energy
revenue raising efforts.

The government is expected to continue fiscal consolidation through
revenue enhancing measures such as the establishment of the new
Revenue Authority (TTRA), as well as the implementation of property
and gaming and gambling taxes. The government also continues to
make progress with the gradual phasing out of remaining fuel,
electricity and water subsidies with the objective to increase the
operational efficiency of public utilities to ultimately reduce the
large transfer and subsidies bill which was recorded at about 17%
of GDP in fiscal 2023.

RATIONALE FOR THE Ba2 AFFIRMATION

The Ba2 rating is supported by a return to positive growth mainly
driven by the non-energy sector and significant fiscal buffers. The
Ba2 rating also takes into account Trinidad & Tobago's moderate
institutional and governance strength and moderate event risk,
including external vulnerability risk. At the Ba2 rating level,
Moody's expects the credit profile to be resilient to potential
project delays and increased capital flow volatility around current
FX reserve levels.

The return to positive growth is mainly driven by the non-energy
sector, following several years of contraction owing to the weak
energy sector performance as existing fields mature and major new
projects are scheduled to come onstream in 2026. The establishment
of the EXIM Bank has helped channel scarce foreign exchange for
intermediate goods imports for the development of new export
markets in particular in the manufacturing sector.

The government's diversification strategy to mitigate mounting
carbon transition risks over the next decade includes the launch of
a green hydrogen road map in December 2022, as well as the
installation of a combined 112-megawatt solar power project — the
largest in the Caribbean — to help decarbonize power generation
and free up gas for export.

On the fiscal side, Moody's projects the adjusted general
government debt ratio (defined as debt of the central government
debt plus guaranteed debt of non-self serviced state-owned
enterprises and statutory authorities) to increase to 73.4% in
fiscal 2024, a relatively high level, and stay at similar levels in
fiscal 2025 before declining thereafter, driven by a stronger
energy production profile and improved revenue generation capacity.
Moody's assessment of fiscal strength and the rating also takes
into account the benefits to the government balance sheet from
significant fiscal buffers via the Heritage and Stabilization Fund
at about 20% of GDP—plus cash buffers at a similar amount—which
mitigates fiscal risks.

A solid strength of civil society and the judiciary assessment
supports Trinidad & Tobago's institutions and governance strength,
reflecting its constitutional system of checks and balances, and
institutional transparency. Meanwhile, external vulnerability risk
drives the sovereign's moderate event risk exposure, capturing
falling FX reserves despite large current account surpluses,
together with banking sector risk reflecting potential risks to the
government balance sheet stemming from the size of the domestic
banking sector and credit unions in case of a systemic crisis.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE RISKS

Trinidad and Tobago's ESG Credit Impact Score at CIS-4 reflects the
credit profile's exposure to environmental risk derived from carbon
transition risk as a mature carbon producer.

Trinidad & Tobago's (T&T) E-5 assessment is driven by carbon
transition risk. T&T is a mature hydrocarbon producer facing a
natural production decline, with proven gas reserves covering about
11 years of production. Several large projects that are either
underway or that will materialize with a high likelihood over the
next five years underpin Moody's expectation of a broadly stable
energy production profile over the next decade, including by
leveraging T&T's Atlantic LNG infrastructure as regional hub for
gas from other producers in the region. However, the overall weak
energy production trend weighs on T&T's growth outlook and on the
ability to replenish the economy's foreign exchange reserve buffers
that have declined over the past decade.

Exposure to social risks at S-3 indicates that social
considerations historically have not materially impacted Trinidad
and Tobago's credit profile, supported by an ample social safety
net and a "very high" tier ranking in the Human Development Index.
However, Trinidad and Tobago also records a comparatively high
crime rate with almost 30 homicides per 100,000 population in 2021
that could adversely impact the business environment in the
future.

The influence of governance on Trinidad and Tobago's credit profile
is not material (G-3 issuer profile score) but benefits from
significant efforts in recent months to improve data reporting and
reduce data limitations and institutional constraints that limit
the government's capacity to execute fiscal policy.

GDP per capita (PPP basis, US$): 31,330 (also known as Per Capita
Income)

Real GDP growth (% change): 2.4% (2023) (also known as GDP Growth)

Inflation Rate (CPI, % change Dec/Dec): 0.7% (2023)

Gen. Gov. Financial Balance/GDP: -1.4% (2023) (also known as Fiscal
Balance)

Current Account Balance/GDP: 8% (estimated 2023) (also known as
External Balance)

External debt/GDP: 56.1% (estimated 2023)

Economic resiliency: ba1

Default history: No default events (on bonds or loans) have been
recorded since 1983.

On June 12, 2024, a rating committee was called to discuss the
rating of the Trinidad & Tobago, Government of. The main points
raised during the discussion were: The issuer's economic
fundamentals, including its economic strength, have not materially
changed. The issuer's institutions and governance strength, have
increased. The issuer's fiscal or financial strength, including its
debt profile, has not materially changed. The issuer's
susceptibility to event risk has not materially changed but
external vulnerability risk has increased.

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

T&T's rating would likely be upgraded if government measures prove
effective in addressing the weakening energy production trend with
a boost to domestic oil or gas production or by accessing gas
supplies from neighboring countries. These elements would support
growth and economic resiliency, providing the government with
additional room to make continued progress with the structural
economic diversification agenda, while containing external
vulnerability risks. A track record of continued primary surpluses
as targeted by the government that places adjusted general
government debt/GDP on a downward trajectory would further
strengthen the sovereign credit profile.

Conversely, a further substantial drawdown of foreign-exchange
reserves as a result of capital outflows would adversely affect the
sovereign credit profile, as would the stalling of fiscal reforms
— for example, fuel subsidy reform and tariff liberalization —
resulting in a sustained build-up in the debt ratio.

The principal methodology used in these ratings was Sovereigns
published in November 2022.




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V E N E Z U E L A
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CITGO PETROLEUM: Local Creditors Seek JPMorgan Help for $7BB Bid
----------------------------------------------------------------
globalinsolvency.com, citing Bloomberg News, reports that a group
of Venezuela creditors is seeking funding from JPMorgan Chase & Co.
in a $7 billion bid for the parent of Citgo Petroleum Corp.

The group, which includes Canadian miner Gold Reserve Inc., are
among a list of claimants that between them have more than $20
billion in judgments against Venezuela for arbitration awards,
unpaid debts and defaulted bonds, according to
globalinsolvency.com.

A district judge in Delaware is leading a process to sell PDV
Holding, which controls Venezuela's most important foreign asset,
refiner Citgo Petroleum Corp., in an auction to pay off creditors.
PDV is itself a subsidiary of state-controlled oil giant Petróleos
de Venezuela S.A., or PDVSA, the report notes.

Final bids were due June 11, with the sale hearing scheduled less
than two weeks before of presidential elections in Venezuela, the
report relays.

JPMorgan agreed to help arrange debt and equity financing. PDVSA is
being represented in US courts by an ad hoc board appointed by the
country's opposition, the report notes.  In an effort to keep the
asset, it has been lobbying legislators to pressure the Biden
administration to intervene and potentially stop the sale, the
report adds.

                 About CITGO Petroleum

Citgo Petroleum Corporation is a United States-based refiner,
transporter and marketer of transportation fuels, lubricants,
petrochemicals and other industrial products.  Based in Houston,
Texas, Citgo is majority-owned by PDVSA, a state-owned company of
the Venezuelan government (although due to U.S. sanctions, in
2019, they no longer economically benefit from Citgo.)

As reported in the Troubled Company Reporter-Latin America in June
2022, S&P Global Ratings affirmed its 'B-' long-term issuer credit
ratings on CITGO Holding Inc. and core subsidiary CITGO Petroleum
Corp.



                           *********


S U B S C R I P T I O N   I N F O R M A T I O N

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