/raid1/www/Hosts/bankrupt/TCRLA_Public/240723.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Tuesday, July 23, 2024, Vol. 25, No. 147
Headlines
A R G E N T I N A
ARGENTINA: Milei Focuses on Legislative Agenda
ARGENTINA: Parallel Peso Strengthens as Milei Starts Intervention
B E R M U D A
NABORS INDUSTRIES: S&P Rates New $550M Sr. Guaranteed Notes 'CCC'
B R A Z I L
BRAZIL: Halts Some Poultry Exports After Newcastle Disease Case
INTERCEMENT BRASIL: Chapter 15 Case Summary
C A Y M A N I S L A N D S
AINOS INC: Extends Patent Deal With TCNT, Pays US$161,000 in Fees
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: BCRD Says Net Reserves Dropped by USD2,072M
[*] DOMINICAN REPUBLIC: Chicken Shortage Will be Back to Normal
[*] DOMINICAN REPUBLIC: Free Trade Zones Set Record Exports in June
[*] DOMINICAN REPUBLIC: Partners With Keysight Technologies
J A M A I C A
JAMAICA: Fewer Cos. Says Profits Were Better Than Expected in Q2
JAMAICA: June Inflation at 1.1%
- - - - -
=================
A R G E N T I N A
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ARGENTINA: Milei Focuses on Legislative Agenda
----------------------------------------------
Ramon Indart at Buenos Aires Times reports that the goal of the
second semester of Javier Milei's government, and in parallel with
economic urgency, is to maintain the libertarian alliance with
blocs open to dialogue in Congress to insert their own bills and
move forward with such matters as the lowering of the criminal
liability age.
On the other hand, there are initiatives such as pensions which
have put the Executive Branch on alert, the report notes.
According to Buenos Aires Times, one of the bills to be processed
will be the "Ficha Limpia (Clean Record)", which bars from
elections those who have been sentenced for corruption up to a
second tier in court. Silvia Lospennato (PRO) is working on the
issue and in 2019 she got an opinion that never made it to the
house, the report notes.
Plenary sessions have been called for August 6 for the
Constitutional Affairs and Justice committees in the Chamber of
Deputies to begin processing the bill, the report discloses. The
call came from La Libertad Avanza deputies Nicolas Mayoraz and
Manuel Quintar, 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: Parallel Peso Strengthens as Milei Starts Intervention
-----------------------------------------------------------------
Kevin Simauchi at Bloomberg News reports that the Argentine peso is
on pace for its biggest one-day gain in the parallel market since
President Javier Milei took office as his government began to sell
dollars in an effort to further tame inflation.
The parallel peso gained more than 8.1 percent to trade at 1,291
pesos per dollar as of 4 p.m., July 15, in Buenos Aires, according
to Bloomberg News. Milei's government started intervening in the
parallel market to bridge the gap with the official rate, which is
set at 922 pesos per dollar, and bring down inflation running at
roughly 270 percent annually, Bloomberg News notes.
The government hasn't announced how much it sold in the parallel
market, Bloomberg News discloses.
Bloomberg News relays that while the move was on track to shrink
the gap between Argentina's different exchange rates on Day 1, it
risks fanning concerns that the policy is a short-term fix.
In the long run, investors say, it will slow the rate at which the
government is accumulating foreign reserves, a tool Milei relies on
to pay foreign creditors and an essential step before lifting
capital controls, Bloomberg News notes.
"It's another detour in the FX transitory regime," said Alejandro
Cuadrado, a Latin America strategist at Banco Bilbao Vizcaya
Argentaria SA, Bloomberg News relates. "Intervention is not
sustainable, less so if its at the expense of reserves," he added.
Sovereign dollar bonds were among the worst performers in emerging
markets with notes falling at least 0.50 cent on the dollar across
the curve, according to indicative pricing compiled by Bloomberg.
The intervention policy was announced by Milei and Economy Minister
Luis Caputo, who said it would offset the emission of pesos created
from purchases of greenbacks in the official exchange market,
Bloomberg News notes.
While the peso floats freely, the official exchange rate is
strictly controlled by the Central Bank, 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.
=============
B E R M U D A
=============
NABORS INDUSTRIES: S&P Rates New $550M Sr. Guaranteed Notes 'CCC'
-----------------------------------------------------------------
S&P Global Ratings assigned its 'CCC' issue-level rating and '6'
recovery rating to Bermuda-based drilling contractor Nabors
Industries Ltd.'s proposed $550 million senior guaranteed notes due
2031. The company's subsidiary, Nabors Industries Inc. will issue
the notes. The '6' recovery rating indicates its expectation of
negligible (0%-10%; rounded estimate: 0%) recovery of principal by
creditors in the event of a payment default.
Nabors will use the proceeds from these notes to redeem its
outstanding approximately $556 million 7.25% senior guaranteed
notes due January 2026. In addition to the issuance, the company
recently announced that it has amended and extended its $350
million revolving credit facility (not rated) to June 2029 and
added a committed $125 million letter of credit tranche. S&P views
both of these announcements as accretive for credit quality because
it will eliminate the refinancing risk related to its 2026
maturities. However, its 'B-' issuer credit rating and stable
outlook on Nabors Industries Ltd. are unchanged due, in part, to
its considerable 2027 maturity.
ISSUE RATINGS RECOVERY ANALYSIS
Key analytical factors:
-- S&P said, "We value the company using a discrete asset value
approach based on its Dec. 31, 2023, net asset value, which is
consistent with our treatment of other contract drilling companies.
We assume 5% annual depreciation and a 50% realization rate on the
company's drilling equipment. We estimate that for the company to
default, the exploration and production industry would need to
sustain a significant reduction in spending, leading to limited
demand for drilling services."
-- S&P assumes the company's $350 million credit facility's $100
million accordion feature is not activated and is 85% drawn at the
time of default.
Simulated default assumptions:
-- Simulated year of default: 2026
-- Insolvency jurisdiction (Rank A): The majority of the company's
revenue/assets are located in the U.S.
Simplified waterfall:
-- Net enterprise value (after 5% administrative costs): $1.11
billion
-- Value available to first-lien debt: $1.11 billion
-- Total senior secured debt (accounts receivable and revolver
facility): $309 million
--Recovery expectations: Not applicable
-- Value available to second-priority debt: $806 million
-- Total second-priority debt: $1.4 billion
--Recovery expectations: 50%-70% (rounded estimate: 55%)
-- Total third-priority debt: $979 million
-- Total available to third-priority debt: $0 million
--Recovery expectations: 0%-10% (rounded estimate: 0%)
-- Total subordinated unsecured debt: $252 million
-- Total available to unsecured debt: $0
--Recovery expectations: 0%-10% (rounded estimate: 0%)
Note: All debt amounts include six months of prepetition interest.
===========
B R A Z I L
===========
BRAZIL: Halts Some Poultry Exports After Newcastle Disease Case
---------------------------------------------------------------
Ana Mano, Luana Maria Benedito and Leticia Fucuchima at Reuters
report that the world's top chicken exporter Brazil has voluntarily
halted poultry exports to some countries after a case of Newcastle
disease was detected in the state of Rio Grande do Sul, its
agriculture ministry said.
The move comes as local authorities try to contain the viral
disease after around 7,000 birds died on a chicken farm in Brazil's
southernmost state, according to Reuters. The flock's remaining
7,000 birds were culled to comply with health protocols, according
to meat lobby group ABPA, the report notes.
From a sample of 12 birds from the flock, government investigators
found at least one positive case of Newcastle, ABPA, which
represents exporters such as JBS (JBSS3.SA) and BRF (BRFS3.SA), the
report discloses.
Newcastle causes respiratory problems in birds and sometimes leads
to death, the report says.
The temporary export restrictions could affect 50,000 to 60,000
metric tons of Brazilian poultry exports "in the worst-case
scenario," ABPA said, the report notes. Brazil produces 1.2
million tons and exports 430,000 tons of poultry products, on
average, per month, the report relays.
The restrictions range, depending on the destination country, from
all Brazilian poultry exports to products only from Rio Grande do
Sul, the agriculture ministry said, the report says.
The restrictions affect sales to 44 nations including China,
Argentina, the European Union, Japan and Saudi Arabia, the ministry
said, the report notes.
Rio Grande do Sul accounts for 15% of Brazilian poultry production
and exports, according to ABPA, the report discloses.
The agriculture ministry declared an animal health emergency in Rio
Grande do Sul due to the Newcastle case, the report relays.
Notification by countries of Newcastle cases is mandatory under
guidelines from the World Organisation for Animal Health, the
report discloses.
The last previous confirmed cases of Newcastle in Brazil occurred
in 2006 in subsistence birds in the states of Amazonas, Mato Grosso
and Rio Grande do Sul, according to the ministry, the report notes.
Subsistence birds meet a family's need for food and are not kept
for trade, the report adds.
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.
As reported in the TCR-LA on May 6, 2024, Moody's Ratings affirmed
the Government of Brazil's long-term issuer and senior
unsecured bond ratings at Ba2, senior unsecured shelf rating at
(P)Ba2 and changed the outlook to positive from stable. Moody's
assesses thatBrazil's real GDP growth prospects are more robust
than in the pre-pandemic years, supported by the implementation of
structural reforms over multiple administrations, as well as the
presence of institutional guardrails that reduce uncertainty
around future policy direction. The outlook change to positive is
underpinned by Moody's assessment that more robust growth combined
with continued, albeit gradual, progress towards fiscal
consolidation, may allow Brazil's debt burden to stabilize.
However, there are risks to the government's execution of
continued fiscal consolidation.
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-TermForeign-Currency Issuer Default Rating (IDR) at 'BB' with
a StableOutlook. 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.
DBRS Inc., on August 15, 2023, upgraded Brazil's Long-TermForeign
and Local Currency - Issuer Ratings to BB from BB (low).At the same
time, DBRS Morningstar confirmed Brazil'sShort-term Foreign and
Local Currency - Issuer Ratings at R-4.The trend on all ratings is
Stable (March 2018).
INTERCEMENT BRASIL: Chapter 15 Case Summary
-------------------------------------------
Four affiliates that concurrently filed voluntary petitions for
relief under Chapter 15 of the Bankruptcy Code:
Debtor Case No.
------ --------
InterCement Brasil S.A. 24-11226
InterCement Participacoes S.A. 24-11227
Avenida das Nacoes Unidas No. 12495
13th Floor
Sao Paulo, Sao Paulo
Brazil
InterCement Financial Operations B.V. 24-11228
InterCement Trading e Inversiones S.A. 24-11229
Business Description: InterCement is a producer of cement and
concrete based in Brazil. Overall, the
Company has 34 production units, with an
active capacity of more than 33 million tons
of cement per year, employing more than
6,000 professionals.
Foreign Proceeding: Court Proceeding in Brazil
Chapter 15 Petition Date: July 15, 2024
Court: United States Bankruptcy Court
Southern District of New York
Judge: TBD
Foreign Representative: Antonio Reinaldo Rabelo Filho
Rua Barao da Torre, 550,
Apt. 201, Ipanema
Rio de Janeiro, RJ
Brazil
Foreign
Representative's
Counsel: John K. Cunningham, Esq.
WHITE & CASE LLP
1221 Avenue of the Americas
New York NY 10020
Tel: (212) 819-8200
Email: jcunningham@whitecase.com
Estimated Assets: Unknown
Estimated Debt: Unknown
A full-text copy of InterCement Participacoes' Chapter 15 petition
is available for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/6GP6G2Q/InterCement_Participaes_SA_and__nysbke-24-11227__0001.0.pdf?mcid=tGE4TAMA
===========================
C A Y M A N I S L A N D S
===========================
AINOS INC: Extends Patent Deal With TCNT, Pays US$161,000 in Fees
-----------------------------------------------------------------
Ainos, Inc. disclosed in Form 8-K Report filed with the U.S.
Securities and Exchange Commission that the Company and Taiwan
Carbon Nano Technology Corporation entered into the second addendum
to the Product Development Agreement to extend the non-exclusive
use of that certain patents related to volatile organic compounds
and point-of-care testing technologies and to pay the Patent Use
Fee for an additional three months, from July 2024 to September
2024.
As previously reported, on August 1, 2021, Ainos, Inc. entered into
a five-year product development agreement with Taiwan Carbon Nano
Technology Corporation. TCNT holds a majority share of Ainos Inc.,
a Cayman Islands corporation, which holds approximately 39% of the
voting power of the Company as of July 8, 2024. Pursuant to the
Product Development Agreement, the parties will co-develop
pharmaceutical, medical device and other products defined in the
agreement. As previously reported, on January 9, 2024, the Company
and TCNT entered into an addendum to the Product Development
Agreement in connection with the scope of co-development and
certain terms. For products defined in the First Addendum
Agreement, TCNT will provide facilities, equipment, mass production
process technology, ISO9001 and ISO13485 related management, as
well as mass production support. The procurement of parts and raw
materials, rental fees, and utility expenses are excluded. The
Company paid a total fee of NT$5 million (approximately
USD$161,000) for five-years of development commencing from 2024.
For six months commencing from January 2024, TCNT will provide
non-exclusive use of certain patents related to "VOC" and "POCT"
technologies for a monthly fee of US$95,000 (plus 5% sales tax),
with negotiable payment terms.
A full-text copy of the Second Addendum Agreement is available at
https://tinyurl.com/ye255z49
About Ainos
Ainos, Inc. -- www.ainos.com -- formerly known as Amarillo
Biosciences, Inc., is a diversified healthcare company focused on
the development of novel point-of-care testing (the "POCT"),
therapeutics based on very low-dose interferon alpha (the
"VELDONA"), and synthetic RNA-driven preventative medicine. The
Company's product pipeline includes commercial-stage VELDONA Pet
cytoprotein supplements, clinical-stage VELDONA human therapeutics
and telehealth-friendly POCTs powered by the AI Nose technology
platform.
Ainos reported a net loss of $13.77 million for the year ended Dec.
31, 2023, compared to a net loss of $14.01 million for the year
ended Dec. 31, 2022. As of Dec. 31, 2023, the Company had $31.84
million in total assets, $7.39 million in total liabilities, and
$24.45 million in total stockholders' equity.
Diamond Bar, California-based KCCW Accountancy Corp., the Company's
auditor since 2023, issued a "going concern" qualification in its
report dated March 8, 2024, citing that the Company has incurred
recurring losses and recurring negative cash flow from operating
activities, and has an accumulated deficit which raises substantial
doubt about its ability to continue as a going concern.
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: BCRD Says Net Reserves Dropped by USD2,072M
---------------------------------------------------------------
Dominican Today reports that the net reserves of the Central Bank
of the Dominican Republic (BCRD) fell from US$15,457.7 million at
the end of 2023 to US$13,384.9 million by June 2024, marking a
decrease of US$2,072.9 million, or -13.4%.
In contrast, reserves saw a rise in 2023, increasing by US$860.6
million from US$14,597.1 million to US$15,457.7 million, a growth
of 5.9%, according to Dominican Today.
The BCRD defines international reserves as financial resources in
foreign currency that ensure the payment of imported goods and debt
service, as well as stabilize the currency's value, the report
notes. A strong reserve position is considered a sign of financial
strength, which helps reduce sovereign risk, the report relays.
According to International Monetary Fund (IMF) guidelines, net
international reserves should cover at least three months of
imports and exceed 100% of the monetary base, the report adds.
About Dominican Republic
The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district. Luis Rodolfo
Abinader Corona is the current president of the nation.
TCR-LA reported in April 2019 that Juan Del Rosario of the UASD
Economic Faculty cited a current economic slowdown for the
Dominican Republic and cautioned that if the trend continues,
growth would reach only 4% by 2023. Mr. Del Rosario said that if
that happens, "we'll face difficulties in meeting international
commitments."
An ongoing concern in the Dominican Republic is the inability of
participants in the electricity sector to establish financial
viability for the system.
On December 4, 2023, the TCR-LA reported that Fitch Ratings has
affirmed Dominican Republic's Long-Term Foreign-Currency Issuer
Default Rating (IDR) at 'BB-' and revised the Outlook to Positive
from Stable. Fitch says the Positive Outlook reflects a trend
improvement in governance, and robust growth prospects that should
lead to continued gains in per capita income. According to Fitch,
growth has decelerated in 2023, but it expects Dominican Republic
to recover to high levels during 2024-2025. External liquidity
metrics have improved in recent years, and foreign currency share
of government debt is on a downward path.
In August 2023, Moody's Investors Service changed the outlook on
the Government of Dominican Republic's ratings to positive from
stable and affirmed the local and foreign-currency long-term issuer
and senior unsecured ratings at Ba3. Moody's said the key drivers
for the outlook change to positive are: (i) sustained high growth
rates have enhanced the scale and wealth levels of the economy; and
(ii) a material decline in the government debt burden coupled with
improved fiscal policy effectiveness will support medium-term debt
sustainability.
The affirmation of the Ba3 ratings balances the Dominican
Republic's strong economic growth dynamics and relatively contained
susceptibility to event risks, with a comparatively weaker fiscal
position, reflecting long-standing credit challenges which include:
(i) a shallow revenue base compared to peers, (ii) weak debt
affordability metrics, and (iii) high exposure to foreign currency
borrowing.
S&P Global Ratings, in December 2022, raised its long-term foreign
and local currency sovereign credit ratings on the Dominican
Republic to 'BB' from 'BB-'. The outlook on the long-term ratings
is stable. S&P affirmed its 'B' short-term sovereign credit
ratings. S&P also revised its transfer and convertibility (T&C)
assessment to 'BBB-' from 'BB+'. The stable outlook reflects S&P's
expectation of continued favorable GDP growth and policy continuity
over the next 12-18 months that will likely stabilize the
government's debt burden.
In February 2023, S&P said its BB ratings reflect the country's
fast-growing and resilient economy. It also incorporates the
country's historical political and social challenges in passing
structural reforms to contain fiscal deficits, despite recent
improvements in the electricity sector. The ratings are constrained
by relatively high debt, a hefty interest burden, and limited
monetary policy flexibility.
[*] DOMINICAN REPUBLIC: Chicken Shortage Will be Back to Normal
---------------------------------------------------------------
Dominican Today reports that given the chicken shortage registered
in the Dominican Republic's markets and the product price increase,
the Minister of Agriculture, Limber Cruz, assured that "at the end
of the month, everything will be normalized."
Chicken farmers in some Santo Domingo markets have declared to
Listin Diario that there has not been much white meat production,
which has affected sales and caused speculation and an increase in
the price of the food, according to Dominican Today.
When asked about this crisis, the minister explained, "There is a
transitory situation due to a weather problem and high
temperatures," the report notes.
According to Cruz, another reason was the low quality of the raw
materials consumed by the chicken during its growth: corn and
soybean oil, the report relays.
"They did not have the quality or sufficient nutrients, and this
caused the chicken not to have the yield it usually has in the 45
days of the process," he told this newspaper, the report
discloses.
The official said that the government does not intervene in
purchasing raw materials, as this is the responsibility of the
large industries that produce this product, the report says.
However, Cruz said that "good corn has already arrived" in the
country for new chicken production, the report notes.
The official said that to control the shortage, they have removed
between six and seven million pounds of chicken, which they had
pledged, the report relays.
". . . we had 2.2 million out of the pledge, out of the warehouses
so that they can reach all the sales outlets and all the
consumers," he added, notes the report. "I am convinced and sure
that they were distributed in the capital, in San Cristobal, San
Juan and Santiago; what happens is that we cannot simultaneously
reach all points (of sale) in the country. That is impossible."
Cruz made these statements during the International Seminar
"Legislative Excellence: innovation, reforms, and party cohesion"
organized by the governing Modern Revolutionary Party (PRM), he
report adds.
About Dominican Republic
The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district. Luis Rodolfo
Abinader Corona is the current president of the nation.
TCR-LA reported in April 2019 that Juan Del Rosario of the UASD
Economic Faculty cited a current economic slowdown for the
Dominican Republic and cautioned that if the trend continues,
growth would reach only 4% by 2023. Mr. Del Rosario said that if
that happens, "we'll face difficulties in meeting international
commitments."
An ongoing concern in the Dominican Republic is the inability of
participants in the electricity sector to establish financial
viability for the system.
On December 4, 2023, the TCR-LA reported that Fitch Ratings has
affirmed Dominican Republic's Long-Term Foreign-Currency Issuer
Default Rating (IDR) at 'BB-' and revised the Outlook to Positive
from Stable. Fitch says the Positive Outlook reflects a trend
improvement in governance, and robust growth prospects that should
lead to continued gains in per capita income. According to Fitch,
growth has decelerated in 2023, but it expects Dominican Republic
to recover to high levels during 2024-2025. External liquidity
metrics have improved in recent years, and foreign currency share
of government debt is on a downward path.
In August 2023, Moody's Investors Service changed the outlook on
the Government of Dominican Republic's ratings to positive from
stable and affirmed the local and foreign-currency long-term issuer
and senior unsecured ratings at Ba3. Moody's said the key drivers
for the outlook change to positive are: (i) sustained high growth
rates have enhanced the scale and wealth levels of the economy; and
(ii) a material decline in the government debt burden coupled with
improved fiscal policy effectiveness will support medium-term debt
sustainability.
The affirmation of the Ba3 ratings balances the Dominican
Republic's strong economic growth dynamics and relatively contained
susceptibility to event risks, with a comparatively weaker fiscal
position, reflecting long-standing credit challenges which include:
(i) a shallow revenue base compared to peers, (ii) weak debt
affordability metrics, and (iii) high exposure to foreign currency
borrowing.
S&P Global Ratings, in December 2022, raised its long-term foreign
and local currency sovereign credit ratings on the Dominican
Republic to 'BB' from 'BB-'. The outlook on the long-term ratings
is stable. S&P affirmed its 'B' short-term sovereign credit
ratings. S&P also revised its transfer and convertibility (T&C)
assessment to 'BBB-' from 'BB+'. The stable outlook reflects S&P's
expectation of continued favorable GDP growth and policy continuity
over the next 12-18 months that will likely stabilize the
government's debt burden.
In February 2023, S&P said its BB ratings reflect the country's
fast-growing and resilient economy. It also incorporates the
country's historical political and social challenges in passing
structural reforms to contain fiscal deficits, despite recent
improvements in the electricity sector. The ratings are constrained
by relatively high debt, a hefty interest burden, and limited
monetary policy flexibility.
[*] DOMINICAN REPUBLIC: Free Trade Zones Set Record Exports in June
-------------------------------------------------------------------
Dominican Today reports that the Dominican Association of Free
Trade Zones (ADOZONA) is celebrating the record-breaking export
results published by the General Directorate of Customs (DGA) for
June 2024. The sector achieved a new high with exports totaling
US$752.96 million, marking a 4.6% increase compared to the same
period last year, according to Dominican Today. Overall, total
exports for June 2024 rose by 8.6% from June 2023, reaching
US$1,134.88 million, the report notes.
ADOZONA President Luis Jose Bonilla Bojos highlighted the
significance of these results, stating that they reaffirm the vital
role of Free Trade Zones in driving economic growth and job
creation in the Dominican Republic, the report relays.
"These results reflect the continued commitment of the export
sector and its ability to adapt and grow in a dynamic global
environment. ADOZONA is proud that our sector can contribute
significantly to the sustainable economic development of our
nation, promoting investments and generating opportunities for all
Dominicans," said Bonilla Bojos, the report says.
In the first half of 2024, total exports amounted to US$6,334.32
million, showing a 3.1% growth compared to US$6,145.19 million in
the same period of 2023, the report notes. While domestic exports
reached US$1,922.99 million, slightly below the previous year, Free
Trade Zone exports hit a record US$4,258.46 million, reflecting a
robust growth of 6.8% compared to US$3,987.92 million by June 2023,
the report discloses.
Annualized exports from Free Trade Zones over the past 12 months
reached a historic record of US$8,322.55 million, the report says.
If this trend continues, exports could exceed US$8,500 million by
the end of 2024, marking a significant milestone in the sustained
growth of the export sector, the report adds.
About Dominican Republic
The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district. Luis Rodolfo
Abinader Corona is the current president of the nation.
TCR-LA reported in April 2019 that Juan Del Rosario of the UASD
Economic Faculty cited a current economic slowdown for the
Dominican Republic and cautioned that if the trend continues,
growth would reach only 4% by 2023. Mr. Del Rosario said that if
that happens, "we'll face difficulties in meeting international
commitments."
An ongoing concern in the Dominican Republic is the inability of
participants in the electricity sector to establish financial
viability for the system.
On December 4, 2023, the TCR-LA reported that Fitch Ratings has
affirmed Dominican Republic's Long-Term Foreign-Currency Issuer
Default Rating (IDR) at 'BB-' and revised the Outlook to Positive
from Stable. Fitch says the Positive Outlook reflects a trend
improvement in governance, and robust growth prospects that should
lead to continued gains in per capita income. According to Fitch,
growth has decelerated in 2023, but it expects Dominican Republic
to recover to high levels during 2024-2025. External liquidity
metrics have improved in recent years, and foreign currency share
of government debt is on a downward path.
In August 2023, Moody's Investors Service changed the outlook on
the Government of Dominican Republic's ratings to positive from
stable and affirmed the local and foreign-currency long-term issuer
and senior unsecured ratings at Ba3. Moody's said the key drivers
for the outlook change to positive are: (i) sustained high growth
rates have enhanced the scale and wealth levels of the economy; and
(ii) a material decline in the government debt burden coupled with
improved fiscal policy effectiveness will support medium-term debt
sustainability.
The affirmation of the Ba3 ratings balances the Dominican
Republic's strong economic growth dynamics and relatively contained
susceptibility to event risks, with a comparatively weaker fiscal
position, reflecting long-standing credit challenges which include:
(i) a shallow revenue base compared to peers, (ii) weak debt
affordability metrics, and (iii) high exposure to foreign currency
borrowing.
S&P Global Ratings, in December 2022, raised its long-term foreign
and local currency sovereign credit ratings on the Dominican
Republic to 'BB' from 'BB-'. The outlook on the long-term ratings
is stable. S&P affirmed its 'B' short-term sovereign credit
ratings. S&P also revised its transfer and convertibility (T&C)
assessment to 'BBB-' from 'BB+'. The stable outlook reflects S&P's
expectation of continued favorable GDP growth and policy continuity
over the next 12-18 months that will likely stabilize the
government's debt burden.
In February 2023, S&P said its BB ratings reflect the country's
fast-growing and resilient economy. It also incorporates the
country's historical political and social challenges in passing
structural reforms to contain fiscal deficits, despite recent
improvements in the electricity sector. The ratings are constrained
by relatively high debt, a hefty interest burden, and limited
monetary policy flexibility.
[*] DOMINICAN REPUBLIC: Partners With Keysight Technologies
-----------------------------------------------------------
Dominican Today reports that Keysight Technologies, represented by
David Yee Arellano, General Manager for Latin America, and
UNICARIBE, led by Foreign Minister Dr. Jose Alejandro Aybar M.,
along with Dominican Vice Minister of Industry and Commerce
Johannes Kelner, signed a collaboration agreement to develop the
semiconductor industry in the Dominican Republic at SEMICON WEST in
California.
This agreement is part of the Ministry of Industry, Commerce, and
MSMEs' efforts at SEMICON WEST 2024, the leading industry event
connecting over 1.3 million professionals and featuring more than
2,500 global companies, according to Dominican Today.
The collaboration aims to enhance cooperation between the Dominican
government, the business sector, and higher education institutions
to train personnel for the semiconductor industry in the Caribbean,
the report notes.
Vice Minister Kelner thanked Keysight Technologies for the
opportunity to share experiences and showcase advanced facilities,
calling the agreement a crucial step toward a strategic partnership
with UNICARIBE and Keysight, the report relays.
David Yee Arellano emphasized that the agreement includes creating
semiconductor training programs, with Keysight providing industry
experts, developing courses, workshops, and specialized
laboratories, the report notes.
Dr. Jose Alejandro Aybar M., Chancellor of UNICARIBE, announced the
launch of the university's first Higher Technician program in
Semiconductor Technology and the formation of a Dominican
University Consortium focused on semiconductors. This initiative,
supported by universities such as UASD, UNADE, UNAPEC, UNICARIBE,
and UTESA, aligns with Decree 324-24 from President Luis Abinader
to advance the semiconductor industry in the country, 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.
=============
J A M A I C A
=============
JAMAICA: Fewer Cos. Says Profits Were Better Than Expected in Q2
----------------------------------------------------------------
RJR News reports that fewer businesses were of the view that their
profits were better than expected in the second quarter compared
with the similar period last year.
The Jamaica Chamber of Commerce commissioned Business Confidence
Survey found that for the April to June 2024 period, almost 18 per
cent of the 100 businesses polled, thought their profits were
higher than expected, according to RJR News.
"Twenty-three per cent in the second quarter of 2023 said that
profits were better than expected, so things were picking up. That
fell to 17.9 per cent in the second quarter of 2024, but remained
the same over the 2024 first period and the 2024 second period. No
change," reported Don Anderson, Executive Chairman of Market
Research Services, the firm which conducted the survey, the report
notes.
Fifty-seven per cent of businesses said their profit was as
expected, compared with the 53.2 per cent which held that view last
year, the report discloses.
Some 15.2 per cent of businesses were of the view that their
profits were worse than expected, the report notes.
Time to Invest?
Fewer businesses surveyed in the second quarter were of the view
that it was a good time to invest, the report discloses.
Compared to the second quarter last year, 3.2 per cent fewer
businesses felt it was a good time to invest, the report says.
"Between the second quarter of 2023, 53 per cent said it was a good
time to invest. Second quarter 2024 that's down to 50 per cent.
When we look at what the first quarter was, 62 per cent of the
firms in this first quarter of 2024 said it was a good time to
invest. That dropped 12 percentage points to 50 per cent. So what's
happening? People are more concerned about the whole situation,
profitability, business climate, and there are other factors that
we will see feeding into that notion that it's not really a good
time to invest," reasoned Mr. Anderson, the report notes.
As for future finances, compared to the similar period last year,
there was a 10 per cent drop in the number of firms which felt this
segment of business would improve beyond the second quarter, the
report relays.
"Seventy per cent expected in the second quarter of 2023 that their
finances would improve. That fell to 61.6 per cent in the second
quarter, so over the year we have seen a fall off of some nine
percentage points, and when we compare that to the first quarter of
2024 it's a 10 per cent fall off in the expectations that their
finances would improve. So businesses are concerned, no question
about that," said the researcher, 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.
JAMAICA: June Inflation at 1.1%
-------------------------------
RJR News reports that inflation in the month of June was 1.1 per
cent.
Deputy Director General at the Statistical Institute of Jamaica,
Leesha Delatie-Budair, said this upward movement in the average
cost of goods and services for the month, was largely due to
increases in the cost of 'Food and Non-Alcoholic Beverages' at 1.4
per cent, according to RJR News.
Also contributing to the rise was a 0.8 per cent increase in
'Housing, Water, Electricity, Gas and Other Fuels' and 'Transport'
at 1.3 per cent, the report notes.
"The index for the 'Food and Non-Alcoholic Beverages' division was
influenced by a 6.8 per cent increase in the index for the class
'Vegetables, Tubers, Plantains, Cooking Bananas and Pulses' due to
higher prices for items such as tomato, carrots, yam and cabbage,"
said Ms. Delatie-Budair, the report relays.
Higher rates for electricity and rent contributed to the increase
of 0.8 per cent in the index for the 'Housing, Water, Electricity,
Gas and Other Fuels' division, the report says.
The 1.3 per cent increase in the 'Transport' division was
attributed to the revised fair structure of the Jamaica Urban
Transit Company (JUTC), the report notes.
Ms. Delatie-Budair was speaking at a press briefing, 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.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.
Copyright 2024. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
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contact Peter A. Chapman at 215-945-7000.
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* * * End of Transmission * * *