/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/240814.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 Wednesday, August 14, 2024, Vol. 25, No. 163 Headlines B E R M U D A VALARIS LIMITED: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable B R A Z I L COMPANHIA SIDERURGICA: Fitch Alters Outlook on 'BB' IDR to Stable PETROLEO BRASILEIRO: Incurs $470M Net Loss in Q2 2024 C A Y M A N I S L A N D S ZIRAAT KATILIM: Fitch Rates USD1.5B Trust Cert. Programme 'B' D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Highlights Progress but Urges Reform J A M A I C A JAMAICA: Exports in Agriculture Industry Fell by 13.2% in Q1 JAMAICA: Looks to Leverage Gastronomy Tourism T R I N I D A D A N D T O B A G O GUARDIAN MEDIA: Records $2.3 Million Loss in 1H 2024 V E N E Z U E L A VENEZUELA: Faces Judicial Showdown Over Election Results - - - - - ============= B E R M U D A ============= VALARIS LIMITED: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable ---------------------------------------------------------------- Fitch Ratings has affirmed Valaris Limited's (Valaris) Long-Term Issuer Default Rating (IDR) at 'B+' with a Stable Outlook. Fitch has also affirmed the second lien secured notes due 2030 co-issued by Valaris and Valaris Finance Company LLC at 'B+'/'RR4'. Fitch expects Valaris' leverage to decline by the end of 2024, as strong floating drilling rig day rates continue to buoy the company's contract prices. EBITDA improved dramatically in 2Q24 compared to previous quarters, and Fitch expects further improvement in 2H24 and 2025. Valaris' credit profile benefits from one of the largest fleets of offshore jackups and floaters, short-term revenue visibility due to contracts with minimum prices and volumes, and healthy liquidity. The company's profile is negatively affected by high volatility in day rates and rig utilization, combined with an asset-heavy business model and high operating leverage. Together, these factors result in considerable swings in EBITDA, depending on the industry cycle. Fitch's projected midcycle EBITDA leverage of 2.6x for Valaris has moderate headroom relative to the downgrade sensitivity of 3.0x. Key Rating Drivers EBITDA Growth Decreases Leverage: Fitch projects Valaris' EBITDA will improve to almost $500 million in 2024 from $169 million in 2023 as the company starts realizing higher day rates on the 2023-2024 contracts from rig reactivations and contract rollovers. Its Fitch-calculated EBITDA increased to $146 million in 2Q24 from $62 million in 1Q24. Fitch projects further improvement in EBITDA later through YE2024 and during 2025. Valaris' EBITDA leverage decreased to 3.2x at end-2Q24 from 6.5x at end-2023, and Fitch projects that it will be 2.2x by YE2024. Fitch expects the company's EBITDA will start declining in 2026 based on its falling oil price assumptions and reach 2.6x at midcycle. Elevated Capex to Normalize: Fitch forecasts Valaris' capex to reduce considerably after 2024, which should turn the company's FCF positive. It frontloaded 2023-2025 capex with two new drillships in 2023 and capitalized reactivation costs. The larger part of the reactivation costs is reflected in EBITDA, which also weighs on the company's leverage. If Valaris finds contracts for the stacked rigs, additional reactivation capex will be incurred, but additional reactivations should be positive overall for its credit profile. Backlog on Growth Trajectory: In July 2024, Valaris secured a nearly 2.5-year contract for one of its drillships to work in Brazil for Equinor. Valaris estimates the contract value at $498 million. The company's backlog increased to $4.3 billion as of July 29, 2024 from $3.0 billion as of Aug. 1, 2023. Valaris' Fitch-projected 2025 revenue was covered by the existing backlog by 68%, which is relatively high. 2025 revenue may materially exceed Fitch's expectations if the offshore drilling market remains strong. Continued Market Rebound: As long-term forward oil prices started to increase in 2021, market day rates for floaters began growing at a fast pace and more than doubled since YE 2020. Valaris' average floater daily revenue increased to $327,000 in 1H24 from $249,000 in 1H23 as market rates are gradually reflected in contracts. Fitch expects market day rates to start declining in 2025 based on its oil price deck, and they will gradually feed into Valarisis' contracts. Floater utilization on a global scale has been stagnant over the last year but remains at healthy levels. The number of contracted floaters was largely stagnant worldwide in 2017-2024, with only minor improvements. Valaris still has three drillships and two semi-submersible rigs stacked, including two drillships acquired at the end of 2024. Strengthening Jackup Segment: Valaris' jackup business enhances stability of cash flows. Jackup day rates are not as volatile as those for floating rigs, and global jackup utilization fell less dramatically than floater utilization in 2017. The higher resilience of the jackup market is underpinned by shorter payback for shallower offshore upstream projects. Fitch expects the share of jackups in overall EBITDA to decline in 2024 as the company's floaters move away from lower legacy day rates. The North Sea harsh environment jackup market previously suffered from muted day rates but improved in 2024, which should help grow jackup EBITDA after 2024. Valaris also benefits from the stability of its other businesses, including bareboat charters to its joint venture (JV) with the Saudi Arabian Oil Company (Saudi Aramco; A+/Stable) and rig-management services. No Dividends, Growing Buybacks: Fitch does not project any dividends to be paid by Valaris in the medium term. Fitch assumes that Valaris will spend an average of $150 million per annum on buybacks in 2024-2028 based on Fitch-projected positive FCF that Fitch expects to be mostly distributed to shareholders. Fitch does not expect Valaris to pay any significant dividends until its key markets recover sustainably. Major Player in Offshore Drilling: Valaris owns 18 floating rigs (11 drillships and five semisubmersible rigs) and 35 jackups. The offshore drilling fleet is the largest globally by number of rigs. Valaris operates in all large offshore oil and gas basins, such as Brazil, the Gulf of Mexico, the Middle East, West Africa, the North Sea, Southeast Asia and Australia. JV with Saudi Aramco: Valaris has a 50% stake in an equity method-accounted JV with Saudi Aramco called Saudi Aramco Rowan Offshore Drilling Company (ARO). ARO is an offshore drilling company with contracts with Saudi Aramco. Fitch does not forecast any dividends from the JV. Fitch expects the company to fund capex through FCF generation and standalone debt without any cash calls from the partners. In July 2024, ARO received suspension notice for two jackups from Saudi Aramco, which does not have a material effect on Valaris' backlog but lowers ARO's growth trajectory. Valaris has $353 million notes receivable from ARO due in 2027 and 2028. Fitch does not forecast the notes' principal repayment in 2024-2028 but expects the company to receive annual interest. Derivation Summary Valaris' peers include Noble Corporation plc (BB-/Stable) and Seadrill Limited (B+/Stable). Valaris still generates lower 2024 margins due to its contract structure and higher concentration of jackups than for peers, although its gap with Noble and Seadrill has narrowed recently. Valaris' revenue size is broadly comparable with Noble's and larger than Seadrill's. Fitch expects Valaris' EBITDA to exceed that of Seadrill in 2024 and remain higher than Seadrill's in the medium term, but remain lower than Noble's EBITDA. If Noble successfully completes the acquisition of Diamond Offshore Drilling, its scale will significantly exceed that of Valaris. Valaris has more gross debt and higher midcycle leverage than peers. This makes it more vulnerable to a market downturn compared with them. Valaris had healthy liquidity at June 30, 2024. Key Assumptions Fitch's Key Assumptions Within Its Rating Case for the Issuer Include - Brent oil price of $80/bbl in 2024, $70/bbl in 2025, $65/bbl in 2026-2027 and $60/bbl thereafter; - 32% revenue growth in 2024 and 10% in 2025, followed by a revenue decline in 2025-2028; - EBITDA margin growing to 21% in 2024 and 26% in 2025, with a decrease to 20% by 2028; - Capex at $460 million in 2024, $250 million in 2025 and falling toward $150 million in 2026-2028; - No dividends; - FCF mostly distributed as share buybacks. Recovery Analysis The recovery analysis assumes Valaris would be reorganized as a going concern (GC) in bankruptcy rather than liquidated. Fitch assumed a 10% administrative claim. Going Concern Approach Valaris' GC EBITDA estimate reflects Fitch's view of sustainable, post-reorganization EBITDA, upon which the agency bases the enterprise valuation. The GC EBITDA assumption for commodity price-sensitive issuers at a cyclical peak reflects the industry's move from top of the cycle commodity prices to midcycle conditions and intensifying competitive dynamics. The GC EBITDA assumption of $175 million equals EBITDA estimates for the midpoint between a distress year and near-term EBITDA expectations. This represents an emergence from a prolonged commodity price decline. Fitch increased GC EBITDA to $175 from $155 to million since the last review as Valaris has improved its profitability from very low levels due to improving market fundamentals. Previously, there was more uncertainty about the company's potential profitability. Fitch's stress case assumptions for Brent oil prices are $65/bbl in 2024, $35/bbl in 2025, $45/bbl in 2026 and $48/bbl for the long term. These prices could lead to a marked difference in the company's cash flow generation given the impact a period of prolonged oil prices could have for day rates and rig utilization. The GC EBITDA assumption reflects a loss of customers and lower margins than the near-term forecast, as exploration and production companies cut costs. The EBITDA assumption also incorporates weak offshore drilling market fundamentals and Valaris' charters to Aramco, as well as overall high rig supply but improving demand. The assumption reflects the material decrease in the company's liabilities and the material writedown in the value of its property, plant and equipment (PP&E) following the company's debt restructuring. Valaris eliminated $7.1 billion of pre-petition debt from its balance sheet after exiting bankruptcy procedures in 2021. During restructuring, the company also wrote down the book value of its PP&E to approximately $900 million. An enterprise value multiple of 5.0x EBITDA is applied to GC EBITDA to calculate a post-reorganization enterprise value. The choice of this multiple considered the following factors: The historical bankruptcy case study exit multiples for peer energy oilfield service companies have a wide range, with a median of 6.5x. The oilfield service subsector ranges from 2.2x to 17.0x due to the more volatile nature of EBITDA swings in a downturn. Fitch used a multiple of 5.0x to estimate the enterprise value of Valaris due to concerns of a downturn with a longer duration, a high exposure to offshore drilling rigs that may see meaningful volatility in demand and continued capital investment to reactive rigs. Fitch also assumed a $50 million value from its equity stake in ARO and notes payable to Valaris by ARO. Liquidation Approach The liquidation estimate reflects Fitch's view of the value of balance sheet assets that can be realized in a sale or liquidation process conducted during a bankruptcy or insolvency proceeding and distributed to creditors. Fitch assigns standard discounts to the liquidation value of the company's cash, accounts receivable and inventory. Fitch is using a 20% liquidation value to the company's book value given the deep discounts imbedded in offshore drilling assets valuations during a downturn. The $375 million first-lien secured RCF is assumed to be fully drawn upon default and is the most senior in the waterfall. The allocation of value in the liability waterfall results in recovery corresponding to a recovery rating of 'RR4' for the second-lien secured debt of $1.1 billion. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Sustainably stronger offshore drilling market fundamentals, including high day rates, longer contracts, and growing backlog and rig utilization; - A track record of conservative financial policy that keeps gross debt in check; - Midcycle EBITDA leverage below 2.0x. Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Deteriorating market fundamentals, such as decreasing day rates and offshore rig utilization; - A significant increase in gross debt; - Weakening liquidity; - Midcycle EBITDA leverage above 3.0x. Liquidity and Debt Structure Sufficient Liquidity: Valaris' outstanding debt consists only of second lien notes due 2030. The company had $398 million of unrestricted cash at June 30, 2024 and the $375 million undrawn long-term committed RCF expiring in 2028. Fitch projects that Valaris will generate negative FCF in 2024 that can be covered by cash balance. FCF is expected to turn positive in 2025. Valaris should have sufficient liquidity if it maintains a disciplined approach to discretionary cash spending. Issuer Profile Valaris provides offshore drilling services to oil and gas companies across the globe. It owns the world's largest fleet of offshore rigs, including jackups and floaters. Valaris is incorporated in Bermuda and headquartered in the U.S. ESG Considerations Valaris has an ESG Relevance Score of '4' for Waste & Hazardous Materials Management; Ecological Impacts due to the risk that a possible offshore oil spill may affect the drilling company. This has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Valaris Limited LT IDR B+ Affirmed B+ Senior Secured 2nd Lien LT B+ Affirmed RR4 B+ Valaris Finance Company LLC Senior Secured 2nd Lien LT B+ Affirmed RR4 B+ =========== B R A Z I L =========== COMPANHIA SIDERURGICA: Fitch Alters Outlook on 'BB' IDR to Stable ----------------------------------------------------------------- Fitch Ratings has affirmed Companhia Siderurgica Nacional's (CSN) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB' and National Long-Term ratings at 'AAA(bra)'. Fitch has also affirmed CSN Inova Ventures' and CSN Resources S.A.'s senior unsecured notes at 'BB' and CSN Mineracao S.A. National Long-Term ratings and senior unsecured notes at 'AAA(bra)'. The Rating Outlooks for the IDRs have been revised to Stable from Positive, and the Outlook for the National Scale Ratings is Stable. The Rating Recovery (RR4) for the unsecured notes has been removed. The Stable Outlook reflects Fitch's expectation of a more challenging deleveraging path due to decreased FCF generation from the weak steel environment and less use of alternative measures to enhance its capital structure. CSN's ratings reflect its scale and the cost competitiveness of its vertically integrated iron ore and flat steel operations in Brazil, and its growing presence in cement and energy sectors. Challenges include effectively reducing gross and net debt basis while optimizing shareholder returns. Key Rating Drivers Difficult Steel Environment: High imports continue to threaten prices in Brazil, despite slowly improving domestic demand and a 6% increase in apparent steel consumption in 1H24. Chinese steel imports rose 29% in the first half of 2024 compared to the same period last year, following a 58% increase in 2023. Import penetration in flat steel reached 18.5% in 1H24, staying high compared to 20.7% in 2023 and an average of 12.7% during 2019-2022. Brazil imposed a 25% increase in tariffs and quotas in 2Q24, which has not translated into solid price improvements. Fitch expects steel margins to remain in the single digits. A potential decrease in Chinese exports anticipated in 2H24 could ease these difficulties. Fitch expects CSN's EBITDA/ton of USD73.1 in 2024, lower than in 2023. Potential Cement Acquisition: CSN signed an exclusivity deal until Aug. 12, 2024 to engage InterCement Participacoes S.A. (InterCement - 'RD` IDR) in talks about a potential transaction. The transaction structure has not yet been finalized, but CSN has has stated its intention for the transaction to be leverage neutral. In that scenario, Fitch would expect debt haircut as part of InterCement's debt restructuring. Despite the acquisition's potential diversification benefits, CSN's planned deleveraging could be delayed by the increased debt burden, difficulties in unlocking synergies and scant access to alternative financing options. Fitch does not include this transaction in its base case. Significant Iron Ore Activity: After a strong start in 1Q24, prices are likely to fall due to decreased steel production and economic activity in China and more consistent supply from Brazil and Australia. Fitch projects prices to decrease in 2024 and 2025 for a yearly USD105/ton and USD90/ton average and to follow a multiyear downtrend through 2028 to USD70/ton. Fitch forecasts that iron ore production will decrease from 42.6 million tons in 2023 to 41.5 million in 2024 and remain flat in 2025. These volumes are more than 20% higher than in 2022 due to ongoing construction and ramping up process of additional iron ore capacity. Underpinned by low costs and increasing size, iron ore mining is likely to remain the largest contributor to EBITDA in the rating horizon. Capital Allocation to Drive FCF Trend: CSN's track record of opportunistic acquisitions could affect capital allocation in the short term, and its decisions on investment plans and dividend distribution will be key for FCF trends. Fitch projects CSN will generate BRL10.6 billion of EBITDA and BRL2.5 billion of FCF during 2024 after spending BRL5 billion on capex and BRL0.9 billion in dividends. EBITDA is expected to rise to BRL11.5 billion in 2025 as steel results normalize and cement numbers grow. Diversifying Business Position: CSN's business position as a low-cost integrated steelmaker remains solid, underpinned by captive access to raw materials (iron ore/energy), a high value-added portfolio of products and a significant share of the flat steel industry in Brazil. The company has a diversified portfolio of assets with operations in mining, steel, energy and cement as well as interests in railways and port operations. Fitch forecasts that the mining and steel making businesses' contribution to EBITDA generation will decrease to 73% in 2024 and 71% in 2025 from 79% in 2023 as the participation of the cement and energy divisions grows and diversifies CSN's cash flow generation. Leverage Burden: Fitch forecasts CSN will end 2024 with gross and net debt/EBITDA ratios of 5.0x and 3.3x, which compares with 4.4x and 3.2x during 2023 and an average of 3.0x and 2.1x during the last three years. These ratios are should improve slightly to about 4.2x for gross and 2.9x for net leverage over the rating horizon. Lower iron ore prices will be supplemented by new mining production from the Itabirito plant projects, along with stronger results from CSN's steel, cement and energy divisions. Should the InterCement transaction take place, Fitch anticipates that higher gross debt would be mitigated by increased EBITDA contribution. However, implementation delays would be highly likely. Consolidated Approach: Fitch applies its Parent and Subsidiary Rating Linkage criteria to CSN Cimentos, CSN Mineracao and their parent, CSN. The parent is stronger than the subsidiary. Fitch assesses legal incentives for support are assessed as medium, as the presence of cross acceleration clauses at CSN Cimentos and CSN Mineracao mitigate the absence of corporate guarantees from CSN. Fitch views strategic incentives for support as high. The integration into iron ore bolsters CSN's steel business cost advantage, and Fitch expects the cement business contribution to CSN's EBITDA to increase to 11% in 2024 from 8% in 2023. CSN Cimentos is Brazil's third-largest cement producer. The integration of acquired cement assets, such as the LafargeHolcim facilities, and any likely corporate restructuring of the cement operations are already incorporated into the analysis. Synergies exist between the iron ore, steel and cement businesses, and management and strategies are fully integrated, with both companies closely sharing reputational risks. Derivation Summary CSN's more integrated business profile and diversified portfolio of steel assets compares well with Usinas Siderurgicas de Minas Gerais S.A.'s (BB/Stable). Both issuers are highly exposed to the local steel industry in Brazil. CSN and Usiminas show weaker business positions than Brazilian steel producer Gerdau S.A (BBB/Stable) which has a diversified footprint of operations with important operating cash flow generated from its assets abroad, mainly in the U.S., and flexible business model (mini-mills) that allow it to better withstand economic and commodities cycles. U.S. Steel (BB/Positive Watch) and Cleveland-Cliffs Inc (BB-/Stable) are also comparable to CSN in their EBITDA size and primary blast furnace production, but U.S. Steel and Cleveland-Cliffs have a more diversified geographical footprint in the U.S. with additional electric arc furnace facilities, a larger steel making output and higher value-added product portfolio. Nonetheless, CSN has more diversified business lines. Among the three Brazilian business steel producers, Gerdau has consistently maintained the strongest balance sheet, the most manageable debt amortization schedule, and has consistently made efforts to improve its capital structure through assets sales or equity issuances. Gross debt levels at CSN remain high relative to U.S. Steel, Cleveland-Cliffs, Gerdau and Usiminas. CSN also has a more challenging debt amortization schedule than either U.S. Steel, Cleveland-Cliffs, Usiminas or Gerdau. Key Assumptions - Benchmark iron ore prices average USD105/ton in 2024, USD90/ton in 2025 and USD85/ton in 2026; - Iron ore volumes decrease 3% to 41.5 million tons in 2024, remain flat in 2025 and grow 4% in 2026; - Iron ore EBITDA/ton at USD30 in 2024, USD24 in 2025 and USD25 in 2026; - Steel volumes grow 4% to 4.3 million tons in 2024 and stay flat in 2025 and 2026; - Steel EBITDA/ton at USD73 in 2024, USD141 in 2025 and USD197 in 2026; - Cement volumes grow 2% to 13.0 million tons in 2024 and grow 10% in 2025 and 5% in 2026; - Cement EBITDA/ton at BRL92 in 2024, BRL110 in 2025 and BRL115 in 2026; - Capex reaches BRL5 billion in 2024, BRL6 billion in 2025 and in 2026; - An exchange rate of BRL5.13/USD1.00 at YE 2024, BRL5.20 in 2025 and BRL5.20 in 2026. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Additional asset sales in order to support gross debt reduction; - Improved debt amortization schedule; - Sustained adjusted total debt/EBITDA ratio below 3.5x and/or adjusted net debt/EBITDA ratio below 2.5x. Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Large debt funded acquisitions; - Increased pressure from main shareholders on dividend payments; - Sustained adjusted total debt/EBITDA ratio above 4.5x and/or adjusted net debt/EBITDA ratio above 3.5x; - Adverse regulatory changes in Brazil's mining industry. Liquidity and Debt Structure Continued Refinancing: CSN had BRL53.1 billion (USD10.6 billion) of Fitch adjusted total debt as of March 31, 2024. Fitch's debt figure includes BRL6.7 billion of advances received from Glencore for a 33 million tons iron ore supply contract and excludes lease related debt from its adjustments. Bonds represent 27% of the Fitch adjusted debt total and local debentures amount to 20%, while banks account for 40% of debt and the Glencore advance represents about 13%. CSN has a track record of keeping robust cash balances but remains challenged by optimizing exposure risks to local banks and capital markets. Fitch estimates that CSN has about BRL10 billion to be refinanced before 2026. Including the Glencore debt and other unearned revenue, approximately 65% of the company's debt is denominated in U.S. dollars or euros. CSN has an annual average of BRL5.3 billion of debt due in 2024-2026. About 70% of these maturities are comprised of bank debt. Readily available cash and marketable securities reached BRL13.3 billion (USD2.7 billion) as of March 31, 2024. CSN holds approximately 55 million Usiminas preferred shares and 107 million ordinary shares not included in the readily available cash measure because Fitch excludes equity holdings from marketable securities. Issuer Profile CSN is an integrated high value-added steelmaker with a large market share in the Brazilian flat steels market and a presence in Germany, the U.S. and Portugal. CSN is the second largest iron ore exporter of Brazil. ESG Considerations Companhia Siderurgica Nacional (CSN) has an ESG Relevance Score of '4' for Governance Structure due to key person risk and limited board independence through a single powerful shareholder, which has a negative impact on the credit profile and is relevant to the rating[s] in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Companhia Siderurgica Nacional (CSN) LT IDR BB Affirmed BB LC LT IDR BB Affirmed BB Natl LT AAA(bra)Affirmed AAA(bra) senior unsecured Natl LT AAA(bra)Affirmed AAA(bra) CSN Mineracao S.A. Natl LT AAA(bra)Affirmed AAA(bra) senior unsecured Natl LT AAA(bra)Affirmed AAA(bra) CSN Inova Ventures senior unsecured LT BB Affirmed BB CSN Resources S.A. senior unsecured LT BB Affirmed BB PETROLEO BRASILEIRO: Incurs $470M Net Loss in Q2 2024 ----------------------------------------------------- finance.yahoo.com reports that Brazilian state-run oil giant Petroleo Brasileiro S.A. (Petrobras) recorded a net loss of 2.6 billion reais ($470 million) for the second quarter (Q2) of 2024. It is the first time the oil giant has reported a net loss since Q3 2020, according to finance.yahoo.com. The company also announced lower-than-expected results and a reduction in investment estimates, the report notes. The Q2 results show a significant decrease compared with the corresponding period in 2023, where net profit reached 28.7 billion reais, the report says. The loss also represents a 111% drop from Q1 2024 when Petrobras achieved a net profit of 23.7 billion reais, the report discloses. The company's board has approved the payment of interim and intermediate dividends and equity interest totaling 13.57 billion reais, equivalent to 1.05320017 reais per outstanding common and preferred share, the report says. In Q2 2024, a loss of $344 million was incurred due to non-recurring items, notably the consequences of implementing the tax transaction and the losses stemming from the 2023 labour agreement, the report notes. Fernando Melgarejo, chief financial and investor relations officer, said: "Petrobras maintained robust cash generation in the second quarter of 2024, which allowed it to make $3bn in investments, comply with our shareholder remuneration policy and pay dividends," the report relays. In Q2 2024, Petrobras recorded an adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $9.6 billion, marking a 20.6% decrease from $12.1bn the previous quarter, the report discloses. This decline was primarily attributed to reduced margins on diesel and gasoline, higher imports and one-time expenses, the report says. However, the company said that increased export earnings, largely driven by the strengthening of Brent, somewhat mitigated these adverse effects, the report notes. "The main events were the exchange rate variation for the period - an effect between companies in the Petrobras System that has no cash effect or even equity effect - and the impact of adhering to the tax transaction - a decision deemed positive by the market because it ended billion-dollar disputes that brought great uncertainty to the company's cash flow. Without these events, net income for Q2 2024 would have reached $5.4bn, and EBITDA would have been $12bn, in line with the previous quarter," Melgarejo added, the report says. In the first half (H1) of 2024, total capital expenditure (capex) amounted to $6.4bn, 12.5% higher than in H1 2023, the report relays. The projected capex for 2024 has been revised $13.5 billion-14.5 billion, the report notes. This level of investment will not impact oil and gas production and represents an increase of 7-15% compared with the total capex in 2023, the report says. The company said that revenues from the sale of oil products within the country decreased by 2% compared with Q1 2024, the report relays. This decline was mainly due to lower prices, although it was somewhat offset by an increase in the quantity of products sold, especially diesel, the report discloses. The increase in sales was driven by seasonal demand and a boost in economic activity, the report adds. About Petrobras Petroleo Brasileiro S.A. or Petrobras (in English, BrazilianPetroleum Corporation - Petrobras) is a semi-public Brazilianmultinational corporation in the petroleum industry headquarteredin Rio de Janeiro, Brazil. Petrobras control significant oil andenergy assets in 16 countries in Africa, the Americas, Europe andAsia. But, Brazil represents majority of its production. The Brazilian government directly owns 54% of Petrobras' commonshares with voting rights, while the Brazilian Development Bankand Brazil's Sovereign Wealth Fund (Fundo Soberano) each control5%, bringing the State's direct and indirect ownership to 64%. A corruption scandal was uncovered in 2014 that involvedPetrobras. The scandal related to money laundering that involved Petrobrasexecutives. The executives were alleged to get received kickbacksfrom overpriced contracts, to the tune of about $3 billion intotal. Over a thousand warrants were issued against politiciansand businessmen in relation to the scandal. In 2016, MarceloOdebrecht, CEO of Odebrecht, was sentenced to 19 years in prisonafter being convicted of paying more than $30 million in bribes toPetrobras executives. In January 2018, Petrobras agreed to pay $2.95 billion to settle aU.S. class action corruption lawsuit. In September 2018,Petrobras agreed to pay $853.2 million to settle with Brazilian and U.S. authorities. As reported in the Troubled Company Reporter-Latin America on June 7, 2024, Moody's Ratings affirmed the Ba1 corporate family rating of Petrobras. At the same time, Moody's affirmed Petrobras' ba1 baseline credit assessment (BCA) and the Ba1 rating of the backed unsecured debt issuances of Petrobras Global Finance B.V. and Petrobras International Finance Company. Moody's also affirmed the (P)Ba2 subordinate shelf ratings of Petrobras and Petrobras International Finance Company, the (P)Ba1 senior unsecured shelf ratings of Petrobras and Petrobras International Finance Company, the (P)B1 Pref. Shelf rating for Petrobras, and the (P)Ba1 and (P)Baa3 senior secured shelf ratings under Petrobras and Petrobras International Finance Company respectively. The outlook for all issuers is maintained stable. In January 2024, S&P Global Ratings assigned a new management & governance (M&G) assessment of moderately negative to Petrobras. At the same time, S&P affirmed its issuer credit ratings on Petrobras at 'BB' on the global scale and 'brAAA' on the Brazilian national scale. S&P also affirmed its issue-level ratings on the company, and removed all its ratings from under criteria observation (UCO). In July 2022, Fitch Ratings affirmed Petrobras' BB- Long-Term Issuer Default Rating. In addition, Fitch has revised the RatingOutlook to Stable from Negative following a similar revision toBrazil's Sovereign Rating Outlook. Also in July 2022, Egan-JonesRatings Company upgraded the foreign currency and local currencysenior unsecured ratings on debt issued by Petrobras to BB+ fromBB. =========================== C A Y M A N I S L A N D S =========================== ZIRAAT KATILIM: Fitch Rates USD1.5B Trust Cert. Programme 'B' -------------------------------------------------------------- Fitch Ratings has assigned Ziraat Katilim Bankasi A.S.'s (Ziraat Katilim; B/Positive) USD1.5 billion trust certificate issuance programme, housed under Ziraat Katilim MTN Limited, a long-term rating of 'B' and a short-term rating of 'B'. The programme documentation allows for the issuance of both senior unsecured and subordinated notes, but the programme ratings only apply to the senior unsecured debt class. Ziraat Katilim MTN Limited is the issuer and trustee; it is a special purpose vehicle (SPV) incorporated in the Cayman Islands solely to issue certificates (sukuk) under the programme and enter into the transactions contemplated by the transaction documents. Ziraat Katilim is the obligor, seller and servicing agent. BNY Mellon Corporate Trustee Services Limited is acting as the delegate of the trustee. Fitch understands from Ziraat Katilim that the proceeds will be used for general financing and refinancing requirements, or for any other purpose specified in the applicable pricing supplement. Key Rating Drivers The trust certificate issuance programme's ratings are driven solely by Ziraat Katilim's Long- and Short-Term Issuer Default Ratings (IDRs) of 'B', which are driven by the bank's Shareholder Support Rating (SSR) of 'b', reflecting potential support from its 100% shareholder, Turkiye Cumhuriyeti Ziraat Bankasi Anonim Sirketi (Ziraat; B/Positive). These reflect Fitch's view that default of these senior unsecured obligations would equate to a default by Ziraat Katilim, in accordance with Fitch's rating definitions. The key rating drivers and sensitivities for Ziraat Katilim's ratings are outlined in its rating action commentary dated 15 March 2024 (see Fitch Upgrades 18 Turkish Banks; Places 5 VRs on Rating Watch Positive on Sovereign Upgrade). Fitch has given no consideration to any underlying assets or any collateral provided, as it believes that the trustee's ability to satisfy payments due on the certificates will ultimately depend on Ziraat Katilim satisfying its unsecured payment obligations to the trustee under the transaction documents described in the base offering circular and other supplementary documents. In addition to Ziraat Katilim's propensity to ensure repayment of the certificates, in Fitch's view, Ziraat Katilim would also be required to ensure full and timely repayment of the trustee's obligations due to Ziraat Katilim's various roles and obligations under the transaction structure and documentation, which include - but are not limited to - the features below: - Ziraat Katilim shall ensure sufficient funds are available to meet the periodic distribution amounts payable by the trustee under the certificates of the relevant series on each periodic distribution date. Ziraat Katilim may take certain measures to ensure that there is no shortfall and that the payment of principal and profit are paid in full, and in a timely manner - On any dissolution or obligor event (as defined in the base offering circular), the aggregate amounts of the outstanding face value of the certificates and any due and unpaid periodic distribution amount relating to the certificates shall become immediately due and payable - On any dissolution or default event (as defined in the base offering circular), the aggregate amounts of deferred sale price then outstanding pursuant to the master Murabaha agreement shall become immediately due and payable; and, thereafter, the trustee will have the right under the purchase undertaking to require Ziraat Katilim to purchase all of the trustee's rights, title, interests, benefits and entitlements in, to and under Wakala assets at the relevant exercise price - The outstanding deferred sale price payable by Ziraat Katilim under the master Murabaha agreement and the exercise price payable by Ziraat Katilim under the purchase undertaking together are intended to fund the dissolution distribution amount payable by the trustee under the relevant certificates, which should equal the sum of the outstanding face value of such series; and any accrued but unpaid periodic distribution amounts for such certificates, or such other amount specified in the applicable pricing supplement as being payable on any dissolution date. - The payment obligations of Ziraat Katilim under the service agency agreement, master declaration of trust, purchase undertaking and the master Murabaha agreement will be direct, unsubordinated and unsecured obligations (subject to certain negative pledge provisions) and shall at all times rank at least equally with claims of all other unsecured and unsubordinated creditors of Ziraat Katilim, from time to time outstanding, save those whose claims are preferred solely by any bankruptcy, insolvency, liquidation or other similar laws of general application - The transaction documents also include an obligation on Ziraat Katilim to ensure that at all times the tangibility ratio (aggregate value of tangible assets forming the sukuk portfolio of relevant series/sukuk portfolio value relating to such series) is more than 50%. Failure by Ziraat Katilim to comply with this obligation shall not constitute an obligor event. However, if the tangibility ratio falls below 33% (a tangibility event), this would result in the certificate holders having a put right. The certificates would then be delisted and each certificate holder can exercise a put option to have their holdings redeemed, in whole or in part, at the dissolution distribution amount within 30 days after a tangibility event notice is given. In such an event, there would be implications on the certificates' tradability and the listing of the certificates - Fitch expects Ziraat Katilim to maintain the tangibility ratio at above 50% with support from its extensive asset base - Ziraat Katilim's programme includes negative pledge and cross default provisions, financial reporting obligations, obligor events of default and restrictive covenants - Certain aspects of the transaction will be governed by English law while others are governed by Turkish and Cayman Islands law. Fitch does not express an opinion on whether the relevant transaction documents are enforceable under any applicable law. However, Fitch's rating on the certificates reflects its belief that Ziraat Katilim would stand behind its obligations When assigning ratings to the certificates to be issued, Fitch does not express an opinion on the certificates' compliance with sharia principles. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The programme ratings are sensitive to downgrades of Ziraat Katilim's IDRs. The ratings may also be sensitive to negative changes to the roles and obligations of Ziraat Katilim under the sukuk structure and documentation. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade The programme ratings are sensitive to upgrades of Ziraat Katilim's IDRs. Date of Relevant Committee 05 August 2024 Public Ratings with Credit Linkage to other ratings Ziraat Katilim MTN Limited's ratings are driven by Ziraat Katilim's ratings. ESG CONSIDERATIONS Ziraat Katilim's ESG Relevance Scores of '4' for Governance Structure and Management Strategy are due to government influence over its board's effectiveness and management strategy in the challenging Turkish operating environment, which has a moderately negative impact on the bank's credit profile, and is relevant to the ratings in conjunction with other factors. The ESG Relevance Management Strategy score of '4' also reflects increased regulatory intervention in the Turkish banking sector, which hinders the operational execution of management's strategy, constrains management's ability to determine strategy and price risk and creates an additional operational burden for banks. This has a moderately negative impact on the bank's credit profile and is relevant to the ratings in combination with other factors. Ziraat Katilim's ESG Relevance Governance Structure Score of '4' also takes into account its status as an Islamic bank. Its operations and activities need to comply with sharia principles and rules, which entails additional costs, processes, disclosures, regulations, reporting and sharia audit. This results in a moderately negative impact on the bank's credit profile and is relevant to the rating in combination with other factors. In addition, Islamic banks have an ESG Relevance Score of '3' for Exposure to Social Impacts (above sector guidance for an ESG Relevance Score of '2' for comparable conventional banks), which reflects that Islamic banks have certain sharia limitations embedded in their operations and obligations, although this only has a minimal credit impact on the entities. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating ----------- ------ Ziraat Katilim MTN Limited senior unsecured LT B New Rating senior unsecured ST B New Rating =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Highlights Progress but Urges Reform -------------------------------------------------------- Dominican Today reports that in the last five years, the Dominican economy has done very well, as the reduction in social inequality has doubled. In addition, in the last twenty years, the country has grown by more than 5 percent, which Luis Alberto Rodriguez, former deputy minister of finance in Colombia, defined as miraculous, according to Dominican Today. However, the economist highlights that the Dominican Republic faces the challenge of increasing tax revenues to lower public debt, the report notes. In Rodriguez's opinion, the tax reform should focus on broadening the base of the ITBIS and simplifying and making the simple taxation system more attractive to incorporate more micro and small enterprises, the report notes. He stressed that reforms must be made to maintain or increase income levels to potential public spending and that it is more efficient and transparent and has the resources to pay the debt, the report discloses. He indicated that the country has obvious pending tasks, which the International Monetary Fund (IMF) always highlights in each evaluation visit to comply with Article Four of the agreement, the report says. He highlighted the country's positive approval of a fiscal responsibility law, which allows for a debt anchor, debt expectations, and clear budgetary rules, the report notes. "I think that is going to be very positive. It will make a leap in foreign and local investment, because they will be able to invest and they will be able to borrow with better rates because there is fiscal and economic certainty. They can take long-term risks or carry out projects that require a larger investment," he added. Mr. Rodriguez spoke with HOY journalists about topics such as tax reforms in Latin America, medium-term fiscal frameworks in Latin America and the Caribbean, taxes during and after the pandemic, the international economic situation, and budgetary challenges in the DR, the report notes. Mr. Rodriguez is in the country invited by the Atlantic Council, a think tank in Washington, United States, and the Association of Industries of the Country (AIRD), where he holds dialogue with economic and university actors, the report notes. The economist said that the country's ITBIS collection has room to grow, the report relays. Although almost a third of the collections are collected, nearly half are not. Meanwhile, tax spending, which is not collected due to exemptions, is high and must be reviewed, the report says. He also called for broadening the taxpayer base and for the informal economy, which is half of the market, to be more formalized, the report relays. For this objective, he highlighted the importance of the monotax, a tool that has helped other Latin American countries in this regard, the report discloses. He stressed that a proposal that the government should study is also to expand the simplified tax regime so that more independent entrepreneurs and small companies are integrated, the report notes. 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: Exports in Agriculture Industry Fell by 13.2% in Q1 ------------------------------------------------------------ RJR News reports that exports in the agriculture industry fell by 13.2 per cent in the first quarter of this year. The Statistical Institute of Jamaica (STATIN), said this value of goods in that sector sent overseas amounted to US$18.8 million, according to RJR News. In the similar period ended March 2023, agriculture exports were valued at US$21.6 million, the report relays. STATIN says the performance was driven by a general fall-off in leading agricultural export categories, the report discloses. There was a 15.6 per cent decline in yam exports, the report says. Coffee exports for the first three months of the year fell by 50.6 per cent, compared to the same period in 2023, the report notes. 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: Looks to Leverage Gastronomy Tourism --------------------------------------------- RJR News reports that Jamaica is looking to benefit more from gastronomy based tourism offerings. Director of Tourism Donovan White says more people are traveling globally for food based experiences, according to RJR News. "Eighty per cent of the money spent by travellers around the world is spent on food, and so if people want food, then part of what we must do is to work with the promoters of food and the promoters of events that promote our food to give us more ability to align Jamaica with something that people actually want and want more of," the report notes. He was speaking at the recent launch of the GraceKennedy Food Festival, which takes place later this month, the report discloses. Meanwhile, Mr. White said Jamaica recorded a significant number of visitors for Reggae Sumfest this year, the report discloses. "Some close to 20,000 people came into the country for Reggae Sumfest. More importantly, we estimate that some US$20 million was spent on the ground in Montego Bay for the five nights. Some people don't realize that Sumfest is not just Friday and Saturday. Sumfest starts from the Sunday before and goes till Saturday. And so, those are huge advancements in terms of how the [tourism] product is meshing well with events," he noted, 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. ===================================== T R I N I D A D A N D T O B A G O ===================================== GUARDIAN MEDIA: Records $2.3 Million Loss in 1H 2024 ---------------------------------------------------- Trinidad Express reports that Chairman of Guardian Media Ltd (GML), Peter Clarke, has said the company has reported a $2.3 million loss for the six-month period ending June 2024, as revealed in its unaudited results released on August 8. Despite cutting the company's loss by half compared to last year's reported $4.9 million loss, the company remains in the red, according to Trinidad Express. Revenues for the period were $25.3 million, an increase of $.7 million over the corresponding period in 2023, the report notes. Year-to-date revenues of $47.7 million are higher by one per cent when compared to the $47.2 million reported for the same period in 2023, the report recalls. The company's print revenues of $23.7 million are lower by eight per cent, while multimedia revenues of $23.9 million are higher by 12 per cent, the report notes. Clarke described the growth in multimedia revenues as "encouraging" and attributed it to increased commercial interests in the company's outside broadcasts and events, local productions, and the ICC T20 Men's World Cup 2024, held in June, the report discloses. He noted the loss before tax at the six-month interval has decreased by $4.3 million and says management remains focused on driving efficiencies and the continuous reduction of controllable expenses, the report relays. "We remain vigilant in monitoring and adapting to industry developments and consumer trends. We have also taken steps to review and restructure certain segments of our business to adapt to changing market dynamics," Clarke said, the report notes. The statement said based on the overall performance for the half-year under review, directors have not recommended an interim ordinary dividend payment, but six per cent preference shareholders will receive an interim dividend of three per cent, the report says. Clarke ended his statement by thanking shareholders, employees, partners, and customers for their "loyal and unwavering support," the report adds. ================= V E N E Z U E L A ================= VENEZUELA: Faces Judicial Showdown Over Election Results -------------------------------------------------------- Juan Martinez at Rio Times Online reports that Venezuela's Supreme Court escalated tensions by holding Edmundo Gonzalez Urrutia in contempt. He failed to attend a court summons and did not provide evidence after the controversial presidential elections on July 28, according to Rio Times Online. This act is part of an investigation initiated by President Nicolas Maduro to secure his third term, the report notes. The court began an expert examination of the electoral evidence, pointing towards a decisive, unappealable ruling, the report discloses. Caryslia Beatriz Rodriguez, the court's head, stressed the finality of the impending decisions, highlighting the court's authority in electoral matters, the report notes. The country's polarized political landscape is evident as the opposition accuses the judiciary of bias toward the government, the report relays. This claim intensifies as international scrutiny rises, and the opposition reports arrests, hinting at repression, the report discloses. Maduro affirmed his reelection at the Supreme Court, showing strategic confidence amid tensions, the report says. The report notes although the National Electoral Council announced him as the winner with 52% of the votes, the detailed vote count remains unpublished, citing a system hack, casting doubts on the election's validity. Gonzalez Urrutia's refusal to appear in court acts as a defense against a compromised judicial process that he believes threatens his freedom and the Venezuelan people's democratic will, the report says. About Venezuela Venezuela, officially the Bolivarian Republic of Venezuela, is a country on the northern coast of South America, consisting of a continental landmass and a large number of small islands and islets in the Caribbean sea. The capital is the city of Caracas. Hugo Chavez was president to Venezuela from 1999 to 2013. The Chavez presidency was plagued with challenges, which included a 2002 coup d'etat, a 2002 national strike and a 2004 recall referendum. Nicolas Maduro was elected president in 2013 after the death of Chavez. Maduro won a second term at the May 2018 Venezuela elections, but this result has been challenged by countries including Argentina, Chile, Colombia, Brazil, Canada, Germany, France and the United States who deemed it fraudulent and moved to recognize Juan Guaido as president. The presidencies of Chavez and Maduro have challenged Venezuela with a socioeconomic and political crisis. It is marked by hyperinflation, climbing hunger, poverty, disease, crime and death rates, social unrest, corruption and emigration from the country. Moody's has withdrawn 'C' local currency and foreign currency ceilings for Venezuela in September 2022. Standard & Poors has also withdrawn its 'SD/D' foreign currency sovereign credit ratings and 'CCC-/C' local currency ratings on Venezuela in September 2021 due to lack of sufficient information. Fitch withdrew its own 'RD/C' Issuer Default Ratings on Venezuela in June 2019 due to the imposition of U.S. sanctions on the country's government. ********* 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 publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *