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       T R O U B L E D   C O M P A N Y   R E P O R T E R

                 L A T I N   A M E R I C A

          Friday, August 30, 2024, Vol. 25, No. 175

                           Headlines



A R G E N T I N A

ARGENTINA: Milei Gov't. to Veto Bill Increasing Pensions


C O L O M B I A

GRAN TIERRA: To Acquire i3 Energy for GBP174.1MM


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Financial Sector Shows Strong Solvency


G R E N A D A

GRENADA: PM Discloses Trade Mission to Guyana to Strengthen Ties


J A M A I C A

JAMAICA: BOJ Projects Lower Economic Growth for July to Sept 2024


P U E R T O   R I C O

LUNA DAIRY: Hires Hilda Pino Gonzalez as Realtor
NEW FORTRESS: Moody's Affirms 'B1' CFR & Alters Outlook to Neg.

                           - - - - -


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A R G E N T I N A
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ARGENTINA: Milei Gov't. to Veto Bill Increasing Pensions
--------------------------------------------------------
Buenos Aires Times reports President Javier Milei's government has
confirmed that the head of state will veto a Senate bill to boost
pensions by 8.1 percent, claiming that that lawmakers who voted for
it are only trying to "destroy" his economic program.

"The President is committed with Argentines to maintain the fiscal
surplus at any cost and he will do so," stated Milei's
administration in a press release published on social media,
according to Buenos Aires Times.

"Congress, in an act of demagogical populism, approved an
irresponsible, illegal and unconstitutional bill which establishes
exorbitant expenses without its proper budgetary item, which
necessarily implies for the government to once again fall into the
old practice of printing money, increasing taxes of indebtedness,
which are the same prescriptions that have led us to failure over
the last 100 years," it read, the report notes.

The bill establishes a monthly update based on the latest Consumer
Price Index (CPI) data. In addition, it adds an extra compensation
of 8.1 percent, since the government granted 12.5 percent
previously, which does not cover the 20.6-percent inflation in
January, the report discloses.

In order to prevent the update of the basic food basket from being
out of synch, they chose to push a mínimum of 1.09 percent in that
direction, the report relays.

The President's Office stressed that "this law entails an
additional expense of 1.2 percent of the GDP, or 25 percent of the
GDP in dynamic terms, forcing the State into debt which will have
to be paid in the future by Argentine youths who, thanks to
measures such as this one, today are mostly poor," the report
relays.

"While they accuse this government of liquefying pensioners,
pensions have risen by 5 percent in real terms since January while
we reduced expenditure and destroyed inflation", it indicated, the
report says.

It further classified the bill as "a moral con, an act of populist
demagogy and fiscal irresponsibility," the report relays.

                           Macri Meeting

Former president Mauricio Macri made his support to President
Javier Milei's decision to veto the pension reform voted by the
Senate public. "For the welfare of our pensioners and their
grandchildren, I support President Milei's veto," he posted on X,
the report discloses.

The post marks consistency with their meeting in Olivos, the same
day the PRO joined the opposition parliamentary offensive against
the Emergency Decree which allocated funds reserved for the SIDE
Intelligence Secretariat, the report relates.

He aimed at those who votes for the reform. "Most of the senators
who now express their concern over pensioners' income are the same
ones who vehemently objected to the closing and sale of
deficit-ridden state companies full of corruption", he held, the
report notes.

In addition, amid a university conflict over financing, which led
to forceful measures, he said "it is worth remembering that those
very senators approved the indiscriminate opening of public
universities, a source of squander, and fronts for patronage and
phenomenal corruption," the report discloses.

He concluded the post thus: "They were the ones who approved the
deficit which impoverished Argentines. The need for a fiscal
balance is no longer disputable," the report relays.

After the Senate approved by over two thirds the bill to update
pensions by 8.1 percent in addition to a monthly update pegged to
the CPI, President Javier Milei informed that he would first use
his power of veto to dismiss it, the report notes.

"The sole purpose of the bill approved by Congress is to destroy
the government's economic programme", stated a press release from
the President's Office account near midnight, the report
discloses.

Mauricio Macri's post in support of the veto of the new pension
formula by Javier Milei comes as a way to cool down the public
tension of their relationship after PRO opposed Emergency Decree
656/2024 which allocated 100 million pesos of reserved funds to the
SIDE State Intelligence Secretariat, the report says.

Nevertheless, the new post comes in the context of an urgent
meeting conducted at the Olivos Residence, hours after the ruling
party received the legislative setback after the rejection of the
Decree. They had a one-on-one meeting there and reaffirmed their
relationship remaining on "good terms," the report discloses.

Everything seems to suggest that it was a manoeuvre orchestrated
from Casa Rosada to resume approaches to Macrism, an alliance not
yet consolidated due to the former chief executive's differences
with some of Milei's closest collaborators, such as Santiago
Caputo, Karina Milei and even Patricia Bullrich, the report
relates.

"The relationship is still the same, on good terms", sources
consulted by Noticias Argentinas stated about the meeting, who thus
sought to clear the versions of unrest between them after the PRO
deputies' "switch", when they did not support the delivery of funds
to the SIDE's new structure, 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 Aug. 8, 2024, affirmed its 'CCC/C' foreign
and local currency sovereign credit ratings on Argentina. S&P also
affirmed its 'raB+' national scale rating on the country. The
outlook on the long-term ratings remains stable. S&P's 'CCC'
transfer and convertibility assessment for Argentina remains
unchanged.

S&P said the stable outlook on the long-term ratings balances the
risks posed by pronounced economic imbalances and other
uncertainties with recent progress in making fiscal adjustments,
reducing inflation, and undertaking structural reforms to address
long-standing microeconomic weaknesses that have contributed to
poor economic performance for many years.s that it
would likely consider to be distressed.

Fitch Ratings upgraded on June 13, 2023, Argentina's Long-Term
Foreign Currency (FC) Issuer Default Rating (IDR) to 'CC' from
'C'and affirmed the Long-Term Local Currency (LC) IDR at 'CCC-'.
Fitch typically does not assign Outlooks to sovereigns with a
rating of 'CCC+' or below.

The upgrade of the FC IDR reflects that Fitch no longer deems a
default-like process to have begun, as the authorities have not
signaled a clear intention to follow through with an intra-public
debt swap announced in March. The new 'CC' rating signals a
default
event of some sort appears probable in the coming years,
regardless
of the outcome of upcoming elections. The affirmation of the LC
IDR
at 'CCC-' follows the peso debt swap in June that Fitch did not
deem to be a "distressed debt exchange" (DDE).

Moody's Investors Service, in September 2022, affirmed Argentina's
Ca foreign-currency and local-currency long-term issuer and senior
unsecured ratings.  The outlook remains stable.  The decision to
affirm the Ca ratings balances Argentina's limited market access,
weak governance, and history of recurrent debt restructurings with
recent efforts to marshal fiscal and monetary measures to start
addressing underlying macroeconomic imbalances in the context of
the IMF program that was approved in 2022, according to Moody's.

DBRS, Inc. confirmed Argentina's Long-Term Foreign Currency Issuer
Rating at CCC and downgraded its Long-Term Local Currency Issuer
Rating to CCC from CCC (high) on March 3, 2023.



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C O L O M B I A
===============

GRAN TIERRA: To Acquire i3 Energy for GBP174.1MM
------------------------------------------------
Rocky Teodoro at rigzone.com reports that Gran Tierra Energy, Inc.
is acquiring i3 Energy plc for an implied value of approximately
$225.4 million (GBP 174.1 million).

Gran Tierra said the acquisition will create "an independent energy
company of scale in the Americas with significant production,
reserves, cash flows and development optionality," according to
rigzone.com.

i3 Energy is an independent oil and gas company with a diverse,
full-cycle portfolio of assets in the Western Canadian Sedimentary
Basin (WCSB) and UK North Sea (UKN), the report notes.  Its
registered office is in Eastleigh, United Kingdom, and it has an
office located in Calgary in Canada, where the majority of its
employees are based and where its operational plans are formulated
and executed, the report relays.

i3 Energy's Canadian acreage spans four key regions in some of the
WCSB's most economic play types, including Central Alberta,
Simonette, Wapiti and Clearwater, the report discloses.  The assets
are 76 percent operated with production from approximately 850 net
long-life, low-risk and low-decline wells, spanning approximately
600,000 net acres, the report relays.  These four core areas
combined delivered 18,271 barrels of oil equivalent of production
(boepd) in the second quarter, the report notes.

i3 Energy has announced 2024 working interest production of 18,000
to 19,000 boepd from its Canadian assets with exit rate guidance of
20,250 to 21,250 boepd, while Gran Tierra has announced 2024
production guidance of 32,000 to 35,000 barrels of oil per day,
according to the release, the report discloses.

Further, i3 Energy has over 250 net booked drilling locations (374
gross booked drilling locations) associated with 2P reserves which,
coupled with Gran Tierra's substantial booked reserves, recent
exploration discoveries and significant prospective acreage across
Colombia and Ecuador, provides development and exploration upside
potential for shareholders, Gran Tierra noted, the report relays.

Under the terms of the acquisition, each i3 Energy shareholder will
be entitled to receive one new Gran Tierra Share for every 207 i3
Energy Shares held and 10.43 pence cash per i3 Energy Share, the
report discloses.  In addition, each i3 Energy Shareholder will be
entitled to receive a cash dividend of 0.2565 pence per i3 Energy
Share in lieu of the ordinary dividend in respect of the
three-month period ending September 30, 2024, the report says.  

Upon completion of the acquisition, i3 Energy shareholders will own
up to 16.5 percent of Gran Tierra. Gran Tierra will transfer the
entire issued share capital of i3 Energy to its wholly owned,
indirect subsidiary, Gran Tierra EIH. Gran Tierra EIH is the
holding entity for Gran Tierra's Colombian assets, the report
relays.

Upon completion, i3 Energy shares will be cancelled from trading on
the AIM market of the London Stock Exchange and delisted from the
TSX, Gran Tierra said, the report says.

Over the last five years, Gran Tierra said it has "looked to
diversify into specific oil and gas basins where it is confident it
can create shareholder value focused on operated, high-quality
assets with large resources in place and access to infrastructure,"
with the WCSB being one of the basins on its priority list, the
report discloses.

Gary Guidry, President and CEO of Gran Tierra, said, "We are
thrilled to announce this acquisition, which marks a significant
milestone in diversifying our portfolio while strengthening our
asset base.  By integrating these high-quality, operated assets,
including low-decline production, large resources in place and a
substantial land base, we are not only enhancing our asset base but
also aligning with our long-term strategic vision.  We are excited
to welcome the talented Canadian team to our company, as their
expertise and dedication will be invaluable in driving our
continued success.  This acquisition is a testament to our
commitment to sustainable and profitable growth and delivering
consistent value to our shareholders," the report discloses.

Majid Shafiq, CEO of i3 Energy, said, "We believe that the
acquisition presents an exceptional opportunity for i3 Energy's
Shareholders, the report says.  The acquisition represents the
culmination of a thorough process to realize the maximum value
available for shareholders and offers significant upside potential;
it expedites the realization of fair value, with a cash premium and
incremental upside through continued ownership in the Combined
Group, without necessitating additional capital investment, time,
or operational risk, the report relates.  This business combination
will significantly enhance scale, thereby improving capacity to
drive growth, production, and cash flows for the benefit of all
shareholders and local stakeholders," the report adds.

As reported in the Troubled Company Reporter-Latin America on Aug.
27, 2024,  Fitch Ratings has placed the following ratings for Gran
Tierra Energy Inc. (GTE) and Gran Tierra Energy International
Holdings Ltd (GTE International) on Rating Watch Positive (RWP):

Gran Tierra Energy Inc.:

- Long-Term Foreign and Local Currency Issuer Default Ratings
(IDRs) 'B';

- USD300 million senior unsecured notes due 2027 'B'/'RR4';

- USD588 million senior secured notes due 2029 'B'/'RR4'.

Gran Tierra Energy International Holdings Ltd:

- Long-Term Foreign and Local Currency (IDRs) 'B';

- USD300 million senior unsecured notes due 2025 'B'/'RR4';




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

DOMINICAN REPUBLIC: Financial Sector Shows Strong Solvency
----------------------------------------------------------
Dominican Today reports that the Dominican financial sector is
experiencing significant capital inflows, as indicated by Central
Bank records.  As of March 2024, the regulatory solvency index for
financial intermediation entities reached 17.6%, surpassing the
minimum requirement of 10% set by the Monetary and Financial Law,
according to Dominican Today.

This indicates that the Dominican Republic's financial system holds
surplus assets amounting to RD$174,952 million, the report notes.

Recent stress tests conducted by the Central Bank to assess the
financial strength of the system suggest that these surpluses are
sufficient to maintain regulatory solvency above the 10% threshold,
even under adverse scenarios where the Dominican economy
experiences lower-than-projected real annual growth, the report
relays.

These findings underscore the system's resilience in simulated
economic downturns, the report discloses.

The robust levels of solvency and capitalization within the
financial system are largely attributed to the high quality of its
credit portfolio, which has a delinquency rate of just 1.3% (1.2%
for the multiple banking subsector), the report says.  From June
2023 to June 2024, the system achieved a net growth of
approximately RD$297,000 million, or 17.4%, while maintaining
provisions of RD$2.4 for every RD$1 of overdue loans, the report
notes.

This demonstrates that both productive sectors and households are
consistently meeting their financial obligations, while the
financial system maintains ample reserves to absorb potential
credit losses, the report adds.

                 About Dominican Republic

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

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

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

On December 4, 2023, the TCR-LA reported that Fitch Ratings has
affirmed Dominican Republic's Long-Term Foreign-Currency Issuer
Default Rating (IDR) at 'BB-' and revised the Outlook to Positive
from Stable. Fitch says the Positive Outlook reflects a trend
improvement in governance, and robust growth prospects that should
lead to continued gains in per capita income.  According to Fitch,
growth has decelerated in 2023, but it expects Dominican Republic
to recover to high levels during 2024-2025. External liquidity
metrics have improved in recent years, and foreign currency share
of government debt is on a downward path.

In August 2023, Moody's Investors Service changed the outlook on
the Government of Dominican Republic's ratings to positive from
stable and affirmed the local and foreign-currency long-term issuer
and senior unsecured ratings at Ba3.  Moody's said the key drivers
for the outlook change to positive  are: (i) sustained high growth
rates have enhanced the scale and wealth levels of the economy; and
(ii) a material decline in the government debt burden coupled with
improved fiscal policy effectiveness will support medium-term debt
sustainability.

The affirmation of the Ba3 ratings balances the Dominican
Republic's strong economic growth dynamics and relatively contained
susceptibility to event risks, with a comparatively weaker fiscal
position, reflecting long-standing credit challenges which include:
(i) a shallow revenue base compared to peers, (ii) weak debt
affordability metrics, and (iii) high exposure to foreign currency
borrowing.

S&P Global Ratings, in December 2022, raised its long-term foreign
and local currency sovereign credit ratings on the Dominican
Republic to 'BB' from 'BB-'. The outlook on the long-term ratings
is stable. S&P affirmed its 'B' short-term sovereign credit
ratings. S&P also revised its transfer and convertibility (T&C)
assessment to 'BBB-' from 'BB+'.  The stable outlook reflects S&P's
expectation of continued favorable GDP growth and policy continuity
over the next 12-18 months that will likely stabilize the
government's debt burden.

In February 2023, S&P said its BB ratings reflect the country's
fast-growing and resilient economy.  It also incorporates the
country's historical political and social challenges in passing
structural reforms to contain fiscal deficits, despite recent
improvements in the electricity sector. The ratings are constrained
by relatively high debt, a hefty interest burden, and limited
monetary policy flexibility.




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G R E N A D A
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GRENADA: PM Discloses Trade Mission to Guyana to Strengthen Ties
----------------------------------------------------------------
RJR News reports that Grenada's Prime Minister, Dickon Mitchell,
announced that he is sending a delegation to Guyana in a bid to
improve trading relations between the two CARICOM countries.

Mr Mitchell, who is also the current chairman of the 15-member
regional integration movement, said the specific purpose is to
carry out a business and trade mission in Guyana and to launch
direct flights between both countries, according to RJR News.

He said there is also an opportunity for tourism, the report
notes.




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J A M A I C A
=============

JAMAICA: BOJ Projects Lower Economic Growth for July to Sept 2024
-----------------------------------------------------------------
RJR News reports that The Bank of Jamaica is projecting lower
economic growth for the July to September quarter.

BOJ Governor Richard Byles says this would be continuing a trend of
lower demand, made worse by Hurricane Beryl, according to RJR New.


"Domestic demand conditions are moderating, as reflected in
selected sectors of the economy and in easing wage pressures. Real
GDP for the March 2024 quarter grew by 1.4 per cent, which was
lower than the growth for the December 2023 quarter. And there are
signs that economic growth slowed further in the June 2024
quarter," relates the report.

According to Mr. Byles, when the underlying direction of economic
activity and the impact of the hurricane in July are taken into
account, GDP for the September 2024 quarter is projected to
contract when compared with the September 2023 quarter, RJR News
discloses.

Looking at government spending and the potential impact on
inflation, the BOJ governor said that risk is low, the report says.


"As stated by the government's domestic fiscal policy, they intend
to address the post-hurricane recovery efforts by utilising
existing savings and insurance, and by re-prioritising its
expenditure envelope.   In this context, the MPC is of the view
that fiscal policy will continue to pose no risk to inflation over
the near term. In addition, the lagged impact of the bank's
relatively tight monetary policy position also continues to have an
impact on the economy going forward," he reasoned, 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.



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P U E R T O   R I C O
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LUNA DAIRY: Hires Hilda Pino Gonzalez as Realtor
------------------------------------------------
Luna Dairy, Inc. seeks approval from the U.S. Bankruptcy Court for
the District of Puerto Rico to employ Hilda Pino Gonzalez as
realtor.

The firm will provide these services:

     a. offer the property located at Barrio Florida, Florida,
Puerto Rico, for sale in accordance with established local
practices;

     b. assist Debtors in any negotiations for the sale of the
property;

     c. advertise and offer the property at its own expenses;

     d. perform all duties of a real estate Broker with respect to
the property;

     e. provide the Debtor with information concerning the person
and/or entities to which the property has been offered the
property;

     f. assist debtor in developing and organizing the property
date of the property.

The firm will be paid as follows

     a. 5 percent of the sale amount payable upon the execution of
the corresponding deed of sale.

     b. The broker fully understand that its fees must be approved
by the Court upon a proper application and notice thereof and has
agreed to consult with the Debtor and Debtor's attorney at all
times

Hilda Pino Gonzalez, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.

The firm can be reached at:

      Hilda Pino Gonzalez
      3071 Alejandrino Avenue, Suite 250
      Guaynabo, Puerto Rico 00969 7035
      Telephone: (787) 287-0100
      Facsimile: (787) 287-0105

              About Luna Dairy, Inc.

Luna Dairy Inc. is engaged in the production of cows' milk and
other dairy products and in raising dairy heifer replacements.

The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. P.R. Case No. 23-02837) on September 9,
2023. In the petition signed by Jorge Lucena Betancourt, president,
the Debtor disclosed $4,102,639 in assets and $11,316,130 in
liabilities.

Judge Edward A. Godoy oversees the case.

Carmen D. Conde Torres, Esq., at C. Conde & Associates, represents
the Debtor as legal counsel.




NEW FORTRESS: Moody's Affirms 'B1' CFR & Alters Outlook to Neg.
---------------------------------------------------------------
Moody's Ratings affirmed ratings of New Fortress Energy Inc.'s
(NFE), including its B1 corporate family rating, B1-PD probability
of default rating, and B1 and Ba3 ratings on its senior secured
notes and senior secured term loan B respectively. The SGL-3
Speculative Grade Liquidity rating (SGL) remains unchanged. The
outlook was changed to negative from stable.

RATINGS RATIONALE

The change of the outlook to negative reflects heightened financial
risks pending conclusion of the refinancing effort in 2024 and
successful resolution of the material claim raised by NFE in
relation to the recent amendment of its natural gas supply
contracts in Puerto Rico that should bring significant cash
proceeds. The negative outlook also reflects NFE's heightened
leverage, that will exceed 5x debt/EBITDA level, that Moody's view
as appropriate for the B1 CFR.

The affirmation of B1 CFR recognizes continuous effort to reduce
execution and operating risks, including recent launch of the first
LNG facility (FLNG1) in July 2024, optimization of the asset
footprint in Puerto Rico, as well as some growth in earnings in
Brazil and a number of other Caribbean markets.  In 2024 and 2025,
Moody's expect NFE to generate steady earnings and derive the
majority of projected EBITDA and operating cash flow in Puerto
Rico, including under the amended long term contract to supply LNG
to the emergency power plants recently sold by NFE. In June 2024,
NFE agreed to sell the two power plants and reorganize its power
supply arrangement into a long term supply contract. The company
has submitted $659 million compensation claim in recognition of its
forgone revenue resulting from the reorganization of the emergency
power supply contracts.

NFE is expanding its LNG production capacity and is managing
substantial operational risks inherent to construction and
commissioning of modular LNG facilities.  The company has
successfully started operations at its first FLNG1 facility
offshore Mexico in July 2024 and plans are advancing to construct
the second onshore LNG facility (FLNG2) in Mexico. NFE CAPEX
guidance for 2024 is $1.5 billion, down from $2.8 billion invested
in 2023. With a large part of the capital investment in the
construction of the FLNG2 facility planned for 2024, Moody's expect
capex to decline significantly in 2025, allowing NFE to become free
cash flow positive in 2025 and thereafter. To fund construction of
the FLNG2 facility, NFE recently entered into a $700 million term
loan agreement. The term loan (unrated) is a senior secured
obligation of NFE and benefits from the same guarantee and security
package as its 2025, 2026 and 2029 notes. In addition, the new term
loan is secured by the assets comprising the FLNG2 project.  

The B1 CFR assumes that the company will proactively manage its
refinancing requirements in near term, will turn free cash flow
positive and will extend its debt maturity profile and reduce debt
and leverage through further optimization of its asset footprint.

NFE's financial risks are high given the much higher than expected
financial leverage and refinancing requirements in 2025 and 2026.
NFE's liquidity is sufficient to fund its operations, but the
company needs to execute on its debt reduction and refinancing
plans to maintain adequate liquidity consistent with its SGL-3
rating.

NFE has flexibility to raise capital through sale of some of its
infrastructure assets, and is working to raise cash through the
claim it submitted in relation to the reorganization of emergency
power supply in Puerto Rico. Timing and valuation of such sales and
claims are inherently uncertain. In 2024, NFE sold two generation
facilities in Puerto Rico and its liquefaction and storage facility
in Miami, raising about $465 million. While Moody's expect NFE to
reduce capex and start generating positive free cash flow in 2025,
it won't be sufficient to address its bond maturity in 2025. At
June 30, 2024, NFE reported $133 million in cash and $165 million
in restricted cash balances, and had no availability under its $1
billion senior secured revolver facility.

The company has $875 million and $1.5 billion notes maturing in
2025 and 2026 respectively. The $1 billion revolver facility will
mature in 2026, if the 2025 notes are refinanced, or alternatively
the facility will mature approximately sixty days prior to the
maturity of the September 2025 notes. NFE's $856 million term B
loan facility matures in 2028 and the new $700 million term loan
will mature in 2027. However, both of these term loan maturities
will accelerate to July 2025, or July 2026, in advance of the
existing 2025 or 2026 secured notes maturities if those notes
remain outstanding.  

NFE's senior secured term B loan facility is rated Ba3, one notch
above the CFR and the B1 rating of the senior secured 2025, 2026
and 2029 notes. The Ba3 rating is supported by its first priority
claim on significant additional collateral related to the pledge of
the FLNG1 facility, shared pro rata with the lenders under the
revolver facility, but not with the holders of the existing notes.
The term B loan facility also shares on a pari passu basis the
collateral and guarantees of the other operating subsidiaries, that
support obligations under NFE's existing revolver facility and the
senior secured notes. NFE also maintains a number of secured
facilities raised at the level of operating companies, including
notably facilities guaranteed and secured by its operating and
holding subsidiaries in Brazil, that do not guarantee obligations
under the 2025, 2026 and 2029 notes, the revolver and the new term
B loan facility.

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

The B1 ratings may be downgraded if NFE's liquidity position
weakens as a result of delay in the refinancing, or if its leverage
remains above 5x debt/EBITDA as a result of delays in asset sales
or if it is unsuccessful in its claims related to Puerto Rico.

Moody's may also downgrade the ratings if risks related to the
expansion exceed initial expectations, including an adverse change
in natural gas market conditions, or rising technological,
execution and construction risks resulting in cost overruns,
construction delays or lower returns on capital. Given the
complexity of the capital structure and differing collateral
claims, the ratings on existing debt could be downgraded based on
the issuance of new debt and varying collateral claims.

The B1 CFR could be upgraded if the company is able to reduce debt
and achieve greater simplification in the funding structure, while
building a track-record of steady operating and financial
performance and optimizing its asset footprint, supporting higher
returns on capital employed. The upgrade would require achieving
good liquidity, reducing refinancing risk and demonstrating reduced
reliance on rising debt to support future growth in earnings and
operations through better utilization of the existing assets. The
company increasing the stability of its cash flows through long
term contracts that minimize both price and volume risk would also
support an upgrade.

New Fortress Energy Inc. is a US-listed, high growth energy
infrastructure company with liquefaction, regasification and
distribution natural gas operations in Puerto Rico, Mexico,
Jamaica, Nicaragua and Brazil.

The principal methodology used in these ratings was Midstream
Energy published in February 2022.


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