/raid1/www/Hosts/bankrupt/TCRLA_Public/241002.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, October 2, 2024, Vol. 25, No. 198
Headlines
A R G E N T I N A
ARGENTINA: Economic Activity Increased 1.7% Between June and July
ARGENTINA: Experts Say Mass Consumption Plunged Again in August
ARGENTINA: Scrapped Rent Controls & Now Market is Thriving
GAUCHO GROUP: Expands U.S. Distribution Network With Giannone Wine
B A H A M A S
FTX GROUP: Plaintiffs Lawyers Settle Bitter Feud with Estate
B R A Z I L
BRAZIL: Bank Defends Gradual Start to Interest Rate Hiking Cycle
C O L O M B I A
BANCO AGRARIO: Fitch Affirms 'BB+' LongTerm IDRs, Outlook Stable
FINANCIERA DE DESARROLLO: Fitch Affirms 'BB+' IDRs, Outlook Stable
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Family Shopping Basket "Skyrocketing"
J A M A I C A
TRANSJAMAICAN HIGHWAY: S&P Affirms BB- ICR & Alters Outlook to Pos.
T R I N I D A D A N D T O B A G O
TRINIDAD & TOBAGO: Central Bank Keeps Repo Rate at 3.50%
- - - - -
=================
A R G E N T I N A
=================
ARGENTINA: Economic Activity Increased 1.7% Between June and July
-----------------------------------------------------------------
Buenos Aires Times reports economic activity in Argentina recorded
a 1.3 percent drop in July compared to the same month last year,
but rose 1.7 percent from the previous year, the INDEC national
statistics bureau reported.
So far this year, INDEC's Monthly Estimator of Economic Activity
(EMAE) has recorded a 3.1 percent cumulative decline, according to
Buenos Aires Times.
The data emerged on the same day that the Organisation for Economic
Cooperation and Development lowered its 2024 growth forecast for
Argentina, predicting a four-percent contraction, the report
notes.
According to the draft budget bill sent to Congress in
mid-September by President Javier Milei's government, the economy
will fall by 3.8 percent this year, but will grow five percent next
year, the report relays.
Beyond its estimates, INDEC reported that the agricultural sector
improved 23.6 percent during July, mostly due to a low base of
comparison left by last year's drought, the report says.
Mining and quarrying also increased 5.7 percent, boosted by
lithium, gas and oil developments, the report discloses.
On the other hand, there were decreases of 5.6 percent recorded for
industry, 14.8 percent for construction, 5.3 percent in wholesale
and retail consumption, and 4.5 percent in hotels and restaurants,
the report notes.
Economy Minister Luis Caputo said that: 'There may be volatility
but there will be no crisis. That risk has been eliminated, the
report relays.
"When you explain, people understand, and when they understand,
people support," Caputo said at the 140th Anniversary of the
Rosario Stock Exchange, the report notes.
"Sometimes people understand, sometimes they don't, but we will
continue to make the effort to explain. Our programme has a logic
behind it," he added, 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.
In March 2022, the International Monetary Fund (IMF) approved a new
30-month arrangement under an Extended Fund Facility for Argentina
in the amount of SDR 31.914 billion (equivalent to US$44 billion,
or 1000 percent of quota). The IMF Executive Board's decision
allowed the authories an immediate disbursement of an equivalent of
US$9.65 billion in March 2022.
Argentina's IMF-supported program seeks to improve public finances
and start to reduce persistent high inflation through a
multi-pronged strategy, involving a gradual elimination of monetary
financing of the fiscal deficit and enhancements in the monetary
policy framework.
In June 2024, the IMF Board completed an eighth review of the
Extended Arrangement under the Extended Fund Facility for
Argentina. The IMF Board's decision enabled a disbursement of
around US$800 million to support the authorities' efforts to
entrench the disinflation process, rebuild fiscal and external
buffers, and underpin the recovery.
S&P, in March 2024, raised its local currency sovereign credit
ratings on Argentina to 'CCC/C' from 'SD/SD' and its national scale
rating to 'raB+' from 'SD'. S&P also raised its long-term foreign
currency sovereign credit rating to 'CCC' from 'CCC-' and affirmed
its 'C' short-term foreign currency rating. The S&P ratings have
been affirmed as of August 2024. 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 that it would likely consider to be distressed.
In June 2023, Fitch ratings also upgraded 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-'.
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 2023. The new 'CC' rating signals a
default event of some sort appears probable in the coming years.
The affirmation of the LC IDR at 'CCC-' follows the peso debt swap
in June that Fitch did not deem to be a "distressed debt exchange"
(DDE).
Moody's Investors Service, in September 2022, affirmed Argentina's
Ca foreign-currency and local-currency long-term issuer and senior
unsecured ratings. The outlook remains stable. The decision to
affirm the Ca ratings balances Argentina's limited market access,
weak governance, and history of recurrent debt restructurings with
recent efforts to marshal fiscal and monetary measures to start
addressing underlying macroeconomic imbalances in the context of
the IMF program that was approved in 2022, according to Moody's.
DBRS, Inc. confirmed Argentina's Long-Term Foreign Currency Issuer
Rating at CCC and downgraded its Long-Term Local Currency Issuer
Rating to CCC from CCC (high) on March 3, 2023.
ARGENTINA: Experts Say Mass Consumption Plunged Again in August
---------------------------------------------------------------
Buenos Aires Times reports mass consumption stayed in the red last
month in Argentina, according to new private estimates.
A report by the Focus Market consultancy firm showed mass
consumption to be 13.7 percent down from the previous August
(year-on-year) and 4.6 percent in relation to July, according to
Buenos Aires Times.
The corresponding numbers from a study produced by the Argentine
Chamber of Commerce (CAC) were 7.8 and 1.8 percent respectively,
the report notes.
The Focus Market report is based on reading the product codes at
756 retail points, detailing that the number of receipts fell 10.3
percent year-on-year and 3.2 percent against July, the report
relays. Items per tickets dropped 7.3 percent from the previous
August to 4.3 items per ticket while three percent up from July,
the report notes.
"Mass consumption continues hurting. The perspectives for the last
months of the year is that the volume of year-on-year sales cannot
improve," said Damian Di Pace, the director of Focus Market, the
report discloses.
"The comparison must be made with a final third of 2023 awash with
steroids to improve demand with increased social plans and pension
and other financing in an electioneering context to increase the
consumption of different socio-economic sectors," he added, the
report says.
According to this report, the trend in the Buenos Aires
metropolitan area (AMBA) is a year-on-year plunge of minus 11.5
percent and 4.9 percent down from the previous month of July, the
report notes. Inland, the corresponding figures are 14.6 percent
and 4.5 percent down respectively, the report relays.
"The Argentine economy on steroids last year has now been given the
sleeping-pills needed to re-establish the overdue macroeconomic
balances in a correction which has an impact on and costs for all
the socio-economic levels of the population," indicated Di Pace,
the report discloses.
"Argentines will find it difficult to recover their earnings
immediately in an economy improving very slowly month by month but
with year-on-year falls," he concluded, the report says.
Meanwhile the CAC business chamber revealed the consumption of
goods and services to be 7.8 percent down from the previous August
and 1.8 percent from July for a 6.4 percent contraction for the
first eight months of the year, the report notes.
The year-on-year falls include 17 percent for garments and
footwear, 13.8 percent for transport and vehicles (licences and
petrol) and 21.7 percent for recreation, 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.
In March 2022, the International Monetary Fund (IMF) approved a new
30-month arrangement under an Extended Fund Facility for Argentina
in the amount of SDR 31.914 billion (equivalent to US$44 billion,
or 1000 percent of quota). The IMF Executive Board's decision
allowed the authories an immediate disbursement of an equivalent of
US$9.65 billion in March 2022.
Argentina's IMF-supported program seeks to improve public finances
and start to reduce persistent high inflation through a
multi-pronged strategy, involving a gradual elimination of monetary
financing of the fiscal deficit and enhancements in the monetary
policy framework.
In June 2024, the IMF Board completed an eighth review of the
Extended Arrangement under the Extended Fund Facility for
Argentina. The IMF Board's decision enabled a disbursement of
around US$800 million to support the authorities' efforts to
entrench the disinflation process, rebuild fiscal and external
buffers, and underpin the recovery.
S&P, in March 2024, raised its local currency sovereign credit
ratings on Argentina to 'CCC/C' from 'SD/SD' and its national scale
rating to 'raB+' from 'SD'. S&P also raised its long-term foreign
currency sovereign credit rating to 'CCC' from 'CCC-' and affirmed
its 'C' short-term foreign currency rating. The S&P ratings have
been affirmed as of August 2024. 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 that it would likely consider to be distressed.
In June 2023, Fitch ratings also upgraded 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-'.
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 2023. The new 'CC' rating signals a
default event of some sort appears probable in the coming years.
The affirmation of the LC IDR at 'CCC-' follows the peso debt swap
in June that Fitch did not deem to be a "distressed debt exchange"
(DDE).
Moody's Investors Service, in September 2022, affirmed Argentina's
Ca foreign-currency and local-currency long-term issuer and senior
unsecured ratings. The outlook remains stable. The decision to
affirm the Ca ratings balances Argentina's limited market access,
weak governance, and history of recurrent debt restructurings with
recent efforts to marshal fiscal and monetary measures to start
addressing underlying macroeconomic imbalances in the context of
the IMF program that was approved in 2022, according to Moody's.
DBRS, Inc. confirmed Argentina's Long-Term Foreign Currency Issuer
Rating at CCC and downgraded its Long-Term Local Currency Issuer
Rating to CCC from CCC (high) on March 3, 2023.
ARGENTINA: Scrapped Rent Controls & Now Market is Thriving
----------------------------------------------------------
globalinsolvency.com reports that for years, Argentina imposed one
of the world's strictest rent-control laws. It was meant to keep
homes such as the stately belle epoque apartments of Buenos Aires
affordable, but instead, officials here say, rents soared, the Wall
Street Journal reported, according to globalinsolvency.com.
Now, the country's new president, Javier Milei, has scrapped the
rental law, along with most government price controls, in a fiscal
experiment that he is conducting to revive South America's
second-biggest economy, the report notes. The result: The
Argentine capital is undergoing a rental-market boom, 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.
In March 2022, the International Monetary Fund (IMF) approved a new
30-month arrangement under an Extended Fund Facility for Argentina
in the amount of SDR 31.914 billion (equivalent to US$44 billion,
or 1000 percent of quota). The IMF Executive Board's decision
allowed the authories an immediate disbursement of an equivalent of
US$9.65 billion in March 2022.
Argentina's IMF-supported program seeks to improve public finances
and start to reduce persistent high inflation through a
multi-pronged strategy, involving a gradual elimination of monetary
financing of the fiscal deficit and enhancements in the monetary
policy framework.
In June 2024, the IMF Board completed an eighth review of the
Extended Arrangement under the Extended Fund Facility for
Argentina. The IMF Board's decision enabled a disbursement of
around US$800 million to support the authorities' efforts to
entrench the disinflation process, rebuild fiscal and external
buffers, and underpin the recovery.
S&P, in March 2024, raised its local currency sovereign credit
ratings on Argentina to 'CCC/C' from 'SD/SD' and its national scale
rating to 'raB+' from 'SD'. S&P also raised its long-term foreign
currency sovereign credit rating to 'CCC' from 'CCC-' and affirmed
its 'C' short-term foreign currency rating. The S&P ratings have
been affirmed as of August 2024. 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 that it would likely consider to be distressed.
In June 2023, Fitch ratings also upgraded 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-'.
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 2023. The new 'CC' rating signals a
default event of some sort appears probable in the coming years.
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.
GAUCHO GROUP: Expands U.S. Distribution Network With Giannone Wine
------------------------------------------------------------------
Gaucho Group Holdings, Inc. announced on Sept. 25 the addition of
Giannone Wine & Liquor Co to the wine retailer network of Algodon
Fine Wines.
Giannone Wine & Liquor Co (gwine.com) is a well-established Wine &
Liquor store with locations in West New York and Hoboken, NJ,
offering a wide assortment of wines from around the world, as well
as international beers and spirits, including the hard-to-find. As
part of this collaboration, Giannone Wine & Liquor Co will serve as
Algodon's stateside e-commerce fulfillment center for
AlgodonFineWines.com. The e-commerce store, powered by Giannone
Wine & Liquor Co, links to a virtual storefront showcasing the
Algodon wines currently distributed in the U.S.
In addition to the Algodon Fine Wines site powered by Giannone Wine
& Liquor Co, Algodon Fine Wines are also available throughout the
U.S. via 3Js Imports, both in-stores and online at such retailers
as Giannone Wine & Liquor Co, Fanwood Liquors, Sebonack Golf &
Country Club, Off the Hook Restaurant, The Frog and the Peach
Restaurant, Dittrick's Wine & Liquors, and Vineborough Lounge &
Liquors, among others.
Scott Mathis, CEO, and Founder of Gaucho Group Holdings, Inc.,
stated, "We are pleased to welcome Giannone Wine & Liquor Co into
our trusted network. This collaboration is a significant step in
our efforts to expand the reach of Algodon Fine Wines in the United
States, providing wine enthusiasts with greater access to our
exceptional wines."
About Gaucho Group Holdings, Inc.
For more than ten years, Gaucho Group Holdings, Inc.'s
(gauchoholdings.com) mission has been to source and develop
opportunities in Argentina's undervalued luxury real estate and
consumer marketplace. The Company company has positioned itself
to
take advantage of the continued and fast growth of global
e-commerce across multiple market sectors, with the goal of
becoming a leader in diversified luxury goods and experiences in
sought after lifestyle industries and retail landscapes. With a
concentration on fine wines (algodonfinewines.com &
algodonwines.com.ar), hospitality (algodonhotels.com), and luxury
real estate (algodonwineestates.com) associated with our
proprietary Algodon brand, as well as the leather goods,
ready-to-wear and accessories of the fashion brand Gaucho - Buenos
Aires (gaucho.com), these are the luxury brands in which Argentina
finds its contemporary expression.
New York, NY-based Marcum LLP, the Company's auditor since 2013,
issued a "going concern" qualification in its report dated April
29, 2024, citing that the Company has a significant working capital
deficiency, has incurred significant losses, and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
=============
B A H A M A S
=============
FTX GROUP: Plaintiffs Lawyers Settle Bitter Feud with Estate
------------------------------------------------------------
Alison Frankel at Reuters reports that plaintiffs' lawyers in the
sprawling FTX litigation in Miami federal court have reached a
deal, opens new tab with lawyers for the bankrupt company,
resolving a fight that erupted earlier this year over who owns the
right to sue on behalf of customers of the crypto exchange.
The agreement, filed in Miami federal court, allows the lawyers
heading consolidated litigation for FTX customers to proceed with
most of the cases they have filed, including class actions against
FTX's banks, financial advisers, venture capital investors and
celebrity "brand ambassadors," according to Reuters.
The settlement also clarifies that any money customers recoup from
the class actions will be in addition to - rather than an offset
from - customers' recoveries in the FTX bankruptcy, the report
discloses.
The FTX estate will coordinate with plaintiffs' lawyers pursuing
those class actions, under the new agreement, instead of contesting
their right to bring claims that, according to FTX, belong to the
bankruptcy company and not its customers, the report discloses.
Under the settlement, which must be approved by U.S. District Judge
Michael Moore of Miami, plaintiffs lawyers can also take the lead
on claims against former FTX law firm Fenwick & West, which
represented the exchange during the rapid growth that preceded its
implosion and bankruptcy in 2022, the report relays.
A court-appointed examiner in the FTX Chapter 11 bankruptcy said in
a report last May that he was continuing to investigate Fenwick,
but the FTX estate has not brought a case against the law firm, the
report says. Plaintiffs' lawyers filed a class action against the
firm in August 2023, the report recalls.
Fenwick vehemently denies wrongdoing and has moved to dismiss
customers' class action, insisting that it provided only routine
legal services to the exchange, the report relates. Fenwick did
not respond to a query on the new settlement between plaintiffs
lawyers and the FTX estate, the report notes.
Plaintiffs' lawyers plan to drop FTX customers' class action
against Sullivan & Cromwell, according to lead counsel Adam
Moskowitz of The Moskowitz Law Firm, the report says.
Moskowitz said that after coordinating with FTX examiner Robert
Cleary of Patterson Belknap Webb & Tyler, plaintiffs' lawyers in
the consolidated case decided there was not sufficient evidence
against Sullivan & Cromwell, the report notes.
The FTX examiner said in a report made public that Sullivan &
Cromwell did not learn of any FTX misconduct and did not ignore red
flags during its representation of former FTX CEO Sam Bankman-Fried
in his purchase of Robinhood shares, the report discloses.
The examiner's previous report said Sullivan & Cromwell was not
complicit in fraudulent conduct by FTX insiders.
Sullivan & Cromwell said in an email statement that "the examiner
has again found no truth to allegations about our prepetition work
for FTX." A Sullivan & Cromwell spokesperson declined to comment on
Moskowitz's plan to dismiss customers' lawsuit against the firm,
the report relays.
The settlement between the FTX estate and plaintiffs lawyers leaves
unresolved the legal question of whether claims by FTX customers
against former FTX executives, banks, auditors and investors belong
to the estate or to the customers themselves, the report notes.
Both sides agreed to drop motions calling on Moore and U.S.
Bankruptcy Judge John Dorsey of Wilmington to block the other side
from pursuing certain claims, the report says.
Under the agreement, plaintiffs lawyers will defer to the FTX
estate in litigation against investment fund K5 Global, which
allegedly received $700 million from FTX. K5 has denied wrongdoing,
the report discloses.
Plaintiffs lawyers also agreed to stay a request for approval of
classwide settlements with FTX insiders until after the estate has
resolved its claims against them, the report relays.
In addition, plaintiffs lawyers will drop their bid to administer
payouts of money the U.S. government has obtained in criminal
proceedings against former executives from FTX and its sister hedge
fund Alameda Capital, the report notes.
A spokesperson for the FTX estate did not respond to my query about
the settlement with plaintiffs lawyers, the report relays. The
estate had not filed the proposed settlement agreement in the
bankruptcy court docket, the report relays.
Moskowitz said the deal, which took months to hammer out with the
help of a mediator, reflects a recognition that both the FTX estate
and plaintiffs lawyers representing FTX customers want to maximize
customers' recovery, the report notes.
"Whatever gets more money back for them, the better," Moskowitz
said. "At the end of the day, we are fighting for the same
people," he added.
A key breakthrough, Moskowitz said, came when FTX CEO John Ray
agreed to drop an "anti double-dipping" provision in FTX's
bankruptcy plan that would have subtracted customers' recoveries in
class action litigation from their claims in the bankruptcy, the
report notes.
Now, as I mentioned, whatever customers obtain from their class
action litigation will be in addition to their recoveries from the
bankruptcy process, the report relays. Plaintiffs lawyers said in
their motion for approval of the settlement with the FTX estate
that they believe FTX customers suffered $20 billion more in
damages than they will recover from the FTX bankruptcy, the report
notes.
Moskowitz said he is hopeful that defendants will be more likely to
settle because plaintiffs lawyers and the FTX estate have settled
their differences and are working together, the report relays.
Defendants, he noted, usually want a global resolution rather than
piecemeal deals. The settlement, Moskowitz said, makes it possible
for defendants to reach deals that resolve all of their exposure to
FTX claims, the report notes.
Back when plaintiffs lawyers and FTX lawyers were sniping at each
other, their main line of attack was fees: Each side accused the
other of trying to milk the case for their own benefit, the report
relays. The new settlement calls for future negotiations between
the FTX estate and class action lawyers on the allocation of fees
from cases in the consolidated proceeding before Moore, with FTX
pledging not to oppose "reasonable" fee requests, the report
discloses. If the two sides can't agree, the settlement calls for
mediation and arbitration, the report adds.
About FTX
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9, 2022, struck a deal to
sell itself to its giant rival Binance, but Binance walked away
from the deal amid reports on FTX regarding mishandled customer
funds and alleged US agency investigations. SBF agreed to step
aside, and restructuring vet John J. Ray III was quickly named new
CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
billion in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year.
According to Reuters, SBF shared a document with investors on Nov.
10, 2022, showing FTX had $13.86 billion in liabilities and $14.6
billion in assets. However, only $900 million of those assets were
liquid, leading to the cash crunch that ended with the company
filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims
agent, maintaining the page
https://cases.ra.kroll.com/FTX/Home-Index
The Official Committee of Unsecured Creditors tapped Paul Hastings
as counsel, FTI Consulting, Inc., as financial advisor, and
Jefferies LLC as the investment banker. Young Conaway Stargatt &
Taylor LLP is the Committee's Delaware and conflicts counsel.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases.
White-collar crime specialist Mark S. Cohen has reportedly been
hired to represent SBF in litigation. Lawyers at Paul Weiss
previously represented SBF but later renounced representing the
entrepreneur due to a conflict of interest.
===========
B R A Z I L
===========
BRAZIL: Bank Defends Gradual Start to Interest Rate Hiking Cycle
----------------------------------------------------------------
globalinsolvency.com, citing Bloomberg News, reports that Brazil's
central bank said all board members supported a gradual start to
their cycle of interest rate hikes, falling short of explicitly
backing faster increases seen by financial markets going forward.
"All members agreed to start the monetary policy tightening cycle
gradually," central bankers wrote in minutes to their Sept. 17-18
rate meeting, when they raised the benchmark Selic for the first
time since 2022, to 10.75%, according to globalinsolvency.com.
About Brazil
Brazil is the fifth largest country in the world and third largest
in the Americas. Luiz Inacio Lula da Silva won the 2022 Brazilian
general election. He was sworn in on January 1, 2023, as the 39th
president of Brazil, succeeding Jair Bolsonaro.
Moody's credit rating for Brazil was last set at Ba2 with positive
outlook as of May 2024. S&P Global Ratings raised on Dec. 19,
2023, its long-term global scale ratings on Brazil to 'BB' from
'BB-'. Fitch Ratings affirmed on Dec. 15, 2023, Brazil's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'BB' with a Stable
Outlook. DBRS' credit rating for Brazil was last reported at BB
with stable outlook at July 2023.
===============
C O L O M B I A
===============
BANCO AGRARIO: Fitch Affirms 'BB+' LongTerm IDRs, Outlook Stable
----------------------------------------------------------------
Fitch Ratings has affirmed Banco Agrario de Colombia S.A.'s
(Agrario) Long-Term (LT) Foreign and Local Currency Issuer Default
Ratings (IDRs) at 'BB+'. The Rating Outlook is Stable.
Key Rating Drivers
IDR, GSR and VR
Support Driven IDRs: Banco Agrario de Colombia's IDRs are driven by
its Government Support Rating (GSR) of 'bb+', which reflects
Fitch's assessment of the propensity and ability of support from
the bank's sole shareholder, the Colombian government (BB+/Stable),
if needed. The Stable Outlook on Agrario's IDRs mirrors the Outlook
on Colombia's IDRs. The bank's assigned Viability Rating (VR) is in
line with its implied VR based on its business, risk and financial
profile.
State Ownership: Fitch's support assessment considers with high
importance that Agrario is a policy bank fully owned by the state
through Grupo Bicentenario, a government holding of the Ministry of
Finance. Although the Colombian government does not explicitly
fully guarantee all of Agrario's liabilities, the entity has many
operational and financial synergies with the public administration
and is view by Fitch as a factor with high importance.
Important Policy Role: Agrario has a key policy role in the
development of the agricultural sector, small and medium
enterprises and the government plan of promoting the "Popular
Economy" resulting in an equalization of its GSR with the
sovereign's LT IDR of 'BB+'. The GSR also reflects Agrario's role
in Grupo Bicentenario, the holding that consolidates the public
sector financial entities.
Deteriorated Asset Quality: The 90-day non-performing loan (NPL)
ratio deteriorated to 7.4% at June 2024, from 6.3% at YE 2023 (9.2%
and 8.1% respectively in regulatory terms), reflecting the bank's
microcredit exposure and the increasing weaker borrower payment
capacity in an unfavorable operating environment that has
maintained for a longer than expected period of time.
Agrario's loan portfolio is supported by its adequate loan loss
allowances coverage of 90-days impaired loans of 117.7% at 1H24.
Fitch expects asset quality to remain stable or mildly deteriorate
due to the effect of expected climate events like El Niño weather
pattern on the agricultural segment. Nevertheless, Fitch expects
the 90-days NPL ratio to return to more acceptable levels during
2025.
Lower Profitability: Agrario's operating profit to risk-weighted
assets (RWA) ratio has declined in 2024, dropping to 3.2% as of
June 2024, compared to an average of 6.5% from 2020 to 2023. This
decrease is primarily due to due to higher cost of risk, with
increasing loans impairment charges amid stable net interest
margin. Fitch expects profitability to remain stable for the rest
of 2024, and commensurate to its rating category. Agrario's
profitability ratio compares favorably to the banking system level
due to the bank's low risk-weighted assets density. Fitch also
anticipates that profitability will return to historical levels in
2025 as asset quality improves, amid a higher loan growth scenario
and decreasing funding costs.
Adequate Capitalization: Agrario's common equity Tier 1 (CET1)
ratio declined to 14.5% at 1H24 from 16.7% at YE 2023, mainly
reflecting the deterioration in profitability and net income. Fitch
does not anticipate significant pressure on capitalization metrics
in 2024 and believes capitalization will remain adequate, under
moderate asset growth and stable earnings. In Fitch's opinion,
Agrario's capital position is commensurate with its rating level
and risk exposure.
Sound Liquidity: Agrario's sound liquidity position is reflected in
its loans-to-deposit ratio of 98.9% at 1H24, which has improved as
deposits, especially term deposits, grew by 14.5% during 1H24.
Historically, customer deposits have covered almost two-thirds of
the bank's funding needs. Fitch expects liquidity to remain sound
as the bank benefits from an ample and stable deposit base and
access to local funds from other financial institutions.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Agrario's GSR and IDRs could be downgraded if the sovereign
rating is downgraded;
- Agrario's GSR and IDRs could be downgraded if Fitch perceives a
decrease in the bank's policy role for the government, but this
scenario is unlikely over the medium term;
- The VR could be downgraded if a significant deterioration of the
bank's asset quality and/or profitability ratios result in a
sustained decrease in the CET1 ratio below 12%.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Agrario's GSR and IDRs could be upgraded in the event of a
similar action in Colombia's sovereign ratings, absent any change
in Fitch's view of the government's propensity to provide support
to this bank;
- The VR could be upgraded by the confluence of improvements in the
operating environment and asset quality that results in an
operating profit to RWA ratio consistently above 4.75%.
VR ADJUSTMENTS
Fitch has assigned an Earnings and Profitability score of 'bb+'
that is below the 'bbb' category implied score due to the following
adjustment reason: Earnings stability (negative).
Public Ratings with Credit Linkage to other ratings
Banco Agrario's ratings are driven by Colombia's sovereign rating
(BB+/Stable).
ESG Consideration
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
----------- ------ -----
Banco Agrario de
Colombia S.A. LT IDR BB+ Affirmed BB+
ST IDR B Affirmed B
LC LT IDR BB+ Affirmed BB+
LC ST IDR B Affirmed B
Viability bb Affirmed bb
Government Support bb+ Affirmed bb+
FINANCIERA DE DESARROLLO: Fitch Affirms 'BB+' IDRs, Outlook Stable
------------------------------------------------------------------
Fitch Ratings has affirmed Financiera de Desarrollo Nacional,
S.A.'s (FDN) Long-Term (LT) Foreign (FC) and Local Currency (LC)
Issuer Default Ratings (IDRs) at 'BB+'. Fitch has also affirmed the
bank's Government Support Rating (GSR) at 'bb+' and the National
Long- and Short-Term Ratings at 'AAA(col)' and 'F1+(col)',
respectively.
The Rating Outlook for the LT ratings is Stable.
Key Rating Drivers
Government Support Drives Ratings: FDN's IDRs and national ratings
are based on the support it would receive from the Colombian
government, should it be required, as reflected in its Government
Support Rating (GSR) of 'bb+'. Fitch views the entity with a high
policy role as it is an integral part of the state given its part
in implementing infrastructure development policies.
State Ownership: Fitch's support assessment considers with high
importance that the state is the majority shareholder and that the
company has operational and financial synergies with the public
administration, although the government does not extend an explicit
guarantee on all of its debt.
Government Support Ability: The government's current ability to
support the bank is reflected in the sovereign's IDR of
'BB+'/'Stable'. The GSR indicates the minimum level to which the
entity's LT IDRs could fall if Fitch does not change its view on
potential sovereign support. The national ratings of FDN, which are
at the highest level on the ratings scale, are relative rankings of
creditworthiness within Colombia. These are based on potential
sovereign support, if needed.
Policy Role: FDN's policy role is considered with high importance
in the support assessment. It acts as the government's financial
arm to structure and finance public infrastructure projects. The
entity is heavily involved in the development of the country's
biggest road concession programs and some of its largest
infrastructure projects.
Financial Profile: FDN's ratings are based solely on Fitch's
assessment of expected government support. The company's
performance has been relatively stable over the years, underpinned
by solid capital metrics and good loan performance. Profitability
metrics have been growing since 2020, benefitting from increased
business volume. However, in the first half of 2024, this trend
slowed due to increased funding costs and loan prepayments which
stalled loan growth. Fitch believes that FDN will continue to
exhibit good financial performance in the future.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- FDN's GSR and IDRs could be downgraded if the sovereign rating is
downgraded;
- FDN's GSR, IDRs and National Scale ratings could be downgraded if
Fitch perceives a decrease in the entity's policy role for the
national government, but this scenario is unlikely over the medium
term.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- FDN's GSR and IDRs could be upgraded in the event of a similar
action in Colombia's sovereign ratings, absent any change in
Fitch's view of the government's propensity to provide support to
FDN;
- National ratings have no upside potential because they are at the
highest level on the national rating scale.
OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS
Fitch affirmed the local senior debt issuance at the same level as
FDN's National Long-Term Rating as the notes' likelihood of default
is the same as the company.
OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES
FDN's senior notes' national ratings are sensitive to any changes
in FDN's ratings.
Public Ratings with Credit Linkage to other ratings
FDN's ratings are support-driven from the Colombian government.
ESG Considerations
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
----------- ------ -------- -----
Financiera de
Desarrollo
Nacional S.A. LT IDR BB+ Affirmed BB+
ST IDR B Affirmed B
LC LT IDR BB+ Affirmed BB+
LC ST IDR B Affirmed B
Natl LT AAA(col)Affirmed AAA(col)
Natl ST F1+(col)Affirmed F1+(col)
Government Support bb+ Affirmed bb+
senior
unsecured Natl LT AAA(col)Affirmed AAA(col)
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Family Shopping Basket "Skyrocketing"
---------------------------------------------------------
Dominican Today reports that housewives struggle with the high
costs of the family basket because they say that sometimes they
must borrow money to subsidize household needs, this in relation to
the statements of Luis Abinader, where he said that the Dominican
Republic is the third country with the cheapest basic food basket
in Central America and the Caribbean.
"In a tour made by reporters of Listin Diario through the markets
of La Duarte and Villa Consuelo, in addition to visiting some
sectors of the National District, where housewives say they feel
abandoned by the government due to promises about lowering the cost
of the family basket," according to Dominican Today.
The report notes that recall that President Luis Abinader expressed
in La Semanal from New York that the Dominican Republic's family
basket is the third cheapest in Central America and the Caribbean;
this despite the impact of global inflation in the country.
"We were the third most expensive about six years ago and there is
the data. These are not our data, they are from the consumer
control agency; of course, there has been inflation, prices have
gone up all over the world, they have gone up here in the United
States," said the President, the report discloses.
In response to the statements of the head of state, the
presidential aspirant of the Dominican Liberation Party (PLD),
Francisco Javier Garcia, said that he regrets that Abinader has not
visited the food sales center to support his statement obtained by
the news agecy.
The member of the PLD Political Committee said that the reality of
the prices of basic products are "unattainable" for the citizens,
"I suggest that he not be carried away by the officials who tell
him that," he added, the report relays.
Garcia said that his approach is based on information provided by
the press where official data from the Ministry of Economy,
Planning and Development (Mepyd) is released, where it was made
known that at the national level the basic food basket stands at
RD$45,494.6, the report notes.
"He considered that the president should make sporadic visits to
establishments where food is sold to avoid being deceived by his
own officials," he added.
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.
Standard & Poor's credit rating for Dominican Republic was raised
to 'BB' in December 2022 with stable outlook. Moody's credit
rating for Dominican Republic was last set at Ba3 in August 2023
with the outlook changed to positive. Fitch, in December 2023,
affirmed the Dominican Republic's Long-Term Foreign-Currency Issuer
Default Rating (IDR) at 'BB-' and revised the outlook to positive.
=============
J A M A I C A
=============
TRANSJAMAICAN HIGHWAY: S&P Affirms BB- ICR & Alters Outlook to Pos.
-------------------------------------------------------------------
S&P Global Ratings revised the outlook on Transjamaican Highway
Ltd.'s notes to positive from stable and affirmed its 'BB-' rating
on the notes.
S&P said, "The positive outlook reflects that on the sovereign. We
could raise the rating on Transjamaican Highway's debt if we took a
similar rating action on Jamaica, which would require a continued
strengthening of Jamaica's policy framework that benefits the
sovereign's debt, for example through more sustainable public
finances or balanced long-term economic growth.
"Therefore, and as we continue to cap our ratings on the project at
the sovereign level, we revised the outlook on the ratings on TJH
to positive from stable. The stand-alone credit profile of 'a-'
remains unchanged.
"The positive outlook reflects that on the sovereign. We could
raise the rating on TJH if we took a similar rating action on
Jamaica, which would require a continued strengthening of Jamaica's
policy framework that benefits the sovereign's debt, for example
through more sustainable public finances or balanced long-term
economic growth.
"We could revise the outlook to stable if we revise the outlook on
Jamaica to stable.
"We could lower the project's stand-alone credit profile if
financial performance, traffic, or maintenance needs are
significantly worse than we expect, leading to a minimum debt
service coverage ratio of 1.7x or below. We could also lower the
stand-alone credit profile on TJH if we were to lower the rating on
National Commercial Bank Jamaica Ltd. (BB-/Stable/B), TJH's bank
account provider."
Operations phase SACP (senior debt)
- Operations phase business assessment: 6
- Preliminary SACP: a-
- Downside resiliency assessment and impact: High (no impact)
- Median DSCR impact: Neutral
- Debt structure impact: Neutral
- Liquidity impact: Neutral
- Refinancing impact: Neutral
- Future value modifier impact: Neutral
- Holistic analysis impact: Neutral
- Structural protection impact: Neutral
- Financial counterparty ratings adjustment: a-
- Operations phase SACP: a-
- Parent linkage: De-linked
- Project SACP: a-
- Sovereign rating limits: BB-/Positive/
- Senior debt issue rating: BB-/Positive
=====================================
T R I N I D A D A N D T O B A G O
=====================================
TRINIDAD & TOBAGO: Central Bank Keeps Repo Rate at 3.50%
--------------------------------------------------------
Trinidad and Tobago Guardian reports that the Central Bank agreed
to keep the repo rate at 3.50 per cent, noting that the key
considerations in taking the decision were the combination of low
inflation, a measured economic revival focused on non-energy
sectors, and the prospects for a further narrowing of the negative
short-term TT/US interest differential.
In its quarterly monetary policy announcement, the Central Bank
noted that the growth in financial system credit to the private
sector has been relatively strong in recent months, with "consumer
credit" growing at a double digit pace, which needs to be closely
monitored in coming months, according to Trinidad and Tobago
Guardian.
It pointed out, "Consumer lending in particular grew by over 10 per
cent (year-on-year) in the months of March to June 2024, with a
concentration on loans for motor vehicles, refinancing and debt
consolidation. Meanwhile, business and real estate mortgage
lending rose by a monthly average of 9.2 per cent and 5.1 per cent,
respectively over the March to June 2024 period," the report
notes.
Despite the double-digit growth most recently, the Bank pointed out
that inflation in T&T remains low, the report relays.
"Recent data from the Central Statistical Office show that headline
inflation slid to 0.4 per cent (year-on-year) in August 2024 from
0.7 per cent in June 2024. Food inflation eased in August, slipping
to 1.5 per cent from 2.3 per cent in June. Core inflation, which
excludes the influence of food prices, decreased slightly to 0.1
per cent in August from 0.2 per cent in June," according to the
Central Bank's monetary policy committee. The committee is chaired
by Central Bank Governor Dr Alvin Hilaire, the report says.
It referred to its decision to reduce the reserve requirement from
14 to 10 per cent in July, noting that the domestic banking system
liquidity (as measured by commercial banks excess reserves at the
Central Bank) rose by about $3 billion, the report discloses.
"Liquidity then fluctuated as banks adjusted their portfolios in
the context of Central Bank open market operations and public
sector borrowing. More recently, excess reserves reached a daily
average of $6.3 billion in mid-September 2024," said the monetary
policy committee of the Central Bank, the report notes.
The Central Bank said there has been a continued rise in domestic
interest rates on treasury bills as a result of the sustained
public sector financing requirements, the report relays. The bank
said the increase in the rates of local treasury bills, alongside
the decline in external interest rates, led to a narrowing of the
(negative) TT/US short-term interest differentials, the report
discloses.
"This measure of relative rates on three-month treasuries moved
from -349 basis points to -271 basis points between June and
mid-September 2024," said the Central Bank, the report says.
Explaining the narrowing of the (negative) TT/US short-term
interest differentials, the bank said in September 2024, the United
States Federal Reserve lowered its target range for the federal
funds rate by 50 basis points to 4.75 to 5.0 per cent, the report
notes. That was its first rate cut since March 2020, the report
discloses.
Referring to its July 2024 reduction in the reserve requirement
from 14 to 10 per cent, the Central Bank said that immediately
following the decision, banking system liquidity (as measured by
commercial banks' excess reserves at the central bank) rose by
about $3 billion, the report relays. This began to fluctuate as
banks adjusted portfolios, the report notes.
The report noted more recently, excess reserves reached a daily
average of $6.3 billion in mid-September 2024, Trinidad and Tobago
Guardian adds.
*********
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
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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.
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