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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, October 25, 2024, Vol. 25, No. 215

                           Headlines



A R G E N T I N A

AEROLINEAS ARGENTINAS: Government Ousts Union Leader From Board
PAMPA ENERGIA: Sizes Up LNG Projects as Milei Aids Shale Growth


B R A Z I L

AGROGALAXY: Slashes Stores and Staff in Major Restructuring Effort


C A Y M A N   I S L A N D S

MEGA MATRIX: Stockholders OK Redomicile Merger to Cayman Islands


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: CHTA Warns Against Tax Reforms


E C U A D O R

ECUADOR: IDB Approves $150MM-Loan to Address Organized Crime


J A M A I C A

JAMAICA: BOJ Intervenes in Forex Market for Third Time


M E X I C O

GRUPO ELEKTRA: S&P Assigns 'BB-' LongTerm ICR, Outlook Negative
MEXICO REMITTANCES: S&P Gives Prelim. 'BB+' Rating on 2024-1 Notes
NUEVA ELEKTRA: S&P Assigns LT 'BB-' ICR, Outlook Negative


T R I N I D A D   A N D   T O B A G O

TRINIDAD & TOBAGO: Inflation Steady at 0.4%, CSO Says

                           - - - - -


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A R G E N T I N A
=================

AEROLINEAS ARGENTINAS: Government Ousts Union Leader From Board
---------------------------------------------------------------
Buenos Aires Times reports that Aerolineas Argentinas decided to
oust Pablo Biro, the leader of the Airline Pilots' Association
union (APLA), from his post in the company's board of directors.

The state airline issued a press release explaining that the
decision was made upon request by the main shareholder: the
government, according to Buenos Aires Times.

President Javier Milei's administration, speaking via Presidential
Spokesperson Manuel Adorni, highlighted that Argentina's flagship
airline had seen 13 aviation strikes over the last nine months,
resulting in the stranding of 100,000 passengers and financial
losses in excess of US$20 million, the report notes.

Milei wants to sell off Aerolineas and attempted to include it on a
list of state companies to be sold off in his so-called 'Ley de
Bases' mega-reform bill, the report relays.

However, during negotiations to secure the bill's passage through
Congress, the administration pulled the firm from the slate of
firms up for sale, the report notes.

The government's latest move comes after weeks of conflict with
unions of pilots, airport security personnel and other aeronautical
unions, the report discloses.

Aviation workers are demanding salary increases amid falling
purchasing power and incomes, the report says.

Unions had rejected in August as "provocative" a single-digit offer
proposed by the government, the report relays.

Last month, Milei declared air transport services to be "essential"
by decree, obliging unions to guarantee 50 percent of services in
the event of strikes, the report notes.

                         Legal Action?

Transport Secretary Franco Mogetta anticipated that, following
Biro's exit, the government will take legal action against unions,
the report notes.

In response, Biro, who is also a director in the company through
the Shared Property Program, challenged the decision and plans to
file a suit in court to reverse it, the report notes.

"Aerolineas Argentinas, upon request by the government of all
Argentines, has decided to oust Biro, who kept harming the company
and taking over 100,000 passengers hostage, the report relays.
Starting today, Biro is no longer part of the board of directors of
Aerolineas Argentinas," stated Mogetta in a statement obtained by
the news agency.

"Biro and the union hogged the representation in the board of
directors, but the post cannot necessarily be taken by the union,
any worker can replace that quota in the board," he continued, the
report relays.

"The company has no risk of stopping operations after expelling
Biro. Aerolineas Argentinas operates normally," added Mogetta, the
report notes.

The official anticipated that "court action will be taken to
financially compensate for the damage caused by industrial action,
the report discloses.  The losses were in the amount of US$20
million in sales and US$4 million in operating expenses, the report
says.  That court action was approved today at the meeting."

Biro was reported in September by Security Minister Patricia
Bullrich due to alleged unlawful acts related with extortive
threats, the report relays.

The alleged incidents took place after the government's
announcement to declare air transport as essential, the report
notes.

In his statement, Biro stated that the situation in the sector
would be further complicated by his removal, the report says.

In a context of growing tension, the Air Navigators union, headed
by Juan Pablo Brey, confirmed a strike scheduled for October 30,
the report discloses.

In this respect, the APLA issued a release establishing that the
decision against Biro comes in addition to "a long series of
hostile actions against aviation unions," the report relays.

Due to that, aviation workers and Biro "have decided to take legal
action to challenge said shareholders' meeting, reaffirming their
commitment to the defence of labour rights in the air sector, with
the backing of international solidarity and the ITF International
Transport Workers' Federation," the report adds.

              About Aerolineas Argentinas

Headquartered in the Torre Bouchard, located in San Nicolas, Buenos
Aires, Aerolineas Argentinas, formerly Aerolineas Argentinas S.A.,
is Argentina's largest domestic and international airline.  It is
the national airline and carries around 70% of Argentina's domestic
traffic and 40% of international flights from Ministro Pistarini
International Airport, which is located in Ezeiza, Buenos Aires.

Aerolineas Argentinas is currently owned in its majority by the
Argentine government, which seized the airline from Spanish tourism
company Grupo Marsans in 2009.

In June 2001, the airline filed for protection from creditors and
went into administration.  In 2002, a Buenos Aires judge accepted
its debt restructuring agreement with creditors.


PAMPA ENERGIA: Sizes Up LNG Projects as Milei Aids Shale Growth
---------------------------------------------------------------
Buenos Aires Times reports that Argentina energy producer Pampa
Energia SA will decide in the next three months whether to partner
on a multibillion-dollar LNG plant as President Javier Milei's
crusade to deregulate the economy accelerates development of the
world's second-biggest shale gas deposit.

Pampa has ramped up investments in the Patagonia shale patch known
as Vaca Muerta - or "dead cow" in English - where it is already one
of the biggest natural gas producers, according to Buenos Aires
Times.  Now, it is hurrying to find an outlet for all the fuel as
other drillers advance plans for export terminals, the report
notes.

Pampa looked into building a small plant - the type that Argentine
billionaire Paolo Rocca is also considering - through its stake in
natural gas company TGS SA, but it couldn't square away the
economics the report relays.  That leaves it with a partnership
with one of two contenders: a larger-scale project being led by
state-run YPF SA and another smaller, floating site by the Pan
American Energy Group, which is 50 percent owned by BP Plc the
report notes.

"We have to go to a larger scale," Pampa Chairman Marcelo Mindlin
said in an interview at Bloomberg's offices in New York the report
discloses.  "But to do that, you have to join forces. It's a big
investment, so we have to be very careful the report says.  But I
think we have to take a decision in the next three months because
the other producers are willing to move forward," he added.

While any Argentine LNG project won't be ready to ship cargoes of
the super-chilled fuel for years, the plans are key to ambitions to
turn the struggling country into a net gas exporter, which would
provide a regular flow of dollars to shore up Argentina's finances.
Today, that role is mainly played by the crop industry and
Argentina is an importer of LNG, the report notes.

Pampa is also eyeing construction of a plant that would turn shale
gas into urea, creating more local nitrogen fertiliser for crops
that would reduce farmers' needs to import US$1 billion a year of
other fertilisers made abroad, the report discloses.  In turn, that
would help Argentina's trade balance, a key ingredient for Milei's
government to reposition the economy toward growth, the report
relays.

Pampa is still assessing costs but may be ready to take a final
investment decision on a urea plant by the middle of next year, the
report notes.

"It makes all the sense in the world to convert natural gas into
urea and reduce imports," Mindlin said, the report relays.  "We
have gas resources for 100 of years, so either we export that gas
and we monetise it somehow or it's going to remain underground," he
added.

A flurry of potential Argentine energy and infrastructure
investments are being driven by Milei, a libertarian in his first
year in office, after he made a program of tax, currency and
customs incentives a marquee section of his sweeping reforms
legislation passed earlier in the year, the report notes.

Mindlin said all investments by Pampa and TGS are being analysed
within Milei's new framework, known by its Spanish acronym RIGI,
and that provisions on value added tax are particularly beneficial,
the report says.

                              Power

Likewise, Pampa, which is also one of Argentina's biggest power
producers, stands to benefit from Milei's plan to double down on
deregulation of the electricity market by scaling back the role of
Cammesa, a government agency that brokers industry supply
contracts, including between gas drillers and thermal power plant
operators, the report relays.

"It's crazy," Mindlin said.  "Right now we are forced to sell our
gas to Cammesa and then Cammesa sells the gas to us. So imagine how
difficult it is to deregulate such a twisted sector. If they
deregulate the consumption of gas for power plants, it would be
very positive for Pampa," he added.

More broadly, Mindlin, like other Argentine business executives, is
delighted with Milei's austerity drive because a smaller government
is freeing up financing for the private sector, the report says.
And much like Milei, he believes the investments that companies
make with the money will trickle through the rest of the economy,
the report notes.

"Having a fiscal surplus allows 'crowding in' because the
government is no longer taking money out of the financial markets,"
Mindlin said, the report discloses.  "Now, if banking institutions
want to lend, they have to find private-sector borrowers. So we
could be on the verge of a very strong lending-led recovery," he
added.

                About Pampa Energia

Pampa is the largest independent energy integrated company in
Argentina. Pampa and its subsidiaries are engaged in generation and
transmission of electricity in Argentina, and oil and gas
exploration and production, refining, petrochemicals and
hydrocarbon commercialization and transportation in Argentina.

As reported in the Troubled Company Reporter-Latin America in
August 2024, Fitch Ratings assigned a 'B'/'RR3' rating to Pampa
Energia S.A.'s (Pampa) proposed unsecured notes of up to USD750
million.  Net proceeds will fund any or all tender offer of its
outstanding 2027 notes and other general corporate purposes. Fitch
currently rates Pampa's Long-Term Foreign and Local Currency Issuer
Default Rating (IDR) 'B-'. The Rating Outlook is Stable.




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B R A Z I L
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AGROGALAXY: Slashes Stores and Staff in Major Restructuring Effort
------------------------------------------------------------------
Rio Times Online reports that AgroGalaxy, a leading Brazilian
agricultural inputs retailer, has announced a comprehensive
restructuring plan following its judicial reorganization filing.
The company aims to address its financial difficulties through
strategic operational changes, according to Rio Times Online.

The restructuring involves a significant reduction in AgroGalaxy's
physical presence, the report notes.  AgroGalaxy cut the number of
stores, silos, and commercial points from 169 to 74.  The company
strategically positioned these remaining locations across Brazil's
key agricultural regions, the report relays.

The workforce has also been affected, with employee numbers reduced
from 1,700 to 1,150, the report discloses.  This reduction
primarily impacts staff associated with closed units and
administrative support roles.  AgroGalaxy has committed to
respecting all labor rights for affected employees, the report
says.

Beyond physical changes, the company has optimized its product and
service portfolio, the report relays.  The sales mix has been
adjusted to better align with market demands and enhance
competitiveness, the report notes.  Customer service adaptations
include redirecting clients from closed locations to the nearest
remaining units, the report says.

AgroGalaxy's judicial reorganization filing revealed a total debt
of R$3.7 billion (US$660 million) and $160 million, the report
discloses.  These figures highlight the severity of the company's
financial challenges, the report relays.

The restructuring plan responds to several factors affecting
Brazilian agribusiness, including falling commodity prices, adverse
weather events, rising production costs, and increasing interest
rates, the report notes.

AgroGalaxy Slashes Stores and Staff in Major Restructuring Effort
Despite these challenges, AgroGalaxy has reported some positive
developments, the report relates.  The company saw a 30% growth in
order backlog between June and July 2024 and a 19.5% expansion in
gross margin in Q2 2024, the report notes.  Barter operations have
increased, now representing 42% of the business, and the specialty
product mix has grown from 9.4% to 17% year-over-year, the report
says.

As AgroGalaxy implements its restructuring plan, the company faces
the task of navigating ongoing sector-wide challenges, the report
says.  The success of these measures will be crucial in determining
the company's ability to emerge from judicial reorganization and
regain its footing in Brazil's agricultural inputs market, the
report adds.




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C A Y M A N   I S L A N D S
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MEGA MATRIX: Stockholders OK Redomicile Merger to Cayman Islands
----------------------------------------------------------------
Mega Matrix Corp. announced that its stockholders have approved the
adoption of the Third Amended and Restated Agreement and Plan of
Merger, dated as of May 31, 2024, which provides for a redomicile
of the Company to the Cayman Islands through a merger.

Pursuant to the Merger Agreement, each one share of the Company's
common stock, $0.001 par value per share, acquired prior to the
effective date will be converted into the right to receive one
Class A ordinary share, par value $0.001 per share, of Mega Matrix
Inc., an exempted company incorporated under the laws of the Cayman
Islands ("MPU Cayman"). As a result of the redomicile merger, MPU
Cayman will become the parent company of Mega Matrix.

The Redomicile Merger was expected to become effective on October
8th, and on October 9th, 2024, MPU Cayman Class A Ordinary Shares
will begin trading on the NYSE American under the trading symbol
"MPU", the same symbol as the common stock of the Company. The
CUSIP number for MPU Cayman Class A Ordinary Shares is G6005C 108.

                         About Mega Matrix

Palo Alto, Calif.-based Mega Matrix Corp. (NYSE AMEX: MPU) --
https://www.megamatrix.io/ -- is a holding company and operates
FlexTV, a short-video streaming platform and producer of short
dramas, through Yuder Pte, Ltd., an indirect majority-controlled
subsidiary of Mega Matrix.

As of June 30, 2024, Mega Matrix had $23 million in total assets,
$5.7 million in total liabilities, and $17.3 million in total
equity.

                           Going Concern

The Company cautioned in its Form 10-Q Report for the quarter ended
March 31, 2024, that there is substantial doubt about its ability
to continue as a going concern. For the three months ended March
31, 2024, and 2023, the Company reported net losses of
approximately $1.9 million and $1.2 million, respectively. In
addition, the Company had accumulated deficits of approximately
$18.3 million and $17.5 million as of March 31, 2024, and December
31, 2023, respectively. These conditions raised substantial doubt
about the Company's ability to continue as a going concern.

The Company's liquidity is based on its ability to generate cash
from operating activities and obtain financing from investors to
fund its general operations and capital expansion needs. The
Company's ability to continue as a going concern is dependent on
management's ability to successfully execute its business plan,
which includes increasing revenue while controlling operating costs
and expenses to generate positive operating cash flows and obtain
financing from outside sources.




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

DOMINICAN REPUBLIC: CHTA Warns Against Tax Reforms
--------------------------------------------------
Dominican Today reports that in a recent statement, the Caribbean
Hotel and Tourism Association (CHTA) has raised alarms regarding
proposed long-term tax reforms that could eliminate crucial fiscal
incentives for the tourism sector.  The CHTA argues that such
changes could have detrimental effects on economic development,
employment, and government revenues across the Caribbean, according
to Dominican Today.

The association emphasizes that these fiscal incentives are vital
for offsetting the high operational costs faced by businesses in
the region and play a significant role in attracting foreign
investments, the report notes.  The CHTA's statement comes in the
wake of ongoing fiscal challenges faced by Caribbean governments,
particularly in the aftermath of the COVID-19 pandemic, the report
relays.

"Tourism has been a driving force in the economic recovery of the
Caribbean, restoring jobs and government revenues more rapidly than
anticipated," said Sanovnik Destang, president of the CHTA, the
report discloses.  He highlighted that while investments in public
infrastructure, healthcare, and social services are essential,
removing tax incentives without viable alternatives could stifle
growth, reduce competitiveness, and limit job creation, the report
says.

The CHTA points out that tourism operates as an export sector,
generating foreign exchange as international visitors spend on
local goods and services, the report notes.  However, increasing
taxes on essential inputs like infrastructure and hospitality could
raise costs and push tourists toward more affordable destinations,
the report relays.  The association insists that maintaining fiscal
incentives is crucial for sustaining growth, enhancing service
quality and boosting foreign exchange earnings, the report says.

A significant challenge facing the Caribbean tourism sector is the
aging hotel product, which requires renovations to meet global
standards, the report discloses.  Without financial support, hotels
may struggle to maintain competitiveness, further jeopardizing the
region's tourism appeal, the report notes.

The CHTA also referenced successful tax reform examples, such as
Jamaica's Omnibus Incentives Act of 2013, which streamlined
fragmented incentives while encouraging investment and maintaining
tax contributions, the report relays.  In contrast, the proposed
tax reform in the Dominican Republic aims to replace a successful
incentive structure with broad tax increases, potentially
undermining tourism's role as a key economic driver, the report
says.

The association warns that recent tax hikes, such as the increase
in VAT in Antigua and Barbuda, coupled with the removal of key
incentives, are already elevating costs and threatening the
sustained recovery of the tourism sector, the report notes.

"Tourism is more than just an economic engine; it is the backbone
of our economies," Destang stated, the report discloses.  He urged
governments to consult with tourism stakeholders when designing
fiscal policies, advocating for a collaborative approach that
fosters long-term growth and enhances local participation while
increasing tax revenues, the report notes.

The CHTA remains open to working with institutions like the IMF and
the World Bank to create frameworks that support tourism growth
while addressing fiscal needs, the report relays.  "Together, we
can ensure that tourism remains central to the Caribbean's recovery
and overall community development," Destang concluded, the report
says.

As the Caribbean navigates its post-pandemic recovery, the CHTA's
call for careful consideration of tax reforms highlights the
delicate balance between fiscal responsibility and the need to
sustain a vital economic sector, the report adds.

                 About Dominican Republic

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

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

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

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.




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E C U A D O R
=============

ECUADOR: IDB Approves $150MM-Loan to Address Organized Crime
------------------------------------------------------------
The Inter-American Development Bank (IDB) approved a $150 million
loan and a $5 million grant to support Ecuador in preventing crimes
associated with organized crime groups and reducing their impunity.
Through this Program, Ecuador will expand the coverage of organized
crime prevention initiatives and support vulnerable populations,
improve the effectiveness of criminal investigations, and enhance
national and local security management capabilities.

The "Program for Prevention and Response to Violence and
Criminality in Ecuador (PREVIC), approved by the IDB Board of
Executive Directors, aims to strengthen Ecuador's security model to
prevent criminal violence and reduce the impunity of these crimes.


Despite efforts to reactivate the economy and achieve fiscal
stability, Ecuador faces multiple challenges. One of these is the
increase in criminal violence since 2018. This security crisis,
driven by the actions of organized crime groups, hinders the
country's development agenda and economic recovery.

"This is an innovative operation that will enhance the effective
presence of the state in critical areas, protecting vulnerable
areas and recruitment, strengthen financial and forensic
intelligence to reduce financial crimes, and improve coordination
at the local and regional levels," said IDB President Ilan
Goldfajn. "The current level of sophistication of organized crime
requires the region to organize and implement a regional innovative
approach. This Program in Ecuador is an example of our new
approach: a program with an integral and multisectoral focus,
combining social and police prevention, criminal investigation, and
security governance," he added.

The Program is structured around three components. The first aims
to prevent violence in high-incidence areas and the recruitment of
adolescents and young people, as well as promote support for
vulnerable populations. To this end, a new preventive police
service model will be implemented, including technological
solutions for integrated management, technical assistance and
training, the construction of police infrastructure, and support
for the school safety network.

Additionally, twelve Civic Centers for Life and Peace will be built
and launched, offering integrated services for adolescents and
young people aimed at preventing recruitment. The capacities of the
Ministry of the Interior will also be strengthened for orderly and
safe migration, including support for the implementation of the
Plan against the Illicit Trafficking of Migrants and the
regularization of the migrant population in the country.

The second component seeks to increase the effectiveness of the
investigation and prosecution of crimes associated with organized
crime groups. This will be achieved by strengthening the prevention
and detection capacities of the Ecuador Financial and Economic
Analysis Unit (UAFE, its Spanish acronym) and the National Police
of Ecuador (PNE, its Spanish acronym) for money laundering and
other crimes such as homicides and extortion. Support will also be
provided for the modernization of the chain of custody systems and
the improvement of digital forensic investigation capabilities,
including technical assistance, training, computer equipment, and
the creation of the PNE cyber center.

Finally, the third component focuses on strengthening the
capacities of the Ministry of the Interior and the Decentralized
Autonomous Governments to coordinate and implement participatory
and data-driven citizen security initiatives. The information
systems of the Ministry of the Interior and the PNE will also be
modernized, the capacity for strategic analysis of organized crime
will be improved, and a technical and academic management model for
the Universidad de Seguridad Ciudadana y Ciencias Policiales will
be developed. Additionally, a program to strengthen local
governance of citizen security will be implemented, with a
technological platform for training and monitoring and technical
assistance for the design of municipal security plans with a gender
and diversity perspective.

This Program aligns with the IDB's Framework to Support Populations
in Situations of Fragility, Conflict, and Criminal Violence (FCVC)
and is part of the actions planned under the Alliance for Security,
Justice, and Development, presented by the IDB and the Ministry of
the Interior of Ecuador in August this year.

The $150 million IDB loan has a repayment term of 25 years, a five
and a half years grace-period, and an interest rate based on
Secured Overnight Financing Rate (SOFR). The Program is
complemented by a $5 million non-reimbursable grant from the IDB's
Special Donations Fund.




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J A M A I C A
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JAMAICA: BOJ Intervenes in Forex Market for Third Time
------------------------------------------------------
RJR News reports that the Bank of Jamaica intervened in the foreign
exchange market for the third time with another US$30 million.
This brings the total of US$90 million from the Net International
Reserves, according to RJR News.

Of the latest amount, the largest share of US$6 million was sold to
NCB, followed by US$5.25 million to JN Bank and US$3.5 million was
sold to VM Group - all at a rate of $158.61 to US$1, the report
notes.

The Jamaican dollar has been under pressure for months due to a
significant trade deficit and shrinking remittance inflows, the
report relays.

Trading ended with banks and cambios selling the US dollar for an
average $158.93, the report says.

The Canadian is going for $114.93, the report notes.

The average cost of the pound $206.85, while $175.88 is the average
value of the euro, 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.  In September 2023, S&P
Global Ratings raised 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', with a stable outlook.  In September 2024, S&P
affirmed 'BB-/B' sovereign ratings on Jamaica and revised outlook
to positive.  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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M E X I C O
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GRUPO ELEKTRA: S&P Assigns 'BB-' LongTerm ICR, Outlook Negative
---------------------------------------------------------------
S&P Global Ratings assigned its 'BB-' long-term issuer credit
rating on Grupo Elektra S.A.B. de C.V. (GE).

The negative outlook indicates S&P's view that over the next 12
months, GE's credit quality is exposed to several risks, including
the potential materialization of significant tax contingencies and
slower economic growth. Depending on the magnitude of the impact,
those could weaken its financial and/or liquidity position, and
ultimately result in a one or more notches downgrade.

GE has several ongoing disputes with the Mexican tax authority
related to potential miscalculation of tax payment in previous
years. S&P said, "We believe these disputes are a significant risk
to GE's credit quality because if these contingencies materialize,
they could weaken the financial and liquidity position of its
retail division. In our view, the timing and potential result of
these disputes remain uncertain at this point. We will closely
monitor how these disputes evolve, particularly those related to
fiscal years 2008 and 2013, which are pending to be discussed at
the Mexican Supreme Court of Justice."

S&P said, "In addition, although currently not incorporated in our
base case, a deterioration in GE's standing in credit markets, amid
share price volatility, could also lead us to reassess our
liquidity assessment and could pressure the rating if we think the
company would face significant refinancing risks.

"Lastly, in our view, consumers will continue to face challenging
macroeconomic conditions in the next 12 months, given an expected
economic slowdown amid still-high general prices and interest
rates. The company's retail division has a long record of revenue
growth despite challenging economic conditions, partially explained
by the support provided by its financial arm toward granting credit
to customers. However, if demand is weaker than we expect and
considering the fierce competition, we think GE could be more
aggressive toward discounts, leading to lower profitability and
cash flows.

"With 1,372 stores and MXN75.8 billion in sales in the 12 months
ended June 2024, we consider GE's retail division to be midsize
compared with those of department stores and specialty retailers we
rate across Latin America, such as Falabella S.A. (BB+/Negative/--)
or El Puerto de Liverpool S.A.B. de C.V. (BBB/Stable/--).

"Moreover, we view GE's geographic diversification as limited
because it generates close to 90% of its revenue in Mexico. Over
the next few years, we expect the company to continue consolidating
its participation through new stores and its omnichannel strategy
in Mexico's growing market. GE's retail division has a solid market
share in Mexico across key categories, such as motorcycles and
money transfers. The company holds about 60% of the motorcycles
market and more than 40% share of the money transfers paid in
Mexico; together they represent more than 40% of GE's total retail
sales.

"In our opinion, GE is well-positioned and focused on targeting the
low- to middle-income segments, which account for the vast majority
of Mexico's population."

The retail division offers a wide variety of products ranging from
motorcycles (about 39% of revenue in the 12 months ended June
2024), mobile phones (17%), white goods (12%), services not related
with merchandize (6%), and electronics, furniture, computers, and
others (26%). Although most of these products are also offered by
well-known and large local competitors, S&P believes that GE's
in-house brand revenues, mainly coming from Italika motorcycles,
and pricing strategies have enabled the company to keep adjusted
EBITDA margins in line with the average of those of global
department stores and specialty retailers.

In the past few quarters, GE's retail division has posted
sequential improvements in EBITDA, cash flow, and credit metrics,
underpinned by several actions it has taken to improve its
operating and financial performance.

S&P said, "We expect this gradual recovery to continue in the next
12 months, with revenue growth above 9% and adjusted EBITDA margin
over 15%, which should translate into adjusted FFO above MXN4.6
billion. These metrics, coupled with low capital expenditure
(capex) needs now that most of the investments related to GE's
omnichannel strategy and "baz" super app have been completed,
should help the retail division continue improving its credit
metrics. Thus, we forecast adjusted FFO to debt of about 16% and
EBITDA interest coverage of about 2.5x by year-end 2025, which is
commensurate with the current 'bb-' stand-alone credit profile
(SACP)."

These factors include the lack of public transportation
infrastructure in Mexico, a steadily expanding customer base, and
increasing remittances from the U.S. to Mexico. S&P said, "In
addition, we believe a competitive advantage is that the financial
division, through BAZ, will continue to fuel GE's retail division
operating performance. BAZ is the main source of credit for
customers in the company's retail division. We also believe BAZ
acts as a high barrier to entry for competition for sales granted
through credit, although we see high competition for cash sales."

The bank is the ninth-largest player in the banking system in terms
of assets, with a broad geographic footprint in most Mexican
states. Moreover, the group has sound business diversification
through its nonbanking divisions, which provides stability and
internal efficiencies.

S&P said, "In our opinion, the bank's strategy will remain focused
on personal and consumption-linked lending, which will translate
into loan portfolio growth averaging 6% for the next 12 months.
This growth will also continue supporting the bank's stability in
terms of business volumes and operating revenue growth.
Additionally, the bank will maintain efforts to increase its
commercial portfolio to take advantage of potential cross-selling
strategies. However, we think this strategy will be gradual amid
the expected economic slowdown in the next few years.

"BAZ's strong net interest margin (NIM) is partly offset by its
high operating costs and reserve requirements. Therefore, we
project the bank's return on assets (ROA) will be 1.0% on average
during the next 12 months, which is significantly below the Mexican
banking system's average of 1.8%.

"Furthermore, we expect the bank's internal capital to be
sufficient to support modest growth on its balance sheet and will
support our forecast risk-adjusted capital (RAC) ratio of about
8.4% for the next 12 months. The latter considers loan portfolio
growth of about 6% for the same timeframe, cost to income of about
74%, cost of risk of around 9.9%, and net dividend of MXN200
million in 2024."

BAZ serves a segment of the population that other banks generally
don't because some of its clients belong to the informal sector.
S&P expects nonperforming assets (NPAs) of around 3.5% and net
charge-offs (NCOs) of about 10.0% for the next 12 months,
significantly above 2.4% and 2.3%, respectively, for the Mexican
banking system.

Finally, the bank has high customer concentration in its commercial
loan portfolio. Its top 20 clients represent about 27% of the total
portfolio. In S&P's opinion, this represents an additional risk
because it could further erode asset quality metrics, as has
happened in the past.

S&P said, "In our view, one of the bank's major strengths is its
sound funding profile, supported by a pulverized retail deposit
base that accounts for about 90% of its total funding. We think
this represents a more stable funding source during economic
downturns and is in line with the Mexican banking system's funding
composition." Moreover, the bank benefits from a sound liquidity
cushion -- with broad liquid assets mainly composed of government
securities -- with no upcoming maturities in the next 12 months.


MEXICO REMITTANCES: S&P Gives Prelim. 'BB+' Rating on 2024-1 Notes
------------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' preliminary rating to Mexico
Remittances Funding Fiduciary Estate's $500 million series 2024-1
fixed-rate notes due in 2031.

At closing, Mexico Remittances Funding Fiduciary Estate, a
special-purpose vehicle (SPV), which is an unregulated
securitization fund in the form of a fiduciary estate organized
under the laws of Luxembourg, will issue Rule 144A/Reg S $500
million series 2024-1 fixed-rate notes due 2031.

The preliminary rating is based on information as of Oct. 21, 2024.
Subsequent information may result in the assignment of a final
rating that differs from the preliminary rating.

The preliminary rating reflects:

-- S&P's view on NEM's ability and willingness to remain in the
money transfer business and to continue to generate sufficient cash
flows to service the transaction, as captured in its corporate
performance assessment, which is closely related to the issuer
credit rating (ICR) on NEM.

-- NEM's relative strength on its remittances business line, which
is based on leading position in the remittances market, its solid
track record, and a solid brand recognition.

-- S&P's expectation of the timely payments of periodic interest
and principal according to the transaction documents, based on
stressed cash flow modeling scenarios, using assumptions
commensurate with a default scenario on NEM.

-- Solid quarterly debt service coverage ratios. Under S&P's cash
flow analysis, it modelled a base-case scenario and a default case
scenario on which it assumed NEM has defaulted on its obligations,
and the securitized cash flows drop 40%. The transaction presented
a minimum quarterly debt service coverage ratio of 36x.

-- The transaction's underlying payment structure, legal
structure, and cash flow mechanics.

-- The deal's bank accounts, which do not constrain the
preliminary rating assigned.


NUEVA ELEKTRA: S&P Assigns LT 'BB-' ICR, Outlook Negative
---------------------------------------------------------
S&P Global Ratings assigned its 'BB-' long-term issuer credit
rating to Mexican retailer Nueva Elektra del Milenio S.A. de C.V.
(NEM).

The rating reflects NEM's extensive and cutting-edge distribution
network as well as its successful merchandising strategy in Mexico,
focusing on the middle- to low-income segments of the population.
It also has a leading market position in Mexico's money transfer
segment and solid brand positioning, while building customer
loyalty through its synergies with the financial division of its
parent Grupo Elektra S.A.B. de C.V. (GE; BB-/Negative/--).

Some offsetting factors are its medium scale of operation in the
highly competitive retail market, operations mostly in a single
country, limited product differentiation offering,
below-sector-average EBITDA margins, and our expectation of
adjusted funds from operations (FFO) to debt of slightly above 20%
and EBITDA interest coverage trending toward 2.0x by the end of
2025.

The negative outlook on NEM reflects that on its parent, which in
turn reflects GE's exposure to several downside risks in the next
12 months, including the potential materialization of significant
tax contingencies and slower economic growth. These factors could
weaken GE's financial and/or liquidity position, and ultimately
result in a one or more notches downgrade.

S&P said, "This is because our rating on the parent caps the rating
on NEM, given that it's not an insulated subsidiary. GE has several
ongoing disputes with the Mexican tax authority related to
potential miscalculation of tax payments in previous years. We
believe these disputes represent a significant risk to GE and NEM's
credit quality because if these contingencies materialize, they
could weaken both entities' financial and liquidity positions. In
our view, the timing and potential resolution of these disputes
remain uncertain at this point. Thus, we will closely monitor them,
particularly those related to fiscals 2008 and 2013, which are
pending to be discussed at the Mexican Supreme Court of Justice.
The tax disputes are at the parent level but could have an impact
on NEM. This is because we believe that GE could use some of NEM's
cash if some of the potential tax contingencies materialize.

"In our opinion, NEM is integral to GE's current identity and
future strategy, and that the rest of the group is likely to
support NEM under any foreseeable circumstances, and vice-versa.
This is because GE acts as an unconditional and irrevocable
guarantor of NEM's senior notes due 2028. NEM manages GE's retail
stores, where both the commercial and financial divisions benefit
from dealing with a company that is a related party. In addition,
NEM grants loans to the group's other entities and provides
administrative and payroll services to other companies within GE.
Moreover, we believe that NEM is closely linked to the group's
reputation, brand, and risk management, as it shares the same
brands, as well as top management and board of directors. Finally,
we believe NEM has been established as a separate entity for
regulatory and tax purposes, but it adheres to the group's
operating and financial strategy."

With more than 70 years of operations, NEM has established a
well-recognized brand "Elektra" in Mexico. It mainly operates
through 1,308 Elektra stores strategically located across Mexico
and Central America, mostly serving the medium- and low-income
segments of the population. NEM also benefits from its parent's
banking division (BAZ) that serves clients who are usually
underserved by traditional banks. In S&P's view, this is a
competitive advantage that acts as a barrier to entry for new
players. Moreover, given its relationship with the group's banking
financial arm, NEM controls roughly half of Mexico's money transfer
segment. This enhances NEM's brand recognition and generates
customer loyalty.

During the 12 months ended June 2024, NEM posted MXN64.5 billion
($3.7 billion) in revenue, making it a medium-size player compared
with its regional rated industry peers such as El Puerto de
Liverpool S.A.B. de C.V. (BBB/Stable/--) with $10.8 billion in
revenue or Falabella S.A. (BB+/Negative/--) with $10.7 billion.
Although operating throughout Mexico, with 91% of its stores being
in that market, the remaining 9% are in Central America, exposing
the company to Mexico's economic conditions. In addition, the
company has a diversified product mix in Mexico and Central
America, with mobile phones accounting for 38.3% of inventory
retail sales for the FYE2023, white goods (23.4%), and electronics
(16.3%), although with no clear product differentiation from those
of other local retailers.

NEM's EBITDA margin has averaged 7.5% for the past three fiscal
years, and S&P expects it to be near 7.0% for the next 12 months.
This is because about 40% of its inventory sales come from GE's
other entities, generating margins of around 1%, while the
remainder comes from the public with operating margins of up to
20%. Moreover, NEM provides administrative services, mostly payroll
for GE's other companies, denting its overall profit margins.

S&P said, "Our forecast incorporates NEM's revenue growth of
6.5%-8.5% and EBITDA margin of 6%-7% for the next 12-18 months. The
supporting factors will be steady consumption trends at its retail
unit and continuing growth of its money transfer business. We
believe that NEM's cash flow will be sufficient to cover working
capital needs and capital expenditure (capex), and we expect the
company to refinance its $325 million outstanding senior notes due
2028 with new $500 million senior notes. We expect the new notes to
have very similar terms and conditions to those of the existing
ones, but at a higher rate given current market conditions. As a
result, we anticipate a spike in gross debt, and NEM's adjusted
debt to EBITDA, FFO to debt, and EBITDA interest coverage to reach
about 2.0x, 22.2%, and 1.9x by the end of 2025, respectively."




=====================================
T R I N I D A D   A N D   T O B A G O
=====================================

TRINIDAD & TOBAGO: Inflation Steady at 0.4%, CSO Says
-----------------------------------------------------
Roberto Codallo at Trinidad and Tobago Guardian reports that
Trinidad and Tobago inflation rate for September has remained the
same, food inflation however, has increased.

This is according to the Consumer Price Index for the month of
September 2024 which was released by the Central Statistical Office
(CSO), the report notes.

In a news release, the CSO stated the inflation rate for September
2024, which measures the percentage change in the all-items index
for the month of September 2024 over September 2023, was 0.4 per
cent, according to Trinidad and Tobago Guardian.

This represented no change from the previous period (August
2024/August 2023), the report relays.

The inflation rate for the comparative period (September
2023/September 2022) was 3.9 per cent, the report notes.

The CSO also noted that the all-items index calculated from the
prices collected for the month of September 2024 was 124.1,
representing an increase of 0.2 points of 0.2 per cent above the
all-items index for August 2024, the report says.

It also noted that the index for food and non-alcoholic beverages
increased from 149.2 in August 2024 to 150.2 in September 2024,
reflecting an increase of 0.7 per cent, the report discloses.

Contributing significantly to this increase was the general upward
movement in the prices of fresh whole chicken, cucumbers, carrots,
parboiled rice, oranges, irish potatoes, bodi, cabbage, ripe
bananas and cheddar cheese, the report relays.

However, the full impact of these price increases were offset by
the general decreases in the prices of ochroes, onions, white
flour, hot peppers, pumpkin, garlic, green sweet peppers, chocolate
malt beverages eggs and eddoes, the report notes.

The CSO added that a further review of the data for September 2024
compared with August 2024 reflected increases in the sub-indices
for alcoholic beverages and tobacco of 0.3 per cent and health of
0.2 per cent, the report says.

This period also showed a decrease in the sub-index for clothing
and footwear of 0.2 per cent, the report relates.

All other sections remained unchanged, the report adds.



                           *********


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