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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

          Thursday, November 14, 2024, Vol. 25, No. 229

                           Headlines



A R G E N T I N A

ARGENTINA: Cuts Benchmark Rate to 35% on Cooling Inflation
ARGENTINA: IDB OKs $30M-Loan to Promote Improvements in Literacy


B A H A M A S

FTX GROUP: Scaramucci, SkyBridge Capital Face Clawback Suit


B R A Z I L

BARBADOS: Has IMF Staff-Level Deal for Potential US$57MM Funding


M E X I C O

BANORTE: Moody's Rates Non-Cumulative AT1 Notes 'Ba2(hyb)'
BANORTE: S&P Assigns 'BB-' Rating on Tier 1 Hybrid Notes
BUPA MEXICO: A.M. Best Hikes Financial Strength Rating to B-(Fair)

                           - - - - -


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

ARGENTINA: Cuts Benchmark Rate to 35% on Cooling Inflation
----------------------------------------------------------
globalinsolvency.com, citing Bloomberg News, reports that
Argentina's central bank lowered its benchmark interest rate for
the first time in nearly six months as President Javier Milei
continues to oversee a slowdown in inflation.

The monetary authority cut borrowing costs to 35% from 40%,
according to a press release sent via text message, citing
globalinsolvency.com.  The decision is based on the country's
liquidity context, the lowering of consumer price expectations and
the government's fiscal anchor, the bank said, the report notes.

Argentina also reduced rates for notes known locally as pases to
40% from 45%, the report relays.

Meanwhile, Olivera Doll at Bloomberg News reports that President
Javier Milei's crusade against inflation has gotten off to an
uneven start in year one.  The annual rate, while slowing, remains
above 200% but investors are betting that next year will bring far
greater progress, predicting the rate will steadily plunge, the
report says.

Pricing in the local bond market indicates traders foresee the
monthly inflation rate dropping to 1.9%, dragging the annual rate
down to 25%, according to PPI, a local brokerage, Bloomberg News
reports.  That's below the 35% rate consensus forecast by
economists and would mark the lowest annual rate in seven years,
Bloomberg News points out.

Argentines have lived through triple-digit annual price increases
for almost two years, Bloomberg News notes.  The cost of living has
come down but remains elevated, hitting an annualized rate of 209%
in September compared to its previous peak of 289.4% in April and
138% during the prior-year period, according to statistics agency
INDEC, Bloomberg News notes.

                    Political Affinity

Ariel Maciel at Buenos Aires Times reports Donald Trump's victory
in the recent United States election has created a scenario of
conflicting expectations among Argentina's business leaders.
Trump's political affinity with President Milei has enthused
businessmen, who envisage their relationship will serve as an
acceleration of their country's reinsertion into the world,
according to Buenos Aires Times.  Yet they are also worried by
Trump's planned economic restructuring of the United States and a
new form of US protectionism that would be in competition with some
sectors of the local economy, the report notes.

Company owners, sector leaders and local analysts highlight the
importance of the Western alignment proposed by Milei since the
start of his Presidency in the framework of Argentina's return to
international markets, the report relays.

"If he gets the support of Trump, the country can seal a deal with
the International Monetary Fund to permit a faster exit from the
'cepo' [currency controls], which is the gateway to investments,
after which the legal conditions for doing business can be set,"
one source in the business community told Perfil, the report
discloses.

Representatives from the domestic private sector has requested the
design of a strategy "complementary to the protectionist economic
plan of Trump," thus avoiding a competition between products, the
report notes.

According to the report, the resurgence of bilateral or regional
trade agreements (like the frustrated Free Trade Area of the
Americas, or ALCA in its Spanish acronym) is starting to look like
a concrete agenda after the U.S. election results.

The geopolitical and commercial dispute between the United States
and China could also be a "window of opportunity" for Argentina,
the report relays.

                          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% of quota).  The IMF Executive Board's decision allowed for
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.

In March 2024, S&P 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 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).

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: IDB OKs $30M-Loan to Promote Improvements in Literacy
----------------------------------------------------------------
The Inter-American Development Bank (IDB) has approved a $300
million loan to support early literacy in Argentina. It is the
first individual operation of a conditional credit line for
investment projects to support the improvement of comprehensive
literacy in the country for up to $1 billion.

The program aims to improve teaching of reading skills in basic
education by training 390,000 teachers for reading instruction,
among other initiatives.

The operation will finance the maintenance and expansion of the
number of public primary schools that incorporate additional time
for teaching reading skills.

Despite the high level of participation in the educational system,
not all students acquire the necessary skills in their educational
journey. Learning difficulties are linked to the limited
development of foundational skills including basic math, the use of
digital technologies, and science. These skills are known as
comprehensive literacy.

The loan, the first individual operation of a conditional credit
line for investment projects (CCLIP), will finance the delivery of
books for primary students, books for students with hearing or
visual disabilities, mobile libraries, and literacy kits, among
other resources.

The program will also allow technical teams to better monitor and
evaluate educational programs and improve coordination between the
national and subnational levels of the education system.

The IDB loan of $300 million has a disbursement period of four
years and an interest rate based on SOFR.

                          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% of quota).  The IMF Executive Board's decision allowed for
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.

In March 2024, S&P 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 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).

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




=============
B A H A M A S
=============

FTX GROUP: Scaramucci, SkyBridge Capital Face Clawback Suit
-----------------------------------------------------------
Anthony Ha at techcrunch.com reports that the bankruptcy estate of
FTX filed 23 lawsuits against Anthony Scaramucci, his hedge fund
SkyBridge Capital, and other organizations including Crypto.com and
the Mark Zuckerberg-backed lobbying group Fwd.us.

These lawsuits are an attempt to claw back money for FTX's
creditors following the company's collapse, according to
techcrunch.com.  FTX claims the money targeted in these suits was
part of "a campaign of influence-buying" by founder and CEO Sam
Bankman-Fried, conducted as the company was struggling to meet its
own cashflow needs, the report notes.

The lawsuit claims, "These 'investments' conveyed little to no
benefit to Debtors, and instead served only to prop up
Bankman-Fried's standing in the worlds of politics and traditional
finance," which he then attempted to leverage as "potential sources
of equity investment in FTX to fill the hole in the balance sheet
and, therefore, keep his scheme afloat," the report relays.

In the case of SkyBridge and Scaramucci -- a financier who briefly
served as White House Communications Director under Donald Trump --
FTX announced it was acquiring a 30% stake in SkyBridge in
September 2022, just a few months before FTX went bankrupt and
Bankman-Fried was arrested, the report notes.

According to the lawsuit, FTX also paid $12 million to sponsor
Scaramucci's SALT conferences and invested $10 million in the
SkyBridge Coin Fund, the report discloses.  In return, FTX claims
Scaramucci took Sam Bankman-Fried on "a whirlwind tour of the U.S.
and the Middle East" to pitch potential investors, with Scaramucci
"so invested in the success of Bankman-Fried's fundraising efforts
that he lent Bankman-Fried his own suit and tie in advance of their
meetings so that Bankman-Fried wouldn't show up to important
meetings in his trademark shorts and a t-shirt," the report says.

The Fwd.us lawsuit, meanwhile, describes payments from FTX's
corporate sibling Alameda Research to Fwd.us as "part of an
integrated plan by the FTX Insiders to siphon money from FTX Group
creditors and enhance their own personal reputations at the expense
of creditors," the report adds.

SkyBridge and Fwd.us did not immediately respond to TechCrunch's
request for comment.

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.  

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
===========

BARBADOS: Has IMF Staff-Level Deal for Potential US$57MM Funding
----------------------------------------------------------------
RJR News reports that a delegation from the International Monetary
Fund has reached a staff-level agreement with the Barbados
government that could result in US$57 million in funding.

The delegation discussed the implementation of the island's
Economic Recovery and Transformation (BERT 2022) plan, supported by
the IMF under the Extended Fund Facility, and the implementation of
reform measures under the Resilience and Sustainability Facility
arrangement, according to RJR News.

The agreement is subject to approval by the IMF Executive Board,
the report notes.

The IMF says between January and September this year, the Barbadian
economy grew by an estimated 3.9 per cent year-on-year, driven by
dynamism in the tourism and construction sectors, the report adds.




===========
M E X I C O
===========

BANORTE: Moody's Rates Non-Cumulative AT1 Notes 'Ba2(hyb)'
----------------------------------------------------------
Moody's Ratings has assigned a Ba2 (hyb) foreign currency preferred
stock non-cumulative rating to Banco Mercantil del Norte, S.A.
(Cayman I)'s proposed issuance of perpetual callable subordinated
non-preferred non-cumulative Additional Tier 1 (AT1) capital notes,
with an optional redemption on first call date and on any interest
payment date thereafter. The Contingent Non-Convertible Capital
Notes will be issued through Banco Mercantil del Norte, S.A.'s
(Banorte, Baa1 stable, baa2) Cayman Islands branch. The capital
notes will be split into two tranches with first call dates in 6.5
and 10.5 years.

RATINGS RATIONALE

The Ba2 (hyb) preferred stock non-cumulative rating for the AT1
securities, reflects Moody's assessment of the notes' deeply
subordinated claim in liquidation, as well as their non-cumulative
coupon deferral features, and the limited protection from residual
equity. The notes are senior only to Banorte's capital instruments
that qualify as Common Equity Tier 1 (CET1) and are positioned
three notches below its baa2 Adjusted Baseline Credit Assessment.

Under the terms of the notes, principal will be partially or fully
written down in the event that (i) the bank's fundamental capital
ratio, as calculated pursuant to applicable Mexican capitalization
regulations, is equal to or below 5.125%; (ii) the bank's license
is revoked, or (iii) if Mexico's Banking Stability Committee makes
a determination that Banorte requires financial assistance, prior
to the revocation of its license, in order to avoid a systemic
risk.

In the case that any of the aforementioned events occur, the notes
would be written down, together with any concurrent pro rata write
down or conversion of any other subordinated non-preferred
indebtedness issued by the bank and then outstanding, in an amount
sufficient to return the bank's Common Equity Tier 1 (capital
básico fundamental, or CET1) ratio to the minimum level required
by local regulations at that time and to restore any
countercyclical and/or systemically important bank (D-SIB)
supplemental capital requirements then in place.

Under the Mexican banking regulation, the minimum CET1 ratio is 7%,
plus the D-SIB requirement of 0.9%. In September 2024, Banorte
reported a Common Equity Tier 1 (CET1, capital fundamental) ratio
of 13.9%, which was well above the write-down trigger of 5.125%.
Banorte's total loss absorption requirement capital requirement
when fully implemented will be 17.9%, well below its total
regulatory capital ratio of 19.2% as of June 2024.

Banorte will automatically cancel interest due on the notes if (a)
the bank is classified as Class II or below pursuant Articles 121
and 122 of the Mexican Banking Law, or (b) the bank is classified
as Class II or below as a result of the applicable interest
payment. Based upon current regulations, the bank will be
classified as Class II if its capital levels fall below the
following minimum thresholds: 10.5% for the Total Capital (Capital
Neto) ratio, 8.5% for the Tier 1 (Capital Básico) ratio, and 7.0%
for the CET1 ratio. The bank will also be classified as Class II if
it fails to meet any additional D-SIB and countercyclical capital
supplements required by the regulator.

In addition to the contractual write-down provisions, interest on
the notes will be due and payable subject to Banorte's sole and
absolute discretion, always and for any reason, to cancel any
interest payment in whole or in part. These notes constitute
subordinated non-preferred indebtedness and will rank: (i)
subordinate and junior in right of payment and in liquidation to
all of the bank's present and future Senior Indebtedness; (ii) pari
passu without preference among themselves and with all the bank's
present and future other unsecured Subordinated Non-Preferred
Indebtedness and; (iii) senior only to all classes of the bank's
equity or capital stock.

Despite the moderate probability that the government will support
Banorte's depositors considering the bank's large deposit market
share of 13.6% in June 2024, the ratings assigned to these notes do
not benefit from uplift stemming from government support because
they are intended to provide loss absorption.

Banorte's baa2 baseline credit assessment (BCA) and Adjusted BCA
reflect the bank's disciplined risk management and conservative
underwriting processes that have supported steadily low problem
loans and ample loan loss reserves over the past four years. The
bank's good levels of capitalization results from its robust
earnings generation that benefits from business diversification and
a deep core funding mix with limited reliance on market funding.

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

Upward ratings pressure is limited given that Banorte's baa2 BCA is
at the same level as the Baa2 bond rating of the Government of
Mexico.

Conversely, Banorte's BCA would be downgraded if there is a
significant decline in the bank's core capitalization or
substantial deterioration in its asset quality. A downgrade of the
Government of Mexico's Baa2 bond rating would exert pressure on
Banorte's BCA.

The principal methodology used in these ratings was Banks
Methodology published in March 2024.


BANORTE: S&P Assigns 'BB-' Rating on Tier 1 Hybrid Notes
--------------------------------------------------------
S&P Global Ratings assigned its 'BB-' long-term issue-level rating
to the proposed perpetual, callable, subordinated, nonpreferred,
noncumulative, Tier 1 capital notes to be issued by Banco Mercantil
del Norte S.A. Institucion de Banca Multiple Grupo Financiero
Banorte (Banorte) through its Grand Cayman Branch.

S&P believes that the notes of up to $1.5 billion will complement
Banorte's (BBB/Stable/A-2) financial strategy and strengthen its
regulatory capitalization ratios as part of its asset and liability
management. Banorte will issue the notes through two tranches: the
first callable at 6.5 years, and the second at 10.5 years.

The 'BB-' issue rating on the proposed notes is four notches below
S&P's 'BBB' long-term issuer credit rating on Banorte, reflecting:

-- One notch because the notes are contractually subordinated to
other senior debt;

-- Two notches to reflect the notes' discretionary coupon payments
and regulatory Tier 1 capital status; and

-- An additional notch for the mandatory contingent capital clause
that would lead to a principal write-down.

Once Banorte's proposed notes have been issued and confirmed as
part of its Tier 1 capital base, S&P will assign them intermediate
equity content in accordance with its criteria. This reflects its
understanding that the notes:

-- Are perpetual regulatory Tier 1 capital instruments with a call
date that S&P expects to be above five years from issuance;

-- Have no step-up clause that could increase the incentive to
redeem the notes;

-- Can absorb losses on a going-concern basis through the
nonpayment of coupons and principal write-down; and

-- There are no material restrictions on deferrals because the
bank can discretionally suspend coupon payments.

S&P said, "According to our criteria, a hybrid capital instrument
with intermediate equity content is eligible to be included in the
total adjusted capital (TAC) calculation until the aggregate amount
of all instruments with intermediate equity content is equivalent
to up to 33% of the bank's adjusted common equity (ACE). As of
Sept. 30, 2024, Banorte's outstanding hybrid capital issuances with
intermediate equity content already exceeded our 33% threshold of
its ACE base. Therefore, the proposed issuance wouldn't be included
in Banorte's TAC until the bank's internal capital generation
increases its ACE base, allowing Banorte's TAC to gradually
incorporate this issuance and potentially strengthen its
risk-adjusted capital (RAC) ratio. As a result, our forecast RAC
ratio is unchanged and the issuance doesn't affect Banorte's
capital and earnings, which we assess as strong. We forecast a RAC
ratio for Banorte of 10.3%-10.6% for the next two years.

"The proposed notes also don't affect our view of Banorte's funding
and liquidity assessments. The notes won't significantly modify the
bank's funding mix. Banorte has a sound and diversified funding
structure, mostly consisting of well-diversified core customer
deposits, which remain its main source of funds. The bank held
13.55% of total deposits in Mexico as of Sept. 30, 2024.

"Our ratings on Banorte reflect its solid market position,
historical business stability, and resilient earnings capacity
despite challenging market and economic conditions. The ratings
also reflect the bank's healthier asset quality metrics than those
of the Mexican banking system, solid RAC levels, and adequate
funding structure that also supports its liquidity. As a result of
these factors, Banorte's stand-alone credit profile (SACP) is
'bbb+'."


BUPA MEXICO: A.M. Best Hikes Financial Strength Rating to B-(Fair)
------------------------------------------------------------------
AM Best has upgraded the Financial Strength Rating to B- (Fair)
from C++ (Marginal), the Long-Term Issuer Credit Rating to "bb-"
(Fair) from "b+" (Marginal), and the Mexico National Scale Rating
to "a-.MX" (Excellent) from "bbb.MX" (Good) of BUPA México,
Compañía de Seguros, S.A. de C.V. (Bupa Mexico) (Mexico). The
outlook of these Credit Ratings (ratings) is positive.
Concurrently, AM Best has withdrawn these public ratings of Bupa
Mexico per the company's request.

The ratings reflect Bupa Mexico's balance sheet strength, which AM
Best assesses as weak, as well as its adequate operating
performance, limited business profile and appropriate enterprise
risk management.

The rating upgrades and positive outlooks reflect sustained
improvement in the company's balance sheet strength, underpinned by
risk-adjusted capitalization supportive of the adequate level, as
measured by Best's Capital Adequacy Ratio (BCAR), following the
previous change in its reinsurance program, and fully retained
quality business.

Bupa Mexico is a subsidiary of The British United Provident
Association Limited and is tied to the Bupa group's commercial
strategy of expanding into Mexico's insurance market by leveraging
its brand. Bupa Mexico's focus is on the individual and group major
medical coverage segment, while the individual lines segment
represents its biggest share of business, at approximately 90%. The
company's target market has been small clients with high net worth;
however, it has diversified by opening coverage to other sectors,
with a higher volume of lower premium business.

The company's historically favorable financial flexibility was
achieved through the capital and reinsurance support historically
provided by its ultimate parent. Beginning in third-quarter 2021,
changes in the Mexico-based subsidiary's reinsurance program
significantly raised its underwriting risk, pressuring its BCAR.
Nonetheless, the company's flagship business, which previously was
ceded for the most part, historically has demonstrated operating
performance in line with industry benchmarks, enhancing the
company's balance sheet strength assessment.

Bupa Mexico's business volume has outpaced the market for the past
five years, resulting in a compound annual growth rate of 12%.
However, an offsetting rating factor is the small size of the
subsidiary, reflected in a market share of over 3% (as of December
2023) in an industry led by bigger participants. As of September
2024, Bupa Mexico posted a positive bottom-line result of MXN 155.4
million, which was mainly a result of contained claims, as well as
its internal service team, which includes synergies between areas
of customer service and a core business system. The company also
has continued to reduce operating expenses; however, a challenging
and concentrated operating environment raises uncertainty and could
affect new business strategy.

Positive rating actions could occur as a result of sustained
improvement in Bupa Mexico's balance sheet strength underpinned by
risk-adjusted capitalization above the adequate level. Negative
rating actions could occur if the strategic importance of the
company to Bupa group decreases, which could diminish AM Best's
opinion of parental support toward the Mexico-based subsidiary.
Negative rating actions could also take place if balance sheet
strength deteriorates to levels no longer supportive of the
ratings.

The methodology used in determining these ratings is Best's Credit
Rating Methodology (Version Aug. 29, 2024), which provides a
comprehensive explanation of AM Best's rating process and contains
the different rating criteria employed in the rating process.


                           *********


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
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