/raid1/www/Hosts/bankrupt/TCRLA_Public/241118.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
Monday, November 18, 2024, Vol. 25, No. 231
Headlines
A R G E N T I N A
ARGENTINA: Recession "Over," Milei Tells Business Leaders
YPF SA: US Intervenes in Funds' Attempt to Embargo Assets
B A H A M A S
[*] BAHAMAS: Fights "Bad Press" With $10M PR Campaign
B E R M U D A
NABORS INDUSTRIES: Fitch Affirms 'B-' LongTerm IDR, Outlook Stable
NABORS INDUSTRIES: The Vanguard Group Holds 7.10% Equity Stake
B R A Z I L
BANCO DE BRASILIA: Fitch Removes Neg. Watch on 'B-' LT IDRs
C O L O M B I A
FRONTERA ENERGY: Fitch Affirms 'B' Long-Term IDRs, Outlook Stable
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Ex-Minister Discusses Trump Policies Impact
H O N D U R A S
TEGUCIGALPA: Fitch Affirms 'B' LongTerm IDRs, Outlook Stable
J A M A I C A
JAMAICA: BOJ Says Bids for Treasury Bills Will be Settled
JAMAICA: Posts $452.65BB in Revenues and Grants from April-Sept
NCB FINANCIAL: Fitch Publishes 'B+' Long-Term IDRs, Outlook Pos.
TRANSJAMAICAN HIGHWAY: Fitch Affirms 'BB' Sr. Secured Notes Rating
[*] JAMAICA: Exporters Urged to Diversify Markets
P E R U
BANCO INTERAMERICANO: Fitch Affirms BB+ LT IDR, Outlook Now Stable
X X X X X X X X
[*] BOND PRICING: For the Week from Nov. 11 to 15, 2024
- - - - -
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A R G E N T I N A
=================
ARGENTINA: Recession "Over," Milei Tells Business Leaders
---------------------------------------------------------
Buenos Aires Times reports President Javier Milei said Argentina
has overcome recession and is showing signs of recovery. "The
recession is over. We are emerging from the desert, the country
has finally begun to grow," President Milei told business leaders
at an event celebrating the centenary of the Camara Argentina de
Comercio y Servicios chamber group in Buenos Aires, according to
the report.
"The period of pain is over," President Milei saod.
The report notes recent data from the INDEC national statistics
institute showed that the country's industrial production grew 2.6%
in September compared to the previous month and construction
increased 2.4% compared to August, although both indicators were
down 6.1% and 24.8% year-on-year respectively.
Milei, who uses the metaphor of a "chainsaw" to refer to his
austerity policies, highlighted progress on inflation, which slowed
to 3.5% in September, Buenos Aires Times notes. Annual, it remains
at around 200% year-on-year – one of the highest rates in the
world, the report adds.
The President admitted austerity had made a deep impact on
Argentina, but he argued that the "effort must imply progress
because if not, it is not sacrifice, it is martyrdom," the report
discloses.
Poverty affected 52.9% of the population in the first half of the
year, up 11 points on the same period of 2023, the report relays.
According to projections from the World Bank, Argentina's economy
will shrink by 3.5% this year, before rebounding 5% in 2025, the
report ads.
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 authorities 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).
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.
YPF SA: US Intervenes in Funds' Attempt to Embargo Assets
---------------------------------------------------------
Buenos Aires Times reports the United States Department of Justice
has presented a writ requesting the Hon. Judge Loretta Preska of
the U.S District Court for the Southern District of New York in
Manhattan to reject the demand of Burford and Eton Capital
investment funds to embargo YPF S.A.'s assets in order to collect
on a ruling over the expropriation of the state oil company
obliging Argentina to pay US$16 billion.
According to the report, the US Justice Department argued that the
"turnover" order against YPF shares demanded by the plaintiffs
"violates the US norms of sovereign immunity.”
"The US government acting as amicus curiae in case of the
expropriation of YPF was expected," according to Fernando Maril who
is following the evolution of this trial against Argentina in
different international courts due to decisions taken during the
Cristina Kirchner administration, the report notes.
Maril said the US government maintains that certain laws of that
country are being violated while at the same time opening up the
door to some kind of reciprocity so that in the future Argentina
acts the same way with some US company or sovereign asset, the
report discloses. "This does not affect the ruling of US$16
billion, the alter ego or the appeal," explained the regional
director of Latam Advisors, the report says.
The Burford and Eton Capital investment funds won litigation over
the 2012 expropriation of YPF in the first instance, requesting
that Argentina hand over a third of YPF shares as a guarantee of
payment of the sentence. That ruling was being appealed in the
Appeals Court of the Second Circuit of New York, the report relays.
The Argentine defence lawyers rejected this and the plaintiffs
began proceedings to detect assets which could be embargoed, the
report says.
About YPF SA
YPF S.A. is a vertically integrated, majority state-owned Argentine
energy company, engaged in oil and gas exploration and production,
and the transportation, refining, and marketing of gas and
petroleum products.
Founded in 1922, YPF was an oil company established as a state
enterprise. YPF was later privatized under president Carlos Menem
and was bought by the Spanish firm Repsol in 1999, and the
resulting merged company was call Repsol YPF.
In 2012, about 51% of the firm was renationalized and this was
initiated by President Cristina Fernandez se Kirchner. The
government of Argentina agreed to pay $5 billion compensation to
Repsol.
As reported in the Troubled Company Reporter-Latin America on Sept.
3, 2024, S&P Global Ratings assigned its 'CCC' issue-level rating
to YPF S.A.'s (CCC/Stable/--) proposed senior unsecured notes due
2031. YPF will use the proceeds to tender up to $500 million of
its outstanding 8.5% senior unsecured notes due July 2025 and its
6.95% July 2027 notes, and for other general corporate purposes.
With this transaction, the company would start refinancing its 2025
maturities that total $1.9 billion.
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B A H A M A S
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[*] BAHAMAS: Fights "Bad Press" With $10M PR Campaign
-----------------------------------------------------
RJR News reports that the Bahamian government spent nearly US$10
million to counter the "bad press" the country received earlier
this year, according to deputy Prime Minister and Tourism Minister
Chester Cooper in Parliament,
According to RJR News, the Bahamas received significant
international media attention after the United States Embassy in
Nassau advised Americans about a spate of murders that had occurred
in New Providence at the beginning of 2024. The travel advisory was
widely reported by international media, with some inaccurately
claiming that the US had raised The Bahamas' security threat level,
the report says.
The Bahamas welcomed a record 9.7 million tourists in 2023, the
report adds.
As reported in the Troubled Company Reporter-Latin America, S&P
Global Ratings, on Sept. 25, 2024, affirmed its 'B+' long-term
foreign and local currency sovereign credit ratings on the
Commonwealth of The Bahamas. The outlook remains stable. S&P also
affirmed its 'B' short-term sovereign credit ratings.
=============
B E R M U D A
=============
NABORS INDUSTRIES: Fitch Affirms 'B-' LongTerm IDR, Outlook Stable
------------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Ratings
(IDRs) for Nabors Industries, Ltd. and Nabors Industries, Inc.
(collectively, Nabors) at 'B-'. The Rating Outlook is Stable. Fitch
has also affirmed the rating for the revolving credit facility at
'BB-' with a Recovery Rating of 'RR1', the rating for the senior
priority guaranteed notes (SPGN) at 'B+'/'RR2', the rating for the
senior guaranteed notes (PGN) at 'CCC'/'RR6', and the rating for
the senior unsecured notes at 'CCC'/'RR6'.
Nabors' 'B-' IDR and Stable Outlook reflect the announced Parker
Wellbore acquisition, the softening U.S. drilling conditions since
the beginning of 2024 and the steadily growing international
segment, which Fitch expects will result in positive FCF of around
$100 million in 2025.
These factors are partially offset by the company's large note
maturities starting in 2027, which Fitch expects will likely need
to be partially refinanced through capital markets. The company's
complicated capital structure and current high interest rate
environment could also limit refinancing options and increase
interest expense.
Key Rating Drivers
Accretive Parker Acquisition Announcement: Fitch views Nabors'
announced acquisition of Parker Wellbore favorably as it will be
funded with all stock and is modestly accretive to leverage metrics
given Parker's existing net debt of only $100 million. The
transaction adds Parker's large-scale, high performance tubular
rentals and repairs business and casing running business to Nabors
which is expected to generate EBITDA of around $180 million for
full-year 2024.
Management projects up to $35 million of annualized expense
synergies, primarily through overhead and operational expense
reductions and procurement savings. Nabors expects the transaction
will be immediately accretive to its FCF, which should further
improve following synergy realization.
Improving International Segment Performance: Nabors' international
drilling segment exhibits resilience through the cycle, even though
a considerable portion of international EBITDA is generated through
the Saudi Aramco joint venture (JV), from which Nabors has a
limited ability to extract cash in the near term. International
segment average rig count steadily improved to 85 rigs in 3Q24 from
77 in 3Q23, in contrast with the softening U.S. segment.
Historically, international margins have been slightly higher than
U.S. margins, and the longer contracts provide more certainty of
future utilization. Daily rig margins also increased to $17,085 in
3Q24, up from $15,778 in 3Q23.
Softer U.S. Activity, Utilization: Nabors' U.S. drilling segment
exhibited softness since the beginning of 2024 primarily driven by
depressed natural gas prices and reduced drilling activity. Nabors'
U.S. Lower 48 (L48) quarterly average rig count declined to 68 in
3Q24, down from 72 in 1Q24.
The company's daily gross margin declined slightly to $15,051 in
3Q24 from $16,011 in 1Q24 given the weaker L48 conditions.
Management projects L48 quarterly average rig count to stabilize at
68 in 4Q24 but expects the Drilling Solutions and Rig Technologies
segments' EBITDA generation will improve by approximately 7% and
55% qoq, respectively.
Modest FCF: Fitch's base case forecasts FCF of around $100 million
for Nabors in 2025 following the expected close of the Parker
transaction in early 2025. Nabors has generated approximately $82
million of adjusted FCF YTD 3Q24 and expects modest FCF in 4Q24,
which should bring total full-year 2024 FCF to $100 million-$130
million.
This is down slightly from management's estimate in early 2024 of
approximately $100 million - $200 million, driven largely by an
acceleration of rig delivery milestones within the Saudi Aramco JV
that moved newbuild capex from 2025 up into 2024. Management now
forecasts capex to increase to around $600 million in 2024 from
$590 million in 2023. This includes around $230 million to support
the JV.
Medium-Term Refinance Risk: Fitch believes medium-term refinancing
risks still persist following the company's PGN issuance in July
given the large note maturities starting in 2027. Fitch expects
management will allocate all of its incremental FCF to repay the
2027 SPGN notes to reduce future refinancing risks. Nabors will
have approximately a year and a half of runway to generate FCF to
address the 2027 notes maturity before it goes current.
The agency believes this is enough time to generate FCF, pay down a
portion of the note and be in a position to refinance the remainder
of the 2027 note. Negative trends in the drilling environment
and/or a reduction in expected FCF generation, combined with the
complicated capital structure, could potentially present
difficulties accessing capital markets to refinance debt in the
medium term.
3.0x Leverage Metrics: Fitch projects Nabors' EBITDA leverage will
remain at or below 3.0x throughout the rating horizon, which Fitch
recognizes is moderately higher than OFS peers. Fitch expects
Nabors will allocate the vast majority of FCF toward debt reduction
to help alleviate its medium-term refinancing risks, which should
reduce EBITDA leverage over time.
Derivation Summary
Fitch compares Nabors with Precision Drilling Corporation
(Precision; BB-/Stable), which is also an onshore driller with
exposure to the U.S. and Canadian markets. It is estimated that
Nabors has the third-largest market share in the U.S., at
approximately 12%, compared with Precision at approximately 6%.
Nabors' gross margins in the U.S. are higher than Precision's
margins, which are aided by its offshore and Alaskan rig fleet,
which operate at significantly higher margins. Nabors has a
significant international presence, which typically has longer-term
contracts, partially negating the volatility of the U.S. market.
Precision has stronger credit metrics and a more extended maturity
profile than Nabors, while the liquidity profiles are relatively
similar. Both companies are expected to generate FCF over their
respective forecast periods and use cash to reduce debt.
Key Assumptions
- WTI oil price of $75/bbl in 2024, $65/bbl in 2025, $60/bbl in
2026 and 2027, and $57/bbl thereafter;
- Henry Hub natural gas prices of $2.25/mcf in 2024, $3.00/mcf in
2025 and 2026 and $2.75 thereafter;
- Acquisition-related revenue and EBITDA growth in 2025 followed by
modest declines thereafter in line with price assumptions;
- Capex of $600 million in 2024 with growth-linked increases
thereafter;
- FCF proceeds used to reduce gross debt.
Recovery Analysis
Key Recovery Rating Assumptions
- The recovery analysis assumes Nabors would be reorganized as a
going concern in bankruptcy rather than liquidated;
- The recovery analysis does not incorporate the company's
announced Parker Wellbore acquisition;
- Fitch has assumed a 10% administrative claim.
Going-Concern Approach
Nabors' going-concern EBITDA estimate reflects Fitch's view of a
sustainable, post-reorganization EBITDA level, upon which Fitch
bases the enterprise valuation. The going-concern EBITDA assumption
for commodity sensitive issuers at a cyclical peak reflects the
industry's move from top-of-the-cycle commodity prices to midcycle
conditions and intensifying competitive dynamics.
The going-concern EBITDA assumption represents the emergence from a
prolonged commodity price decline. Fitch assumes stress case WTI
oil price assumptions of $65/bbl in 2024, $32/bbl in 2025, $42/bbl
in 2026 and $45/bbl thereafter.
The going-concern EBITDA assumption reflects a loss of customers
and lower margins, as exploration and production companies cut rigs
and pressure oil service firms to reduce operating costs. The
EBITDA assumption also incorporates the structural weakness outside
of the Saudi Aramco JV and overall high rig supply but improving
demand.
The assumption reflects corrective measures taken in the
reorganization to offset adverse conditions that triggered default,
such as cost-cutting and optimal deployment of assets.
An enterprise value multiple of 4.0x EBITDA is applied to
going-concern EBITDA to calculate a post-reorganization enterprise
value.
The choice of this multiple considered the following factors:
- The historical bankruptcy case study exit multiples for peer
energy oilfield service companies have a wide range, with a median
of 6.1x. The oil field service sub-sector ranges from 2.2x to 42.5x
due to the more volatile nature of EBITDA swings in a downturn;
- Fitch used a multiple of 4.0x to estimate a value for Nabors
because of concerns of a downturn with a longer duration, a high
mix of international rigs that are not easily mobilized, and
continued capital investment to remain competitive with peers to
maintain high quality and technologically advanced rigs for
operators.
Liquidation Approach
The liquidation estimate reflects Fitch's view of the value of
balance sheet assets that can be realized in sale or liquidation
processes conducted during a bankruptcy or insolvency proceeding
and distributed to creditors.
Fitch assigns a liquidation value to each rig based on management
discussions, comparable market transaction values, and upgrades and
new build cost estimates.
Different values were applied to top-of-the-line super spec rigs,
lower-value super spec rigs, non-super spec rigs and higher-value
international rigs.
The secured credit facility is assumed to be fully drawn upon
default and is super senior in the waterfall.
The allocation of value in the liability waterfall results in
recovery corresponding to 'RR1' for the secured credit facility; a
recovery of 'RR2' for the SPGN notes, which are subordinated to the
secured credit facility; and a recovery of 'RR6' for both the PGN
notes (which are subordinated to the SPGN notes) and the senior
unsecured notes.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Proactive management of the maturity profile that reduces
medium-term refinancing risks;
- Positive FCF generation, with proceeds applied to reduce total
gross debt toward $2.0 billion;
- Maintenance of midcycle EBITDA leverage below 3.0x.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Inability to reduce gross debt and proactively manage the
maturity schedule, leading to heightened refinancing risks;
- Inability to access the revolving credit facility or other
material reductions in liquidity;
- Maintenance of midcycle EBITDA leverage above 4.0x.
Liquidity and Debt Structure
Adequate Liquidity: Cash attributable to Nabors at 3Q24 was
approximately $132 million, which is net of approximately $319
million held in the Saudi Aramco JV and not available to Nabors.
The company also had full availability under its $350 million
secured revolving credit facility, which also includes an accordion
feature for an additional $200 million of commitments, subject to
lender approval. Liquidity is further supported by Fitch's
expectation for moderately positive FCF through the base case which
is expected to be utilized for gross debt reduction.
The revolver matures in June 2029 and is subject to a springing
maturity if 10% or more of the principal amount the company's 2027,
2028 or 50% or more of the 2029 notes remain outstanding 90 days
prior to maturity. The credit facility is subject to financial
covenants, including minimum interest coverage of 2.75x and a
requirement that certain guarantors own a minimum of 90% of the
consolidated property, plant and equipment of the company.
Issuer Profile
Nabors is one of the largest drilling contractors in the world with
operations in both the U.S. and International markets. Nabors also
owns a drilling solutions business that offers specialized drilling
technologies along with a rig technologies business that offers
advanced drilling rig equipment.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
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
----------- ------ -------- -----
Nabors Industries, Ltd. LT IDR B- Affirmed B-
senior unsecured LT CCC Affirmed RR6 CCC
Nabors Industries, Inc. LT IDR B- Affirmed B-
senior unsecured LT CCC Affirmed RR6 CCC
senior unsecured LT CCC Affirmed RR6 CCC
senior unsecured LT B+ Affirmed RR2 B+
senior secured LT BB- Affirmed RR1 BB-
NABORS INDUSTRIES: The Vanguard Group Holds 7.10% Equity Stake
--------------------------------------------------------------
The Vanguard Group disclosed in a Schedule 13G/A Report filed with
the U.S. Securities and Exchange Commission that as of September
30, 2024, it beneficially owned 678,138 shares of Nabors Industries
Ltd's Common Stock, representing 7.10% of the shares outstanding.
A full-text copy of Vanguard Group's SEC Report is available at:
https://tinyurl.com/2ds37c7z
About Nabors
Bermuda-based Nabors Industries Ltd. (NYSE: NBR) owns and operates
land-based drilling rig fleets and provides offshore platform rigs
in the United States and several international markets. Nabors also
provides directional drilling services, tubular services,
performance software, and innovative technologies for its own rig
fleet and those of third parties.
Nabors Industries reported a net loss of $11.8 million for the year
ended December 31, 2023, a net loss of $307.22 million in 2022, a
net loss $543.69 million in 2021, a net loss of $762.85 million in
2020, a net loss of $680.51 million in 2019, a net loss of $612.73
million in 2018, and a net loss of $540.63 million in 2017. As of
March 31, 2024, the Company had $4.64 billion in total assets,
$3.37 billion in total liabilities, and $522.82 million in total
stockholders' equity.
* * *
In August 2024, Fitch Ratings has assigned a 'CCC'/'RR6′ rating
to Nabors Industries, Inc.'s proposed senior guaranteed notes (PGN)
due 2031. Nabors plans to utilize the proceeds from these notes to
refinance the 7.25% PGN due 2026 held at Nabors Industries, Ltd.
(Bermuda) and for general corporate purposes. The proposed notes
will rank pari passu with Bermuda's existing PGN due 2026 and PGN
due 2028.
Nabors' existing 'B-' Long-Term Issuer Default Rating and Stable
Outlook reflect the softening U.S. drilling environment since the
beginning of 2023, alongside a steadily growing international
segment. Fitch's credit profile assessment is supported by the
expectation that free cash flow (FCF) will be directed toward gross
debt reduction, as well as the company's proactive management of
its maturity profile and its adequate liquidity.
However, these positive factors are partially offset by the
company's large note maturities starting in 2027, which Fitch
anticipates will likely require partial refinancing through capital
markets. Additionally, potential declines in rig activity and day
rates could negatively impact cash flow and restrict FCF and
near-term gross debt reduction. The company's complex capital
structure, combined with the current high-interest rate
environment, could also limit refinancing options and increase
interest expenses.
In March 2024, S&P Global Ratings revised its outlook to stable
from positive and affirmed its 'B-' issuer credit rating on Nabors
Industries Ltd. At the same time, S&P affirmed its 'B-' issue-level
rating on the company's senior priority guaranteed notes, with a
recovery rating of '3,' and a 'CCC' issue-level rating on the
company's priority guaranteed notes, with a recovery rating of '6.'
The stable outlook reflects S&P's expectation for the company's
operating performance, industry fundamentals, near-term debt
maturity profile, and credit metrics to remain appropriate for the
'B-' issuer credit rating. The outlook revision reflects S&P's
expectation of reduced free cash flow generation and lower than
anticipated debt reduction.
In July 2024, S&P Global Ratings assigned its 'CCC' issue-level
rating and '6′ recovery rating to Nabors Industries Ltd.'s
proposed $550 million senior guaranteed notes due 2031. The
company's subsidiary, Nabors Industries Inc., will issue the notes.
The '6′ recovery rating indicates S&P's expectation of negligible
(0%-10%; rounded estimate: 0%) recovery of principal by creditors
in the event of a payment default.
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B R A Z I L
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BANCO DE BRASILIA: Fitch Removes Neg. Watch on 'B-' LT IDRs
-----------------------------------------------------------
Fitch Ratings has removed the Rating Watch Negative (RWN) on Banco
de Brasilia S.A.'s (BRB) 'B-' Long-Term Foreign and Local Currency
Issuer Default Ratings (IDRs), 'B' Short-Term Foreign and Local
Currency IDRs, 'b-' Shareholder Support Rating (SSR), 'BBB+(bra)'
Long-Term National Rating, and 'b-' Viability Rating (VR), and
affirmed the ratings. The Rating Outlook on the Long-Term IDR and
National Ratings is Negative.
The RWN removal follows BRB's actions to alleviate pressures on
capitalization metrics. In July, a capital increase of BRL294
million was approved, effective on the still-unpublished 3Q24
financial statements. Additionally, a strategic partnership
announced in the same month is expected to positively impact the
bank's capital, while core profits are also showing an improving
trend. In late October 2024, BRB announced a tentative new capital
increase of up to BRL750 million, expected to be effective in the
first quarter of 2025. These actions provide Fitch with greater
visibility regarding the bank's capital metrics, which are likely
to improve once effective.
The Negative Outlook reflects a view of the medium-term challenges
concerning capitalization, as the agency expects improvements with
stable earnings generation and no delays in the expected capital
injections. The Outlook also considers the shareholder's propensity
to support BRB, which is highly influenced by the timeliness of
such support, that has been delayed and kept BRB's core equity
regulatory capitalization at low levels, making it highly sensitive
to breaching regulatory minimum levels.
Key Rating Drivers
VR and SSR aligned: BRB's VR reflects its view on the medium-term
risks to the bank's core capital buffers and business model
stabilization. The current VR is one notch below the implied level
of 'b', as its view of the entity's capitalization and leverage has
a high influence on the VR and is a weakest link in the bank's
creditworthiness.
Support Driven Ratings: Although its 'b-' SSR assessment of BRB is
at the same level as the bank's standalone profile, as reflected in
its 'b-' VR, BRB's IDRs and NS ratings continue to be driven by the
ability and willingness of its parent, the Federal District
Government (GDF), to provide timely support and the Negative
Outlook over these ratings reflects Fitch's view decreases
propensity to support the banks.
While Fitch views BRB's gradually recovering performance and the
continued adoption of internal capital actions, including the
capital increases, as the key drivers for today's removal of RWN,
Fitch's view of GDF's credit profile continues to justify a "higher
of" approach based on its SSR opinion.
Timeliness Constrains Support: Fitch believes GDF is capable of
supporting BRB but its willingness to provide such support has
weakened. This is due to BRB's continued weak core capital position
and GDF's lack of capital support for its banking subsidiary. A
breach of the minimum required capitalization could pose a risk to
the support-based ratings and lead Fitch to reassess BRB's
importance to the state.
National Ratings: BRB's National Ratings are notched from Fitch's
view of GDF's creditworthiness on the national scale. Fitch
believes the bank's National Rating better reflects its
creditworthiness relative to its respective supporting entity.
Capital Adequacy Concerns: BRB's common equity Tier 1 (CET1) ratio
was 7.34% in June 2024, which Fitch considers a narrow buffer
against the minimum requirement of 7.0%. While the Tier 1 and total
regulatory capital ratios (8.84% and 13.8%, respectively) have
adequate buffers over their minimum requirements, the tighter CET1
reduces its financial flexibility to respond to adverse shocks and
grow businesses.
Capital Increase Underway: In July 2024, the bank announced the
completion of a capital increase plan, with an amount of BRL294
million placed by its minority shareholders. In October 2024, BRB
announced an approval to pursue a new capital increase of up to
BRL750 million, which is expected to be effective in the first
quarter of 2025. Additionally, during 3Q24 BRB sold a 49.9% stake
in Financeira BRB to Kardbank and investor José Ricardo Rezek. The
strategic partnership should bring the partner's technology to the
bank's clients and is also expected to generate a capital gain for
BRB.
In Fitch's view, the completion of these measures should support
BRB's capital metrics. Under Fitch's pro-forma calculations, using
June 2024 financials, the newly approved capital would potentially
benefit CET1 ratio to levels around 8.5%.
Fitch has relied on unaudited interim financial statements and pro
forma information provided by BRB's management for the analysis,
due to the delayed regulatory reporting of 2Q24 financials. This
reliance on unaudited data reduces the agency's visibility and
weakens the assessment of BRB's corporate governance, as captured
in the business profile assessment.
Execution Risks: Fitch believes BRB's business and earnings profile
is pressured by uncertain core earnings prospects and capital
constraints, making it difficult for the bank to increase business
volumes and defend earnings against shocks in the medium term. To
avoid breaching regulatory requirements, management continues to
perform risk-weighted asset (RWA) optimization and portfolio
sales.
Profitability Uncertainties and Controlled Asset Quality: BRB's
operating profit/RWAs ratio was -0.14% in 1H24, from 0.5% in FY23
and a four-year average of 1.65%, as high loan provisions weigh on
the bank's profit generation capacity, also negatively impacted by
a new district regulation that limited debts in highly-indebted
clients' accounts. In 3Q24 the law was considered unconstitutional
and stopped affecting the bank's figures. Loans classified in the
'D-H' range were 5.6% of gross loans in 2Q24 (4.3% at YE 2023),
impacted by the regulation as well.
Fitch expects BRB's performance in the near term to remain
pressured and below its historical average, but to gradually regain
traction, as a results of capital increases, and the development of
business verticals, partnerships and efficiency measures.
Adequate Funding and Liquidity: BRB's funding and liquidity profile
continue to be a rating strength, benefiting from a stable and
diversified customer base, and low funding costs. The bank's
liquidity position is also adequate against short-term maturities.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
IDRs, SSR AND NATIONAL RATINGS
The ratings could be downgraded, potentially by multiple notches,
in the case of a capital breach and/or regulatory intervention.
This would weaken its assessment of the state's propensity and
ability of support, reflecting a failure to provide extraordinary
support in a timely manner.
VR
The VR is mainly sensitive to BRB's capitalization. It could be
downgraded if capital optimization measures, including potential
reductions in RWAs, were unsuccessful and insufficient to prevent a
regulatory capital breach. The ratings would also come under
pressure if its earnings prospects materially weaken and delay the
improvement of capital generation.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
IDR, SSR, VR and NATIONAL RATINGS
There is limited scope for upward rating action given the Negative
Outlook.
Fitch may revise the outlook to stable if there are positive
changes in Fitch's assessment of GDF's ability and willingness to
provide support to BRB. The Outlook revision would also be
contingent to higher CET1 buffers over regulatory minimums,
providing more capital relief.
Over time, the ratings could be upgraded if there is a clear path
to business model stabilization and sustainable core profitability
as well as adequate capitalization and buffers. The magnitude of
the upside potential is contingent to BRB's credit profile after
capital measures, and to Fitch's reassessment of BRB VR and SSR
once that happens.
BRB's SSR can be revised if there is any change in its strategic
importance or changes in the ability or propensity of the GDF to
provide support to the bank.
VR ADJUSTMENTS
The VR has been assigned below the implied VR due to the following
adjustment reason: Weakest Link - Capitalization & Leverage
(negative).
The Business Profile score has been assigned below the implied
score due to the following adjustment reason: Management and
Governance (negative).
The Asset Quality score has been assigned below the implied score
due to the following adjustment reason: Underwriting Standards and
Growth (negative).
The Earnings & Profitability score has been assigned below the
implied score due to the following adjustment reason: Historical
and Future Metrics (negative).
Public Ratings with Credit Linkage to other ratings
Banco de Brasília's ratings are driven by GDF's internal credit
assessment.
ESG Considerations
BRB - Banco de Brasilia SA has an ESG Relevance Score of '4' for
Financial Transparency due to delays in the presentation of audited
financial statements, that raise concerns about their governance,
which has a negative impact on the credit profile, and is relevant
to the rating[s] in conjunction with other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
----------- ------ -----
BRB - Banco de
Brasilia SA LT IDR B- Affirmed B-
ST IDR B Affirmed B
LC LT IDR B- Affirmed B-
LC ST IDR B Affirmed B
Natl LT BBB+(bra)Affirmed BBB+(bra)
Natl ST F2(bra)Affirmed F2(bra)
Viability b- Affirmed b-
Shareholder Support b- Affirmed b-
===============
C O L O M B I A
===============
FRONTERA ENERGY: Fitch Affirms 'B' Long-Term IDRs, Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has affirmed Frontera Energy Corporation's (Frontera)
Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs)
at 'B'. In addition, Fitch has affirmed Frontera's senior unsecured
notes at 'B' with a Recovery Rating of 'RR4'. The Rating Outlook is
Stable.
Frontera's ratings and Outlook reflect its small and concentrated
production profile and weak Proved Developed Producing (PDP)
reserve life of 2.7 years as of YE 2023, below the peer average of
four years. Fitch forecasts gross leverage will remain below 1.5x
over the rating horizon, while having total debt to 1P at or below
USD5/ boe.
Key Rating Drivers
Small Production Profile and Reserve Life: Frontera's ratings are
constrained by its production size. Fitch's base case assumes
production to be close to 41,000 barrels of oil equivalent per day
(boed) in 2024, and to average 42,000 boed remain in 2025-2027.
Frontera's PDP reserve life of 2.7 years, as of YE 2022, is
improved from 1.6 years in 2020 but is still the lowest among its
peers. Production is concentrated in Quifa and represented nearly
43% of daily production, followed by CPE-6 at almost 17% and at
Guatiquia 14% as of 3Q24.
Cost Production Profile: Fitch expects Cost of Goods Sold (COGS)
per boe to be close to USD47 in 2024, and USD40/boe in 2025. High
production costs are mainly due to transportation expenses, as
Frontera delivers its production to the Colombian coast rather than
at a wellhead like its peers. However, Frontera has higher realized
prices than its peers. Fitch expects the company to hedge a minimum
40% and Colombian peso-denominated costs to protect it from price
volatility and offset higher costs, respectively.
Positive FCF: Fitch expects Frontera to be FCF positive over the
next three years, as the company completed the committed capital
program in the Wei-1 project in Guyana. Fitch assumes Frontera will
finance capex with internally generated cash flows, averaging
USD17/boe between 2025-2027. Fitch also assumes dividend payments
of around USD9 million per year between 2025-2027.
Leverage Profile: Fitch estimates gross leverage will remain below
1.5x over the rating horizon, strong for the rating category,
FY2024 leverage should be close to 1.2x, assuming EBITDA after
dividends from affiliates of USD430 million and gross debt of
USD513 million. The Refineria de Cartagena S.A.S. (Reficar)
connection for Puerto Bahia is expected to be operational by YE
2024, which should contribute to increased EBITDA. Fitch expects
total debt/1P to be close to USD5/boe by YE 2024. Fitch projects
EBITDA/interest paid will be above 5.0x over the rated horizon.
Derivation Summary
Frontera's credit and business profile are comparable with other
small independent oil producers in Colombia (BB+/Stable). The
ratings of GeoPark Limited (B+/Stable), SierraCol Energy Limited
(B+/Stable) and Gran Tierra Energy Inc. (B+/Stable) are all
constrained to the 'B' category or below, given the inherent
operational risk associated with the small scale and low
diversification of oil and gas production.
Over the rating horizon, Fitch expects Frontera's production will
average 42,000boed, below the average of its Colombian peers.
Frontera's PDP reserve life of 2.7 years in 2023 is the lowest
compared with Geopark at 3.7 years, SierraCol at 4.6 years and Gran
Tierra at 3.7 years. In terms of 1P, all Colombian names shows 7 or
more years of reserve life.
Per Fitch's calculations, Frontera's COGS were USD50/boe, which
included transportation costs of USD11/boe. Frontera has higher
transportation costs than peers, which are offset by higher
realized prices. Geopark, which is the lowest-cost producer in the
region, had COGS of USD19/boe, while SierraCol had COGS of
USD20/boe, and Gran Tierra's COGS were USD25/boe.
Fitch expects Frontera's gross leverage will be at, or below, 2.0x
over the rating horizon, total debt/PDP will be at, or below,
USD13/boe and total debt/1P will be at, or below, USD5/boe.
Key Assumptions
Fitch's Key Assumptions Within Its Rating Case for the Issuer
Include
- Fitch's price deck for Brent oil prices of USD80 in 2024, USD70
in 2025, USD65 in 2026 and 2027;
- Gross production of 41,000boed in 2024; average of 42,000boed
between 2025-2027;
- Average USD5/bbl discount to Brent in 2024; average of USD3/bbl
between 2025-2027;
- COGS averaging USD47/boe in 2024;
- SG&A cost averaging USD3.6/boe in 2024;
- Capex of USD300 million on 2024; average of USD260 million
between 2025-2027;
- Dividends payments if around USD15 million over the rated
horizon;
- Annual dividends received from Oleoducto de los Llanos Orientales
S.A (ODL) of USD60 million in 2024;
- 1P Reserve Replacement of 100%.
Recovery Analysis
The recovery analysis assumes Frontera would be a going concern in
bankruptcy and it would be reorganized rather than liquidated.
Going Concern Approach
- A 10% administrative claim;
- The going concern EBITDA is estimated at USD350 million. The
going concern EBITDA estimate reflects Fitch's view of a
sustainable, post-reorganization EBITDA level upon which Fitch
bases the valuation of Frontera;
- Enterprise value multiple of 3.0x.
With these assumptions, its waterfall generated recovery
computation (WGRC) for the senior unsecured notes is in the 'RR2'
band. However, according to Fitch's Country-Specific Treatment of
Recovery Ratings Criteria, the Recovery Rating for corporate
issuers in Colombia is capped at 'RR4'. The Recovery Rating for the
senior secured notes is therefore 'RR4' with a WGRC output
percentage at 50%.
RATING SENSITIVITIES
Factors That Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Net production maintained at 45,000boed or more, while
maintaining a 1P reserve life of seven years or greater and PDP
reserve life of at least four years;
- Maintain a conservative financial profile with gross leverage of
2.5x or below.
Factors That Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Sustainable production size declines to below 30,000boed;
- 1P reserve life declines to below seven years on a sustained
basis;
- A significant deterioration of credit metrics to total
debt/EBITDA of 3.0x or more;
- A persistently weak oil and gas pricing environment that impairs
the longer-term value of its reserve base;
- Sustained deterioration in liquidity and operating profile,
particularly in conjunction with more aggressive dividend
distributions than previously anticipated.
Liquidity and Debt Structure
Adequate Liquidity: Frontera's cash and cash equivalents balance as
of September 2024 was USD206 million, excluding USD35 million in
restricted cash, which covers interest expense for the next three
years by 1.6x. Fitch projects capex will be funded with internal
cash flows.
Frontera benefits from a manageable debt amortization profile with
USD134 million in amortizing loans maturing, of which USD81 million
are due within the next 24 months, while USD395 million in
unsecured notes are due in June 2028. The outstanding debt at the
midstream level is non-recourse to Frontera.
Issuer Profile
Frontera is an oil and gas company incorporated in Canada with
operations in Latin America, including upstream, pipeline and port
facilities assets in Colombia, Ecuador and off-shore Guyana.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
Fitch has revised Frontera Energy Corporation's ESG Relevance Score
for GHG Emissions & Air Quality to '4' from '3' due to the growing
importance of the continued development and execution of the
company's energy-transition strategy. This has a negative impact on
the credit profile, and is relevant to the ratings in conjunction
with other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Frontera Energy
Corporation LT IDR B Affirmed B
LC LT IDR B Affirmed B
senior unsecured LT B Affirmed RR4 B
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Ex-Minister Discusses Trump Policies Impact
---------------------------------------------------------------
Dominican Today reports that Harvard professor and former Dominican
Minister of Economy, Juan Ariel Jimenez, discussed potential
impacts of U.S. President-elect Donald Trump's policies on the
Dominican Republic. He noted that while Trump's immigration stance
might not heavily affect the largely legal Dominican community in
the U.S., any shifts in migration could influence remittances, a
critical economic resource for the country, the report says.
According to Dominican Today, Jimenez highlighted nearshoring as a
significant opportunity, as Trump's proposed tariffs on Chinese
goods could prompt U.S. companies to relocate operations to nearby
countries. With its strategic location and political stability,
the Dominican Republic could attract investment in its free trade
zones, though strategic policy adaptations would be necessary to
fully benefit, the report relays.
However, Jimenez cautioned about risks from Trump's energy policy,
which favors fossil fuels and could drive up oil prices, the report
says. For the Dominican Republic, an oil-importing nation, this
would increase costs for both the government and consumers, the
report discloses. Additionally, he believes a potential U.S.
interest rate hikes could strain the Dominican exchange rate and
economic stability, the report notes. While challenges are
expected, Jimenez sees a path to strengthen the Dominican economy
with proactive, strategic policies, 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.
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.
===============
H O N D U R A S
===============
TEGUCIGALPA: Fitch Affirms 'B' LongTerm IDRs, Outlook Stable
------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Foreign and Local Currency
Issuer Default Ratings (IDRs) of Honduras' Alcaldia Municipal del
Distrito Central, Tegucigalpa (AMDC) at 'B'. The Rating Outlook is
Stable. Fitch has also affirmed AMDC's Short-Term IDR at 'B'.
AMDC's Standalone Credit Profile (SCP) was assessed at 'b+'.
All ratings have simultaneously been withdrawn. At the time of the
withdrawal, the Rating Outlooks were Stable.
Fitch has chosen to withdraw AMDC ratings for commercial reasons.
It will no longer provide ratings or analytical coverage of AMDC.
Key Rating Drivers
The issuer's key rating drivers are the same as those detailed in
Fitch's rating action commentary "Fitch Affirms Honduras's AMDC,
Tegucigalpa at 'B'; Outlook Stable," published Aug. 28, 2024.
RATING SENSITIVITIES
Not applicable as the ratings have been withdrawn.
Issuer Profile
Tegucigalpa, AMDC is Honduras's capital city. With 1.2 million
citizens, as of 2023, its GDP per capita is estimated at USD8,300,
above Honduras USD3,512, but low by international standards. AMDC's
economic structure is well diversified, fueled by public and
private investment, which supports robust internally generated
revenues. Fitch classifies Benue as a type B LRG that covers debt
service with its operating balance.
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 Prior
----------- ------ -----
Tegucigalpa, Alcaldia
Municipal del
Distrito Central LT IDR B Affirmed B
LT IDR WD Withdrawn
ST IDR B Affirmed B
ST IDR WD Withdrawn
LC LT IDR B Affirmed B
LC LT IDR WD Withdrawn
=============
J A M A I C A
=============
JAMAICA: BOJ Says Bids for Treasury Bills Will be Settled
---------------------------------------------------------
RJR News reports that the Bank of Jamaica (BOJ) has indicated that
bids which were opened for its 90, 182 and 273-day Treasury Bills
will be settled soon.
The central bank said stressed that $2.63 billion in bids were
received for the 90-day T-Bill, although it wanted only $700
million, while adding that the average yield was 6.46 per cent per
annum, according to RJR News.
The central bank is also reporting that investors placed $3 billion
in bids for the $700 million it wanted to snap-up from the 182-day
T-Bill and the average yield 6.36 per cent per annum, the report
relays.
Finally, the central bank said investors submitted bids worth $4.8
billion into the 273-day T-Bill for the $800 million with an
average yield of 6.28 per cent, the report notes.
The total amount of T-Bills outstanding after the settlement will
be $10.3 billion or 0.31% of nominal GDP, the report says.
Certificate of Deposit
Meanwhile, the BOJ also says the applications which were opened for
its $39 billion in 7% per annum fixed rate Certificate of Deposit
will be settled and the successful applicants will receive their
allotments, the report discloses.
The central bank also says 247 bids worth $45 billion were
submitted for the $39 billion, the report says.
It also pointed out that only 236 bids qualified for the $39
billion offered, while stressing that the average yield for the
successfully allotted bids was 6.99 per cent per annum, the report
notes.
The lowest submitted bid was 6% per annum for $16.70 million, while
the highest bid rate was 10% for $500 million, 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.
JAMAICA: Posts $452.65BB in Revenues and Grants from April-Sept
---------------------------------------------------------------
RJR News reports that data released by the Ministry of Finance and
the Public Service has indicated that Jamaica has raked in $452.65
billion in revenues and grants during the period April to September
this year.
This is $12.16 billion or 2.8% more than budgeted, according to RJR
News.
For the same period, the ministry spent $505.21 billion or $5.55
billion less than budgeted, the report notes.
Meanwhile, the Finance Ministry is also reporting that the primary
balance or the amount of money accumulated and available to service
debt was running at $36.17 billion for the period, the report
relays. This is against the $16.85 billion needed to service the
debt, 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.
NCB FINANCIAL: Fitch Publishes 'B+' Long-Term IDRs, Outlook Pos.
----------------------------------------------------------------
Fitch Ratings has published NCB Financial Group Limited's (NCBFG)
'B+' Long-Term Foreign and Local Currency Issuer Default Ratings
(IDRs) and 'B' Short-Term Foreign and Local Currency IDRs. The
Rating Outlook for the Long-Term IDRs is Positive.
Key Rating Drivers
Creditworthiness of its Major Subsidiary: NCBFG ratings are based
on the creditworthiness of its main subsidiary National Commercial
Bank Jamaica Limited (NCBJ; BB-/Positive), which is the largest
bank in the country and represents 54% of the group's consolidated
assets. NCBFG's income is mainly derived from dividend income from
its subsidiaries (70% of gross revenue), followed by management
fees (21%), and interest income 10%), as of June 2024.
Significant Double Leverage: The establishment of a one-notch
difference with NCBJ reflects mainly NCBFG's material double
leverage exceeding 120% for a sustained period (139% average over
the last four YEs), but with a decreasing trend. NCBFG's
consistently high double leverage aligns with its growth strategy,
by means of subsidiaries acquisition, through leverage. NCBFG's
double leverage improved to 122% at June 30,2024 as a result of a
strengthened common equity. Fitch will monitor the double leverage
trend for consistency in the medium term.
High Capital and Liquidity Fungibility; Heavy Reliance on Major
Subsidiaries' Income: The ratings also consider no regulatory
restrictions on subsidiaries paying dividends or upstreaming
liquidity to the holding company. NCBFG's liquidity depends
primarily on dividend and fee income from NCBJ and its other major
subsidiaries, supporting Fitch's assessment on the one-notch
difference with the main subsidiary, although this is partially
mitigated by the adequate liquidity of the bank, the ability to
source inter-company financing and its access to capital markets.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
NCBFG's rating is sensitive to a change in NCBJ's ratings.
In addition, the holding company's ratings would be negatively
impacted by changes in the group structure that would reduce the
materiality of NCBJ's role in the group or increase the complexity
of the group's structure.
The relativity between NCBFG and NCBJ's ratings could be negatively
affected by a sustained increase in common equity double leverage
above 150%. Also, a deterioration in its standalone liquidity
profile could negatively impact NCBFG's ratings.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
A sustained decrease in common equity double leverage could
positively impact NCBFG's rating by potentially reducing the
relativity between NCBFG and NCBJ's ratings.
Public Ratings with Credit Linkage to other ratings
NCBFG ratings are directly linked to NCBJ's Long-Term IDR.
Entity/Debt Rating
----------- ------
NCB Financial
Group Limited LT IDR B+ Publish
ST IDR B Publish
LC LT IDR B+ Publish
LC ST IDR B Publish
TRANSJAMAICAN HIGHWAY: Fitch Affirms 'BB' Sr. Secured Notes Rating
------------------------------------------------------------------
Fitch Ratings has affirmed TransJamaican Highway Limited's (TJH)
senior secured notes at 'BB'. The Rating Outlook is Positive.
RATING RATIONALE
The rating reflects the stability and resiliency of a commuting
asset strategically located in the outskirts of Kingston, Jamaica's
capital city. The rating is also supported by a satisfactory
rate-setting mechanism, which allows tariffs to be adjusted
annually by U.S. inflation and the variations in foreign exchange
(FX) rate between the Jamaican dollar (JMD) and the U.S. dollar
(USD). Debt is USD-denominated, senior secured, and has typical
project finance features that include limitations on additional
indebtedness.
The rating case minimum and average debt service coverage ratio
(DSCR) are at 2.0x in 2035 and 2.4x, respectively, which are viewed
as strong for the rating category according to applicable criteria.
The transaction presents robust break-even values for its most
important variables and no dependency on traffic growth in order to
repay the rated debt. Furthermore, even though the credit profile
withstands domestic economic shocks beyond those observed between
2008 and 2014 when the Jamaican economy deeply deteriorated, the
transaction is ultimately capped at Jamaica's Country Ceiling of
'BB' because of transfer and convertibility risk.
TJH's Positive Outlook mirrors the Positive Outlook of Jamaica's
'BB-', as a reflection of the potential for reduced concerns of
higher risk of controls on convertibility and the transfer of
foreign currency to serve the USD-denominated debt.
KEY RATING DRIVERS
Revenue Risk - Volume - Midrange
Strategically Located Essential Asset
The toll road is the main link between the capital city of Jamaica,
Kingston, and other populated urban and industrial centers
including the cities of Portmore and May Pen. The asset is
currently the only high-speed roadway serving the western part of
Kingston's metropolitan area, with an estimated population of 1.4
million people along the corridor. Long-term growth prospects are
supported by its strategic importance to the country and the
currently low motorization rates in Jamaica, which present
potential for increase.
Revenue Risk - Price - Midrange
Adequate Rate Adjustment Mechanism
Toll rates are adjusted annually using an escalation formula based
on the U.S. CPI and the FX rate (USD/JMD) evolution. There is an
additional 1% increase until the foreign debt is repaid in full, in
accordance with the maximum capped toll level of that period.
Additional increases are applied if the USD/JMD exchange rate
depreciates by more than 10% intra-period.
TJH is allowed to annually increase toll rates, but any change
needs to be authorized by the roll regulator. If the toll regulator
does not authorize such toll rates, the concessionaire would need
to be compensated for the lost revenue. Fitch believes it is
unlikely that the regulator would choose to cut prices given the
toll rates' updated track record since 2009.
Infrastructure Dev. & Renewal - Midrange
Fully Operational Asset
The toll road has been fully operational since 2012. An independent
engineer annually reviews the O&M plan and budget. The structure
holds a six-month O&M reserve account, as well as a major
maintenance reserve account funded with the costs to be carried out
in the next 12 months, 50% in the next 13 to 24 months and 25% in
the next 25 to 36 months. The assessment on this attribute is
somewhat limited by the hand back requirements as included in the
concession, which oblige the concessionaire to return the project
to the grantor in a good and operable condition.
TJH has executed an amendment to the concession agreement in which
the tenor could be renewed, at any time during 2034, at TJH's
request for an additional 35 years. With this updated agreement,
the hand back requirements will fall after the maturity of the
notes. Nonetheless, Fitch's financial projections assume such
expenses will be made in 2035-2036, given that the concession
currently ends in 2036.
Debt Structure - 1 - Midrange
Typical Debt Structure
The notes are senior, fully amortizing, fixed-rate and with typical
project finance covenants. There is a six-month debt service
reserve account and a lock-up trigger at a 1.25x backward- and
forward-looking debt service coverage ratio (DSCR). No FX risk is
anticipated given the formula for an increase in toll rates
captures movements in the JMD/USD exchange rate.
Financial Profile
Under Fitch's Base Case, the project yields a minimum and average
DSCR of 2.4x in 2035 and 2.6x. Under Fitch's Rating Case, the
project yields a minimum and average DSCR of 2.0x in 2035 and 2.4x,
respectively, which is strong for the rating category under the
indicative thresholds of the applicable Fitch criteria, but
ultimately constrained by Jamaica's Country Ceiling.
PEER GROUP
The closest project in the region is Autopistas del Sol, S.A. (AdS;
B+/Positive Outlook) in Costa Rica. AdS and TJH are similar as both
are strong commuting assets within their respective country's
capital cities. They also share all attributes at the Midrange
level, but the difference in ratings comes from AdS's lower metrics
(average DSCR of 1.3x versus 2.4x of TJH under Fitch's rating
case).
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Weakening of the credit profile of the Jamaican sovereign,
particularly the risk of imposing capital controls affecting the
ability to convert currency;
- Nil or negative traffic growth rate for a sustained period.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Strengthening of the credit profile of the Jamaican sovereign,
particularly the risk of imposing capital controls affecting the
ability to convert currency.
SECURITY
- An onshore all assets debenture providing for (subject to certain
exceptions and limitations) a first priority security interest in
all present and after-acquired personal property of the Issuer
including all Project documents to which it is party, including the
Concession Agreement, and the local accounts, and further providing
for an assignment of the benefit of the Concession Agreement and
the other project documents;
- An assignment of the concession agreement providing for a
collateral assignment of the Issuer's interest in the Concession
Agreement;
- An onshore security trust deed providing for the appointment of
the local trustee and for the transaction security to be held on
trust for the Secured Parties;
- The offshore accounts under the Indenture Trustee.
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 Prior
----------- ------ -----
TransJamaican Highway
Limited
TransJamaican Highway
Limited/Toll Revenues
- First Lien/1 LT LT BB Affirmed BB
[*] JAMAICA: Exporters Urged to Diversify Markets
-------------------------------------------------
RJR News reports that immediate past president of the Jamaica
Manufacturers and Exporters Association (JMEA), John Mahfood, said
Jamaican exporters must diversify their markets to include CARICOM,
Latin America, Asia and Europe.
He gave the advise although he does not believe that US
President-elect Donald Trump will implement his election promise to
impose tariffs on imports, according to RJR News.
Among Trump's proposals are 25% tariff on those imported from
Mexico as well as a 10% tariff on all goods and services imported
from other parts of the world, including Jamaica, the report
notes.
Jamaica exported US$381.67 million in merchandise goods to the US
for January to August, and this amounted to 40.4% of total
merchandise exports, which tumbled by 8.44% to US$944.80 million,
the report relays.
CARICOM is a grouping of 20 countries: 15 Member States and five
Associate Members throughout the Americas, The Caribbean and
Atlantic Ocean.
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.
=======
P E R U
=======
BANCO INTERAMERICANO: Fitch Affirms BB+ LT IDR, Outlook Now Stable
------------------------------------------------------------------
Fitch Ratings has conducted a portfolio review of nine Peruvian
Financial Institutions following Fitch's Rating Outlook revision to
Stable from Negative of its assessment of Peru's banking system
operating environment (OE) and affirmation of the score at 'bbb-'.
Fitch's Outlook revision of the OE score follows the review on the
sovereign Outlook (see, "Fitch Revises Peru's Outlook to Stable;
Affirms at 'BBB'", dated Nov. 5, 2024.) and reflects the banking
system resilience through the cycles, despite the economic slowdown
and political instability. While Fitch expects limited credit
growth and some additional asset quality deterioration, the banking
system performance remains solid and stable. Sound bank
capitalization and liquidity should absorb any downside risks in
2025. Additionally, GDP growth is projected to reach around 2.4% in
2025, following an upward revision to 3.0% for 2024.
Fitch's core metrics for the OE assessment, the Operational Risk
Index (ORI) and GDP per capita are expected to remain stable and
pressures on business conditions for banks will be lower than in
2024. The latest ORI data available for 2024 was 41.1% compared to
41.3% in 2023, while the GDP per capita was USD8,500 compared to
USD7,500 in 2023.
Key Rating Drivers
State-Owned Development Agencies
Fondo Mivivienda S.A. (FMV)
Fitch revised FMV's Outlook to Stable from Negative mirroring the
same Outlook revision from the Peruvian government. Fitch
additionally affirmed the Long- and Short-Term Local and Foreign
Currency Issuer Default Ratings (IDRs) at 'BBB' and 'F2',
respectively. Fitch has also affirmed FMV's Government Support
Rating (GSR) at 'bbb'. FMV's IDRs are driven by its GSR, which is
equalized with Peru's 'BBB'/Stable Long-Term IDRs. The ratings
reflect Fitch's assessment of the Peruvian government's high
propensity and ability to provide timely support to FMV, if
needed.
Fitch's support assessment considers with high importance that FMV
is a government sponsored enterprise fully owned by the state and
its many operational and financial synergies with the public
administration. The ratings also consider with high importance
FMV's relevance in promoting and financing housing solutions in
Peru, especially for low- and middle-income segments, and its
critical role in the government's public policies to reduce the
country's still-elevated housing shortage.
Corporacion Financiera de Desarrollo S.A. (COFIDE)
Fitch revised COFIDE's Outlook to Stable from Negative, mirroring a
recent similar action on Peru's ratings. Fitch also affirmed
COFIDE's Long-Term and Short-Term Local and Foreign Currency and
IDRs at 'BBB' and 'F2', respectively, as these are driven by its
affirmed 'bbb' GSR. The ratings reflect Fitch's assessment of the
Peruvian government's high propensity and ability to provide timely
support to COFIDE, if needed.
Fitch's support assessment and ratings equalization considers with
high importance that the state is the majority shareholder and its
policy role focused on the country's infrastructure, economic and
social welfare and plays a critical role in implementing policies
directed at sectors with limited funding access or projects
underserved by commercial banks.
Private Banks and Related Entities
SCOTIABANK PERU S.A.A. (SBP)
Fitch has revised SBP's Outlook to Stable from Negative to reflect
that a potential downgrade on the country ceiling of the Peruvian
sovereign rating is not a concern with the revision of the Outlook
of Peru. Fitch additionally affirmed the Long-Term Foreign and
Local Currency IDRs at 'A-', Shareholder Support Rating (SSR) at
'a-'. Fitch has also affirmed the SBP's Short-Term Foreign and
Local Currency IDRs at 'F1'. SBP's IDRs and SSR are based on
expected support it would receive from its parent (The Bank of Nova
Scotia [BNS; AA-/Stable]), if needed. Fitch believes the parent's
propensity to support SBP is high given the strategic role that
this subsidiary play in its regional goals, as well as the
significant management and operational integration.
SBP's 'A-' Local Currency IDR is two notches above Peru's 'BBB'
Local Currency IDR, and at the same level of Peru's 'A-' Country
Ceiling, consistent with Fitch's criteria. SBP's 'A-' Long-Term
Foreign Currency IDR is capped by the Country Ceiling due to
transfer and convertibility risks.
Fitch affirmed SBP's Viability Rating (VR) at 'bbb', in line with
the implied VR. This rating is underpinned by its solid business
profile, sound market position, and adequate capitalization and
considering ordinary support. SBP's asset quality and profitability
remain pressured due to the systemic deterioration of the consumer
portfolio and the gross portfolio reduction. The bank's
non-performing loan (NPL) ratio increased to 4.0% in June 2024 from
3.8% at YE 2023, while its operating profit to risk-weighted asset
(RWA) ratio reached 0.5% in June 2024. This was impacted by
consistent regulatory and voluntary loan impairment charges, as
well as goodwill impairments related to the announcement to divest
the Crediscotia Financiera operation.
BANCO DE CREDITO DEL PERU (BCP)
Fitch revised Banco de Credito del Peru S.A.'s (BCP) Outlook to
Stable from Negative after the OE revision following the sovereign
rating action. Fitch has also affirmed BCP's Long-Term Foreign and
Local Currency IDRs at 'BBB', Short-Term Foreign and Local Currency
IDRs at 'F2', and GSR at 'bbb-'. BCP's IDRs are driven by its VR of
'bbb', which is in line with the implied VR. The bank's strong and
leading franchise in Peru, well-diversified business profile and
funding base, and sound and improving financial profile underpin
the ratings.
BCP is the largest bank in Peru and the main subsidiary of
Credicorp Ltd. (BBB/Stable), the country's largest financial
holding company. BCP's consolidated numbers show a market share of
33.7% by loans and 35.3% by deposits, as of 2Q24.
BCP would be likely to receive support from the Peruvian
government, given its size and systemic importance, should it be
required, underpinning its GSR. The ability of the sovereign to
provide support is reflected in its 'BBB'/Stable IDR and
underpinned by its sound financial position, ample international
reserves and low debt. Regulators have a clear mandate to protect
and preserve the banking system through conservative regulation and
capable supervision.
BBVA PERU
Fitch has affirmed Banco BBVA Peru's (BBVA Peru) Long-Term Foreign
and Local Currency IDRs at 'BBB' and the VR at 'bbb'. Fitch has
also affirmed the ST FC and LC IDRs at 'F2'. The Outlook for the LT
IDRs is Stable. In addition, Fitch has affirmed the SSR at 'bbb'.
BBVA Peru's IDRs are driven by the support it would receive from
its parent, Spain's Banco Bilbao Vizcaya Argentaria, S.A. (BBVA
S.A.; BBB+/Stable), should it be required. Fitch believes the
parent's propensity to support BBVA Peru is high - given the
strategic role this subsidiary plays in its regional goals.
The 'bbb' VR reflects a strong business profile underpinned by its
franchise and substantial market share as BBVA Peru remains the
country's second-largest bank. The VR also takes into consideration
moderate profitability metrics despite persistent challenges
deriving from asset-quality deterioration, and reasonable capital
metrics that could be enhanced by the parent, if needed.
INTERBANK
Fitch revised Banco Internacional del Peru S.A.A.'s (Interbank)
Outlook to Stable from Negative after the OE revision following the
sovereign rating action. Fitch has also affirmed Interbank's
Long-Term Foreign and Local Currency IDRs at 'BBB', and its VR at
'bbb'. Fitch has additionally affirmed the GSR at 'bbb-'.
Interbank's VR drives its IDR and it incorporates the institution's
robust positioning as Peru's fourth-largest universal commercial
bank, underscored by its significant retail banking footprint. This
is evidenced by the bank's market shares of 21.8% in consumer loans
and 15.0% in retail deposits as of June 2024, positioning the bank
among the largest Peruvian banks in market share.
The 'bbb-' GSR reflects high probability of support is forthcoming.
The Peruvian government has a high propensity to provide Interbank
support given its moderate systemic importance. The sovereign's
ability to provide support is reflected in its 'BBB'/Stable IDR,
which is underpinned by its sound financial position, ample
international reserves and low debt levels.
BANBIF
Fitch revised Banco Interamericano de Finanzas S.A.'s (BanBif)
Outlook to Stable from Negative, and affirmed its Long-Term Foreign
and Local Currency IDRs at 'BB+' and Local and Foreign Currency
Short-Term IDRs at 'B', respectively. Fitch has also affirmed its
VR at 'bb+' and GSR at 'bb-'.
The Stable Outlook on the Long-Term IDRs reflects the stabilization
of the operating environment, given the lessened downside risks
from the sovereign rating. BanBif's IDR are driven by its 'bb+' VR,
which considers the bank's modest franchise and a business model
that yields limited profitability and tight capital metrics.
CREDICORP LTD.
Fitch revised Credicorp Ltd.'s Outlook to Stable from Negative
following the Outlook revision on its main subsidiary, BCP. Fitch
has also affirmed Credicorp Ltd.'s Long-Term IDR at 'BBB' which are
driven primarily by BCP.
The equalization is driven mainly by Credicorp's low double
leverage, which improved to 99.1% at June 2024, and strong
liquidity management. Credicorp, a non-operating holding company,
has a long record of significant dividend flows, especially from
BCP, that comprise the bulk of its liquidity.
INTERCORP FINANCIAL SERVICES INC (IFS)
Fitch revised IFS's Outlook to Stable from Negative following the
Outlook revision on its main subsidiary, Interbank. Fitch has also
affirmed IFS's Long-Term Foreign and Local Currency IDRs at 'BBB-'
which are one notch below those of Interbank, reflecting IFS'
separate jurisdiction (Panama), the lack of regulatory focus on IFS
on a consolidated basis, and the potential for regulatory
restriction of liquidity upstreaming to IFS in the event of
solvency pressures at Interbank. The rating also considers IFS' low
double leverage at 106.5% at June 2024.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Fondo Mivivienda
- FMV's ratings will mirror any potential negative change in Peru's
sovereign ratings;
- Although not a baseline scenario, FMV's IDRs and GSR could change
if Fitch perceives a decrease in the entity's strategic importance
to government public policies, particularly through housing finance
negative changes or meaningfully reducing the amounts of government
subsidies.
COFIDE
- COFIDE's ratings will mirror any potential negative change in
Peru's sovereign ratings;
- Although not a baseline scenario, COFIDE's IDRs and GSR could
change if Fitch perceives a decrease in the company's strategic
importance to the government's public policies, such as the shift
away from supporting commercial companies, particularly SMEs,
either directly or through funds managed by COFIDE.
Scotiabank Peru
- A sovereign downgrade would result in similar rating actions on
SBP's SSR, VR, and Foreign and Local Currency IDRs, as Fitch rarely
rates VRs above the sovereign or SSRs and Foreign Currency IDRs
above the Country Ceiling.
- Although not likely over its parent's rating horizon (given its
Stable Outlook), and absent of a sovereign downgrade, a downgrade
of BNS (from AA-/Stable) by three or more notches would trigger a
downgrade of SBP. However, in the event of a downgrade of BNS's
IDRs to the level of Peru current sovereign (BBB/Stable) or below,
SBP's ratings would remain at the level determined by its own VR
(currently at bbb).
- Pressure on SBP's VR could arise from a downgrade in the OE or a
significant asset quality and profitability deterioration that
erodes SBP's reserve and capital cushion, specifically operating
profit/RWA sustained below its historical average of 2.0% and
common equity Tier 1 (CET1) ratio below 13%.
BCP
- BCP's IDRs are sensitive to material deterioration in the local
OE or a negative sovereign rating action;
- BCP's VR could be affected if asset quality deteriorates
significantly and causes a sustained decline in operating profits
to RWAs below 2.5%, and if the bank's CET1 ratio falls below 10%,
assuming maintenance of excess reserves and noncore loss absorbing
capital, for more than four consecutive quarters.
BBVA PERU
- Fitch's IDRs and Outlook on BBVA Peru are driven by its SSR. A
negative rating action on BBVA S.A. would result in a similar
action on the SSR; however, BBVA Peru's IDRs would only be
downgraded if its VR were also downgraded, given Fitch's "higher
of" approach;
- The SSR would be affected by a negative change in BBVA's ability
or willingness to support the bank;
- Any negative rating action on the sovereign or in Fitch's OE
assessment would lead to a similar action on BBVA Peru's VR;
- The VR could be affected if asset quality deteriorates
significantly, leading to a sustained decline in operating
performance and capital cushion - particularly a sustained decline
in the CET1 ratio to under 9%, assuming maintenance of excess
reserves and non-core loss-absorbing capital.
INTERBANK
- Interbank's VR could be downgraded if asset quality deterioration
causes a sustained decline in the bank's operating profit to RWAs
ratio to less than 2.0%, and loss absorption capacity, in the form
of a CET1 ratio below 10% or a relevant decline in reserve coverage
for more than four consecutive quarters;
- The IDRs are sensitive to a negative rating action on the
sovereign or any deterioration of Fitch's assessment on the OE
score.
BANBIF
- BanBif's IDRs are sensitive to a material deterioration in the
local OE or a negative sovereign rating action;
- The ratings could be downgraded if the CET1 to RWA ratio falls
consistently below 9% and an increased and sustained NPL ratio over
4%.
CREDICORP LTD
- Credicorp's IDRs would remain at the same level as those of BCP,
and would move in tandem with any rating action on its main
operating subsidiary. However, the relativity between these two
entities' ratings could also be affected - and the holding company
downgraded - in the event of a material and sustained increase in
Credicorp's double-leverage metrics (above 1.2x), and if Fitch
perceives a material weakening of the holding company's liquidity
position and its management;
- A change in the dividend flows from the operating companies or
debt levels at the holding company that affects its debt coverage
ratios could also be detrimental to Credicorp's ratings.
INTERCORP FINANCIAL SERVICES (IFS)
- IFS's ratings are sensitive to a change in Interbank's ratings;
- A reduction on the importance of Interbank's role in the group or
increase in the complexity of the group's structure;
- A material and consistent increase in IFS's common equity double
leverage above 120% or deterioration in its standalone liquidity
profile.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Fondo Mivivienda
- Positive rating actions on FMV will mirror any potential positive
change in Peru's sovereign rating.
COFIDE
- Positive rating actions will mirror any potential positive change
in Peru's sovereign rating.
Scotiabank Peru
- Over the medium term, these ratings could be upgraded if the
sovereign's ratings and Country Ceiling are upgraded;
- SBP's VR could be upgraded by a combination of positive
improvement in the OE and a strengthening of the financial
profile.
BCP
- Over the medium term, BCP's VR could be upgraded by the
confluence of improvement in the OE and the bank's financial
profile.
BBVA PERU
- The IDRs could benefit from any significant improvement in the
parent's ability to provide support, as evident from BBVA's IDR,
although subject to sovereign rating and Country Ceiling
considerations.
- The SSR would be affected by a positive change in BBVA's ability
or willingness to support the bank;
- There is limited upside potential for the VR, given the
sovereign's current rating;
- Rating upgrades are possible over the medium term via a
confluence of material improvement in the OE and the bank's
financial profile, within the context of a sovereign rating
upgrade, as Fitch rarely rates bank VRs above the sovereign.
INTERBANK
- Interbank's IDRs are constrained by the sovereign's ratings; over
the medium term, Interbank's ratings could be upgraded by the
confluence of an improvement of the OE and the banks' financial
profiles in the context of a sovereign upgrade.
BANBIF
- The VR could be upgraded if the bank manages to improve and
sustain its operating profit to RWA ratio over 1.5% and CET1 to RWA
ratio over 11%.
CREDICORP LTD
- Credicorp's ratings would move in tandem with positive rating
actions on its main operating subsidiary, BCP.
INTERCORP FINANCIAL SERVICES (IFS)
- IFS's ratings are sensitive to a positive rating action on
Interbank's ratings.
OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS
Cofide, Mivivienda, BCP and Credicorp
The senior unsecured bonds are rated at the same level as the
entities' IDRs, considering the absence of credit enhancement or
any subordination feature.
OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES
Cofide, Mivivienda, BCP and Credicorp
Factors That Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Senior unsecured debt would be downgraded if the entities'
Long-Term IDR is downgraded.
Factors That Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Senior unsecured debt would be upgraded if the entities'
Long-Term IDR is upgraded;
GOVERNMENT SUPPORT RATING
BCP, INTERBANK, BANBIF
Factors That Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- BCP's, Interbank's and Banbif's Government Support Ratings (GSRs)
would be affected if Fitch negatively changes its assessment of the
government's ability and/or willingness to support the banks;
- Banbif's GSR could also be downgraded if the bank loses material
market share in terms of loans and customer deposits.
Factors That Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
BCP, INTERBANK, BANBIF
- BCP's and Interbank's GSRs would be affected if Fitch positively
changes its assessment of the government's ability and/or
willingness to support the banks;
- Upside potential for Banbif's GSR is limited and can only occur
over time with material growth of the bank's systemic importance.
VR ADJUSTMENTS
BCP, BBVA Peru, Scotiabank Peru, Interbank, Banbif
- The OE score has been assigned above the implied score due to the
following adjustment reasons: sovereign rating (positive).
Interbank
- The Capitalization and Leverage score has been assigned above the
implied score due to the following adjustment reason: Reserve
Coverage and Asset Valuation (positive).
BBVA Peru
- The Capitalization and Leverage score has been assigned above the
implied score due to the following adjustment reason: Capital
Flexibility and Ordinary Support (positive).
Scotiabank Peru
- The Asset Quality Score has been assigned below the implied score
due the following adjustment reasons: concentrations (negative).
Public Ratings with Credit Linkage to other ratings
- BBVA Peru ratings are support driven by Banco Bilbao Vizcaya
Argentaria S.A.;
- Scotiabank Peru ratings are support by BNS;
- Cofide's ratings are support driven by Peru;
- Mivivienda's ratings are support driven. by Peru;
- Credicorp Ltd ratings are support driven by Banco de Credito del
Peru;
- Intercorp Financial Services Inc are support driven by
Interbank.
ESG Considerations
FMV has an ESG Relevance Score of '4'[+] for Human Rights,
Community Relations, Access & Affordability. This reflects its
essential policy role in supporting government policies to ensure
low-income individuals have access to low-cost housing. FMV's key
social role forms part of its support assessment. These
considerations have a moderately positive impact on FMV's credit
profile and are relevant to its ratings in conjunction with other
factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
----------- ------ -----
Credicorp Ltd. LT IDR BBB Affirmed BBB
ST IDR F2 Affirmed F2
senior
unsecured LT BBB Affirmed BBB
Banco
Interamericano
de Finanzas 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-
Banco BBVA Peru LT IDR BBB Affirmed BBB
ST IDR F2 Affirmed F2
LC LT IDR BBB Affirmed BBB
LC ST IDR F2 Affirmed F2
Viability bbb Affirmed bbb
Shareholder Support bbb Affirmed bbb
Corporacion
Financiera de
Desarrollo
S.A. (COFIDE) LT IDR BBB Affirmed BBB
ST IDR F2 Affirmed F2
LC LT IDR BBB Affirmed BBB
LC ST IDR F2 Affirmed F2
Government Support bbb Affirmed bbb
senior
unsecured LT BBB Affirmed BBB
Intercorp
Financial
Services Inc LT IDR BBB- Affirmed BBB-
ST IDR F3 Affirmed F3
LC LT IDR BBB- Affirmed BBB-
LC ST IDR F3 Affirmed F3
senior
unsecured LT BBB- Affirmed BBB-
Fondo Mivivienda
S.A. LT IDR BBB Affirmed BBB
ST IDR F2 Affirmed F2
LC LT IDR BBB Affirmed BBB
LC ST IDR F2 Affirmed F2
Government Support bbb Affirmed bbb
senior
unsecured LT BBB Affirmed BBB
Banco
Internacional
del Peru S.A.A.
– Interbank LT IDR BBB Affirmed BBB
ST IDR F3 Affirmed F3
LC LT IDR BBB Affirmed BBB
LC ST IDR F3 Affirmed F3
Viability bbb Affirmed bbb
Government Support bbb- Affirmed bbb-
Banco de Credito
del Peru S.A. LT IDR BBB Affirmed BBB
ST IDR F2 Affirmed F2
LC LT IDR BBB Affirmed BBB
LC ST IDR F2 Affirmed F2
Viability bbb Affirmed bbb
Government Support bbb- Affirmed bbb-
senior
unsecured LT BBB Affirmed BBB
Scotiabank
Peru S.A.A. LT IDR A- Affirmed A-
ST IDR F1 Affirmed F1
LC LT IDR A- Affirmed A-
LC ST IDR F1 Affirmed F1
Viability bbb Affirmed bbb
Shareholder Support a- Affirmed a-
===============
X X X X X X X X
===============
[*] BOND PRICING: For the Week from Nov. 11 to 15, 2024
-------------------------------------------------------
Issuer Name Cpn Price Maturity Cntry Curr
---------- --- ----- -------- ----- ----
Aeropuerto Tocumen 4 70.3 8/11/2041 PA USD
AES Tiete Energia SA 6.8 0.7 4/15/2024 BR BRL
Agile Group Holdings 5.8 16.4 1/2/2025 KY USD
Agile Group Holdings 6.1 13.4 10/13/2025 KY USD
Agile Group Holdings 5.5 12.6 5/17/2026 KY USD
Agile Group Holdings 7.9 3.3 KY USD
Agile Group Holdings 5.5 15.1 4/21/2025 KY USD
Agile Group Holdings 7.8 3.3 KY USD
Alfa Desarrollo SpA 4.6 74.7 9/27/2051 CL USD
Alfa Desarrollo SpA 4.6 74.6 9/27/2051 CL USD
Alibaba Group Holding 3.2 66 2/9/2051 KY USD
Alibaba Group Holding 2.7 68.5 2/9/2041 KY USD
Alibaba Group Holding 3.3 63.4 2/9/2061 KY USD
AMTD IDEA Group 1.5 7.5 KY USD
AMTD IDEA Group 4.5 55 KY SGD
Amwaj 6.4 69.7 KY USD
Amwaj 4.5 49.6 KY USD
Argentina Bonar Bonds 1 43.3 7/9/2029 AR USD
Argentina Treasury Bond 3.3 45.8 4/30/2024 AR USD
Argentine Bonos del Te 15.5 39.7 10/17/2026 AR ARS
Argentine Gov't Int'l 1 46.4 7/9/2029 AR USD
Argentine Gov't Int'l 0.5 41.4 7/9/2029 AR EUR
Argentine Gov't Int'l 0.1 42 7/9/2030 AR EUR
Ascent Finance 1.2 61.6 7/12/2047 KY EUR
Ascent Finance 3.8 67 6/28/2047 KY AUD
Ascent Finance 3.4 65.7 2/6/2043 KY AUD
Astra Cumulative 2019 1.5 62 11/1/2029 KY USD
At Home Cayman 11.5 69.3 5/12/2028 KY USD
At Home Cayman 11.5 70 5/12/2028 KY USD
AYC Finance 3.9 62.2 KY USD
Banco Davivienda SA 6.7 64.1 CO USD
Banco Davivienda SA 6.7 70.3 CO USD
Banco de Chile 3.6 75.7 11/18/2039 CL AUD
Banco de Chile 3.5 75.4 9/5/2039 CL AUD
Banco de Chile 2.7 74.7 3/9/2035 CL AUD
Banco del Estado de Ch 3.1 70.5 2/21/2040 CL AUD
Banco del Estado de Ch 2.8 67 3/13/2040 CL AUD
Banco Nacional de Pana 2.5 74.7 8/11/2030 PA USD
Banco Santander Chile 3.1 70.6 2/28/2039 CL AUD
Banco Santander Chile 1.3 73.5 11/29/2034 CL EUR
Banda de Couro Energe 8 54.4 1/15/2027 BR BRL
Baraunas II Energeti 8 12.4 1/15/2027 BR BRL
Bishopsgate Asset Fi 4.8 66.9 8/14/2044 KY GBP
Bolivian Gov't Int'l 4.5 55.6 3/20/2028 BO USD
Bolivian Gov't Int'l 7.5 57.2 3/2/2030 BO USD
Bolivian Gov't Int'l 4.5 55.8 3/20/2028 BO USD
Bolivian Gov't Int'l 7.5 57.2 3/2/2030 BO USD
BOPREAL 5 64.7 10/31/2027 AR USD
BOPREAL 3 60.9 5/31/2026 AR USD
Brazilian Gov't Int'l4.8 73.8 1/14/2050 BR USD
BRF SA 5.8 73.5 9/21/2050 BR USD
BRF SA 5.8 73.6 9/21/2050 BR USD
Camposol SA 6 72.1 2/3/2027 PE USD
Camposol SA 6 72.5 2/3/2027 PE USD
CFLD Cayman Investment 2.5 3.4 1/31/2031 KY USD
CFLD Cayman Investment 2.5 3.6 1/31/2031 KY USD
CFLD Cayman Investment 2.5 3.1 1/31/2031 KY USD
CFLD Cayman Investment 2.5 3.8 1/31/2031 KY USD
CFLD Cayman Investment 2.5 2.4 1/31/2031 KY USD
CFLD Cayman Investment 2.5 3.4 1/31/2031 KY USD
CFLD Cayman Investment 2.5 8.7 1/31/2031 KY USD
CFLD Cayman Investment 2.5 3.4 1/31/2031 KY USD
CFLD Cayman Investment 2.5 2.2 1/31/2031 KY USD
Chile Gov't Int'l Bond 3.5 72.6 1/25/2050 CL USD
Chile Gov't Int'l Bond 3.1 73.4 5/7/2041 CL USD
Chile Gov't Int'l Bond 3.1 62.7 1/22/2061 CL USD
Chile Gov't Int'l Bond 3.5 72.1 4/15/2053 CL USD
Chile Gov't Int'l Bond 1.3 67.4 1/29/2040 CL EUR
Chile Gov't Int'l Bond 1.3 54 1/22/2051 CL EUR
Chile Gov't Int'l Bond 3.3 62.8 9/21/2071 CL USD
Chile Gov't Int'l Bond 1.3 74.2 7/26/2036 CL EUR
China Overseas Cayman 3.1 75.1 3/2/2035 KY USD
China Yuhua Education 0.9 65.8 12/27/2024 KY HKD
CK Hutchison Int'l 19 3.4 74 9/6/2049 KY USD
CK Hutchison Int'l 19 3.4 73.9 9/6/2049 KY USD
CK Hutchison Int'l 20 3.4 73.7 5/8/2050 KY USD
CK Hutchison Int'l 20 3.4 73.8 5/8/2050 KY USD
Colombia Gov't Int'l 3.9 2/15/2061 CO USD
Colombia Gov't Int'l 4.1 61.6 5/15/2051 CO USD
Colombia Gov't Int'l 5.2 72.9 5/15/2049 CO USD
Colombia Gov't Int'l 4.1 67 2/22/2042 CO USD
Colombia Gov't Int'l 6.3 73.5 7/9/2036 CO COP
Colombia Gov't Int'l 7.3 71.7 10/26/2050 CO COP
Colombia Gov't Int'l 7.3 71.7 10/26/2050 CO COP
Colombia Gov't Int'l 5 72 6/15/2045 CO USD
Colombia Gov't Int'l 6.3 73.5 7/9/2036 CO COP
Colombia Telecom 5 66.9 7/17/2030 CO USD
Colombia Telecom 5 67 7/17/2030 CO USD
Colombian TES 7.3 71.6 10/26/2050 CO COP
Colombian TES 6.3 73.4 7/9/2036 CO COP
Corp Nacional de Chile 3.7 67.5 1/30/2050 CL USD
Corp Nacional de Chile 3.2 61.2 1/15/2051 CL USD
Corp Nacional de Chile 3.7 67.5 1/30/2050 CL USD
Corp Nacional de Chile 3.6 74 7/22/2039 CL AUD
Corp Nacional de Chile 3.2 61.2 1/15/2051 CL USD
Dibens Leasing S/A 10.9 30.6 3/1/2035 BR BRL
Dibens Leasing S/A 10.9 34.6 3/1/2035 BR BRL
Dibens Leasing S/A 10.9 29.2 3/1/2035 BR BRL
Earls Eight 1.7 72 6/20/2032 KY AUD
Earls Eight 0.1 64.2 12/20/2031 KY AUD
Ecopetrol SA 5.9 74.2 5/28/2045 CO USD
Ecopetrol SA 5.9 70.7 11/2/2051 CO USD
El Salvador Gov't Int 7.1 68.7 1/20/2050 SV USD
El Salvador Gov't Int 7.6 72.9 9/21/2034 SV USD
El Salvador Gov't Int 7.6 73.3 2/1/2041 SV USD
El Salvador Gov't Int 5.9 65.1 1/30/2025 SV USD
El Salvador Gov't Int 7.6 73.5 9/21/2034 SV USD
El Salvador Gov't Int 7.1 68.7 1/20/2050 SV USD
El Salvador Gov't Int 7.6 73.5 2/1/2041 SV USD
Embotelladora Andina 6.5 23.3 6/1/2026 CL CLP
EFE 3.8 65.8 9/14/2061 CL USD
EFE 3.1 60 8/18/2050 CL USD
EFE 3.1 59.9 8/18/2050 CL USD
EFE 3.8 65.8 9/14/2061 CL USD
EFE 6.5 11.2 1/1/2026 CL CLP
ETESA 5.1 71.8 5/2/2049 PA USD
Empresa de Transmision 5.1 72.2 5/2/2049 PA USD
Metro SA 3.7 65.2 9/13/2061 CL USD
Metro SA 3.7 65.1 9/13/2061 CL USD
Metro SA 5.5 50.2 7/15/2027 CL CLP
Edsa SA 5 62.6 5/11/2025 AR USD
ENAP 4.5 73.3 9/14/2047 CL USD
ENAP 4.5 73.4 9/14/2047 CL USD
ENA Master Trust 4 70.8 5/19/2048 PA USD
ENA Master Trust 4 71.1 5/19/2048 PA USD
Enel Generacion Chile 6.2 29.4 10/15/2028 CL CLP
Equatorial Energia 11 1.1 10/15/2029 BR BRL
Equatorial Energia 10.8 1 5/15/2028 BR BRL
Esval SA 3.5 13.2 2/15/2026 CL CLP
Farfetch 3.8 4.3 5/1/2027 KY USD
Fospar S/A 6.5 1.4 5/15/2026 BR BRL
GDM Argentina SA 2.5 0 9/8/2024 AR USD
GDS Holdings 4.5 67.7 1/31/2030 KY USD
Generacion Mediterrane 4.6 0 11/12/2024 AR ARS
General Shopping Finan 10 66.2 KY USD
General Shopping Finan 10 65.1 KY USD
Genneia SA 2 56.4 7/14/2028 AR USD
Greenland Hong Kong 10.2 12.9 KY USD
Guacolda Energia SA 4.6 70.4 4/30/2025 CL USD
Guacolda Energia SA 10 70 12/30/2030 CL USD
Guacolda Energia SA 4.6 70.6 4/30/2025 CL USD
Guacolda Energia SA 10 70 12/30/2030 CL USD
Hector A Bertone SA 1.9 0 4/7/2024 AR USD
Hilong Holding 9.8 65.7 11/18/2024 KY USD
Hilong Holding 9.8 62.2 11/18/2024 KY USD
Hilong Holding 9.8 65.6 11/18/2024 KY USD
ICBC DO Brasil 3.3 59.5 BR USD
IMPSA 1 75 12/30/2031 AR USD
Itau Unibanco SA/Nassau 5.8 20.1 5/20/2027 BR BRL
Jamaica Gov't Bond 6.3 67.8 7/11/2048 JM JMD
Jamaica Gov't Bond 8.5 73 12/21/2061 JM JMD
Lani Finance 1.7 64.1 3/14/2049 KY EUR
Lani Finance 1.9 66.5 9/20/2048 KY EUR
Lani Finance 1.9 67.5 10/19/2048 KY EUR
Lani Finance 3.1 64.7 10/19/2048 KY AUD
Link Finance Cayman 2.2 69.8 10/27/2038 KY HKD
LIPSA Srl 1 0 8/23/2024 AR USD
Logan Group Co 7 5 KY USD
Longfor Group Holdings 4 45.2 9/16/2029 KY USD
Longfor Group Holdings 3.4 58 4/13/2027 KY USD
Longfor Group Holdings 3.9 40.2 1/13/2032 KY USD
Longfor Group Holdings 4.5 55.2 1/16/2028 KY USD
Luminis III 2.3 41.5 9/22/2048 KY USD
Luminis III 2.4 54 9/22/2048 KY AUD
Luminis IV 3.2 69.6 1/22/2042 KY AUD
Luminis 2.3 53.5 9/22/2048 KY AUD
Lunar Funding I 1.7 70.7 8/11/2056 KY GBP
MTR Corp CI 3 72.6 3/11/2051 KY HKD
MTR Corp CI 2.8 72.7 9/6/2047 KY HKD
MTR Corp CI 3.2 73.1 2/5/2055 KY HKD
MTR Corp CI 3 72.5 3/11/2051 KY HKD
Panama Gov't Int'l Bon 4.5 64.1 4/1/2056 PA USD
Panama Gov't Int'l Bon 2.3 70.3 9/29/2032 PA USD
Panama Gov't Int'l Bon 3.9 56.6 7/23/2060 PA USD
Panama Gov't Int'l Bon 3.3 75.7 1/19/2033 PA USD
Panama Gov't Int'l Bon 4.5 65.7 4/16/2050 PA USD
Panama Gov't Int'l Bon 4.5 63 1/19/2063 PA USD
Panama Gov't Int'l Bon 4.5 67.3 5/15/2047 PA USD
Panama Gov't Int'l Bon 4.3 63.8 4/29/2053 PA USD
Peruvian Gov't Int'l 2.8 57.2 12/1/2060 PE USD
Peruvian Gov't Int'l 3.2 57 7/28/2121 PE USD
Peruvian Gov't Int'l 3.6 71.3 3/10/2051 PE USD
Peruvian Gov't Int'l 3.6 65.4 1/15/2072 PE USD
Peruvian Gov't Int'l 3.3 74 3/11/2041 PE USD
Petroleos del Peru SA 5.6 66.3 6/19/2047 PE USD
Petroleos del Peru SA 5.6 66.4 6/19/2047 PE USD
Powerlong Real Estate 6.3 10.3 8/10/2024 KY USD
Provincia de Cordoba 7.1 39.7 10/27/2026 AR USD
Provincia de la Rioja 4.5 55.5 1/20/2027 AR USD
Provincia de la Rioja 7.5 51.1 7/20/2032 AR USD
Chaco Argentina 4 0 12/4/2026 AR USD
QNB Finance 13.5 65.4 10/6/2025 KY TRY
QNB Finance 11.5 73.2 1/30/2025 KY TRY
QNB Finance 2.9 73.4 9/16/2035 KY AUD
QNB Finance 2.9 72.1 12/4/2035 KY AUD
QNB Finance 3 74.6 2/14/2035 KY AUD
QNB Finance 3.4 70.7 10/21/2039 KY AUD
Radiance Holdings Grou 7.8 69.6 3/20/2024 KY USD
Rio Alto Energias Reno 7 28.7 7/15/2027 BR BRL
Santander Consumer Ch 2.9 72.5 11/27/2034 CL AUD
Seazen Group 6 70.3 8/12/2024 KY USD
Seazen Group 4.5 30.6 7/13/2025 KY USD
Shui On Dev't 5.5 73.2 3/3/2025 KY USD
Shui On Dev't 5.5 61.7 6/29/2026 KY USD
Silk Road Investments 2.9 66 1/23/2042 KY AUD
Skylark 1.8 59.1 4/4/2039 KY GBP
Autopista Central 5.3 37.3 12/15/2026 CL CLP
Vespucio Norte 5.3 50.7 12/15/2028 CL CLP
Minera de Chile SA 3.5 65.5 9/10/2051 CL USD
Minera de Chile SA 3.5 65.4 9/10/2051 CL USD
Southern Water Services 3 70.9 5/28/2037 KY GBP
SPE Saneamento RIO 1 7.2 10.7 1/15/2042 BR BRL
SPE Saneamento RIO 2 6.9 10.3 1/15/2034 BR BRL
SPE Saneamento RIO 3 7.2 10.8 1/15/2042 BR BRL
SPE Saneamento RIO 4 6.9 10.3 1/15/2034 BR BRL
Spica 2 74.6 3/24/2033 KY AUD
Spirit Loyalty Cayman 8 72.1 9/20/2025 KY USD
Spirit Loyalty Cayman 8 72.5 9/20/2025 KY USD
Spirit Loyalty Cayman 8 72 9/20/2025 KY USD
Spirit Loyalty Cayman 8 70.9 9/20/2025 KY USD
Sylph 2.7 68.3 3/25/2036 KY USD
Sylph 2.4 64.1 9/25/2036 KY USD
Sylph 3.1 74.6 9/25/2035 KY USD
Sylph 2.9 74.1 6/24/2036 KY AUD
SYN prop e tech SA 11.1 21.1 3/15/2024 BR BRL
Telecom Argentina SA 1 74.1 3/9/2027 AR USD
Telecom Argentina SA 1 66.2 2/10/2028 AR USD
Telefonica Moviles Chi 3.5 74.1 11/18/2031 CL USD
Telefonica Moviles Chi 3.5 74.2 11/18/2031 CL USD
Tencent Holdings 3.8 75.4 4/22/2051 KY USD
Tencent Holdings 3.2 67.3 6/3/2050 KY USD
Tencent Holdings 3.3 63.6 6/3/2060 KY USD
Tencent Holdings 3.9 73.4 4/22/2061 KY USD
Tencent Holdings 3.8 74.8 4/22/2051 KY USD
Tencent Holdings 3.2 67.2 6/3/2050 KY USD
Tencent Holdings 3.3 63.8 6/3/2060 KY USD
Tencent Holdings 3.9 73.2 4/22/2061 KY USD
Three Gorges Finance 3.2 70.5 10/16/2049 KY USD
Grupo Travessia 9 1.6 1/20/2032 BR BRL
Vina Santa Rita SA 4.4 63.8 9/15/2030 CL CLP
Volcan Cia Minera SAA 4.4 61.7 2/11/2026 PE USD
Volcan Cia Minera SAA 4.4 61.8 2/11/2026 PE USD
VTR Comunicaciones SpA 5.1 62.5 1/15/2028 CL USD
VTR Comunicaciones SpA 4.4 62.9 4/15/2029 CL USD
VTR Comunicaciones SpA 5.1 63.1 1/15/2028 CL USD
VTR Comunicaciones SpA 4.4 63.1 4/15/2029 CL USD
YPF SA 7 72.5 12/15/2047 AR USD
YPF SA 7 72.1 12/15/2047 AR USD
YPF SA 1 65.9 4/25/2027 AR USD
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.
Copyright 2024. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
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The TCR Latin America subscription rate is US$775 per half-year,
delivered via e-mail. Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each. For subscription information,
contact Peter A. Chapman at 215-945-7000.
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* * * End of Transmission * * *