/raid1/www/Hosts/bankrupt/TCRLA_Public/241219.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
Thursday, December 19, 2024, Vol. 25, No. 254
Headlines
A R G E N T I N A
ARGENTINA: Milei Heads Into 2025 w/ New Feather in Cap
B R A Z I L
B3 SA: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable
BRAZIL: Lifts Key Interest Rate by 1%; Promises Two More Hikes
BRAZIL: Pernambuco to Get $32.8MM IDB Loan for Judiciary Services
UNIDAS LOCACOES: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable
C A Y M A N I S L A N D S
AIRNET TECH: Regains Compliance With Nasdaq MVPHS Requirement
J A M A I C A
JAMAICA: BOJ Auctions $50 Billion Certificate of Deposit
P U E R T O R I C O
BED BATH & BEYOND: Settles 401(k) Plan Fee Dispute
PUERTO RICO: Judge Urges Swift Resolution of PREPA Debt Deal
- - - - -
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A R G E N T I N A
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ARGENTINA: Milei Heads Into 2025 w/ New Feather in Cap
-------------------------------------------------------
James Grainger at Buenos Aires Times reports that President Javier
Milei is heading into the New Year with another feather in his cap:
consumer prices rose by just 2.4 percent in November, below the
expectations of market analysts and experts.
Inflation, so often the main complaint of Argentines, has now
decelerated for a fourth consecutive month with annual inflation
running at 166 percent, according to Buenos Aires Times.
Prices are up 112 percent in the calendar year, according to data
from the INDEC national statistics bureau, the report notes.
The news is another boost for Milei, who in a nationwide broadcast
marking his first 12 months in office, promised Argentines that
inflation will soon be "a bad memory," the report relays.
Inflation had dropped to 2.7 percent in October, the previous month
- the lowest monthly level in the last three years, the report
discloses.
Most private estimates had expected a rate of less than three
percent, the report notes. The most recent REM market expectations
survey, conducted by the Central Bank, forecast a rate of 2.9
percent, while official data from the Buenos Aires City government,
for the same month, showed prices rose 3.2 percent in the nation's
capital, the report says.
Instead, the government has been boosted by the shaving of a
further 0.4 points to record another month of deceleration, the
report discloses.
Tackling inflation has been one of Milei's greatest successes to
date, the report relays. When he took office last December, the
self-professed "anarcho-capitalist" immediately devalued the peso
by 52 percent, propelling inflation up to a monthly 25.5 percent,
recalls the report. Now the rate is less than a tenth of that
figure.
However, the cost of slowing inflation has been rising poverty,
falling consumption and a deeper recession, the report notes. More
than half of Argentines are considered poor, according to
government and private estimates, the report discloses.
November Breakdown
According to the report, last month's price hikes were led by
education, which recorded a rise of 5.1 percent over the month.
Housing, utilities and fuel soared 4.5 percent, with alcoholic
drinks and tobacco rising four percent.
Restaurants and hotels, transport, recreation and culture and
healthcare also recorded above-average hikes, the report
discloses.
At the other end of the scale, consumer prices for food and
beverages, so often the leading category, rose only 0.9 percent
over the month - the lowest across all sectors, the report says.
Regulated prices rose 3.5 percent in November, with core inflation
(excluding seasonal and regulated prices) at 2.7 percent, the
report discloses. Seasonal items were up 1.2 percent. Prices rose
the most in Patagonia and Greater Buenos Aires, the report notes.
Seasonal prices decreased by 1.2 percent, adds the report.
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.
On Nov. 15, 2024, Fitch Ratings has upgraded Argentina's
Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'CCC'
from 'CC', and its Long-Term Local-Currency IDR to 'CCC' from
'CCC-'. Argentina's upgrade to 'CCC' from 'CC' reflects
developments that have improved Fitch's confidence in the
authorities' ability to make upcoming foreign-currency bond
payments without seeking relief of some sort.
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.
Moody's Investors Service, in September 2022, affirmed Argentina's
Ca foreign-currency and local-currency long-term issuer and senior
unsecured ratings. The outlook remains stable. The decision to
affirm the Ca ratings balances Argentina's limited market access,
weak governance, and history of recurrent debt restructurings with
recent efforts to marshal fiscal and monetary measures to start
addressing underlying macroeconomic imbalances in the context of
the IMF program that was approved in 2022, according to Moody's.
DBRS, Inc. confirmed Argentina's Long-Term Foreign Currency Issuer
Rating at CCC and downgraded its Long-Term Local Currency Issuer
Rating to CCC from CCC (high) on March 3, 2023.
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B R A Z I L
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B3 SA: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable
-------------------------------------------------------
Fitch Ratings has affirmed B3 S.A. Brasil, Bolsa, Balcao's (B3)
Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs)
at 'BB+'. Fitch has also affirmed B3's Short-Term IDRs at 'B'.
Fitch has additionally affirmed B3's National Long- and Short-Term
Ratings at 'AAA(bra)'/'F1+(bra)', respectively. The Rating Outlook
for the Long-Term IDRs and Long-Term National Rating is Stable.
Key Rating Drivers
Ratings Based on SCP: B3's IDRs are based on its standalone credit
profile (SCP) which is below its implied SCP, reflecting the higher
influence of the Sector Risk Operating Environment (SROE) of 'bb'.
The assigned SCP is one notch above the SROE and one notch above
Brazil's sovereign rating (BB/Stable), reflecting the company's
robust business profile. Fitch does not expect the differential to
widen in the foreseeable future.
Dominant Franchise; Increasing Diversification: B3 benefits from
its dominant domestic franchise in trading and clearing services
across multiple asset classes in Brazil. The entity reported a
total net operating income (TOI) of USD 1.24 billion as of 9M24,
USD1.7 billion on average in the last four years, which is
commensurate with Fitch's 'bbb' category for business profile
benchmark for FMIs. Revenues increased by 6.4% in the first nine
months of 2024 compared to the same period in 2023, driven by B3's
expanding non-trading verticals, which provides more stability and
diversification to revenues and its business profile, even under
adverse conditions.
Sound Operational Risk Management: Fitch considers B3's margining
process framework and its safeguard structures robust and
well-managed, which reduces credit and counterparty risks stemming
from its central counterparty clearing (CCPs) activities. This
assessment considers the collection of guaranty funds and default
waterfall procedures, which Fitch views as effective. There were no
past cases of default. From B3's CCPs' total margin collateral,
83.5% is related to Brazil´s government securities, which
increases B3 exposure to the sovereign debt and could pose a risk
in the event of sovereign deterioration.
While operational risks have been adequately managed as reflected
in good system availability ratios, legal risks stemming from tax
and civil proceedings, also underpin Fitch's risk profile
assessment. These represents a high 2.9x B3's total equity position
as of September 2024 - stable compared with a year ago. The
proceedings are currently classified as "possible" according to
B3's financial statements. In Fitch's assessment, no loss was
assumed under the rating horizon.
Robust Profitability: B3 continues to report strong profitability
metrics that exceed regional peers. Although the results for the
first nine months of 2024 were impacted by lower trading
activities, non-trading products are increasing their share of
overall revenues. Simultaneously, B3's total expenses declined
year-on-year, primarily due to a significant decrease in
depreciation.
As of September 2024, B3 reported an EBITDA margin of 64.4%, up
from 63.9% at the end of 2023 and close to its four-year average of
67.1%. Fitch expects B3's profitability to remain strong, though
growth will continue to be linked to improvements in the local
capital markets, which could be affected by rising domestic
interest rates.
Leverage Remains Adequate: As of September 2024, B3 reported a debt
to adjusted EBITDA of 1.9x, lower than the 2.2x at YE 2023, which
is higher than regional peers but still commensurate with its
rating level. Fitch considers liabilities to be well managed, as of
the same date, only 11.9% of B3's total debt, matures in the next
12 months. Despite the growth and the recently announced issuance,
- pro-forma leverage would reach 2.2x, which is within Fitch´s
'bbb' leverage level threshold.
Stable Funding and Liquidity: In Fitch's view, B3 has a good
funding and liquidity profile, which demonstrates its good
liability management and also its diversification between local and
international markets. Fitch's core metric for this factor,
EBITDA/interest expenses, stood at 4.4x at September 2024, stable
compared with end-2023.
The company has a long-term funding profile, and Fitch considers
that B3 has strong access to local and foreign capital markets and
issuing new debts if necessary wouldn't be an issue. B3 maintains a
strong cash position, with own liquid assets around BRL11.1
billion, invested in government securities & funds. B3's liquidity
and credit facilities designed specifically for its CCPs, which are
unutilized so far, are indicative of a strong liquidity profile.
National Scale Ratings
B3's national scale ratings are relative to the entity's
creditworthiness compared to other issuers within Brazil's
jurisdiction. The assignment of the long-term National Ratings at
'AAA(bra)' reflects the company's superior credit profile relative
to other Brazilian entities.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
IDRs and Senior Debt
- B3's ratings could be downgraded in the event of negative rating
actions on the Brazilian sovereign rating and/or from a downgrade
of Fitch's assessment of the SROE factor score;
- The ratings could be negatively affected if counterparty risks at
B3's CCPs increase to a level beyond accompanying margin and
guaranty fund growth, such that it increases the risk of
compromising B3's liquidity/equity position or from prolonged and
repetitive system outages that result in reputational damage;
- Unfavorable decisions/expectations related to existing tax and
civil proceedings that weaken B3's financial profile could result
in a downgrade of one or more notches;
- A material and sustained deterioration in B3's financial
performance, significant reduction of profitability metrics, gross
leverage above 4x and/or interest expense coverage below 4x, could
also put downward pressure on ratings.
National Ratings and Debenture
- The national ratings of B3 may be affected by a change in Fitch's
perception of the company's creditworthiness with respect to other
Brazilian entities rated on the national scale.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
IDRs and Senior Debt
- B3's IDRs could be upgraded as a result of an upgrade of Brazil's
sovereign rating but otherwise have limited upside potential in the
near future, as they are already one notch above Brazil's sovereign
ratings.
National Ratings and Debenture
- The national scale ratings of B3 are at the highest level on the
national scale; therefore, they cannot be upgraded.
DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS
B3's senior unsecured debt is rated in line with its IDRs and
National Rating as the likelihood of default on these obligations
reflects the likelihood of default of the entity.
ADJUSTMENTS
The Standalone Credit Profile has been assigned below the implied
Standalone Credit Profile due to the following adjustment
reason(s): Sovereign Rating (negative).
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
----------- ------ -----
B3 S.A. Brasil,
Bolsa, Balcao LT IDR BB+ Affirmed BB+
ST IDR B Affirmed B
LC LT IDR BB+ Affirmed BB+
LC ST IDR B Affirmed B
Natl LT AAA(bra)Affirmed AAA(bra)
Natl ST F1+(bra)Affirmed F1+(bra)
senior unsecured LT BB+ Affirmed BB+
senior unsecured Natl LT AAA(bra)Affirmed AAA(bra)
BRAZIL: Lifts Key Interest Rate by 1%; Promises Two More Hikes
--------------------------------------------------------------
Bloomberg News reports that Brazil's central bank lifted its key
interest rate by one percentage point and surprised investors by
promising two more hikes of the same size, its strongest move yet
to recover investor confidence and tame inflation expectations that
have been propelled by public spending and a hot economy.
Board members boosted the Selic to 12.25% late on Wednesday, Dec.
11, as expected by 14 of 35 economists in a Bloomberg survey, with
all others expecting a smaller rise, relates Bloomberg News.
In an accompanying statement, they wrote that the outlook has been
marked by a further de-anchoring of inflation expectations and
stronger-than-expected activity, which together require even more
restrictive monetary policy, notes the report.
About Brazil
Brazil is the fifth largest country in the world and third largest
in the Americas. Luiz Inacio Lula da Silva won the 2022 Brazilian
general election. He was sworn in on January 1, 2023, as the 39th
president of Brazil, succeeding Jair Bolsonaro.
In October 2024, Moody's Ratings has upgraded the Government of
Brazil's long-term issuer and senior unsecured bond ratings to
Ba1 from Ba2, the senior unsecured shelf rating to (P)Ba1 from
(P)Ba2; and maintained the positive outlook.
S&P Global Ratings raised on Dec. 19, 2023, its long-term global
scale ratings on Brazil to 'BB' from 'BB-'. Fitch Ratings
affirmed on Dec. 15, 2023, Brazil's Long-Term Foreign-Currency
Issuer Default Rating (IDR) at 'BB' with a Stable Outlook.
DBRS' credit rating for Brazil was last reported at BB with
stable outlook at July 2023.
BRAZIL: Pernambuco to Get $32.8MM IDB Loan for Judiciary Services
-----------------------------------------------------------------
The Brazilian state of Pernambuco will receive a $32.8 million loan
from the Inter-American Development Bank (IDB) to digitally
transform its judiciary. The loan will support work to streamline
public services and save citizens time and money.
The project, which has been approved by the IDB Board of Executive
Directors, will benefit the approximately 2.6 million people served
by the Pernambuco state court system - including over 180,000 users
of the Electronic Judicial Records System - with faster, more
efficient, and lower-cost services. The project will also train
8,000 government employees and 500 judges on digital skills.
To achieve these objectives, the operation has two main components.
The first, which centers on digitally transforming services, will
finance improvements to how the Electronic Judicial Records System
is managed, as well as automation, innovation, digital inclusion
and digital services for preventing and addressing gender violence
against women and LGBTQ+ people. The second component, focused on
capacity building for the court system, involves deploying cloud
technology, cybersecurity protocols, compliance with the General
Data Protection Law, data governance, strategic management and
digital solutions for preventing harassment and discrimination.
By rolling out new technologies more quickly, the state can
significantly boost the efficiency and effectiveness of its
services to the population. This project is expected to save
society approximately $18.5 million by 2028 by reducing the length
of proceedings through digitalization. It is also expected to
increase the average number of cases adjudicated per judge per year
by 20% and increase the efficiency of the court system's budget by
12%.
This is the eighth operation approved by the IDB under the 2021
Conditional Credit Line for Investment Projects called Brasil Mais
Digital.
The loan for Pernambuco has an additional local contribution of
$8.2 million, a 24.5-year repayment term, a six-year grace period
and an interest rate based on the Secured Overnight Financing Rate
(SOFR).
About Brazil
Brazil is the fifth largest country in the world and third largest
in the Americas. Luiz Inacio Lula da Silva won the 2022 Brazilian
general election. He was sworn in on January 1, 2023, as the 39th
president of Brazil, succeeding Jair Bolsonaro.
In October 2024, Moody's Ratings has upgraded the Government of
Brazil's long-term issuer and senior unsecured bond ratings to
Ba1 from Ba2, the senior unsecured shelf rating to (P)Ba1 from
(P)Ba2; and maintained the positive outlook.
S&P Global Ratings raised on Dec. 19, 2023, its long-term global
scale ratings on Brazil to 'BB' from 'BB-'. Fitch Ratings
affirmed on Dec. 15, 2023, Brazil's Long-Term Foreign-Currency
Issuer Default Rating (IDR) at 'BB' with a Stable Outlook.
DBRS' credit rating for Brazil was last reported at BB with
stable outlook at July 2023.
UNIDAS LOCACOES: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has affirmed Unidas Locacoes e Servicos S.A. (Unidas)
Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs)
at 'BB-'. Fitch has also affirmed Unidas' Long-Term National Scale
Rating, together with its local senior unsecured issuances, at
'AA(bra)'. The Rating Outlook for the corporate ratings is Stable.
Unidas' IDRs reflect its moderate scale in the competitive car,
fleet and heavy machinery and equipment rental sector in Brazil.
The company benefits from high revenue predictability for some of
its businesses and should be able to continue delivering its growth
strategy with moderate leverage and robust operating margins. The
analysis also incorporates the positive tracking record of support
from its controlling shareholder.
Key Rating Drivers
Above Average Business Profile: Unidas' reasonable scale and
business profile allow above-average bargaining power with original
equipment manufacturers (OEM) and enable the company to capture
economies of scale. As of September 2024, Unidas total fleet was
around 116,000 vehicles, 58,000 in rent-a-car (RaC) and 46,000 in
fleet rental. Fitch projects that the compound annual grow rate for
total fleet and net rental revenue will be around 3% and 7%,
respectively, during the 2024-2027 period. For 2024, Fitch
forecasts net rental revenue at BRL3.8 billion and a total fleet of
116,000 vehicles at YE, reaching BRL4.1 billion and 117,000 in
2025.
Solid Operating Margins: Rental EBITDA should grow gradually based
on organic growth and adequate margins. Rating scenario considers
that balanced demand and supply dynamics, increasing rental rates
and marginally improving used car sales market should enable a
gradual return on invested capital (ROIC) spread recovery, closer
to historic levels in late 2025. The maintenance of higher interest
rates for a longer period may postpone spread normalization and is
the main threat the industry faces. Fitch forecasts rental EBITDA
of BRL2.2 billion (59% rental margin) in 2024 and BRL2.5 billion
(61% rental margin) in 2025.
Business Predictability: Unidas' strong and reasonably predictable
operating cash generation, based on long-term contracts for fleet
rental of light vehicles and heavy machinery and equipment, is
positive for the ratings. The diversification among these segments
and the RaC is important to the company's credit profile. Fitch
expects Unidas to rightly price the sale of its light vehicles at
the end of the contracts, as this is crucial for this rental
companies.
Pressured FCF: The rating scenario considers that cash flow from
operations (CFFO) should gradually increase along with the rental
EBITDA, being BRL820 million in 2024 and BRL945 million in 2025.
Nevertheless, FCF should remain negative on the range of BRL4.0
billion-4.5 billion due to average annual total capex of BRL5.4
billion from 2024 to 2027, partially funded by the sale of used
vehicles of BRL3.2 billion, on average, in the same period.
Moderate Leverage: Balanced demand and supply dynamics, resulting
in adequate rental rates and a return on invested capital spread in
line with historic industry levels, should enable the company to
conciliate its mild growth and fleet renew with a moderate
financial leverage. Fleet growth should be primarily debt funded in
the rating scenario. Consolidated net leverage (IFRS-16 adjusted),
measured by net debt/rental EBITDA, should average 4.0x on the
rating horizon, comparing with an average of 4.9x from 2020 to
2023. In the last twelve months ended on September 2024, total
debt/rental EBITDA and net bet/rental EBITDA were 5.8x and 4.2x,
respectively.
Capital Intensive Industry: The capital-intensive nature of the
rental industry, which demands sizable and regular investments to
grow and renew the fleet, pressures the financial profile of the
companies in the sector during strong expansion periods. Therefore,
lower funding costs and strong access to credit markets are key
competitive advantages. On the other hand, the business model
allows the companies to postpone fleet renewal and adjust its size,
if needed.
Derivation Summary
Compared to Simpar S.A. (Simpar; Local Currency and Foreign
Currency IDRs BB/long-term National Scale Rating
AA+(bra)/Negative), Unidas has a smaller scale, less diversified
service portfolio, and an overall weaker business profile. Unidas
has higher profitability (operating margins) and lower leverage,
with both companies having strong liquidity position.
Compared to Unidas, Localiza Rent a Car S.A. (Localiza; Local
Currency and Foreign Currency IDRs BB+/ Long-term National Scale
Rating AAA(bra)/Stable) has significant greater scale, stronger
negotiating power with suppliers, and an overall more robust
business profile. Localiza also has a stronger financial profile,
based on lower leverage, lower cost of capital and more proved
access to credit markets.
Key Assumptions
Average annual capex of BRL5.4 billion in the 2024-2027 period;
Total Fleet of 116,000 vehicles at YE 2024, and 117,000 vehicles at
YE 2025;
Fleet rental rates higher, on average, 4.5% in the 2024-2027
period;
RaC rental rates higher, on average, 5% in the 2024-2027 period;
Dividends payout around 25% throughout the rating horizon.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Net debt/rental EBITDA consistently above 5.0x;
- Deterioration of the company's business position;
- Declining EBITDA and profitability levels;
- Worsening liquidity profile;
- A perception of lower financial flexibility.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Improved scale and business position;
- Net debt/rental EBITDA consistently below 4.0x.
Liquidity and Debt Structure
Unidas' adequate liquidity position and proven access to local
funding are key credit considerations, with cash covering its
short-term debt by an average over 3.0x during the last three
years. The group's expected negative FCF, a result of organic
growth and fleet renew, should be financed by a combination of
cash, sale of used assets and additional debt in the rating
scenario.
As of September 2024, Unidas had BRL3 billion of cash and
equivalents and BRL11 billion of total debt, with BRL1.7 billion
due in the short term, an additional BRL103 million in the 4th
quarter of 2025, BRL1.7 billion in 2026 and BRL2.8 billion in 2027.
The group's consolidated debt is mainly comprised of local capital
market debt (66%) and bank loans (33%). Unidas' financial
flexibility is also supported by the group's ability to postpone
growth capex to adjust to the economic cycle and the groups
considerable number of unencumbered assets, with the market value
of the fleet over net debt at around 1.5x.
Issuer Profile
Unidas is one of the largest RaC, fleet rental and heavy equipment
and machinery rental company in Brazil, also operating in the sale
of used vehicles and equipment. Unidas has CEDAR Fundo de
Investimento em Participações as its controlling shareholder.
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 Prior
----------- ------ -----
Unidas Locacoes E
Servicos S/A LT IDR BB- Affirmed BB-
LC LT IDR BB- Affirmed BB-
Natl LT AA(bra)Affirmed AA(bra)
senior unsecured Natl LT AA(bra)Affirmed AA(bra)
===========================
C A Y M A N I S L A N D S
===========================
AIRNET TECH: Regains Compliance With Nasdaq MVPHS Requirement
-------------------------------------------------------------
AirNet Technology Inc., formerly known as AirMedia Group Inc.
received a written notice from the Listing Qualifications Staff of
Nasdaq, notifying the Company that it has regained compliance with
the minimum market value of publicly held shares requirement under
Nasdaq Listing Rule 5550(a)(5).
The Company was previously notified by the Staff on September 18,
2024 that it was not in compliance with the MVPHS requirement due
to its failure to maintain a minimum MVPHS of US$1.0 million for a
period of 30 consecutive business days. Since then, the Staff has
determined that the Company's MVPHS had been US$1.0 million or
greater from October 28 through November 11, 2024. Therefore, the
Staff determined that the requirement was met on November 12,
2024.
About AirNet Technology
AirNet Technology Inc. was incorporated in the Cayman Islands on
April 12, 2007. AirNet, its subsidiaries, through its variable
interest entities and the VIEs' subsidiaries, operate its
out-of-home advertising network, primarily air travel advertising
network, in the People's Republic of China. The Company also
conducts cryptocurrencies mining business operations by its Hong
Kong subsidiary, Blockchain Dynamics Limited.
As of December 31, 2023, the Company had $115.1 million in total
assets, $101.8 million in total liabilities, and $13.4 million in
total equity.
Singapore-based Audit Alliance LLP, the Company's auditor since
2021, issued a "going concern" qualification in its report dated
April 26, 2024, citing that the Company has a history of operating
losses and negative operating cash flows and has negative working
capital of approximately $56 million as of December 31, 2023. These
conditions indicate that a material uncertainty exists that raise
substantial doubt on the Company's ability to continue as a going
concern, the auditor said.
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J A M A I C A
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JAMAICA: BOJ Auctions $50 Billion Certificate of Deposit
--------------------------------------------------------
RJR News reports that the Bank of Jamaica auctioned another fixed
rate 6.75% per annum certificate of deposit for $50 billion.
The move comes as the BOJ attempts to reduce the level of liquidity
or money in the system and contain inflation, according to RJR
News.
Some $47.5 billion of this amount will be allocated on a
competitive bidding basis, while $2.5 billion will be allocated on
a non-competitive basis, the report notes.
The central bank says all private sector bids must be submitted on
a competitive basis, the report relays.
The settlement date is December 13 and the maturity or payment will
be January 10 as the tenure of the instrument is 28 days, the
report notes.
The interest on the certificate of deposit is taxable and the
minimum bid amount is $100,000, the report ads.
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 U E R T O R I C O
=====================
BED BATH & BEYOND: Settles 401(k) Plan Fee Dispute
--------------------------------------------------
Kellie Mejdrich of Law360 reports that Bed Bath & Beyond has
reached a settlement in a lawsuit filed by employees accusing the
company of mismanaging its 401(k) plan, according to a joint
filing submitted Monday, December 9, 2024, in a New Jersey
federal court.
About Bed Bath & Beyond
Bed Bath & Beyond Inc., together with its subsidiaries, is an
omnichannel retailer selling a wide assortment of merchandise in
the Home, Baby, Beauty & Wellness markets and operates under the
names Bed Bath & Beyond, buybuy BABY, and Harmon, Harmon Face
Values. The Company also operates Decorist, an online interior
design platform that provides personalized home design services.
At its peak, Bed Bath & Beyond operated the largest home furnishing
retailer in the United States with over 970 stores across all 50
states, consistently at the forefront of major home and bath
trends. Operating stores spanning the United States, Canada,
Mexico, and Puerto Rico, Bed Bath & Beyond offers everything from
bed linens to cookware to electric appliances, home organization,
baby care, and more.
Bed Bath & Beyond closed over 430 locations across the United
States and Canada before filing Chapter 11 cases, implementing
full-scale wind-downs of their Canadian business and the Harmon
branded stores.
Left with 360 Bed Bath & Beyond, and 120 buybuy BABY stores, Bed
Bath & Beyond Inc. and 73 affiliated debtors on April 23, 2023,
each filed a voluntary petition for relief under Chapter 11 of the
United States Bankruptcy Code to pursue a wind-down of operations.
The cases are pending before the Honorable Vincent F. Papalia and
requested joint administration of the cases under Bankr. D.N.J.
Lead Case No. 23-13359.
Kirkland & Ellis LLP and Cole Schotz P.C. are serving as legal
counsel, Lazard Frares & Co. LLC is serving as investment banker,
and AlixPartners LLP is serving as financial advisor. Bed Bath &
Beyond Inc. has retained Hilco Merchant Resources LLC to assist
with inventory sales. Kroll LLC is the claims agent.
PUERTO RICO: Judge Urges Swift Resolution of PREPA Debt Deal
------------------------------------------------------------
Bloomberg News reports that the judge handling Puerto Rico Electric
Power Authority bankruptcy has urged the parties to work toward an
agreement to address nearly $9 billion in debt.
During a hearing on December 11, 2024, U.S. District Court Judge
Laura Taylor Swain responded to a mediation team report, which
cautioned that resolving the bankruptcy could take years due to
major disagreements among the stakeholders. Judge Swain directed
the parties to continue negotiations, according to report.
The utility is focused on minimizing its debt, while investors are
pushing for the highest possible recovery, Bloomberg Law relates.
About Puerto Rico
Puerto Rico is a self-governing commonwealth in association with
the United States. The chief of state is the President of the
United States of America. The head of government is an elected
Governor. There are two legislative chambers: the House of
Representatives, 51 seats, and the Senate, 27 seats.
In 2016, the U.S. Congress passed PROMESA, which, among other
things, created the Financial Oversight and Management Board and
imposed an automatic stay on creditor lawsuits against the
government, which expired May 1, 2017.
The members of the oversight board are: (i) Andrew G. Biggs, (ii)
Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J.
Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii)
David A. Skeel Jr.
On May 3, 2017, the Commonwealth of Puerto Rico filed a petition
for relief under Title III of the Puerto Rico Oversight,
Management, and Economic Stability Act ("PROMESA"). The case is
pending in the United States District Court for the District of
Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico's
PROMESA petition is available at
http://bankrupt.com/misc/17-01578-00001.pdf
On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation
(COFINA) commenced a case under Title III of PROMESA (D.P.R. Case
No. 17-01599). Joint administration has been sought for the Title
III cases.
On May 21, 2017, two more agencies -- Employees Retirement System
of the Government of the Commonwealth of Puerto Rico and Puerto
Rico Highways and Transportation Authority (Case Nos. 17-01685 and
17-01686) -- commenced Title III cases.
U.S. Chief Justice John Roberts named U.S. District Judge Laura
Taylor Swain to preside over the Title III cases.
The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets as municipal investment
banker, and Ernst & Young, as financial advisor.
Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq.,
at O'Neill & Borges LLC are onboard as attorneys.
Prime Clerk LLC is the claims and noticing agent. Prime Clerk
maintains the case Website https://cases.primeclerk.com/puertorico
Jones Day is serving as counsel to certain ERS bondholders.
Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General
Obligation Bondholders.
*********
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