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       T R O U B L E D   C O M P A N Y   R E P O R T E R

                 L A T I N   A M E R I C A

          Wednesday, December 25, 2024, Vol. 25, No. 258

                           Headlines



A R G E N T I N A

ARGENTINA: In Talks with IMF on Loan to Succeed US$44-billion Deal
ARGENTINA: Working With Banks to Expand Dollar Lending
COMPANIA LATINOAMERICA: Creditors Agree to Debt Rework


B R A Z I L

AZUL SA: Proposed Exchange Offer No Impact on Moody's 'Caa2' CFR
BRAZIL: Central Bank Autonomy Pledge Drives Interest Rate Decline


E C U A D O R

ECUADOR: Completes $1.5 Billion Debt Swap for Amazon Conservation


P E R U

CAMPOSOL SA: Moody's Affirms 'B3' CFR & Alters Outlook to Positive

                           - - - - -


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A R G E N T I N A
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ARGENTINA: In Talks with IMF on Loan to Succeed US$44-billion Deal
------------------------------------------------------------------
Jorgelina do Rosario & Patrick Gillespie at Bloomberg News report
that Chief IMF Spokeswoman Julie Kozack confirmed that President
Javier Milei's government is working toward a new programme instead
of finishing the final reviews of the deal the libertarian
inherited from his predecessor.

"The authorities have formally expressed interest in moving to a
new programme and negotiations are now underway," Kozack said at a
press conference in Washington, according to Bloomberg News.

Talks between Argentina and the IMF gained momentum after a team of
officials from Economy Minister Luis Caputo's office and the
Central Bank travelled to Washington earlier this month to meet
with the Fund's representatives, Bloomberg News relates.  

A central question in negotiations on Argentina's next IMF program
is whether the lender will provide Milei with additional financing
beyond rolling over the US$44-billion burden -- and how much,
relays Bloomberg News.  The libertarian president floated US$15
billion earlier this year but hasn't referenced the figure
recently. Caputo said that he anticipates fresh funds to be part of
the program, Bloomberg News discloses.

When agreed, this would mark the country's 23rd program with the
organization since 1958 and its third since just 2018, notes the
report.  The IMF has a poor track record in Argentina after several
agreements over the decades failed to turn around the economy as
one government after another often flouted program targets while
spending the global lender's money, Bloomberg News notes.

Milei and Caputo, his top negotiator, have a mixed relationship
with the IMF, Bloomberg News says.  The President lambasted one of
the Fund's top officials earlier this year, Rodrigo Valdes, who
ultimately chose to step away from negotiations, recalls Bloomberg
News.  During the first deal in 2018, Caputo disagreed with IMF
officials over currency policy and resigned after a short tenure as
Central Bank chief following a stretch as Argentina's finance
minister at the time, recounts the report.

IMF leadership, meanwhile, has lauded Milei and Caputo this year
for cutting spending, cooling inflation and collapsing a gap
between the country's many exchange rates, Bloomberg News relays.
Milei's government has largely met the key targets in its current
programme after the previous administration missed several,
Bloomberg News adds.

                          About Argentina

Argentina is a country located mostly in the southern half of
South
America. Its capital is Buenos Aires. Javier Milei is the current
president of Argentina after winning the November 19, 2023 general
election. He succeeded Alberto Angel Fernandez in the position.

Argentina has the third largest economy in Latin America.  The
country's economy is an upper middle-income economy for fiscal
year
2019, according to the World Bank. Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.

In March 2022, the International Monetary Fund (IMF) approved a
new
30-month arrangement under an Extended Fund Facility for Argentina
in the amount of SDR 31.914 billion (equivalent to US$44 billion,
or 1000 percent of quota).  The IMF Executive Board's decision
allowed the 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. upgraded Argentina's Long-Term Foreign and Local
Currency
Issuer Ratings to B (low) from CCC on November 25, 2024. The
trend on all ratings is Stable.

ARGENTINA: Working With Banks to Expand Dollar Lending
------------------------------------------------------
Ignacio Olivera Doll at Bloomberg News reports that Argentina's
government is pushing banks to expand dollar lending to more
sectors, Economy Minister Luis Caputo told a closed-door event at
the Buenos Aires Stock Exchange.

Caputo wants loans to companies and mortgages to be offered in US
currency, he said alongside Central Bank official Federico Furiase,
according to two people with direct knowledge who asked not to be
named in discussing private remarks, reports Bloomberg News.

The initiative aims to capitalise on the surge of dollar inflows
stemming from the government's recent tax amnesty program,
Bloomberg News relays.  

Over the past five months, Argentines deposited more than US$20
billion in local banks, Bloomberg News relates.  Current
regulations only allow dollars to be lent to companies earning
revenue in foreign currency, Bloomberg News says.

Caputo assured attendees of the stock-exchange event that dollars
would be plentiful in Argentina as the energy and mining sectors
take off under President Javier Milei's free-market reforms, the
sources said, Bloomberg News discloses.

Milei, who campaigned on dollarising the economy but has taken a
largely hands-off approach to doing so since taking office,
signaled usage of the US currency would increase, including in
everyday transactions, Bloomberg News relays.

"From now on, every Argentine will be able to buy, sell and get
paid in dollars, or in the currency he or she prefers, except for
the payment of taxes," the report quoted the president as saying on
December 10 in a televised address.

The libertarian, who also promised to close Argentina's central
bank, has essentially left it to Argentines to dollarise for him.
The strategy, dubbed endogenous dollarization, hinges on
restricting the supply of pesos so that Argentines must use their
dollar reserves to pay for everyday expenses, Bloomberg News says.

Caputo also flagged ongoing discussions with the real estate
industry to establish dollar-denominated mortgage programmes used
in his remarks, according to the people, Bloomberg News relays.
Furiase said the government's goal is to support the growing use of
the dollar while maintaining stability in the financial system, the
sources added.

The minister had previously said the government is focused on
remonetizing the economy, both in pesos and dollars, notes
Bloomberg News.  "We want people to use their dollars because that
reactivates the economy, generates more income and allows us to
lower taxes," Caputo said in September.

                          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. upgraded Argentina's Long-Term Foreign and Local
Currency
Issuer Ratings to B (low) from CCC on November 25, 2024. The
trend on all ratings is Stable.

COMPANIA LATINOAMERICA: Creditors Agree to Debt Rework
------------------------------------------------------
Kevin Simauchi at Bloomberg News reports that Cia Latinoamericana
de Infraestructura y Servicios Corp, the holding company behind
Buenos Aires' metro operators, won extensive support from
international bondholders to restructure its debt.

Investors holding 94 percent of the company's US$358 million of
bonds accepted an offer to swap their securities for new notes, the
company said in a statement, according to Bloomberg News.

The restructuring plan includes an extension on debt maturities and
a 25-percent haircut on its dollar-denominated notes due in 2027,
Bloomberg News notes.  The new debt would mature in 2031 and 2034,
according to a previously published consent solicitation, Bloomberg
News relays.  Bloomberg reported earlier that the company had
secured enough support for the measure, citing people familiar with
the matter.

The bonds due in 2027 last changed hands at 41.5 cents on the
dollar, according to Trace data, Bloomberg News discloses.

Securing debt holders' backing puts the firm, known as Clisa, on
track to ease its balance sheet woes and positions it to exit
default, Bloomberg News relays.  It also brings to a close a
process that began after the public works giant missed an interest
payment in August, following a 30-day grace period, Bloomberg News
says.

The deal required approval from holders of at least three-fourths
of the outstanding debt, adds Bloomberg News.

As reported in the Troubled Company Reporter-Latin America on Sept.
2, 2024,  Fitch Ratings has downgraded Compania Latinoamericana de
Infraestructura y Servicios' (CLISA) Long-Term Local Currency and
Foreign Currency Issuer Default Ratings (IDRs) to 'RD' from 'C'.
Fitch has also affirmed CLISA's senior secured bond maturing July
2027 at 'C'/'RR4'.




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B R A Z I L
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AZUL SA: Proposed Exchange Offer No Impact on Moody's 'Caa2' CFR
----------------------------------------------------------------
Moody's Ratings comments that Azul S.A. (Azul)'s Caa2 corporate
family rating, the Caa1 rating of the backed senior secured first
lien debt and Caa2 rating of the backed senior secured debts of
Azul Secured Finance LLP (Delaware), and the Caa3 backed senior
unsecured debt ratings of Azul Investments LLP and negative outlook
remain unchanged following the company's announcement of an
exchange offer for its 2028, 2029 and 2030 notes.

On December 18, Azul announced an exchange offer and a consent
solicitation as part of its debt restructuring. The deal consists
of an exchange offer for its $807 million (around BRL5 billion)
notes due 2029 and 2030 in which the noteholders will immediately
convert 10% of the notes' principal amount into equity and 52.5%
into a new convertible instrument that will bear a 10% interest
rate (4% cash payment and 6% PIK). Upon the receipt of an
additional $100 million in new money through the issuance of a new
superpriority note, Azul will be able to convert an additional 25%
of the notes' principal into equity, and upon a future capital
increase, Azul will be able to convert the remaining 12.5% into
equity. The equity conversion will be priced based on the shares'
trading prices plus a discount. Azul also announced an exchange
offer for its around $1 billion notes due 2028, in which
noteholders will exchange the notes for new notes mirroring the
existing ones; bondholders will have to consent to the assignment
of Azul's cargo business as collateral, the pledge of the
collateral of the 2028 notes to the new superpriority notes and
subordination of the instrument to second-lien vis-à-vis the new
superpriority notes, which will be first lien. The offer also
eliminates substantially all of the restrictive covenants, events
of default and related provisions in a customary exit consent
solicitation and releases the collateral securing the existing
notes, meaning that the remaining outstanding notes after the
exchange will be unsecured. Moody's view the deals as a distressed
exchange given the conversion of debt into equity and that the
exchange offer avoids a potential default in light of Azul's weak
liquidity and untenable capital structure.

The transaction is part of a broader debt restructure that will
improve Azul's capital structure and liquidity. In addition to the
exchange offer, Azul announced agreements with an ad-hoc group of
creditors to provide up to $500 million through the issuance of
superpriority notes, including $150 million already provided on
October 2024, an additional $250 million expected in January 2025,
and the release of a further $100 million upon meeting specific
conditions, including cost savings of at least $75 million per year
in 2025, 2026 and 2027. The exchange offers are a precedent
condition to the issuance of the superpriority notes. Azul expects
to conclude the exchange offers and to issue the superpriority
notes in mid-January 2025.

Earlier on October 2024, Azul announced that it had reached
commercial agreements with lessors and OEMs. Under these
agreements, lessors and OEMs agreed to eliminate their pro-rata
share of the current balance of the equity issuance obligations
totaling BRL3.1 billion ($550 million) and, in exchange, to receive
up to 100 million new preferred shares of Azul in a one-time
issuance. The agreement is subject to the completion of the
issuance of the superpriority notes.

The exchange offer and other transactions will help alleviate
Azul's cash needs in the medium term, and will lead to a reduction
in total debt through the potential equitization of up to $807
million of existing debt, leading to an additional reduction of
almost $100 million in interest payments per year. Azul's total
debt could decline by up to $900 million upon the conclusion of the
transactions and depending on the treatment of the new convertible
instrument. The company's cash position will increase by $400
million with the new superpriority notes, potentially increasing by
up to $500 million (with additional $100 million superpriority
notes) if the company is able to save at least $75 million in cash
flows per year.

Even so, liquidity risks remains high and its balance sheet highly
leveraged. Azul generated BRL3.2 billion in EBIT in the twelve
months that ended in September 2024, but high working capital needs
and debt burden led to a cumulative cash burn of BRL260 million in
the same period. Azul's cash position declined to BRL1.1 billion at
the end of September 2024 from BRL1.9 billion at the end of 2023,
and the company will still have around BRL4.5 billion in financial
and lease obligations coming due until the end of 2025 pro forma to
the conclusion of the transactions. Its cash position could
increase to up to BRL4 billion with the debt restructure and new
money, but its total leverage would still be at around 4x or higher
assuming a recurring EBITDA of about BRL6 billion, and the company
will still face operational headwind related to the depreciation of
the local currency.

The negative outlook reflects Azul's tight liquidity profile and
the company's reliance on additional renegotiations with lessors or
additional refinancing initiatives that could be considered
distressed exchanges to remain solvent.

Moody's could downgrade Azul's ratings if liquidity concerns
increase, or the company is unable to strengthen its credit metrics
further increasing the risk of default on its financial
obligations.

Moody's could upgrade Azul's ratings if risks and uncertainties
reduce significantly, and passenger demand exceeds pre-pandemic
levels on a sustained basis. An upgrade would also require Azul to
continue to improve its capital structure; maintain adequate
liquidity, with cash consistently above 15% of revenue; and improve
key metrics, with debt/EBITDA below 6x and (funds from operations +
interest)/interest above 3x on a sustained basis.

Azul S.A. is a Brazilian airline founded in 2008. The company is
the largest airline in Brazil by number of cities covered and
departures, serving more than 160 destinations with an operating
fleet of 182 aircraft and operating more than 900 flights daily.
The company also flies its aircraft to select International
destinations, including Fort Lauderdale, Orlando, Paris, Punta del
Este, Montevideo, Lisbon and Curaçao.

BRAZIL: Central Bank Autonomy Pledge Drives Interest Rate Decline
-----------------------------------------------------------------
Rio Times Online reports that Brazilian financial markets took an
unexpected turn.  Interest rates, which had been climbing steadily,
suddenly dropped, according to Rio Times Online.  The catalyst? A
few well-chosen words from President Luiz Inacio Lula da Silva.

The day began with volatility. Investors, wary of fiscal risks,
pushed interest rates up by 30 basis points, the report notes.
However, the tide turned when Lula released a video statement, the
report relays.  He promised vigilance on fiscal measures and
emphasized the autonomy of the future Central Bank president,
Gabriel Galipolo, the report discloses.

These assurances resonated with the market.  By day's end, interest
rates had fallen across the board, the report says.  The January
2026 Interbank Deposit rate dropped from 15.07% to 14.945%.
Longer-term rates saw even steeper declines, the report relays.

Despite this daily dip, weekly rates still showed a slight
increase, the report says.  This reflects the ongoing tug-of-war
between fiscal concerns and economic growth aspirations, the report
notes.  Santander, a major bank, even raised its forecast for the
Selic rate to 15.5% by next year.

The market's swift reaction underscores the power of political
communication in shaping economic expectations, Rio Times relays.
It also highlights the delicate balance policymakers must strike
between fiscal responsibility and growth stimulation, the report
discloses.

For investors and citizens alike, this event serves as a reminder,
the report says. In Brazil's complex economic landscape, a single
statement can trigger significant market movements, the report
relays.  Understanding these dynamics is crucial for anyone
navigating the country's financial waters, adds 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.



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E C U A D O R
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ECUADOR: Completes $1.5 Billion Debt Swap for Amazon Conservation
-----------------------------------------------------------------
Reuters reports that Ecuador has completed its second
debt-for-nature swap, this time unlocking $460 million to protect
and manage the forests and wetlands of its Amazon rainforest, NGO
The Nature Conservancy said.

By buying-back over $1.5 billion of its discounted existing bonds
with cheaper new money, Ecuador will realise almost half a billion
dollars of savings over a 17-year period to invest in conserving
the terrestrial and freshwater ecosystems of the Amazon, according
to the report.

According to Reuters, debt-for-nature swaps aim to create a stable
and long-term funding stream for conservation projects by freeing
up money governments would otherwise have spent on debt servicing
and repayment costs over the life of their outstanding debt.

This deal is expected to generate $23.5 million per year over 17
years with $19 million annually going directly to the Amazon
Biocorridor Program and $4.5 million invested via an endowment fund
to generate returns, the report relates. It is also reducing
Ecuador's debt stock by $527 million, freeing up $800 million in
net fiscal savings for the country by 2035, based on changes to
Ecuador's repayment costs and profile, and the repurchase of the
debt, TNC said, Reuters notes.

As reported in the Troubled Company Reporter-Latin America on Aug.
20, 2024, Fitch Ratings has affirmed Ecuador's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'CCC+'. Fitch
typically does not assign Outlooks to sovereigns with a rating of
'CCC+' or below.



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P E R U
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CAMPOSOL SA: Moody's Affirms 'B3' CFR & Alters Outlook to Positive
------------------------------------------------------------------
Moody's Ratings has affirmed Camposol S.A. 's ("Camposol") B3
Corporate Family Rating and the B3 on its 6% $350 million Backed
Senior Unsecured Notes due 2027 and guaranteed by Camposol's parent
company, CSOL Holding Ltd. The outlook was changed to positive from
stable.

The ratings action reflects Camposol's improved liquidity position
driven by an increased availability under its committed facilities
to $85 million from previous $40 million. The committed liquidity,
together with around $20 million in cash, will be enough to cover
the company's short term debt by year-end 2024, which Moody's
estimate at around $100 million. The rating action also
incorporates the company's adequate credit metrics, with adjusted
leverage and interest coverage (EBITA/interest expense) of 3.75x
and 3.46x for the last twelve months ended September 2024 from
10.9x and 0.2x, respectively, in December 2022.

The positive outlook of Camposol's ratings reflects its improved
liquidity profile, based on the company's increased committed
facilities that materially reduces refinancing risks, and Moody's
expectation that the company will continue managing its liquidity
to cover working capital swings through the cycle. The positive
outlook also incorporates Moody's view that Camposol's credit
metrics will remain solid for the rating category.

RATINGS RATIONALE

As of September 2024, the company's liquidity sources, cash and
committed facilities, amount $110 million, which cover 60% of the
debt maturing through December 2025. Moody's expect Camposol to
generate close $100 million in CFO (funds from operations plus
changes in working capital) during the 4Q 2024, which will be
enough to reduce short term debt to around $100 million by year
end. Given the cyclical nature of Camposol's operations, Moody's
expect short term debt to be in the $100-$150 million range, with a
cash coverage (including committed facilities) between 75%-100%.

Moody's expect the company to continue renewing its advised credit
lines, which as of December 2024 amount $381 million with local and
international banks. Moody's also expect Camposol to generate
positive free cash flow (FCF) based on $40 million of annual capex
and limited dividend payments.

During 2024, Moody's adjusted EBITDA generation also improved to
$152 million for the last twelve months ended September 2024, that
is 30.3% margin, up from $56 million in 2022, 12% margin. These
improvements are based on cost control efforts, improved market
conditions, better term and conditions with large retailers and
unproductive plantations that started to generate cash in 2024.
Moody's expect EBITDA margin to remain in the mid-twenties as
percentage of revenues leading to a leverage below 4x through the
cycle.

The B3 ratings reflect the commoditized and seasonal nature of the
company's highest-selling fruits, which could pressure working
capital from time to time. The ratings also reflect Camposol's
modest segment and geographic diversification, with most of its
cash flows generated from blueberries and productive assets
concentrated in Peru; its relatively small size compared with that
of its industry peers; historical tolerance to refinancing risk and
high leverage; and its exposure to weather events. The B3 ratings
also consider the company's adequate credit metrics, its position
as a vertically integrated producer of fresh and frozen fruits, its
portfolio of fruits with increasing demand and the expertise of its
senior management.

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

Camposol's ratings could be upgraded if the company improves its
liquidity profile by securing additional liquidity sources that
covers the company's working capital needs through the cycle. The
ratings could also be upgraded if the company maintains adj.
debt/EBITDA below 4.5x and EBITA/interest expense above 1.5x.
Longer term, positive pressure could arise should the company
increases its size, segment and geographic diversification.

Negative pressure could occur, should Camposol's liquidity worsens,
due to negative FCF or if the company is unable to rollover its
short term debt. Negative pressure could also arise if Camposol's
adj. debt/EBITDA increases above 5x without clear prospects of
improvement or EBITA/interest expense declines towards 1.0x.

The principal methodology used in these ratings was Protein and
Agriculture published in August 2024.

Based in Lima, Peru, Camposol S.A. (Camposol) is the main operating
subsidiary of CSOL Holding Ltd. and a vertically integrated
producer of branded fresh fruit. Camposol's main products are
avocados and blueberries, which are sold to the largest retailers
and wholesalers in the world. Camposol reported revenue of $502
million for the last twelve months ended September 2024.


                           *********


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.

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