/raid1/www/Hosts/bankrupt/TCRLA_Public/250204.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
Tuesday, February 4, 2025, Vol. 26, No. 25
Headlines
A R G E N T I N A
ARGENTINA: Bank Cuts Key Rate to 29% as Peso Depreciation Slows
ARGENTINA: Energy Export Surge Quells Fears on Currency Management
B A R B A D O S
BARBADOS: IDB OKs US$100MM Project to Strengthen Policies System
B O L I V I A
BOLIVIA: Fitch Lowers LongTerm Foreign-Currency IDR to 'CCC-'
B R A Z I L
ANDRADE GUTIERREZ: Fitch Affirms & Then Withdraws 'C' LongTerm IDRs
C O L O M B I A
FIDEICOMISO PA COSTERA: Fitch Affirms BB+ Rating on USD150MM Bonds
J A M A I C A
JAMAICA: BOJ Floating Treasury Bills to Raise $2.1 Billion
P A N A M A
TODOPLAY LLC: S&P Assigns Prelim. 'B+' LongTerm ICR, Outlook Stable
T R I N I D A D A N D T O B A G O
CARIBBEAN AIRLINES: Defends Safety Standards Against Claims
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A R G E N T I N A
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ARGENTINA: Bank Cuts Key Rate to 29% as Peso Depreciation Slows
---------------------------------------------------------------
Buenos Aires Times reports that Argentina's Central Bank cut its
benchmark interest rate by 300 basis points to 29 percent as
inflation continues to slow in South America's second-biggest
economy.
The bank's board said the cut was due to reduced inflation
expectations and that the new rate takes effect, according to an
emailed statement, according to Buenos Aires Times.
The rate cut comes as the government is set to slow down the
currency's official monthly depreciation rate to one percent from
two percent on February 1, the report relays. The controversial
policy change to what's known locally as the crawling peg, which
some say is contributing to an overvalued peso, seeks to further
cool inflation, the report discloses.
"This is a sign that the central bank is betting on a continued
inflation decline," said Leonardo Anzalone, economist and director
of Buenos Aires-based CEPEC, but added it's not without risk, the
report relays. "If inflation doesn't slow down at the expected
rate, it could put pressure on the dollar and therefore increase
expectations of a devaluation," the report notes.
Lowering borrowing costs means the government can continue to have
a benchmark rate that is roughly in line with inflation while
continuing to shave off its liabilities, the tactic it has employed
throughout the past year, the report discloses. The rate also
serves as the benchmark rate for Treasury instruments, the report
says.
It's the Central Bank's ninth rate cut since President Javier Milei
took office in December 2023, when borrowing costs were 133
percent, the report relays. Lowering interest rates has become one
of the most unorthodox parts of Milei's strategy to slow inflation,
the report notes. When he first began slashing, Argentina's
interest rate ran nearly 13 percentage points behind inflation,
which over time gave way to a more neutral real rate, according to
a recent Central Bank report, the report relays.
Investors expected the monetary authority to cut rates during its
weekly directors meeting January 16, just after the Central Bank
touted its decision to lower the official currency's monthly
depreciation rate, the report relays. Instead, it held steady, the
report discloses. The announced change in the peso's slide came
just after the statistics agency showed a cooler annual inflation
print of 118 percent, the report says. The last rate cut took
place December 5, the report notes.
Argentina still maintains a litany of capital and currency
controls, making it possible to continue cutting rates while
carefully managing the peso's slide, the report relays. Milei has
promised to lift controls this year, which may force it to provide
more attractive rates to stave off a possible currency run, the
report notes. The International Monetary Fund, with which
Argentina is negotiating a new loan programme, has long been a
proponent of interest rates well above inflation, the report 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 Jan. 8, 2025, Moody's Ratings raised Argentina's local currency
ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1
from Caa3. Moody's said the decision to raise the local and
foreign currency ceilings reflects the increased predictability and
the greater consistency in economic policy that has led to a rapid
reduction in monetary and fiscal imbalances that were stoking very
high inflation.
On Nov. 15, 2024, Fitch Ratings 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.
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: Energy Export Surge Quells Fears on Currency Management
------------------------------------------------------------------
Kevin Simauchi & Maria Elena Vizcaino at Bloomberg News reports
that Argentina's booming energy sector is easing concerns that a
strong peso will dent efforts to bolster foreign exchange reserves
ahead of looming debt payments.
Rising oil and gas production on the back of more drilling in the
country's Vaca Muerta shale fields is providing the central bank
with a reliable source of dollar inflows, independent of the peso's
appreciation in recent months, BlackRock Inc.'s Pablo Goldberg and
Barings LLC's Ricardo Adrogue said in separate interviews,
according to Bloomberg News.
Taking the strong outlook for energy exports into account,
Argentina's "managed FX program shouldn't be much of a concern,"
said Adrogue, who heads Barings' global sovereign debt and
currencies team, Bloomberg News notes.
Investors are keen to see how President Javier Milei advances his
FX policy as it may hinder efforts to grow holdings at the central
bank, Bloomberg News relays. That cash is ammunition that
authorities need to pay debt holders and eventually lift capital
controls, making every dollar count, Bloomberg News discloses.
There's more than $4 billion in bond payments due in July,
Bloomberg News notes.
Goldberg, BlackRock's portfolio manager for emerging-market debt,
expects Argentina to expand its energy surplus, already at a
20-year record, in 2025, adding to the optimism among investors,
Bloomberg News discloses. "We're going to continue to see very
strong growth of the energy balance," he said. "This is a
structural factor changing, reshaping the trade balance of
Argentina," he added.
Risks Ahead
Still, the record trade surplus in 2024 hasn't stopped others on
Wall Street from warning that the combination of a stronger peso
and the end of a recession will lead imports to outpace exports,
Bloomberg News notes.
Stoking that worry is how officials in Buenos Aires keep the value
of the currency against the dollar steady, Bloomberg News relays.
Authorities recently said they'd slow the current pace of peso
devaluation to 1% next month, down from 2%, the report discloses.
And with monthly inflation running at 2.7%, it's likely the
currency will appreciate even more, Bloomberg News says.
Asset managers warn that the policy mix would incentivise more
imports than exports, chipping away at dollar inflows, Bloomberg
News notes. As it stands, central bankers see a foreign reserve
deficit of between $4.3 billion and $6.6 billion, according to
brokerage Grupo Cohen SA, Bloomberg News relays.
"We always thought it was inappropriate policy and it still seems
to us as inappropriate policy," said Patrick Campbell, a portfolio
manager at Morgan Stanley Investment Management, referring to the
monthly currency devaluation rule also called the crawling peg,
Bloomberg News notes.
Milei, in an interview with Bloomberg News in Davos, Switzerland,
said he is watching for inflation to decelerate, peso supply to
shrink and additional International Monetary Fund financing to
arrive before he ends the crawling peg and lifts a spate of other
capital controls, Bloomberg News discloses.
"The issue is speed," Milei said. "Obviously, the more financing we
get, the faster we are going to get out," he added.
Bond Outlook
The potential for more peso strength will likely put a cap on the
rally in Argentine dollar bonds, the report relays. The notes have
posted triple-digit returns since Milei took office over a year
ago, according to data compiled by Bloomberg.
"It's hard to see Argentina bonds doing too much better from here,"
said Jeff Grills, head of emerging-markets debt at Aegon Asset
Management, Bloomberg News says.
Others, though, including BlackRock's Goldberg, see more upside.
"There still seems to be a pipeline of good news or good catalysts
that could continue to benefit the asset," he said. A new IMF deal,
a majority for Milei in Congress and the end of capital controls
would help with that, Goldberg added.
For now, investors have to rely on Milei's word that he'll
dismantle currency and capital restrictions, Bloomberg News says.
"These controls not only restrain freedom but go against property
rights," Milei said. "As a libertarian, I respect their life,
property and of course, I'm going to do away with them."
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 Jan. 8, 2025, Moody's Ratings raised Argentina's local currency
ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1
from Caa3. Moody's said the decision to raise the local and
foreign currency ceilings reflects the increased predictability and
the greater consistency in economic policy that has led to a rapid
reduction in monetary and fiscal imbalances that were stoking very
high inflation.
On Nov. 15, 2024, Fitch Ratings 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.
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.
===============
B A R B A D O S
===============
BARBADOS: IDB OKs US$100MM Project to Strengthen Policies System
----------------------------------------------------------------
The Inter-American Development Bank (IDB) has approved a US$100
million project to enhance the effectiveness and efficiency of
social policies and ensure the sustainability of social security in
Barbados.
The program, approved by the IDB's Executive Board of Directors,
also aims to improve the coverage and quality of policies that
promote gender equality, the inclusion of people with disabilities,
and the protection of vulnerable groups in Barbados.
In the short term, the project will directly benefit 49,000
pensioners, 133,000 contributors to the National Insurance and
Social Security Service (NISSS), 46,000 individuals aged 65 and
above, 12,000 people with disabilities, and 1,000 families living
in extreme poverty.
Additionally, the program will enhance the administrative
efficiency of both contributory and non-contributory social
protection systems, including a digital transformation expected to
yield benefits of approximately $80 million per year.
The project will also bolster the long-term sustainability of the
social security system for both public and private sector
employees. It will support reforms to promote the financial
sustainability of the general pension scheme and provide greater
flexibility for contributions made by the self-employed to the
NISSS.
The US$100 million IDB project has a disbursement period of 12
months and a grace period of 5.5 years.
As reported in the Troubled Company Reporter - Latin America in
November 2024, S&P Global Ratings raised its long-term local and
foreign currency sovereign credit ratings on Barbados to 'B' from
'B-', and affirmed its 'B' short-term ratings. The transfer and
convertibility assessment is 'B'.
=============
B O L I V I A
=============
BOLIVIA: Fitch Lowers LongTerm Foreign-Currency IDR to 'CCC-'
-------------------------------------------------------------
Fitch Ratings has downgraded Bolivia's Long-Term Foreign-Currency
Issuer Default Rating (IDR) to 'CCC-' from 'CCC'. Fitch typically
does not assign Outlooks to sovereigns with a rating of 'CCC+' or
below.
Key Rating Drivers
Ratings Downgrade: The downgrade of Bolivia's rating to 'CCC-'
reflects Fitch's view that although a default event does not yet
appear probable, the margin of safety continues to erode as a
result of dwindling foreign exchange (FX) availability and the
absence of corrective economic and fiscal policy measures.
Fuel shortages, road blockades and social unrest have disrupted
economic activity in 2024. Monetary financing of wide fiscal
deficits poses growing risks to macroeconomic stability, as
previously low inflation has begun to accelerate. Political
tensions have heightened in the lead up to elections in August
2025, and ongoing political divisions have forestalled approvals of
new multilateral financing. External commercial debt service is low
in 2025, but risks are growing to bond amortizations beginning in
March 2026.
Low External Liquidity: International reserves at end December 2024
totaled USD1.98 billion, USD1.89 billion of which reflects gold
reserves (currently at the 22-ton legal minimum), 6.4 million in
SDR holdings, and just 47 million in hard currency reserves. The
central bank (BCB) has relied on purchases of local gold, acquiring
14.5 tons in 2024 (worth around USD1.2 billion), which it has then
refined abroad and liquidated, to meet external debt service and
import payments. Additional ad hoc measures to shore up reserves,
such as a central bank USD bond issuance program, have had limited
uptake.
Balance of Payments Pressures Persist: Total exports fell by 19%
yoy through November, as gas production has continued to drop. As
of October, Bolivia stopped exporting gas to neighboring Argentina.
Imports have also seen significant compression, but to a lesser
degree (16%). This has contributed to a reversal of the trade
balance from a slight surplus of USD262 million in 2023 to a
deficit of USD593 million through November 2024.
Fitch expects the current account deficit to widen to 3.5% of GDP
in 2024, from 2.7% in 2023. Sovereign repayments to multilaterals
have exceeded new disbursements, which have been blocked by
congress, though an investment via the public pension fund brought
in USD200 million, as a result of a repo transaction the fund did
with its holdings of sovereign Eurobonds. Bolivia remained current
on its external debt service in 2024 despite these pressures but
has faced fuel import shortages leading to protests and blockades.
Wide Fiscal Deficits, Monetary Financing: Fitch expects the general
government fiscal deficit to remain wide at 9.1% of GDP in 2024,
slightly below the 9.7% deficit in 2023, as higher spending has
failed to adjust to stagnating revenues. Publication of fiscal
statistics have been delayed, with no fiscal data published yet for
2024. Financing of the 2024 deficit was heavily reliant on monetary
financing in the absence of international capital market access.
Fitch forecasts the deficit to remain high at 8.2% in 2025 in the
lead up to elections, although with a large degree of uncertainty
depending how much the government can continue to rely on monetary
financing given rising inflationary pressures and its ability to
access to international capital markets. The 2025 budget authorizes
up to USD3 billion in external issuance and the use of guarantees
or use of its remaining gold reserves as collateral. Yields at
around 22% on the 2028 bond indicate constrained market access.
Net External Debt Repayment: The outstanding stock of central
government external debt fell in 1H24, down 1.5% to USD12.3bn,
indicating net repayment to multilaterals. The stock of central
bank financing to the government continued to grow (up 6% through
June). Fitch forecasts government debt to rise to 77.8% of GDP at
end-2024, from 74.7% in 2023, but limited data availability
continues to constrain full visibility. The interest to revenue
burden, historically low due to the largely concessional nature of
financing, has risen amidst higher floating interest rates and
stagnating revenue (expected to reach 9% in 2025 from 3% in 2019).
Repayment Risks Rising for 2026: Eurobond debt (at 4% of GDP) and
commercial external debt service are low, however uncertainty is
growing around the ability to service bond amortizations in 2026 in
the context of critically low external liquidity. Bolivia owes
USD110 million in coupon payments on its two Eurobonds in 2025,
compared to USD47 million in hard currency reserves. Fitch expects
the government to continue to meet 2025 coupon payments by
prioritizing debt service with FX inflows. The first tranche
(USD333 million) of the USD1 billion 2028 Eurobond is due in March
2026, which poses a greater challenge.
Macro Deterioration: Fitch expects economic growth to be
constrained by the ongoing dollar and fuel shortages and the impact
of social unrest and blockades. Fitch forecasts real GDP growth to
slow to 1.5% in 2024 and 2025, from 3.1% in 2023. The economic
outlook after elections in August 2025 and the potential for policy
adjustments is uncertain, although a significant fiscal adjustment
to address macroeconomic imbalances could continue to constrain
growth.
Inflation Accelerating: Inflation pressures that have long been
contained due to heavy subsidization of the main components of the
CPI basket have begun to emerge, due to scarcity of FX at the
official rate, road blockades and drought conditions in 2024.
Average inflation in 2024 reached 5.1%, up from 2.6% in 2023, with
interannual inflation reaching 10% yoy in December. The parallel
exchange rate remains markedly weaker than the official fixed
exchange rate, although recently has stabilized at a rate about 60%
weaker than the official rate.
August Elections: General elections will be held in August with
uncertainty over the outcome. The ruling MAS party remains
fragmented, with factions supporting current president Luis Arce
and former president Evo Morales respectively. However, the
Constitutional Court again ruled in November 2024 that Morales was
barred from seeking another term.
In December four leaders of the historically fragmented opposition
announced a plan to select one joint nominee to the presidential
race, although that candidate has yet to be selected and it remains
to be seen if this unity will hold until elections. Economic
challenges may mean the winner of August elections inherits the
need for a significant policy adjustment.
ESG - Governance: Bolivia has an ESG Relevance Score (RS) of '5'
for both Political Stability and Rights and for the Rule of Law,
Institutional and Regulatory Quality and Control of Corruption.
Theses scores reflect the high weight that the World Bank
Governance Indicators (WBGI) have in its proprietary Sovereign
Rating Model (SRM). Bolivia has a low WBGI ranking at the 24th
percentile, reflecting recent political instability, weak
regulatory quality, weak rule of law, a high level of corruption,
and moderate voice and accountability.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- External Finances/Structural: Signs of probable default due to
limited access to external financing and depletion of usable
foreign currency reserves and/or evidence of reduced willingness to
pay external debt as a means of alleviating current external
liquidity pressures;
- Macro/Public Finances: Failure to implement a macroeconomic and
fiscal policy adjustment consistent with rebuilding reserves and a
sustainable path for public finances.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- External Finances: Reduced current account pressures and/or
sustained access to external financing sources that durably
rebuilds usable FX reserves, improves debt service capacity, and
supports the sustainability of the stabilized exchange rate
regime;
- Macro/Public Finances: Fiscal consolidation and a macroeconomic
adjustment program that supports stabilization of the government
debt-to-GDP ratio and improves financing flexibility.
Sovereign Rating Model (SRM) and Qualitative Overlay (QO)
Fitch's proprietary SRM assigns Bolivia a score equivalent to a
rating of 'B' on the Long-Term Foreign Currency IDR scale. However,
in accordance with its rating criteria, Fitch's sovereign rating
committee has not utilized the SRM and qualitative overlay (QO) to
explain the ratings in this instance. Ratings of 'CCC+' and below
are instead guided by the rating definitions.
Fitch's SRM is the agency's proprietary multiple regression rating
model that employs 18 variables based on three-year centered
averages, including one year of forecasts, to produce a score
equivalent to a Long-Term Foreign Currency IDR. Fitch's QO is a
forward-looking qualitative framework designed to allow for
adjustment to the SRM output to assign the final rating, reflecting
factors within its criteria that are not fully quantifiable and/or
not fully reflected in the SRM.
Country Ceiling
The Country Ceiling for Bolivia is 'B-', which is the floor for the
Country Ceiling absent the materialization of transfer and
convertibility risks. For sovereigns rated 'CCC+' or below, Fitch
assumes a starting point of 'CCC+' for determining the Country
Ceiling. Fitch's Country Ceiling Model produced a starting point
uplift of one notch. Fitch's rating committee did not apply a
qualitative adjustment to the model result.
ESG Considerations
Bolivia has an ESG Relevance Score of '5' for Political Stability
and Rights as WBGIs have the highest weight in Fitch's SRM and are
therefore highly relevant to the rating and a key rating driver
with a high weight. As Bolivia has a percentile rank below 50 for
the respective Governance Indicator, this has a negative impact on
the credit profile.
Bolivia has an ESG Relevance Score of '5' for Rule of Law,
Institutional & Regulatory Quality and Control of Corruption as
WBGIs have the highest weight in Fitch's SRM and are therefore
highly relevant to the rating and are a key rating driver with a
high weight. As Bolivia has a percentile rank below 50 for the
respective Governance Indicator, this has a negative impact on the
credit profile.
Bolivia has an ESG Relevance Score of '4' for Human Rights and
Political Freedoms as the Voice and Accountability pillar of the
WBGIs is relevant to the rating and a rating driver. As Bolivia has
a percentile rank below 50 for the respective Governance Indicator,
this has a negative impact on the credit profile.
Bolivia has an ESG Relevance Score of '4' for Creditor Rights as
willingness to service and repay debt is relevant to the rating and
is a rating driver for Bolivia, as for all sovereigns. As Bolivia
has a fairly recent restructuring of public debt in 2006, this has
a negative impact on the credit profile.
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
----------- ------ -----
Bolivia LT IDR CCC- Downgrade CCC
ST IDR C Affirmed C
LC LT IDR CCC- Downgrade CCC
LC ST IDR C Affirmed C
Country Ceiling B- Affirmed B-
senior
unsecured LT CCC- Downgrade CCC
===========
B R A Z I L
===========
ANDRADE GUTIERREZ: Fitch Affirms & Then Withdraws 'C' LongTerm IDRs
-------------------------------------------------------------------
Fitch Ratings has affirmed Andrade Gutierrez Engenharia S.A.'s
(AGE) Long-Term Foreign and Local Currency Issuer Default Ratings
(IDRs) at 'C' and the Long-Term National Scale Rating at 'C(bra)'.
Fitch has also affirmed Andrade Gutierrez International S.A.'s
(AGI) senior secured notes due 2029, fully and irrevocably
guaranteed by AGE, at 'C'/'RR4' and of the senior secured notes due
2040 at 'C'/'RR6'.
AGE's 'C' ratings reflect the entrance in the cure period after
missing an interest payment on Dec. 30, 2024 for AGI's 2029 senior
secured notes.
Fitch has withdrawn all ratings for commercial reasons. Fitch will
no longer provide ratings and analytical coverage for AGE and AGI's
issuances.
Key Rating Drivers
Key Rating Drivers are not applicable as the ratings have been
withdrawn.
Recovery Analysis
Key Recovery Rating Assumptions
The recovery analysis assumes AGE would be reorganized as a going
concern (GC) in bankruptcy rather than liquidated. Fitch assumes a
10% administrative claim;
- AGE's going concern EBITDA is BRL300 million, reflecting
approximately 50% discount to Fitch's 2025 projections;
- Fitch considers no gains from the potential collection of
past-due receivables and legal claims, as they would distort
recurring EBITDA;
- A 5x enterprise value multiple is used to calculate a
post-reorganization valuation, in line with the industry's
historical multiples;
- The approach considers the 2040 notes subordinated to the 2029.
Liquidation Value Approach
Fitch excluded this method because Brazilian bankruptcy law tends
to favor the maintenance of a business to preserve direct and
indirect jobs. Moreover, in extreme cases in which liquidation has
been necessary, asset recovery has been very difficult for
creditors.
RATING SENSITIVITIES
Rating sensitivities are not applicable as ratings have been
withdrawn.
Liquidity and Debt Structure
AGE's liquidity is weak and insufficient to cover interest
payments. As of Sept. 30, 2024, AGE had cash and marketable
securities of BRL472 million and total debt of BRL3.9 billion.
Total debt mainly consists of AGI's USD413 million bond due 2029
and USD63 million bond due 2040 (68% of total debt), debentures
with sister-company Andrade Gutierrez Participacoes S.A. (AGPar)
due to the sale of CCR S.A. (17%), working capital lines (4%),
sister-company CONSAG Engenharia S.A.'s debt (10%), and permanent
asset loans and others (1%).
Issuer Profile
Brazilian-based AGE is one of the largest contractors of the
country and also operates in Latin America, Africa and Europe. AGE
had a backlog of BRL17 billion in September 2024, considering
affiliates Consag's and Inzag's projects.
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
Following the withdrawal of the ratings for AGE and AGI, Fitch will
no longer be providing the associated ESG scores.
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
----------- ------ -------- -----
Andrade Gutierrez
Engenharia S.A. LT IDR C Affirmed C
LT IDR WD Withdrawn
LC LT IDR C Affirmed C
LC LT IDR WD Withdrawn
Natl LT C(bra) Affirmed C(bra)
Natl LT WD(bra)Withdrawn
Andrade Gutierrez
International S.A.
senior secured LT C Affirmed RR4 C
senior secured LT WD Withdrawn
senior secured LT C Affirmed RR6 C
senior secured LT WD Withdrawn
===============
C O L O M B I A
===============
FIDEICOMISO PA COSTERA: Fitch Affirms BB+ Rating on USD150MM Bonds
------------------------------------------------------------------
Fitch Ratings has affirmed the following Fideicomiso P.A. Costera
(Costera) ratings:
- USD150.8 million USD bonds at 'BB+'; Outlook Stable;
- COP327,000 million UVR bonds at 'BB+'/'AAA(col)'; Outlook
Stable;
- COP135,000 million UVR loan at 'BB+'/'AAA(col)'; Outlook Stable;
- COP250,000 million COP Loan A at 'AAA(col)'; Outlook Stable;
- COP300,000 million COP Loan B at 'AAA(col)'; Outlook Stable.
RATING RATIONALE
The ratings are based on a concession agreement structure that
limits revenue risks due to the existence of traffic top-ups and
grant payments. The ratings are further supported by an adequate
tariff mechanism that allows annual adjustments of toll rates by
inflation. The ratings also incorporate a strong debt structure
characterized by several prefunded reserve accounts, distribution
tests, a cash sweep mechanism and robust liquidity mechanisms.
Under the Fitch rating case, the loan life coverage ratio (LLCR) is
1.7x, which is strong for the rating category according to Fitch's
applicable criteria and the project's revenue profile, but is
constrained by the transaction's exposure to the credit quality of
Agencia Nacional de Infraestructura's (ANI) obligations under the
concession agreement. ANI is a credit-linked entity to the
Government of Colombia (Local Currency IDR BB+/Stable).
Costera continues the negotiation with ANI to reconcile the final
amount for the top-up payment of the eight-concession year (DR8)
that is outstanding since 2023. Fitch believes Costera can
withstand temporary liquidity stress periods as it benefits from
12-month debt service reserve accounts (DSRAs) and subordinated
multipurpose credit facility (SMF).
KEY RATING DRIVERS
Revenue Risk - Volume - High Midrange
The project's main revenue sources are ANI's contributions and toll
revenues in the form of toll collection and traffic top-up
payments. Traffic revenues are not subject to demand or price risk,
even if traffic volumes are severely below expectations or expected
price increases are not implemented. ANI will periodically
compensate the concessionaire if toll collections are below the
amounts established in the concession contract. Historic traffic
data shows low-to-moderate volatility. The road is expected to face
limited competition during its operational stage, since the
alternatives are longer and have lower average speeds. Toll tariffs
and elasticity are moderate.
Sources of revenue are subject to infrastructure availability,
service levels and quality standards, based on fulfillment of
indicators provided in the concession agreement. There are clearly
defined, unambiguous, back-to-back penalty deduction mechanisms in
the concession agreement with robust cure periods. Deductions are
legally capped at 10%. Fines imposed on the concessionaire and
penalty clauses if the agreement is terminated early are limited by
the contract.
Revenue Risk - Price - Midrange
Tariffs are inflation-adjusted annually. After the Colombian
government issued a national decree to unfreeze toll rates, tariffs
were effectively updated in January 2024 according to the inflation
of 2022. Whereas the catch-up mechanism to account for the
inflation of 2023 is yet to be defined, the concession agreement
protects against discretionary discounts or tariff variations,
allowing a quarterly compensation of loss revenues to the
concessionaire. Toll rates are moderate, and if the net present
value of toll collections received by the eighth, 13th, 18th, and
last year of the concession is below guaranteed values, ANI is
obligated to cover any shortfalls, after deductions.
Infrastructure Dev. & Renewal - Midrange
The project depends on the concessionaire directly implementing a
moderately developed capital and maintenance plan. Project cash
flows will primarily fund the program. The O&M plan, organizational
structure and budget, appear reasonable and in line with similar
projects in Colombia.
In addition, the concessionaire will have a liquid support
instrument equivalent to the maximum amount of O&M expenses
forecast for six months. This instrument must be issued by a
financial entity with a minimum credit rating of 'BBB-' or
'AA+(col)'. The structure also includes a dynamic 12-month,
forward-looking O&M reserve to account for routine and periodic
maintenance expenditures.
Debt Structure - 1 - Stronger
The debt is fully amortizing, senior secured, comprising USD-, UVR-
and COP-denominated financings. USD-denominated debt is matched
with USD-linked currency revenues settled in COP (34% of future
budget allocations [Vigencias Futuras] are USD-linked), were issued
at a fixed rate. The transaction includes a short-term hedging
mechanism provided by eligible counterparties to cover foreign
exchange risk exposure fully. UVR- and COP-denominated debt are
indexed to inflation and are not exposed to basis risk.
Structural features include multiple reserve accounts and a cash
sweep mechanism. Robust liquidity mechanisms are in place to
mitigate liquidity/budgetary risk, construction delays, and reduced
cash flow generation due to low traffic performance. The
transaction has a fully committed, revolving subordinated SMF,
equal to 15% of outstanding senior debt, in which eligible lenders
have committed to disburse funds to the project company when
necessary. Additional liquidity includes 12-month P&I, prefunded
onshore and offshore DSRAs.
Financial Profile
Fitch's rating case LLCR is 1.7x. This metric is strong for the
rating category, according to Fitch's applicable criteria, and when
compared with other similarly rated transactions, especially in
light of the project's low exposure to volume risk. Costera can
withstand temporary liquidity stress periods as it benefits from
12-month DSRAs and the SMF.
PEER GROUP
Costera is comparable with Fideicomiso P.A. Pacifico 3 (Pacifico;
BB+/Stable, AA+[col]/Positive Watch) and P.A. Autopista Rio
Magdalena (ARM; BB/AA[col]/Negative). The three projects are part
of Colombia's 4G toll road program, present similar revenue
streams, and have debt structures with robust mechanisms that
result in a low exposure to volume risk.
ARM is still under construction which supports lower national scale
ratings and its Negative Outlook reflects its exposure to the
deteriorated credit quality of its EPC contractor. Pacifico's
Rating Watch Positive on the national scale ratings reflects the
likelihood of an upgrade once the new shareholder provides a
missing guarantee now that project construction phase is over.
Costera's LLCR (1.7x) is higher than both Pacifico (1.5x) and ARM
(1.4x). Costera's and Pacifico's ratings are constrained by the
credit quality of ANI's obligations under the concession agreement,
while ARM's ratings are constrained by exposure to completion
risk.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Deterioration of the financial and/or operational performance of
the project that leads to a minimum projected LLCR below 1.3x under
Fitch rating case assumptions;
- Deterioration of Fitch's view of the credit quality of ANI's
contributions to the project.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Improvement in Fitch's view regarding the credit quality of ANI's
grantor obligations.
SECURITY
Usual and customary security package for project financings,
including a pledge of the project company's shares, a first
priority security interest in all of the Concessionaire's assets, a
pledge of all onshore and offshore accounts, the EPC contract
security package, all proceeds from credit enhancements and
insurance/reinsurance and a pledge of the right to receive the
termination payment under the CA, if applicable.
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
----------- ------ -----
Fideicomiso P.A.
Costera
Fideicomiso P.A.
Costera/Project
Revenues - First
Lien/1 LT LT BB+ Affirmed BB+
Fideicomiso P.A.
Costera/Project
Revenues - First
Lien/1 Natl LT Natl LT AAA(col)Affirmed AAA(col)
=============
J A M A I C A
=============
JAMAICA: BOJ Floating Treasury Bills to Raise $2.1 Billion
----------------------------------------------------------
RJR News reports that faced with a $7.29 billion shortfall in
revenue and grants during the period April to November of this
fiscal year, the Jamaican government will be floating a 273-day,
182-day and 91-day treasury bill in order to raise some $2.1
billion under competitive bidding to help fund the budget.
Applications for a minimum amount of $5,000 must be made through
the Bank of Jamaica's JamClear Central Securities Depository
between 9 a.m. and 10.45 a.m. on February 5, according to RJR
News.
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 A N A M A
===========
TODOPLAY LLC: S&P Assigns Prelim. 'B+' LongTerm ICR, Outlook Stable
-------------------------------------------------------------------
S&P Global Ratings assigned its 'B+' preliminary long-term issuer
credit rating to Todoplay LLC and its 'B+' preliminary long-term
issue-level rating to the proposed notes.
The stable outlook on S&P's preliminary issuer credit rating
reflects our expectation that Todoplay will extend its debt
maturity profile and strengthen its liquidity position with the
proposed notes, while it sufficiently hedges any currency
mismatches and maintains gross debt to EBITDA below 5x and EBITDA
interest coverage above 2x in the next 12 months.
Todoplay LLC is the leading sportswear retailer in the Andean
region, with 243 stores (using mono- and multi-brand formats)
across Chile, Peru, Ecuador, and Bolivia. Its competitive position
is anchored by its long-standing partnerships with global brands.
For the 12 months that ended Sept. 30, 2024, Todoplay had revenue
of $717.7 million with an EBITDA margin of 10.7%, taking into
account about $12 million of one-off expenses related to a
corporate reorganization and M&A fees.
Todoplay is seeking to issue up to $400 million in senior secured
notes to refinance all of its outstanding debt. The notes would
have a five- to seven-year tenor and would significantly extend the
company's debt maturity profile and strengthen its liquidity
position.
The 'B+' ratings are preliminary and are subject to the completion
of Todoplay's debt refinancing transaction and the implementation
of its hedging strategy for foreign currency mismatches.
Accordingly, the preliminary ratings should not be construed as
evidence of final ratings.
S&P's preliminary ratings reflect its expectation that the proposed
transaction will close with no significant changes from the
proposed structure. S&P will assign a final rating within the next
90 days (that is, from the day it assigns the 'B+' preliminary
ratings) if:
-- The company completes its issuance of senior secured notes and
refinancing of its debt, and
-- It effectively neutralizes its foreign currency risk of debt.
S&P said, "If the company doesn't complete the transaction as
proposed, or if the final amounts and capital structure depart from
our current assumptions, we reserve the right to revise or withdraw
our ratings. Moreover, our 'B+' preliminary ratings also
contemplate the company improving key credit metrics following last
year's one-offs and a tough operating environment in Ecuador.
"We consider Todoplay LLC to be the ultimate parent entity in the
group's credit profile (as it's family-owned)."
The other three coissuing entities are key operating subsidiaries
and are fully controlled by Todoplay, encompassing all of the
material operations that the group has in Peru and Chile, through
Superdeporte Plus Perú S.A.C. and Equinox International S.A.C. in
Peru and Equinox Los Andes SpA in Chile. These three entities are
core to Todoplay, in our view, given their importance to Todoplay
from a business strategy standpoint and the close link between
these entities and the group's reputation, name, and brands.
Moreover, there will be cross-default clauses across the four
coissuers, which also signals the strong commitment from the group
as a whole.
The proposed notes would be guaranteed by all of the relevant
operating subsidiaries in Ecuador, Chile, and Peru, which represent
virtually all of Todoplay's EBITDA and assets. This limits the
potential structural subordination risk from any future unsecured
debt at the subsidiary level.
Lastly, the notes would have a first-lien pledge over the shares of
all relevant subsidiaries.
S&P said, "Our preliminary rating incorporates our expectation that
the company will post S&P Global Ratings-adjusted gross debt to
EBITDA below 5x in 2025 and in the 4x-4.5x range in 2026. It also
incorporates our expectation of EBITDA interest coverage near 2x in
2025 and 2.6x in 2026 (compared with the 5.4x adjusted leverage and
1.5x coverage expected for year-end 2024).
"In our view, the improvement in credit metrics will come from
higher EBITDA. Our base-case scenario assumes revenue growth of
roughly 3% in 2025--and approaching 6%-7% in 2026--mostly with
support from the stabilization of its recently opened stores in
Chile.
"Moreover, we expect that the absence of one-off expenses, along
with a stronger pricing mix in Chile, will result in the EBITDA
margin expanding toward the 13%-14% range from the low 11.6% margin
that we estimate for 2024. In the 12 months that ended Sept. 30,
2024, the company had one-off expenses (related to a corporate
reorganization and M&A transaction) that affected EBITDA margins,
while its Ecuadorian operations were hurt by power outages
resulting from an extraordinary drought.
"Our estimate sees the company's EBITDA for 2025-2026 at roughly
$100 million-$110 million. On the other hand, the pro forma capital
structure anticipates virtually all of the company's debt bearing a
fixed rate, except for potential intrayear working capital credit
lines--which also support stronger coverage ratios than those in
2024.
"The company is expanding its operations in Chile after acquiring
Nike's operations in the country, as well as rights to distribute
and sell Nike products (as Todoplay has been doing in Peru,
Ecuador, and Bolivia). Despite this, we expect improvement in
Todoplay's cash flows due to a gradual recovery in the EBITDA
margin and a more efficient debt structure.
"We anticipate capital expenditures of about $30 million in 2025
and $26 million in 2026, mostly for discretionary investments on
store openings and refurbishments, while maintenance capex will be
approximately $15 million. This capex plan will be funded with
internal cash flow amid our expectation of normalizing cash flows
in the next 12 months, after one-off outflows in 2024. As a result,
we see Todoplay generating positive free operating cash flow in
each of the next two years: nearly $19 million in 2025 and $26
million in 2026."
The company has been the distributor for Nike products in Ecuador
for over 40 years, for Nike products in Peru since 1998, and for
Nike products in Chile since 2022. It's capitalizing on the
infrastructure developed to attract and become the partner of
choice for other brands, such as Adidas, Puma, Reebok, and Under
Armour.
Todoplay operates 243 stores across Peru, Chile, Ecuador, and
Bolivia, which represent about 30%, 30%, 38%, and less than 1% of
revenue, respectively, for the 12 months that ended Sept. 30, 2024.
Moreover, Todoplay is significantly larger than other sports
retailers in these markets: It's estimated to be about 3.5x larger
than its next competitor. It has a dominant competitive position in
Ecuador, and its market shares in Peru and Chile are expanding.
However, Todoplay also competes with larger department stores,
which typically have stronger omnichannel capabilities. And it
operates in a sector that S&P consider to be both highly
competitive and vulnerable to economic downturns, given the
discretionary nature of its product offering.
The company's strategy involves reinforcing its position in
Ecuador--while continuing to gain market share in Peru and
especially Chile--through mono- and multi-brand store openings
under Nike and its proprietary multi-brand store, Marathon. Its aim
is to boost its retail sales, reducing exposure to the wholesale
channel--which should also support improved profitability, if it's
successful.
The company's EBITDA is relatively well distributed among different
economies--Ecuador (B-/Negative/B), Peru (foreign currency
BBB-/Stable/A-3), and Chile (foreign currency A/Stable/A-1).
This enhances Todoplay's capacity to be rated above the current
'B-' sovereign rating on Ecuador, since the company passes the
stress test that we apply, per S&P's methodology. This test assumes
a hypothetical default of Ecuador, which would severely affect the
company's EBITDA generation in the country (which accounts for
about one-third of total EBITDA under normal business conditions).
However, given that roughly two-thirds of Todoplay's EBITDA is
generated outside of Ecuador, and given the expected low use of
short-term debt, S&P'd expect Todoplay to overcome a hypothetical
default of Ecuador without defaulting on its own debt.
The pro forma debt structure will significantly alleviate
Todoplay's current liquidity position by rolling over debt
maturities for the long term.
Moreover, the company's pro forma debt structure will be fully
dollarized; EBITDA generation in U.S. dollars accounts for 37%-40%
of the total, with the remainder being generated in Chilean pesos,
Peruvian soles, and, to a small extent, bolivianos. In our view,
this will create a relevant currency mismatch between the company's
cash flow generation and its debt, exposing it to foreign currency
fluctuations.
Nonetheless, S&P expects the company to use derivative instruments
to hedge against this exposure.
=====================================
T R I N I D A D A N D T O B A G O
=====================================
CARIBBEAN AIRLINES: Defends Safety Standards Against Claims
-----------------------------------------------------------
Trinidad Express reports that Caribbean Airlines Limited said
safety remains "the foundation and number one priority of its
operations" and, as such, rejects any suggestion that safety is
being compromised.
The state-owned airline issued this statement, seeking to reassure
the traveling public following what it described as "entirely
reckless" assertions by the Trinidad and Tobago Airline Pilots
Association (TTALPA) regarding the emergency landing of flight BW
1541, according to Trinidad Express.
"Caribbean Airlines operates in strict compliance with local and
international aviation safety regulations and is subject to
rigorous oversight from multiple independent local and
international regulatory bodies," the release stated, the report
notes.
Caribbean Airlines released what they called "key facts" about the
incident:
-- Adherence to International Standards: Caribbean Airlines
complies fully with the International Civil Aviation Organisation
(ICAO) standards and the IATA Operational Safety Audit (IOSA), both
of which are globally recognised for ensuring the highest levels of
airline safety and operational excellence.
-- Independent Audits and Regulatory Compliance: The airline has
consistently passed all required audits, and importantly, it is an
approved FAA (Federal Aviation Administration) repair station in
accordance with the specified FAA capability listing, meaning that
its maintenance and engineering department has been certified by
the FAA as having the technical expertise to perform repairs,
inspections, and alterations on aircraft and aircraft components,
meeting strict international aviation standards.
-- Ongoing Investigations: In line with the industry's best
practices and regulatory requirements, following the emergency
landing on January 27, Caribbean Airlines has fully activated its
operational response protocols, including:
-- Immediately removing all relevant personnel from active duty
pending the outcome of investigations.
-- Cooperating fully with the authorities to conduct
comprehensive internal and external investigations.
"The airline considers TTALPA's assertions to be entirely reckless,
and in no way in the best interest of the airline, its
stakeholders, and the valued customers it serves," it stated, the
report discloses..
"Caribbean Airlines assures that it remains steadfast in upholding
the highest standards of aviation safety, as demonstrated by its
strong safety record and ongoing commitment to regulatory
excellence," Caribbean Airlines stated, the report relays.
The Trinidad and Tobago Airline Pilots Association (TTALPA)
industrial relations representative Timothy Bailey said the
association was "deeply concerned" about the incident, the report
says.
The report relays that Bailey said:
"TTALPA is deeply concerned by the recent incidents, most recent
being the night of January 27, 2025, involving flight BW1541, and
would advise that over the last decade it has raised multiple
safety concerns with CAL over the ATR aircraft.
"Although it would be premature to comment on what caused the
incident as an investigation is ongoing, we note that in recent
months, similar CAL aircraft have had multiple safety-related near
misses, the report notes.
"TTALPA, its chairman and council is committed to urgently meeting
with CAL and all concerned stakeholders to avoid any future
reoccurrence of this incident as the safety and comfort of the
travelling public, our members and staff is its utmost priority,"
the report adds.
About Caribbean Airlines
Caribbean Airlines Limited -
http://www.caribbean-airlines.com/providespassenger airline
services in the Caribbean, South America, and North America. The
company also offers freighter services for perishables, fish and
seafood, live animals, human remains, and dangerous goods. In
addition, it operates a duty free store in Trinidad. Caribbean
Airlines Limited was founded in 2006 and is based in Piarco,
Trinidad and Tobago.
Caribbean Airlines is among many airlines whose business has been
greatly affected in 2020 by the slowdown of international travel
caused by the COVID-19 pandemic. The government of Trinidad &
Tobago guaranteed a US$65 million loan for the airline, and that
funding has helped with the airlines' cash flow shortfall since
May 2020. In September 2020, the airline related it will be
taking cost-cutting measures to help keep it afloat. The
measures, which was to affect some 1,700 employees, included
salary deductions, no-pay leaves and lay-offs.
*********
S U B S C R I P T I O N I N F O R M A T I O N
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Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.
Copyright 2025. All rights reserved. ISSN 1529-2746.
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