/raid1/www/Hosts/bankrupt/TCRLA_Public/250218.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 18, 2025, Vol. 26, No. 35
Headlines
A R G E N T I N A
ARGENTINA: Gets No Exemption on Steel/Aluminium Tariffs, Trump Says
ARGENTINA: Tariffs Pose Headache for Domestic Producers
B R A Z I L
BRAZIL: Inflation Estimates Near 6% Despite Aggressive Rate Hikes
BRAZIL: Inflation Slows in January on Cheaper Electric Bills
COMPANHIA SIDERURGICA: Moody's Cuts CFR to Ba3, Outlook Stable
MARFRIG GLOBAL: Moody's Affirms 'Ba2' CFR, Outlook Remains Stable
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Closely Monitors U.S. Tariff Measures
DOMINICAN REPUBLIC: U.S. Tariff Policy Could Impact Economy
M E X I C O
MEGA SA: S&P Withdraws 'SD' LongTerm Issuer Credit Rating
T R I N I D A D A N D T O B A G O
[] CARIBBEAN AIRLINES: Introduces Gift Cards
- - - - -
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A R G E N T I N A
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ARGENTINA: Gets No Exemption on Steel/Aluminium Tariffs, Trump Says
-------------------------------------------------------------------
Buenos Aires Times reports that U.S. President Donald Trump has
confirmed that Argentina will not be exempted from the imposition
of steep tariffs on steel and aluminium imports to the United
States.
The Republican leader signed executive orders imposing 25 percent
tariffs on imports of the metals starting March 12. The move
triggered a flurry of angry reactions from large producers, such as
Mexico, Canada and the European Union, according to Buenos Aires
Times.
The decision is a blow to President Javier Milei, who has forged
close ties with the Republican leader, the report notes.
Argentina's steel and aluminium exports to the United States
represent some US$600 million in annual trade, the report relays.
"We have a small deficit with Argentina, as with all countries,"
Trump said at a White House press conference, justifying the
protectionist measure, the report notes.
According to data from the INDEC national statistics bureau,
bilateral trade with the United States produced a surplus of US$228
million last year, mainly due to a 27.9-percent drop in imports
from the United States, as a result of Argentina's ongoing
recession, the report discloses.
In his executive order, Trump said "all imports of aluminium
articles and derivative aluminium articles from Argentina,
Australia, Canada, Mexico, EU countries, and the UK" will be
subject to additional tariffs, the report says.
The same countries are named in his executive order on steel, along
with Brazil, Japan and South Korea, the report relays.
Trump said he was "simplifying" US tariffs, adding: "It's 25
percent without exceptions or exemptions," the report discloses.
"I don't care about retaliatory countries," he stressed.
Australian Prime Minister Anthony Albanese said that the US is
considering granting his nation an exemption after a phone call
with Trump, the report says.
Trump admitted that Australia may receive a reprieve as "we have a
surplus due to the purchase of planes," 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: Tariffs Pose Headache for Domestic Producers
-------------------------------------------------------
Buenos Aires Times reports that U.S. President Donald Trump's
decision to slap 25 percent tariffs on steel and aluminum imports
has put producers in Argentina on red alert.
Trump signed executive orders to impose fresh tariffs on steel and
aluminium imports from March 12, triggering a flurry of reactions
and promises to protect workers from other nations, according to
Buenos Aires Times.
The move prompted concern among local industrialists, who could see
their exports to the world's leading economy take a serious hit,
the report notes.
Projections for the year were for trade of some US$650 million to
the US. With prices now set to soar, it is almost certain that
sales will fall sharply, the report relays.
Domestic giants Tenaris and Aluar, which export part of their
production to the United States, are likely to be heavily affected,
the report notes. Steel producers Acíndar and Ternium, which like
Tenaris is part of the Techint Group, will also be impacted, the
report says.
Aluar, which produces aluminum at its plant in Puerto Madryn,
Chubut Province, sends around 40 percent of its exports to the
United States, according to a report by the Noticias Argentinas
news agency, the report discloses. Last year, the firm's trade
with the US totalled US$530 million, the report says.
In the executive order, Trump said "all imports of aluminium
articles and derivative aluminium articles from Argentina,
Australia, Canada, Mexico, EU countries, and the UK" will be
subject to additional tariffs, the report relays.
The same countries are named in his executive order on steel, along
with Brazil, Japan and South Korea, the report says.
"I'm simplifying our tariffs on steel and aluminium," Trump said in
the Oval Office. "It's 25 percent without exceptions or
exemptions," the report notes.
Canada and Mexico – which Trump has already threatened with
tariffs – are the biggest steel importers to the United States,
according to US trade data, the report relays.
The new steel and aluminium tariffs will apply to all countries
that export these metals to the United States, the report
discloses.
Earlier, Trump also promised that Washington would impose tariffs
on imports of computer chips, pharmaceuticals, copper, oil and gas
in mid-February, the report says.
Macri Reversal, Milei Too?
In his first term in office, Trump imposed tariffs of 25 percent on
steel and 10 percent on aluminium respectively, though Argentina's
then-president Mauricio Macri managed to cut a deal that introduced
a duty-free quota of 180,000 tons, the report notes.
It remains to be seen if President Javier Milei, who has a good
relationship with Trump, will be able to minimise the impact of the
new measures.
Speaking in a television interview, Milei said that Trump is not a
"protectionist" but rather used tariffs as "a negotiating tool,"
the report relays.
"Trump is not a protectionist. Trump uses trade policy as an
instrument of geopolitics," argued the head of state, as he was
quizzed over new steel tariffs, the report discloses.
"Look at what he did with Mexico, what he did with Canada and
Colombia. And he does it with China," said Milei, the report notes.
The La Libertad Avanza leader again reiterated his hopes of sealing
a free-trade agreement with the North American giant, a move he
said would eradicate the problem, the report says.
"My priority is the free-trade agreement with the United States,"
he added.
In comments to Perfil, international analyst Marcelo Elizondo said
that Argentina exports to the United States last year totalled
around US$500 million of aluminium and US$100 million of steel and
iron, the report notes.
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-'.
===========
B R A Z I L
===========
BRAZIL: Inflation Estimates Near 6% Despite Aggressive Rate Hikes
-----------------------------------------------------------------
globalinsolvency.com, citing Bloomberg News, reports that Brazil
analysts revised up 12-month inflation expectations to further
above the central bank's goal, even after policymakers increased
the benchmark interest rate by a full percentage point last month
and pledged another hike of the same magnitude in March.
Consumer prices are forecast to rise 5.87% in the 12 months,
compared with 5.74% in the previous report, according to a weekly
survey of economists published, according to globalinsolvency.com.
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 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: Inflation Slows in January on Cheaper Electric Bills
------------------------------------------------------------
globalinsolvency.com, citing Bloomberg News, reports that Brazil
inflation edged down at the start of the year, as one-time energy
credits provided consumers temporary relief from simmering price
pressures.
Official data released showed consumer prices rose 4.56% from a
year earlier, just under the 4.58% median estimate in a Bloomberg
survey of economists and down from December's pace of 4.83%. On the
month, they increased 0.16%, according to globalinsolvency.com.
The central bank is planning to take the benchmark Selic to 14.25%
next month, marking its third-straight full-point hike, to bring
down prices, the report notes.
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 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.
COMPANHIA SIDERURGICA: Moody's Cuts CFR to Ba3, Outlook Stable
--------------------------------------------------------------
Moody's Ratings downgraded Companhia Siderurgica Nacional (CSN)'s
Corporate Family Rating, CSN Resources S.A.'s Backed Senior
Unsecured Notes and the Backed Senior Unsecured Notes of CSN Inova
Ventures ratings to Ba3 from Ba2. The outlook for these issuers was
changed to stable from negative.
RATINGS RATIONALE
The downgrade to Ba3 reflects the company's weak credit metrics
over the last twelve months and Moody's expectations that metrics
will remain pressured in the next 12-18 months because of weaker
market conditions in the steel and iron ore segments. CSN's
adjusted EBITDA decreased to around BRL10 billion in the 12 months
that ended September 2024 from BRL11.5 billion in 2023, reflecting
lower prices, and the company's adjusted leverage increased to 5.5x
(around 5.0x excluding non-cash items) from 4.0x during the same
period. Moody's expect CSN's adjusted leverage ratio to remain
within 4.5x-5.0x over the next 12-18 months based on lower steel
and iron ore prices, but to strengthen to 4.0x-4.5x over time based
on the price scenario of $80-$110 per ton for iron ore (62% Fe) and
normalized profitability on steel operations. However, unless CSN
is able to accelerate deleveraging through asset sales, capex
reduction or proactive debt reduction, the company's credit metrics
and free cash flow generation will be more commensurate with a Ba3
rating category in the next 2 years.
CSN's Ba3 ratings reflect the company's position as a leading
manufacturer of flat-rolled steel in Brazil, with a favorable
product mix that is focused on value-added products, and as a major
producer of iron ore (the second-largest exporter in Brazil).
Historically, the company has reported a strong Moody's-adjusted
EBITDA margin of 20%-35% (22.0% in the 12 months that ended
September 2024), supported by its solid domestic market position,
wide range of products across different segments and globally
competitive production costs for both steel and iron ore. CSN's
ratings also incorporate an improvement in the company's liquidity,
driven by several measures implemented over the past three years.
CSN's ratings are constrained by the company's track record of
aggressive financial policies, including a highly leveraged capital
structure, an appetite for growth and dividend distributions.
Additional credit concerns include CSN's exposure to the volatility
in the steel business in Brazil and iron ore prices, its
concentration in a single production site in the mining segment and
potential overhangs related to ongoing judicial disputes.
The company has reduced its leverage rapidly in 2020 and 2021
because of a higher EBITDA stream coming from the strong
performance of the iron ore export business and
better-than-expected performance of steel in 2021. The company's
steel and iron ore operations have been softening since 2024 after
the peak performance in 2022 and 2023 but profitability will remain
adequate based on still higher-than-historical price levels,
despite weakness in the Brazilian steel market coming from
competition from imports. CSN generated significant free cash flow
(FCF) in 2022 and 2023, but the company directed proceeds for
acquisitions and dividend payments. The acquisitions and dividend
payments do not jeopardize CSN's credit profile and liquidity
substantially, considering the significant buffer the company has
built under credit metrics, but it does highlight CSN's appetite
for growth and its capital allocation strategy, which does not
prioritize debt reduction. Accordingly, the company's total debt
and leverage increased in the last 2 years and CSN will still need
to build a track record of conservative financial management,
either through the maintenance of a robust cash position or through
the acceleration of gross debt reduction.
LIQUIDITY
CSN's cash position was BRL19.5 billion (BRL20.5 billion, including
Usinas Siderurgicas de Minas Gerais S.A.'s shares) at the end of
September 2024, of which BRL14.5 billion is at CSN Mineração. The
company's cash position increased as a result of the FCF generated
since mid-to-late 2020 and the company's liquidity-enhancing
initiatives, such as the BRL4 billion initial public offering (IPO)
of its mining subsidiary, the monetization of BRL1.3 billion
related to Usiminas' preferred shares and will improve further with
the additional sale of 10.7% stake in the mining subsidiary in the
fourth quarter of 2024. CSN's debt amortization schedule also
improved sustainably with liability management initiatives that
reduced debt costs and increased debt tenors.
Moody's expect CSN to maintain a recurring cash position close to
BRL15 billion, and CSN has stated its target to maintain net
leverage below 3.0x. Such milestones increase visibility into CSN's
ability to maintain solid credit metrics and liquidity while the
company continues to invest in growth, although the company still
lacks a track record of adhering to such targets.
RATING OUTLOOK
The stable outlook reflects Moody's expectation that CSN's credit
metrics will remain adequate for the Ba3 rating category in the
next 12-18 months and that the company will maintain a good
liquidity.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
CSN's ratings could be downgraded if the company's performance does
not improve over the next 12-18 months, such that its leverage
remains above 5.0x and EBIT/interest remains below 1.5x on a
sustained basis. Evidence of more aggressive financial management,
such as large acquisitions or dividend distributions, or a
deterioration in the company's liquidity would also trigger a
rating downgrade.
CSN's ratings could be upgraded if the company exhibits
conservative financial management over an extended period, or
builds a track record of financial flexibility, either through a
strengthened cash position or a lower debt balance through
commodity cycles. An upgrade would also require total leverage to
recover below 4.0x total adjusted debt/EBITDA and an interest
coverage ratio, measured as EBIT/interest expense, above 2.5x on a
sustained basis.
COMPANY PROFILE
With an annual capacity of 5.6 million tons of crude steel,
Companhia Siderurgica Nacional (CSN) is a vertically integrated,
low-cost producer of flat-rolled steel, including slabs, hot and
cold rolled steel, and a wide range of value-added steel products,
such as galvanized sheet and tin plates. In addition, the company
has downstream operations to produce customized products,
pre-painted steel and steel packaging. CSN sells its products to a
broad array of sectors and industries, including automotive,
capital goods, packaging, construction and home appliance. CSN owns
and operates cold rolling and galvanizing facilities in Portugal,
along with long steel assets in Germany, through its subsidiary
Stahlwerk Thüringen GmbH. The company also has a long steel line
(500,000 tons capacity) at the Volta Redonda plant. CSN is a major
producer of iron ore (the second-largest exporter in Brazil), with
a sales volume of 43.0 million tons in the 12 months that ended
September 2024. The company has operations in other segments, such
as cement, logistics, port terminals and power generation. CSN
reported revenue of BRL43.7 billion ($7.9 billion) in the 12 months
that ended September 2024, with an adjusted EBITDA margin of
22.0%.
The principal methodology used in these ratings was Steel published
in November 2021.
MARFRIG GLOBAL: Moody's Affirms 'Ba2' CFR, Outlook Remains Stable
-----------------------------------------------------------------
Moody's Ratings affirmed Marfrig Global Foods S.A.'s Ba2 corporate
family rating; the outlook remains stable.
RATINGS RATIONALE
The affirmation of the Ba2 rating reflects by the improvement in
credit metrics, coming mainly by the strong performance of
Marfrig's South American operations and BRF S.A. (BRF), which is
fully consolidated into Marfrig's financial statements. However,
the downturn in the US beef segment since 2023 has pressured
margins and cash flows from National Beef, therefore leading to
higher leverage and lower interest coverage metrics at Marfrig (on
a consolidated basis).
In 2023, Marfrig announced the sale of assets in Brazil, Argentina,
Uruguay and Chile, for a total of BRL7.5 billion (BRL 1.5 billion
received at the announcement). The deal was approved in September
2024 for all countries but Uruguay and the company received BRL 5.7
billion in total proceeds at the end of October 2024. The sale of
assets in Uruguay was initially not approved, but the company is
waiting for the final decision (currently under appeal). If
approved, Marfrig will receive an additional BRL 780 million,
currently held in an escrow account. On February 11, 2025, Minerva
S.A. submitted a new request to the regulator in Uruguay to acquire
the plants owned by Marfrig, with no changes to the terms of the
original proposal.
Proceeds received from asset divestiture in South America allowed
for debt reduction, but with limited impact on leverage. Proceeds
(BRL 5.7 billion) received in later 2024 were used to redeem the
2026 bonds for a total amount of $500 million, leaving about $200
million outstanding for this instrument. At the same time, Marfrig
redeemed BRL 500 million in debentures due in 1Q26, and issued BRL
2 billion in debentures in the local market (CRAs) to help pre-pay
BRL 1.25 billion in bilateral loans. Therefore, the implication to
leverage was limited, with a decline from 4.7x to 4.1x on a
pro-forma basis, excluding FX devaluation impact at the end of
2024.
The Ba2 rating remains supported by Marfrig's scale as the second
largest beef producer globally, its good geographic footprint and
diversification in terms of raw material sourcing, which reduce
weather-related risks and animal diseases. The 50.5% share in BRF
supports a larger geographic and segment diversification into
poultry and pork. These strengths are balanced against the
company's large presence in the cyclical beef industry, which is
characterized by volatile earnings, and the large dependence on the
North America segment for cash flows.
Marfrig has adequate liquidity to weather the challenging
environment over the next twelve months, supported by a cash
balance of BRL 19.9 billion (consolidated) at the end of September
2024 – BRL 10.7 billion at BRF S.A. - which covers all debt
maturities through the end of 2026.
The stable outlook indicates that Moody's anticipate that credit
metrics will not show a significant improvement in the next 12-18
months, as the strong performance in the poultry segment will
continue to be offset by challenges in the beef segment. The stable
outlook also incorporates Moody's assumption that Marfrig will
maintain adequate liquidity over the next 12-18 months, supported
by financial discipline in capital allocation.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
An upward rating movement would require Marfrig to maintain strong
liquidity, demonstrate a track record of financial discipline, and
strengthen its financial flexibility by reducing its debt levels as
such that even in periods of a market downturn, leverage would stay
at or below Moody's total adjusted debt/EBITDA of 3x and interest
coverage, measured by EBITDA/interest expense, sustained at 7x and
above. Additionally, Marfrig would need to display a resilient
performance even during market downturns and irrespective of the
underlying cattle cycle, macroeconomic environment, and consumption
and trade patterns in key markets, particularly in the US and
Brazil. Quantitively, an upgrade would require the maintenance of
strong operating performance, with RCF/Net Debt sustained at 25% or
above.
Marfrig's ratings could be downgraded if the company's operating
performance weakens, its financial policy becomes more aggressive,
or its liquidity deteriorates. Quantitatively, the ratings could be
downgraded if total debt/EBITDA is sustained above 3.5x for a
prolonged period, EBITDA/interest expense stays below 4x or RCF/net
debt stays below 15% on a sustained basis. All credit metrics
incorporate Moody's standard adjustments and reflect Marfrig's
consolidated financials.
The principal methodology used in this rating was Protein and
Agriculture published in August 2024.
Marfrig Global Foods S.A., headquartered in Sao Paulo, is the
second-largest beef producer globally, with consolidated revenue of
BRL142 billion (around $27.6 billion) in the 12 months that ended
September 2024. Marfrig owns 81.73% of National Beef and 50.49% of
BRF S.A. as of February 2024. The company has a large scale and is
diversified in terms of operating production facilities, with
slaughtering plants and/or processing facilities in the US, Brazil,
Argentina and Uruguay.
In North America, National Beef is the fourth-largest beef
processor, while Marfrig is the second-largest beef processor in
Brazil, and the largest beef patty producer worldwide. Marfrig also
has relevant positions in South America, as the largest protein
producer in Uruguay. Marfrig fully consolidates BRF, which is the
largest poultry exporter globally. BRF reported revenue of BRL58.3
billion ($11.3 billion) in the 12 months that ended September
2024.
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Closely Monitors U.S. Tariff Measures
---------------------------------------------------------
Dominican Today reports that President Luis Abinader stated that
the Dominican Republic is closely monitoring the tariffs imposed by
the Trump administration on various countries, though they have not
impacted the nation so far. He emphasized that these are sovereign
decisions by the U.S. and reaffirmed the Dominican Republic's "very
special" relationship with its main trading partner, according to
Dominican Today.
Abinader highlighted the strength of bilateral ties, underscored by
the recent visit of U.S. Secretary of State Marco Rubio. Regarding
China, he described relations as "cordial" and noted that the topic
was not discussed with Rubio, the report notes.
The Dominican Republic established diplomatic relations with China
in 2018, ending its longstanding ties with Taiwan. Abinader
reiterated that Chinese investments are welcome, provided they do
not affect national security or strategic sectors, the report
adds.
About Dominican Republic
The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district. Luis Rodolfo
Abinader Corona is the current president of the nation.
TCR-LA reported in April 2019 that Juan Del Rosario of the UASD
Economic Faculty cited a current economic slowdown for the
Dominican Republic and cautioned that if the trend continues,
growth would reach only 4% by 2023. Mr. Del Rosario said that if
that happens, "we'll face difficulties in meeting international
commitments."
An ongoing concern in the Dominican Republic is the inability of
participants in the electricity sector to establish financial
viability for the system.
Standard & Poor's credit rating for Dominican Republic was raised
to 'BB' in December 2022 with stable outlook. Moody's credit
rating for Dominican Republic was last set at Ba3 in August 2023
with the outlook changed to positive. Fitch, in December 2023,
affirmed the Dominican Republic's Long-Term Foreign-Currency Issuer
Default Rating (IDR) at 'BB-' and revised the outlook to positive.
DOMINICAN REPUBLIC: U.S. Tariff Policy Could Impact Economy
-----------------------------------------------------------
Dominican Today reports that Economist Jaime Aristy Escuder
cautioned that the trade policies of former U.S. President Donald
Trump could cause global economic instability and negatively impact
the Dominican Republic, particularly in tourism and manufacturing.
He highlighted that if the U.S. maintains a 25% tariff on Mexican
goods, the Mexican peso could depreciate by up to 10%, making
Mexico a more affordable destination and reducing the Dominican
Republic's tourism competitiveness, according to Dominican. If the
U.S. increases import costs from Mexico and China, American
companies might relocate production to the Dominican Republic,
benefiting the free trade zones, the report relays.
Aristy Escuder explained that Trump's policy aims to boost U.S.
domestic trade but has sparked retaliatory measures from Mexico and
Canada, escalating regional economic tensions, the report says. He
warned that these policies could slow U.S. economic growth,
affecting global markets. Given the potential risks, he urged the
Dominican government to closely monitor trade developments to
mitigate possible negative effects on the national economy, the
report discloses.
About Dominican Republic
The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district. Luis Rodolfo
Abinader Corona is the current president of the nation.
TCR-LA reported in April 2019 that Juan Del Rosario of the UASD
Economic Faculty cited a current economic slowdown for the
Dominican Republic and cautioned that if the trend continues,
growth would reach only 4% by 2023. Mr. Del Rosario said that if
that happens, "we'll face difficulties in meeting international
commitments."
An ongoing concern in the Dominican Republic is the inability of
participants in the electricity sector to establish financial
viability for the system.
Standard & Poor's credit rating for Dominican Republic was raised
to 'BB' in December 2022 with stable outlook. Moody's credit
rating for Dominican Republic was last set at Ba3 in August 2023
with the outlook changed to positive. Fitch, in December 2023,
affirmed the Dominican Republic's Long-Term Foreign-Currency Issuer
Default Rating (IDR) at 'BB-' and revised the outlook to positive.
===========
M E X I C O
===========
MEGA SA: S&P Withdraws 'SD' LongTerm Issuer Credit Rating
---------------------------------------------------------
S&P Global Ratings withdrew its ratings on Operadora de Servicios
Mega, S.A. de C.V. SOFOM, E.R. (Mega). The withdrawal includes the
'SD' (selective default) long-term issuer credit rating on Mega and
the 'D' (default) issue-level ratings on its senior bond. S&P
withdrew its ratings because it has not received sufficient
information from the company to keep its credit analysis up to
date.
Mega announced the approval of a Chapter 15 Petition by the U.S.
Bankruptcy Court on Feb. 7, 2025. The resolution issued by the
court meets one of the conditions for the restructuring process.
Once all conditions are met, the company expects to proceed with
execution of its restructuring.
S&P said, "We are unable to analyze the most recent credit standing
of Mega and its ability and willingness to face its financial
obligations. Therefore, we determined, in accordance with our
methodologies and policies, that there is insufficient information
to comply with our information quality and reliability standards,
which we require to maintain our ratings on the issuer."
=====================================
T R I N I D A D A N D T O B A G O
=====================================
[] CARIBBEAN AIRLINES: Introduces Gift Cards
--------------------------------------------
Trinidad Express reports that Caribbean Airlines says that as part
of its vision of becoming a "lifestyle brand" rather than just a
transportation provider, it will introduce gift cards.
According to the airline, these Caribbean Airlines Gift Cards will
allow customers to share the gift of travel with friends and
family, the report relays.
Chief executive officer Garvin Medera made the comments as
Caribbean Airlines reaffirmed its commitment to its valued
customers and partners at its exclusive Welcome Home to Love and
Loyalty customer appreciation event, held at the Winifred Atwell
Auditorium, Queen's Hall, Port of Spain, according to Trinidad
Express.
"At Caribbean Airlines, loyalty is more than just miles—it's
about relationships, trust, and the shared journeys we take
together. This evening is about reaffirming our commitment to you,
our valued stakeholders, who continue to make Caribbean Airlines
the airline of choice in the region," Medera stated, the report
notes.
"As part of its evolving product offering, the airline announced
the introduction of Caribbean Airlines Gift Cards, allowing
customers to share the gift of travel with friends and family.
This new feature aligns with the airline's vision of being more
than a transportation provider, but a lifestyle brand, where travel
integrates seamlessly with culture, convenience, and unforgettable
experiences, the report discloses.
The airline's Jetpak courier service is also set to expand to other
territories later this year," a release stated, the report says.
The celebration honoured the airline's top tier loyalty members and
officially launched its revamped Caribbean Miles programme,
offering customers more ways to earn, greater flexibility, and
enhanced rewards across the airline's growing route network, the
report relays.
It stated that Caribbean Miles remains a pillar of Caribbean
Airlines' customer engagement strategy, the report notes.
"The enhancements to the programme will open up even more
opportunities for members to earn and redeem miles, making travel
within the region and beyond even more rewarding," the release
stated, the report says.
The report relays that Caribbean Airlines said the evening was a
"vibrant mix of entertainment, appreciation, and forward-looking
announcements, reflecting the airline's commitment to fostering
deep connections with its customers, partners, and the wider
Caribbean community."
The night's entertainment featured some of the Caribbean's top soca
artistes including Mical Teja, Bunji Garlin (Ian Alvarez) and
Machel Montano who released the airline's latest jingle which
reflected the spirit of celebration and cultural pride that defines
the airline's brand, the report says.
Medera also thanked Angostura Ltd with whom the airline has
partnered to produce its exclusive CIM Rum Punch, the report
discloses.
The company will also have its own Jouvert band in the Trinidad
Carnival this year, the report notes.
"Caribbean Airlines continues to live by its theme, ‘Welcome
Home—Home is Where the Heart Is,' ensuring that every journey
feels like coming home—whether it's for business, leisure, or
reconnecting with loved ones," it stated, 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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