/raid1/www/Hosts/bankrupt/TCRLA_Public/250418.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
Friday, April 18, 2025, Vol. 26, No. 78
Headlines
A R G E N T I N A
ARGENTINA: Central Bank Sells Up to US$400 Million to Defend Peso
ARGENTINA: Government Overhauls Exchange Rate Access
ARGENTINA: IDB to Provide $10 Billion in Support
GAUCHO GROUP: Court Approves Settlement, Plans Chapter 11 Exit
GAUCHO GROUP: Nasdaq to Delist Common Stock After Suspension
GAUCHO GROUP: Reaches $5.5M Settlement With 3i to Dismiss Ch. 11
B A R B A D O S
BARBADOS: Moody's Ups Issuer Ratings to B2, Outlook Remains Stable
C O L O M B I A
LIFEMILES LTD: S&P Withdraws 'B-' Long-Term Issuer Credit Rating
G U A T E M A L A
BANCO DE LOS TRABAJADORES: Fitch Affirms 'BB' Long-Term IDR
P E R U
AENZA SAA: Fitch Affirms 'BB-' Long-Term IDR, Alters Outlook to Neg
- - - - -
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A R G E N T I N A
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ARGENTINA: Central Bank Sells Up to US$400 Million to Defend Peso
-----------------------------------------------------------------
Buenos Aires Times reports that Argentina's Central Bank sold as
much as US$400 million to defend the peso on Friday, April 11,
according to traders with direct knowledge of the matter, the most
in a day since mid-March.
The sale of Central Bank reserves came just days after the
International Monetary Fund announced a new US$20-billion loan
accord with Argentina, according to Buenos Aires Times. The
agreement has stoked speculation of a one-off devaluation, the
report notes.
In an additional step to defend the local currency, the Central
Bank suspended one- to seven-day repos that local banks used to buy
dollars, according to a statement obtained by the news agenncy.
The sale dents President Javier Milei's attempts to re-build the
country's war chest of hard-currency reserves that are essential to
paying international bondholders and eventually lifting capital and
currency controls next year, the report says. The reserves will be
used for more than US$4 billion in bond payments due in July, the
report relays.
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.
On April 11, 2025, the International Monetary Fund (IMF) approved
a 48-month Extended Fund Facility (EFF) arrangement for Argentina
totaling US$20 billion (or 479 percent of quota), with an immediate
disbursement of US$12 billion, and a first review planned for June
2025 with an associated disbursement of about US$2 billion. The
program is expected to help catalyze additional official
multilateral and bilateral support, and a timely re-access to
international capital markets.
On Feb. 17, 2025, S&P Global Ratings lowered its local currency
sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and
its national scale rating to 'SD' from 'raB+'. At the same time,
S&P affirmed its 'CCC/C' foreign currency sovereign credit ratings
on Argentina. The outlook on the long-term foreign currency rating
remains stable.
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.
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: Government Overhauls Exchange Rate Access
----------------------------------------------------
Buenos Aires Times reports that Argentina's government has
announced sweeping changes to rules limiting access to foreign
currency and its exchange rate regime.
Speaking at a press conference on Friday, April 11, Economy
Minister Luis Caputo said the country was entering "phase three" of
its economic program -- a shift that will introduce a so-called
"dirty float" or floating exchange rate limiting the peso to within
a band of 1,000 to 1,400 per US dollar, according to Buenos Aires
Times.
The new regime was to take effect April 14, said the official, the
report notes.
If the peso reaches the upper limit of the band, the move would
represent a 23 percent devaluation from the current exchange rate,
the report relays.
Government officials said they do not expect the currency to hit
that ceiling immediately, but the range introduces greater
flexibility in the exchange rate, effectively acknowledging that
the peso was overvalued, the report discloses.
The Central Bank clarified that 1,400 pesos is the maximum value in
the band, not a preset exchange rate, the report says. The peso
will fluctuate within the band according to market conditions, the
report relates.
Milei's economic team hopes the adjustment will help narrow the gap
with parallel market rates and strengthen competitiveness, the
report notes.
The announcement also included the elimination of the so-called
'dolar blend,' a mechanism that had allowed exporters to convert a
portion of their earnings at a higher, more favorable rate, the
report discloses.
By removing this tool, the government aims to unify the exchange
market and improve the transparency of currency operations, while
maximizing the flow of foreign exchange into Central Bank reserves,
the report relays.
According to government estimates, the Central Bank will have
US$28.1 billion available to support the transition out of currency
controls, the report notes. This figure includes expected IMF
disbursements, the Chinese swap line, and repo agreements with
global financial institutions, the report says.
The policy change marks an official recognition that the peso had
become significantly misaligned -- a point long raised by IMF staff
and independent analysts, the report discloses.
As part of the plan, the government will replace the exchange rate
anchor with a monetary anchor focused on controlling the monetary
base and eliminating money printing to finance the deficit, the
report relays.
In support of the transition, the Central Bank also announced it
would boost reserves, including through the renewal of a
US$5-billion currency swap with China, which was announced earlier,
the report relates.
Caputo said that lifting the foreign exchange controls would help
attract capital inflows to Argentina and pave the way for greater
investment, the report notes.
The new regime aims to eliminate the informal "blue dollar" market,
lift the monthly US$200 cap on foreign currency purchases for
individuals, adds the report.
About Argentina
Argentina is a country located mostly in the southern half of South
America. Its capital is Buenos Aires. Javier Milei is the current
president of Argentina after winning the November 19, 2023 general
election. He succeeded Alberto Angel Fernandez in the position.
Argentina has the third largest economy in Latin America. The
country's economy is an upper middle-income economy for fiscal year
2019, according to the World Bank. Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.
In March 2022, the International Monetary Fund (IMF) approved a new
30-month arrangement under an Extended Fund Facility for Argentina
in the amount of SDR 31.914 billion (equivalent to US$44 billion,
or 1000 percent of quota). The IMF Executive Board's decision
allowed the authorities an immediate disbursement of an equivalent
of US$9.65 billion in March 2022.
Argentina's IMF-supported program seeks to improve public finances
and start to reduce persistent high inflation through a
multi-pronged strategy, involving a gradual elimination of monetary
financing of the fiscal deficit and enhancements in the monetary
policy framework.
On April 11, 2025, the International Monetary Fund (IMF) approved
a 48-month Extended Fund Facility (EFF) arrangement for Argentina
totaling US$20 billion (or 479 percent of quota), with an immediate
disbursement of US$12 billion, and a first review planned for June
2025 with an associated disbursement of about US$2 billion. The
program is expected to help catalyze additional official
multilateral and bilateral support, and a timely re-access to
international capital markets.
On Feb. 17, 2025, S&P Global Ratings lowered its local currency
sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and
its national scale rating to 'SD' from 'raB+'. At the same time,
S&P affirmed its 'CCC/C' foreign currency sovereign credit ratings
on Argentina. The outlook on the long-term foreign currency rating
remains stable.
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.
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: IDB to Provide $10 Billion in Support
------------------------------------------------
The Inter-American Development Bank (IDB) will support Argentina
with up to $10 billion in financing for the public and private
sectors over the next three years, subject to approval by its Board
of Executive Directors. This commitment complements the country's
recent agreements with the International Monetary Fund (IMF) and
the World Bank.
The three-year package includes $7 billion from the IDB to support
the public sector and $3 billion from IDB Invest to boost
private-sector activity. In the first year, the IDB expects to
deliver $3 billion in sovereign financing, a significant share of
which will be disbursed in the coming months; IDB Invest will
provide $1 billion for private-sector operations.
This support is part of a broader international effort to support
Argentina's ongoing recovery. Under the 2025-2028 Country Strategy
being developed with national authorities, and in line with the IMF
program, the IDB will support reforms that build on the country's
efforts to continue improving the efficiency of public spending and
create more favorable conditions for private-sector-led
development.
IDB President Ilan Goldfajn said, "The IDB is committed to
supporting Argentina's economic program, working closely with the
IMF and the World Bank. We are not only coordinating with the
government, we are jointly implementing key measures to sustain and
strengthen the fiscal discipline achieved under President Milei's
administration, while also promoting private-sector-led
development."
This support reflects the IDB's determination to support
Argentina's recovery, working with the government, the private
sector, and other key partners to deliver results and improve
lives.
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.
On April 11, 2025, the International Monetary Fund (IMF) approved
a 48-month Extended Fund Facility (EFF) arrangement for Argentina
totaling US$20 billion (or 479 percent of quota), with an immediate
disbursement of US$12 billion, and a first review planned for June
2025 with an associated disbursement of about US$2 billion. The
program is expected to help catalyze additional official
multilateral and bilateral support, and a timely re-access to
international capital markets.
On Feb. 17, 2025, S&P Global Ratings lowered its local currency
sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and
its national scale rating to 'SD' from 'raB+'. At the same time,
S&P affirmed its 'CCC/C' foreign currency sovereign credit ratings
on Argentina. The outlook on the long-term foreign currency rating
remains stable.
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.
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.
GAUCHO GROUP: Court Approves Settlement, Plans Chapter 11 Exit
--------------------------------------------------------------
Gaucho Group Holdings, Inc., a company that includes a growing
collection of e-commerce platforms with a concentration on fine
wines, luxury real estate, and leather goods and accessories,
announced that on March 28, 2025, the United States Bankruptcy
Court approved a settlement agreement between the Company and a
major creditor in connection with its pending Chapter 11 case.
The Court's approval of the settlement allows the parties to
satisfy the terms required before closing of the settlement, which
shall be no later than May 22, 2025, unless extended by the consent
of both parties. The Court found the terms of the settlement to be
fair and negotiated in good faith, with no objections raised by
other parties in interest. Under the agreement, Gaucho Holdings and
3i, LP will exchange mutual releases, formally resolving any
outstanding claims between the parties.
Pursuant to the terms of the settlement, Gaucho Holdings is
required to file a motion with the Court to seek dismissal of the
Chapter 11 case by no later than June 2, 2025. The Court has
retained jurisdiction to oversee the implementation of the
agreement and to resolve any potential disputes related to its
execution.
With the Court's approval now in place, Gaucho Holdings is pleased
to move positively forward from this chapter and return its focus
to operating, managing, and growing its portfolio of businesses in
Argentina. The Company views this as an important step toward
stabilizing its foundation and continuing to explore opportunities
that may build value for its stakeholders. At the macro level,
recent economic reforms and pro-market developments in Argentina
have created a more favorable business climate. Gaucho Holdings
remains encouraged by these changes and anticipates participating
in what it believes could be a period of meaningful expansion in
the years ahead.
The full terms of the settlement agreement and related court
documents are available in the Company's Form 8-K filed with the
U.S. Securities and Exchange Commission, accessible at
https://ir.gauchoholdings.com/sec-filings/all-sec-filings.
About Gaucho Group Holdings, Inc.
Gaucho Group Holdings Inc operates as a holding company. The
Company, through its subsidiaries, provides luxury real estate and
consumer marketplace with collection of wine, hospitality, fashion
brands, and real estate holdings. Gaucho Group Holdings serves
customers in the United States and Argentina.
Gaucho Group Holdings Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Fl. Case No. 24-bk-21852) on
November 12, 2024. At the time of filing, the Debtor estimated
$10,000,001 to $50 million in both assets and liabilities.
Judge Laurel M. Isicoff handles the case.
Nathan G Mancuso, Esq. at Mancuso Law, P.A. represents the Debtor
as counsel.
GAUCHO GROUP: Nasdaq to Delist Common Stock After Suspension
------------------------------------------------------------
The Nasdaq Stock Market announced that it will delist the common
stock of Gaucho Group Holdings, Inc.
Gaucho Group's stock was suspended on November 22, 2024 and has
not
traded on Nasdaq since that time. Nasdaq will file a Form 25 with
the Securities and Exchange Commission to complete the delisting.
The delisting becomes effective 10 days after the Form 25 is
filed.
For news and additional information about the company, including
the basis for the delisting and whether the company's securities
are trading on another venue, please review the company's public
filings or contact the company directly.
For more information about The Nasdaq Stock Market, visit the
Nasdaq Web site at http://www.nasdaq.com.Nasdaq's rules governing
the delisting of securities can be found in the Nasdaq Rule 5800
Series, available on the Nasdaq Web site:
https://listingcenter.nasdaq.com/rulebook/nasdaq/rules/nasdaq-5800-series.
About Gaucho Group Holdings Inc.
Gaucho Group Holdings, Inc. is a Delaware holding company
headquartered in Miami, Fla., which owns certain subsidiaries
including operating companies that own a winery, boutique hotel
and
real property in Argentina.
Gaucho filed Chapter 11 petition (Bankr. S.D. Fla. Case No.
24-21852) on November 12, 2024, with $10 million to $50 million in
both assets and liabilities.
Nathan G. Mancuso, Esq., at Mancuso Law, P.A. is the Debtor's
legal
counsel.
GAUCHO GROUP: Reaches $5.5M Settlement With 3i to Dismiss Ch. 11
----------------------------------------------------------------
Gaucho Group Holdings, Inc., a company that includes a growing
collection of e-commerce platforms with a concentration on fine
wines, luxury real estate, and leather goods and accessories,
announced on March 18, 2025, that it has entered into a settlement
term sheet with 3i, LP, 3i Management LLC, and Maier Joshua Tarlow
to resolve outstanding litigation and facilitate a structured
dismissal of the Company's Chapter 11 reorganization proceedings,
subject to approval by the Chapter 11 Bankruptcy Court.
As previously reported on the Company's Current Report on Form 8-K
filed on February 20, 2024, Gaucho Holdings commenced an action in
the United States District Court for the District of Delaware on
February 16, 2024, through the filing of a complaint against the
3i
Parties. The litigation pertained to that certain Securities
Purchase Agreement, promissory note, and ancillary agreements
entered into between the Company and the 3i Parties.
Additionally, as disclosed in the Company's Current Report on Form
8-K filed on November 12, 2024, the Company filed a voluntary
petition in the United States Bankruptcy Court for the Southern
District of Florida, seeking relief under Chapter 11 of Title 11
of
the United States Code.
On March 12, 2025, Gaucho Holdings and the 3i Parties entered into
a settlement term sheet under which, in exchange for the
cancellation of the Securities Contracts, dismissal of the
Delaware
Litigation and related litigation, and a structured dismissal of
the Chapter 11 Reorganization, the Company has agreed to make a
cash settlement payment of $5,500,000 to the 3i Parties over a
12-month period. This settlement will be substantially secured by
all right, title, and interest in the Algodon Mansion and/or the
Company subsidiaries holding all right, title, and interest in the
Algodon Mansion and associated intellectual property. Further, as
part of the settlement, the Parties have agreed to enter into a
hotel management agreement for the Algodon Mansion.
The settlement term sheet is subject to review and approval by the
Chapter 11 Bankruptcy Court. The Company will provide updates as
appropriate in accordance with its disclosure obligations.
About Gaucho Group Holdings, Inc.
Gaucho Group Holdings Inc operates as a holding company. The
Company, through its subsidiaries, provides luxury real estate and
consumer marketplace with collection of wine, hospitality, fashion
brands, and real estate holdings. Gaucho Group Holdings serves
customers in the United States and Argentina.
Gaucho Group Holdings Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Fl. Case No. 24-bk-21852) on
November 12, 2024. At the time of filing, the Debtor estimated
$10,000,001 to $50 million in both assets and liabilities.
Judge Laurel M. Isicoff handles the case.
Nathan G Mancuso, Esq. at Mancuso Law, P.A. represents the Debtor
as counsel.
===============
B A R B A D O S
===============
BARBADOS: Moody's Ups Issuer Ratings to B2, Outlook Remains Stable
------------------------------------------------------------------
Moody's Ratings has upgraded the long-term issuer ratings of the
Government of Barbados' to B2 from B3. The outlook remains stable.
The upgrade reflects Barbados' track-record of fiscal
consolidation, with sustained primary surpluses and a narrowing
fiscal deficit that place debt on a firm downward trajectory. The
government has implemented institutional and structural reforms
that improve fiscal policy effectiveness, limiting the risk of
fiscal slippage even when faced with external shocks, and reflect
well on the strength of institutions and governance. The improved
fiscal position and continued access to concessional external
financing from multilateral creditors reduces government liquidity
risk and the need to rely on external market funding. The upgrade
is also driven by Moody's expectations of higher real GDP growth
compared to pre-pandemic performance - notwithstanding risks
related to the unfolding global slowdown - supported by structural
reforms and higher investment in key sectors, including investment
in climate resilience efforts.
The stable outlook reflects Moody's expectations that past reform
efforts have strengthened Barbados' economic resilience, increasing
the sovereign's shock-absorption capacity. The continued execution
of the Barbados Economic Recovery and Transformation (BERT) plan
and the government's commitment to fiscal prudence anchor Moody's
expectations for a steady reduction in government debt. In
addition, Barbados' external position has strengthened, reflected
in an adequate foreign exchange buffer, supporting its ability to
respond to external shocks. Although Barbados has enjoyed strong
post-pandemic growth performance, its economy remains reliant on
tourism and is vulnerable to external shocks. In this event,
Moody's expects Barbados government will maintain prudent fiscal
policies in line with its medium-term fiscal framework.
Barbados' local currency bond ceiling has been raised to Ba2 from
Ba3, and the foreign currency bond ceiling raised to B1 from B2.
The three-notch gap between the sovereign rating and the local
currency ceiling reflects consistent macroeconomic policies and low
political risk, low government intervention in the economy, and
strong rule of law, balanced against limited economic
diversification and susceptibility to shocks. The two-notch gap
between the foreign-currency ceiling and the local currency ceiling
incorporates still relatively high external vulnerability,
persistent current account deficits and capital controls on foreign
exchange movement.
RATINGS RATIONALE
RATIONALE FOR THE RATINGS UPGRADE TO B2
STRONGER FISCAL POLICY FRAMEWORK AND LARGE PRIMARY SURPLUSES PUT
DEBT BURDEN ON A FIRM DOWNWARD TRAJECTORY
Barbados has demonstrated strong commitment to fiscal and
structural reforms that place government debt on a firm downward
trajectory. The fiscal deficit narrowed to 1.6% of GDP in 2024,
compared with an average of 4.6% of GDP between 2015 and 2018,
prior to the debt restructuring. The government's fiscal
consolidation efforts, including and state-owned enterprises (SOEs)
reform, pension reform and measures to improve spending efficiency
resulted in large primary surpluses of around 4% of GDP as the
economy recovered from the pandemic shock. These efforts, along
with tax reform and a strong economic recovery, drive Moody's
expectations that the debt-to-GDP ratio (excluding debt owed to the
National Insurance Scheme) will decrease to around 80% in 2025,
down from 89% in 2023. Over the medium-term, Moody's expects
Barbados debt to decline to 67% by 2030 on account sustained fiscal
surpluses and solid real GDP growth. The government's fiscal
efforts center around reducing debt burden to 60% of GDP by 2035.
Reforms to improve fiscal policy implementation and the
institutional framework will solidify gains in fiscal policy
effectiveness and ensure policy continuity in the coming years. The
government introduced a medium-term fiscal framework in 2021 to
enhance transparency of fiscal policy and ensure consistent
implementation. The newly established Fiscal Council will help
promote accountability and transparency of fiscal policy.
Barbados has also implemented significant structural reforms aimed
at improving financial and operational efficiencies within the
government and SOEs. The cumulative impact of SOE reform has been
substantial, reducing transfers to SOEs from 2.5% of GDP in
FY2018/19 to less than 1.5% in FY2023/24 with additional 0.3% of
GDP reduction planned for FY2024/25, supporting the sustainability
of these fiscal savings.
CONTINUED ACCESS TO MULTILATERAL FUNDING EXPANDS FINANCING OPTIONS
AND REDUCES GOVERNMENT LIQUIDITY RISK
Barbados' improved fiscal position, combined with access to
financing from multilateral development banks and gradually
improving domestic financing options, have significantly improved
its financing flexibility. The government has also demonstrated
improved access to market funding, securing a sustainability-linked
loan in December 2024 to repurchase a portion of its outstanding
domestic bonds, achieving fiscal savings that will be used to fund
critical infrastructure investment in a sewage treatment plant.
Domestic debt issuance is gradually increasing, with the government
restarting the issuance of Treasury bills. Over time, Moody's
expects the government to introduce longer-term bonds, further
improving its financing options.
Moody's expects the government to rely mainly on concessional
external borrowing from multilateral development banks to meet its
external financing needs. The government may also tap private
markets, as illustrated by the recent debt-for-nature swap with
support from development partners to improve debt affordability and
the maturity profile of its debt stock. Reliance on official
financing sources to cover Barbados funding needs limits its
exposure to market funding risk and contains its cost of funding.
STRUCTURAL REFORMS AND INVESTMENT IN PRIORITY SECTORS IMPROVE
GROWTH PROSPECTS AND RESILIENCE TO SHOCKS
Barbados' economy has shown resilience to shocks and GDP growth has
strengthened, supported by durable structural reforms and
investment in both tourism and non-tourism sectors. Despite the
economic effects of Hurricane Beryl, real GDP growth in 2024
remained strong at about 4% and the tourism sector displayed strong
growth dynamics, with stay-over and cruise-ship arrivals increasing
from the previous year.
While global macroeconomic uncertainty presents a downside risk to
growth and investment in 2025, Moody's expects investment in
tourism, infrastructure and energy transition in next two to three
years will continue to support solid growth rates and further
improve resilience to shocks. In addition, the government is
targeting around 5% of GDP in public investment annually in the
coming years, compared with just 1.3% of GDP in 2018, which will
also support the economy and its resilience.
Moody's expects real GDP growth rate of around 3% in 2025-2026,
higher than the economy's average growth rate of less than 1.5% in
the years preceding the debt restructuring (2015-2018). Sustaining
higher real GDP growth will address one of the key weaknesses of
Barbados' credit profile and will facilitate the government's
efforts to reduce debt burden and create more economic
opportunities for the population.
RATIONALE FOR THE STABLE OUTLOOK
The stable outlook reflects Moody's expectations that Barbados will
continue to reduce its debt burden while maintaining a prudent
fiscal stance. Even so, the government debt burden and debt
affordability will remain weaker than similarly rated peers.
Despite the challenges posed by a potential economic downturn
globally that could affect tourism activity in the country, Moody's
expects fiscal policy to remain prudent, limiting the risk of
fiscal slippage. Given Barbados' access to multilateral funding and
improving access to domestic financing, the government is also less
exposed to volatility in market funding.
ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
Barbados' ESG Credit Impact Score (CIS-3) reflects its high
exposure to environmental risks related to climate change and
social risks related to aging population, which is mitigated by
efforts to improve climate resilience, improve immigration policies
and strong governance.
Barbados' E issuer profile score (E-4) reflects the economy's
exposure to environmental risks due to the impact of
weather-related shocks, which are expected to increase in severity
due to climate change. Exposure to physical climate risk and high
water stress negatively impacts performance in the tourism sector,
a key industry for the island. Barbados' exposure is somewhat
mitigated through ongoing efforts to improve resilience to shocks,
transition to renewable energy sources, and support from
development partners.
Exposure to social risks (S-3) reflects negative demographic
trends, balanced against adequate provision of basic services, a
welfare state, and relatively strong education outcomes. Future
social pressure may arise if economic growth weakens, reducing
support from economic reforms and leading to weaker fiscal
consolidation. The government efforts to attract inward migration
to the island, particularly from Barbadians abroad would contribute
to stronger potential growth and mitigate those risks.
Relatively strong institutions and governance framework support
Barbados' credit profile, balanced against a recent history of
default, leading to a moderately negative exposure to governance
risk (G-3 issuer profile score).
GDP per capita (PPP basis, US$): 20,765 (2023) (also known as Per
Capita Income)
Real GDP growth (% change): 4.2% (2023) (also known as GDP Growth)
Inflation Rate (CPI, % change Dec/Dec): 3.4% (2023)
Gen. Gov. Financial Balance/GDP: -1.7% (2023) (also known as Fiscal
Balance)
Current Account Balance/GDP: -8.9% (2023) (also known as External
Balance)
External debt/GDP: 53.3% (2023)
Economic resiliency: ba2
Default history: At least one default event (on bonds and/or loans)
has been recorded since 1983.
On 09 April 2025, a rating committee was called to discuss the
rating of the Barbados, Government of. The main points raised
during the discussion were: The issuer's economic fundamentals,
including its economic strength, have materially increased. The
issuer's institutions and governance strength, have materially
increased. The issuer's fiscal or financial strength, including its
debt profile, has materially increased. The issuer's susceptibility
to event risks has not materially changed.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
WHAT COULD CHANGE THE RATINGS UP
Upward pressure on Barbados' rating could result from continued
progress on fiscal consolidation and structural reform efforts that
lead to a sustained decline in the government's debt burden and
improved debt affordability, beyond Moody's current expectations.
Sustained higher rates of economic growth, supported by successful
implementation of structural reforms, coupled with clear evidence
of improved competitiveness could also lead to a rating upgrade.
WHAT COULD CHANGE THE RATINGS DOWN
Negative pressure on Barbados' rating could emerge if external
shocks or lower policy effectiveness than Moody's currently assess
derail the government's fiscal consolidation and structural reform
efforts, reversing the favorable trend expected in debt burden and
reducing its financing options. Renewed pressures on
foreign-exchange reserves would introduce risks to external
accounts, which could also lead to negative rating action.
The principal methodology used in these ratings was Sovereigns
published in November 2022.
The weighting of all rating factors is described in the methodology
used in this credit rating action, if applicable.
Barbados economic strength is set at "ba3", below the initial score
of "ba1", to reflect short track-record of stronger real GDP growth
compared to average growth rates, and Barbados exposure to external
shocks that may weaken growth performance in the near-term.
Barbados institutions and governance strength is set at "ba1",
below the initial score of "baa3" on account of recent history of
default. The final score for fiscal strength is set at "b3", above
the initial score of "caa2" to account for lower exposure to
exchange rate risk due to Barbados long-standing currency peg,
despite relatively large share of foreign-currency denominated
debt. This leads to a final scorecard-indicated outcome of B1-B3,
compared to an initial scorecard-indicated outcome of Ba3-B2. The
assigned rating is within the final scorecard-indicated outcome
range.
===============
C O L O M B I A
===============
LIFEMILES LTD: S&P Withdraws 'B-' Long-Term Issuer Credit Rating
----------------------------------------------------------------
S&P Global Ratings withdrew its 'B-' long-term global scale issuer
credit and issue-level ratings on LifeMiles Ltd. at the issuer's
request. The outlook was stable at the time of withdrawal.
=================
G U A T E M A L A
=================
BANCO DE LOS TRABAJADORES: Fitch Affirms 'BB' Long-Term IDR
-----------------------------------------------------------
Fitch Ratings has affirmed Banco de los Trabajadores' (Bantrab)
Long- and Short-Term Foreign and Local Currency Issuer Default
Ratings (IDRs) at 'BB' and 'B', respectively. Fitch has also
affirmed Bantrab's Viability Rating (VR) at 'bb' and the Government
Support Rating (GSR) at 'bb-'. The Rating Outlook for the Long-Term
IDRs is Stable.
Key Rating Drivers
Sound Business Profile: Bantrab's IDRs are underpinned by its VR of
'bb', which is aligned with its implied VR. The VR is influenced by
the bank's sound and consistent business profile, characterized by
a strong presence in the consumer segment that at YE24 held a
market position of 21.0%, being the second largest in the
Guatemalan banking system. Furthermore, sustained income generation
has allowed the bank to improve its total operating income (TOI),
which reached USD457.0 million at YE24, with yoy growth of 13.7% in
local currency. This has also translated into maintaining good
capitalization levels, reflecting the bank's good loss absorption
capacity.
Deteriorated Asset Quality: Bantrab's asset quality deteriorated
during 2024, with the 90+ days impaired loans metric reaching 3.9%
at YE24 (YE23: 1.8%; YE22: 1.7%). However, according to information
from the local regulator, this metric decreased to 3.6% by February
2025, and the expectation is that it could reach levels close to 3%
by the end of 2025 given the bank's credit control initiatives. The
loan loss allowances to the 90+ days impaired loans metric was
95.2% at the end of 2024, although Fitch continues to view the
payroll deduction mechanism of its loan portfolio and low borrower
concentrations as strengths in its 'bb-' asset quality assessment.
Decreasing but Reasonable Profitability Metrics: Fitch adjusted
downward the earnings and profitability score to 'bb' with a stable
trend from 'bb+' with a negative trend. In the last two years, the
bank exhibited a negative trend in the operating profit to
risk-weighted assets (RWAs) metric, which was 2.3% at YE24 (YE23:
3.4%; YE22: 4.2%), mainly due to higher credit costs. At the same
date, the loan impairment charges to pre-impairment operating
profit indicator was 62.0% (YE23: 40.1%; YE22: 28.2%).
Fitch expects Bantrab's profitability to remain below 3% on the
ratings horizon accompanied by adequate control of administrative
expenses and consistent interest income generation, partly balanced
by credit costs, as observed in the past year.
Good Capitalization: Bantrab's capitalization and leverage score of
'bb+' remains a strength in its financial profile. At YE24, the
Fitch Core Capital (FCC) to RWAs ratio was 22.8% (YE23: 21.6%;
YE22: 23.1%), supported by a consistent reinvestment of profits and
moderate dividend payments. This indicator is the strongest among
its local peers. Fitch expects the core metric to remain at similar
levels, considering moderate credit portfolio growth and sustained
income generation for the upcoming years.
Stable Funding and Liquidity Profile: Fitch considers Bantrab's
funding and liquidity profile to be stable, although it is entirely
composed of customer deposits and is distinguished by being less
diversified compared to its local peers. In addition, the bank
exhibits relatively high concentrations in the 20 largest
depositors, representing 29.6% of total deposits at YE24 (YE23:
31.4%), which are mostly Guatemalan sovereign entities. At the same
date, the loan to deposits ratio was 86.3% (YE23: 80.3%) and Fitch
expects it to remain at adequate levels without significant changes
in the short to medium term.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- The bank's IDRs and VR would mirror any negative action on
Guatemala's sovereign ratings and Country Ceiling or a downward
revision of Fitch's assessment of the OE;
- Bantrab's VR and IDRs could be downgraded by a significant
deterioration of the entity's financial profile, as reflected in a
weakening of its asset quality and profitability, with operating
profit to RWA metrics consistently below 2%, causing a continued
reduction in its FCC to RWA ratio below 15.0%.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Bantrab's VR and IDRs have limited upside potential. In the
medium to long term, their ratings could be upgraded due to
material business profile improvements while maintaining good
financial profiles.
Systemic Importance: Bantrab's GSR of 'bb-' reflects Fitch's
opinion of its systemic importance, but lower than some local
peers. At YE24, Bantrab's market share in customer deposits was
7.7%. The support assessment also considers the depositor class in
its total base, where Guatemalan sovereign entities represent a
significant proportion. However, Fitch also considers the
uncertainty of the Guatemalan sovereign to provide support due to
the lack of recent history of government support for systemically
important banks.
For the GSR
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Bantrab's GSR is sensitive to a downgrade of the sovereign
rating, as well as its propensity to provide support.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Bantrab's GSR could be upgraded if Guatemala's sovereign rating
is upgraded.
VR ADJUSTMENTS
Fitch has assigned an Operating Environment score of 'bb-' that is
above the 'b' category implied score due to the following
adjustment reason: Sovereign Rating (positive).
Fitch has assigned a Capitalization & Leverage score of 'bb+' that
is below the 'bbb' category implied score due to the following
adjustment reason: Size of Capital Base (negative).
Summary of Financial Adjustments
Net asset value from an insurance subsidiary, prepaid expenses and
other deferred assets were reclassified as intangibles and deducted
from total equity in order to calculate Fitch Core Capital.
Public Ratings with Credit Linkage to other ratings
Bantrab's GSR is linked to Guatemala's sovereign Foreign Currency
IDR.
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
----------- ------ -----
Banco de los
Trabajadores LT IDR BB Affirmed BB
ST IDR B Affirmed B
LC LT IDR BB Affirmed BB
LC ST IDR B Affirmed B
Viability bb Affirmed bb
Government Support bb- Affirmed bb-
=======
P E R U
=======
AENZA SAA: Fitch Affirms 'BB-' Long-Term IDR, Alters Outlook to Neg
-------------------------------------------------------------------
Fitch Ratings has affirmed Aenza S.A.A.'s Long-Term Foreign and
Local Currency Issuer Default Ratings (IDRs) at 'BB-'. Fitch has
also affirmed Aenza's USD210 million senior secured notes due 2029
at 'BB-'. The Ratings Outlook has been revised to Negative from
Stable.
The Negative Outlook reflects Aenza's weak performance in 2024,
with the company reporting a material reduction in the Engineering
& Construction (E&C) backlog and increase in Fitch-based net
leverage. Aenza faces the challenge of recovering its E&C backlog
and credit metrics in 2025 to maintain its current rating category.
However, ratings are supported by the cash flow visibility from
mature infrastructure concessions like toll roads and a subway
line, expected growth in Oil& Gas (O&G) production, and strong
liquidity. Shareholders' commitment through a USD55million capital
increase last December was crucial to avoiding a downgrade.
Key Rating Drivers
Deceleration in E&C Backlog: Aenza's Negative Outlook stems from a
90% decline in its E&C backlog to USD80 million in 2024, down from
USD704 million in 2023, due to a slowdown in Peruvian mining
activities and a selective approach to contract profitability.
Fitch expects only a modest E&C backlog recovery to around USD370
million annually in 2025 and 2026, driven by expected mining
activity recovery in Peru, supported by attractive copper and gold
prices. Aenza's concessions will also require E&C services soon,
and the company faces challenges in securing new and profitable
contracts and reducing fixed costs to align with new revenue
levels.
Capital Structure Temporarily Pressured: Fitch estimates Aenza will
improve its capital structure, bringing net leverage to less than
2.0x as of 2025, from 4.4x in 2024, and recovering the headroom
within its rating category. Last year's EBITDA was affected by cost
overruns in Colombia, not expected to reappear in 2025. The agency
also forecasts Aenza's O&G unit, Unna Energia, to increase its
contribution to consolidated results by raising production to an
average of 5,500 barrels per day (bpd), from 4,200bpd in 2024.
Aenza has a call option to buy back 48.8p.p. of economic interest
in tool road concession Norvial for USD32 million, which could
postpone the deleveraging.
Medium-Sized & Diversified Profile: Aenza's rating reflects its
medium-sized scale and and geographic and service diversification,
enhancing brand recognition and reducing revenue volatility. About
50% of EBITDA comes from mature infrastructure concessions like
toll roads, a subway line, and wastewater treatment plant expiring
in the medium-to-long term. Aenza operates in complementary
segments: O&G (30% of EBITDA), real estate (12%), and E&C (8%). It
holds a strong market position in Peru, where most cash flow is
generated, with branches in Chile and Colombia. Exposure to public
clients is minimal, and Aenza plans to invest more in
infrastructure concessions and expand into Brazil.
FCF Pressured by WCN in 2025: Aenza's Fitch-based EBITDA is
projected to rise to PEN530 million in 2025 and PEN630 million in
2026, up from PEN200 million in 2024. Margins are expected to
improve from 5% in 2024 to 19% in 2025 and 22% in 2026, driven by
absence of cost overruns and increased oil production. FCF is
expected to be negative at PEN90 million in 2025 due to high
working capital needs, turning positive to PEN250 million in 2026
with working capital inflows. Fitch forecasts interest covered
ratios on Aenza's standalone bond to range from 1.0x in 2025 to
2.8x in 2028.
Peer Analysis
Aenza's rating is weaker than larger contractors like Ferrovial SE
(BBB/Stable) and Webuild S.p.A. (BB/Positive), which benefit from
their substantially larger and global scale, conservative capital
structure and moderate-to-strong liquidity. In Latin America, Aenza
rating is stronger than Compania Latinoamericana de Infraestructura
y Servicio (CLISA; rated CCC), which has just completed a consent
solicitation to amend its 2027 notes.
Key Assumptions
- Infrastructure revenue being benefited by tariff readjustments in
line with inflation and recovery of the traffic;
- Average oil production of 5,500 barrels per day (bpd) in 2025 and
6,300 in 2026, with in average oil prices of USD65 and USD60 per
barrel, respectively;
- E&C backlog of USD370 million in 2025 and USD360 million in 2026,
executed on average in 1.2 years;
- Annual real estate units delivered of 800 in 2025 and 900 in
2026;
- Fitch-based EBITDA margins of 19% in 2025 and 22% in 2026;
- Annual capex of PEN300 million in 2025 and 2026;
- No dividend payment for Aenza's shareholders.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Net adjusted leverage above 3.0x, consistently;
- Inability to recover the E&C backlog in terms of size and quality
(i.e. profitability) of the contracts;
- Weaker liquidity profile.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Stronger diversification into concessions and to other countries
in Latin America;
- Net adjusted leverage below 1.5x, sustainably.
Liquidity and Debt Structure
Fitch expects Aenza to maintain strong liquidity over the next
three years, supported by the recent capital increase, positive
cash flow generation (CFO) from concessions, and extended debt
maturity schedule. In 2024, USD188 million in readily available
cash was sufficient to cover debt maturities for the next four
years, with the next significant maturity being the USD210 million
senior secured bond due 2029.
As of 2024, Aenza's total debt was USD432 million, after
deconsolidating 81.8% of Norvial's debt as per Fitch's criteria.
The debt was comprised of USD363 million (84% of the total) bonds
in the capital market, USD52 million (12%) term loans and working
capital lines and other debts of USD17 million (4%). Half of the
group's debt is allocated at the holding level, while 41% is in
infrastructure, 7% in energy, 5% in real estate, and 1% in E&C.
About 50% of the total debt is in U.S. dollars and is naturally
hedged. Fitch excludes the debt from Norvial's dividend
monetization (also known as IASA) from the total debt calculation.
Issuer Profile
Aenza the largest engineering and infrastructure conglomerate in
Peru, with presence also in Chile and Colombia. Over the past five
years, infrastructure concessions have contributed the most for the
company-defined EBITDA, followed by energy, real estate, and
engineering & construction.
Summary of Financial Adjustments
Fitch has deconsolidated 81.8% of Norvial's results from Aenza's
consolidated figures. If Aenza manages to buyback the 48.8p.p.
economic interest in the subsidiary from BCI Peru, the agency will
deconsolidate 33% of Norvial. Fitch also excludes IASA's debt (debt
from dividend monetization). Net hedge positions on the balance
sheet are added to the total debt. Fitch also excludes assets sales
and impairments from the EBITDA. Linea 1 EBITDA incorporates the
financial expenses, as well as the capital amortization applied to
the corresponding long-term account receivable of the train
acquisition.
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
Aenza S.A.A. has an ESG Relevance Score of '4' for Group Structure
due to its complexity, related-party transactions, and other joint
operations, which has a negative impact on the credit profile, and
is relevant to the rating[s] in conjunction with other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
----------- ------ -----
Aenza S.A.A. LT IDR BB- Affirmed BB-
LC LT IDR BB- Affirmed BB-
senior secured LT BB- Affirmed BB-
*********
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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Chapman, Editors.
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