/raid1/www/Hosts/bankrupt/TCRLA_Public/250422.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, April 22, 2025, Vol. 26, No. 80
Headlines
A N T I G U A A N D B A R B U D A
ANTIGUA & BARBUDA: Gross Financing Needs Remain High, IMF Says
A R G E N T I N A
ARGENTINA: Milei Tells Farmers to Sell Soy Now as Peso Slides 12%
ARGENTINA: US Treasury Secretary Offers 'Full Support' to Milei
B E R M U D A
NABORS INDUSTRIES: Varde Entities Report 13.98% Stake
B R A Z I L
BRADSEG PARTICIPACOES: Fitch Affirms 'BB+' IDR, Outlook Negative
JBS SA: Sets Tentative Dates for US Listing Vote, Trading in NY
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Notes 3 Causes of Egg Price Increase
J A M A I C A
JAMAICA: Local Manufacturers Urged to Brace for Tariff Impact
M E X I C O
ASARCO LLC: Court Tosses Hammond City, et al. Environmental Suit
- - - - -
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A N T I G U A A N D B A R B U D A
=====================================
ANTIGUA & BARBUDA: Gross Financing Needs Remain High, IMF Says
--------------------------------------------------------------
The International Monetary Fund issued a release stating that
Antigua and Barbuda's economy continues its expansion, driven by
strong tourism activity and one-off events boosting growth in 2024.
Inflation also picked up in 2024, departing from regional trends,
following higher costs for specific items, notably communication,
as well as increases in indirect taxes.
With nominal GDP recovering, the public debt-to-GDP ratio has eased
from 101 percent in 2020 to an estimated 67 percent in 2024.
However, domestic and external arrears are significant, albeit with
domestic arrears uncertain in size, and gross financing needs
remain high. The financial sector remains stable and liquid.
=================
A R G E N T I N A
=================
ARGENTINA: Milei Tells Farmers to Sell Soy Now as Peso Slides 12%
-----------------------------------------------------------------
Jonathan Gilbert at Bloomberg News reports that President Javier
Milei encouraged farmers on Argentina's Pampas to seize the moment
and sell their soybeans now after he eased currency controls, which
weakened the peso by about 12 percent on official markets.
Farmers are starting to harvest their soy crop, worth billions of
dollars in export revenues that Milei desperately needs at the
Central Bank, according to Bloomberg News. But, so far, they have
traded it at a crawl: forward-selling is the slowest in decade, the
Rosario Board of Trade said, Bloomberg News notes.
In addition to letting the peso float - though only within a set
range - Milei has also trimmed export tariffs for harvest season
only, Bloomberg News discloses. For soy meal, Argentina's biggest
single export, the rate is at 24.5 percent through June 30 instead
of 31 percent, Bloomberg News notes.
"Tell the farmers that if they need to sell they should do it now
because the export tariffs are going back up," Milei told El
Observador radio station, Bloomberg News relays.
It's unclear if all growers will heed Milei's warning since three
factors influence their decision to sell soybeans: global prices,
the exchange rate and export tariffs, Bloomberg News says.
Prices of soy meal are trading near five-year lows in Chicago amid
Donald Trump's trade war, Bloomberg News notes. And despite the
plunge in the currency on official markets, to 1,200 pesos per
dollar, that's only mildly better than a special rate that farmers
had been receiving of 1,130, Bloomberg News adds.
About Argentina
Argentina is a country located mostly in the southern half of South
America. Its capital is Buenos Aires. Javier Milei is the current
president of Argentina after winning the November 19, 2023 general
election. He succeeded Alberto Angel Fernandez in the position.
Argentina has the third largest economy in Latin America. The
country's economy is an upper middle-income economy for fiscal year
2019, according to the World Bank. Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.
In March 2022, the International Monetary Fund (IMF) approved a new
30-month arrangement under an Extended Fund Facility for Argentina
in the amount of SDR 31.914 billion (equivalent to US$44 billion,
or 1000 percent of quota). The IMF Executive Board's decision
allowed the authorities an immediate disbursement of an equivalent
of US$9.65 billion in March 2022.
Argentina's IMF-supported program seeks to improve public finances
and start to reduce persistent high inflation through a
multi-pronged strategy, involving a gradual elimination of monetary
financing of the fiscal deficit and enhancements in the monetary
policy framework.
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: US Treasury Secretary Offers 'Full Support' to Milei
---------------------------------------------------------------
Buenos Aires Times reports that President Javier Milei welcomed US
Treasury Scott Bessent to the Casa Rosada on April 14 for a
high-profile visit that underlines deepening ties between the two
nations.
In a statement issued by the US Treasury, Bessent highlighted
Washington's "full support" for Milei's "bold economic reforms" and
expressed his desire for deeper ties, according to Buenos Aires
Times.
"The secretary conveyed that Argentina can accomplish a bright
future for its people under economic policies that provide
stability and growth for the country's workers and dynamic
private-sector firms," read the statement obtained by the news
agency.
The meeting was also attended by Lydia Barraza, charge d'affaires
at the US Embassy in Argentina, Deputy Treasury Secretary Michael
Kaplan and the Treasury Chief-of-Staff Dan Katz, the report notes.
Representing Argentina were Milei, Economy Minister Luis Caputo,
Deputy Economy Minister Jose Luis Daza; Finance Secretary Pablo
Quirno and Central Bank Governor Santiago Bausili, the report
relays.
Bessent, 63, landed at Aeroparque Jorge Newbery in Buenos Aires,
ahead of a morning meeting with Caputo, the report discloses.
Talks with representatives from the private sector were also
scheduled, ahead of the meeting with Milei, the report says.
According to Argentina's government, talks were due to focus on
economic and financial matters, support for structural reforms and
access to international credit markets, the report notes.
The visit is a gesture of support from the US government, designed
to highlight deepening relations between Buenos Aires and
Washington, the report relays.
It comes at a key time for Argentina, which confirmed a new
US$20-billion programme with the International Monetary Fund and a
host of additional funding from multilateral institutions,
including the World Bank, the report says.
President Milei's government, in tandem, announced sweeping changes
to the so-called 'cepo,' the domestic word used to refer to
currency controls and restrictions that limit access to foreign
currency, the report discloses.
In tandem, US President Donald Trump has sparked global economic
unrest by announcing a plan to slap tariffs on nearly every nation
across the globe. Hardest hit by Trump's "reciprocal tariffs" is
China, igniting a trade war between the two superpowers, the report
relays.
Beijing renewed a currency swap between its Central Bank and
Argentina's worth US$5 billion, the report notes.
A delegation of Chinese business leaders - from sectors including
banking, energy and aviation - visited Buenos Aires to discuss
trade and economic cooperation, the report says.
Analysts saw Bessent's visit as a way to underline Washington's
support and persuade Argentina to turn away from Beijing, the
report relays.
That motive was underlined by the US Treasury statement, which said
Bessent had emphasised the Trump administration's "commitment to
solidifying its position as Argentina's partner of choice," the
report notes.
Talks over the potential removal of selected Argentine products
entering the US were also on the agenda. Buenos Aires wants tariffs
lifted on a basket of around 50 products including aluminium,
steel, wine, lemons, honey and other foods, the report discloses.
Bessent praised Argentina for "moving quickly to negotiate with the
United States on a package of reciprocal trade measures" and said
he would co-chair talks over a trade agreement, the report says.
Washington also sees potential for US firms to deepen their
interest in the Vaca Muerta shale formation, lithium business and
privatizations of state companies, the report relays.
"Thanks to the bold leadership of President Javier Milei, the
relationship between the United States and Argentina is stronger
than ever. I look forward to our positive discussions about
Argentina's economy, and to exploring the ways our nations can
further deepen our vital economic relationship," said Bessent in a
statement, the report notes.
Government sources have hailed the "historic" nature of the visit,
especially given the trade war launched by tariffs imposed by US
President Donald Trump, the report discloses.
"Argentina and the United States have decided to be strategic
allies, and that is a benefit for both societies," one source told
the Noticias Argentinas news agency, 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.
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
=============
B E R M U D A
=============
NABORS INDUSTRIES: Varde Entities Report 13.98% Stake
-----------------------------------------------------
Varde Investment Partners (Offshore) Master, L.P., Varde Credit
Partners Master, L.P., Varde Investment Partners, L.P., The Varde
Skyway Master Fund, L.P., Varde Partners, Inc., and Bradley Bauer
disclosed in a Schedule 13G filed with the U.S. Securities and
Exchange Commission that as of March 11, 2025, they beneficially
owned an aggregate of 2,013,928 common shares of Nabors Industries
Ltd., representing 13.98% of the 14,403,654 common shares
outstanding as of that date.
Varde Partners may be reached through:
Varde Partners, Inc.
350 N Fifth Street
Suite 800, Minneapolis, MN 55401
Tel: 952-374-6998
About Nabors
Bermuda-based Nabors Industries Ltd. (NYSE: NBR) owns and operates
land-based drilling rig fleets and provides offshore platform rigs
in the United States and several international markets. Nabors also
provides directional drilling services, tubular services,
performance software, and innovative technologies for its own rig
fleet and those of third parties.
Nabors Industries reported a net loss of $11.8 million for the year
ended December 31, 2023, a net loss of $307.22 million in 2022, a
net loss $543.69 million in 2021, a net loss of $762.85 million in
2020, a net loss of $680.51 million in 2019, a net loss of $612.73
million in 2018, and a net loss of $540.63 million in 2017. As of
March 31, 2024, the Company had $4.64 billion in total assets,
$3.37 billion in total liabilities, and $522.82 million in total
stockholders' equity.
* * *
In August 2024, Fitch Ratings has assigned a 'CCC'/'RR6' rating
to Nabors Industries, Inc.'s proposed senior guaranteed notes (PGN)
due 2031. Nabors plans to utilize the proceeds from these notes to
refinance the 7.25% PGN due 2026 held at Nabors Industries, Ltd.
(Bermuda) and for general corporate purposes. The proposed notes
will rank pari passu with Bermuda's existing PGN due 2026 and PGN
due 2028.
Nabors' existing 'B-' Long-Term Company Default Rating and Stable
Outlook reflect the softening U.S. drilling environment since the
beginning of 2023, alongside a steadily growing international
segment. Fitch's credit profile assessment is supported by the
expectation that free cash flow (FCF) will be directed toward gross
debt reduction, as well as the company's proactive management of
its maturity profile and its adequate liquidity.
However, these positive factors are partially offset by the
company's large note maturities starting in 2027, which Fitch
anticipates will likely require partial refinancing through capital
markets. Additionally, potential declines in rig activity and day
rates could negatively impact cash flow and restrict FCF and
near-term gross debt reduction. The company's complex capital
structure, combined with the current high-interest rate
environment, could also limit refinancing options and increase
interest expenses.
In March 2024, S&P Global Ratings revised its outlook to stable
from positive and affirmed its 'B-' Company credit rating on Nabors
Industries Ltd. At the same time, S&P affirmed its 'B-' issue-level
rating on the company's senior priority guaranteed notes, with a
recovery rating of '3,' and a 'CCC' issue-level rating on the
company's priority guaranteed notes, with a recovery rating of '6.'
The stable outlook reflects S&P's expectation for the company's
operating performance, industry fundamentals, near-term debt
maturity profile, and credit metrics to remain appropriate for the
'B-' Company credit rating. The outlook revision reflects S&P's
expectation of reduced free cash flow generation and lower than
anticipated debt reduction.
In July 2024, S&P Global Ratings assigned its 'CCC' issue-level
rating and '6' recovery rating to Nabors Industries Ltd.'s proposed
$550 million senior guaranteed notes due 2031. The company's
subsidiary, Nabors Industries Inc., will issue the notes. The '6'
recovery rating indicates S&P's expectation of negligible (0%-10%;
rounded estimate: 0%) recovery of principal by creditors in the
event of a payment default.
===========
B R A Z I L
===========
BRADSEG PARTICIPACOES: Fitch Affirms 'BB+' IDR, Outlook Negative
----------------------------------------------------------------
Fitch Ratings has affirmed the Local Currency Long-Term Issuer
Default Rating (IDR) of Bradseg Participacoes S.A. (Bradseg) at
'BB+'. The Rating Outlook is Negative.
Fitch has also affirmed the National Long-Term rating of Bradseg at
'AAA(bra)' with a Stable Outlook. The rating reflects the company's
strategic importance to its parent Banco Bradesco (Bradesco;
BB+/Negative), of which it is a core subsidiary.
Key Rating Drivers
Support-Driven Ratings: Bradseg's IDR is aligned with the ratings
of its parent, Bradesco, which is one notch above Brazil's
sovereign ratings (BB/Stable). Bradseg's Negative Outlook mirrors
that of Bradesco, reflecting Bradesco's credit quality indicators,
which remain higher than those of its local peers despite recent
improvements. The bank has effectively implemented a strategy to
enhance its product mix, reduced its provision expenses throughout
2024, and improved its margins. The bank continues to take strong
measures to improve its ratios, and Fitch believes these indicators
should return to better levels in 2025 while profitability
continues to improve.
In applying Fitch's insurance criteria regarding the impact of
ownership on Bradseg's ratings, Fitch considered how the ratings
would theoretically be affected under its bank support criteria.
Fitch's insurance criteria are principles-based regarding
ownership, and the referenced bank criteria was used to help inform
Fitch's judgment in applying those principles.
Core Subsidiary: Fitch views Bradseg as a 'core subsidiary' of
Bradesco, and therefore its ratings are equalized with those of its
parent. This is based on the strategic importance of Bradseg's
insurance operations, which complement the main retail banking
activities, common branding and high contribution of Bradseg to
group profits. The insurance holding company has consistently
contributed to the bank's consolidated earnings historically.
Robust Market Position: The rating also reflects the company's
leading position, consistent performance and diversified revenue
base. Bradseg had a leading position and overall market share of
approximately 22.8% as of September 2024. The rating also considers
the company's strong distribution capacity, underpinned by the wide
branch network of its parent, good performance and comfortable
capitalization ratios.
Strong Capitalization, but Limited Due to Dividends: Bradseg's
profit reinvestment policy and dividend distribution policy also
provide for a mandatory minimum of 30% of net profit as dividend
payment to shareholders. Bradesco Group seeks to maintain capital
optimization, and, in recent periods, dividend distribution has
been high, close to 100%, which has brought greater pressure to
capitalization and leverage ratios in the last cycle. However,
Bradseg's capitalization ratios are solid, and, despite the
deterioration of the factors, leverage ratios remained at
comfortable levels. Any need for additional support would be
manageable for Bradesco, which remains comfortably capitalized.
Strong Performance Ratios: Bradseg's profitability remained strong
in 2024, with an ROAE of 23% (24% in 2023) and premium growth of
14% to BRL121.1 billion. Operating income rose by 5% and the net
income by 1%. Net profit reached BRL9 billion; the results were
driven by the increase in revenue and the improvement in loss
ratios. The company has a solid and consistent record of technical
results through cycles, reflecting its strong underwriting skills,
control systems and pricing practices.
Financial income contributes significantly to earnings, which are
generally very sensitive to interest rate movements as a result.
Amid the country's increasing interest rates, Bradseg has
maintained solid financial performance proportional to the net
premiums earned, which were 11.3% in 2024 and 12.3% during the past
three years.
Sovereign Bonds Influence Investment Risk: Bradseg follows a
conservative asset/liability management practice that is the
responsibility of the parent company, and its portfolio composition
remains stable compared with previous years. BradSeg's investment
portfolio is concentrated in government securities, which made up
84% of the total exposure in 2024.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Bradseg's ratings are linked to that of Banco Bradesco.
Therefore, any negative change in the bank's ratings would affect
Bradseg's ratings, as would a change in its willingness to provide
support, which Fitch considers highly unlikely;
- Bradseg's National Ratings are sensitive to changes in
creditworthiness relative to other Brazilian issuers.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Bradseg's IDR has limited upside potential because it is
equalized to that of Banco Bradesco, the ratings of which are
constrained by its operating environment. Over the medium term, the
ratings could benefit from stabilization and eventual improvement
of Fitch's assessment of the operating environment for Brazilian
banks;
- For the national scale rating, this sensitivity is not applicable
given that the National Long-Term rating of Bradseg was affirmed at
'AAA(bra)'.
Public Ratings with Credit Linkage to other ratings
Bradseg's rating is directly linked to the IDR of Banco Bradesco,
the company's ultimate parent.
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
----------- ------ -----
Bradseg
Participacoes S.A. LC LT IDR BB+ Affirmed BB+
Natl LT AAA(bra) Affirmed AAA(bra)
JBS SA: Sets Tentative Dates for US Listing Vote, Trading in NY
---------------------------------------------------------------
Ana Mano and Luciana Novaes Magalhaes at Reuters report that JBS SA
appears to have moved a step closer to obtaining the necessary
approvals for a primary listing of shares on the New York Stock
Exchange, according to a regulatory document filed with the U.S.
market regulator.
The U.S. listing, which has been in the works for years, would
provide access to a broader pool of investors and possibly aid JBS,
which is now primarily listed in Brazil, in raising its valuation
closer to its industry peers, according to Reuters.
In the filing, JBS projects that its board of directors could
convene today, April 22, to call a general meeting of JBS
shareholders, who are required to decide on whether they approve of
the company's "dual listing" plan, Reuters discloses.
The general shareholders meeting could be held around May 23 and
the first day of trading of JBS shares in New York could be around
June 12, according to the filing that the company sent to the
Securities and Exchange Commission (SEC), the report notes.
Igor Guedes, an equity analyst at Genial Investimentos, said the
tentative dates seem to be "a good sign" that suggest that JBS may
be optimistic about the timing of its U.S. listing, the report
says. He noted, however, that the schedule isn't entirely under
the company's control, the report relays.
A source familiar with JBS' U.S. listing procedures said the SEC
had requested the company to estimate possible dates to turn in the
F-4 filing used to register securities by foreign private issuers,
noting that they are currently tentative and subject to change, the
report notes.
"The JBS S.A. General Meeting tentatively scheduled for May 23,
2025 will not be called if the registration statement on Form F-4
of which this prospectus is a part is not declared effective," the
company said in the regulatory filing, noting that the meat-packer
still needs the approval from the U.S. regulator to move forward
with its plan, the report says.
With the dual listing, JBS stocks would trade both in the U.S. and
in Brazil, where it will issue Brazilian depositary receipts, the
report relays.
Last month, the second largest shareholder of JBS, the equity arm
of Brazil's development bank BNDESPar, said it would abstain from
voting at the upcoming shareholders meeting, the report discloses.
The announcement boosted JBS' share price because there was
uncertainty about whether BNDESPar would endorse JBS' U.S. listing
strategy, the report adds.
About JBS SA
JBS S.A. is a Brazilian company that is a large meat processing
enterprise, producing factory processed beef, chicken, salmon,
pork, and also selling by-products from the processing of these
meats. It is headquartered in Sao Paulo. It was founded in 1953
in Anapolis, Goias.
As reported in the Troubled Company Reporter-Latin America in
August 2021, S&P Global Ratings revised the global scale outlook
on JBS S.A. (JBS) and its fully owned subsidiary JBS USA Lux S.A.
(JBS USA) to positive from stable and affirmed its 'BB+' issuer
credit rating. The recovery expectations remain unchanged, and S&P
affirmed the 'BB+' ratings on the senior unsecured notes and the
'BBB' ratings on the secured term loans.
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Notes 3 Causes of Egg Price Increase
--------------------------------------------------------
Dominican Today reports that eggs have not stopped rising since the
beginning of the year. In fact, they were the most inflationary
food category between January 1 and March 31 (+8.6%) due to, among
other factors, a national context of increased consumption and the
international impact of avian flu in several European countries and
the US, according to Dominican Today.
The CPI published April 11 confirms this escalation, which is also
noticeable in the annual comparison (+11.4%) and, of course, in the
monthly comparison because this product has become 7.2% more
expensive in the last 30 days, the report notes.
The restructuring of the sector and the increase in
consumption
According to Dominican Today, the truth is that the Spanish
industry, and that of the rest of the European Union, is facing
numerous challenges that, all together, contribute to this increase
in prices.
On the one hand, numerous farms have already initiated the
conversion process to eliminate cage systems and replace them with
alternative ones that require more space for fewer laying hens, the
report says. This will reduce egg production and, in addition,
remove cage eggs from the market, which are the cheapest, the
report notes.
On the other hand, national consumption is rising, at least in
households, because families bought 3% more product last year than
the previous year, which, in absolute values, was about 13 million
kilos more, that is, about 245 million more M-size eggs, the report
discloses.
In addition, although Spain is so far free of outbreaks of avian
flu on farms, the impact of this disease is very relevant in the
United States and several European countries that are seeing their
egg production fall significantly, the report relays.
At the European level, this places Spain as a privileged country
when it comes to sending eggs to these destinations, the report
discloses. With regard to the United States, it is not ruled out
that the national sector will also begin to send eggs to mitigate,
in part, the lack of supply in the North American country, the
report notes.
The Minister of Agriculture, Fisheries and Food, Luis Planas, ruled
out, in statements to EFE, that there could soon be a situation of
lack of eggs, as is happening in the United States due to the
impact of avian influenza, and believes that the reason for the
price rise is multifactorial, the report says.
Therefore, a series of coincidences are taking place in the market
that, as a whole, are pushing the price of eggs upwards, as
reflected in the CPI for March published April 11, 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.
S&P Global Ratings affirmed its 'BB' long-term foreign
and local currency sovereign credit ratings on the
Dominican Republic on December 3, 2024. The outlook remains
stable. S&P also affirmed its 'B' short-term sovereign
credit ratings and kept the transfer and convertibility
(T&C) assessment unchanged at 'BBB-'.
Fitch, on November 26, 2024, affirmed the Dominican Republic's
Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-'.
The Rating Outlook is Positive.
Moody's credit rating for Dominican Republic was last set at Ba3
in August 2023 with the outlook changed to positive.
=============
J A M A I C A
=============
JAMAICA: Local Manufacturers Urged to Brace for Tariff Impact
-------------------------------------------------------------
Jamaica Observer reports that local businesses are being advised to
prepare for higher prices and seek out opportunities as global
tariff shifts begin to reshape trade dynamics.
Speaking during the Adventist Laymen's Services and Industries
(ASI) Economic Outlook Forum, Finance Minister Fayval Williams
warned that Jamaica's open economy leaves it particularly exposed
to external shocks, especially from recent tariff changes imposed
by the United States, according to Jamaica Observer.
"As a first order, there will be an increase in prices," she said,
notes the report. "As a second order, businesses and shipping lines
will begin to reassess their business to see if it makes sense for
them to continue to go this route versus that route."
Given the broad application of the tariffs imposed by the Donald
Trump Administration in the United States, Williams added that
local exporters may find limited alternatives to bypass the
increased duties, which is expected to push up import costs, the
report notes. As a result, consumers will face higher prices
without corresponding wage increases, forcing them to make tougher
decisions about their spending priorities, the report relays.
"It may take some time, maybe six months or a year, for people to
regain their competitive position locally and internationally," she
added, Jamaica Observer relates.
Against this backdrop, the Bank of Jamaica (BOJ) has paused its
plan to lower interest rates, the report relays. Williams
explained that with inflation risks still present, the central bank
is closely monitoring price movements. If inflation rises beyond
its target range, interest rate hikes could be used to manage the
situation. However, Jamaica Manufacturers and Exporters
Association (JMEA) President Sydney Thwaites argued that now is the
time for the Government to consider lowering interest rates to
support local firms seeking to invest in production and reposition
themselves in global markets, the report says.
Speaking on behalf of the JMEA and other private sector players, he
said reduced interest rates would allow firms to access working
capital and reinvest in their operations, something that is
becoming more difficult with high borrowing costs, the report
relays.
He added that easing monetary policy could support business
expansion at a time when other firms around the world may be
holding back on investment, the report says. This, he said, would
help local companies strengthen their competitive edge, the report
notes.
Thwaites acknowledged Jamaica's historical struggles with economic
growth but noted that the current macroeconomic environment of low
debt, declining unemployment, and reduced crime has created a more
favourable climate for business confidence and investment, the
report discloses.
He also pointed to Jamaica's potential to benefit from nearshoring,
particularly as global companies seek new supply chain solutions in
response to shifting trade dynamics, the report relays.
"I think we have an opportunity to be responsibly aggressive and
take advantage of the crisis," said Thwaites, the report notes.
He argued that Jamaica is well-positioned to benefit from
redirected global trade due to its strong port infrastructure and
reliable shipping services, which he described as among the best in
the region, the report relays.
"We are only competing with American-made and American raw material
source goods in America, that's our competition. So while I have no
doubts that we're going to see some impacts and we will see some
challenges, let's be ready to take advantage of some of the
opportunities," he stressed, says the report.
Despite concerns over tariffs, he maintained that average rate of
10 per cent imposed on Jamaica by the US remains competitive
globally and does not place the country at a disadvantage, the
report discloses.
Building on this point, MSME Alliance President Antoinette Hamilton
encouraged local businesses to view the current environment as a
chance to strengthen their competitive edge, especially where
international competitors are facing higher trade barriers, the
report relays. She urged companies to explore programs like
Jampro's Export Max, which is currently accepting applications from
a new cohort of businesses seeking to expand production and access
new export markets, the report says.
Hamilton stressed that preparing MSMEs for export requires more
than market access, it also demands capacity building and access to
financing, the report notes. She called for more grant funding
initiatives that support not just planning but also implementation,
to help small businesses execute growth strategies more
effectively, the report relays.
"The equity financing takes some time to implement, and right now
we can't wait, we have to act now," she added.
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.
On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a
positive rating outlook. 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 2024, S&P affirmed 'BB-/B' longterm foreign and local
currency sovereign credit ratings on Jamaica and revised outlook to
positive.
===========
M E X I C O
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ASARCO LLC: Court Tosses Hammond City, et al. Environmental Suit
----------------------------------------------------------------
Judge Philip P. Simon of the United States District Court for the
Northern District of Indiana granted ASARCO Master, Inc.'s motion
to dismiss the case captioned as CITY OF HAMMOND, INDIANA, and CITY
OF WHITING, INDIANA, Plaintiffs, v. ASARCO MASTER, INC., Defendant,
Cause No. 2:24-CV-96-PPS-JEM (N.D. Ind.).
Hammond and Whiting allege past and future environmental response
costs related to a release of hazardous substances originating from
a smelting facility which used to operate in Hammond decades ago.
From June 1937 to February 1983, Federated Metals Corporation
operated a thirty-six-acre non-ferrous smelting, refining,
recovery, and recycling facility in Hammond. Federated Metals is a
wholly owned subsidiary of American Smelting and Refining Company
("ASARCO") which purchased Federal Metals in 1932. The operations
of the Hammond site over the course of some forty years resulted in
the disposal of waste byproducts and the release of hazardous
substances into the air around Hammond and Whiting. More
specifically, the facility's operations allegedly caused a
widespread release of lead into the soil in the Robertsdale
neighborhood in Hammond and Whiting.
Federated Metals closed the facility in February 1983. After
shutting down its Hammond operations, Federated Metals and its
parent company, ASARCO, faced a number of environmental claims that
placed a significant strain on the company's financial resources.
In 1992, Federated Metals entered a consent decree with the
Environmental Protection Authority, in which it disclosed that it
generated hazardous waste at the facility in the form of toxic dust
and waste both of which were byproducts of lead smelting
activities. In 2005, ASARCO Master, Inc. merged with Federated
Metals and, as a result, assumed Federated Metals' liabilities,
including any responsibility for contamination caused at the
Hammond facility.
Based on Federated Metals' historical polluting activities in the
area, the Cities of Hammond and Whiting, bring claims against
ASARCO Master under Indiana's Environmental Legal Action Statute
("ELA"), and federal environmental laws -- specifically, the
Comprehensive Environmental Response, Compensation and Liability
Act of 1980 ("CERCLA") and the Resource Conservation and Recovery
Act ("RCRA").
Noting that soil samples from 2016 and 2017 have confirmed lead
contamination in their communities, Plaintiffs seek to hold ASARCO
liable for any costs the communities have and will incur as a
result of the contamination, in addition to attorneys' fees and
costs incurred in bringing this action. Plaintiffs also seek
injunctive relief directing ASARCO to remove all solid and
hazardous waste and otherwise remediate the pollution in Hammond
and Whiting in accordance with a plan submitted to and approved by
this Court.
ASARCO has filed a motion to dismiss the action, arguing that its
landmark bankruptcy settlement resolved the cities' environmental
claims.
The complaint, however, asserts that ASARCO Master's bankruptcy did
not discharge the claims at issue in this action. Plaintiffs argue
that their RCRA, CERCLA, and Indiana ELA causes of action arose
years after ASARCO received the discharge from the bankruptcy court
in December of 2009. However, as admitted to in the complaint, all
of Federated Metals' contamination took place before ASARCO entered
bankruptcy in 2005, the Court finds. Moreover, there are numerous
facts in the cities' complaint illustrating that they knew about
the release of these hazardous materials and could tie the release
to ASARCO prior to ASARCO's bankruptcy. According to the Court,
it's plain that the cities could have raised an environmental claim
prior to ASARCO's bankruptcy bar date but they didn't. Plaintiff's
CERCLA claim should therefore be considered discharged by the court
order confirming the bankruptcy, the Court concludes. Plaintiff's
Indiana ELA claim should be considered discharged for the same
reason.
The Court finds the cities failed to raise their CERCLA and Indiana
ELA claims prior to the confirmation of ASARCO's bankruptcy and are
barred from pursing those claims by the order confirming the
bankruptcy. They are also precluded from bringing their RCRA claim
by the bankruptcy consent decree and related court orders, the
Court holds.
The Court dismisses Count I (Indiana ELA Claim), Count II (CERCLA
Claim), and Count III of Plaintiffs' Complaint (RCRA Claim) with
prejudice.
A copy of the Court's decision is available at
https://urlcurt.com/u?l=Ko7GqO from PacerMonitor.com.
About Asarco LLC
Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/--
is an integrated copper mining, smelting and refining company.
Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent.
ASARCO LLC filed for Chapter 11 protection (Bankr. S.D. Tex. Case
No. 05-21207) on Aug. 9, 2005. Attorneys at Baker Botts L.L.P., and
Jordan, Hyden, Womble & Culbreth, P.C. represented the Debtor in
its restructuring efforts.
On Dec. 9, 2009, Asarco Incorporated and Americas Mining
Corporation's Seventh Amended Plan of Reorganization for the
Debtors became effective and the ASARCO Asbestos Personal Injury
Settlement Trust was created and funded with nearly $1 billion in
assets, including more than $650 million in cash plus a $280
million secured note from Reorganized ASARCO. The Plan, which was
confirmed both by the bankruptcy and district courts, reintegrated
ASARCO LLC back to parent Grupo Mexico concluding the four-year
Chapter 11 proceeding.
*********
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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Copyright 2025. All rights reserved. ISSN 1529-2746.
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