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S&P cuts Venezuela debt ratings; Santander Mexico, bank unit OK merger

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S&P cuts Venezuela debt ratings; Santander Mexico, bank unit OK merger

* S&P Global Ratings lowered its issue ratings on Venezuela's global bonds due in 2023 and 2028 to D from CC after the country failed to make coupon payments worth $183 million for the bonds within the 30-calendar-day grace period. S&P added that Venezuela's 2018 and 2020 global bonds could also be downgraded to D if the country fails to make the overdue coupon payments within the grace period.

* Shareholders of Grupo Financiero Santander Mexico SAB de CV and Banco Santander (México) SA Institución de Banca Múltiple approved the merger of both entities into one, with the bank as the surviving entity. The entities' shareholders also approved the payment of a cash dividend worth about 6.63 billion Mexican pesos.

MEXICO AND CENTRAL AMERICA

* The Honduran electoral tribunal on Dec. 10 released the results of a partial recount of 4,753 disputed ballot boxes for presidential elections, saying the results were the same as initial estimates, with incumbent President Juan Orlando Hernandez receiving 50.1% of votes and candidate Salvador Nasralla receiving 31.5% of votes, Reuters reported. Opposition parties had requested on Dec. 8 that the election be annulled over concerns of fraud.

* U.S.-based Pan-American Life Insurance Group Inc. and BlueCross BlueShield Kansas Solutions Inc. are expanding their operations in Costa Rica with the aim of boosting sales of health and life insurance premiums, El Financiero reported. The companies have launched new products and opened new offices recently in the country, where life and health insurance premiums increased 37.4% in the last four years but overall market penetration remains low.

* The profits of Costa Rican banks fell by almost 72% on average in the year ending October 2017 due largely to the impact of the central bank's change in methodology for calculating the TBP basic passive rate, El Financiero reported. Operations of credit and savings in local currency were especially hard-hit, because they are more closely linked to the TBP. The banks' average financial intermediation margin fell 27% between October 2016 and October 2017.

CARIBBEAN

* FirstCaribbean International Bank Ltd. said Christina Kramer and Rik Parkhill resigned from the board of directors, effective Dec. 8. Kramer was replaced by Blair Cowan, the senior vice president for corporate finance and commercial banking at Canadian Imperial Bank of Commerce, while Parkhill was replaced by Colette Delaney, the COO for FirstCaribbean.

BRAZIL

* Forty percent of the debt held by Brazilian companies is in dollars, up from 28% in 2014 before the Lava Jato corruption scandal erupted and dried up the domestic credit supply, Folha de S. Paulo reported, citing central bank data.

* Creditas Soluções Financeiras Ltda., which grants personal loans using vehicles and real estate as collateral, has raised 165 million reais in capital – the largest investment received by a Brazilian financial technology company so far this year, Valor Econômico reported. The company raised 60 million reais earlier this year.

ANDEAN

* Peruvian President Pedro Pablo Kuczynski said he worked as a financial adviser for several companies, including H2Olmos, an irrigation project linked to Brazilian construction firm Odebrecht, Reuters reported. The president had previously said he never worked as an adviser for Odebrecht.

* Peru's economy is expected to grow more than previously expected in 2017 and 2018, El Comercio reported, citing the central bank's latest survey of economic analysts. The poll yielded a projection for this year's GDP expansion of 2.7%, accelerating to 4.0% next year.

* Peruvian microfinance entity Caja Rural de Ahorro y Crédito Los Andes SA bought three credit portfolios totaling 68 million Peruvian soles from Caja Municipal Del Santa in November, the first time a rural savings bank has bought loans from a municipal savings bank, SEMANAeconómica reported, citing Chairman Rosanna Ramos-Velita.

* At least six fighters from two dissident offshoots of Colombia’s FARC rebel group died in a battle for control of territory in the mountainous southwest, a strategic zone for drug-trafficking, Reuters reported, citing the army.

SOUTHERN CONE

* At least three Argentine banks including Banco Mariva SA and Banco de Servicios y Transacciones SA are seeking authorization from the country's securities regulator to guarantee simple negotiable obligations issued by small and medium-sized companies, El Cronista reported.

* Argentine banks want a noncompete clause included in the sale contract of their jointly owned card business Prisma Medios de Pago SA, El Cronista reported. The government is opposed to including such a restriction on the company's new buyer because it wants banks to participate individually in the credit card business.

* Moderate factions within Uruguay's AEBU banking union are seeking to resolve a conflict over reduced opening hours at some branches of Banco de la República Oriental del Uruguay, El País reported. The dispute has exposed differences between moderate and radical wings within the union.

* Banco Central de Chile will undergo a sweeping modernization process as part of the 2018-2022 strategic plan unveiled by the bank's president, Mario Marcel, last week, La Tercera reported. Changes will include the addition of new statistics and a revision of regulations related to new technologies shaping the financial market.

* Banco de Credito e Inversiones SA said the bank aimed to increase its investor base through debt issuances as a way to raise its profile and make it easier to raise capital, Javier Moraga, the bank's head of corporate and investment banking, told Diario Financiero in an interview.

PAN LATIN AMERICA

* Paulo Caffarelli, CEO of Banco do Brasil SA, said the bank does not need to sell its stake in Argentina's Banco Patagonia SA, instead aiming to launch a follow-on offering when the local stock market is conducive, El Cronista reported, quoting Brazilian website O Povo. Banco do Brasil has a 59% stake in the Argentine bank.

* Mercosur officials met South Korean representatives in Buenos Aires on Dec. 10 and agreed to start prompt negotiations on reaching a free-trade deal, El Observador reported, citing official Argentine sources. Meanwhile, European Agriculture Commissioner Phil Hogan said Mercosur did not respond in kind to a "generous" trade proposal from the European Union, and called on them to offer to the EU market access for food products at lowered taxes, Bloomberg News reported.

* High inflation in several Latin American countries is prompting middle-class and technologically literate citizens to turn to bitcoin and cryptocurrencies for their savings, amid higher prices and currency controls, Bloomberg News reported. "Cryptos are turning into a new haven for these families," Carlos Mosquera Benatuil, who works at hedge fund Solidus Capital, reportedly said.

IN OTHER PARTS OF THE WORLD

* Asia-Pacific: China Guangfa Bank fined over lending violations; ICICI unit picks banks for IPO

* Middle East & Africa: Angolan bank BFA to launch IPO; Moody's revises DR Congo outlook

* Europe: PKO Bank Polski, Bank Pekao deny merger reports; 2 French insurers to merge

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.

Helen Popper contributed to this article.

The Daily Dose has an editorial deadline of 8:00 a.m. São Paulo time, and scans news sources published in English, Portuguese and Spanish. Some external links may require a subscription.