/raid1/www/Hosts/bankrupt/TCRLA_Public/250402.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
Wednesday, April 2, 2025, Vol. 26, No. 66
Headlines
A R G E N T I N A
AGUAS Y SANEAMIENTOS: Bond Rally Faces Key Privatization Test
ARGENTINA: Economy Grew More Than Expected in January
ARGENTINA: Prosecutor Probes Milei Assets in $LIBRA Cryptogate Case
B R A Z I L
BANCO DAYCOVAL: Fitch Affirms 'BB' Long-Term IDR, Outlook Stable
BANCO FIBRA: Fitch Affirms 'B+' Long-Term IDR, Outlook Negative
C A Y M A N I S L A N D S
FALCON GROUP: Moody's Withdraws 'B2' Corporate Family Rating
C O S T A R I C A
COSTA RICA: HR Ratifies BB Rating
M E X I C O
SACSA FINANCIERA: HR Ratifies BB+ Rating
SIGMATRON INTERNATIONAL: Debt Issues Raise Going Concern Doubt
P U E R T O R I C O
CONCORDE METRO: Case Summary & 14 Unsecured Creditors
T R I N I D A D A N D T O B A G O
TRINIDAD & TOBAGO: Central Bank Holds Repo Rate Steady
- - - - -
=================
A R G E N T I N A
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AGUAS Y SANEAMIENTOS: Bond Rally Faces Key Privatization Test
-------------------------------------------------------------
Buenos Aires Times reports that debt holders of state-owned water
and sewage company Aguas y Saneamientos Argentinos (AySA) are
reaping a windfall after President Javier Milei scrapped some price
controls for public utility services, sparking a sharp recovery for
a business that's struggled under heavy regulation.
AySA's dollar-denominated bonds due in 2026 have jumped more than
20 cents since Milei took office in December 2023 and now trade
close to par, according to data compiled by Bloomberg, the report
notes. The bonds have handed investors a total return of around 56
percent, compared with an average return of some 11 percent for
emerging-market corporate peers over the same period, according to
Buenos Aires Times.
A libertarian who wants to shrink the government and deregulate to
flip the switch on Argentina's crisis-prone economy, Milei has
pushed reforms that would ultimately allow the privatisation of
several state-controlled firms, the report relays. AySA's
restructuring efforts, coupled with its newfound ability to charge
consumers higher fees - the average household's water bill in
Buenos Aires soared 344 percent since Milei took office - have
resulted in fully funded operations for the first time since 2007,
the report discloses.
"The transparency of the company, and its cost efficiency has
changed quite dramatically since Milei came to office," said
Fernando Pueyrredon, a corporate credit strategist at BancTrust &
Co, the report says.
Milei's belt-tightening campaign sparked a bout of optimism among
investors and fuelled a surge in bonds - both sovereign and
corporate - from the Latin American nation, the report notes. His
plans include a push to privatise companies including AySA, which
has added to the gains, the report relays.
The utility, which has already tapped the World Bank Group's
International Finance Corporation to advise them on the potential
sale, is in the midst of a massive restructuring, the report
relays. After swapping out its leadership in April 2024, AySA
reduced headcount by 20 percent, sold off part of a vehicle fleet
and reduced the hours worked by security, cleaning and maintenance
staff, the report discloses. Earnings before some items were US$59
million in the third quarter of 2024 - compared with a loss of
US$42 million during the same period a year earlier, the report
says.
Following sharp price increases, the average household's water bill
in the capital of Buenos Aires soared to US$27.76 at the official
exchange rate, according to research institute Instituto
Interdisciplinario de Economia Politica, the report notes. That's
given the company enough leeway to cover 100 percent of operating
costs with fees it charges its consumers, up from 52 percent last
year, according to a press release, the report says.
Two Paths
AySA could choose a public listing or a sale of the government's
stake in an auction, according to a company official, who asked not
to be named because the discussions are private, the report relays.
Argentine officials could sell 51 percent of its shares to a
single operator and another 39 percent to equity investors via an
initial public offering, the official said, adding that executives
have yet to decide which path they want to pursue, the report
notes.
AySA has to win approval from the country's securities regulator
and ultimately, from Milei and his team. The federal government
owns 90 percent of the company, while employees hold the remaining
10 percent, the report discloses.
A spokesperson pointed to the company's efforts to balance its
costs and said the move now is to advance the privatisation, adding
that the state "must remove itself from all activities that can be
better managed by the private sector," the report relays.
To be sure, Milei's strategy to sell state enterprises so far has
struggled to take off, the report relates. Air carrier Aerolíneas
Argentinas still faces a congressional vote after authorities
declared the airline subject to privatisation, the report notes. A
judge also blocked Milei's plan to take the country's largest bank
private, and the sale of oil-driller YPF SA is on hold, too, the
report discloses.
Future gains for AySA's bonds now depend on how the company
advances its privatisation efforts, BancTrust's Pueyrredon said,
the report says.
"Under Milei's government, the company will be efficient, but I
don't know if the next government will be Milei," he said, notes
the report. "For it to be a longstanding company, it needs to be
privatised."
Agua y Saneamientos Argentinos (AySA) is a state-owned company of
Argentina dedicated to supplying the public with running water and
sewer services. Operating in Latin America and the Caribbean, AYSA
serves over 11.2 million customers.
ARGENTINA: Economy Grew More Than Expected in January
-----------------------------------------------------
Manuela Tobias at Bloomberg News reports that Argentina's economy
grew more than expected in January, solidifying the country's
bounceback after two straight quarters of growth under President
Javier Milei's watch.
Economic activity rose 0.6 percent from December, more than the 0.2
percent median estimate of economists surveyed by Bloomberg. From a
year ago, the gross domestic product proxy grew 6.5 percent,
compared with the median estimate of five percent, according to
government data published Thursday, March 27, according to
Bloomberg News.
Retail sales led year-on-year growth, followed by financial
activity and manufacturing, while fishing, hotels and restaurants
fell compared with the same time period, Bloomberg News notes.
South America's second-largest economy has been showing consistent
signs of momentum after a deep slump exacerbated by Milei's
austerity policies in the first half of 2024, Bloomberg News
relays. Between October and December, exports, government and
consumer spending and capital expenditures led more-than-expected
quarter-on-quarter growth, Bloomberg News discloses.
Annual inflation has cooled to 66.9 percent from 211 percent when
Milei first took office, Bloomberg News relays. Argentina is close
to clinching a new deal with the International Monetary Fund that
Economy Minister Luis Caputo said would total US$20 billion,
Bloomberg News discloses. The loan, which is still being formally
negotiated, would help to beef up the Central Bank's depleted
coffers to allow Argentina to lift capital controls, the foremost
impediment to the country's sustained growth, Bloomberg News says.
The IMF estimates Argentina will grow five percent in 2025,
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.
In June 2024, the IMF Board completed an eighth review of the
Extended Arrangement under the Extended Fund Facility for
Argentina. The IMF Board's decision enabled a disbursement of
around US$800 million to support the authorities' efforts to
entrench the disinflation process, rebuild fiscal and external
buffers, and underpin the recovery.
On 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: Prosecutor Probes Milei Assets in $LIBRA Cryptogate Case
-------------------------------------------------------------------
Buenos Aires Times reports that Federal prosecutor Eduardo Taiano
is gathering information regarding the assets of President Javier
Milei, his sister Karina Milei and three businessmen under
investigation in the '$LIBRA' cryptocurrency case.
Taiano is in charge of the accusations presented in connection with
the launch and promotion of the $LIBRA token and requires
specialised assistance, according to Buenos Aires Times. To that
end, he has enlisted the assistance of the SIFRAI (Secretaria para
la Investigacion Financiera y el Recupero de Activos Ilicitos)
office to "gather the information to analyse the evolution of the
assets of Javier Gerardo Milei, Karina Elizabeth Milei, Mauricio
Gaspar Novelli, Manuel Terrones Godoy and Sergio Daniel Morales
from 2023 to the present," the report notes.
Veteran federal judge Maria Servini de Cubria has delegated the
investigation to Taiano but her jurisdiction is also being
challenged by San Isidro federal judge Sandra Arroyo Salgado, the
report relays.
Since Milei posted the $LIBRA launch on February 14 from his X
account at the Olivos presidential residence, Arroyo Salgado says
it lies within judicial turf, the report discloses. The San Isidro
magistrate is actively seeking evidence to trace the President's
operations that evening and beyond but her decision is being
appealed by San Isidro federal prosecutor Federico Iuspa, who
considers that the case should stay within the Retiro federal
courthouse, the report says.
Arroyo Salgado has also widened the investigation to the following
February 17 based on testimony from one of the plaintiffs, Martin
Romeo, who says that at 1.56pm on that day Milei had retweeted a
post linked to the cryptocurrency originating from Dario Epstein,
the report notes. The magistrate has asked the X social network's
authorities to corroborate that information, the report relays.
The San Isidro judge has also asked for special assistance from a
tech crimes unit "to trace the movements of the wallets of
cryptocurrencies linked to the creation of the $LIBRA from February
14 up to the present in order to establish the destination of the
funds in possession of their creators."
"The movements of the funds of the main accounts behind the
creation of the $LIBRA and of the wallets considered to be insiders
and presumably counting on privileged information should be
monitored in real time in order to establish if there are any links
between them and also to conclusively identify the owners," she
ruled, the report adds.
About Argentina
Argentina is a country located mostly in the southern half of South
America. Its capital is Buenos Aires. Javier Milei is the current
president of Argentina after winning the November 19, 2023 general
election. He succeeded Alberto Angel Fernandez in the position.
Argentina has the third largest economy in Latin America. The
country's economy is an upper middle-income economy for fiscal year
2019, according to the World Bank. Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.
In March 2022, the International Monetary Fund (IMF) approved a new
30-month arrangement under an Extended Fund Facility for Argentina
in the amount of SDR 31.914 billion (equivalent to US$44 billion,
or 1000 percent of quota). The IMF Executive Board's decision
allowed the authorities an immediate disbursement of an equivalent
of US$9.65 billion in March 2022.
Argentina's IMF-supported program seeks to improve public finances
and start to reduce persistent high inflation through a
multi-pronged strategy, involving a gradual elimination of monetary
financing of the fiscal deficit and enhancements in the monetary
policy framework.
In June 2024, the IMF Board completed an eighth review of the
Extended Arrangement under the Extended Fund Facility for
Argentina. The IMF Board's decision enabled a disbursement of
around US$800 million to support the authorities' efforts to
entrench the disinflation process, rebuild fiscal and external
buffers, and underpin the recovery.
On 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 R A Z I L
===========
BANCO DAYCOVAL: Fitch Affirms 'BB' Long-Term IDR, Outlook Stable
----------------------------------------------------------------
Fitch Ratings has affirmed Banco Daycoval S.A.'s (Daycoval)
Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs)
at 'BB'. The Rating Outlook on the IDRs is Stable. Fitch has also
affirmed the bank's National Long-Term Rating at 'AA+(bra)'/Outlook
Stable.
Key Rating Drivers
Established Segmented Franchise, Strong Earnings: Daycoval's IDRs
and National Ratings are driven by its intrinsic strength, as
reflected in its 'bb' VR, which is in line with the bank's implied
VR. Daycoval's ratings reflect its well-established second-tier
banking franchise in Brazil, strong market position in the
corporate and small and medium-sized enterprise (SME) business, and
moderate risk profile that underpins good operating profitability
and well-managed asset quality through the cycles. The ratings also
reflect capitalization with adequate buffers over regulatory
minimums, prudent liquidity management, and a stable funding
profile.
Sustainable Business Performance: Daycoval's revenue profile is
mainly focused on net interest income, which has remained stable
throughout the economic cycles. Fitch's 'bb' business profile
assessment reflects Daycoval's total operating income (TOI)
averaged USD921 million for 2021-2024, nearing USD1.0 billion in
2024. The bank's well-established and specialized banking franchise
in the Corporate/SMEs segment supports its TOI, providing strong
income generation capacity. Daycoval's presence in the secured
payroll deduction loans, auto loans and FX businesses, helps
maintain business volumes through the cycles.
Moderate Risk Profile: Daycoval's risk profile considers its more
diversified loan book compared to midsized banks in Brazil , with
credit risk representing 86% of risk-weighted assets (RWA) in 2024,
and its securities portfolio, which is primarily invested in
Brazilian government debt.
Despite the concentration of Daycoval's loan book in corporates and
SMEs (72% of total expanded loans), Fitch considers the bank's
extensive experience and proven risk pricing expertise in this
segment, which have led to lower credit costs and write-offs
relative to peers. In addition, the bank's exposure to payroll
deductible loans (24% of total expanded loans), which have less
cyclical delinquency rates, has also supported credit costs.
Well-Managed Asset Quality Risks: Daycoval's impaired loan ratio
(D-H risk loans) was 5.3% in 2024 versus 5.2% in 2023, and in line
with the four-year average of 4.6%. The bank was well-positioned
even in more adverse scenarios than Fitch had previously expected
from structurally higher rates and inflation. Fitch expects
Daycoval to maintain the core ratio close to 4.5%-5.0% in 2025 and
2026, driven by write-offs and a moderation in the inflow of
impaired loans. Loan loss provisions for impaired loans are around
70%, consistent with the bank's domestic peers' average.
Improving Profitability: Daycoval's operating profit/risk-weighted
assets (RWAs) ratio improved to 3.7% in 2024 from 3.0% in 2003, in
line with the bank's four-year average of 3.8%. This ratio is above
its peers' average and underpins its earnings and profitability
assessment of the bank at 'bb'. Fitch expects Daycoval's
profitability to remain sound through 2025-2026, as asset-quality
risks are expected to gradually ease compared to the previous year.
There should also be some moderation in operating expenses after
the company's strong business expansion in the previous years.
Adequate Capitalization: Fitch believes Daycoval is
well-capitalized relative to its risk profile. Daycoval's capital
buffers were adequate through 2023 and 2024, reflecting the good
earnings generation and lower RWA inflation, with a common equity
Tier 1 (CET1) ratio of 10.9% at 2024. The bank's total regulatory
capital ratio increased to 12.5% given its capital enhancement
through the issuance of Tier 1 hybrid instruments from the
shareholder. The bank's ratios well exceed the Central Bank
regulatory minimum total capital requirement and are in line with
Basel III rules.
Stable Funding and Liquidity: Daycoval's non-deposit funding to
non-equity funding is around 60%, comparing favourably to other
midsized banks in the country. This is reflected in the bank's
four-year average core loans-to-deposits ratio of 209% in 2024,
given a lower share of customer deposits relative to peers. Fitch
assigns a funding and liquidity score of 'bb', which is above the
implied score of the 'b and below' category and reflects Daycoval's
ample liquidity, comfortable asset-liability management, and a
large proportion of long-term funding given its good access to debt
markets.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Fitch's downward revision of the score of the operating
environment in Brazil, for instance, due to much slower economic
growth than its forecasts, which could result in pressures on the
bank's overall financial performance;
- Asset-quality deterioration, resulting in the operating profits
to RWA ratio being consistently below 1.25% of RWAs, and the CET1
ratio falling below 11%.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- A positive rating action on Daycoval's IDRs and VR is limited at
this point, considering Brazil's sovereign ratings and operating
environment, and the bank's moderate scale and less-diversified
business model than its higher-rated peers;
- In the medium to long term, Daycoval's National Ratings are
sensitive to the strengthening of its business profile by a
material increase in its TOI level closer to USD3.0 billion, while
maintaining its good financial performance.
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 Daycoval S.A. LT IDR BB Affirmed BB
ST IDR B Affirmed B
LC LT IDR BB Affirmed BB
LC ST IDR B Affirmed B
Natl LT AA+(bra) Affirmed AA+(bra)
Natl ST F1+(bra) Affirmed F1+(bra)
Viability bb Affirmed bb
Government Support ns Affirmed ns
BANCO FIBRA: Fitch Affirms 'B+' Long-Term IDR, Outlook Negative
---------------------------------------------------------------
Fitch Ratings has affirmed Banco Fibra S.A.'s (Fibra) Long-and
Short-Term Local and Foreign Currency Issuer Default Ratings (IDRs)
at 'B+' and 'B', respectively. Fitch has also affirmed Fibra's
Viability Rating (VR) at 'b+' and its National Long-Term and
Short-Term rating at 'BBB+(bra)' and 'F2(bra)', respectively. The
Rating Outlook on the IDRs and National ratings is Negative.
Key Rating Drivers
Business, Risk Profile Drive Ratings: Fibra's IDRs and National
Ratings are driven by its intrinsic strength, as reflected in its
'b+' Viability Rating (VR). Fibra's main rating weakness are their
limited core profitability and internal capital generation. The
ratings also reflect Fibra's low-risk lending profile, resulting in
adequate asset quality, and adequate funding and liquidity
profile.
Negative Outlook: Fitch maintains a Negative Outlook, considering
the risk of prolonged weak profitability that could restrict
internal capital generation and financial flexibility. Despite
efforts to reposition its business model and enhance operational
efficiency, Fitch believes the bank's stabilization of its
financial performance remains as a challenge. Progress in cost
reduction and liquidity management is noted positively, but these
improvements have not yet resulted in consistent operating profit
generation.
Subdued Core Profitability: Fibra's core profitability has been
subdued on a four-year average view, due to unstable portfolio
growth, margin pressures, and rising personal expenses, despite
signs of an inflection in these fundamentals in late-2024. By YE
2024 the bank reported BRL57 million operating losses, and BRL46.6
million of net income, as non-core gains have helped avoid net
losses, but the four-year average of the bank's operating profit to
risk-weighted asset ratio is -0.5%.
Fitch anticipates positive core earnings in 2025, but they are
likely to be close to breakeven, with more stable recurring
revenues expected only by 2026. Investments in operational
infrastructure and the strategic relationship with sister company
Companhia Siderurgica Nacional (CSN; BB/Stable) should enhance
business volumes and provide a strategic advantage.
DTAs Constrains Capitalization: Fibra's common equity Tier 1 (CET1)
ratio of 8.7% at December 2024 was stable from 2023, and, in
Fitch's view, is modest compared to peers, with little room to
maneuver. The high level of Deferred Tax Assets (DTAs - BRL1.1
billion) constrains the regulatory core ratio, limiting
capitalization amid weak profit generation. However, Fitch has
revised the Outlook on this score to Stable from Negative, as
Fibra's low-risk lending profile will help to mitigate downside
risks that could exert pressure on capital buffers and threaten
minimum requirements.
Low-Risk Lending Profile: Fibra's asset quality indicators compare
well with the peer average, supported by a low-risk lending book
that is predominantly focused on corporates, SMEs (small and
midsize enterprises) and agribusiness. As of December 2024, the
impaired D-H loans to total gross loans ratio remained low relative
to the domestic average at 1.8% (four-year average of 1.5%). The
bank has adequate impaired loans coverage, and Fitch believes it is
in an adequate position to absorb credit deterioration given the
well-collateralized and dispersed nature of its lending
receivables.
Adequate Funding and Liquidity: Fibra largely funds its loan book
through wholesale deposits. However, a high share of non-lending
assets and access to retail funding though partner brokerages
support comfortable liquidity, adequate funding stability, and
explains its low gross loan-to-customer deposits ratio of 61%. As
of December 2024, liquid assets totaled BRL1.1billion.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
The ratings would be downgraded if the implementation of the
turnaround strategy fails to materialize into incremental core
revenue and profitability in the short to medium term, increasing
the likelihood of further losses extending into 2025. In addition,
ratings could be downgraded if losses and other setbacks threaten
Fibra's capacity to meet minimum capital requirements, without
timely solution prospects.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
The Outlook could be revised to Stable if the bank demonstrated
improved medium-term prospects of becoming profitable on a
sustained basis, maintaining satisfactory asset quality ratios.
This, combined with the achievement of the bank's cost and revenue
guidance, would demonstrate execution discipline and provide rating
stability.
Higher capital buffers over regulatory minimums that provide
capital relief to support volume growth would also be positive for
the ratings.
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 Fibra S.A. LT IDR B+ Affirmed B+
ST IDR B Affirmed B
LC LT IDR B+ Affirmed B+
LC ST IDR B Affirmed B
Natl LT BBB+(bra) Affirmed BBB+(bra)
Natl ST F2(bra) Affirmed F2(bra)
Viability b+ Affirmed b+
Government Support ns Affirmed ns
===========================
C A Y M A N I S L A N D S
===========================
FALCON GROUP: Moody's Withdraws 'B2' Corporate Family Rating
------------------------------------------------------------
Moody's Ratings has withdrawn all ratings for Falcon Group Holdings
(Cayman) Limited (Falcon), including the B2 corporate family rating
and the B2 long-term issuer ratings. At the time of the withdrawal
the outlook was stable.
RATINGS RATIONALE
Moody's have decided to withdraw the rating(s) following a review
of the issuer's request to withdraw its rating(s).
Falcon provides inventory and supply chain management solutions to
multinational corporate clients across different regions. The
company largely acts as an intermediary, providing inventory
solutions to both suppliers and buyers.
===================
C O S T A R I C A
===================
COSTA RICA: HR Ratifies BB Rating
---------------------------------
HR Ratings de Mexico, S.A. de C.V., a nationally recognized
statistical ratings organization, ratified the BB(G) rating of
Republica de Costa Rica, on March 25.
HR says in a BB-level rating the issuer or issue with this rating
"provides inadequate safety for timely payment of debt obligations"
and "maintains high credit risk".
Costa Rica's issuer rating was originally upgraded to BB back in
2023. It carried a BB- rating in 2022.
===========
M E X I C O
===========
SACSA FINANCIERA: HR Ratifies BB+ Rating
----------------------------------------
HR Ratings de Mexico, S.A. de C.V., a nationally recognized
statistical ratings organization, ratified the BB+ rating of Costa
Capital LP d/b/a Sacsa Financiera S.A. de C.V., SOFOM E.N.R., a
financial institution based in Mexico, on March 21. The outlook
is stable.
HR says in a BB+ rating, the issuer or issue with this rating
"provides inadequate safety for timely payment of debt obligations"
and "maintains high credit risk".
Costa initially received a BB rating back in 2023. HR upgraded it
to BB+ last year.
SIGMATRON INTERNATIONAL: Debt Issues Raise Going Concern Doubt
--------------------------------------------------------------
Sigmatron International, Inc. disclosed in a Form 10-Q Report filed
with the U.S. Securities and Exchange Commission for the quarterly
period ended January 31, 2025, that there is substantial doubt
about its ability to continue as a going concern.
Net income decreased $9,761,585, to a net loss of $8,872,218 for
the nine month period ended January 31, 2025, compared to net
income of $889,367 for the same period in the prior fiscal year.
According to the Company, over the past two years the Company has
been in violation of financial covenants in its credit agreements,
the Company's secured lenders agreed to amend the credit
agreements. The Company must satisfy the terms of those amended
agreements, including the requirement to pursue and close a
Replacement Transaction to pay the Obligations (as defined in the
Credit Agreements) in full no later than September 30, 2025 unless
the Company meets certain debt ratios for the twelve month period
ending on August 31, 2025. In addition, there is a risk of
additional covenant failures based on current revenue levels.
The ability of the Company to continue as a going concern is
dependent on the Company having adequate capital to fund its
operating plan and performance. Management's plans to continue as a
going concern may include raising additional capital through sales
of equity securities and borrowing, focusing the Company on its
most profitable elements, and exploring alternative funding sources
on an as needed basis. However, management cannot provide any
assurances that the Company will be successful in accomplishing its
plans. The supply chain challenges, inflationary pressures, tariff,
and the broader business climate in its industry have negatively
impacted the Company's business operations and is expected to
continue to do so and, these impacts may include reduced access to
capital. Additionally, the impact of potential tariffs may have a
negative on the Company's business operations. The ability of the
Company to continue as a going concern may be dependent upon its
ability to successfully secure other sources of financing and
sustain profitable operations. The Company is obligated by its
lenders to execute a Replacement Transaction by September 2025.
Due to this requirement, there is substantial doubt about the
ability of the Company to continue as a going concern for one year
from the issuance of the accompanying consolidated financial
statements. While the Company expects to refinance under
commercially reasonable terms, there can be no guarantee of
success. The accompanying consolidated financial statements do not
include any adjustments that might be necessary if the Company is
unable to continue as a going concern.
The Company has reduced its debt by selling assets, reducing
workforce, and reducing its working capital requirements. The
Company is exploring additional activities designed to further
reduce its debt load and improve operating performance. During
December 2024, the Company executed a sale/leaseback transaction
with respect to its Elk Grove Village, Illinois headquarters, using
the proceeds to further reduce its debt position.
The Company's primary sources of liquidity have traditionally been
comprised of cash and cash equivalents as well as availability
under credit agreements in place at the time. The Company is
obligated to either meet certain debt ratios by August 31, 2025 or
find a Replacement Transaction no later than September 30, 2025.
While the Company expects to have sufficient financial resources
available on acceptable terms, there can be no assurance this will
occur, particularly in light of increasingly conservative financial
markets. The Company continues to explore other strategic
initiatives to further reduce its debt to enable it to comply with
increasingly stringent financial covenants. Delays or a failure to
effectively reduce debt, including due to circumstances outside of
our control, could have an adverse effect on our financial position
and results of operations.
In the event customers delay orders or future payments are not made
timely, economic conditions remain impacted for longer than the
Company expects or deteriorate further, the tariff issues persist
or worsen, the Company experiences continued supply chain
disruptions on certain raw materials, the Company desires to expand
its operations, its business grows more rapidly than expected, the
Company fails to effectively reduce debt, any new public health
crises arise, or geopolitical risks continue or worsen, the
Company's liquidity position could be severely impacted and
additional financing resources may be necessary. There is no
assurance that the Company will be able to obtain equity or debt
financing at acceptable terms, or at all, in the future. There is
no assurance that the Company will be able to retain or renew its
credit agreements in the future, or that any retention or renewal
will be on the same terms as currently exist.
A full-text copy of the Company's Form 10-Q is available at:
https://tinyurl.com/45b5m3be
About SigmaTron International
SigmaTron International Inc. is a full-service electronics
manufacturing services provider with a network of manufacturing
facilities in the United States, Mexico, China and Vietnam that
enables them to provide a wide range of nearshore and offshore
manufacturing options.
As of January 31, 2025, the Company had $193 million in total
assets, $135.4 million in total liabilities, and total
stockholders' equity of $57.6 million.
=====================
P U E R T O R I C O
=====================
CONCORDE METRO: Case Summary & 14 Unsecured Creditors
-----------------------------------------------------
Debtor: Concorde Metro Seguros LLC
1600 S Federal Hwy
Suite 570
Pompano Beach, FL 33062
Business Description: Concorde Metro Seguros LLC is a single-asset
real estate debtor, as defined in 11 U.S.C.
Section 101(51B). The Company's primary
business involves managing the Metro Medical
Center in Bayamon, Puerto Rico, which serves
as its principal asset.
Chapter 11 Petition Date: March 24, 2025
Court: United States Bankruptcy Court
District of Puerto Rico
Case No.: 25-01269
Debtor's Counsel: Javier Vilarino, Esq.
VILARINO AND ASSOCIATES LLC
PO Box 9022515
San Juan, PR 00902
Tel: (787) 565-9894
E-mail: jvilarino@vilarinolaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Joseph C. Lebas, Jr., as administrator.
A full-text copy of the petition, which includes a list of the
Debtor's 14 largest unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/CUF5UNA/Concorde_Metro_Seguros_LLC__prbke-25-01269__0001.0.pdf?mcid=tGE4TAMA
=====================================
T R I N I D A D A N D T O B A G O
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TRINIDAD & TOBAGO: Central Bank Holds Repo Rate Steady
------------------------------------------------------
Trinidad and Tobago Express reports that the Central Bank says it
will maintain the repo rate at 3.5 percent despite global economic
uncertainties and domestic challenges. This decision follows an
assessment of both international and domestic economic conditions
by the Bank's Monetary Policy Committee (MPC), according to
Trinidad and Tobago Express.
The repo rate, or repurchase rate, is the interest rate at which
commercial banks borrow money from the central bank, often used as
a tool to manage the money supply and maintain financial stability,
the report notes.
In a statement, the Central Bank said that the international
economic environment remains uncertain primarily due to potential
tariff wars, which could significantly impact global trade and
inflation, the report relays.
The International Monetary Fund's (IMF) latest forecast projects
global growth at 3.3% for 2025, with inflation expected to decrease
to 4.2% from 5.7% in 2024, the report recalls. However, these
projections may be overly optimistic, given ongoing trade tensions,
the report says.
As it relates to monetary policy trends, while several central
banks globally have pursued easing measures, others, like the US
Federal Reserve, have held their rates steady to prevent inflation
resurgence.
The European Central Bank recently cut its policy rate by 25 basis
points to 2.5%, while the US Fed maintained its target range
between 4.25% and 4.50%, the report notes. Locally, interest rates
on 3-month treasuries have remained stable, maintaining a TT-US
differential of -201 basis points as of February 2025, the report
relays.
Regarding local economic condition, the Central Bank said inflation
remains low, with headline inflation at 0.7% in February 2025, up
from 0.5% in December 2024, the report recalls. Core inflation
fell slightly, while food prices increased by 3.9%, the report
says. The energy sector continues to face challenges, with
declines in crude oil (-1.9%) and natural gas (-0.8%) production in
2024, the report recalls. However, the non-energy sector shows
resilience, with positive growth in manufacturing and finance, the
report relays.
Data from the Central Statistical Office (CSO) showed that domestic
price pressures are well contained, the report notes. Headline
inflation, as measured by the Consumer Price Index, rose to 0.7 per
cent (year-on-year) in February 2025 from 0.5 per cent in December
2024, the report says. Core inflation (which excludes food prices)
fell by 0.1 per cent, while food prices rose by 3.9 per cent in
February, the report relays. Both domestic and international
factors contributed to the upward drift in food prices faced by
local consumers. Other available price indicators, such as at the
wholesale level and for building materials also demonstrated
sluggishness, increasing by 0.2 per cent and 0.6 per cent,
respectively in the twelve months to September 2024, the report
notes. The recent 7 per cent increase in the price of cement is
nonetheless expected to have an important knock on effect on
construction costs, the report discloses.
Liquidity in the domestic financial system remains high, with
commercial banks' excess reserves averaging $6.6 billion in
February 2025, the report notes. Private sector credit continues
to grow, particularly in consumer loans, which increased by 11.6%
year-on-year in January 2025, the report says.
On the growth front, the decline in oil and natural gas output,
based on maturing fields, continued to pose a challenge to overall
production of energy-based exports over the short run, the report
relays. Data from the Ministry of Energy and Energy Industries
(MEEI) pointed to a year-on-year reduction in the production of
crude oil (-1.9 per cent) and natural gas (-0.8 per cent) during
the third quarter of 2024, the report notes. However,
petrochemical output improved with ammonia and methanol production
rising by 16.1 per cent and 1.1 per cent, respectively, the report
relays. Meanwhile in the non-energy sector, the latest available
GDP data from the CSO for the first half of 2024 highlighted
positive performances in the manufacturing and finance sectors, but
these were somewhat offset by declines in the construction and
accommodation services sectors, the report discloses. More recent
indicators, including on distribution, finance, new car sales and
visitor arrivals for Carnival 2025, point to relative buoyancy in
non-energy activities, the report relays.
Taking into account the mixed global and domestic economic signals,
the MPC decided to keep the repo rate unchanged at 3.5 percent, the
report notes. The Central Bank said it will continue monitoring
the situation, given the importance of maintaining stability while
being cautious of potential risks related to increased bank
lending, the report adds.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Latin America is a daily newsletter
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Chapman, Editors.
Copyright 2025. All rights reserved. ISSN 1529-2746.
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