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250502.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, May 2, 2025, Vol. 26, No. 88 Headlines A R G E N T I N A AEROLINEAS ARGENTINAS: Won't Be Subsidized for 1st Time Since 2008 YPF SA: In Talks With Five Major Banks for Argentina Pipeline Loan B E R M U D A DIGICEL HOLDINGS: Moody's Assigns 'B3' CFR, Outlook Positive B R A Z I L GOL LINHAS: Extends Exit Funding Deadline Due to Trump Tariffs GOL LINHAS: Plan Exclusivity Period Extended to July 25 GOL LINHAS: Secures New Financing to Support Chapter 11 Exit C O L O M B I A COLOMBIA: IMF Assesses Continued Qualification for Credit Line P U E R T O R I C O KYTTO ENTERPRISE: Hires Vilarino & Associates LLC as Counsel T R I N I D A D A N D T O B A G O CARIBBEAN AIRLINES: Pilot Labor Agreement Negotiations Progressing U R U G U A Y SANCOR SEGUROS: Fitch Affirms 'BB-' LT IFS Rating, Outlook Stable X X X X X X X X [] IDB, OPEC Fund Boost Co-Financing in Latin America, Caribbean - - - - - ================= A R G E N T I N A ================= AEROLINEAS ARGENTINAS: Won't Be Subsidized for 1st Time Since 2008 ------------------------------------------------------------------ Kevin Simauchi at Bloomberg News reports that Argentina's flagship airline won't need state subsidies for the first time since the government nationalized the company almost two decades ago, according to a press release on Wednesday, April 30. After looking at its budget needs for 2025, state-owned Aerolineas Argentinas SA told Transportation Secretary Franco Mogetta in a separate letter dated April 28, that it will "not require funds from the country's treasury," Bloomberg relays. According to Bloomberg, the news represents a welcome development for President Javier Milei and his team as they continue to push ahead with an aggressive campaign to revamp an airline industry plagued by labor strikes and high costs. Aerolineas, as the company is known locally, has been in the government's sights for a while, the report says. It's reported an average operating loss of $400 million annually since 2008 while receiving $8 billion in subsidies to cover operating deficits over the same span, company officials said in the statement. Since Milei declared the airline was subject to privatization in September, executives have staged a drastic turnaround, reporting an operating surplus of $20.2 million for 2024, Bloomberg states. The airline tied those results to a 15% reduction across its entire workforce, elimination of "unproductive routes" as well as the closing of several physical locations across the country. Headquartered in the Torre Bouchard, located in San Nicolas, Buenos Aires, Aerolineas Argentinas, formerly Aerolineas Argentinas S.A., is Argentina's largest domestic and international airline. It is the national airline and carries around 70% of Argentina's domestic traffic and 40% of international flights from Ministro Pistarini International Airport, which is located in Ezeiza, Buenos Aires. YPF SA: In Talks With Five Major Banks for Argentina Pipeline Loan ------------------------------------------------------------------ Kevin Simauchi and Jonathan Gilbert at Bloomberg News report that a consortium of oil drillers developing a key pipeline in Argentina is tapping five major banks to finance a $1.7 billion loan for the project, according to people familiar with the matter. Led by Argentina's state-run driller YPF SA, the group is in talks with Citigroup Inc., Deutsche Bank AG, Itau Unibanco Holding SA, JP Morgan Chase & Co and Banco Santander SA to finance part of the pipeline's development, according to people familiar with the matter, Bloomberg relays. YPF, which has a 27-percent stake in the pipeline, previously mentioned that the consortium is seeking a US$1.7-billion syndicated loan without revealing the names of the lenders. According to Bloomberg, the company's chief executive said in an interview last month that talks for the loan are close to being completed. If and when that happens, it would be a significant feat for private project financing in Argentina, where such big deals have been few and far between in recent years because of the country's economic crises and capital controls. Bloomberg relates that the money would fund Vaca Muerta Sur which will feature a pipeline running from Argentina's shale heartland across northern Patagonia to the Atlantic coast at Punta Colorada, where a port will be built to load tankers. The total cost is roughly US$3 billion and the drillers will put down cash to help fund the rest. Beyond YPF, the other drillers include Chevron Corp., Shell Plc, Vista Energy, Pluspetrol SA, Pan American Energy Group, which is 50 percent BP Plc, and Pampa Energia SA, Bloomberg discloses. According to Bloomberg, the project has been accepted into President Javier Milei's relatively new programme of tax, currency and customs loopholes designed to lure investments known locally as RIGI. It is currently in the early stages of gathering pipes, being provided by Tenaris SA, close to the shale fields. Companies see Vaca Muerta Sur as crucial to Argentina's shale ambitions that could see it export one million barrels of crude a day by the end of the decade, helping transform the country into a global net energy provider, Bloomberg states. If construction happens on time, the pipeline is expected to transport 180,000 barrels a day in late 2026 and may eventually have capacity for 700,000 barrels. About YPF SA YPF SA, an energy company, engages in the oil and gas upstream and downstream activities in Argentina. Its upstream operations include the exploration, exploitation, and production of crude oil, and natural gas. The company's downstream operations include petrochemical production and crude oil refining; transportation and distribution of refined and petrochemical products; commercialization of crude oil, petrochemical products, and specialties. As reported in the Troubled Company Reporter-Latin America in January 2025, Fitch Ratings affirmed YPF S.A.'s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'CCC'. Additionally, Fitch has affirmed YPF's outstanding senior unsecured notes at 'CCC' with Recovery Rating of 'RR4'. The company's Standalone Credit Profile (SCP) remains 'b', and its ratings are aligned with Fitch's "Government Related Entities Criteria," reflecting government ownership and strategic importance. ============= B E R M U D A ============= DIGICEL HOLDINGS: Moody's Assigns 'B3' CFR, Outlook Positive ------------------------------------------------------------ Moody's Ratings has assigned a B3 to Digicel Holdings (Bermuda) Limited's corporate family rating ("Digicel"), Digicel International Finance Limited (DIFL)'s $1,245 million senior secured notes due May 2027 and $1,013 million senior secured 1st lien term loan B due May 2027. Moody's also assigned a Caa1 rating to Digicel Midco Ltd's $419 million senior unsecured notes due November 2028. The outlook for DIFL changed to positive from stable. The outlook for Digicel and Digicel Midco Ltd has been assigned positive. At the same time, Moody's withdrew the B3 CFR and B3 existing senior secured 1st lien term loan B rating on Digicel International Finance Limited. The rating action reflects increased visibility on the company's operating and financial strategy and improved governance practices including financial policies and experienced management and board members. The positive outlook incorporates Moody's expectations that the company will successfully refinance the debt maturing in 2027 at least twelve months in advance and that Digicel will be able to sustain its EBITDA margin above 40% supported by the company's solid competitive position in the markets in which it operates. RATINGS RATIONALE The restructuring process executed in 2024, significantly changed Digicel's liquidity profile, providing the company with financial flexibility. In addition, the new shareholders, management and board have implemented a series of measures to strengthen Digicel's financial profile including cost saving initiatives, a medium-term net leverage target of 3.25x, compliance processes and an experienced management team and board, which now includes six independent members out of nine. Nonetheless, rating progression would require the refinancing of the company's $2.3 billion in debt maturing in May 2027 to reduce the company's dependence on external financing, achieving a more comfortable debt maturity profile. While Digicel has support from its main shareholders, who are also lenders, there is nothing closed yet. In addition, the unpredictable US trade policy led to a deterioration in global credit conditions including financial markets, making debt refinancing more challenging. Digicel's B3 CFR takes into consideration the company's sound market position in several of its largest markets, which supports adequate credit metrics for the rating category, including Moody's adjusted leverage of 3.9x and positive FCF generation of $139 million for the last twelve months ended December 2024. The CFR is also supported by the new management and board with extensive experience in the industry. The B3 CFR also incorporates Digicel's presence in emerging markets with a history of instability and exposure to adverse political and weather events, and currency depreciation against the US dollar, namely Haiti, which accounts for 17% of the company's revenues. Longer term, the company's exposure to low rated countries could also put pressure on Digicel's rating. The Caa1 rating on the senior unsecured notes, one notch below the CFR, reflects their position in the waterfall, after the senior secured debt and higher probability of potential losses in case of a debt restructuring. The rating action reflects governance considerations as key drivers of the rating action including visibility over the company's strategy, financial policies and implicit support from shareholders, which is reflected now in the company's Board Structure and Policies which has changed to 3 from 4, with the overall exposure to governance risks (Issuer Profile Score or "IPS") at 4 (G-4) and Digicel's Credit Impact Score at 4 (CIS-4). The ESG Credit Impact Score is CIS-4, since ESG considerations are a constraint for the rating. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Upon a successful refinancing of Digicel's $2.3 billion in debt maturing in May 2027 at least twelve months in advance, Moody's will reevaluate an upgrade of Digicel's ratings. In addition, the company should maintain a steady revenue growth and cash flow generation, achieving an adequate liquidity profile. Quantitatively, the ratings could be upgraded if the company maintains consolidated adj. debt/EBITDA below 4.5x and EBITDA-capex/interest expense above 1.5x on a sustained basis. The ratings could be downgraded if Digicel's liquidity worsens due to the company's inability to extend its maturities at least twelve months in advance, or if the debt refinancing results in losses for creditors. Quantitatively, negative pressure could arise if Digicel's adj. debt/EBITDA increases above 5x without clear prospects of improvement or EBITDA-capex/interest expense declines towards 1.0x. The principal methodology used in these ratings was Telecommunications Service Providers published in November 2023. Incorporated in Hamilton, Bermuda, Digicel is the largest provider of wireless telecommunication services in the Caribbean. Following the sale of Digicel Pacific Limited in 2022 and the exit from Panama in 2023, the company operates in 25 markets in the Caribbean. Digicel provides a range of business solutions, mobile, cable TV and broadband, and other related products and services. The company generated revenue of $1.82 billion for the last twelve months ended 2024. =========== B R A Z I L =========== GOL LINHAS: Extends Exit Funding Deadline Due to Trump Tariffs -------------------------------------------------------------- Ney Hayashi of Bloomberg News reports that Gol Linhas has extended the deadline for binding proposals on its $1.9 billion exit financing to May 15, 2025, moving it from the original date of April 19, according to a regulatory filing. The extension, agreed upon with Castlelake and Elliott Management, is intended to give markets time to respond to the recent tariffs announced by U.S. President Donald Trump, according to Bloomberg News. CEO Celso Ferrer stated that Gol aims to emerge from Chapter 11 in April 2025, the report states. About GOL Linhas GOL Linhas Aereas Inteligentes S.A. provides scheduled and non-scheduled air transportation services for passengers and cargo; and maintenance services for aircraft and components in Brazil and internationally. The company offers Smiles, a frequent-flyer program to approximately 20.5 million members, allowing clients to accumulate and redeem miles. It operates a fleet of 146 Boeing 737 aircraft with 674 daily flights. The company was founded in 2000 and is headquartered in Sao Paulo, Brazil. GOL Linhas Aereas Inteligentes S.A. and its affiliates and its subsidiaries voluntarily filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 24-10118) on Jan. 25, 2024. GOL Linhas estimated $1 billion to $10 billion in assets as of the bankruptcy filing. The Debtors tapped Milbank Llp as counsel, Seabury Securities Llc as restructuring advisor, financial advisor and investment banker, Alixpartners, LLP, as financial advisor, and HUGHES Hubbard & Reed LLP as aviation related counsel. Kroll Restructuring Administration LLC is the claims agent. GOL LINHAS: Plan Exclusivity Period Extended to July 25 ------------------------------------------------------- Judge Martin Glenn of the U.S. Bankruptcy Court for the Southern District of New York extended GOL Linhas Aereas Inteligentes S.A., and its affiliates' exclusive periods to file a plan of reorganization and obtain acceptance thereof to July 25 and September 25, 2025, respectively. As shared by Troubled Company Reporter, the Debtors explain that the international nature of these Chapter 11 Cases in particular has necessitated resolution of complex questions of finance, securities, tax, and regulatory laws of various U.S. and non-U.S. jurisdictions, which the Debtors and their advisors continue to analyze in connection with the proposed implementation of the Plan. Given the size and complexity of these Chapter 11 Cases, the Debtors need additional time to ensure that they can obtain confirmation of the Plan and implement the Plan in accordance with its terms. The Debtors believe that the vast majority of the Debtors' creditors already support or will support the Debtors' Plan and continue to engage with all parties in interest to reach full consensus. The requested extensions of the Exclusive Periods will benefit all parties in interest by allowing the Debtors to build on the momentum they have achieved thus far and work toward reaching resolution with those creditors that do not already support the Plan. Thus, this factor weighs in favor of granting the requested extension of the Exclusive Periods. The Debtors assert that they have been timely paying their undisputed postpetition obligations in the ordinary course throughout the course of these Chapter 11 Cases. The Debtors will continue to do so, as they have more than enough cash on hand due to the substantial liquidity provided by the DIP financing and the Court-approved factoring arrangements. As such, this factor also weighs in favor of granting the requested extension of the Exclusive Periods. The Debtors' Counsel: Evan R. Fleck, Esq. Andrew C. Harmeyer, Esq. Bryan V. Uelk, Esq. MILBANK LLP 55 Hudson Yards New York, NY 10001 Telephone: (212) 530-5000 Facsimile: (212) 530-5219 Email: efleck@milbank.com aharmeyer@milbank.com buelk@milbank.com - and - Gregory A. Bray, Esq. MILBANK LLP 2029 Century Park East, 33rd Floor Los Angeles, CA 90067 Telephone: (424) 386-4000 Facsimile: (213) 629-5063 Email: gbray@milbank.com - and - Andrew M. Leblanc, Esq. Erin E. Dexter, Esq. MILBANK LLP 1850 K St. NW, Suite 1100 Washington, DC 20006 Telephone: (202) 835-7500 Facsimile: (202) 263-7586 Email: aleblanc@milbank.com edexter@milbank.com About GOL Linhas GOL Linhas Aereas Inteligentes S.A. provides scheduled and non-scheduled air transportation services for passengers and cargo; and maintenance services for aircraft and components in Brazil and internationally. The company offers Smiles, a frequent-flyer program to approximately 20.5 million members, allowing clients to accumulate and redeem miles. It operates a fleet of 146 Boeing 737 aircraft with 674 daily flights. The company was founded in 2000 and is headquartered in Sao Paulo, Brazil. GOL Linhas Aereas Inteligentes S.A. and its affiliates and its subsidiaries voluntarily filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 24-10118) on Jan. 25, 2024. GOL Linhas estimated $1 billion to $10 billion in assets as of the bankruptcy filing. The Debtors tapped Milbank Llp as counsel, Seabury Securities Llc as restructuring advisor, financial advisor and investment banker, Alixpartners, LLP, as financial advisor, and HUGHES Hubbard & Reed LLP as aviation related counsel. Kroll Restructuring Administration LLC is the claims agent. GOL LINHAS: Secures New Financing to Support Chapter 11 Exit ------------------------------------------------------------ Luciana Magalhaes, writing for Reuters, reports that Brazilian airline Gol on Thursday, May 1, announced that it has struck a new deal with key creditors, paving the way for the company to emerge from Chapter 11 bankruptcy protection likely by the end of June. The agreement, which involves investors holding a portion of the airline's senior secured notes due in 2026, will provide $125 million in financing, Reuters says, citing a regulatory filing. With the new development, Gol has now secured at least $1.375 billion in financing to exit bankruptcy, the filing showed, recounts Reuters. According to the report, Gol said that support from this majority group of creditors will substantially increase the chances of its restructuring plan being approved. The airline will now adjust its recovery plan to reflect the terms of this new accord, which also foresees that creditors who are not part of the investing group will be eligible to receive up to $100 million in new debt. Those securities will not be convertible into shares, notes the report. Additionally, other investors outside of the main group will have the opportunity to participate in the financing, with up to $50 million available, Gol said in the filing, the report relates. The carrier has been in bankruptcy proceedings since early 2024. About GOL Linhas GOL Linhas Aereas Inteligentes S.A. provides scheduled and non-scheduled air transportation services for passengers and cargo; and maintenance services for aircraft and components in Brazil and internationally. The company offers Smiles, a frequent-flyer program to approximately 20.5 million members, allowing clients to accumulate and redeem miles. It operates a fleet of 146 Boeing 737 aircraft with 674 daily flights. The company was founded in 2000 and is headquartered in Sao Paulo, Brazil. GOL Linhas Aereas Inteligentes S.A. and its affiliates and its subsidiaries voluntarily filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 24-10118) on Jan. 25, 2024. GOL Linhas estimated $1 billion to $10 billion in assets as of the bankruptcy filing. The Debtors tapped Milbank Llp as counsel, Seabury Securities Llc as restructuring advisor, financial advisor and investment banker, Alixpartners, LLP, as financial advisor, and HUGHES Hubbard & Reed LLP as aviation related counsel. Kroll Restructuring Administration LLC is the claims agent. =============== C O L O M B I A =============== COLOMBIA: IMF Assesses Continued Qualification for Credit Line -------------------------------------------------------------- Julie Kozack, Director of Communications at the International Monetary Fund, issued the following statement: "From April 26, 2025, Colombia's continued qualification for the IMF's Flexible Credit Line is contingent on the completion of both the ongoing Article IV consultation and a subsequent FCL mid-term review. The FCL arrangement was approved on April 26, 2024, for a two-year period with a mid-term review to assess continued qualification." ===================== P U E R T O R I C O ===================== KYTTO ENTERPRISE: Hires Vilarino & Associates LLC as Counsel ------------------------------------------------------------ Kytto Enterprise Inc. seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Vilarino & Associates, LLC as counsel. The firm will provide these services: (a) advise the Debtor concerning its duties, powers, and responsibilities; (b) advise the Debtor in connection with a determination whether reorganization is feasible; (c) assist the Debtor concerning negotiations with creditors to propose and confirm a viable plan of reorganization; (d) prepare, on behalf of the Debtor, the necessary legal papers or documents; (e) appear before the bankruptcy court, or any court in which the Debtor asserts a claim interest or defense directly or indirectly related to this bankruptcy case; (f) perform such other legal services for the Debtor as may be required in these proceedings or in connection with the operation and involvement with its business; and (g) employ other professional services, if necessary. The firm will be paid at these rates: Javier Villarino, Attorney $325 per hour Associates $250 per hour Paralegals $150 per hour In addition, the firm will seek reimbursement for expenses incurred. Mr. Villarino disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Javier Villarino, Esq. Villarino & Associates LLC P.O. Box 9022515 San Juan, PR 00902 Tel: (787) 565-9894 Email: jvillarino@vilarinolaw.com About Kytto Enterprise Inc. Kytto Enterprise Inc., operating as Sushi Kytto Bar International Steak House and Sushi Kytto Juncos, operates Japanese sushi restaurants and steakhouse establishments across multiple locations in Puerto Rico, with its principal place of business located in Gurabo. Kytto Enterprise Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 25-01382-11) on March 28, 2025. In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $500,000 and $1 million. The Debtor is represented by Javier Vilarino at VILARINO & ASSOCIATES LLC. ===================================== T R I N I D A D A N D T O B A G O ===================================== CARIBBEAN AIRLINES: Pilot Labor Agreement Negotiations Progressing ------------------------------------------------------------------ Daily Express reports that Caribbean Airlines says negotiations with the Trinidad and Tobago Airline Pilots Association for the 2020-2023 collective labour agreement are progressing. "After successfully concluding the 2015-2020 negotiations in December 2024, the airline began bilateral discussions with TTALPA in February 2025 to finalise the 2020-2023 collective labour agreement. As part of these discussions, an agreement was reached on a 4% retroactive pay increase for the period 2020-2023," Daily Express quotes the airline as saying in a media release on April 24. It said the negotiated retroactive payments were processed and paid to the pilots on April 11, 2025, Daily Express notes. According to Daily Express, CAL stated "There are still unresolved articles, and negotiations continue in good faith to settle these remaining outstanding articles of the agreement in full. Caribbean Airlines is optimistic that a settlement can be reached in the near future." About Caribbean Airlines Caribbean Airlines Limited provides passenger airline services in the Caribbean, South America, and North America. The company also offers freighter services for perishables, fish and seafood, live animals, human remains, and dangerous goods. In addition, it operates a duty free store in Trinidad. Caribbean Airlines Limited was founded in 2006 and is based in Piarco, Trinidad and Tobago. Caribbean Airlines is among many airlines whose business has been greatly affected in 2020 by the slowdown of international travel caused by the COVID-19 pandemic. The government of Trinidad & Tobago guaranteed a US$65 million loan for the airline, and that funding has helped with the airlines' cash flow shortfall since May 2020. In September 2020, the airline related it will be taking cost-cutting measures to help keep it afloat. The measures, which was to affect some 1,700 employees, included salary deductions, no-pay leaves and lay-offs. ============= U R U G U A Y ============= SANCOR SEGUROS: Fitch Affirms 'BB-' LT IFS Rating, Outlook Stable ----------------------------------------------------------------- Fitch Ratings has affirmed Sancor Seguros S.A.'s (Sancor) Long-Term Insurer Financial Strength (IFS) rating at 'BB-'. The Rating Outlook is Stable. The affirmation of Sancor's rating is based on the stability of its key rating factors. This includes the maintenance of positive and favorable results for the rating, stable leverage indicators supported by growing capital, and a moderate evaluation of its business profile, primarily due to its limited operating scale, as outlined in Fitch's guidelines. Key Rating Drivers Strong Performance Ratios: In 2024, Sancor achieved a record profit of UYU 131 million, marking a 122% increase compared to 2023. The returned on average equity (ROAE) was 20.3%, nearly double the 11.0% recorded at the end of 2023 and above the five-year average of 12.6%. This enhanced performance is part of the company's strategy to improve operational efficiency alongside positive financial results, largely driven by policy financing with payment plans. Improved Earnings and Greater Premium Stability Support Capitalization: The improvement in the insurer's results, combined with greater stability in the growth of both premiums and reserves, supported the maintenance of capitalization and leverage indicators within the ranges of the current credit factor. While gross written premiums grew 9% and insurance liabilities grew 0.6%, net income increased around 122%, supporting an annual capital increase of 13% at the end of 2024, reaching a net equity of UYU684.4 million. At the end of 2024, Sancor reported a net written premium (NWP) to equity of 2.9x, a net leverage of 4.6x and a gross leverage of 5.6x, slightly below the average of the last five years. Leverage indicators and capitalization model results have improved but remain within the expected ranges for the assigned rating, which led to the affirmation of this credit factor score at 'bb'. Fitch expects the company to maintain stronger equity due to improved financial results. Given these results, an increase in dividends distributed to the group is expected, which could put pressure on capitalization ratios compared to current levels. Reduced Dependence on Parent: Sancor has reduced its dependence on its Argentine parent, Sancor Cooperativa, particularly in terms of systems, processes and capital requirements. Over the past four years ,Sancor's performance has improved, leading to positive results and a reduction in accumulated losses, thereby strengthening its equity base. Despite these improvements, Fitch maintains a negative assessment of ownership in the final rating due to the credit opinion on Sancor Cooperativa, which is strongly influenced by Argentina's sovereign rating (CCC). Nonetheless, Sancor's individual results and solvency indicators remain favorable. Moderate Business Profile: Sancor's rating reflects a moderate business profile based on a moderate market position, and its business risk profile and diversification align with the Uruguayan industry. The business profile is constrained by a small operating scale, as outlined in Fitch's guidelines, due to the size of the Uruguayan market and the dominance of the state-owned company, Banco de Seguros del Estado (BSE), which held a 73% market share at December 2024. This concentration limits growth opportunities for all private insurers in the country. Sovereign Ratings Influence Investment Risk: The investment risk remains limited due to the significant concentration in sovereign instruments linked to sovereign risk. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Deterioration of capitalization reflected in bigger leverage indicators, with gross written premium (GWP) to equity steadily above 3.5x and a Prism score in the lower part of the 'Weak' category; - Significant deterioration in the technical performance indicators, with a combined ratio increasingly above 110% and a ROE lower than 4%, could also affect the rating; - Changes in in Fitch's credit view and relationship with its parent, particularly pressures on financial flexibility. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - A significant improvement in operating scale or increase in NWPs resulting in an increase in market share, which could have a positive impact on the business profile; - Strengthening of the leverage indicators, including results from Fitch's Prism factor-based capital model, maintaining a score within the upper midrange of the 'Somewhat Weak' category; - Positive changes in Fitch's view regarding Sancor Cooperativa's credit profile. 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 ----------- ------ ----- Sancor Seguros S.A. LT IFS BB- Affirmed BB- =============== X X X X X X X X =============== [] IDB, OPEC Fund Boost Co-Financing in Latin America, Caribbean ---------------------------------------------------------------- The Inter-American Development Bank (IDB), the Bank's private-sector arm, IDB Invest, and the OPEC Fund for International Development (OPEC Fund) on April 24, 2025, announced a new collaboration framework, which will enable the institutions to explore joint co-financing opportunities in key sectors for Latin America and the Caribbean including infrastructure, renewable energy, transportation, resilience and mitigation, social infrastructure, sustainable agriculture, and biodiversity preservation. The memorandum of understanding (MoU) allows IDB and the OPEC Fund to pursue new co-financing of sovereign and non-sovereign guaranteed operations, as well as mechanisms to provide technical assistance across the region. The MOU outlines collaboration between the IDB and the OPEC Fund for the early identification of co-financing and parallel financing opportunities for development projects, with a focus on maximizing impact in key sectors. In this regard, the IDB and the OPEC Fund are already exploring co-financing opportunities in Barbados, Chile, Colombia, Panama, Paraguay, Peru, Mexico, and Uruguay for the period between 2025 and 2027. On the private sector side, IDB Invest and the OPEC Fund will streamline the process of identifying and executing pilot projects in the region, involving joint technical assistance and co-financing. The IDB, IDB Invest, and OPEC Fund will establish a technical assistance facility to support both public and private sector operations. For the public sector, this includes project preparation and support in priority sectors for both institutions. For the private sector, it involves the joint delivery of advisory services to clients. Finally, the institutions will also collaborate on project preparation and implementation, as well as on information exchange, knowledge sharing, and capacity building in areas such as nature-based solutions. This may include the development of a shared database on development and climate indicators, participation in joint high-level events, training, capacity-building activities, publications, temporary staff exchanges, internships, and knowledge missions. Ilan Goldfajn, president of the IDB, said: "This agreement marks a new step in our partnership with the OPEC Fund. It reflects our continued efforts to deepen our collaboration in exploring and executing co-financing projects in key priorities areas for both the public and private sectors in Latin America and the Caribbean, as well as advancing joint technical assistance initiatives." OPEC Fund President Abdulhamid Alkhalifa said: "Our partnership with the IDB and IDB Invest reinforces the OPEC Fund's mission to drive development through collaboration. By pooling resources and expertise, we can deliver tangible results that support climate resilience, inclusive infrastructure and economic opportunity in Latin America and the Caribbean - and ultimately improve the lives of people across the region." ********* 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 co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2025. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *