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250505.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 Monday, May 5, 2025, Vol. 26, No. 89 Headlines A R G E N T I N A ARGENTINA: Eliminates Export Duties for Thousands of Goods B A H A M A S FTX GROUP: Ch. 11 Trust Asks to Keep Customer Info Confidential B A R B A D O S BARBADOS: Records 2.6% Economic Growth in First Quarter C O S T A R I C A AUTOPISTAS DEL SOL: Moody's Rates $300MM Sr. Sec. Notes 'Ba3' E L S A L V A D O R EL SALVADOR: Fitch Affirms 'B-' Long-Term FC IDR, Outlook Stable G U A T E M A L A BANCO DE LOS TRABAJADORES: Moody's Affirms 'Ba2' Deposit Ratings J A M A I C A JAMAICA: Trade Deficit Dipped to USD5.4 Billion in 2024 P U E R T O R I C O BED BATH: Administrator Sues U.S. Customs, States to Recover Fund SILVER AIRWAYS: Gets Interim OK for DIP Loan From KIA II - - - - - ================= A R G E N T I N A ================= ARGENTINA: Eliminates Export Duties for Thousands of Goods ---------------------------------------------------------- Buenos Aires Times reports that Argentina's government will eliminate the taxation for more than 4,000 industrial exports, Economy Minister Luis Caputo has announced. In a post on his personal X account, Caputo said the move is designed "to make local industry more competitive and encourage exports," Buenos Aires Times relates. According to the report, Caputo pointed out that the elimination of export duties of around 3 to 4.5 percent on 4,411 products "will initially benefit 3,580 companies, almost 40 percent of Argentina's exporters." The products which will now be tax-exempt were exported for a value of US$3.804 billion last year, detailed the minister. This decision responds to pressure from different sectors within the UIA (Union Industrial Argentina), who demanded measures to favour PyME small and medium-sized companies, in particular when it comes placing their products abroad, Buenos Aires Times says. Some sectors like iron, steel, aluminium, petchems and the auto industry will continue paying taxes. Buenos Aires Times says Caputo justified the decision by pointing to "more ordered public accounts," which make "continuing to lower these distortionate taxes" possible. Since taking office in December, 2023, President Javier Milei's government has implemented draconian austerity measures reducing public spending by 4.7 percent of GDP, the report notes. The effort has helped lower annual inflation from 211 percent in 2023 to a still high 118 percent last year. Monthly price hikes are now running at between two and four percent. Buenos Aires Times says Milei's economic programme included a new loan from the International Monetary Fund (IMF) for US$20 billion along with a further US$ 22 billion from other multilateral organisations. Argentina already has a debt of more than US$40 billion with the IMF. In return to the recent influx of financial support, the Milei government last month lifted many of the strict currency controls in force since 2019, introducing a new exchange rate whereby the dollar floats between bands of 1,000 and 1,400 pesos. Buenos Aires Times relates that Caputo said in his social media post that "the government will eliminate the export duties for 88 percent of industrial products." He added: "From now on, 4,411 products will not have to pay export duties of between three and 4.5 percent on the value of the merchandise." He detailed that "last year the exports of these products accumulated US$3.804 billion in value, including farm and other machinery, optics, glass, car parts, watches, preparations by the pharmaceutical industry, cables and insecticides, as well as other products with high added value like cosmetics, pumps, plastics and metals, among others." "Along these lines, last January the Industry & Commerce Department of the Economy Ministry eliminated the export duties on the agro-industrial activities of regional economies and their value chains such as cotton, paper, cardboard, food and beverages, besides reducing the export duties on the main agricultural products," he added. Buenos Aires Times adds that Caputo assured that "export duties make these Argentine companies less competitive abroad and discourage them from exporting." 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 A H A M A S ============= FTX GROUP: Ch. 11 Trust Asks to Keep Customer Info Confidential --------------------------------------------------------------- Jeff Montgomery at law360.com reports that in a just-under-the-wire move, the FTX bankruptcy recovery trust has sought a seventh extension for a mid-2023 ruling by the U.S. Bankruptcy Court for the District of Delaware allowing confidential treatment of its 9 million customers' information, citing the data's continued value to the estate. About FTX Group FTX is the world's second-largest cryptocurrency firm. FTX is a cryptocurrency exchange built by traders, for traders. FTX offers innovative products including industry-first derivatives, options, volatility products and leveraged tokens. Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that FTX paused customer withdrawals after it was hit with roughly $5 billion worth of withdrawal requests. Faced with liquidity issues, FTX on Nov. 9, 2022, struck a deal to sell itself to its giant rival Binance, but Binance walked away from the deal amid reports on FTX regarding mishandled customer funds and alleged US agency investigations. SBF agreed to step aside, and restructuring vet John J. Ray III was quickly named new CEO. FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc. (d/b/a FTX US), Alameda Research Ltd. and certain affiliated companies then commenced Chapter 11 proceedings (Bankr. D. Del. Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022. Additional entities sought Chapter 11 protection on Nov. 14, 2022. FTX Trading and its affiliates each listed $10 billion to $50 billion in assets and liabilities, making FTX the biggest bankruptcy filer in the US this year. According to Reuters, SBF shared a document with investors on Nov. 10, 2022, showing FTX had $13.86 billion in liabilities and $14.6 billion in assets. However, only $900 million of those assets were liquid, leading to the cash crunch that ended with the company filing for bankruptcy. The Hon. John T. Dorsey is the case judge. The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel; Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal North America, LLC as financial advisor. Kroll is the claims agent, maintaining the page https://cases.ra.kroll.com/FTX/Home-Index The Official Committee of Unsecured Creditors tapped Paul Hastings as counsel, FTI Consulting, Inc., as financial advisor, and Jefferies LLC as the investment banker. Young Conaway Stargatt & Taylor LLP is the Committee's Delaware and conflicts counsel. Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory T. Donilon, Edward L. Schnitzer, and David M. Banker, is representing Sam Bankman-Fried in the Chapter 11 cases. White-collar crime specialist Mark S. Cohen has reportedly been hired to represent SBF in litigation. Lawyers at Paul Weiss previously represented SBF but later renounced representing the entrepreneur due to a conflict of interest. =============== B A R B A D O S =============== BARBADOS: Records 2.6% Economic Growth in First Quarter ------------------------------------------------------- Nation News reports that Barbados maintained its economic growth momentum in the first quarter, with real gross domestic product expanding by an estimated 2.6 percent. Central Bank of Barbados Governor Dr. Kevin Greenidge reported this on April 30 during a press conference to review the economy's performance in the between January and March, Nation News relates. He attributed the growth to "strong performances in tourism, business services and construction". According to Nation News, Greenidge said that inflation continued its downward trend despite elevated global trade tensions. Unemployment claims, as reported by the National Insurance and Social Security Service, fell during January and February, but temporary hotel closures in March, linked to major renovation projects, reversed this gain, he noted, Nation News relates. Unemployment was 7.1 per cent at the end of last September, says the report. The Central Bank is awaiting most recent labour market data from the Barbados Statistical Service. Greenidge said the continued economic growth was beneficial for the fiscal situation, which "contributed to a further reduction in the debt-to-GDP ratio," Nation News relays. The gross international reserves also received a boost, growing $194.6 million to reach $3.4 billion at the end of March. This is equivalent to 32.4 weeks of import cover. Nation News adds that the Central Bank has lowered the full 2025 growth forecast from three per cent to 2.7 per cent on the basis of "weaker global conditions and ongoing trade tensions". As reported in the Troubled Company Reporter - Latin America on April 18, 2025, Moody's Ratings upgraded the long-term issuer ratings of the Government of Barbados' to B2 from B3. The outlook remains stable. =================== C O S T A R I C A =================== AUTOPISTAS DEL SOL: Moody's Rates $300MM Sr. Sec. Notes 'Ba3' ------------------------------------------------------------- Moody's Ratings has assigned a Ba3 rating to the $300 million fully-amortizing Senior Secured Notes due December 2030, issued by Autopistas del Sol S.A. ("AdS" or "the Issuer"). The rating outlook is positive. RATINGS RATIONALE The Ba3 rating on AdS' senior secured notes reflect Moody's opinions that the toll road is an essential asset for the transportation system in Costa Rica, operating under experienced sponsors and governed by a fair and supportive long-term concession agreement. However, the rating also considers the potential negative impact on the toll road's operating performance stemming from improvements in alternative routes. The rating and outlook also acknowledges the toll road's strong economic and regulatory linkages with the Government of Costa Rica (Ba3 positive). The toll road has demonstrated a resilient track record of tolled traffic, since it became fully operating in 2015. Its high commuter base, constituting around 90% of total traffic, reflects the toll road strong asset features as a preferred thruway to travel between San Jose, the capital city, and the Puerto Caldera, in the Pacific Coast. The projected financial metrics are in line with the broader Ba rating category. Moody's Base Case considers an average Debt Service Coverage Ratio (DSCR) of 1.5x over the remaining life of the debt and a Concession Life Coverage Ratio (CLCR) of 1.6 x as of December 2024. Moody's rating scenario assumes a 2% annual growth in traffic from 2025-2028 and a 5% annual decrease in traffic for 2029-2033 due to potential increase in competition. It also assumes operating and maintenance expenses that are 10% higher than the Management's Case, and closely aligned with the toll road's historical performance. Supporting the resiliency of the transaction are the minimum revenue guarantees (MRGs), under which the government compensates the concessionaire for underperformance up to the limit of a 20% annual reduction. The contractual framework also allows for automatic toll rate adjustments, being: (i) the devaluation of the Costa Rican Colon against the US Dollar on a quarterly basis, and (ii) the adjustments to the US CPI rate on an annual basis. Extraordinary adjustments are also permitted with regulatory approval, whenever the CRC or US CPI changes by 5% or more. Moreover, the concessionaire can restore its financial equilibrium when there is a negative impact resulting from government actions, acts of force majeure, or uninsured events. These features combined contribute to the cash flow resiliency and mitigate the exposure to a lower than anticipated growth volumes. As such, under Moody's Stress Case for traffic, which considers no growth from 2025 into 2029 and the use of the MRG in 2029 and 2030, the projected average DSCR is 1.32x and the CLCR is 1.43x. Moody's assessments incorporates the credit enhancements of project finance features embedded in the transaction, including a trust managed waterfall, step-in rights, and restrictions on the issuer's business activities, total indebtedness, additional indebtedness, and distributions. Supporting the project's liquidity is a six-month debt service reserve account ("DSRA") and a three-month combined major maintenance and operating and maintenance ("O&M") reserve account. Both reserves are cash funded with US Dollars and letters of credit. In addition, the concession agreement requires that the Concessionaire's assets are placed in fiduciary trust for the benefit of secured parties including the Noteholders, as well as the assignment and transfer of rights over receipts from all-risks insurance, operational guarantees, and step-in rights. Nevertheless, Moody's acknowledges that the provisions for liquidity reserves required by the Senior Secured Notes are relatively weaker compared with other project finance transactions in the toll road sector in Latin America. The concession agreement includes a provision for early termination if the toll road performance is better than anticipated, such that it achieves the scheduled net present value (NPV) of cash flows before the contractual concession termination in July 2033. A co-participation plan also shares 50% of excess toll revenues with the government. As of December 2024, the concession NPV was still 5% lower than the scheduled NPV, due to the traffic imbalances suffered during the Covid pandemic. As such, Moody's believes it is unlikely that they will reach the target NPV ahead of the bond maturity in 2030. The risk of early termination in a scenario of traffic overperformance is further mitigated by the transaction structure, which includes an NPV Cash Trap Account. If the accumulated cash in this account reaches $40 million, AdS has to use the funds to sweep the notes, effectively reducing the amount of debt outstanding. Furthermore, any cash available in this account at the time of an NPV early termination event must be used for early debt amortization. OUTLOOK The outlook is positive, in line with the positive outlook on the rating of the Government of Costa Rica (Ba3 Positive). The outlook acknowledges the strong economic and regulatory linkages of the toll road with Costa Rica. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING The rating could be upgraded if the Government of Costa Rica' rating is upgraded. An upgrade would also require Autopistas del Sol to demonstrate stable operating performance in line or above Moody's base case scenario. Given the positive outlook, Moody's do not expect downward pressure in the near term. Negative rating pressure on the outlook or the rating of Autopistas del Sol may follow if the performance is weaker than anticipated driving the DSCR to drops below 1.3x on a sustainable basis. PROFILE Autopistas del Sol S.A. is the concessionaire, operator, and manager of the Ruta 27 toll road. The company's direct shareholder is PI Promotora de Infraestructuras, S.A. ("Promotora"). Global Via Infraestructuras, S.A. ("Globalvia"), through its 100% ownership of Globalvia Inversiones, S.A.U., is the ultimate parent of Autopistas del Sol. Globalvia is a global manager of infrastructure assets and has been involved with Autopistas del Sol since 2008. In 2011, Globalvia achieved 100% ownership of the Issuer. Ruta 27 is a regional, 76.8km toll road that is best described by its three sections. Section I of the toll road is an urban 14.2km route that runs from the capital of San Jose to Ciudad Colon. Section II is the longest stretch of the toll road at 38.8km, transverses the mountainous region of the country and runs from Ciudad Colon to Orotina and Section III is a flatter 23.8km and connects Orotina with the Port of Caldera. The toll road has nine tolling plazas in total, four trunk plazas and five ramp plazas. Autopistas holds the concession for the San Jose-Caldera toll road, granted by the Consejo Nacional de Concesiones (CNC), allowing operation until July 9, 2033. Strict operating, safety, and maintenance requirements are imposed, with penalties for non-compliance; Autopistas has complied without penalties. The principal methodology used in this rating was Privately Managed Toll Roads published in December 2022. ===================== E L S A L V A D O R ===================== EL SALVADOR: Fitch Affirms 'B-' Long-Term FC IDR, Outlook Stable ---------------------------------------------------------------- Fitch Ratings has affirmed El Salvador's Long-Term Foreign Currency Issuer Default Rating (IDR) at 'B-' with a Stable Rating Outlook. Key Rating Drivers Stable Outlook: El Salvador's 'B-' rating is supported by a reduction in financing needs and easing of financing constraints and policy anchors under an IMF program. The rating is also supported by lower inflation and a higher GDP per capita than peers but is constrained by moderate growth, high debt levels and interest burdens, and the 2023 pension related debt exchange, which Fitch deemed as a distressed debt exchange. New IMF Program: El Salvador's Extended Fund Facility (EFF), spanning 40 months for USD1.4 billion, features backloaded funding with frontloaded reforms aimed at improving fiscal discipline and governance. The program aims to achieve fiscal consolidation, strengthen financial stability, and improve governance through increased fiscal transparency and robust anti-corruption measures. It includes an actuarial evaluation of the pension system that will subsequently lead to a reform proposal, aimed at ensuring the system's sustainability. The program also seeks to mitigate Bitcoin-related risks by ensuring its voluntary acceptance in the private sector while preventing its use by the public sector and tax collections. While there are implementation risks to the spending and revenue adjustments required under the program, they are mitigated by President Nayib Bukele's popularity and his party's commanding majority in congress. Furthermore, the IMF program should facilitate an additional USD 2.2 billion from other multilateral institutions. Fiscal Trajectory Improving: The non-financial public sector (NFPS) fiscal deficit for 2024 was 4.4% of GDP, down slightly from 4.7% in 2023. Fitch projects a decrease to 3.4% in 2025 and 2.1% in 2026 in line with the IMF program targets. Under the IMF program and as outlined in the 2025 budget, the frontloaded structural reforms are designed to reduce expenditures, by lowering the wage bill and cutting spending on goods and services as well as transfers to municipalities. On the revenue side, measures are focused on enhancing the system of excises and fees, as well as making tax administration more efficient. Debt to Remain High: In 2024, non-financial public sector debt increased to 87.2% of GDP from 85.1% in 2023. Fitch expects it to rise marginally to 87.8% of GDP in 2025. Higher primary surpluses and growth should lead debt to fall gradually to 86.5% of GDP in 2026, although still well above the 'B' median of 52.1% of GDP in 2024. However, debt-to-GDP could see a significant rise in 2027 due to the repayment of accrued interest from the 2023 pension-related debt. A high interest to revenue burden remains a key rating constraint, reaching 17.2% in 2024 compared to the 'B' median of 11.9%. Manageable Financing Needs: In 2024, El Salvador significantly reduced its short-term debt through liability management operations with local banks and by enhancing its financing sources. The government accessed external markets by issuing two bonds for deficit financing and debt buybacks, which decreased short- and medium-term amortizations but resulted in refinancing existing debt at higher borrowing costs, while multilateral loans supported capital spending. Fitch expects financing needs to be manageable in 2025 and 2026 due to sharp declines in the deficit and short-term debt, driven by consolidation efforts at the general government level. Multilateral loans are anticipated to cover the government's financing needs, with no new external bond issuances in 2025 and 2026. Modest Growth Prospects: Growth is expected to slow to around 2.2% in 2025 compared to 2.6% in 2024 given the fiscal adjustment and slowdown in U.S. growth. However, the tourism sector will continue benefiting from an enhanced security environment. Fitch expects consumption to remain the primary growth engine, complemented by a rise in private investment, leading to growth of 2.5% in 2026 and 2027. Domestic investment is expected to receive a boost as the government repays existing debts to local banks, which will enhance liquidity and improve private sector borrowing conditions. Fitch expects this "crowding in" effect to further stimulate economic activity and support growth prospects. Current Account to Narrow: The current account deficit widened to 1.8% of GDP in 2024 as gains from the tourism sector were offset by the widening trade deficit. Fitch expects the current account deficit to narrow to 1.2% and 0.9% of GDP in 2025 and 2026, respectively, on sustained remittances and tourism performance. Foreign direct investment (FDI) is anticipated to fully finance the current account deficit, primarily targeting infrastructure projects and industrial development. U.S. tariffs pose a risk to El Salvador as the U.S. accounts for around 33% of exports, as of 2024. Also, strict U.S. immigration policies pose a risk to remittance inflows which account for 24% of GDP as of 2024 and mainly emanate from the U.S. Fitch expects international reserves to rise to USD4.2bn in 2025 (from USD3.7bn in 2024) driven by IMF disbursements and higher multilateral financing. Approximately 63% of these reserves consist of banking reserve requirements, which are not immediately accessible for government financing. The Central Bank (BCR) raised liquidity requirements from 11.5% to 12% in January 2025, with additional increases to 14% expected by December 2025 and to 15% by June 2026. ESG - Governance: El Salvador has an ESG Relevance Score (RS) of '5' for both Political Stability and Rights and for the Rule of Law, Institutional and Regulatory Quality and Control of Corruption. These scores reflect the high weight that the World Bank Governance Indicators (WBGI) have in its proprietary Sovereign Rating Model. El Salvador has a medium WBGI ranking at 41%, reflecting a moderate level of regulatory quality, rights for participation in the political process, institutional capacity and control of corruption. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Public Finances: Intensification of financing strains that weaken willingness and/or capacity to service government debt, for example due to fiscal deterioration that increases financing needs or deterioration in financing sources; - External Finances: Significant decline in external liquidity that heightens risks to financial stability and debt repayment capacity. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Public Finances: Fiscal consolidation that supports a sustained reduction in government debt-to-GDP, interest-to-revenue, and financing needs; - External Finances: Sustained improvement of foreign reserves that ease risks to the financial system and strengthens debt repayment capacity. Sovereign Rating Model (SRM) and Qualitative Overlay (QO) Fitch's proprietary SRM assigns El Salvador a score equivalent to a rating of 'B-' on the Long-Term Foreign Currency (LT FC) IDR scale. Fitch's sovereign rating committee did not adjust the output from the SRM to arrive at the final LT FC IDR. Country Ceiling The Country Ceiling for El Salvador is 'B+', two notches above the LT FC IDR. This reflects strong constraints and incentives, relative to the IDR, against capital or exchange controls being imposed that would prevent or significantly impede the private sector from converting local currency into foreign currency and transferring the proceeds to non-resident creditors to service debt payments. Fitch's Country Ceiling Model produced a starting point uplift of plus-two notches above the IDR. Fitch's rating committee did not apply a qualitative adjustment to the model result. ESG Considerations El Salvador has an ESG Relevance Score of '5' for Political Stability and Rights as World Bank Governance Indicators have the highest weight in Fitch's SRM and are therefore highly relevant to the rating and a key rating driver with a high weight. As El Salvador has a percentile rank below 50 for the respective Governance Indicator, this has a negative impact on the credit profile. El Salvador has an ESG Relevance Score of '5' for Rule of Law, Institutional & Regulatory Quality and Control of Corruption as World Bank Governance Indicators have the highest weight in Fitch's SRM and are therefore highly relevant to the rating and are a key rating driver with a high weight. As El Salvador has a percentile rank below 50 for the respective Governance Indicators, this has a negative impact on the credit profile. El Salvador has an ESG Relevance Score of '4' for Human Rights and Political Freedoms as the Voice and Accountability pillar of the World Bank Governance Indicators is relevant to the rating and a rating driver. As El Salvador has a percentile rank below 50 for the respective Governance Indicator, this has a negative impact on the credit profile. El Salvador has an ESG Relevance Score of '4' for Creditor Rights as willingness to service and repay debt is relevant to the rating and is a rating driver for El Salvador, as for all sovereigns. As El Salvador recently implemented a pension debt exchange in 2023 that Fitch deemed a default, this has a negative impact on the credit profile. 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 ----------- ------ ----- El Salvador LT IDR B- Affirmed B- ST IDR B Affirmed B Country Ceiling B+ Affirmed B+ senior unsecured LT B- Affirmed B- ================= G U A T E M A L A ================= BANCO DE LOS TRABAJADORES: Moody's Affirms 'Ba2' Deposit Ratings ---------------------------------------------------------------- Moody's Ratings has affirmed all ratings and assessments assigned to Banco de los Trabajadores (Bantrab), including its long-term local and foreign currency deposit ratings at Ba2 and its long-term local and foreign currency Counterparty Risk Ratings also at Ba2. The Baseline Credit Assessment (BCA) and adjusted BCA of ba3, the long- and short-term Counterparty Risk Assessments of Ba2(cr) and Not Prime(cr), respectively, as well as the short-term local and foreign currency bank deposit ratings and Counterparty Risk Ratings of Not Prime were also affirmed. The outlook on the long-term deposit ratings remains stable. RATINGS RATIONALE In affirming Bantrab's ratings and assessments, Moody's acknowledges the bank's strong capital position, steady ample margins and high liquidity buffers which partially offset the sharp deterioration in asset quality and profitability metrics in 2024. The bank's credit profile continues to be limited by the elevated risk associated with concentration on consumer lending and its wholesale funding structure. The deterioration in Bantrab's asset quality was largely driven by an aggressive expansion of business volumes between 2022 and 2024, with an annual growth of 18% during the period. However, even as asset quality has begun to improve mildly, it will stabilize at still higher levels with respect to its historic numbers, as management continues to implement adjustments to origination and write-offs. As of December 2024, Bantrab's nonperforming loan (NPL) ratio significantly deteriorated to 3.9%, up from 1.8% a year earlier, but as of February 2025, NPLs have moderated slightly to 3.6%. The increase in NPLs was mostly driven by rapid expansion into riskier unsecured personal loans, credit cards and SME financing. Meanwhile, the bank's core product—loans to public sector employees facilitated through direct payroll deductions—continued to decrease its share of total loans, amounting to around 50% of the portfolio. The bank maintains still adequate loans loss reserves at 95% of NPLs as of December 2024 but down from 100% in 2023 and the 2019-2022 average of 148.5%, which will serve to limit losses. The bank's ample margins and steady generation of recurring earnings support Bantrab's profitability, although earnings significantly declined in 2024, mostly due to higher regulatory provision requirements. As of December 2024, Bantrab's net income to tangible assets decreased to 1.7% from 2.2% a year earlier and from a 2.6% average in 2019-2022. Still, the bank maintains a strong pricing power among its client base, illustrated by its dominant position within the consumer finance segment in the country, which results in a persistently strong NIM at 8.2% in December 2024 which offsets pressures from the bank's high funding costs. Moody's expects Bantrab's core earning to remain robust; however, bottom line results will continue declining in 2025 due to the on-going implementation of regulatory requirements and the write-off of non-performing assets. Bantrab maintains a heavy reliance on large term deposits from corporate and government-related customers which diminishes funding granularity and results in persistently higher financing costs. While Bantrab's funding structure is primarily composed of deposits, 69% of these are costlier term deposits. Funding granularity remains low because of high single-name concentration, resulting in persistently high funding rates compared to the rest of the banking system. The reestablishment of the bank's correspondent relationships with foreign banks would improve funding diversification. Liquidity buffers, at an ample 33% of tangible banking assets as of December 2024, are primarily composed of liquidity reserves at the central bank and Ba1-rated Government of Guatemala securities. The affirmation of Bantrab's ba3 BCA benefits from its strong loss absorption capacity, which remains a key strength. The bank's capitalization levels is among the highest in the Guatemalan banking system despite rapid expansion in recent years. As of December 2024, Bantrab's tangible common equity to adjusted risk-weighted assets reached 17.8%, an increase of approximately 96 basis points from the previous year, in line with the bank's strong ability to replenish capital and its cautious dividend policy, despite a lower profitability. Bantrab's long-term local- and foreign-currency deposit ratings of Ba2 incorporate Moody's assessments of a moderate probability of support from the Government of Guatemala (Ba1 stable), in case of stress. This support assumption reflects Bantrab's deposit market share of 8.0% as of December 2024, and its importance as a retail bank that provides financial services and credit to government employees in Guatemala. The outlook on the bank's ratings is stable and incorporates Moody's expectations that Bantrab's financial fundamentals will remain sound over the next 12 to 18 months. The stable outlook also takes in consideration the stable outlook on the Government of Guatemala's sovereign debt rating. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade in Bantrab's standalone BCA would result from a consistent reporting of strong profitability metrics, consistent with a sustainable return to good levels of asset quality. Bantrab's BCA could be downgraded if asset quality deteriorates further, leading to a continued decline in profitability and a significant reduction in its capital position. Downward pressure on the bank's long-term ratings could also develop through a deterioration in the sovereign's credit profile indicating a lower government capacity to provide support and/or a deterioration in the operating environment. The principal methodology used in these ratings was Banks published in November 2024. ============= J A M A I C A ============= JAMAICA: Trade Deficit Dipped to USD5.4 Billion in 2024 ------------------------------------------------------- RJR News reports that Jamaica's trade deficit dipped to US$5.4 billion last year compared with US$5.59 billion during 2023. This was due to a 4% drop in imports to US$7.3 billion and a 6.5% drop in exports to US$1.9 billion last year. 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. ===================== P U E R T O R I C O ===================== BED BATH: Administrator Sues U.S. Customs, States to Recover Fund ----------------------------------------------------------------- Randi Love of Bloomberg Law reports that the plan administrator for Bed Bath & Beyond Inc.'s bankruptcy estate has filed multiple lawsuits to recover nearly $10 million in pre-bankruptcy payments made to state and federal agencies. The lawsuits, brought in the U.S. Bankruptcy Court for the District of New Jersey, seek to recover funds related to customs duties, tax overpayments, damages, and freight charges, according to Bloomberg Law. The largest of the claims seeks nearly $1.6 million from the Texas Comptroller of Public Accounts, followed by another significant recovery effort targeting U.S. Customs and Border Protection, the report states. About Bed Bath & Beyond Bed Bath & Beyond Inc., together with its subsidiaries, is an omnichannel retailer selling a wide assortment of merchandise in the Home, Baby, Beauty & Wellness markets and operates under the names Bed Bath & Beyond, buybuy BABY, and Harmon, Harmon Face Values. The Company also operates Decorist, an online interior design platform that provides personalized home design services. At its peak, Bed Bath & Beyond operated the largest home furnishing retailer in the United States with over 970 stores across all 50 states, consistently at the forefront of major home and bath trends. Operating stores spanning the United States, Canada, Mexico, and Puerto Rico, Bed Bath & Beyond offers everything from bed linens to cookware to electric appliances, home organization, baby care, and more. Bed Bath & Beyond closed over 430 locations across the United States and Canada before filing Chapter 11 cases, implementing full-scale wind-downs of their Canadian business and the Harmon branded stores. Left with 360 Bed Bath & Beyond, and 120 buybuy BABY stores, Bed Bath & Beyond Inc. and 73 affiliated debtors on April 23, 2023, each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code to pursue a wind-down of operations. The cases are pending before the Honorable Vincent F. Papalia and requested joint administration of the cases under Bankr. D.N.J. Lead Case No. 23-13359. Kirkland & Ellis LLP and Cole Schotz P.C. are serving as legal counsel, Lazard Frares & Co. LLC is serving as investment banker, and AlixPartners LLP is serving as financial advisor. Bed Bath & Beyond Inc. has retained Hilco Merchant Resources LLC to assist with inventory sales. Kroll LLC is the claims agent. SILVER AIRWAYS: Gets Interim OK for DIP Loan From KIA II -------------------------------------------------------- Silver Airways, LLC and Seaborne Virgin Islands, Inc. received interim approval from the U.S. Bankruptcy Court for the Southern District of Florida, Fort Lauderdale Division, to obtain post-petition financing and use cash collateral. The interim order penned by Judge Peter Russin approved the $5.5 million in secured post-petition financing from KIA II LLC, a Delaware-based lender affiliated with the proposed purchaser of the Debtors' assets. Of this $5.5 million loan, $3 million will be made immediately available to the Debtors. The DIP facility is due and payable on the earliest to occur of: (a) six months from the Closing Date, or (b) the closing of a Sale Transaction; (c) the effective date of a confirmed Acceptable Plan, or (d) the date of acceleration of the Loans or termination of the Commitment by the Lender following an Event of Default. The DIP loan bears a fixed 13% interest rate (15% default rate) and includes a 5% commitment fee and a 5% exit fee. The proceeds will be used for working capital, administrative expenses (including professional fees), and other operating costs strictly in accordance with a DIP budget. The DIP lender will receive a senior, priming lien on substantially all of the Debtors' existing and future assets and a superpriority administrative expense claim, subject only to a carve-out for U.S. Trustee fees and professional fees. Prepetition secured lenders -- Brigade Agency Services LLC and Argent Funding, LLC -- do not oppose the relief and have consented to the priming of their liens in exchange for adequate protection. These protections include replacement liens and superpriority claims to the extent of any diminution in value of their collateral. As of late December 2024, the Debtors owed approximately $187.4 million to Brigade and $211.8 million to Argent, and both creditors hold valid and perfected liens on nearly all of the Debtors' assets. A final hearing is scheduled for May 7. About Silver Airways Silver Airways, LLC is a regional U.S. airline operating flights between gateways in Florida, the Southeast and The Bahamas. The Silver Airways fleet is comprised of modern, state of the art aircraft with reliable, fuel-efficient turbo-prop engines. In the summer of 2018, Silver completed the acquisition of Seaborne Airlines, a San Juan, Puerto Rico-based air carrier serving destinations throughout Puerto Rico, the U.S. Virgin Islands, and other countries in the Caribbean. Seaborne provides connections throughout the Caribbean via the carrier's hub in San Juan, while also serving as the most critical link between St. Croix and St. Thomas with the carrier's seaplane operation. Silver Airways and Seaborne Virgin Islands, Inc. filed Chapter 11 petitions (Bankr. S.D. Fla. Lead Case No. 24-23623) on December 30, 2024. At the time of the filing, Silver Airways reported $100 million to $500 million in assets and liabilities while Seaborne reported $1 million to $10 million in assets and liabilities. Judge Peter D. Russin oversees the cases. Brian P. Hall, Esq., is the Debtors' legal counsel. Brigade Agency Services, LLC, as lender, is represented by Frank P. Terzo, Esq., at Nelson Mullins Riley & Scarborough, LLP. Argent Funding LLC and Volant SVI Funding LLC, as lenders, are represented by Regina Stango Kelbon, Esq. at Blank Rome, LLP. ********* 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. 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