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T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Tuesday, May 13, 2025, Vol. 26, No. 95
Headlines
A R G E N T I N A
ARGENTINA: Corporate Defaults Start Piling Up
ARGENTINA: Taking Measures to Encourage Citizens to Spend Dollars
B R A Z I L
GOL LINHAS: Reaches Settlement with Noteholders
PRIO S.A.: Fitch Puts 'BB' LT IDRs on Rating Watch Positive
C O L O M B I A
COLOMBIA: Moves to Join China's Belt and Road
J A M A I C A
JAMAICA: NIR Climbed to USD5.9 Billion in April
P U E R T O R I C O
FIGUEROA TELEPHONE: Taps Hatillo Law Office as Legal Counsel
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A R G E N T I N A
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ARGENTINA: Corporate Defaults Start Piling Up
---------------------------------------------
Ignacio Olivera Doll at Bloomberg News reports that cracks are
starting to appear as Javier Milei removes the distortions that
once characterised Argentina's economy, hurting companies that
bulked up on debt by exploiting exchange rate gaps.
The President in the past 16-plus months implemented sweeping
changes, enforcing cuts to public works and generous subsidies for
utilities, recounts Bloomberg News. He most recently removed the
currency controls that governed the peso for years, Bloomberg News
says.
Companies took advantage of the currency controls that created a
gap in exchange rates by importing goods at the stronger official
rate and selling them in pesos linked to a weaker parallel rate,
Bloomberg News relays. Companies were also able to borrow in the
local capital markets, benefitting from investors looking to hedge
against currency risks and rushing to buy securities linked to the
official exchange rate, such as bonds or commercial paper,
Bloomberg News notes.
Following those recent overhauls however, companies are beginning
to stumble, with two subsidiaries of utility Albanesi SA unable to
pay US$19.5 million in interest on a bond that was issued just six
months ago, Bloomberg News relays. Then pulp and maker Celulosa
Argentina SA said it will fail to meet a payment on its dollar
bonds. The defaults add to a list that's expected to get longer as
Milei pursues his dramatic shift of the Argentine economy, the
report discloses.
"Albanesi had been struggling with debt for three years and, when
Milei came to power, companies had to start paying higher interest
rates, more in line with international rates," said Martin Arancet,
an analyst at Balanz Capital in Buenos Aires, Bloomberg News
relays.
Agro-industrial companies Grupo Los Grobo LLC, Agrofina and
agricultural supplier Red Surcos SA in recent months also failed to
meet their debt obligations, Bloomberg News says. Red Surcos, for
one, in December defaulted on the payment of two promissory notes,
discloses the report. Los Grobo and Agrofina accumulated claims
for non-payment of debts of around US$300 million, according to
local news reports, Bloomberg News says.
The defaults aren't systemic, nor are they concentrated in a single
sector, notes Bloomberg News. Still, they're highlighting the
growing pain points for companies in Milei's Argentina, the report
relays.
For Albanesi, the biggest issue was Milei's reduction in public
spending, leading to interruptions in payment flows from the
state-owned electricity market operator Cammesa to energy
producers, Bloomberg News says. The company settled its overdue
debts through a principal write-off without recognition of
interest, forcing it to seek new financing as it was already highly
leveraged and had several projects underway. The company in
essence accumulated debt to pay down debt, Bloomberg News
discloses.
Los Grobo, Agrofina and Red Surcos were hit hard when Milei decided
to normalise the exchange rate by adopting a de-facto fixed
exchange rate, Bloomberg News says. The exchange rate gap narrowed
sharply and expectations of a devaluation faded. Now, Milei's
Central Bank lets the currency float freely between roughly 1,000
to 1,400 pesos per dollar before intervening, Bloomberg News
relays.
Albanesi, Agrofina, Los Grobo and Red Surcos declined to comment.
Celulosa said it hired VALO Columbus to restructure its debt,
according to a statement. It blamed its difficulties on the recent
changes in the peso, a drop in domestic sales and the government's
delay in negotiations with the International Monetary Fund,
Bloomberg News notes.
"While inflation was very high, the exchange rate gap was wide and
the market was very closed, there was a lot of demand for hedging,
and many companies had high operating results," said Gabriela
Catri, a ratings manager at Moody's, Bloomberg News relays.
About Argentina
Argentina is a country located mostly in the southern half of South
America. Its capital is Buenos Aires. Javier Milei is the current
president of Argentina after winning the November 19, 2023 general
election. He succeeded Alberto Angel Fernandez in the position.
Argentina has the third largest economy in Latin America. The
country's economy is an upper middle-income economy for fiscal year
2019, according to the World Bank. Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.
In March 2022, the International Monetary Fund (IMF) approved a new
30-month arrangement under an Extended Fund Facility for Argentina
in the amount of SDR 31.914 billion (equivalent to US$44 billion,
or 1000 percent of quota). The IMF Executive Board's decision
allowed the authorities an immediate disbursement of an equivalent
of US$9.65 billion in March 2022.
Argentina's IMF-supported program seeks to improve public finances
and start to reduce persistent high inflation through a
multi-pronged strategy, involving a gradual elimination of monetary
financing of the fiscal deficit and enhancements in the monetary
policy framework.
On April 11, 2025, the International Monetary Fund (IMF) approved
a 48-month Extended Fund Facility (EFF) arrangement for Argentina
totaling US$20 billion (or 479 percent of quota), with an immediate
disbursement of US$12 billion, and a first review planned for June
2025 with an associated disbursement of about US$2 billion. The
program is expected to help catalyze additional official
multilateral and bilateral support, and a timely re-access to
international capital markets.
On Feb. 17, 2025, S&P Global Ratings lowered its local currency
sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and
its national scale rating to 'SD' from 'raB+'. At the same time,
S&P affirmed its 'CCC/C' foreign currency sovereign credit ratings
on Argentina. The outlook on the long-term foreign currency rating
remains stable.
On Jan. 8, 2025, Moody's Ratings raised Argentina's local currency
ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1
from Caa3. Moody's said the decision to raise the local and
foreign currency ceilings reflects the increased predictability and
the greater consistency in economic policy that has led to a rapid
reduction in monetary and fiscal imbalances that were stoking very
high inflation.
On Nov. 15, 2024, Fitch Ratings upgraded Argentina's Long-Term
Foreign-Currency Issuer Default Rating (IDR) to 'CCC' from 'CC',
and its Long-Term Local-Currency IDR to 'CCC' from 'CCC-'.
Argentina's upgrade to 'CCC' from 'CC' reflects developments that
have improved Fitch's confidence in the authorities' ability to
make upcoming foreign-currency bond payments without seeking relief
of some sort.
DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local
Currency Issuer Ratings to B (low) from CCC on November 25, 2024.
The trend on all ratings is Stable.
ARGENTINA: Taking Measures to Encourage Citizens to Spend Dollars
-----------------------------------------------------------------
Buenos Aires Times reports that Economy Minister Luis Caputo has
confirmed that Argentina's government is working on a series of
deregulatory measures to make it easier for citizens to spend
dollars domestically - without having to explain the origin of the
funds.
"What we're going to do is encourage people to be more inclined to
take their dollars out from under the mattress, from safety deposit
boxes, or wherever they may be, and spend them," said President
Javier Milei's top economic chief, according to Buenos Aires
Times.
Calling for a "cultural shift" in the way people spend their
undeclared cash, Caputo said that Argentines shouldn't have to
explain away what they spend, the report notes.
He stressed that Argentina's economy needs to be remonetised and
that "the most logical way is for that to happen in dollars," the
report relays.
"I don't buy the story that people don't spend their dollars"
because they don't want to, the minister said, arguing that they
didn't do so due to fear of the authorities, the report discloses.
His comments come just weeks after the Milei government made
dramatic modifications to Argentina's foreign exchange regime - a
move that has already yielded results, the report says.
Private-sector dollar deposits rose by more than US$1 billion
between mid-April and April 25, after falling by US$2.5 billion in
the first few months of the year, according to Central Bank data,
the report discloses.
The rebound in dollar holdings coincided with the removal of
capital controls for individuals, the introduction of an official
exchange rate band between 1,000 and 1,400 pesos to the US dollar
and a new disbursement of US$12 billion from the International
Monetary Fund, the report relays.
IMF Managing Director Kristalina Georgieva recently highlighted the
scale of Argentina's informal dollar holdings, claiming that
citizens keep more than US$200 billion "under the mattress and God
knows where," the report discloses.
Milei and Caputo want to coax those funds into the formal economy,
the report notes.
Trailing measures without providing detail, Caputo hinted that
steps would be taken by Argentina's Central Bank, the Economy
Ministry and the ARCA tax bureau to facilitate the circulation of
greenbacks into the domestic economy, the report relates.
Caputo said that if Argentina is to be "a normal country, nobody
should ask you to explain how you spend your money," the report
says.
He went on: "The aim is not having to explain what you spend your
money on - even if it wasn't in the banking system. It's a cultural
shift that needs to be properly explained," the report discloses.
The minister said a package of incentives would be announced in the
coming weeks to encourage use of dollars in everyday transactions
and within the financial system, the report relays. Among the
proposals under consideration are tax benefits for dollar payments,
a reduction in tax on financial transactions, incentives for
agro-exporters to sell outside the official FX market and expanded
use of QR codes and debit cards for dollar payments, the report
relays.
Asked whether the government's recent reduction in export duties
for the agricultural sector would be made permanent, Caputo avoided
giving a clear answer, stating: "If macroeconomic conditions allow
it, there are always chances to lower export taxes," the report
notes.
He explained that the temporary reduction had been introduced due
to fears of a drought which ultimately did not happen while prices
initially fell but later recovered, the report adds.
About Argentina
Argentina is a country located mostly in the southern half of South
America. Its capital is Buenos Aires. Javier Milei is the current
president of Argentina after winning the November 19, 2023 general
election. He succeeded Alberto Angel Fernandez in the position.
Argentina has the third largest economy in Latin America. The
country's economy is an upper middle-income economy for fiscal year
2019, according to the World Bank. Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.
In March 2022, the International Monetary Fund (IMF) approved a new
30-month arrangement under an Extended Fund Facility for Argentina
in the amount of SDR 31.914 billion (equivalent to US$44 billion,
or 1000 percent of quota). The IMF Executive Board's decision
allowed the authorities an immediate disbursement of an equivalent
of US$9.65 billion in March 2022.
Argentina's IMF-supported program seeks to improve public finances
and start to reduce persistent high inflation through a
multi-pronged strategy, involving a gradual elimination of monetary
financing of the fiscal deficit and enhancements in the monetary
policy framework.
On April 11, 2025, the International Monetary Fund (IMF) approved
a 48-month Extended Fund Facility (EFF) arrangement for Argentina
totaling US$20 billion (or 479 percent of quota), with an immediate
disbursement of US$12 billion, and a first review planned for June
2025 with an associated disbursement of about US$2 billion. The
program is expected to help catalyze additional official
multilateral and bilateral support, and a timely re-access to
international capital markets.
On Feb. 17, 2025, S&P Global Ratings lowered its local currency
sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and
its national scale rating to 'SD' from 'raB+'. At the same time,
S&P affirmed its 'CCC/C' foreign currency sovereign credit ratings
on Argentina. The outlook on the long-term foreign currency rating
remains stable.
On Jan. 8, 2025, Moody's Ratings raised Argentina's local currency
ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1
from Caa3. Moody's said the decision to raise the local and
foreign currency ceilings reflects the increased predictability and
the greater consistency in economic policy that has led to a rapid
reduction in monetary and fiscal imbalances that were stoking very
high inflation.
On Nov. 15, 2024, Fitch Ratings upgraded Argentina's Long-Term
Foreign-Currency Issuer Default Rating (IDR) to 'CCC' from 'CC',
and its Long-Term Local-Currency IDR to 'CCC' from 'CCC-'.
Argentina's upgrade to 'CCC' from 'CC' reflects developments that
have improved Fitch's confidence in the authorities' ability to
make upcoming foreign-currency bond payments without seeking relief
of some sort.
DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local
Currency Issuer Ratings to B (low) from CCC on November 25, 2024.
The trend on all ratings is Stable.
===========
B R A Z I L
===========
GOL LINHAS: Reaches Settlement with Noteholders
-----------------------------------------------
GOL Linhas Aareas Inteligentes S.A. ("Company" or "GOL"), one of
the leading airlines in Brazil, announced on May 8, 2025, that the
Company has reached an agreement with Whitebox Advisors LLC
("Whitebox") on behalf of its managed funds and accounts that hold
3.75% Exchangeable Senior Notes due 2024 issued by Gol Equity
Finance (the "2024 Senior Exchangeable Notes") which consensually
resolves a dispute with respect to the consideration to be provided
to all holders of 2024 Senior Exchangeable Notes with claims
against Gol Equity Finance under the Company's Chapter 11 plan of
reorganization (the "Plan"). The Company is pleased to have reached
this agreement with Whitebox, as it secures the support of its
final key economic stakeholder and provides the Company with a
clear path to a fully consensual Plan confirmation hearing.
Under the terms of the deal with Whitebox, on behalf of holders
that in the aggregate hold an amount of 2024 Senior Exchangeable
Notes necessary for Class 10(e) (GEF General Unsecured Claims) to
approve the Plan, Whitebox has agreed to sign the Plan Support
Agreement previously entered into between the Company, Abra Group
Limited, and the Official Committee of Unsecured Creditors, and
joined by certain members of the ad hoc group of holders of 8.00%
Senior Secured Notes due 2026 issued by Gol Finance (Luxembourg),
pursuant to which Whitebox will agree to support the Plan on
modified terms. The Plan will be amended to provide for, among
other things, modifications to the debtor-by-debtor allocations of
the general unsecured claimholder distributions, the details of
which will be reflected in the revised Plan to be filed with the
U.S. Bankruptcy Court.
The Company expects to emerge from its ongoing Chapter 11 cases in
June 2025.
Finally, GOL reiterates that, under the terms of the Plan, it will
significantly reduce its indebtedness by converting into equity or
extinguishing up to approximately US$1.7 billion of its pre-Chapter
11 funded debt and up to approximately US$850 million of other
obligations. As such, considering that the conversion will be
carried out based on the economic value of GOL's shares prior to
the conversion, in accordance with applicable law, a substantial
dilution of GOL's currently outstanding shares is expected (subject
to shareholders' preemptive rights as provided under Brazilian
law).
In a separate report, Rick Archer, writing for Law360, said that in
the deal, the noteholders agreed to reverse its opposition to the
company's restructuring proposal and supply an additional $125
million in financing when the debtor exits Chapter 11.
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.
PRIO S.A.: Fitch Puts 'BB' LT IDRs on Rating Watch Positive
-----------------------------------------------------------
Fitch Ratings has placed PRIO S.A.'s (PRIO) 'BB' Long-Term Local
and Foreign Currency Issuer Default Ratings (IDRs), and PRIO
Luxembourg Holding S.a.r.l.'s (PRIO Lux) 'BB' Foreign Currency IDR
and the 'BB' rating of its USD600 million secured notes on Rating
Watch Positive (RWP). Fitch also affirmed the 'AAA(bra)' Long-Term
National Scale ratings of PRIO, Prio Forte S.A. (Prio Forte) and
Prio Forte's third, fourth and fifth debenture issues. The Outlook
for the National Scale ratings is Stable.
The Rating Watch follows the announced acquisition of 60% interest
of the Peregrino and Pitangola fields (Peregrino asset). The
resolution of the Rating Watch is anticipated upon the
transaction's closing, which may take more than six months. The
transaction will significantly increase PRIO's scale while
maintaining its strong financial profile. Fitch believes the
company will be able to secure funding at a competitive cost.
Key Rating Drivers
Greater Scale: The Peregrino acquisition increases PRIO's proven
reserves (1P) to 872 million boe (+21%) and 1P production to 168
thousand barrels of oil equivalent per day (kboe/d) (+53%), levels
commensurate with a 'BB+' IDR. The increased scale from the
acquisition mitigates the uncertainties regarding Wahoo's first
oil. Production should reach 110 kboe/d in 2025 or 168 kboe/d on a
pro forma basis, assuming the closing of the 40% stake in 2025, and
196 kboe/d in 2026, with the other 20%.
Quick Deleveraging: The acquisition temporarily pressures PRIO's
credit metrics under Fitch's revised forecasts for Brent at USD65
per barrel (bbl) from 2025 to 2027. Net leverage is expected to
increase to 2.9x in 2025 (or 1.9x pro forma) from 1.9x in 2024 and
reduce to 1.4x in 2026 and 0.8x in 2027, assuming no dividend
distribution in 2025 and 25% dividend payout as of 2026.
High Efficiency: PRIO´s efficiency and resiliency to price
volatility could have some negative impact from the acquisition,
but the Frade-Wahoo tieback and Albacora Leste's ramp-up should
increase the overall efficiency in the coming years. PRIO's robust
reserve base and ownership of core equipment add flexibility to
adjust capex according to market cycles. The average discount to
Brent is expected to increase to around USD6.4/boe, from USD3.0/boe
in 2024, reflecting Peregrino's lower quality oil, while the
lifting cost should increase to USD13/bbl in 2025 and USD10/bbl in
2026, from USD9/bbl in 2024.
Strong Cash Flows: Fitch forecasts EBITDA of BRL8.5 billion in 2025
(BRL12.1 billion pro forma) and BRL16.6 billion in 2026. For each
boe produced, PRIO should generate EBITDA close to USD40 in
2025-2027, on average, from USD55 in 2024. FCF is expected to
remain positive at around BRL4.2 billion in 2025-2026, after
investments averaging BRL3.8 billion per year in the same period.
Peregrino is well developed and should add marginal incremental
capex, although it offers lower growth potential compared to
previous acquisitions.
Solid Growth: The Wahoo startup expected in 2026, along with strong
growth from Albacora Leste, should more than offset Frade's
depletion. Projections consider all four wells of Wahoo becoming
operational by March 2026, adding around 35 kboe/d over a full
year. Production from Wahoo depends on the approval of the license
to install the pipelines connecting its production to Frade's FPSO.
PRIO's track record mitigates the increasing execution risks as the
company advances on ultradeep waters in Albacora Leste, whose
contribution will decline to 15% of the output estimated through
2027 after the Peregrino acquisition, from 30% in 2024.
Equalized Ratings: Fitch equalizes the ratings of Prio Forte and
PRIO Lux's with that of PRIO, given the guarantees provided by the
parent company to all or most of the debts issued by these
subsidiaries, according to Fitch's "Parent and Subsidiary Linkage
Rating Criteria." Prio Forte is also the main subsidiary,
accounting for most of the production estimated through 2029. It
concentrates the working interests in Albacora Leste, Frade and
Wahoo.
Peer Analysis
PRIO's high profitability is a key differentiation factor relative
to its Brazilian peer Brava Energia S.A. (Brava, IDR BB-/Outlook
Stable) and to North American oil-weighted producers in the onshore
Permian basin (Texas/New Mexico), such as Matador Resources Company
(Matador; IDR, BB-/ Positive), SM Energy Company, L.P. (SM; IDR
BB/Stable) and Vermilion Energy Inc. (Vermillion; IDR,
BB-/Negative).
Brava and Vermillion have similar production scales, with 1P
production averaging close to 95 kboe/d and 85 kboe/d,
respectively, over 2024-2026. Brava has a broader asset base,
operating several assets across six different basins onshore and
offshore, but its lower profitability makes it less resilient than
PRIO to market downturns. Fitch projects PRIO's half-cycle costs
around USD16/boe over 2025-2027, below the estimates for Brava
(USD28/boe) and Vermillion (USD23/boe) over the same period.
The acquisition places PRIO in the 'bbb' range of production (175
kboe/d to 700 kboe/d) on a sustained basis, although 1P reserves
are still in the 'bb' category. Matador and SM Energy operate
onshore fields within that range, from 170 kboe/d to 190 kboe/d and
their cost structure is slightly lower than PRIO's, with average
half-cycle costs around USD14/boe.
Considering royalties, cash tax, debt interest and other costs,
PRIO should generate operating cash flow of around USD28/boe
produced, as measured by funds from operations (FFO), which is
close to the estimate for SM Energy (USD26/boe) and lower than
Matador's (USD34/boe). The estimates for PRIO incorporate a
negative impact from the Peregrino acquisition.
PRIO compares favorably with its American peers in terms of 1P
reserve life. Fitch estimates a seven- to nine-year range through
2026, on average, for Matador, SM Energy and Vermillion, and 13
years for PRIO.
In terms of its financial profile, PRIO is similar to Brava and
compares unfavorably with Matador and SM Energy. Fitch projects
EBITDA net leverage ratios around 2.3x for Brava over 2025-2026 and
close to 1.5x for Matador and SM Energy, below the 2.1x ratio
estimated for PRIO.
Key Assumptions
- Average Brent prices of USD65/bbl from 2025 to 2027;
- Wahoo first oil in 1Q26;
- Average daily production from 2025 to 2028: 110 kboe/d (168
kboe/d pro forma); 196 kboe/d; 215 kboe/d; and 214 kboe/d,
respectively;
- Oil sales consider discount to Brent around USD6.4/bbl;
- Lifting cost from 2025 to 2027: USD13.0/boe; USD9.8/boe; and
USD7.0/boe, respectively;
- Annual capex around BRL3.1 billion over 2025-2027;
- Dividend payout ratio of 25% of net income as of 2026.
RATING SENSITIVITIES
Factors That Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- The Watch Positive will be removed if the acquisition is not
successfully completed.
Factors That Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- The IDRs will be upgraded upon the closing of the acquisition.
Liquidity and Debt Structure
Fitch believes PRIO will be able to secure funding for the
acquisition and roll over short-term maturities at competitive
cost. The agency estimates that the company needs to raise at least
BRL12,6 billion in 2025-2026 to maintain sound liquidity. PRIO's
comfortable reserve life and high operating efficiency should
continue to support its strong access to domestic and international
funding to roll over its debt, despite the recent drop in oil
prices.
In December 2024, PRIO's debt totaled BRL21.0 billion (or BRL19.5
billion excluding the fair value adjustment of currency swaps). It
was mainly composed of bank loans (39%), debentures (38%), secured
notes (18%) and M&A payables (5%). Although the cash balance of
BRL4.0 billion covered 3.0x the short-term debt, the company needs
to manage BRL8.1 billion of debt coming due in 2026, including the
USD600 million rated notes.
Issuer Profile
PRIO is a Brazilian oil and gas company, focused on operating and
developing offshore mature fields. PRIO Forte is PRIO's most
relevant subsidiary and Petrorio Lux is a funding vehicle that
incorporates the trading activity. PRIO has no controlling
shareholder.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
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 Recovery Prior
----------- ------ -------- -----
Prio Forte S.A. Natl LT AAA(bra) Affirmed AAA(bra)
senior
unsecured Natl LT AAA(bra) Affirmed AAA(bra)
senior
unsecured Natl LT AAA(bra) Affirmed AAA(bra)
PRIO Luxembourg
Holding S.A.R.L LT IDR BB Rating Watch On BB
senior secured LT BB Rating Watch On BB
PRIO S.A. LT IDR BB Rating Watch On BB
LC LT IDR BB Rating Watch On BB
Natl LT AAA(bra) Affirmed AAA(bra)
===============
C O L O M B I A
===============
COLOMBIA: Moves to Join China's Belt and Road
---------------------------------------------
Lina Vanegas at AFP News reports that Colombia's president said he
intends to sign an accord to join Beijing's Belt and Road
Initiative during an upcoming China trip, a move sure to damage
already frayed relations with Washington.
Leftist leader Gustavo Petro said he would sign a "letter of
intent" to join the pact when he meets his Chinese counterpart Xi
Jinping face-to-face in the coming days, according to AFP News.
The Belt and Road Initiative is a central pillar of Xi's bid to
expand his country's economic and political clout overseas, the
report notes.
For more than a decade it has provided investment for
infrastructure and other large-scale projects around the world,
offering Beijing political and economic leverage in return, the
report relays.
Until now Colombia has been one of the United States' closest and
most steadfast trade and security partners in Latin America, the
report discloses.
But the arrival of Colombia's first leftist president and the
tariff-pocked second term of US President Donald Trump have put the
relationship on ice, the report says.
The two leaders have sparred openly on social media over
deportations and traded tit-for-tat tariff threats, the report
notes.
On January 26, Petro denied entry to two US military planes
carrying hundreds of deported Colombians, the report relays.
A furious Trump responded by imposing tariffs of 25 percent on
Colombian products, to which Bogota replied in kind before backing
down and sending its own planes to bring home the migrants, the
report discloses.
Petro has since spoken about the need to steer Colombia's trade
towards China, but the announcement is the first major move in that
direction, the report relays.
Chinese officials in Bogota have been pressing Petro's government
to join the pact before he leaves office next year, the report
says.
According to the report, Petro indicated that the letter of intent
would not be binding: "Future governments will decide if this
intention becomes a reality."
But Colombia's signature will come as major boost to Beijing in its
battle for influence with the United States, the report notes.
It comes just months after Panama announced its withdrawal from the
initiative, after fierce US pressure, the report says.
Colombian business groups expressed shock at Petro's move, the
report relays.
"Does Colombia want to do this right now? In exchange for what?"
asked Bruce Mac Master, president of the National Association of
Colombian Businesspeople, the report notes. "What justification is
there from the point of view of today's international strategy? How
does it affect the relationship with our trade allies who buy most
of our exports?"
The United States is Colombia's largest trading partner, but
imports from China recently outpaced those from the United States,
the report discloses.
Javier Diaz, president of the National Association of Foreign
Trade, described Petro's decision as "inconvenient," the report
says.
The date of Petro's visit to China has not yet been announced
officially, notes the report.
As reported in the Troubled Company Reporter on Aug. 7, 2024, Fitch
Ratings has affirmed Colombia's Long-Term Foreign Currency Issuer
Default Rating (IDR) at 'BB+' with a Stable Rating Outlook.
=============
J A M A I C A
=============
JAMAICA: NIR Climbed to USD5.9 Billion in April
-----------------------------------------------
RJR News reports that the Bank of Jamaica is reporting that the
country's net international reserves climbed by US$73.2 million to
approximately US$5.9 billion in April.
This is up from $5.8 billion in March, according to RJR News.
The increase was due to a US$74 million spike in its foreign
assets, the report notes.
The country's foreign liabilities also climbed marginally from
US$40.8 million to US$41.6 million during the period under review,
the report says.
Remittances Decline
In the meantime, the central bank said net remittances fell to
US$2.9 billion during the fiscal year 2024-2025 compared with $3.1
billion during the previous year, the report relays.
The BOJ says this was due to a fall in inflows to US$3.1 billion
and outflows to US$212.5 million, compared with inflows of US$3.37
billion and outflows of US$233.6 million for the previous period,
the report adds.
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
=====================
FIGUEROA TELEPHONE: Taps Hatillo Law Office as Legal Counsel
------------------------------------------------------------
Figueroa Telephone Construction Inc. seeks approval from the U.S.
Bankruptcy Court for the District of Puerto Rico to employ Hatillo
Law Office, PSC as its legal counsel.
The firm will advise the Debtor of its powers and duties in the
continued operation of its business and management of its
property;
prepare applications, reports and other legal papers; and provide
other legal services in connection with the Debtor's Chapter 11
case.
The hourly rates of the firm's counsel and staff are as follows:
Jaime Rodriguez-Perez, Esq. $250
Paralegals $50
Law Clerks $50
The firm received a retainer of $8,000 from the Debtor.
Jaime Rodriguez-Perez, Esq., a member of Hatillo Law Office,
disclosed in a court filing that the firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Jaime Rodriguez-Perez, Esq.
Hatillo Law Office, PSC
P.O. Box 678
Hatillo, PR 00659
Telephone: (787) 262-4848
Email: hatillolawoffice@yahoo.com
About Figueroa Telephone Construction Inc.
Figueroa Telephone Construction Inc. specializes in the
construction and maintenance of telecommunication systems,
including both aerial and underground installations. The Company's
services encompass fusion and splicing of fiber optic networks, as
well as the construction and installation of handholes and manholes
for cables.
Figueroa Telephone Construction Inc. sought relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 25-01506) on
April 2, 2025. In its petition, the Debtor reports total assets of
$499,203 and total liabilities of $1,131,80.
The Debtor is represented by Jaime Rodriguez Perez, Esq. at HATILLO
LAW OFFICE, PSC.
*********
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.
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