250521.mbx

250521.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, May 21, 2025, Vol. 26, No. 101 Headlines A R G E N T I N A PAMPA ENERGIA: Fitch Affirms 'B-' LongTerm IDRs, Outlook Stable PETROLERA ACONCAGUA: Fitch Gives 'B-' LongTerm IDR, Outlook Stable B R A Z I L INDEAL CONSULTORIA: Chapter 15 Case Summary C O L O M B I A BARRANQUILLA: Fitch Alters Outlook on 'BB' IDRs to Positive FRONTERA ENERGY: S&P Affirms 'B+' ICR & Alters Outlook to Negative D O M I N I C A N R E P U B L I C [] DOMINICAN REPUBPLIC: Coffee Generates US$5MM Business Interest E C U A D O R ECUADOR: Launches Bold Law to Crush Criminal Economy J A M A I C A JAMAICA: Micro Poultry Farmers to Access $200MM At Steep Rate P E R U PERU: Extends Emergency Powers in Crime-Ridden Districts S T . K I T T S A N D N E V I S ST. KITTS & NEVIS: Economy is Facing Significant Challenges - - - - - ================= A R G E N T I N A ================= PAMPA ENERGIA: Fitch Affirms 'B-' LongTerm IDRs, Outlook Stable --------------------------------------------------------------- Fitch Ratings has affirmed Pampa Energia S.A.'s (Pampa) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'B-'. Fitch has also affirmed Pampa's senior unsecured notes at 'B' with a Recovery Rating of 'RR3'. The Rating Outlook for the Foreign and Local Currency IDRs is Stable. Pampa's Long-Term Foreign Currency IDR is constrained by Argentina's 'B-' Country Ceiling, which limits the IDR by incorporating transfer and convertibility risk. The ratings reflect Pampa's strong operating performance despite the country's economic challenges. The ratings incorporate Pampa's exposure to Compania Administradora del Mercado Mayorista Eléctrico (CAMMESA), which manages wholesale electricity market transactions in Argentina. It relies on government subsidies to cover the cost of the electricity generated. This adds an additional layer of risk to Pampa's operations since its revenues partially depend on payments from CAMMESA. Key Rating Drivers Strong Operator; Weak Operating Environment: Pampa is an integrated energy company in Argentina (CCC+) with significant market shares across its business segments: 15% in power generation, 9% in exploration and production (E&P), and between 94% and 100% in petrochemicals. Pampa's operations are concentrated in in Argentina, which has been characterized by high inflation, unemployment, high cost of capital, capital controls, and an unstable regulatory environment. Southern Energy S.A., in which Pampa holds a 20% stake, recently announced the final investment decision (FID) for two 20-year charters of the Hilli Episeyo and MKII floating liquefaction vessels, with capacities of 2.45 million and 3.5 million tons per annum (MTPA), respectively. This project aims to export liquefied natural gas (LNG), which could enhance Pampa's business diversification. Shale Oil Shift: Rincon de Aranda (RdA) will be Pampa's flagship asset for the unconventional oil segment, and Fitch anticipates that the development of this asset will be key to diversifying the production portfolio of the E&P segment. This segment is currently concentrated in gas production and is closely tied to CAMMESA. The increasing oil production of the block, with breakeven costs estimated at $40, will be primarily aimed at the export market, which would improve Pampa's financial profile by enhancing the access to hard currency. As of May 2025, the production from the RdA block reached 6,500 oil barrels per day (bbl/d) compared to 900 bbl/d in 1Q25, as the company tied in two pads to production, highlighting the potential of the asset. Fitch estimates production total oil production will average 10,500 bbl/d by FY2025. Negative FCF: Fitch estimates FCF to be negative between 2025 and 2027 as the company deploys a capex plan of close to USD2.9 billion over this period. Most of the capex will be focused on the development of the Rincon de Aranda shale oil project. The company plans to fund the capex with cash on hand and cash flows from the power generation business which benefits from a strong contractual position. Fitch projects FY2025 CFO to be close to USD418 million and USD679 million in FY2026. Adequate Leverage Profile: Pampa has an adequate leverage profile, with EBITDA gross leverage estimated to be close to 2.5x and net leverage of 1.5x in FY2025, assuming EBITDA of USD810 million and debt close to USD1.9 billon, with the power generation and the E&P segment representing roughly 50% of EBITDA each. LTM 1Q25 gross leverage was 2.1x and net leverage was 0.8x, while EBITDA was USD798 million. Fitch anticipates Pampa's EBITDA interest coverage will remain around 5.0x on average during 2025-2027. Peer Analysis Pampa's ratings are constrained by Argentina's 'B-' Country Ceiling. Pampa's generation business compares with those of AES Argentina Generacion S.A. (CCC)and MSU Energy S.A. (CCC). In integrated energy, Pampa's closest peer is Capex S.A. (B-/Stable). Pampa and Central Puerto S.A. (not rated) are power producers with the largest market share in Argentina by installed capacity in 2024 with 15% each, followed by AES Argentina at 7%. In addition, Pampa is a leading developer in the sector and has added 1.2GW of installed capacity since 2018. Capex is the company's closest peer in Argentina and, like Pampa, is an integrated oil and gas producer and generation company. Fitch expects Capex's gross leverage to be higher than Pampa's, averaging 2.5x over the rating horizon. Key Assumptions - Daily oil production average of 10,500 bbl/d in 2025, 23,000 bbl/d in 2026 and 37,000 bbl/d in 2027; - Daily gas production average of 75,000 boed in 2025-2027; - Average realized natural gas price of USD3.00 per million Btu, flat over the rated horizon under Plan Gas; - Average realized Brent crude oil price of $65 per barrel in 2025-2027 and $60 per barrel in 2028; - Installed year-end capacity of 5,471 MW; - CAMMESA payments received within 45 days; - Cumulative capex of USD2.9 billion over the 2025-2027 period; - No dividends. Recovery Analysis The recovery analysis assumes that Pampa would be a going concern (GC) in bankruptcy and that it would be reorganized rather than liquidated. GC Approach: - A 10% administrative claim; - The GC EBITDA is estimated at USD500 million. The GC EBITDA estimate reflects Fitch's view of a sustainable, post-reorganization EBITDA level upon which Fitch bases the valuation of Pampa; - EV multiple of 5.0x. Argentina is assigned to Group D, as per the Country Groups specified in Fitch's "Country-Specific Treatment of Recovery Ratings Criteria," where the assigned Recovery Ratings are capped at 'RR4'. Fitch believes the recovery prospects for Pampa are higher than the expected recovery of 31%-50% for the 'RR4' band. This is based on Fitch's bespoke recovery analysis for each individual issuer as well as precedents of debt exchange offerings driven by capital control restriction put in place by the Argentine Central Bank. In all cases, the calculated recovery was higher than the expected recovery of 51%-70% for the 'RR3' band, but Fitch capped the Recovery Ratings at 'RR3' to reflect a less predictable range of outcomes. A Recovery Rating of 'RR3' supports a one-notch uplift for the instrument rating from the issuer's FC IDR. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A downgrade of Argentina's Country Ceiling; - Significant delays in payments that negatively affect working capital, liquidity and leverage, or revision of existing contracts with CAMMESA; - Amendments to capital control rules that weaken the company's ability to access capital and refinance debt; - Significant deterioration of credit metrics, with total debt/EBITDA of 4.5x or more. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An upgrade in Argentina's Country Ceiling; - Increased EBITDA relative participation from the O&G business segment; - Hard-currency debt service coverage ratio of at least 2.0x over the rating horizon; - Contracted exports with high quality off-takers, or PPAs with non-regulated customers, with a long-term tenure and adequate legal protections to avoid interference from the federal government. Liquidity and Debt Structure Fitch views Pampa's liquidity as strong. The company reported consolidated cash and equivalents of USD361 million and marketable securities of USD673 million, while having short-term debt of USD353 million at 1Q25. The combined USD1.0 billion in cash and equivalents provide the company with liquidity to cover interest expense over the rating horizon. The company's debt and interest expense are predominately in U.S. dollars, and Fitch's rating case assumes it will continue to access the official exchange to service its debt. The company benefits from CAMMESA's improved payment terms, currently around 45 days, which is in line with the contractually agreed upon 42 days. Issuer Profile Pampa is the largest independent energy integrated company in Argentina. Pampa and its subsidiaries operate in Argentina, focusing on electricity generation and transmission, oil and gas exploration and production, refining, petrochemicals, and hydrocarbon commercialization and transportation. Criteria Variation The criteria variation applies to the section titled "When an Instrument Enters a Distressed or Defaulted State" in the "Country-Specific Treatment of Recovery Ratings Criteria," where the criteria allows for the assigned Recovery Rating to be above the defined cap for distressed issuers when Fitch has reason to believe that recoveries in an individual case would be consistent with a higher recovery rating. Fitch has applied a variation to extend this analytical approach to all Argentine-based corporates rated 'B-', reflecting their highly speculative credit profiles and their operations within a distressed operating environment (Argentina, Foreign Currency IDR CCC+). 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 ----------- ------ -------- ----- Pampa Energia S.A. LT IDR B- Affirmed B- LC LT IDR B- Affirmed B- senior unsecured LT B Affirmed RR3 B PETROLERA ACONCAGUA: Fitch Gives 'B-' LongTerm IDR, Outlook Stable ------------------------------------------------------------------ Fitch Ratings has published Petrolera Aconcagua Energia S.A. (PAESA) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) of 'B-'. The Rating Outlook is Stable. Fitch has also published PAESA's proposed senior secured notes a 'B-' rating with a Recovery Rating of 'RR4'. Net proceeds will be used to pay local debt, capex and other transaction expenses. PAESA produces under 15,000 barrels of oil equivalent per day (boed), constraining it to the low end of the 'B' rating category. The ratings incorporate negative FCF over the next three years due to demanding capex. The company has a comfortable proved developed producing (PDP) reserve life index (RLI) of 7.4 years, which is high compared to peers in the same category. The Stable Outlook reflects Fitch's expectation that PAESA will deleverage below 4.0x by FY27. Completion of proposed liability management will enhance the company's debt maturity profile and improve financial flexibility. Key Rating Drivers Limited Production Profile: PAESA's ratings are constrained by its production of less than 15,000 boed, placing it at the low end of the 'B' rating category. In 2023, PAESA signed an agreement with Vista Energy Argentina S.A.U. (BB-/Stable) to acquire conventional areas. Under the agreement, Vista retains 40% of reserves and production until PAESA delivers a cumulative four million barrels of oil and 300 million cubic feet of natural gas. Completing this agreement could boost PAESA's production by 55% to 12,000 boed by the end of 2027, compared to 2024 levels. PAESA had 1P reserves of 29 Mmboe and a RLI of 10.2 years as of FY 2024. Fitch expects PAESA to achieve around 12,000 boed in production by FY 2027 while maintaining an average 1P RLI of 10 years. An upgrade to the next rating category would require production above 45,000 boed. Negative FCF: Fitch estimates that FCF will be negative over the next three years as PAESA executes a capital expenditure plan totaling USD260 million. The plan includes USD86 million in remaining payments under an agreement with Vista Argentina. Fitch assumes that the company will require external funding to complete this plan. Nonetheless, PAESA's relatively high PDP reserve life offers significant operational flexibility. This allows the company to manage production levels and respond to market conditions without the immediate need for new exploration activities. Leverage Profile: Fitch estimates that gross leverage will be close to 6.0x in FY2025 as PAESA executes its capital expenditure plan over the next four years and then trend to below 4.0x by the end of FY 2027. This projection assumes total debt will be at or below USD350 million, with EBITDA reaching approximately USD60 million in FY 2025 and around USD110 million in FY 2027. Fitch expects total debt per 1P reserves to be close to USD12/boe in FY 2025 and EBITDA/interest paid to average 2.0x over the rating horizon. Beneficial Integration: PAESA, through its subsidiary Aconcagua Energia Servicios S.A. (AENSSA), has internalized drilling, pulling, and workover services, maintaining adequate lifting costs for a conventional focus. Fitch projects extraction-related operating costs to be approximately $19/boe in fiscal year 2025 and then decrease to around 17/boe, reflecting potential economies of scale. This cost efficiency is likely to occur as the company fully capitalizes on sales opportunities following the conclusion of its agreement with Vista Argentina. Peer Analysis PAESA's closest peers are Capex S.A. (B-/Stable) and Petroquimica Comodoro Rivadavia (B-/Stable). These companies have a higher scale of operations and are relatively more diversified, deriving their revenues from energy and electricity, while PCR also benefits from its cement business. PCR's and Capex's electricity revenues are exposed to CAMMESA, which directly reflects sovereign risk. However, PCR's Ecuadorian cash flow, oil exports from Argentina and cash held abroad, cover their hard currency interest expense by 1.5x for the next four years. This mitigates risk from Argentina's challenging economic environment. PAESA's access HC through exports, which represents around 30% of revenues. PAESA's production of 12,000 boed by FY 2027 is lower than PCR's 18,000 boe/d and Capex's 17,500. PAESA's 1P RLI of 10.2 years is higher than both peers. PAESA's gross leverage expected by Fitch to average 4.3x during the rating horizon compared to Capex's 2.8x and PCR's 2.7x. PAESA's senior secured notes are rated one notch below Capex's 'B'/'RR3' and Pampa Energia S.A.'s (Pampa) 'B'/'RR3', as first, PAESA's IDRs are constrain by its operating scale and second, Capex and Pampa's Recovery Ratings are based on a bespoke recovery analysis for each individual issuer as well as precedents of debt exchange offerings driven by capital control restriction put into place by the Argentine Central Bank. In Capex and Pampa cases, the calculated recovery was higher than the Fitch-expected recovery of 51%-70% for the 'RR3' band, but Fitch capped the Recovery Ratings at 'RR3' to reflect a less predictable range of outcomes. Key Assumptions - Fitch's end-of-period and average foreign exchange rate for Argentine pesos to U.S. dollars; - Senior secured issuance of up to USD200 million; - Average working interest production of 8,300boed in 2025-2026; 13,000boed in 2027-2028; - Lifting costs of $19/boe in 2025; average of $17/boe between 2026-2028; - 1P reserve life replacement of at least 100% over the rating horizon; - Fitch's price deck for Brent crude oil per barrel of USD65 between 2025 and 2027; long-term of USD60; - Cumulative capex of USD260 million between 2025-2028; - No dividend payments. Recovery Analysis The recovery analysis assumes that PAESA would be a going concern (GC) in bankruptcy and that it would be reorganized rather than liquidated. GC Approach: - A 10% administrative claim. - The GC EBITDA is estimated at USD100 million. The GC EBITDA estimate reflects Fitch's view of a sustainable, post-reorganization EBITDA level upon which Fitch bases the valuation of PAESA. - Enterprise valuation multiple of 3.0x. With these assumptions, Fitch's waterfall generated recovery computation (WGRC) for the senior secured notes is in the 'RR1' band. However, according to Fitch's Country-Specific Treatment of Recovery Ratings Criteria, the Recovery Rating for corporate issuers in Argentina is capped at 'RR4'. The Recovery Rating for the senior secured notes is therefore 'RR4' with 50% recoveries in a hypothetical event of default. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Inability to successfully execute the senior secured issuance; - A downgrade to the Country Ceiling of Argentina; - Material reduction in PDP reserves below four years due to unsuccessful exploration campaigns; - Sustained EBITDA/Interest paid below 2.0x; - Sustained deterioration of credit metrics to total debt/EBITDA of 5.0x or more; - Weakening of liquidity. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Net production of 45,000 boed while maintaining 1P reserve life of at least seven years; - Sustain total debt to EBITDA of 3.0x over the rating horizon. Liquidity and Debt Structure PAESA's liquidity is limited as it reported a cash balance around USD20 million as of FY24 and had short-term debt maturities close to USD81 million. The senior secured proposed issuance, if successful, will enhance the company's debt maturity profile and the completion of the transaction is a key negative trigger sensitivity of PAESA's ratings. Issuer Profile PAESA is an Argentine independent energy company focused on conventional exploration and production of hydrocarbons. It operates in 14 areas located in the Cuyo and Neuquén basins, extending into the provinces of Mendoza, Río Negro, and Neuquén with conventional production. 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 PAESA has an ESG Relevance Score of '4' for GHG Emissions & Air Quality due to the growing importance of the continued development and execution of the company's energy-transition strategy, which has a negative impact on the credit profile, and is relevant to the rating[s] in conjunction with other factors. 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 ----------- ------ -------- Petrolera Aconcagua Energia S.A. LT IDR B- Publish LC LT IDR B- Publish senior secured LT B- Publish RR4 =========== B R A Z I L =========== INDEAL CONSULTORIA: Chapter 15 Case Summary ------------------------------------------- Chapter 15 Debtor: Indeal Consultoria em Mercados Digitais Ltda. Av. Paulista, 807 Bela Vista - Zip Code 01.311-915 Sao Paulo/SP Brazil Business Description: Indeal Consultoria em Mercados Digitais Ltda. was a Brazilian digital investment company specializing in cryptocurrency operations. The Company was declared bankrupt in 2022 following legal proceedings that identified it as operating a Ponzi scheme, resulting in asset seizures by authorities. Foreign Proceeding: Business Court in the Judicial District of Novo Hamburgo, State of Rio Grande do Sul, Brazil Chapter 15 Petition Date: May 6, 2025 Court: United States Bankruptcy Court District of Columbia Case No.: 25-00168 Foreign Representative: Laurence Bica Medeiros, in his capacity as judicial administrator Av. Dr. Nilo Pecanha, 2900/701-CEP 91330-00 Chacara das Pedras Porto Alegre/RS, Brazil Foreign Representative's Counsel: Kristen E. Burgers, Esq. HIRSCHLER FLEISCHER 1676 International Drive, Suite 1350 Tysons, VA 22102 Tel: (703) 584-8364 Email: kburgers@hirschlerlaw.com Estimated Assets: Unknown Estimated Debt: Unknown A full-text copy of the Chapter 15 petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/RYLDNHA/Indeal_Consultoria_em_Mercados__dcbke-25-00168__0001.0.pdf?mcid=tGE4TAMA =============== C O L O M B I A =============== BARRANQUILLA: Fitch Alters Outlook on 'BB' IDRs to Positive ----------------------------------------------------------- Fitch Ratings has affirmed Distrito Especial Industrial y Portuario de Barranquilla's (Barranquilla) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB'. The Rating Outlook has been revised to Positive from Stable. Fitch has also affirmed Barranquilla's National Long-Term and Short-Term ratings at 'AA(col)' and 'F1+(col)', respectively. The Outlook for the National Long-Term rating was also revised to Positive from Stable. The Positive Outlook reflects the potential improvement of both the risk profile's key risk factors (KRF) and the financial profile assessment under rising tax revenue collection stemming from increases in the gross receipts tax (ICA in Spanish) rates and strong real state property tax (IPU in Spanish) performance. Should Barranquilla be allowed to maintain the ICA rates at their current levels, its financial profile metrics would improve and its lower dependence on national transfers may warrant a reassessment of the revenue robustness KRF to 'Midrange'. This would result in a favorable comparison against higher-rated peers. Fitch will continue to monitor the legal status of the rate hikes and may upgrade the ratings if they prove to be a sustainable source of additional revenue. The outcome of the lawsuits against the rate increases in Barranquilla has not yet been resolved. Fitch's rating case scenario therefore conservatively assumes that the district will have to lower its ICA rates in the future. This results in an average payback ratio of 5.2x, similar to the one foreseen in Fitch's previous review, which is still aligned with a 'aa' assessment. The estimated actual debt service coverage ratio (ADSCR) is around 1.4x, higher than that of the previous review (1.2x), but in the same category range. KEY RATING DRIVERS Risk Profile: 'Low Midrange' Risk Profile - 'Low Midrange': Fitch assesses the district's risk profile at 'Low Midrange', reflecting a combination of KRFs, with four having 'Midrange' attributes and two assessed as 'Weaker'. Revenue Robustness: 'Weaker' Fitch considers the institutional framework for transfer allocation and its evolution to be stable and predictable. However, the sustainability of transfer growth is uncertain, due to the fiscal pressures faced by the central government and the adverse economic environment. Transfers from the sovereign (BB+/Negative) represented in average 51.9% of Barranquilla's operating revenues between 2020 and 2024, which limits the assessment this KRF. Nonetheless, the local economic dynamics are favorable, and the district is implementing fiscal strategies to increase overall collection. Positive revenue trends observed during 2020-2024 have been explained by management and tax policies applied by the local administration. Barranquilla's operating revenue increased by nearly 26.7% in 2024. The entity has been working on strengthening its fiscal framework to increase local tax collections specially the ICA tax rates and improving the fiscal collection in the IPU. Revenue Adjustability: 'Midrange' Barranquilla has discretion to adjust its tax rates, within limits established by the national government. However, the capacity of taxpayers to absorb tax increases is moderate, which could counteract these adjustments. The analysis incorporates Barranquilla's strong socioeconomic profile, per capita value added and its fiscal autonomy. However, the assessment is limited by the sovereign rating, as per the relevant criteria, as well as Fitch's view of taxpayers' ability to afford potential rate hikes, which is somewhat limited compared with international peers. Fitch observes that the district's tax collection has been increasing and rose by about 25.2% on average over 2023 and 2024. Tax collection has been supported partially by progressive increase of the ICA rate. Fitch will monitor if such rates can be sustained in time according to definitive judicial decisions. Expenditure Sustainability: 'Midrange' The Colombian institutional framework establishes that subnational entities are mainly responsible for the provision of the social services of education, health care and potable water. These responsibilities are mainly funded by national transfers (Sistema General de Participaciones, in Spanish). Fitch views them as moderately correlated with the economic cycle and expects stable growth in the mid-term. During 2020-2024, operating expenditure increased by a slower CAGR of 14.6% compared with the 16% rise in operating revenue. Also, operating margins have been stable and increasing around 19.8% on average during the same period. Expenditure Adjustability: 'Midrange' The assessment considers the district's balanced budget rules. Expenditure control rules are defined under Law 617, and the district has a strong track record of enforcement and effectiveness. The Colombian regulatory framework limits the ratio of local and regional governments' (LRGs) operating expenses to their own revenues. In 2023, Barranquilla's ratio was 23% with a limit of 50%, according to data from the Comptroller General's Office of the Republic. The 2024 result is around 26.7%, as calculated by the district and not yet certified by the Comptroller General's Office of the Republic. Fitch's key rating factor considers the district's ratio of capex/total expenditure, and its capacity to finance capex. Barranquilla's level of capex represents around 25.7% of total expenditure on average during 2020-2024 based on its development plan, which has a completion rate of around 90% for a four-year term, as per the district's calculation and the execution of current administrative development plan that started in 2024. Fitch estimates that capex in the midterm could remain high considering additional long-term debt disposals to finance the district's investment plan that continues a focus on strengthening medium and higher education, health and tourism infrastructure. Fitch believes that the district's flexibility to adjust expenditures is moderate, as capex funded with the current balance has been above 11% of totex, according to Fitch's calculations. The level is above 10%, which is the base for a 'Midrange' assessment. Liabilities & Liquidity Robustness: 'Midrange' Fitch views that the Colombian regulatory framework mandates LRGs to generate positive operating results and maintain prudential limits for indebtedness, although the framework is less clear about the treatment of off-balance sheet obligations and unrestricted liquidity management. The district refinanced around 40% of its long-term debt and, in line with the latest rating review, Barranquilla will raise COP2.9 trillion in debt to finance the current administration's development plan, which will end in 2027. This new debt will be mainly raised in international markets and denominated in USD. Fitch will monitor the availability of hedging alternatives and their final terms and conditions. In 2024, Barranquilla did not disburse the amounts it had forecasted because the Ministry of Finance presented more requirements for their registration. Liabilities & Liquidity Flexibility: 'Weaker' The Colombian regulatory framework does not provide emergency liquidity support from the central government to LRGs, which can access short- and long-term credit lines with local banks, which are rated below investment grade. Barranquilla has had unrestricted cash deficits, which in 2024 totaled COP426.3 billion, equivalent to about 19.8% of tax revenues. Fitch considers the tendency to generate a deficit a source of credit risk, as it reflects limitations on the district's ability to maintain available liquidity. Financial Profile: 'a category' According to Fitch's International local and regional government (LRG) rating criteria, Barranquilla is classified as a Type B LRG as it is required to cover its debt service from cash flow on an annual basis. Therefore, the primary metric to assess its financial profile is the payback ratio. Fitch's forward-looking rating case scenario indicates that the payback ratio of net direct risk/operating balance — the primary metric of the financial profile assessment — will reach an average of 5.2x for 2028-2029, which is aligned with a 'aa' assessment. The ADSCR, the secondary metric, is projected at an average of 1.4x for 2028-2029, aligned with a 'bbb' assessment. Barranquilla's Financial Profile assessment considers a one-category override from that suggested by the primary metric due to the secondary metric being three categories lower. Derivation Summary The district's Standalone Credit Profile (SCP) is assessed at 'bb', reflecting a combination of a 'Low Midrange' risk profile and financial profile assessed in the 'a' category under Fitch's rating-case scenario, and by peer comparison with other national peers such as Medellin, Bogotá and other international peers. There are no asymmetric risk considerations or additional rating factors. Therefore, Barranquilla's IDRs are 'BB'. National Ratings Barranquilla's 'AA(col)' national long-term rating corresponds to its 'BB' Long-Term Local Currency IDR and considers local peer comparison. Its 'F1+(col)' national short-term rating is the only one corresponding to the national long-term rating. Debt Ratings The local bond notes up to COP650,000 billion rating is at the same level as Barranquilla's National Long-Term rating at 'AA(col)'. Key Assumptions Risk Profile: 'Low Midrange' Revenue Robustness: 'Weaker' Revenue Adjustability: 'Midrange' Expenditure Sustainability: 'Midrange' Expenditure Adjustability: 'Midrange' Liabilities and Liquidity Robustness: 'Midrange' Liabilities and Liquidity Flexibility: 'Weaker' Financial Profile: 'a' Asymmetric Risk: 'N/A' Support (Budget Loans): 'N/A' Support (Ad Hoc): 'N/A' Rating Cap (LT IDR): 'N/A' Rating Cap (LT LC IDR) 'N/A' Rating Floor: 'N/A' Quantitative assumptions - Issuer Specific Fitch's rating case is a "through-the-cycle" scenario, which incorporates a combination of revenue, cost and financial risk stresses. It is based on 2020-2024 figures and 2025-2029 projected ratios. The key assumptions for the scenario include: - tax growth rate close to 5.0% annual average; - transfers grow according to the four-year moving average of the Nation's current revenues growth; - an annual increase in opex aligned with operating revenues, with a floor equal to the inflation rate of the immediately prior year plus a spread, considering a conservative growth rate for salary expenses. This results in an average annual growth of approximately 6.8%; - average net capital expenditure of around COP759.4 billion per year; - average cost of debt of 9.3%, in line with Fitch's estimations for interest rates and credit spreads. - debt levels consider the highest value between the district's borrowing plan and potential borrowing according to a factor close to regulatory limits. Liquidity and Debt Structure At YE 2024, Barranquilla had approximately COP3.2 trillion of direct long-term debt, comprising several loans with commercial and development banks, and issues in the local market. The debt has variable interest rates and moderate exposure to exchange-rate risk (47% of its long-term direct debt is in euros and U.S. dollars), although it has hedges to protect against exchange-rate variations. According to the new administration, for 2025 to 2029, the indebtedness plan incorporates COP2.9 trillion in new debt. Therefore, the debt disbursements included in Fitch scenarios are: COP800 billion in 2025; COP680 billion in 2026; COP880 billion in 2027; and COP540.4 billion in 2028. The rating scenario contemplates the disbursements mentioned above, as well as specific loans that are backed by district revenues and registered by decentralized entities such as Empresa de Desarrollo Urbano de Barranquilla y Región Caribe S.A. (Edubar) and Agencia Distrital de Infraestructura (ADI), which totaled approximately COP993 billion at YE 2024. Fitch considers these as other Fitch-classified debt. Fitch observed limitations in maintaining available liquidity, as Barranquilla has registered unrestricted cash financing deficits over 2020-2024. At YE 2024 the unrestricted cash deficit was equivalent to around 19.8% of tax revenue. Summary of Financial Adjustments - Cash surplus of previous years is subtracted from capital revenues. - Previous years deficits are subtracted from expenditure. - Some withdrawals from the pension funds are reclassified to pass through transfers from capital revenue. - General adjustments when inconsistencies are identified between in financial statements provided by the issuer and those published. - Total debt repayment includes both short term and long-term debt repayments. - Barranquilla's operating expenditure is based on a Fitch estimate and includes items reported under "investment expenditure" that Fitch believes to be recurring in nature. These include staff and other operating costs of the education sector, subsidies and grants for utilities, health insurance, and transportation, among others. Issuer Profile The Special Industrial and Port District of Barranquilla represents 48.4% of the department of Atlantico's population and contributes 66.4% to the department's GDP. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Payback ratios consistently close to 7.0x, with coverage ratios consistently below 1.2x under Fitch's rating case; - Reassessment to 'Weaker' of one of the KRFs assessed as 'Midrange' which Fitch considers unlikely in the medium term. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Payback ratios consistently close to 5.0x in the scenario horizon with a ADSCR close to 2.0x, or a payback ratio below 5.0x, because of better operating balance performance due to sustainably increased revenue collection; - Reassessment of the Revenue Robustness KRF to 'Midrange' due to a share of transfers to operating revenue consistently below 50% resulting from continued improving tax collection; - Favorable position versus peers. 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 ----------- ------ ----- Distrito Especial Industrial y Portuario de Barranquilla LT IDR BB Affirmed BB LC LT IDR BB Affirmed BB Natl LT AA(col) Affirmed AA(col) Natl ST F1+(col) Affirmed F1+(col) senior unsecured Natl LT AA(col) Affirmed AA(col) FRONTERA ENERGY: S&P Affirms 'B+' ICR & Alters Outlook to Negative ------------------------------------------------------------------ S&P Global Ratings, on May 15, 2025, revised its outlook on Colombia-based oil and gas producer Frontera Energy Corp. to negative from stable and affirmed its issuer credit rating and senior unsecured debt rating on Frontera at 'B+'. Frontera posted a lower reserve replacement ratio level of 45% versus previous years at around 100% (or even above), along with lower proved developed producing (PDP) reserves, which raises business challenges ahead for the company. The company's capital expenditure deployment for 2025 is largely geared toward exploring new wells to increase its 1P reserves, but there is still uncertainty about the recovery of its reserve levels in the next 12 months, coupled with lower international prices. The negative outlook signals the inherent risks associated with the company increasing its reserve replacement ratio and reserve life index to more cushioned or lower risk levels versus other industry peers. The negative outlook reflects challenges ahead for Frontera to restore a higher and healthier reserve base. The company reported a 1P total reserve base of 100.6 million barrels of oil equivalent (boe) by the end of 2024, a decline of 7.4% versus 2023, which translates into a reserve life index (RLI) of about 6.8 years and a reserve replacement ratio (RRR) of 45%. The latter, in S&P's view, is a considerable drop versus previous years, when the company reported 1P RRR near 100% (or above). Additionally, the company's PDP and 1P reserves declined by around 8.0% and 7.5%, respectively, by the end of 2024 versus previous year. The negative outlook also signals prospective vulnerability for the company's business profile if its 1P reserve base does not recover. Moreover, amid the current drop in oil reference prices for the remainder of 2025, pressure on the company's reserve recovery could increase, which in turn, could potentially narrow its future production growth, limiting Frontera's business scale beyond S&P's current expectation. S&P said, "We will continue to monitor the company's wells-exploration capital expenditure (capex) deployment over the next 12 months, which should reflect further evidence of Frontera's ability to grow its 1P reserve base. Additionally, we will monitor the company's capability to recover its RRR to healthier levels (near 100% or even above) as seen in the past. If the company were to be unsuccessful in replacing its reserves at a more consistent pace or evidences a high-risk reserve base compared with other industry peers, this could reflect potential pressure on the company's business profile and therefore on our rating." Frontera credit metrics remains commensurate with its 'B+' credit profile. Frontera ended 2024 and first-quarter 2025 with favorable financial results. The company reached production above 40,000 boepd in both periods, which was within our previous expectation of 40,000-41,000 boepd. Supported by broadly stable production costs, the company reached an EBITDA generation of $475.7 million by the end of 2024 and near $490 million for the last 12 months ended March 31, 2025. This, coupled with broadly stable debt levels, led Frontera to post S&P Global Ratings adjusted gross debt to EBITDA of 1.5x and 1.4x, respectively as of the same time periods, which is commensurate with its current financial profile. S&P said, "After a solid oil price environment in 2024, we are expecting more volatility and economic uncertainty ahead due to the current complex macroeconomic environment. International oil prices had been adjusted downwards for the remainder of 2025 to $65/barrel (bbl) Brent crude oil price and we expect it to recover toward $70/bbl for 2026. Our updated estimate for the company's production volumes of about 42,000 boepd, combined with the estimated prices and broadly stable debt levels, results in projected healthy credit metrics for Frontera. "We are expecting about 0.5x higher leverage by the end of 2025 to near 2.0x, versus 2024 due to the oil price adjustment for the remainder of the year. However, our estimated leverage metrics remain commensurate with Frontera's current credit profile for a 'B+' rating and below the downside trigger of 3.0x. Moreover, we do not envision any short-term debt maturity or significant financial obligation that could pressure liquidity over the next 12 months. "We expect Frontera's liquidity levels to remain adequate, coupled with a comfortable debt maturity profile. Frontera faces no significant debt maturities in the next 12 months, as the company's most sizable debt obligation will come due in 2028 through its outstanding $390 million senior unsecured notes. While the current weak crude oil price environment could translate into lower EBITDA generation, we believe Frontera should maintain stable production volumes of 41,000-43,000 boepd, which could represent an EBITDA generation of around $350 million to $400 million over the next 12 months. This, along with a solid cash balance ($186 million as of March 31, 2025), manageable debt maturities ($20 million -$30 million in the next 12-18 months), and the flexibility to reduce unnecessary capex continues to reflect adequate liquidity for Frontera. "The negative outlook reflects our view that we could downgrade Frontera over the next 12 months if the company is unable to restore its PDP and 1P reserves to higher levels, demonstrating an RRR close to or higher than 100%. "While we expect the company to maintain consistent production of 40,000 boepd (or more) for the next 12 months, if the company's credit metrics deteriorate with gross debt to EBITDA well above 3.0x on a consistent basis, this could also lead to a downgrade." S&P could lower the ratings in the next 12-18 months if: -- The company's reserve replacement ratio keeps falling or does not recover near (or above) 100%; -- Crude oil prices weaken beyond our expectations, pushing the EBITDA margin below 35%-40% on a consistent basis; -- Frontera's production substantially drops beyond S&P's expectation, materially denting its cash flows; -- Leverage metrics weaken, with gross debt to EBITDA above 3.0x on a consistent basis; or -- Frontera's operating cash burn is higher than S&P expects for the next 12 months, pressuring its liquidity position. S&P could revise its outlook on Frontera to stable or raise its ratings if the company: -- Posts a higher RRR near (or above) 100%; -- Raises its production rate well above S&P's expectation on a consistent basis, substantially improving its cash flows, while keeping its assets diversified by region; and -- The company maintains a gross debt to EBITDA below 1.5x on a consistent bais and adequate liquidity. =================================== D O M I N I C A N R E P U B L I C =================================== [] DOMINICAN REPUBPLIC: Coffee Generates US$5MM Business Interest ----------------------------------------------------------------- Dominican Today reports that ten leading coffee companies from the country, accompanied by the Dominican Republic Export and Investment Center (ProDominicana) and the Dominican Coffee Institute (Indocafe), participated in the Specialty Coffee Expo 2025 international fair, generating interest from investors and reaching business intentions worth US$5,160,300.00. The delegation successfully showcased Dominican coffee's quality and unique flavor to more than 17,000 visitors from 85 countries, highlighting its benefits in more than 370 business meetings held at the George R. Brown Convention Center in Houston, Texas, according to Dominican Today. The companies presented a wide range of green, roasted, and ground coffee, as well as technological solutions for packaging and export, generating strategic approaches with international buyers, distributors, importers, and other industry players, the report notes. Coffee tastings and other exportable products such as cassava bread, cookies, sweets, and Dominican chocolates were also held, the report relays. ProDominicana's executive director, Biviana Riveiro Disla, highlighted that the results reflect the consolidation of Dominican coffee in specialized niches, the report discloses. "This important achievement reaffirms our commitment to the development of the national coffee sector, which has experienced significant growth in both exports and production. The fact that for the first time we have exported more than we import is evidence of the strengthening of our industry," said the official, the report notes. The event, considered the most important in the sector in North America, was attended by ProDominicana authorities led by Biviana Riveiro, INDOCAFE executive director Leónidas Batista Díaz, and Leidy Altagracia Rosario, Consul General of the Dominican Republic in Houston, Texas, United States, the report relays. More than 600 exhibitors participated, along with international competitions, conferences, and specialized workshops that opened new opportunities to expand Dominican coffee in high-value markets, the report says. During the fair, the director of ProDominicana visited key players and welcomed Guillermo Garcia, head of alternative development at the United Nations International Trade Centre (ITC), and representatives of the Cup of Excellence competition to our pavilion, the report discloses. The Dominican presence at the Specialty Coffee Expo also benefited from the collaboration of local companies offering complementary products for tastings, such as Grupo Bocel with its Aviva and pizquitas cookies, Cayenart, Grupo Chidomex (Todus), Heritage Chocolate, Definite Chocolate, and Casa del Coconete, strengthening the country's image as a comprehensive provider of high-end sensory experiences, the report adds. About Dominican Republic The Dominican Republic is a Caribbean nation that shares the island of Hispaniola with Haiti to the west. Capital city Santo Domingo has Spanish landmarks like the Gothic Catedral Primada de America dating back 5 centuries in its Zona Colonial district. Luis Rodolfo Abinader Corona is the current president of the nation. TCR-LA reported in April 2019 that Juan Del Rosario of the UASD Economic Faculty cited a current economic slowdown for the Dominican Republic and cautioned that if the trend continues, growth would reach only 4% by 2023. Mr. Del Rosario said that if that happens, "we'll face difficulties in meeting international commitments." An ongoing concern in the Dominican Republic is the inability of participants in the electricity sector to establish financial viability for the system. Standard & Poor's credit rating for Dominican Republic was raised to 'BB' in December 2022 with stable outlook. Moody's credit rating for Dominican Republic was last set at Ba3 in August 2023 with the outlook changed to positive. Fitch, in December 2023, affirmed the Dominican Republic's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-' and revised the outlook to positive. ============= E C U A D O R ============= ECUADOR: Launches Bold Law to Crush Criminal Economy ---------------------------------------------------- Rio Times Online reports that Ecuador's government unveiled a groundbreaking legislative proposal aimed at dismantling criminal economies linked to internal armed conflict. President Daniel Noboa sent this urgent economic bill to the National Assembly ahead of his four-year term beginning May 24. The "Organic Law Project to Dismantle Criminal Economy" grants police and military forces expanded authority to use force against criminal organizations, according to Rio Times Online. It classifies criminals as "combatants" and allows presidential pardons for security personnel prosecuted during conflict operations, the report notes. The law targets illicit financial flows supporting armed criminal groups through economic measures, the report relays. It creates mechanisms to protect the formal economy, ensure fiscal sustainability in critical zones, and recover lost tax revenue, the report discloses. Assets seized from criminals will fund public forces and government institutions, the report says. Criminal code reforms establish new classifications for membership in organized armed groups, the report relays. Leaders and financiers of these organizations face up to 30 years imprisonment, while members could receive 26-year sentences, the report notes. Ecuador's security situation has deteriorated dramatically. The country now records approximately one murder every hour, with homicide rates skyrocketing from 6 per 100,000 inhabitants in 2018 to 47 per 100,000 in 2023, the report recalls. Duran reported 450 murders last year, while Guayaquil saw 2,320 violent deaths, the report notes. Located between Colombia and Peru, Ecuador has become a major drug trafficking hub, the report relays. Authorities seized 149 tons of drugs between January and July 2024, on track to exceed 2023's total of 219 tons, the report notes. President Noboa has taken aggressive measures against organized crime, deploying over 1,100 security personnel to conflict zones. Human rights organizations have raised concerns about alleged abuses during these operations, the report discloses. The National Assembly must review this urgent bill within 30 days, the report adds. ============= J A M A I C A ============= JAMAICA: Micro Poultry Farmers to Access $200MM At Steep Rate ------------------------------------------------------------- Karena Bennett at Jamaica Observer reports that an audible ripple of discomfort moved through the conference room at the Jamaica Pegasus hotel as Paul Chin, manager for investor relationships at the Development Bank of Jamaica (DBJ), explained that micro poultry farmers are being charged an interest rate of 19 per cent under the bank's newly launched $1-billion financing facility. Speaking at the Caribbean Poultry Association's 8th International Technical Symposium and Exhibition, Chin moved quickly to defend the rate, describing it as a significant improvement over what borrowers typically face in the microfinance space where interest rates can soar as high as 39 per cent, according to Jamaica Observer. "Some might say 19.9 per cent is still high - and yes, it is," Chin acknowledged, speaking to an audience of roughly 250 poultry stakeholders on the opening day of the two-day symposium, the report relays. "But in the microfinance space we're seeing rates that go as high as 39 per cent. What we've done is bring that down significantly while maintaining fast, flexible access to capital - and that's what micro-entrepreneurs care about most," he continued, the report discloses. The DBJ's new poultry financing programme includes $800 million earmarked for large-scale contract farmers and $200 million for micro and backyard operators, the report relays. While small and medium-size borrowers accessing the DBJ's funds through banks benefit from interest rates as low as 7.5 per cent, micro-entrepreneurs must apply through accredited microfinance institutions (MFIs), which are allowed to charge up to 19.9 per cent under the terms of the facility, the report notes. Chin explained that the disparity is rooted in how the microfinance system works, the report relates. Microloans are often short-term, labour-intensive, and higher-risk, requiring weekly follow-ups and extensive borrower support - especially in sectors like poultry farming where informal business practices are common, the report notes. "These loans demand more administrative oversight, and institutions carry much higher risk," Chin told the Jamaica Observer in a follow-up interview. "The pandemic really exposed that. Many barbers, hairdressers, and vendors - typical micro clients - saw their income evaporate overnight during lockdowns. That translated into widespread repayment challenges," the report notes. Despite the pushback, Chin argued that the rate was structured with the poultry industry's dynamics in mind, the report discloses. A typical broiler cycle runs about six weeks, meaning farmers can potentially complete five or six cycles per year, the report says. "A poultry farmer, you can be in and out in six weeks," Chin noted. "And if you look at 19.9 per cent and you break it down in a six-week cycle you see that it is, in fact, affordable. It gets them to where they want because, in their minds, they are in early, they want to be out early. And they do that cycle - they can borrow five times a year if they are able to do five or six cycles of six-week loans in poultry,"the report relays. The facility, introduced at the request of Prime Minister Andrew Holness following the disruption caused by Hurricane Beryl, is part of a wider strategy to strengthen poultry production and ease recurring shortages in the local market, the report notes. The DBJ is also finalising a second $1-billion tranche that will be distributed through approved financial institutions at a blended interest rate of roughly 8.75 per cent, the report says. Chin said the DBJ has already identified a pipeline of $3.5 billion in poultry-related projects and is in active discussions with several banks and farmers, the report notes. "With extended loan tenures of up to 15 years we've built a structure that's sustainable even for borrowers seeking $200 million or more," he said. "We expect this to improve production capacity, stabilise supply, and support Jamaica's poultry export ambitions," he added. 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 E R U ======= PERU: Extends Emergency Powers in Crime-Ridden Districts -------------------------------------------------------- Juan Martinez at Rio Times Online reports that the Peruvian government announced the extension of emergency powers in eight Lima districts and Callao province for another 30 days. This decision continues the exceptional security measures in areas plagued by organized crime, homicides, extortion, and robbery, according to Rio Times Online. The Interior Ministry confirmed the extension through a supreme decree issued, the report notes. The affected districts include Ate, Carabayllo, Comas, Puente Piedra, San Martín de Porres, San Juan de Lurigancho, Villa María del Triunfo, and Villa El Salvador, the report relays. These areas continue to experience significant public safety challenges despite ongoing interventions. Local authorities report persistent criminal activity disrupting public order and threatening citizen security, the report discloses. Under the emergency provisions, the National Police maintains primary responsibility for public order, the report notes. They receive support from the Armed Forces while operating within legal frameworks governing use of force, the report says. This collaboration aims to strengthen territorial control and continue the fight against organized criminal networks, the report relays. The government points to measurable successes since implementing emergency powers in these regions, the report discloses. Authorities have arrested over 15,000 individuals caught committing crimes and apprehended 2,560 people with outstanding warrants, the report relays. Police operations have dismantled 1,131 criminal organizations and seized 703 firearms from illegal possession, the report notes. These enforcement actions have reportedly reduced criminal activity in surrounding districts, the report says. The Interior Ministry emphasized that areas not under emergency declaration will continue receiving regular police patrols and targeted anti-crime operations, the report discloses. Security forces maintain their commitment to delivering "decisive blows against crime" throughout the metropolitan region, the report relays. Peru's security crisis reflects broader challenges facing several Latin American nations, the report discloses. Criminal organizations exploit institutional weaknesses and socioeconomic vulnerabilities to establish operational bases in urban areas, the report says. Contract killings, protection rackets targeting small businesses, and drug trafficking networks have become increasingly common in these districts, the report notes. The emergency measures represent a tactical response to immediate security threats, the report relays. However, experts note that sustainable solutions require addressing underlying factors like poverty, unemployment, and judicial inefficiency, the report discloses. The government faces the challenge of balancing immediate security needs with long-term institutional reforms, the report relays. Local residents express mixed reactions to the extended emergency powers, the report notes. Many welcome increased security presence while others worry about potential civil liberties implications, the report relays. The effectiveness of these measures will likely determine whether they continue beyond this 30-day extension, the report adds. ===================================== S T . K I T T S A N D N E V I S ===================================== ST. KITTS & NEVIS: Economy is Facing Significant Challenges ----------------------------------------------------------- In the context of a moderation of growth following the post-pandemic rebound, the economy is facing significant challenges. The fiscal outlook has notably deteriorated against the background of structurally lower Citizenship-By-Investment (CBI) revenues, and the current account deficit has widened. Public banks are facing long-standing weaknesses, which may have important implications for financial stability and fiscal sustainability, while lending from private banks and credit unions is expanding rapidly. ********* 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 * * *