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250527.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 Tuesday, May 27, 2025, Vol. 26, No. 105 Headlines A R G E N T I N A ARGENTINA: Economy Grew Less Than Expected in March TELECOM ARGENTINA: Sells Debt Amid Telefonica Takeover Scrutiny B R A Z I L BANDES: Fitch Affirms 'BB/B' Issuer Default Ratings, Outlook Stable BANRISUL: Fitch Affirms 'BB-' LongTerm IDRs, Outlook Stable BRAZIL: Stablecoins Stoke Volatility in Capital Flows BRDE: Fitch Affirms 'BB' LongTerm IDRs, Outlook Stable GENERAL SHOPPING: Fitch Affirms 'CC' LongTerm IDRs YINSON BORONIA: Fitch Affirms 'BB+' Rating on Senior Secured Notes E C U A D O R BOLIVARIANO DPR: Fitch Affirms 'BB-' Rating on 2024-1 Notes J A M A I C A JAMAICA: BOJ Projects Minimal Initial Impact of US Tariffs JAMAICA: Seeks to Raise $5 Billion via Benchmark Investment Notes P U E R T O R I C O LUCENA DAIRY: Seeks to Sell Aguadilla Property LUCENA DAIRY: To Sell Hatillo Property to Steven M. Fenosik - - - - - ================= A R G E N T I N A ================= ARGENTINA: Economy Grew Less Than Expected in March --------------------------------------------------- Manuela Tobias at Bloomberg News reports that Argentina's economy grew less than expected in March as the country braced for a new program with the International Monetary Fund. Economic activity rose 5.6 percent from the same month a year ago, compared with the median estimate of 6.5 percent, according to government data published, according to Bloomberg News. On the month, activity fell 1.8 percent after a 0.8 percent rise in February, Bloomberg News notes. In March, market volatility spiked Argentina’s monthly inflation to 3.7 percent on the expectation that a new IMF program would bring along a 10 percent peso devaluation, Bloomberg News relays. But that never happened and instead, as the government insisted, the peso has strengthened within the bands. Monthly inflation cooled to 2.8 percent in April, Bloomberg News discloses. South America's second-largest economy has been showing consistent signs of momentum after two quarters of contraction exacerbated by Milei's austerity policies in the first half of 2024, Bloomberg News relays. Between October and December, exports, government and consumer spending and capital expenditures led more-than-expected quarter-on-quarter growth, Bloomberg News notes. The IMF granted Argentina a US$20-billion financing package on April 11, with US$12 billion upfront that allowed them to lift crucial capital restrictions and relax currency controls, the foremost impediments to the country’s sustained growth, Bloomberg News discloses. Economists surveyed by the Central Bank in April estimate Argentina will grow 5.1 percent in 2025, Bloomberg News adds. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Javier Milei is the current president of Argentina after winning the November 19, 2023 general election. He succeeded Alberto Angel Fernandez in the position. Argentina has the third largest economy in Latin America. The country's economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. In March 2022, the International Monetary Fund (IMF) approved a 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) -- with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further 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. Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. The upgrade reflects the launch of a new IMF program, among other things. S&P Global Ratings, in February 2025 lowered its local currency sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and its national scale rating to 'SD' from 'raB+'. Moody's Ratings, in January 2025, raised Argentina's local currency ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1 from Caa3. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. TELECOM ARGENTINA: Sells Debt Amid Telefonica Takeover Scrutiny --------------------------------------------------------------- Kevin Simauchi at Bloomberg News reports that Telecom Argentina SA tapped international debt markets following its acquisition of Telefonica SA's local unit, a deal that has stoked fierce opposition from President Javier Milei's government. The company sold US$800 million of bonds due in 2033, according to people familiar with the matter, according to Bloomberg News. The notes priced at 98.862 cents on the dollar with a 9.5 percent yield, the people added, asking not to be identified because they are not authorised to speak publicly, Bloomberg News notes. The cash proceeds will be used to pay some of the US$1.17 billion in loans the company took out to finance the purchase of the Spanish carrier's Argentina unit, Bloomberg News relays. However, Milei's team has scrutinised the purchase, prompting regulators to demand Telecom refrain from carrying out any type of legal, corporate or commercial act that implies consolidation with Telefónica for up to six months, Bloomberg News discloses. Authorities and competitors have argued that the takeover may be a breach of anti-monopoly rules, Bloomberg News says. Milei said in late February that the merger would leave Telecom with about 70 percent of Argentina's telecommunications industry, Bloomberg News notes. The company hired Deutsche Bank Securities Inc, Banco Bilbao Vizcaya Argentaria SA, Citigroup Inc, JPMorgan Chase & Co and Banco Santander SA to arrange the bond sale, Bloomberg News discloses. Telecom's forray into capital markets follows a string of dollar-debt offerings by Argentine companies on the back of optimism over South America’s second-largest economy, with traders cheering Milei's moves to lift a series of currency-market regulations as part of a US$20-billion programme with the International Monetary Fund, Bloomberg News discloses. Bloomberg News relays that Pluspetrol SA launched a US$450-million debt sale, its first one abroad, following its acquisition of Exxon Mobil Corp’s assets in the country. Additional details suggests that the oil driller’s notes will carry a yield of around 8.75 percent, down from earlier pricing guidance of 8.875 percent, Bloomberg News adds. As reported in the Troubled Company Reporter-Latin America, Fitch Ratings, on May 19, 2025, assigned a 'B' rating with Recovery Rating of 'RR3' to Telecom Argentina S.A.'s proposed issuance of up to USD500 million senior unsecured notes, expandable to USD1.0 billion. The notes mature in 2033. The proceeds will be used mainly to prepay in whole or in part the existing loans associated with the acquisition of Telefonica Móviles Argentina S.A (Telefónica Argentina), among others uses. =========== B R A Z I L =========== BANDES: Fitch Affirms 'BB/B' Issuer Default Ratings, Outlook Stable ------------------------------------------------------------------- Fitch Ratings has affirmed Banco de Desenvolvimento do Espirito Santo S.A.'s (Bandes) Long-Term Local and Foreign Currency Issuer Default Ratings (IDRs) at 'BB' and Short-Term Local and Foreign Currency IDRs at 'B'. The Rating Outlook is Stable. In addition, Fitch has affirmed Bandes' Shareholder Support Rating (SSR) at 'bb' and Long-Term National Rating at 'AAA(bra)'/Outlook Stable. Key Rating Drivers Ratings Driven by Shareholder Support: Bandes' IDRs and National Ratings are primarily influenced by its Shareholder Support Rating (SSR) and the anticipated support from its main shareholder, the Espirito Santo state government. Fitch considers Bandes a key player in the state's development strategy, significantly contributing to the local economy by offering loans and onlending to Corporate, SMEs and state municipalities. High Support Propensity: In Fitch's view, the shareholder's propensity to support to Bandes, if needed, is high. This reflects the bank's strategic role and importance as a development bank in Espirito Santo. Fitch views group regulation of the bank relative to the financial capacity of Espirito Santo as a significant factor for Bandes' rating. Since the regulator is very active monitoring the bank's processes and imposes limitations regarding funding options on Brazilian development banks, Fitch believes there is no regulatory limitation on the state providing support to Bandes. Fitch also considers in its assessment Bandes' relatively manageable size, high reputational risk to the state, high level of operational integration between the state and Bandes, recent support track record and that the bank is a state-owned institution. No VR: Fitch does not assign Bandes a Viability Rating as its business model is entirely dependent on the support of Espirito Santo. Fostering Regional Economic Growth: Bandes is dedicated to advancing and enhancing government initiatives aimed at developing the regional economy. This is achieved by providing financing options to SMEs, corporations and municipalities, with a particular emphasis on technology-focused investments. Bandes play an integral role in supporting the state economy by managing government-created funds. Client Credit Constitutes Key Risk: Client credit is Bandes's key rating risk, accounting for 72% of its risk-weighted assets (RWA). In 2024, the top 10 clients made up a moderate 36% of the total credit, up from 25% in 2023. This increase is due to a greater focus on industrial companies compared to agribusinesses. Fitch believes that, like other development public banks, Bandes' strategies and objectives may be shaped by the political directives of its shareholder. Financial Performance Moderately Influences Ratings: Loans classified in the D-H categories have decreased in recent years from persistently high levels in 2018-2019. D-H/gross loans fell to 11.1% from 14.8% in 2023, 24.2% in 2022 and 35.5% in 2019. Additionally, NPLs over 90 days were low at 1.3% in 2024 (1.8% in 2023), indicating that new credit concessions have also performed well. Good Profitability Ratios: The bank has good profitability ratios. In 2024, the operating profits/RWA ratio stood at 5.9% compared 9.0% in 2022 and the four-year-end average of 7.0%. Solid Capitalization: The bank remains strongly capitalized, supported by the state government and maintains sufficient liquidity. Bandes' regulatory capital ratio was 43.3% at YE 2024. Improving on New Sources of Funding: As a development bank, Bandes' funding sources are limited compared with commercial banks. Its credit portfolio is largely financed by equity and deposits, mainly from the Espirito Santos or loans from official entities, such as Banco Nacional de Desenvolvimento e Social (BNDES). Bandes aims to increase and diversify its funding, including credit from international development banks, as BID. Development credit letters (LCDs) are a new possible funding source. The issuance backing is calculated at 6.5% of the equity determined in the balance sheet of the previous fiscal year, and the total balance of LCDs should not exceed 25% of the bank's equity. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade IDRs, National Ratings and SSR - A deterioration of Fitch's view of the State of Espirito Santo's creditworthiness; - A deterioration on Fitch's view of the State of Espirito Santo's propensity to support Bandes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade IDRs, National Ratings and SSR - Fitch's improved view of the State of Espirito Santo's creditworthiness; - Fitch's improved view of the State of Espirito Santo's propensity to support Bandes. Public Ratings with Credit Linkage to other ratings Bandes' SSR and IDRs are linked to the credit quality of its parent, Espirito Santos. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Banco de Desenvolvimento do Espirito Santo S.A. LT IDR BB Affirmed BB ST IDR B Affirmed B LC LT IDR BB Affirmed BB LC ST IDR B Affirmed B Natl LT AAA(bra) Affirmed AAA(bra) Natl ST F1+(bra) Affirmed F1+(bra) Shareholder Support bb Affirmed bb BANRISUL: Fitch Affirms 'BB-' LongTerm IDRs, Outlook Stable ----------------------------------------------------------- Fitch Ratings has affirmed Banco do Estado do Rio Grande do Sul S.A.'s (Banrisul) Long-Term Foreign Currency and Local Currency Issuer Default Ratings (IDR) at 'BB-'. Fitch has also affirmed the bank's National Long-Term Rating at 'AA+(bra)'. The Rating Outlook on the Long-Term IDRs and National Rating is Stable. Fitch has in addition affirmed Banrisul's Viability Rating (VR) at 'bb- and Shareholder Support Rating (SSR) at 'bb-', and Banrisul´s Short-Term Foreign Currency and Local Currency IDRs at 'B' and National Short-Term Ratings at 'F1+(bra)'. Key Rating Drivers VR and SSR aligned: Banrisul's IDRs are driven by its intrinsic strength, even though its VR and SSR are aligned. The VR reflects the stability of the bank's business profile and its moderate risk appetite, with risk controls comparable to major banks. Banrisul operates as a commercial bank, serving both companies and individuals, and maintains an adequate financial profile. As a subnational government-owned entity, Banrisul focuses on providing financial services and credit offerings to state and municipal workers, as well as supporting companies investing in the State of Rio Grande do Sul. The National Ratings follow Fitch's assessment of the credit quality of the State of Rio Grande do Sul. Resilient Business Profile: Fitch upgraded Banrisul's business profile score to 'bb' from 'bb-' reflects the growth in its total operating income (TOI) and, moreover, demonstrates the resilience of the bank's franchise, which, despite the recent stressful environment, managed to keep all its business lines growing. Banrisul has a stable business profile and offers a wide range of financial products and services and this is translated in a TOI of USD1.238 billion for the average of 2021—2024. However, there is regional concentration, with over 90% of its credit originating in the south, mainly from the State of Rio Grande do Sul. The ratings also reflect adequate management quality and stable strategies. The role of the bank is to support the state's economic and social development. Well-Balanced Risk Profile: Banrisul has a moderate risk appetite, with risk controls in line with major banks. Loans to individuals accounted for most of the total portfolio, in 2024 and 1Q25, and those are predominately in the form of lower-risk payroll-backed loans. Most of the lending to companies are secured with various forms of collateral. There is concentration in the State of Rio Grande do Sul, but lending concentration by clients is low. Adequate Asset Quality: Fitch upgraded Banrisul's asset quality score to 'b+' from 'b' reflects the slight improvement of asset quality indicators. Even after the floods that occurred in the Southern Region, the bank maintained good levels of collateral, and its indicators, according to the new perspective of Resolution 4966, remained at good levels when compared to its peers. Fitch considers asset quality adequate. The 90-day Non Performance Loan (NPL) ratio corresponded to 2.2% of total loans in 1Q25 compared with 2.4% a year earlier and 1.7% at YE 2022. Impaired loans, in the 'D-H' risk range, totaled 6.8% 2024, compared with 7.0% in the four-year average (2021-2024). The stage 3/total loans was 4.8% in March 2025, and the coverage for this stage was 64.1%. Stabilization of Profitability: Fitch revised Banrisul's earnings and profitability outlook from 'b+' negative to stable, reflecting the bank's stabilized profitability ratios in 2024, which remained satisfactory at 1.6% in Q1 2025. The operating profit to risk-weighted assets (RWAs) was approximately 1.7% in 2024, consistent with the four-year average (2021-2024) of 1.7%. Satisfactory Capitalization, Capitalization ratios remain adequate, the common equity Tier 1 (CET1) capital ratio was reported at 12.8% at 1Q25 and 13.8% in 2024. This variation is mainly explained by the increase in RWA, either due to credit portfolio growth or adjustments to comply with Resolution 4966. Fitch's projections indicate that CET1 ratios are expected to range between 13%-14% for 2025 and 2026. Stable, Diversified Funding and Liquidity: Fitch upgraded Banrisul's funding and liquidity score to 'bb' from 'bb-'. One of Banrisul's strengths is its stable and diversified funding base, with clients maintaining stable savings accounts and time deposits. Banrisul proved to be a safe haven for local depositors, showing an 26% growth in customer deposits during 2024 and increasing its market share to 45% in time deposits in the State of Rio Grande do Sul. The bank's loans/deposits ratio was at a conservative level of 71.8% at 2024 compared with 72.6% in the four-year average (2021-2024). Liquidity is adequate, while the bank's policy of minimum cash is conservative. Most of the deposits are stable time deposits. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A sustained decline in the operating profits/RWAs ratio average below 1.5% and increase in the four-year average of the impaired loan ratio above 10.0%; - A sustained deterioration in the bank's CET1 ratio below 12%; - Any negative change in Fitch's view of the credit of the State of Rio Grande do Sul's operating and economic situation, given the bank's strong presence and concentration in this state; - A downgrade of the sovereign rating of Brazil would result in a similar action on the bank's Long-Term IDRs; - If the VR were to be downgraded from the current level, then the downside on the IDRs would be limited to the level indicated by the bank's SSR, currently at 'bb-' due to the potential support from the State of Rio Grande do Sul. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Although not likely, due to the sovereign's Stable Outlook and current fiscal and economic issues, an increase in the SSR above the bank's VR could lead to a positive rating action; - Considering Banrisul's current credit profile, the bank's VR is unlikely to be upgraded if the sovereign's ratings are upgraded. However, over the medium-term, an improvement in the operating environment combined with a sustained reduction in the bank's impaired loan ratio below 4.5% and increase in the bank's CET1 ratio above 16%, could be positive for creditworthiness. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS Banrisul's subordinated notes, which are eligible as Tier 2 capital and due in 2031, are rated at 'B'. These subordinated notes are rated two notches below its VR of 'bb-'. The notching is driven by the notes' high expected loss severity. No notching for non-performance is applied because coupons are not deferrable, and the write-off trigger is close to the point of non-viability. Fitch therefore believes that the incremental non-performance risk is not material from a rating perspective. OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - The subordinated debt rating will be downgraded if Banrisul's VR is downgraded. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - The subordinated debt rating will be upgraded if Banrisul's VR is upgraded. VR ADJUSTMENTS The VR has been assigned in line with the implied VR. The Earnings and Profitability score of 'b+' has been assigned below the 'bb' category implied score due to the following adjustment reason: Earnings Stability (negative). Public Ratings with Credit Linkage to other ratings Banrisul´s SSR and National Ratings are driven by a Credit Assessment of Estado do Rio Grande do Sul. ESG Considerations Fitch has revised Banrisul's ESG Relevance Score to '3' from '4' for Exposure to Environmental Impacts, due to Banrisul's exposure to the state of Rio Grande do Sul, which recently suffered from catastrophic risks; from looding however, the impact was very low on the bank's credit profile. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Banco do Estado do Rio Grande do Sul S.A. LT IDR BB- Affirmed BB- ST IDR B Affirmed B LC LT IDR BB- Affirmed BB- LC ST IDR B Affirmed B Natl LT AA+(bra) Affirmed AA+(bra) Natl ST F1+(bra) Affirmed F1+(bra) Viability bb- Affirmed bb- Shareholder Support bb- Affirmed bb- Subordinated LT B Affirmed B BRAZIL: Stablecoins Stoke Volatility in Capital Flows ----------------------------------------------------- globalinsolvency.com, citing Reuters, reports that the surge in popularity of U.S. dollar-backed stablecoins as a way of transferring money abroad is increasing the volatility of Brazilian capital flows, Brazil's central bank deputy governor said. Brazilians' crypto asset usage has surged over the past two to three years, with around 90% of the flow linked to stablecoins - digital money pegged to leading currencies like the U.S. dollar - its central bank estimates, according to globalinsolvency.com. About Brazil Brazil is the fifth largest country in the world and third largest in the Americas. Luiz Inacio Lula da Silva won the 2022 Brazilian general election. He was sworn in on January 1, 2023, as the 39th president of Brazil, succeeding Jair Bolsonaro. In October 2024, Moody's Ratings upgraded the Government of Brazil's long-term issuer and senior unsecured bond ratings to Ba1 from Ba2, the senior unsecured shelf rating to (P)Ba1 from (P)Ba2; and maintained the positive outlook. S&P Global Ratings raised on Dec. 19, 2023, its long-term global scale ratings on Brazil to 'BB' from 'BB-'. Fitch Ratings affirmed on Dec. 15, 2023, Brazil's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB' with a Stable Outlook. DBRS' credit rating for Brazil was last reported at BB with stable outlook at July 2023. BRDE: Fitch Affirms 'BB' LongTerm IDRs, Outlook Stable ------------------------------------------------------ Fitch Ratings has affirmed Banco Regional de Desenvolvimento do Extremo Sul's (BRDE) Long-Term Local and Foreign Currency Issuer Default Ratings (IDRs) at 'BB' and Short-Term Local and Foreign Currency IDRs at 'B'. Fitch has also affirmed BRDE's National Long-Term Rating at 'AAA(bra)' with a Stable Rating Outlook and National Short-Term Rating at 'F1+(bra)'. The Rating Outlook for the IDRs is Stable. Key Rating Drivers Shareholder Support Drives Ratings: BRDE's IDRs and National Ratings are based on Fitch's expectation of support from the bank's shareholders, the states of Parana, Santa Catarina and Rio Grande do Sul. This is indicated by the bank's Shareholder Support Rating (SSR) of 'bb', which is in line with Parana IDRs of 'BB'/Outlook Stable. Fitch does not publicly rate Rio Grande do Sul and Santa Catarina. However, the creditworthiness of all three states strongly influences BRDE's ratings. The absence of dividend payments, BRDE's public development mandate, and legal-structural ties reinforce expectations of timely and sufficient support. Additionally, Fitch believes that the local regulator would likely provide support to BRDE if needed, due to the backing of its member states. High Propensity to Support: The three shareholder states maintain high reputational and strategic alignment with BRDE's operations. Fitch believes that, even under fiscal constraints, the states would be incentivized to provide support due to BRDE's role in executing regional policy and financing subnational infrastructure. The regulator's accommodation for extraordinary credit relief measures during 2024 further underlines the institutional commitment to BRDE's policy role. Regional Policy Role: BRDE continues to play a central role in long-term regional development, channeling resources to SMEs, cooperatives, municipalities, and strategic sectors such as agriculture, infrastructure, innovation, climate resilience, and clean energy. The bank remains one of BNDES's largest intermediaries in the South, while also scaling operations with multilaterals and launching new thematic credit lines. The institution's ability to maintain record disbursement levels amid adverse economic events underscores its operational relevance. Strategic Role Reinforced: BRDE strategic role continues to expanded beyond traditional credit intermediation, with BRDE increasingly acting as a structurer and syndicator in thematic and blended finance operations. The bank has cultivated relationships with a broad range of partners, including BNDES, multilaterals, and market-based investors, enabling the mobilization of funding under both sovereign-backed and non-sovereign modalities. No VR Assigned: Fitch does not assign BRDE a Viability Rating, as its business model is largely determined by its policy role and its ratings are entirely determined by Fitch's assessment of the support the bank would receive from the the states of Parana, Santa Catarina and Rio Grande do Sul. Resilient Profitability: Profitability proved resilient in 2024, with operating profit to risk-weighted assets at 2.3%, despite elevated provisioning and one-off external shocks, including regional flooding. BRDE reached a nominal disbursement record of nearly BRL 6 billion in 2024, continuing to fulfil its development mandate. Provisions on restructured exposures increased but remained aligned with expected-loss logic and were comfortably absorbed by pre-impairment earnings. The bank's capacity to manage earnings volatility through conservative provisioning and disciplined cost of risk is credit supportive. Well-Managed Asset-Quality: Asset quality metrics remain sound despite macroeconomic and climate-related pressure. The impaired loans ratio rose modestly to 3.4% at end-2024 (from 2.9% in 2023), largely due to flood-related deferrals (8.6% of the portfolio). Credit risk is mitigated by a high share of real collateral—particularly fiduciary alienation—and strengthened contractual enforcement via cross-default clauses. The bank maintains an assertive legal recovery framework, and judicial processes have become more efficient. Structural Funding Diversification Gains Traction: BRDE continues to reduce historical dependence on BNDES, with the institution accounting for approximately 53% of 2024 disbursements—down from over 90% in prior years. The bank has increased access to multilaterals and completed inaugural issuances of "Letra de Crédito do Desenvolvimento" (LCD) and "Letra Financeira" (LF), raising nearly BRL 684 million and broadening its domestic investor base. Fitch views these efforts as structurally positive for funding resilience, while liquidity remains conservatively managed, supported by asset-liability matching and holdings of sovereign securities. Strong Capitalization: Fitch considers BRDE's capital position adequate to absorb moderate stress scenarios without eroding support capacity, with a Common Equity Tier 1 (CET1) ratio of 17.5% at end-2024. Internal thresholds target a floor of 14%, with preferred levels above 16% to preserve buffer against credit or operational volatility. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - As BRDE's ratings are driven by the SSR, they can be downgraded if one or more of its shareholders' creditworthiness deteriorates. - There may also be a downgrade if Fitch perceives a deterioration of the propensity of the controlling states to support BRDE. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An improvement of Fitch's view of the creditworthiness of the three shareholders states. - An improvement of Fitch's view of the three shareholders' propensity to support BRDE. - The National Scale rating cannot be upgraded, as it is at the maximum level of the scale. Public Ratings with Credit Linkage to other ratings The banks ratings are driven by the support from the shareholders Paraná State, Rio Grande do Sul State and Santa Catarina State ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Banco Regional de Desenvolvimento do Extremo Sul (BRDE) LT IDR BB Affirmed BB ST IDR B Affirmed B LC LT IDR BB Affirmed BB LC ST IDR B Affirmed B Natl LT AAA(bra) Affirmed AAA(bra) Natl ST F1+(bra) Affirmed F1+(bra) Shareholder Support bb Affirmed bb GENERAL SHOPPING: Fitch Affirms 'CC' LongTerm IDRs -------------------------------------------------- Fitch Ratings has affirmed General Shopping e Outlets do Brasil S.A.'s (GSB) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'CC' and the Long-Term National Scale Rating at 'CC(bra)'. Fitch has also affirmed General Shopping Investment Limited's senior secured notes due in 2026 at 'CC' with a Recovery Rating of 'RR4' and subordinated perpetual notes at 'C'/'RR6'. Fitch has affirmed General Shopping Finance Limited's unsecured perpetual notes at 'C'/'RR6'. The issuances are fully and irrevocably guaranteed by GSB. GSB's ratings reflect an elevated credit risk profile as a combination of its compromised business base and unrecoverable leverage profile. The company's limited cash flow generation is not commensurate with its unsustainable capital structure, highlighted by high indebtedness, material foreign exchange (FX) mismatch, interest deferrals on its perpetual subordinated notes and poor unencumbered asset pool. Key Rating Drivers Compromised Business Model: GSB's business model has weakened following a material asset transfer by its shareholders to a real estate investment fund in 2019. This transaction substantially diminished cash flow generation and increased creditor exposure to a narrower range of performing assets. At YE 2024, GSB's asset base comprised ownership in 15 properties with a gross leasable area (GLA) of only 82,278 sq m, a significant decrease from approximately 200,000 sq m before the transfer. The five largest malls comprise more than 70% of GLA. Rental income accounted for 34% of gross revenues, while service exploitation represented 66%. This revenue distribution deviates from the predominant structure observed in the company's main peers. Unrecoverable Capital Structure: Fitch views GSB's financial leverage as unrecoverable despite a favorable trend in revenues, which poses significant risks to its credit profile. At YE 2024, net adjusted leverage stood above 20x and the net loan-to-value (LTV) ratio exceeded 100%. Both will remain high as the company has material exposure to FX risk and will continue deferring interest payment on its perpetual subordinated notes. This does not constitute an event of default under the indenture but results in interest accrual. Accumulated deferred interest surpasses BRL700 million. The debt profile is primarily composed of perpetual USD notes and GSB's net equity is negative. Total adjusted debt amounted to BRL1.7 billion at YE 2024, consisting of BRL834 million in subordinated perpetual notes (with 50% equity credit), BRL615 million in unsecured perpetual notes, BRL57 million in secured notes due 2026, and BRL197 million in secured local debt. All EBITDA is generated in Brazilian reais, while roughly 90% of its total debt is denominated in U.S. dollars. Tight Cash Flow: Operating cash flow is limited and GSB relies on asset sales to address interest and debt principal. Fitch projects EBITDA in the BRL70 million to BRL80 million range for 2025/2026. The BRL145 million cash at YE 2024, benefited by sale of stakes, along with EBITDA generation should allow it to face its financial obligations in 2025. However, a shortfall in performance against the base case may deplete the remaining headroom. The base case includes outflows of BRL75 million from interest and BRL10 million of capex plus debt amortization of BRL62 million. For 2026, GSB will need additional divestitures or funding to rebuild reserves and address higher debt maturities. Poor Financial Flexibility: GSB has deployed its unencumbered asset base, hindering the issuance of new secured debt, while the likelihood of raising unsecured debt is low. Fair value of properties was BRL814 million in December 2024, of which only BRL36 million are unencumbered. The unencumbered assets/unsecured debt ratio is low at 0.03x. Equity Treatment Rationale: The subordinated perpetual notes qualify for 50% equity credit as they meet Fitch's criteria about deep subordination, with an effective maturity of at least five years, full discretion to defer coupons for at least five years and limited events of default. These are key equity-like characteristics. Equity credit is limited to 50% given the hybrid's cumulative interest coupon, a feature considered more debt-like in nature. ESG - Management Strategy and Governance Structure: GSB has a track record of recurring operational and debt restructuring processes in recent years due to challenges in implementing business strategy and maintaining competitive positions within its key markets. GSB's below-average execution of its strategy has contributed to a materially weaker operational performance and unsustainable capital structure. GSB's owners have a strong influence upon management, which has resulted in decisions related to the company's operational and financial strategies that have been made to the detriment of its creditors. Peer Analysis GSB's 'CC' rating reflects its weakened business base, unsustainable financial leverage, negative FCF profile, poor unencumbered assets pool and aggressive financial policy, which compares negatively to its regional peers. GSB's ratings are well below Latin American shopping mall operator peers Parque Arauco S.A. (BBB/Stable), IRSA Inversiones y Representaciones S.A. (B-/Stable), ALLOS S.A. (AAA(bra)/Stable), Iguatemi S.A. (AAA(bra)/Stable), and Multiplan Empreendimentos Imobiliarios S.A. (AAA(bra)/Stable). Key Assumptions - Steady-owned GLA; - Occupancy rate close to 95%; - Annual investments of BRL10 million; - No dividend payments. Recovery Analysis Fitch applies a bespoke approach to recovery for issuers rated 'B+' and below, using the higher of going concern (GC) and liquidation estimates to enterprise valuation. The recovery analysis assumes that GSB would be liquidated in bankruptcy based on the expectation that its investment properties (BRL270 million assuming a 70% discount on it to reflect a likely distressed sale of assets) would be greater than the enterprise value as a GC (BRL243 million). The GC enterprise value assumes an EBITDA 50% below the one reported in 2024 to reflect the company's operational performance when facing a distress scenario and an enterprise value/EBITDA multiple of 5x. The USD8.9 million secured notes due in 2026 have been assigned a Recovery Rating of 'RR4'. The bespoke analysis indicated the potential for higher recovery; however, Fitch capped the ratings at 'RR4' in accordance with its "Country Specific Treatment of Recovery Rating Criteria," which caps recovery ratings in Brazil at 'RR4' due to concerns about issues such as creditors' rights during a debt restructuring or the consistent application of the rule of law. The unsecured perpetual notes and the subordinated perpetual notes have been rated one notch down for the IDR to indicate below average or poor recovery prospects in the event of a default. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A downgrade may occur if, in Fitch's judgment, a default or default-like process has begun which would be represented by a 'C' rating; - Formally filing for bankruptcy protection. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Material improvement in the company's liquidity and financial leverage through some combination of the following actions: equity injection, asset sales with limited impact on cash flow generation, and lower FX exposure. Liquidity and Debt Structure As of March 31, 2025, GSB had BRL116 million of readily available cash and total adjusted debt, considering the 50% equity credit for the subordinated perpetual notes, of BRL1.6 billion. Upcoming debt amortizations are BRL49 million from April to December 2025, BRL98 million (including USD8.9 million of secured notes) in 2026, and BRL16 million in 2027. GSB's EBITDA interest coverage ratio should remain weak, at or below 1x. Issuer Profile GSB is a Brazilian shopping mall developer and operator. As of March 2025, it managed 15 projects with a GLA of 82,278 sq m. Summary of Financial Adjustments - Fitch includes additional/amortization of tax installments in FFO; - Fitch applies 50% equity credit on the subordinated perpetual notes. 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 GSB has an ESG Relevance Score of '5' for management strategy due to its track record of recurring operational and debt restructuring processes due to challenges the company has faced in implementing its strategy and maintaining competitive positions within its key markets. GSB's below-average execution of its strategy has contributed to a materially weaker operational performance and unsustainable capital structure. This has a negative impact on the credit profile and is highly relevant to the rating. GSB has an ESG Relevance Score of '5' for its governance structure due to the strong influence of GSB's owners upon management, which has resulted in decisions related to the company's operational and financial strategies that have been made to the detriment of its creditors. This has a negative impact on the credit profile and is highly relevant to the ratings. GSB has an ESG Relevance Score of '4' for group structure, reflecting complexity, transparency and related-party transactions, which has a negative impact on the credit profile and is relevant to the ratings in conjunction with other factors. GSB has an ESG Relevance Score of '4' for financial transparency due to the poor quality of financial disclosures, which has a negative impact on the credit profile and is relevant to the ratings 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 Prior ----------- ------ -------- ----- General Shopping Investment Limited Subordinated LT C Affirmed RR6 C senior secured LT CC Affirmed RR4 CC General Shopping Finance Limited (GSF) senior unsecured LT C Affirmed RR6 C General Shopping e Outlets do Brasil S.A. LT IDR CC Affirmed CC LC LT IDR CC Affirmed CC Natl LT CC(bra) Affirmed CC(bra) YINSON BORONIA: Fitch Affirms 'BB+' Rating on Senior Secured Notes ------------------------------------------------------------------ Fitch Ratings has affirmed the senior secured notes issued by Yinson Boronia Production B.V. at 'BB+'. The Rating Outlook remains Stable. The notes are collateralized by a charter agreement and the related proceeds from the operations of the Anna Nery floating-production storage and offloading (FPSO) vessel. Entity/Debt Rating Prior ----------- ------ ----- Yinson Boronia Production B.V. (Project Anda) Yinson Boronia Production Senior Secured Notes 98584XAA3 LT BB+ Affirmed BB+ Transaction Summary The proceeds of this transaction were used to refinance the original funding of the floating-production storage and offloading (FPSO) unit, Anna Nery, which operates in the Marlim Field in the post-salt layer of the Campos Basin, off Brazil. The transaction is backed by a first-priority mortgage on the vessel and cash flows from the underlying charter agreement between Yinson Boronia Production B.V. (SPV), as owner and issuer, and Petroleo Brasileiro S.A. (Petrobras, BB/Stable), as offtaker. The agreement is in place until April 2048. The financial structure considers a fully amortizing transaction. Fitch's rating addresses the timely payment of interest and timely payment of principal on a semiannual basis until legal final maturity in July 2042. KEY RATING DRIVERS Offtaker Obligation Strength Exceeds Petrobras' IDR: The offtaking party in the charter agreement is Petrobras, the state-owned oil company of Brazil. Fitch rates Petrobras in line with the Brazilian sovereign (BB/Stable). The charter contract between the operator and an offtaker of an FPSO is a strategic long-term contract to produce hydrocarbons in a specific area, since FPSOs are custom-built. The contract's long-term nature (25 years), the low cost against cash flow generation, and the complexity of the vessel make the contract and use of the vessel highly strategic to Petrobras. Even in distressed environments, these contracts and obligations are likely to be honored and can be differentiated from other corporate debt obligations. The charter contract may be considered an operational/net revenue cost to Petrobras necessary for continuing business operations, producing low break-even cash flow generation. For these reasons, Fitch considers the strength of the offtaker's payment obligation one-notch above Petrobras' credit quality at 'BB+'. Sovereign Event Risk; Transfer and Convertibility (T&C) Mitigated: The transaction's reserve account of six months of debt service and offshore payment obligations offer sufficient protection to mitigate potential transfer and convertibility (T&C) restrictions and exceed Brazil's Country Ceiling of 'BB+' by one notch. However, event risk is linked to the operating environment, as Petrobras, a state-owned enterprise, may be subject to political interference. This limits the uplift over Brazil's Long-Term IDR to two notches, resulting in a rating of 'BBB-'. The transaction's current limiting factor is Fitch's assessment of the offtaker's payment obligation strength, assessed at 'BB+'. Experienced Operator Mitigates Risk: The operator, Yinson Production, is a global player in building and managing FPSOs and operates in Brazil, Ghana, Vietnam, Nigeria, and Malaysia. Yinson entered the Brazilian market four years ago and has two vessels contracted to come online in the next several years. A bankruptcy of Yinson could expose the transaction to a potential termination of the underlying charter and services agreement. Fitch assesses Yinson's credit quality to be near investment grade and as a result, Yinson does not limit the transaction's rating. Strong Financial Metrics: Fitch's cash flow analysis has assessed the repayment of the fully amortizing debt, assuming timely interest and principal payments under a nondeferrable sculpted amortization schedule and a cash trapping condition should the debt service coverage ratio (DSCR) fall below 1.15x. Fitch's base case DSCR is currently 1.24x, which does not pose a constraint to the transaction rating. At the 'BB' stress case it drops to 1.16x, which remains sufficient to support the rating. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - As described in Key Rating Drivers above, the transaction's rating is linked to Petrobras' IDR, with an uplift of one notch. Therefore, a Petrobras downgrade could trigger a downgrade of the notes. The Outlook for both ratings is currently Stable. - The operator, the other counterparty, could constrain the rating. Although the operator's credit quality is assessed to be near investment grade and currently does not limit the rating, it could pose a constraint if its credit quality deteriorates. - The cash flow analysis results in a sufficient output and does not currently constrain the transaction rating. Although the DSCR and ultimate debt repayment depend on uptime, maintenance days, opex and CPI, none of these variables are likely to materially affect the rating under Fitch's stress case. - Any changes in these variables will be analyzed in a rating committee to assess the possible impact on the transaction rating. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - The rating is influenced by transaction counterparties, the operating environment and credit metrics. An upgrade of Brazil (which would likely also result in an upgrade of Petrobras) or an upgrade of the operator may result in an upgrade of the transaction rating. However, Fitch does not anticipate such a scenario as the rating has a Stable Outlook. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. 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. ============= E C U A D O R ============= BOLIVARIANO DPR: Fitch Affirms 'BB-' Rating on 2024-1 Notes ----------------------------------------------------------- Fitch Ratings has affirmed the ratings assigned to the series 2024-1 notes issued by Bolivariano DPR Limited at 'BB-'. The Rating Outlook is Stable. Entity/Debt Rating Prior ----------- ------ ----- Bolivariano DPR Limited 2024-1 LT BB- Affirmed BB- Transaction Summary The future flow program is backed by existing and future flow U.S. dollar-denominated diversified payment rights (DPRs) originated by Banco Bolivariano C.A. (Bolivariano). The majority of DPRs are processed by designated depository banks (DDBs), which have executed account agreements (AAs), irrevocably obligating them to make payments to an account controlled by the program agent. Fitch's ratings address the timely payment of interest and principal on a quarterly basis. KEY RATING DRIVERS Future Flow (FF) Rating Driven by Originator's Credit Quality: The rating of this FF transaction is tied to the credit quality of the originator, Bolivariano. On Oct. 31, 2024, Fitch affirmed Bolivariano's Long-Term (LT) Issuer Default Rating (IDR) at 'CCC+'. The bank's IDR is driven by the bank's intrinsic creditworthiness, as reflected in its 'ccc+' Viability Rating (VR). The ratings are capped by Fitch's assessment of the operating environment (OE) score of 'ccc+', given that Ecuador's sovereign rating and broader OE considerations highly influence the bank's credit profile. GCA Supports Notching Differential: Fitch uses a going concern assessment (GCA) score to gauge the likelihood that the originator of an FF transaction will stay in operation throughout the transaction's life. Fitch assigned a GCA score of 'GC2' to Bolivariano based on the bank's systemic importance within a highly concentrated market. The assigned score allows for a maximum uplift of four notches above the IDR of the originator. Notching Uplift From IDR: The 'GC2' allows for a maximum four-notch rating uplift from the bank's LT IDR pursuant to Fitch's FF methodology. Considering the bank's current LT IDR, the assigned rating is at the maximum notching differential allowed by Fitch's FF methodology for an originator with a GCA score of 'GC2'. The four-notch uplift is supported by the transaction's strong projected coverage levels, FF debt relative to the bank's funding ratios that are well below the thresholds outlined in Fitch's "Future Flow Securitization Rating Criteria," and Fitch reserving the maximum notching uplift for transactions with originators at the lower end of the rating scale, such as Bolivariano. Moderate Future Flow Debt: Fitch estimates Bolivariano's FF debt represents approximately 2.2% of its total funding and 13.6% of non-deposit funding when considering the $100 million DPR transaction and utilizing nonconsolidated financials as of December 2024. Fitch considers the ratio of FF debt to the bank's overall liabilities small enough to allow for the FF transaction rating to receive the maximum uplift indicated by the GCA score. Coverage Levels Commensurate with Rating: Fitch views the transaction's debt service coverage ratio (DSCR) as more than sufficient for the assigned rating. The minimum projected DSCR is approximately 236.5x when considering the maximum periodic debt service over the life of the program and DDB flows over the past five years, while excluding what could be considered nonrecurring DPR flows. Sovereign/Diversion Risks Reduced: The structure mitigates certain sovereign risks by collecting cash flows offshore until the collection of periodic debt service amounts. Fitch believes diversion risk is partially mitigated by the AAs that have been executed by the DDBs. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - The transaction rating is sensitive to changes in Bolivariano's credit quality. Currently, the transaction is receiving the maximum notching uplift from Bolivariano's LT IDR. Therefore, a deterioration in Bolivariano's credit quality by one notch would trigger a downgrade of the transaction rating from its current level; - The transaction rating is sensitive to increases in the FF debt relative to the bank's funding ratios. If either ratio were to increase beyond the thresholds outlined in Fitch's "Future Flow Securitization Rating Criteria," it could result in a downgrade of the transaction rating from its current level; - The transaction rating is sensitive to the DPR business line's performance and its ability to continue operating, as reflected by the GCA score. Changes in Fitch's view of the bank's GCA score can lead to a change in the transaction's rating. The minimum expected quarterly DSCR when considering DDB flows for the past five years is approximately 236.5x; therefore, it should be able to withstand a significant decline in cash flows absent other issues. However, significant declines in flows could lead to a negative rating action. A rating committee will analyze any change to these variables to assess the potential impact on the transaction rating; - No company is immune from the economic and political conditions of its home country. Political risks and the potential for sovereign interference may increase as a sovereign's rating is downgraded. However, the underlying structure and transaction enhancements mitigate these risks to a level consistent with the assigned rating. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - The main constraint to the transaction rating is the originator's rating and Bolivariano's OE. If the bank's LT IDR is upgraded by more than one notch from its current rating, Fitch would consider an upgrade to the rating of the transaction from its current level. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS The FF ratings are driven by the credit risk of Banco Bolivariano C.A. as measured by its Long-Term IDR. 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. ============= J A M A I C A ============= JAMAICA: BOJ Projects Minimal Initial Impact of US Tariffs ---------------------------------------------------------- RJR News reports that the Bank of Jamaica's Monitory Policy Committee projects that the initial impact of rising US tariffs on prices in Jamaica will be minimal. BOJ Governor Richard Byles says in assessing the near-term outlook, the Monitory Policy Committee contemplated the implications for the Jamaican economy, the policies that have been implemented by the US administration to date, and in so doing looked at several scenarios, according to RJR News. From this exercise, the bank's view is that the first round impact of the increase in US tariffs on Jamaican prices will not be significant, the report notes. He was addressing the quarterly Monitory Policy Report press conference, 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. JAMAICA: Seeks to Raise $5 Billion via Benchmark Investment Notes ----------------------------------------------------------------- RJR News reports that the Jamaican government will be borrowing $4 billion from the public on May 28 to help finance this year's budget. The funds will be raised through a benchmark investment note that matures in nearly 10 years, according to RJR News. Investors will receive an annual interest rate of 7.5 per cent, with a minimum purchase of $1,000, the report notes. The interest earned will be taxed at a rate of 25 per cent, the report discloses. On the same day, the government will also seek to raise an additional $1 billion through another benchmark investment note, the report relays. That offering will pay a higher interest rate of 8.25 per cent per year and carries the same minimum investment and tax rate, 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 ===================== LUCENA DAIRY: Seeks to Sell Aguadilla Property ---------------------------------------------- Lucena Dairy Inc. and its affiliate, Luna Dairy Inc., seek approval from the U.S. Bankruptcy Court for the District of Puerto Rico, to sell Property, free and clear of liens, interests, and encumbrances. The Debtors finally were able to reach an agreement with secured creditor Condado 4 LLC which put an end to multiple controversies. and agreed to the treatment provided under the Debtors' Amended Plan. The Debtors have filed a Second Amended Consolidated Joint Plat of Reorganization and provides. The Plan provides for the sale of two lots of land, at Aguadilla Puerto Rico, Lot Nos. 99 and 4,344, which are part of Condado's collateral. The parties have agreed to sell two lots of land for $1,300,000. The Property has an appraisal value of approximately $1,010,000. Pursuant to the Stipulation, Condado will carve out $200,000 to be provided to the Debtors' for the purchase of additional cattle or for operational needs to preserve the operations of the Debtors. The Properties were owned by Mr. and Mrs. Jorge Lucena, debtors' shareholders, who transferred to the title to Lucena Dairy. The Debtors believe that the sale of the Properties, will be of substantial benefit to the estate and creditors. About Lucena Dairy Inc. Lucena Dairy Inc. is engaged in the production of cows' milk and other dairy products and in raising dairy heifer replacements. Lucena Dairy sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. P.R. Case No. 23-02835) on September 8, 2023. Its affiliate, Luna Dairy Inc., filed Chapter 11 petition (Bankr. D. P.R. Case No. 23-02837) on September 9, 2023. Jorge Lucena Betancourt, president, signed both petitions. At the time of the filing, Lucena Dairy reported $1,905,560 in assets and $11,464,130 in liabilities while Luna Dairy reported $4,102,639 in assets and $11,316,130 in liabilities. Judge Edward A. Godoy oversees the cases. Carmen D. Conde Torres, Esq., at C. Conde & Associates, represents the Debtors as legal counsel. LUCENA DAIRY: To Sell Hatillo Property to Steven M. Fenosik ----------------------------------------------------------- Lucena Dairy Inc. and its affiliate, Luna Dairy Inc., seek approval from the U.S. Bankruptcy Court for the District of Puerto Rico, to sell a Hatillo property, free and clear of liens, interests, and encumbrances. The Debtors' Property is the Lot No. 2393 located in Hatillo, Puerto Rico, with the purchase value of $75,000,000. The Debtor and Condado 4 LLC filed a Stipulation for treatment of Condado's Amended Claim wherein the parties have agreed for the treatment to be provided to Condado. The proceeds from the sale will be turned over to Condado since the Property serves as collateral to Condado's claim. The Debtors have been able to market the Property to Steven M. Fenosik and Sylka I Lucena Retirement Plan Trust and have been able to obtain a purchase offer of $5,000. The Debtors believe that the sale of the Property will be of substantial benefit to the estate and creditors since the sale would provide a payment to Condado. In the instant case, the Purchaser is willing to pay more than the appraisal value of the real estate. About Lucena Dairy Inc. Lucena Dairy Inc. is engaged in the production of cows' milk and other dairy products and in raising dairy heifer replacements. Lucena Dairy sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. P.R. Case No. 23-02835) on September 8, 2023. Its affiliate, Luna Dairy Inc., filed Chapter 11 petition (Bankr. D. P.R. Case No. 23-02837) on September 9, 2023. Jorge Lucena Betancourt, president, signed both petitions. At the time of the filing, Lucena Dairy reported $1,905,560 in assets and $11,464,130 in liabilities while Luna Dairy reported $4,102,639 in assets and $11,316,130 in liabilities. Judge Edward A. Godoy oversees the cases. Carmen D. Conde Torres, Esq., at C. Conde & Associates, represents the Debtors as legal counsel. ********* 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 * * *