250605.mbx

250605.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 Thursday, June 5, 2025, Vol. 26, No. 112 Headlines A R G E N T I N A GENERACION MEDITERRANEA: Noteholder Grp Gives Update on 2031 Notes B R A Z I L AZUL SA: Taps Davis Polk as Bankrupty Lawyers in Chapter 11 BRAZIL: Suspends Chicken Imports Over Bird Flu Outbreak OI SA: Fitch Lowers LongTerm IDRs to 'C' Amid Cash Burn C A Y M A N I S L A N D S RYVYL INC: CVI Investments, Heights Capital Report 9.9% Stake D O M I N I C A N R E P U B L I C AEROPUERTOS DOMINICANOS XXI: Fitch Affirms BB+ on Notes Due 2034 DOMINICAN REPUBLIC: Get Accused of Fueling Security Crisis J A M A I C A JAMAICA: BOJ Accepts 292 Bids for 30-day Certificate of Deposit JAMAICA: Manufacturers Urged to Explore Broader Financing Options T R I N I D A D A N D T O B A G O TRINIDAD & TOBAGO: Floods Drive up Market Prices X X X X X X X X LATAM: Tax Revenues Fell in 2023 as Commodity Prices Weakened - - - - - ================= A R G E N T I N A ================= GENERACION MEDITERRANEA: Noteholder Grp Gives Update on 2031 Notes ------------------------------------------------------------------ 11.000% SENIOR NOTES DUE 2031 (REGULATION S CUSIP: P46214AG0, ISIN: USP46214AG00; RULE 144A CUSIP: 36875KAJ0, ISIN: US36875KAJ07) ISSUED BY GENERACIÓN MEDITERRANEA S.A. AND CENTRAL TERMICA ROCA S.A. AND GUARANTEED BY ALBANESI ENERGIA S.A. Cleary Gottlieb Steen & Hamilton LLP, Bruchou & Funes de Rioja, Houlihan Lokey and TAYSA Capital Partners are working with certain holders of GEMSA's Notes. The Group notes GEMSA's May 29, 2025, announcement that it is evaluating its options and intends to present a restructuring proposal in the following weeks. Holders are invited to contact CGSH and/or HL/TAYSA for further information. As reported in the Troubled Company Reporter-Latin America in May 2025, Fitch Ratings downgraded Generacion Mediterranea S.A.'s (GEMSA) Long-Term Local and Foreign Currency Issuer Default Ratings (IDRs) to 'Restricted Default' (RD) from 'C'. Fitch has also affirmed GEMSA's senior secured and unsecured notes co-issued by GEMSA and Central Termica Roca S.A. at 'C' as Fitch expects average recovery prospects. =========== B R A Z I L =========== AZUL SA: Taps Davis Polk as Bankrupty Lawyers in Chapter 11 ----------------------------------------------------------- Yun Park at law360.com reports that a team of lawyers from Davis Polk & Wardwell LLP is leading the Chapter 11 case of Azul SA, one of Brazil's largest airlines, as the company pursues a prearranged plan to cut $2 billion in debt from its balance sheet. About AZUL S.A. Azul SA is Brazil's third-largest airline. The company operates a major air transportation network providing scheduled passenger services across Brazil and to international destinations. Founded in 2008, Azul has grown to become one of Brazil's leading carriers with a focus on domestic routes and connecting previously underserved markets throughout the country. Azul SA and affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-11176) on May 28, 2025. In its petition, the Debtor reports $4.5 billion in assets and $9.6 billion in liabilities. The Debtor is represented by Timothy Graulich, Esq. at Davis Polk & Wardwell LLP. The Debtor's Financial Advisor / CRO is Samuel Aguirre at FTI Consulting Inc. and its Claims Agent is Stretto, Inc. BRAZIL: Suspends Chicken Imports Over Bird Flu Outbreak ------------------------------------------------------- Dominican Today reports that the Dominican Republic and 20 other countries or economic blocs have suspended imports of chicken meat from all of Brazil following the detection of a highly pathogenic avian flu outbreak at a commercial farm in Montenegro, Rio Grande do Sul. In contrast, 11 other countries have limited their bans to the affected region, according to report. Brazil is the world's top chicken exporter, with China - its largest buyer - having already imported over 562,000 tons of chicken in 2024, the report notes. Countries enforcing a nationwide ban include China, the European Union, Mexico, and South Korea, among others, the report notes. Those applying regional restrictions include the UK, Ukraine, and Cuba, while Japan and Saudi Arabia limited bans to the specific municipality, the report relays. These partial bans reflect adherence to the World Organization for Animal Health's regionalization principle, which Brazil's government is actively promoting to minimize broader economic impacts, the report says. The outbreak comes at a challenging time for Brazil's poultry sector, particularly in Rio Grande do Sul, which produces 15% of the country's chicken and is still recovering from severe floods in 2023, the report recalls. The Ministry of Agriculture continues diplomatic efforts, especially with China, to lift full bans and restore exports from unaffected regions, the report adds. 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. OI SA: Fitch Lowers LongTerm IDRs to 'C' Amid Cash Burn ------------------------------------------------------- Fitch Ratings has downgraded Oi S.A.'s Foreign and Local Currency Long-Term Issuer Default Rating (IDR) to 'C' from 'CCC-' and its National Long-Term rating to 'C(bra)' from 'CCC-(bra)'. Fitch has also downgraded Oi's USD655 million super senior secured notes due in June 2027 and USD1.4 billion subordinated secured debt PIK notes due in December 2028 to 'C' with a Recovery Rating of 'RR4' from 'CCC-'/'RR4'. The downgrade reflects Oi's worsening financial situation, highlighted by intensified cash burn beyond Fitch's expectations. To prevent default, the company is increasingly requesting waivers to pay-in-kind (PIK) its coupon obligations. This signals exceptionally elevated credit risk and deteriorating payment conditions for holders of the 2027 bond and V.tal's debentures. These actions may lead to a distressed debt exchange, underscoring Oi's urgent liquidity management efforts. Management plans to address these challenges by 2026 by selling its 27.5% stake in V.tal and using the proceeds to fully repay these two obligations. Key Rating Drivers Insufficient Liquidity: Fitch anticipates that Oi will seek additional waivers for PIK coupons on its 2027 bond and 13th debenture issuance until it can successfully divest a significant portion of its asset portfolio. This includes a 27.5% stake in V.tal, valued at BRL13 billion, and nearly 7,500 real estate assets valued at BRL5 billion. In 1Q25, Oi held BRL1.4 billion in cash against BRL213 million in short-term debt. Despite this, the company obtained a waiver to PIK the quarterly coupon due March 31, amounting to BRL153 million. This waiver was sought from holders of 12.4% (or BRL4.4 billion) of Oi's total face value debt. Proceeds from the V.tal divestiture are earmarked for pre-paying these debts. Fitch expects Oi to continue servicing the 8.75% coupon on the BRL50 million bond due July 2026, given its relatively small size. The remaining BRL31.4 billion face value debt is PIK until maturity, with significant amortizations scheduled for December 2028 (BRL5.5 billion) and December 2030 (BRL2.8 billion, extendable). The resolution of arbitration with the regulator ANATEL could also positively impact the company and accelerate deleveraging, although timing remains uncertain. Continued Cash Burn: Fitch projects Oi will continue burning cash through 2025 and into 2026, primarily driven by negative EBITDA from its legacy fixed-line business, which will result in an unsustainable capital structure. Fitch expects annual negative EBITDA to reach approximately BRL2 billion in 2025 and BRL500 million in 2026. However, anticipated working capital inflows and reduced capital expenditures may mitigate losses, leading to negative FCF of BRL700 million in 2025 and BRL450 million in 2027. Pending Sale of V.tal Stake: Fitch expects Oi to sell its stake in V.tal by 2026, although timing and valuation remain uncertain. Delays in divesting could lead to additional coupon accruals and bring the company closer to the maturity dates for the super senior bond and debentures in June 2027. Market conditions will dictate whether Oi can sell its entire stake and achieve the BRL13 billion valuation from the ClientCo sale. Depending on the sale price, Oi might be able to eliminate BRL650 million in unsecured take-or-pay supplier debts obligation and amortize part of the roll-up debt. Real Estate for Sale: Fitch views the sale of real estate assets as a positive step for Oi, despite its granular, uncertain, and gradual nature. The shift from a concession to an authorization regime has enabled the company to sell up to around 7,500 real estate assets, potentially valued around BRL5 billion. Proceeds from these sales are intended to reduce take-or-pay commitments with suppliers, with any remaining funds used for new money (if any amount is still outstanding), roll-up debt amortization and for the company's operating activities. Additionally, the sale will lower fixed costs associated with maintaining these assets. Arbitration as a Turnaround Catalyst: Fitch considers the resolution of Oi's arbitration process with ANATEL crucial to the company's financial turnaround, despite uncertainties related to timing and compensation outcomes. According to the waterfall of obligations, any arbitration proceeds would first be applied to settling BRL8.5 billion in fines with ANATEL. Subsequently, V.tal would be reimbursed for BRL5 billion in capex obligations advanced to Oi, and any remaining funds would be evenly divided between Oi and V.tal. This could also result in the suspension of onerous fixed-line obligations, such as commissions and insurance payments related to high provisions. Peer Analysis Oi's 'C' IDR reflects the company's exceptionally high levels of credit risk where a default is perceived as imminent with the company most likely soliciting sequential waivers to PIK coupons, which represent a deterioration in the form of payment. Key Assumptions - Net revenue of BRL2.4 billion in 2025 and BRL2.2 billion in 2026; - Negative EBITDA of BRL1.9 billion in 2025 and BRL473 million in 2026; - Sale of V.tal in 2026 and use of proceeds to reduce debt; - Oi Solutions, as the surviving entity, with BRL1.4 billion in revenue in 2025 and 2026; - Capex of BRL70 million in 2025 and BRL83 million in 2026; - No dividends in the foreseeable future. Recovery Analysis Fitch is using the liquidation value approach to estimate Recovery Ratings for Oi's 2027 super senior and the 2028 subordinated secured bonds, respectively. The divestment program continues with the stake in V.tal valued at BRL13 billion expected for 2026. Despite good recovery value if Oi sells the V.tal shares at asked prices, Fitch caps the Recovery Ratings at 'RR4' because Oi generates most of its revenue in Brazil. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Entrance on an uncured payment default or DDE on a bond, loan or other material financial obligation would lead to a downgrade to 'RD'; - Entrance into bankruptcy filings, administration, receivership, liquidation or other formal winding-up procedure or that has otherwise ceased business would lead to a downgrade to 'D'. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Upgrades are unlikely in the short term. In the medium- to long-term, the rating could be upgraded if Oi sells a substantial part of its asset pool and reduces the overall debt that exempts the company to solicit waivers. Liquidity and Debt Structure Oi's debt totaled BRL35.9 billion in face value as of 1Q25. Approximately 87% of that is comprised of PIK coupons and zero interest for most of the hard currency debt. Only the roll-up debt of BRL8.3 billion (23% of total) carries a higher rate at 8.5% PIK. Second judicial recovery payments constitute BRL16.2 billion (45%) and mature between 2048 and 2052. Oi can prepay this debt at 15% of par after redeeming all secured debt. Senior subordinated roll-up debt includes BRL5.5 billion in Series A and BRL2.75 billion in Series B. Both mature in December 2028, though Series B may extend to 2030. First judicial recovery payments total BRL6.1 billion (17%) with 2038-2042 maturities. The 2027 bond (BRL3.8 billion) and debentures (BRL679 million) represent 12% of total debt. Other obligations account for 3%. Issuer Profile Oi provides IT and telecom service for corporate customers, using its own copper telecommunications infrastructure and an affiliate fiber-optic network. 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 ----------- ------ -------- ----- Oi S.A. LT IDR C Downgrade CCC- LC LT IDR C Downgrade CCC- Natl LT C(bra) Downgrade CCC-(bra) senior secured LT C Downgrade RR4 CCC- =========================== C A Y M A N I S L A N D S =========================== RYVYL INC: CVI Investments, Heights Capital Report 9.9% Stake ------------------------------------------------------------- CVI Investments, Inc. and Heights Capital Management, Inc., disclosed in a Schedule 13G (Amendment No. 4) filed with the U.S. Securities and Exchange Commission that as of March 31, 2025, they beneficially owned 926,868 shares of RYVYL Inc.'s common stock. The shares are issuable upon the conversion of the company's 8% Senior Convertible Note due 2023 and are subject to a beneficial ownership limitation of 9.99%. The reported holdings represent 9.9% of the 8,351,086 shares of common stock outstanding as of March 24, 2025, according to the Company's most recent Form 10-K. CVI Investments, Inc. may be reached through: Heights Capital Management, Inc. (Investment Manager) 101 California Street, Suite 3250 San Francisco, California 94111 Tel: 345-949-8080 CVI Investments, Inc. (organized in the Cayman Islands) and Heights Capital Management, Inc. (organized in Delaware) disclaim beneficial ownership of the shares except to the extent of their pecuniary interest therein. A full-text copy of CVI Investments' SEC report is available at: https://tinyurl.com/j8uuc35n About Ryvyl Inc. San Diego, Calif.-based RYVYL Inc., together with its subsidiaries, is a financial technology company that develops, markets, and sells innovative blockchain-based payment solutions, which offer significant improvements for the payment solutions marketplace. The Company's core focus is to develop and monetize disruptive blockchain-based applications, integrated within an end-to-end suite of financial products, capable of supporting a multitude of industries. In its report dated March 28, 2025, the Company's auditor, Simon & Edward, LLP, issued a 'going concern' qualification, attached to the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2024, noting that the transitioning of the Company's QuickCard product in North America led to a significant decline in processing volume and revenue, the recovery of these lost revenues is not expected until late 2025. The loss of revenue resulting from this business reorganization has jeopardized its ability to continue as a going concern. As of Dec. 31, 2024, RYVYL had $122.28 million in total assets, $123.77 million in total liabilities, and a total stockholders' deficit of $1.49 million. =================================== D O M I N I C A N R E P U B L I C =================================== AEROPUERTOS DOMINICANOS XXI: Fitch Affirms BB+ on Notes Due 2034 ---------------------------------------------------------------- Fitch Ratings has affirmed Aeropuertos Dominicanos Siglo XXI, S.A.'s (Aerodom) USD500 million notes due in 2034 at 'BB+'. The Rating Outlook is Stable. The rated notes coexist on a pari-passu basis with one USD400 million bullet term loan, which matures in June 2029. RATING RATIONALE The rating reflects the risk regarding a six-airport portfolio located in the Dominican Republic, one of the largest tourism destinations in the Caribbean, which holds a significant market share of the country's air traffic and cargo. Traffic in Santo Domingo Airport (SDQ), which accounts for 85% of the portfolio's total volume, has demonstrated low volatility and resilient traffic patterns, partially supported by the Dominican diaspora, which accounts for around 25% of its traffic. Traffic is highly concentrated in international passengers, heavily reliant on North American demand, and somewhat exposed to competition from neighboring tourist destinations. The concession allows for periodic tariff increases according to inflation in the U.S. and requires a USD830 million capex investment plan (CIP) through maturity. The rating also reflects the transaction's exposure to refinancing risk and interest rate volatility, given the term loan carries a floating rate (SOFR). Refinancing risk is mitigated by Aerodom's proven market access and long concession tail. The risk of rate volatility is substantially mitigated, with only 44% of debt affected for five years. Fitch also expects that cash flow will easily cover minor interest rate hikes. The debt is USD denominated, but the risk of foreign currency variations is mitigated by the high proportion of U.S. dollar (USD) denominated revenues and high operational margins. Under the rating case, maximum leverage, measured as net debt to EBITDA, is 4.3x and the issuer is expected to deleverage to around 3x in 2029. These metrics are strong for the rating, according to Fitch's applicable criteria. However, the rating is ultimately constrained by risks related to general economic conditions in the Dominican Republic and by the Country Ceiling. Fitch believes Aerodom has sufficient liquidity to preserve debt service if short-lived capital controls are imposed. Over 90% of revenues are USD-denominated and around 75% are collected offshore, and the transaction will have a six-month offshore debt service reserve account (DSRA). The latter, coupled with robust financial metrics, a strong ultimate parent, and a concession clause protecting the concession from existing or future exchange controls or funds transfers measures, supports a two-notch uplift from the Dominican Republic's Country Ceiling of 'BB-'. KEY RATING DRIVERS Revenue Risk - Volume - Midrange Leisure-Oriented Portfolio Anchored by Capital City Airport (Revenue Risk - Volume: Midrange): Aerodom's six airports handle more than 30% of the Dominican Republic's passenger volume, primarily leisure travelers and visiting friends and relatives (VFR), who exhibit low volatility. Traffic fully recovered from the pandemic by 2022. SDQ is the portfolio's main airport, with a stable traffic profile and serves diverse carriers, with potential for growth with establishment of low-cost carrier Arajet's hub. The portfolio's performance is partially linked to economic conditions in North America and more than 95% of traffic is international. Revenue Risk - Price - Midrange Inflation Adjusted Tariffs (Revenue Risk - Price: Midrange): The concession agreement allows for periodic tariff increases in line with changes in the U.S. CPI without government approval, from 2024, a positive attribute. Aerodom was granted an additional 18.4% real tariff increase to be implemented between 2023 and 2025 to make up for the suspension of tariffs during 2017-2023. More than 90% of revenues are USD-denominated and around 75% of total revenues are collected in offshore accounts. Infrastructure Dev. & Renewal - Midrange Well-Defined Capex Plan for Regional Airports (Infrastructure Development and Renewal: Midrange): Aerodom's infrastructure has a well-defined CIP to be funded with its cashflow. The project also benefits from a capex investment account which is funded with 20% of shareholder's distributions. The concession extension includes a commitment to build and operate a new terminal with four million passenger capacity at SDQ to be completed by 2028, as well as other capex and replacement expenditure (repex) obligations. The budgeted capex exceeds the contractual USD830 million required by the concession through 2060 and is deemed adequate by the independent engineer (IE). The portfolio benefits from management by Vinci Airports, a reputable global operator with proven experience in the sector and in Latin America. Debt Structure - 1 - Midrange Bullet Debt, Adequate Covenants (Debt Structure: Midrange): The rated debt is pari-passu with an unrated U.S. dollar-denominated five-year floating-rate term loan, which is included in its financial projections. The interest rate risk from the term loan is largely mitigated by the relatively short term of the debt, its weight regarding total debt (44%) and Aerodom's ample projected cashflow. Bullet debt structure's refinance risk is mitigated by Aerodom's proven market access and a 26-year concession tail. Debt holders benefit from a six-month offshore DSRA and a covenant package that includes limits on additional indebtedness if leverage reaches 5x. The foreign-currency risk is mitigated by the high proportion of USD-denominated revenues (over 90%) and high operational margins. Financial Profile The most relevant financial metric for this project is leverage, measured as net debt to EBITDA, given the debt's bullet payment structure. Under the rating case, the maximum leverage is 4.3x and will decline to around 3x in 2029, as EBITDA strengthens gradually, which is considered positive for the refinancing prospects. PEER GROUP Aerodom's closest regional peer is ACI Airport SudAmerica, S.A. (ACI) rated 'BB+'/Stable. ACI operates the Carrasco International Airport in Uruguay. ACI is also an origin and destination (O&D) airport with mostly international passengers. ACI's volume and price risk assessments are similar to Aerodom's, but it has a stronger infrastructure assessment and a fully amortizing debt structure with partial cash-sweep and a springing guarantee, though metrics are lower than Aerodom's. ACI's rating also reflects its dependence on structural liquidity to meet obligations and a delayed recovery from the pandemic. In contrast, Aerodom's projected leverage is strong for the rating, but constrained by the Dominican Republic's Country Ceiling and the company's buffer to support short lived capital controls. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Deterioration on Fitch's view regarding Dominican Republic's risk of imposing capital controls, affecting the ability to transfer currency, and/or offshore revenue collection reduces over time. - Traffic growth or overall financial performance consistently below Fitch's rating case assumptions (6.4 and 6.8 million passengers in 2025 and 2026, respectively), that could lead to a leverage position of around 5.0x on a sustained basis. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Improvement in Fitch's view regarding Dominican Republic's risk of imposing capital controls, provided issuer's financial profile is still consistent with a higher rating and offshore revenue collection continues to be above 75% of total revenues. SECURITY The debt is secured on a first priority basis by a pledge of 100% of the shares of Aerodom. 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 ----------- ------ ----- Aeropuertos Dominicanos Siglo XXI, S.A. Aeropuertos Dominicanos Siglo XXI, S.A./Airport Revenues - Senior Secured Debt/1 LT LT BB+ Affirmed BB+ DOMINICAN REPUBLIC: Get Accused of Fueling Security Crisis ---------------------------------------------------------- Dominican Today reports that during a special session of the Organization of American States (OAS) in Washington, Haiti's Defense Minister Jean Michel Moise accused the Dominican Republic, the United States, and Colombia of fueling the nation's internal security crisis. He claimed that networks operating from these countries are responsible for the illegal trafficking of arms and drugs into Haiti, which is exacerbating gang violence and destabilizing the country, according to Dominican Today. Moise highlighted the Dominican Republic's "porous" border as a major entry point for weapons and pointed to corrupt systems enabling smuggling, the report notes. While recognizing efforts by the Dominican Republic to assist in military rebuilding, he stressed that without deeper cooperation, Haiti cannot combat the expansion of transnational criminal networks or reclaim its sovereignty, the report relays. He also identified Colombia as the primary source of narcotics that pass through Haiti, contributing to a broader regional criminal economy involving money laundering, human and organ trafficking, the report notes. Calling for urgent international support, Moise urged countries to provide resources for military training, infrastructure, and surveillance tools, the report says. He warned that Haiti's crisis is no longer a national issue but a regional security threat requiring collective action, 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. ============= J A M A I C A ============= JAMAICA: BOJ Accepts 292 Bids for 30-day Certificate of Deposit --------------------------------------------------------------- RJR News reported on May 299, 2025 that the Bank of Jamaica (BOJ) says 314 bids valued at $55.8 billion were submitted for the $45 billion it wanted to take out of circulation with its 30-day Certificate of Deposit floated. The bank, however, says it accepted only 292 of these bids for the $45 billion on offer, according to RJR News. The average interest rate requested was 5.7 per cent per year, the report notes. The lowest was 5 per cent for $11.2 billion, while the highest amount requested was 7.2 per cent per year for $50 million, 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: Manufacturers Urged to Explore Broader Financing Options ----------------------------------------------------------------- Codie-Ann Barrett at Jamaica Observer reports that Jamaican manufacturers now have more financing options than many may realise and are being encouraged to look beyond traditional bank loans to scale their operations. The recommendation came during the Jamaica Manufacturers and Exporters Association's (JMEA) Manufacturing 360° conference held May 29, 2025 at AC Kingston Hotel in St Andrew, where it was revealed that uptake of alternative financing, such as private equity and capital markets, remains particularly low among players in the sector, according to Jamaica Observer. "It's perceived as giving up control, so they might be reserved in giving up," said Kerine Golding, assistant vice-president, alternatives and fund management at NCB Capital Markets Limited. "That [mindset] remains particularly among manufacturers," the report notes. Golding explained that many businesses resist raising capital through equity because of the desire to retain full control over their companies, the report relays. However, she argued that partial ownership does not have to come at the cost of autonomy, the report relays. "Giving up a bit of your company can help to grow your company in terms of scaling quickly," she said, the report discloses. The Jamaica Stock Exchange was also highlighted as a viable option for raising capital, particularly in cases where banks either deny financing or offer loans with interest rates that are too high for businesses to manage, the report notes. Golding shared that over the past year, NCB Capital Markets has helped companies raise more than $1.8 billion, the report says. Combined with the banking side, that figure is significantly higher, the report relays. She noted that while traditional banks often face lending constraints, the capital markets provide more flexibility through tailored solutions, including debt, bonds, and equity, the report notes. This may come in the form of private equity or support in preparing companies to go public, the report discloses. In encouraging entrepreneurs to look beyond bonds and loans, GK Capital Management, the investment and capital arm of GraceKennedy Group, also has its own type of alternative financing, including investment commitments upwards of $200 million in private equity to help grow companies, the report relays. Kareem Tomlinson, managing director of GK Capital Management Limited, added that the firm is also acting as a mediator between entrepreneurs and angel investors through its established networks, the report relays. According to Tomlinson, the aim of GK Capital is to take businesses from "grass to glass", with support provided to early stage businesses by GK Financial's angel investor partners, the report notes. The conference also explored loan solutions tailored to the needs of manufacturers, the report says. Sagicor Bank, through its business banking division, shared details of a dedicated manufacturing and agro-processing loan product, with interest rates starting at 6.5 per cent, repayment terms of up to 12 years, and loan amounts of up to $50 million, the report relays. "We have conversations with our clients; we try to understand their business and try to provide solutions that match their business," explained Nicola Speid, manager, SME business banking at Sagicor, the report discloses. She said that the bank customises loan terms to suit the unique workflow and structure of each manufacturer's business, the report relays. In addition to traditional and alternative capital market options, manufacturers looking to implement greener technologies now have access to dedicated funding through First Global Bank's green financing product, the report discloses. Offered in collaboration with the Development Bank of Jamaica (DBJ), Key Insurance, and several energy providers, the product is designed to support manufacturers across financing, installation, and insurance, the report says. Through DBJ, clients can also benefit from extended guarantor facilities to help secure loans, especially where collateral may be limited, the report relays. "There is an energy audit grant of $200,000 as we seek to minimise that upfront cost to our manufacturers," said Rashina Cope-Malcolm, corporate banking manager at First Global Bank, the report notes. She explained that 80 per cent of the grant is provided upon acceptance of the audit report, with 20 per cent available upfront for mobilisation, the report discloses. After loan disbursement, clients may also access an energy audit rebate of up to $300,000, the report notes. Key Insurance will provide additional support, offering coverage for installations as part of the overall financing package, the report relays. Loans are available at interest rates as low as 7.5 per cent in US dollars and 8.5 per cent in Jamaican dollars, the report says. "These are very competitive rates and on the lower end of interest rates currently," boasts Cope-Malcolm, the report notes. To reduce the upfront investment required, First Global will offer up to 90 per cent financing, with manufacturers able to borrow up to $400 million or US$2.5 million and access repayment terms of up to 24 months' moratorium to help ease cash flow pressures, 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. ===================================== T R I N I D A D A N D T O B A G O ===================================== TRINIDAD & TOBAGO: Floods Drive up Market Prices ------------------------------------------------ Michelle Loubon at Trinidad Express reports that PIMENTO prices fell to 15 for $5, while tomato prices rose to $15 per pound in the aftermath of last weekend's floods, which affected communities including Aranjuez, Piarco, Las Lomas/St Helena, Bamboo No 2, Cocorite, and Diego Martin, according to public relations officer of the Charlotte Street Vendors' Association Junior Lewis. Lewis and fellow vendors like Sharon Daniels and Martin "Son" Alleyne also said generally "business was slow," according to Trinidad Express. The report notes that Lewis, who once farmed pimentos in Penal, said: "When rain falls, it's a crop that will melt fast. Tomatoes tends to spoil quickly, too. It will get swollen and split. After one shower, disaster struck. Pimentos on the ground. I had to stop farming because it was costing me too much to transport the produce. I have to get a vehicle." "Aranguez needs plenty work. The land is flat. Then it dips like a belly. And the water settles. It flows back. I know a farmer who bought four pumps to get the water out of his land. But the water will go to another farmer's land. Caroni River needs to be cleared. Especially the mouth of the Aranjuez River. I feel they might have to put in some retention ponds. It's the only way to get the water off. Otherwise we will continue to have flooding and food prices will rise." The report report relays that on the way forward, he added: "I am happy the new government said non registered farmers can get access to some of the services that registered farmers are getting. I have to check it out." In the area of farming, he said: "We import potatoes and carrots from the United States and Canada. These crops can be grown here. We have sandy soils. Some of the potatoes are marked up because they were grown in stony soils." Cost of Coconuts Up The report discloses that after purchasing a packet of Toco seamoss ($20), Daniels said: "Market is slow. It's very slow. Few shoppers. Tomatoes went up. Carrots went up. Cabbage went up from $3 per lb to about $5 or $6 wholesale. Coconuts are expensive. It's about $12 for one. Most of them are coming from St Vincent and the Grenadines. The cheapest item is plantains at $4 per lb." Daniels said he hopes things will pick up, the report notes. The report relays that pumpkin vendor Mamoral added: "It's ‘trust week'. People are waiting to get paid at month end. It's slow. It might pick up next week." Alleyne said: "It's slow. Flood or no flood. I have to come out and work. I can't question the Creator. But I am grateful for what cash I got." Charlotte Street prices Pimentos- 15 for $5 Dasheen- $8 per lb Spinach- $10 per bundle Patchoi- $12 per bundle Corn- $22 a bag Ginger- $40 per lb Eggs- $50 per dozen Bodi- $5 per bundle Bananas- $6 per lb Cabbage- $6 /$7 per lb Potatoes- 3 lbs for $12 Melongene- $5 per lb Cucumbers- $5 per lb Coconuts- $12 for one Beetroot- $12 per lb Garlic- $8 per packet Onions- $8 per packet Ochroes- 10 for $5 Chives- 4 for $10 =============== X X X X X X X X =============== LATAM: Tax Revenues Fell in 2023 as Commodity Prices Weakened ------------------------------------------------------------- The Inter-American Development Bank reported that tax revenues in Latin America and the Caribbean decreased as a share of GDP in 2023 amid a slowdown in economic activity in the region and a decline in global commodity prices, according to a new report. The report Revenue Statistics in Latin America and the Caribbean 2025, released on May 27, 2025 at the UN-ECLAC 37th Regional Fiscal Seminar in Santiago, Chile, shows that the average tax-to-GDP ratio in the region was 21.3% in 2023. This was 0.2 percentage points (p.p.) below the level in 2022 and slightly below the level prior to the COVID-19 pandemic (21.4% in 2019). Tax-to-GDP ratios in the region ranged from 11.6% in Guyana to 32.0% in Brazil in 2023. By comparison, the average tax-to-GDP ratio in OECD countries was 33.9% in 2023. Between 2022 and 2023, the tax-to-GDP ratio fell in 14 of the 26 countries included in the report. Chile and Peru observed the largest declines (of 3.2 p.p. and 2.1 p.p. respectively). In both cases, this was primarily due to lower income tax revenues, which resulted from the impact of lower commodity prices on the economy and high tax refunds and credits in 2023. The overall decline in tax revenues as a share of GDP in the region was due to a fall in revenues from income taxes, notably among some of the main hydrocarbon and mineral producers. Income tax revenues declined by 0.1% of GDP on average from a peak of 6.3% in 2022, according to the new report. Social security contributions increased by 0.1 p.p. in 2023 while revenues from taxes on goods and services remained unchanged as a share of GDP. A decline in commodity prices in 2023 dragged down the region's revenues from non-renewable natural resources. Hydrocarbon-related revenues among the region's ten biggest oil producers declined to 3.9% of GDP on average in 2023 (from 4.4% of GDP in 2022) while mining revenues declined to 0.59% of GDP (from 0.74% of GDP in 2022). The report estimates that revenues from hydrocarbons and mining decreased further in 2024, to 3.2% of GDP and 0.5% of GDP, respectively. For the first time, the 2025 edition of Revenue Statistics in Latin America and the Caribbean presents harmonised data on non-tax revenues, such as rents and royalties, interest and dividends received by the government, and public sales of goods and services. The report shows that non-tax revenues at the central government level for 22 countries averaged 3.1% of GDP in 2023, ranging from 0.4% in Peru to 11.6% of GDP in Cuba. Between 2019 and 2023, non-tax revenues declined by 0.4 p.p. on average across the region, albeit with strong year-on-year variations over this period, including a decline of 0.7 p.p. between 2022 and 2023. Revenue Statistics in Latin America and the Caribbean 2025 is a joint publication by the Inter-American Center of Tax Administrations (CIAT), the Inter-American Development Bank (IDB), the United Nations Economic Commission for Latin America and the Caribbean (UN-ECLAC), and the Organisation for Economic Co-operation and Development (OECD) Centre for Tax Policy and Administration and Development Centre. To access the report, data, overview, country notes and infographics go to http://oe.cd/revstatslac25-en. ********* 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 * * *