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250618.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, June 18, 2025, Vol. 26, No. 121 Headlines A R G E N T I N A ARGENTINA: IMF Applauds Measures to Boost Dollar Reserves PETROLERA ACONCAGUA: Fitch Lowers LongTerm IDRs to 'CCC-' B R A Z I L BANCO ABC: Fitch Hikes LongTerm IDRs to 'BB+', Outlook Stable BANCO BOCOM: Fitch Affirms 'BB+' LongTerm Foreign Currency IDR BRAZIL: Private Investment Drives Infrastructure Boom SUNCOKE ENERGY: Moody's Affirms 'B1' CFR, Outlook Remains Stable C O L O M B I A BOGOTA: Fitch Affirms 'BB+' LongTerm IDRs, Outlook Negative D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: High Business Closure Rates J A M A I C A NATIONAL COMMERCIAL: Launches Voice Guidance Feature on ABMs P E R U PERU: Tightens NGO Oversight Amid Corruption Concerns & Warnings T R I N I D A D A N D T O B A G O TRINIDAD & TOBAGO: Tewarie Hopes for Good Relations with Venezuela - - - - - ================= A R G E N T I N A ================= ARGENTINA: IMF Applauds Measures to Boost Dollar Reserves --------------------------------------------------------- AFP News reports that the International Monetary Fund (IMF) has praised President Javier Milei's government for taking recent measures to boost Argentina's international reserves. Earlier, Argentina's Central Bank rolled out new economic measures designed to boost foreign currency holdings in response to demands from the IMF, according to AFP News. The steps included a US$2-billion repo agreement with international banks, the report notes. Argentina received US$12 billion from the IMF in April, the first installment of a $20 billion loan, the report relays. Buenos Aires launched a new tender for debt purchasable in dollars and payable in pesos, the report discloses. It did so in May, but for foreign investors, and raised US$1 billion, the report relays. With this new issuance, the government hopes to raise US$7 billion by the end of the year, the report discloses. As it has done consistently since Milei came to power in December 2023, the Fund praised the economic policies of Latin America's third-largest economy, the report says. Despite a more complex international environment, the authorities "have continued to make remarkable and impressive progress," IMF spokeswoman Julie Kozack said at a press conference, the report relays. She said the IMF would continue to engage "frequently and constructively" with authorities in Buenos Aires as part of the first review of the new agreement, the report notes. "We welcome the recent measures announced" because "they represent another important step in efforts to consolidate disinflation, support the government's financing strategy and to rebuild reserves," she added. The report notes that Kozack referred in particular to initiatives "to strengthen the monetary framework and improve liquidity management." "The Treasury's successful re-entry into capital markets and other actions to mobilise financing for Argentina are also expected to boost reserves and stability overall," said the financial organisation's spokesperson, emphasising that the country's stability is underpinned by the "implementation of a solid fiscal anchor," the report discloses. Kozack also announced that "a technical mission will visit Buenos Aires at the end of June to assess progress on the program's goals and objectives and to discuss the reform agenda" as part of the first review of the loan, the report adds. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Javier Milei is the current president of Argentina after winning the November 19, 2023 general election. He succeeded Alberto Angel Fernandez in the position. Argentina has the third largest economy in Latin America. The country's economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. In March 2022, the International Monetary Fund (IMF) approved a 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. PETROLERA ACONCAGUA: Fitch Lowers LongTerm IDRs to 'CCC-' --------------------------------------------------------- Fitch Ratings has downgraded Petrolera Aconcagua Energia S.A.'s (PAESA) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) to 'CCC-' from 'B-', and senior secured notes to 'CCC-' with a Recovery Rating of 'RR4' from a 'B-/RR4', which has subsequently been withdrawn as the transaction was canceled. The downgrades reflect PAESA's limited financial flexibility and increased refinancing risk, driven by an insufficient liquidity position to meet short-term obligations. The company faces debt maturities of USD10 million in July 2025 and USD20 million in September 2025, against cash and equivalents of USD6.1 million as of June 6, 2025. Although PAESA is exploring financing alternatives, the availability and timing of these solutions are uncertain, exacerbated by rising financing costs in the local market. Fitch's base case assumes leverage will be close to 6.0x in fiscal 2025. The ratings reflect significant uncertainty regarding PAESA's ability to continue servicing its near-term financial obligations. Fitch has withdrawn the ratings on the senior secured bond issuance as the transaction was cancelled. Key Rating Drivers Liquidity Deterioration; Limited Funding: PAESA's cash and equivalents declined to USD6.1 million on June 6, 2025, from USD22 million at the end of March 2025, which is insufficient to cover short-term debt of USD71 million, of which almost USD30 million is due in 3Q25. Total debt was USD 229 million as of March 2025, while LTM leverage was about 3.5x on the same date. The cancellation of the international senior secured bond issuance has left the company with limited options for refinancing its short-term obligations, amidst lower liquidity and rising financing costs in the local bond market. Negative FCF: Fitch estimates that FCF will be negative over the next three years as PAESA executes a capital expenditure plan totaling USD260 million. The plan includes USD86 million in remaining payments under an agreement with Vista Argentina. The company has USD10 million in outstanding investment commitments due in 2025. Given the current liquidity profile, the company will require external funding to complete these plans. Peer Analysis PAESA has a weaker liquidity position and higher refinancing risk compared to its peers, as the company has no clear timeline and alternative to face its short-term debt maturities. PAESA's closest peers are Capex S.A. (B-/Stable) and Petroquimica Comodoro Rivadavia (B-/Stable). These companies have a higher scale of operations and are relatively more diversified, deriving their revenues from energy and electricity, while PCR also benefits from its cement business. PCR's and Capex's electricity revenues are exposed to CAMMESA, which directly reflects sovereign risk. However, PCR's Ecuadorian cash flow, oil exports from Argentina and cash held abroad, cover their hard currency interest expense by 1.5x for the next four years. This mitigates risk from Argentina's challenging economic environment. PAESA's access HC through exports, which represents around 30% of revenues. PAESA's production of 12,000 boed by fiscal 2027 is lower than PCR's 18,000 boe/d and Capex's 17,500. PAESA's 1P RLI of 10.2 years is higher than both peers. Fitch expects PAESA's gross leverage to average 4.3x during the rating horizon compared to Capex's 2.8x and PCR's 2.7x. Key Assumptions - Fitch's end-of-period and average foreign exchange rate for Argentine pesos to U.S. dollars; - Average working interest production of 8,300boed in 2025-2026; 13,000boed in 2027-2028; - Lifting costs of $19/boe in 2025; average of $17/boe between 2026-2028; - 1P reserve life replacement of at least 100% over the rating horizon; - Fitch's price deck for Brent crude oil per barrel of USD65 between 2025 and 2027; long-term of USD60; - Cumulative capex of USD260 million between 2025-2028; - No dividend payments. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A downgrade could occur if Fitch believes that a default or default-like process appears probable or has begun, with an announcement of debt restructuring or refinancing with weaker terms to creditors. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An upgrade of PAESA's ratings is unlikely until the company addresses its short-term refinancing needs and liquidity concerns. Liquidity and Debt Structure PAESA's liquidity is limited and insufficient to meet short-term debt, as it has a cash balance around USD6 million as of June 6th, 2025, and USD30 million in debt maturities over the next months. Issuer Profile PAESA is an Argentine independent energy company focused on conventional exploration and production of hydrocarbons. It operates in 14 areas located in the Cuyo and Neuquén basins, extending into the provinces of Mendoza, Río Negro, and Neuquén with conventional production. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations PAESA has an ESG Relevance Score of '4' for GHG Emissions & Air Quality due to the growing importance of the continued development and execution of the company's energy-transition strategy, which has a negative impact on the credit profile, and is relevant to the rating[s] in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Petrolera Aconcagua Energia S.A. LT IDR CCC- Downgrade B- LC LT IDR CCC- Downgrade B- senior secured LT CCC- Downgrade RR4 B- senior secured LT WD Withdrawn =========== B R A Z I L =========== BANCO ABC: Fitch Hikes LongTerm IDRs to 'BB+', Outlook Stable ------------------------------------------------------------- Fitch Ratings has upgraded Banco ABC Brasil S.A.'s (ABCBr) Long-Term (LT) Foreign Currency (FC) Issuer Default Rating (IDR) and LT Local Currency (LC) IDRs to 'BB+' from 'BB', respectively. Fitch has also affirmed the LT National Rating at 'AAA(bra)'. The Rating Outlook is Stable. In addition, Fitch has affirmed ABCBr's Viability Rating (VR) at 'bb'. The upgrade follows the upgrade of ABCBr Shareholder Support Rating (SSR) to 'bb+' from 'bb' because of a similar rating action recently taken on the ratings of its parent company, Arab Banking Corporation (ABC; LT FC IDR BBB-/Stable and VR bbb-). For more information, please refer to the release "Fitch Upgrades Arab Banking Corporation to 'BBB-'; Outlook Stable," published on May 28, 2025. Key Rating Drivers IDRs, SSR and National Ratings Ratings Driven by Parental Support: ABCBr's IDRs and National Ratings are now driven by its SSR following the 'higher of' approach under Fitch's criteria to determine IDRs. The ratings reflect a moderate probability of support from its parent, ABC. ABCBr's LT FC IDR is rated one notch below that of ABC's, reflecting Fitch's opinion about the parent's good ability and propensity to provide extraordinary support if needed. Strong Role in ABC Group: The parent's propensity to support is highly influenced by ABCBr's strategic role into ABC group due to strong synergies with the parent and the subsidiary's contribution to revenue diversification, as the group's other activities are focused on the Middle East. ABCBr currently provides more than half of the group's net income. Therefore, it is Fitch's view that ABCBr's activities in Brazil are strategically important for the parent. Large Size Relative to Parent: ABC owns nearly 64% of ABCBr and they share a similar brand. Therefore, the propensity to support is enhanced by reputational risk as, in an unlikely event of a default at the subsidiary level, there could be a high reputational risk for the parent. However, the relatively large size of the subsidiary, which currently represents about 30% of the parent's assets, could constrain the parent's ability to support its subsidiary. Fitch believes that the bank will continue to increase the diversification of its portfolio in terms of clients, geographies and sectors served, although at a moderate pace. While not yet significant, the bank is expanding its portfolio of products and services offered to increase value and strengthen relationship to existing clients. Fitch believes that the expanded diversification of ABCBr's operations in the last few years has prepared its business profile to navigate through various business cycles. Conservative Risk Profile: ABCBr maintains a conservative risk profile, reflecting its modest credit growth. Fitch believes that the bank's increasing number of clients and geographic expansion diversifies risks. ABCBr's credit exposure is mainly to large Brazilian corporates with good credit quality in the domestic market. The bank's credit standards are generally conservative, as demonstrated by collateralized credit concessions in the middle market attached to real guarantees. Improved Asset Quality: Fitch has upgraded ABCBr's asset quality score to 'bb' from 'bb-'. Throughout 2024, the bank maintained nonperforming loans (NPLs) close to 1% and reduced NPLs in its middle market portfolio, despite this segment's sensitivity. Under the new Resolution 4,966, its impaired loans ratio of 2.4% remains below the sector's average, supporting the positive action. Despite a challenging macroeconomic environment with high interest rates and deterioration in the agribusiness sector, where the bank has substantial exposure, current Stage 3/total loans indicator of 2.4% provides sufficient buffers against moderate deterioration, without compromising its assessment of the bank's asset quality. Sound Profitability: ABCBr's profitability metrics have been resilient in recent quarters, driven by enhanced margins resulting from its entry into and expansion in the middle market segment, increased fee income, and lower funding costs. The core metric of operating profit/risk-weighted assets (RWAs) reached 1.8% in March 2025, in line with the average of the last four years. Fitch expects the bank to maintain this ratio at current levels, reflecting improved spreads on contracted loans this year. Adequate Capitalization: ABCBr's capitalization metrics have remained stable in recent years, driven by modest profit generation and conservative credit portfolio growth. Fitch expects this trend to continue over the medium term. On March 31, 2025, the bank's Common Equity Tier 1 (CET1) ratio remained at 11.7%, the same as a year earlier. ABCBr worked on its liability management on the past few months of 2024, issuing new Tier 1 hybrid instruments, which increased total capital ratio to 17.2% in March 2025 from 16.6% in March 2024. Fitch expects the ratio to return to close to 16.5% in the near term, as the bank repays older more expensive debt. Although Fitch considers CET1 as a core metric, Fitch considers such Additional Tier 1 issuances to provide an important capital buffer for the bank. Stable Funding and Ample Liquidity: The bank continues to rely on long-term funding sources such as issuances of notes in the local market, including Letras de Crédito Imobiliário (LCIs) and Letras de Crédito do Agronegócio (LCAs), which are like deposits, and letras financeiras (LFs). As of March 31, 2025, local funding accounted for 83% of the bank's funding. Within this, institutional funding accounted for nearly 35%, individual deposits for 18.7% and corporate deposits for nearly 12.2%. International funding accounted for 17%, mostly related to multilateral agencies and bank's correspondents, and the rest from trade finance. The bank's liquidity buffers are adequate given its limited forthcoming maturities. Fitch does not expect any change to the bank's funding and liquidity strategy over the medium term. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade IDRs and SSR - A deterioration in Fitch's assessment of ABC's propensity or ability (due to the material size of the subsidiary) to support ABCBr; - A negative rating action on the parent bank, ABC, although a downgrade of the IDRs would be limited by the level ABCBr's VR; - ABCBr's IDRs are sensitive to a negative rating action on Brazil's sovereign rating as the bank's ratings are at the Country Ceiling. VR - A significant deterioration of ABCBr's asset quality that results in credit costs that severely limit its profitability (operating profit to RWA ratio consistently below 1.0%); - A sustained decline in ABCBr's CET1 ratio below 11%. National Ratings - Unfavorable changes in ABCBr's credit profile relative to its Brazilian peers. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade IDRs and SSR - There is limited upside potential for ABCBr's IDRs, as these are at the level of Brazil's Country Ceiling and the Outlook on Brazil's LT IDRs is Stable. An upgrade could be possible by positive ratings action on Brazil; while ABCBr remains as an strategy subsidiary for its parent company. VR - The potential for positive rating action on ABCBr's VR is limited due to its operating environment, scale and representativeness in the Brazilian banking sector. National Ratings - The National Ratings are at the top of the National Rating Scale and thus further upgrades are not possible. VR ADJUSTMENTS The VR has been assigned in line with the implied VR. The funding & liquidity score of 'bb-' has been assigned above the implied 'b' funding & liquidity score due to the following adjustment reason: non-deposit funding (positive). Public Ratings with Credit Linkage to other ratings ABCBr's ratings and SSR are driven by support from the Arab Banking Corporation (ABC; LT FC IDR BBB-/Stable and VR bbb-). 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 ABC Brasil S.A. LT IDR BB+ Upgrade BB ST IDR B Affirmed B LC LT IDR BB+ Upgrade BB LC ST IDR B Affirmed B Natl LT AAA(bra) Affirmed AAA(bra) Natl ST F1+(bra) Affirmed F1+(bra) Viability bb Affirmed bb Shareholder Support bb+ Upgrade bb BANCO BOCOM: Fitch Affirms 'BB+' LongTerm Foreign Currency IDR -------------------------------------------------------------- Fitch Ratings has affirmed Banco BOCOM BBM S.A.'s (BOCOM BBM) Long-Term (LT) Foreign Currency (FC) Issuer Default Rating (IDR) at 'BB+', LT Local Currency (LC) IDR at 'BBB-' and LT National Rating at 'AAA(bra)'. The Rating Outlook is Stable. Fitch has also affirmed BOCOM BBM's Shareholder Support Rating (SSR) at 'bb+ and Viability Rating (VR) at 'bb'. Key Rating Drivers IDRs Moderate Probability of Support: Banco BOCOM BBM S.A.'s IDRs and National Ratings are driven by its SSR and reflect support from its ultimate parent, China's Bank of Communications Co., Ltd. (BOCOM; A/Stable/bb+). BOCOM BBM's LT FC IDR is rated five notches below that of BOCOM's and constrained by Brazil's 'BB+' Country Ceiling, while its LT LC IDR is currently capped at two notches above Brazil's LC sovereign rating (BB/Stable). This reflects Fitch's view that BOCOM's ability to provide support to its subsidiary's senior creditors is linked to Brazilian sovereign risk and might be reduced in case of extreme sovereign stress, despite the group's strategic commitment to the country. Strategically Important: The support assessment incorporates Fitch's view that BOCOM BBM's activities in Brazil are strategically important to the parent. This was evident from the group's efforts to deepen commercial activity with ordinary support via funding and capital and BOCOM BBM's efforts to increase synergies and operational integration with its parent. BOCOM owns close 100% of BOCOM BBM, and the parent's IDRs are driven by the Chinese state's ownership in the bank and its systemic importance. Under Fitch's assessment, Chinese state support to BOCOM would flow through to BOCOM BBM should the need arise. BOCOM has a strong ability to provide support, as BOCOM BBM's size is modest relative to the overall group. Strong Subsidiary Performance Weigh on IDRs: BOCOM BBM's business profile reflects its progress as a medium-sized foreign commercial bank primarily focused on corporate lending. Fitch acknowledges the bank's strengthened banking franchise, which has experienced significant growth in recent years and has resulted in a consistent financial performance that contributes to the parent's company objectives. VR Conservative Risk Profile: BOCOM BBM's VR considers its conservative underwriting standards, a reflection of the bank's cautious approach and appropriate risk-based pricing strategy. Credit risk is the main source of asset quality risk for BOCOM BBM. Resilient Asset Quality: BOCOM BBM has maintained better asset quality in recent years than domestic peers due to its conservative risk profile, which provides space to absorb expected deterioration from higher interest rates and Brazil's still-low economic growth. Under the perspective of Resolution 4,966 in March 2025, stage 3 loans represented 0.5% of the total portfolio, and the coverage for this stage was approximately 65%. Strong Profitability: Core earnings have steadily strengthened in recent years, helped by growing business volumes, improving revenue mix and cost optimization measures. The average operating profit to risk-weighted asset ratio was 3.2% for the four years from 2021 to 2024. Adequate Capitalization: Capitalization levels are adequate considering the bank's credit risk profile, well-managed market risks, good capital flexibility and ordinary support from the parent. As of December 2024, the bank's common equity Tier 1 (CET1) capital ratio stood at 8.9% and Basel ratio at 14.7% (15.7% at March 2025). Funding Diversified: Fitch's assessment of BOCOM BBM's funding and liquidity profile incorporates the benefits it derives from being part of BOCOM. Intragroup funding accounted for 29% of BOCOM BBM's funding base at end-March 2025. BOCOM BBM funds its loan book with a mix of customer deposits and deposit-like instruments, such as financial letters, agricultural letters. The bank's liquidity buffers are adequate due to limited forthcoming maturities. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade IDRs, SSR and National Ratings BOCOM BBM's IDRs, National Ratings and SSR could be downgraded if BOCOM's IDRs, from which they are notched, are downgraded by multiple-notches. However, BOCOM BBM's Long-Term IDR would not be downgraded to a level below its VR. VR The VR could be downgraded if the recovery of the Brazilian economy suffers a severe setback, causing a material weakening of the operating environment. In this scenario, pressure could stem from rapidly rising private-sector indebtedness and permanent erosion of business prospects. The VR could also be downgraded if, contrary to Fitch's expectations, BOCOM BBM's impaired loan ratio deteriorates to above 5%, resulting in deterioration of the profitability, with operating profits to RWA ratio consistently below 1.0% and CET 1 ratio below 8.0% or total capital ratio below 14%. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade IDRs, SSR and National Ratings BOCOM BBM's IDRs could be upgraded if Brazil's sovereign rating is upgraded, provided BOCOM BBM remains strategically important to BOCOM. VR There is limited rating upside at the current level of Brazil's sovereign rating. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS Ex-Government Support Ratings Key Rating Drivers BOCOM BBM's Long-Term Foreign- and Local-Currency IDRs (xgs) are at 'BB(xgs)' and are one notch below its parent's Long-Term IDR (xgs) of 'BB+(xgs)'. The Short-Term Foreign- and Local-Currency IDRs (xgs) have been affirmed at 'B(xgs)' and is mapped from its Long-Term IDR (xgs). The ex-government support ratings exclude assumptions of extraordinary government support from the underlying ratings. OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES Sensitivities BOCOM BBM's IDRs (xgs) are sensitive to changes in BOCOM's IDRs (xgs). VR ADJUSTMENTS - The Business Profile score of 'bb' has been assigned above the implied 'b' score due to the following adjustment reason(s): Group Benefits and Risks (positive). - The Capitalization & Leverage score of 'bb-' has been assigned above the implied 'b' score due to the following adjustment reason(s): Capital Flexibility and Ordinary Support (positive). - The Funding & Liquidity score of 'bb-' was assigned above the implied 'b' score due to the following adjustment reason: non-deposit funding (positive). Public Ratings with Credit Linkage to other ratings BOCOM BBM's IDRs and National Ratings are driven by support from the Bank of Communications Co, Ltd., which owns close 100% of BOCOM BBM. 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 BOCOM BBM S.A. LT IDR BB+ Affirmed BB+ ST IDR B Affirmed B LC LT IDR BBB- Affirmed BBB- LC ST IDR F3 Affirmed F3 Natl LT AAA(bra) Affirmed AAA(bra) Natl ST F1+(bra) Affirmed F1+(bra) Viability bb Affirmed bb Shareholder Support bb+ Affirmed bb+ LT IDR (xgs) BB(xgs) Affirmed BB(xgs) ST IDR (xgs) B(xgs) Affirmed B(xgs) LC LT IDR (xgs) BB(xgs) Affirmed BB(xgs) LC ST IDR (xgs) B(xgs) Affirmed B(xgs) BRAZIL: Private Investment Drives Infrastructure Boom ----------------------------------------------------- Rio Times Online reports that Brazil's infrastructure investment is set to climb in 2025, with private capital fueling a market-driven shift that could reshape the country's economic landscape. According to data from the Brazilian Association of Infrastructure and Basic Industries (Abdib), private investment in infrastructure is projected to reach R$372.3 billion ($67 billion) between 2025 and 2029, the report notes. This marks a 63.4% increase from last year's forecast for the 2024–2028 period, reflecting a surge in concessions and privatizations across key sectors, according to Rio Times Online. Highways stand at the forefront, with projected investments of R$288.6 billion ($52 billion), followed by railways at R$168.9 billion ($30 billion), urban mobility at R$115.6 billion ($21 billion), and sanitation at R$112 billion ($20 billion), the report relays. The privatization of São Paulo's water company, Sabesp, alone added R$66 billion ($12 billion) to the total projection, the report discloses. Even without Sabesp, private investment would still reach R$305.9 billion ($55 billion) by 2029, a 34.3% rise from the previous estimate, the report says. The government continues to play a role, but private companies now lead in both scale and pace, the report notes. In 2025, Brazil expects to surpass its 2024 record for highway investments, with fifteen highway concession auctions and one railway auction scheduled, the report relays. Brazil's Infrastructure Push These projects will cover more than 8,400 kilometers of roads and total R$161 billion ($29 billion) in investments, the report discloses. The government also plans to auction 22 port terminal projects, targeting R$8.7 billion ($2 billion) in additional investment, the report says. The energy sector will see significant activity, with planned electricity auctions in 2025 expected to drive R$47 billion ($8 billion) to R$57 billion ($10 billion) in new investments, the report relays. Major energy companies and equipment manufacturers are moving quickly to secure contracts and ramp up production, the report notes. Despite these advances, some challenges remain, the report says. The sanitation sector faces an investment shortfall, with a gap of R$19.5 billion ($4 billion) projected for 2025, the report notes. This underscores the need for more projects to meet national targets for universal service and landfill eradication, the report says. Brazil's GDP is forecast to grow by 2.1% in 2025, with infrastructure investment making up about 2.21% of GDP, the report relays. The private sector's growing role signals a shift toward a more efficient, competitive market, with broad implications for business and public services, 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. SUNCOKE ENERGY: Moody's Affirms 'B1' CFR, Outlook Remains Stable ---------------------------------------------------------------- Moody's Ratings affirmed SunCoke Energy, Inc.'s (SunCoke) ratings including its B1 corporate family rating, B1-PD probability of default rating, and the B1 rating on the senior secured first lien notes due 2029. The outlook remains stable. Its Speculative Grade Liquidity Rating of SGL-2 remains unchanged. "The affirmation of SunCoke's ratings reflects the expectation it will maintain credit metrics commensurate with its ratings on a pro forma basis including the mostly debt financed acquisition of Flame NewCo, LLC (Phoenix Global, B3 stable). It also incorporates the uncertainty around forthcoming blast furnace coke contract renewals and the risk of a secular decline in domestic coke demand and the potential required investments to potentially add pig iron production", said Michael Corelli, Moody's Ratings' Senior Vice President and lead analyst for SunCoke. RATINGS RATIONALE SunCoke's B1 corporate family rating reflects its moderate current leverage and Moody's expectations it will only modestly rise on a pro forma basis including the mostly debt funded acquisition of Phoenix Global, which will add new services, diversify the company's customer base and provide some geographic diversification. The rating also reflects the earnings floor offered by SunCoke's long-term take-or-pay contracts, which is somewhat offset by potential event and contract renewal risks related to its high customer concentration and reliance on the high carbon emitting and volatile integrated steel sector. These factors are leading to lower earnings in the near term and expiring blast furnace coke contracts create further downside risk. Its rating acknowledges the strength of SunCoke's relationships with its steelmaking customers, which despite headwinds faced by the industry in the past, either continued to take contracted deliveries or provided make-whole payments or extended contracts on largely similar terms in exchange for short-term volume relief. The company's coke supply contracts allow for the pass-through of most costs, including metallurgical coal, the principal raw material input and the largest cost component in the coke-making process. The rating also reflects the company's portfolio of efficient and technologically advanced coke batteries which gives it a competitive advantage over aging coke making facilities in North America that could continue to close due to environmental challenges and higher costs. SunCoke has entered into a definitive merger agreement to pay $325 million to acquire the common units of Flame Aggregator, LLC, which together with its subsidiaries operates as Phoenix Global. Phoenix Global is a privately held provider of mill services to major steel producing companies. SunCoke will fund the $325 million transaction with existing cash and about $230 million of borrowings under its undrawn $350 million revolving credit facility. SunCoke estimates it is paying about 5.4x trailing adjusted EBITDA of $61 million for the LTM period ended March 31, 2025. This excludes about $5 million - $10 million of expected synergies. The acquisition of Phoenix Global will enhance SunCoke's customer and geographic diversity, expand its service offerings and increase its exposure to electric arc furnace (EAF) steel producers which have more favorable secular growth characteristics than its core integrated steel customers. It also adds a business with stronger growth characteristics than its core cokemaking business and provides the opportunity to achieve estimated synergies of $5 million - $10 million. Nevertheless, SunCoke is acquiring a business that recently exited bankruptcy due to operational and financial issues, historically generates inconsistent cash flows, and also has relatively high customer concentration. This deal appears to be defensive in nature due to the secular risks for existing integrated steel customers and raises SunCoke's pro forma Moody's adjusted leverage ratio to about 2.7x from 2.3x based on Moody's 2025 earnings expectations. However, this leverage level will continue to support the B1 corporate family rating. This calculation assumes about $270 million in pro forma combined adjusted EBITDA including around $210 million - $220 million from SunCoke and $50 million - $60 million from the Phoenix acquisition. SunCoke's standalone earnings will significantly decline in 2025 as the extension of its Granite City cokemaking contract with United States Steel Corporation (U. S. Steel, Ba3 stable) is at lower economics and will adversely impact its financial results. It will also be negatively impacted by lower margins on higher spot coke sales due to challenging market conditions including tepid steel demand and oversupply in the seaborne coke market driving down coke pricing. The company should still be able to generate positive free cash flow even after dividend payments since it anticipates only about $65 million of capital expenditures. SunCoke's standalone earnings could decline further in 2026 depending on the economics of contract renewals with Cleveland-Cliffs Inc. and its capital spending could ramp up depending on the possible acquisition of U. S. Steel's Granite City Works blast furnaces and the construction of a granulated pig iron facility. However, this potential investment remains on hold pending the outcome of the potential acquisition of U. S. Steel by NIPPON STEEL CORPORATION (Baa2 stable). If earnings decline and spending ramps up, then it could put downward pressure on the company's outlook and/or ratings. SunCoke's SGL-2 speculative grade liquidity rating reflects its good liquidity position supported by $194 million in cash and full availability under its $350 million revolving credit facility (unrated) as of March 31, 2025. The company is expected to maintain a cash balance of around $100 million on a pro forma basis after completion of the Phoenix Global acquisition. Moody's expects the company to remain in compliance with the restrictive financial covenants under the credit agreement, which include a maximum consolidated leverage ratio of 4.5x and a minimum consolidated interest coverage ratio of 2.5x. SunCoke's senior secured notes due 2029 are rated B1 which is in line with the CFR and reflects the same security as the revolving credit facility. This includes a first lien claim on substantially all of the company's assets and the guarantors' existing and future assets, with certain exceptions of non-guarantor restricted and unrestricted subsidiaries which includes the company's international subsidiaries and the Indiana Harbor Coke Company, LP. The stable rating outlook reflects Moody's expectations the company will produce weaker operating results in 2025 but will maintain credit metrics that support its rating. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade would be considered if uncertainties around its expiring contracts are favorably resolved, and it successfully integrates the acquisition of Phoenix Global. Additional considerations for an upgrade would include sustaining strong credits metrics and good liquidity, maintaining or improving its position in the domestic foundry market or exporting coke on a more sustained basis to supplement, if required, lower coke sales under long-term take-or-pay contracts with domestic steelmakers. Quantitatively, the ratings could be upgraded if its leverage ratio is sustained below 2.5x. The ratings could be downgraded if liquidity were to deteriorate or if its leverage ratio were sustained above 4.0x. SunCoke Energy, Inc. is the largest independent US based producer of coke, a key ingredient in blast furnace steel production. The company owns and operates five metallurgical coke making facilities in the US and operates a coke making facility in Brazil on behalf of ArcelorMittal (Baa3 positive). The company's logistics business is comprised of three terminals and provides handling and mixing services to steel, electric utility, coke and coal producing and other manufacturing companies. The company generated about $1.9 billion in revenues for the LTM period ended March 31, 2025. The principal methodology used in these ratings was Steel published in November 2021. =============== C O L O M B I A =============== BOGOTA: Fitch Affirms 'BB+' LongTerm IDRs, Outlook Negative ----------------------------------------------------------- Fitch Ratings has affirmed Bogota, the Capital District of Colombia's, (Bogota) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB+' with a Negative Outlook. Fitch has also affirmed Bogota's senior unsecured bonds at 'BB+'. Fitch has additionally affirmed Bogota's National Scale Long-Term and Short-Term Ratings at 'AAA(col)' with Stable Outlook and 'F1+(col)', respectively. The affirmation of the IDRs is supported by Bogota's 2024 operating performance, which was relatively in line with Fitch's scenarios. Despite a moderate increase in the rating case payback ratio relative to the previous rating review, financial profile metrics remain consistent with a 'bbb-' Standalone Credit Profile (SCP), which is higher than Colombia's ratings (BB+/Negative). The Negative Outlook for the IDRs reflects that of the sovereign. KEY RATING DRIVERS Risk Profile: 'Low Midrange' Fitch assesses Bogota's risk profile at 'Low Midrange', reflecting a combination of key risk factors (KRFs), with five having 'Midrange' attributes and one assessed as 'Weaker'. Revenue Robustness: 'Midrange' The assessment for this key risk factor is supported by Bogota's revenue structure, made up mainly of locally collected taxes that have low-to-moderate cyclicality, with a highly diversified base. National transfers represent around 30% of operating revenue and close to 27% of total revenue, so the assessment is not limited by the sovereign rating. Revenue Adjustability: 'Midrange' Bogota can independently adjust its tax rates within national legal limits. Most current rates are well below the legal limit, but implementation of significant increases may not be feasible. Fitch estimates that using the legal leeway on rates for the Gross Receipts Tax (Impuesto de Industria y Comercio) and the Real State Property Tax would offset more than 200% of expected revenue declines during a typical economic downturn. This supports a 'Stronger' Revenue Adjustability assessment. However, Fitch caps the assessment at 'Midrange' because Bogota's GDP per capita is moderately low compared to its international peers, and Colombia's corporate tax burden is high. Fitch views the affordability of additional taxation as moderate, not strong. Expenditure Sustainability: 'Midrange' Bogota's expenditure is moderately correlated with the economic cycle. It has grown relatively in line with revenue during 2020-2024, with CAGRs of 13.6% and 13.4%, respectively. Bogota's most cyclical expenditure items correspond to social expenditure and healthcare insurance subsidies, which jointly represent nearly 25% of opex. Fitch believes a large amount of the social expenditure is relatively discretionary, while increases in healthcare insurance subsidies have historically been matched by additional transfers from the central government. Expenditure Adjustability: 'Midrange' Fitch estimates that mandatory expenditures represent between 70% and 90% of Bogota's total expenditure. Capex made up around 30% of total spending in 2021-2024, although part of that was funding for unavoidable expenses, such as multiyear infrastructure project commitments. The city could make cuts to discretionary social programs or raise bus fares to curb grants increases to the transportation system. These measures could be unpopular, but Fitch believes they would be feasible if the administration feels the city's financial stability is under pressure. Bogota has significant infrastructure needs, especially in the transportation sector, with multiyear commitments to several major infrastructure projects, many funded with national government aid. Some of these projects are under the scope of the central government's expenditure postponement at the beginning of 2025. City management is confident that the national government will make their payments on time, emphasizing that no budget cuts occurred and that the legal framework for future budget allocations has a long and successful track record of application. For more details, please see: Decreto de Aplazamiento Impactaría Proyectos de Transporte; GLR Respaldan Calificaciones. Liabilities & Liquidity Robustness: 'Midrange' Bogota operates under a moderate national and individual debt management framework. The city has negligible foreign-exchange risk, with only around 1% of outstanding debt at YE 2024 denominated in foreign currency. Interest rate risk is moderate, with variable interest debt representing close to 60% of direct debt. As of December 2024, the city has a new borrowing limit of approximately COP21.2 trillion, at prices from the same date, which Fitch incorporated partially into its scenarios based on the city's projections. Bogota's direct debt at YE 2024 was approximately COP10.9 trillion. The city's adjusted debt includes an estimate of its share in the debt of Empresa Metro de Bogota S.A. (EMB; AAA(col)/Stable), valued at close to COP758 billion at YE 2024. This leads to an adjusted debt calculation of COP11.6 trillion at YE 2024. Bogota's net adjusted debt is equal to its gross adjusted debt, because Fitch considers all the city's COP4.8 trillion in cash at YE 2024 restricted. Fitch estimates Bogota's weighted-average life of debt at YE 2024 was close to nine years, reflecting the long-term nature of the city's debt portfolio. Inflation is the main variable that could affect Bogota's debt stock. However, Fitch considers it manageable due to the inflation target of Colombia's central bank and the natural hedge provided by the tendency for revenue to adapt to changes in prices. There is no significant maturity concentration, as the debt portfolio comprises a mix of bullet bonds with maturities spread over different time periods and amortizing loans. Liabilities & Liquidity Flexibility: 'Weaker' Fitch believes Bogota's available liquidity is low. At YE 2024, the city's total cash exceeded its reported accounts payable and other short-term commitments by about COP840 billion. However, this is more than offset by the requirement to transfer about COP1.7 trillion belonging to the second metro line project by August 2025, which the city had been managing in its treasury for the past three years. Fitch believes Bogota has sufficient borrowing capacity and budget flexibility to cover the deficit, but the city's cash is fully committed to honor short-term obligations. It also does not have any committed credit lines with providers rated above 'BB+'. Financial Profile: 'aa category' Fitch classifies Bogota as a Type B LRG under its International local and regional government (LRG) rating criteria. The city is required to cover its debt service from cash flow on an annual basis. Therefore, the primary metric to assess financial profile is the payback ratio. Bogota's average payback ratio would be 7.7x for 2028-2029 in Fitch's rating case, compared with 5.2x in 2024 and a reference of 7.3x in the previous review's rating case, still indicative of a 'aa' assessment. The SDSCR would be in the 'bbb' range, just above 1.2x. Ultimately, the financial profile assessment is defined by the payback ratio, which is the primary metric. Fitch does not apply an override to the FP score due to the relatively weaker SDSCR as Fitch believes that Bogota has the capacity to refinance its debt easily. According to Fitch's rating case, operating margins will remain stable slightly above 10%, a reflection of Bogota's moderate revenue and expenditure adjustability. Fitch estimates a COP12.5 trillion net increase in direct debt throughout the scenario horizon, comparable with that envisaged in the last rating review, which would be enough to finance capex amounting to only around 70% of the historical average, in real terms. However, capex may be higher depending on the ability of the district to implement extraordinary measures that are not factored into the scenario. Derivation Summary Bogota's SCP of 'bbb-' results from a combination of 'Low Midrange' risk profile and a financial profile score at the lower end of the 'aa' category. The latter is derived from a payback ratio near the middle of the 'aa' category range and a relatively weaker SDSCR in the 'bbb' range. The SCP also factors in the city's comparison with national and international peers. At the local level, Bogota's financial profile metrics are comparable to those of the Special Industrial and Port District of Barranquilla (BB/Positive) and the City of Medellin (BB+/Negative). However, the latter's financial profile score is overridden due to a weaker SDSCR, as Fitch believes Barranquilla and Medellin do not have the same structural strengths as Bogota to tackle weaker debt service coverage. Therefore, the SCPs of Barranquilla and Medellin are one category below that of Bogota. International peers include the Romanian Cities of Piatra Neamt, Galati and Buzau (BBB-/Negative) and the Metropolitan Municipality of Lima, Peru (BBB/Stable), whose risk profile assessment and financial profile metrics position them in the same SCP category as Bogota. Bogota's IDRs are not affected by any other factors but are constrained by the sovereign and capped at 'BB+'. National Ratings Bogota's 'AAA(col)' National Long-Term Rating corresponds to its 'BB+' Long-Term Local-Currency IDR, which is capped by the sovereign. Its 'F1+(col)' National Short-Term Rating is the only one corresponding to the National Long-Term Rating. Debt Ratings The rating of Bogota's senior unsecured bond maturing in 2028 is the same as Bogota's Foreign-Currency IDR of 'BB+'. The local bond program is senior unsecured and therefore rated at 'AAA(col)', the same level as the issuer. Key Assumptions Risk Profile: 'Low Midrange' Revenue Robustness: 'Midrange' Revenue Adjustability: 'Midrange' Expenditure Sustainability: 'Midrange' Expenditure Adjustability: 'Midrange' Liabilities and Liquidity Robustness: 'Midrange' Liabilities and Liquidity Flexibility: 'Weaker' Financial Profile: 'aa' Asymmetric Risk: 'N/A' Support (Budget Loans): 'N/A' Support (Ad Hoc): 'N/A' Rating Cap (LT IDR): 'BB+' Rating Cap (LT LC IDR) 'BB+' Rating Floor: 'N/A' Quantitative assumptions - Issuer Specific Fitch's rating case is a "through-the-cycle" scenario, which incorporates a combination of revenue, cost and financial risk stresses. It is based on 2020-2024 figures and 2025-2029 projected ratios. The key assumptions for the scenario include: - Tax revenues grow in line with national GDP and lagged inflation and consider a moderate increase in tax rates in recognition of Bogota's revenue adjustability, resulting in an average annual growth rate of 6.3%; - Current transfers received grow at an average rate of 8.7% per annum, considering allocation made for 2025, historical and conservative expectations for growth of national government revenues; - Total operating revenue grows at an average rate of 6.7% per annum; - Most operating expenditure items grow in line with lagged inflation plus between 0 and 3 percentage points; - Grants to the transportation system remain around COP3.3 trillion throughout the scenario horizon; - Total operating expenditure grows at an average rate of 6.3% per annum; - Average capital balance declines to near COP4.7 trillion per year due to a decrease in the level of capex; - Average cost of debt of 7.3%. - New borrowing according to management forecasts, with total debt reaching approximately COP24 trillion by the final year of the scenario. - Other Fitch-classified debt based on a Fitch-estimate of Bogota's share of the debt of infrastructure projects partially funded by the District and future debt forecast for these projects, reaching approximately COP3.5 trillion by the final of the scenario. Summary of Financial Adjustments - Fitch's analysis considers the city's annual budget, which includes Bogota's public establishments. Fitch does not consider the revenue and expenditure of Universidad Distrital for its analysis but considers Bogota's transfers to the university as part of operating expenditure. - Revenues collected on behalf of CAR de Cundinamarca are excluded from revenues, and transfers of these revenues to CAR de Cundinamarca are excluded from expenditure. - Ordinary dividends from Grupo de Energia de Bogota S.A. E.S.P. GEB [BBB/Stable] are reclassified from capital revenue to operating revenue. - Non-recurring transfers reported as current transfers are reclassified as capital transfers. - Fiscal surplus from previous fiscal years is excluded from revenues, and payment of expenses committed during previous fiscal years are excluded from expenditure. - Bogota's operating expenditure is based on a Fitch estimate and includes items reported under "investment expenditure" that Fitch believes to be recurring in nature. These include staff and other operating costs of the education sector, subsidies and grants for utilities, health insurance, and transportation, among others. - Personnel expenses include social security contributions to the National Fund for Teachers' Benefits (FOMAG) postponed due to insufficient resources. Additionally, payments made for debts from previous fiscal years are excluded. - The analysis excludes pass-through withdrawals from the National Fund for Territorial Pensions (Fonpet) used to cover pension obligations as well as the expenses covered with these resources. - Some other items of minor significance are reclassified between revenue accounts according to Fitch's opinion of their true nature. - Fitch's adjusted debt includes a portion of the debt of the first metro line, corresponding to the inflation-adjusted value of the principal of a series of annuities issued by EMB. Issuer Profile Bogota is Colombia's capital city and its most important economic hub. As of 2024, its population is estimated at close to eight million. Bogota's GDP per capita is more than 1.6x the national average. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A downgrade of Colombia's IDRs would lead to a downgrade of Bogota's IDRs; - Bogota's IDRs could be downgraded if its SCP is lowered to 'bb' or below, resulting from a payback ratio above 9.0x in the last years of Fitch's rating case. This could result from the city failing to control expenditure growth, boost its revenues or achieve sustained national funding for the transportation system over the medium term; - Bogota's National Long-Term Rating could be downgraded if the payback ratio were close to 9.0x in the last years of the rating case. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An upgrade of Colombia's IDRs would lead to an upgrade of Bogota's IDRs, as long as its payback ratio remains near the middle of the 'aa' category, supporting an SCP above the current sovereign ratings; - An upgrade of Bogota's national scale ratings is impossible, as they are the highest ratings possible. 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. Public Ratings with Credit Linkage to other ratings Bogota's ratings are capped by the sovereign (BB+). Entity/Debt Rating Prior ----------- ------ ----- Bogota, Distrito Capital LT IDR BB+ Affirmed BB+ LC LT IDR BB+ Affirmed BB+ Natl LT AAA(col) Affirmed AAA(col) Natl ST F1+(col) Affirmed F1+(col) senior unsecured LT BB+ Affirmed BB+ senior unsecured Natl LT AAA(col) Affirmed AAA(col) =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: High Business Closure Rates ----------------------------------------------- Dominican Today reports that in the Dominican Republic, companies that remain inactive for 24 to 59 months are designated as being in a "cessation" state. According to the National Statistics Office (ONE), over 31,400 businesses were officially declared closed in the past year, accounting for 69.2% of all cessation cases. This data comes from the 2024 edition of the Formal Business Directory and Demographics report, which also revealed that the national cessation rate—reflecting the proportion of inactive versus active businesses - stood at 26.3%, according to Dominican Today. Micro-enterprises, especially those with one to ten employees, were the most affected, making up the bulk of closures with 29,301 businesses (30.4%), the report notes. In contrast, large enterprises represented only 166 cases (12.0%), the report relays. Of the closures, 8,563 were just beginning the shutdown process (18.9%), and 5,417 were fully defunct (11.9%), the report discloses. From an industry standpoint, the "Accommodation and Food Service Activities" sector had the highest closure rate at 33.6%, followed by mining and quarrying (31.4%), and administrative services (30.2%), the report says. Commerce, though with a slightly lower closure rate of 27.3%, saw the highest number of affected companies (10,552), the report relays. The sectors least affected were healthcare (13.2%), real estate (15.5%), and water supply (17.7%), the report notes. Regionally, the highest cessation rates were found in Bahoruco (33.3%), El Seibo (33.1%), Barahona (31.5%), San Pedro de Macorís (31.3%), Santo Domingo (30.3%), and the National District (28.9%), the report relays. In contrast, provinces such as Espaillat (15.0%), Santiago Rodríguez (15.2%), Monte Cristi (18.1%), and Duarte (18.7%) had the lowest closure rates, 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 ============= NATIONAL COMMERCIAL: Launches Voice Guidance Feature on ABMs ------------------------------------------------------------ RJR News reports that National Commercial Bank Jamaica recently launched a new voice guidance feature across 190 of its selected automated banking machines (ABMs). This new feature will help blind or visually impaired customers to conduct their banking transactions with greater ease by just plugging in an earphone and listening to the instructions given by the machine, according to RJR News. As reported in the Troubled Company Reporter-Latin America in March 2024, Fitch Ratings upgraded National Commercial Bank Jamaica Limited's (NCBJ) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) to 'BB-' from 'B+'. Fitch has also upgraded NCBJ's Viability Rating (VR) to 'bb-' from 'b+'. The Rating Outlooks on the Long-Term IDRs are Positive following a similar Outlook on Jamaica's Long-Term IDRs. ======= P E R U ======= PERU: Tightens NGO Oversight Amid Corruption Concerns & Warnings ---------------------------------------------------------------- Rio Times Online reports that official documents from the Inter-American Commission on Human Rights and the United Nations confirm that Peru's government has enacted laws sharply increasing state control over non-governmental organizations and the justice system. In March 2025, Peru's Congress passed a law requiring all foreign-funded NGOs to get prior approval from the Peruvian Agency for International Cooperation before starting projects, according to Rio Times Online. Failure to comply can lead to heavy fines or suspension, the report notes. The law also prohibits NGOs from using foreign funds to file lawsuits against the state, risking fines up to $720,000 or loss of legal status, the report notes. Critics warn this silences dissent and restricts access to justice, especially for vulnerable groups, the report relays. Peru's government defends the law as necessary to prevent misuse of foreign funds and protect national interests, the report discloses. Officials claim some NGOs act against the country's stability or provide cover for criminal activity, the report says. This mirrors a global trend: the United States, for example, now requires agencies to review all NGO funding and restricts grants to organizations not aligned with national priorities, the report relays. Official reports confirm that some NGOs worldwide have engaged in fraud or money laundering, but critics argue existing laws already address such abuses, the report notes. The Peruvian law grants broad powers to cancel NGO registrations for vaguely defined offenses and places all NGOs under anti-money laundering oversight, the report relays. Observers say these measures may stifle legitimate civil society work and deter investment by increasing regulatory uncertainty, the report says. For businesses, these changes signal potential risks in partnerships and compliance, the report discloses. All facts and figures in this report are drawn from official sources and authoritative research. No claims or data are fabricated, the report adds. ===================================== T R I N I D A D A N D T O B A G O ===================================== TRINIDAD & TOBAGO: Tewarie Hopes for Good Relations with Venezuela ------------------------------------------------------------------ Raphael John-Lall at Trinidad and Tobago Guardian reports that Former Planning Minister during the People's Partnership Government, Dr Bhoe Tewarie, is hoping Trinidad & Tobago can manage its relationship with Venezuela, given the potential for trade and business ties in the future. The report notes that in early June, tensions boiled over with Venezuela when Prime Minister Kamla Persad-Bissessar threatened to use "lethal force" after Venezuelan officials alleged that at least one T&T national was captured trying to destabilise Venezuela along with other Colombian paramilitaries. Persad-Bissessar then vowed to align her position on Venezuela with that of US President Donald Trump, who has partially banned Venezuelan citizens from travelling to the United States and has tightened economic sanctions, the report relays. This debacle comes after another low point in relations when in April, former Prime Minister Stuart Young announced that the United States had revoked the two licenses they granted in the past for the development of offshore natural gas projects between T&T, and Venezuela, the report discloses. Despite ideological and political differences between the two neighbours, Tewarie cautioned T&T in the way Venezuela is handled and pointed to possible economic cooperation in the future, the report relays. Tewarie also noted that Venezuela has one of the world's largest resources bases and T&T must keep all options available in terms of future partnerships, the report notes. At the same time, Tewarie said the Venezuelan authorities were "way out of line" in making baseless allegations against T&T, the report discloses. While he advised T&T to continue to develop bilateral economic ties with China and other BRICS members, he said it must be done on T&T's terms rather being aligned with Venezuela President Maduro's regime, the report notes. Relationship History The relationship between Persad-Bissessar and Maduro was not always in a state of crisis. In fact, exactly 10 years ago, the two leaders met in Port-of-Spain, signed agreements, shook hands and promised stronger economic and diplomatic relations, the report discloses. Both leaders first met in 2013 and in 2015, Maduro again travelled to T&T where both signed energy agreements and promised to boost trade and business ties, the report relays. At that time, Persad-Bissessar called the signing of the energy agreements "historic," the report relays. Trade and Tourism According to Venezuela's Central Bank, Venezuela's economy continues its fourth year of strong economic growth as the Gross Domestic Product (GDP) grew by 9.3 per cent in the first quarter of 2025, the report relays. As recently as February, Venezuela's Minister of Trade Coromoto Godoy met officials from T&T's Embassy in Caracas where both countries discussed the potential of increasing business and trade ties, the report notes. T&T's exports to Venezuela were US$5.53 million during 2024, according to the United Nations COMTRADE database on international trade.Some of T&T's exports for that year included essential oils, cosmetics and toiletries, articles of apparel and plastics, the report discloses. T&T's imports from Venezuela were US$2.39 million during 2024, according to the United Nations COMTRADE database on international trade, the report relays. Some of T&T's imports from Venezuela included glass products, iron and steel and beverages like spirits and vinegar, the report says. In 2023, T&T exported US$4.76 million in goods to Venezuela, the report recalls. Between 2018 and 2022, there was a sharp decline in trade between T&T and Venezuela, according to official Venezuelan Government statistics, the report notes. According to statistics from Venezuela's now defunct trade agency, CENCOEX in 2018, 22 Venezuelan companies exported US$25,563,473 worth of products to T&T, the report relays. By 2022, only three Venezuelan companies exported US$76,317 worth of products to T&T, the report notes. In 2023, for the first time in three years, there was a direct flight with 110 passengers from T&T to Margarita on Venezuelan airline Rutaca. There has been a continuous flow of tourists to Venezuela from T&T since then, the report adds. ********* 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 * * *