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250624.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Tuesday, June 24, 2025, Vol. 26, No. 125 Headlines B E R M U D A FIDELIS INSURANCE: S&P Rates $400MM Subordinated Notes 'BB+' C A Y M A N I S L A N D S PHOENIX AVIATION: Fitch Assigns B(EXP) LongTerm IDR, Outlook Stable D O M I N I C A N R E P U B L I C [] DOMINICAN REPUBLIC: To Promote Exports at MIDA 2025 Food Show E C U A D O R ECUADOR: New Mining Charges Raise Industry Costs & Env'l. Stakes J A M A I C A JAMAICA: BOJ to Withdraw Another $21BB From the Financial System JAMAICA: SIA Seeks Buyers for Idle Sugar Sampler Units P U E R T O R I C O BEYOND MANAGEMENT: Seeks to Hire Tamarez CPA LLC as Accountant - - - - - ============= B E R M U D A ============= FIDELIS INSURANCE: S&P Rates $400MM Subordinated Notes 'BB+' ------------------------------------------------------------ S&P Global Ratings assigned its 'BB+' issue rating to Fidelis Insurance Holdings Ltd.'s (Fidelis') $400 million, 7.75% subordinated notes due 2055. S&P's issue-level rating is two notches below its long-term issuer credit rating on Fidelis (BBB/Stable/--), reflecting the notes' subordination, mandatory deferability of interest payments, and principal redemption that is subject to Bermuda Monetary Authority (BMA) redemption requirements. These notes are contractually subordinated to policyholder obligations and to all existing and future unsecured senior debt of Fidelis. The notes also rank senior in right of payment with all existing and future unsecured junior subordinated indebtedness of the company. Fidelis intends to use a portion of the net proceeds from this offering for the redemption of the currently outstanding $58.4 million, 9.00% preference securities. The remaining proceeds will be used for general corporate purposes. Fidelis' financial leverage was 17.9% as of the first quarter 2025 and will elevate to 26.5% after issuance and redemption of the existing preference securities. S&P said, "Prospectively, we expect financial leverage to remain in the mid-20s in 2025 and lower to the low 20s in 2026 and 2027. Fixed-charge coverage was 5.3x as of year-end 2024, and we expect it to fall below 4x in 2025 but rise to above 4x in 2026 and 2027." The proposed issuance has received Tier 2 capital treatment under the BMA's capital requirement rules. S&P assigns intermediate equity content to these subordinated notes. Fidelis will likely report additional adverse development from the recent English High Court ruling related to aircraft lessor business subject to the Russia-Ukraine aviation litigation. This, in combination with the California Wildfire losses in January of this year, could lead to weaker underwriting performance in 2025. However, the company benefits from sizeable capital redundancy at the 99.99% confidence level per our capital model, and S&P believes these losses will likely be an earnings event rather than a capital event. =========================== C A Y M A N I S L A N D S =========================== PHOENIX AVIATION: Fitch Assigns B(EXP) LongTerm IDR, Outlook Stable ------------------------------------------------------------------- Fitch Ratings has assigned an expected Long-Term Issuer Default Rating (IDR) of 'B(EXP)' to Phoenix Aviation Capital Limited (PAC). The Rating Outlook is Stable. Fitch has also assigned an expected rating of 'B(EXP)' with a Recovery Rating of 'RR4' to PAC's announced $500 million senior unsecured debt issuance. The fixed rate of interest and maturity date will be determined at the time of issuance. PAC's planned senior unsecured debt issue will materially alter the company's funding structure and overall credit profile. Fitch expects to assign a final Long-Term IDR and final debt ratings once PAC has successfully completed its anticipated bond issue and final debt documents have been received. Key Rating Drivers Full-Service Lessor of New Technology Aircraft: PAC's expected rating reflects its nominal, but growing franchise as a global, full-service lessor of new tech narrowbody aircraft, appropriate current and target leverage, lack of meaningful near-term debt maturities and sound profitability metrics. Ambitious Growth Targets: Rating constraints include execution risk associated with the company's ambitious growth targets and short operating track record as a standalone lessor; reliance on wholesale secured funding; a smaller and significantly concentrated portfolio by customer and geography; and funding and placement risks with the firm's sizeable orderbook. Fitch also notes potential governance weaknesses and conflicts of interest associated with PAC's externally managed business model, limited number of board members, and ownership by fixed life funds. Sector Constraints: Rating constraints applicable to the aircraft leasing industry more broadly include the monoline nature of the business, vulnerability to exogenous shocks, sensitivity to higher oil prices, inflation and unemployment, which negatively impact travel demand, potential exposure to residual value risks, reliance on wholesale funding sources, and meaningful competition. These constraints are further influenced by Fitch's expectation for a less favorable operating environment, including a moderation in travel demand due to dampening global economic growth. Nominal Franchise: As of March 31, 2025, PAC had a small, and highly concentrated portfolio of 17 owned aircraft leased to seven airlines across six countries. The portfolio, which includes a 72% stake in three A330-300s, had a net book value (NBV) of approximately $878 million as of March 31, 2025. PAC possesses a committed orderbook for 30 Boeing B737-8 aircraft scheduled for delivery through 2028, along with purchase rights for an additional 30 B737-8 aircraft that, if exercised, could be delivered in 2029 and 2030. Sale-leaseback and secondary market opportunities could supplement portfolio growth in the medium-term. Attractive but Concentrated Portfolio: PAC's portfolio comprises highly liquid tier 1 (87% of NBV) and tier 2 aircraft (13%), as categorized by Fitch, with a weighted average age of the owned portfolio of 4.7 years, and average remaining lease term of 7.3 years, as of March 31, 2025. This represents a young portfolio with long remaining lease terms, which could translate to strong asset quality performance over time. Modest Earnings: Fitch anticipates the firm's lack of scale and ambitious growth strategy amid increased competition will have a negative impact on near-term profitability. Net spreads (lease yields - funding costs) were 2.0% in 2024. Fitch expects net spreads to stay within the 'bb' benchmark range of 1%-5% for aircraft lessors with a sector risk operating environment (SROE) score in the 'bbb' category over the medium-term. Adequate Leverage: Management articulated a leverage target of 3.0x on a net debt to equity basis. Fitch's calculated leverage (gross debt to tangible equity), which treats PAC's preferred shares as 100% equity, was 1.6x as of Dec. 31, 2024, but is expected to rise to 2.6x following the close of PAC's inaugural unsecured debt issuance. Fitch believes PAC's leverage is appropriate in the context of current concentrations as well as the liquidity of the fleet profile, as the majority of the portfolio is expected to remain tier 1. Evolving Funding Mix: PAC's current funding profile is 100% secured, which is viewed to be a rating constraint. Current funding is comprised of secured term loans and financings backed by aircraft. The company plans to issue a $500 million senior unsecured note in June 2025, the proceeds of which are expected to repay outstanding amounts under existing term loans and will increase unsecured debt to 38% of total debt on a proforma basis. Fitch anticipates that the unsecured funding mix will decrease in upcoming periods as the company seeks more secured debt to support order book deliveries. However, it is expected to stay within the 'bb' benchmark range of 10%-35% for aircraft lessors with a sector risk operating environment (SROE) score in the 'bbb' category over the medium term. Fitch would positively view a sustained increase in the proportion of unsecured debt in the capital structure, as it enhances funding flexibility during times of stress. Liquidity in Focus: PAC faces heightened funding, and placement risks due to its substantial order book commitments, which were 100% placed in 2025, 14% placed in 2026 and 24% placed in 2027. Although liquidity from existing facilities is limited, the company anticipates finalizing a $500 million committed warehouse facility by June 2025, which will significantly bolster its current liquidity position. As of Dec. 31, 2024, pro forma for the new warehouse facility, liquidity resources for the next 12 months would be $562 million, which includes $6 million in unrestricted cash, $500 million from the committed warehouse facility, $37 million in operating cash flow, and $20 million from aircraft sales. This provides liquidity coverage of 1.4x relative to next 12-month order purchase commitments of $407 million. PAC also benefits from $425 million of additional commitments from BC Partners Credit (BCP) ($100 million debt financing and $325 million equity financing), which Fitch views positively. Additionally, Fitch believes that refinancing risk will be manageable due to the lack of near-term debt maturities. Stable Outlook: The Stable Outlook reflects Fitch's expectation that PAC will manage its balance sheet growth to maintain sufficient headroom relative to its targeted leverage range and Fitch's negative rating sensitivities for liquidity coverage over the Outlook horizon, despite Fitch's expectation for increased macro challenges including elevated market volatility, higher interest rates relative to recent years and growing inflation. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Upon execution of the planned senior unsecured debt issuance, Fitch would expect to convert PAC's expected ratings to final ratings. Failure to execute on the unsecured debt issuance would result in the expected ratings being lowered to 'B-'. - Beyond this, negative rating action could result from weakening in the company's projected long-term cash flow generation, net spreads sustained below 1%, liquidity coverage dropping below 1.0x, and/or a sustained increase in gross leverage above 3.0x. - Macroeconomic and/or geopolitical headwinds that lead to lease restructurings rejections, lessee defaults, and increase losses, or a material deterioration in fleet quality, particularly concerning the proportion of tier 1 aircraft, average fleet age, and average lease terms, could also negatively impact ratings. - PAC's ownership by private funds could lead to negative rating actions if it results in elevated capital extractions or if a forced sale of the company at fund maturity undermines PAC's financial profile, franchise, or long-term strategic direction. - Shortcomings in corporate governance or conflicts of interest that weaken PAC's franchise position, limiting its ability to pursue new business opportunities. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Upon execution of an inaugural unsecured note, Fitch would expect to convert PAC's expected 'B(EXP)' Long-Term IDR and senior unsecured debt rating of 'B(EXP)'/'RR4' to final ratings of 'B' and 'B'/'RR4', respectively. Beyond that, positive rating action could result from the following: - Strong execution of its planned growth targets and long-term strategic financial objectives, including maintaining leverage within the targeted range. - Ratings could also benefit from increased scale, greater lessee diversification with no airline exceeding 10% of NBV, enhanced geographic diversification of the fleet, maintenance of low impairment ratios, and demonstrated track record of funding and placement of orderbook deliveries. - An upgrade could also be contingent upon sustained net spreads above 2%, while maintaining liquidity coverage above 1.2x and an unsecured funding mix of 20% on a sustained basis. DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS The expected senior unsecured debt rating is equalized with the expected Long-Term IDR, reflecting average recovery prospects under a stress scenario. DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES The expected senior unsecured debt rating is primarily sensitive to changes in Phoenix's expected Long-Term IDR and secondarily to the relative recovery prospects of the instruments. A decline in projected unencumbered asset coverage, combined with a material increase in secured debt, could result in the notching of the unsecured debt down from the IDR. ADJUSTMENTS - The Standalone Credit Profile (SCP) has been assigned in line with the implied SCP. - The Asset Quality score has been assigned below the implied score due to the following adjustment reasons: Concentrations; asset performance (negative), Risk profile and business model (negative). - The Earnings & Profitability score has been assigned below the implied score due to the following adjustment reason: Historical and future metrics (negative). - The Capitalization & Leverage score has been assigned below the implied score due to the following adjustment reasons: Risk profile and business model (negative), Historical and future metrics (negative). Date of Relevant Committee 30 May 2025 ESG Considerations Phoenix Aviation Capital Limited has an ESG Relevance Score of '4' for Management Strategy due to execution risk associated with the operational implementation of the company's outlined business plan, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Phoenix Aviation Capital Limited has an ESG Relevance Score of '4' for Governance Structure due to potential governance and conflicts of interest risks associated with PAC's limited number of independent board members and ownership by a fixed-life fund structure and external management. Shortcomings in corporate governance or conflicts of interest that weaken PAC's franchise position, limited its ability to pursue new business opportunities, could have a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery ----------- ------ -------- Phoenix Aviation Capital Limited LT IDR B(EXP) Expected Rating senior unsecured LT B(EXP) Expected Rating RR4 =================================== D O M I N I C A N R E P U B L I C =================================== [] DOMINICAN REPUBLIC: To Promote Exports at MIDA 2025 Food Show ---------------------------------------------------------------- Dominican Today reported that the Dominican Republic Export and Investment Center (ProDominicana) participated in the 2025 MIDA Conference & Food Show, that took place on June 19 to 21, 2025, in San Juan, Puerto Rico. The event offers a key platform to promote Dominican food products and connect local exporters with major markets in the Caribbean and the United States, according to Dominican Today. Organized by Puerto Rico's Chamber of Marketing, Industry and Food Distribution (MIDA), the trade show brought together more than 500 exhibitors and over 15,000 professionals in the regional food sector, including wholesalers, retailers, buyers, and industry leaders, the report notes. ProDominicana's executive director, Biviana Riveiro Disla, emphasized the opportunity to showcase the quality and competitiveness of Dominican goods, stating that the goal is to position the country as a trusted supplier in the Caribbean and beyond, the report relays. The Dominican pavilion featured local brands such as Miel de La Abuela, AMR AGRO, Antelo Dominicana, Agrio Fresh, and Oliver & Oliver International, among others, the report discloses. The agenda includes product exhibitions, business roundtables, and networking events, the report says. Riveiro also served as a keynote speaker at the "Business Opportunities in the Dominican Republic" panel on June 20 in Hato Rey, alongside meetings, company visits, and agreement signings to boost bilateral trade, the report adds. About Dominican Republic The Dominican Republic is a Caribbean nation that shares the island of Hispaniola with Haiti to the west. Capital city Santo Domingo has Spanish landmarks like the Gothic Catedral Primada de America dating back 5 centuries in its Zona Colonial district. Luis Rodolfo Abinader Corona is the current president of the nation. TCR-LA reported in April 2019 that Juan Del Rosario of the UASD Economic Faculty cited a current economic slowdown for the Dominican Republic and cautioned that if the trend continues, growth would reach only 4% by 2023. Mr. Del Rosario said that if that happens, "we'll face difficulties in meeting international commitments." An ongoing concern in the Dominican Republic is the inability of participants in the electricity sector to establish financial viability for the system. Standard & Poor's credit rating for Dominican Republic was raised to 'BB' in December 2022 with stable outlook. Moody's credit rating for Dominican Republic was last set at Ba3 in August 2023 with the outlook changed to positive. Fitch, in December 2023, affirmed the Dominican Republic's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-' and revised the outlook to positive. ============= E C U A D O R ============= ECUADOR: New Mining Charges Raise Industry Costs & Env'l. Stakes ---------------------------------------------------------------- Juan Martinez at Rio Times Online reports that Ecuador's government has started charging a new fee to mining companies, aiming to collect $229 million each year. Officials said this money will help them better control mining activities and fight illegal mining, which has caused serious environmental problems in the country, according to Rio Times Online. The new fee began in June 2025 and applies to almost all mining companies, except for small-scale, artisanal miners, the report notes. The fee is highest for companies exploring new mining sites, the report relays. They now pay up to $11.50 per hectare, which is more than in other Latin American countries, the report discloses. For example, Colombia charges $6.70, Chile $4.50, and Peru $3 per hectare, the report says. Mining companies in Ecuador say this fee is too high, especially for early-stage projects that do not make money yet, the report relays. They warn that these costs could stop new projects from starting, which would mean less investment in Ecuador, the report notes. Mining has become an important part of Ecuador's economy. In 2024, the government collected over $1 billion in mining taxes, up 218% from 2019, the report recalls. Mining now makes up about 5% of all tax revenue, and the government expects this share to grow as more projects begin, the report says. The country's mining exports, mainly copper and gold, are set to reach over $4 billion a year, making mining the third-largest export sector by 2025, the report notes. Despite the economic benefits, illegal mining has grown quickly and doubled since 2020, the report recalls. This has led to pollution, deforestation, and damage to Indigenous lands, the report notes. Armed groups have also moved into mining areas, making the situation even more difficult, the report discloses. The government says the new fee will help pay for better monitoring and environmental protection, the report relays. Industry groups say the government did not discuss the fee with them before making it law, the report notes. They argue that these high costs could hurt Ecuador's reputation and make investors look elsewhere, the report relays. In 2024, investment in mining exploration in Ecuador was $67 million, much less than in Argentina, Peru, or Chile, the report discloses. Ecuador's new mining fee shows the challenge of balancing government income, attracting investment, and protecting the environment, the report adds. ============= J A M A I C A ============= JAMAICA: BOJ to Withdraw Another $21BB From the Financial System ---------------------------------------------------------------- RJR News reports that the Bank of Jamaica says it plans to withdraw another 21 billion dollars from the financial system on June 18, 2025 through the issue of a 30-day Certificate of Deposit. The short-term instrument will carry an interest rate of six per cent per year and will mature on July 18, according to RJR News. Private financial institutions and individuals will be able to compete for J$19.95 billion, while the remaining portion will be allocated to public sector bodies, including the National Insurance Fund and other government agencies, the report notes. The Bank notes that interest earned on the deposit will be taxed at a rate of 25 per cent, and the minimum investment required is 100 thousand dollars, 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: SIA Seeks Buyers for Idle Sugar Sampler Units ------------------------------------------------------ Karena Bennett at Jamaica Observer reports that the Sugar Industry Authority (SIA) is seeking buyers for core sampler units at four non-operational sugar estates, in what appears to be a further step toward clearing legacy assets linked to Jamaica's once-dominant sugar sector. Offers are being invited for the purchase of the non-functioning equipment located at Bernard Lodge in St Catherine, Golden Grove in St Thomas, Long Pond in Trelawny, and Appleton Estate in St Elizabeth, according to Jamaica Observer. Interested parties had until June 20 to indicate their interest by email, after which they will be invited to inspect the units on site, the report notes. SIA says additional details and application forms will be shared with those who have assessed the equipment, starting June 30, the report relays. "SIA now invites interested companies/persons to submit offers for the purchase of these units," it said in a notice published recently, the report notes. The machines were previously used to determine the quality of cane delivered to mills using the core sampling method, which involves extracting and analyzing a portion of cane from truckloads before they are processed, the report discloses. SIA, which is an agency under the Ministry of Agriculture, Fisheries and Mining and also a regulator for the industry, has not made public any minimum offer or reserve price, the report relays. The disposal of the machines comes at a time when sugar operations in Jamaica continues to dwindle, the report notes. Only a handful of private estates remain in operation, and the Government has moved away from direct involvement in sugar production, the report discloses. Many of the estates which were once thriving sugar operations have since been repurposed for the housing market, the report says. The Bernard Lodge estate, in particular, has been earmarked for major transformation.According to a 2022 statement by Prime Minister Andrew Holness, land sales in the Greater Bernard Lodge development had already generated nearly $4 billion for the Government, reflecting the pivot toward more economically viable uses of former sugar lands, the report relays. It's unclear what level of interest the offer will attract, the report adds. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a positive rating outlook. In October 2023, Moody's upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to B1 from B2, and senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has been changed to positive from stable. In September 2024, S&P affirmed 'BB-/B' longterm foreign and local currency sovereign credit ratings on Jamaica and revised outlook to positive. ===================== P U E R T O R I C O ===================== BEYOND MANAGEMENT: Seeks to Hire Tamarez CPA LLC as Accountant -------------------------------------------------------------- Beyond Management Development Investment Group Corp. seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Tamarez CPA, LLC as accountant. The firm will render these services: (a) reconcile financial information to assist Debtor in the preparation of monthly operating reports; (b) assist in the reconciliation and clarification of proof of claims filed and amount due to creditors; (c) provide general accounting and tax services by maintaining the books and record under general accepted accounting principles (GAAP); (d) prepare quarterly tax returns for the PR Department of Treasury, Internal Revenue Services and PR Department of Labor and Human Resources; (e) prepare employees' annual withholding statements (w2), annual informative returns (480s) and related year-end reconciliation reports; (f) assist in the filing of sales and use taxes and payroll taxes deposits; (g) prepare annual returns: income taxes, annual report, personal property return, volume business declaration, workmen's compensation declaration and federal unemployment; (h) assist the Debtor and Debtor's counsel in the preparation of the supporting documents for the Chapter 11 Reorganization Plan. Tamarez CPA will receive a fixed monthly rate of $1,000, plus reimbursement of actual out-of-pocket expenses incurred in this case. The fixed monthly rates do not include the sales and use taxes as imposed by PR Act 72 of May 2015, currently 4 percent of the billed fees. The firm received a post-petition retainer in the total amount of $2,080. Albert Tamarez Vasquez, CPA, owner of Tamarez CPA, disclosed in a court filing that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Albert Tamarez Vasquez, CPA Tamarez CPA, LLC 1519 Ave. Ponce De Leon, Suite 412 San Juan, PR 00909 Telephone: (787) 795-2855 Facsimile: (787) 200-7912 Email: atamarez@tamarezcpa.com About Beyond Management Development Investment Group Beyond Management Development Investment Group Corp. filed Chapter 11 petition (Bankr. D.P.R. Case No. 25-01160) on March 17, 2025, listing under $1 million in both assets and liabilities. The Law Offices of Hector Eduardo Pedrosa Luna serves as the Debtor's counsel. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2025. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. 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