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250627.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 Friday, June 27, 2025, Vol. 26, No. 128 Headlines A R G E N T I N A ARCOR SAIC: Fitch Affirms 'B' LongTerm IDRs, Outlook Stable ARGENTINA: Unemployment Rises Despite Economic Recovery PROVINCE OF CORDOBA: Fitch Rates USD800MM Unsec. Notes 'CCC+(EXP)' PROVINCE OF CORDOBA: Moody's Rates $800MM Unsecured Notes 'Caa2' B E R M U D A BERMUDA: Loan Growth Slows as Banks Face Shrinking Market NABORS INDUSTRIES: Egan-Jones Retains CCC+ Sr. Unsecured Ratings B O L I V I A BOLIVIA: S&P Lowers Sovereign Credit Ratings to 'CCC-' B R A Z I L ELDORADO BRASIL: Fitch Affirms 'BB' LongTerm IDRs, Outlook Stable YINSON BERGENIA: Fitch Gives 'BB+(EXP)' Rating on Sr. Secured Notes C H I L E CHILE: IDB OKs $250MM to Launch Reforms for Sustainable Growth C O L O M B I A BANCO DAVIVIENDA: Fitch Gives BB-(EXP) Rating on Sub. Tier 2 Notes BANCO DAVIVIENDA: Moody's Rates New Tier 2 Sub. Notes 'B1(hyb)' E C U A D O R ECUADOR: IDB Approves $77 Million Sovereign Guarantee J A M A I C A JAMAICA: Inflation Eases to 5.2% JAMAICA: Remittance Inflows Rose 3.1% for January to February T R I N I D A D A N D T O B A G O TRINIDAD & TOBAGO: CSO Reports Dip in Inflation - - - - - ================= A R G E N T I N A ================= ARCOR SAIC: Fitch Affirms 'B' LongTerm IDRs, Outlook Stable ----------------------------------------------------------- Fitch Ratings has affirmed Arcor S.A.I.C.'s Long-Term Foreign Currency (FC) and Local Currency (LC) Issuer Default Ratings (IDRs) at 'B'. The Rating Outlook is Stable. Fitch has also affirmed Arcor's Long-Term senior unsecured bond rating at 'B+' with a Recovery Rating of 'RR3'. The ratings incorporate the company's broad market presence in South America's confectionary sector, recognized brands, and vertical integration. They also consider adequate leverage and access to financing alternatives. Arcor's IDRs are one notch higher than Argentina's Country Ceiling (CC) of 'B-', reflecting Fitch's expectations that the company will be able to cover its hard currency debt service with a combination of cash held abroad, export earnings, and cash flow from subsidiaries outside of Argentina. The 'RR3' Recovery Rating reflects above-average recovery expectations for creditors if a default occurs. Historical examples of distressed debt exchanges by Argentine corporates, which did not reduce principal, support the rating. Key Rating Drivers Strong Business Position: Arcor is a leading Latin American producer of confectionary and cookie products. The company specializes in consumer food (69% of its revenue), packaging (19%), and agribusiness (12%). Its vertical integration ensures the quality of supplies, as well as the availability of main inputs. Arcor's good brand recognition and distribution network support its leading market shares in chocolates, candies, cookies, and packaging in Argentina, its main market. The company has a brand portfolio that reaches consumers in over 100 countries. FC IDR Above Country Ceiling: Argentina CC of 'B-' is applicable to Arcor, due to its primary operations in the country. The company is rated one notch above Argentina's CC due to sufficient cash balance outside Argentina, cash generation from exports, and offshore operating EBITDA to comfortably cover its hard currency debt service for at least 12 months. Fitch's framework for rating FC IDRs above an issuer's applicable CC assesses the issuer's ability to cover hard currency debt service from recurring cash flows or available liquidity held out of where the CC is applicable. If coverage is 1.0x-1.5x for at least 12 months and that ratio is projected to be maintained throughout the forecast period, the issuer's FC IDR may be rated one notch above the applicable CC. Geographic Concentration: Arcor's operations are concentrated in Argentina (rated CCC+), which accounts for about 70% of its sales and close to 85% of its EBITDA. This exposes the company to inflation and sovereign-related risks like currency depreciation. The company generated about 8% of sales in Brazil (BB/Stable), around 10% in Andean region (Chile, Peru, and Ecuador), and the remaining 12% in other Latin American countries, Mexico, the U.S., and Africa. This distribution remained unchanged in 1Q25. Persistent Operating Environment Risk: Fitch expects Arcor's operational and financial strategy to remain prudent given Argentina's still-weak operating environment. In 2024, the company's results continued being affected by the devaluation of the Argentinean peso, which increased production costs and led to price increases for consumer food products, Arcor's largest business segment accounts for 69% of total sales. Fitch will monitor the company's ability to balance capex while maintaining sufficient liquidity for short-term obligations and keep leverage stable. Leverage Expected to Improve: Fitch expects Arcor's EBITDA leverage to be in the 2.0x to 2.5x range over the next few years, based on profitability recovery. Arcor has shown operational resilience and the ability to access local sources of funding. The company has already refinanced a portion of its 2025 short-term maturities via local bond issuances. Arcor and Bagley Call Option: Arcor S.A.I.C. and Bagley Argentina, S.A., jointly own about 49% of the shares of Mastellone Hermanos Sociedad Anonima (B-/Stable), a leading dairy producer in Argentina. Arcor has a call option on the remaining 51% stock since 2020. The Arcor/Bagley purchase option was exercised on April 28 and rejected by Mastellone's majority shareholders due to disagreements on the transaction's price. Fitch believes Arcor has sufficient headroom to execute the purchase option without triggering negative rating sensitivities and will monitor the resolution of the purchase option. Fitch views Mastellone as strategic for Arcor in the long term. Peer Analysis Arcor has lower scale relative to other packaged food companies, such as Nestle SA (A+/Stable), Kraft Heinz Company (BBB/Stable), or Grupo Bimbo, S.A.B. de CV (BBB+/Stable), which have broader diversification and global presence. Arcor's operations are concentrated in Argentina. However, it has grown organically and inorganically, and entered into partnerships to expand its regional presence. Fitch estimates that Arcor's EBITDA leverage will be under 2.5x over the next few years. This is comparable to investment-grade peers such as Alicorp S.A.A.(BBB/Stable), Bimbo and Nestle, which have EBITDA leverage ratios in a similar range. Arcor has lower EBITDA leverage than Kraft, which is expected to be sustained in the low-to-mid 3x range. In terms of profitability, Arcor's projected EBITDA margins of around 8.8% are lower than the 12%-13% expected for Bimbo and Alicorp and the 19%-25% range of Nestle and Kraft. Key Assumptions - Revenue growth driven by inflation and real GDP growth. - EBITDA to remain around USD350 million per year over 2025-2027. - Capex to be around USD120 million per year for 2025-2027. - Debt to EBITDA ratio around 2.5x in 2025 and then trend lower. - Dividend payment of around USD30 million per year in 2025-2026. Recovery Analysis Argentina is assigned to Group D, where the assigned Recovery Ratings are capped at 'RR4'. Fitch believes the recovery prospects for this issuer is higher than the expected recovery of 31%-50% for the 'RR4' band. This is based on Fitch's bespoke recovery analysis for each individual issuer as well as precedents of debt exchange offerings driven by capital control restriction put into place by the Argentine Central Bank. In this case, the calculated recovery was higher than the expected recovery of 51%-70% for the 'RR3' band, but Fitch capped the Recovery Ratings at 'RR3' to reflect a less predictable range of outcomes. A Recovery Rating of 'RR3' supports a one-notch uplift for the instrument rating from the issuer's FC IDR. The 'RR3' Recovery Rating reflects above average recovery expectations for creditors in the event of default. It is supported by the historical precedent of numerous distressed debt exchanges by Argentine corporates that did not result in a reduction in principal. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA leverage ratio above 4.0x on a sustained basis; - Exports, cash abroad and committed bank lines not covering the hard currency debt service by 1.0x-1.5x over 12 months could lead to a downgrade of the FC IDR; - A downgrade of Argentina's Country Ceiling would likely lead to a negative action on the FC IDR or Outlook. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An upgrade of Argentina's sovereign rating would lead to an upgrade of Arcor's FC IDR, given the high level of cash generated from Argentine operations; - A sustained EBITDA leverage ratio below 2.5x could lead to a revision of the Outlook or an upgrade of the LC IDR; - A significant improvement in Arcor's liquidity. Liquidity and Debt Structure As of March 2025, Arcor had approximately ARS212 billion (USD198 million) in cash and cash equivalents, and short-term debt totaling ARS800 billion (USD746 million). The company has ample access to bank lines for export financing and local market sources for refinancing, including local U.S. dollar-linked issuances to address its 2025 short-term debt. As of March 2025, 53% of Arcor's total debt was denominated in U.S. dollars, 40% in Argentine pesos, and the remainder in Brazilian reais and other currencies. Issuer Profile Latin American producer of confectionary and cookie products. The company is specialized in consumer food products, which represent 69% of its revenues, packaging 19%, and agribusiness 12%. It operates industrial plants and distribution centers in Argentina, Brazil, Chile, Peru, Mexico, and Angola. Arcor is a leader in the Argentine market and has an extensive international sales network with offices around the world. Criteria Variation Fitch has applied a variation from its "Country-Specific Treatment of Recovery Ratings Criteria," specifically the section titled: "When an Instrument Enters a Distressed or Defaulted State." The criteria allow a Recovery Rating to be assigned above the defined cap for distressed issuers when Fitch has reason to believe that recoveries in an individual case would be consistent with a higher Recovery Rating. Fitch has extended this analytical approach to all Argentine-based corporates rated 'B-', reflecting their highly speculative credit profiles and their operations within the distressed operating environment in Argentina (CCC+). Country Specific treatment of Recovery Ratings Criteria. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Arcor S.A.I.C. LT IDR B Affirmed B LC LT IDR B Affirmed B senior unsecured LT B+ Affirmed RR3 B+ ARGENTINA: Unemployment Rises Despite Economic Recovery ------------------------------------------------------- Buenos Aires Times reports that unemployment in Argentina rose to 7.9 percent in the first quarter of 2025, according to data from the INDEC national statistics bureau. This figure represents an increase of 1.5 points compared to the 6.4 percent recorded in the October-December 2024 period, according to Buenos Aires Times. It also rose in comparison with the January-March quarter of 2024, although by just 0.2 points, the report notes. The new rate marks an end to the decline in unemployment that had been observed since the second quarter of 2024, the report relays. The activity rate – which measures the economically active population as a proportion of the total – fell slightly to 48.2 percent, indicating that fewer people were seeking employment, as it had stood at 48.8% between October and December 2024, the report recalls. Statisticians with the Buenos Aires City government published its own unemployment report, Buenos Aires Times notes. Unemployment in the capital rose during the first quarter: from 6.7 percent in the final quarter of 2024 to 7.8 percent in the first three months of 2025, it showed, the report relays. INDEC reported that across the 31 main urban agglomerations surveyed, there were a total of 1,136,000 unemployed people in the first quarter of 2025, the report relays. That is, people who actively sought work but were unable to find it, the report notes. A year earlier, in the same period of 2024, the figure stood at 1,088,000, meaning around 48,000 more people are now unemployed, the report discloses. When projected across the country as a whole, the number of unemployed reaches 1,807,000 – some 68,085 more than a year ago, the report relays. Daniel Schteingart, Director of Productive Planning at Fundar, pointed out that the comparison with the first quarter of 2023 is "even worse, as around 250,000 more people have become unemployed since then," the report notes. Indeed, during the first quarter under the current government – following a 118 percent devaluation of the peso, a peak in inflation, and a drop in economic activity – unemployment rose sharply, the report discloses. "Labour market data for the first quarter of 2025 are rather poor. Although the economy has picked up, unemployment hasn't gone down," Schteingart noted on social media, the report relays. He explained that unemployment rose from 7.7 percent to 7.9 percent, meaning there are around 250,000 more people out of work than in the first quarter of 2023 (when the rate stood at 6.9 percent), the report notes. The specialist also noted that "formal employment continues to decline, the report discloses. Only 46 percent of those in work had registered salaried employment in the first quarter of 2025. It's the lowest level since 2007." He added: "There is growth in self-employment and other non-salaried forms of work, and a trend towards precarious employment that has been ongoing for a decade is becoming increasingly entrenched," 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. PROVINCE OF CORDOBA: Fitch Rates USD800MM Unsec. Notes 'CCC+(EXP)' ------------------------------------------------------------------ Fitch Ratings has assigned an expected long-term rating of 'CCC+(EXP)' to the Province of Cordoba's proposed senior unsecured notes of up to USD800 million. These notes are denominated in USD and, according to the preliminary documents, will accrue a fixed interest rate to be determined at issuance. The notes will amortize one-third of the total principal in years five, six, and seven. Interest will be payable semiannually, and the notes will mature in seven years. The notes will be a direct, unconditional, unsecured, and unsubordinated general obligation of the province and will rank pari passu in right of payment compared with its other unsecured obligations. The notes will be governed by and construed in accordance with the laws of the state of New York. The final rating is contingent upon Fitch's receipt of all final documents conforming to information already received, as well as final pricing and financial close of the proposed notes. The General Budget Law of the Provincial Public Administration for 2025 authorizes the provincial executive branch to carry out credit operations for up to USD315.3 million for the Centralized General Administration. Additionally, it authorizes Cordoba's Investment and Financing Agency to conduct credit operations on behalf of the province for up to USD2.7 billion, as stated in Article 34 of "Section II - Financing Operations" of the Budget Law. Cordoba's Province Bank (Bancor) acts as its financial agent. In this context, the proceeds of the issuance of up to USD800 million will be a selective tender offer in tandem with a new bond issuance. The final terms and conditions of these operations will be determined at the time of the tender offer announcement and pricing, respectively. The remaining proceeds of the notes, net of the selective tender offer, will be allocated for capital expenditure projects and cancellation of financial liabilities, as per the authorization. Key Rating Drivers The notes' expected rating is at the same level as Cordoba's Long-Term Foreign Currency (FC) Issuer Default Rating (IDR) of 'CCC+', which reflects adequate debt service coverage ratio for the next 12 months. On Sept. 12, 2024, Fitch affirmed Province of Cordoba's ratings. For details, please see "Fitch Affirms Province of Cordoba at 'CCC+'". As of December 2024, the province had strong liquidity, coupled with positive operating balance and financial equilibrium product of its sustained positive budgetary performance. Cordoba's debt is mostly composed of international issuances, multilateral loans and private bank credits in USD (86.2% of total stock in 2024, down from 99.6% in 2023). At YE 2024, direct debt totaled ARS2,155.6 billion, with an increase of around 23.6% relative to 2023 due to currency depreciation (209%). RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A downgrade of Argentina's Country Ceiling below 'CCC+' and any regulatory restrictions to access foreign exchange by local and regional governments; - Fitch could lower Cordoba's Standalone Credit Profile (SCP) if the province's estimated actual debt service coverage ratio drops below 1.0x in tandem with a liquidity coverage ratio below 1.0x, underpinned by lower operating margins and unrestricted cash, regardless of whether the payback ratio remains below 5x; - Movements in the exchange rate that abruptly increase refinancing risks and debt repayment capacity. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An upgrade of Argentina's Country Ceiling above 'B-' could positively benefit Cordoba's ratings if the financial profile remains in line with projections of a payback ratio below 5.0x and actual debt service coverage ratio above 1.0x, under Fitch's rating case; - If the impact on the SCP from the asymmetric risk wears off due to decreased refinancing risks, if Cordoba continues to meet Fitch's criteria requirements to be rated above Argentina's sovereign rating: maintains a strong budget, does not need to undertake external refinancing of debt, and has sufficient available liquidity. Date of Relevant Committee 10-Sep-2024 Entity/Debt Rating ----------- ------ Cordoba, Province of senior unsecured LT CCC+(EXP) Expected Rating PROVINCE OF CORDOBA: Moody's Rates $800MM Unsecured Notes 'Caa2' ---------------------------------------------------------------- Moody's Ratings has assigned a Caa2 (Global Scale foreign currency) rating to the Senior Unsecured Notes to be issued by the Province of Cordoba (Cordoba) for up to USD800 million with a seven-year maturity. The rating is in line with the Cordoba's long-term foreign currency issuer rating. The outlook is stable. Cordoba will use the proceeds of the Notes for the purchase of its Step-Up International Notes due 2027, repay existing liabilities and to finance planned infrastructure projects. The assigned rating is subject to receipt of final documents, the terms and conditions of which are not expected to change in any material way from the draft documents that Moody's have reviewed. RATINGS RATIONALE The assigned Caa2 senior unsecured rating to the new notes is in line with Cordoba's foreign currency issuer rating, reflecting the structure of the issuance. The new notes will constitute unsubordinated and unsecured obligations of Cordoba, and will rank pari-passu with all other present and future unsecured and unsubordinated obligations of the province. The assigned debt ratings are in line with the Province's long term foreign currency issuer rating because they do not present any credit enhancements that differentiate them from the general solvency of the province already reflected in its current issuer rating level. The Caa2 rating assigned to the Province of Cordoba reflects the weak credit profile of the Government of Argentina (Caa3 positive) and the still challenging operating conditions for regional and local governments in the country. Moody's further acknowledge, the provinces high exposure to foreign currency debt and moderate leverage. As a counterbalance, the rating factors in the province's strong revenue base and track record of prudent fiscal policies, which have resulted in operating and cash financing surpluses. Positive results have allowed the province to build up liquidity reserves that partially mitigate the exposure to upcoming debt maturities. Pursuant to the Provincial Financial Administration Law, the province is allowed to obtain financing according to the limits and purposes set forth in the budget law in effect. The Notes will be denominated and payable in US dollars with an expected 7 years maturity and fixed interest rate on a semi-annual basis. The principal amount will be paid in three equal installments, in year 5, 6 and 7. After the issuance of the new notes, and upon completion of the province's liability management started, Moody's anticipates that the ratio of total outstanding debt relative to operating revenues will grow to approximately 40% by year-end 2025 -from the 27% calculated at the end of 2024 fiscal year- which is still consistent with the assigned Caa2 rating. Along with the issuance of new Notes, Cordoba is planning to commence a cash tender offer of its 2027 Notes. The offer is not conditioned upon any minimum participation by existing holders but it is conditioned on the closing of the New Notes offering and the terms and conditions set forth in the Offer to Purchase. RATING OUTLOOK The stable outlook reflects Moody's expectations of adequate and stable credit metrics despite the difficult operating environment for Argentine issuers, including the exposure to the sovereign's policymaking. The outlook reflects Moody's assumptions that the investors' recovery in an event of default would remain consistent with the Caa2 rating. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING Moody's would consider an upgrade if there is an upgrade of the Government of Argentina's sovereign rating accompanied by a change in the country's foreign currency ceiling. In addition, an upgrade of Cordoba ratings would require the Province to maintain sound stand-alone financial performance. Conversely, a downgrade in the Government of Argentina's sovereign ratings, the country's foreign currency ceiling or a further systemic deterioration could exert downward pressure on the ratings. Increased idiosyncratic risks could also translate into a downgrade. ISSUER PROFILE Cordoba is located in the central region of Argentina. The province covers an area of 63,831 square miles and is home to a population of more than 3.9 million people. The province is the fifth largest and the third most populous metropolitan area in the country. The provincial economy is diverse, with commerce representing about 21% of its GDP, followed by agriculture (14%), education (8%), and construction (7%). The province has a strong own-source revenue base, with 47% of its operating revenue in 2023 coming from its own sources The principal methodology used in this rating was Regional and Local Governments published in May 2024. ============= B E R M U D A ============= BERMUDA: Loan Growth Slows as Banks Face Shrinking Market --------------------------------------------------------- Claire Shefchik at The Royal Gazette reports that Bermuda's banking sector is seeing a clear drop in loan activity with data showing a steady decline throughout 2024. Total loans fell for three straight quarters before levelling off at zero growth in the final quarter of the year. "The overall trend in loans, good loans as well as non-performing loans, is down," said Geoff Scott, the chief executive of the Bermuda Bankers Association. While it might seem like banks are pulling back, Mr Scott said that was not the case. "Absolutely not. The banks are actually in business. . . it's pretty tough for the four banks here, because they're competing for what is really like a shrinking market." Residential mortgages have stayed fairly steady, making up 54 per cent to 55 per cent of all loans. That suggests the housing market is holding up better than other areas. "Mortgages are at 54 per cent of total loans," Mr Scott noted. He added that banks relied on steady real estate activity to keep new business coming in. So why is the market shrinking? "Because there are not enough real estate transactions happening. It's a slower market," Mr Scott explained. Without those transactions, banks cannot issue as many new mortgages or business loans. Still, there are some positives. The share of non-performing loans — those where borrowers are behind on payments — actually dropped from 5.5 per cent to 4.9 per cent between September and December, showing that most customers are keeping up with their debt. Mr Scott said the bigger issue was simple: "Banks need houses to sell so they can provide mortgages, new mortgages. They need people to buy cars and furniture and equipment and small businesses to invest in their businesses." The way forward, he believes, is economic growth. "Whatever we can do in Bermuda to spur economic growth would be the way to reverse that trend. We need more things happening in Bermuda, more growth, more local business, more construction." For now, the industry is staying positive. "We need investments in business and assets and things like that, which will drive more business for the banks," Mr Scott concluded. NABORS INDUSTRIES: Egan-Jones Retains CCC+ Sr. Unsecured Ratings ---------------------------------------------------------------- Egan-Jones Ratings Company on June 10, 2025, maintained its 'CCC+' foreign currency and local currency senior unsecured ratings on debt issued by Nabors Industries, Inc. EJR also withdrew the rating on commercial paper issued by the Company. Headquartered in Hamilton, Bermuda, Nabors Industries, Inc. provides oil and gas drilling services. ============= B O L I V I A ============= BOLIVIA: S&P Lowers Sovereign Credit Ratings to 'CCC-' ------------------------------------------------------ S&P Global Ratings lowered its long-term foreign and local currency sovereign credit ratings on Bolivia to 'CCC-' from 'CCC+'. The outlook on the long-term ratings is negative. S&P also affirmed its 'C' short-term foreign and local currency sovereign credit ratings. At the same time, S&P revised its transfer and convertibility assessment to 'CCC-' from 'CCC+'. Outlook The negative outlook reflects Bolivia's worsening external profile, potentially impairing the government's ability to service its debt over the next six to 12 months. Political stalemate and limited access to external bond markets continue to limit the country's capacity to reverse the erosion of its external liquidity and fiscal position, posing risks to economic and monetary stability. Downside scenario S&P said, "We could lower the ratings in the next six to 12 months if we see a greater risk to debt servicing. In addition, we could consider a debt exchange or restructuring as distressed and tantamount to a default at such a low rating level." Upside scenario S&P could raise the ratings in the next six to 12 months if there are decisive policies that improve Bolivia's external liquidity and point to a more sustainable fiscal profile. Addressing the deterioration of macroeconomic imbalances would be an initial step toward improving investor confidence and gaining better access to external debt markets. Rationale The rationale comprises a summary paragraph and then one section each for Institutional and economic profile and Flexibility and performance profile. The order of the two sections can be switched if that is more conducive for the credit story, e.g. if a rating or outlook action emanates from the Flexibility and performance profile. The summary paragraph should state key rating factors (strengths and weaknesses) underlying the rating. All points raised here should be expanded upon in the two subsections. Institutional and economic profile: Insert the overall opinion -- Tell the credit story, in jargon-free English. Be as clear and concise as possible. -- If applicable, expand on rating action summary. Expand on the points raised in the rationale summary and the bullets. -- Focus on rating factors that have changed, but also make sure to explain the structural factors underlying the rating. Prioritize arguments from most important to least. Provide forward-looking comments. State why the developments increase or decrease risk. Focus on rating factors, don't drown the story in data and facts that do not matter for the rating; ratings have a long-term horizon, so don't talk about short-term indicators like quarterly GDP and its components. Summarize the key changes to our projections or assumptions. Flexibility and performance profile: Insert the overall opinion Tell the credit story, in jargon-free English. Be as clear and concise as possible. If applicable, expand on rating action summary. Expand on the points raised in the rationale summary and the bullets. Focus on rating factors that have changed, but also make sure to explain the structural factors underlying the rating. Prioritize arguments from most important to least. Provide forward-looking comments. State why the developments increase or decrease risk. Focus on rating factors, don't drown the story in data and facts that do not matter for the rating; ratings have a long-term horizon, so don't talk about short-term indicators like quarterly GDP and its components. Summarize the key changes to our projections or assumptions. =========== B R A Z I L =========== ELDORADO BRASIL: Fitch Affirms 'BB' LongTerm IDRs, Outlook Stable ----------------------------------------------------------------- Fitch Ratings has affirmed Eldorado Brasil Celulose S.A.'s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB' and National Scale Long-Term Rating at 'AA+(bra)'. The Rating Outlook on the corporate ratings is Stable. The ratings reflect the conclusion of litigation between J&F S.A. and Paper Excellence B.V. (PE) for control of Eldorado. Eldorado's strong cash flow and recent deleveraging allow it to absorb higher debt levels. The ratings also incorporate Eldorado's solid operating performance, above average business profile with a competitive cost structure, and its limited diversification, with one pulp mill in Brazil. The Stable Outlook reflects Fitch's expectation that Eldorado's net leverage will increase to about 4x in 2025 before decreasing to nearly 3x in 2026, depending on pulp prices. Its base case scenario excludes a new investment cycle, at least until the company reduces net leverage to the lower end of its 2.5x-3.5x financial policy target. Key Rating Drivers End of Litigation Process: The conclusion of the long-standing litigation process between J&F and PE is positive for Eldorado and should improve its financial flexibility. Under the agreement, J&F acquired PE's 49% shares for USD2.65 billion (BRL15 billion), and all lawsuits were cancelled. Currently, J&F controls 100% of Eldorado. Temporary Leverage Increase: Eldorado's past deleveraging strategy allows the company to handle higher debt levels. Fitch expects net debt to EBITDA to increase to about 4x in 2025, then drop to 3x the next year. Fitch projects net debt will increase to about BRL11.6 billion by year end 2025, from BRL966 million in December 2024, with a gradual reduction as the company uses FCF to pay down debt. If pulp prices remain low for longer than expected, deleveraging trend will be postponed. Securing adequate financing remains a critical challenge for Eldorado. The company will need domestic and/or international funding to extend debt maturities and minimize refinancing risk.. Strong FCF: Fitch expects Eldorado to generate about BRL2.9 billion of EBITDA and BRL2.2 billion in CFFO in 2025, compared to BRL2.9 billion and BRL2.5 billion in 2024. As a low-cost producer, the company maintains strong operating margins throughout the pulp price cycle. Fitch forecasts FCF of BRL600 million in 2025 and close to BRL900 million in 2026, with base case projections including annual investments between BRL1.5 billion and BRL1.65 billion over the next three years. Its base case projections do not include the expansion project. Above-Average Business Profile: Eldorado has only one pulp mill, which is located in Brazil and has an annual production capacity of 1.8 million tons of bleached eucalyptus kraft pulp (BEKP). Like other Latin American pulp companies, Eldorado has a competitive cost structure, with cash cost of production of approximately USD130 per ton in 1Q2025, placing it firmly in the lowest quartile of the cost curve. Eldorado has been able to consistently operate above its nominal annual capacity. Robust Forestry Assets: Eldorado's competitiveness is also related to its modern production facility and the productivity of its forestry assets. The forest assets further enhance its financial flexibility, as the accounting value of the biological assets of its forest plantations was BRL5.2 billion as of March 2025. Pulp Price Volatility: Fitch expects BEKP prices will reach USD600 per tonne in 2025, down from USD625 per tonne in 2024. Tariff uncertainties in the first half of 2025 led to price fluctuations and paper producers delaying purchases. Prices have fallen to about USD 500/ton, and Fitch expects some recovery by year-end. A more significant recovery will depend on sustained demand growth, which is unlikely until there is greater visibility into tariff policies and global economic conditions. Despite this, sector fundamentals remain solid. Fitch does not expect any new capacity to enter the market until 2028, supporting upward price trends despite slower demand growth. Peer Analysis Like other Latin American pulp producers, Eldorado's pulp production cash costs are among the lowest in the world, ensuring its long-term competitiveness. This places the company's business risk profile in line with Latin America pulp companies like Suzano S.A. (BBB-/Positive), Empresas CMPC S.A. (BBB/Stable) and Celulosa Arauco y Constitución S.A. (BBB/Negative). Eldorado has only one mill located in Brazil, which makes it comparable to LD Celulose S.A. (BB-/Stable), while other Latin American peers have higher scale of operations and geographic diversification. Eldorado is also concentrated only in BEKP pulp and is therefore more exposed to the cyclicality of pulp prices compared with companies with higher product diversification like Klabin, Arauco and CMPC, which are leaders in the packaging, wood products segment and tissue markets, respectively. Key Assumptions Fitch's Key Assumptions Within the Rating Case for the Issuer - Pulp sales volume of 1.75 million tons in 2025 and 2026; - Average net hardwood pulp prices of USD600 per ton in 2025 and USD 700 per ton in 2026; - Capex for a total of BRL4.6 billion between 2025 and 2027; - Base case does not incorporate investments in the new pulp mill. RATING SENSITIVITIES Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Inability to extend debt maturity profile; - Average net debt/EBITDA ratios of 4.0x or higher throughout the pulp price cycle; - Approval for the expansion project, pressuring Eldorado's leverage; - Change in the dividend distribution strategy and/or related party transactions. Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Improve business diversification; - Average net debt/EBITDA ratios of 3.0x or below throughout the pulp price cycle. Liquidity and Debt Structure Eldorado had cash and marketable securities of BRL1.3 billion as of March 31, 2025 and total debt of BRL1.9 billion, of which BR500 million was due in the short term. Net debt is projected to increase to about BRL11.6 billion by year end 2025 and Fitch expects Eldorado to preserve a more conservative and extended debt maturity profile. Positive FCF projected for 2025 and 2026 should be mainly used to reduce debt. Issuer Profile Eldorado started operations in December 2012 and has one pulp mill located in the state of Mato Grosso do Sul in Brazil. Eldorado's pulp mill has an annual production capacity of 1.8 million tons of BEKP. 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 Eldorado Brasil Celulose S.A. has an ESG Relevance Score of '4[+]' for Energy Management as the company sells excess energy to the grid from cogeneration based upon a renewable resource, which has a positive impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Eldorado Brasil Celulose S.A. has an ESG Relevance Score of '4' for Governance Structure due to ownership concentration and related party transactions, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Eldorado Brasil Celulose S.A. LT IDR BB Affirmed BB LC LT IDR BB Affirmed BB Natl LT AA+(bra) Affirmed AA+(bra) YINSON BERGENIA: Fitch Gives 'BB+(EXP)' Rating on Sr. Secured Notes ------------------------------------------------------------------- Fitch Ratings expects to rate the senior secured notes to be issued by Yinson Bergenia Production B.V. as follows: - $1.168 billion senior secured notes 'BB+(EXP)'/Outlook Stable. Entity/Debt Rating ----------- ------ Yinson Bergenia Production B.V. Yinson Bergenia Production B.V. Senior Secured Notes LT BB+(EXP) Expected Rating Transaction Summary Proceeds of this transaction are to be used to refinance the original funding of the floating-production storage and offloading (FPSO) unit, FPSO Maria Quitéria, in addition to funding the transaction reserve accounts, paying any transaction related costs, and completing distributions. The FPSO Maria Quitéria operates in the Jubarte Field in the pre-salt layer of the Campos Basin. The transaction is backed by a first-priority mortgage on the vessel and cash flows from the underlying charter agreement between Yinson Bergenia Production B.V. (SPV), as owner and issuer, and Petróleo Brasileiro S.A. (Petrobras, BB/Stable) as offtaker. The agreement is in place until April 2047. In addition, Fitch expects that, within 60 days of repayment of the original debt, the issuer will release the liens on the collateral securing the existing obligations and perfect the collateral of this transaction's notes. This timeline can be further extended by an additional 60 days if the issuer injects equity into the transaction sufficient to pay all accrued and unpaid interest on the notes, any revolving loans, and additional senior secured debt, if any. The financial structure considers a fully amortizing transaction. Fitch's rating addresses the timely payment of interest and timely payment of principal on a semiannual basis until legal final maturity in January 2045. KEY RATING DRIVERS Offtaker Obligation Strength Exceeds Petrobras' Issuer Default Rating (IDR): The offtaking party in the charter agreement is Petrobras, the state-owned oil company of Brazil. Fitch rates Petrobras in line with the Brazilian sovereign (BB/Stable). The charter contract between the operator and an offtaker of an FPSO is considered a strategic long-term contract to produce hydrocarbons in a specific area, as FPSOs are built to suit. The long-term nature of the contract (22.5 years), the relatively low operational costs compared to the cash flow generation, and the complexity of the vessel make the contract and use of the vessel highly strategic to Petrobras. Even under distressed environments, these contracts and obligations are expected to be honored and can be differentiated from other corporate debt obligations. The charter contract may be considered an operational/net revenue cost to Petrobras to continue business operations and produces low break-even cash flow generation. For these reasons, Fitch determines the strength of the offtaker's payment obligation to be one-notch above Petrobras' credit quality at 'BB+'. Sovereign Event Risk; Transfer and Convertibility (T&C) Mitigated: The transaction's reserve account of six months of debt service and offshore payment obligations offer sufficient protection to mitigate potential transfer and convertibility (T&C) restrictions and exceed Brazil's Country Ceiling of 'BB+' by one notch. However, event risk is linked to the operating environment with Petrobras as a state-owned enterprise, potentially subject to political interference, which limits the uplift over Brazil's sovereign rating (BB/Stable) to two notches and, therefore, 'BBB-'. The transaction's limiting factor is Fitch's assessment of the strength of the offtaker's payment obligation, which is currently assessed at 'BB+'. Experienced Operator Mitigates Risk: The operator, Yinson Bergenia Serviços de Operação Ltda, is sponsored by Yinson Production, a global player in building and managing FPSOs and operates in Brazil, Ghana, Vietnam, Nigeria, and Malaysia. Yinson Production entered the Brazilian market five years ago and has three vessels under operation in the country. A Yinson Production bankruptcy could expose the transaction to a potential termination of the underlying charter and services agreements. Fitch assesses Yinson Production's credit quality to be near investment grade and, as a result, Yinson Production does not limit the rating. Strong Financial Metrics: Fitch's cash flow analysis has assessed the repayment of the fully amortizing debt, assuming timely interest and principal payments under a nondeferrable sculpted amortization schedule and a cash trapping condition should the debt service coverage ratio (DSCR) fall below 1.15x. Fitch's base case expects the DSCR to be between 1.26x and 1.29x, which is in line with investment-grade metrics and does not constrain the transaction rating. At the 'BB' stress case, the DSCR drops to 1.18x-1.23x, which remains sufficient to support the rating. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade As described in the Key Rating Drivers, the rating of the transaction is linked to Petrobras' Long-Term IDR, with an uplift of one notch. Therefore, a Petrobras downgrade could trigger a downgrade of the notes. Both ratings have Stable Outlooks. The other counterparty that could constrain the rating is the operator, whose credit quality is assessed to be near investment grade and, as a result, does not limit the rating but could pose a constraint should the credit quality deteriorate. Finally, the cash flow analysis results in a sufficient output, consistent with ratings in the 'BBB' category and does not pose a constraint to the transaction's rating. Although the DSCR and ultimate debt repayment depend on uptime, maintenance days, opex and inflation, none of these variables is expected to materially affect the rating under Fitch's stress case. Any changes in these variables will be analyzed in a rating committee to assess the possible impact on the transaction ratings. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade The rating is influenced by transaction counterparties, the operating environment and credit metrics. An upgrade of Brazil (which would likely also result in an upgrade of Petrobras) or an upgrade of the operator may result in an upgrade. However, as the rating has a Stable Outlook, such a scenario is not anticipated. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. ========= C H I L E ========= CHILE: IDB OKs $250MM to Launch Reforms for Sustainable Growth -------------------------------------------------------------- The Inter-American Development Bank (IDB) has approved a $250 million policy-based loan to support Chile's reforms to boost its competitiveness and sustainable and inclusive growth. This operation, which has been approved by the IDB's Board of Executive Directors, aims to accelerate the digital transformation of public services and connectivity, drive a transition to circular production models, and increase formal employment by supporting micro and small enterprises and the labor force. The program supported by the IDB includes measures to expand the country's digital infrastructure, for example, by approving the National Data Centers Plan. It also aims to strengthen the institutional framework for state digital transformation, including by developing a strategy with accessibility guidelines for people with disabilities. For sustainability, the program will work to increase recycling of industrial and construction waste and introduce policies to make the mining sector more circular. The program will also promote policies to boost formal employment and build the capacities of micro and small enterprises. Key initiatives in this area include structuring a new wage subsidy system and implementing a national strategy to improve job matching and training. These actions are designed to increase productivity, reduce informal employment, and narrow gaps in access to formal employment, especially for women, young people, and people with disabilities. This program will benefit the Chilean economy and society as a whole by accelerating the digital transformation and reducing transaction costs for the central government and citizens. Micro and small enterprises will experience higher productivity and formal employment, while companies and people of working age will benefit from a stronger job matching system. This operation complements and builds on the progress of a previous $100 million policy operation approved in 2021 to enhance the country's competitiveness. The $250 million IDB loan has a 20-year repayment term, a 5.5-year grace period, and an interest rate based on SOFR. =============== C O L O M B I A =============== BANCO DAVIVIENDA: Fitch Gives BB-(EXP) Rating on Sub. Tier 2 Notes ------------------------------------------------------------------ Fitch Ratings has assigned Banco Davivienda S.A.'s (Davivienda) upcoming issue of U.S. dollar-denominated subordinated Tier 2 notes an Expected Long-Term Rating of 'BB-(EXP)'. The tenor is expected to be 10NC5 and the amount of the U.S Dollar denominated notes is yet to be determined. The proceeds from the issue will be used for general corporate purposes, including to refinance or repay existing debt. The final rating is contingent upon receipt of final documents confirming the information already received. Key Rating Drivers The expected rating for the upcoming issuance is two notches below Davivienda's Viability Rating (VR) of 'bb+' to reflect loss severity only. Fitch did not apply any notching for non-performance risk, as the notes do not have additional loss-absorption features. The notes only provide limited loss-absorption capacity due to their relatively low trigger for principal write-off, which is Regulatory common equity Tier 1 (CET1) ratio at or below 4.5%. Fitch believes the trigger would not activate early enough to prevent a non-viability event for the bank. Fitch expects the securities to comply with local Tier II capital requirements. They will rank pari passu with all other unsecured Tier II capital subordinated indebtedness of the bank, except for any other subordinated indebtedness, that under its terms, is designated as junior to the notes. The notes will be subordinated in right of payment to the prior payment in full in cash or cash equivalents of all outstanding obligations due in respect of senior liabilities of the bank. They will be senior in right of payment only to subordinated instruments constituting Tier II capital subordinated indebtedness that is designated as junior to the notes, subordinated instruments constituting Tier I capital and the bank's capital stock. Davivienda's VR reflects the bank's strong business profile, given its leading market position in Colombia as the second-largest bank and adequate franchise in Central America. The assessment also considers its sound risk management and financial performance recovery amid the recent challenging operating environment, as well as its good capital position and large, stable deposit base. For further information about the drivers and rating sensitivities for Davivienda's ratings, please see the bank's latest press release " Fitch Takes Action on Colombian and Central American Banks Following Colombia's Outlook Revision"; dated Mar. 11, 2025. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - The subordinated debt ratings would be sensitive to a downgrade of Davivienda's VR. Davivienda's VR and IDR's would be downgraded in the case of a sovereign downgrade as reflected in the Negative Outlook of the bank's IDRs. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - The subordinated debt ratings would mirror any positive action on the bank's VR and would maintain the downward notching from it. ESG Considerations Fitch does not provide ESG relevance scores for Banco Davivienda S.A.. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. Entity/Debt Rating ----------- ------ Banco Davivienda S.A. Subordinated LT BB-(EXP) Expected Rating BANCO DAVIVIENDA: Moody's Rates New Tier 2 Sub. Notes 'B1(hyb)' --------------------------------------------------------------- Moody's Ratings has assigned a B1 (hyb) long-term foreign currency subordinate debt rating to the proposed Tier 2 subordinated notes to be issued by Banco Davivienda S.A. (Davivienda). These USD-denominated notes will have a maturity of 10 years, with an option to redeem after 5 years. The proposed notes will be eligible for Tier 2 capital treatment under Colombia's regulatory framework. The rating is subject to the receipt of final documentation, the terms and conditions of which are not expected to change in any material way from the draft documents that Moody's have reviewed. RATINGS RATIONALE The B1 (hyb) rating assigned to the proposed subordinated notes considers (1) Davivienda's Baseline Credit Assessment (BCA) and Adjusted BCA of ba2; and (2) Moody's standard notching guidance for contractual non-viability subordinated debt with a full or partial principal write-down triggered at or close to the point of non-viability, resulting in a two-notch downward adjustment from the bank's Adjusted BCA. Moody's assesses the probability that Davivienda will receive support from the Government of Colombia (Colombia, Baa2 negative) in a stressed situation as very high, given the bank's large market share of domestic deposits. Despite that, this support only applies to the bank's deposit ratings. Moody's do not expect that Tier 2 securities, which are designed to absorb losses, will benefit from government support. Davivienda's ba2 BCA reflects the bank's large and well-established commercial franchise in Colombia, in addition to its operations in Central America. At the same time, the bank's BCA is challenged by the bank's gradual recovery in bottom-line results, with moderate but positive net income reported in the last two quarters of 2024 and the first quarter of 2025, following net losses in the full year of 2024 still influenced by high loan-loss provisions and narrow margins in 2023, although recent quarters reflect progress in reversing those trends. The bank's problem loan ratio, measured as stage 3 loans under IFRS to gross loans, stood at 5.04% in March 2025, slightly up from 4.85% one year prior, although it was the lowest among large rated Colombian banks. In the last five quarters, however, Davivienda has posted a gradual improvement in asset quality in its consumer loan portfolio. Davivienda's capitalization, measured by Moody's ratio of tangible common equity (TCE) to risk weighted assets (RWA), went up to 10.03% in March 2025, from 9.41% in the previous year. The modest increase in the bank's capital ratio reflected the issuance of new shares in March 2024, the positive effect from earnings posted in the first quarter of 2025 and second half of 2024 and a reduction in the amount of operating risk due to the bank's implementation of internal model. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING The B1 (hyb) rating assigned to the proposed Tier 2 securities will move in tandem with the bank's BCA and adjusted BCA, both at ba2. Upward pressure on Davivienda's BCA would stem from material and consistent improvement in asset quality and profitability, particularly as result of successful loan portfolio cleanup. Conversely, downward pressure on Davivienda's ba2 BCA would arise from the bank reporting additional net losses on a consistent basis. In addition, the BCA would also face negative pressure if asset quality weakens significantly, leading to higher provisioning needs and hurting earnings and capitalization. A longer-than-expected and costly integration process Bank of Nova Scotia's (BNS, Aa2 stable, a3) subsidiaries in Colombia, Costa Rica and Panama could also pressure profits and have a negative effect on the BCA. The principal methodology used in this rating was Banks published in November 2024. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. ============= E C U A D O R ============= ECUADOR: IDB Approves $77 Million Sovereign Guarantee ----------------------------------------------------- Ecuador is encouraging private investments to diversify its energy mix and enhance energy security with a $77 million sovereign guarantee from the Inter-American Development Bank (IDB). The guarantee—the first operation under a $140 million conditional credit line for investment projects—is designed to reduce country risk and attract private investment in non-conventional renewable energy sources such as solar and wind. These efforts will help Ecuador lessen its dependence on large scale hydroelectric power, which is increasingly vulnerable to climate-related disruptions like droughts and floods. Up to 12 investment projects are expected to benefit from this initial guarantee, collectively adding more than 820 megawatts of newly installed capacity. These initiatives will mobilize approximately $1 billion in private sector funding. These projects were selected through a public tender process conducted by Ecuador's Ministry of Energy and Mines and will contribute to meet priority investments established in the country's Electricity Master Plan. In addition, the IDB is providing a $3 million reimbursable technical cooperation to strengthen the institutional capacity of key energy regulatory bodies, especially the Electricity Regulatory and Control Agency (ARCONEL). This funding will enhance their ability to license, oversee, and monitor social and environmental aspects of private energy generation projects, ensuring effective implementation and long-term sustainability. The IDB guarantees are for a maximum period of 25 years and are denominated in U.S. dollars. The accompanying loan features a 25-year amortization period, a 5.5-year grace period, and an interest rate based on the Secured Overnight Financing Rate (SOFR). ============= J A M A I C A ============= JAMAICA: Inflation Eases to 5.2% -------------------------------- Jamaica's annual inflation rate slowed to 5.2 per cent in May 2025, the Statistical Institute of Jamaica (Statin) reported, though essential categories like food and utilities continued to outpace broader price trends. The All-Jamaica Consumer Price Index (CPI) rose 0.4 per cent month-on-month, rebounding from April's 0.4 per cent contraction. This marked the third-consecutive month of subdued price movements following March's flat reading (0.0%), but critical sectors showed sustained upward pressure. The main contributor to the increase in the CPI was a 1.5 per cent increase in the index of the ‘Housing, Water, Electricity, Gas and Other Fuels' division. This increase was influenced primarily by a 4.4 per cent rise in the index of the ‘Electricity, Gas and Other Fuels' group. The inflation rate was also impacted by a 0.9 per cent increase in the index of the ‘Restaurant and Accommodation Services' division due to increased prices for meals consumed away from home. Overall Food & Beverages: +6.5 per cent year over year (YoY) but only +0.1 per cent month over month (MoM) Key Drivers of Fish/Seafood: +1.0% Cereals: +0.4% Vegetables: -0.4% (though +8.7% YoY) Fruits: -1.6% (but +18.3% YoY) Starchy Foods: Tubers/plantains fell 3.3%, yet remain +22.1% YoY. 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: Remittance Inflows Rose 3.1% for January to February ------------------------------------------------------------- RJR News reports that the Bank of Jamaica has disclosed that remittance inflows climbed by 3.1% to US$515 million for January and February when compared with the same period last year. This compares with growth of 15%, 8.2% and 0.6% recorded for El Salvador, Guatemala, and Mexico, respectively, according to RJR News. The bank says 72 per cent of this amount came from the USA, nearly 12-per cent from the UK, eight per cent from Canada and seven per cent from The Cayman Islands, the report adds. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a positive rating outlook. In October 2023, Moody's upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to B1 from B2, and senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has been changed to positive from stable. In September 2024, S&P affirmed 'BB-/B' longterm foreign and local currency sovereign credit ratings on Jamaica and revised outlook to positive. ===================================== T R I N I D A D A N D T O B A G O ===================================== TRINIDAD & TOBAGO: CSO Reports Dip in Inflation ----------------------------------------------- Ryan Hamilton-Davis at Trinidad and Tobago Newsday reports that the inflation rate has dropped to 1.4 per cent for the month of May, according to the Central Statistical Office's (CSO) consumer price index released by the office for the period May 2024/May 2025 on June 18. The figures represent a decrease from the previous period, April 2024/April 2025, when the inflation rate was 1.5 per cent, according to Trinidad and Tobago Newsday. The inflation rate for the comparative period, May 2023/May 2024, the report notes. The all items index, calculated from the prices collected for May 2025 was 125.3, representing a 0.1 per cent increase above the all items index for April, the report relays. The index for food and non-alcoholic beverages increased from 152.9 points in April to 153.4 in May 2025, a 0.3 per cent increase, the report notes. Increases in the prices of fresh whole chickens, cucumber, pumpkin, table margarine, instant coffee, white flour, oranges, bodi, soya bean oil and full cream milk contributed to the increase, the report discloses. However, the full impact of these prices was offset by the general decrease in prices of Irish potatoes, fresh Carite, melongene, onions, ochroes, plantains, fresh king fish, garlic, pimento and frozen whole chicken, the report says. Decreases were also noted in the prices of alcoholic beverages and tobacco, which went down by 0.3 per cent, clothing and footwear which went down by 0.1 per cent and health, which went down by 0.1 per cent, 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. 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