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250630.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 Monday, June 30, 2025, Vol. 26, No. 129 Headlines A R G E N T I N A ARGENTINA: Economy Grows Less Than Expected as Imports Surge PLUSPETROL SA: Unsecured Notes Add-on No Impact on Moody's B3 CFR B A R B A D O S INTERPLUS RE: A.M. Best Assigns B(Fair) Financial Strength Rating B E R M U D A APEX STRUCTURED: $400MM Loan Add-on No Impact on Moody's 'B2' CFR B R A Z I L BRAZIL: Central Bank Says Tightening Effects Yet to Be Felt C O L O M B I A COLOMBIA: S&P Lowers Foreign Curr. Sovereign Credit Rating to 'BB' C O S T A R I C A COSTA RICA: IDB Approves $250MM to Improve Care System J A M A I C A DOLPHIN COVE: Sells Real Estate Assets Amid Parent's Bankruptcy P U E R T O R I C O JAL OUTLET: Voluntary Chapter 11 Case Summary - - - - - ================= A R G E N T I N A ================= ARGENTINA: Economy Grows Less Than Expected as Imports Surge ------------------------------------------------------------ Manuela Tobias at Bloomberg News reports that Argentina's economy grew less than expected in the first quarter of 2025 as a pickup in imports along with declines in exports and government spending tempered the South American nation's recovery. Gross domestic product expanded 0.8 percent in first three months of the year compared with the previous quarter, far short of the 1.5 percent median estimate from analysts in a Bloomberg survey. From a year ago, Argentina's economy grew 5.8 percent in the period from January to March, according to government data published, according to Bloomberg News. The median estimate of economists surveyed by Bloomberg was growth of 6.1 percent. Still, the reading marks the third straight quarter of expansion, Bloomberg News relays. In May, monthly inflation in Argentina slowed to a five-year record of 1.5 percent, while wholesale prices showed deflation for the first time since the pandemic, Bloomberg News notes. The impressive year-on-year growth was expected, given that Argentina was in the midst of President Javier Milei's shock therapy of austerity at the start of 2024, after an abrupt currency devaluation dented consumer spending and the libertarian president halted government expenditures, Bloomberg News says. Since then, the significant recovery of Argentine wages and expanded credit availability have boosted household consumption. Consumer spending grew 2.9 percent quarter on quarter, Bloomberg News discloses. Argentina reached a US$20-billion agreement with the International Monetary Fund in April, and relaxed many of its capital and currency controls, Bloomberg News relays. The currency now floats between bands and is freely accessible to individuals, Bloomberg News notes. The peso has remained stable, with some government intervention in the futures market, Bloomberg News relays. An IMF mission will visit Buenos Aires to review its performance thus far and unlock an additional US$2 billion after an initial US$12 billion disbursement, Bloomberg News notes. Economists surveyed by Argentina's central bank in May expect the economy to grow 5.2 percent in 2025, Bloomberg News adds. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Javier Milei is the current president of Argentina after winning the November 19, 2023 general election. He succeeded Alberto Angel Fernandez in the position. Argentina has the third largest economy in Latin America. The country's economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. In March 2022, the International Monetary Fund (IMF) approved a 30-month arrangement under an Extended Fund Facility for Argentina in the amount of SDR 31.914 billion (equivalent to US$44 billion, or 1000 percent of quota) -- with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. The upgrade reflects the launch of a new IMF program, among other things. S&P Global Ratings, in February 2025 lowered its local currency sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and its national scale rating to 'SD' from 'raB+'. Moody's Ratings, in January 2025, raised Argentina's local currency ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1 from Caa3. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. PLUSPETROL SA: Unsecured Notes Add-on No Impact on Moody's B3 CFR ----------------------------------------------------------------- Moody's Ratings comments that Pluspetrol S.A. (Pluspetrol)'s B3 Corporate Family Rating, the B3 Senior Unsecured Notes rating and stable outlook remain unchanged following the company's announcement that it plans to issue an add-on to its senior unsecured notes due 2032. The transaction represents an add-on to the original $450 million notes issued in May 2025, with the incremental amount expected to be no less than $50 million. Net proceeds from the proposed issuance will be used to 1) repay or refinance existing indebtedness for up to 40% of the nominal value of the Notes, 2) invest in fixed assets located, working capital, and acquisitions of companies or businesses in Argentina, 3) capital contributions, 4) the financing of commercial activities of certain subsidiaries or related companies, and 5) general financing needs related to the company's commercial activities. In light of the anticipated issuance amount, Moody's expects the company's debt protection metrics to remain broadly unchanged. Pluspetrol's B3 ratings reflect its strong competitive position in the natural gas and oil production in Argentina, bolstered by high-quality assets and significant growth potential in both production and reserve development, supporting a solid cash flow and credit metrics over 2025-27 for the B3 rating category. The company's experienced management team has a notable track record in developing conventional and unconventional resources, contributing to its overall strength. Given Pluspetrol's high exposure to Argentina's business environment, its B3 ratings reflect Moody's views that the company's creditworthiness cannot be completely de-linked from the credit quality of the Argentine government and, thus, the rating needs to closely reflect the risk that the company shares with the sovereign. However, Pluspetrol's rating surpasses Argentina's rating by three notches (Government of Argentina, Caa3 positive), which reflects Pluspetrol's relatively strong credit metrics for its rating position and diversification of sales revenue through exports, expected to increase going forward. Pluspetrol´s ratings are mainly constrained by the concentration of assets and oil and gas production in Argentina, although this is partially mitigated by sales diversification through export markets (around 24% of revenue in 2024). The company is also exposed to regulatory risks within Argentina's local hydrocarbon market. Additionally, the company is vulnerable to the volatility of energy commodity prices, with approximately 30% of its revenues generated from natural gas sales and around 70% from crude oil sales. The ratings also take into account the strong support from its parent company, Pluspetrol Resources Corporation B.V., which can support the company if needed, given its strong liquidity position. A subordinated committed credit facility with an initial amount of $500 million will be established, sufficient to cover the development of the assets and expected debt service payments. No principal repayments would be made until leverage at the operating company is less than 1x, and the facility would be available for the life of the international bond financing. These factors enhance Pluspetrol's capacity to manage foreign currency debt. Given the strong linkages with the company's parent, governance risk is a consideration in the rating action. Pluspetrol has adequate liquidity. Pluspetrol had $63 million in cash as of December 2024, and Moody's expects it to generate adequate cash flow from operations through 2025 to cover interest payments of about $135 million and debt amortization of $167 million. However, given the ambitious capex plan, Moody's expects the company to fund it through debt acquisition. The parent company holds significant cash reserves in foreign currency abroad to support Pluspetrol if necessary. The stable outlook reflects the company's solid credit metrics for its rating category and adequate liquidity. However, the company's creditworthiness cannot be completely de-linked from the credit quality of the Argentine government, from which it generates the bulk of its revenue, and thus its ratings and outlook incorporate the risks that it shares with the sovereign, in line with Moody's cross-sector rating methodology, Assessing the Impact of Sovereign Credit Quality on Other Ratings, published in June 2019. =============== B A R B A D O S =============== INTERPLUS RE: A.M. Best Assigns B(Fair) Financial Strength Rating ----------------------------------------------------------------- AM Best has assigned a Financial Strength Rating of B (Fair) and a Long-Term Issuer Credit Rating of "bb+" (Fair) to Interplus Re Limited (Interplus) (Barbados). The outlook assigned to these Credit Ratings (ratings) is stable. The ratings reflect Interplus' balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. Interplus is a reinsurance company incorporated under the Laws of Barbados on Aug. 11, 2021, as a Class 2 License Insurance Company. Interplus is 98% owned by INTEHO Limited, based in Barbados. Interplus offers reinsurance products mainly focused on property business, which accounts for almost 79% of its gross written premium portfolio, followed by surety and credit lines (12%), accidents and health (8%) and the remaining (less than 1%) in life. Two thirds of the businesses underwritten by Interplus originates in Latin America and the Caribbean, with moderate concentration in Ecuador (29% of gross written premiums as of December 2024). The remaining 34% of its portfolio is distributed across Asia (25%), Africa (5%), Europe (4%) and Oceania (less than 1%). Interplus reached USD 34.9 million in gross written premiums during 2024, its third year of operation. AM Best assesses Interplus' business profile as limited due to the recent creation of the company and its small size within a highly competitive global market. Interplus' balance sheet strength is assessed as strong, reflecting the expected volatility of a startup company, its developing investment strategy and adjusting risk profile. The company's capital base has grown since its foundation, to USD 25.1 million as of December 2024, reflecting two years of positive net results and shareholder support from significant capital infusions. AM Best expects Interplus to continue strengthening its capital base through profitable results and prudent capital management. Interplus reported positive bottom-line results of USD 16 million as of December 2024. Reserve adjustments benefited technical results, allowing for a combined ratio of 32%, well within premium sufficiency levels. AM Best expects Interplus to remain profitable through adequate risk selection and stable expenses. The stable outlooks reflect AM Best's expectation that Interplus will continue strengthening its capital base, through prudent capital management and profitable results, to sustain its business plan to maintain current rating levels. Negative rating actions could take place if Interplus' operating performance deteriorates to a point no longer supportive of the adequate assessment and losses further weaken the company's balance sheet strength. Positive rating actions could take place if Interplus is able to consistently strengthen its capital through reinvestment of earnings or capital infusions, demonstrating stability at levels that support the current ratings, according to Best's Capital Adequacy Ratio (BCAR). The methodology used in determining these ratings is Best's Credit Rating Methodology (Version Aug. 29, 2024), which provides a comprehensive explanation of AM Best's rating process and contains the different rating criteria employed in the rating process. Key insurance criteria reports utilized: Evaluating Country Risk (Version June 6, 2024) Understanding Global BCAR (Version Aug. 1, 2024) Catastrophe Analysis in AM Best Ratings (Version Feb. 8, 2024) Available Capital and Insurance Holding Company Analysis (Version Aug. 15, 2024) Rating New Company Formations (Version Sept. 5, 2024) Scoring and Assessing Innovation (Version Feb. 20, 2025) View a general description of the policies and procedures used to determine credit ratings. For information on the meaning of ratings, structure, voting and the committee process for determining the ratings and monitoring activities, relevant sources of information and the frequency for updating ratings, please refer to Guide to Best's Credit Ratings. Initial Rating Date: June 20, 2025 Date Range of Financial Data Used: Dec. 31, 2022-Dec. 31, 2024 ============= B E R M U D A ============= APEX STRUCTURED: $400MM Loan Add-on No Impact on Moody's 'B2' CFR ----------------------------------------------------------------- Moody's Ratings announced that the ratings of Apex Structured Intermediate Holdings Ltd. (Apex), including the B2 corporate family rating and B2-PD probability of default rating, along with the B2 ratings of the senior secured bank credit facilities borrowed by Apex Group Treasury Limited and Apex Group Treasury LLC, are unaffected by Apex's proposed $400 million add-on currently being marketed to be issued by Apex Group Treasury Limited. The stable outlook for all entities remains unchanged. RATING RATIONALE The announcement reflects Apex's demonstrated consistent organic revenue growth of approximately 7% annually over the past two years and Moody's continues to see good growth opportunities in the fund administration sector where it operates. Moody's also understands that Apex is taking a lead in adopting AI tools to increase the efficiency of its operations, as well as providing administration services to the fast growing digital assets segment. Still, Apex's leverage remains material with Moody's adjusted debt/EBITDA at 6.8x for the last twelve months ending Q1 2025. Pro forma for the proposed $400 million add-on, this metric will increase to 7.2x before deleveraging back to 6.8x for the full year 2025. Moody's calculations of leverage reflect sizeable EBITDA adjustments including management actions, integration of past acquisitions, synergies and run-rate amounts. These amounts have declined slightly in the past twelve months and Moody's expects them to reduce further. While Apex has historically grown through acquisitions, there has been a marked decline in acquisition spending - from $2.8 billion in 2022 to $207 million in 2023 and $79 million in 2024. Moody's expects the acquisitions effectively to stop following the most recent announcement in May 2025 of Apex taking a majority stake in Tokeny, an enterprise-grade tokenisation solutions provider. Apex's B2 CFR continues to reflect its strong standing as one of the leading independent fund service providers globally, supported by a stable and recurring revenue base with limited sensitivity to market fluctuations. The rating is further underpinned by solid profitability and the potential to generate significant free cash flow. Apex also benefits from a well-diversified client portfolio and strong customer retention. The rating also takes into account the company's high financial leverage, substantial pro forma EBITDA adjustments, and the execution risks associated with integrating recent acquisitions. Additionally, Apex's reliance on an acquisition-led growth model limits its ability to deleverage and heightens exposure to regulatory and legal challenges. This strategy is expected to wind down although the company continued to make acquisitions in H1'25. LIQUIDITY Moody's considers Apex's liquidity to be adequate. Apex will have access to an undrawn $460 mm senior secured first lien revolving credit facility (RCF). The company also expects to have $160 mm cash pro forma for the add-on. STRUCTURAL CONSIDERATIONS The company's debt facilities consist of a senior secured first-lien term loan, divided into pro forma tranches of $2,976 million and EUR883 million, as well as a pari passu ranking $460 million senior secured RCF. The B2 rating on the senior secured first-lien senior secured facilities is in line with the B2 CFR. RATING OUTLOOK The stable outlook anticipates Apex's EBITDA growth driven by organic revenue and successful synergy realization from recent acquisitions, maintaining adequate liquidity and avoiding significant re-leveraging from acquisitions, while reducing large exceptional costs and enhancing free cash flow. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if Moody's-adjusted debt / EBITDA sustainably decreases to below 5.5x, (after adjusting for exceptional items considered recurring), Apex maintains high operating profitability and substantial free cash flow generation. Moreover, Apex would need to execute the integration of the recently closed acquisitions and realise targeted synergies successfully, leading to a substantial reduction in one-off items and other EBITDA adjustments. The ratings could be downgraded if Apex fails to reduce its Moody's-adjusted debt/EBITDA to below 6.5x (after adjusting for exceptional items considered recurring). A significant decrease in EBITA margins from the current high levels or sustained reduction in free cash flow generation would also put pressure on the rating. CORPORATE PROFILE Apex is one of the largest independent providers of fund administration services, financial and corporate solutions, founded in 2003 by its current CEO and with headquarters in Bermuda. The group is a global operator with presence in 50 countries across the world, serving more than 10,000 clients with over $3 trillion of assets on its platforms. Apex is majority-owned by private equity firm Genstar (56%), with minority shareholders TA Associates (24%), founder Peter Hughes, Mubadala and Carlyle holding most the remaining equity. During the twelve months period ended March 31, 2025, the group generated pro forma revenue of around $1.6 billion. =========== B R A Z I L =========== BRAZIL: Central Bank Says Tightening Effects Yet to Be Felt ----------------------------------------------------------- globalinsolvency.com, citing Reuters, reports that Brazil's central bank said that much of the impact from its "particularly quick and very firm" tightening cycle is yet to be felt, which is why it now foresees a pause in interest rate increases to assess those effects. In the minutes of the decision, when the monetary policy committee Copom raised rates by 25 basis points to 15% and signaled a "very prolonged" pause ahead, the central bank also stressed that it will still assess whether the current rate is appropriate to bring inflation back to target, according to globalinsolvency.com. About Brazil Brazil is the fifth largest country in the world and third largest in the Americas. Luiz Inacio Lula da Silva won the 2022 Brazilian general election. He was sworn in on January 1, 2023, as the 39th president of Brazil, succeeding Jair Bolsonaro. In October 2024, Moody's Ratings upgraded the Government of Brazil's long-term issuer and senior unsecured bond ratings to Ba1 from Ba2, the senior unsecured shelf rating to (P)Ba1 from (P)Ba2; and maintained the positive outlook. S&P Global Ratings raised on Dec. 19, 2023, its long-term global scale ratings on Brazil to 'BB' from 'BB-'. Fitch Ratings affirmed on Dec. 15, 2023, Brazil's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB' with a Stable Outlook. DBRS' credit rating for Brazil was last reported at BB with stable outlook at July 2023. =============== C O L O M B I A =============== COLOMBIA: S&P Lowers Foreign Curr. Sovereign Credit Rating to 'BB' ------------------------------------------------------------------ S&P Global Ratings, on June 26, 2025, lowered its long-term foreign currency sovereign credit rating on Colombia to 'BB' from 'BB+' and the long-term local currency rating to 'BB+' from 'BBB-'. The outlook on the long-term ratings is negative. S&P said, "We also lowered our short-term local currency sovereign credit rating to 'B' from 'A-3' and our transfer and convertibility assessment to 'BBB-' from 'BBB'. We affirmed our short-term foreign currency rating at 'B'." Outlook S&P's negative outlook reflects the risk that steady fiscal deterioration in Colombia could persist over several years alongside the country's heightened security challenges, further worsening the sovereign's financial profile. Concerns about the long-term trajectory of fiscal policy could hurt investor sentiment and contribute to poor economic performance. Downside scenario S&P could lower its ratings on Colombia over the next 12-18 months if the government fails to take effective and timely measures to stabilize fiscal accounts and debt levels while also sustaining the country's GDP growth. A continuation of large fiscal deficits could dampen investor confidence and reduce GDP growth prospects. Upside scenario S&P could revise its outlook to stable over the next 12-18 months if the government undertakes a fiscal consolidation that reduces fiscal deficits, stabilizes Colombia's debt and interest burdens, and bolsters investor confidence. Fiscal consolidation, combined with moderate current account deficits, could gradually strengthen Colombia's external indicators, supporting greater economic resilience. Rationale S&P's ratings on Colombia capture its limited fiscal flexibility, high debt burden, weak external position (including its volatile terms of trade), and moderate GDP per capita. The combination of large fiscal deficits and weak economic performance has worsened Colombia's public finances and increased its vulnerability to external shocks. Expansive government primary spending, a growing interest burden, and lower-than-expected revenue collections have caused it to significantly miss fiscal targets and post large deficits since 2024. Fiscal policy has also become less predictable, as highlighted by the government's recent decision to suspend the country's fiscal rule for three years. In addition, the ratings reflect the flexibility that comes from Colombia's central bank, which has pursued an inflation-targeting monetary policy with a floating exchange rate that provides buffers against external shocks. The ratings also take into account Colombia's long-term democracy and political stability, with checks and balances. Offsetting these institutional strengths are Colombia's persistent security challenges, which recently have become more prominent. Institutional and economic profile: Less predictable fiscal policy poses additional risks for long-term economic growth and a sustainable fiscal position -- Large government deficits and the recent decision to suspend Colombia's fiscal rule for three years generate more uncertainty about the trajectory of government debt in coming years. -- S&P expects economic growth in Colombia to reach 2.8% by 2026. National elections due in 2026 could reduce the incentives for Congress to take meaningful actions on fiscal policy. -- S&P expects the economy in Colombia to grow 2.5% in 2025, and to trend toward 3% by 2026--or close to potential levels. Its estimate sees GDP per capita at US$8,140 in 2025 and real per capita growth at just above 2%, on average, for 2025-2028. Private credit, responding to softer monetary conditions, should sustain consumption growth and investment over the second half of 2025 and beyond. Household consumption also continues to benefit from lower inflation, strong remittances, and significant spillover effects from agriculture and tourism. And while it's still low, investment grew in the four quarters that ended March 2025. Colombia's security situation still poses political, social, and economic challenges, and it affects our institutional assessment of the country. Levels of crime and violence remain high, despite the signing of a peace accord with the country's largest guerrilla group in 2016. Drug production is reportedly at record levels. And poor social and economic conditions in neighboring Venezuela (which has a porous border with Colombia) have boosted criminal activity and sparked large population displacements. A recent assassination attempt in Bogota against a potential presidential election candidate and several bomb attacks in and near the city of Cali have also worsened the perception of security. Colombian President Gustavo Petro's four-year term will end next year when the country elects new national political leadership. Petro has had moderate success in passing his ambitious agenda of social reforms. His pension proposals are likely to regain congressional approval very soon following a recent reform of labor laws. However, Congress did not approve his health care reform. Colombia's public finances have deteriorated in recent years because of large government deficits and rising debt and interest burdens. Noninterest government spending has increased (as a share of GDP) in recent years, but revenue has failed to keep up, with revenue growth falling short of projections despite the passage of tax reforms in 2021 and 2022. Indeed, difficulty in raising revenue is a long-standing fiscal challenge, reflecting Colombia's relatively weak capacity to widen and deepen the tax base in order to meet growing demand for government spending. Low GDP growth in recent years, combined with public demands for more social spending (especially after the pandemic), has contributed to the underlying deterioration in public finances. The government's recent suspension of Colombia's fiscal rule is likely to generate more uncertainty about the trajectory of government debt in coming years. The move was accompanied by a consolidation plan involving the introduction of tax reforms in Congress this year--reforms that are intended to raise government revenue by 1% of GDP in 2026 and start primary spending cuts in 2027 (after the elections), reaching 2% of GDP by 2028. Congressional approval of the tax reforms, and their potential yield, is uncertain. The country's traditional political parties have become weaker in recent years, making it harder to predict future economic policies. Colombia's Congress had approved a major decentralization of the public sector via a substantial boost in the transfer of funds from the central government to local governments, designed to be phased in over 12 years. However, it has yet to pass complementary laws to transfer central government spending obligations to local governments, thereby matching resources with new tasks. The reform could disrupt fiscal stability or worsen the quality of public services unless it's implemented prudently. Flexibility and performance profile: The fiscal trajectory has deteriorated, resulting in higher expected debt levels -- S&P's base case assumes large fiscal deficits in 2025-2026 and only a mild fiscal consolidation afterward. -- Current account deficits should be largely funded by foreign direct investment. -- S&P expects that the central bank will bring inflation to its target by 2026. S&P said, "We expect the general government fiscal deficit to worsen to 7.1% of GDP in 2025 from 6.1% in 2024. Based on a limited policy response, we expect deficits to average 6.2% of GDP over 2026-2028. We assume that the revenue benefit from a new tax reform that's likely to be presented this year will be low. Our definition of the general government deficit includes the central government, social security systems, a deposit guarantee fund, the central bank, and local and regional governments." ' Net general government debt could rise by 6.2% of GDP annually during the 2025-2028 period, accounting for the impact of currency depreciation and debt indexation. Net general government debt is expected to rise and average 64% of GDP in 2025-2028, compared with 58% in 2024. Government interest payments may stabilize at above 15% of general government revenue over the same period. Interest expenses may peak at almost 5% of GDP by 2026--compared with the 3% average over 2017-2019--and they will continue to reduce Colombia's fiscal flexibility over the next three years. The government might increase its reliance on short-term debt, leading to a reduction in its average debt maturity. S&P said, "We assess the sovereign's contingent liabilities as limited. Our assessment of Colombia's financial system, with total assets estimated at 67% of GDP as of 2024, is based on our classification of the system in our Banking Industry Country Risk Assessment (BICRA) group 6. (Our BICRA groups are on a scale from 1 to 10, with 1 denoting the lowest risk and 10 the highest risk.)" The current account deficit (CAD) is likely to stabilize at just below 3% of GDP in 2025-2028. The expected CAD is lower than its pre-pandemic levels, mostly reflecting higher remittances and strong service sector exports (mostly tourism and corporate services). Partially compensating for weak oil and coal exports is the strength in exports of coffee, other agricultural products, and gold. Despite numerous free trade agreements and logistical improvements, Colombian exports are still concentrated in the hydrocarbon sector, historically resulting in high volatility in terms of trade. S&P said, "We expect the CAD to be largely funded by foreign direct investment, helping narrow net external debt and helping it stabilize at approximately 120% of current account receipts (CAR) in 2025-2028. We expect gross external financing needs of just below 100% of CAR in 2025-2028." Colombia's central bank has a strong record of targeting inflation and letting the currency float freely. S&P expects continuity in monetary policy that will anchor inflation expectations. Inflation has been at roughly 5% since November 2024, but tight monetary policy should bring it within the central bank's target of 3% plus or minus 1% by 2026. Environmental, social, and governance (ESG) credit factors for this change in credit rating/outlook and/or CreditWatch status: -- Other governance factors In accordance with S&P's relevant policies and procedures, the Rating Committee was composed of analysts that are qualified to vote in the committee, with sufficient experience to convey the appropriate level of knowledge and understanding of the methodology applicable. At the onset of the committee, the chair confirmed that the information provided to the Rating Committee by the primary analyst had been distributed in a timely manner and was sufficient for Committee members to make an informed decision. After the primary analyst gave opening remarks and explained the recommendation, the Committee discussed key rating factors and critical issues in accordance with the relevant criteria. Qualitative and quantitative risk factors were considered and discussed, looking at track-record and forecasts. The committee's assessment of the key rating factors is reflected in the Rating Component Scores above. The chair ensured every voting member was given the opportunity to articulate his/her opinion. The chair or designee reviewed the draft report to ensure consistency with the Committee decision. The views and the decision of the rating committee are summarized in the above rationale and outlook. The weighting of all rating factors is described in the methodology used in this rating action. Ratings list Downgraded To From Colombia Sovereign Credit Rating Foreign Currency BB/Negative/B BB+/Negative/B Local Currency BB+/Negative/B BBB-/Negative/A-3 Transfer & Convertibility Assessment Local Currency BBB- BBB Senior Unsecured Local Currency BB+ BBB- Foreign Currency BB BB+ Short-Term Debt B A-3 =================== C O S T A R I C A =================== COSTA RICA: IDB Approves $250MM to Improve Care System ------------------------------------------------------ The Inter-American Development Bank (IDB) approved a $250 million loan to improve quality of life for people in Costa Rica who need care, such as the elderly and people with disabilities, and to increase the well-being of caregivers. Costa Rica is experiencing one of the fastest population aging processes in Latin America and the Caribbean. Currently, 11 out of every 100 people are 65 years or older, and by 2050 this figure is projected to increase to 25 out of every 100 inhabitants. This demographic change significantly increases the demand for care services. This loan will help expand coverage and improve the quality of these services, as well as strengthen support for caregivers. This is the first operation under IDB Cares, the Bank's initiative to expand care services and infrastructure to improve the lives of children, the elderly, and people with disabilities who require care, while also creating jobs and accelerating economic growth in Latin America and the Caribbean. The loan will strengthen Costa Rica's National System of Care and Support for Dependent Adults and Elderly People (SINCA, its acronym in Spanish). The initiative includes reforms to improve the management of the official budget, the accountability of service providers, and information for decision-making, integrating it into the social household registry. The project will benefit approximately 160,000 adults with functional dependency in the country. Additionally, it will reach about 170,000 caregivers, including 140,000 unpaid and 30,000 paid caregivers. The operation includes the implementation of the CUIDAR.CR platform, a digital tool that will facilitate the connection between caregivers and those who require care services. This platform will enable the registration of formal and informal caregivers, make their credentials visible, and improve their employability, contributing to the professionalization of care work and generating new economic opportunities. In turn, the project will provide benefits to unpaid caregivers and improve the quality of services with better instruments and supervision mechanisms. The IDB loan has a disbursement period of one year, a grace period of 5.5 years, and an interest rate based on SOFR. ============= J A M A I C A ============= DOLPHIN COVE: Sells Real Estate Assets Amid Parent's Bankruptcy --------------------------------------------------------------- RJR News reports that the real estate assets of Dolphin Cove are expected to be placed on the market soon as part of efforts to raise funds for its parent company, Dolphin Discovery Group, which recently filed for Chapter 11 bankruptcy in Delaware, United States. The development was revealed in a court filing by Leisure Investment Holdings LLC, the main holding company for the Dolphin Discovery Group, according to RJR News. Steven Robert Strom, the sole administrator for Leisure Investments and its subsidiaries, has sought court approval to hire Green Hill and Company LLC as investment bankers, the report notes. Keen-Summit Capital Partners has been retained as the real estate advisor and broker, 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 ===================== JAL OUTLET: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor: JAL Outlet, Inc. Carretera 2, KM 165.2 Hormigueros, PR 00660 Business Description: JAL Outlet, Inc. is a wholesale distributor of motor vehicles and automotive parts operating out of Hormigueros, Puerto Rico. The Company supplies products such as vehicle components, accessories, and related equipment to retailers and service providers. Chapter 11 Petition Date: June 23, 2025 Court: United States Bankruptcy Court District of Puerto Rico Case No.: 25-02796 Judge: Hon. Maria De Los Angeles Gonzalez Debtor's Counsel: Charles A. Cuprill, Esq. CHARLES A. CUPRILL, PSC LAW OFFICES 356 Fortaleza St. (2nd Floor) San Juan, PR 00901 Tel: 787-977-0515 Email: cacuprill@cuprill.com Estimated Assets: $10 million to $50 million Estimated Liabilities: $1 million to $10 million The petition was signed by Jose A. Lugo Alverio as president. The petition was filed without the Debtor's list of its 20 largest unsecured creditors. A full-text copy of the petition is available for free on PacerMonitor at: https://www.pacermonitor.com/view/4G4TO5I/JAL_Outlet_Inc__prbke-25-02796__0001.0.pdf?mcid=tGE4TAMA ********* 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. 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