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250711.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, July 11, 2025, Vol. 26, No. 138 Headlines A N T I G U A A N D B A R B U D A LIAT: To Begin Flights Between Montego Bay and Kingston on July 11 B E R M U D A BERMUDA: Inflation to February Moderates at 1.9% B R A Z I L YINSON BERGENIA: Fitch Rates $1.16 Billion Secured Notes 'BB+' C H I L E ENJOY SA: S&P Withdraws 'D' Issuer Credit Rating J A M A I C A JAMAICA: DBJ Secures EUR400,000 Grant to Support MSMEs JAMAICA: Economy Expands 1.1% in Q1 P A N A M A [] Fitch Takes Action on Panamanian RMBS Deals P A R A G U A Y PARAGUAY: IDB OKs $75MM Loan to Improve Rural Access to Services P U E R T O R I C O ANCHOR FUNDING: Seeks to Hire Alexis Fuentes-Hernandez as Counsel CONCORDE METRO: Seeks to Hire Christiansen Commercial as Realtor PUERTO RICO: Bond Suit Doesn't Belong In Conn., Insurers Say - - - - - ===================================== A N T I G U A A N D B A R B U D A ===================================== LIAT: To Begin Flights Between Montego Bay and Kingston on July 11 ------------------------------------------------------------------ RJR News reports that domestic flights between Montego and Kingston are set to return after a five-year break. LIAT Airlines will launch a new intra-island service, July 11, operating three times a week from Sangter International Airport, according to RJR News. The announcement was made by Shane Monroe, CEO of MBJ Airports during the airport forum in Montego Bay, the report relays. He said the flights will connect Montego Bay, Kingston and Antigua and are part of efforts to boost regional connectivity, the report discloses. The new service is expected to be a game-changer, cutting travel time between Montego Bay and Kingston from over two hours by car to just 25 minutes by air, the report says. It's also expected to support growth in tourism, logistics and commerce across the island and the wider Caribbean, the report adds. About LIAT LIAT Ltd., formerly known as Leeward Islands Air Transport or LIAT, is an airline headquartered on the grounds of V. C. Bird International Airport in Antigua. It operates high-frequency inter-island scheduled services serving 15 destinations in the Caribbean. The airline's main base is VC Bird International Airport, Antigua and Barbuda, with bases at Grantley Adams International Airport, Barbados and Piarco International Airport, Trinidad and Tobago. The airline is owned by seven Caribbean governments, with three being the major shareholders: Barbados, Antigua & Barbuda and St. Vincent and the Grenadines along with Dominica(94.7 %); other Caribbean governments, private shareholders and employees (5.3%). In the last few years, LIAT has been challenged with financial difficulties, often needing additional funding as the airline dealt with the high cost of operations. In November 2016, the Barbados government defended LIAT's operations, even as opposition legislators called for a cessation of the business. In early 2015, LIAT offered early retirement packages to employees in efforts to downsize. In 2014, LIAT knew it had to deal with unprofitable routes to make operations viable. In the third quarter of 2013, the airline's top management was shaken, with news Chief Executive Officer Captain Ian Brunton's sudden resignation. LIAT's current chief executive officer is Julie Reifer-Jones, chairman is Jean Holder, and chief financial officer is Rojer Inglis. Dr. Ralph Gonsalves, prime minister of St. Vincent & the Grenadines, serves as chairman of LIAT shareholders. ============= B E R M U D A ============= BERMUDA: Inflation to February Moderates at 1.9% ------------------------------------------------ David Fox at Royal Gazette reports that year-over-year inflation rose just under 2 per cent in February, the Government reported. Consumers paid 1.9 per cent more than they did a year earlier for the basket of goods and services included in the consumer price index, according to Royal Gazette. This was a 0.1 percentage point increase from the January 2025 annual inflation rate of 1.8 per cent, the report notes. The period used as a reference point for measuring the price change of goods and services, the base period for the Bermuda CPI, is April 2015, the report recalls. Housing carries the most weight, 26.71 per cent, in terms of impact of the nine sectors on the index calculation, followed by Education, Recreation, Entertainment and Reading at 14.68 per cent, the report notes. Transport and Foreign Travel is 13.01 per cent, Health and Personal Care 12.97 per cent, Household Goods, Services and Supplies 11.59 per cent, Food 11.53 per cent, Fuel and Power 3.91 per cent, Tobacco and Liquor 3.11 per cent and Clothing and Footwear 2.50 per cent, the report relays. Government figures show that in the twelve months to February 2025 the following divisions had significant impacts on the annual percentage change: rent up 2.3 per cent; Education, Recreation, Entertainment and Reading was up 1.6 per cent; Transport and Foreign Travel was 1.5 per cent higher, Health and Personal Care was up 3.1 per cent and Food was up 1.9 per cent, the report notes. Over the past decade, the annual rate of inflation exhibited significant variability, reaching a ten-year low of -1.4 per cent in July 2020 and peaking at 5.1 per cent in September 2022, the report says. The annual average percentage change for the period 2015 to 2024 shows an overall upward trend in average price levels, with the highest annual average increase recorded in 2022 at 4 per cent, the report discloses. Since then, the annual average rate of increase has slowed, falling to 3.3 per cent in 2023 and to 1.9 per cent in 2024, the report notes. This indicates a continued moderation in the average rate of price growth following the post-pandemic peak, the report relays. During the last ten years, the year-over-year percentage change in food prices exhibited the most prominent fluctuation between 2022 and 2024, reaching a high of 10.6 per cent in September 2022, the report says. The annual average percentage change for the period 2015 to 2024 shows a positive growth trend in the price change of food, peaking in 2022 at an average 7.9 per cent, the report notes. Since then, the rate of increase has slowed, with a 6.5 per cent rise in 2023 and a further moderation to 3.6 per cent in 2024, the report adds. =========== B R A Z I L =========== YINSON BERGENIA: Fitch Rates $1.16 Billion Secured Notes 'BB+' -------------------------------------------------------------- Fitch Ratings has assigned a final rating of 'BB+' to the $1.168 billion senior secured notes issued by Yinson Bergenia Production B.V. The Rating Outlook is Stable. Entity/Debt Rating Prior ----------- ------ ----- Yinson Bergenia Production B.V. Yinson Bergenia Production B.V. Senior Secured Notes 98585VAA6 LT BB+ New Rating BB+(EXP) 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 1.31x, 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-1.24x, 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. PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS The rating is linked to the credit quality of the operator and offtaker, this is outlined in the key rating drivers for the transaction. 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 ========= ENJOY SA: S&P Withdraws 'D' Issuer Credit Rating ------------------------------------------------ S&P Global Ratings withdrew its 'D' issuer credit rating and 'D' issue-level rating on Enjoy S.A. because of a lack of sufficient and timely information to maintain the rating, particularly regarding a new capital structure and business plan after the recent company reorganization. ============= J A M A I C A ============= JAMAICA: DBJ Secures EUR400,000 Grant to Support MSMEs ------------------------------------------------------ RJR News reports that the Development Bank of Jamaica has secured a EUR400,000 grant from the Agence Française de Développement (AFD) to support Jamaican micro, small and medium-sized enterprises (MSMEs). The grant will fund a technical assistance program aimed at strengthening DBJ's operations and improving access to financing for MSMEs, particularly in sectors like agriculture, renewable energy, education and healthcare, according to RJR News. It complements a US$5 million credit facility signed earlier this year to support climate and social investments, the report notes. DBJ Managing Director Dr. David Lowe says the initiative will help Jamaican MSMEs become key drivers of sustainable growth, the report notes. AFD's regional director, Marc Duburnet, added that the support will also empower female entrepreneurs and boost job creation, the report discloses. MSMEs account for more than 60% of Jamaica's employment, making their resilience vital to economic progress, the report relays. DBJ says it provided capital to 8,792 micro, small and medium sized enterprises during the 2024-2025 fiscal year, the report says. The bank also says 80% of this money was disbursed through approved financial institutions, such as commercial banks and microfinance institutions, while it disbursed the remaining 20%, the report adds. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a positive rating outlook. In October 2023, Moody's upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to B1 from B2, and senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has been changed to positive from stable. In September 2024, S&P affirmed 'BB-/B' longterm foreign and local currency sovereign credit ratings on Jamaica and revised outlook to positive. JAMAICA: Economy Expands 1.1% in Q1 ----------------------------------- Jamaica Observer reports that Jamaica's economy expanded by 1.1 per cent in the first quarter of 2025 from a year earlier, the Statistical Institute of Jamaica (Statin) said, as the country implemented sweeping changes to its national accounting framework in line with international standards. The growth figure, which revises upward the Planning Institute of Jamaica's (PIOJ) earlier estimate of 0.8 per cent, comes as Jamaica adopts the United Nations' 2008 System of National Accounts (SNA 2008) and the Jamaica Industrial Classification 2016 (JIC 2016), according to Jamaica Observer. The overhaul rebases constant-price GDP calculations to 2015 from 2007 and incorporates updated data sources, including the 2017 Household Expenditure Survey, to better capture household spending and informal sector activity, the report notes. Statin said the methodological updates resulted in an average increase of 7.8 per cent in historical GDP levels between 2015 and 2023, the report relays. The changes are intended to provide a more accurate reflection of Jamaica's economic structure and improve the comparability of its data with over 100 countries now using the SNA 2008 framework, the report says. "Our revised accounts provide a clearer lens on Jamaica's economic structure, ensuring alignment with global standards for evidence-based policymaking," said Statin Acting Director General Leesha Delatie-Budair, the report notes. Sectoral Performance The January-March quarter saw a 2 per cent rise in goods-producing industries and a 0.8 per cent increase in services, Statin said, the report discloses. Within goods, agriculture, forestry and fishing led with 3.1 per cent growth, followed by manufacturing at 1.7 per cent, construction at 1.4 per cent, and mining and quarrying at 0.7 per cent, the report says. In services, the information and communication sector posted the strongest performance, up 6.4 per cent, reflecting the reclassification of publishing and media activities into the sector under the new JIC 2016 system, the report relays. Transportation and storage grew by 1.9 per cent, while accommodation and food service activities, and financial and insurance activities each rose by 1.2 per cent, the report notes. Electricity, water supply and waste management increased by 1.1 per cent, and other services by 1 per cent, the report relays. Real estate and business services and wholesale and retail trade were the only sectors to decline, down 0.4 per cent and 0.8 per cent, respectively, the report says. Reclassification and Methodological Changes The adoption of JIC 2016 brings Jamaica's industry classification in line with international standards, the report notes. Publishing is now included in information and communication rather than manufacturing, utilities now cover waste management, and real estate and business services have expanded to include travel agencies and veterinary clinics, the report discloses. Statin also refined its approach to calculating financial intermediation services indirectly measured (FISIM), in accordance with SNA 2008 recommendations, the report says. The International Monetary Fund has validated Jamaica's transition, noting improved cross-country comparability, the report relays. Statin said a full National Income and Product Report for 2023 will be published by July 31, 2025, the report notes. Jamaica's first-quarter growth follows a contraction of 0.4 per cent in 2024, when the economy was hit by Hurricane Beryl and softer US demand, the report relates. The Government expects modest but positive growth in 2025, supported by domestic demand and the statistical boost from the new accounting standards, though external risks remain, the report says. Statin said it will continue to refine data sources and estimation techniques as part of ongoing efforts to improve the quality and relevance of Jamaica's economic statistics, 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 A N A M A =========== [] Fitch Takes Action on Panamanian RMBS Deals ---------------------------------------------- Fitch Ratings has affirmed the notes issued by La Hipotecaria Panamanian Mortgage Trust 2014-1, La Hipotecaria Mortgage Trust 2019-1, La Hipotecaria Mortgage Trust 2019-2, La Hipotecaria Panamanian Mortgage Trust 2021-1. Fitch has also affirmed the notes from Twelfth Mortgage-Backed Notes Trust (Trust 12) and Sixteenth Mortgage-Backed Notes Trust (Trust 16). Fitch has additionally affirmed the series A notes from Fourteenth Mortgage-Backed Notes Trust (Trust 14) at 'BB+sf'. Fitch has upgraded the series B and C to 'BB+sf' and 'Bsf', respectively, from 'BBsf' and 'CCCsf' and assigned Outlook Stable for both classes. The Rating Outlook is Stable for all ratings, except series B and C notes from Trust 16, which do not carry an Outlook. Entity/Debt Rating Prior ----------- ------ ----- La Hipotecaria Mortgage Trust 2019-2 Series 2019-2 Certificates US50346XAA37 LT BB+sf Affirmed BB+sf La Hipotecaria Panamanian Mortgage Trust 2021-1 Series 2021-1 Certificates LT BB+sf Affirmed BB+sf Fourteenth Mortgage-Backed Notes Trust A LT BB+sf Affirmed BB+sf B LT BB+sf Upgrade BBsf C LT Bsf Upgrade CCCsf Sixteenth Mortgage-Backed Notes Trust A US50347JAA34 LT BB+sf Affirmed BB+sf B LT CCCsf Affirmed CCCsf C LT CCsf Affirmed CCsf La Hipotecaria Mortgage Trust 2019-1 Series 2019-1 Certificates Class AAA 50346WAA5 LT AA+sf Affirmed AA+sf La Hipotecaria Panamanian Mortgage Trust 2014-1 Class A-1 50346EAA5 LT AA+sf Affirmed AA+sf Class A-2 50346EAB3 LT BB+sf Affirmed BB+sf Twelfth Mortgage-Backed Notes Trust Series A PAL3006961A4 LT BB+sf Affirmed BB+sf KEY RATING DRIVERS RMBS Transactions Trust 12, Trust 14, Trust 16 Higher Stresses Applied Due to Macroeconomic Adjustments: Fitch expects Panama's real GDP growth to reach 4.0% in 2025, and to have unemployment rate decreasing to 8.0%, from 8.9% observed YE 2024. Fitch continues to apply higher stress scenarios as described in "Fitch Ratings Revises Macroeconomic Adjustment for La Hipotecaria RMBS in Panama", considering the underperformance of loans since pandemic and challenging macroeconomic environment. In the additional stress scenario analysis, the 'Bsf' representative pool weighted average foreclosure frequency (WAFF) for BLH in Panama increased to 9.68% from 8.22% in the current assumption. As adjustments were maintained at 1.0x at 'A-sf', given that Fitch not envisage changes to the SF Rating Cap (A-sf), rating multiples were compressed. Operational Risk Mitigated (Latin America RMBS Rating Criteria): Grupo ASSA, S.A. (BBB-/Stable, primary servicer) has hired Banco La Hipotecaria, S.A. (the sub-servicer) to be the servicer for the mortgages. Fitch has reviewed Banco La Hipotecaria's systems and procedures and is satisfied with its servicing capabilities. Fitch does not expect additional impact from the sale of Grupo ASSA's stake to Inversiones Cuscatlan Centroamerica, S.A. Additionally, Banco General S.A. ('BBB-'/Stable) has been designated as back-up servicer in order to mitigate the exposure to operational risk, and will replace the defaulting servicer within five days of a servicer disruption event. Country of Assets Determine Maximum Achievable Ratings: Panama's IDR is rated 'BB+'/Stable. The series A from Trust 12, Trust 14 and Trust 16 are capped at the sovereign IDR, due to the high exposure to public servants, subsidies (for the Trust 12 and Trust 16) and to liquidity for these series, through Letter of Credit provided by Banco General (BBB-/Stable). However, this entity as of today does not constrain the rating. Twelfth Mortgage-Backed Notes Trust Asset Assumptions Similar to Last Review: Based on May 2025, under a 'BB+sf' scenario, the A note would need to support a WAFF of 22.1% and a weighted average recovery rate (WARR) of 95.0%, compared to a WAFF of 21.9% and a WARR of 93.8% from last annual review, in August 2024. These assumptions consider the main characteristics of the assets, where OLTV is 91.4%, the seasoning average 165 months and remaining term 205 months, WA current loan-to-value is 57.0% and the majority of performing borrowers (60.4%) pay through payroll deduction mechanism. The assumptions also consider a Performance Adjustment Factor of 0.7x considering the historical performance of the portfolio and Macroeconomic Adjustments. Robust Credit Enhancement Supports Assigned Rating: Credit enhancement (CE) has increased following the sequential nature of the transaction and good asset performance. As of May 2025, CE has increased to 30.1% from 28.9% observed in June 2024 for series A. The transaction also benefits from a reserve account of 1% of the outstanding balance of the series A notes in the form of a letter of credit, which is sufficient to cover almost three months of senior expenses and interest payment on the Series A notes. Fourteenth Mortgage-Backed Notes Trust Asset Assumptions Similar to Last Review: Based on May 2025, under a 'BB+sf' scenario, the A and B notes would need to support a WAFF of 20.9% and a WARR of 83.0%, compared to a WAFF 20.7% and a WARR of 82.7% from last annual review, in August 2024. In a 'Bsf' scenario, the Series C notes would need to support a WAFF of 11.7% and a WARR of 91.2%, compared to a WAFF of 11.8% and a WARR of 91.2% from its last annual review, at the same rating level. These assumptions consider the main characteristics of the assets, where OLTV is 84.1%, the seasoning average 153 months and remaining term 207 months, WA current loan-to-value is 62.0% and the majority of performing borrowers (62.0%) pay through payroll deduction mechanism. The assumptions also consider a Performance Adjustment Factor of 0.7x considering the historical performance of the portfolio and Macroeconomic Adjustments. Transaction Performance Supports Upgrades: CE has increased during the last year due to the sequential nature of the structure. As of May 2025, CE has increased to approximately 15.2% up from 13.4% observed in June 2024 for the Series A notes, to 5.4% from 4.3% for the Series B notes, and for series C it increased to 2.2% from 1.3%. The series A notes benefits from a reserve account equivalent to 3x its next interest payment in the form of a letter of credit. Due to increasing CE and good asset performance, the series B and C notes have been upgraded to 'BB+sf' and 'Bsf', respectively. Sixteenth Mortgage-Backed Notes Trust Asset Assumptions Similar to Last Review: Based on May 2025, under a 'BB+sf' scenario, the A note would need to support a WAFF of 20.9% and a WARR of 61.6%, compared to a WAFF of 19.2% and a WARR of 60.2% from last annual review, in August 2024. For the base case scenario, the WAFF was updated to 10.2% from 9.2% and the WARR 77.0% from 76.1%. These assumptions consider the main characteristics of the assets, where OLTV is 90.0%, the seasoning average 92 months and remaining term 269 months, WA current loan-to-value is 70.2% and the majority of performing borrowers (76.6%) pay through payroll deduction mechanism. Fiscal Credit Delays Impacting CE: CE has decreased again since last review due to the lack of receipt of fiscal credits since May 2024, which causes a temporary negative carry. Series A CE decreased to 6.8% from 10.1%, while for series B decreased to -4.5% from -0.7% and for the series C, -7.3% from -3.4%. Despite these decreases, current CE levels remain in line with assigned ratings. Fitch expects CE levels to recover to higher percentages, consistent with those seen in the previous review. The Series A notes are supported by an interest reserve account equal to three times their upcoming interest payment, as well as excess spread. They also benefit from a sequential pay structure, wherein target amortization payments for Series A rank senior to both interest and principal payments on the Series B and C notes. CLN Transactions La Hipotecaria Panamanian Mortgage Trust 2014-1 A-1, La Hipotecaria Trust 2019-1 DFC's Credit Quality Supports Rating: The rating assigned to the La Hipotecaria Panamanian Mortgage Trust 2010-1, La Hipotecaria Panamanian Mortgage Trust 2014-1 A-1, and La Hipotecaria Trust 2019-1 certificates is commensurate with the credit quality of the guarantee provider. The credit quality of U.S. International Development Finance Corporation (DFC) is directly linked to the U.S. sovereign rating (AA+/F1+/Stable), as guarantees issued by, and obligations of, DFC are backed by the full faith and credit of the U.S. government, pursuant to the Foreign Assistance Act of 1969. The ULT rating assigned to the 2010-1 certificates is commensurate with the credit quality of the series A notes of the Tenth Mortgage-Backed Notes Trust. Reliance on DFC Guaranty: Fitch assumes the payment on the La Hipotecaria Panamanian Mortgage Trust 2014-1 A-1, and La Hipotecaria Trust 2019-1 certificates will rely on the DFC guaranty. Through this guaranty, DFC will unconditionally and irrevocably guarantee the receipt of proceeds from the underlying notes in an amount sufficient to cover timely scheduled monthly interest amounts and the ultimate principal amount on the certificates. Ample Liquidity: The La Hipotecaria Panamanian Mortgage Trust 2014-1 A-1 and La Hipotecaria Trust 2019-1 certificates benefit from liquidity, in the form of a five-day buffer between payment dates on the underlying notes and payment dates on the certificates. Additionally, the certificates benefit from liquidity in the form of an interest reserve account or a letter of credit at the underlying note level. Fitch considers this sufficient to keep debt service current on the guaranteed certificates until funds under a claim of DFC are received. La Hipotecaria Panamanian Mortgage Trust 2014-1 A-2 Certificates, La Hipotecaria Trust 2019-2, La Hipotecaria Panamanian Mortgage Trust 2021-1 Credit Quality of the Underlying Notes Support Ratings: The 2014-1 A-2, 2019-2 and 2021-1 certificates are a repackaging of the Trust 12, Trust 14 and Trust 16 Series A notes, respectively, therefore the rating assigned to the certificates is commensurate with the credit rating of the series A notes of each transaction, which carry a rating of 'BB+sf'/Outlook Stable. The interest received from the underlying notes is expected to be sufficient to cover the expenses and coupon payments due for the certificates. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The ratings of the A notes from Trust 12, Trust 14 and Trust 16 and series B notes from Trust 14 are sensitive to changes in the credit quality of Panama. A downgrade of Panama's ratings could lead to a downgrade on the notes. In addition, the ratings of the A Notes from Trust 12 and Trust 14 could be sensitive to changes in the credit quality of Banco General as the Letter of Credit provider. Finally, severe increases in foreclosure frequency as well as reductions in recovery rates could lead to a downgrade of the notes. The series B of Fourteenth Mortgage-Backed Notes Trust can be downgraded in one notch if there is a reduction in recovery rate of 30%. The series C could be downgraded if this reduction is combined with an increase in foreclosure frequency in 30%. The series A and B of Trust 16 can also be downgraded if CE deteriorate to a level that is not able to be considered sufficient to converge to current level stresses. Particularly, series A of Trust 16 could have a notch downgrade if WAFF is increased in 15%, or WARR is decreased in 15%. An increase in 30% in WAFF, combined with a decrease of 30% in WARR could cause a downgrade of three notches, while a decrease of 30% in WARR only, or a combination of an increase in 15% in WAFF and a decrease in 15% in WARR could lead to a downgrade of two notches. For series C of Sixteenth Mortgage-Backed Notes Trust, rating can be downgraded if the C notes is irrevocably impaired such that it is not expected to pay interest and/or principal in full in accordance with the terms of the obligation's documentation during the life of the transaction. This assessment would be consistent to a C category. DFC Guaranteed Notes: In the case of La Hipotecaria Panamanian Mortgage Trust 2014-1-A-1 Tranche and the La Hipotecaria Mortgage Trust 2019-1 notes, the rating assigned could be downgraded in the case of a downgrade on the U.S. sovereign rating. The La Hipotecaria Panamanian Mortgage Trust 2014-1 A-2 certificates' ratings are sensitive to changes in the credit quality of the Twelfth Mortgage-Backed Notes Trust Series A notes. If Twelfth Mortgage-Backed Notes Trust Series A notes are downgraded, that could lead to a downgrade of the certificates. The La Hipotecaria Mortgage Trust 2019-2 certificates' ratings are sensitive to changes in the credit quality of the Fourteenth Mortgage-Backed Notes Trust Series A notes. If Fourteenth Mortgage-Backed Notes Trust Series A notes are downgraded, that could lead to a downgrade on the certificates. The La Hipotecaria Panamanian Mortgage Trust 2021-1 certificates' ratings are sensitive to changes in the credit quality of the La Hipotecaria Sixteenth Mortgage Backed Notes Trust series A notes. If Sixteenth Mortgage-Backed Notes Trust Series A notes are upgraded, that could lead to an upgrade of the certificates. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade The ratings of the Series A Notes from Trust 12, Trust 14 and Trust 16 as well as Series B Notes from Trust 14 are sensitive to changes in the credit quality of Panama. For Trust 12, an upgrade of Panama's ratings could lead to an upgrade on the series A notes, while for series A notes from Trust 14 and 16, if CE becomes consistent to a higher rating level. The ratings of Trust 14 Series C Notes and Trust 16 Series B and C Notes could be upgraded in case of a future improvement of CE. DFC Guaranteed: In the case of La Hipotecaria Panamanian Mortgage Trust 2014-1-A-1 Tranche and the La Hipotecaria Mortgage Trust 2019-1 notes, the ratings could be downgraded in the case of an upgrade on the U.S. sovereign rating. The La Hipotecaria Panamanian Mortgage Trust 2014-1 A-2 certificates' ratings are sensitive to changes in the credit quality of the Twelfth Mortgage-Backed Notes Trust Series A notes. If Twelfth Mortgage-Backed Notes Trust Series A Notes are upgraded, that could lead to an upgrade of the certificates. The Hipotecaria Mortgage Trust 2019-2 certificates' ratings are sensitive to changes in the credit quality of the Trust 14 series A notes. If this series is upgraded, that could lead to an upgrade on the certificates. The La Hipotecaria Panamanian Mortgage Trust 2021-1 certificates' ratings are sensitive to changes in the credit quality of the Trust 16 Series A notes. If this series is upgraded, that could lead to an upgrade of the certificates. 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. PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS - The rating of the A-1 certificates issued by La Hipotecaria Panamanian Mortgage Trust 2014-1 is directly linked to the credit quality of the DFC and the rating of the A-2 certificates issued by La Hipotecaria Panamanian Mortgage Trust 2014-1 is directly linked to the rating of the Series A Notes issued by Trust 12. - The rating of the 2019-1 certificates issued by La Hipotecaria Trust 2019-1 is directly linked to the credit quality of the DFC. - The rating of the 2019-2 certificates issued by La Hipotecaria Trust 2019-2 is directly linked to the rating of the Series A Notes issued by Trust 14. - The rating of the 2021-1 certificates issued by La Hipotecaria Trust 2021-1 is directly linked to the rating of the Series A Notes issued by Trust 16. - The ratings of the A Notes from Trust 12, 14, 16 are capped by Panama's credit quality. ESG Considerations The Twelfth Mortgage-Backed Notes Trust has a Human Rights, Community Relations, Access & Affordability score of '4' [+] for its exposure to accessibility to affordable housing, which in combination with other factors, impacts the rating. The Fourteenth Mortgage-Backed Notes Trust has a Human Rights, Community Relations, Access & Affordability score of '4' [+] for its exposure to accessibility to affordable housing, which in combination with other factors, impacts the rating. The Sixteenth Mortgage-Backed Notes Trust has a Human Rights, Community Relations, Access & Affordability score of '4' [+] for its exposure to accessibility to affordable housing, which in combination with other factors, impacts the rating. 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. =============== P A R A G U A Y =============== PARAGUAY: IDB OKs $75MM Loan to Improve Rural Access to Services ---------------------------------------------------------------- The Inter-American Development Bank (IDB) has approved a $75 million multiple works loan to boost agricultural competitiveness and economic and social development in rural Paraguay by improving rural roads in the country's Eastern Region. The operation, which has been approved by the IDB's Board of Executive Directors, aims to expand vulnerable populations' access to services and productive markets, address local road infrastructure gaps, and make them more resilient by prioritizing positive social and economic impact. The IDB-financed program will improve approximately 123 kilometers of local roads through drainage, erosion control, slope protection, and other measures. It will also build new bridges, replace ones in critical condition, and maintain the improved roads for four years. The program will also implement road safety strategies to make the schools along the roads safer and easier for students to access. In addition, the program will finance an updated Transportation Infrastructure and Services Master Plan, which will build the sector's institutional planning capacities and optimize public spending. This program will benefit an estimated 170,000 people, including those who live and work in the areas served by the roads to be improved. Approximately 30 percent of this population lives in poverty. The stretches of road targeted by the project include Carayaó-Nicolás Bo, Cristo Rey-Carpacué, and Abaí-Tarumá-Tuna, in the departments of Caaguazú and Caazapá. The program will also build a 100-meter bridge over the Monday River in Colonia Pengó San Miguel in Alto Paraná, among others. The IDB has been a strategic partner for Paraguay as the country integrates its regions and expands access to markets and social services for its rural population. In the last decade, the IDB has supported several rural road and highway improvement programs, and this operation complements and builds on that progress. The IDB loan has a 22.5-year repayment term, an 8-year grace period, and an interest rate based on the Secured Overnight Financing Rate (SOFR). ===================== P U E R T O R I C O ===================== ANCHOR FUNDING: Seeks to Hire Alexis Fuentes-Hernandez as Counsel ----------------------------------------------------------------- Anchor Funding, Inc. seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Alexis Fuentes-Hernandez, Esq., an attorney practicing in San Juan, Puerto Rico, to handle its Chapter 11 case. The attorney will be paid at his hourly rate of $250, plus expenses. The attorney received a retainer of $5,000 from the Debtor. Mr. Hernandez disclosed in a court filing that he is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The attorney can be reached at: Alexis Fuentes-Hernandez, Esq. P.O. Box 9022726 San Juan PR 00902 Telephone: (787) 722-5215 Email: fuenteslaw@icloud.com About Anchor Funding Inc. Anchor Funding Inc. is a financial services firm engaged in credit intermediation activities. Anchor Funding Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 25-02813) on June 22, 2025. In its petition, the Debtor reports estimated assets between $1 million and $10 million and estimated liabilities between $500,000 and $1 million. The Debtor is represented by Alexis Fuentes-Hernandez, Esq. CONCORDE METRO: Seeks to Hire Christiansen Commercial as Realtor ---------------------------------------------------------------- Concorde Metro Seguros, LLC seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Christiansen Real Estate, Inc. d/b/a Christiansen Commercial as realtor. The firm will procure the sale of Debtor's commercial office condominium units located within the Metro Medical Center building at the Bayamon Municipality. The broker will receive a commission equal to five percent of property sold, and six percent of the sales price if the services of a cooperating broker are required. Christiansen Commercial is a "disinterested person", as defined in 11 U.S.C. Sec. 101(14), according to court filings. The broker can be reached through: Ryan G. Christiansen Christiansen Real Estate, Inc. d/b/a Christiansen Commercial P.O. Box 6894 San Juan, PR 00914-6894 Email: ryan@christiansencommercial.com About Concorde Metro Seguros Concorde Metro Seguros LLC is a single-asset real estate debtor, as defined in 11 U.S.C. Section 101(51B). The Company's primary business involves managing the Metro Medical Center in Bayamon, Puerto Rico, which serves as its principal asset. Concorde Metro Seguros LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 25-01269) on March 24, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Debtor is represented by Javier Vilarino, Esq. at Vilarino and Associates LLC. PUERTO RICO: Bond Suit Doesn't Belong In Conn., Insurers Say ------------------------------------------------------------ Aaron Keller at law360.com reports that the insurers of billions in bonds issued by the Puerto Rico Sales Tax Financing Corp. say a Connecticut federal judge can't hear a proposed class action accusing them of failing to pay bondholders the full value of their investments after a 2016 bankruptcy default. Puerto Rico is a self-governing commonwealth in association with the United States. The chief of state is the President of the United States of America. The head of government is an elected Governor. There are two legislative chambers: the House of Representatives, 51 seats, and the Senate, 27 seats. The governor-elect is Ricardo Antonio "Ricky" Rossello Nevares, the son of former governor Pedro Rossello. In 2016, the U.S. Congress passed PROMESA, which, among other things, created the Financial Oversight and Management Board and imposed an automatic stay on creditor lawsuits against the government, which expired May 1, 2017. The members of the oversight board are: (i) Andrew G. Biggs, (ii) Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J. Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii) David A. Skeel Jr. On May 3, 2017, the Commonwealth of Puerto Rico filed a petition for relief under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act ("PROMESA"). The case is pending in the United States District Court for the District of Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico's PROMESA petition is available at http://bankrupt.com/misc/1701578-00001.pdf On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation (COFINA) commenced a case under Title III of PROMESA (D.P.R. Case No. 17-01599). Joint administration has been sought for the Title III cases. On May 21, 2017, two more agencies -- Employees Retirement System of the Government of the Commonwealth of Puerto Rico and Puerto Rico Highways and Transportation Authority (Case Nos. 17-01685 and 17-01686) -- commenced Title III cases. U.S. Chief Justice John Roberts named U.S. District Judge Laura Taylor Swain to preside over the Title III cases. The Oversight Board has hired as advisors, Proskauer Rose LLP and O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq., at O'Neill & Borges LLC are onboard as attorneys. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains the case Web site https://cases.primeclerk.com/puertorico Jones Day is serving as counsel to certain ERS bondholders. Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General Obligation Bondholders. ********* 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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