250722.mbx

250722.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Tuesday, July 22, 2025, Vol. 26, No. 145 Headlines A R G E N T I N A ADECOAGRO S.A.: S&P Assigns 'BB' Rating to New Unsecured Notes ARGENTINA: June Inflation Data Hints at Stabilization ARGENTINA: Milei Government Confirms New 'Monotributo' Ceiling BLOCKFI INC: Administrator, DOJ Settle Crypto Assets Lawsuit B R A Z I L BRAZIL: GDP Growth has Been Remarkably Resilient, IMF Says MV24 CAPITAL: Fitch Affirms 'BB+' Rating on Senior Secured Notes D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Tariffs of More Than 10% Could Affect Exports M E X I C O FIDEICOMISO IRREVOCABLE: S&P Puts BB+ Notes Rating on Watch Neg. P U E R T O R I C O PUERTO RICO: Idles Power Plants as New Fortress Withholds Gas S U R I N A M E SURINAME: Minister Calls for Further Reduction in Subsidies - - - - - ================= A R G E N T I N A ================= ADECOAGRO S.A.: S&P Assigns 'BB' Rating to New Unsecured Notes -------------------------------------------------------------- S&P Global Ratings has assigned its 'BB' issue-level rating to Adecoagro S.A.'s (BB/Stable/--) proposed unsecured notes. The rating on the notes is at the same level as the issuer credit rating, reflecting the upstream guarantees from the subsidiaries, which generate about 88% of the company's EBITDA. Its operating subsidiaries in Brazil, Argentina, and Uruguay will fully and unconditionally guarantee the notes. Adecoagro will use the proceeds to repay certain outstanding debt, including the repurchase of the $415 million 2027 notes pursuant to the tender offer, and for general corporate purposes. We believe the new funds will help Adecoagro support its liquidity position by extending its debt maturity profile amid volatile ethanol and sugar prices. Still, supportive demand, the company's solid crushing volumes, which should reach 13 million tons in 2025, and stronger crop yields should enable Adecoagro to post EBITDA of $520 million - $540 million and leverage below 2.0x, along with a slight free operating cash flow deficit after leases. ARGENTINA: June Inflation Data Hints at Stabilization ----------------------------------------------------- AFP News reports that monthly inflation inched slightly higher in June but remained low, a boost to President Javier Milei's efforts to curb runaway prices. Consumer prices rose 1.6 percent in June, only slightly up on the previous month and hinting at a potential stabilization in the inflation rate, according to AFP News. June inflation came in at 1.6 percent, slightly up from May's 1.5 percent, which had been the lowest rate in five years, the INDEC national statistics bureau said, the report notes. That was below the expectations of both government and market analysts, which anticipated a figure close to two percent, the report relays. The annual rate came in at 39.4 percent -- down from 211 percent at the end of 2023 and 118 percent last year -- but still one of the highest in the world, the report discloses. President Javier Milei celebrated the figure immediately after its publication, hailing Economy Minister Luis Caputo's stewardship and attacking his critics on social media, the report says. "Vamos Toto," Milei posted on social media, referring to Caputo's nickname, the report notes. "Decent Argentines are celebrating while all of mandrilandia is crying," wrote the President, who likes to refer to his critics as "mandrils." Since taking office in December 2023, Milei has slashed public spending in a bid to impose fiscal discipline, balance the books and cut inflation, the report relays. The President boasts that his "chainsaw" austerity has forced the closure of tens of government agencies, eliminated some 50,000 government jobs and almost completely stopped public works projects, the report notes. Last year, Argentina recorded its first budget surplus in a decade thanks to austerity cuts, but the collateral damage was a loss of purchasing power, jobs and consumer spending, the report recalls. Inflation has come down dramatically, the report discloses. Consumer prices increased 15.1 percent in the first half of the year, the report says. Education Leads Hikes INDEC said June's price hikes were fueled by education costs, which climbed 3.7 percent, followed by housing, rent, water and electricity at 3.4 percent, the report notes. Alcoholic beverages and tobacco rose 2.8 percent in June, with recreation and culture up 2.5 percent, the report relays. At the other end of the scale, the lowest increases were recorded in food and non-alcoholic beverages at 0.6 percent and clothing and footwear, which rose 0.5 percent, the report says. Among the different pricing categories, regulated prices rose 2.2 percent, followed by core inflation at 1.7 percent, the report discloses. Seasonal prices actually fell by 0.2 percent, the report says. "The disinflation process that began in 2024 continues, with a six-month cumulative rise of 15.1 percent, compared to 79.8 percent during the same period last year," Argentina's Economy Ministry said in a statement obtained by the news agency. Caputo highlighted a number of details on a thread on social media, the report relays. "Core inflation was 1.7 percent, the lowest since May 2020. Excluding the exceptional months at the start of the pandemic, this is the lowest rate since January 2018," he wrote. "Goods prices rose just 0.8 percent month-on-month, the lowest increase since the current series began in January 2017," said the minister, the report notes. "The year-on-year increase in the national CPI [consumer price index] was 39.4 percent, marking 14 consecutive months of slowdown compared to the same month of the previous year. This is the lowest annual figure since January 2021," he wrote, the report discloses. Expectations AFP News discloses that national government officials and market analysts had anticipated a slight rise in inflation for the June data, forecasting a rate of between 1.8 percent and two percent. Speaking to the press, Caputo had stated: "We don't have a precise number for June, but we expect it to be below the 2.1 percent reported by the City of Buenos Aires. If we look at the weighting of goods and services, it's services that rose the most. Logically, our index should come in below two percent." Local consultancy firms had highlighted increased school fees, food and beverages and core inflation in reports, with most erring on two percent or slightly above, the report relays. Improving inflation numbers have done little to quell the anger of Argentines over a loss in purchasing power, with wages having remained stagnant despite years of price rises, the report notes. According to INDEC data, a typical family of four needed 1.128 million pesos in June to avoid falling below the poverty line, the report discloses. The bureau's Total Basic Basket (CBT) index rose 1.6 percent in the month, in line with inflation, and has increased 29.2 percent year-on-year, the report says. The Basic Food Basket (CBA), which measures the threshold for extreme poverty, rose 1.1 percent in June and 28.7 percent compared to June 2024, the report recalls. According to INDEC, in June a three-person household required 898,336 pesos to cover the CBT, and 402,841 pesos to meet the CBA threshold, the report says. In April, Argentina received US$12 billion as the first disbursement of an International Monetary Fund (IMF) loan worth US$20 billion, marking a strong vote of confidence in Milei's economic program, the report relays. When the loan deal was announced, the IMF said it was built on "the authorities' impressive early progress in stabilising the economy, underpinned by a strong fiscal anchor, that is delivering rapid disinflation and a recovery in activity and social indicators," it added. 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. ARGENTINA: Milei Government Confirms New 'Monotributo' Ceiling -------------------------------------------------------------- Buenos Aires Times reports that President Javier Milei's government has dramatically raised the ceiling for annual invoicing of the monotributo tax on the self-employed has moved up from 82 million to 95 million pesos. Presidential Press Undersecretary Javier Lanari disclosed that it "is the equivalent of US$74,500 a year." He said that "in December 2023", when the Milei government took office, "the ceiling was US$6,300," at least 12 times less, according to Buenos Aires Times. The announcement was made on the same day that the INDEC national statistics bureau confirmed a 15.1 percent inflation figure announced for the first half of the year, the report notes. Scales were modified while the levels of invoicing for the monotributo categories and the instalments were updated, the report relays. The June inflation figure also defined pension increases for August, the report notes. These changes are due to income tax deductions being updated every six months, according to the evolution of inflation in the month of January and July while the levels of invoicing, the rent accrued, the pension contributions and the tax sum of the monotributo are updated in the same way, the report discloses. The income tax floor - which indicates how much can be earned without being subject to that levy - now passes from a monthly 2.3 million to 2.6 million pesos for the gross salaries of single workers without children and from three million to almost 3.5 million pesos for those married with two children, the report says. The maximum deductions for taxable income have also been increased for certain expenses such as the pay of domestic help, the schooling of children and the rental of housing, the report relays. Such deductions must be registered in the Formulario F572Web via the Siradig Trabajador system, the report notes. Any income above the tax floor plus deductions is levied with progressive rates ranging from five to 35 percent and applied on net income, the report discloses. Monotributo is a simplified tax regime for small-scale self-employed workers and micro-entrepreneurs in Argentina, the report says. It combines income tax and social security contributions into a single monthly payment for low-earning freelancers, sole traders and small business owners, the report relays. In the case of workers classified as monotributo, the top category (A) would pass from invoicing up to 7,813,063 pesos monthly to nine million and from 82,370,281 pesos annually to 95 million pesos, the report notes. The monthly instalments would go up by around 15.1 percent. The category of 32,221 pesos would rise to around 37,000, the B category of 36,679 pesos would top 42,000 and so on through to the top category, the report relays. The new values would run from August to next January, the report discloses. Once ARCA tax bureau publishes the new tables, monotributista taxpayers may adjust their categories until August 5. "Nobody maintaining the same category need do anything nor those with less than six months activity," according to ARCA, the report relays. The periods to change category are every six months after evaluating the activity of the last 12 months, the report notes. If there were changes in income, rents, office space or energy consumed, the tax code should be entered for a change of category, the report relays. If that is not done, it is understood that there have been no changes and the category remains the same, the report discloses. If a taxpayer does not change their category or does so inexactly, ARCA may change the category "ex officio." That procedure is initiated when purchases, expenses or bank statements superior in value to the maximum annual gross earnings for that category are detected, the report says. ARCA has informed that "in the next few days the access to changes of category will be cleared following publication of the new consumer price figures with time until August 5 to revise your earnings over the last 12 months and complete the corresponding paperwork," 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. BLOCKFI INC: Administrator, DOJ Settle Crypto Assets Lawsuit ------------------------------------------------------------ Randi Love of Bloomberg Law reports that the administrator overseeing BlockFi Inc.'s wind-down has agreed to dismiss a lawsuit related to the planned transfer of more than $35 million in crypto assets to the federal government. The bankruptcy plan administrator and the Department of Justice jointly filed to end the case on July 11, 2025, and U.S. Bankruptcy Judge Michael B. Kaplan in New Jersey approved the dismissal the same day. Both sides agreed to cover their own legal fees, according to Bloomberg Law. The lawsuit was initially brought in May 2023 by a committee of unsecured creditors after the government claimed it had warrants to seize assets from BlockFi accounts, the report relays. About BlockFi Inc. BlockFi Inc. says it's building a bridge between digital assets and traditional financial and wealth management products to advance the overall digital asset ecosystem for individual and institutional investors. BlockFi was founded in 2017 by Zac Prince and Flori Marquez and in its early days had backing from influential Wall Street investors like Mike Novogratz and, later on, Valar Ventures, a Peter Thiel-backed venture fund as well as Winklevoss Capital, among others. BlockFi made waves in 2019 when it began providing interest-bearing accounts with returns paid in Bitcoin and Ether, with its program attracting millions of dollars in deposits right away. BlockFi grew during the pandemic years and had offices in New York, New Jersey, Singapore, Poland and Argentina. BlockFi worked with FTX US after it took an $80 million hit from the bad debt of crypto hedge fund Three Arrows Capital, which imploded after the TerraUSD stablecoin wipeout in May 2022. BlockFi had significant exposure to the companies founded by former FTX Chief Executive Officer Sam Bankman-Fried. BlockFi received a $400 million credit line from FTX US in an agreement that also gave FTX the option to acquire BlockFi through a bailout orchestrated by Bankman-Fried over the summer. BlockFi also had collateralized loans to Alameda Research, the trading firm co-founded by Bankman-Fried. BlockFi is the latest crypto firm to seek bankruptcy amid a prolonged slump in digital asset prices. Lenders Celsius Network LLC and Voyager Digital Holdings Inc. also filed for court protection this year. Kirkland & Ellis is also advising Celsius and Voyager in their separate Chapter 11 cases. BlockFi Inc. and eight affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Lead Case No. 22-19361) on Nov. 28, 2022. In the petitions signed by their chief executive officer, Zachary Prince, the Debtors reported $1 billion to $10 billion in both assets and liabilities. Judge Michael B. Kaplan oversees the cases. The Debtors tapped Kirkland & Ellis and Haynes and Boone, LLP, as general bankruptcy counsels; Walkers (Bermuda) Limited as special Bermuda counsel; Cole Schotz, P.C., as local counsel; Berkeley Research Group, LLC as financial advisor; Moelis & Company as investment banker; and Street Advisory Group, LLC, as strategic and communications advisor. Kroll Restructuring Administration, LLC, is the notice and claims agent. =========== B R A Z I L =========== BRAZIL: GDP Growth has Been Remarkably Resilient, IMF Says ---------------------------------------------------------- The International Monetary Fund issued a 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Brazil which states that: GDP growth in Brazil has been remarkably resilient over the past three years and, as expected, is showing signs of moderation. The expansion has reflected strong consumption supported by fiscal stimulus on the demand side, and supply-side factors. Inflation rebounded in 2024 amid strong demand, a rise in food prices, and currency depreciation. As inflation expectations rose above the target tolerance interval, monetary policy entered a new policy tightening cycle in September. Long-standing challenges remain, including elevated public debt and spending rigidities that crowd out priority investments. The authorities have made progress on reforms to foster sustainable and inclusive growth, including implementation of VAT reform. 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. MV24 CAPITAL: Fitch Affirms 'BB+' Rating on Senior Secured Notes ---------------------------------------------------------------- Fitch Ratings has affirmed MV24 Capital B.V.'s senior secured notes at 'BB+'. The Rating Outlook remains Stable and reflects the Outlook on the sovereign. Entity/Debt Rating Prior ----------- ------ ----- MV24 Capital B.V. Senior Secured Notes 55388RAA4 LT BB+ Affirmed BB+ The affirmation is based on Fitch's view that the partners have a strong incentive to meet their obligations under the concession agreement. The operating environment in Brazil continues to limit the uplift from the sovereign's Issuer Default Rating (IDR) of 'BB'/Stable. According to Fitch's Structured Finance Country Risk Criteria, Brazilian issuers can be rated up to three notches above the sovereign LC IDR. However, Fitch has reduced the uplift to two notches due to Petrobras' status as a state-owned enterprise and its potentially higher exposure to political interference. The uplift is further constrained to one notch due to transaction performance metrics and debt service coverage ratios (DSCRs), which were lower than Fitch expected since closing. Transaction Summary The senior secured notes issued by MV24 Capital B.V. are backed by the flows related to the charter agreement initially signed with Tupi B.V. for the use of the FPSO Cidade de Mangaratiba MV24 for a term of 20 years. The BM-S-11 consortium is comprised of Petrobras, with a 65% share, and Shell Brasil (a wholly owned subsidiary of Royal Dutch Shell plc) with a 25% share, and Petrogral Brazil S.A. (a joint venture [JV] between Galp Energia and Sinopec) with a 10% share. The vessel is operated by Modec do Brasil Ltda., the Brazilian subsidiary of Modec, Inc., through a services agreement. Modec is one of four Japanese sponsors of the project, together with Mitsui & Co., Mitsui OSK Lines and Marubeni. The MV24 FPSO began operating at the Lula/Tupi oil field in October of 2014. Fitch's rating addresses the timely payment of interest and principal on a semiannual basis until the legal final maturity in June 2034. KEY RATING DRIVERS CONSORTIUM OBLIGATION STRENGTH EXCEEDS PETROBRAS' The offtaking consortium is backed by Petrobras (65% share), the Shell subsidiary Shell Brasil Petróleo Ltda (25%) and the Galp/Sinopec joint venture (10%). The offtakers' obligations related to the 20-year charter and joint operating agreements are several, but not joint, as each party guarantees that it will make its portion of the payment. However, Fitch views these payments as joint and several as the underlying concession states that each party must support all the obligations related to ongoing production. Fitch expects the payments to continue given the high economic incentives to maintain the concession. Therefore, the rating of the lowest-rated member, Petrobras (BB/Stable), does not strictly limit the notes' rating. OPERATOR CREDIT QUALITY Modec Brasil provides underlying support to the transaction, and its credit quality is in line with investment-grade metrics. In addition to the complexities involved with replacement of the operator, Modec supports the services agreement and overall operating costs. Average availability since commercial operations began is approximately 95%, marginally below industry standards. Availability decreased in 2023 due to unscheduled shutdowns associated with vapor recovery unit repairs. As of July 17, 2024, all unscheduled repairs were completed, and the FPSO unit is now operating normally, demonstrating high uptime and stable performance. Operational expenses have remained relatively stable and will be capped for the life of the transaction. Opex in excess of the cap is guaranteed by MV24, and certain expenditures are ultimately guaranteed by Modec through the O&M support agreement. FINANCIAL METRICS The key leverage metric for fully amortizing FPSO transactions is the debt service coverage ratio (DSCR). The transaction's leverage constrains it to the 'BB' rating level. Fitch expects base case DSCRs to be in the range of 1.19x-1.22x with a 10-maintenance day annual average assumption, which would constrain the rating to the 'BB' category. The charter rates are fixed with escalators for inflation, and operating expenses are capped with any overage guaranteed by Modec. Therefore, DSCR levels indicate a sufficient buffer to mitigate downtime risks associated with operations. With the completion of repairs in July 2024 and stable performance thereafter, the 6-month and 12-month DSCRs improved and remain sufficient to support a 'BB' category rating. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The transaction rating is linked to Brazil's IDR and transaction performance, with an uplift of one notch over Brazil's IDR. Therefore, a multi-notch sovereign downgrade or further DSCR deterioration may trigger a downgrade of the notes. Both ratings have a Stable Outlook. For offtakers, Fitch could assign a rating in excess of Petrobras' by two notches, and this remains possible as long as the other offtakers continue to be rated higher than the notes. Given the current ratings of the other offtakers and the transaction currently being limited due to transaction performance and DSCR levels, this is unlikely. The other counterparty that could constrain the rating is the operator, MODEC, which Fitch considers to be of better credit quality than the senior notes. Fitch's cash flow analysis resulted in an output consistent with ratings in the 'BB' category. DSCRs and ultimate debt repayment depend on uptime, maintenance days, opex and CPI. Poor performance among these variables could negatively pressure the ratings. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade The rating is constrained by leverage, DSCRs, operating environment and counterparty ratings. Sustained improved transaction performance and subsequent improved uptime and DSCR metrics may support an upgrade after taking into account any changes in the operating environment and counterparty ratings. 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. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Tariffs of More Than 10% Could Affect Exports ----------------------------------------------------------------- Dominican Today reports that the imposition of tariffs above 10% by the United States, as anticipated by President Donald Trump, would directly affect the competitiveness of Dominican exports to the United States and jeopardize the preferential access that has been built and defended for more than two decades, stated the Dominican Exporters Association (Adoexpo). "As an entity representing the national export sector, we are aware of the impact of potentially imposing general tariffs above 10% on countries like the Dominican Republic," he said, notes the report. According to Roselyn Amaro, executive vice president of Adoexpo, the sector is confident that the necessary steps the government is taking will ensure the country is not included in any measures that restrict access to the U.S. market, according to Dominican Today. "We reiterate our commitment to continue collaborating with the authorities and the private sector to ensure that the Dominican Republic maintains its position as a trusted partner of the United States and is not displaced by countries with more favorable conditions, thus preserving its participation in global value chains," she noted, the report relates. Adoexpo stated that there is currently a climate of global uncertainty surrounding the S. trade policy due to significant challenges, leaving the final direction and specific objectives pursued by this new strategy unclear, the report says. However, it was noted that the United States has consistently stated that one of its main goals is to reduce its trade deficit in goods, the report discloses. From that perspective, the Dominican Republic is in a favorable position, having historically maintained a surplus for the United States, the report says. It was further noted that the country is among the ten trading partners with which the United States registers the most enormous surpluses in absolute terms, the report notes. Adoexpo noted that another U.S. objective is to expand access for its products to third-party markets, the report relays. In that regard, through DR-CAFTA, the Dominican Republic has already granted free access to all U.S. goods, making the United States the country with the best market access in the world, the report adds. About Dominican Republic The Dominican Republic is a Caribbean nation that shares the island of Hispaniola with Haiti to the west. Capital city Santo Domingo has Spanish landmarks like the Gothic Catedral Primada de America dating back 5 centuries in its Zona Colonial district. Luis Rodolfo Abinader Corona is the current president of the nation. TCR-LA reported in April 2019 that Juan Del Rosario of the UASD Economic Faculty cited a current economic slowdown for the Dominican Republic and cautioned that if the trend continues, growth would reach only 4% by 2023. Mr. Del Rosario said that if that happens, "we'll face difficulties in meeting international commitments." An ongoing concern in the Dominican Republic is the inability of participants in the electricity sector to establish financial viability for the system. Standard & Poor's credit rating for Dominican Republic was raised to 'BB' in December 2022 with stable outlook. Moody's credit rating for Dominican Republic was last set at Ba3 in August 2023 with the outlook changed to positive. Fitch, in December 2023, affirmed the Dominican Republic's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-' and revised the outlook to positive. =========== M E X I C O =========== FIDEICOMISO IRREVOCABLE: S&P Puts BB+ Notes Rating on Watch Neg. ---------------------------------------------------------------- S&P Global Ratings placed its long-term global and national scale ratings on Fideicomiso Irrevocable y Traslativo de Dominio Numero 2400's (aka GICSA - Bursatilizaciones De Arrendamientos Comerciales) class A-1 and A-2 notes on CreditWatch with negative implications. The notes are backed by a first-lien perfected security interest in a portfolio of nine properties developed by Grupo GICSA S.A.B. de C.V. (GICSA; 'mxB/Negative') and managed by its subsidiary, Desarrolladora 2054 S.A.P.I. de C.V. (not rated). The properties are located in Mexico and have a combined gross leasable area of retail, office, and mixed-use space. The rating actions follow a similar rating action taken on GICSA, which was lowered to 'mxCC', after the company announced its intent to restructure its senior unsecured debt. S&P said, "We placed our ratings on the notes on CreditWatch with negative implications to reflect our view that our operational risk assessment could be negatively affected if the debt restructure results in a deterioration of our view of GICSA's creditworthiness, which could lead us to modify our disruption risk assessment, automatically imposing a cap on the notes. "The securitized portfolio has performed in line with our expectations. According to the servicer's report, as of March 2025, the portfolio presented a vacancy rate of 7.6%, which is lower than the 8.8% considered in our last rating action in December 2024 and still below our current assumption of 12.6%. "On the other hand, reported net operating income, as of March 2025, was MXN429.08 million, higher than last year's MXN408.7 million and also in line with our current assumptions." CreditWatch Placement S&P said, "We expect to resolve the CreditWatch placement on the notes within the next 90 days once we have updated our view on GICSA's creditworthiness. We may downgrade the global scale and national scale ratings by one notch if there is a weakening of GICSA's creditworthiness and this affects our disruption risk assessment for the deal, in which case we could impose a rating cap on the notes at 'BB (sf)' per our operational risk criteria; otherwise, we may affirm the ratings." Ratings Placed On CreditWatch Negative Fideicomiso Irrevocable y Traslativo de Dominio Numero 2400 Class Senior A-1 MXN: to 'BB+ (sf)/Watch Neg' from 'BB+ (sf)' Class Senior A-1 MXN: to 'mxAA-(sf)/Watch Neg' from 'mxAA- (sf)' Class Senior A-1 USD: to 'BB+ (sf)/Watch Neg' from 'BB+ (sf)' Class Senior A-1 USD: to 'mxAA-(sf)/Watch Neg' from 'mxAA- (sf)' Class Senior A-2 MXN: to 'BB+ (sf)/Watch Neg' from 'BB+ (sf)' Class Senior A-2 MXN: to 'mxA+(sf)/Watch Neg' from 'mxA+ (sf)' MXN-- Mexican pesos. USD--U.S. dollars. ===================== P U E R T O R I C O ===================== PUERTO RICO: Idles Power Plants as New Fortress Withholds Gas ------------------------------------------------------------- Jim Wyss and Ruth Liao of Bloomberg News report that New Fortress Energy Inc., the financially troubled firm founded by billionaire Wes Edens, is withholding a liquefied natural gas shipment to Puerto Rico due to a payment dispute, prompting the island to shut down several power plants. The company claims Puerto Rico owes millions for previous fuel deliveries, but energy chief Josue Colon disputes the allegation, saying his office has no record of outstanding payments. The standoff is putting additional strain on the island's power grid just as energy demand spikes during peak summer heat, note the report. About Puerto Rico 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 R I N A M E =============== SURINAME: Minister Calls for Further Reduction in Subsidies ----------------------------------------------------------- RJR News reports that Suriname's outgoing finance and planning minister Stanley Raghoebarsing is calling for a further reduction in subsidies, warning that expenditures are spiralling out of control. Subsidies and transfers are already higher than budgeted for this year, according to RJR News. He told a news conference that if subsidies do not decrease, it will put pressure on government finances, the report notes. He added that while subsidies have been reduced significantly during this term of office, they should have been reduced even further, the report adds. As reported in the Troubled Company Reporter-Latin America on Dec. 16, 2024, S&P Global Ratings affirmed its long- and short-term foreign and local currency sovereign credit ratings on Suriname at 'CCC+/C'. S&P also affirmed its transfer and convertibility assessment of 'CCC+'. The outlook on the long-term ratings is stable. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2025. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *