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250801.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, August 1, 2025, Vol. 26, No. 153 Headlines A R G E N T I N A ARGENTINA: Banks Face Liquidity Crunch as Peso Yields Soar ARGENTINA: Empty Shops Up 40% in Capital Amid Consumption Woes B E R M U D A STATIONERY STORE: To Close After 50 Years B R A Z I L BRAVA ENERGIA: Fitch Affirms 'BB-' Long-Term IDR, Outlook Stable BRAZIL: Fitch Affirms Ratings on Corporates in JVs w/ Fin'l Groups BRAZIL: IDB OKs 1B for Reforms to Enhance Business Environment MV24 CAPITAL: S&P Affirms 'BB+' Notes Rating, Alters Outlook to Neg D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Urges Immediate Halt to Rice Imports E C U A D O R CUENCA DPR: Fitch Assigns B- Rating to 2025-1 Loans, Outlook Stable J A M A I C A JAMAICA: BOJ Reports Strong Financial Performance for 1H of 2025 NCB FIN'L: Pledges its Shares in Guardian Holdings as Collateral [] JAMAICA: BSJ Issues Over 50 New Quality Standards for MSMEs [] JAMAICA: IDB Praises Innovation & Growth Program for MSMEs P U E R T O R I C O PUERTO RICO: Stops $20 Billion LNG Deal Talks with New Fortress - - - - - ================= A R G E N T I N A ================= ARGENTINA: Banks Face Liquidity Crunch as Peso Yields Soar ---------------------------------------------------------- Buenos Aires Times reports that interest rates on Argentine peso notes are soaring across the board, piling pressure on banks amid a liquidity crunch caused by government efforts to defend the local currency. The one-day peso repo rate surged on average to 65 percent on Tuesday, July 22 -- the highest since May 2024 -- after briefly touching triple digits during the final hour of intraday trading, according to Buenos Aires Times. At the same time, the yield on short-term Treasury notes known as Lecaps reached 59.5 percent, its highest level since October 2024, when inflation was running at 193 percent, almost five times the current rate, the report notes. "The Treasury left very few pesos in the market, and several banks -- especially smaller ones -- ran out of liquidity and had to scramble for cash, offering higher rates on interest-bearing accounts, selling Lecaps, or borrowing via repos and bank calls at steep rates," said Emiliano Merenda, chief executive officer of local broker Pharos Capital, the report relays. The Central Bank has tightened monetary policy and the government has introduced mechanisms to absorb pesos to stabilise the currency amid a seasonal decline in exports and investor concerns over congressional elections in October, the report discloses. The country's monetary authorities have been selling Lecaps and raising reserve requirements for money market funds, the report says. While the strategy may attract carry trade flows, it has drained liquidity – forcing many banks to turn to the repo market at sky-high rates, the report notes. "Liquidity dried up and right now there's no lender of last resort," said Belisario Álvarez de Toledo, head trader and partner at True Grit Capital in Buenos Aires, notes the report. "No-one is stepping in to provide liquidity." The National Bank Association and the Central Bank declined to comment, while the Foreign Bank Association didn't immediately respond to questions. The measures have brought some respite for the peso, which is trading at about 1,273 to the dollar, strengthening from an intraday low of 1,293, the report relays. The peso squeeze has been worsened by month-end dynamics, when banks must meet reserve requirements and have less flexibility in managing short-term cash, the report discloses. "This is going to affect banks' solvency, especially the smaller ones, because funding costs have soared," Merenda said. Just two weeks ago, they were borrowing below 30 percent, the report relays. Now they've had to pay 55 percent, the report notes. Some analysts also warned that tight monetary policy will make it harder for the central bank to boost foreign currency reserves in line with its International Monetary Fund agreement, the report relays. To avoid printing pesos, the government has been reluctant to buy dollars, missing its end-June reserve target and requiring a waiver from the IMF, the report discloses. Now, with the exchange rate under pressure and local liquidity tight, the Treasury is buying dollars – but at a relatively high exchange rate as the peso has depreciated in recent months, the report relays. In response, many investors are steering clear of peso assets altogether, the report notes. Even with high returns, the volatility and policy uncertainty are leading funds and savers to borrow pesos instead -- using them to dollarise portfolios rather than hold on to local instruments, the report discloses. It's a sign of falling demand for local currency that outweighs the government's efforts to restrict money supply, and signals a rough road ahead for Argentina's financial system in a high-stakes election season, the report says. The spike in funding costs can't last much longer without seriously threatening banks' solvency, said Álvarez de Toledo, the report notes. "Argentine banks rely heavily on very short-term funding, so a sharp rise in short-term interest rates puts their profit margins under severe pressure," he said. "This needs to be resolved – the system simply can't function without liquidity," he 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. Moody's Ratings on July 17, 2025, upgraded Argentina's long-term foreign currency and local currency issuer ratings to Caa1 from Caa3 and changed the outlook to stable from positive. The upgrade reflects Moody's views that the extensive liberalization of exchange and (to a lesser extent) capital controls, alongside a new International Monetary Fund (IMF) program, support the availability of hard currency liquidity and ease pressure on external finances. This reduces the likelihood of a credit event. In January 2025, Moody's raised Argentina's local currency ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1 from Caa3. Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. 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+'. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. ARGENTINA: Empty Shops Up 40% in Capital Amid Consumption Woes -------------------------------------------------------------- Buenos Aires Times reports that ongoing consumption woes are taking their toll on retailers in the capital, a new survey shows. According to a report carried out by the Argentine Chamber of Commerce (Cámara Argentina de Comercio y Servicios, CAC), the number of empty shops in May and June in the main commercial areas of Buenos Aires City increased 40 percent when compared with the same two months last year, the report notes. A total of 238 shops for sale, for rent or closed down were detected in the surveyed areas. When measured against the previous two months when there were 2012 empty shops, an increase of 12.3 percent was verified, according to Buenos Aires Times. Analyzing exclusively the shops offered for sale or rent, the latter were 4.3 percent down when compared to the previous period (March-April) while increasing 18.9 percent as against May and June last year, the report relays. As for shops for sale, there was no change from the previous two months but an increase of 37.5 percent by comparison with May and June last year, the report discloses. The Chamber of Commerce survey includes the city's main shopping arteries, he report relays. Losses over the last two months were registered in Av. Cordoba (4000-5300), Av. Rivadavia (2000-2800, 4900-5400; 6300-7400; 11000-11600) and the Florida pedestrian precinct while there were advances in the same period in the avenues Cabildo (4800-5500), Corrientes (200-6800), Santa Fe (700-5300), Avellaneda (2800-3800) and Pueyrredón (0-1200), the report discloses. La Plata Data from the FEMAPE (Federacion de Mayoristas y Proveedores del Estado de la Provincia de Buenos Aires) grouping wholesalers and retailers supplying the Buenos Aires Province government points to a similar shift in the provincial capital, the report says. Last May and June, in comparison with the same months surveyed last year, the number of inactive shops -- whether sold, rented out or simply closed down -- in the main shopping areas of La Plata grew by 50 percent, while up 100 percent from the previous two months (last March and April), the report relays. During last May and June a total of 18 shops without commercial activity in the surveyed areas were detected, 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. Moody's Ratings on July 17, 2025, upgraded Argentina's long-term foreign currency and local currency issuer ratings to Caa1 from Caa3 and changed the outlook to stable from positive. The upgrade reflects Moody's views that the extensive liberalization of exchange and (to a lesser extent) capital controls, alongside a new International Monetary Fund (IMF) program, support the availability of hard currency liquidity and ease pressure on external finances. This reduces the likelihood of a credit event. In January 2025, Moody's raised Argentina's local currency ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1 from Caa3. Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. 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+'. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. ============= B E R M U D A ============= STATIONERY STORE: To Close After 50 Years ----------------------------------------- The Royal Gazette reports that after more than half a century serving the island, The Stationery Store has announced it will close its doors for good in September. The store, a longtime fixture for school supplies, crafts and educational toys, cited a range of challenges including online shopping, changing customer habits and rising costs, according to The Royal Gazette. "It is with mixed emotions that we announce that the Stationery Store will close in early September," read a statement from parent company Bermuda Press (Holdings) Ltd, the report relays. "After serving our community for over 50 years, the time has come for us to turn the final page of this incredible chapter," it added. While the store saw a boost in business during and after the pandemic, sales have since declined, the report relays. The team pointed to residents resuming travel and shopping overseas, increased online options, and a drop in Bermuda's youth population as key factors, the report says. The Stationery Store Plus, the expansion project of The Stationery Store, closed in April, the report notes. Jonathan Howes, the chief executive of Bermuda Press (Holdings) Ltd, said: "Closing a business is never easy. A lot of effort has been made to enhance the product offering and marketing over the past five years. "Unfortunately, competing with overseas companies like Amazon, local residents purchasing overseas when travelling, combined with increasing shipping costs, supply-chain logistics and overall operating costs, for a small retail operation in Bermuda became insurmountable. "I would like to thank all of our loyal customers for the many years of support. It would also be remiss if we did not acknowledge the staff and management who worked very hard to try and make the business profitable." The store will remain open through the busy back-to-school season, offering clearance discounts and special offers, the report relays. "We are grateful for the support the store received over the years," the statement added, "and we hope everyone stops by to take advantage of these savings." Office Solutions, which provides sales and support for Canon and Sharp equipment, will not be affected by the closure, the report discloses. =========== B R A Z I L =========== BRAVA ENERGIA: Fitch Affirms 'BB-' Long-Term IDR, Outlook Stable ---------------------------------------------------------------- Fitch Ratings has affirmed Brava Energia S.A.'s (Brava) 'BB-' Long-Term Local and Foreign Currency Issuer Default Ratings (IDRs) and its 'AA-(bra)' Long-Term National Scale Rating. Fitch has also affirmed the 'BB-' rating of 3R Lux S.à.r.l's (3R Lux) USD500 million notes due 2031. The Rating Outlook for the corporate ratings is Stable. Brava's ratings reflect its limited scale and modest, although improving, operating efficiency, along with its well-diversified asset base spread across several basins in Brazil. Fitch expects the company to quickly deleverage in 2025 following the ramp-up in production from the Atlanta oil field, higher efficiency from the Papa Terra field and increasing production with lower capex intensity in onshore fields, as well as conservative dividend distribution. Fitch expects Brava to maintain a strong liquidity position with a lengthened debt maturity profile and generate structurally positive FCF. Key Rating Drivers Limited Scale: Fitch projects that Brava's production will reach 90 kboe/d in 2025 and increase to 120 kboe/d by 2029, which remains below the upgrade sensitivity threshold of 125 kboe/d. Tertiary recovery techniques in onshore Potiguar and the offshore drilling campaign will be the main growth drivers, as well as Papa Terra's greater efficiency. Projections consider annual growth of around 8% for onshore and 5% for offshore over the 2025-2029 period. Brava's 1P reserves (511 million boe) are already consistent with a 'BB' rating. 1P reserve life should remain above 10 years over the projection horizon and gas should represent less than 10% of production by 2028, from 21% in 2024. Significant Deleverage: The ramp-up in offshore production, the reduction of onshore capex and the partial sale of midstream gas assets will accelerate the reduction of Brava's leverage, which was pressured by offshore production volatility and currency devaluation. EBITDA net leverage should decline to 1.7x in 2025-2026 from 3.6x in March 2025. Debt/1P reserves should decrease to USD5.5/boe in 2025-2026 from USD6.6/boe in March 2025. These ratios incorporate derivatives and M&A payables into debt and exclude cash collateral from it. Net leverage could further decline by 0.2x if Brava fully anticipates receivables of BRL2.4 billion from the asset sale. Improving Cost Profile: Higher production should drive lifting costs down to USD18/boe in 2025, from USD20/boe in 1Q25, gradually declining toward USD13/boe by 2029. Offshore lifting costs will likely remain above those of onshore assets until 2028, averaging USD18/boe for offshore and USD16/boe for onshore over the 2025-2027 period. Atlanta will be the most efficient asset, with EBITDA close to USD50/boe over the same period, while Papa Terra will remain the least efficient, with EBITDA close to USD25/boe. For the entire portfolio, Fitch projects average USD38/boe in the period, up from USD26/boe in 2024, with half-cycle costs remaining above USD20/boe. CFO to Cover Capex: Brava's cash flow from operations (CFO) will exceed capex, especially from 2027 onward, when the former increases and the latter declines. EBITDA should increase to around BRL6.7 billion in 2025-2026 and BRL8.4 billion in 2027-2028, from BRL2.9 billion in 2024. 60% of EBITDA should convert into CFO, considering efficiencies on tax payments and tax credits to be monetized. Capex should be around BRL3.4 billion in 2025-2026 and below BRL2.5 billion in 2027-2028, more concentrated in offshore. FCF should turn consistently positive as of 2027, assuming a 25% dividend payout. Higher payout would require net leverage to be below 1.5x as of 2026. Resilience to Price Volatility: In a scenario of sharp price declines, Brava could further reduce capex, especially onshore where chartering is more flexible. Despite the impact on production and lifting costs, CFO would be sufficient to cover the adjusted capex under Brent prices above USD55/barrel in 2025 and above USD30/barrel in 2026-2028. Currently, Brava does not export to the U.S. so it is not exposed to potential tariff hikes. Peer Analysis Brava has lower scale and is more leveraged than North American onshore, oil-weighted producers Matador Resources Company (Matador) and SM Energy Company, L.P. (SM Energy), both rated BB/Stable. The same is true for Brazilian offshore producer PRIO S.A. (PRIO; BB/Rating Watch Positive). These factors currently offset the broader diversification of Brava's asset base. Matador and SM produce around 200 kboe/d and PRIO is expected to reach this level in 2026, with the Peregrino and Wahoo oil fields. This is more than double the current scale of Brava. The latter benefits from a long 1P reserve life, estimated around 14 years over 2025-2027 on average, which is in line with PRIO and above the nine- to 11-year range for the other peers. For each boe produced, Fitch estimates Brava will generate around USD26 of CFO over 2025-2027, below PRIO and Matador (close to USD28/boe) and above SM Energy (USD23/boe). The company's American peers benefit from lower royalties, producing costs and interest costs compared to Brava, but they sell at significantly lower prices. This reflects the WTI discount over Brent and the higher share of gas in the revenues of these peers, as well as their trading efficiencies. Fitch projects EBITDA net leverage of 1.7x for Brava in 2025 and 2026 and around 1.3x for its American peers in the same period. Projection for PRIO is higher in 2025, at 2.9x, pressured by the second Peregrino acquisition, but the ratio should decline to 1.4x in 2026 following the surge in production. Key Assumptions - Average Brent prices from 2025 to 2028 (USD/bbl): 70, 65, 65 and 60; - Average daily production from 2025 to 2028 (kboe/d): 89, 93, 112 and 115; - Oil sales consider a discount to Brent around USD4/bbl; - 100% effective working interest in Papa Terra, with no payment arising from the arbitration; - Lifting costs from 2025 to 2028 (USD/boe): 18, 17, 16 and 14; - Annual capex averaging BRL3.1 billion in 2025-2027; - Effective tax rate around 22%; - Dividend payout ratio of 25%. RATING SENSITIVITIES Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Debt/EBITDA and net debt/EBITDA ratios above 3.5x and 2.5x, respectively; - Weakening of the liquidity profile; - Major operational disruptions at key assets, resulting in a significant reduction in production. Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Increasing production to more than 125 kboe/d while maintaining 1P reserve life of at least seven years; - Reducing half-cycle costs to below USD20/boe on a sustained basis. Liquidity and Debt Structure Brava maintains sound liquidity and strong access to long-term funding. The company's ninth issuance of debentures, up to BRL3.0 billion, will further strengthen the liquidity profile by extending the debt repayment schedule and reducing the average cost of debt. The issuance will have a five-year term with a two-year grace period. As of March 2025, Brava had BRL4.7 billion in cash and BRL1.6 billion of short-term debt. Pro forma for the ninth issuance and the expected prepayments, the cash balance is sufficient to cover all principal payments through 2027. The BRL16.7 billion debt was mainly composed of debentures (66% including derivatives), secured notes due 2031 (17%), and M&A payables due to Petrobras (11%). Around 90% of Brava's debt is denominated or indexed to USD, at an annual average spread of 8.6%. If necessary, Fitch expects that the company would be able to advance receivables from Atlanta's floating production, storage and offloading (FPSO) vessel sale of BRL2.4 billion or sell and leaseback Papa Terra's FPSO vessel. Issuer Profile Brava is an independent, well-diversified oil and gas producer focused on revitalizing mature fields both onshore and offshore in Brazil. It has no controlling shareholder. 3R Lux is a funding vehicle domiciled in Luxembourg and is wholly owned by Brava. Summary of Financial Adjustments Obligations related to acquisitions were incorporated into the debt. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- 3R Lux S.a.r.l. senior secured LT BB- Affirmed BB- Brava Energia S.A. LT IDR BB- Affirmed BB- LC LT IDR BB- Affirmed BB- Natl LT AA-(bra) Affirmed AA-(bra) BRAZIL: Fitch Affirms Ratings on Corporates in JVs w/ Fin'l Groups ------------------------------------------------------------------ Fitch Ratings has affirmed the ratings of Brazilian corporates after revising the assessment of joint ventures (JVs) with financial institutions that hold preferred stock in strategic subsidiaries. The approach follows Fitch's new "Corporate Rating Criteria," effective June 2025. Fitch also maintained the Positive Rating Watch of Equatorial Transmissao S.A. Key Rating Drivers Debt Treatment: Corporates are more likely to repurchase the preferred stock that has been sold to financial sponsors (FS) as a funding strategy. Fitch's assessment incorporates corporates' strategic incentives to repurchase and assumes that JV equity will usually perform above the interest accrual that defines the strike price of the corporates' call options. Economic incentives are further strengthened by significant imbalances in dividend distribution in favor of the FS. These factors are commensurate with debt treatment. No Impact on Ratings: Transactions that were treated as 50/50 debt/equity are now treated as 100% debt with no significant pressure on credit metrics among Brazilian corporates. Cosan (BB/Stable) was the most impacted, with EBITDA net leverage increasing by 0.5x. The ratio should approach the downgrade sensitivity of 4.0x by the end of 2025 and lower dividends from Raizen in 2026 will add some pressure, although Fitch considers that to be manageable. For Energisa (BB+/Stable), Fitch estimates net leverage around 3.6x in 2025-2026, just slightly above its sensitivity of 3.5x, pressured by robust investments. Common Structure: The agreements between the rated Brazilian corporates and financial sponsors have long tenures and follow a similar structure. The FS hold minority stakes in strategic, low-leveraged subsidiaries and receive a larger portion of the dividends. Corporates have call options, while FS have contingent put options that are only exercisable under predetermined situations, not related to the JV's performance. The call and the contingent put options usually have the same strike price, defined by a fixed income and amortized by the JV's distributions. Variable Returns: The agreements do not establish minimum returns, and the JV may defer or even omit dividends to the FS, usually with no punitive effects. Some operations may impose consequences such as a wider imbalance on equity stakes or step-ups in the exercise price of the call options, with no cross-default or mandatory conversion. RATING SENSITIVITIES Rating sensitivities are not applicable. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations Fitch does not provide ESG relevance scores for AES Tucano Holding II S.A.,Aegea Finance S.a r.l.,Aegea Saneamento e Participacoes S.A.,Aguas Guariroba S.A.,Aguas de Teresina Saneamento SPE S.A.,Alsol Energias Renovaveis,Auren Energia S.A.,Auren Participacoes S.A.,Barreiras Holding S.A.,CESP - Companhia Energetica de Sao Paulo,Companhia Riograndense de Saneamento Corsan,Cosan Luxembourg S.A.,Cosan Overseas Limited,Cosan S.A.,Echoenergia Participacoes S.A.,Energisa Acre - Distribuidora de Energia S.A.,Energisa Mato Grosso - Distribuidora de Energia S.A.,Energisa Mato Grosso do Sul - Distribuidora de Energia S.A.,Energisa Minas Rio - Distribuidora de Energia S.A.,Energisa Paraiba - Distribuidora de Energia S/A,Energisa Rondonia Distribuidora de Energia S.A.,Energisa S.A.,Energisa Sergipe - Distribuidora de Energia S/A,Energisa Sul Sudeste - Distribuidora de Energia S/A,Energisa Tocantins - Distribuidora de Energia S/A,Energisa Transmissao de Energia S.A.,Eneva S.A.,Engie Brasil Energia S.A.,Equatorial Goias Distribuidora de Energia S.A,Equatorial Para Distribuidora de Energia S.A.,Equatorial Transmissao S.A.,Potengi Holdings S.A.,Prolagos S.A. - Concessionaria de Servicos Publicos de Agua e Esgoto,Ribeiro Goncalves Energia Solar SPE S.A.,Veleiros Holdings S.A.,Ventos de Santa Tereza 07 Energias Renovaveis S.A.. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. Entity/Debt Rating Prior ----------- ------ ----- Aegea Saneamento e Participacoes S.A. LT IDR BB Affirmed BB LC LT IDR BB Affirmed BB Natl LT AA(bra) Affirmed AA(bra) senior unsecured Natl LT AA(bra) Affirmed AA(bra) Energisa Mato Grosso – Distribuidora de Energia S.A. Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) Energisa Sergipe - Distribuidora de Energia S/A LT IDR BB+ Affirmed BB+ LC LT IDR BB+ Affirmed BB+ Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) Aguas de Teresina Saneamento SPE S.A. Natl LT AA(bra) Affirmed AA(bra) senior unsecured Natl LT AA(bra) Affirmed AA(bra) Energisa Mato Grosso do Sul – Distribuidora de Energia S.A. Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) Equatorial Transmissao S.A. Natl LT AA+(bra) Rating Watch Maintained AA+(bra) senior unsecured Natl LT AA+(bra) Rating Watch Maintained AA+(bra) Ribeiro Goncalves Energia Solar SPE S.A. Natl LT AA+(bra) Affirmed AA+(bra) senior secured Natl LT AA+(bra) Affirmed AA+(bra) Equatorial Goias Distribuidora de Energia S.A Natl LT AA+(bra) Affirmed AA+(bra) Aegea Finance S.a r.l. senior unsecured LT BB Affirmed BB Alsol Energias Renovaveis Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) Energisa S.A. LT IDR BB+ Affirmed BB+ LC LT IDR BB+ Affirmed BB+ Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) Cosan Luxembourg S.A. senior unsecured LT BB Affirmed BB Cosan Overseas Limited senior unsecured LT BB Affirmed BB Echoenergia Participacoes S.A. Natl LT AA+(bra) Affirmed AA+(bra) senior unsecured Natl LT AA+(bra) Affirmed AA+(bra) Energisa Rondonia Distribuidora de Energia S.A. Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) Energisa Sul Sudeste – Distribuidora de Energia S/A Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) Cosan S.A. LT IDR BB Affirmed BB LC LT IDR BB Affirmed BB Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured LT BB Affirmed BB senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) Veleiros Holdings S.A. Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) Barreiras Holding S.A. Natl LT AA+(bra) Affirmed AA+(bra) senior unsecured Natl LT AA+(bra) Affirmed AA+(bra) Potengi Holdings S.A. Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) Companhia Riograndense de Saneamento Corsan Natl LT AA(bra) Affirmed AA(bra) senior unsecured Natl LT AA(bra) Affirmed AA(bra) Energisa Paraiba - Distribuidora de Energia S/A LT IDR BB+ Affirmed BB+ LC LT IDR BB+ Affirmed BB+ Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) Engie Brasil Energia S.A. LT IDR BB+ Affirmed BB+ LC LT IDR BBB- Affirmed BBB- Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) Energisa Minas Rio - Distribuidora de Energia S.A. LT IDR BB+ Affirmed BB+ LC LT IDR BB+ Affirmed BB+ Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) Energisa Acre – Distribuidora de Energia S.A. Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) Eneva S.A. Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) CESP - Companhia Energetica de Sao Paulo Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) AES Tucano Holding II S.A. Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) Auren Energia S.A. LT IDR BB+ Affirmed BB+ LC LT IDR BBB- Affirmed BBB- Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) Energisa Tocantins - Distribuidora de Energia S/A Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) Prolagos S.A. – Concessionaria de Servicos Publicos de Agua e Esgoto Natl LT AA(bra) Affirmed AA(bra) Energisa Transmissao de Energia S.A. Natl LT AAA(bra) Affirmed AAA(bra) Ventos de Santa Tereza 07 Energias Renovaveis S.A. Natl LT AAA(bra) Affirmed AAA(bra) senior secured Natl LT AAA(bra) Affirmed AAA(bra) Equatorial Para Distribuidora de Energia S.A. Natl LT AA+(bra) Affirmed AA+(bra) Aguas Guariroba S.A. Natl LT AA(bra) Affirmed AA(bra) senior unsecured Natl LT AA(bra) Affirmed AA(bra) Auren Participacoes S.A. Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) BRAZIL: IDB OKs 1B for Reforms to Enhance Business Environment -------------------------------------------------------------- The Inter-American Development Bank (IDB) approved a $1 billion (R$5.5 billion) loan to support Brazil's ambitious policy reform agenda under its Ecological Transformation Plan. This operation is designed to unlock private investment by improving financial conditions and the business environment, as well as strengthening governance and institutional capacity. At the heart of this initiative is Eco Invest Brasil, a pioneering collaboration between the IDB and the Brazilian government that is designed to provide more favorable financial conditions, in addition to novel financing tools for policymakers to overcome one of the oldest and most pressing barriers to investment, currency volatility. "The Eco Invest goal is to attract more private capital to the country through financial innovations such as blended finance and tools to manage foreign-exchange volatility," said IDB President Ilan Goldfajn. "Our collaboration intends to unlock investments in Brazil, creating jobs and opportunities that will generate tangible benefits for Brazilians." The National Treasury Secretary, Rogério Ceron, emphasized that "the innovations promoted by Eco Invest and the green investment agenda, with support from the IDB, are foundational and powerful. We are talking about advances that amplify Brazil's potential for greater productivity and better employment and income conditions, in a way that aligns with social and environmental responsibility." Eco Invest is expected to mobilize resources of approximately $10.8 billion (60 billion reales) by 2027, primarily through the private sector, by providing a blended-finance facility. Additionally, Eco Invest will also offer a project-preparation facility, a liquidity facility, and an FX-derivative program. To achieve these objectives, the program supports a governance framework for the Ecological Transformation Plan, structured under an agreement between the executive, legislative, and judiciary branches of government. It also sets issuance standards for sovereign sustainable bonds and develops a national bioeconomy strategy, among other measures. The loan also has a fiscal component to strengthen Brazil's business environment by leveraging recently approved tax reform. This IDB loan is part of a broader, multilateral effort to enhance the resilience and sustainability of Brazil's economy. The financing, through a policy-based loan, has a maturity period of 20 years, a grace period of 5.5 years, and an interest rate based on the Secured Overnight Financing Rate (SOFR). 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: S&P Affirms 'BB+' Notes Rating, Alters Outlook to Neg ------------------------------------------------------------------- S&P Global Ratings revised the outlook on MV24 Capital B.V.'s $1.1 billion, 6.748% senior secured notes to negative from stable and affirmed the 'BB+' issue-level rating. S&P also revised the project's operations phase business assessment (OPBA) to a riskier category ('6' from '5') because it believes that operational issues have become more common than one-off occurrences. In addition, the recovery rating on the debt is unchanged at '2' (95%)." The negative outlook on the debt rating reflects the potential for a downgrade if MV24 encounters additional operational issues that affect its availability or bonus payments due to longer-than-expected maintenance, leading to a debt service coverage ratio (DSCR) below 1.20x in the next two years. MV24 Capital B.V.'s underlying operating asset, the floating production storage and offloading (FPSO) vessel Cidade de Mangaratiba, has reported new concerns regarding the vapor recovery unit (VRU), which is experiencing lube oil leakage; however, this has not yet affected uptime. Given the equipment's performance track record--marked by the need to replace the VRU compressor for different reasons in 2023 and 2024, as well as the ongoing issues in 2025—S&P believes the risks of the project not meeting contractual performance requirements to receive bonus payments has increased, particularly for 2025 and 2026. This could negatively affect the project's cash generation, especially in 2026. The project consists of an offshore oil FPSO vessel, Cidade de Mangaratiba, deployed in October 2014 at the presalt field Tupi in Brazil's Santos Basin. Consorcio do AIP de Tupi B.V.--a consortium made up of Petrobras (67.216%), Shell Brasil Petroleo S.A. (23.024%), Petrogal Brasil S.A. (9.209%), and Pre-Sal Petroleo S.A. (0.551%)--owns the field. The project's revenue comes from a 20-year charter agreement with Petrobras on behalf of the consortium until October 2034. The agreement has a fixed availability daily price of about $534,000 as of October 2024, annually adjusted to 20% of the U.S. consumer price index (CPI). In addition, Petrobras Netherlands B.V. (PNBV; 65%), BG Energy Holdings Ltd. (25%), and Galp Energia SGPS S.A. (10%) guarantee the charter payments. The outlook revision reflects increased risk of lower bonus payments over the next two years, which could trigger a one-notch downgrade. S&P said, "We believe the project's operational issues have become more recurring than isolated, increasing the risk of more extended maintenance periods. This could hinder MV24's ability to earn its maintenance allowance bonus--a key revenue stream that accounts for approximately 10%–11% of total projected revenue. For instance, over the past seven years, the project failed to receive bonus payments in three years due to longer-than-expected maintenance periods. Therefore, we revised MV24's OPBA up to '6' from '5'. While this has no direct effect on the rating for now, it reflects our view that the project is facing recurring issues with the VRU compressor and more challenging performance standards under its contractual framework, since it should spend limited maintenance days while maintaining high levels of availability to qualify for bonus payments. Failure to meet these requirements gradually erodes revenue. "Our base case is unchanged, for now. We continue to forecast 95% uptime and a 41-day bonus allowance, which is equivalent to seven maintenance days per year. The ongoing oil leakage is being temporarily mitigated via oil tank replenishment, and a replacement for the current VRU compressor is scheduled by mid-October, in the project's contractual anniversary. Consequently, we still expect minimum and median DSCRs of 1.22x and 1.28x, respectively, between 2025 and 2034. The operator's strategy is to conduct maintenance between operational years to minimize the effect on any single contract year. However, we think additional technical setbacks could lead to further use of maintenance days during the 12th operational year (starting Oct. 15, 2025), compromising bonus eligibility and potentially pressuring debt service coverage. "While the project has been facing some operational setbacks, we continue to view it as fundamentally sound. It benefits from the oversight of an experienced operator with a long-standing presence both globally and in Brazil since 2003. Over its 11 years of operations, the asset has demonstrated a track record of operational performance, registering average availability of 95.5% since deployment. Furthermore, the 20-year, fixed-price, and availability-based charter agreement mitigates market exposure and commodity risk, supporting stable and predictable cash flows. That said, the project operates under stringent performance standards embedded in the contractual framework, which--when combined with the relatively high leverage--require consistent operational discipline to preserve financial metrics and avoid the erosion of performance-linked revenue. "The rating on the project's notes remains higher than that on Brazil. We believe the project would be able to pass a sovereign stress scenario. This is principally due to the exporting nature of the asset, the smooth debt payments, and existence of debt reserve accounts. Even though the vessel operates in Brazil, the documentation of the transaction defines that payments are deposited in offshore accounts, all cash is held offshore, and revenue and costs are denominated in dollars, offsetting the foreign-exchange conversion risk. We didn't apply the typical cash haircut because all cash is held offshore, invested under permitted investment-grade titles. "The negative outlook on the debt rating reflects the chances of a downgrade in case MV24 is unable to repair the VRU compressor within the targeted timeframe or presents additional operational issues that reduce bonus payments and availability because of longer-than-expected maintenance. Any of these could lead to a DSCR below 1.20x in the next two years. "We could lower the rating if the vessel's availability falls consistently below our estimate of 95.0% or if new operational issues require higher maintenance, affecting bonus payments and leading to a minimum DSCR below 1.20x. In addition, a downgrade could occur following a similar action on the revenue counterparties to below 'BB', or a downgrade of Brazil. "An upgrade is unlikely at this point considering the project's operational concerns and that its DSCRs are tight for the current rating category, with its contractual structure reliant on bonus payments. We could revise the outlook back to stable in the next 12 to 18 months once we have more certainty that MV24's operational issues have ceased." =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Urges Immediate Halt to Rice Imports -------------------------------------------------------- Dominican Today reports that the National Peasant Union (UNACA), affiliated with the National Confederation of Dominican Workers (CNTD), has issued an urgent appeal to the Dominican government to suspend rice imports, warning that the excessive influx of foreign rice is driving thousands of local producers -- particularly in the northeast -- into bankruptcy. According to UNACA President Juan Ramon Rondon, over four million metric tons of rice were authorized for import in 2024, far surpassing the 23,300-ton limit established by Decree 693-24, the report relays. This oversupply has saturated the market, causing prices to plummet and threatening the viability of more than 7,000 small and medium-sized producers in provinces such as Maria Trinidad Sanchez, Duarte, Hermanas Mirabal, and Samana, according to Dominican Today. Rondon criticized the issuance of import permits to business groups outside the agricultural sector, claiming they profit while local farmers face collapse, the report relays. He emphasized that national production is capable of meeting domestic demand through March 2026 and warned that continued imports risk dismantling decades of progress in the Dominican countryside, the report says. In addition to the economic impact, UNACA highlighted a breakdown in technical support, with only one of seven agricultural technicians still active in the region, the report discloses. "We've raised our concerns with various agriculture ministers, but our warnings have gone unheard," Rondon said. "We cannot stay silent while national production is destroyed and rural communities are pushed into poverty," he added. About Dominican Republic The Dominican Republic is a Caribbean nation that shares the island of Hispaniola with Haiti to the west. Capital city Santo Domingo has Spanish landmarks like the Gothic Catedral Primada de America dating back 5 centuries in its Zona Colonial district. Luis Rodolfo Abinader Corona is the current president of the nation. TCR-LA reported in April 2019 that Juan Del Rosario of the UASD Economic Faculty cited a current economic slowdown for the Dominican Republic and cautioned that if the trend continues, growth would reach only 4% by 2023. Mr. Del Rosario said that if that happens, "we'll face difficulties in meeting international commitments." An ongoing concern in the Dominican Republic is the inability of participants in the electricity sector to establish financial viability for the system. Standard & Poor's credit rating for Dominican Republic was raised to 'BB' in December 2022 with stable outlook. Moody's credit rating for Dominican Republic was last set at Ba3 in August 2023 with the outlook changed to positive. Fitch, in December 2023, affirmed the Dominican Republic's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-' and revised the outlook to positive. ============= E C U A D O R ============= CUENCA DPR: Fitch Assigns B- Rating to 2025-1 Loans, Outlook Stable ------------------------------------------------------------------- Fitch Ratings has assigned 'B-' rating to the series 2025-1 loans to be issued by Cuenca DPR. Additionally, Fitch has affirmed Cuenca DPR's outstanding series 2021-1 and 2023-1 loans at 'B-'. The Rating Outlook is Stable. Entity/Debt Rating Prior ----------- ------ ----- Cuenca DPR 2021-1 G2706*AA4 LT B- Affirmed B- 2023-1 G2706*AB2 LT B- Affirmed B- 2025-1 LT B- New Rating B-(EXP) Transaction Summary Cuenca DPR has entered into a loan agreement to receive a $57 million disbursement under an existing future flow program. This program is backed by U.S. dollar-denominated existing and future diversified payment rights (DPRs) originated by Banco del Austro S.A. (Austro) of Ecuador. Citibank N.A. processes 100% of DPR flows in the U.S. as the sole designated depository bank (DDB) in this transaction. Citibank executed an account agreement (AA) irrevocably obligating the bank to make payments to an account controlled by the transaction trustee. Fitch's rating addresses timely payment of interest and principal on a quarterly basis. KEY RATING DRIVERS Future Flow Rating Driven by Originator's Credit Quality: The rating of this future flow transaction is tied to the credit quality of the originator, Banco del Austro S.A. On Oct. 31, 2024. Fitch affirmed Austro's Long-Term Issuer Default Rating (IDR) at 'CCC+' and Viability Rating (VR) at 'ccc+'. Austro's IDR and VR are sensitive to its local operating environment, Ecuador (CCC+). On Aug. 13, 2024, Fitch affirmed Ecuador's IDR at 'CCC+'. Notching Differential Limited by Going Concern Assessment (GCA) Score: Fitch uses the GCA score to gauge the likelihood that the originator of a future flow transaction will stay in operation through the transaction's life. Fitch's Financial Institutions (FI) group assigns Austro a GCA score of 'GC3', reflecting the bank's position as the seventh-largest bank in Ecuador by total assets, with a market share of around 4% as of June 2025. Although Austro's business model is adequately diversified, it does not have any relevant product leadership position within Ecuador, which is also reflected in the GCA score. Several Factors Limit Notching Uplift from IDR: The 'GC3' score allows for a maximum uplift of two notches from the bank's IDR, pursuant to Fitch's future flow methodology. However, the uplift is tempered to one notch from Austro's IDR due to factors mentioned below, including high future flow debt-to-non-deposit funding and DDB concentration risk. High Future Flow Debt Relative to Balance Sheet: Fitch estimates future flow debt will represent about 4.2% of Austro's total funding and around 40% of non-deposit funding considering the bank's balance sheet as of June 2025, outstanding series 2021 and 2023 loans balance as of June 2025, and proposed $57 million series 2025 loan. Fitch does not allow the maximum uplift for originators with future flow debt over 30% of the overall non-deposit funding. However, given the benefits of the proposed structure, the quality of flows and the continued deleveraging of series 2021 and 2023, the agency allows for a one-notch differentiation from Austro's Long-Term IDR. Coverage Levels Commensurate with Assigned Rating: Based on average rolling quarterly DDB flows from July 2020 to June 2025 and the maximum periodic debt service, including Fitch's interest rate stress, the projected quarterly debt service coverage ratio (DSCR) with the 2025-1 loan is 27.6x. The transaction can also withstand a roughly 95% decrease in flows and still cover the proposed maximum quarterly debt service. Fitch will continue to monitor the flow performance closely. Structure Reduces Potential Redirection/Diversion Risk: The structure mitigates some sovereign risks by collecting cash flows offshore until the periodic debt service amount is reached. Fitch considers diversion risk partially mitigated by the AA signed by the sole DDB, Citibank, in the transaction. However, because Citibank processes 100% of DPR flows, the transaction faces higher diversion risk than other Fitch-rated DPR programs in the region, which limits the overall notching differential. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - The transaction's ratings are sensitive to changes in Austro's credit quality. A deterioration of Austro's credit quality by one notch would constrain the rating of the transaction at its current level. - The transaction's ratings are also sensitive to the DPR business line's ability to continue operating, as reflected by the GCA score. Additionally, a change in Fitch's view on the bank's GCA score could lead to a change in the transaction's rating. - The transaction's rating is sensitive to the securitized business line's performance. The expected quarterly DSCR is approximately 27.6x, which includes Fitch's interest rate stress, and should therefore withstand a significant decline in cash flows in the absence of other issues. However, significant further declines in flows could lead to a negative rating action. Fitch will analyze any changes in these variables in a rating committee to assess the possible impact on the transaction ratings. - No company is immune to the economic and political conditions of its home country. Political risks and the potential for sovereign interference may increase as a sovereign's rating is downgraded. However, the underlying structure and transaction enhancements mitigate these risks to a level consistent with the assigned rating. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade The main constraint to the program rating is the originator's rating and Austro's operating environment. If upgraded, Fitch will consider whether the same uplift could be maintained or if it should be further tempered in accordance with the criteria. 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 future flow ratings are driven by the credit risk of Austro as measured by its Long-Term IDR. 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. ============= J A M A I C A ============= JAMAICA: BOJ Reports Strong Financial Performance for 1H of 2025 ---------------------------------------------------------------- RJR News reports that the Bank of Jamaica is reporting strong financial performance for the first half of the year. Between January and July 9, the central bank raked in net profits of $19.3 billion, with total assets climbing to $1.2 trillion, according to RJR News. That's up from $1.1 trillion over the same period last year, the report notes. The increase was driven mainly by a jump in foreign assets, which rose to $923.5 billion in July -- up from $818.9 billion last year, the report says. But the bank's local assets took a hit, falling sharply from $270 billion last July to $242.6 billion this year, 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. NCB FIN'L: Pledges its Shares in Guardian Holdings as Collateral ---------------------------------------------------------------- The Trinidad Guardian is reporting that the Michael Lee Chin led, NCB Financial Group has agreed to pledge all the shares of its subsidiary Guardian Holdings as collateral for its upcoming US$300 million bond offer. This move, a first in Caribbean corporate history, exposes Guardian Holdings to significant risks if the NCB Financial Group fails to meet its debt obligations -- US$250 million of which matures this year, according to The Trinidad Guardian. The NCB Financial Group owns 61.77% of the ordinary shares of Guardian Holdings, the report notes. NCBFG floated an unsecured bond to finance the maturing debt, which should have been closed in June but the offer was not priced and taken up, the report says. The Group told the T&T Stock Exchange that it will now be issuing a senior secured bond backed by its share holding in Guardian Holdings, adding that it expects the offer to be priced and closed shortly, the report discloses. About NCB Financial The NCB Financial Group Limited is a financial services conglomerate operating in the Caribbean region and headquartered in Kingston, Jamaica. NCB Financial Group Limited is the parent company of the National Commercial Bank of Jamaica, the largest and most profitable financial institution in Jamaica. It is also the majority shareholder of Guardian Holdings Limited, one of the largest insurance providers in the Caribbean, and of Clarien Group Limited, a banking and investment management services provider based in Bermuda. The company is listed on the Jamaica Stock Exchange and Trinidad & Tobago Stock Exchange. As reported in the Troubled Company Reporter-Latin America on March 14, 2025, Fitch Ratings has affirmed National Commercial Bank Jamaica Limited's (NCBJ) Long-Term and Short-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB-' and 'B', respectively. Fitch has also affirmed NCBJ's Viability Rating (VR) at 'bb-'Fitch has additionally affirmed NCB Financial Group Limited's (NCBFG) Long-Term Foreign and Local Currency IDRs and Short-Term Foreign and Local Currency IDRs at 'B+' and 'B', respectively. The Rating Outlook for both NCBJ and NCBFG's Long-Term IDRs is Positive. The Positive Outlook on the Long-Term IDRs is aligned with the Positive Outlook on Jamaica's sovereign rating and reflects Fitch's expectations of continued improvement in the Operating Environment (OE). [] JAMAICA: BSJ Issues Over 50 New Quality Standards for MSMEs -------------------------------------------------------------- Jamaica Observer reports that as part of its efforts to align Jamaica's micro, small, and medium-size enterprises (MSMEs) with international market expectations, the Bureau of Standards Jamaica (BSJ) introduced 53 new quality standards in 2024 -- 47 pertaining to products and six to services. "This effort brought the National Standards Catalogue to a total of 760 entries as at December 31, 2024. Another 56 standards were in advanced stages of finalisation, targeting sectors such as construction, bamboo, climate change adaptation, electronics, agro-processing, automotive, coatings, and security systems," data contained in the latest Economic and Social Survey Jamaica (ESSJ) released by the Planning Institute of Jamaica (PIOJ) indicated, according to Jamaica Observer. As the national agency responsible for developing and promoting standards for goods, services, processes, and practices, BSJ ensures that products meet essential quality criteria, the report notes. These standards provide requirements, specifications, guidelines, and characteristics to ensure that materials, products, and services are consistently fit for purpose, the report relays. Key considerations include health and safety, reliability, consistency, and environmental sustainability, the report discloses. Engaging with a wide of range of stakeholders -- including manufacturers, consumers, regulators, and technical experts -- the BSJ works to develop and implement standards, the report notes. Beyond standards development, the entity offers services like testing, calibration, certification, and industrial training to support businesses so as to ensure compliance with standards, the report says. Recognising the pivotal role of small businesses in job creation and economic growth, BSJ also rolled out targeted training and capacity-building initiatives that benefited approximately 560 participants, the report relays. These were delivered across 49 specialised training sessions designed to enhance regulatory compliance, operational efficiency, and competitiveness, the report notes. "Financial assistance was also extended to eligible MSMEs through discounted access to critical technical services. Over the course of the year 64 enterprises benefited from reduced rates for services such as laboratory testing, product certification, label review, and management systems support, resulting in collective savings of approximately $2.3 million," the ESSJ further noted, the report notes. Throughout the year, further support was also provided through direct technical advisory services which saw a total of 138 MSMEs receiving guidance aimed at improving their regulatory compliance, market access, and certification readiness, the report relays. As a result of these interventions BSJ said 20 MSMEs were able to be successfully registered with the National Compliance and Regulatory Authority (NCRA), the report notes. Others were also able to gain access to domestic markets, adopt or advance their implementation of ISO standards, or even successfully implement good manufacturing practices (GMPs), the report discloses. "Additionally, initiatives were introduced to support the formalisation of producers within the health and wellness sector. Nineteen businesses received assistance to standardise and register their operations, with plans underway to expand the initiative," the data further said of some other key outcomes, the report says. With stakeholder engagement remaining an important priority BSJ, through its delivery of sector-specific awareness sessions and technical training, said it was also able to deliver workshops on product standards and export readiness for the cosmetics and personal care industries, as well as capacity-building programs focused on food safety and quality assurance, the report relates. "Collaboration with academic institutions also supported mentorship and skills development in key areas such as food processing, engineering and business operations," the data also highlighted, 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: IDB Praises Innovation & Growth Program for MSMEs ------------------------------------------------------------- RJR News reports that a senior official of the Inter-American Development Bank has praised Jamaica's Boosting Innovation, Growth and Entrepreneurship Ecosystems programme, saying it remains instrumental in driving the expansion of several micro, small and medium-sized enterprises (MSMEs) across the island. The official, who provided an update on the programme during the Ministry of Industry, Investment and Commerce MSME Linkages Day event at the University of Technology, said coordinated policies, targeted support and sustained investment are vital to unlocking the MSME sector's full potential and driving inclusive economic growth, according to RJR News. 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 ===================== PUERTO RICO: Stops $20 Billion LNG Deal Talks with New Fortress --------------------------------------------------------------- Jim Wyss and Ruth Liao of Bloomberg News report that Puerto Rico is halting efforts to finalize a multi-billion dollar liquefied natural gas contract with New Fortress Energy Inc. after the company declined to accept revised terms, according to one of the lead negotiators. Osvaldo Carlo Linares, president of Recoms Group -- the island's third-party procurement agency -- said New Fortress refused to engage in discussions over proposed contract changes and failed to meet a critical deadline, according to Bloomberg News. "Given what we see as a lack of interest from New Fortress, we are ending this RFP process," he told Bloomberg News. 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 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 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 agenciesâ€š 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 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. 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 * * *