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250806.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 Wednesday, August 6, 2025, Vol. 26, No. 156 Headlines A R G E N T I N A ARGENTINA: Gets $1.2BB IDB Loan for Fiscal & Regulatory Reforms B E R M U D A NABORS INDUSTRIES: BlackRock Holds 6.6% Stake as of June 30 B R A Z I L BANCO DO BRASIL: $1.4BB Plunge Signals Worries in Farming Economy BRAZIL: IDB OKs $1BB Loan for Business Environment Enhancement C A Y M A N I S L A N D S ARADA SUKUK 2: Fitch Puts Final 'BB-' Rating to Programme Issuance D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Congress OKs US$615M in Loans in Under 24Hrs DOMINICAN REPUBLIC: PLD Labels Gov't. Economic Policy a "Failure" J A M A I C A [] JAMAICA: Mining & Manufacturing Industries Record Modest Growth M E X I C O PETROLEOS MEXICANOS: Fitch Hikes LongTerm IDR to BB, Outlook Stable P U E R T O R I C O CONCORDE METRO: Seeks to Extend Plan Exclusivity to October 20 PUERTO RICO: PREPA Bondholders Say Utility Swiped $2.9B - - - - - ================= A R G E N T I N A ================= ARGENTINA: Gets $1.2BB IDB Loan for Fiscal & Regulatory Reforms --------------------------------------------------------------- The Inter-American Development Bank (IDB) approved two loans for Argentina totaling $1.2 billion that will advance critical reforms to strengthen fiscal sustainability, improve the business climate, and boost competitiveness under the Bank's new 2025-2028 Country Strategy. The first loan, for $800 million, is the second in a series of two programmatic policy-based loans (PBLs). It aims to support tax reforms that enhance the efficiency and equity of the tax system, reducing distortionary taxes and eliminating exemptions and deductions to improve the country's capacity to collect revenue. The loan also backs measures that reduce the cost of tax compliance by simplifying filing processes for value-added and personal income taxes. The financing will also support reforms to make public spending more efficient, including more precise targeting of subsidies for public services to improve the efficiency of the energy and water sectors. Other measures aim to improve the targeting and efficiency of social-assistance programs, increase budget transparency, and establish more efficient intergovernmental fiscal relations. The second loan, for $400 million, is part of another series of programmatic PBLs. It will support key reforms to reduce regulatory burdens, increase private-sector participation in the economy, and streamline foreign-trade operations. Reforms include the repeal or amendment of 700 outdated regulations and the creation of a digital platform for reporting bureaucratic obstacles that is expected to contain more than 12,000 reports by 2027. The reforms focusing on the business environment will benefit approximately 500,000 businesses across Argentina by lowering compliance costs and opening markets previously dominated by state-owned enterprises. They will also enhance efficiency for about 24,000 importers and 9,500 exporters through faster and more transparent trade procedures. The newly approved loans are part of $10 billion in IDB financing assistance for Argentina that was announced in April, to be apportioned over the next three years under the Bank's 2025-2028 Country Strategy. The financing is aligned with ongoing support from the International Monetary Fund and the World Bank and reinforces the country's commitment to fiscal sustainability and structural transformation. Both IDB loans have a 20-year maturity, a 5.5-year grace period, and an interest rate based on the Secured Overnight Financing Rate (SOFR).  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 ============= NABORS INDUSTRIES: BlackRock Holds 6.6% Stake as of June 30 ----------------------------------------------------------- BlackRock, Inc., disclosed in a Schedule 13G/A (Amendment No. 6) filed with the U.S. Securities and Exchange Commission that as of June 30, 2025, it beneficially owns 1,040,834 shares of Nabors Industries Ltd.'s Common Stock, representing approximately 6.6% of the shares outstanding. BlackRock, Inc. may be reached through: Spencer Fleming, Managing Director 50 Hudson Yards New York, NY 10001 Phone: (212) 810-5800 A full-text copy of BlackRock's SEC report is available at: https://tinyurl.com/328u9e5w About Nabors Bermuda-based Nabors Industries Ltd. (NYSE: NBR) owns and operates land-based drilling rig fleets and provides offshore platform rigs in the United States and several international markets. Nabors also provides directional drilling services, tubular services, performance software, and innovative technologies for its own rig fleet and those of third parties. * * * Egan-Jones Ratings Company on June 10, 2025, maintained its 'CCC+' foreign currency and local currency senior unsecured ratings on debt issued by Nabors Industries, Inc. =========== B R A Z I L =========== BANCO DO BRASIL: $1.4BB Plunge Signals Worries in Farming Economy ----------------------------------------------------------------- Richard Mann at Rio Times Online reports that on August 1, 2025, Banco do Brasil -- one of Brazil's most important banks -- lost BRL7.7 billion ($1.4 billion) in market value in just one day. The stock fell 6.85%, according to official numbers from the B3 exchange and the Central Bank of Brazil, the report notes. The bank's total market value dropped to BRL104.75 billion ($18.7 billion), wiping out years of gains and bringing it back to levels last seen in early 2023, the report recalls. This is more than just a slump in bank shares, according to Rio Times Online. Over the past 18 months, Banco do Brasil lost more than BRL65 billion ($11.6 billion) in value -- well over a third of the company -- since peaking at BRL170 billion ($30.4 billion) in February 2024, the report relays. The main reason for this is a rise in bad debt and tougher rules for banks. New government regulations now require banks to set aside more money for loans that could go bad, even before customers miss payments, the report says. The agricultural sector, which is key for Banco do Brasil, has faced defaults as falling crop prices and high borrowing costs strain finances, the report relates. Banco do Brasil's woes can therefore been seen as a proxy for the country's agribusiness, the report notes. At the same time, new 50% tariffs imposed by the United States on many Brazilian agricultural exports such as beef, coffee, tallow, ethanol, and various fruits are set to hit the industry especially hard, the report discloses. These steep tariffs will make it much more difficult for Brazilian producers to sell their goods to one of their largest export markets, further straining farm incomes and increasing financial stress on both farmers and lenders, the report says. Banco do Brasil's recent performance, then, acts as a clear indicator of the mounting risks facing Brazil's rural economy as it is squeezed by both market trends and global trade policy shifts, notes Rio Times Online. As defaults rise across Brazil's farms, Banco do Brasil's troubles increasingly reflect the broader challenges facing the country's entire agribusiness sector, the report relays. The bank's losses serve as a clear indicator of the strain rippling through Brazil's most vital rural industries, says the report. Brazil's Farmers Face Rising Debt Despite Record Harvests According to Rio Times Online, the Central Bank of Brazil raised the country's main interest rate (the Selic) to 15% to fight inflation. This has made borrowing more expensive for both farmers and regular families. With credit getting tighter, bank profits have fallen, the report relays. In early 2025, Banco do Brasil reported that profits dropped over 20% compared to the year before, the report notes. This prompted investors to dump the bank's stock, pushing prices near the psychological R$100 billion ($17.9 billion) barrier—seen by many as a test of the bank's strength, the report adds. BRAZIL: IDB OKs $1BB Loan for Business Environment Enhancement -------------------------------------------------------------- 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. =========================== C A Y M A N I S L A N D S =========================== ARADA SUKUK 2: Fitch Puts Final 'BB-' Rating to Programme Issuance ------------------------------------------------------------------ Fitch Ratings has assigned Arada Developments LLC's (Arada; B+/Stable) issuance under the trust certificate programme a final rating of 'BB-', based on the new programme update. The programme is issued by the trustee, Arada Sukuk 2 Limited (ASL2). The final rating is in line with Arada's senior unsecured rating of 'BB-'. The Recovery Rating is 'RR3'. In its capacity as trustee, ASL2 is incorporated in the Cayman Islands as a limited liability company for the sole purpose of issuing the sukuk. The Law Debenture Trust Corporation p.l.c. is acting as the delegate of the trustee, while Arada (or any its subsidiaries) is the seller. Arada is also the obligor, lessee, and servicing agent. According to the programme documentation, proceeds are being used for general corporate purposes and the partial repayment of Arada's shari'a-compliant financings. Key Rating Drivers The sukuk's programme's rating is derived from Arada's Long-Term Issuer Default Rating. This reflects Fitch's view that a default of the senior unsecured obligations would reflect a default of Arada, in accordance with Fitch's rating definitions. Fitch has given no consideration to any underlying assets or collateral provided, as the agency believes the trustee's ability to satisfy payments due on the trust certificates will ultimately depend on Arada satisfying its unsecured payment obligations to the trustee under the transaction documents. The company would be required to ensure full and timely repayment of ASL2's obligations, encompassing Arada's various roles and obligations especially, but not limited to, the following features: - Arada shall pay rentals and the wakala portfolio revenues. Such amounts are intended to be sufficient to fund the periodic distribution amount payable by the trustee under the trust certificates. - On any dissolution or Arada event (which includes a default on obligations), the aggregate amounts of deferred sale price then outstanding will become immediately due and payable; and the trustee will have the right under the purchase undertaking to require Arada, as the obligor, to purchase all of its rights, title, interests, benefits and entitlements, present and future, in, to and under the relevant wakala assets as payment of its relevant exercise price. - Both the exercise price payable by Arada under the purchase undertaking and its outstanding deferred sale price payable under the murabaha agreement are intended to fund the dissolution amount payable by the trustee under the relevant trust certificates. This amount should equal the outstanding face amount of the trust certificates and unpaid periodic distributions amounts or a redemption amount as specified in, or determined by, the applicable pricing supplement. - In circumstances where a periodic distribution date falls on a day after the occurrence of a total loss event but before the date on which the replacement wakala assets are acquired by the trustee, certificate holders will receive only part of the periodic distribution amounts that would have otherwise been due to them for a maximum of 60 days. However, this amount of profit that would have accrued will be paid on the next periodical distribution date. - The lessee covenants and undertakes that it shall use the lease assets for solely shari'a-compliant activities. If the lessee failed to comply, it would constitute a dissolution event. For the latest issuance, the programme has been amended so that if Arada fails to purchase the wakala assets of the relevant series and as a result does not pay the exercise price, and the trustee is unable to make a claim under the indemnity because Arada is not in actual or constructive possession, custody or control of all of the wakala assets of the relevant series (or claims it is not), then Arada will irrevocably and unconditionally authorises the trustee or its nominee, agent, delegate or assignee to register the title to the wakala assets in the trustee's name at the Sharjah Real Estate Registration Department, This is provided that at that time a total loss has not occurred and it is possible to do so under all applicable laws. Fitch does not believe this clause is sufficient for it to treat the debt as secured or higher ranking than existing indebtedness, due to uncertainties and complexities related to legal framework and regulations, Arada's willingness and ability to register, and the lack of precedents. Its assessment of the effect of future asset-registration clauses will be case by case, and Fitch is monitoring developments in this evolving area. Fitch could reassess the above assumptions regarding Arada's ratings and debt ranking, if warranted by developments. - Arada will pay the total loss or the partial loss shortfall amount in a total loss event or partial loss event (unless the relevant wakala assets have been replaced by Arada), or if there is a shortfall from the insurance proceeds. As the servicing agent, Arada will irrevocably ensure that the insured amount relating to each loss event will at all times be at least equal to the full reinstatement value. If the servicing agent is not in compliance with the obligation to insure the assets against a total or partial loss event, it will immediately deliver a written notice to the trustee and the delegate of the non-compliance and this will constitute a dissolution event. If a total loss event occurs with respect to the wakala assets, where the relevant wakala assets are replaced in accordance with the servicing agency agreement, the certificate holders could only receive part of the periodic distribution amount, within a maximum of 60 days, that will be paid on the next periodical distribution date. - The lessee (Arada) will permit the lessor and any person authorised by the lessor at all reasonable times to inspect and examine the condition of the lease assets. If the lessee failed to comply, this would constitute a dissolution event. - In addition, if the lessee fails to keep and maintain the security or optimum condition (other than fair wear and tear) of the lease assets, the lessor will be entitled, but not obliged, to give 15 business days' notice to possess the lease assets and take all necessary steps, at the expense of the lessee, to ensure that the lease assets are in suitable condition for their intended use. - The lessor agrees that the lessee may sub-let the lease asset to a third party, provided: any such sub-let does not in any way affect, impair or reduce the obligations of the lessee; and any use of the lease assets under any such sub-let does not and will not contravene the principles of shari'a. If the lessee failed to comply, it would constitute a dissolution event. Arada's payment obligations under the service agency agreement, purchase undertaking and the murabaha agreement constitute its present and future direct, unconditional, unsubordinated and unsecured obligations and at all times rank at least equally with its other outstanding present and future unsecured and unsubordinated obligations. - The programme documents have a tangible asset ratio (defined as each series' wakala assets/aggregate value of wakala assets and the deferred sale price outstanding) of more than 50%. If the ratio falls to or below 50%, but above 33%, the servicing agent will take the steps (in consultation with the shari'a advisor) required to restore it to more than 50%. If the ratio falls below 33% (a tangibility event), the trust certificates will be delisted and each holder will have the right to require the redemption of all or any of its trust certificates. Fitch expects Arada to maintain the tangible asset ratio above 50% through the life of any trust certificates issued under the programme. The obligor has a material base of unencumbered tangible assets, mainly comprising land plots in Sharjah, and leased assets by Arada that are initially earmarked for the programme, but other assets may also be considered eligible later, if necessary. Arada's asset base is sufficient to support the trust certificate programme. The programme documentation includes a negative pledge, cross-default provisions, indemnity and restrictive covenants, including debt limitations and interest coverage. Some of the transaction documents will be governed by English law and others by the laws of the Emirate of Sharjah and, to the extent applicable in Sharjah, the federal laws of the UAE. Fitch does not express an opinion on whether the relevant transaction documents are enforceable under any applicable law. However, Fitch's rating on the trust certificates reflects the agency's belief that Arada would stand behind its obligations. Fitch does not express an opinion on the trust certificates' compliance with sharia principles when assigning ratings to the certificates to be issued. Fitch applies a one-notch uplift to the senior unsecured rating compared with the IDR. The recovery estimate uses a liquidation approach, mainly supported by the attributable value of work in progress and investment properties, to which Fitch applies a 50% discount. As Arada's IDR is 'B+', the Recovery Rating is capped at 'RR3', resulting in a senior unsecured rating of 'BB-'. Peer Analysis The issue rating is derived from Arada's Long-Term IDR and in line with its senior unsecured rating. RATING SENSITIVITIES ASL2 Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The rating could be downgraded following a similar action on Arada's Long-Term IDR. Adverse changes to the roles and obligations of Arada under the sukuk's structure and documents would be negative for the rating. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade The senior unsecured rating would not be upgraded if Arada's IDR were upgraded to 'BB-'. For Arada's rating sensitivities, see rating action commentary 'Fitch Affirms Arada's IDR at 'B+'/Stable; Senior Unsecured Rating at 'BB-'' published on 24 October 2024. Liquidity and Debt Structure In June 2024, Arada established a sukuk programme for up to USD1 billion, from which it drew down USD400 million (AED1.5 billion). Later in September, the company tapped its sukuk programme and issued an additional USD150 million (AED550 million). Following these transactions, its gross debt mainly comprised senior unsecured sukuk totalling AED3,800 million that mature between 2027 and 2029 and about AED500 million of secured bank facilities. At end-2024, Arada's liquidity was satisfactory, with AED2.3 billion of unrestricted cash. In 2023, the company completed an AED1,100 million (USD300 million) share capital increase to support its projects in the pipeline, which was followed by an additional capital injection of AED200 million in September 2024. Issuer Profile Arada is a master-plan community developer focusing on Sharjah in the UAE. Date of Relevant Committee 17 July 2025 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 Arada has an ESG Relevance Score of '4' for Governance Structure due to the weak structure of the board of directors compared with most EMEA peers'. The board comprises five members, including two shareholders, one independent director and the CEO. The limited number of independent board members has a negative impact on the credit profile and is relevant to the rating in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Arada Sukuk 2 Limited senior unsecured LT BB- New Rating RR3 BB-(EXP) =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Congress OKs US$615M in Loans in Under 24Hrs ---------------------------------------------------------------- Dominican Today reports that with remarkable speed, the Dominican Republic's National Congress cleared three government loan agreements totaling US$615 million, immediately after enacting the new Penal Code. The Senate signed off on the loans, mirroring the lower chamber's unanimous backing in the early morning hours, according to Dominican Today. The largest credit line, US$380 million from the Inter-American Development Bank, will fund the Universal Sanitation Program in coastal and tourist cities, the report notes. Administered by the National Institute of Potable Water and Sewerage (INAPA), it aims to expand sewage coverage and boost operational efficiency in La Romana, San Pedro de Macoris and Higuey, the report relays. A second US$200 million IDB loan will cover engineering designs, technical and economic feasibility studies for climate-resilient bridge rehabilitation and reconstruction, the report discloses. It also includes funding for monitoring equipment and digital inventory tools to manage bridge infrastructure against natural disasters, the report says. Finally, a US$35 million agreement with the Development Bank of Latin America and the Caribbean (CAF) will finance the expansion of Santo Domingo's saline-barrier aqueduct, overseen by the Santo Domingo Aqueduct and Sewerage Corporation (CAASD), the report relays. President Luis Abinader, citing global interest-rate shifts and U.S. policy changes, acknowledged a slowdown in national growth but defended the government's strategy, the report discloses. "Despite reduced expansion, and the public feeling it, these measures respond to international circumstances," he said on the program La Semanal, 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. DOMINICAN REPUBLIC: PLD Labels Gov't. Economic Policy a "Failure" ----------------------------------------------------------------- Dominican Today reports that the Dominican Liberation Party (PLD) delivered a scathing assessment of President Luis Abinader's economic stewardship, branding it "inefficient" and "mismanaged" compared to the previous administration. Luis Reyes, the PLD's economic affairs secretary, appeared on the nightly broadcast "Propuesta de la Noche" to present data he says reveals deep flaws in the government's fiscal and monetary strategy. Reyes pointed out that although public spending levels under Abinader mirror those of his predecessor, Danilo Medina, actual investment has fallen sharply, according to Dominican Today. "Despite injecting over RD$64 billion into the financial system, commercial interest rates remain stuck between 12 and 13 percent," he said, the report notes. "That chokes off credit to businesses and consumers, stalling growth from mid-2024 onwards," he added. The PLD spokesperson also warned that personal debt is squeezing the middle class, the report relays. He noted a more than RD$100 billion surge in credit-card balances over the past five years, driven by "unsustainable" interest rates, the report discloses. Reyes criticized the 2025 budget for its restrictive framework under the Fiscal Responsibility Law, arguing that it hamstrings the state's ability to kick-start the economy, the report says. Reyes reserved his harshest criticism for public works execution. By the end of June, only 22 percent of funds earmarked for new projects had been spent, he said, the report relays. "Public investment should power economic dynamism," Reyes insisted. "To see such a low absorption rate in the critical first half of the year is simply unacceptable." President Abinader has attributed sluggish growth to global headwinds, but Reyes dismissed that defense as "simplistic." He argued that structural missteps -- faulty policy choices, inadequate stimulus and rising debt burdens -- bear far more responsibility than external factors, the report notes. As the general election approaches, the PLD's charges set the stage for a heated debate over where the Dominican economy is headed next, the report discloses. 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. ============= J A M A I C A ============= [] JAMAICA: Mining & Manufacturing Industries Record Modest Growth ------------------------------------------------------------------ RJR News reports that Jamaica's mining and quarrying and manufacturing industries recorded modest increases in activity for June this year, according to the latest data from the Statistical Institute of Jamaica (STATIN). The producer price index (PPI) for the mining and quarrying industry rose by 0.6 per cent, driven entirely by a 0.6 per cent increase in the subsector bauxite mining and aluminum processing, according to RJR News. The other major component of the mining and quarrying recorded a marginal 0.1 per cent increase, the report notes. Meanwhile, the manufacturing industry registered a 0.8 per cent increase in its PPI for June, the report relays. The growth was led by notable increases in refined petroleum products, paper and paper products and a slight rise in food, beverages and tobacco, the report relays. On the year-over-year basis, June 2024 to June 2025, the mining and quarrying industry saw a significant 8.5 per cent increase, primarily due to a 7.8 per cent rise in the bauxite and alumina segment, the report discloses. The manufacturing industry's annual increase was more moderate at 0.6 per cent, influenced by a 3.1 per cent increase in food, beverages and tobacco, which was partially offset by a sharp 9.5 per cent decline in refined petroleum products, 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. =========== M E X I C O =========== PETROLEOS MEXICANOS: Fitch Hikes LongTerm IDR to BB, Outlook Stable ------------------------------------------------------------------- Fitch Ratings has removed the Rating Watch Positive (RWP) and upgraded Petroleos Mexicanos (PEMEX)'s Long-Term Local and Foreign Currency Issuer Default Ratings (IDRs) to 'BB' from 'B+'. The Rating Outlook is Stable. Fitch has also removed the RWP and upgraded the rating senior unsecured notes outstanding for PEMEX to 'BB' from 'B+'/'RR4'. The upgrade follows the successful completion of Mexico's USD12 billion P-Cap transaction. This development prompted Fitch to strengthen its assessment of the Mexican government's 'Precedents of Support' sub-factor per its Government-Related Entity criteria. As a result, the linkage between PEMEX and the sovereign has strengthened, supporting a higher rating for the company. Fitch rates Mexico's Long-Term IDR 'BBB-'. Key Rating Drivers Improved GRE Linkage Score: The completion of the USD12 billion P-Cap transaction supports Fitch's assessment of the federal government's commitment to provide stronger support to PEMEX. Fitch revised the "Precedents of Support" subfactor under its Government-Related Entity (GRE) criteria to 'strong' from 'not strong enough', reflecting greater government support. The revision increased Fitch's Overall Linkage Score (OLS) between PEMEX and Mexico's ratings to 30 from 25 points. Per Fitch's GRE criteria, an OLS above 30 triggers a change in the approach to notching for PEMEX to top-down minus two from bottom-up plus five, resulting in a two-notch upgrade to 'BB'. Increased Government Oversight: Mexico has taken legislative actions that allow PEMEX to share a debt ceiling with the Secretary of Finance and the P-Cap transaction to materially address the company's short-term maturities. These actions signal stronger government oversight and improving decision making. Other similar measures could trigger a revision of PEMEX's GRE Decision-making and Oversight subfactor assessment to "Very Strong" from "Strong", allowing an additional five-point increase of PEMEX's OLS to 35. This score led to a change in notching of PEMEX's IDR from top-down minus two to top-down minus one, for an additional IDR upgrade to 'BB+'. Financial Profile Persistently Weak: Fitch also upgraded PEMEX's Standalone Credit Profile (SCP) to 'ccc' from 'ccc- ', reflecting improved financial flexibility and liquidity as a result of the P-cap transaction. Pemex's leverage is a key driver of its SCP, which remains in the 'ccc' category due to persistent negative FFO, EBITDA compression due to lower crude prices and production, tight liquidity and unrelenting losses in the downstream business. At June 30, 2025, PEMEX had USD98.8 billion in debt, and interest expense of USD2.0 billion, over half of the quarter's EBITDA. Expected leverage through the rating horizon exceeds 15x. Deteriorating Operational Performance: Fitch believes the multi-year underinvestment in both the upstream and downstream assets will continue eroding operational and, thus, financial performance. Multiple incidents at critical assets signal a lack of maintenance capex. The new administration has been vocal regarding a cap to upstream production and has intensified efforts in the downstream, which will continue to pressure liquidity unless ongoing government support is provided to address capex and debt service. Production and development of new fields have declined in the last few years, making exploration and production (E&P) capex a top risk. ESG - GHG Emissions & Air Quality: PEMEX's history with GHG emissions, poses an ESG concern. Multiple fires at critical assets will likely affect local communities and the environment. Fitch believes operational management and the lack of maintenance capex for core assets and infrastructure will further challenge PEMEX's financial profile. This was a key consideration in the 'B+' rating, as PEMEX's ESG track record can further impair its ability to raise capital. ESG - Hazardous Materials Management: The last 10 years of underinvestment has contributed to the deterioration of transportation infrastructure. Certain pipelines have had leaks, releasing contaminating products near nature and population. This issue poses an ESG concern as environmental remediation costs and related litigation could further pressure the company's liquidity position. ESG - Employee Wellbeing: Employee Wellbeing is also an ESG concern in assessing PEMEX's credit profile. Several incidents stemming from underinvestment in critical assets have caused injuries and fatalities of employees and contractors. Many of these have also had damaging environmental impacts, likely affecting the company financially and reputationally. ESG - Management Strategy: PEMEX's management track record and its financial distress could complicate its ability to execute on strategy. Peer Analysis PEMEX's link to the sovereign is weaker compared to Petroleo Brasileiro S.A. (Petrobras) (BB/Stable), Ecopetrol S.A. (BB+/Negative), and Empresa Nacional del Petroleo (ENAP) (A-/Stable), which benefit from stronger government support and higher oversight. However, PEMEX compares favorably to Petroleos del Peru - Petroperu S.A. (CCC+), as Peru's government only meets Petroperu's immediate needs without improving its capital structure. Petroperu's market share drop to 25% from 45% caused minimal disruptions due to alternative fuel imports. Fitch believes regional governments, except for Mexico and Peru, have taken steps to ensure their national oil and gas companies' SCPs remain viable long-term. Fitch views PEMEX's SCP as commensurate with the 'ccc' level, which is 10 notches below Petrobras's 'bbb' SCP and nine notches below Ecopetrol's 'bbb-' SCP. The differences are primarily due to PEMEX's weaker capital structure and increasing debt. PEMEX's SCP reflects the company's large transfers to Mexico's federal government, weakening operations, and a large and increasing financial debt balance when compared with 1P reserves and elevated EBITDA-adjusted leverage. Comparatively, Ecopetrol and Petrobras significantly strengthened their capital structures and maintained stable operating profiles. Key Assumptions - Average West Texas Intermediate crude prices of USD65bbl in 2025, USD60bbl in 2026, and USD57bbl for the mid-cycle; - Henry Hub prices of USD3.6/mcf in 2025, USD3.5/mcf in 2026 and USD3.0/mcf thereafter; - Oil Production stays flat at 1.75mmboed; - Annual capex average of USD12 billion; - Government take to average 60% of EBITDA per annum; - Short-term debt and debt maturities are refinanced at 8%; - PEMEX will receive necessary support from the government to ensure adequate liquidity and debt service payments; - Refined product volumes growth moves aligned with Fitch's Real GDP growth forecasts of 0.05% in 2025, 0.7 in 2026 and thereafter; - P-Cap transaction addresses USD 5 billion of 2025 bank debt and USD 4.5 billion of 2026 bank debt ; - Government support of USD 6.7 billion in 2025. RATING SENSITIVITIES Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A downgrade of Mexico's sovereign rating; - Weakened ability and/or willingness of the government to meaningfully support PEMEX; - Deterioration of the SCP - An inability to successfully manage supplier liability. Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Materialization of further support from the government; - An upgrade of Mexico's sovereign rating; - An irrevocable guarantee from Mexico's government to sustainably cover more than 75% of PEMEX's debt. Liquidity and Debt Structure PEMEX's liquidity position remains weak because of negative FCF, which resulted in a relatively low cash position and reduced availability of its lines of credit. The company reported total cash and equivalents of around MXN96.4 billion as of June 2025 and reported MXN1.9 trillion of total debt with MXN529 billion in short-term debt. Issuer Profile PEMEX, Mexico's state oil and gas company, is the nation's largest company and is one of the world's largest vertically integrated petroleum enterprises. 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 PEMEX has an ESG Relevance Score of '5' for Waste & Hazardous Materials Management; Ecological Impacts due to numerous fires at its operating facilities. Fitch expects these incidents to increase the company's carbon footprint and the risk of environmental pollution, which could impact local communities. This has a negative impact on the credit profile and is highly relevant to the rating, resulting in an implicitly lower rating. PEMEX has an ESG Relevance Score of '5' for Management Strategy due to the company's ESG track record and its financial distress, which Fitch expects to further complicate management's ability to execute on its strategy. This has a negative impact on the credit profile and is highly relevant to the rating, resulting in an implicitly lower rating. PEMEX has an ESG Relevance Score of '5' for GHG Emissions & Air Quality due to numerous incidents at its operating facilities. Fitch expects these incidents to increase the company's carbon footprint and the risk of environmental pollution, which could impact local communities. This has a negative impact on the credit profile and is highly relevant to the rating, resulting in an implicitly lower rating. PEMEX has an ESG Relevance Score of '5' for Employee Wellbeing due to multiple fires in 2023 and 2024 that resulted in numerous reported injuries and employee fatalities. These incidents raise questions about the company's management of its operations and regulatory oversight to ensure PEMEX and other Mexican operators are meeting industry standards for safety and employee wellbeing. This has a negative impact on the credit profile and is highly relevant to the rating, resulting in an implicitly lower rating. PEMEX has an ESG Relevance Score of '4' for Governance Structure due to its nature as a majority government-owned entity and the inherent governance risk that arises with a dominant state shareholder. This has a negative impact on the credit profile and is relevant to the rating in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Petroleos Mexicanos (PEMEX) LT IDR BB Upgrade B+ LC LT IDR BB Upgrade B+ senior unsecured LT BB Upgrade B+ ===================== P U E R T O R I C O ===================== CONCORDE METRO: Seeks to Extend Plan Exclusivity to October 20 -------------------------------------------------------------- Concorde Metro Seguros LLC asked the U.S. Bankruptcy Court for the District of Puerto Rico to extend its exclusivity periods to file a Disclosure Statement and Plan of Reorganization to October 20, 2025. The Debtor is currently prosecuting Adversary Proceeding No. 25-00016 against multiple defendants, including the HOA which holds one of the largest claims against the bankruptcy estate. This litigation involves automatic stay violations and seeks declaratory judgment regarding disputed pre-petition obligations. The Debtor explains that the resolution of this adversary proceeding will directly impact the treatment to be provided to the HOA and other defendants in the Plan of Reorganization. Adjudication of these disputes is necessary to formulate accurate claim treatments and achieve a confirmable Plan. The Debtor claims that an extension of the Exclusivity Period will benefit Debtor's creditors by allowing sufficient time for proper asset evaluation, claim analysis, and development of a feasible Plan that maximizes distributions. Also, the extension will not prejudice creditors, as Debtor continues making adequate protection payments and maintains productive assets. During this extended period, Debtor will have sufficient time to complete claims analysis after the bar dates expire; allow the real estate broker to start marketing the assets and develop realistic projections; resolve or substantially advance the adversary proceeding against the HOA and against other Defendants; and finalize negotiations with its secured creditor regarding plan treatment. The Debtor also requests that the deadline to procure votes under the Plan be extended for a term of sixty days after the order approving the Disclosure Statement and the confirmation hearing is entered. Concorde Metro Seguros LLC is represented by: Javier Vilarino Vilariño & Associates LLC PO Box 9022515 San Juan, PR 00902-2515 Tel: (787) 565-9894 E-mail: jvilarino@vilarinolaw.com About Concorde Metro Seguros Concorde Metro Seguros LLC is a single-asset real estate debtor, as defined in 11 U.S.C. Section 101(51B). The Company's primary business involves managing the Metro Medical Center in Bayamon, Puerto Rico, which serves as its principal asset. Concorde Metro Seguros LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 25-01269) on March 24, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Debtor is represented by Javier Vilarino, Esq. at Vilarino and Associates LLC. PUERTO RICO: PREPA Bondholders Say Utility Swiped $2.9B ------------------------------------------------------- Emily Lever of Law360 reports that the electric utility for Puerto Rico on Wednesday, July 23, defended itself in New York bankruptcy court from allegations that it had improperly spent its revenues, which bondholders claim as collateral for $8.5 billion worth of bonds. 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. 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