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250901.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, September 1, 2025, Vol. 26, No. 174 Headlines A R G E N T I N A ARGENTINA: Boosts its Scrutiny of Repo Loans as Peso Slides BLOCKFI: Seeks Court OK for $13MM Deal After Objector Withdraws [] ARGENTINA: Milei Adds Corruption Scandal to Mounting Woes B R A Z I L REDE D'OR SAO: Fitch Affirms 'BB+' Long-Term IDR, Outlook Stable C O S T A R I C A BANCO DAVIVIENDA: Fitch Affirms BB+ Long-Term IDR, Outlook Negative BANCO DE COSTA: Fitch Affirms 'BB' Long-Term IDR, Outlook Positive BANCO POPULAR: Fitch Affirms 'BB' Long-Term IDR, Outlook Stable COOPERATIVA NACIONAL: Fitch Affirms 'BB-' IDRs, Outlook Stable D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Pig Producers Affected by Swine Fever (ASF) J A M A I C A JAMAICA: BOJ Will Not Scale Back Interventions in Forex Market P U E R T O R I C O PALMAS ATHLETIC: Has Deal on Cash Collateral Access - - - - - ================= A R G E N T I N A ================= ARGENTINA: Boosts its Scrutiny of Repo Loans as Peso Slides ----------------------------------------------------------- Ignacio Olivera Doll at Bloomberg News reports that Argentine authorities are stepping up scrutiny of investor activity in repo loans, the short-term financial instruments that have seen interest rates touch record highs amid a liquidity crunch at the nation's banks. The Central Bank and local regulator CNV asked for help analyzing the real-time data they receive daily from the country's two main exchanges, BYMA and A3, on the short-term instruments known locally as cauciones bursatiles, according to people familiar with the matter. The demand, which came, includes information on volumes, prices, which brokers are trading and on whose behalf, said the people, asking not to be identified because the information isn't public, Bloomberg News relates. It isn't clear if officials plan to take any action, Bloomberg News discloses. Such requests aren't typical under the current government, but were more common during the left-wing administrations of Cristina Fernandez de Kirchner and Alberto Fernandez, Bloomberg News discloses. The Central Bank declined to comment. The Central Bank's push to contain pressure on the peso and inflation ahead of crucial midterm elections in October has left banks and brokers short of local currency and driven interest rates higher, Bloomberg News says. Guaranteed loan rates soared to record levels, with some overnight peso operations climbing above 100 percent annualized, compared with expected inflation of less than 30 percent a year, Bloomberg News relates. Even the Treasury was affected, managing to roll over only 61 percent of its maturing debt and validating rates of almost 70 percent in its most recent auction, Bloomberg News notes. With another auction set, the Central Bank again increased reserve requirements for commercial lenders, though it specified that the new bar can be met by purchases of public debt, Bloomberg News relays. The official peso has now weakened for four consecutive sessions, complicating President Javier Milei's disinflation strategy ahead of elections in Buenos Aires Province next month that will be a bellweather for national midterms in October, Bloomberg News discloses. The slide has occurred despite massive interventions, including record futures sales worth billions of dollars, Bloomberg News says. Economy Minister Luis Caputo said in a post on X that interest rates are high due to political risk and may have "some impact on activity levels in the short term," but added they will be temporary as the upcoming elections will be "very favourable" for the government, Bloomberg News adds. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Javier Milei is the current president of Argentina after winning the November 19, 2023 general election. He succeeded Alberto Angel Fernandez in the position. Argentina has the third largest economy in Latin America. The country's economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. In March 2022, the International Monetary Fund (IMF) approved a 30-month arrangement under an Extended Fund Facility for Argentina in the amount of SDR 31.914 billion (equivalent to US$44 billion, or 1000 percent of quota) -- with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. 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. BLOCKFI: Seeks Court OK for $13MM Deal After Objector Withdraws --------------------------------------------------------------- Katryna Perera of Law360 reports that investors have asked a federal judge to approve their $13.2 million settlement with bankrupt crypto lender BlockFi Inc. after a class member dropped his objections. About BlockFi Inc. BlockFi is building a bridge between digital assets and traditional financial and wealth management products to advance the overall digital asset ecosystem for individual and institutional investors. BlockFi was founded in 2017 by Zac Prince and Flori Marquez and in its early days had backing from influential Wall Street investors like Mike Novogratz and, later on, Valar Ventures, a Peter Thiel-backed venture fund as well as Winklevoss Capital, among others. BlockFi made waves in 2019 when it began providing interest-bearing accounts with returns paid in Bitcoin and Ether, with its program attracting millions of dollars in deposits right away. BlockFi grew during the pandemic years and had offices in New York, New Jersey, Singapore, Poland and Argentina. BlockFi worked with FTX US after it took an $80 million hit from the bad debt of crypto hedge fund Three Arrows Capital, which imploded after the TerraUSD stablecoin wipeout in May 2022. BlockFi had significant exposure to the companies founded by former FTX Chief Executive Officer Sam Bankman-Fried. BlockFi received a $400 million credit line from FTX US in an agreement that also gave FTX the option to acquire BlockFi through a bailout orchestrated by Bankman-Fried over the summer. BlockFi also had collateralized loans to Alameda Research, the trading firm co-founded by Bankman-Fried. BlockFi is the latest crypto firm to seek bankruptcy amid a prolonged slump in digital asset prices. Lenders Celsius Network LLC and Voyager Digital Holdings Inc. also filed for court protection this year. Kirkland & Ellis is also advising Celsius and Voyager in their separate Chapter 11 cases. BlockFi Inc. and eight affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Lead Case No. 22-19361) on Nov. 28, 2022. In the petitions signed by their chief executive officer, Zachary Prince, the Debtors reported $1 billion to $10 billion in both assets and liabilities. Judge Michael B. Kaplan oversees the cases. The Debtors tapped Kirkland & Ellis and Haynes and Boone, LLP, as general bankruptcy counsels; Walkers (Bermuda) Limited as special Bermuda counsel; Cole Schotz, P.C., as local counsel; Berkeley Research Group, LLC as financial advisor; Moelis & Company as investment banker; and Street Advisory Group, LLC, as strategic and communications advisor. Kroll Restructuring Administration, LLC, is the notice and claims agent. [] ARGENTINA: Milei Adds Corruption Scandal to Mounting Woes ------------------------------------------------------------ Manuela Tobias at Bloomberg News reports that reeling from a week of political, economic and financial setbacks in Argentina, President Javier Milei now faces a fresh corruption scandal linked to a top government official. Milei fired Diego Spagnuolo, director of Argentina's ANDIS disability agency after local media published leaked audio messages allegedly discussing bribery in his organization, which he links to the president's sister, Karina Milei, according to Bloomberg News. Judicial authorities confiscated two phones from Spagnuolo's home, as well as a cash counting machine, according to La Nacion newspaper, the report relays. In total, a judge ordered 15 raids to obtain more evidence, Bloomberg News notes. The scandal risks denting the libertarian president's approval rating, which has proved surprisingly resilient despite his aggressive spending cuts, the report discloses. It could also sap some of the momentum he's trying to carry into two crucial electoral challenges, Bloomberg News says. "It's very hard to imagine this won't affect Milei's approval rating," said Lucas Romero, director of Synopsis, a political consultancy firm. "This episode strikes at the core of his public image, that of an outsider who came to correct the corrupt practices of politics," he added. Residents of Buenos Aires Province, who make up nearly 40 percent of Argentina's population and have consistently voted for Milei's Peronist rivals, elect new local councils and provincial legislators on September 7, Bloomberg News relays. That vote will be a key signal to investors of what's to come in late October, when all of Argentina heads to the polls to renew half of the lower house of Congress and a third of the Senate, Bloomberg News says. Opposition lawmakers gathered enough support to reject Milei's veto of a boost to financial aid for the disabled, though the president was spared a similar fate on a much more expensive bill to hike pensions, Bloomberg News discloses. Senators also passed two measures that jeopardize the libertarian's austerity drive: an emergency health-care bill and another to boost spending on public universities, the report relays. Consumer confidence, meanwhile, fell sharply in August and economic activity contracted for a second straight month in June, Bloomberg News discloses. In financial markets, a liquidity squeeze sent interest rates soaring to record highs as the government worked to prop up the peso, clouding the prospects for a quick return to economic growth, Bloomberg News relays. The scandal over the disability agency chief isn't the first to mar Milei's Presidency, Bloomberg News says. The president promoted a memecoin on his social media account in February that quickly collapsed, leading to US$250 million in losses for investors, recalls Bloomberg News. And in April, Bloomberg News reported on paid dinners he and his sister arranged prior to his run for the country's top office that netted them as much as US$20,000 in cash. Milei's popularity has nonetheless held up, the report says. His approval rating edged up to 45.1 percent in July, according to the latest LatAm Pulse survey conducted by AtlasIntel for Bloomberg News, with 47.8 percent of respondents saying they disapproved. In the leaked audio messages, first published by local news site Data Clave, Spagnuolo allegedly says the bribery scheme brings in between US$500,000 and US$800,000 per month, Bloomberg News relays. He attributes the operations to Karina Milei and her close ally Eduardo 'Lule' Menem. The audios also allegedly reveal he told "Javier" about the issue, Bloomberg News notes. The authenticity of the audios has yet to be confirmed, Bloomberg News says. The government's Health Ministry will take control of the agency in the meantime, the presidential press office announced on X in the early hours, before the measure went into effect in the national gazette later that day, Bloomberg News discloses. Milei, who is in Rosario for an event at its stock exchange, hasn't commented on the allegations, Bloomberg News says. "In light of the publicly known events and the evident political use by the opposition in an election year, the President of the Nation has decided, as a preventive measure, to remove Diego Spagnuolo from his position as Executive Director of the National Disability Agency," the press office wrote, Bloomberg News adds. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Javier Milei is the current president of Argentina after winning the November 19, 2023 general election. He succeeded Alberto Angel Fernandez in the position. Argentina has the third largest economy in Latin America. The country's economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. In March 2022, the International Monetary Fund (IMF) approved a 30-month arrangement under an Extended Fund Facility for Argentina in the amount of SDR 31.914 billion (equivalent to US$44 billion, or 1000 percent of quota) -- with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. The upgrade reflects the launch of a new IMF program, among other things. S&P Global Ratings, in February 2025 lowered its local currency sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and its national scale rating to 'SD' from 'raB+'. Moody's Ratings, in January 2025, raised Argentina's local currency ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1 from Caa3. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. =========== B R A Z I L =========== REDE D'OR SAO: Fitch Affirms 'BB+' Long-Term IDR, Outlook Stable ---------------------------------------------------------------- Fitch Ratings has affirmed Rede D'Or Sao Luiz S.A.'s (Rede D'or) Long-Term Foreign and Local Currency Issuer Default Rating (IDR) at 'BB+' and at 'BBB-', respectively. Fitch has also affirmed Rede D'Or's National Long-Term Rating and local debentures ratings at 'AAA(bra)'. Fitch has additionally affirmed Rede D'Or Finance S.a.r.l.'s rating on the unsecured notes at 'BB+' and Rede D'Or's wholly owned subsidiary Hospital Esperanca S.A. and its 5th debentures' National Long-Term Ratings at 'AAA(bra)'. The Rating Outlook for the IDRs and National Long-Term Rating is Stable. Rede D'Or's ratings reflect the positive long-term demand fundamentals of the health care sector, its leading position in Brazil's fragmented hospital industry and its robust financial flexibility and liquidity. Rede D'Or's LT FC IDR is constrained by Brazil's Country Ceiling of 'BB+'. The Stable Outlook includes Fitch's expected improvements in Rede D'Or's operational performance, especially in the insurance segment, combined with a projected reduction in leverage from 2025 onwards. Fitch forecasts a total debt/ adjusted EBITDA ratio around 3.5x by 2026, down from 4.5x in 2024, and net leverage below 2.0x in the rating horizon. Key Rating Drivers Leading Market Position: Rede D'Or owns the largest private hospital network in Brazil, with 79 units—76 wholly owned and three under management—totaling 13,083 beds at the end of June 2025, which represents an estimated 5% market share in terms of total private beds in the country. The company also operates an insurance business that accounted for 56% of consolidated net revenue in the 12 months ended June 30, 2025, with 5.6 million insured members. The large scale and complementarity of its operations provide significant competitive advantages, including cost dilution and enhanced bargaining power with counterparties and the medical community. Deleveraging Trend: The current ratings assume Rede D'Or can maintain gross leverage below 4.0x and net leverage below 2.5x on a recurring basis. Fitch believes Rede D'Or's ability to effectively reduce leverage while managing its business growth in a challenging operating environment is key to the rating. Fitch projects a total debt/ adjusted EBITDA (pre- International Financial Reporting Standards - IFRS-16) around 3.5x by 2026, with net leverage below 2.0x from 2025 onward. This compares to 4.1x and 1.9x on an LTM basis as of June 2025. Operating Margins' Improvement: Fitch projects adjusted consolidated EBITDA margins (pre- IFRS-16) in the range of 17%-19% in 2025 and 2026, up from 16.5% in 2024. The hospital segment margin is expected to be at 24%-25%, which is above its main competitors, supported by Rede D'Or's ability to pass on costs and dilute expenses. The insurance segment margin should range from 9%-10%, compared to 7.6% in 2024, driven by expected improvement in the medical loss ratios (MLRs) to an average of 80%, closer to 1H25 (80.3%), and from 82.4% in 2024, according to Fitch's calculations. Strong CFO Generation: Fitch estimates adjusted EBITDA (pre-IFRS-16) of BRL9.9 billion in 2025 and BRL11.2 billion in 2026, up from BRL8.5 billion in 2024. The consolidation of insurance operations reduced working capital needs due to a decrease in the cash cycle associated with this activity. This, together with lower expected capex over the period, should partially offset cash flow pressures from high interest payments on debt. Fitch's rating case scenario contemplates cash flow from operations (CFO) of BRL6.7 billion in 2025 and between BRL7.5 billion and BRL8.0 billion in 2026, and FCF of BRL2.7 billion in 2025 and between BRL2.0 billion and BRL2.5 billion in 2026. Fitch's assumptions include average annual capex of BRL2.6 billion and dividend payments of BRL1.7 billion in 2025 and equivalent to 50% of the previous year's net income in 2026. Withstanding a Challenging Industry: Rede D'Or mitigates business risks and volatility through its complementary model between hospital operations and health insurance plans that have different (but synergistic) business dynamics. Its large operational scale in the hospital sector, high-quality asset base, and strong reputation with the medical community translate into key competitive advantages, increasing its bargaining power with counterparties. Over the long term, the company should continue to benefit from strong demand fundamentals in the health care sector, driven by population aging and the structural gap between supply and demand for hospital beds in Brazil. Country Ceiling Constraint: Rede D'Or's Long-Term Foreign Currency IDR is constrained by Brazil's Country Ceiling of 'BB+', as its operations are domiciled in the country. The Local Currency IDR of 'BBB-' reflects the resilience of its business to economic crises and the positive long-term outlook for the health care sector. Hospital Esperanca Rating Matches Parent's: Hospital Esperanca's rating reflects Rede D'Or's credit quality in the light of Fitch's Parent and Subsidiary Rating Linkage criteria. Legal incentives between the companies were considered high, supported by the parent's guarantees on the subsidiary's debts and cross-default clauses on Rede D'Or's debts. Strategic and operational incentives were considered both medium, due to Hospital Esperanca's low contribution to Rede D'Or's consolidated revenue and EBITDA. Peer Analysis Compared to the Peruvian health care company Auna S.A. (Auna, IDRs 'B+'/Stable Outlook) and to the main Brazilian hospital groups—Sociedade Beneficente Israelita Brasileira Hospital Albert Einstein (Einstein, National Long-Term Rating AAA(bra)/Stable Outlook), Hospital Mater Dei S.A. (Mater Dei, AA+(bra)/Stable Outlook), Ímpar Serviços Hospitalares S.A. (Ímpar, AA-(bra)/Stable Outlook), and Kora Saúde Participações S.A. (Kora, A-(bra)/Negative Outlook)—Rede D'Or has a more robust operational scale and a more diversified business profile, as well as greater financial flexibility, supported by high cash balances and recurring access to capital and debt markets. Financially, Rede D'Or has net financial leverage ratios similar to Mater Dei, lower than those of Auna, Ímpar, and Kora, and higher than those of Einstein, which has historically maintained net cash position. The hospital sector dynamics in Brazil and its regulatory model are not directly comparable to those of other countries. Nevertheless, Rede D'Or's operating margins and financial indicators stand out as quite solid compared to other hospitals rated in Fitch's global portfolio. Key Assumptions - 10.3 thousand operational beds in 2025 and 11.0 thousand in 2026; - Average bed occupancy rate of 79.5% in 2025 and 2026; - Volume of daily-patients of 3.0 million in 2025 and 3.2 million in 2026; - Average hospital ticket (excluding oncology) of BRL10.4 thousand in 2025 and BRL11.1 thousand in 2026; - Hospital segment EBITDA margins between 24% and 25% in 2025 and 2026; - Average number of insurance users of 5.4 million in 2025 and 5.5 million in 2026; - Average monthly insurance ticket between BRL485 and BRL500 in 2025 and 2026; - Average medical loss ratio of 80% in 2025 and 2026; - Average annual investments of BRL2.6 billion in 2025 and 2026; - Dividend payments of BRL1.7 billion in 2025 and equivalent to 50% of the previous year's net income in 2026. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Deterioration of Rede D'Or's reputation and/or its market position; - Hospital segment EBITDA margin falling below 22% and/or consolidated EBITDA margin below 14%, on a recurring basis; - Gross leverage above 4.0x or net leverage above 2.5x, on a recurring basis; - Deterioration of the strong liquidity position leading to refinancing risks; - Significant legal contingencies that interfere with company operations or materially impact its credit profile. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Positive rating action on the Long-Term Foreign Currency IDR is limited by Brazil's Country Ceiling 'BB+'; - An upgrade of Rede D'Or's Long-Term Local Currency IDR 'BBB-' is unlikely in the medium term, due to its limited geographic diversification and high exposure to Brazil's operating environment; - The company's National Long-Term Rating cannot be upgraded as it is already at the highest level of Fitch's national scale. Liquidity and Debt Structure Rede D'Or's financial flexibility is solid, with proven access to both local and international capital markets. The company has maintained high cash balances even while executing its aggressive growth strategy, and Fitch does not anticipate changes to this approach. As of June 30, 2025, available cash—net of regulatory technical reserves of the insurance business—totaled BRL19.8 billion, against total debt of BRL37.6 billion, mainly comprising local debentures (57%), Real Estate Receivables Certificates (23%), and senior notes maturing in 2028 and 2030 (17%). About 19% of debt was denominated in foreign currencies (USD and EUR), hedged against currency and interest rate mismatches. The company's cash position at the end of June was sufficient to cover debt amortizations through 2029. Rede D'Or does not have committed credit lines. Issuer Profile Rede D'Or is the largest health care conglomerate in Brazil, with 79 hospitals and 13,083 beds, as well as 5.6 million insured members. The company is controlled by the Moll family (47.6%), with the remaining shares held by the market, minority shareholders, management and treasury. Summary of Financial Adjustments - Fitch uses Rede D'Or's consolidated financial statements based on IFRS-4 for Insurance Contracts; - Fitch's adjusted EBITDA metric excludes right-of-use depreciation and financial lease expenses as a proxy for rental expenses in the light of IFRS -16. It also exempts non-recurring and/or non-cash items from the calculation.; - Gross debt includes acquisition-related obligations and the net derivatives. 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 ----------- ------ ----- Rede D'Or Finance S.a. r.l. senior unsecured LT BB+ Affirmed BB+ Hospital Esperanca S.A. Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) Rede D'Or Sao Luiz 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) =================== C O S T A R I C A =================== BANCO DAVIVIENDA: Fitch Affirms BB+ Long-Term IDR, Outlook Negative ------------------------------------------------------------------- Fitch Ratings has affirmed Banco Davivienda (Costa Rica), S.A.'s (Davivienda CR) Long-Term (LT) Foreign Currency (FC) Issuer Default Ratings (IDR) and LT Local Currency (LC) IDR at 'BB+'. Fitch has also affirmed the FC and LC Short-Term (ST) IDRs at 'B', Shareholder Support Rating (SSR) at 'bb+' and Viability Rating (VR) at 'bb-'. The Rating Outlook for the LT FC and LC IDRs is Negative. Key Rating Drivers Shareholder Support-Driven Ratings: Davivienda CR's IDRs, and SSR are based on Fitch's assessment of the ability and propensity of its parent, Banco Davivienda S.A. (Davivienda; BB+/Negative), to provide support, if required. This assessment results in Davivienda CR's LT FC and LC IDRs and Outlook aligned to that of its parent IDRs at 'BB+'/Negative. High Reputational Risk: In the evaluation of propensity to support, Fitch considers with high importance the huge reputational risk that the Davivienda group could face in the event of a possible default of its subsidiary in Costa Rica, with whom it shares the same corporate brand. Strategic Subsidiary; Management Independence: Davivienda's capacity to provide timely support considers Davivienda CR's size, representing approximately 8.2% of the group's consolidated assets. Fitch considers that any support required would likely be manageable for the parent. Although Davivienda CR is integrated within the group, it operates with substantial management independence. Nevertheless, Davivienda's willingness and commitment to supporting Davivienda CR is reflected in the subsidiary's strategic importance to the group as part of its geographic diversification. VR Consolidated Business Profile: Davivienda CR's VR of 'bb-', equal to its implied VR, captures the agency's assessment of its business profile, characterized by its consistent and well-diversified business model between corporate and personal banking, as well as the moderate size of its franchise, as the second-largest private bank in Costa Rica, and which has resulted in a four-year average operating income by USD155 million. Risk Profile Sensitive to Exchange Risk: Fitch evaluates the risk profile at the same level of the operating environment (OE), influenced by the higher than local bank peers to sensitivity to exchange risk, due to Davivienda CR is characterized by the high percentage of its balance in U.S. which results in a balance sheet size and profits that fluctuate due to changes in the exchange rate. Pressured Asset Quality: Banco Davivienda CR's asset quality, historically supported by its controlled risk policy, came under pressure mainly due to a specific credit event, raising the core asset quality metric to 3.1% as of June 2025. Asset quality is expected to remain consistent with current levels, reflecting Fitch's view of healthy non-performing loan (NPL) ratios, low net charge-offs at about 1% of gross loans, adequate NPL reserve coverage at 101.4%, and strong collateral levels. Fitch anticipates that asset quality metrics will normalize, with delinquency rates returning to historical averages. Profitability Still Affected by Exchange Rate Volatility: Since 2023, profitability metrics have been impacted by exchange rate volatility, with operating profit to risk-weighted assets (RWA) at 0.7% as of June 2025 and 0.6% compared to a four-year average (2021-2024) of 1.3%. The agency anticipates that stabilization of the exchange rate will support a recovery in Davivienda CR's profitability. Appropriate Capitalization: Davivienda CR's capitalization ratios have strengthened in recent years, supported by conservative strategies to safeguard capital amid exchange rate volatility, which Fitch views as prudent. As of June 2025, the Fitch Core Capital to RWA ratio was 15.2%. Stable and Diversified Funding Profile: Fitch considers that Davivienda CR's funding and liquidity are managed conservatively, with customer deposits accounting for about 76% of total funding as of June 2025. The bank's loan-to-deposit ratio stood at 111.9%, in line with its historical average (2021-2024: 113%). This profile is further supported by local market issuances, credit lines with financial institutions, and benefits from the bank's affiliation with Davivienda. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A downgrade in Davivienda's IDRs would trigger the same action on Davivienda CR's IDRs and SSR; - Negative changes in Davivienda CR's IDRs and SSR would mirror a more than one notch negative movement in Costa Rica's sovereign ratings and Country Ceiling; - Any perception by Fitch of the parent's significantly reduced propensity to support the subsidiary may trigger a downgrade of IDRs and SSR; - A downgrade of Davivienda CR's VR could result from a material deterioration of the banks' financial performance that drops its FCC/RWA ratio consistently below 10% alongside incurring in operating losses consistently. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - The Negative Outlook on Davivienda CR's IDRs indicate positive rating actions are unlikely in the foreseeable future. The Negative Outlook on Davivienda CR's IDRs would be revised to Stable mirroring the same action on the Outlook of Davivienda's IDR; - Davivienda CR's VR could be upgraded if the bank continues with consistent financial performance metrics, reflected with an operating profit to RWA ratio consistently above 2.0% and an FCC to RWA ratio above 13.5%. VR ADJUSTMENTS The OE Score of 'bb' has been assigned below the 'bbb' category implied score due to the following adjustment reason: Sovereign rating (negative). Summary of Financial Adjustments Prepaid expenses were reclassified as intangibles, and deducted from equity, to reflect their lower loss absorption capacity. Public Ratings with Credit Linkage to other ratings Davivienda CR's ratings are based on the potential support that it would receive from Banco Davivienda, if required. 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 R ating Prior ----------- ------ ----- Banco Davivienda (Costa Rica) S.A. LT IDR BB+ Affirmed BB+ ST IDR B Affirmed B LC LT IDR BB+ Affirmed BB+ LC ST IDR B Affirmed B Viability bb- Affirmed bb- Shareholder Support bb+ Affirmed bb+ BANCO DE COSTA: Fitch Affirms 'BB' Long-Term IDR, Outlook Positive ------------------------------------------------------------------ Fitch Ratings has affirmed Banco de Costa Rica's (BCR) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB' and Short-Term Foreign and Local Currency IDRs at 'B'. The Rating Outlook on the Long-Term IDRs is Positive, mirroring the action on the sovereign. Fitch has also affirmed the bank's Viability Rating (VR) at 'bb' and the Government Support Rating (GSR) at 'bb'. Key Rating Drivers IDRs Driven by Government Support: BCR's IDRs are driven by its GSR of 'bb', which is based on Fitch's assessment about the Republic of Costa Rica's (BCR's sole owner) ability and propensity to provide support to BCR, if required. Fitch's assessment of the government's ability to support is highly influenced by Costa Rica's sovereign rating (BB/Positive). The assessment of the government's propensity to support BCR considers with higher influence the government's sole ownership and sovereign guarantee for BCR as a state-owned bank, established in the National Banking System Law (Article 4). The law states that the government guarantees all non-subordinated liabilities of BCR. This guarantee supports the alignment of BCR's IDR with Costa Rica's sovereign rating. Favorable Operating Environment: Fitch scores Costa Rica's banking Operating Environment (OE) at 'bb' with Positive Outlook, matching the sovereign's Rating Outlook. Costa Rica's robust growth and high per capita income could have a positive effect on the OE score. Fitch estimates the country's GDP per capita at USD18,85k for 2025 and an Operational Risk Index of 60% as of July 2025. Positive macroeconomic dynamics, including robust economic growth (2025 forecast: 3.8%, 2026 forecast: 3.5%), recovering investment, and rising consumer spending should allow banks to maintain consistent business volume. Sound Business Profile: BCR's VR of 'bb' reflects its stable business profile and financial performance, supported by its diversified business model, domestic systemic relevance, and solid market position as Costa Rica's second-largest bank by assets and deposits. BCR's total operating income averaged USD567 million from 2021 to 2024. The Business Profile of 'bb' with Positive Outlook is in line with the revision of the OE score. The bank's high market share as the third-largest bank in terms of loans and second largest in terms of deposits, public nature, and status as a domestic systemically important bank supports Fitch's view that the OE has a significant influence on the bank's business operations, justifying an equalized assessment. Adequate Asset Quality: BCR's asset quality is adequate, reflecting its moderate risk appetite, reasonable impaired loan levels, and moderate borrower concentrations. As of 2Q25, impaired loans to gross loans metric was 2.2%, slightly below its 2021-2024 average of 2.6%. Although these metrics are slightly higher than those of peers with similar ratings and the Costa Rican banking system average, they are consistent with its 'bb' Asset Quality score. Fitch estimates BCR's impairment metrics may slightly increase given the bank's expected growth in retail and small and medium-sized enterprise segments but remain reasonable given its prudent credit risk controls. Gradual Profitability Growth: BCR's profitability rose due to its focus on higher-yield segments, lower funding costs, and reduced effects from exchange rate fluctuations. At 2Q25, its operating profit to risk weighted assets (RWA) metric was 2.1%, above the average of the past four years of 1.8%. For YE25, Fitch expects this ratio to remain around 2%, considering lower financial costs, increased fees and commissions and impairment charges in line with the loan portfolio growth. For YE25, Fitch expects BCR's operating profit metric to remain around 2%, in line with its current 'bb-' score. Good Capitalization: BCR's capitalization metrics are good, underpinned by the bank's steady income generation and adequate risk management. As of 2Q25, BCR's Fitch Core Capital (FCC) to RWA ratio was 15% (YE 2024: 15.5%) at the consolidated level, comparable to those of similarly rated banks. Considering BCR's growth prospects and stable asset quality and income generation, Fitch expects BCR's FCC to RWA ratio to stabilize around 15% at YE 2025, commensurate with its current score of 'bb'. Solid Funding Sources: In Fitch's opinion, BCR's robust franchise and a stable deposit base, along with its diversified funding sources from international and local markets contribute reasonable liquidity and will continue to underpin its funding and liquidity score of 'bb' over the rating horizon. Its sound funding structure compares well with those of some its rating peers. As of 2Q25, the loans to deposits ratio was 83.1% (average 2021-2023: 83%), which is similar to the banking system average of 86.2%. Fitch expects a slight increase in the loans to deposit metric for YE 2025, given the bank's higher growth prospects in loans over deposits. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - BCR's IDRs and GSR will be downgraded in the event of a downgrade in Costa Rica's sovereign rating. - BCR's VR will be downgraded if Fitch's assessment of the Costa Rican OE is revised downward or a material deterioration in the asset quality weakens BCR's financial profile and Fitch's assessment of the bank's risk profile; specifically, if the operating profits to RWA ratio declines consistently below 1.25% and the FCC to RWA ratio declines to a level consistently below 12%. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - BCR's IDRs, VR and GSR could be upgraded in the event of an upgrade of Costa Rica's sovereign rating. - An upward revision of Fitch's assessment of the Costa Rican OE in conjunction with a consistent financial performance and business profile could lead to an upgrade of BCR's VR, because the sovereign rating acts as a cap to the bank's VR. VR ADJUSTMENTS The OE score of 'bb' has been assigned below the 'bbb' category implied score due to the following adjustment reason: Sovereign Rating (negative). Summary of Financial Adjustments Fitch calculated the consolidated RWAs and related metrics by using BCR's individual RWAs and those of its main subsidiary, BICSA. Pre-paid expenses and other deferred assets were reclassified as intangible and deducted from total equity in order to calculate FCC. Public Ratings with Credit Linkage to other ratings BCR's IDRs and GSR are linked to Costa Rican Sovereign ratings 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 ----------- ------ ----- Banco de Costa Rica LT IDR BB Affirmed BB ST IDR B Affirmed B LC LT IDR BB Affirmed BB LC ST IDR B Affirmed B Viability bb Affirmed bb Government Support bb Affirmed bb BANCO POPULAR: Fitch Affirms 'BB' Long-Term IDR, Outlook Stable --------------------------------------------------------------- Fitch Ratings has affirmed Banco Popular y de Desarrollo Comunal's (BPDC) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB' and Short-Term Foreign and Local Currency IDRs at 'B'. The Rating Outlook for the long-term rating is Stable. Fitch has also affirmed the bank's Viability Rating (VR) at 'bb' and Government Support Ratings (GSR) at 'bb-'. Key Rating Drivers Ratings Driven by Intrinsic Profile: BPDC's IDRs reflect its intrinsic creditworthiness, as shown in its 'bb' VR. The VR captures the benefits from the bank's public status, consistent business profile and sound capital metrics. It also considers adequate asset quality and modest profitability. Favorable Operating Environment: Fitch assesses Costa Rica's banking operating environment at 'bb' with a Positive Outlook, in line with the sovereign's Outlook. The country's robust growth and high per capita income may positively affect the OE. Fitch estimates Costa Rica's 2025 GDP per capita at USD18,850 and its Operational Risk Index at 60% as of July 2025. Positive macroeconomic trends, including robust economic growth (2025F: 3.8%, 2026F: 3.5%), recovering investment and rising consumer spending, should help banks maintain consistent business volume. Public Nature Benefits Business Profile: BPDC's public status boosts some financial metrics, notably capitalization, which benefits from consistent inflows though mandatory contributions from Costa Rican employers. The bank's strong market position in Costa Rica leads to high credit and deposit market shares. Deposits also benefit from mandatory savings by the national workforce. Adequate Asset Quality: Fitch considers BPDC's asset quality adequate, supported by controlled overdue loan indicators (loans past due over 90 days), low debtor concentration, and sufficient reserve coverage. As of June 2025, the bank's overdue loan ratio improved slightly to 2.4% from 2.5% in December 2024. Although the indicator remains stable, payment challenges persist, mainly in the consumer segments. Fitch expects this ratio to stay close to or below 2.5%. Limited but Improved Profitability: BPDC's profitability is trending upward but remains constrained, with limited data available over six-months. As of June 2025, annualized operating profit over risk-weighted assets (RWA) indicator reached 1.28% (2024: 0.82%). Funding and operating expense pressures are easing, but credit provisioning costs remain high. Profitability metrics are still below the 2021-2024 average of 1.74%. Despite the positive trend, BPDC continues to face the challenge of further improving portfolio quality and related credit provisions. Solid Capitalization: Fitch views capitalization as BPDC's strongest financial factor. As of June 2025, Fitch's core capital to RWA ratio was 24.6%, higher than local and international peers. This strong capitalization supports above-average loan portfolio growth, demonstrated by partial acquisition of Cooperativa de Ahorro y Crédito de los Servidores Públicos, R.L. (Coopeservidores) in 2024. High core capital and broad reserve coverage provides strong loss-absorption capacity if asset quality deteriorates. Fitch expects BPDC to maintain high capitalization due to its business model and mandatory contributions from Costa Rican employees and employers. Reasonable Funding Profile: Fitch considers BPDC's funding profile reasonable, supported by a broad deposit base, bilateral loans, and local debt issuances. Customer deposits benefit from mandatory contributions by the national workforce. Liquidity management is adequate, providing a reasonable capacity to meet debt maturities over the next 12 months. As of June 2025, BPDC's loan-to-customer-deposit ratio was 124.5%, higher than its peers. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - IDRs and VR could be downgraded if sustained deterioration in financial performance drives a material deterioration in asset quality and a decline in the bank's operating profit to RWA metric to a level continuously below 1.25%. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - The bank's IDRs and VR could be upgraded if both Costa Rica's sovereign rating and OE score's Positive Outlook result in an upgrade, and if the operating profit to RWA ratio improves and stabilizes to at least 2%. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS Government Support Rating Fitch believes the bank's 'bb-' GSR, one notch below the sovereign IDR, reflects the limited probability of support from the Costa Rican government and its current ability to support the bank. Despite the bank's legally protected public nature and systemic importance, there is no explicit government guarantee that would likely lead to the equalization of the ratings, as is the case of the largest state-owned bank peers. OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES The GSR is sensitive to a change in the sovereign rating, as well as to its propensity to provide support. The GSR could be upgraded if Costa Rica's sovereign rating is upgraded. VR ADJUSTMENTS The OE score of 'bb' has been assigned below the 'bbb' category implied score due to the following adjustment reason: sovereign rating (negative). Summary of Financial Adjustments All intangible assets were deducted from total equity to obtain the Fitch Core Capital since the agency believes these are of low loss absorption capacity. Public Ratings with Credit Linkage to other ratings BPDC's GSR is linked to the Costa Rican sovereign rating. 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 ----------- ------ ----- Banco Popular y de Desarrollo Comunal LT IDR BB Affirmed BB ST IDR B Affirmed B LC LT IDR BB Affirmed BB LC ST IDR B Affirmed B Viability bb Affirmed bb Government Support bb- Affirmed bb- COOPERATIVA NACIONAL: Fitch Affirms 'BB-' IDRs, Outlook Stable -------------------------------------------------------------- Fitch Ratings has affirmed Costa Rican-based Cooperativa Nacional de Educadores, R.L.'s (Coopenae, R.L.) Long- and Short-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB-' and 'B', respectively. Fitch has also affirmed Coopenae's Viability Rating (VR) at 'bb-' and Government Support Rating (GSR) at 'ns'. The Rating Outlook for the Long-Term IDRs is Stable. Key Rating Drivers VR drives IDRs: Coopenae's IDRs are anchored by its 'bb-' VR, reflecting the positive operating environment (OE) for Costa Rican banks, Coopenae's focus as a savings and credit cooperative, strong asset quality, solid capitalization, improving profitability, and sufficient liquidity management. Leadership Among Costa Rican Cooperatives: Fitch's assessment of Coopenae's business profile is supported by its four-year total operating income of USD92 million and its strong position within the Costa Rican cooperative sector, with market shares of approximately 23% in assets and deposits, and 21% in terms of loans. This solid franchise enables Coopenae to maintain stable earnings even during challenging market conditions for cooperatives. However, Fitch's assessment also considers its limited participation in broader financial system, with a market share of 2.4% as of the same date. Good Asset Quality: Fitch believes Coopenae's asset quality is well managed. As of June 2025, the core metric of non-performing loans to gross loans was 1.6%, with a strong reserve coverage of 218%. Fitch anticipates asset quality will remain stable, supported by the low proportion of restructured loans (below 1.0% of gross loans) and contingent on the continued strength of the local economy to support borrowers' repayment capacity. Improving Profitability: Coopenae's operating profit to risk-weighted assets (RWA) improved to 1.8% as of June 2025, up from 1.4% at year-end 2024 and a four-year average (2021-2024) of 1.2%. This was mainly driven by a stronger net interest margin of 6%, reflecting lower funding costs. Fitch expects further improvement in profitability, supported by lower passive interest rates and controlled operational efficiency. Robust Capitalization: As of June 2025, Coopenae's Fitch Core Capital (FCC) to RWA ratio stood at 23.1%, indicating a robust capital position and a substantial buffer against unforeseen losses. The cooperative's capital structure is reinforced by non-redeemable capital contributions, which persist even in the event of member withdrawals, thereby providing a unique and stable capital buffer which enhances the capital base and safeguards against potential outflows. Considering the sustained strengthening of its capital, Fitch has upgraded Coopenae's capital and leverage score from 'bb' to 'bb+'. The capitalization remains solid and is expected to remain stable, aligned with recent year-end levels, and supported by business growth and stronger internal capital generation. Deposit-Based Funding: Coopenae's funding profile is stable, primarily supported by member deposits, with term deposits making up over 80% of the total. Customer deposits represent 88.1% of total non-equity funding, and the gross loans to customer deposits ratio is 104.9%. Despite continued recovery in deposits following previous events in the non-banking financial system, Fitch views Coopenae's liquidity management as adequate to address potential outflows. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A downgrade in Coopenae's IDRs and VR could result from a sustained deterioration in asset quality, coupled with a consistent lower operational profit to RWA continuously below 0.5%. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Coopenae's IDRs and VR could be upgraded if there is an enhancement of its TOI generation, allowing Coopenae to achieve higher profitability reflected in an operating profit to RWA indicator consistently above 2.0%, along with a controlled asset quality. GSR: The GSR of 'ns' reflects that external support cannot be relied upon given that Coopenae is not systematically important. Its share of total assets accounted for close to 4% of the financial system which is considered low. Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - There is no downside potential for GSR because this is the lowest level in the respective scale. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - As Coopenae is not a systematically important financial entity, an upgrade in GSR is unlikely. VR ADJUSTMENTS The OE score of 'bb' has been assigned below the implied score of 'bbb' due to the following adjustment: Sovereign Rating (negative). The Capitalization and Leverage score of 'bb+' as been assigned below the implied score of 'bbb' due to the following adjustment: Capital Size (negative). Summary of Financial Adjustments Pre-paid expenses and deferred charges were reclassified as intangible and deducted from total equity to reflect its low losses absorption capacity. 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 ----------- ------ ----- Cooperativa Nacional de Educadores, R.L. (Coopenae, R.L.) LT IDR BB- Affirmed BB- ST IDR B Affirmed B LC LT IDR BB- Affirmed BB- LC ST IDR B Affirmed B Viability bb- Affirmed bb- Government Support ns Affirmed ns =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Pig Producers Affected by Swine Fever (ASF) --------------------------------------------------------------- Dominican Today reports that the General Directorate of Livestock (Digega) has completed the first phase of distributing checks to pig producers affected by African Swine Fever (ASF), as part of the Government's compensation plan. The Director of Livestock, Abel Madera, reported that he delivered approximately RD$12 million to pig farmers in various areas of the country, according to Dominican Today. He stated that the compensation process aims to respond promptly to pig farmers whose production was affected by the health measures implemented by authorities to contain the disease, thereby ensuring the sustainability of the industry and Dominican food security, the report relays. He emphasized that this first phase represents a fulfilled commitment to producers, and the program will continue until it covers all affected areas, the report notes. He stated that "our goal is to ensure that no producer is left without Government support. ASF is a challenge we have faced responsibly, and with this compensation, we ensure that pig farmers can recover and continue contributing to national agricultural development." The official urged pig farmers to stay informed and comply with established protocols without exception, the report discloses. Madera indicated that the initiative has a total investment of RD$110 million, benefiting 19 producers with RD$6,592,000, the report says. It is part of the country's comprehensive efforts to eradicate the disease, strengthen biosecurity, and protect domestic pork production, the report notes. With this first phase, the Government reaffirms its commitment to the agricultural sector, guaranteeing not only compensation but also the necessary resources to support it, 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. ============= J A M A I C A ============= JAMAICA: BOJ Will Not Scale Back Interventions in Forex Market -------------------------------------------------------------- RJR News reports that Bank of Jamaica Governor Richard Byles has declared that the central bank will not be taking the International Monetary Fund's advice to scale back its interventions in the foreign exchange market, insisting that intervention remains the best way to stabilise the exchange rate. The IMF, in its most recent Article Four Consultation, had recommended that the Bank reduce the amount of foreign exchange cambios and authorised dealers are required to submit, and cut back its buying and selling activities, according to RJR News. Cambios must submit 15 per cent of their foreign currency purchases to the Central Bank, while commercial banks must submit 20 per cent, the report notes. Mr. Byles says he and his team believe the strategy is working, saying it has helped to prevent erratic short-term swings in the exchange rate, the report relays. He adds that, since the introduction of the B-FIXITT intervention tool in 2017, the Bank has sold US5 billion to the market while boosting net international reserves by US1 billion last year, bringing the NIR to US$6.1 billion, the report adds. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a positive rating outlook. In October 2023, Moody's upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to B1 from B2, and senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has been changed to positive from stable. In September 2024, S&P affirmed 'BB-/B' longterm foreign and local currency sovereign credit ratings on Jamaica and revised outlook to positive. ===================== P U E R T O R I C O ===================== PALMAS ATHLETIC: Has Deal on Cash Collateral Access --------------------------------------------------- Palmas Athletic Club Corp. and UBS Trust Company of Puerto Rico advise the U.S. Bankruptcy Court for the District of Puerto Rico that they have reached an agreement regarding the Debtor's use of cash collateral and now desire to memorialize the terms of this agreement into an agreed order. The Debtor, which owns and operates real estate and recreational facilities at Palmas del Mar, Puerto Rico, including golf courses, a clubhouse, beach facilities, and a racquet centerâ€"filed for Chapter 11 bankruptcy on August 4. The case arises from longstanding financial obligations dating back to a 2000 AFICA bond issuance of $30 million, which funded the development of the property. These obligations, originally owed by the Debtor's predecessor, PCCI, were assumed by the Debtor in 2010, including multiple mortgages and related financial instruments. In 2023, following a PROMESA restructuring, UBS assumed TDF's rights under these financial agreements. The stipulation outlines that the Debtor may use $2,388,440 of cash collateral over a three-month period ending November 18, strictly for budgeted operating expenses, subject to oversight and detailed financial reporting. As part of this arrangement, the Debtor agrees to provide UBS with monthly adequate protection payments of $25,000, replacement liens on post-petition assets, and a super-priority claim in favor of UBS to cover any loss in collateral value. The Debtor also waives any rights to surcharge the collateral under 11 U.S.C. Section 506(c), grants cross-collateral rights, and affirms UBS's right to credit bid in any asset sale. A court hearing was scheduled for August 26. UBS is represented by: Eric Perez-Ochoa, Esq. ADSUAR P.O. Box 70294 San Juan, PR 00936-8294 Tel: 787.756.9000 Fax: 787.756.9010 epo@amgprlaw.com A copy of the motion is available at https://urlcurt.com/u?l=GRgBv1 from PacerMonitor.com. About Palmas Athletic Club Corp. Palmas Athletic Club Corp. owns and operates a 420-acre recreational property within Palmas Del Mar Resort in Humacao, Puerto Rico. The site includes two 18-hole golf courses, a 22,200-square-foot clubhouse, a 5,600-square-foot beach clubhouse, and related facilities. Palmas Athletic Club sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 25-03489) on August 4, 2025. In its petition, the Debtor reports total assets of $16,793,944 and total liabilities of $36,514,983. Judge Maria De Los Angeles Gonzalez oversees the case. The Debtor is represented by Charles A. Cuprill Hernandez, Esq., at Charles A. Cuprill, PSC, LAW OFFICES. The Debtor's Financial Consultant is CPA Luis R. Carrasquillo & Co, PSC. ********* 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 * * *