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250903.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, September 3, 2025, Vol. 26, No. 176 Headlines A R G E N T I N A ARGENTINA: Central Bank Raises Banks' Reserve Requirements B R A Z I L BRAZIL: 2026 Budget Bill Projects Primary Surplus of 0.25% of GDP BRAZIL: To Resume Talks Over Free-Trade Agreement w/ Canada REDE D'OR SAO: S&P Rates New Senior Unsecured Notes 'BB+' C H I L E CHILE: Suspends Poultry Imports From Argentina Over Bird Flu D O M I N I C A N R E P U B L I C [] DOMINICAN REPUBLIC: Mining Sector Fuels Economic Growth J A M A I C A JAMAICA: BOJ has Sufficient Foreign Currency Reserve to Meet Demand JAMAICA: Looks to Raise $1.4 Billion Via Treasury Bills JAMAICA: Needs to Further Promote Digital Currency [] JAMAICA: BOJ Generates Net Profits of $21.6BB in 8 Mos. to Aug. - - - - - ================= A R G E N T I N A ================= ARGENTINA: Central Bank Raises Banks' Reserve Requirements ---------------------------------------------------------- globalinsolvency.com, citing Reuters, reports that Argentina's central bank raised its reserve requirements for banks to a level analysts said could risk slowing the economy, a move analysts say aims to soothe markets as the government of President Javier Milei is rocked by corruption allegations ahead of key legislative elections. The 3.5% increase - the third increase in recent weeks - was set to come into force on September 1, affecting a range of existing reserve requirement rates that average around 45%, according to the report. 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 =========== BRAZIL: 2026 Budget Bill Projects Primary Surplus of 0.25% of GDP ----------------------------------------------------------------- Marcela Ayres at Reuters reports that Brazil's 2026 annual budget bill, submitted to Congress, projects a primary surplus of 34.5 billion reais ($6.36 billion) for the central government, equivalent to 0.25% of the country's gross domestic product. The forecast meets the 0.25% of GDP primary surplus target for next year proposed by President Luiz Inacio Lula da Silva's government in April, still pending congressional approval, according to Reuters. The calculation, however, excludes 57.8 billion reais in expenses not counted toward the fiscal target, notably linked to court-ordered payments, the report notes. Without this adjustment, the projection would show a primary deficit of 23.3 billion reais, equivalent to a 0.17% of GDP shortfall, the report notes. Many economists have criticized the exclusion of large expenditures from Brazil's calculation of its primary balance, saying it masks the true fiscal picture even though the practice is legal, the report says. While the government may hit its targets on paper, the exemptions still drive spending and add to the hefty debt of Latin America's largest economy, the report discloses. The Treasury estimated in July that gross debt as a share of GDP - a key fiscal indicator - will have risen more than 10 percentage points under Lula, who took office in 2023, the report recalls. However, the fast-growing cost of pensions and social benefits, reluctance to pursue deeper spending cuts and challenges in raising new revenue led the government to abandon its original plan last year in favor of a more gradual fiscal adjustment, the report adds. 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. BRAZIL: To Resume Talks Over Free-Trade Agreement w/ Canada ----------------------------------------------------------- Buenos Aires Times reports that Mercosur regional trade bloc and Canada will restart negotiations on a free-trade agreement, Brazil confirmed, as tensions rise over US tariffs that have rattled global commerce. Brasilia, which holds Mercosur's rotating presidency, announced that chief negotiators from Canada and the bloc - made up of Argentina, Brazil, Bolivia, Paraguay and Uruguay - will meet in October to relaunch stalled talks, according to Buenos Aires Times. The two sides issued a joint statement calling the move "a timely step towards greater economic diversification," the report notes. "The resumption of trade negotiations between Mercosur and Canada is a clear sign of our shared commitment to deepening mutually beneficial economic ties and opening up new and relevant opportunities," Brazil's Foreign Ministry said in a statement obtained by the news agency. Talks collapsed in 2019 after the seventh round of negotiations, recalls the report. Now, both sides are pressing to revive dialogue amid US President Donald Trump's tariff-driven trade war, the report notes. Earlier this month, Washington slapped 50 percent duties on Brazilian goods, despite its trade surplus with Latin America's largest economy, the report relays. Brazil plans to challenge the surcharges at the World Trade Organisation (WTO), the report discloses. President Luiz Inacio Lula da Silva has vowed to expand trade partnerships beyond the United States, opening new markets for Brazilian exports, the report relays. Canada and Brazil, meanwhile, stressed their "historic commitment to open, fair and sustainable trade" and pledged to pursue joint strategies "to promote bilateral and regional prosperity within the global trading system," he added. Delegations will meet in Toronto in this month to explore fresh opportunities for trade and investment, the report notes. In Brazil's case, the dispute with Washington is further entangled with domestic politics: the US tariffs are partly linked to the coup trial facing former far-right president Jair Bolsonaro, the report notes. Trump has branded the proceedings a "witch hunt" by Brazil's Supreme Court, the report relates. 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 has 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. REDE D'OR SAO: S&P Rates New Senior Unsecured Notes 'BB+' --------------------------------------------------------- S&P Global Ratings assigned its 'BB+' issue-level rating to Rede D'Or Finance S.a.r.l.'s proposed senior unsecured notes, which are unconditionally and irrevocably guaranteed by Rede D'Or Sao Luiz S.A. (BB+/Stable/--). S&P also assigned a '3' recovery rating to the proposed notes, which indicates average recovery prospects of 50%-70% (rounded estimate 50%) in the event of default. The company intends to use the proceeds for general corporate purposes, including capital expenditure (capex), to increase liquidity, and for debt repayment. S&P doesn't expect the issuance to materially affect its current base-case scenario for Rede D'Or and continue to assume the company will use internal cash to finance capex and acquisitions while maintaining a strong liquidity position. Issue Ratings--Recovery Analysis Key analytical factors -- The '3' recovery rating indicates S&P's expectation of 50% recovery prospects for unsecured lenders under a hypothetical default scenario. -- S&P assesses Rede D'Or's recovery prospects using a simulated default scenario with an EBITDA multiple valuation approach. -- In S&P's simulated default scenario, it assumes a payment default in 2030 because of a severe economic slowdown and higher competition, leading to a decline in cash flow. -- In this scenario, S&P estimates that EBITDA would decline 40%-45% from 2025 levels and trigger a payment default. At that level, S&P estimates the company's cash flow might be insufficient to cover interest expenses, debt amortizations, and maintenance capex. -- S&P has valued the company on a going-concern basis using a 5.5x multiple applied to its projected emergence-level EBITDA, which results in an estimated gross enterprise value (EV) of about Brazilian real (R$) 23 billion. Simulated default assumptions -- Jurisdiction: Brazil. -- Simulated year of default: 2030. -- EBITDA at emergence: R$4.2 billion. -- EBITDA multiple: 5.5x. -- Estimated gross EV: R$23 billion. -- Net EV, after 5% administrative expenses: R$22 billion. Simplified waterfall -- Senior secured debt: R$265 million (14th debentures issuance). -- Senior unsecured debt and unsecured claims: R$42.7 billion (existing loans, bonds, certificates of real estate receivables, and acquisitions payable). -- Recovery expectations for the unsecured notes: 50%-70% (rounded estimate: 50%). *Note: All debt amounts include six months of prepetition interest. ========= C H I L E ========= CHILE: Suspends Poultry Imports From Argentina Over Bird Flu ------------------------------------------------------------ AFP News reports that Chile suspended poultry imports from Argentina after detecting an outbreak of avian influenza, while resuming imports from Brazil, its main supplier, which had faced similar restrictions since May. Chile's Servicio Agricola y Ganadero (Agriculture and Livestock Service, SAG) reported the suspension, according to AFP News. Argentina is Chile's third-largest supplier of poultry meat, accounting for eight percent of the total. The Chilean market is led by Brazil, which provides 57 percent of annual shipments, according to official data, the report notes. Imports from Argentina were halted following "the detection of an outbreak of highly pathogenic avian influenza at a commercial laying farm in Los Toldos, Buenos Aires Province," SAG said in a statement, the report relays. After taking a similar measure against Brazil on May 16, SAG lifted the ban on poultry products from that country, the report discloses. Once the Official Gazette of Chile published "the recognition of Brazil as a country free from highly pathogenic avian influenza, poultry imports resumed," the agency stated, the report notes. "This is good news. Smooth communication with Brazil's counterpart institutions allowed for the reopening of a market that is especially significant for domestic poultry consumption," said Agriculture Minister Ignacia Fernandez, as quoted in the statement, the report adds. As reported in the Troubled Company Reporter on Aug. 7, 2024, Fitch Ratings has affirmed Colombia's Long-Term Foreign Currency Issuer Default Rating (IDR) at 'BB+' with a Stable Rating Outlook. =================================== D O M I N I C A N R E P U B L I C =================================== [] DOMINICAN REPUBLIC: Mining Sector Fuels Economic Growth ---------------------------------------------------------- Dominican Today reports that the Mining and Petroleum Chamber (CAMIPE) highlighted the mining sector's strong performance as a key contributor to the Dominican Republic's economic recovery. According to the Central Bank, the national economy grew 2.9% in July, while the mining sector alone expanded 21% that month, accumulating 5.1% growth from January to July, fueled mainly by gold and silver production. Mining exports reached US$1.07 billion by June 2025, a 39.1% increase year-over-year, while fiscal contributions rose to RD$7.597 billion, up 158.9% compared to the previous year, according to Dominican Today. The sector has become the country's third-largest foreign currency earner, following tourism and remittances, and attracted US$175 million in foreign direct investment in the first quarter of 2025, a 390% increase over 2024, the report notes. 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 has Sufficient Foreign Currency Reserve to Meet Demand ------------------------------------------------------------------- RJR News reports that Bank of Jamaica (BOJ) Governor Richard Byles has assured that the bank has sufficient foreign currency reserves to meet demand and help maintain relative stability in the exchange rate. Mr. Byles revealed that as at August 12, Jamaica's gross international reserves stood at US$6.2 billion, a historic high representing 148% of the adequacy benchmark, according to RJR News. He acknowledged that the foreign exchange market had experienced slightly higher than usual volatility in recent months, with the Jamaican dollar depreciating by 2.5% at the end of June compared with December 2024, the report notes. He attributed this to temporary factors, including uncertainty of the global economy, the dollar crossing the psychological $160 to US$1 threshold and a narrowing of the gap between domestic and international interest rates, the report relays. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a positive rating outlook. In October 2023, Moody's upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to B1 from B2, and senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has been changed to positive from stable. In September 2024, S&P affirmed 'BB-/B' longterm foreign and local currency sovereign credit ratings on Jamaica and revised outlook to positive. JAMAICA: Looks to Raise $1.4 Billion Via Treasury Bills ------------------------------------------------------- RJR News reports that the government will be borrowing $1.4 billion as part of the $158.4 billion it plans to raise to help fund this fiscal year's $1.6 trillion budget. The administration will seek $700 million from a 91-day treasury bill and another $700 million from a 182-day treasury bill today, September 3, according to RJR News. The minimum investment is $5,000, and the interest earned will be taxed at 25%, the report notes. The 91-day bill will mature on December 5, while the 182-day bill will mature on March 6, 2026, the report relays. The value of outstanding treasury bills now stands at almost $11 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. JAMAICA: Needs to Further Promote Digital Currency -------------------------------------------------- RJR News reports that the Bank of Jamaica says the amount of digital currency, JAMDEX in circulation climbed by $600,000 to $259.1 million since the start of this year. The bank adds that JAMDEX now accounts for less than one per cent of the total $273 billion in circulation, according to RJR News. Natalie Haynes, Deputy Governor financial markets and payment systems, says the slow growth of JAMDEX means more effort is required to promote its use for day to day transactions, the report notes. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a positive rating outlook. In October 2023, Moody's upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to B1 from B2, and senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has been changed to positive from stable. In September 2024, S&P affirmed 'BB-/B' longterm foreign and local currency sovereign credit ratings on Jamaica and revised outlook to positive. [] JAMAICA: BOJ Generates Net Profits of $21.6BB in 8 Mos. to Aug. ------------------------------------------------------------------ RJR News reports that the Bank of Jamaica generated net profits of $21.6 billion on total assets of $1.24 trillion during the eight-month period ending August 25. The central bank says its total assets for the period included foreign assets of $998.7 billion and local assets of $244.9 billion, according to RJR News. This compares with foreign assets of $812.2 billion and local assets of $275.15 billion for the similar period in 2024, the report notes. Meanwhile, the BOJ says the amount of money in circulation climbed to $277.3 billion during the 8th month period ending August 25 from $255 billion for the similar period last year, the report relays. It also says the value of outstanding fixed rate certificates of deposit will climb to $136 billion or about 4% of GDP on August 29, the report discloses. This follows its latest offer of a 6% fixed rate CD, the report notes. The Bank says it received 349 bids valued at $61.8 billion, although it had only sought to withdraw $51 billion from circulation, the report says. It accepted $284 of those bids, locking away the full $51 billion in an effort to reduce liquidity and ease pressure on the Jamaican dollar, the report relays. The average interest rate demand was 5.9%, 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. ********* 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. 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