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       T R O U B L E D   C O M P A N Y   R E P O R T E R

                 L A T I N   A M E R I C A

          Tuesday, September 16, 2025, Vol. 26, No. 185

                           Headlines



A R G E N T I N A

ARGENTINA: Vaca Muerta Faces Funding Collapse After Defeat


B R A Z I L

BRAZIL: Clamps Down on Illegal Rio de Janeiro Crypto Mining Ops
BRAZIL: High Interest Rates Grind Factories to a Halt


C O L O M B I A

COLOMBIA: DBRS Cuts Issuer Ratings to BB(high)


C O S T A   R I C A

BANCO NACIONAL DE COSTA RICA: S&P Assigns 'BB-/B' ICRs


G U A T E M A L A

ENERGUATE TRUST 2: Moody's Rates Up to $700MM New Unsec. Notes Ba2
GUATEMALA: Economy Growth is Expected to Hold at 3.8% in 2025


H O N D U R A S

HONDURAS: S&P Affirms 'BB-/B' Sovereign Credit Ratings


J A M A I C A

JAMAICA: DBJ to Provide New Financing for MSMEs


M E X I C O

CONTRATO DE FIDEICOMISO CIB4323: Moody's Cuts Secured Notes to B3
POINSETTIA FINANCE: Moody's Ups Rating on $530.8MM Sec. Notes to B1


P U E R T O   R I C O

ASOCIACION HOSPITAL: Hires Lugo Mender Group as Bankruptcy Counsel
OMEGA INVESTIGATION: Hires Alexis Fuentes-Hernandez as Counsel


U R U G U A Y

URUGUAY: Digital Currency Plans Signal Shift Toward Finc'l Control
URUGUAY: Minister Oddone Shuns Chainsaw for Modest Tax Hikes

                           - - - - -


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A R G E N T I N A
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ARGENTINA: Vaca Muerta Faces Funding Collapse After Defeat
----------------------------------------------------------
Juan Martinez at Rio Times Online reports that Argentina's Vaca
Muerta shale formation holds the world's second-largest gas
reserves and fourth-largest oil deposits in an area the size of
Belgium.

This geological treasure could generate $30 billion in annual
exports by 2030, transforming the South American nation from energy
importer to global supplier, according to Rio Times Online.
However, a crushing electoral defeat has frozen the financing that
made this dream possible, the report notes.

President Javier Milei's libertarian coalition lost Buenos Aires
province elections on September 8 by 13 percentage points to the
opposition Peronists. Markets reacted immediately and brutally, the
report relays.

The peso dropped 6% against the dollar, stocks crashed 13% in one
session, and country risk jumped above 1,000 points for the first
time in nearly a year, the report discloses.

This financial panic matters because Vaca Muerta companies had
raised a record $9.8 billion in debt during the first half of 2025
when borrowing costs were manageable, the report notes.

The report discloses that energy giants YPF, Tecpetrol, Vista
Energy, and Pluspetrol secured international funding at rates
around 7.6% when country risk stayed below 701 points. Now those
financing windows have slammed shut.

Ricardo Markous, CEO of Tecpetrol, acknowledged the crisis during
Argentina's biggest oil expo, the report relays.  His company needs
external funding beyond cash flow to grow, but will wait for
economic stability before returning to markets, the report says.

The math is stark: borrowing at current rates of 8.5% costs 200
basis points more than stable countries like Peru, enough to drill
30 fewer wells, the report notes.

The real damage extends beyond major oil companies to the backbone
of the industry. Small service companies that provide drilling
equipment, transportation, and technical support are operating at
half capacity, the report notes.

Leonardo Brkusic from the oil services association GAPP reports
that 30% of companies work at just 50% capacity, with shift
suspensions, layoffs, and early vacations becoming common, the
report discloses.

These smaller firms face a perfect storm. Conventional oil
production has declined, eliminating half their market, the report
says.  Import liberalization brought Chinese competitors offering
cheaper services, the report relays.

Meanwhile, state oil company YPF exited mature fields, reducing
demand for traditional services, the report notes.  Despite
financing troubles, Vaca Muerta achieved remarkable production
growth in 2025, the report relates.

         Vaca Muerta Fuels Record Oil and Gas Output

Oil output surged 26% to 447,000 barrels daily, while gas
production rose 16% year-over-year. The formation now provides over
62% of Argentina's total oil production, the highest ratio on
record, the report notes.

Critical infrastructure projects continue advancing, the report
says.  The $2.5 billion VMOS pipeline secured $2 billion in
financing from international banks including Citi and Deutsche
Bank, the report relays.

The 437-kilometer pipeline will transport 550,000 barrels daily
once operational by late 2026, connecting Vaca Muerta to Atlantic
export terminals, the report discloses.

Energy officials project Argentina's energy trade balance will turn
positive by $20-25 billion within five years, the report notes.
The country already expects an $8 billion energy surplus in 2025,
up from $5.7 billion last year, the report says.

Wood Mackenzie forecasts gas production could peak at 180 million
cubic feet daily by 2040, positioning Argentina as a major regional
supplier and LNG exporter, the report notes.

The electoral setback reveals deeper challenges facing emerging
market investments, the report says.  International companies like
Chevron and TotalEnergies demand policy stability and foreign
exchange liberalization, the report relays.

They need assurance that investments worth billions can generate
returns without political interference, the report notes.  Vaca
Muerta's geological advantages remain unchanged, the report
relates.

The US Energy Information Administration estimates 16.2 billion
barrels of recoverable oil and 308 trillion cubic feet of natural
gas lie beneath Patagonian soil, the report discloses.

These resources rival Texas's Eagle Ford formation, one of
America's most productive shale plays, the report notes.  The
formation's success depends on Argentina's ability to maintain
market-friendly policies and restore investor confidence, the
report says.

The next few months will determine whether the country can complete
infrastructure projects like VMOS and regain access to
international capital markets at reasonable rates, the report
relays.

For Argentina, Vaca Muerta represents more than energy resources.
It offers a path to economic stability, foreign currency earnings,
and reduced import dependence, the report notes.

The recent political shock tests whether the country can provide
the predictability that massive energy investments require, the
report discloses.  The stakes extend beyond Argentina's borders,
the report says.

Global energy markets need new suppliers as geopolitical tensions
disrupt traditional trade flows, the report says.  Vaca Muerta
could help fill that gap, but only if Argentina proves it can
balance democratic politics with investor demands for stability,
the report adds.

                  About Argentina

Argentina is a country located mostly in the southern half of South
America. Its capital is Buenos Aires. Javier Milei is the current
president of Argentina after winning the November 19, 2023 general
election. He succeeded Alberto Angel Fernandez in the position.

Argentina has the third largest economy in Latin America.  The
country's economy is an upper middle-income economy for fiscal year
2019, according to the World Bank.  Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.

In March 2022, the International Monetary Fund (IMF) approved a
30-month arrangement under an Extended Fund Facility for Argentina
in the amount of SDR 31.914 billion (equivalent to US$44 billion,
or 1000 percent of quota) -- with an approved immediate
disbursement of an equivalent of US$9.65 billion.  Argentina's
IMF-supported program sought to improve public finances and start
to reduce persistent high inflation through a multi-pronged
strategy.

On April 11, 2025, the IMF further approved a 48-month Extended
Fund Facility (EFF) arrangement for Argentina totaling US$20
billion (or 479 percent of quota), with an immediate disbursement
of US$12 billion, and a first review planned for June
2025 with an associated disbursement of about US$2 billion.  The
program is expected to help catalyze additional official
multilateral and bilateral support, and a timely re-access to
international capital markets.

Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term
Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to
'CCC+' from 'CCC'.  The upgrade reflects the launch of a new IMF
program, among other things.  S&P Global Ratings, in February 2025
lowered its local currency sovereign credit ratings on Argentina to
'SD/SD' from 'CCC/C' and its national scale rating to 'SD' from
'raB+'.  Moody's Ratings, in January 2025, raised Argentina's local
currency ceiling to B3 from Caa1 and the foreign currency ceiling
to Caa1 from Caa3.  DBRS, Inc. upgraded Argentina's Long-Term
Foreign and Local Currency Issuer Ratings to B (low) from CCC in
November 2024.




===========
B R A Z I L
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BRAZIL: Clamps Down on Illegal Rio de Janeiro Crypto Mining Ops
---------------------------------------------------------------
globalinsolvency.com, citing Decrypt.com, reports that as
neighbouring countries like Paraguay and Venezuela deal with the
impact of illegal crypto mining, a man has been arrested in the
state of Rio de Janeiro in Brazil on charges of siphoning off-grid
electricity to mine cryptocurrencies.

The incident occurred in the Freguesia area, on Governador Island,
an island in the north of the state, according to
globalinsolvency.com.

According to communications from local police, officers found
several high-performance machines used for digital mining and that
the house had electricity but no meter, indicating illegal theft,
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: High Interest Rates Grind Factories to a Halt
-----------------------------------------------------
Rio Times Online reports that Brazil's official statistics agency
reports that industrial output fell by 0.2% in July 2025,
continuing a four-month slump for the nation's factories.

This figure marks the longest period without industrial growth
since early 2023 and leaves overall production 15.3% below its 2011
record, while sitting just 1.7% above pre-pandemic levels as
measured by IBGE, according to Rio Times Online.

Industry declined across 13 of 25 tracked sectors in July, the
report notes.  Metalwork dropped 2.3%, heavy vehicles fell 5.3%,
printing and recorded media lost 11.3%, and beverages contracted by
2.2%, the report relays.

At the same time, the pharmaceutical sector rose 7.9% and food
manufacturing increased by 1.1%, the report says.  These gains
failed to offset widespread slowdowns, the report discloses.

The real story is the impact of high interest rates, the report
relays.  Brazil's central bank keeps its Selic rate at 15% per
year—a peak last seen in 2006—in a bid to contain inflation,
which now stands at an annual 5.23%, already above the official
target, the report discloses.

This tight policy raises borrowing costs for businesses and
families, making it tougher to buy equipment, modernize plants, or
even purchase everyday goods, the report relays.  With less money
flowing through the economy, industrial orders shrink and producers
cut output, the report notes.

Adding to this drag, many Brazilian factory owners watched US trade
policy closely as new tariffs on exports approached in August, the
report discloses.  Some firms braced for weaker North American
demand, holding back production even before any official change in
rules, the report says.

IBGE officials say most of the slowdown traces mainly to domestic
interest rates, not international trade—at least for now, the
report relays.  From April to July, Brazil's overall industry
shrank by 1.5%—a stark turnaround after a patch of mild
expansion, the report discloses.

The report notes that this puts the country's manufacturers in a
tough spot: they face higher input prices, relentless borrowing
costs, and uncertain foreign demand.

For business leaders and policymakers, keeping an eye on interest
rates and trade policies will prove vital in the coming months, the
report says.  Decisions made now—on investments, hiring, and
exports -- will determine whether Brazil's factories stay stuck or
finally rebound, the report discloses.

            Key Figures and Regional Highlights

In the monthly comparison (July 2025 vs. June 2025), national
industrial production declined by 0.2%. Among the fifteen regions
surveyed:

Regions with significant declines:

    -- Parana: –2.7%
    -- Bahia: –2.6%
    -- Minas Gerais: –2.4%
    -- Para: –2.1%
    -- Mato Grosso: –1.6%
    -- Northeast region (aggregate): –1.1%
    -- Ceara: –0.3%
    Regions with growth:
    -- Espirito Santo: +3.1%
    -- Rio Grande do Sul: +1.4%
    -- Santa Catarina: +1.1%
    -- Rio de Janeiro: +1.0%
    -- Pernambuco: +0.9%
    -- Sao Paulo: +0.9%
    -- Goias: +0.5%
    -- Amazonas (Manaus Free Trade Zone): No change (0.0%).

In the year-over-year comparison (July 2025 vs. July 2024),
industrial production in Brazil edged up by 0.2%, with eight of
eighteen regions posting increases, the report discloses.  Notable
annual performances:

Top annual gains:

    -- Espirito Santo: +14.5%
    -- Rio de Janeiro: +10.4%
    -- Largest annual declines:
    -- Rio Grande do Norte: –19.1%
    -- Mato Grosso: –14.6%

                          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 O L O M B I A
===============

COLOMBIA: DBRS Cuts Issuer Ratings to BB(high)
----------------------------------------------
DBRS, Inc. downgraded the Republic of Colombia's Long-Term Foreign
and Local Currency - Issuer Ratings to BB (high) from BBB (low).
At the same time, Morningstar DBRS downgraded the Republic of
Colombia's Short-term Foreign and Local Currency -Issuer Ratings to
R-3 from R-2 (middle).  The trend on all ratings remains Negative.

KEY CREDIT RATING CONSIDERATIONS

The downgrade of Colombia's credit ratings to BB (high) is due to
1) a deterioration in government finances, and 2) Morningstar DBRS'
assessment of weaker medium-term growth prospects. The central
government posted a fiscal deficit of 6.7% of GDP in 2024, well
above budget projections, and is anticipating shortfalls of 7.1% in
2025 and 6.2% in 2026. The deficits reflect material upward
revisions relative to projections at the start of the year. Large
fiscal deficits have contributed to higher public debt and, without
a sizable fiscal consolidation, public debt dynamics are set to
worsen. In addition, lower levels of investment have weakened
Colombia's medium-term growth outlook. The investment rate over the
last three years (2023-2025) has been nearly 5 percentage points
lower than the decade prior to the pandemic (2010-2019). The rating
action reflects deterioration in two building blocks: "Fiscal
Management and Policy" and "Economic Structure and Performance."

The Negative trend reflects Morningstar DBRS' assessment that there
are material downside risks to the fiscal outlook. Congressional
elections will be held in March 2026 and the presidential election
will take place in May 2026. Colombia has a long history of prudent
fiscal management through the election cycle. However, the next
administration's willingness and ability to implement a large
fiscal adjustment in the post-election political environment is
uncertain. In the meantime, the prospect of pre-election fiscal
slippage is high, in our view. Fiscal data through June suggests
upside risks to the 2025 deficit unless the government curtails
spending. In addition, the Petro administration's 2026 budget
proposal assumes passage of a financing bill worth 1.4% of GDP in
additional revenue. The bill looks unlikely to secure Congressional
approval heading into an election year.

The BB (high) credit ratings are supported by Colombia's record of
sound macroeconomic policymaking. A credible inflation-targeting
regime has delivered price stability for more than two decades.
Exchange rate flexibility and sound financial regulation also
bolster the economy's resilience to shocks. The credit ratings are
constrained by Colombia's governance challenges and challenging
fiscal outlook.

CREDIT RATING DRIVERS

The credit ratings could be downgraded if the next administration
fails to put in place a fiscal adjustment plan that materially
improves the outlook for public finances.

The trend could revert to Stable if the government implements a
credible fiscal consolidation that puts public finances on a more
sustainable path. The credit ratings could be upgraded if the
public debt-to-GDP ratio is put on a clear downward trajectory and
medium-term growth prospects strengthen on the back of supply-side
improvements in the economy.

CREDIT RATING RATIONALE

The Fiscal Picture is Deteriorating

The government revealed in the June 2025 Medium-Term Fiscal
Framework that the fiscal deficit is expected to widen to 7.1% of
GDP in 2025, up from 6.7% in 2024. The 2025 deficit, which would be
the second highest in the last 30 years, marks a material
deterioration relative to the government's previous projection of
5.1%. The fiscal imbalance is not only large but structural in
nature, as the economy is running close to capacity. Moreover,
risks to the forecast are to the upside. Revenues appear to be
underperforming budget expectations through June, which could force
the government to curb spending in the second half of the year or
run a higher deficit.

The Petro administration has submitted a draft 2026 budget and
financing bill to Congress for debate and approval. As presented,
the budget does not signal a shift toward fiscal tightening. While
the deficit is projected to narrow to 6.2% of GDP, the fiscal plan
depends on lowering interest costs through debt management
operations, achieving relatively optimistic revenue expectations,
and securing congressional approval of a financing bill in the
final months of the year that would raise 1.4% of GDP in revenue.
Finding consensus with the opposition-led Congress on such a bill
looks unlikely, especially in the run-up to elections. If the
budget is rejected by Congress, the Petro administration could
issue a budget by decree, as happened in 2025. Even if the
government achieves the deficit target next year, the next
administration will still need to implement a large fiscal
adjustment to stabilize debt dynamics. The deterioration in the
fiscal outlook accounts for the one-category adjustment to the
Fiscal Management and Policy building block.

Large fiscal deficits are contributing to higher public debt
levels. Gross general government debt (IMF definition) increased
from 55% of GDP in 2023 to 61% in 2024. Given the upward revisions
to deficit expectations for 2025 and 2026, we expect the debt ratio
to continue rising at least through 2026. In addition, the
suspension of the fiscal rule for three years and the repeatedly
large revisions to budget projections have weighed on policy
credibility. Real yields (i.e. inflation-adjusted) on five- and
ten-year government bond yields are running 300-400bps higher than
before the pandemic. A large fiscal deficit, elevated borrowing
rates and a weaker growth outlook highlight the need for a credible
fiscal consolidation plan to stabilize government debt dynamics.

Lower Investment Points to a Weaker - Albeit More Balanced - Growth
Outlook

Estimates of potential growth have been revised down in line with
lower levels of investment. The IMF estimates medium-term growth at
2.8%; two years ago, projected growth potential was 3.3%, and five
years ago, it was 3.7%. Lower public investment, greater economic
policy uncertainty, and higher taxes on corporate income may have
contributed to several years of lower investment. The investment
rate is estimated to average 17.4% of GDP from 2023-2025, down from
22.4% in the decade prior to the pandemic (2010-2019). The IMF
forecasts that investment will increase over the next five years
(average 20.2% from 2026-2030) but remain below pre-pandemic
levels.

On the positive side, external accounts are better positioned
relative to a few years ago. The current account deficit narrowed
from 6.0% of GDP in 2022 to 1.7% in 2024, largely on the back of
import compression. Going forward, the current account deficit is
expected to widen as imports increase in a manner consistent with a
recovery in domestic demand. Net FDI inflows fully covered the
external deficit in 2024, in addition to helping offset net
portfolio outflows. Colombia's credible monetary policy framework
and flexible exchange rate are helping the economy adjust to
evolving global conditions in an orderly manner. Colombia also
holds $65 billion in reserves, which provides some protection
against downside tail risks.

Election Politics are Getting Underway; Rule of Law Remains a Key
Credit Challenge

The post-election political landscape is highly uncertain.
Congressional elections are scheduled for March 2026. The first
round of the presidential election is scheduled for May 2026. While
President Petro is ineligible for reelection, the President's party
faces a challenging electoral outlook due to internal tensions, a
series of scandals, and the President's relatively low approval
ratings. However, the opposition is also fragmented and support has
yet to coalesce around a frontrunner. Whoever wins the presidency
will likely need to seek a broad congressional coalition to advance
a legislative agenda and consolidate fiscal accounts.

Morningstar DBRS views the rule of law as a key credit challenge.
There has been positive news for the country in terms of governance
over the last two decades: Colombia has delivered macroeconomic
stability through a series of shocks, poverty rates have materially
declined, and Colombians' participation in the democratic process
has strengthened, according to Worldwide Governance Indicators. The
country's record of sound macroeconomic policy management accounts
for the one category adjustment in the Political Environment
building block. However, Colombia compares unfavorably to most
similarly rated countries in terms of the rule of law. Even as the
2016 peace accord with the FARC advances, illegal armed groups
continue to fight to control territory and the drug trade. The
process of extending the state's presence to remote areas of the
country, reintegrating thousands of former combatants into society,
and addressing criminal activity tied to narcotics trafficking
remain important long-term challenges.

Lingering Inflation Pressures Mean Monetary Policy Will Remain
Restrictive

Price pressures have subsided since inflation peaked at 13.3% two
years ago. In July 2025, annual headline inflation came in at 4.9%.
However, inflation has stagnated around 5% (y/y) for the last 9
months, and we do not expect the disinflationary trend to resume
until next year. The central bank lowered the policy rate from
13.25% in November 2023 to 9.25% in April 2025 and has since left
the policy rate unchanged. Monetary policy settings remain tight.
The ex-ante real policy rate is above 5.0%, which is clearly in
restrictive territory, and it will likely remain restrictive
through the end of the year even if the central bank makes a few
additional cuts to the policy rate. The credibility of the
inflation-targeting regime has helped anchor expectations.
According to the central bank's Economic Expectations Survey
(August 2025), annual inflation (median) is expected to decline to
3.9% by December 2026, which is within the central bank's 2-4%
target range.

The financial system managed the slowdown in the domestic economy
over the last two years relatively well. Consumer credit growth
levelled off in 2023 and 2024 amid lower loan demand and higher
provisioning requirements on certain loans. The share of
non-performing consumer loans declined from the peak of 8.4% in
November 2023 to 6.0% in June 2025, and banks have set aside
additional provisioning. Overall, we see financial stability risks
as contained. Banks are highly capitalized, liquid, and primarily
funded by local deposits. In addition, currency mismatches across
banks, corporates, and households are limited.

Notes: All figures are in U.S. dollars unless otherwise noted.
Public finance statistics reported on a general government basis
unless specified.




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C O S T A   R I C A
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BANCO NACIONAL DE COSTA RICA: S&P Assigns 'BB-/B' ICRs
------------------------------------------------------
S&P Global Ratings assigned its 'BB-' long-term and 'B' short-term
global scale issuer credit ratings to Banco Nacional de Costa Rica
(BNCR). The outlook is positive.

Costa Rican state-owned bank, Banco Nacional de Costa Rica (BNCR),
plays a critical role as a financing vehicle to promote economic
development in the country, with a long-term strategy aligned to
its regulatory bylaws.

In S&P's opinion, the central government's guarantee of the bank's
financial obligations provides BNCR with higher financial
flexibility, prompting us to assess an almost certain likelihood of
extraordinary government support to the bank, if necessary.

BNCR's 'bb-' stand-alone credit profile (SACP) reflects its strong
presence in the financial system and broad product diversification,
S&P's expectations of steady capitalization and asset quality
metrics slightly above the financial system average, its stable
funding base (mainly composed of core customer deposits), and its
sound liquidity.

BNCR will remain a key government-related entity (GRE) for Costa
Rica, acting as a financial vehicle for economic development in the
country. Established as a state-owned universal bank in 1914, BNCR
remains the largest financial institution in the country. S&P said,
"We expect it to continue promoting key economic sectors such as
agriculture, small and midsize enterprises (SMEs), housing,
tourism, and productive activities. We also anticipate that the
bank's long-term strategy will remain aligned to its objectives
stated by regulatory bylaws. Therefore, although it's subject to
potential changes in its board composition amid political cycles,
we anticipate the bank will maintain its autonomy in terms of
operations, underwriting standards, and risk appetite."

S&P said, "In our opinion, the current central government's
guarantee of BNCR's liabilities provides higher financial
flexibility to the bank than peers and reflects a commitment to
grant extraordinary government support, if necessary. As a result,
we align our local and foreign currency ratings on the bank with
those on Costa Rica (BB-/Positive/B)."

The bank's strong market presence and broad business diversity will
remain credit strengths. BNCR's franchise, scale of operations, and
broad customer base provide significant business stability, making
operations less vulnerable to adverse operating conditions than the
industry. In this sense, S&P anticipates the bank will maintain its
leading position in Costa Rica, with market shares of about 20% and
25% in terms of loans and deposits, respectively.

S&P said, "In addition, we expect the bank's scope--coupled with
steady consumer and commercial credit demand--will allow it to
maintain stable growth rates in its loan portfolio of about 6.0% in
2025 and 5.0% in 2026. We consider this growth will partially
compensate for narrowing net interest margins (NIMs) following the
contraction in the reference rate. This, coupled with the bank's
steady increase in its fees and commissions, will result in
operating revenue increasing about 2.0% on average for the next two
years (excluding extraordinary income from accounting
differences).

"We anticipate the bank will maintain broad business diversity,
with a loan portfolio composition similar to that of previous
years. This includes commercial loans representing the majority
(55%), followed by mortgages (30%), and consumer lending (15%). In
addition, BNCR's complementary financial divisions covering asset
management, securities, insurance brokerage, and pension fund
management will continue providing sources of revenue
diversification beyond its borrowing portfolio.

"In our view, the bank will maintain a diversified revenue mix of
net interest income (66%) and fees and commissions (25%)--which we
consider more stable income sources--with the remainder from
trading gains and other income. This business diversity compares
favorably against other rated GREs and supports our opinion of the
bank's solid business position.

"We expect stable capitalization despite slow internal generation
due to regulatory asymmetries. In our opinion, projected internal
capital will comfortably support BNCR's modest loan portfolio
growth. We anticipate our risk-adjusted capital (RAC) ratio will
average about 5.7% during the next two years, similar to year-end
2024. Moreover, BNCR's capitalization levels are subject to upside
potential due to the current positive economic risk trend in our
Banking Industry Country Risk Assessment (BICRA) on Costa Rica and
the positive outlook on the sovereign ratings. If the positive
trend and outlook materialize, this would reduce our risk weighted
asset (RWA) charges and boost the bank's RAC ratio about 100 basis
points (bps), reflecting a stronger cushion to absorb credit
losses.

"That said, we anticipate limited profitability metrics--slowing
the bank's internal capital generation. This is due to a higher tax
drag compared with private banks because of the asymmetries in the
competitive environment. As a result, the GRE will remain subject
to additional tax expenses given its mandate to contribute to
different government-related funds and vehicles. Moreover, the bank
still has weaker efficiency levels than peers, although management
continues its efforts to improve processes through digital
platforms and channels.

"The higher tax burden and weaker efficiency will be somewhat
compensated by stronger-than-industry NIMs and a controlled cost of
risk. Overall, we project the bank's return on equity and return on
assets to average about 5.6% and 0.6%, respectively, during the
next two years.

"Although BNCR's asset quality is more vulnerable during economic
downturns compared to the financial system, this is somewhat
counterbalanced by sector diversification. In our opinion, the
bank's commitment to provide financing to economic sectors with
somewhat higher risk--such as SMEs, construction, agribusiness, and
livestock--ultimately results in more volatile asset quality
metrics amid periods of stress such as the COVID-19 pandemic.
During 2020, BNCR's nonperforming assets (NPAs) and net charge-offs
(NCOs) to total loans spiked to about 4.3% and 0.6%, respectively,
whereas the system's figures were 3.0% and 0.4% for the same
period. However, the bank has recorded a consistent recovery in
recent years.

"For second-half 2025, we expect an improvement in asset quality,
albeit at a slow pace considering the lingering global trade
tensions that could dent some borrowers' payment capacity. We
expect asset quality to stabilize in 2026 and 2027. Therefore, we
forecast NPAs of about 3.4% for 2025 and 0.5% on average for the
following two years. Although these levels are slightly above those
of the financial system, we consider them manageable given the
bank's controlled underwriting standards, policies, and risk
appetite.

"Moreover, we anticipate the bank's broad loan book diversification
in terms of economic sectors and customer exposures will provide a
cushion to its risk profile. In this regard, the most relevant
economic sectors within commercial loans are services (56%),
commerce (15%), tourism (9%), and manufacturing (6%), among
others."

BNCR's exposure to high-risk sectors such as SMEs (12%),
construction (3%), agriculture (4%), and livestock (3%) will remain
controlled and well-monitored. The bank's exposure is also diluted,
with its top 20 clients accounting for about 14% of total loans and
about 1.1x its total adjusted capital (TAC).

The bank's foreign-currency-denominated loans (about 26% of total
lending) are significantly higher than other regional rated peers.
However, BNCR has robust policies to independently mitigate this
risk, such as limits on unhedged exposures and higher costs on the
latter.

A steady funding base and sound liquidity profile result in
comfortable financial flexibility. S&P anticipates BNCR's funding
structure will remain composed of a broad deposit base--mainly
retail deposits that it deems more stable under adverse economic
conditions. As of March 2025, deposits represented about 95% of the
total funding base with the remaining 5% composed of interbank
facilities and money market and market debt.

S&P said, "In our opinion, the bank's current funding sources are
more than sufficient to cover its needs. We project lending volumes
will outpace deposit growth due to easing reference rates,
resulting in a narrowing stable funding ratio of about 135%, versus
138% in 2024, but this is still at a comfortable level. In our
view, this ratio is also aligned with the average of the banking
system and regional peers.

"In our view, BNCR will maintain a sound liquidity profile, which,
coupled with meager short-term wholesale obligations, results in
minimal refinancing risk. This is also supported by its highly
liquid portfolio, mainly composed of government securities and cash
instruments, with broad liquid assets representing about 30% of the
bank's total assets, slightly above the system average of 27.5% as
of March 2025.

"We expect robust liquidity management and broad liquid assets to
continue comfortably covering the bank's short-term wholesale
funding. Additionally, ongoing government support through the
government guarantee provides further financial flexibility, if
needed.

"The positive rating outlook on BNCR for the next 12-24 months
mirrors the outlook on our sovereign rating on Costa Rica. We
expect the GRE will maintain its key role for the government by
acting as financing vehicle for the development of the country.
Therefore, the ratings on the bank will move in tandem with those
on the sovereign.

"If we take a negative rating action on Costa Rica in the coming
12-24 months, we could take the same action on BNCR. This could
happen if an economic slowdown in Costa Rica's key trading
partners, external shocks, or insecurity weigh on its
balance-of-payments position and economic performance.

"We could raise our ratings on BNCR in the next 12-24 months if we
take the same action on the sovereign. This could occur if Costa
Rica's external position improves beyond our expectations or if
long-standing political obstacles to issue cross-border debt are
not an impediment for timely access to external financing. We could
also raise the rating if nearshoring or friendshoring materializes
into sustained economic growth consistently above peers."




=================
G U A T E M A L A
=================

ENERGUATE TRUST 2: Moody's Rates Up to $700MM New Unsec. Notes Ba2
------------------------------------------------------------------
Moody's Ratings assigned a Ba2 rating to Energuate Trust 2.0's
proposed senior unsecured notes of up to $700 million due in 2035.
Moody's also assigned a Ba2 corporate family rating to Energuate
Trust 2.0 and withdrew the Ba2 corporate family rating from
Energuate Trust. The outlooks are stable.

The proceeds of the notes will be used to repay Energuate Trust's
2027 notes, a partial repayment of bank debt, and for general
corporate purposes, which may include capital investments and
distributions.

The assigned ratings are based on preliminary documentation.
Moody's don't anticipate changes in the main conditions that the
bond will carry. Should issuance conditions and/or final
documentation deviate from the original ones submitted and reviewed
by the rating agency, Moody's will assess the impact that these
differences may have on the rating and act accordingly.

RATINGS RATIONALE

The assigned Ba2 senior unsecured rating for the new $700 million
notes due in 2035 is in line with Energuate's Ba2 Corporate Family
Rating, which reflects the company's consolidated credit profile
and considers that the proposed notes will be direct obligations of
Energuate, ranking pari-passu with its current and future senior
unsecured debt obligations. The structure contemplates an A/B Bond
where the International Finance Corporation (IFC, Aaa stable) will
act as lender of record and hold $100 million of the issuance (A
loan), while distributing the remaining $600 million to
institutional investors (B loan), allocating repayments on a
pro-rata basis.

Proceeds from the new notes will be used to repay the existing $330
million notes due in May 2027, as well as to partially repay $270
million of the $335 million outstanding bank loan with Banco
Industrial due in December 2043, creating a more comfortable
amortization profile. The liability management strategy reflects
the company's proactive refinancing efforts. Moody's also sees
favorably the involvement of the IFC as lender of record, given the
positive impact on governance of a more diversified funding base.
Counterbalancing those benefits is an expected deterioration in
financial metrics. The company will be incurring a net debt
increase of approximately $100 million in 2025 at a relatively
higher consolidated interest cost, coupled with a more aggressive
dividend distribution policy in 2025 and 2026—partially financed
through additional borrowing. As a result, Moody's expects a
weakening in credit metrics, with interest coverage declining to
3.1x (from 4.0x in 2024) and the CFO pre-working capital to debt
ratio falling to 17.9% (from 20.6%) in 2026, or to 10.7% when
incorporating Threelands Energy Ltd. Sarl (Threelands Energy) 's
debt.

At the parent company level in Threelands Energy, Moody's
acknowledge a current debt position of approximately $330 million.
The servicing of this debt mostly relies on distributions from
Energuate, which underscores a structural dependency that
constrains Energuate's overall financial flexibility. Consequently,
Moody's assessments of the rating outlook and potential rating
actions also factors this parent's debt for the consolidated credit
profile.

Energuate's Ba2 ratings reflect the company's dominant market
position in Guatemala and Central America, supported by adequate
credit metrics and liquidity. Energuate has demonstrated consistent
demand growth and satisfactory operational and financial
performance.

The issuer's credit profile benefits from a tariff-setting
framework that incorporates adjustments for quetzal/USD exchange
rate fluctuations, inflation indexation, power procurement costs,
and capital investments. Moody's also recognizes the positive
outcome of the 2024 tariff review process, which increased the
value-added distribution and acknowledged losses to approximately
14.9% (from 13.5%) through 2029.

The Ba2 rating remains tempered by structural challenges, including
Energuate's relatively small utility size, elevated energy losses
stemming from operations in conflict-prone areas, and a limited
track record in regulatory proceedings. Additionally, it reflects
the debt position at the parent company Threelands Energy and its
high dependence on Energuate for distributions, which limits the
company's overall financial flexibility.

RATING OUTLOOK

The stable rating outlook reflects Moody's assumptions that the
combined consolidated financial metrics will remain supportive of
the utilities' credit profile. Specifically, Moody's expects
combined consolidated CFO pre-WC/debt to exceed 10%, on a sustained
basis. The stable outlook also factors the debt incurrence test
embedded in the financing documents, namely Energuate's net
debt/EBITDA of below 4.0x and an interest coverage ratio of 2.0x.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

Positive rating pressure would emerge if the company makes progress
in reducing energy losses toward its target of below 18%.
Quantitatively, a rating upgrade would require consolidated CFO
pre-WC/debt and retained cash flow (RCF)/debt ratios exceeding 22%
and 10%, respectively, along with an improvement in the company's
combined consolidated leverage as measured by a debt to
capitalization ratio below 75%, all on a sustained basis.

A downgrade would be considered if the owner's financial policy
becomes more aggressive than anticipated and credit metrics become
weaker than Moody's current expectations. Specifically, if combined
consolidated leverage increases beyond 4 times (net debt to EBITDA)
or if combined consolidated CFO pre-WC/debt or the interest
coverage ratio (CFO pre-WC + interest/Interest) remain below 10%
and 2.5x, respectively, on a sustained basis.

PROFILE

DEOCSA and DEORSA, headquartered in Guatemala City, are the two
largest electricity distribution utility companies in Guatemala in
terms of the number of customers. Collectively, they serve more
than 2.5 million customers, accounting for approximately 74% of the
country's end-users. DEOCSA operates in the southwestern part of
the country, while DEORSA provides services in the northern and
eastern regions. The Comision Nacional de Energia Electrica (CNEE)
regulates the utilities. Their distribution operations are subject
to 50-year governmental authorizations, which expire in 2048.

In September, 2023, the company's ownership transitioned from
I-Squared Capital to Threelands Energy Ltd. S.a r.l. (Threelands
Energy Group). The acquisition funds were provided through equity
from the sponsors.

LIST OF AFFECTED RATINGS

Issuer: Energuate Trust 2.0

Assignments:

Backed Senior Unsecured, Assigned Ba2

LT Corporate Family Rating, Assigned Ba2

Outlook:

Outlook, Assigned Stable

Issuer: Energuate Trust

Withdrawals:

LT Corporate Family Rating, Withdrawn , previously rated Ba2

Outlook:

Outlook, Remains Stable

METHODOLOGY

The principal methodology used in these ratings was Regulated
Electric and Gas Utilities published in August 2024.

The net effect of any adjustments applied to rating factor scores
or scorecard outputs under the primary methodology(ies), if any,
was not material to the ratings addressed in this announcement.


GUATEMALA: Economy Growth is Expected to Hold at 3.8% in 2025
-------------------------------------------------------------
The Executive Board of the International Monetary Fund (IMF)
completed the Article IV Consultation for Guatemala.  The
authorities have consented to the publication of the Staff Report
prepared for this consultation.

Thanks to prudent macroeconomic management, Guatemala has
maintained a resilient economy, achieved low inflation, ample
policy buffers and, for the last few years, a positive current
account; all these factors have contributed to increasingly
favorable market access. However, reforms are needed to shift the
country into a high investment/high growth equilibrium and to
meaningfully reduce poverty.

The macroeconomic outlook remains strong, though there is elevated
uncertainty related to changing trade and migration policies
abroad. Economic growth is expected to hold at 3.8 percent in 2025,
with the sizeable fiscal impulse offsetting the softening in
private demand.

External headwinds are expected to keep growth around 3.5 percent
in 2026–27, while in later years, growth could converge to 4
percent owing to infrastructure investments and ongoing reforms,
including to improve governance and quality of public spending.
Inflation is projected to gradually return to the monetary policy
target (4 percent ± 1 percentage point). Fiscal deficits of about
3 percent of GDP are expected to persist in the medium term,
leading to public debt reaching 30 percent of GDP by the end of the
projection period.

The balance of risks is tilted to the downside. Domestically, the
political opportunities for advancing necessary reforms remain
constrained. Externally, trade policy uncertainty and risks to
global growth can heavily impact investment decisions, while shifts
in migration policy in destination countries pose risks to
remittance-supported spending. Changes in the domestic labor market
on account of declining net emigration could be an opportunity, but
also pose challenges. Guatemala also remains vulnerable to severe
weather events.

                    Executive Board Assessment

Executive Directors agreed with the thrust of the staff appraisal.
They commended the authorities’ prudent macroeconomic policies,
which have delivered low inflation and robust policy buffers. They
noted that Guatemala’s economy remains resilient and generally
well positioned to face external shocks and domestic challenges.
Nonetheless, Directors stressed that maintaining growth momentum
and achieving sustainable and inclusive growth in the medium term
will require determined implementation of reforms including
better-quality public spending and continued improvements in
governance and the business climate.

Directors generally considered the 2025 expansionary fiscal stance
appropriate given softening private demand. Over the medium term,
reverting fiscal deficits to historical averages of around 2
percent of GDP would be warranted. In this regard, revenue and
expenditure reforms will be essential for maintaining fiscal
sustainability while accommodating higher infrastructure and social
spending. In particular, Directors highlighted the need to
strengthen revenue mobilization, improve the targeting of social
programs and the efficiency of public spending, enhance budget
planning and execution, and strengthen public financial management.
Directors also encouraged increasing reliance on domestic funding,
anchored in a credible medium-term debt management strategy.

Directors considered the current monetary policy stance and
Banguat’s response to large remittance inflows—guided by an
intervention rule—to be broadly appropriate. They encouraged the
authorities to continue strengthening monetary policy transmission.
They emphasized the importance of improving policy coordination
between Banguat and the Ministry of Finance, particularly to
alleviate sizable sterilization costs, and supported continued
efforts to enhance exchange rate flexibility in a well-communicated
manner.

Directors acknowledged the resilience of the financial system and
commended the authorities’ efforts to strengthen banking
regulation and supervision. They underscored the importance of
further expanding risk-based supervision, further developing the
macroprudential toolkit, and enhancing oversight of fintech and
digital financial services. Directors encouraged the authorities to
prioritize revising the 2002 Law on Banks and Financial Groups,
completing the transition to International Financial Reporting
Standards, advancing the draft Secondary Market Law, approving the
e-money law, and implementing the financial inclusion strategy.

Directors emphasized the critical need to enhance governance and
advance structural reforms to foster inclusive growth. They urged
the authorities to prioritize the adoption of new laws, including
an AML/CFT Law, a Beneficial Ownership Law, a Public Procurement
Law, and a Law for the Protection of Whistleblowers. Directors
commended the authorities for addressing corruption risks in
municipal investment projects administered by Department
Development Councils (CODEDEs) but stressed the need for stronger
oversight and capacity-building for CODEDEs. They encouraged
consolidating institutional gains through a medium-term
anti-corruption strategy. Continued efforts to formalize the
economy and improve the business climate will also be important.

It is expected that the next Article IV consultation with Guatemala
will be held on the standard 12-month cycle.




===============
H O N D U R A S
===============

HONDURAS: S&P Affirms 'BB-/B' Sovereign Credit Ratings
------------------------------------------------------
S&P Global Ratings, on Sept. 11, 2025, affirmed its 'BB-/B' long-
and short-term sovereign credit ratings on Honduras. The outlook
remains negative. The transfer and convertibility assessment
remains 'BB-'.

Outlook

The negative outlook incorporates the risk that heightened
political uncertainty during and after the electoral process and
transition period this year could delay access to official and
commercial sources of funding, as well as limit investor confidence
and harm the country's economic growth prospects.

Downside scenario

S&P could lower the ratings in the next six to 12 months if
political uncertainty increases and limits the government's access
to external financing from multilateral lenders and from external
capital markets in 2026, ahead of external debt amortizations in
2027. Furthermore, if contingent liabilities result from
international litigations with private sector-companies, they could
have a material fiscal impact, affect investor sentiment, and
translate into lower economic growth prospects, leading to a
downgrade.

Upside scenario

S&P could revise the outlook to stable in the next six to 12 months
if political uncertainty diminishes following the electoral period,
enabling the government to have access to official and commercial
external funding. Implementation of reforms that result in higher
long-term GDP growth, while addressing weaknesses in the energy
sector and containing contingent liabilities, could also lead to an
upgrade.

Rationale

The 'BB-' ratings on Honduras reflect the country's low per capita
GDP, weak democratic institutions, recurrent episodes of political
turmoil, and exchange rate and monetary policy rigidities. On the
other hand, the country has maintained very low fiscal deficits and
stable debt levels, and most sovereign debt comes from official
sources at concessional conditions.

Institutional and economic profile: Political uncertainty could
increase ahead of the presidential election and harm economic
growth prospects

-- Weak rule of law, and high perceived corruption will continue
to constrain economic growth.

-- S&P projects GDP growth to reach 3.6% this year--thanks in part
to an extraordinary increase in remittances driving
consumption--and decelerate to around 3% in the next three years.

-- The country's per capita GDP, estimated at $3,800 in 2025, is
among the lowest in the region, while its social indicators compare
unfavorably with most peers.

Political uncertainty could rise ahead of presidential and
legislative elections in November 2025. The one-round presidential
election is expected to be a tight race between the incumbent
leftist Libre Party, center-right Liberal Party, and conservative
National Party. Irregularities during the campaign have raised
concerns among international observers regarding the electoral
process. For example, there were logistical problems during the
primary (within-party) elections in March 2025.

Despite attempts to strengthen electoral laws, Honduras has a
history of allegations of electoral fraud, highlighting the
country's relatively weak democracy. Moreover, high-level
corruption scandals across administrations continue to foster
public discontent.

The composition of the next Congress will be key for the
administration's ability to pass reforms. The current
administration of President Xiomara Castro has made progress with
an IMF program, adjusting monetary and exchange rate policies while
maintaining stable public finances. However, weakening legislative
support has delayed key laws, such as a fiscal reform to reduce tax
exemptions (Ley de Justicia Tributaria). Furthermore, uncertainty
regarding the elimination of special economic zones and Honduras'
decision to leave the international arbitration court could
contribute to investor uncertainty and affect private investment.

A relatively weak institutional framework has constrained the
country's economic performance, with per capita GDP around $3,800,
among the lowest in the region. S&P projects GDP to grow 3.6% in
2025, backed by an extraordinary increase in remittances (which
account for 27% of GDP) that will drive domestic consumption.

However, S&P expects GDP growth to decelerate to around 3% over the
next three years, in line with an economic deceleration in the
U.S., the destination of 40% of Honduras' exports and the source of
practically all remittances. Poverty in Honduras is high, around
60% (extreme poverty at 40%), and about 75% of the working-age
population works in the informal sector. Steps to strengthen rule
of law and foster competition and private investment could raise
the country's growth rate.

Growth has been affected by long-standing problems in the energy
sector, which have resulted in regular blackouts that increase
costs and deter private investment. The Castro administration has
marginally cut energy losses and arrears owed by the state-owned
energy transmission and distribution company, Empresa Nacional de
Energía Eléctrica (ENEE), in accordance with its IMF program, but
losses remain high.

Furthermore, Honduras is highly exposed to extreme weather events,
such as hurricanes, tropical storms, and earthquakes. As a result,
the government has expressed interest in IMF financing under the
Resilience and Sustainability Facility, which could be considered
in subsequent IMF program reviews.

Flexibility and performance profile: Improved dollar inflows have
eased stress in the exchange rate market

-- The central bank recently shifted to more flexible monetary and
exchange rate policies.

-- An extraordinary increase in remittances and higher export
prices have boosted the availability of dollars in the economy.

-- S&P projects moderate government deficits, with an annual
increase in net general government debt of around 3% of GDP, and
stable debt levels in the next three years.

S&P's project Honduras' current account deficits to narrow to
around 2%-3% of GDP in 2025-2028 from 4.6% in 2024. This stems from
improvements in its external profile thanks to extraordinarily high
remittances and higher export prices, increasing its dollar
inflows. Changes in U.S. immigration policy and fear of deportation
have led Hondurans living in the U.S. to front-load remittances
this year. (S&P expects the inflows to normalize in the next three
years.) Moreover, higher export prices, mainly for coffee, are
increasing Honduras' exports. Honduras remains vulnerable to the
imposition of further tariffs by the U.S., its main market for
exports of textiles and electrical equipment.

Foreign direct investment is likely to remain low, around 1.5% of
GDP over the next four years, due to tepid investor sentiment. As a
result, S&P expects narrow net external debt to marginally worsen
to around 20% of current account receipts over the same time
period.

Net international reserves increased markedly to $9.6 billion in
September 2025 from $6.4 billion in October 2024, a result of an
improved current account balance, disbursements from the IMF, and
the government's external bond issuance late last year. S&P
forecasts that gross external financing needs will average 92% of
current account receipts and usable reserves over the next three
years. The government faces external commercial debt amortization
of $700 million in 2027. It is likely to tap international debt
markets in 2026 to roll over this capital payment.

Honduras' public finances are likely to remain stable. The current
government had a strong agenda to expand social safety nets,
although operational hurdles and the elimination of trust funds
have limited its capacity to increase spending, leading to
lower-than-expected fiscal deficits. S&P's estimate an average
change in net general government debt of around 3% of GDP over the
next three years, taking into account the government's commitment
to gradual fiscal consolidation. Its medium-term fiscal framework
and fiscal responsibility law target a deficit of 1% for the
nonfinancial public sector, but with extraordinary space to invest
in capital infrastructure.

The fiscal consolidation efforts are in line with Honduras' IMF
program (around $830 million), with expected disbursements from
2023 to 2026. In addition to fiscal consolidation, the government
agreed to improve the financial health of ENEE and to avoid central
bank financing of the fiscal deficit, among other structural
benchmarks. ENEE has marginally reduced arrears to electricity
generators and its losses in the grid, although losses are still
high, around 34%. The company is likely to run financial losses of
1.1%-1.2% of GDP annually over the next three years, funded by
government transfers and borrowings.

Thanks to Honduras' moderate fiscal deficits, we project net
general government debt will stabilize around 37% of GDP in
2025-2028. S&P deducts intergovernmental debt holdings from its
calculation of general government debt, and we deduct government
liquid assets to calculate net general government debt.

About 40% of Honduras' total debt is owed to official creditors,
and around 70% of its debt is in foreign currency, posing risks
from sudden exchange rate fluctuations. S&P projects interest
payments will hover near 9.2% of general government revenue in
2025-2028.

In S&P's view, the government faces potential fiscal risks from
contingent liabilities due to ongoing lawsuits by private-sector
companies in international courts. The main cases were brought by
firms affected by a Supreme Court ruling that deemed the
establishment of special economic zones (created in 2013) to be
unconstitutional.

The government has introduced more flexibility in monetary and
exchange rate policies over the past year, meeting commitments to
the IMF. During the past 12 months, the central bank increased its
policy rate to 5.75% from 3% and allowed a steeper depreciation of
the lempira. Having said that, we believe that limited exchange
rate flexibility and the small size of domestic capital markets
limit the effectiveness of monetary policy.

The central bank changed the system for allocating dollars to the
market in April 2023 due to allegations that private banks had
discretionarily supplied foreign exchange to their clients under
the previous system. As a result, the central bank returned to an
auction system from interbank market allocation. Exchange agents
are obliged to surrender foreign currency inflows to the central
bank. Although the change resulted in a large gap in the foreign
exchange market last year, better external conditions have enabled
the central bank to fully meet the daily demand for hard currency.

The central bank's more contractive monetary policy (from monetary
policy rate increases and tighter reserve requirements for the
banking sector) will reduce inflation toward the middle of the
central bank's target (4.0% plus/minus 1 percentage point) over the
next three years. As a result, credit has decelerated markedly. S&P
expects credit to grow nearly 9% annually in 2025-2028, following
four years of growth at an average of 15%.

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the methodology
applicable. At the onset of the committee, the chair confirmed that
the information provided to the Rating Committee by the primary
analyst had been distributed in a timely manner and was sufficient
for Committee members to make an informed decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

The committee's assessment of the key rating factors is reflected
in the Rating Component Scores above.

The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision. The
views and the decision of the rating committee are summarized in
the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.

  Ratings list

  Ratings Affirmed

  Honduras

  Sovereign Credit Rating                BB-/Negative/B

  Transfer & Convertibility Assessment

    Local Currency                       BB-
    Senior Unsecured                     BB-




=============
J A M A I C A
=============

JAMAICA: DBJ to Provide New Financing for MSMEs
-----------------------------------------------
RJR News reports that the Development Bank of Jamaica will be
providing financing to micro, small and medium-sized enterprises at
an annual interest rate of eight per cent.

The facility, valued at two billion dollars, is part of the bank's
ORBIT programme (Opportunities for Resilient Business, Innovation
and Transformation), according to RJR News.

Each business will be able to access up to $30 million, 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.  




===========
M E X I C O
===========

CONTRATO DE FIDEICOMISO CIB4323: Moody's Cuts Secured Notes to B3
-----------------------------------------------------------------
Moody's Ratings has downgraded the rating on one class of Contrato
de Fideicomiso Irrevocable de Emisión, Administración y Pago No.
CIB 4323 and placed the class on review for further possible
downgrade as follows:

Senior Secured Notes, Downgraded to B3 (sf) and Placed On Review
for Downgrade; previously on Sep 12, 2024 Definitive Rating
Assigned Ba1 (sf)

RATINGS RATIONALE

The rating on the class was downgraded primarily due to an increase
in Moody's LTV as a result of lower than expected cash flow
performance of the operating hotel collateral and uncertainty
around the timing of the opening of the second hotel. The
collateral is primarily secured by two full service hotels, the
Vivid (414 rooms) and the Dreams (600 rooms). The Vivid hotel was
newly opened in the second quarter of 2024 and through the first 6
months of 2025 the property's average daily rate (ADR) has been
well below Moody's initial expectations causing lower than
anticipated net cash flow (NCF) at this property. Furthermore, the
Dreams hotel was initially scheduled to open in October 2024,
however, it has not yet opened and the opening date remains
uncertain. Due to the underperformance of the Vivid hotel and lack
of cashflow from the unopened Dreams hotel, the portfolio
performance remains significantly below Moody's expectations at
securitization. Additionally, the debt service reserve account
(DSRA), which was to be funded for future debt service payments
after the March 2025 payment date, has not yet been funded due to
lack of any excess cash flow from the properties.

The rating was also placed on review for possible downgrade
primarily due the uncertainty of the opening timeline of the Dreams
hotel and concerns of payment default at the September 2025 payment
date due to the low cash flow, lack of funding of the DSRA to date
and ability of the sponsor to continue to fund loan payments and
operating shortfalls. Furthermore, there is uncertainty about the
Hyatt Franchise agreement given the hotel management agreement with
Hyatt was contingent on the Dreams Hotel opening no later than July
01, 2025. During the review period Moody's will focus on updates
regarding the hotel's performance, the opening date of the Dreams
Hotel, the status of the Hyatt management agreement and the DSRA
and loan payment status.

METHODOLOGY UNDERLYING THE RATING ACTION

The principal methodology used in this rating was "Large Loan and
Single Asset/Single Borrower Commercial Mortgage-backed
Securitizations" published in January 2025.

Factors that would lead to an upgrade or downgrade of the rating:

The performance expectations for a given variable indicate Moody's
forward-looking view of the likely range of performance over the
medium term. Performance that falls outside the given range can
indicate that the collateral's credit quality is stronger or weaker
than Moody's had previously expected.

Factors that could lead to an upgrade of the rating include a
significant amount of loan paydowns or amortization or a
significant improvement in loan performance.

Factors that could lead to a downgrade of the rating include a
decline in the performance of the loan or an increase in realized
or expected losses.

DEAL PERFORMANCE

As of the March 12, 2025 distribution date, the transaction's
aggregate note balance increased to $303.0 million, from $300.0
million at securitization due to the payment-in-kind ("PIK")
structure of the transaction for the first three years of the
securitization. The securitization is backed by a single fixed rate
loan collateralized by the Grand Island Cancun I Hotel Resort (the
"GIC I Hotel", or the "Portfolio") located in Cancun, Mexico. The
Portfolio consists of three properties: (i) The Hyatt Vivid Grand
Island Hotel (the "Vivid Hotel"), which is a 414-guestroom,
all-inclusive resort and the Dreams Grand Island (the "Dreams
Hotel"), which is a 600-guestroom, all-inclusive resort, each
located on a parcel of land known as "Private Unit 1"; (ii) A
parcel of land where the Grand Island Cancun Spa will be developed
known as "Private Unit 2"; and (iii) A leasehold interest with
respect to The Grand Island Beach Club (the "Beach Club"), which
provides amenities and services to guests of the Vivid and Dreams
hotels as well as hotels to be built in the future as part of the
GIC Complex. The loan's sponsor is Murano Global Investments PLC,
which disclosed in recent filings this year that there are doubts
around their ability to continue as a going concern and they are
exploring potential restructuring of their debts.

The Vivid Hotel (414 rooms) opened for business during 2024 and is
operating at lower than expected NCF and the Dreams Hotel (600
rooms) has not yet opened. In recent filings the sponsor reported
the hotel is expected to commence operations in the fourth quarter
of 2025, but that timeline remains uncertain. The hotels lack
beachfront access and require shuttle service to the Grand Island
Beach Club for beach access and additional amenities. Furthermore,
the sponsor disclosed that they are currently evaluating whether to
continue with the Dreams Hotel or to convert a portion of the
Dreams to residential units.

The combination of the Dreams Hotel not operating and lower
performance from the Vivid Hotel has caused the NCF to be well
below Moody's expectations and the NCF has not been sufficient to
cover required debt service payments. The lower performance of the
Vivid hotel is primarily due to lower than expected Average Daily
Rates (ADR) and Revenue per Available Room (RevPAR) as a result of
competitive pressure from surrounding hotels. The reported ADR and
RevPAR for the Vivid hotel during the first six months of 2025
averaged $289 and $207, respectively, and occupancy rates during
the same period ranged averaged 71.4%.

The transaction pays interest and PIK interest semi-annually, in
March and September. While the March 2025 payments were made using
funds from the Debt Service Reserve Account (DSRA), the DSRA was
not funded on a monthly basis for the upcoming September 2025
payment date and remains unfunded, as there have not been any
excess funds. Additionally, the hotel management agreement with
Hyatt was contingent on the Dreams Hotel opening no later than July
1, 2025, and Moody's have not received any definitive update on
this agreement.

For this rating action Moody's lowered Moody's sustainable NCF
primarily due to lower ADR assumptions based on recent performance
trends at the Vivid hotel. In Moody's analysis Moody's kept Moody's
occupancy and other assumptions in line with Moody's analysis at
securitization. Moody's assumptions are based on stabilized cash
flow across both hotels and incorporate projections based on trends
in the hotel's market and the current performance of the Vivid
Hotel.

With the cap rate unchanged at 14.0%, the current mortgage balance
of $303.0 million (which is inclusive of the capitalized interest
that occurred on the March 2025 payment date) represents a Moody's
LTV of 128% compared to the Moody's LTV of 89% based on the
original balance of $300 million at securitization. Moody's
analysis also assumes the expected further capitalization of
interest over the allowable period, which if occurred could
increase the mortgage balance to approximately $318.5 million.
Inclusive of this capitalized amount, Moody's LTV would increase to
134%. However, this LTV assumes that operations at the Vivid Hotel
will improve, and the Dreams Hotel will ultimately open as a hotel
in the near future.


POINSETTIA FINANCE: Moody's Ups Rating on $530.8MM Sec. Notes to B1
-------------------------------------------------------------------
Moody's Ratings has upgraded the rating on the following notes
issued by Poinsettia Finance Limited:

US$530.8 million Senior Secured Notes, Upgraded to B1; previously
on Sep 4, 2025 B3 Placed On Review for Upgrade

Poinsettia Finance Limited is a repackaged securitization related
to certain oil and gas infrastructure assets, under a hell or
high-water lease agreement between Pemex Exploracion y Produccion
(PEP), a subsidiary of Petróleos Mexicanos (PEMEX) and Marverde
Infraestructura S.A. The lease payments are backed by the
underlying oil and gas infrastructure assets, PEP's obligations
under the lease agreement are guaranteed by Pemex.

The rating is based mainly on the willingness and ability of Pemex,
as guarantor of PEP's obligations under the lease agreements to
honor the payments as defined in the transaction documents.

RATINGS RATIONALE

The rating action taken is the result of a rating action on
Petróleos Mexicanos, which was upgraded to B1 from B3 (Placed On
Review for Upgrade) on September 8, 2025.

Methodology Underlying the Rating Action:

The principal methodology used in this rating was "Repackaged
Securities" published in June 2024.

Factors that would lead to an upgrade or downgrade of the rating:

This rating is essentially a pass-through of the rating of the
underlying asset(s). Noteholders are exposed to the credit risk of
Petróleos Mexicanos and therefore the rating moves in lock-step.

Moody's note that this transaction is subject to a high level of
macroeconomic uncertainty, which could negatively impact the rating
of the notes, as evidenced by 1) uncertainties of credit conditions
in the general economy and 2) more specifically, any uncertainty
associated with the underlying credits in the transaction could
have a direct impact on the repackaged transaction.



=====================
P U E R T O   R I C O
=====================

ASOCIACION HOSPITAL: Hires Lugo Mender Group as Bankruptcy Counsel
------------------------------------------------------------------
Asociacion Hospital El Maestro, Inc. seeks approval from the U.S.
Bankruptcy Court for the District of Puerto Rico to employ Lugo
Mender Group, LLC as counsel.

The firm will render these services:

     (a) advise the Debtor with respect to its duties, powers and
responsibilities in this case under the laws of the United States
and Puerto Rico in which conducts its operations, business, or is
involved in litigation;

     (b) advise and assist the Debtor in retaining all required
professionals;

     (c) advise the Debtor in connection with its reorganization
endeavors;

     (d) assist the Debtor in developing reorganization strategies
to maximize value of assets and operations;

     (e) assist the Debtor with respect to negotiations with
creditors for the purpose arranging a feasible Plan of
Reorganization;

     (f) prepare on behalf of the Debtor the necessary legal papers
or documents as may be required in this case;

     (g) appear before the Bankruptcy Court, or any other court in
which the Debtor to assets a claim or defense directly or
indirectly related to this bankruptcy case;

     (h) collaborate with other professionals which may be retained
within the bankruptcy cases per Section 327 to prosecute the rights
of the Debtor and achieve the reorganization goals delineated; and

     (i) perform such other legal services for the Debtor as may be
required in these proceedings or in connection with the operation
of the business as the case may require.

The firm will be paid at these hourly rates:

     Wigberto Lugo Mender, Attorney      $350
     Senior Associate Attorneys          $275
     Junior Associate Attorneys          $200
     Legal and Financial Assistants      $150

In addition, the firm will seek reimbursement for expenses
incurred.

The firm received a prepetition retainer of $35,232 and
post-petition retainer of $75,000 from the Debtor.

Mr. Mender disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.

The firm can be reached through:

     Wigberto Lugo Mender, Esq.
     Lugo Mender Group, LLC
     100 Carr. 165 Suite 501
     Guaynabo, PR 00968
     Telephone: (787) 707-0404
     Facsimile: (787) 707-0412
     Email: wlugo@lugomender.com

                 About Asociacion Hospital El Maestro

Asociacion Hospital El Maestro, Inc. sought relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 25-03780) on
Aug. 25, 2025, listing under up to $50 million in both assets and
liabilities.

Judge Enrique S. Lamoutte Inclan oversees the case.

The Debtor tapped Wigberto Lugo Mender, Esq., at Lugo Mender Group,
LLC as counsel and CPA Luis R. Carrasquillo & CO, PSC as financial
consultant.


OMEGA INVESTIGATION: Hires Alexis Fuentes-Hernandez as Counsel
--------------------------------------------------------------
Omega Investigation Services, Corp. seeks approval from the U.S.
Bankruptcy Court for the District of Puerto Rico to employ Alexis
Fuentes-Hernandez, Esq., an attorney practicing in San Juan, Puerto
Rico, to handle its Chapter 11 case.

The attorney will be billed at an hourly rate of $250 plus
out-of-pocket expenses.

The attorney received a retainer of $10,000 from the Debtor.

Mr. Fuentes-Hernandez disclosed in a court filing that he is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.

The attorney can be reached at:

     Alexis Fuentes-Hernandez, Esq.
     366 Calle Fortaleza, Fl. 2
     San Juan, PR 00901

              About Omega Investigation Services Corp.

Omega Investigation Services Corp. is a company presumably
providing investigation and security-related services based in San
Juan, Puerto Rico.

Omega Investigation Services sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 25-03647) on August
15, 2025. In its petition, the Debtor reports estimated assets
between $100,000 and $500,000 and estimated liabilities between
$500,000 and $1 million.

The Debtor is represented by Alexis Fuentes-Hernandez, Esq.



=============
U R U G U A Y
=============

URUGUAY: Digital Currency Plans Signal Shift Toward Finc'l Control
------------------------------------------------------------------
Rio Times Online reports that Uruguay's Central Bank has tapped
veteran economist Adolfo Sarmiento to lead its new digital currency
initiative.  By assigning a former policy chief to this role, the
bank clearly moves from neutral cash management to an era of
state-centered financial oversight, according to Rio Times Online.

This project revives Uruguay's 2017–18 e-Peso pilot, which issued
20 million digital pesos - about US$670,000 - to 10,000
participants via the national telecom, the report notes.  The trial
ran smoothly, cost the central bank nothing and let users transact
offline, the report relays.

Officials then destroyed all e-Pesos and quietly studied next
steps, the report discloses.  Now, with Sarmiento at the helm,
regulators intend to relaunch that experiment on a broader scale,
the report says.

Global momentum for central-bank digital currencies (CBDCs) has
surged: 134 countries, representing more than 98 percent of world
GDP, explore their own versions, the report relays.

Sixty-nine have advanced to pilot or development stages, the report
notes.  Uruguay aims to reclaim its early-mover advantage in Latin
America by shifting from digital-cash experimentation to full-blown
issuance, the report discloses.

The report says that this move fits a broader left-leaning trend:
governments leverage digital money to gain real-time visibility
into every payment.  Uruguay already boasts nearly universal bank
accounts and keeps inflation within its 3 – 6 percent target, the
report says.

Yet by embedding digital peso code into every transaction,
authorities can monitor flows, enforce compliance and potentially
restrict or reward behaviors, the report relates.

     Uruguay Tests State-Controlled Digital Currency Model

The bank proposes a two-tier system: it will mint tokens, but
private banks and fintechs will manage distribution. Small
transactions might remain anonymized, while larger transfers
require full identification, the report discloses.

This design aims to limit privacy only where authorities deem it
necessary, reinforcing anti-money-laundering rules, the report
says.  Uruguay's recent fast-payment rollout, Toke, shows how
quickly regulators can adopt surveillance-ready tools, the report
relays.

By integrating QR-code transfers into daily life, the state builds
capacity to track spending patterns and tax compliance instantly,
the report notes.  Critics warn that digital currencies open the
door to unprecedented governmental reach into private lives, the
report discloses.

Once people rely on digital pesos, central banks could impose
transaction limits, freeze accounts or alter incentives by
adjusting programmable rules, the report says.

Proponents argue for efficiency and financial inclusion, but these
benefits come hand-in-hand with deeper state control over money,
the report relays.

As Uruguay charts this course under a left-oriented administration,
its digital currency plans underscore a global shift: monetary
innovation no longer resides solely with private banks or
decentralized networks, the report notes.

Instead, sovereign institutions seek direct claims on our wallets,
blending payments, policy and power in one programmable ledger, the
report discloses.

For citizens and businesses, the promise of convenience carries an
unmistakable trade-off: digital cash at the cost of financial
autonomy and privacy, the report adds.


URUGUAY: Minister Oddone Shuns Chainsaw for Modest Tax Hikes
------------------------------------------------------------
Ken Parks at Bloomberg News reports that Uruguay's new left-wing
government plans to lower the budget deficit through tax increases
early in its term to avoid politically contentious spending cuts or
additional levies later on, according to Finance Minister Gabriel
Oddone.

The mandate given to President Yamandu Orsi in last November's
election "isn't a chainsaw," Oddone said in an interview, according
to Bloomberg News.  "People don't think the state is corrupt.
Uruguay's social contract is guaranteed by the state," he added.

Bloomberg News relates that Orsi's measured approach to healing
public finances contrasts with the harsh austerity championed by
neighbouring Argentina's leader, Javier Milei, who has fired
thousands of civil servants and shuttered entire ministries.
Spending cuts would have created "enormous" political tensions and
violated the government's campaign promises, Oddone said in his
Montevideo office, Bloomberg News says.

The government, which started its five-year term in March, is
asking Congress for more tax revenue to narrow a
wider-than-expected deficit and make good on pledges to boost
spending on social programs and policing, Bloomberg News notes.

Oddone's budget proposes raising government revenue by 1.6
percentage points of gross domestic product by 2029, mainly through
more efficient tax collection, a global minimum corporate tax on
multinationals and new levies such as taxing duty-free parcels,
Bloomberg News relays.  Those moves should generate enough revenue
to start cutting the deficit in earnest in 2027, the finance
minister said, Bloomberg News discloses.

The budget sees the deficit falling to 2.6 percent of GDP in 2029,
when Uruguayans are due to choose a new president and Congress,
from 4.1 percent this year, Bloomberg News relays.  Critics say the
administration risks missing those targets by tackling the deficit
in the second half of Orsi's term when he will face political
pressure to boost spending ahead of the election, Bloomberg News
says.  S&P Global, Moody's Ratings and Fitch Ratings have all
affirmed Uruguay's investment grade credit rating and stable
outlook in the last 12 months, Bloomberg News notes.

"If predictions about growth and the global outlook don't hold any
surprises for us, this scenario of fiscal convergence is enough to
stabilise the ratio of debt to GDP" at sustainable levels, Oddone
said, Bloomberg News notes.

Uruguay's commitment to political and economic stability is paying
dividends, Bloomberg News discloses.  Investors poured billions of
dollars into pulp mills in recent decades, and Alphabet Inc's
Google is building a major data centre near the capital, Bloomberg
News relays.  The billionaire founders of Latin America's biggest
tech companies own homes in the country of 3.5 million people
wedged between Argentina and Brazil, Bloomberg News says.

However, a costly welfare state is still failing many residents,
especially children under six whose poverty rate of 32 percent is
more than five times that of the elderly, Bloomberg News discloses.


Orsi's left-wing Frente Amplio party controls the Senate but needs
two votes from opposition lawmakers in the lower house to pass the
five-year financial plan, Bloomberg News says.  Oddone didn't rule
out other measures to tame the deficit if Congress doesn't approve
tax increases or if government revenues fall short, Bloomberg News
relays.

"All tools are on the table and all of them can be used depending
on the scenario because fiscal stability is key" to social
stability, he added.

Oddone's budget forecasts growth averaging 2.4 percent a year
during the government's term, compared to just 1.1 percent in the
previous decade when the pandemic and droughts battered the
economy, Bloomberg News notes.

The government wants to make Uruguay an easier place to do business
by cutting red tape, trimming export and import taxes and
streamlining the approval process for investment tax breaks,
Bloomberg News discloses.  Oddone didn't rule out offering lower
power rates to energy intensive projects like data centers and
green hydrogen plants, Bloomberg News notes.

At least three companies are considering Uruguay to host new data
centres, according to Isabella Antonaccio, who heads the Finance
Ministry's free-trade zone unit, Bloomberg Newssays.

"Uruguay isn't the only eligible location," she said.  "We as a
country are proactively trying to make Uruguay the chosen location
if they happen in the region," she added.



                           *********


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
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Information contained herein is obtained from sources believed to
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of the same firm for the term of the initial subscription or
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