251107.mbx

251107.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, November 7, 2025, Vol. 26, No. 223 Headlines B E R M U D A GOLAR LNG: S&P Assigns 'B' Issuer Credit Rating, Outlook Stable B R A Z I L BRAZIL: 'Digital Real" Drex Project Collapses BRAZIL: Taxing Streaming Giants to Save Local Cinema JBS SA: To Pay $1.1 Million to Settle N.Y. Climate Suit OCEANICA ENGENHARIA: Fitch Affirms B- LongTerm IDRs, Outlook Stable C A Y M A N I S L A N D S ITTIHAD INT'L: Fitch Hikes IDR to 'BB-', Outlook Stable ITTIHAD INT'L: S&P Rates (P)'BB-' Rating on Unsec. Sukuk Certs J A M A I C A JAMAICA: Price Freeze Enforced as Shoppers Report Mark-ups P U E R T O R I C O CONCORDE METRO: Unsecureds Will Get 100% of Claims over 24 Months HOGAR LUZ: Unsecured Creditors Will Get 10.22% of Claims in Plan UNIVERSITY OF PUERTO RICO: S&P Withdraws 'CC' LT Bond Ratings T R I N I D A D A N D T O B A G O TRINIDAD & TOBAGO: Forex Allocations Disrupted Due to Delays - - - - - ============= B E R M U D A ============= GOLAR LNG: S&P Assigns 'B' Issuer Credit Rating, Outlook Stable --------------------------------------------------------------- S&P Global Ratings assigned its 'B' issuer credit rating to Golar LNG and its 'B-' issue rating to its notes. The stable outlook reflects S&P's expectation that Golar will deliver stable operating and financial performance in line with S&P's base case. Golar LNG, a Bermuda-registered operator of two floating liquified natural gas (FLNG) vessels and one vessel under conversion, issued $500 million of 7.5% senior notes due 2030 to partly refinance existing debt and for general corporate purposes. The company provides tolling services on a take-or-pay basis via long-term contracts and has little downside exposure to commodity prices or volume risk, which results in highly predictable minimum cash flows. Still, it operates in high- and very high-risk countries, and S&P forecasts its gross debt to EBITDA will materially exceed 5.0x during the next few years. S&P said, "S&P Global Ratings' 'B' issuer credit rating on Golar LNG and 'B-' issue rating on the company's notes are in line with the preliminary ratings we assigned on Sept. 22, 2025. Our base-case assumptions have not changed, therefore there are no changes to our credit metrics following the issuance of the notes." Golar's current and future exposures to high- and very high-risk countries, increasingly to Argentina, are key rating constraints. Despite being registered in Bermuda and having management in Europe, Golar's two FLNG vessels--FLNG Gimi (owned) and FLNG Hilli (leased under a financing arrangement with a mandatory purchase obligation at the end of the financing period)--operate in regions that S&P views as high risk. FLNG Gimi started its 20-year contract offshore from Mauritania and Senegal in June 2025, while FLNG Hilli is in the final year of its current contract in Cameroon. In 2027, following the completion of its contract with Perenco and SNH in mid-2026 and pre-redeployment upgrades, FLNG Hilli will commence its 20-year tolling contract with SESA in Argentina. Moreover, Golar's new vessel MKII, to be converted from liquified natural gas (LNG) carrier and enter operations by 2028, will operate in Argentina, increasing Golar's exposure to the country to about 80% of EBITDA. S&P said, "We view Golar's increasing exposure to Argentina as a central weakness in the company's credit profile. Our long-term foreign currency sovereign credit rating on Argentina is 'CCC', and on Feb. 17, 2025, we lowered the long- and short-term local currency sovereign credit ratings to 'SD/SD' (selective default)." The government has recently had some success in addressing key challenges, such as high inflation, but the country's macroeconomic situation remains fluid and difficult to predict. Argentina has a track record of frequent changes in political and economic policies, which have significantly affected international and local businesses. It has also defaulted several times, and the government has imposed currency restrictions on occasion. The current administration has taken steps to attract foreign investors and has granted Golar a special RIGI regime (Regimen de Incentivo para Grandes Inversiones). RIGI protection represents a stable regulatory, tax, and monetary regime, but whether this would survive a change in the country's leadership remains uncertain. Golar's contractual and structural protections should mitigate some risks, but it is exposed to the financial systems of the countries it operates in. Golar aims to protect itself from high-risk jurisdictions by maintaining offshore bank accounts and having offtakers pay into those in U.S. dollar under all contracts. These measures will allow it to accumulate liquidity in low-risk jurisdictions and service its debt from those jurisdictions if there are disruptions to transborder payments or any other operational interruption. S&P said, "We also recognize that FLNGs are self-propelling vessels, located offshore, which mitigates certain physical risks. They can be relocated if a contract is lost or if other obstacles arise. These mitigants lead us to rate the company above our 'CCC' foreign currency sovereign rating on Argentina, our 'B-' transfer and convertibility assessment, and our 'B-' foreign currency sovereign ratings on Cameroon and Senegal." S&P said, "Country-related risks are not fully mitigated, in our view. In Cameroon and Argentina, payments to Golar are ultimately made by local companies. In Cameroon, they are made by Perenco Cameroon (not rated) from a local bank account. In Argentina, the payment is made by Southern Energy SA, an Argentina-incorporated joint venture in which Golar owns a stake. The documentation also includes guarantees from Southern Energy's other parent companies--YPF (B-/Stable/--), Pampa Energia (B-/Stable/--), Pan American Energy (not rated), and Harbour Energy (BBB-/Stable/--)--in case of Southern Energy's inability to pay or if a contract is terminated. However, three of the four parent companies are Argentinian companies, which are bound by the same potential credit constraints as the sovereign. The contracts also incorporate insurance against the risk of expropriation, but the timing of payments under potential claims might not help prevent a default, according to our definition, given the number of jurisdictions involved. "We forecast high leverage over the next few years, with gross debt to EBITDA above 5.0x, reflecting operational expansion costs and Hilli's relocation. With the new contract starting in Mauritania/Senegal, Golar's EBITDA will increase toward $370 million this year, from $252.2 million in 2024. However, in 2026, Hilli will be relocated to Argentina to start a new contract and will generate revenue for only about six months, which will affect Golar's annual results. Golar has also begun work on MKII, which will cost about $1.8 billion over 2025-2028 and will materially increase its debt, although we note that Golar completed the conversion of FLNG Hilli and FLNG Gimi within planned costs and schedule. This leads us to forecast Golar's gross S&P Global Ratings-adjusted debt to EBITDA increasing toward 14.0x-15.0x in 2026, from 4.9x in 2024 and 8.5x in 2025. We fully consolidate the cash flows and debt related to Gimi, which is 70% owned by Golar, and we do not net Golar's sizable cash balances to calculate our financial ratios. "Leverage could start to reduce meaningfully in 2028, when MKII starts to generate cash flows with EBITDA exceeding $600 million and capital expenditure (capex) decreases. However, the pace of deleveraging would depend on whether the company decides to build another vessel, which we see as a possibility. Golar will also likely continue paying dividends regularly despite high leverage in coming years. We anticipate it paying about $100 million of dividends annually over the forecast period, in addition to distributions to minority shareholders of Gimi of about $160 million this year (assuming the Gimi is refinanced during Q4 2025) and $20 million-$30 million annually from 2026, which will further limit its deleveraging capacity." Absent sovereign-related risks, the company's tolling business provides it with stable and predictable cash flows. Golar LNG occupies a leading position in terms of capacity and the number of assets in the global FLNG market, which is a sector with high technological, financial, and operational barriers to entry. FLNG also benefits from the growing demand for LNG and the increased willingness to diversify energy sources, particularly in Europe. As a provider of tolling services, Golar does not procure, own, or sell the commodity (natural gas, LNG). Also, it does not provide 100% of the theoretical availability of an FLNG vessel; nor does it commit the vessel to be available 100% of the time, which gives it sufficient headroom for maintenance and/or additional works. As soon as Golar provides contractual availability, it receives a base tolling fee that is not exposed to the availability of feedstock (natural gas) or price fluctuations for either feedstock or product (LNG). The feedstock and product are owned and sold by its customers. Golar's contracts include a commodity-linked component, under which it receives extra payments if the LNG price exceeds a certain minimum. S&P said, "In our base case, this commodity-linked component never exceeds 15% of EBITDA under our current gas price assumptions, which we believe results in stable and highly visible cash flows and EBITDA. Contract cash flows depend on counterparties that we do not view as having strong credit quality. The exception is BP (A-/Stable/A-2), which is one of the counterparties in the Mauritania/Senegal contract." S&P said, "We rate the notes 'B-', one notch below our issuer credit rating on Golar, because they are structurally subordinated to the debt of subsidiaries. We calculate that there is more than 50% of debt in the capital structure that has structural or contractual priority to the notes. We also expect the company to keep using asset-backed financing in the future. The senior unsecured notes have no upstream guarantees from the operating subsidiaries, where most of Golar's largely secured debt sits. We used our structural subordination analysis to derive our rating on the notes, rather than our recovery analysis, given the countries that Golar operates in. We do not carry out a recovery analysis in Bermuda (the country of its registration), the Marshall Islands (country of FLNG registration), or Cameroon, Mauritania, Senegal, and Argentina (countries of operations). In certain cases, we do a recovery analysis for shipping companies with vessels registered in the Marshall Islands, when we assess diversification as high due to the large number of vessels dispersed across the globe, which mitigates certain country-related risks. However, in the case of Golar, both vessels will be stationed in one location for a long time. We also note that Golar owns only one FLNG, Gimi, while FLNG Hilli is leased under a financing arrangement, with the company having a mandatory purchase obligation at the end of the financing period and purchase options at specific dates. "The stable outlook reflects our expectation that the company will continue to deliver stable operating performance with the successful start-up of its contract in Mauritania and Senegal. We also expect that FLNG Hilli will complete its Cameroon contract and relocate FLNG Hilli to commence its contract with SESA in Argentina in 2027. "In our base case, we assume S&P Global Ratings-adjusted debt to EBITDA will increase toward 13.0x-15.0x in 2026-2027, from 4.6x in 2024, as a result of elevated capex used to build a third vessel, MKII, as well as lower revenue from the FLNG Hilli vessel due to its relocation. We expect Golar will maintain adequate liquidity and reasonable cash balances at its offshore bank accounts. "The stable outlook also assumes stable political, economic, and financial environments in Golar's countries of operations, allowing it to continue doing business without disruptions and to receive payments for its services, into offshore accounts, to service its debt. "We could lower our rating on Golar if it suffered a major operational disruption that led to a material decline in cash flow generation, causing higher leverage and liquidity pressures." More aggressive financial policies, including large acquisitions, higher capex, and shareholder distributions, or other material cash outflows could lead to a downgrade. Material deteriorations in the political, economic, and financial environments in its countries of operations, which undermined Golar's operations or its ability to receive payments into its offshore accounts, could also lead to a downgrade. S&P said, "If we were to improve our view of country risk in Argentina, where Golar's operations will be heavily concentrated in the future, we could consider an upgrade. Additional credit enhancements, such as reduced exposure to Argentina, might also support a higher rating. Over the longer term, we could consider raising our rating if Golar's leverage declines, improving its EBITDA interest coverage ratios towards 2.0x." =========== B R A Z I L =========== BRAZIL: 'Digital Real" Drex Project Collapses --------------------------------------------- Richard Mann at Rio Times Online reports that Brazil's ambitious experiment with a state-controlled digital currency has ended in failure. After four years and billions in investment, the Central Bank has shut down Drex, its blockchain-based "digital real," according to Rio Times Online. Officials conceded they could not reconcile the project's core contradictions — the demand for financial privacy with the government's desire for control, the report relays. The decision, announced, marks a rare admission of defeat for an institution that had positioned Drex as a cornerstone of its financial modernization agenda, the report relays. Built on the Hyperledger Besu blockchain, the platform was supposed to revolutionize payments, tokenize assets, and integrate with the country's wildly successful Pix system, the report discloses. Instead, it became a cautionary tale about the limits of state-led innovation in an era where decentralization and individual privacy are non-negotiable for markets and citizens alike, Rio Times Online relates. Critics, particularly from conservative and free-market circles, had long warned that Drex risked becoming a tool for surveillance and financial overreach, the report notes. Their concerns proved prescient, the report says. The Central Bank's own technical team concluded that the system's design - which required absolute transparency for regulators while promising anonymity to users - was fundamentally flawed, the report notes. As one industry expert put it, "You can't have banking secrecy in a network where the state holds the master key." High operational costs and resistance from private banks, wary of ceding ground to a government-run platform, sealed its fate, the report notes. Brazil shelves Drex as fintechs lead digital finance shift The project's collapse is a setback for the current administration, which had championed Drex as a way to extend state influence over the digital economy, the report says. Yet it is a victory for those who argued that financial innovation should be driven by the market, not bureaucrats, the report notes. The Central Bank now says it will step back, allowing private companies to lead the next phase of digital finance - an implicit acknowledgment that top-down solutions often fail where organic, competitive ones succeed, the report discloses. What comes next remains uncertain, the report relays. The bank has promised a new, more modest approach, focusing on practical applications like Open Finance and credit guarantees rather than grand technological visions, the report notes. Meanwhile, Brazil's thriving fintech sector, already a global leader in instant payments and tokenization, is moving ahead without waiting for government direction, the report relays. Stablecoins, which now dominate 90% of the country's digital asset transactions, are filling the void left by Drex's demise, the report says. Internationally, Brazil's experience mirrors a broader retreat from central bank digital currencies, the report discloses. From the U.S. Federal Reserve to the Bank of England, institutions are pumping the brakes on CBDCs, deterred by the same privacy concerns and ballooning costs that doomed Drex, the relays. The lesson is clear: in the digital age, trust is earned through openness and competition, not central planning, the report notes. For Brazilians, the end of Drex removes the specter of a financial system where every transaction could be tracked, analyzed, or restricted by authorities, the report discloses. For the world, it is a reminder that the future of money will be shaped not by government decrees, but by the choices of individuals and businesses in a free and competitive marketplace, the report says. The Central Bank's next steps will reveal whether it has truly learned that lesson - or if it remains tempted by the allure of control, 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: Taxing Streaming Giants to Save Local Cinema ---------------------------------------------------- Rio Times Online reports that Brazil is making waves in the digital world with a new law that taxes streaming giants like Netflix and Disney+. The goal? To pump money into the country's film industry. But as with any big change, there are two sides to this story. On one hand, the new tax, ranging from 0.5% to 4% of a company's annual revenue, promises to funnel funds into Brazilian cinema, according to Rio Times Online. It's a move that could give local filmmakers a much-needed boost, helping them compete with big-budget foreign productions, the report notes. Plus, there's a sweetener for streaming services: if they invest in Brazilian content, they get a hefty tax break, the report relays. But here's the catch: critics say this new tax could mean higher prices for viewers, the report discloses. They argue that it might stifle competition, making it harder for new players to enter the market, the report notes. And with the country's economy still recovering, some worry that this could be a step backwards for consumers. The bill has sparked a heated debate, the report discloses. 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. JBS SA: To Pay $1.1 Million to Settle N.Y. Climate Suit ------------------------------------------------------- Miles J. Herszenhorn at Bloomberg News reports that JBS SA, the world's largest meatpacker, has agreed to pay $1.1 million to settle a lawsuit by the state of New York over allegations the company misled the public about reducing the impact of its operations on the environment. As part of the settlement, announced Nov. 3 by New York Attorney General Letitia James, Brazil-based JBS agreed to revise language related to the company's environmental marketing and produce annual reports to James' office, according to Bloomberg News. "New Yorkers deserve the truth when it comes to the environmental impact of the products they buy," James said in a press release, Bloomberg News relays. "My office will always hold companies accountable when they mislead New Yorkers and harm our planet," he added. In a statement, JBS said the settlement "does not reflect an admission of wrongdoing," Bloomberg News notes. The company's USA unit said it "remains driven to advance sustainable agriculture. We maintain a continued focus on investing in practical solutions that strengthen the resilience of the food system," Bloomberg News discloses. JBS USA ranks No. 68 on the Transport Topics Top 100 list of the largest private carriers in North America and No. 10 among agriculture/food processing carriers, Bloomberg News relays. James sued in February 2024, alleging the company had touted its efforts to achieve "net zero" greenhouse gas emissions by 2040 despite having "no viable plan" to meet that commitment, Bloomberg News notes. A New York court tossed James' suit earlier this year, but allowed the attorney general's office 90 days to file an amended complaint, Bloomberg News relays. The settlement comes less than five months after JBS began trading on the New York Stock Exchange, Bloomberg News says. The company's long-awaited U.S. listing proved highly divisive, drawing attention from lawmakers in Washington and fierce opposition from environmental groups, Bloomberg News discloses. The $1.1 million payment will be made to the Cornell University's College of Agriculture and Life Sciences' New York Soil Health and Resiliency Program for the purpose of "supporting climate-smart agriculture," per the terms of the settlement, Bloomberg News notes. James' office said the funds will "help New York farmers adopt best practices to reduce emissions, increase resiliency, and enhance productivity," Bloomberg News adds. About JBS SA JBS S.A. is a Brazilian company that is a large meat processing enterprise, producing factory processed beef, chicken, salmon, pork, and also selling by-products from the processing of these meats. It is headquartered in Sao Paulo. It was founded in 1953 in Anapolis, Goias. As reported in the Troubled Company Reporter-Latin America in August 2021, S&P Global Ratings revised the global scale outlook on JBS S.A. (JBS) and its fully owned subsidiary JBS USA Lux S.A. (JBS USA) to positive from stable and affirmed its 'BB+' issuer credit rating. The recovery expectations remain unchanged, and S&P affirmed the 'BB+' ratings on the senior unsecured notes and the 'BBB' ratings on the secured term loans. OCEANICA ENGENHARIA: Fitch Affirms B- LongTerm IDRs, Outlook Stable ------------------------------------------------------------------- Fitch Ratings has affirmed Oceanica Engenharia e Consultoria S.A.'s (Oceanica) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'B-' and Oceanica Lux's senior secured notes, backed by Oceanica, at 'B-' with a Recovery Rating of 'RR4'. Fitch has also removed the ratings from Rating Watch Negative (RWN) and assigned the corporate ratings a Stable Outlook. Fitch has resolved the Rating Watch Negative following Oceanica Lux's successful USD150 million retap of its senior secured notes due 2029, completed at 3Q25. The transaction mitigated prior liquidity concerns highlighted in 2Q25. The ratings continue to reflect the company's limited scale, client concentration, and moderate contract renewal risk, as well as narrow interest coverage and moderate leverage. The ratings are supported by a sizable BRL8.8 billion backlog, providing revenues visibility over the next four years, and by long-standing relationship with Petrobras. Key Rating Drivers Limited Global Scale: Oceanica operates at a smaller scale within the capital-intensive offshore infrastructure services sector, which features moderate barriers to entry. Despite a sizable BRL8.8 billion backlog that provides about four years of revenue visibility (Fitch assumes c.BRL2.0 billion executed per year), the company remains exposed to re-contracting risk. While Oceanica holds a strong position in Brazil, its fleet size and service breadth are at the lower end relative to larger, more diversified international peers. Client Concentration Mitigated: Oceanica mitigates Petrobras' 100% revenue concentration by structuring longer contract terms that average between 1,000-1,500 days, compared to a global average of 300-400 days. The longer terms result in the company's day rates lagging global price changes, but they are more resilient during downcycles. The company's revenue is highly concentrated in the volatile oil and gas (O&G) sector, with Petrobras accounting for over 90% of sales. Most current contracts were signed at high day rates, so a key risk for Oceanica is a potential oil bear market during the 2027-2028 re-contracting season. FCF Positive: Oceanica is expected to generate positive FCF as of 2025. Fitch projects a criteria-based EBITDA of BRL700 million in 2025 and BRL830 million in 2026, a substantial improvement from the BRL190 million reported in 2024 and BRL290 million in 2023. EBITDA rose as the company began operating several contracts at higher day rates after completing a longer-than-expected mobilization phase that pressured 2024. Annual FCF is estimated at BRL50 million in 2025 and 2026, following average annual capex of BRL300 million, mostly to upgrade vessels and start the remaining contracts. Gradual Deleveraging: Leverage should trend down as earnings expand, providing more sensitivities headroom. Fitch forecasts total and net leverage at approximately 4.5x and 3.7x in 2025, improving to about 3.7x and 3.2x in 2026, from 14.7x and 13.6x in 2024, as EBITDA growth outpaces incremental debt. The CFO minus capex to total debt ratio should remain modest at around 1.5% through 2026, then improve materially from 2027 as capex tapers toward maintenance levels. Brazil Slightly Better: Fitch views Brazil's market for oil field service providers as comparatively better positioned than many global markets. Multiple FPSOs are slated to come online over the next five years, and increasing well decommissioning activity should support demand for offshore services. Limited newbuilds of support vessels create a floor for day rates. Potential developments in the Equatorial Margin could add demand beyond the pre-salt begins to decline around 2027. Oceanica's contracts are predominantly linked to Petrobras' opex and lifting costs rather than capex, making Oceanica's revenue profile less sensitive to oil-price fluctuations. Peer Analysis Oceanica ratings are commensurate with technology and engineering service provider Expleo Group (B-/Outlook Negative), which is larger in scale and less leveraged, but operates with substantially lower margins and is facing a deterioration of credit metrics. Oceanica is several notches below Australian service provider Downer EDI Limited (BBB/Outlook Stable), which is even larger in scale, with stronger operating environment and conservative leverage that more than offsets its lower EBITDA margins. Key Assumptions - Number vessels: 18 in 2025 and 2026; - Average occupancy rate of 72% in 2025 and 91% in 2026; - Day rates as per contracts; - Investments of BRL288 million in 2025 and BRL300 million in 2026; - Dividends as of 2027 of near 25% of net profits. Recovery Analysis The recovery analysis assumes Oceanica would be reorganized as a going concern (GC) in bankruptcy rather than liquidated. Fitch assumes a 10% administrative claim. GC Approach Oceanica's GC EBITDA estimate reflects Fitch's view of a sustainable, post-reorganization EBITDA level upon which Fitch bases the enterprise value. The GC EBITDA assumption of BRL300 million represents the run-rate of midcycle day rates because of a stressed oil market at the moment of contract renewals. The approach considers all outstanding debt as senior secured. The choice of the 5.0x enterprise value (EV) multiple considered the historical bankruptcy case study exit multiples for peer in the diversified service companies have a wide range with a median of 6.0x, adapted to the Brazilian weaker operating environment. Liquidation Value Approach Fitch excluded this method because Brazilian bankruptcy law tends to favor the maintenance of a business to preserve direct and indirect jobs. In extreme cases where liquidation has been necessary, asset recovery has been very difficult for creditors. The allocation of value in the liability waterfall results in a recovery corresponding to 'RR3' for the senior secured notes of USD525 million. However, given that the assets are concentrated in Brazil (Group D, as per Fitch's criteria), the recovery is capped at RR4. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Net leverage greater than 4.5x on a recurring basis; - EBITDA margins below 25% on a recurring basis; - EBITDA interest coverage ratio below 1.5x; - Weakening liquidity profile; - Perception of failure in renewing contracts and/or material reduction in day rates. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Significant increase in business scale; - Net leverage at 2.5x on a recurring basis; - EBITDA Interest coverage ratio above 2.5x; - Maintenance of adequate liquidity; - Positive FCF. Liquidity and Debt Structure Oceanica's liquidity is expected to improve and remain at adequate levels over the next three years, with the conclusion of the USD150 million bond retap at the end of September 2025. Fitch believes the company materially improved its cash over short-term ratio from the weak 0.4x registered in 2Q25. With around 80% of the total debt maturing in October 2029, Oceanica's main debt commitments relates to the coupon service of BRL185 million every April and October. Fitch estimates Oceanica ended 3Q25 with a total debt of near BRL3 billion, excluding net hedge adjustments, with the vast majority composed of the 2029 senior secured notes. Narrow EBITDA interest coverage ratios of around 2.0x in 2025 and 2026 remain of point of attention for Fitch. Issuer Profile Oceanica is a leading provider of prevention, contingency and engineering services for offshore and subsea structures for Brazil's oil and gas industry. It operates 17 vessels, 55 ROVs, of which 13 are work class, with a BRL8.8 billion backlog. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Oceanica Lux senior secured LT B- Affirmed RR4 B- Oceanica Engenharia e Consultoria S.A. LT IDR B- Affirmed B- LC LT IDR B- Affirmed B- =========================== C A Y M A N I S L A N D S =========================== ITTIHAD INT'L: Fitch Hikes IDR to 'BB-', Outlook Stable ------------------------------------------------------- Fitch Ratings has upgraded Ittihad International Investment LLC's Long-Term Issuer Default Rating (IDR) to 'BB-' from 'B+'. The Outlook is Stable. Fitch has also upgraded the USD450 million sukuk trust certificates issued by Ittihad International Ltd to 'BB-' from 'B+' with a Recovery Rating of 'RR4'. The upgrade reflects Ittihad's lower leverage due to reduced working-capital facilities use and positive free cash flow (FCF). Fitch also expects an improvement in the EBITDA margin to 6% (Fitch-adjusted) by 2027 from about 4% in 2024, reflecting the new paper plant in Saudi Arabia and cost-efficiency measures. The Stable Outlook reflects its expectation of key metrics remaining within the updated rating sensitivities and an ongoing strong regional presence in paper and building materials manufacturing, and business services. Key Rating Drivers Lower Leverage: Fitch expects that Ittihad will be able to sustainably deleverage to below 4.0x (RMI-adjusted EBITDA leverage) during 2026, from 4.2x at end-2024, underpinned by debt repayments and increasing profitability. This is despite a partially debt-funded capex spike in 2025. Fitch expects increasing profitability from operating efficiencies, and management commitment to a conservative financial policy to support lower leverage. Sustainably Positive FCF after 2025: Fitch expects that after temporarily negative FCF in 2025 (reflecting capex increasing to around AED350 million due to the new Saudi Arabia paper plant), Ittihad will generate positive FCF of 1% to 3% between 2026 and 2028. Low but Improving Profitability: Fitch forecasts EBITDA margins will modestly improve towards 6% in 2028 from 5% in 2025, supported by the benefits of cost-efficiency measures such as the copper recycling plan and the new paper plant. Fitch also expects pulp prices to stabilise and lower shipping costs in the consumer goods segment. Ittihad's EBITDA margin is supported by the stable contribution from the infrastructure segment, which has mostly cost-plus contracts, mitigating volatile margins in the consumer goods segment. Competitive Regional Position: Ittihad's paper and building materials businesses benefits from being located close to import-export terminals. This is important for servicing its numerous end-markets where it has long-standing trade relationships and uses a diversified pool of suppliers from Latin America, North America, Europe and Africa, reducing dependencye on individual suppliers and supply routes. The company's production facilities allow it to be one of the largest importers of pulp in the region. Diversified Portfolio Mix: Ittihad operates in four key areas, with consumer goods manufacturing (including paper) and building materials manufacturing contributing around 30% and 36% of consolidated EBITDA in 1H25, respectively, around 25% coming from business (utility) services and 10% from healthcare services. The group's paper and tissue manufacturing division is the largest producer of uncoated wood-free paper (to global standards) and the largest importer of pulp in the region. Ittihad's Union Copper Rod subsidiary is the largest standalone producer of copper rods in the region. Commodity Price Hedging Framework: The company manages its working capital needs and profitability by working closely with its copper suppliers and passing on the LME copper price to its customers at the time of the purchase/sale, reducing its price risk exposure. In addition, Ittihad typically requires customers to pay cash in advance and secures accounts receivable with letters of credit or other guarantees. Peer Analysis Ittihad operates through its subsidiaries in various markets including steel, copper, cement, paper, tissue, waste management, infrastructure, and medical services. There are rated peers in these segments, but not across the whole portfolio. Fitch views Ittihad's financial policies, including leverage target, and working capital management as adequate for its rating. Ittihad's EBITDA margin is lower than industrial peers' such as Titan S.A. (BB+/Positive), Stora Enso Oyj (BBB-/Stable) and Suzano S.A. (BBB-/Positive) because of the large contribution of high-volume building material trading. Business diversification mitigates lower margins as consumer goods, utility services, and healthcare services balance the overall mix. Like JSC Uzbek Metallurgical Plant (B+/Stable), Ittihad remains exposed to commodity price fluctuations. Key Assumptions Fitch's Key Assumptions Within Its Rating Case for the Issuer - Neutral revenue in 2025 due to continued weakness in consumer goods, followed by average 4% annual growth on new capacity and better market conditions - Consolidated EBITDA margin improvement towards 6% by 2027 from 5% in 2025 led by cost efficiency and new paper plant - Working capital inflow of around AED60 million in 2025 and further annual outflows of AED40 million from 2026 reflecting ramp-up requirements for new plant and top line growth - Capex rise to 3% of revenues in 2025 related to new paper plant, reducing to around 1.5% from 2026 - No M&A - AED15 million of dividend payments a year RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - RMI-adjusted EBITDA leverage above 4.0x on a sustained basis - EBITDA interest coverage below 3.0x on a sustained basis - FCF margin sustainably below 2% - Adoption of a more aggressive financial policy with a lower percentage of inventories hedged or pre-sold Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - RMI-adjusted EBITDA leverage below 3.0x on a sustained basis - EBITDA interest coverage above 4.0x on a sustained basis - FCF margin above 3% on a sustained basis Liquidity and Debt Structure Ittihad had AED668 million of readily available cash, before AED120 million cash restriction (under its criteria), at end-June 2025 and an undrawn committed revolving facility of USD342 million (around AED1,250 million equivalent), after USD108 million was drawn during 2025. The issuer uses working-capital facilities as part of its commodity trading businesses, which are short term and backed by receipt of payments against commodity delivery. Refinancing risk is low for the short-term facilities as they are asset backed and Fitch assumes continuous rollover each year. Issuer Profile Ittihad is based in the United Arab Emirates, with operations across various segments of consumer goods manufacturing (paper and chemicals for different industries), infrastructure and building materials manufacturing (copper rods, steel bars and cement), business services and healthcare. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Ittihad International Ltd senior unsecured LT BB- Upgrade RR4 B+ Ittihad International Investment LLC LT IDR BB- Upgrade B+ senior unsecured LT BB- Upgrade RR4 B+ ITTIHAD INT'L: S&P Rates (P)'BB-' Rating on Unsec. Sukuk Certs -------------------------------------------------------------- S&P Global Ratings assigned its 'BB-' preliminary issue credit rating to Ittihad International II Ltd.'s (IIL-II) proposed senior unsecured sukuk trust certificate program. Various subsidiaries of Ittihad International Investment LLC (Ittihad; BB-/Stable/--) are guarantors of its contractual obligations under the proposed sukuk's terms. However, these guarantees do not contribute to the rating on the sukuk. IIL-II, a limited liability company incorporated in the Cayman Islands, is contemplating issuing trust certificates (sukuk). Under the sukuk documents, IIL-II will enter a purchase agreement with various subsidiaries, including IPM of Ittihad, as well as a lease agreement, a service agency agreement, a sale and substitution undertaking, a purchase undertaking, and a murabaha agreement with Ittihad. S&P understands proceeds will refinance existing sukuk and fund general corporate purposes. The preliminary 'BB-' issue rating on the sukuk reflects that the transaction fulfills the five conditions of S&P's criteria for rating sukuk: -- Ittihad provides sufficient contractual obligations for repaying the principal amount (through the purchase undertaking and the murabaha agreement) and the periodic distribution amounts (through the lease agreement where the rental rate will be calibrated to match the periodic distribution rate, in our understanding, and the murabaha agreement). -- The obligations under the sukuk legal documents are irrevocable. -- These obligations rank pari passu with Ittihad's other senior unsecured financial obligations. -- The company will cover all the costs related to the transaction under various obligations in the transaction documents. -- S&P said, "The documentation mentions a risk of a total loss event (TLE) and partial loss event (PLE). We rate the transaction under the assumption that their occurrence is remote, considering the overall rating on the transaction and the nature of these assets. We understand that the assets will include movable assets in Abu Dhabi and Dubai." The rating on the sukuk transaction is preliminary and based on draft documentation dated Oct. 29, 2025. Should the final documentation differ substantially from the draft version, the rating on the sukuk could be changed. This report does not constitute a recommendation to buy, hold, or sell the certificates. S&P Global Ratings neither structures sukuk transactions nor provides opinions with regards to compliance of the proposed transaction with Sharia. ============= J A M A I C A ============= JAMAICA: Price Freeze Enforced as Shoppers Report Mark-ups ---------------------------------------------------------- Karena Bennett at Jamaica Observer reports that under new orders issued by Prime Minister Andrew Holness on October 24, 2025, Jamaican retailers are prohibited from increasing prices on essential goods for the duration of the national disaster period. The directive, made under section 26(2) of the Disaster Risk Management Act (DRMA), and supported by the Trade (Sale of Goods During Period of Declaration of Threatened Area) (Tropical Storm Melissa) Order, 2025, bars price increases on food, water, medical supplies, building materials, and other key items, the report discloses. Violators face penalties of up to $1 million upon conviction before a parish court, the report says. Prime Minister Holness said the measure was necessary to protect Jamaicans from price gouging and ensure stability during the storm recovery, the report notes. Large supermarket chains say they fully support the order and have not implemented any price increases, even as they juggle higher logistics and restocking costs, the report says. Hi-Lo Supermarket, operated by GraceKennedy, said its prices remain unchanged and it has no intention of adjusting them during the declared period, the report discloses. "GraceKennedy fully supports this mandate — we do not, and will never, engage in price gouging," the company said. "While we continue to manage increased logistics and restocking demands, we have not implemented any price increases. Our priority remains ensuring product availability and supporting Jamaican families during this critical time," the report relays. The company added that strong pre-storm sales had forced some stores to draw on Christmas stock, but deliveries have since resumed and inventories are recovering, the report notes. Manufacturers and distributors such as Seprod Group say they are operating normally and see no reason for retail prices to rise, the report discloses. "We are in good shape overall. I do not see any major supply risk nor will there be any price change. Jamaicans can rest assured about their food supply chain resilience," Seprod CEO Richard Pandohie told the Jamaica Observer. The Consumer Affairs Commission (CAC) and the Ministry of Industry, Investment and Commerce have begun monitoring outlets to ensure compliance with the Trade Order, the report says. Consumers are being urged to retain receipts and report any cases of suspected price gouging via the CAC's hotline or website, the report notes. Under the DRMA, enforcement teams are empowered to investigate complaints and prosecute violators under both the Trade Act and disaster regulations, the report adds. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a positive rating outlook. In October 2023, Moody's upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to B1 from B2, and senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has been changed to positive from stable. In September 2024, S&P affirmed 'BB-/B' longterm foreign and local currency sovereign credit ratings on Jamaica and revised outlook to positive. ===================== P U E R T O R I C O ===================== CONCORDE METRO: Unsecureds Will Get 100% of Claims over 24 Months ----------------------------------------------------------------- Concorde Metro Seguros LLC filed with the U.S. Bankruptcy Court for the District of Puerto Rico a Disclosure Statement describing Plan of Reorganization dated October 20, 2025. The Debtor is a limited liability company organized under the laws of the Commonwealth of Puerto Rico. Concorde is engaged in the business of owning, managing, and leasing commercial real estate properties. The Debtor is the owner of several commercial office condominium units located within the Metro Medical Center Building (the "Building") in Bayamon, Puerto Rico. As of the Petition Date, the Debtor owned approximately twenty-five percent of the Building's rentable spaces, consisting of approximately 30,514 square feet of commercial office and retail space. Specifically, the Debtor owns the following units: Building A (Units A-101, A-102, A-701, A-702); Building B (Units B-501, B 502, B-503, B-504, B-505, B-506, B-601, B-602, B-603, B-604, B605, B-606); and FV Units (FV-1, FV-2, FV-3, FV-4) (hereinafter the "Property"). The Debtor purchased approximately thirty percent of the Building on or around 2015. Prior to the financial challenges that precipitated this bankruptcy filing, the Debtor operated a successful commercial real estate leasing business with multiple tenants occupying the Property. Since filing for Chapter 11 protection on March 24, 2025, the Debtor's financial condition and operating performance have been documented in detail through monthly operating reports filed with the Court. The reports demonstrate that the Debtor has maintained operations while managing its post-petition expenses and obligations in the ordinary course of business. Class 3 consists of allowed general unsecured claims of $5,000 or less. Total allowed claims: $39,536.99. Class 3 claimants shall receive 100% recovery. trough 24 equal consecutive monthly payments commencing on the Effective Date of the Plan. Debtor may accelerate the payments to claimants in this Class from the proceeds from the sales of Debtor's real estate units. Class 4 consists of all allowed general unsecured claims not included in Class 3, primarily comprised of the Asociacion de Condomines Metro Medical Center (HOA). Expected allowed claims: $185,095.44 (subject to objection and resolution of Adversary Proceeding No. 25-00016). Class 4 claimants shall receive 100% of their claims through 24 equal consecutive monthly payments commencing on the Effective Date of the Plan. Debtor may accelerate the payments to claimants in this Class from the proceeds from the sales of Debtor's real estate units. Class 5 Equity holders (Joseph C. LeBas, Jr. and William LeBas) shall retain their ownership interests in Concorde Metro Seguros LLC. No distributions shall be made to equity interest holders unless and until all allowed claims in Classes 1 through 4 have been paid in full. If surplus funds or assets remain after full payment of all creditor claims, equity holders shall be entitled to receive such surplus. Equity holders subordinate their interests to all creditor claims. The Plan will be funded through a combination of ongoing rental income from existing leases and proceeds from the sale of the Debtor's properties. The Debtor's primary source of revenue is the lease with the United States General Services Administration for the Social Security Administration Office, which generates stable rental income through March 5, 2027 from approximately 8,427 square feet of leased space. Additional rental income is derived from MMM Healthcare, LLC. The Debtor will continue to operate its real estate business in the ordinary course while implementing the Plan. The Debtor has retained Christiansen Commercial as its exclusive real estate broker to maximize the value of its assets through strategic marketing primarily focused on sales opportunities. Approximately 20,522 square feet (67%) of the Debtor's property remains vacant. The broker is actively marketing the properties to identify qualified buyers and maximize sale proceeds for the benefit of the estate and its creditors. The Debtor's reorganization strategy is predominantly focused on the sale of its real estate assets to maximize creditorsâ€™ recoveries. Debtor owns approximately 30,514 square feet of commercial office and retail space in the Building, consisting of Building A units (A-101, A-102, A-701, A702), Building B units (B 501 through B-606), and FV units (FV-1 through FV-4). The retention of Christiansen Commercial provides the Debtor with professional real estate expertise to market the properties, identify qualified buyers, and negotiate favorable terms to maximize value for the estate. A full-text copy of the Disclosure Statement dated October 20, 2025 is available at https://urlcurt.com/u?l=zOTGds from PacerMonitor.com at no charge. Concorde Metro Seguros LLC is represented by: Javier Vilarino VilariÃ±o & Associates LLC PO Box 9022515 San Juan, PR 00902-2515 Tel: (787) 565-9894 E-mail: jvilarino@vilarinolaw.com About Concorde Metro Seguros Concorde Metro Seguros LLC is a single-asset real estate debtor, as defined in 11 U.S.C. Section 101(51B). The Company's primary business involves managing the Metro Medical Center in Bayamon, Puerto Rico, which serves as its principal asset. Concorde Metro Seguros LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 25-01269) on March 24, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million each. The Debtor is represented by Javier Vilarino, Esq. at Vilarino and Associates LLC. HOGAR LUZ: Unsecured Creditors Will Get 10.22% of Claims in Plan ---------------------------------------------------------------- Hogar Luz Divina Mia Inc. filed with the U.S. Bankruptcy Court for the District of Puerto Rico a Small Business Plan of Reorganization under Subchapter V dated October 20, 2025. The Debtor manages and operates (3) three centers for adults with intellectual disabilities in accordance with the Standards, Regulations, Manuals, and other documentation prepared by the Division of Services for Persons with Intellectual Disabilities (DSPID) of the Health Department of PR. The Plan Proponent's financial projections show that the Debtor will have projected disposable income of $5,005.00. The final Plan payment is expected to be paid in January 2030. The Plan provides for the payment of creditors with income generated from Debtor's business operations and/or through the injection of capital contributions. Non-priority unsecured creditors holding allowed claims will receive distributions, which the proponent of this Plan has valued at approximately 10.22% of their allowed claim. This Plan also provides for the payment of secured, administrative and priority claims. Class 2 consists of Non-priority unsecured creditors. Consists of the allowed unsecured claims in the case. Each claim holder under this class will receive pro-rata distributions, as per the allowed amounts. Debtor's plan proposes a significant lump sum payment of $3,500.00 on the effective date. Based on the current allowed amounts, each claimholder in this class will receive approximately 10.22% of the allowed amount of their claim. Class 3 consists of Equity security holders of the Debtor. Consisting of Debtor's insiders and equity security holders, Debtor's shareholders, Nydia J Martinez Rodriguez and Liliana Mendez Martinez will not receive any distribution under the Plan of Reorganization but will retain their ownership interest over the corporation. The Debtor has implemented measures to streamline his financial operations. The Debtor will use the income generated from their business operations to fund the Plan and implement the provisions included herein. A full-text copy of the Plan of Reorganization dated October 20, 2025 is available at https://urlcurt.com/u?l=1ofATj from PacerMonitor.com at no charge. Counsel to the Debtor: Javier Vilarino, Esq. Vilarino & Associates, LLC P.O. Box 9022515 San Juan, PR 00902 Telephone: (787)565-9894 About Hogar Luz Divina Mia Inc. Hogar Luz Divina Mia Inc. is a residential care facility likely providing services for individuals with intellectual/developmental disabilities, mental health issues, or substance abuse problems based on its NAICS classification (6232). Hogar Luz Divina Mia Inc. sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 25-03287) on July 23, 2025. In its petition, the Debtor reports estimated assets up to $50,000 and estimated liabilities between $50,000 and $100,000. The Debtor tapped Javier Vilarino, Esq., at Vilarino & Associates LLC as counsel and Tamarez CPA, LLC as accountant. UNIVERSITY OF PUERTO RICO: S&P Withdraws 'CC' LT Bond Ratings ------------------------------------------------------------- S&P Global Ratings withdrew its 'CC' long-term rating and underlying rating (SPUR) on the University of Puerto Rico (UPR)'s series P and Q bonds. S&P said, "We also withdrew our 'CC' SPUR on the series 2000A bonds issued by the Puerto Rico Industrial, Tourist, Educational, Medical, and Environmental Control Facilities Authority for the Plaza Universitaria project. "The withdrawal reflects that we did not receive adequate and timely information necessary to maintain surveillance of the ratings, in accordance with our applicable criteria and policies. "In the case of UPR, we were seeking updated financial information, as well as an update on the status of its standstill agreement. "We also removed the ratings from CreditWatch, where they were placed with negative implications on Sept. 26, 2025." ===================================== T R I N I D A D A N D T O B A G O ===================================== TRINIDAD & TOBAGO: Forex Allocations Disrupted Due to Delays ------------------------------------------------------------ Vishanna Phagoo at Trinidad and Tobago Express reports that the Trinidad and Tobago Manufacturers' Association (TTMA) says while members have experienced temporary delays in accessing foreign exchange through the Exim Bank since the start of October, the situation is expected to be resolved soon once the national budget is passed and allocations resumed. Speaking with Express Business, TTMA president Dale Parson confirmed that "there has been a short delay due to the Budget being mid-October - later than expected - but we are optimistic that should be resolved shortly with the passing of the budget debate in Parliament. We are confident that allocations will be resumed," according to Trinidad and Tobago Express. The Exim Bank of Trinidad and Tobago, which provides U.S. dollars specifically to manufacturers and importers of essential goods, has reportedly been unable to release foreign currency allocations this month, the report notes. This stems from the close of the fiscal year in September and the delay in the approval of the 2025 national budget, the report discloses. He acknowledged the challenges this has posed but noted that manufacturers had anticipated some disruption, the report says. "It has been challenging but not surprising. We knew that the Budget must be passed before more allocations were made," said Parson, the report relays. According to Parson, ongoing communication has been maintained with both the Exim Bank and the Ministry of Finance, the report notes. "TTMA has been in contact with Exim and the Ministry of Finance. They are aware it's a pressing matter, especially for the upcoming Christmas season, but the Budget needs to be passed and sanctioned before allocations are released," he added. Despite the slowdown, Parson emphasised that manufacturers have not been forced to seek alternative, often costlier, sources of US dollars on the open market, the report relays. When asked if members had turned elsewhere for forex support, Parson said, "No." He also reiterated the critical role manufacturers play in bringing foreign exchange back into the local economy, the report notes. "Manufacturers are the only non-energy sector in T&T that repatriates 40% of every U.S. dollar we receive. So, if manufacturers receive US$1 from Exim Bank, we bring back in US$1.40. The Government is aware of this - it's their numbers," he explained, the report says. Parson is calling for the quick resumption of monthly forex allocations to support continued industrial activity, especially as businesses prepare for the Christmas season, the report notes. "The Exim Bank pays manufacturers' suppliers directly. These funds are used strictly to buy raw materials, equipment, parts and other indirect inputs into manufacturing unlike other importers that don't bring back one cent into T&T," he stressed, the report discloses. While the forex bottleneck has created short-term challenges, Parson remains confident in the system once allocations are reactivated post-budget approval, the report says. In July, the Express reported that small and medium-sized businesses were facing mounting challenges following a sudden halt in foreign exchange allocations from the State-owned EximBank, the report discloses. At the time, affected businesses said the bank had not released US dollars to clients for several weeks, citing bureaucratic delays linked to a shift in ministerial oversight and the absence of a functioning board, the report says. The pause coincided with EximBank's transfer from the Ministry of Finance to the newly formed Ministry of Trade, Investment and Tourism, which had yet to appoint a new board or streamline the approval process, the report relays. In response to questions from the Express then, Finance Minister Davendranath Tancoo and Trade Minister Satyakama Maharaj acknowledged the disruption and assured that corrective measures were being prioritised, the report notes. They said a new board and revised mandate aimed at improving accountability and transparency in forex allocations would soon be implemented, the report relates. The ministers also maintained that the Government was committed to expanding forex access to micro, small, and medium-sized enterprises (MSMEs), while attributing ongoing forex challenges to what they described as years of mismanagement under the previous administration, the report adds. At that time, affected companies told the Express they were being forced to dip into private reserves or depend on customers' US funds to sustain imports, a move they warned could not continue indefinitely, the report relates. Chamber heads also shared that some businesses were forced to turn to illegal avenues to access forex to sustain their businesses while others had no choice but to limit their operations, the report says. The forex freeze followed the launch of the SME Forex Window pilot project in April 2025, which was designed to provide SMEs with up to US$50,000 monthly to support business growth and stimulate economic activity, the report discloses. Chairman of the Confederation of Regional Business Chambers (CRBC) Vivek Charran highlighted that the issue extends beyond Exim Bank and noted that businesses are also unable to access forex from commercial banks, the report notes. In a telephone interview with Express Business, he said, "Getting forex from commercial banks is increasingly difficult and it leads to businesses unable to restock its shelves or pay suppliers." He added that while suppliers may have a credit facility, it does not guarantee that the products get clearance as some facilities are structured in a way that ensures suppliers get its payments before the container arrives, the report relays. Charran explained that a facility may allow for the buyer to pay a down payment and give them three months to pay off for the product while another may request a 50% of the cost and the entire fee is paid off by the time the container arrives, the report notes. Tancoo on Exim Bank in Budget Delivering the national budget on October 13, Tancoo said that foreign exchange shortages remain a challenge for businesses, limiting access to raw materials and production, the report relays. "The unfair practices at major commercial banks and the Exim Bank have exacerbated these shortages. This Administration will act decisively to stabilise the external position," Tancoo said, the report discloses. "By restoring energy production and creating an enabling environment for business and investment, we will increase foreign currency inflow. We will ensure that productive sectors have access to foreign exchange," he added. Tancoo said a new board was appointed at Exim Bank to help address the situation, the report relays. Last month, Edwin Chariah was appointed Exim Bank's chairman. The other members of the board are deputy chairman Suresh Maharaj, Nandini Narine, Bhushan Singh and Joseph Ridge Paul, the report recalls. "In his address to the appointees, Minister Maharaj underscored EXIMBANK's pivotal role in facilitating the growth and expansion of Trinidad and Tobago's non-energy export and manufacturing sectors—enhancing the nation's foreign exchange earnings, creating and sustaining employment, and empowering the exporting community through its trade finance portfolio," a release on the appointment stated, the report notes. Tancoo said Exim Bank will return to its proper mandate of supporting exporters through foreign-currency loans, the report says. "For the first year, repayments will be made in TT dollars, then in the currency of the loan. Transparent eligibility criteria and public reporting will ensure fairness, especially for SMEs," he 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 publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. 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