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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, November 18, 2025, Vol. 26, No. 230
Headlines
A R G E N T I N A
ARGENTINA: US$870-Million Boost of IMF Holdings Points to US Aid
BUENOS AIRES: New Term Note Issuance No Impact on Moody's B2 Rating
PLUSPETROL S.A.: Fitch Assigns 'BB' Rating to Sr. Unsecured Notes
B E R M U D A
UNITED ENERGY: Fitch Rates Proposed USD Sr. Unsec. Notes 'BB-'
B R A Z I L
AZUL SA: Unsecureds Will Get 0.7% to 1.9% of Claims in Plan
BANCO DO BRASIL: Cuts Net Income Outlook as Farmer Defaults Surge
BRAZIL: Bank Vows Tougher Rules After Surge in Cyberattacks
BRAZIL: Fitch Assigns 'BB' Rating to USD1.5B Sr. Unsecured Notes
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Fitch Affirms 'BB-' LT IDR, Outlook Positive
J A M A I C A
JAMAICA: Jamaica to Draw Down Another US$68.2MM From CCRIF
M E X I C O
ASCEND PERFORMANCE: Nov. 24 Plan Confirmation Hearing Set
P A N A M A
BAC INTERNATIONAL: Fitch Puts 'BB+' Long-Term IDR on Watch Evolving
- - - - -
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A R G E N T I N A
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ARGENTINA: US$870-Million Boost of IMF Holdings Points to US Aid
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Buenos Aires Times reports that Argentina's holdings at the
International Monetary Fund jumped last month by the same amount
that the US government's assets declined, as data from the lender
could indicate a new form of US financial aid to President Javier
Milei's government.
In October, Argentina's special drawing rights, the IMF's reserve
asset, increased by 640.8 million SDRs (US$870 million), while US
holdings fell by the same amount compared to September, according
to data published on the IMF's website, notes Buenos Aires Times.
On November 1, Argentina also made interest payments to the IMF
totaling about 621 million SDRs, which stems from the nation's own
debts with the lender in Washington, the report notes.
Press offices for the US Treasury Department, IMF and Argentina's
Economy Ministry didn't respond to requests for comment, while
Argentina's Central Bank declined to comment.
The SDRs are assets created by the IMF that are distributed to
countries in proportion to their quota, the report discloses.
Countries at the IMF can channel their SDR holdings to other
nations if asked, the report says.
To be sure, the IMF data doesn't confirm Argentina's SDR holdings
increased because it drew down on the swap line with the US, and
it's unclear if it's used the swap for other purposes so far, the
report notes. However, US Treasury Secretary Scott Bessent
acknowledged on MSNBC that Milei's government had tapped a "small
amount" of the swap line that the two nations signed last month,
the report relays.
The Treasury Department has not released any public details about
the terms of the agreement and has not responded to repeated
requests for comment on the aid program since Argentina's Central
Bank announced it on October 20, the report notes.
Bessent provided Milei, a top US ally in Latin America, with a
sweeping rescue package as the libertarian leader faced a market
sell-off before his party won midterm elections in late October and
turned around investors' sentiment, the report relays. Beyond the
US$20-billion swap, Treasury also bought Argentine pesos and
started talks with Wall Street banks to line up more financing for
Argentina, 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.
Moody's Ratings on July 17, 2025, upgraded Argentina's
long-term foreign currency and local currency issuer ratings to
Caa1 from Caa3 and changed the outlook to stable from positive.
The upgrade reflects Moody's views that the extensive
liberalization of exchange and (to a lesser extent) capital
controls, alongside a new International Monetary Fund (IMF)
program, support the availability of hard currency liquidity and
ease pressure on external finances. This reduces the likelihood of
a credit event. In January 2025, Moody's raised Argentina's local
currency ceiling to B3 from Caa1 and the foreign currency ceiling
to Caa1 from Caa3.
Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term
Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to
'CCC+' from 'CCC'. S&P Global Ratings, in February 2025 lowered
its local currency sovereign credit ratings on Argentina to
'SD/SD' from 'CCC/C' and its national scale rating to 'SD' from
'raB+'. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local
Currency Issuer Ratings to B (low) from CCC in November 2024.
BUENOS AIRES: New Term Note Issuance No Impact on Moody's B2 Rating
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Moody's Ratings comments that City of Buenos Aires (Buenos Aires or
the City) B2 ratings and stable outlook remain unchanged following
the City's announcement of its intention to resume the issuance of
Series 13 Notes (the Notes) for up to USD600 million under its
medium-term note program.
The planned issuance is part of the City's broader strategy to
relaunch the issuance of its senior unsecured medium-term notes
originally announced in December 2024. The Notes rating is aligned
with the City's long-term foreign-currency debt rating of B2 and
will rank pari passu with all its other unsecured and
unsubordinated debt obligations. The outlook is stable.
The Issuer intends to use the net proceeds of the issue of the
Notes to fund amortization payments in accordance with Law No.
6,504 as amended by Law No. 6,734, with no material effect on the
company's leverage and debt coverage metrics.
Moody's views the City of Buenos Aires' idiosyncratic risk profile
as relative stronger than the Government of Argentina (Caa1,
stable) because of the city's large economy, strategic importance
and track record of operating surpluses underpinned by a
consistently prudent fiscal approach.
Moody's further consider that Buenos Aires can withstand a
prolonged restriction on market access given that its
foreign-currency-denominated debt profile is adequate compared with
its liquidity and cash generation. Nonetheless, the significant
macroeconomic and financial links with the sovereign constrains the
issuer credit quality.
The Notes, which will constitute direct, unconditional, unsecured
and unsubordinated obligations of the City will be denominated and
payable in US dollars. Amortization will take place in three annual
installments and the notes will pay fixed interest rate on a
semi-annual basis. The issuance will be subject to the English
Law.
The stable outlook for the City of Buenos Aires is aligned with the
stable outlook for the sovereign rating and captures Moody's
expectations that economic and financial pressure faced by the city
will not change materially over the next 12-18 months. The outlook
also incorporates Moody's expectations that bondholders will not
face losses exceeding those captured in the B2 rating category.
For the City of Buenos Aires an upward rating movement would be
subject to the ratings' relative position to the Government of
Argentina's rating. An upgrade would further require the City of
Buenos Aires to demonstrate stronger resilience to the underlying
macroeconomic conditions than that of its peers.
A downgrade in Argentina's bond ratings or further systemic
deterioration, or both, would exert downward pressure on the
ratings. Increased idiosyncratic risks would also translate into a
downgrade.
The City of Buenos Aires is Argentina's capital and largest urban
center, functioning as an autonomous city with provincial-level
powers. It plays a central role in the country's political and
economic developments. It has a diversified revenue base, primarily
composed of local taxes—such as gross income and property
taxes—alongside service fees and intergovernmental transfers.
Buenos Aires benefits from a relatively high per capita income and
a strong institutional framework, though it also faces challenges
related to current expenditure and infrastructure demands.
PLUSPETROL S.A.: Fitch Assigns 'BB' Rating to Sr. Unsecured Notes
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Fitch Ratings has assigned a 'BB' rating to Pluspetrol S.A.'s
(PPSA) proposed benchmark size unsecured bonds. The net proceeds
will be used to refinance debt, capex, working capital, M&A in
Argentina and/or general corporate purposes. Fitch currently rates
PPSA's Long-Term Foreign Currency Issuer Default Rating (IDR) and
Local Currency IDR 'BB'. The Rating Outlook is Stable.
PPSA's ratings reflect a solid financial profile and growing scale,
supported by a USD500 million subordinated committed credit line
provided by sister company Pluspetrol Resources Corporation S.A.
(Pluspetrol Group).
The 'BB' FC IDR is four notches above Argentina's Country Ceiling
due to hard-currency (HC) cash held abroad and export revenue. The
credit line enhances PPSA's capacity to pay HC debt and highlights
the strategic importance of its assets.
The Stable Outlook reflects Fitch's expectation of PPSA maintaining
HC debt service coverage of at least 1.5x and leverage below 3.0x
by 2027.
Key Rating Drivers
Rating Above the Country Ceiling: PPSA's cash flow generation is
concentrated in Argentina (CCC+). The Long-Term FC IDR is not
constrained by Argentina's Country Ceiling (B-) given the company's
ability to cover hard currency debt service with export revenue and
cash held abroad, while maintaining a foreign currency debt service
coverage ratio above the threshold of 1.5x over the rating
horizon.
PPSA has a USD500 million subordinated committed credit line fully
available granted by Pluspetrol Group, which Fitch views as
substantial financial support that extends PPSA's capacity to pay
HC debt and highlights the strategic importance of PPSA's assets in
Argentina. This external material support, combined with HC cash
and cash flows, enables an uplift of up to four notches above the
Country Ceiling, in accordance with Fitch's Corporate Rating
Criteria.
Ample Financial Flexibility: PPSA's ample financial flexibility,
underpinned by the liquidity support granted by the Pluspetrol
Group, which allows the company to mitigate risks associated with
its high-risk operating environment.
Fitch forecasts FCF will be negative between 2025 and 2028 as the
company deploys its growth capex plan of around USD4.6 billion over
the same period. This capex is strategic, as the company has no
commitment capex on its concessions, and this program can be
adjusted to reflect market conditions. Fitch expects EBITDA
leverage to trend toward below 3.0x by fiscal 2027, with gross debt
at or below USD2.5 billion.
Growing Operating Scale: Fitch expects PPSA's production to reach
114,000 barrels of oil equivalent per day (boed) by fiscal 2026, a
49% CAGR from fiscal 2024, while proven (1P) reserves should be
close to 700 millions of barrels of oil equivalent (mmboe) and a 1P
reserve life index (RLI) of 16 years, aligning the operating
profile to the midpoint of the 'BB' category. On December 2024,
PPSA acquired ExxonMobil Exploration Argentina S.R.L. from
ExxonMobil Argentina Investments B.V., and QatarEnergy Argentina
Holdings LLC., adding significant reserves and potential for
growth, specially from the Bajo del Choique asset, and
transportation capacity.
Improved Business Mix: The Exxon and Qatar acquisition enhances
PPSA's portfolio diversification by balancing exposure between oil
and gas, increasing evacuation capacity and aiming for higher
export revenue, while diversifying assets across conventional and
unconventional resources to focus on long-term growth. The
acquisition added a 21% stake in Oleoductos del Valle S.A.
(Oldeval). As of the first nine months of fiscal 2025, La Calera
made up 72% of gas production and 28% of the oil production.
Peer Analysis
PPSA's ratings compare to those of Pan American Energy S.L. (PAE;
BB-/Stable) and Vista Energy Argentina S.A.U. (Vista Argentina;
BB-/Stable), as all their operations are concentrated in Argentina.
PAE and Vista Argentina have access to HC cash and cash flows that
enables them to be rated three notches above the Country Ceiling of
Argentina. PPSA has a material financial support from a related
party that grants it an additional notch differential in
comparison.
In terms of operational scale and 1P reserves, Fitch projects that
PPSA will reach a total production of approximately 114,000 boed
and 1P reserves of at least 700 mmboe by fiscal 2026, placing PPSA
in the mid-range of the 'BB' category. Fitch expects Vista
Argentina's total production to reach 105,000 boed by 2026, and
PAE's medium production should be close to 222,000 boed. PAE's
strong 1P reserve life of close to 19 years compare favorably to
other 'BB' rated oil and gas E&P producers.
Fitch expects PPSA's EBITDA leverage to trend below 3.0x by fiscal
2027. Compared to its peers, Fitch expects the average leverage of
these E&P companies to be below 2.0x over the next three years. On
a boe basis, PPSA's fiscal 2024 total debt to 1P was $3.5/boe,
higher than Vista's $2/boe.
Key Assumptions
- Average Brent prices from 2025 to 2028 (USD/bbl): 70, 65, 65,
60;
- Average daily production from 2025 to 2028 (kboe/d): 82, 87, 105,
122;
- Oil sales consider discount to Brent of $5/bbl;
- COGS of $28/boe in fiscal 2025; average of $25/boe between 2026
and 2028;
- Royalties of $5/boe between 2025 and 2028;
- Capex of USD1 billion in 2025 and annual average of USD1.2
billion between 2026 and 2028;
- 1P Reserve replacement ratio of 150% in 2026;
- No dividend payments.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Downgrade of the Country Ceiling of Argentina;
- Hard currency cash flows from operations outside Argentina not
covering hard currency gross interest expense in excess of 1.5x for
24 months;
- Material reduction in external support from related companies;
- PPSA's ratings could be negatively affected if hard currency
liquidity is weakened by capital controls;
- Debt/EBITDA and net debt/EBITDA ratios above 3.0x and 2.5x,
respectively, on a sustained basis;
- Major operational disruptions at key assets, resulting in a
significant reduction in production.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Sustained access to hard currency committed credit lines from
highly rated international banks and exceeding production of
125,000 boed, while maintaining 1P reserve life of at least seven
years, in combination with an upgrade of Argentina's Country
Ceiling.
Liquidity and Debt Structure
PPSA had USD483 million in cash and equivalents and USD326 million
in short-term debt as of 3Q25. Fitch believes PPSA can comfortably
service debt with cash on hand and cash flows through the rating
horizon in the event the company faces a challenging financing
environment due to Argentina's capital controls. Also, the
subordinated committed credit line of up to USD500 million enhances
the company's financial flexibility. The rating case assumes PPSA's
FCF will be negative through the rating horizon.
Issuer Profile
PPSA a midsize oil and gas (O&G) producer, with an average
estimated production of 85,500 boed as of 3Q25. PPSA ranks as the
third- and fifth-largest O&G operator in Vaca Muerta, and the
second-largest company in Vaca Muerta by acreage.
Date of Relevant Committee
23-Apr-2025
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
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Pluspetrol S.A.
senior unsecured LT BB New Rating
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B E R M U D A
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UNITED ENERGY: Fitch Rates Proposed USD Sr. Unsec. Notes 'BB-'
--------------------------------------------------------------
Fitch Ratings has assigned United Energy Group Limited's (UEG,
BB-/Stable) proposed US dollar senior unsecured notes a rating of
'BB-'.
The proposed notes will be directly issued by UEG, with the
proceeds used for general corporate purposes, including capital
expenditure in UEG's oil and gas portfolio.
The proposed notes are rated at the same level as UEG's senior
unsecured debt, as they will be the unsecured and unsubordinated
obligations of UEG and rank pari passu with all its other unsecured
and unsubordinated obligations.
Key Rating Drivers
Medium-Sized Producer: UEG's daily production was 108,000 barrels
of oil equivalent per day (kboe/d), with a proven (1P) reserve base
of 442 million barrels of oil equivalent (mmboe) as at end-2024,
based on working interest. Its Iraq reserves are moderately
developed, which could lead to a lower reserve replenish rate in
the medium term. Yet, Fitch expects 1P reserve life to stay at
eight to 10 years in the medium term (2024: 11.2 years), supported
by a potential upward reserve revision from existing assets and new
assets from the acquisition in Egypt.
Low Costs Support Cash Flow: UEG benefits from low operating costs
and limited greenfield development requirements, resulting in capex
that is consistently lower than cash flow from operations as well
as low leverage. Fitch expects UEG to continue to fund all capex
from internal sources, utilising incremental debt only for
acquisitions. EBITDA per barrel is around USD25, supported by UEG's
low average lifting cost of USD4.3/boe over 2021-2024.
Strong Financials Provide Acquisition Buffer: UEG has demonstrated
a modest appetite for acquisitions. Its low leverage, with a net
cash position at end-2024, provides some buffer. Fitch has assumed
HKD1.4 billion for asset acquisitions in 2025 and HKD0.8 billion of
committed investment in 2026. Fitch also assumes HKD1 billion each
year for 2027 and 2028 for potential investment. Fitch expects UEG
to maintain EBITDA net leverage below 1x and robust interest
coverage after these investments.
UEG's subsidiary acquired Apex International Energy's Egypt
upstream assets for USD150 million in October 2025. Apex holds
interests in eight Western Desert concessions. UEG signed a
contract with JSC Uzbekneftegaz (BB/Stable) in June 2025 to
undertake production enhancement and exploration at 21 oilfields
and 10 exploration blocks in Uzbekistan's Gazli region.
High-Risk Market Exposure Mitigated: UEG's ability to sell products
and collect payments internationally mitigates its exposure to
high-risk markets, with a substantial share of revenue from global
trading partners and receipts remitted to offshore accounts. UEG
also has access to international funding via its Hong Kong
treasury. Fitch believes UEG is not exposed to material transfer
and conversion risk, as its payment collections through offshore
accounts is in US dollars for over 90% of its exploration and
production revenue.
Peer Analysis
Both UEG and PT Medco Energi Internasional Tbk (BB-/Stable) focus
on upstream production in emerging markets and have moderate scale
and limited diversification. Medco is slightly larger and benefits
from fixed-price gas contracts, supporting stable earnings. UEG has
a stronger financial profile, with lower leverage and higher EBITDA
interest coverage. Medco's assets are in lower-risk regions, while
UEG mitigates location risk through offshore US dollar collections
and international sales.
UEG does not face material transfer and convertibility risk, unlike
Azule Energy Holdings Limited (B+/Stable), which operates primarily
in deep water offshore Angola. Azule Energy's rating is constrained
by these risks. UEG's business profile is slightly weaker due to
lower production and reserves, but both have low leverage and
robust coverage ratios.
UEG's production is much larger than that of Colombia's GeoPark
Limited (B+/Stable), which averages 40kboe/d and has a 1P reserve
life of 5.4 years, both below UEG's metrics. GeoPark's rating is
constrained by small scale and limited diversification, while UEG
compares favourably, with stronger coverage, lower leverage, larger
reserves and higher production.
Key Assumptions
Fitch's Key Assumptions Within Its Rating Case for the Issuer:
- Oil and gas prices as per Fitch's rating-case assumptions:
USD70/barrel (bbl) for Brent in 2025, USD65/bbl in 2026, USD65/bbl
for 2027 and USD60/bbl for 2028 (2024: USD80.5/bbl)
- Daily working-interest production of around 110kboe/d over
2025-2028 (2024: 108kboe/d)
- EBITDA of HKD7.4 billion in 2025, HKD7.1 billion in 2026, HKD7.6
billion in 2027 and HKD6.5 billion in 2028 (2024: HKD7.7 billion)
- Capex of HKD4.2 billion in 2025, HKD5.9 billion in 2026, HKD5.1
billion in 2027 and HKD4.4 billion in 2028 (2024: HKD6.3 billion)
- Investment or acquisition cash outflow of HKD1.4 billion in 2025,
HKD0.8 billion in 2026, HKD1.0 billion in 2027 and HKD1.0 billion
in 2028.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Sustained deterioration in the 1P working-interest reserve base
to below 300mmboe
- Consolidated EBITDA net leverage exceeding 2.5x for a sustained
period (2024: -0.0x)
- Deterioration in the operating environment, including a downgrade
of the sovereign ratings or changes in the regulatory frameworks of
key operating regions, which could dampen cash flow
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Average daily working-interest production approaching 175kboe/d,
while expanding the 1P working-interest reserve base to 600mmboe,
together with asset diversification into lower-risk regions.
Liquidity and Debt Structure
Cash and equivalents were HKD2.0 billion at end-June 2025, adequate
to cover short-term debt of HKD1.3 billion. Short-term debt is
mainly the repayment facility from UEG's trading partner. Fitch
expects UEG had an unused facility of over USD500 million at
end-October 2025 to support its planned investments.
Issuer Profile
UEG is a medium-sized upstream oil and gas producer listed on the
Hong Kong Stock Exchange (467.HK). The company operates assets in
Pakistan, Iraq and Egypt. Its 1P working-interest reserve as of
end-2024 was 442mmboe (Iraq 384mmboe, Pakistan 49mmboe and Egypt
8mmboe). Its daily working-interest production was 108 kboe/day
(Iraq: 60kboe/day, Pakistan 37kboe/day, Egypt 12kboe/day) in 2024.
Date of Relevant Committee
10-Sep-2025
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
----------- ------
United Energy
Group Limited
senior unsecured LT BB- New Rating
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B R A Z I L
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AZUL SA: Unsecureds Will Get 0.7% to 1.9% of Claims in Plan
-----------------------------------------------------------
Azul S.A. and affiliates submitted a Revised Disclosure Statement
for the Joint Plan of Reorganization dated November 1, 2025.
Azul was founded in 2008 in Brazil by the experienced aviation
entrepreneur David Gary Neeleman and a group of American
executives who believed in the opportunities of aviation in
Brazil.
Azul is the largest airline in Brazil in terms of departures and
cities served and, prior to the COVID-19 pandemic, was sufficiently
capitalized to continue its operational initiatives and take
advantage of its strategic partnerships.
The Plan is the result of extensive good-faith negotiations,
overseen by Azul's board of directors (the "Board of Directors"),
among the Debtors and their key economic stakeholders. The Plan is
supported by, among others, the Secured Ad Hoc Group, DIP
Debtholders, the Consenting Stakeholders, the Consenting
Shareholders and AerCap.
The transactions contemplated by the Plan also have the support of
United and American. The transactions contemplated in the Plan
will strengthen the Company by substantially reducing its debt and
increasing its cash flow and, importantly, will preserve over
15,000 jobs in Brazil, the United States and around the world.
As part of the restructuring:
* The Reorganized Debtors will conduct an Equity Rights
Offering through which the Reorganized Debtors will raise up to
$950,000,000 of New Equity Interests. $650,000,000 of the Equity
Rights Offering will be backstopped by the Backstop Commitment
Parties pursuant to the Backstop Commitment Agreement.
* The Strategic Investors, subject to certain conditions,
will participate in the Equity Rights Offering up to $300,000,000,
thereby solidifying a long-term partnership among the Reorganized
Debtors and the Strategic Investors.
* The 1L Claims and 2L Notes Claims will exchange their
Claims for New Equity Interests, subject to dilution from,
among other things, the Equity Rights Offering.
* A Management Incentive Plan will be adopted by the New Azul
Strategy Committee subject to the Significant Shareholders
satisfactory performance of their obligations under the Bondholder
RSA, which will provide for the grants of equity and equity-based
awards (in the form of MIP Interest), totaling up to seven percent
of the New Equity Interests of the Reorganized Debtors.
* On the Effective Date, the GUC Trust will be established for
the benefit of the GUC Trust Beneficiaries and, in accordance with
the Plan and pursuant to the GUC Trust Agreement, will receive,
hold, and administer the following GUC Trust Assets:
-- The GUC Trust Cash meaning $2,500,000 or $5,000,000 in
Cash as determined by the Cash-Out Percentage.
-- The GUC Warrants meaning warrants to purchase up to 5.5%
of the total outstanding New Equity Interests (calculated on a
fully-diluted basis) which shall be exercisable for a 5-year period
commencing on the Effective Date and subject to various conditions
set forth in the Plan and the GUC Warrant Documents.
-- The GUC CVR meaning that certain non-transferable
contingent value note issued by the Reorganized Debtor providing
for an annual payment of $6,500,000 with respect to each of the
fiscal years ending December 31, 2027, 2028, and 2029
(respectively), subject to certain conditions.
* Holders of Allowed General Unsecured Claims will receive
either (i) its Cash-Out Relative Portion of the Cash-Out Pool (if
such Holder has made the Cash-out Election) or (ii) its Trust
Relative Portion of the GUC Trust Interests (if such holder has
made the GUC Trust Election), provided that if a Holder of an
Allowed General Unsecured Claim does not make a valid GUC Trust
Election, such Holder shall be subject to the Cash-Out Default.
* Unsecured Convenience Class Claims will receive a Cash
payment equal to their Pro Rata share of the Unsecured Convenience
Class Cash Pool consisting of $3,000,000 in Cash.
The Plan is the result of extensive, good faith negotiations among
the Debtors, the Secured Ad Hoc Group and the Creditors' Committee.
Before engaging in Plan negotiations, the Creditors' Committee
conducted an extensive, months' long investigation into, among
other things, the Debtors' capital structure and various
prepetition transactions. As part of that investigation, the
Creditors' Committee engaged with the Debtors and the Secured Ad
Hoc Group regarding the claims which the Creditors' Committee
believed could be asserted in connection with the capital structure
and certain prepetition transactions, among other potential claims
and causes of action.
The Debtors, the Secured Ad Hoc Group and the Creditors' Committee
engaged in months of extensive, productive negotiations, which
ultimately culminated in an agreement on the terms of the Plan.
Accordingly, the Plan represents a global settlement of many
complex legal issues, the litigation of which would have
significantly lengthened the Chapter 11 Cases, depleted the
Debtors' assets and risked the Debtors' ability to consummate a
successful restructuring. Ultimately, the parties agreed on
treatment for Holders of Allowed General Unsecured Claims and
Unsecured Convenience Class Claims in a manner that they believe
reasonably resolves these issues and treats all unsecured creditors
fairly and equitably.
Class 6 consists of General Unsecured Claims. Each Holder of an
Allowed General Unsecured Claim shall receive either:
* if such Holder has made the Cash-Out Election, its Cash-Out
Relative Portion of the Cash-Out Pool; or
* if such Holder has made the GUC Trust Election, its Trust
Relative Portion of the GUC Trust Interests;
provided, that, for the avoidance of doubt, no Holder of an Allowed
General Unsecured Claim shall receive both forms of recovery set
forth in the foregoing (A) and (B) on account of such Claim;
provided, further, that, pursuant to the AerCap Settlement Order
and AerCap Term Sheet, AerCap has waived any rights to receive a
distribution with respect to: (i) $284,799,546 of the Allowed
AerCap Unsecured Claim against ALAB and (ii) the Allowed AerCap
Unsecured Claims in their entirety against Azul on account of any
guarantee claims; provided, further, that the Holders of any 1L
Deficiency Claims or 2L Notes Deficiency Claims (in their capacity
as such) shall not receive any portion of the Cash-Out Pool or GUC
Trust Interests, nor any recovery from the GUC Trust or the GUC
Trust Net Assets, on account of such 1L Deficiency Claims and 2L
Notes Deficiency Claims, respectively. For the avoidance of doubt.
If a Holder of an Allowed General Unsecured Claim does not make a
valid GUC Trust Election, such Holder shall be subject to the
Cash-Out Default.
The allowed unsecured claims total $2,359,233,281 to
$3,049,305,661. This Class will receive a distribution of 0.7% to
1.9% of their allowed claims.
Class 7 consists of Unsecured Convenience Class Claims. Each Holder
of an Allowed Unsecured Convenience Class Claim shall receive a
Cash payment in an amount equal to its Pro Rata share of the
Unsecured Convenience Class Cash Pool. The allowed unsecured claims
total $251,294,737. This Class will receive a distribution of 1.2%
of their allowed claims.
Existing Azul Interests shall be Reinstated, subject to dilution by
the transactions contemplated by the Plan and the Transaction
Steps. The Existing Azul Interests have no value, and retained
Existing Azul Interests will have de minimis value, if any,
following the implementation of the Plan and the Transaction
Steps.
Notwithstanding anything to the contrary in the Plan, no Holder of
an Existing Azul Interest (in its capacity as such) shall be a
Releasing Party, Released Party, or Exculpated Party except as
expressly provided in the Plan.
The Reorganized Debtors shall fund distributions under this Plan
required to be paid in Cash, if any, and provide for the conveyance
and funding of the GUC Trust Assets, as applicable: (1) with Cash
on hand, including Cash from operations, (2) with Cash received
under the DIP Facility and refinanced pursuant to the Exit Notes
(if any), (3) with any proceeds (if any) arising from the exercise
of statutory preemptive rights within the context of the
transactions implemented to carry out the equitization of 1L Claims
and 2L Notes Claims (as applicable); (4) with any proceeds from the
Equity Rights Offering, (5) from the Cash proceeds from the
issuance of Other Exit Financing (if any), and (6) from the Cash
proceeds of an Additional Investment (if any).
A full-text copy of the Revised Disclosure Statement dated November
1, 2025 is available at https://urlcurt.com/u?l=hPD2fc from
Stretto, claims agent.
Counsel to the Debtors:
DAVIS POLK & WARDWELL LLP
Marshall S. Huebner, Esq.
Timothy Graulich, Esq.
Joshua Y. Sturm, Esq.
Jarret Erickson, Esq.
Richard J. Steinberg, Esq.
450 Lexington Avenue
New York, New York 10017
Telephone: (212) 450-4000
About Azul S.A.
Azul S.A. (B3: AZUL4, NYSE: AZUL), the largest airline in Brazil by
number of flight departures and cities served, offers 900 daily
flights to over 150 destinations. With an operating fleet of over
200 aircrafts and more than 15,000 Crewmembers, the Company has a
network of 300 non-stop routes. Azul was named by Cirium (leading
aviation data analysis company) as the most on-time airline in the
world in 2023. In 2020, Azul was awarded best airline in the world
by TripAdvisor, the first time a Brazilian flag carrier earned the
number one ranking in the Traveler's Choice Awards. On the Web:
http://www.voeazul.com.br/imprensa
On May 28, 2025, Azul S.A. and 19 affiliated debtors filed
voluntary petitions for relief under Chapter 11 of the United
States Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 25-11176).
The cases are pending before Judge Sean H. Lane.
The Company is supported by Davis Polk & Wardwell LLP, White & Case
LLP, and Pinheiro Neto Advogados as legal counsel; FTI Consulting
as financial advisor; Guggenheim Securities, LLC as investment
banker; SkyWorks Capital LLC as fleet advisor; and FTI Consulting,
C Street Advisory Group, and MassMedia as strategic communications
advisors. Stretto is the claims agent.
The Participating Lenders are supported by Cleary Gottlieb Steen &
Hamilton LLP and Mattos Filho as legal counsel and PJT Partners as
investment banker.
United Airlines is supported by Hughes Hubbard & Reed LLP and
Sidley Austin LLP as legal counsel and Barclays Investment Bank as
investment banker.
American Airlines is supported by Latham & Watkins LLP as legal
counsel.
AerCap is supported by Pillsbury Winthrop Shaw Pittman LLP as legal
counsel.
The U.S. Trustee for Region 2 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases. The
Committee retained Willkie Farr & Gallagher LLP as its counsel,
Alvarez & Marsal North America, LLC, as its financial advisor,
Houlihan Lokey Capital, Inc., as its investment banker.
BANCO DO BRASIL: Cuts Net Income Outlook as Farmer Defaults Surge
-----------------------------------------------------------------
Reuters reports that Brazilian state-run lender Banco do Brasil
lowered its outlook for adjusted net income this year, citing
higher funding expenses and rising defaults among local farmers.
The bank now expects annual net income of BRL18 billion to BRL21
billion ($3.33 billion-$3.89 billion), down from a previous
forecast of BRL21-25 billion, according to the report.
Banco do Brasil, long seen as a pillar of farm credit in the
country, has been grappling with record default levels in its
agribusiness portfolio, which hit results and raised investor
concern over its exposure to the sector, the report notes.
As reported in the Troubled Company Reporter-Latin America on Sept.
29, 2025, Moody's Ratings has affirmed Banco do Brasil S.A.'s (BB)
long- and short-term local and foreign currency deposit ratings at
Ba1 and Not Prime, respectively, following the affirmation of the
bank's Baseline Credit Assessment (BCA) and Adjusted BCA at ba1.
Moody's also affirmed the bank's long- and short-term local and
foreign currency Counterparty Risk Ratings at Baa3 and Prime-3,
respectively, and long- and short-term Counterparty Risk
Assessments (CRA) at Baa3(cr) and Prime-3(cr), respectively. The
outlook on the long-term bank deposit ratings remains stable.
BRAZIL: Bank Vows Tougher Rules After Surge in Cyberattacks
-----------------------------------------------------------
Reuters reports that Brazil's central bank is preparing to advance
tighter regulation of the financial system to curb a rise in
cyberattacks, the bank's supervision director, Ailton Aquino,
said.
This year, 68 incidents have been reported through October,
including 37 cases of fraud, he said at a press conference in Sao
Paulo, according to the report. That represents the highest
number since the central bank began tracking such data in 2018
and is already above the 59 cases recorded in all of last year,
according to the bank's Financial Stability Report released earlier
in the day, 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: Fitch Assigns 'BB' Rating to USD1.5B Sr. Unsecured Notes
----------------------------------------------------------------
Fitch Ratings has assigned a 'BB' rating to Brazil's USD1.5 billion
notes maturing on Feb. 4, 2033. The notes have a coupon rate of
5.5%.
Brazil intends to use the net proceeds of the sale of the notes for
repayment of outstanding federal public debt, and to allocate an
amount at least equal to the net proceeds of the sale of the notes
to budgetary programs that qualify as green and social expenditures
under its Sovereign Sustainable Bond Framework.
Key Rating Drivers
The ratings are in line with Brazil's Long-Term (LT) Foreign
Currency (FC) Issuer Default Rating (IDR). On June 25, 2025, Fitch
affirmed Brazil's LT FC IDR at 'BB' with a Stable Rating Outlook.
ESG - Governance: Brazil has an ESG Relevance Score (RS) of '5' for
both Political Stability and Rights and for the Rule of Law,
Institutional and Regulatory Quality and Control of Corruption.
These scores reflect the high weight that the World Bank Governance
Indicators (WBGI) have in Fitch's proprietary Sovereign Rating
Model. Brazil has a medium WBGI ranking at the 40th percentile,
reflecting a record of political tension, but peaceful political
transitions, a moderate level of rights for participation in the
political process, moderate institutional capacity, moderate rule
of law and a relatively high level of corruption.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- The bond rating would be sensitive to any negative changes in
Brazil's LT FC IDR.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- The bond rating would be sensitive to any positive changes in
Brazil's LT FC IDR.
Date of Relevant Committee
24 June 2025
ESG Considerations
Brazil has an ESG Relevance Score of '5' for Political Stability
and Rights as WBGIs have the highest weight in Fitch's SRM and are
therefore highly relevant to the rating and a key rating driver
with a high weight. As Brazil has a percentile rank below 50 for
the respective Governance Indicator, this has a negative impact on
the credit profile.
Brazil has an ESG Relevance Score of '5' for Rule of Law,
Institutional & Regulatory Quality and Control of Corruption as
WBGIs have the highest weight in Fitch's SRM and are therefore
highly relevant to the rating and a key rating driver with a high
weight. As Brazil has a percentile rank below 50 for the respective
Governance Indicators, this has a negative impact on the credit
profile.
Brazil has an ESG Relevance Score of '4'[+] for Human Rights and
Political Freedoms as the Voice and Accountability pillar of the
WBGIs is relevant to the rating and a rating driver. As Brazil has
a percentile rank above 50 for the respective Governance Indicator,
this has a positive impact on the credit profile.
Brazil has an ESG Relevance Score of '4'[+] for Creditor Rights as
willingness to service and repay debt is relevant to the rating and
is a rating driver for Brazil, as for all sovereigns. As Brazil has
track record of 20+ years without a restructuring of public debt
and captured in Fitch's SRM variable, this has a positive impact on
the credit profile.
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
----------- ------
Brazil
senior unsecured LT BB New Rating
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Fitch Affirms 'BB-' LT IDR, Outlook Positive
----------------------------------------------------------------
Fitch Ratings has affirmed Dominican Republic's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'BB-' with a
Positive Outlook.
Key Rating Drivers
Ratings Affirmed: The Dominican Republic's ratings are supported by
a record of robust economic growth, a diversified export structure,
high per-capita GDP, and social and governance indicators that
compare favorably to peers. The ratings are constrained by a weak
revenue base and budgetary rigidities, including a high interest
burden and subsidization of a loss-making electricity sector. Heavy
sovereign reliance on external bond market financing and lingering
weaknesses in the policy framework also weigh on the rating. These
weaknesses include a large central-bank quasi-fiscal deficit and
modest external liquidity buffers in the context of a managed
exchange-rate.
The Positive Outlook reflects Fitch's expectation that the economy
can return to strong growth after a recent slowdown. It also
reflects potential for the Dominican Republic to stabilize
government debt/GDP over the medium term through disciplined fiscal
policy supported by institutional improvements and possible
expansion of the revenue base.
Wider Deficit Despite Fiscal Rule Compliance: The revised 2025
budget envisions a wider fiscal deficit of 3.5% of GDP, compared to
3.1% in 2024, due to higher capital spending in the face of an
economic slowdown. Total revenue growth through August was modest
at 1.5%, though this was largely anticipated given the loss of last
year's one-off revenues from the Aerodom airport concession (0.8%
of GDP). Primary spending growth is on track to be below a 3% cap
(in real terms) set by the new fiscal rule despite the budget
reformulation. Meeting the originally budgeted 3% of GDP deficit
this year would have required significant overcompliance with the
fiscal rule.
Gradual Fiscal Consolidation in 2026: The 2026 budget targets a
deficit of 3.2% of GDP (slightly below Fitch's 3.4% forecast),
driven by spending restraint far greater than required to comply
with the fiscal rule (-0.6% real primary spending growth versus the
3% permitted). It is unclear whether the new fiscal rule will
anchor medium-term fiscal consolidation, as compliance with the
spending cap has allowed for wider deficits.
Renewed government efforts to raise additional revenues, after the
withdrawal of last year's reform, would help address fiscal
rigidities and weak metrics as a share of revenues. Even though
most of the yield of any such revenue efforts is likely to be
spent, it would help to improve Dominican Republic's high
interest-to-revenue ratio (forecast to reach 22.5% in 2025, the
highest in the 'BB' category versus a 'BB' median of 9.6%) and
debt-to-revenue ratio (303% versus a 'BB' median of 191%) and
provide scope to tackle infrastructure and social needs.
2025 Financing Needs Met in External Market: The government
returned to international markets for a second time this year in
October, issuing USD1.6 billion, with a 5.75% coupon and a
historically low spread. Most financing needs were met this year in
the external market, with only one auction in the local market in
July (for DOP20 billion). The foreign currency share of debt is
expected to rise slightly this year to 68%, from 67% in 2024,
compared to the 'BB' median of 55% and roughly in line with 67% in
2019. In light of the wider deficit and second issuance this year
and the weakening exchange rate, Fitch forecasts general government
debt to rise to 50.7% of GDP this year (below the BB median of 54%)
from 47.7% in 2024, and to 51.6% by 2027.
Cyclical Slowdown, Stimulus Measures: Fitch forecasts growth to
slow to 2.5% in 2025, down from last year's 5%, which was in line
with the Dominican Republic's historically strong average growth
rate. Sustained high lending rates, despite lower central bank
policy rates, and external and domestic uncertainty weighed on the
economy this year. The government has announced fiscal and monetary
stimulus measures to address the economic slowdown, similar to
those taken in 2023, including central bank liquidity injections,
of DOP81 billion (1% of GDP). Fitch expects growth to recover to 4%
in 2026 and 4.5% in 2027 due to stimulus measures and falling
interest rates, above the 'BB' median average of 3.7% for
2026-2027.
Stable Inflation, FX Movements: Inflation has been low and stable,
averaging 3.6% through September, below the 4% midpoint of the
central bank's target range. The central bank (BCRD) began its
third cycle of rate cuts in October, cutting the policy rate by a
cumulative 50bps to 5.25% in October and November, following
renewed Fed rate cuts. The exchange rate has experienced greater
volatility this year and depreciated despite a favorable external
position, reflecting strong FX demand. The BCRD relied heavily on
FX intervention to limit depreciation pressures last year, but this
year has relied more on macroprudential measures, such as those
introduced in March to limit foreign currency loan exposure for
entities not generating FX. However, the impact of such measures
has largely since reversed.
Robust External Inflows, Lower CAD: External inflows have been
robust, with tourism, remittances, exports and FDI all up year to
date. Fitch forecasts the current account deficit to narrow to 2.4%
of GDP in 2025, from 3.4% last year. Tourism growth has slowed but
was still up 3% through September, and tourist arrivals are at
record highs. Exports are up 10% yoy in 1H25 despite global trade
uncertainty, and remittances rose 11% through September given
uncertainty over trade and immigration policies in the U.S. Fitch
expects FDI flows to continue to reach record highs and to more
than finance the current account deficit this year (CAD + FDI of
1.1% of GDP).
External Issuance Boosts Reserves: International reserves rose to
USD14.6 billion in October, following the issuance of USD1.6bn in
government bonds. Prior to the issuance, reserve levels were
broadly in line with end-2024. Heavy BCRD FX intervention last year
led to a 20% fall in reserves, but lower intervention in 2025 and
greater sovereign borrowing should support an increase this year.
Fitch expects reserves to cover 3.6 months of current external
payments in 2025, roughly in line with 3.5 months in 2024.
ESG - Governance: Dominican Republic has ESG Relevance Scores (RS)
of '5'[+] for Political Stability and Rights and for the Rule of
Law, Institutional and Regulatory Quality, and Control of
Corruption. These scores reflect the high weight that the World
Governance Indicator (WGI) have in its proprietary Sovereign Rating
Model (SRM). Dominican Republic has a medium WGI ranking at the
51.9 percentile, reflecting a recent track record of peaceful
political transitions, a moderate level of rights for participation
in the political process, moderate institutional capacity and rule
of law and a fairly high degree of corruption.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Public Finances: Reduced confidence that debt to GDP will
stabilize over the medium-term, for example, through the
significant loosening of fiscal policy, sustained low growth, or
higher financial losses of the public electric utilities;
- Macro: Reduced confidence in the ability of the economy to
maintain relatively strong growth rates;
- External Finances: Sharp deterioration of the external liquidity
position that increases external vulnerability
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Macro: A recovery in economic growth to higher levels in the
context of broad macroeconomic stability;
- Public finances/Structural: Confidence in the authorities'
ability to maintain moderate fiscal deficits and/or efforts to
improve the revenue base.
Sovereign Rating Model (SRM) and Qualitative Overlay (QO)
Fitch's proprietary SRM assigns Dominican Republic a score
equivalent to a rating of 'BB+' on the Long-Term Foreign-Currency
IDR scale.
Fitch's sovereign rating committee adjusted the output from the SRM
to arrive at the final Long-Term Foreign Currency IDR by applying
its Qualitative Overlay (QO), relative to SRM data and output, as
follows:
- Structural: -1 notch to reflect a potential inconsistency between
improvements in governance indicators and the government's ability
to enact key policy measures.
- Public Finances: -1 notch to reflect structural fiscal
vulnerabilities stemming from a relatively low tax take, budgetary
rigidity and vulnerability posed by a heavily subsidized
electricity sector, and contingent liabilities related to the large
market debt and sizeable quasi-fiscal deficit of the central bank.
Fitch's SRM is the agency's proprietary multiple regression rating
model that employs 18 variables based on three-year centered
averages, including one year of forecasts, to produce a score
equivalent to a LT FC IDR. Fitch's QO is a forward-looking
qualitative framework designed to allow for adjustment to the SRM
output to assign the final rating, reflecting factors within its
criteria that are not fully quantifiable and/or not fully reflected
in the SRM.
Debt Instruments: Key Rating Drivers
Senior Unsecured Debt Equalized: The senior unsecured long-term
debt ratings are equalized with the applicable long-term IDR, as
Fitch assumes recoveries will be 'average' when the sovereign's
long-term IDRs is 'BB-' and above. No Recovery Ratings are assigned
at this rating level.
Country Ceiling
The Country Ceiling for the Dominican Republic is in line with the
Long-Term Foreign Currency IDR. This reflects no material
constraints and incentives, relative to the IDR, against capital or
exchange controls being imposed that would prevent or significantly
impede the private sector from converting local currency into
foreign currency and transferring the proceeds to non-resident
creditors to service debt payments.
Fitch's Country Ceiling Model produced a starting point uplift of
+1 notch above the IDR. Fitch's rating committee applied an
offsetting -1 notch qualitative adjustment to this, under the
Macro-Financial Stability Risks and Exchange Rate pillar.
Membership in the CAFTA-DR trade agreement puts some limits on
incentives for the use of transfer-and-convertibility restrictions,
but this is balanced by a managed exchange-rate regime and fairly
low international financial integration.
Climate Vulnerability Signals
The results of its Climate.VS screener did not indicate an elevated
risk for Dominican Republic.
ESG Considerations
Dominican Republic has an ESG Relevance Score of '5'[+] for
Political Stability and Rights as the WGIs have the highest weight
in Fitch's SRM and are therefore highly relevant to the rating and
a key rating driver with a high weight. As Dominican Republic has a
percentile rank above 50 for the respective Governance Indicator,
this has a positive impact on the credit profile.
Dominican Republic has an ESG Relevance Score of '5'[+] for Rule of
Law, Institutional & Regulatory Quality and Control of Corruption
as the WGIs have the highest weight in Fitch's SRM and are
therefore highly relevant to the rating and are a key rating driver
with a high weight. As Dominican Republic has a percentile rank
above 50 for the respective WGIs, this has a positive impact on the
credit profile.
Dominican Republic has an ESG Relevance Score of '4'[+] for Human
Rights and Political Freedoms as the Voice and Accountability
pillar of the WGIs is relevant to the rating and a rating driver.
As Dominican Republic has a percentile rank above 50 for the
respective WGI, this has a positive impact on the credit profile.
Dominican Republic has an ESG Relevance Score of '4[+]' for
Creditor Rights as willingness to service and repay debt is
relevant to the rating and is a rating driver for Dominican
Republic, as for all sovereigns. As Dominican Republic has track
record of 20+ years without a restructuring of public debt as
captured in its SRM variable, this has a positive impact on the
credit profile.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
----------- ------ -----
Dominican Republic LT IDR BB- Affirmed BB-
ST IDR B Affirmed B
LC LT IDR BB- Affirmed BB-
LC ST IDR B Affirmed B
Country Ceiling BB- Affirmed BB-
senior unsecured LT BB- Affirmed BB-
=============
J A M A I C A
=============
JAMAICA: Jamaica to Draw Down Another US$68.2MM From CCRIF
----------------------------------------------------------
RJR News reports that Jamaica is expected to draw down another
US$68.2 million from the Caribbean Catastrophe Risk Insurance
Facility (CCRIF) after receiving the first US$8 million on November
3.
This is due to the triggering of the tropical cyclone clause in the
facility, according to RJR News.
The country is also expected to draw down another US$21.1 million
shortly because of the triggering of the excess rainfall cause in
the facility, the report notes.
This will bring the total payout to US$91.1 million or J$14.8
billion, the report adds.
About Jamaica
Jamaica is an island country situated in the Caribbean Sea. Jamaica
is an upper-middle income country with an economy heavily dependent
on tourism. Other major sectors of the Jamaican economy include
agriculture, mining, manufacturing, petroleum refining, financial
and insurance services.
On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a
positive rating outlook. In October 2023, Moody's upgraded the
Government of Jamaica's long-term issuer and senior unsecured
ratings to B1 from B2, and senior unsecured shelf rating to (P)B1
from (P)B2. The outlook has been changed to positive from stable.
In September 2024, S&P affirmed 'BB-/B' longterm foreign and local
currency sovereign credit ratings on Jamaica and revised outlook to
positive.
===========
M E X I C O
===========
ASCEND PERFORMANCE: Nov. 24 Plan Confirmation Hearing Set
---------------------------------------------------------
The hearing at which the U.S. Bankruptcy Court for the Southern
District of Texas will consider confirmation of the Second Amended
Joint Chapter 11 Plan filed by Ascend Performance Materials
Holdings Inc., et al., will commence on 3:00 p.m. prevailing
Central Time on November 24, 2025, before the Hon. Christopher M.
Lopez.
The deadline for voting on the Plan and for filing objections to
the Plan is 4:00 p.m. prevailing Central Time on November 18,
2025.
Additional information about Ascend's restructuring is available
at www.ascendmaterials.com/strengthening-ascend. Bankruptcy Court
filings and other information regarding the case can be found at
https://dm.epiq11.com/Ascend or by contacting Epiq, the Company's
noticing and claims agent, at (888) 890-9917 (for toll-free U.S.
calls) or +1 (971) 385-8728 (for tolled international calls).
Ascend is advised in this matter by Kirkland & Ellis LLP as legal
counsel, FTI Consulting as financial advisor, and PJT Partners as
investment banker. The ad hoc group of term loan lenders to the
Company is advised by Gibson, Dunn & Crutcher LLP as legal counsel
and Evercore Group L.L.C. as investment banker.
About Ascend Performance Materials Holdings Inc.
Ascend Performance Materials Holdings Inc. is one of the largest,
fully-integrated producers of nylon, a plastic that is used in
everyday essentials, like apparel, carpets, and tires, as well as
new technologies, like electric vehicles and solar energy systems.
Ascend's business primarily revolves around the production and
sale of nylon 6,6 (PA66), along with the chemical intermediates
and downstream products derived from it. Common applications of
PA66 includes heating and cooling systems, air bags, batteries,
and athletic apparel. Headquartered in Houston, Texas, Ascend
has a global workforce of approximately 2,200 employees, and
operates eleven manufacturing facilities that span the United
States, Mexico, Europe, and Asia.
Ascend Performance Materials Holdings Inc. and its affiliates
filed voluntary petitions for relief under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 25-90127) on
April 21, 2025.
In the petitions signed by Robert Del Genio, the chief
restructuring officer, the Debtors disclosed $1 billion to $10
billion in both estimated assets and liabilities.
Judge Christopher M. Lopez oversees the cases.
The Debtors tapped Kirkland & Ellis LLP and Bracewell LLP as
counsel; PJT Partners, Inc. as investment banker; FTI Consulting,
Inc. as restructuring advisor; and Deloitte LLP as tax advisor.
Epiq Corporate Restructuring LLC is the Debtors' claims, noticing,
and solicitation agent. GA Group Advisory & Valuation Services,
LLC serves as a valuation advisor.
The official committee of unsecured creditors retained Brown
Rudnick LLP as co-counsel; Parkins & Rubio LLP as Texas co-counsel;
AlixPartners, LLP as financial advisor; and Ducera Partners LLC and
Ducera Securities LLC as investment banker.
Gibson, Dunn & Crutcher LLP represents an Ad Hoc Group of Term Loan
Lenders. Howley Law PLLC, serves as the group's Texas co-counsel.
===========
P A N A M A
===========
BAC INTERNATIONAL: Fitch Puts 'BB+' Long-Term IDR on Watch Evolving
-------------------------------------------------------------------
Fitch Ratings places BAC International Bank, Inc.'s (BIB) Long-Term
Issuer Default Rating (IDR) at 'BB+', Viability Rating (VR) at
'bb+', and its Long-Term National Rating and Long-Term debt ratings
on Rating Watch Evolving (RWE), following the announcement of the
planned acquisition of Multibank Inc. (Multibank), which Fitch
rates at 'BB+' with a Negative Outlook, Short-Term IDR 'B', and VR
'bb-'.
Fitch has also placed the Long-Term IDR, Long-Term National Rating
and Long-Term debt ratings of Multibank on RWE, and places
Multibank's VR on Rating Watch Positive (RWP), reflecting moderate
upside potential due to the benefits that could be generated if the
transaction and planned merger are completed.
At the same time, Multibank's Shareholder Support Rating (SSR) was
placed on Rating Watch Negative (RWN), reflecting the reduced
importance of the bank to its current shareholder, Banco de Bogota,
S.A. (Bogota).
The rating actions follow the Oct. 28, 2025, announcement that BAC
International Corporation (BIC), the holding company of BIB, will
convene a shareholder meeting to decide on relevant matters related
to the purchase of a majority stake in Multi Financial Group Inc.
(MFG) and its subsidiaries, including Multibank, from Bogota. The
ratings of Bogota and its holding company Grupo Aval Acciones y
Valores (Aval) are unaffected by the announcement.
BIB's and Multibank's Short-Term IDRs were placed on RWP, while
their Short-Term National Ratings and Short-Term debt ratings were
placed on RWN, reflecting potentially different directions of
movement based on their current levels.
Key Rating Drivers
Currently, BIB's IDRs and National Ratings are underpinned by its
'bb+' VR, which reflects the good performance of its six banking
operations in Central America. BIB's VR also captures its
consolidated business profile, with a strong risk management and
framework contributing to its consistent financial performance.
At the same time, current Multibank IDRs and National Ratings are
driven by potential support it would receive from its shareholder
Bogota, if required, as reflected in its SSR of 'bb+'. The bank's
Long-Term IDR and SSR are equalized with Bogota's Long-Term IDR,
reflecting Fitch's assessment of a high propensity to provide
support. Multibank's VR indicates an adequate business profile.
However, despite the group benefits from Bogota, Multibank's
financial performance has weakened.
Multibank is small relative to BIB's consolidated balance sheet,
and preliminarily there appears to be a good strategic and
competitive rationale for pursuing the transaction. The RWE
reflects uncertainty stemming from limited information currently
available on the expected terms of the transaction, including price
and potential financing mechanism, which could affect BIB. In
addition, it incorporates potential benefits that could materialize
over a longer term into BIB's business profile and earnings
generation. Some of this information may become available and/or
clearer after the respective shareholders meetings in the coming
weeks.
In the meantime, Fitch cannot rule out that the transaction could
affect BIB's capital adequacy, as the latest capitalization metrics
are relatively close to the sensitivities Fitch has set for a
potential downgrade of BIB's VR and LT IDR. If the planned
acquisition eventually entails significant debt or financing needs
for BIB, and/or material goodwill is recognized, the ratings could
face moderate downside risk.
Fitch expects any downside risk, if present, is likely to be
limited to one notch from BIB's current ratings. Fitch will also
assess execution risks and the potential effects on the combined
entity's business and financial profile before resolving the RWE.
Fitch will focus on the potential impact on combined profitability,
given Multibank's narrower margins and earnings.
The RWE on Multibank's Long-Term ratings reflects potential
convergence to BIB's final ratings after the transaction. The RWP
on Multibank's VR indicates that the bank's standalone credit
profile and potential benefits of the transaction are likely to
converge toward BIB's VR at the time of merger, a process that
could take more than six months.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
BIB
- BIB's IDR, VR and National Ratings could come under pressure if
the transaction conditions weaken its capital levels, leading CET1
metric to remain consistently below 10% after the transaction is
completed;
- A weaker assessment of BIB's blended Operating Environment (OE)
by Fitch, due to a material deterioration in the OE of Central
America's largest markets, could put pressure on BIB's IDR, VR and
National Ratings;
- BIB's IDR, VR and National Ratings could also come under pressure
if a significant deterioration in loan quality and persistent
strain on profitability, levels that together with transaction and
merger execution risk, result in an operating profit-to
risk-weighted assets (RWA) ratio that remains below 1.5% on a
sustained basis.
Multibank
- Multibank's IDR and SSR could be downgraded, mirroring downgrade
of BIB's LT IDR, once BIB becomes a shareholder, or due to a
reduced propensity of current parent, Bogota, to support Multibank
before the transaction is completed;
- Multibank's VR could be downgraded if a sustained deterioration
in asset quality further undermines the bank's financial
performance and business profile, particularly if the transaction
does not occur;
- BIB's and Multibank's Short-Term IDRs would only be downgraded if
its Long-Term IDRs were downgraded to 'CCC+' or below.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
BIB
- BIB's IDR, VR and Long-Term National ratings could be upgraded if
the transaction strengthens bank's consolidated business profile
and materially improves its overall financial performance, coupled
with a relevant improvement in the OE score.
Multibank
- Multibank's RW could be removed if the transaction does not
occur. In that case, the ratings would be affirmed at their current
level, reflecting a Negative Outlook from current parent, Bogota;
- Positive rating actions on Multibank's VR could occur if the
transaction proceeds without disruption, in which case the VR would
converge with that of BIB's;
- BIB's and Multibank's Short-Term National Ratings have no upside
potential because they are at the highest level of the rating
scale.
OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS
BIB
Senior Debt: The senior unsecured debt programs' National Ratings
are aligned with BIB's National Ratings because Fitch considers the
likelihood of default to be the same, given the absence of specific
guarantees.
Junior Debt: The subordinated bond National Rating is four notches
below the anchor rating, BIB's Long-Term National Rating,
comprising a two-notch deduction for loss severity due to deep
subordination, and two additional notches for incremental
nonperformance risk, given the bonds' ability to omit noncumulative
coupons.
Multibank
Senior Unsecured Debt: The ratings of Multibank's outstanding
long-term global-scale and national-scale senior unsecured
obligations are equal to the issuer's ratings because the
obligations' likelihood of default is the same as Multibank's.
Subordinated Debt: The ratings of Multibank's outstanding long-term
national scale subordinated obligations are two notches below the
anchor ratings, the Long-Term National Scale Rating, reflecting
loss severity given the instrument characteristics (no coupon
flexibility).
OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade:
BIB
- BIB's senior unsecured bonds' and subordinated perpetual bonds'
National Ratings would be downgraded if BIB's National Ratings were
downgraded.
Multibank
- Multibank's senior unsecured and subordinated debt would reflect
any downgrade of the bank's ratings.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade:
BIB
- BIB's senior unsecured bonds and perpetual subordinated bonds'
National Ratings would be upgraded if BIB's National Ratings were
upgraded.
Multibank
- Multibank's senior unsecured and subordinated debt would reflect
any upgrade of the bank's ratings.
VR ADJUSTMENTS
BIB
The Operating Environment Score has been assigned at 'bb', below
the implied score of 'bbb' due to the following adjustment reason:
Geographical Scope (negative).
The Business Profile Score has been assigned at 'bbb-', above the
implied score of 'bb' due to the following adjustment reason:
Business Model (positive).
Multibank
The Operating Environment Score has been assigned at 'bb+', below
the implied score of 'bbb', due to the following adjustment reason:
Sovereign Rating (negative).
The Business Profile Score has been assigned at 'bb-', above the
implied score of 'b', due to the following adjustment reason: Group
Benefits and Risks (positive).
Public Ratings with Credit Linkage to other ratings
Multibank's ratings derive from the support of Banco de Bogota.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
----------- ------ -----
Multibank,
lnc. LT IDR BB+ Rating Watch On BB+
ST IDR B Rating Watch On B
Natl LT AA+(pan)Rating Watch On AA+(pan)
Natl ST F1+(pan)Rating Watch On F1+(pan)
Viability bb- Rating Watch On bb-
Shareholder Support bb+ Rating Watch On bb+
senior
unsecured LT BB+ Rating Watch On BB+
senior
unsecured Natl LT AA+(pan)Rating Watch On AA+(pan)
subordinated Natl LT AA-(pan)Rating Watch On AA-(pan)
senior
unsecured Natl ST F1+(pan)Rating Watch On F1+(pan)
BAC
International
Bank, Inc. LT IDR BB+ Rating Watch On BB+
ST IDR B Rating Watch On B
Natl LT AA+(pan)Rating Watch On AA+(pan)
Natl ST F1+(pan)Rating Watch On F1+(pan)
Viability bb+ Rating Watch On bb+
junior
subordinated Natl LT A(pan)Rating Watch On A(pan)
senior
unsecured Natl LT AA+(pan)Rating Watch On AA+(pan)
senior
unsecured Natl ST F1+(pan)Rating Watch On F1+(pan)
*********
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
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Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.
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