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251121.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 21, 2025, Vol. 26, No. 233 Headlines A R G E N T I N A ARGENTINA: Reaches Deal With US to Open Markets on Key Goods B R A Z I L BRAZIL: IDB, Central Bank Agreement Unlocks $3.4BB in FX Hedging COMPANHIA SIDERURGICA: S&P Places 'BB-' ICR on Watch Negative JBS SA: Profit Falls Amid Still-Challenging US Market Environment JBS SA: Venture Agrees to Buy Hickman's in Push for US Egg Market OI S.A.: S&P Lowers Senior Secured Notes Rating to 'CC' VALE OVERSEAS: S&P Rates Proposed Hybrid Bond 'BB+' C O L O M B I A GEOPARK LTD: S&P Alters Outlook to Stable, Affirms 'B+' ICR E C U A D O R ECUADOR DPR: Fitch Affirms 'BB-' Rating on Three Tranches J A M A I C A JAMAICA: Gov't. Urged to Lobby US to Waive Tariff on Exports JAMAICA: Set to Receive Additional $21.1 Million From CCRIF P U E R T O R I C O EVERTEC GROUP: $150MM Loan Add-on No Impact on Moody's 'Ba3' CFR X X X X X X X X LATAM: IDB, CAF, and CDB Launch Caribbean Debt-for-Resilience JV - - - - - ================= A R G E N T I N A ================= ARGENTINA: Reaches Deal With US to Open Markets on Key Goods ------------------------------------------------------------ Buenos Aires Times report the United States struck framework trade agreements with Argentina, Guatemala, El Salvador and Ecuador as part of a push to decrease the price of goods from Latin America, as US President Donald Trump seeks to address voter concerns over affordability. The most significant of the deals is likely an agreement with Argentina, offering the latest boost from Washington for President Javier Milei as he attempts to open up one of the world's most protectionist economies, according to Buenos Aires Times. "The countries will open their markets to each other on key products," according to a White House statement that said Argentina would provide "preferential market access for US goods exports" including certain medicines, chemicals, machinery, information technology products and medical devices, the report notes. The deals announced with Guatemala, El Salvador and Ecuador focused on reducing tariffs on key exports like bananas and coffee beans that are largely not produced in the US. Trump and other officials have said they're pressing on efforts to reduce living costs, the report relays. That new focus comes after electoral victories for US Democrats across a number of key contests, the report notes. The framework agreements will be completed in around two weeks and are expected to exempt specific products rather than reduce existing reciprocal tariffs, according to a senior Trump administration official who spoke on condition of anonymity, the report discloses. The White House expects retailers and wholesalers to pass along any benefits to US consumers, the official added. That could help Trump as he attempts to reverse perceptions that he’s neglected addressing high costs that continue to anger US citizens, the report says. And the Argentina deal provides a boost for Milei, an ideological ally, who had set a goal this year of reaching a trade agreement with the US, the report notes. Still, by removing tariffs Trump himself imposed earlier this year, he is simply resetting import taxes back to where they where before he took office, the report relays. The administration claims that lower trade barriers in Latin American countries will boost US businesses, though the nations who secured framework agreements have much smaller trade flows with Washington than many other economies do, the report notes. The framework for the Argentina agreement comes after the Trump administration's sweeping rescue package last month amid a market sell-off, the report discloses. The US rushed to provide US$20 billion in financing and directly purchased pesos in a bid to stem a currency sell-off and help Milei's party pull off a major comeback in midterm elections, the report says. At the same time, opening up Argentina's fragile economy will likely be met with some resistance as many domestic industries are not competitive at a global level due to high costs and tax burdens, the report relays. For its part, the US will also remove "reciprocal tariffs on certain unavailable natural resources and non-patented articles for use in pharmaceutical applications," according to the White House, the report discloses. Beef Trade The countries have also "committed to improved, reciprocal, bilateral market access conditions for trade in beef," the report relays. The moves to ease trade in cattle come as Trump looks to provide relief to American consumers with beef prices surging in recent years, the report notes. Yet Trump's efforts on beef have met with some fierce criticism from ranchers – a sector that has largely backed the president, the report says. After he previously announced plans to import more beef from Argentina, the National Cattlemen's Beef Association said any increased imports would undercut US producers, the report relays. The administration has worked to placate ranchers with a program to boost domestic beef production that includes more grazing on federal lands, the report notes. The US shipped US$2.6 million worth of beef and pork products to Argentina in 2024, according to US Department of Agriculture data, the report relays. Argentina's government had blocked imports of US poultry products due to concerns with the avian influenza, according to the International Trade Administration, the report notes. The disease has continued to affect US farms since 2022 and decimated bird flocks earlier this year, the report discloses. While the full size and scope of the looming agreement isn't finalized, Argentina can't secure a very broad agreement with the US because it is part of the South American trade bloc Mercosur, which prohibits members from negotiating large agreements outside the bloc, the report says. However, Mercosur countries earlier this year granted each member to choose up to 50 products that could be negotiated outside the bloc and be free of its common external tariffs, 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. =========== B R A Z I L =========== BRAZIL: IDB, Central Bank Agreement Unlocks $3.4BB in FX Hedging ---------------------------------------------------------------- The Inter-American Development Bank (IDB) and the Central Bank of Brazil have signed a first-of-its-kind agreement to enable up to $3.4 billion in foreign-exchange hedging to help mobilize private investment for sustainable development, starting with Brazil's Eco Invest Program. Structured under internationally recognized International Swaps and Derivatives Association (ISDA) standards, the agreement creates a dedicated FX Hedging Conduit that allows the IDB to supply long-dated derivatives through the Central Bank, which will then be channeled to Eco Invest beneficiaries via local banks. By reducing currency risk, the mechanism unlocks long-term private capital for investments in areas such as renewable energy, the bioeconomy, resilient infrastructure, and sustainable land use. The Central Bank of Brazil plays a key role by connecting the IDB to domestic financial institutions – enabling these institutions to transfer international hedging instruments to the local private-sector investors in sustainable development at lower cost. Importantly, this structure reduces currency risk for investors while preserving the balance sheets of both the Central Bank and the IDB from FX exposure. The agreement also sets an example for global adoption. FX EDGE, led by the IDB in partnership with Brazil and the United Kingdom, aims to expand to other countries in Latin America and the Caribbean by 2030, drawing on the Eco Invest experience. "This agreement is a crucial element of the Eco Invest architecture, an innovation that Brazil brings to the world, in its scalable and replicable form," said IDB Group President Ilan Goldfajn. "It shows how central banks and multilateral development banks can work together to mitigate important market barriers and foster private investments for resilience and sustainable development." The FX Hedging Conduit also completes the original architecture of Eco Invest: blended financing to catalyze private capital, liquidity tools, a, project preparation facility, and now, FX hedging to manage risk, all using a transparent, competitive platform to allocate resources efficiently. Since its launch, Eco Invest – led by the government of Brazil with support from the IDB and the United Kingdom – has mobilized over 75 billion reais ($13.2 billion), including 46 billion reais ($8 billion) from foreign investors. The program now spans four public auctions, including the latest – disclosed at COP30 in Belem – which focuses on scaling the bioeconomy and ecotourism infrastructure in the Amazon region. Aligned with Brazil's Ecological Transformation Plan, Eco Invest channels investment into key sectors such as the bioeconomy, renewable energy, resilient infrastructure, and sustainable forest management. This MDB-central bank collaboration shows how multilateral institutions can help remove barriers, manage risk smartly to foster investment, and help countries mobilize private capital in support of their national priorities. 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. COMPANHIA SIDERURGICA: S&P Places 'BB-' ICR on Watch Negative ------------------------------------------------------------- S&P Global Ratings placed its 'BB-' issuer credit rating on Companhia Siderurgica Nacional (CSN) on CreditWatch with negative implications. S&P expects to resolve the CreditWatch placement over the next three months, once it has more clarity about these asset sales, CSN's ability to reduce debt, and the extent to which any asset sales improve leverage to close to 4.0x. The CreditWatch negative placement reflects that CSN's improvements in leverage have been more gradual than expected. CSN's improving operational performance has led to an EBITDA recovery, but still sizable investment and interest payments have prevented a substantial decline in leverage. Management has been vocal about debt reduction alternatives, including asset sales. But absent material cash inflow to reduce debt, S&P anticipates leverage remaining above 5.0x in the next two years, which would no longer be commensurate with a 'BB-' rating. S&P said, "We forecast leverage to stay close to 5.5x in 2025--well above our previous expectation of 4.5x for year-end 2025--with a free operating cash flow (FOCF) deficit of R$3.8 billion. Solid volumes in all its divisions, coupled with favorable pricing conditions in mining and cement and a greater focus on optimizing production costs in steel, have supported a recovery in nominal EBITDA to Brazilian real (R$) 9.5 billion (20.8% margin) in the 12 months ended Sept. 30, 2025, from R$7.4 billion in 2024 (17% margin)." However, cash outflow remained high, with investments of R$5.6 million and an interest burden of R$5.4 million in the same period, hindering CSN's cash generation and sustaining high adjusted nominal debt of R$ 56.3 billion in September 2025. This limited improvements in leverage, with adjusted debt to EBITDA staying at 6.0x in the 12 months ended Sept. 30, 2025, from 7.2x in 2024. S&P said, "Our metrics differ from the company's reported metrics. Our main adjustments are the Transnordestina project's debt, pension adjustments, iron ore prepayments, leasing obligations, asset retirement obligations, forfaiting and tax installments. These added R$21.4 billion to CSN's debt as of Sept. 30, 2025. "We see limited room for substantial improvements in leverage in the next two years only from operational performance. We continue to see a challenging pricing scenario in the steel industry recovery in Brazil, with significant competition from imported steel. This scenario, coupled with S&P Global Ratings' forecast of lower iron ore prices in 2026 and 2027 (at US$90 per ton), will continue to hinder robust EBITDA improvements the next two years. "We currently project nominal EBITDA of R$11.3 billion per year in 2026 and 2027 (from R$10.3 billion in 2025), while capital expenditure and interest expenses will remain close to R$5.5 billion each per year. In our current base case, this would maintain leverage at 5.0x-5.5x, while FOCF would remain negative at R$ 1.1 billion in 2026. "Additional nonrecurring cash inflow in the next few months and the company's willingness to reduce debt are key for the rating trajectory. CSN has been vocal about potentially raising cash from additional asset sales and the spin-off of its infrastructure assets, and using all of the proceeds to reduce debt. Still, it has made no formal announcement on the timing and amount of those potential deals. We expect to have more clarity on the extent to which those initiatives could reduce leverage close to or below 4.0x." Liquidity remains a buffer under this more stressful scenario. Currently, more than 75% of the group's cash--R$13.6 billion--is at the subsidiary CSN Mineração, which CSN holds a 69% stake in. To reflect the risks of accessing this cash, we are now placing an approximately 30% haircut on the cash from CSN Mineração available to support the group's overall liquidity position. S&P said, "Still, we continue to expect CSN to maintain an over 20% liquidity cushion for the next 12 months, supported by its large cash balance, ability to reduce capex if needed, no payment of dividends other than the minority outflows from CSN Mineração, and its good access to credit markets for refinancing. We don't foresee it being able to reduce leverage only with internal cash generation." The CreditWatch negative placement reflects a 50% possibility of a downgrade within the next three months. S&P would lower the ratings absent a material event resulting in gross debt reduction that we believe would be enough to bring leverage close to or below 4.0x. JBS SA: Profit Falls Amid Still-Challenging US Market Environment ----------------------------------------------------------------- Ana Mano and Roberto Samora at Reuters report that JBS SA reported a net profit fall in the third quarter in spite of a rise in global net sales amid a still-challenging beef market environment in the U.S., according to an earnings statement. The company said third-quarter profit dropped to $581 million from $693 million in the year-ago quarter, citing negative beef margins in the U.S. amid multiyear-low cattle supplies, according to Reuters. "The industry continues to navigate a challenging cattle cycle, with limited cattle availability for processing," JBS said in the earnings statement obtained by the news agency, the report notes. "With cattle supplies at historically low levels, live cattle prices have remained high, pressuring profitability." In remarks about results, CEO Gilberto Tomazoni noted the situation is unlikely to be resolved soon, the report relays. JBS's adjusted earnings before interest, taxes, depreciation and amortization, a measure of operating income known as EBITDA, came in at $1.835 billion, smaller than the $2.153 billion reported a year ago, the company said, the report discloses. Net sales, however, rose by 13% to $22.6 billion in the third quarter, having grown across all business segments, the company said, the report says. Regarding Brazilian beef operations, JBS reported strong net sales growth, driven mainly by exports and increases in both sales volumes and prices, as well as by higher meat prices in the domestic market, the report notes. Tomazoni said that in 2026, Brazil's cattle herd might be slightly reduced as more female cows were processed compared with male ones in the second quarter, the report discloses. Brazil, where JBS was founded, is the world's largest beef exporter. It still boasts the world's biggest commercial cattle herd. For its Seara processed foods division, JBS said it posted the highest export volume in history despite temporary trade bans imposed by key importers such as China and Europe due to an avian influenza case in Brazil in May, the report notes. The company said those restrictions forced it to redirect certain chicken meat cuts to other markets, which drove a price drop, the report says. The appreciation of the Brazilian currency also negatively affected the company's meat exports out of Brazil, Tomazoni noted, the report adds. About JBS S.A. 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. JBS SA: Venture Agrees to Buy Hickman's in Push for US Egg Market ----------------------------------------------------------------- Raphael Almeida at Bloomberg News reports that Mantiqueira USA Inc., a wholly owned subsidiary of the joint venture between JBS and the founders of Mantiqueira Alimentos, entered into a binding agreement to acquire Hickman's Egg Ranch, expanding the participation of the world's largest meat producer in the egg sector. The deal marks Mantiqueira's entry into the US market through the newly created Mantiqueira USA, according to Bloomberg News. 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. OI S.A.: S&P Lowers Senior Secured Notes Rating to 'CC' ------------------------------------------------------- S&P Global Ratings lowered the issue-level rating on Oi S.A.'s senior secured notes due 2026 to 'CC' from 'CCC-' with a recovery rating of '3' (60%), reflecting its view that the obligation is highly vulnerable to nonpayment. Brazilian telecom operator Oi S.A. is currently undergoing a judicial reorganization process. Oi announced recently that the court has decided to convert the group's judicial reorganization into bankruptcy. However, this decision was subsequently suspended by a judge's order four days later, in the context of interlocutory appeal. The lowering of the issue-level rating reflects recent judicial developments concerning Oi's restructuring process. On Nov. 10, 2025, the 7th Business Court of the State of Rio de Janeiro issued a decision converting the group's judicial reorganization into bankruptcy proceedings. This decision stipulated the continuation of Oi's operations under a judicially appointed administrator, suspending all pending lawsuits and executions against the operator, and prohibiting any disposition or encumbrance of its assets. However, on Nov. 14, 2025, an appellate judge from the 1st Chamber of Private Law of the Court of Justice of the State of Rio de Janeiro has suspended the bankruptcy declaration and reinstated the group's judicial reorganization. Given the ongoing legal uncertainty, S&P now assesses Oi's 2026 secured notes as highly vulnerable to nonpayment. VALE OVERSEAS: S&P Rates Proposed Hybrid Bond 'BB+' --------------------------------------------------- S&P Global Ratings assigned its 'BB+' issue rating to Vale Overseas Ltd.'s proposed junior subordinated notes due 2056. The parent company, Vale S.A. (BBB/Stable/--), fully and unconditionally guarantees the notes. S&P said, "We assess the proposed subordinated hybrid instrument as having intermediate equity content, so we will adjust 50% of the issued amount as debt on Vale's balance sheet." The 50% equity and 50% debt classification reflects the offering's characteristics of permanence, subordination, and deferability. The long-term nature of the junior notes, along with the company's limited ability and lack of incentive to redeem the issuance for a long period, meets our standards for permanence. The two-notch adjustment from our issuer credit rating on Vale reflects one notch for subordination and one notch for management's ability to defer interest payments on the hybrid. The notes are noncallable in the first five years and will have fixed coupon resetting every five years following the five-year U.S. Treasury rate, plus initial margin, plus relevant step-up. The interest on the proposed security will increase by 25 basis points (bps) in February 2036, slightly more than 10 years after the issuance date, and another 75 bps in 2051, more than 20 years after the first reset date. S&P said, "We consider the cumulative increase in interest material, and because it creates an incentive to redeem the instrument in February 2051, we consider that date to be the effective maturity date. Therefore, we are unlikely to recognize the instrument as having intermediate equity content after its first reset date in February 2031 because its economic maturity will fall below 20 years at that time." Vale will use the proceeds for general corporate purposes, including, but not limited to, the replenishment of cash following the repurchase of part of the participative debenture issued in 1997, for which investors' acceptance of the tender approached 23%, or close to $700 million. S&P revised itsapproach toward the participative debenture profile, and S&P now assesses it as debt. S&P's reassessment considers the mandatory premium payment, even in a stress scenario, if the specific mines have production volumes. S&P said, "As a result, we adjusted our forecast for Vale, assuming we will treat 50% of the hybrid issuance as debt, and reducing the almost $700 million from the participative debenture and considering the remaining amount outstanding debenture as debt. We now forecast debt to EBITDA of 2.1x by the end of 2025 and 2.0x in 2026, compared to our previous forecast of 1.9x for both years. The revised forecast doesn't affect our ratings on Vale." =============== C O L O M B I A =============== GEOPARK LTD: S&P Alters Outlook to Stable, Affirms 'B+' ICR ----------------------------------------------------------- S&P Global Ratings revised the outlook to stable from negative and affirmed its ratings on GeoPark Ltd., including the 'B+' issuer credit rating. S&P said, "The stable outlook reflects our view that the incorporation of the Argentinian blocks will stabilize Geopark's performance and support production growth. We expect the company to keep debt to EBITDA close to 2.0x in the following two years, despite the growing capex related to the acquisition." On Oct. 16, 2025, GeoPark Ltd. completed the acquisition of two blocks in Argentinas's Vaca Muerta formation. This strategic move positions the company to reverse declining production and capitalize on growth opportunities. The acquisition will reach a plateu by 2028, adding about 20,000 barrels of oil equivalent per day (boe/d) to production and bringing Geopark's consolidated daily production to slightly over 40,000 boe/d. Following the acquisition of two blocks in the Vaca Muerta formation, GeoPark is well positioned to resume production recovery and growth. The acquisition of Loma Jarillosa Este and Puesto Silva Oeste from Pluspetrol in October is a key strategic initiative. It secures growth through profitable assets in one of Latin America's most prolific unconventional oil and gas basins, adding high-quality acreage with significant upside potential. The areas are in the core oil window and close to existing infrastructure, which gives the option for shared facilities. Furthermore, Pluspetrol had already done work to lower risk at Loma Jarillosa, and there are already six operational wells. The blocks hold 11.4 million boe of proved reserves (1P). That would add to GeoPark's reported 64 million boe in 1P reserves as of December 2024. As such, after the acquisition, the reserve life index for 1P should rise to seven years from five years. The area's current production is 1,700 boe-2,000 boe per day (95% oil and 5% gas) in 2025. S&P expects a gradual increase in average production in Argentina to about 2,000 boe/d in 2026, 8,000 boe/d in 2027, reaching a plateu of 20,000 boe/d at the end of 2028. S&P said, "In the long term, we believe this acquisition will compensate for lower production in Colombia, which is in a more mature stage of the block. Geopark's successful development of these blocks is key to maintain the rating level. We expect Geopark's consolidated production to fall to around 27,000 boe/d in 2025 and 2026, from 34,000 boe/d in 2024, mainly due to lower production volumes in Colombia. But we expect it will increase to 32,000 boe/b by 2027 and to 40,000 boe/d by 2028 as Argentine operations ramp up. "We expect EBITDA of around $332 million in 2025 and $241 million in 2026, down from $443 million in 2024, reflecting lower average crude oil prices and lower production volumes. However, we expect EBITDA to begin recovering as Argentina operations ramp up, adding $100 million to EBITDA and bringing consolidated EBITDA to around $320 million in 2027." GeoPark's recovery optimization initiatives have been instrumental in controlling the natural production decline across its mature Colombian fields. Continuous investment in secondary recovery programs (waterdrilling and infill drilling workovers) has helped reduce S&P's expectation of a natural decline of about 23% to 14% in 2025 and protect cash flow generation. Additionally, the company is working on a development plan in Colombia that should allow to it to keep production levels relatively stable in the next three years. Similarly, the company's ongoing cost and capital efficiency initiatives--such as water usage reduction, optimized well designs, and reduced lifting costs--continue to underpin the profitability of these operations. This is part of GeoPark's two-fold strategy to pursue growth in new regions, supported by the sustainability of operating cash flow from its core portfolio. A healthy balance sheet and low leverage provide GeoPark with financial flexibility to support expansion capex in Argentina. The company maintains conservative credit metrics, robust liquidity, and a manageable maturity profile. Moderate leverage and prudent oil hedging policies that reduce earnings volatility further enhance its capacity to fund growth internally without materially weakening credit quality. The development plan of the Loma Jarillosa Este and Puesto Silva Oeste blocks contemplates 50-55 additional wells, as well as the construction of a pipeline between the two blocks and a new central processing facility. All of this would require gross investment of $500 million-$600 million through 2028. In line with this, S&P expects GeoPark's total capex to increase to about $155 million in 2026 (from $100 million in our previous projection) and to $380 million in 2027. S&P said, "We believe GeoPark can absorb a large part of the incremental capex with operating cash flow, and we estimate that S&P Global Ratings-adjusted debt to EBITDA would remain between 2x and 2.5x through 2027. "The stable outlook reflects our expectation that the company will swiftly incorporate and develop the blocks in Argentina helping to at first stabilize and then grow production starting in 2027. We expect the company to keep debt to EBITDA close to 2.0x in the following two years despite growing capex. We also think the company will maintain adequate liquidity, with no meaningful debt amortization until January 2030. "We could downgrade GeoPark in the next 12 months if the company faces challenges in developing the new block in Vaca Muerta and production does not recover as expected or its reserve replacement ratio remains below 100%. We could also downgrade GeoPark if we expect weaker business performance to erode EBITDA, resulting in debt to EBITDA above 3.0x or funds from operations (FFO) to debt below 30% on a consistent basis. This could occur if oil prices remain below $55 per barrel for a prolonged period or amid the company's more aggressive investments that pressure cash flow and intensify credit metric volatility. We could also lower the ratings if Geopark is not able to pass our sovereign stress test scenarios on Argentina as its exposure to this country increases in relevance. "Although unlikely, we could raise the rating if the company increases its reserves and production base to levels commensurate with those of exploration and production (E&P) companies in the 'BB' rating category. GeoPark would also need to maintain debt to EBITDA comfortably below 3.0x and FFO to debt above 30%, and be able to pass our hypothetical sovereign stress tests in Argentina." ============= E C U A D O R ============= ECUADOR DPR: Fitch Affirms 'BB-' Rating on Three Tranches --------------------------------------------------------- Fitch Ratings has affirmed Ecuador DPR Funding Limited's series 2020-1 loan, 2022-1 notes, and 2023-1 loan at 'BB-'. The Rating Outlook is Stable. Entity/Debt Rating Prior ----------- ------ ----- Ecuador DPR Funding 2020-1 LT BB- Affirmed BB- 2022-1 27928YAA5 LT BB- Affirmed BB- 2023-1 LT BB- Affirmed BB- Transaction Summary The future flow (FF) program is backed by existing and future U.S. dollar-denominated diversified payment rights (DPRs) originated by Banco Pichincha C.A. y Subsidiarias (BP) in Ecuador. The majority of DPRs are processed by designated depository banks (DDBs) that have signed acknowledgement agreements (AAs), irrevocably obligating them to make payments to an account controlled by the transaction trustee. Fitch's ratings address timely payment of interest and principal on a quarterly basis. KEY RATING DRIVERS Future Flow Rating Driven by Originator's Credit Quality: The rating of this FF transaction is driven by the Long-Term Issuer Default Rating (IDR) of the originator, BP. On Oct. 23, 2025, Fitch affirmed BP's Long-Term IDR at 'CCC+' and Viability Rating (VR) at 'ccc+'. BP's IDR is driven by its VR, or standalone creditworthiness. However, the bank's ratings are capped by Fitch's assessment of the operating environment (OE) score of Ecuador of 'ccc+' which significantly influences the bank's VR. Going Concern Assessment (GCA) Score Supports Notching Differential: Fitch uses a GCA score to gauge the likelihood that the originator of a future flow transaction will stay in operation through the transaction's life. Fitch assigns a GCA score of 'GC1' to BP based on it being the largest and most systemically important bank within the highly concentrated Ecuadorian market. The score allows for a maximum of six notches above the Long-Term IDR of the originator; however, additional factors limit the maximum uplift. Factors Limit Notching Differential: The 'GC1' score allows for a maximum six-notch rating uplift from the bank's IDR, pursuant to Fitch's future flow methodology. However, uplift is tempered to four notches from BP's Long-Term IDR as Fitch reserves the maximum notching uplift for originators rated at the lowest end of the rating scale. Moderate Future Flow Debt Relative to Balance Sheet: Future flow debt represents approximately 1.8% of BP's total funding and 21.2% of non-deposit funding when considering the current outstanding balance of the program ($326.3 million) as of Sept. 30, 2025, and utilizing September 2025 non-consolidated financials. While Fitch considers these ratios small enough to differentiate the credit quality of the financial future flow transaction from the BP's Long-Term IDR, an increase in future flow debt size could constrain the transaction ratings. Coverage Levels Commensurate with Assigned Rating: Considering average rolling quarterly DDB flows over the past five years (October 2020 to September 2025) and the maximum periodic debt service over the life of the program, including Fitch's 'BB-' interest rate stress for the series 2023-1 floating-rate loan, Fitch's minimum projected quarterly debt service coverage ratio (DSCR) is 66.4x. The program can withstand a reduction in flows of approximately 98% and still cover the maximum quarterly debt service obligation. Nevertheless, Fitch will continue to actively monitor the performance of the flows. Reduced Redirection/Diversion Risk: The structure mitigates certain sovereign risks by collecting cash flows offshore until collection of the periodic debt service amount, allowing the transaction to be rated over the sovereign country ceiling. Fitch believes payment diversion risk is partially mitigated by the AA signed by the six correspondent banks processing the vast majority of U.S. dollar DPR flows originating in the U.S. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - The transaction's ratings are sensitive to changes in BP's credit quality, which in turn is sensitive to changes in Ecuador's credit quality and operating environment. A deterioration of BP's credit quality by more than one notch could trigger a negative rating action on the transaction's rating; - The transaction's ratings are sensitive to the DPR business line's performance and its ability to continue operating, as reflected by the GCA score. A change in Fitch's view on the bank's GCA score can lead to a change in the transaction's ratings. The minimum expected quarterly DSCR is approximately 66.4x and should therefore withstand a significant decline in cash flows in the absence of other issues. However, significant declines in flows could lead to a negative rating action. Any changes in these variables will be analyzed in a rating committee to assess the possible impact on the transaction's ratings; - No company is immune to the economic and political conditions of its home country. Political risks and the potential for sovereign interference may increase as a sovereign's rating is downgraded. However, the underlying structure and transaction enhancements mitigate these risks to a level consistent with the assigned rating. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - The main constraint to the transaction's ratings is the originator's rating and BP's operating environment. If upgraded, Fitch will consider whether the same uplift could be maintained or if it should be further tempered in accordance with criteria. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS The future flow ratings are driven by the credit risk of Banco Pichincha C.A. as measured by its Long-Term IDR. 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. ============= J A M A I C A ============= JAMAICA: Gov't. Urged to Lobby US to Waive Tariff on Exports ------------------------------------------------------------ RJR News reports that Chief Executive Officer of Jamaican Teas, John Mahfood, is calling for the government of Jamaica to ask the US government to remove the 10% tariff on Jamaican exports as part of its contribution to the country's recovery process from Hurricane Melissa. He says this is extremely important because of the fallout in the export sector due to the hurricane, which is causing significant pressure on the exchange rate, according to RJR News. A removal of the tariff would lead to more merchandise export earnings, which dropped by 6.8% to US$888.2 million during the first six months of this year, the report notes. Mr. Mahfood is also calling for more investments in the country's infrastructure and factories as part of the rebuilding process from the devastation caused by Hurricane Melissa, the report says. He suggested a lowering of interest rates and a relaxation of the debt-to-GDP ratio target in order to facilitate the recovery of all businesses, as well as the provision of more government incentives, the report adds. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a positive rating outlook. In October 2023, Moody's upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to B1 from B2, and senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has been changed to positive from stable. In September 2024, S&P affirmed 'BB-/B' longterm foreign and local currency sovereign credit ratings on Jamaica and revised outlook to positive. JAMAICA: Set to Receive Additional $21.1 Million From CCRIF ----------------------------------------------------------- RJR News reports that Jamaica is set to receive an additional US$21.1 million from the Caribbean Catastrophe Risk Insurance Facility (CCRIF), following the activation of its excess rainfall parametric policy. The new payout comes just a week after the CCRIF announced a US$70.8 million disbursement, triggered by Jamaica's Tropical Cyclone Policy, bringing the country's total payout to US$91.9 million, according to RJR News. The CCRIF has already provided US$8 million to the government on November 3 to ensure immediate liquidity, while the remaining US$62.8 million will be paid on November 13, in line with the facility's commitment to make payouts within 14 days of an event, the report notes. CCRIF Chief Executive Officer Isaac Anthony is expected to visit Jamaica soon for discussions with senior government officials on how the facility can further support national recovery efforts following Hurricane Melissa, 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 ===================== EVERTEC GROUP: $150MM Loan Add-on No Impact on Moody's 'Ba3' CFR ---------------------------------------------------------------- Moody's Ratings said that the credit ratings and the stable outlook of EVERTEC Group, LLC ("Evertec"), including its Ba3 Corporate Family Rating, are unaffected by the company's launch of a $150 million fungible incremental add-on to its backed senior secured term loan B, which will be used, along with cash, to pay off the current $156.1 million of outstanding borrowings under the company's $200 million backed senior secured revolving credit facility, leaving only about $5 million in outstanding letters of credit. The revolver borrowings were used to fund the company's acquisition of Tecnobank, a Brazilian fintech specializing in digital registration of vehicle financing contracts, which positions Evertec well for continued growth in Latin America as well as diversification away from its current concentration within Puerto Rico. The company's current ratings include the Ba3 CFR, B1-PD Probability of Default Rating (PDR), and the Ba3 ratings on the backed senior secured bank credit facilities (revolving credit facility, term loan A, and term loan B). The Ba3 CFR reflects Evertec's very strong market position in Puerto Rico and solid credit metrics including solid profitability and moderate leverage, with pro forma debt-to-EBITDA (Moody's-adjusted) expected to end FY 2025 at about 3.1x, and very good liquidity reflected in the SGL-1 speculative grade liquidity rating (SGL). Growth prospects in Latin America (LatAm) also remain bright, given the still large opportunity for penetration of electronic payments as well as the potential of cross-selling payment processing to the financial institution clients of Sinqia S.A., a software business in Brazil acquired in November 2023. Moody's expects ongoing diversification to come from higher growth rates in Latin America vs. Puerto Rico, as well as from M&A. The company also benefits from the diversification that comes from four different business segments, which provide revenue mix balance. At the same time, the company's size is modest for the rating level, at about $925 million in 2025 expected revenue or close to $1 billion pro forma for Tecnobank, and customer and geographic concentration remains elevated (despite the acquisition of Sinqia, which helps somewhat reduce the risk exposure), with about 64% of revenues generated in Puerto Rico (PR) and about 30% from Banco Popular de Puerto Rico, the island's largest bank. However, Moody's estimates that the Tecnobank acquisition will bring Puerto Rico's proportion of revenues closer to 60%, while also reducing the relative exposure to Popular. The exposure to the island includes hurricane risks, as captured by the E-4 Environmental Issuer Profile Score, as well as low economic growth dynamics. The stable outlook reflects expectations for at least mid-single digit revenue growth in the near term as well as free cash flow to debt consistently north of 10%. Liquidity is very good as reflected in the SGL-1 rating. Pro forma for the transaction, the company is expected to maintain an unrestricted cash balance around $300 million, an undrawn $200 million revolver due 2027, and generate free cash flow close to $175 million. Term loan amortization is about $29 million per annum. The term loan A and revolver include a maximum net leverage ratio covenant of 4x, and Moody's expects the company to maintain ample cushion. The ratings could be upgraded if financial leverage is sustained below 2.5x, with greater scale and with continued customer and geographic diversification in the business. The ratings could be downgraded if financial leverage is maintained above 3.5x, free cash flow to debt closer to 10% or less, and/or in the event of consistent organic revenue or margin decline, or aggressive financial strategy. Evertec is a leading diversified financial technology provider in Puerto Rico and Caribbean, with a growing presence in Latin America. The company's revenues for the last twelve months ended September 2025 were approximately $900 million. Headquartered in Puerto Rico, the company serves 26 countries out of 24 offices. Latin America presence includes operations in, among others, Costa Rica, Mexico, Guatemala, Colombia, Chile, Uruguay, Brazil, and Panama, while the Caribbean primarily represents the Dominican Republic and the Virgin Islands. =============== X X X X X X X X =============== LATAM: IDB, CAF, and CDB Launch Caribbean Debt-for-Resilience JV ---------------------------------------------------------------- The Inter-American Development Bank (IDB), CAF – Development Bank of Latin America and the Caribbean, and the Caribbean Development Bank (CDB) launched at COP30 the Caribbean multi-guarantor debt-for-resilience joint initiative, a landmark regional effort designed to boost disaster preparedness while easing debt pressures across the Caribbean. By leveraging guarantees from multilateral development banks (MDBs) and private-sector actors, the initiative will create fiscal space for countries to invest in priority resilience measures and regional public goods – enabling action before disasters strike and without adding new debt. The Joint Initiative will focus on three goals: - Scale up debt-for-resilience swaps to generate fiscal space for enhanced resilience - Strengthen coordination among MDBs, governments, and private-sector partners to scale and streamline interventions, particularly debt-for-resilience swaps in the region - Improve transparency, monitoring, and evaluation standards to attract more investment The Joint Initiative intends to create a facility under a Framework Agreement designed to facilitate coordination among guarantors for debt-for-resilience swap transactions, while respecting each institution's mandates, internal approvals, and formalization processes. Debt-for-resilience transactions will be tailored to align with national strategies for development and sovereign-debt management, in accordance with each guarantor's policies. The institutions will work together to establish common principles for guarantee terms and define shared taxonomies and key performance indicators (KPIs) for resilience investments, aligned with global benchmarks. This initiative is expected to streamline multi-guarantor debt swaps – attracting new and non-traditional guarantors, enabling larger transactions, lowering costs, and accelerating execution – while enhancing access to investors through robust reporting and monitoring frameworks. Each debt-swap transaction should include a regional public-goods component, reinforcing collective resilience across the Caribbean. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2025. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *