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251124.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 Monday, November 24, 2025, Vol. 26, No. 234 Headlines A R G E N T I N A ARGENTINA: Bond Spree Tops US$3.4BB with Buenos Aires City Sale CITY OF BUENOS AIRES: S&P Rates USD600MM 7.8% Notes 'B-' GENNEIA SA: Moody's Rates $400MM New Sr. Unsec. Notes 'B2' B R A Z I L BANCO DE BRASILIA: S&P Downgrades ICR to 'B-', On Watch Negative BANCO MASTER: Central Bank Shuts Bank as Police Detain Investor BRAZIL: Eyes Taxing Crypto for Cross-Border Payments COMPANHIA SIDERURGICA: Moody's Puts Ba3 CFR on Review for Downgrade ELDORADO BRASIL: Moody's Downgrades CFR to Ba3, Outlook Stable TUPY S.A.: Fitch Lowers Long-Term IDR to 'BB-', Outlook Stable [] Moody's Takes Action on 9 Brazilian Banks Amid Ratings Update C O L O M B I A CANACOL ENERGY: S&P Downgrades Issuer Credit Rating to 'D' C O S T A R I C A BANCO BAC SAN JOSE: Fitch Puts 'BB+' LT IDR on Watch Evolving H O N D U R A S INVERSIONES ATLANTIDA: Fitch Puts 'B' Long-Term IDR on Watch Neg. J A M A I C A JAMAICA: BOJ Makes US$30 Million Intervention in Forex Market JAMAICA: Has Yet to Apply for IMF Drawdown Post Hurricane Melissa P U E R T O R I C O ERC MANUFACTURING: To Sell Naranjito Property to Nelson B. Elias PALMAS ATHLETIC: Unsecureds Owed $100K+ to Get 10% over 60 Months - - - - - ================= A R G E N T I N A ================= ARGENTINA: Bond Spree Tops US$3.4BB with Buenos Aires City Sale --------------------------------------------------------------- Buenos Aires Times reports that the bond sale spree in Argentina has spread into the public sector, with Buenos Aires City returning to global markets after almost a decade and bringing foreign debt issuance to almost US$3.5 billion topping the volume of the previous five months combined. Buenos Aires City issued US$600 million in eight-year dollar bonds on November 18 – the first time the City sold international debt since 2016, according to data compiled by Bloomberg, the report notes. The comeback follows a swathe of corporate sales: Six companies have tapped international debt markets with deals over US$100 million following Javier Milei's surprisingly strong showing on the October 26 midterm vote, which halted a nascent currency crisis and boosted confidence in the economic outlook, according to Buenos Aires Times. The sales indicate that Argentina is finally joining the surge in emerging-market debt issuance that started earlier this year as investors began to shift money out of the US amid policy instability, the report relays. Developing nation sovereigns and companies have sold more than US$700 billion in hard-currency notes in 2025, the busiest year since 2021, according to data compiled by Bloomberg, the report says. "Argentine companies were ready to seize the EM window earlier this year, but volatility ahead of the midterms kept them from taking advantage," said Juan Barros Moss, director of Advisory and Capital Markets at Balanz, Buenos Aires Times discloses. "Still, issuers had done their homework and were able to move right after. The positive momentum for Argentine borrowers should continue," he added. The bond wave began just days after the vote, when YPF SA and Tecpetrol SA sold US$500 million and US$750 million in notes, respectively, the report relays. That was followed by Pampa Energía SA's US$450-million bond sale, Edenor SA's US$201-million issuance and Pluspetrol SA's US$450-million bond deal, the report says. The latest was Transportadora de Gas del Sur SA's US$500-million bond, which priced, the report notes. Yields on the new notes have come in between 7.625 percent and 10.375 percent, with maturities ranging from 2030 to 2037, the report discloses. Dollar-debt sales have now outpaced the US$2.7 billion raised by Argentine firms and provinces from late May through the election, data compiled by Bloomberg show, the report says. Power producer Genneia is set to join the frenzy, according to a person familiar with the deal, expecting to place an eight-year dollar bond, the report notes. The company, which is also eying an initial public offering in early 2026, is looking to raise as much as US$500 million, the person said, asking not to be named because the information is not public, the report relays. The company declined to comment. The urgency among Argentine issuers stems from a sharp drop in country risk since the election, the report discloses. The spread over US Treasuries has narrowed to around 600 basis points, down from more than 1,400 points in mid-September, according to JPMorgan Chase & Co. data, the report says. The government expects the recent trade deal with the United States, along with a reform package headed to Congress, to help push country risk even lower, creating room for more debt sales – potentially even from the sovereign, the report relays. The bond frenzy is also bringing much-needed dollars into the cash-strapped nation, the report says. The peso strengthened in the weeks after the vote and is now trading past 1,400 per dollar for the first time since October as market confidence improves, the report notes. "After several major corporate deals, the provincial segment kicked off with a successful issuance from Buenos Aires," said economist Gustavo Ber, director of local consultancy Estudio Ber. "There's clear investor appetite abroad. All of this sets the stage for a potential sovereign issuance," he added. 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. CITY OF BUENOS AIRES: S&P Rates USD600MM 7.8% Notes 'B-' -------------------------------------------------------- S&P Global Ratings assigned a 'B-' issue rating to the City of Buenos Aires' proposed US$600 million 7.8% notes due 2033 (series 13). The 'B-' rating on the new series 13 is the same as the foreign currency issuer credit rating (B-/Stable/--) on the City of Buenos Aires. S&P's ratings reflect the cap imposed on all Argentine local government ratings by Argentina's 'B-' transfer and convertibility assessment and Argentina's very volatile and underfunded institutional framework. That said, the city's individual characteristics point to a stand-alone credit profile (SACP) of 'bb', which is multiple notches above the rating and the SACPs of local peers, reflecting a financial and economic profile that's significantly stronger than its peers. The proposed notes will be the city's first international issuance since the tango series 12 issued in 2016. Since 2017, the city's borrowing strategy focused on improving the debt currency profile, while financing needs diminished over the last two years. S&P said, "The city will use the proceeds of the new notes to refinance upcoming maturities, and we do not expect a meaningful increase in the debt stock. The city has announced ambitious transportation infrastructure goals, which we expect it to finance predominantly with cash flow. We estimate the debt burden to remain low, around 15% of the city's operating revenues by the end of 2026. Our projections are subject to exchange rate risk movements because the bulk of the city's debt is nominated in foreign currency." The City of Buenos Aires is the second Argentine local government to tap global capital markets this year after Province of Cordoba. These transactions are the first Argentine local governments' cross-border transactions after financial markets closed for Argentine entities in 2018. GENNEIA SA: Moody's Rates $400MM New Sr. Unsec. Notes 'B2' ---------------------------------------------------------- Moody's Ratings assigned a B2 rating to Genneia S.A. (Genneia)'s proposed senior unsecured notes (New Notes) for up to $400 million due 2033. The outlook is stable. Genneia intends to use the net proceeds from this new notes issuance to partially redeem its outstanding $137 million senior secured notes due 2026 and 2027, to finance capital expenditures and for general corporate purposes. The proposed issuance will be paid in 3 consecutive equivalents installments according to a defined amortization schedule and final maturity in year 8. The assigned rating to Genneia proposed notes is based on preliminary documentation. Moody's do not anticipate changes in the main conditions that the bond will carry. Should issuance conditions and/or final documentation deviate from the original ones submitted and reviewed by the rating agency, Moody's will assess the impact that these differences may have on the rating and act accordingly. RATINGS RATIONALE The B2 rating assigned to the New Notes is in line with Genneia's B2 corporate family rating, as the New Notes will rank pari passu at least equally with all other present and future senior unsecured obligations of the company, comprising 75-80% of the consolidated debt structure on a pro-forma basis for this transaction. Proceeds will primarily be used to support Genneia's liability management strategy, which implies no material change to Moody's underlying assumptions regarding the company's consolidated leverage metrics as well as to finance some of its expansion projects and for general purposes. Genneia's credit profile reflects the company's strong asset base and its positioning as the main renewable power producer in Argentina, with a solid operating track record and energy production levels, including average load factors in the last 12 months of over 46% and 25% for its wind and solar projects respectively. It's long term contracted position with an average remaining life of PPAs of over 10 years, good liquidity and manageable debt maturities also support the credit profile. While Genneia's exposure to Cammesa is mitigated by the Foder guarantee on several of its Renovar PPAs (46% of total revenues) as well as by its contracted sales to private counterparties in the term market (Mater, around 21% of total revenues). Nonetheless, given the history of government intervention in the electricity market, Moody's believes downside risks persist, therefore Genneia's B2 ratings reflect Moody's views that the company's creditworthiness cannot be completely de-linked from the credit quality of the Government of Argentina (Caa1 stable) and, thus, the ratings are somewhat constrained by that of the sovereign. Moody's also notes that the company's asset base and expansion strategy will favor its positioning to take advantage of the electricity market deregulation recently announced by regulatory authorities, which will contribute to diversify its counterparty risk away from Cammesa. A comprehensive review of all credit ratings for the respective issuer(s) has been conducted during a rating committee. RATING OUTLOOK Genneia's stable outlook is aligned with that of the Government of Argentina (Caa1, stable). The stable outlook also reflects Moody's expectations that Genneia operating performance and liquidity will remain robust over the next 12 to 18 months. Quantitatively, the stable outlook incorporates that the company's leverage, as mesured by the Debt/EBITDA and FFO/Net Debt ratios, will stand at around 3x and in the range of 20-25% respectively over the next 12-18 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING An upgrade will be subject to an improvement in Moody's views on the Government of Argentina's rating or outlook. An upward rating movement will also require the company to sustain a strong credit profile such that it consistently reports a ratio of FFO/Net debt above 25% and RCF/Net debt above 18% coupled with strong liquidity and a balanced debt amortization profile. FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING A downgrade of the sovereign rating, deterioration in the operating environment or a significant negative shift in policies or regulations for the companies in the infrastructure sector will likely result in negative pressures on Genneia's rating. Adverse changes to the regulatory framework for the company's operations or a deterioration in Cammesa's payments terms could create negative pressure on the ratings. The incurrence of additional senior secured debt that accounts for more than 30% of its total consolidated debt, would also increase the downward rating pressure on the senior unsecured rating. COMPANY PROFILE Genneia S.A. is privately held independent power producer company that owns and operates a portfolio of power projects with 1.8 GW of installed capacity, as of September 2025. Genneia was the first company to build and operate a wind farm in Argentina and is currently the leading renewable power company in the country with more than 1.2GW of wind and solar plants, representing 21% of the renewable capacity of the country. Genneia's current shareholders include Argentum Investments LLC, a limited liability company incorporated in Delaware and managed by PointState Master Fund LP; LAIG Eolia S.A. a limited liability company incorporated in Uruguay, with investment interest in companies in the energy sector across Latin America; Fintech Energy LLC, incorporated in Delaware and controlled by Fintech Advisory Inc., a New York-based limited liability company with a long-term return strategy focused on emerging markets; and the Brito Group that pertains to the Brito and Carballo families, main owners and directors at the board of Banco Macro S.A., one of the biggest local private banks in Argentina. LIST OF AFFECTED RATINGS Issuer: Genneia S.A. Assignments: Senior Unsecured, Assigned B2 The principal methodology used in this rating was Unregulated Utilities and Power Companies published in August 2025. For Genneia, the difference between the scorecard-indicated outcome, both historical and projected, and the actual B2 rating assigned to the notes exceeds two notches, reflecting the credit links with the Government of Argentina and its exposure to the local operating environment and regulatory framework. =========== B R A Z I L =========== BANCO DE BRASILIA: S&P Downgrades ICR to 'B-', On Watch Negative ---------------------------------------------------------------- S&P Global Ratings lowered its global scale long-term issuer credit rating on BRB - Banco de Brasilia S.A. to 'B-' from 'B'. Moreover, S&P placed the long and short-term ratings on CreditWatch negative. S&P said, "The downgrade reflects our concerns about BRB's risk management, particularly in light of investigation into its recent portfolio loan acquisitions. Yesterday, the Federal Police launched its investigation into alleged fraud and misconduct at Banco Master, which was simultaneously placed under the control of a government-appointed administrator. BRB has recently acquired several loans from Banco Master, which are now under investigation due to suspicion of fraud. Adding to these concerns, a judicial order, issued yesterday, suspended BRB's CEO and CFO for 60 days." On Nov. 18, 2025, Brazil's Federal Police launched "Operation Compliance Zero," which is investigating an alleged fraud in loans acquired by BRB - Banco de Brasilia S.A. (BRB) from Banco Master. In S&P's view, the investigation raises further concerns about BRB's risk management and governance. Additionally, it's unclear how the investigation will unfold and how much it could affect the bank's reputation, financial profile, funding, and liquidity. S&P said, "BRB acquired R$18.6 billion in loans during the first half of the year. While the precise amount acquired from Banco Master is currently unclear, we believe it represents a sizeable portion of BRB's recent portfolio acquisitions. BRB's loan book totaled R$59.4 billion and its common shareholder equity was R$3.9 billion as of June 2025. "The launch of the investigation and BRB's acquisition of Banco Master's portfolio have heightened our concerns about the bank's risk management and governance practices, which we now view as more aggressive. We believe that pressures to increase revenue amid tightening margins and a relatively inflexible cost structure have incentivized BRB to pursue more aggressive growth strategies, exacerbating existing risk management challenges. "It's currently unclear how the ongoing investigation will unfold and how it could affect BRB's reputation, financials, funding, and liquidity. We believe there is some degree of uncertainty on what new information could arise regarding the loan portfolio acquired by BRB, as well as what second-order implications could materialize for the bank. Therefore, our CreditWatch negative placement indicates that we could further lower the ratings depending on how the investigation unfolds and its impact on BRB's credit fundamentals. "BRB's core profitability has been declining in recent years due to tighter margins. Margins have been falling due to lower spreads in payroll deductible loans and BRB's changing portfolio mix amid its expansion strategy. However, the cost of risk remained fairly stable, benefitting from portfolio sales and the profile of loans. In the first half of 2025, BRB's net income rose to R$510 million, which corresponded to an annualized return on average equity (ROE) of about 26%. However, extraordinary revenue from portfolio sales has boosted profits. We estimate that absent such nonrecurring revenue, profitability in the first half of 2025 would have remained on par with that in 2024, during which ROE was 6.2%. "The CreditWatch negative listing reflects the one-in-two possibility of a downgrade in the next 90 days if additional information from the investigation weakens the bank's creditworthiness. This could stem from deterioration in its capital, liquidity, or business and funding prospects. We expect to resolve the CreditWatch listing as soon as we have more information on how those developments may affect the bank." BANCO MASTER: Central Bank Shuts Bank as Police Detain Investor --------------------------------------------------------------- Reuters reports that Brazil's central bank effectively halted operations of mid-sized lender Banco Master, which had struggled in recent months with mounting liquidity pressures, as police arrested its controlling shareholder. The regulator named a liquidator to handle creditor claims and sell assets, closing a turbulent chapter for Master,‌ which had grown rapidly through an aggressive strategy built on high-yield debt sold through investment platforms, according to the report. About Banco Master As reported by the Troubled Company Reporter-Latin America on October 20, 2025, Fitch Ratings has downgraded Banco Master S.A.'s (Master) Foreign and Local Currency Long-Term Issuer Default Ratings (IDRs) to 'CC' from 'B-', its Viability Rating to 'cc' from 'b-', and its National Long-Term Rating to 'CC(bra)' from 'BB-(bra)'. Fitch has also downgraded Master's Short-Term Foreign and Local Currency IDRs to 'C' from 'B' and National Short-Term Rating to 'C(bra)' from 'B(bra). Fitch has affirmed the Government Support Rating (GSR) at 'no support' (ns). Fitch has removed all of the ratings from Rating Watch Negative (RWN). Fitch typically does not assign Outlooks to ratings of 'CCC+' or below. Fitch said the downgrade primarily reflects weakening of the bank's structural funding and liquidity profiles due to the lack of a definitive long-term funding solution after a proposed transaction with Banco de Brasília S.A. (BRB) failed to conclude. The downgrade also reflects Master's delay in publishing audited June 2025 financial statements, which amplifies information asymmetry and uncertainty regarding reported results and prudential metrics. This delay heightens governance and transparency risks and limits Fitch's visibility into performance quality, loan portfolio dynamics, capital adequacy, and contingencies. BRAZIL: Eyes Taxing Crypto for Cross-Border Payments ---------------------------------------------------- Reuters reports that Brazil is looking at taxing the use of cryptocurrencies for international payments, two officials with direct knowledge of the discussions told Reuters, closing a loophole in the country's usual levy on foreign-exchange transactions. One of the sources, who spoke on condition of anonymity about the confidential talks, said the Finance Ministry is looking at expanding its financial transaction tax (IOF) to some cross-border transfers using virtual assets and stablecoins that the central bank classified this month as forex operations, according to the report. 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: Moody's Puts Ba3 CFR on Review for Downgrade ------------------------------------------------------------------- Moody's Ratings has placed Companhia Siderurgica Nacional (CSN)'s Ba3 Corporate Family Rating, the Ba3 ratings of CSN Resources S.A.'s Backed Senior Unsecured Notes and the Ba3 rating of the Backed Senior Unsecured Notes of CSN Inova Ventures on review for downgrade. Previously the outlook was stable. RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The review process of CSN's ratings was triggered by the company's persistently weak credit metrics, high debt levels and negative free cash flow, and Moody's expectations that metrics will remain pressured in the next 12-18 months because of high cash outflows absent any major deleveraging initiative. CSN's adjusted EBITDA increased to around BRL9.8 billion in the 12 months that ended in September 2025 from BRL8.6 billion in 2024, while the company's Moody's adjusted leverage decreased to 5.5x from 6.7x during the same period. Moody's expects CSN's adjusted leverage ratio to remain within 5.0x-6.0x over the next 12-18 months based on lower steel and iron ore prices, but to strengthen to 4.0x-5.0x over time based on the price scenario of $80-$100 per ton for iron ore (62% Fe) and normalized profitability on steel operations. However, unless CSN is able to accelerate deleveraging through asset sales, capex reduction or proactive debt reduction, the company's credit metrics and free cash flow generation will be more commensurate with a lower rating category. The company's liquidity is adequate, but cash burn and upcoming refinancing needs could create refinancing risk in the medium-term. CSN has BRL16.5 billion in consolidated cash, of which BRL13.6 billion is at the mining subsidiary. Most of upcoming refinancing needs relate to bank debt, and the next relevant bond maturity is in 2028. However, with the current cash burn, refinancing risk has increased. Capital allocation within the group is also a concern. Most of CSN's debt sits at the holding level, while most of cash generation comes from mining subsidiary. CSN needs to address this situation to balance the risk among the group. The review process will focus on CSN's ability to raise cash and deleverage by reducing total debt in the next few months. The inability to announce transactions such as the sale of assets, or cut capex and dividends to preserve liquidity and reduce leverage would trigger a downgrade of the rating. Conversely, the ratings could be confirmed if CSN is able to pursue initiatives that materially addresses its capital structure, high debt burden and rebalance the capital structure within the group, such that adjusted leverage remains within 4x-5x, interest coverage of at least 1.5x and RCF/Net Debt of at least 15%. COMPANY PROFILE With an annual capacity of 5.6 million tons of crude steel, Companhia Siderurgica Nacional (CSN) is a vertically integrated, low-cost producer of flat-rolled steel, including slabs, hot and cold rolled steel, and a wide range of value-added steel products, such as galvanized sheets and tin plates. In addition, the company has downstream operations to produce customized products, pre-painted steel and steel packaging. CSN sells its products to a broad array of sectors and industries, including automotive, capital goods, packaging, construction and home appliances. CSN owns and operates cold rolling and galvanizing facilities in Portugal, along with long steel assets in Germany, through its subsidiary Stahlwerk Thuringen GmbH. The company also has a long steel line (500,000 tons capacity) at the Volta Redonda plant. CSN is a major producer of iron ore (the second-largest exporter in Brazil), with a sales volume of 44.6 million tons in the 12 months that ended September 2025. The company has operations in other segments, such as cement, logistics, port terminals and power generation. CSN reported revenue of BRL45.4 billion (or around $ 8.5 billion) in the 12 months that ended September 2025, with an adjusted EBITDA margin of 21.5%. The principal methodology used in these ratings was Steel published in September 2025. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. ELDORADO BRASIL: Moody's Downgrades CFR to Ba3, Outlook Stable -------------------------------------------------------------- Moody's Ratings has downgraded the Corporate Family Rating of Eldorado Brasil Celulose S.A. ("Eldorado") to Ba3 from Ba2, with a stable outlook. Previously, the rating was on review for downgrade. This action concludes the review initiated on August 18, 2025. RATINGS RATIONALE In August, Moody's placed Eldorado under review for downgrade following J&F's May 2025 acquisition of Paper Excellence's 49.4% stake in Eldorado for BRL15 billion (USD 2.7 billion), driven by the fundamental shift in Eldorado's risk profile. The transaction was financed via a shareholder-level bridge loan taken out by Eldorado via a BRL2 billion cash dividend and BRL13 billion in commercial notes. Eldorado subsequently redeemed these notes using unsecured trade finance instruments averaging 2.5 years in maturity, creating an unbalanced capital structure and straining short-term liquidity while increasing refinancing risk. During the review period, Eldorado implemented a liability management plan aimed at mitigating the short-term nature of its new debt and extending maturities to reduce refinancing pressure. Management used BRL3.7 billion in proceeds from excess forestry asset sales and swaps to reduce gross debt and issued long-term incentivized local market instruments, specifically, BRL1.5 billion in debentures maturing in 2035 and CRA-backed securitizations maturing in 7, 10 and 15 years, to lengthen its debt profile. These actions contributed to extending the company's average debt maturity to approximately 3.5 years while maintaining its average cost of debt. While these initiatives have helped address near-term refinancing risk, they were executed against a backdrop of elevated leverage and reduced access to alternative liquidity sources, underscoring the need for continued financial discipline. Although the monetization of forestry assets has temporarily strengthened liquidity, providing a buffer to cover 2026 debt amortizations and part of 2027, the company has nearly exhausted its surplus wood inventory. This limits its ability to generate further liquidity from forest assets in the short term without compromising operational capacity or productivity. The downgrade to Ba3 reflects Moody's expectations that Eldorado's leverage will remain elevated and above the downgrade trigger of 4.0x Moody's-adjusted total debt/EBITDA for a prolonged period. Moody's expects Moody's-adjusted leverage to peak near 7.0x by year-end 2025 and gradually decline to around 4.45x by the end of 2026 as Eldorado continues to execute its liability management plan, including additional asset monetization and debt amortization initiatives. Moody's also expects persistently low pulp prices and rising interest expenses to weigh heavily on cash flow generation and interest coverage metrics, with RCF/net debt projected to remain weak in 2026 at approximately 13% and while interest coverage remains constrained. Governance concerns have intensified following the May 2025 acquisition of Paper Excellence's 49.4% stake by J&F S.A, which further concentrated ownership and signaled a shift toward higher risk tolerance. This change is reflected in the disconnect between stated financial policy targets—such as net leverage of 2.5x to 3.5x—and actual funding behavior, including substantial debt issuance. The absence of formal shareholder guarantees, or cross-default mechanisms isolates Eldorado's credit standing from its parent and affiliated entities, reducing the likelihood of external support. Additionally, the use of dividend distributions to offset private commercial notes receivable from the controlling shareholder suggests a strategic move away from direct financial backing, reinforcing the perception of increasingly passive shareholder involvement. Although operating performance is expected to remain solid, Eldorado's ability to deleverage meaningfully beyond 2026 will depend on disciplined cash flow management—an effort complicated by volatile pulp prices and elevated interest costs. The company's elevated leverage and limited financial flexibility also constrains its ability to pursue near-term growth initiatives, making execution of its liability management plan and alignment between financial policy and practice critical to future rating actions. The stable outlook reflects Moody's expectations that Eldorado will continue to make progress in executing its liability management strategy, including reducing gross debt, extending maturities, and improving liquidity. Moody's also expects management to maintain a disciplined approach to cash flow allocation and pursue further measures to strengthen the balance sheet. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING The rating could be upgraded if Eldorado successfully concludes its liability management plan and leverage improves either through gross debt reduction or through improvement in cash flow generation, while maintaining a strong liquidity position. Quantitatively, an upgrade of the company's rating would require the maintenance of strong credit metrics including, leverage sustained below 3.5x Moody's-adjusted total debt/EBITDA on an ongoing basis, Moody's-adjusted retained cash flow to net debt above 25% on an ongoing basis, positive free cash flow (FCF) and interest coverage, measured as Moody's-adjusted EBITDA/interest expense, at or above 5.0x on a sustained basis. Upward pressure on the rating could also arise if Eldorado gains scale and increases cash flow diversification by source (different segments) and/or geography (asset location), while sustaining its competitive cost position and strong credit metrics. The rating could be downgraded if Eldorado's liquidity profile deteriorates or the company is not able to continue to improve its debt maturity schedule and capital structure. A downgrade could also result from deteriorations in operating performance or persistently low or negative free cash flow generation. Quantitatively, negative pressure on the rating would result from leverage, measured as total adjusted debt/EBITDA, expected to remain at 4.5x or above on a sustained basis, Moody's adjusted retained cash flow to net debt below 15% on an ongoing basis; and interest coverage, measured as adjusted EBITDA/interest expense, remaining below 4.0x on a sustained basis. Headquartered in Sao Paulo, Brazil, with operations in Tres Lagoas, Mato Grosso do Sul, Eldorado is a significant operator in the global pulp market. The company produces about 1.8 million tons of hardwood pulp per year. Production costs are highly competitive and supported by an extensive planted forest base of about 300 thousand hectares. Eldorado began operations in December 2012 and reported revenue of BRL6.2 billion ($1.12 billion) in the 12 months ended September 2025. Eldorado is wholly owned by J&F S.A (J&F). J&F, which is owned by the Batista family, is a Brazilian holding company with a diverse portfolio including protein producer JBS S.A. (Baa3 stable). J&F is active across various industries, including agribusiness, finance, energy and manufacturing The principal methodology used in this rating was Paper and Forest Products published in November 2025. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. TUPY S.A.: Fitch Lowers Long-Term IDR to 'BB-', Outlook Stable -------------------------------------------------------------- Fitch Ratings has downgraded Tupy S.A.'s (Tupy) Long-Term Foreign and Local Currency Issuer Default Ratings to 'BB-' from 'BB+'. Fitch has also downgraded the Long-Term National Scale Rating to 'AA(bra)' from 'AAA(bra)'. In addition, Fitch has downgraded Tupy Overseas S.A.'s USD375 million senior unsecured notes due 2031 to 'BB-' from 'BB+'. The Rating Outlook is Stable. The downgrade reflects Fitch's expectation that Tupy's financial structure and profitability will remain under pressure over the next 18 months. Depressed volumes in Tupy's primary markets are impacting revenues, profitability and leverage metrics. The Stable Outlook considers a gradual recovery of volumes by late 2026. The ratings consider Tupy's position as a Tier-1 supplier of high-value-added structural components which are widely used in commercial vehicles and heavy machinery. Tupy's ratings are constrained by its small scale versus global peers, moderate geographic diversification, and the high cyclicality and competitive nature of the auto industry. Key Rating Drivers Sustained High Leverage: Materially lower volumes have resulted in a significant deviation of Fitch's expected 2x net leverage for Tupy. Fitch does not expect the company will return to this leverage profile in the near future. In fact, Fitch projects Tupy is likely to breach the 3.5x net leverage covenant on its local debentures over the next six months. However, the ratings assume Tupy should be able to secure a waiver from debenture holders if that were to occur. Although Fitch's assessment of Tupy's business profile remains strong, its weakened financial profile reflects a rating more consistent with a 'BB- ' rating. On the assumption that volumes begin recovering toward the latter part of 2026, Fitch sees net leverage decreasing below 3x by the end of 2027. Fitch projects net leverage could remain above 2.5x and gross leverage above 3.5x over the next three years. Comfortable Debt Maturity, Cash Generation: Positively, liquidity and refinancing risks are manageable. Tupy does not have meaningful debt maturities until 2029. Its sole international bond is due in 2031. Fitch expects the company to maintain healthy levels of operating cash flow generation through the ratings horizon. Fitch also estimates FCF to be positive in 2025, while staying neutral to slightly negative for 2026-2028. FCF could turn positive depending on how quickly revenues and profitability recover. Operational Metrics to Remain Weak: Fitch projects revenues to be under BRL10 billion in 2025 and around BRL10 billion in 2026. Consequently, EBITDA margins are expected to be below 7% in 2025 and remain under 10% until 2027. This means EBITDA will stay considerably beneath BRL1 billion over the next two years. Fitch believes Tupy's volumes may begin to recover toward the end of 2026, but a weaker global economic environment and tariff uncertainties remain concerns. A faster turnaround of global demand for commercial and heavy vehicles could result in a material improvement of these projections. Strong Business Position: Tupy is well positioned as a Tier-1 supplier of structural components for commercial and industrial vehicles and machinery. Its high market penetration and relevance in the supply chain results in high shifting costs for its customers. Tupy's small size (less than USD2 billion in revenues) compared to other global auto parts suppliers is mitigated by its long-term relationships with major OEMs, moderate geographical footprint and high-quality product portfolio. Threats from Electrification: Fitch believes risks associated with demand for lowering carbon emissions globally are manageable for Tupy. Around 90% of its revenue derives from commercial vehicles, including heavy commercial and heavy machinery. In Fitch's view, traditional electric powertrains that run on batteries are less suitable for such vehicles and other alternatives may be more efficient. Through MWM energy and decarbonization products Tupy can gain access to alternative energy technologies which mitigates the risk and may allow for more diversification. Peer Analysis Tupy has higher leverage, smaller scale and weaker profitability when compared to regional peers Nemak, S.A.B. de C.V. (BBB-/Rating Watch Negative) and Metalsa S.A.P.I. de C.V. (BBB-/Stable). Nemak's and Metalsa's revenues approximate USD5 billion and USD3 billion, respectively, while Tupy's are under USD2 billion. The EBITDA margin for Tupy is expected to remain under 10% in the next 24 months while Nemak and Metalsa should maintain EBITDA margins at or above 12% over the same period. Fitch also expects Tupy's EBITDA net leverage to surpass 3.5x in 2025 while Nemak's is forecast be at 2.5x and Metalsa's under 1.5x. The same is true when compared to other 'BB' rated global auto suppliers like Dana Incorporated (BB/Rating Watch Positive) and Allison Transmission Holdings, Inc. (BB+/Stable), both of which are larger, more profitable and less levered than Tupy particularly when considering Dana's Off-Highway business sale to Allison. Key Assumptions - Sales volumes decline over 11% in 2025. Marginal growth of sales volumes in 2026 and improving by 4% in 2027 and beyond; - Revenues to remain under BRL10 billion through 2026 and surpassing that level thereafter; - EBITDA margins under 7% in 2025 and gradually improving to around 10% by 2027; - Prices increase in line with inflation and benefit from pass-through pricing; - The BRL and MXN to U.S. dollar exchange rate to remain relative stable; - Capex intensity of between 4% and 4.5% of revenue for 2025-2028; - Company will maintain prudent working capital management; - No dividend payout in 2026. Dividends resume in 2027. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Failure to agree on a waiver of the debentures 3.5x net leverage covenant; - EBITDA gross leverage sustained above 5x; - EBITDA net leverage consistently above 3.5x; - Sustained EBITDA margin below 8%; - Deterioration of liquidity. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Further improvement of Tupy's geographic footprint, client diversification and scale while materially improving FCF; - EBITDA gross leverage sustained below 3.5x; - EBITDA net leverage consistently below 2.5x; - Sustained EBITDA margin at or above 10%; - Maintenance of robust liquidity. Liquidity and Debt Structure Tupy S.A. maintains an adequate liquidity position. As of Sept. 30, 2025, the company reported approximately BRL1.6 billion in cash and cash equivalents, compared with short-term obligations of BRL127 million. The company has a well-distributed debt maturity profile with no major maturities until 2029 when one of its debentures and an EXIM facility are due, totaling around BRL950 million. Tupy holds approximately BRL3.9 billion in total debt, including BRL1.5 billion from three debentures and roughly BRL2 billion from its USD375 million international bond due in 2031. In addition, Tupy finances its operations through local export facilities and a credit line from the Brazilian Development Bank. Tupy has a flexible dividend policy that is sensitive to capital structure. Fitch does not expect the company to pay dividends until it improves its leverage metrics. Issuer Profile Tupy, founded in 1938 in Joinville, Santa Catarina (the Southern region of Brazil), is a leading global automotive supplier and one of the world's largest independent manufacturers of high-value cast iron structural components, such as engine blocks and cylinder heads. 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 Tupy S.A. has an ESG Relevance Score of '4' for Governance Structure due to board independence risk, which has a negative impact on the credit profile and is relevant to the ratings in conjunction with other factors. 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 ----------- ------ ----- Tupy Overseas S.A. senior unsecured LT BB- Downgrade BB+ Tupy S.A. LT IDR BB- Downgrade BB+ LC LT IDR BB- Downgrade BB+ Natl LT AA(bra) Downgrade AAA(bra) [] Moody's Takes Action on 9 Brazilian Banks Amid Ratings Update ---------------------------------------------------------------- Moody's Ratings has taken multiple rating actions following the publication of the updated Banks methodology on November 17, 2025, which is Moody's primary methodology for bank ratings globally. In Latin America, nine banking groups had rating actions due to the methodology change. These institutions are either domiciled in Brazil or are part of financial groups primarily operating there. Of these, eight banking groups had all their ratings and assessments affirmed, while one entity had an upgrade in its baseline credit assessment (BCA), with all other ratings and assessments affirmed. Although the overall rating impact of the methodology change in the region was limited, these actions were prompted by significant changes in scorecard unadjusted or adjusted factor scores, or the introduction of qualitative adjustments for risks that are not entirely reflected in the Financial Profile of these entities. The banks and financial institutions included in this rating action are: Itau Unibanco Holding S.A., Itau Unibanco Holding S.A. (Cayman Islands), Itau Unibanco S.A., Itau Unibanco S.A. (Cayman Islands), Banco Mizuho do Brasil S.A., Banco Citibank S.A., Banco da Amazônia S.A., Banco de Desenvolvimento de Minas Gerais S.A., Banco do Estado do Pará S.A., Banco do Estado do Rio Grande do Sul S.A., Banco do Nordeste do Brasil S.A. and Banco Regional de Desenvolvimento do Extremo Sul. A List of Affected Credit Ratings is available at https://urlcurt.com/u?l=q8mdui RATINGS RATIONALE Moody's updated Banks methodology maintains Moody's overall methodological approach, but Moody's have made a number of changes to the BCA framework. These include changes to certain metrics or sources of metrics and the recalibration of thresholds for the Credit Conditions factor of the Macro Profile, as well as updated ratio definitions and scoring calibrations for the Capital, Funding Structure and Liquid Resources subfactors of the Financial Profile. Further, Moody's have added and refined Moody's adjustments to the Macro Profile factor scores and the Financial Profile subfactor scores. Moody's have also provided more clarity on how Moody's apply Qualitative Adjustments notching for outsized risks that Moody's might not otherwise fully capture in the Financial Profile. Additionally, Moody's have simplified the presentation of Moody's framework for the additional notching component of instrument ratings to reflect features that could affect expected loss but that are not always related to failure, and Moody's adopted a principles-based approach to applying scenario analysis and stress testing in Moody's forward-looking assessment of a bank's credit quality. For each banking group included in action, unless the narrative below updates Moody's views on a particular rating component, sub-component, factor or sub-factor, or rating outlook, these considerations are unchanged. BANKING GROUP-SPECIFIC CONSIDERATIONS -- ITAU UNIBANCO S.A. (Itau Unibanco) and ITAU UNIBANCO HOLDING S.A. The affirmation of Itau Unibanco's ratings and assessments reflects a balance between improvements in Moody's assessments of the bank's financial profile, especially regarding the Capital, Funding and Liquidity subfactor scores and the fact that the bank's ba1 BCA continues to be constrained by the bond rating of the Government of Brazil (Ba1 stable). Itau Unibanco's financial profile is supported by the bank's consistent track record in managing credit risk and its diverse loan book and revenue structure. The affirmation of all ratings and assessments of Itau Unibanco's associated entities follows the affirmation of Itau Unibanco's ratings and assessments. -- BANCO MIZUHO DO BRASIL S.A. (Mizuho Brasil) The upgrade of Mizuho Brasil's BCA reflects improvements in Moody's assessments of the Capital, Funding and Liquidity subfactor scores, alongside the bank's consistent track record in managing credit risk, which helps mitigating the bank's intrinsic asset concentrations. The affirmation of Mizuho Brazil's Adjusted BCA, factors Moody's assessments of a very high likelihood of support from its parent, Mizuho Bank, Ltd. (A1 stable, baa1), in line with Mizuho Brazil's high level of strategic coordination and integration with its parent company in terms of funding, liquidity and risk management practices. -- BANCO CITIBANK S.A. (Citibank Brazil) The affirmation of Citibank Brazil's ratings and assessments reflects a balance between improvements in Moody's assessments of the of the Capital and Funding subfactor scores and the fact that the bank's BCA is constrained by the bond rating of the Government of Brazil (Ba1 stable). -- BANCO DA AMAZÔNIA S.A. The affirmation of Banco da Amazônia's ratings and assessments balances improvements in Moody's assessments of the bank's financial profile, especially regarding the Capital and Funding subfactors score, and the recognition of its limited business and geographic diversification, due to its limited business scope as the development bank of the Amazon region and manager of the constitutional fund for development of the North region of Brazil, where its operations are concentrated. -- BANCO DE DESENVOLVIMENTO DE MINAS GERAIS S.A. (BDMG) The affirmation of BDMG's ratings and assessments balances improvements in Moody's assessments of the bank's financial profile, especially regarding the Capital and Funding subfactors score, and the recognition of its limited business and geographic diversification, due to the bank´s limited business scope as the development bank of Minas Gerais and the inherent concentration of the bank's operations within the state that increase the interconnection with local economy and business cycle. -- BANCO DO ESTADO DO PARÁ S.A. (BanPara) The affirmation of BanPara's ratings and assessments balances improvements in Moody's assessments of the bank's financial profile, especially regarding the Capital subfactor score, and the recognition of its limited business and geographic diversification, as the bank's operations are largely constrained to the state economy, which limits its revenue stream diversification and adds asset risk concentration, as well as its concentration on payroll lending to public servants that reinforce the interlinkages between the bank and the state economic dynamics. -- BANCO DO ESTADO DO RIO GRANDE DO SUL S.A. (Banrisul) The affirmation of Banrisul's ratings and assessments balances improvements in Moody's assessments of the bank's financial profile, especially regarding the Capital subfactor score, and the recognition of its limited business and geographic diversification, due to the bank´s entrenched operations into the Rio Grande do Sul state that expose it to the state´s financial conditions, and high risk correlation with the agribusiness sector, which is an important economic sector in the region, and exposed to climatic events. -- BANCO DO NORDESTE DO BRASIL S.A. (BNB) The affirmation of BNB's ratings and assessments balances improvements in Moody's assessments of the bank's financial profile, especially regarding the Capital and Funding subfactors score, and the recognition of its limited business and geographic diversification, due to the bank´s limited business scope as the development bank of the Northeast region and manager of the constitutional fund for development of the Brazilian Northeast region, where its operations are concentrated. -- BANCO REGIONAL DE DESENVOLVIMENTO DO EXTREMO SUL (BRDE) The affirmation of BRDE's ratings and assessments balances improvements in Moody's assessments of the bank's financial profile, especially regarding the Capital and Funding subfactors score, and the recognition of its limited business and geographic diversification, due to the bank´s limited business scope as a development bank focused on the South region of Brazil, where its operations are concentrated. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS For each bank included in action, an improvement in the entity's creditworthiness could lead to an upgrade, where relevant, of long-term deposit, issuer and senior unsecured debt ratings. For each bank included in action, a deterioration in the entity's creditworthiness could lead to a downgrade, where relevant, of long-term deposit, issuer and senior unsecured debt ratings. The principal methodology used in these ratings was Banks published in November 2025. Banco Mizuho do Brasil S.A.'s BCA is set three notches below the "Financial Profile" initial score of baa2 to reflect the bank's intrinsic asset and depositor concentrations. Banco da Amazônia S.A.'s BCA is set three notches below the "Financial Profile" initial score of baa3 to reflect geographical concentration due to the bank's limited scope as development bank and focus in a single region. Banco de Desenvolvimento de Minas Gerais S.A.'s BCA is set five notches below the "Financial Profile" initial score of baa2 to reflect geographical concentration due to the bank's limited scope as development bank and focus in a single state. Banco do Estado do Para S.A.'s BCA is set two notches below the "Financial Profile" initial score of baa3 to reflect geographical concentration due to the bank's focus in a single region. Banco do Estado do Rio Grande do Sul S.A.'s BCA is set two notches below the "Financial Profile" initial score of ba1 to reflect geographical concentration due to the bank's focus in a single state. Banco do Nordeste do Brasil S.A.'s BCA is set four notches below the "Financial Profile" initial score of baa3 to reflect geographical concentration due to the bank's limited scope as development bank and focus in a single region. Banco Regional de Desenvolvimento do Extremo Sul's BCA is set three notches below the "Financial Profile" initial score of baa2 to reflect geographical concentration due to the bank's limited scope as development bank and focus in a single region. =============== C O L O M B I A =============== CANACOL ENERGY: S&P Downgrades Issuer Credit Rating to 'D' ---------------------------------------------------------- S&P Global Ratings lowered its issuer credit and issue-level ratings on Colombian natural gas producer Canacol Energy Ltd. (Canacol) to 'D' from 'CCC+'. The downgrade follows Canacol's filing for creditor protection to initiate an organized debt restructuring. On Nov. 18, 2025, Canacol announced that it has filed for creditor protection under CCAA with the Court of King's Bench of Alberta. The company intends to use this restructuring in the U.S. under Chapter 15, reflecting its Canadian incorporation and U.S. debt issuance, and in Colombia through cross-border insolvency proceedings. S&P believes that the company's filing for creditor protection is related to its $36.5 million cash balance as of Sept. 30, 2025, and weaker business conditions, which are pointing to a virtual certainty of nonrepayment of its obligations, including interest, accounts payable, and the $22 million arbitral award to VP Ingenergia. =================== C O S T A R I C A =================== BANCO BAC SAN JOSE: Fitch Puts 'BB+' LT IDR on Watch Evolving ------------------------------------------------------------- Fitch Ratings placed Banco BAC San Jose, S.A. 's (BAC San Jose) 'BB+' Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs), and 'bb+' Shareholder Support Rating (SSR) on Rating Watch Evolving (RWE). Fitch also placed the bank's 'B' Short-Term IDRs on Rating Watch Positive (RWP), following a recent, similar action on the parent BAC International Bank, Inc.'s (BIB) Long-Term IDR. These actions follow BIB's announcement of the plans to purchase of a majority stake in Multi Financial Group Inc. (MFG) and subsidiaries, including Multibank Inc. The rating actions reflect the strong linkage of BAC San Jose's ratings to BIB's. Fitch took no action on BAC San Jose's Viability Rating (VR) and does not expect the bank's intrinsic credit profile to be affected by the transaction. For more information, see "Fitch Places BIB's and Multibank's LT IDRs on Rating Watch Evolving Following Merger Plans," published on Nov. 10, of 2025". Key Rating Drivers Shareholder Support Drives IDRs: BAC San Jose' IDRs are driven by the bank's SSR, which reflects Fitch's view of parent BIB's (BB+/RWE) high propensity and adequate ability to extend support, if needed. Therefore, BAC San Jose's IDRs mirror its shareholder's current RWE. Core Subsidiary; High Integration: Fitch's assessment of the parent's ability to provide support considers BAC San Jose's key and integral role in BIB's regional diversification strategy. The Costa Rican subsidiary provides core products in a strategically important jurisdiction. Reputational Influence: BIB's subsidiaries in Central America operate under the same brand. Therefore, Fitch's support assessment reflects its view that an unexpected default of BAC San Jose or any of BIB's rated subsidiaries would constitute reputational risk for the parent and could significantly affect its franchise. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Any material reduction in BIB's propensity to provide support may trigger a downgrade of BAC San Jose's IDRs and SSR. Additionally, a downgrade of BIB's IDRs could lead to a similar action on BAC San Jose's ratings. - Negative changes in BAC San Jose's IDRs and SSR could result from a downgrade of more than one notch in Costa Rica's sovereign rating or country ceiling. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - BAC San Jose's IDRs and SSR could be upgraded by one notch following a similar action on BIB's IDR due to country ceiling restrictions. Public Ratings with Credit Linkage to other ratings BAC San Jose's IDRs are support driven from BAC International Bank. Entity/Debt Rating Prior ----------- ------ ----- Banco BAC San Jose, S.A. LT IDR BB+ Rating Watch On BB+ ST IDR B Rating Watch On B LC LT IDR BB+ Rating Watch On BB+ LC ST IDR B Rating Watch On B Shareholder Support bb+ Rating Watch On bb+ =============== H O N D U R A S =============== INVERSIONES ATLANTIDA: Fitch Puts 'B' Long-Term IDR on Watch Neg. ----------------------------------------------------------------- Fitch Ratings has placed Inversiones Atlantida, S.A.'s (Invatlan) Long- and Short-Term Foreign and Local Currency Issuer Default Ratings (IDRs), its senior debt rating and expected rating on Rating Watch Negative (RWN). Invatlan's RWN reflects the heightened liquidity risk and challenges regarding its plan to face the USD300 million bond maturing on May 19, 2026. Fitch has concerns about Invatlan's ability to address the maturity given the limited time frame in challenging global capital markets, which could result in downgrades before the bond's due date. Fitch will monitor Invatlan's contingency plan to address the bond maturity and expects to review the ratings again within the next 30 days from the date of this rating action. Key Rating Drivers Heightened Liquidity Risk: Fitch believes Invatlan's contingent liquidity plans have become significantly less prudent, constraining its flexibility and available options ahead of the May 2026 bond maturity. While Invatlan has subsidiaries in the Latin American region that provide income streams through dividends (primarily pension funds and insurers), there is a gap between its current capacity and the upcoming debt maturity amount. Invatlan's ratings are driven by the creditworthiness of its main subsidiary, Banco Atlantida, S.A. (Atlantida). Invatlan is rated one notch below Atlantida mainly due to its high double leverage, which has remained above 120% in recent years. Fitch does not rule out the possibility of a downgrade in the very near future, which could lead to a greater differentiation between Atlantida's and Invatlan's ratings due to the increased liquidity pressures and risks, even if the level of double leverage does not change materially from recent levels. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Fitch expects to resolve the RWN after assessing the progress of Invatlan's proposed contingency plan and their impact on its credit profile. If liquidity risk increases significantly, Fitch does not rule out a multi-notch downgrade of the ratings; - A significant reduction in dividend transfers from Invatlan's main subsidiaries that ultimately affects its liquidity to service debt, or a sustained increase of double leverage to above 200%. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - The RWN could be resolved and the ratings affirmed if Invatlan's near-term funding strategies are completed successfully, materially reducing the liquidity risk; - Invatlan's IDRs could eventually be upgraded by one notch if the company's double-leverage ratio decreases materially to a level significantly and consistently below 120%. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS Invatlan's Senior Secured Notes: The rating and expected rating on the senior secured notes are aligned with Invatlan's ratings. Although the notes are secured, Fitch believes the collateral mechanism does not materially change default risk and/or enhance recovery prospects. Under Fitch's criteria, recoveries are considered average, consistent with a Recovery Rating of 'RR4'. OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - The global senior secured debt rating and expected rating, which were also placed on RWN, would mirror any change to Invatlan's IDRs. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - The global senior secured debt rating and expected rating would mirror any change to Invatlan's IDRs. Public Ratings with Credit Linkage to other ratings Invatlan's IDRs are linked to Atlantida's IDRs. ESG Considerations Fitch revised the ESG Relevance Score for Management Strategy of Invatlan to '4' from '3' due to risks associated with the company's ability to execute its strategy to pay its senior unsecured debt. These execution risks have a negative impact on the credit profile and are relevant to the ratings in conjunction with other factors. Invatlan has an ESG Relevance Score of '4' for Financial Transparency due to lagging or missing information disclosure. This has a negative impact on the credit profile and is relevant to the ratings in conjunction with other factors. 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. REPORT OF ISSUER'S APPEAL In accordance with Fitch's policies, the issuer appealed and provided additional information to Fitch that resulted in a rating action that is different than the original rating committee outcome. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Inversiones Atlantida S.A. LT IDR B Rating Watch On B ST IDR B Rating Watch On B LC LT IDR B Rating Watch On B LC ST IDR B Rating Watch On B senior secured LT B Rating Watch On RR4 B senior secured LT B(EXP) Rating Watch On RR4 B(EXP) ============= J A M A I C A ============= JAMAICA: BOJ Makes US$30 Million Intervention in Forex Market ------------------------------------------------------------- RJR News reports that the Bank of Jamaica stepped into the foreign exchange market again, injecting another US$30 million in an effort to steady the sliding Jamaican dollar. This marks the central bank's 29th intervention since the start of the year, bringing total foreign exchange support to about US$800 million, according to RJR News. The move follows renewed pressure on the currency, which fell to US$161.96 against the US dollar after the International Monetary Fund confirmed that Jamaica has not requested balance of payment support in the aftermath of Hurricane Melissa, the report notes. But the injection did not fully meet demand, the report relays. The BOJ received 45 bids, totalling US$60 million, but only accepted 21 of those, amounting to US$30 million, the report says. Meanwhile, in a two-pronged effort to stabilise the dollar, the bank took another US$39 billion out of circulation, with its fixed-rate certificate of deposit at 5.93% per annum, the report notes. A total of 330 bids were submitted for $52.1 billion, but it accepted only 262 of these bids, valued at $39 billion, the report adds. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a positive rating outlook. In October 2023, Moody's upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to B1 from B2, and senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has been changed to positive from stable. In September 2024, S&P affirmed 'BB-/B' longterm foreign and local currency sovereign credit ratings on Jamaica and revised outlook to positive. JAMAICA: Has Yet to Apply for IMF Drawdown Post Hurricane Melissa ----------------------------------------------------------------- RJR News reports that the International Monetary Fund (IMF) said Jamaica has still not applied to it to draw down US$500 million available to countries which suffer balance of payment shocks because of natural disasters, commodity shocks and pandemics. This is although Prime Minister Dr. Andrew Holness counted this money in the more than US$1 billion he said was available to commence the rebuilding process, according to RJR News. In order to access this facility, a country has to make a request to the IMF board, which would then send a group of economists to the country in order to assess the situation, the report notes. A staff agreement would then be agreed on before the financing is disbursed rapidly to deal with the situation, the report relays. The agreement allows a member country to draw down 50% to 100% of its quota annually between three and five years, with an interest rate of 2.82% per annum, 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 ===================== ERC MANUFACTURING: To Sell Naranjito Property to Nelson B. Elias ---------------------------------------------------------------- ERC Manufacturing Inc. seeks permission from the U.S. Bankruptcy Court for the District of Puerto Rico, to sell Property, free and clear of liens, claims, interests, and encumbrances. The Debtor's Property is located at Carr 814 Km 0.8 Cedro Abajo, Naranjito, Puerto Rico, which is comprised of productive assets which includes the real estate holdings associated with the operational facilities, the equipment and machinery used in production and distribution and the vehicles registered under ERC Manufacturing, Inc. and used for business operations. The Debtor receives three purchase offer to purchase the Property: -- Mr. Jose D. Rivera Fuentes, P.E., President of Enviro-Tab, Inc. in the amount of $380,000.00. -- Dr. Omar Rivera, President of Omar El Dentista, LLC, in the amount of $300,000.00 -- Mr. Nelson B. Elias, President of BA Professional Services, LLC in the amount of $425,000.00. There are no other assets to be claimed by the debtor, for after the sale is completed, the debtor will cease to continue or operate any future business. After payment of administrative expenses, and U.S. Trustee's fees, the debtor will surrender the remaining in behalf of the priority and secured creditors. All of Debtor's assets will be sold free and clear of any liens and interests over the mentioned assets. The Debtor intends to sell the Property to Mr. Nelson B. Elias, who is the one interested in buying the assets for the highest amount. About ERC Manufacturing, Inc. ERC Manufacturing Inc. owns the property located at Carr 814 Km 0.8 Cedro Abajo, Naranjito, Puerto Rico, spanning 6,977.84 square meters. It includes a two-story commercial office building, two metal concrete industrial buildings, 28 parking spaces, two offices, two terraces, two workshops, two mezzanines, and two bathrooms. The appraised value is $213,000, as of July 27, 2016. ERC Manufacturing Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 25-00475) on February 4, 2025. In its petition, the Debtor reports total assets of $785,322 and total liabilities of $1,599,734. The Debtor is represented by Juan C. Bigas, Esq., in Ponce, Puerto Rico. PALMAS ATHLETIC: Unsecureds Owed $100K+ to Get 10% over 60 Months ----------------------------------------------------------------- Palmas Athletic Club Corp. filed with the U.S. Bankruptcy Court for the District of Puerto Rico a Disclosure Statement describing its Plan of Reorganization dated November 6, 2025. The Debtor is a domestic not for profit corporation organized under the laws of the Commonwealth of Puerto Rico on June 15, 2010. The Debtor is the owner of certain real estate facilities and related amenities located at Palmas del Mar, Humacao, PR, consisting of an eighteen hole championship golf course known as the Flamboyant Course, an approximately 22,200 square feet golf clubhouse and related facilities, an approximately 5,600 square feet Beach Club house and other related facilities, a Racquet Center with fifteen tennis courts and six pickleball courts and associated facilities including a gym, and a second eighteen hole championship golf course known as the Palm Course (collectively, the "Facilities"). Palmas Country Club, Inc. ("PCCI") (Debtor's predecessor) and the Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority, an instrumentality of the government of the Commonwealth of Puerto Rico ("AFICA"), entered into a Loan Agreement, dated October 26, 2000 (the "AFICA Loan Agreement"). The Plan considers the obtention of exiting financing from PR Municipal Financing LLC, for up to $7,000,000 to enable Debtor to pay off UBS Trust Company of Puerto Rico's secured claim vis a vis the value of the collateral securing the same or in the alternative providing a long-term payment plan in consideration thereof, together with other long term payment plans. Furthermore, the Plan considers an assessment to Debtor's club members. Class 4 consists of Holders of Allowed General Unsecured Claims for $100,000 or less and those General Unsecured Creditors who voluntarily reduce their claims to $100,000. Excepting the unsecured claim of UBS, which will not receive any dividends under this Class, Holders of Allowed General Unsecured Claims for $100,000 or less and those General Unsecured Creditors who voluntarily reduce their claims to $100,000.00 will receive 10% of their claims, in full payment and release thereof, on the Effective Date. The allowed unsecured claims total $240,608.69. This Class is impaired. Class 5 consists of Holders of Allowed General Unsecured Claims in Excess of $100,000. Excepting the unsecured claim of UBS, who will not receive any dividends under this Class, Holders of Allowed General Unsecured Claims in excess of $100,000.00 will receive 10% of their Allowed Claims in sixty deferred equal consecutive monthly installments, without interest, commencing on the Effective Date and continuing on the 30th day of the following 59 months. The allowed unsecured claims total $474,957.87. This Class is impaired. Except as otherwise provided in the Plan, Administrative Expense Claims and Class 4 will be paid in cash on the Effective Date of the Plan. Allowed Priority Unsecured Tax Claims, Classes 1, 2, and 3 and General Unsecured Claims in excess of $100,000.00 (Class 5) will be paid with the available funds generated by Debtor's operations, funds from the DIP financing, the redemption of securities. The Plan provides for the full payment of Chapter 11 Administrative Expense Claims and Priority Tax Claims, including professional fees, US Trustee's quarterly fees and Priority Taxes pursuant to the payments plan proposed. General unsecured creditors (Classes 4 and 5) will receive 10% of their claims. Classes 2 and 3 will receive 100% of their claims pursuant to the terms discussed earlier. Class 1 will receive between $9,000,000 and $14,000,000 depending on the alternative finally negotiated. A full-text copy of the Disclosure Statement dated November 6, 2025 is available at https://urlcurt.com/u?l=Q1e2G0 from PacerMonitor.com at no charge. Counsel to the Debtor: Charles A. Cuprill, Esq. Charles A. Cuprill, PSC, Law Offices 356 Fortaleza Street, Second Floor San Juan, PR 00901 Telephone: (787) 977-0515 Facsimile: (787) 977-0518 Email: ccuprill@cuprill.com About Palmas Athletic Club Corp. Palmas Athletic Club Corp. owns and operates a 420-acre recreational property within Palmas Del Mar Resort in Humacao, Puerto Rico. The site includes two 18-hole golf courses, a 22,200-square-foot clubhouse, a 5,600-square-foot beach clubhouse, and related facilities. Palmas Athletic Club Corp. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 25-03489) on Aug. 4, 2025. In its petition, the Debtor reports total assets of $16,793,944 and total liabilities of $36,514,983. The Debtor tapped Charles A. Cuprill Hernandez, at Charles A. Cuprill, PSC, Law Offices, as counsel; and CPA Luis R. Carrasquillo & Co., PSC, as financial consultant. ********* 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. 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