260126.mbx

260126.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, January 26, 2026, Vol. 27, No. 18 Headlines A R G E N T I N A BANCO MACRO: Fitch Rates USD400MM Sr. Unsecured Notes 'CCC+' B O L I V I A BOLIVIA: Fitch Hikes LongTerm Foreign Currency IDR to 'CCC' G R E N A D A GRENADA: Proven Resilience in the Aftermath of Hurricane, IMF Says G U A T E M A L A BANCO INDUSTRIAL: Fitch Rates USD750MM Sub. Notes Due 2036 'BB-' J A M A I C A JAMAICA: BOJ to Inject US$20 Million Into Forex Market JAMAICA: Government Projecting Sharp Economic Decline JAMAICA: To Borrow $5BB via 20-Year Bond to Finance Budget M E X I C O HILTON GRAND: Moody's Lowers CFR to 'B1', Outlook Stable P A N A M A BAC INTERNATIONAL: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable P U E R T O R I C O ECGPR LLC: Unsecureds Owed $200,00 to Get 16% in 60 Months - - - - - ================= A R G E N T I N A ================= BANCO MACRO: Fitch Rates USD400MM Sr. Unsecured Notes 'CCC+' ------------------------------------------------------------ Fitch Ratings has assigned a final 'CCC+' rating with a Recovery Rating of 'RR4' to Banco Macro S.A.'s (Macro) USD400 million senior unsecured notes. The notes have a five-year maturity and a coupon of 8%. Net proceeds will be used for the repayment of the bank's subordinated notes due 2026 and for general corporate purposes. Key Rating Drivers Macro's senior unsecured notes are rated at the same level as Macro's Long-Term Issuer Default Rating (IDR) of 'CCC+', as the likelihood of default of the notes is the same as that of the bank. The notes will constitute Macro's direct, unconditional, unsecured and unsubordinated obligations and will rank at all times at least pari passu in right of payment with all other existing and future unsecured and unsubordinated obligations. Macro's 'ccc+' Viability Rating (VR) drives its IDR. In Fitch's view, regardless of the bank's overall adequate financial condition, its ratings are constrained by Argentina's IDR and the agency's assessment of the operating environment. In addition, the VR considers the bank's sound asset quality, adequate profitability, strong capitalization, and its adequate liquidity and funding metrics. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade -- Macro's senior unsecured debt ratings are directly linked to the bank's Long-Term IDR. Any negative rating action on the IDR will result in a similar rating action on the debt ratings. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade -- Macro's senior unsecured debt rating will generally move in tandem with the bank's Long-Term IDR. RATING ACTIONS Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Banco Macro S.A. senior unsecured LT CCC+ New Rating RR4 CCC+(EXP) ============= B O L I V I A ============= BOLIVIA: Fitch Hikes LongTerm Foreign Currency IDR to 'CCC' ----------------------------------------------------------- Fitch Ratings has upgraded Bolivia's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'CCC' from 'CCC-.' Fitch typically does not assign Outlooks to sovereigns with a rating of 'CCC+' or below. Upgrade: The upgrade of Bolivia's rating reflects easing risks of default or restructuring due to reduced political constraints on external financing, financing commitments from multilaterals, and the elimination of fuel subsidies, which should support fiscal deficit reduction and reserve accumulation. Risks remain high given still very narrow external liquidity buffers. Bolivia's 'CCC' rating reflects persistent large fiscal deficits largely financed by the central bank in recent years and macroeconomic weaknesses, including contracting growth and high inflation. These weaknesses are offset by the relatively low external commercial debt burden and near-term maturities as well as ongoing economic reform program aimed to correct macroeconomic imbalances and boost international reserves. Key Rating Drivers Default Risks Easing: Bolivia faces Eurobond debt service (amortization + interest) of USD388 million in March 2026. Narrow external liquidity buffers contributed to last year's rating downgrade to 'CCC-', reflecting concerns about repayment capacity absent a change in policy direction. However, a more favorable composition in congress should allow for the approval of new external financing, including budget support loans. Liquid international reserves rose to USD523 million as of Jan. 9, 2026, following a CAF loan disbursement, the highest level since December 2022 (total reserves including gold reached USD3.8 billion). Opposition Wins Elections: Rodrigo Paz of the center-right Christian Democratic Party (PDC) won Bolivia's presidential elections in a run-off in October 2025, ending 20 years of rule by the leftist Movimiento al Socialismo (MAS). While the PDC did not obtain outright majorities in Congress, the potential for alliances with other right-leaning parties creates a much more favorable backdrop to advance reforms, particularly for approval of external financing which has been constrained in recent years. The MAS obtained only two seats in the Chamber of Deputies. Bold Economic Reforms: An executive decree issued in December 2025 outlined a broad array of measures to shore up the ailing economy, including the elimination of costly fuel subsidies, coupled with offsetting social measures such as an increase in the minimum wage. Other measures include a plan to transition to a more flexible FX arrangement, trade liberalization, and incentives to support investment. Following road blockades and protests from labor unions, a revised version of the decree was approved in January, moving some elements onto the legislative agenda but maintaining the elimination of fuel subsidies. External Financing to Support Reserves: Fresh external financing (the government projects up to USD3.5billion in disbursements in 2026) as well as a reduction in fuel imports after the removal of subsidies, a likely weaker exchange rate, and import compression should allow the government to start accumulating reserves, supporting debt service capacity. After the March payment, Bolivia owes USD46.8 million in Eurobond coupons in September 2026 and faces a second USD333 million amortization in March 2027. Prospects for an IMF program are unclear, as the authorities ruled this out during the campaign, but the materialization of other multilateral funding without such a program has been a positive development. The prior government acquired FX in recent years through the acquisition and sale of local gold. There is some scope for this to continue in 1H26 to honor gold forward contracts signed by the outgoing government, totaling USD738 million with a one-year maturity, due in June-October. Data transparency is improving, with the BCB restarting weekly publications of reserves data. Social Tensions Key Risk: Social backlash to the economic transition poses a significant risk to the outlook. Protests and blockades have emerged across the country in response to the executive decree, with the government actively negotiating with various sectors. The government approved a revised version of the initial executive decree following discussions with unions, which may help ease tensions. Fuel Subsidy Removal to Support Fiscal Consolidation: Fiscal data for 2025 has not yet been released, but Fitch estimates the general government deficit has risen to 12.6% of GDP, up from 9.5% in 2024. The elimination of fuel subsidies (costing upwards of 6% of GDP) should support a sharp reduction of the deficit in 2026, although it is still likely to remain elevated. The government envisions introduction of a medium-term fiscal framework, an improvement from previously unanchored deficits. Lower deficits and approval of external financing should also reduce the government's dependence on central bank financing. Weak Macroeconomic Picture: A new GDP data series released just before the election reveals a much weaker economic backdrop than the prior series, with the economy contracting by 1.1% in 2024 and 2.4% in 1H25. Fitch expects weak growth to continue this year as the economic adjustment affects activity, with a moderate recovery in the medium-term. Inflation averaged 19.4% yoy in 2025, and Fitch expects it to fall in 2026 but remain elevated given the elimination of fuel subsidies and inertia after a large minimum wage increase. The government aims to move toward a more flexible exchange rate regime. The BCB has begun to publish a daily reference rate on its website of the parallel FX rate (which is about 23% weaker than the official rate, though much stronger than before the elections). ESG - Governance: Bolivia has an ESG Relevance Score (RS) of '5' for both Political Stability and Rights and for the Rule of Law, Institutional and Regulatory Quality and Control of Corruption. Theses scores reflect the high weight that the World Bank Governance Indicators (WBGI) have in Fitch's proprietary Sovereign Rating Model (SRM). Bolivia has a low WBGI ranking at the 22nd percentile, reflecting recent political instability, weak regulatory quality, weak rule of law, a high level of corruption, and moderate voice and accountability. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade -- External Finances/Structural: Depletion of usable foreign currency reserves and/or the failure of external loan disbursements to materialize, which hampers debt repayment capacity; and/or evidence of reduced willingness to pay external debt as a means of alleviating current external liquidity pressures; -- Macro/Public Finances: Failure to implement a macroeconomic and fiscal policy adjustment consistent with rebuilding reserves and a sustainable path for public finances. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade -- External Finances: Rebuilding of international reserves that improves debt service capacity; -- Macro/Public Finances: Fiscal consolidation and a macroeconomic adjustment program that supports stabilization of the government debt-to-GDP ratio and improves financing flexibility. Sovereign Rating Model (SRM) and Qualitative Overlay (QO) Fitch's proprietary SRM assigns Bolivia a score equivalent to a rating of 'B-' on the Long-Term Foreign-Currency IDR scale. However, in accordance with its rating criteria, Fitch's Sovereign Rating Committee has not utilized the SRM and QO to explain the rating in this instance. Ratings of 'CCC+' and below are guided directly by the rating definitions. Fitch's SRM is the agency's proprietary multiple regression rating model that employs 18 variables based on three-year centered averages, including one year of forecasts, to produce a score equivalent to a LT FC IDR. Fitch's QO is a forward-looking qualitative framework designed to allow for adjustment to the SRM output to assign the final rating, reflecting factors within Fitch's criteria that are not fully quantifiable and/or not fully reflected in the SRM. Debt Instruments: Key Rating Drivers Fitch removes Bolivia's debt instruments from Under Criteria Observation and upgrades them to 'CCC+' from 'CCC-'. The senior unsecured long-term debt ratings are one notch above the applicable long-term IDR. Fitch expects good recovery prospects in a default scenario due to a moderate debt burden (excluding debt owed to the central bank). A Recovery Rating of RR3 has been assigned to these debt instruments. The senior unsecured short-term debt ratings are equalized with the applicable short-term IDR. Country Ceiling The Country Ceiling for Bolivia is 'B-', which is the floor for the Country Ceiling absent the materialization of transfer and convertibility risks. For sovereigns rated 'CCC+' or below, Fitch assumes a starting point of 'CCC+' for determining the Country Ceiling. Fitch's Country Ceiling Model produced a starting-point uplift of one notch. Fitch did not apply a qualitative adjustment to the model result. RATING ACTIONS Rating Prior ------ ----- Bolivia LT IDR CCC Upgrade CCC- ST IDR C Affirmed C LC LT IDR CCC Upgrade CCC- LC ST IDR C Affirmed C Country Ceiling B- Affirmed B- senior unsecured LT CCC+ Upgrade RR3 CCC- ============= G R E N A D A ============= GRENADA: Proven Resilience in the Aftermath of Hurricane, IMF Says ------------------------------------------------------------------ The Executive Board of the International Monetary Fund (IMF) concluded the Article IV Consultation with Grenada, and considered and endorsed the staff appraisal without a meeting. The IMF Report noted that Grenada's economy has proven resilient in the aftermath of Hurricane Beryl, despite elevated global uncertainties. Growth in 2025 is estimated to have accelerated to 4.4 percent, driven by strong investment and construction activity. Inflation has continued to moderate, reflecting easing global food and fuel prices. The fiscal position remains comfortable notwithstanding a temporary suspension of fiscal rules and an estimated 2025 primary deficit of 3.2 percent of GDP. Effectiveness of Grenada’s post-disaster financing framework and prudent savings of recent citizenship-by-investment (CBI) revenues have provided space for continued investment in key development priorities. The financial sector remains stable, with a modest post-hurricane impact. Over the medium term, GDP growth is projected to gradually moderate to a more modest estimated potential rate of 2.7 percent by 2029 even as large public investment projects sustain high construction activity. Anticipated return to the 1.5 percent of GDP central government primary balance floor from 2027 would support keeping public debt on a sustainable trajectory, with the 60 percent of GDP target projected to be achieved by 2033. Key downside risks stem from Grenada's high susceptibility to shocks associated with its tourism and import dependency as well as vulnerability to natural disasters. Faster-than-projected tourism resort developments represent the main upside risk. Executive Board Assessment In concluding the 2025 Article IV consultation with Grenada, Executive Directors endorsed staff's appraisal, as follows: Grenada's economy continues to navigate elevated global uncertainties effectively in the aftermath of Hurricane Beryl. Economic activity remains robust, with strong investment and construction more than offsetting a moderation in tourism inflows. Major public infrastructure projects will sustain buoyant construction over the medium-term, extending the gradual moderation in overall growth toward its long-term potential. Current low inflation is expected to gradually normalize by 2028. Grenada’s external position in 2024 is assessed as weaker than the level implied by medium-term fundamentals and desirable policies and the large current account deficit will remain elevated over the medium-term until construction import pressures subside. Notwithstanding near-term fiscal deficits amid reconstruction and other priority spending, the underlying fiscal position remains sound. Downside risks to the outlook persist amid heightened global economic and geopolitical uncertainties. These stem from Grenada’s high vulnerability to natural disasters and reliance on tourism and imports, even as moderate shocks to key tourism source countries or global commodity and shipping prices are assessed to have only modest impact. Risks could be amplified by disruptions to CBI and FDI inflows, materialization of risks in the domestic non-bank financial system or delays, or cost overruns in large investment projects. Faster-than-expected expansion in tourism capacity represents a key upside risk. A robust disaster resilience framework and government deposits provide important buffers against shocks. The temporary suspension of the primary balance rule provided fiscal space for post-disaster reconstruction without disrupting other priority spending. Returning to the fiscal rules in 2027 is important to safeguard fiscal discipline and keep debt on a sustainable path. Continued expenditure prudence alongside revenue-enhancing measures would help preserve budget space for development priority investments. The perimeter of the primary balance rule could be better aligned with the general government debt anchor. Capturing government off-budget and public on-lending-financed investments would help ensure the rule effectively restrains debt-creating spending. In the interim, such investments should be included in central government budget planning and adhere to equivalent reporting and auditing standards. Recent progress in strengthening SOE and statutory body oversight should continue with a view to eventually integrating these into the Medium-Term Fiscal Framework. While the ambitious public investment projects address important development needs, the associated fiscal risks require careful management. This includes continuing recent strengthening of project management to minimize delays or cost overruns, and a careful assessment of future operating and maintenance costs to avoid unfunded liabilities. Plans to catalyze private investment, including around Project Polaris, underscore the need to operationalize the PPP framework. Strengthening management of CBI resources, continuing improvements to MTFF projections and clearing the backlog of audited government statements remain also important. Accelerating system-wide credit growth and non-bank vulnerabilities call for careful monitoring. Higher bank lending reflects a still-nascent reversal from long-subdued credit conditions, supported by ample liquidity and relatively strong asset quality in the region. While credit unions show some encouraging asset quality improvements, ensuring loan loss provisions are sufficient and stepping up forbearance monitoring remain critical to safeguard against risks. Enhancing monitoring of reinsurance conditions and local market pricing in the general insurance sector remains important. The authorities are encouraged to maintain recent momentum in strengthening the AML/CFT framework. The limited potential growth impact from Grenada’s FDI-driven tourism expansion highlights the need to strengthen the domestic foundations of growth. This includes more closely coordinated efforts to facilitate local investment and business development, enhancing locally offered tourism services and intersectoral linkages, reducing goods trade frictions, and strengthening the economy’s human capital and productivity underpinnings. Infrastructure project decisions should continue to pay close attention to disaster resilience in alignment with the updated National Adaptation plan. Improving quality of economic data and institutional capacity is critical to support informed policymaking. Data deficiencies contribute to uncertainty in policy analysis and economic forecasts. These include common gaps in the region in balance of payments coverage, monitoring of large investment projects, outdated CPI weights, and missing GDP expenditure data. Capacity constraints from persistent staffing shortages and turnover warrant prioritized attention in alignment with the ongoing public sector functional review and staff regularization process. ================= G U A T E M A L A ================= BANCO INDUSTRIAL: Fitch Rates USD750MM Sub. Notes Due 2036 'BB-' ---------------------------------------------------------------- Fitch Ratings has assigned a final 'BB-' rating to Banco Industrial, S.A.'s (Industrial) subordinated notes for USD750 million at 6.55% due in April 2036. The rating is two notches below the bank's Viability Rating (VR) and aligns with Fitch's baseline notching for Tier 2 subordinated notes. The notes will be issued through Banco Industrial, S.A.'s Industrial Subordinated Trust 2.0. Proceeds from the issuance will be used to support credit operations for small and medium-sized enterprises (SMEs) and women-owned SMEs. The final rating follows a review of final terms and conditions according to information Fitch received when it assigned Industrial an expected rating on Jan. 5, 2026. Key Rating Drivers Notching from Industrial's VR: The new notes issuance rating is two notches below Industrial's anchor rating, its VR of 'bb+', reflecting the notes' dependence on Industrial's creditworthiness. The two-notch difference reflects higher loss severity for the notes relative to the bank's senior debt due to their subordinated status, and Fitch's view of a heightened likelihood of poor recoveries in a default scenario. Fitch does not apply any notching for non-performance risk because the notes do not have additional going-concern loss-absorption (e.g. interest deferral) features. Poor Recoveries in Liquidation Scenario: The notes will be unsecured and subordinated obligations. In the event of bankruptcy or liquidation, they will rank junior in right of payment to all of Industrial's existing and future senior obligations; pari passu in right of payment to the bank's existing and future parity obligations; and senior to all the bank's existing and future junior obligations. Consistent Performance: Industrial's VR reflects its solid business and funding profiles, underpinned by its robust competitive position as the leading bank in Guatemala. The bank's market shares in assets, loans and deposits were 29.0%, 28.9% and 26.6%, respectively, as of September 2025. Industrial has a consistent business model with a recognized franchise in Central America as part of a regional group. The bank has broad access to diverse financing sources. Industrial has demonstrated consistent financial performance characterized by good asset quality and relatively stable profitability. Fitch expects this trend to continue over the rating horizon. Internal capital generation has supported the bank's capital levels, although they have been tight. Fitch's capitalization assessment incorporates Industrial's track record of access to capital in global markets through AT1 and T2 instruments, which provide an additional loss-absorption cushion. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade -- The subordinated debt rating would reflect any negative action on the bank's VR and would likely maintain the downward notching from the VR. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade -- The subordinated debt rating would reflect any positive action on the bank's VR and would likely maintain the downward notching from the VR. Summary of Financial Adjustments Fitch's core capital calculation excluded prepaid expenses and other deferred assets from shareholders' equity. ============= J A M A I C A ============= JAMAICA: BOJ to Inject US$20 Million Into Forex Market ------------------------------------------------------ RJR News reports that the Bank of Jamaica said it would intervene in the foreign exchange market with US$20 million on January 22, 2026, despite the recent appreciation of the Jamaican dollar. The central bank said the funds must be sold to end users or members of the productive sector to pay for raw materials, intermediate goods and capital equipment, according to RJR News. It also warned that authorised dealers and cambios must not sell the funds for more than 20 Jamaican cents above the price at which they were purchased, the report notes. The minimum amount that can be bought under the intervention is US$100,000, the report relays. 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: Government Projecting Sharp Economic Decline ----------------------------------------------------- RJR News reports that the Government of Jamaica is projecting a sharp slowdown in the economy arising from the impact of Hurricane Melissa. In a memorandum sent to the Board of the International Monetary Fund, the government forecasts a 4.3 per cent decline in economic activity and inflation of 9.5 per cent for fiscal year 2025 to 2026, according to RJR News. The document was submitted to secure approval for a US$415 million drawdown from the IMF's Rapid Financing Instrument to help meet urgent balance of payments needs after the storm devastated foreign exchange earnings and the savings sector, the report notes. The projections also show tax revenues at 30 per cent of GDP, government spending at 33.8 per cent of GDP, and a fiscal deficit of 3.4 per cent of GDP, the report relays. The government expects a primary surplus of 1.7 per cent, while the debt-to-GDP ratio is projected at 68.6 per cent, the report discloses. RJR News says that the current account deficit is programmed at two per cent of GDP, while gross international reserves are expected to cover 6.7 months of imports. External debt is projected to stand at 63 per cent of GDP, 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: To Borrow $5BB via 20-Year Bond to Finance Budget ---------------------------------------------------------- RJR News reports that the Jamaican Government said it will be seeking to borrow $5 billion through a 20-year bond at an interest rate of 11.75 per cent per annum to help finance this year's budget. The minimum investment is $1,000, and the first interest payment is due on February 11, 2026, followed by semi-annual payments every on August 11 and February 11, according to RJR News. The bond will carry a fixed interest rate of 11.25 per cent per annum, less the 25 per cent withholding tax, the report notes. The issue forms part of the $158.4 billion the government had originally programmed to raise to fund the current budget, before the devastation caused by Hurricane Melissa on October 28, 2025, the report adds. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a positive rating outlook. In October 2023, Moody's upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to B1 from B2, and senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has been changed to positive from stable. In September 2024, S&P affirmed 'BB-/B' longterm foreign and local currency sovereign credit ratings on Jamaica and revised outlook to positive. =========== M E X I C O =========== HILTON GRAND: Moody's Lowers CFR to 'B1', Outlook Stable -------------------------------------------------------- Moody's Ratings downgraded the ratings of Hilton Grand Vacations Borrower LLC (HGV), including its Corporate Family Rating to B1 from Ba3, Probability of Default Rating to B1-PD from Ba3-PD, senior secured notes and credit facilities to Ba3 from Ba2 and senior unsecured rating to B3 from B2. The Speculative Grade Liquidity Rating (SGL) remains unchanged at SGL-2. The outlook is stable. The downgrade reflects weaker earnings for Hilton Grand Vacations compared to Moody's expectations at this stage since the leveraging acquisition of Bluegreen Vacations Holding Corporation (BVH). Growth in real estate sales and financing and rental revenues segments post-acquisition has been modest and total membership has been flat. Integrating and leveraging the upsized HGV system post-acquisition has occurred slower than Moody's expected, resulting in lower revenue and earnings. Adjusted debt-to-EBITDA for 12 months ended September 30, 2025 was approximately 6.6x including asset backed securities (ABS) debt. By comparison, leverage at December 31, 2024 was 5.6x. EBITDA to interest was 2.0x for 12 months ended September 30, 2025 compared to 2.4x at December 31, 2024. As a reference point, HGV's adjusted debt-to-EBITDA in 2022 and 2023 (post-pandemic and pre-BVH acquisition) was below 5.0x and interest coverage was notably stronger than it is currently. RATINGS RATIONALE Lower earnings in the last 12 months has increased adjusted debt-to-EBITDA to approximately 6.6x which is more than a full turn of leverage higher than a year earlier and has likely set HGV back in terms of reducing leverage to historical levels. During the last 12 months, earnings have declined approximately 12% treating VOI financing expense as interest expense while total adjusted debt including ABS debt has increased 9% largely in support of share repurchases. While Moody's expects earnings growth going forward supported by the improved scale from the BVH acquisition, the path to deleverage back towards HGV's more historical levels of 5x and lower has likely been extended significantly and higher debt levels will present a longer term headwind on the company. Moody's notes that HGV's prior acquisition for Diamond Resorts in 2021 had a more efficient deleveraging compared to BVH. Subsequent to the Diamond Resorts acquisition, HGV was able to reduce adjusted debt-to-EBITDA to 4x from about 5.5x within two years of the acquisition close. Of note, the time period around the Diamond Resorts acquisition also coincided with stronger demand and lower interest rates which was likely supportive for deleveraging at that time. HGV's B1 CFR benefits from its well-recognized brand name and relationship with Hilton Worldwide Holdings Inc. which allows HGV's members to use their timeshare points to stay at hotel rooms within the Hilton Worldwide system. HGV has improved diversification both by geography and product offering while expanding scale and its presence in drive-to markets with recent acquisitions. Integration and rebranding efforts remain ongoing with HGV's latest significant acquisition of BVH and related spending will continue in 2026. The stable outlook reflects Moody's expectations that Hilton Grand Vacations will be able to maintain performance, albeit with higher leverage and lower interest coverage as compared to historical norms. ESG considerations have a limited impact on Hilton Grand Vacations credit rating with potential for greater negative impact over time. Moody's views the company's most material ESG risks as being moderate exposures to financial strategy and risk management, customer relations and board structure and policies. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be downgraded if adjusted debt/EBITDA (inclusive of securitized debt) is sustained above 6.5x. A downgrade could also occur if EBITDA/interest expense, including financing expense as interest expense, is sustained close to or below 2.0x or liquidity weakens. Ratings could be upgraded if adjusted debt/EBITDA is reduced towards 5.25x, EBITDA/interest expense approaches 3.0x and good liquidity is maintained. Headquartered in Orlando, Florida, Hilton Grand Vacations Borrower LLC is a wholly owned subsidiary of Hilton Grand Vacations, Inc., a public company listed on NYSE. Hilton Grand Vacations, Inc. is a global timeshare company engaged in developing, marketing, selling and managing timeshare resorts under the Hilton Grand Vacations brand name. It also finances and services loans provided to consumers for their timeshare purchases. The standalone company manages over 200 resorts located in the US, Europe, Mexico, the Caribbean, Canada and Japan. Net revenue for the 12 months ended September 30, 2025 was about $4.5 billion. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. 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. =========== P A N A M A =========== BAC INTERNATIONAL: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable ------------------------------------------------------------------- Fitch Ratings has affirmed BAC International Bank, Inc.'s (BIB) Long-Term Issuer Default Rating (IDR) at 'BB+' and Viability Rating (VR) at 'bb+' and removed the Rating Watch Evolving (RWE). Fitch has also removed the RWE on BIB's Long-Term National Rating and Long-Term debt ratings and affirmed them. The Rating Outlook on Long-Term IDR and National Rating is Stable. Fitch has also affirmed BIB's Short-Term IDR at 'B' and Short-Term National Rating and Short-Term debt rating at 'F1+(pan)' and removed them from Rating Watch Positive and Rating Watch Negative, respectively. The rating actions reflect Fitch's view regarding the potential effect on BIB's credit profile, given the share purchase agreement between its holding BAC International Corporation (BIC) and Multi Financial Group, Inc. (MFG). Fitch believes BIB's sound business and risk profiles would help it to manage, to some extent, transaction risks and maintain financial performance consistent with its current ratings. Fitch expects this to continue in the foreseeable future, supporting the Stable Outlook. Key Rating Drivers Ratings Underpinned by Creditworthiness: BIB's IDRs and National Ratings are driven by its 'bb+' VR, which reflects its consolidated business profile, sound risk framework, and the good performance of its six banking operations in Central America. On Oct. 28, 2025, BAC Holding International Corp. (BHI) announced the potential acquisition of MFG, including Multibank, Inc.'s (Multibank), and subsequent merger, which was approved at a shareholders' meeting on Nov. 25, 2025, and is pending regulatory approvals. With this acquisition, BIB will reinforce its position as the largest regional financial group in Central America, gaining greater market share in Panama, as well as efficiencies that could benefit its financial profile. Multijurisdictional Operating Environment (OE): The incorporation of Multibank would increase asset contribution from Panama compared to other countries where BIB has a presence. Panama's higher participation would improve BIB's blended OE by adding an OE with a 'bb+' score. Fitch assesses BIB's blended OE based on the weighted average of its gross earning assets in each country where it operates. Fitch deems that geographic diversification enhances BIB's credit profile resilience to adverse events in each jurisdiction, mitigating OE downside risks. Robust Business and Funding Profiles: BIB has a strong and recognized regional franchise, well-developed business model, ample deposit base — to which new Multibank clients would be added — and access to various financing sources, which have driven consistent financial performance. BIB total operating income has grown. It reached USD2.6 billion as of September 2025, in line with the last four-year average. Fitch expects this trend to continue. In addition, its broad financing alternatives, such as issuances in local capital markets, wholesale credit lines, and securitizations, enhance liquidity and allow BIB to navigate challenging conditions. Loan Quality: BIB's stage-3 loans to gross loans metric has continued to improve, recording 2.3% in 3Q25 compared to 2.5% in 2024. The incorporation of Multibank's portfolio, which shows greater deterioration, could pressure the ratios in the rating horizon. Nevertheless, Fitch expects BIB's effective risk controls, strict and prudent underwriting standards, and collection policies, will result in metrics that, although remaining above BIB's current levels, will approach toward these percentages in the near future, staying commensurate with the 'bb+' asset quality factor score. Manageable Effects on Profitability: BIB's profitability has evolved positively, thanks to higher income, a well-managed net interest margin, operational efficiencies, and controlled loan impairment charges. The operating profit to risk-weighted assets (RWA) metric was 3.1% as of September 2025 compared to 2.9% in 2024. The purchase of Multibank, an entity that exhibits low profitability, is expected to have a manageable impact on the combined entity's metrics, given its relative size and potential efficiencies, keeping the factor consistent with its 'bb' score. Temporarily Affected Capital Levels: BIB's capitalization metrics have been supported by consistent internal capital generation and moderate credit growth, which have offset dividend payments. Fitch expects the acquisition to lead to a decline in capital indicators but estimates this will be a temporary effect during the acquisition and merger process. Fitch expects capital metrics to gradually return to levels similar to current ones, in line with a 'bb' capitalization and leverage factor score over the rating horizon. In 3Q25, BIB's common equity Tier 1 (CET1) to RWA ratio improved to 11.3% from 10.5% in 2024. BIB's capital assessment also weighs non-core loss absorption capacity instruments, which provides additional capital cushion, and a conservative RWA calculation. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade -- BIB's IDR, VR and National Ratings could come under pressure if the transaction conditions weaken its capital levels, leading CET1 metric to remain consistently below 10% after the transaction is completed; -- A weaker assessment of BIB's blended OE by Fitch, due to a material deterioration in the OE of Central America's largest markets, could put pressure on BIB's IDR, VR and National Ratings; -- BIB's IDR, VR and National Ratings could also be pressured if a significant deterioration in loan quality and persistent strain on profitability, together with transaction and merger execution risk, result in an operating profit to RWA ratio that remains below 1.5% consistently; -- BIB's Short-Term IDR would only be downgraded if its Long-Term IDR was downgraded to 'CCC+' or below. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade -- BIB's IDRs, VR and Long-Term National Rating could be upgraded if the transaction strengthens bank's consolidated business profile and materially improves its overall financial performance, coupled with a relevant improvement in the OE score; -- BIB's Short-Term National Rating has no upside potential because it is at the highest level of the rating scale. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS Senior Debt: The senior unsecured debt programs' National Ratings are aligned with BIB's National Ratings because Fitch considers the likelihood of default to be the same, given the absence of specific guarantees. Junior Debt: The subordinated bond National Rating is four notches below the anchor rating, BIB's Long-Term National Rating, comprising a two-notch deduction for loss severity due to deep subordination, and two additional notches for incremental nonperformance risk, given their ability to omit noncumulative coupons. OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade --BIB's National debt Ratings would be downgraded if BIB's national ratings are downgraded. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade --BIB's LT National debt Ratings would be upgraded if BIB's LT National Rating is upgraded. --The senior unsecured bonds' ST national rating is at the top of the scale and therefore has no upside potential. VR ADJUSTMENTS The Operating Environment Score has been assigned at 'bb', below the implied score of 'bbb' category due to the following adjustment reason: Geographical Scope (negative). The Business Profile Score has been assigned at 'bbb-', above the implied score of 'bb' category due to the following adjustment reason: Business Model (positive). RATING ACTIONS Entity / Debt Rating Prior ------------- ------ ----- BAC International Bank, Inc. LT IDR BB+ Affirmed BB+ ST IDR B Affirmed B Natl LT AA+(pan) Affirmed AA+(pan) Natl ST F1+(pan) Affirmed F1+(pan) Viability bb+ Affirmed bb+ senior unsecured Natl LT AA+(pan) Affirmed AA+(pan) junior subordinated Natl LT A(pan) Affirmed A(pan) senior unsecured Natl ST F1+(pan) Affirmed F1+(pan) ===================== P U E R T O R I C O ===================== ECGPR LLC: Unsecureds Owed $200,00 to Get 16% in 60 Months ---------------------------------------------------------- ECGPR, LLC filed with the U.S. Bankruptcy Court for the District of Puerto Rico a Disclosure Statement describing Plan of Reorganization dated January 13, 2026. The Debtor is a limited liability company duly organized in the Commonwealth of Puerto Rico since 2019. Since its creation, is has been authorized and is doing business in the Commonwealth of Puerto Rico. The main business/income of DIP derives from the selling of bulletproof vests to the State and Municipal Police Force, and also, the rental of a real property located at Salinas, Puerto Rico, which was bought by DIP on 2022 in the amount of $900,000.00, of which DIP financed $700,000.00 by a loan given by the former owners of the property. After the purchase in 2022 of the property located at Salinas, Puerto Rico, the property suffered severe damage due to the passing of Hurricane Fiona in September 2022 through Puerto Rico. Such incident, plus other facts, resulted in DIP becoming in default with the remaining balance of the loan and which led to the filing of a Collection Suit in the States Courts of Puerto Rico. During the pendency of such civil suit, the State Courts entered an order limiting the rights of DIP as to the property in Salinas and that made DIP worry about the property of the estate. As a result of such and knowing that DIP can make a payment plan in order to reorganize its finances, DIP filed the present bankruptcy petition. The Debtor was forced to file a petition for bankruptcy under the provisions of Chapter 11 of the Bankruptcy Code in order to save its assets and reorganize its finances and pay all general unsecured creditors as much as possible in a reorganized manner. Class 4 consists of General Unsecured Creditors with claims of $200,000.00 or more: * Class 4.1 is composed of claim #4, filed by Nereida Maymi Osorio, in the amount of $312,500.00. This class will be paid 16% of their claim, which equals to $50,000.00. Such amount of $50,000.00 will be paid by monthly payments of $840.00 for 59 months and a last payment of $440.00. The first payment will start 60 days from the time the final order confirming the plan becomes final and unappealable. * Class 4.2 is composed of claim #3, filed by José López Avilés, in the amount of $312,500.00. This class will be paid 16% of their claim, which equals to $50,000.00. Such amount of $50,000.00 will be paid by monthly payments of $840.00 for 59 months and a last payment of $440.00. The first payment will start 60 days from the time the final order confirming the plan becomes final and unappealable. Class 5 consists of General Unsecured Creditors with claims of $50,000.00 up to $199,999,99: * Class 5.1 is composed of claim by Ricardo Alejandro Cruz, in the amount of $100,000.00. This class will be paid 16% of their claim, which equals to $16,000.00. Such amount of $16,000.00 will be paid by monthly payments of $450.00 for 35 months and a last payment of $250.00. The first payment will start 60 days from the time the final order confirming the plan becomes final and unappealable. * Class 5.2 is composed of claim by the Estate of Anibal Rosado Colon, in the amount of $100,000.00. This class will be paid 16% of their claim, which equals to $16,000.00. Such amount of $16,000.00 will be paid by monthly payments of $450.00 for 35 months and a last payment of $250.00. The first payment will start 60 days from the time the final order confirming the plan becomes final and unappealable. Class 6 consists of General Unsecured Creditors with claims of $00.01 up to $49,999,99: * Class 6.1 is composed of claim #1 filed by the Treasury Department for the Commonwealth of Puerto Rico, in the amount of $25.00. This class is being considered to be objected since DIP understands that he does not owe any amounts to Treasury and an informal request to withdraw and/or amend the claim will be made to the officer of the Treasury. In any event, the amount claimed is so minimal that do not affect negatively the confirmation of the plan. In the event, the claim remains, it will be paid 16% of their claim, which equals to $4.00. Such amount will be paid within the first 12 months of the plan in one lump sum payment. Class 6.2 is composed of claim #2 by BANCO Popular, Special Loans, in the amount of $22,479.01. This class will be paid 16% of their claim, which equals to $3,596.64. Such amount of $3,596.64 will be paid within the first 12 months of the plan in one lump sum payment. Class 7 is composed of Equity Interest in the Debtor which is the general unsecured nonpriority claim of 100% member, Mr. Edgardo Fernández Laborde, in the amount of $263,611.25. As stated at the 341 meeting, Mr. Laborde's claim is subordinated to all creditors' claims and is not expected to receive any distribution under this Plan. This Plan constitutes an operating reorganization and is not a liquidating plan within the meaning of section 1141(d)(3) of the Bankruptcy Code. The Debtor shall continue to operate its business and manage its assets following the Effective Date, and the Plan is intended to rehabilitate the Debtor through continued operations and structured payments to creditors. Upon confirmation of the plan, the Debtor shall have sufficient funds to make payments then due under this Plan. The funds will be obtained from the rental income and the sale of bulletproof vests. On the Confirmation Date of the Plan, all assets shall be and become the general responsibility of the reorganized debtor, ECGPR, LLC, who shall thereafter have the responsibility for the management and control and administration thereof. A full-text copy of the Disclosure Statement dated January 13, 2026 is available at https://urlcurt.com/u?l=JAbfWX from PacerMonitor.com at no charge. Counsel to the Debtor: Jacqueline E. Hernandez Santiago, Esq. LEGAL OFFICE OF JACQUELINE E. HERNANDEZ SANTIAGO, ESQ. 22 Mayaguez Street Hato Rey, PR 00918 Tel: (787) 766-0570 About ECGPR LLC ECGPR LLC holds fee simple ownership of a property at AA 62 Angel Maldonado Street in the Coco Margarita sector of Barrio Playa, Salinas, Puerto Rico, valued at about $117,000. ECGPR LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 25-04341) on September 27, 2025, listing $121,000 in assets and $1,122,000 in liabilities. The petition was signed by Edgardo Fernandez Laborde as president. Judge Enrique S Lamoutte Inclan presides over the case. Jacqueline Hernandez Santiago, Esq. at HERNANDEZ AND ASSOCIATES LAW FIRM represents the Debtor as counsel. ********* 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 2026. 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 * * *