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260217.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 Tuesday, February 17, 2026, Vol. 27, No. 34 Headlines B R A Z I L BRAZIL: Imports More Industry Than It Can Afford J A M A I C A JAMAICA: ITEL Opposed to BOJ Shoring Up Value of Jamaican Dollar JAMAICA: Seeks $12BB Through Reopening of Two Investment Notes MPC CARIBBEAN: Clean Energy Cuts Losses in December 2025 Quarter M E X I C O ROYAL HASS: Case Summary & 20 Largest Unsecured Creditors S U R I N A M E SURINAME: To Experience Significant Oil Boom, IMF Says V E N E Z U E L A CITGO HOLDING: Moody's Affirms 'Caa1' CFR, Outlook Remains Stable - - - - - =========== B R A Z I L =========== BRAZIL: Imports More Industry Than It Can Afford ------------------------------------------------ Iolanda Fonseca at Rio Times Online reports that Brazil closed 2025 with a paradox that tells more about its economy than any single GDP figure could. The country's overall trade balance posted a healthy $68.3 billion surplus, powered by record shipments of soybeans, iron ore, beef, and crude oil, according to Rio Times Online. But hidden beneath that headline number lies a different story: the manufacturing sector ran a $71.1 billion deficit, the deepest since records began in 1997, the report relays. The data, compiled by IEDI, the Institute for Industrial Development Studies, reveals that industrial imports grew at more than double the rate of exports - 8.6% versus 3.8%, the report notes. Even excluding $5.3 billion in extraordinary oil platform purchases that distorted the figures, the deficit still surpasses the previous worst marks of 2013 and 2014. This is not a blip, the report discloses. It is the continuation of a structural shift that began in 2010, when Brazil's manufacturing sector flipped from surplus to permanent deficit, the report says. Planes Brazil Can't Sell, Pills It Can't Make The damage is concentrated at the top of the technology ladder, Rio Times notes. High-tech industries posted a $50.6 billion deficit in 2025, up from $27.1 billion in 2019, the report relates. Two sectors account for the bulk of the deterioration: aerospace and pharmaceuticals, both reshaped by the pandemic and its aftermath in ways that left Brazil further behind, the report notes. Rio Times Online discloses that aerospace tells a particularly painful story. From 1999 to 2018, the sector contributed surplus after surplus to Brazil's trade balance, driven by Embraer's competitive position in regional jets, the report recalls. That run ended in 2019. By 2025, imports had reached $15.3 billion - up from $6.4 billion six years earlier - while exports recovered to only $5.5 billion, roughly where they were before the pandemic, the report notes. The result: a $9.9 billion deficit in a sector that once symbolized Brazilian industrial ambition, the report says. Decarbonization pressures, including mandates for sustainable aviation fuel starting in 2027, are adding both financial and technological burdens, the report relates. Pharmaceuticals show a similar pattern with a different catalyst, the report notes. The sector's deficit doubled to $15 billion from $7 billion in 2019, with imports reaching $16.4 billion, the report discloses. The pandemic accelerated a global innovation cycle in which China and India consolidated production of key active ingredients while Western companies poured billions into next-generation therapies, the report says. Brazil fell further behind. The explosive demand for GLP-1 weight-loss drugs - the injectable pens known colloquially as "canetinhas" - epitomizes the gap: Brazilians are among the world's most enthusiastic buyers, but the drugs are almost entirely imported, the report relays. Novo Nordisk has announced a $1.09 billion factory expansion in Minas Gerais, and Ozempic's patent expires in Brazil in March 2026, which should bring cheaper generics, the report says. For now, each pen sold deepens the deficit, the report notes. China Fills The Gap That High Interest Rates Created In the medium-high technology bracket, the picture is no better, the report relays. A deficit of $82.4 billion was driven by chemicals and machinery imports, the latter squeezed by Brazil's high interest rates that have discouraged domestic investment, the report notes. Chinese manufacturers have been steadily gaining market share in segments where Brazilian firms once held their own - a dynamic IEDI's chief economist, Rafael Cagnin, traces to the 2008 global crisis, when trade barriers in the US and Europe first redirected Chinese exports toward Latin America, the report discloses. Trump's tariffs are reinforcing that pattern rather than creating a new one, the report says. The only real source of manufacturing surplus remains the lowest-tech segment - processed foods, beverages, and tobacco - which generated $60 billion in positive trade, the report relates. But even that pillar showed cracks in 2025, with exports declining 1% and imports rising 1.7%. It was the only technology bracket where exports actually fell last year, the report says. Two Numbers, One Economy What emerges from these figures is a country getting richer from what it digs out of the ground and grows in its fields, but steadily losing the capacity to make the sophisticated goods its own economy demands, the report notes. The $68.3 billion overall surplus and the $71.1 billion manufacturing deficit are not contradictions - they are two sides of the same coin, describing an economy drifting toward a commodity dependency that no amount of soybeans can reverse, the report adds. About Brazil Brazil is the fifth largest country in the world and third largest in the Americas. Luiz Inacio Lula da Silva won the 2022 Brazilian general election. He was sworn in on January 1, 2023, as the 39th president of Brazil, succeeding Jair Bolsonaro. In October 2024, Moody's Ratings upgraded the Government of Brazil's long-term issuer and senior unsecured bond ratings to Ba1 from Ba2, the senior unsecured shelf rating to (P)Ba1 from (P)Ba2; and maintained the positive outlook. S&P Global Ratings raised on Dec. 19, 2023, its long-term global scale ratings on Brazil to 'BB' from 'BB-'. Fitch Ratings affirmed on Dec. 15, 2023, Brazil's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB' with a Stable Outlook. DBRS' credit rating for Brazil was last reported at BB with stable outlook at July 2023. ============= J A M A I C A ============= JAMAICA: ITEL Opposed to BOJ Shoring Up Value of Jamaican Dollar ---------------------------------------------------------------- RJR News reports that Yoni Epstein, Chairman of Itel, has claimed that what he characterises as the Bank of Jamaica's decision to allow the dollar to artificially appreciate against the dollar is having a negative impact on the earnings on the business and knowledge process outsourcing sector. Epstein contends that this is dangerous because 80 to 85 per cent of the sector's earnings remain in Jamaica, although it is dominated by international companies, according to RJR News. In support of this argument, Epstein highlighted the fact that 60-per cent of the sector's cost is related to salaries, while 20 to 5 per cent is attributable to rental and utility charges, the report relays. The veteran BPO and KPO industry executive noted that the growth of the industry is being slowed by the deterioration in the US economy, particularly in relation to the creation of new jobs and future economic growth, the report notes. He stressed, however, that approximately 50,000 workers are still employed in the industry, despite the negative impact, while adding that this is a demonstration of the resilience of industry, which, according to him, is here to stay, 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: Seeks $12BB Through Reopening of Two Investment Notes -------------------------------------------------------------- RJR News reports that the Jamaican Government said it plans to raise $12 billion through the reopening of two benchmark investment notes on February 17 to help finance the national budget. These are the 8.25% per annum note maturing in March 2040 and the 11.25% per annum note maturing in February 2046, according to RJR News. Interest will be paid at maturity after the deduction of the 25% withholding tax, the report notes. 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. MPC CARIBBEAN: Clean Energy Cuts Losses in December 2025 Quarter ---------------------------------------------------------------- RJR News reports that MPC Caribbean Clean Energy is reporting a narrower loss for the December 2025 quarter, despite mixed performance across its renewable energy portfolio. In unaudited financial results, the company said its projects generated just under 34 gigawatt-hours of electricity during the quarter, helping to avoid more than 12,000 tonnes of carbon emissions, according to RJR News. Operational performance varied by asset, the report relays. The San Isidro project delivered a strong quarter with high availability and efficient operations, the report notes. However, the Tilawind facility was affected by weaker wind conditions and technical issues, while Monte Plata faced grid limitations and repowering activities that reduced output, the report discloses. Financially, the company recorded a comprehensive loss before tax of US$348,000 for the quarter, the report says. That's a significant improvement compared with a loss of US$1.4 million in the same period last year, the report adds. For the full year, the company says its net investment loss narrowed sharply to US$221,000, compared with more than US$2.2 million in 2024. Management expects investment income to strengthen further as additional distributions are received from its regional energy assets. =========== M E X I C O =========== ROYAL HASS: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Royal Hass, LLC 5061 Kennedy Dr Forest Park, GA 30297 Business Description: Royal Hass, LLC is a Georgia-based wholesaler of fresh produce specializing in avocados sourced from Mexico and distributed from its headquarters in Forest Park, Georgia. The company also supplies other produce, including lemons, onions and tomatoes, to wholesale and retail customers from its Atlanta-area location. Chapter 11 Petition Date: February 10, 2026 Court: United States Bankruptcy Court Northern District of Georgia Case No.: 26-51801 Judge: Hon. Lisa Ritchey Craig Debtor's Counsel: Leslie Pineyro, Esq. JONES & WALDEN LLC 699 Piedmont Avenue NE Atlanta, GA 30308 Tel: 404-564-9300 E-mail: info@joneswalden.com Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by Antonio Moreno as CEO. A full-text copy of the petition, which includes a list of the Debtor's 20 largest unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/EDTA42I/Royal_Hass_LLC__ganbke-26-51801__0001.0.pdf?mcid=tGE4TAMA =============== S U R I N A M E =============== SURINAME: To Experience Significant Oil Boom, IMF Says ------------------------------------------------------ The International Monetary Fund (IMF) issued a press release noting that Suriname is about to experience a significant oil boom. IMF said the task ahead needs to be to prepare a robust institutional framework that will harness this new wealth, spend it effectively, and ensure the livelihoods of the population are materially improved by it. Building on important achievements of the completed Fund-supported program, this will require that resources are managed with high levels of governance and a significant portion are saved for the future (particularly given limited capacity to manage and absorb a rapid increase in public spending). A prudent fiscal-monetary mix is and will be essential for safeguarding macroeconomic stability, so it is of concern that these hard-won gains are being eroded. Especially in the first half of 2025, an overly loose fiscal policy and an insufficiently restrictive monetary policy have boosted inflation and depreciated the currency. Despite record gold prices, mining output has weakened and growth is now projected to end the year well below the forecasts that were made when the program concluded. ================= V E N E Z U E L A ================= CITGO HOLDING: Moody's Affirms 'Caa1' CFR, Outlook Remains Stable ----------------------------------------------------------------- Moody's Ratings affirmed CITGO Holding, Inc.'s ("CITGO Holding") Caa1 Corporate Family Rating and its Caa1-PD Probability of Default Rating. Simultaneously, Moody's affirmed CITGO Petroleum Corporation's ("CITGO Petroleum") ratings, including its B3 Corporate Family Rating, B3-PD Probability of Default Rating and its B3 Senior Secured Regular Bond/Debenture Rating. The outlook on all ratings remains stable. RATINGS RATIONALE CITGO Holding's Caa1 ratings reflect the solid credit profile of CITGO Petroleum, the group's operating company. The ratings remain constrained by the ownership link to Petroleos de Venezuela, S.A. (PDVSA). CITGO Holding continues to demonstrate the characteristics of a stable holding company, maintaining credit metrics that are strong for its rating category. At present, the company holds a debt-free balance sheet. CITGO Petroleum's B3 ratings reflect the company's solid credit metrics for its rating category, the US-based location of its refining and logistics assets, and the lender protections embedded in the company's indentures. These provisionsâ€”including limitations on incremental leverage, dividend restrictions, change-of-control clauses, and requirements on the use of asset-sale proceeds help mitigate risks associated with PDVSA's ultimate ownership. The company's large-scale and complex refining system provides the flexibility to process heavy, light sweet, and sour crude slates while also enabling the production of various petrochemical products. CITGO has leveraged these operational advantages to generate strong cash flow and maintain low leverage relative to peers within its rating category. Moody's expects CITGO to continue posting positive EBITDA in 2026 and 2027 equivalent to $1.3 billion, on average, supported by stabilizing refining margins underpinned by balanced supply demand conditions and relatively low inventories. Although crack spreads remain volatile and global capacity continues to rise amid selective US and European shutdowns, CITGO's scale, conversion flexibility, and advantaged US energy cost structure position the company to sustain positive cash flow going forward. Moody's estimates leverage will be around 1.1x (debt to EBITDA) at the end of 2026, compared to the 2.6x registered as of September 2025, as the company paid with available cash the $650 million senior secured notes during the last quarter. Both CITGO Holding and CITGO Petroleum maintain good liquidity positions. Moody's estimates that CITGO ended 2025 with approximately $2 billion in cash and access to a $500 million committed facility. The stable outlooks of the ratings reflect both companies' adequate credit metrics for the rating categories and Moody's expectations that its financial situation and credit risk will not change significantly in the next 12 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Both CITGO Holding's and CITGO Petroleum's ratings could be upgraded if the risks associated with PDVSA's ownership decrease, particularly those stemming from legal proceedings that could lead to a change of control or asset sales. Conversely, the ratings could face downward pressure if (1) the companies lose access to capital markets for refinancing, (2) refining margins weaken due to limited access to an optimal crude slate or operating underperformance, or (3) PDVSA exerts negative influence over management decisions in ways that heighten credit risk. COMPANY PROFILE CITGO Petroleum Corporation (CITGO Petroleum), based in Delaware, US, is an independent refining company with a capacity of 829,000 barrels per day (bpd) across three large refineries that have good logistical and market positions in the US, specifically in the East Coast, Midwest and Gulf Coast markets. The company is a wholesale refiner that sells a large portion of its refined products under the CITGO brand through around 4,000 independently owned and operated service stations. CITGO Petroleum is a wholly owned subsidiary of PDVSA, the state oil company of Venezuela (Government of Venezuela, C stable). As of September 2025, the company reported assets and Moody's-adjusted EBITDA of $12.9 billion and $825.6 million (last twelve months), respectively. LIST OF AFFECTED RATINGS Issuer: CITGO Holding, Inc. Affirmations: Probability of Default Rating, Affirmed Caa1-PD LT Corporate Family Rating, Affirmed Caa1 Outlook Actions: Outlook, Remains Stable Issuer: CITGO Petroleum Corporation Affirmations: Probability of Default Rating, Affirmed B3-PD LT Corporate Family Rating, Affirmed B3 Senior Secured, Affirmed B3 Outlook Actions: Outlook, Remains Stable Issuer: Gulf Coast Industrial Development Authority Affirmations: Backed Senior Unsecured Revenue Bonds, Affirmed B3 Issuer: Illinois Development Finance Authority Backed Senior Unsecured Revenue Bonds, Affirmed B3 The principal methodology used in these ratings was Refining and Marketing published in February 2026. CITGO's ratings differential compared to the scorecard outcome incorporates the negative effect of PDVSA's ownership, the state oil company of Venezuela. ********* 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. 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