260224.mbx

260224.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 24, 2026, Vol. 27, No. 39 Headlines A R G E N T I N A ARGENTINA: Nearly 22K Firms Lost Under Milei Since December 2023 ARGENTINA: Striking Workers Slow Down Buenos Aires With Protest B R A Z I L AMBIPAR EMERGENCY: Seeks to Extend Plan Exclusivity to May 4 BRAZIL: IDB OKs $99.2MM to Bolster Early-Childhood Education CIRION TECHNOLOGIES: S&P Downgrades ICR to 'B-', Outlook Negative J A M A I C A JAMAICA: BOJ Urged to Cut Interest Rate to Stimulate Growth JAMAICA: Collects Non-Tax Revenues of $181.4 Billion For 2024-2025 P A R A G U A Y AGENCIA FINANCIERA DE DESARROLLO: S&P Affirms 'BB+' LongTerm ICR - - - - - ================= A R G E N T I N A ================= ARGENTINA: Nearly 22K Firms Lost Under Milei Since December 2023 ---------------------------------------------------------------- Buenos Aires Times, citing official data, reports that Argentina has lost nearly 22,000 companies during the first two years of President Javier Milei's administration. Figures from the occupational Superintendencia de Riesgos del Trabajo risk system show that the number of registered employers in Argentina fell from 512,357 in November 2023 to 490,419 in November 2025 – a net decline of 21,938 companies over 24 months, according to Buenos Aires Times. Over the same period, the number of registered workers dropped from 9,857,173 to 9,566,571 – a decrease of 290,602 jobs, the report notes. The contraction continued through 2025, the report recalls. In November alone, there was a net loss of 892 companies, the report says. Across the first 11 months of the year, the system recorded a cumulative net decline of 9,722 employers, the report notes. The steepest fall occurred during the first half of 2024, following the sharp peso devaluation and the President’s sweeping public spending cuts – dubbed the "chainsaw" plan – which hit construction particularly hard, the report discloses. From the end of 2023 to mid-2024, the number of registered firms fell steadily before the pace of decline began to ease, the report says. By December 2024, the total had reached 499,682 companies, the report relays. Construction was among the sectors most affected, reflecting the freeze in public works and the broader slowdown in activity triggered by the government’s fiscal adjustment program, the report notes. The Superintendency's latest working report also points to high business mortality among newer firms, the report says. Between the third quarter of 2024 and the second quarter of 2025, 34 percent of all company closures involved businesses less than three years old, suggesting that a significant share of new market entrants are unable to survive beyond a short life cycle, the report discloses. The data underscores the scale of the economic adjustment underway, as the government prioritises fiscal balance while private sector activity remains under strain, the report adds. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Javier Milei is the current president of Argentina after winning the November 19, 2023 general election. He succeeded Alberto Angel Fernandez in the position. Argentina has the third largest economy in Latin America. The country's economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. In March 2022, the International Monetary Fund (IMF) approved a 30-month arrangement under an Extended Fund Facility for Argentina in the amount of SDR 31.914 billion (equivalent to US$44 billion, or 1000 percent of quota) -- with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. Moody's Ratings on July 17, 2025, upgraded Argentina's long-term foreign currency and local currency issuer ratings to Caa1 from Caa3 and changed the outlook to stable from positive. The upgrade reflects Moody's views that the extensive liberalization of exchange and (to a lesser extent) capital controls, alongside a new International Monetary Fund (IMF) program, support the availability of hard currency liquidity and ease pressure on external finances. This reduces the likelihood of a credit event. In January 2025, Moody's raised Argentina's local currency ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1 from Caa3. Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. S&P Global Ratings, in February 2025 lowered its local currency sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and its national scale rating to 'SD' from 'raB+'. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. ARGENTINA: Striking Workers Slow Down Buenos Aires With Protest --------------------------------------------------------------- Buenos Aires Times reports that hops and supermarkets closed, public transport was scarce and garbage went uncollected as workers in Argentina staged their fourth general strike of President Javier Milei's term, this time against his controversial labour reform push. The few buses running in Buenos Aires were nowhere near full, although car traffic was unusually heavy as many workers observed the 24-hour strike, according to Buenos Aires Times. Bus and train stations that are normally bustling were largely empty, the report notes. On roads leading into the capital, small groups of protesters blocked traffic. Banks and financial institutions were shuttered, the report relates. Many shops, however, were open, though with fewer customers than usual, the report notes. State carrier Aerolineas Argentinas had to reschedule more than 250 flights, affecting some 31,000 passengers, the report discloses. Buenos Aires' Aeroparque Jorge Newbery Airport was almost deserted, with planes idle on the runway, the report says. The CGT (Confederación General del Trabajo) umbrella labour federation said more workers adhered to the walkout call than for any of the previous three strikes, the report relays. "It has levels of compliance like never before under this government," union leader Jorge Sola, one of the CGT's top leaders, told Radio con Vos, the report notes. "The support is impressive," he added. Sola estimated that compliance with the strike from union members "was over 90 percent," the report relays. "We have been consistent and responsible in maintaining social peace," he added. The report discloses that Cabinet Chief Manuel Adorni slammed the union leaders, describing the strike as "extortionate" and "perverse." "There is a reason why people hate them," said Adorni, accusing the labour leaders of attempting to "harm Argentina," the report relates. "There is nothing more extortionate and contrary to freedom than what the trade unionists are doing," he added. The contested reforms pushed by Milei's government would make it easier to hire and fire workers in a country where job security is already hard to come by, the report says. It would also reduce severance pay, limit the right to strike, increase work hours and change holiday provisions, the report discloses. Unions describe the changes as "regressive and unconstitutional." One local consultancy firm, Zentrix, published a snap poll showing that seven in ten respondents supported the strike, with 27 percent against, the report relates. The measure was approved by the Senate last week and comes before the lower house Chamber of Deputies, the report says. If approved, it will go back to the upper chamber for a final green light, the report notes. "I want to work because I am afraid of losing my job but I cannot get there. I will have to walk," said Nora Benítez, a 46-year-old home caregiver as she set off on a five-kilometre (three mile) trek to her job along streets reeking of piled up garbage, the report notes. "This reform worsens the employment situation," said Amilcar La Cueva, a 55-year-old metalworker, as she demonstrated near Congress, the report relays. Milei's labour modernisation push comes with Argentina's economy showing signs of a downturn in manufacturing, with more than 21,000 companies having shuttered in two years under Milei, the report says. The La Libertad Avanza leader came to power after wielding a chainsaw at rallies during the 2023 election campaign to symbolise the deep cuts he planned to make to public spending, the report notes. Unions say some 300,000 jobs have been lost since Milei's austerity measures began, the report discloses. Fate - Argentina's largest domestic tyre manufacturer – announced the closure of its plant in Buenos Aires, prompting some 900 job cuts, the report says. The last general strike in Argentina was on April 10, 2025, but adherence was uneven as workers in the public transport system did not join, the report notes. Thousands of people demonstrated in the capital as senators debated the reform bill, the report says. Clashes between police and protesters resulted in about 30 arrests, the report relays. The CGT did not call a large rally , though some unions said they would turn out to protest regardless, the report adds. Representatives from the Partido Obrero political party, as well as MST and CTA unions, among others, descended on Congress, the report discloses. Initial reports from the march say that authorities arrested four minors, one of whom had a warrant out for their arrest, the report relays. At several intersections leading to the capital, small groups of protesters disrupted traffic in protest against the reform, the report says. The government issued an unusual statement warning reporters about the "risk" of covering protests, and announced it would establish an "exclusive zone" from which the media can work, the report notes. "In the event of acts of violence, our forces will act," a statement from the Security Ministry said, the report relates. Almost 40 percent of workers in Argentina lack formal employment contracts, the report says. Unions say the new measures will make matters worse, the report notes. The government argues they will in fact reduce under-the-table employment and create new jobs by lowering the tax burden on employers, the report discloes. Milei, in office since December 2023, has managed to slow runaway inflation, which stood at 150 percent when he took office and has fallen to 32 percent over the last two years, the report says. But that success has come at the cost of massive public sector job cuts and a drop in disposable income that has sapped consumption and economic activity. Milei is following events at home from Washington, where he is attending the first meeting of US President Trump's "Board of Peace," which has drawn criticism as an attempt to rival the United Nations, the report adds. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Javier Milei is the current president of Argentina after winning the November 19, 2023 general election. He succeeded Alberto Angel Fernandez in the position. Argentina has the third largest economy in Latin America. The country's economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. In March 2022, the International Monetary Fund (IMF) approved a 30-month arrangement under an Extended Fund Facility for Argentina in the amount of SDR 31.914 billion (equivalent to US$44 billion, or 1000 percent of quota) -- with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. Moody's Ratings on July 17, 2025, upgraded Argentina's long-term foreign currency and local currency issuer ratings to Caa1 from Caa3 and changed the outlook to stable from positive. The upgrade reflects Moody's views that the extensive liberalization of exchange and (to a lesser extent) capital controls, alongside a new International Monetary Fund (IMF) program, support the availability of hard currency liquidity and ease pressure on external finances. This reduces the likelihood of a credit event. In January 2025, Moody's raised Argentina's local currency ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1 from Caa3. Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. S&P Global Ratings, in February 2025 lowered its local currency sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and its national scale rating to 'SD' from 'raB+'. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. =========== B R A Z I L =========== AMBIPAR EMERGENCY: Seeks to Extend Plan Exclusivity to May 4 ------------------------------------------------------------ Ambipar Emergency Response asked the U.S. Bankruptcy Court for the Southern District of Texas to extend its exclusivity periods to file a plan of reorganization and obtain acceptance thereof to May 4 and July 2, 2026, respectively. The Debtor explains that it has used its time in chapter 11 to stabilize the operating business of its subsidiaries, protect estate assets, and productively and efficiently to work with its stakeholders and its affiliates (including in the RJ Proceeding) to begin development of a comprehensive restructuring. Accordingly, application of the relevant factors to the facts of this chapter 11 case demonstrates that ample cause exists to grant the reasonable extension of the Exclusivity Periods requested herein. The Debtor claims that the global scope and unusual posture of Ambipar Group's restructuring efforts, involving dual plenary insolvency proceedings in both Brazil and the United States, is sufficient alone to justify a first extension of the Exclusivity Periods. While the Debtor has a limited number of creditors and is party to very few contracts, it is part of the larger Ambipar Group, which is engaged in a complex, multi-jurisdictional restructuring that arose out of a free-fall into court protection. Since the Petition Date, the Debtor, along with the other RJ Parties, has made substantial progress in negotiating a global restructuring with its stakeholders, warranting an extension of the Exclusivity Periods. The Debtor's substantial progress toward a consensual restructuring in working with its creditors and administering its case support the extension of the Exclusivity Periods. The Debtor asserts that it seeks to maintain exclusivity so parties with competing interests do not impede the Debtor's pursuit of emergence from this chapter 11 case. Extending the Exclusivity Periods benefits all parties in interest by preventing the drain on time and resources that inevitably occurs when multiple parties with potentially diverging interests vie for the consideration of their own respective plans. Moreover, even if the Court approves an extension of the Exclusivity Periods, nothing prevents parties in interest from later arguing to the Court that cause supports termination of the Debtor's exclusivity should cause arise. Accordingly, an extension of the Exclusivity Periods is in the best interest of the Debtor's estate, its creditors, and all other parties in interest. The Debtor further asserts that it is not seeking an extension of the Exclusivity Periods as a negotiation tactic, to artificially delay the conclusion of the chapter 11 case, or to hold creditors hostage to an unsatisfactory plan proposal. The Debtor is engaging in active negotiations with key creditors. The Debtor, together with the other RJ Parties, is also complying with all applicable deadlines in the RJ Proceedings and is pursuing a consensual restructuring. Accordingly, the Debtor is not seeking an extension of the Exclusivity Periods to pressure its creditors, but to provide sufficient time for the Debtor to resolve the chapter 11 without the disruption and distraction created by competing plan proposals. The Debtor notes that it will be paying its post-petition debts (almost entirely professional fees and other cases costs) in the ordinary course of business or as otherwise provided by Court order and has recently opened a bank account in the U.S. and the Court has approved funding for its nonDebtor affiliates to pay these obligations as they come due. The Debtor will continue to pay its bills in the ordinary course of business as they become due and owing. Ambipar Emergency Response is represented by: Jason S. Brookner, Esq. Lydia R. Webb, Esq. Gray Reed 1300 Post Oak Blvd., Suite 2000 Houston, TX 77056 Telephone: (713) 986-7000 Facsimile: (713) 986-7100 Email: jbrookner@grayreed.com lwebb@grayreed.com - and - David R. Zylberberg, Esq. Nicholas E. Baker, Esq. Moshe A. Fink, Esq. Rachael L. Foust, Esq. Zachary J. Weiner, Esq. Simpson Thacher & Bartlett LLP 425 Lexington Avenue New York, NY 10016 Telephone: (212) 455-2000 Facsimile: (212) 455-2502 Email: david.zylberberg@stblaw.com nbaker@stblaw.com moshe.fink@stblaw.com rachael.foust@stblaw.com zachary.weiner@stblaw.com About Ambipar Emergency Response Ambipar Emergency Response is a global environmental and emergency response firm. Ambipar Emergency Response sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-90524) on October 20, 2025. In its petition, the Debtor reports more than $1 billion in assets and $328.2 million in liabilities. Honorable Bankruptcy Judge Alfredo R. Perez handles the case. The Debtor is represented by Jason S. Brookner, Esq. of Gray Reed & Mcgraw LLP. BRAZIL: IDB OKs $99.2MM to Bolster Early-Childhood Education ------------------------------------------------------------ The Board of Executive Directors of the Inter-American Development Bank (IDB) has approved a $99.2 million loan to improve the coverage and quality of early-childhood education in Joinville, a municipality in Santa Catarina, Brazil. The loan is the eleventh operation of a program to modernize social spending in Brazil, which is financed by a conditional credit line for investment projects. The overall objective of the program, which was approved in 2020, is to strengthen the country's institutional capacity to plan and manage social spending to better serve citizens. The loan funds a program to expand full-day early-childhood education, with resilient and universally accessible infrastructure. It will also use innovation and digital transformation to enhance teaching practices and boost learning outcomes. Additionally, it will broaden access to educational services for migrant children and build the educational system’s planning and management capacity. Joinville, an economic hub of southern Brazil, is the largest city in the state of Santa Catarina. The city has the highest human-development index score in the state, thanks to strong industrialization and a diverse economy. However, it faces the challenge of ensuring high-quality education for the most vulnerable communities. The program will directly benefit 19,500 new students, 70% of whom come from Joinville’s most disadvantaged communities. It will also support approximately 4,000 migrant children and improve internet access for an additional 30,000. The IDB loan has a 23.5-year repayment term and a 7-year grace period. The operation will be paired with a $4 million grant from the IDB. 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. CIRION TECHNOLOGIES: S&P Downgrades ICR to 'B-', Outlook Negative ----------------------------------------------------------------- S&P Global Ratings, on Feb. 13, 2026, lowered its global scale issuer credit rating on Cirion Technologies to 'B-' from 'B+'. The negative outlook reflects the risk of another downgrade if that slower improvement in credit metrics and the capital-intensive nature of the company's business lead to persistently high leverage in the next few years, with no clear path to positive free operating cash flow. Cirion's performance has consistently fallen short of its expectations, resulting in below-average profitability and high leverage. Revenues totaled $726 million in the 12 months ended September 2025, a 12.4% decline compared to the same period in 2024, primarily attributable to the effects of the deliberate wind-down of the low-margin public cloud resale and wholesale voice services, in addition to unexpected churn events that occurred during late 2024. S&P Global Ratings-adjusted EBITDA for the 12 months ended Sept. 30, 2025, reached $219 million, with a margin of 30.2%, materially below S&P's previously expected 35.5% in 2025. Due to the much weaker EBITDA generation in the first nine months of the year, S&P now believes the company will end 2025 with debt to EBITDA closer to 6.5x. S&P said, "We expect materially weaker cash flow and higher leverage. Even assuming increasing revenues from higher-margin services and some cost-saving initiatives, we now project EBITDA of $252 million in 2026, with an EBITDA margin close to 33.5% and improving to close to 35% in 2027. The company's debt is stable at $1.4 billion, composed of a term loan maturing in 2029 and a revolving credit facility due August 2027. We forecast that lower EBITDA generation due to a slower ramp-up in margins will keep leverage above 5.0x for at least the next two years, which could affect Cirion's refinancing costs and options. "We expect capital expenditures (capex) to decrease in 2026 with the completion of recent projects, but we still forecast relevant FOCF deficits. Capex remained elevated during 2025 -- estimated at close to $280 million for the full year -- mainly for construction of new data centers in Peru and Chile, land acquisition in Rio de Janeiro, and data center and network expansions across Brazil, Argentina, Chile, Mexico, and Colombia. We project capex to decrease to approximately $230 million over the next two years. Even with this reduction, we forecast annual FOCF deficits of close to $90 million over the same period. "To support the capex program, Cirion anticipates continued equity contributions from its financial sponsor, Stonepeak, as has been the case in recent years. In 2025, we estimate that equity contributions amounted to around $125 million. Although in our base case we assume continued support to Cirion to cover FOCF deficits, there is no publicly committed amount for further capital injections. "We assume gradual operating improvements, but not sufficient to support stronger cash flows. Recent strategic initiatives include the signing of three long-term contracts with hyperscaler customers in the U.S., new customers added to the new data centers in Chile and Peru, and the completion of fiber optic ring projects in Rio de Janeiro and Belo Horizonte. In addition, Cirion continues to implement cost-cutting measures and indicates recent reductions in churn. Still, our current projections consider a slower ramp-up in margins will pressure the company's operating cash flows due to the level of interest expenses. Absent an operational turnaround that provides visibility toward sustainable positive cash flows, we believe the company's financial flexibility would be increasingly constrained and its capital structure could turn unsustainable. "The negative outlook reflects our expectation of persistently high leverage in the next few years, with no clear path to positive FOCF. We forecast debt to EBITDA of 5.7x in 2026 and approaching 5.0x in 2027. "We could lower the rating on Cirion in the next six to 12 months if we expect persistently negative FOCF alongside slow margin growth and continued capex needs, with interest payments pressuring EBIT interest coverage and debt to EBITDA remaining above 6x. "We could revise the outlook to stable in the next six to 12 months if we have evidence of a clear path to positive FOCF resulting from faster-than-expected revenue growth and improving margins. This could occur with sustainable improvement in operating performance, higher asset utilization, and reduced churn. In this scenario, we would see debt to EBITDA trending toward 5x and EBIT interest coverage closer to 1x." ============= J A M A I C A ============= JAMAICA: BOJ Urged to Cut Interest Rate to Stimulate Growth ----------------------------------------------------------- RJR News reports that Chief Financial Officer at the JMMB Group, Patrick Ellis, says the Bank of Jamaica must reduce the benchmark interest rate from 5.75% per annum now in order to provide a stimulus to micro, small and medium sized as well as large enterprises, and by extension the economy. Mr. Ellis, who was speaking in an interview on Power 106FM's Real Business, said the US benchmark federal funds rate is now between 3.50% per annum and 3.75% per annum, according to RJR News. The higher local benchmark rate and the lower US benchmark rate provide very little incentive for investors to move US dollars from Jamaica to the USA and the prevailing political and social order of the US also exacerbates the situation, the report notes. Mr. Ellis also stressed that the BOJ currently has some US$6.7 billion in foreign reserves, which means that it can defend the currency at a competitive level of J$160 to the US$1, the report relays. The JMMB executive added that a lowering of interest rates would assist many of its clients who were affected by COVID-19, as well as hurricanes Beryl and Melissa, the report adds. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a positive rating outlook. In October 2023, Moody's upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to B1 from B2, and senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has been changed to positive from stable. In September 2024, S&P affirmed 'BB-/B' longterm foreign and local currency sovereign credit ratings on Jamaica and revised outlook to positive. JAMAICA: Collects Non-Tax Revenues of $181.4 Billion For 2024-2025 ------------------------------------------------------------------ RJR News reports that the Jamaican government said it collected non-tax revenues of $181.4 billion during the year 2024 to 2025. Projections for this fiscal year were for $139.8 billion, but collections were running at $140.3 billion between April and December, according to RJR News. The government, however, expects a steep fall to $97.3 billion during the next fiscal year, the report notes. Meanwhile, capital revenues amounted to $17 billion and were estimated at $4.9 billion this year, the report relates. The amount collected between April and December was $4.1 billion and the projections are for $7.2 billion next year, 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 A R A G U A Y =============== AGENCIA FINANCIERA DE DESARROLLO: S&P Affirms 'BB+' LongTerm ICR ---------------------------------------------------------------- S&P Global Ratings revised its rating outlook on Agencia Financiera de Desarrollo to positive from stable and affirmed the 'BB+' global scale long-term issuer credit rating. At the same time, S&P affirmed its 'BB' global scale long-term issuer credit rating on Ueno Bank. The rating outlook on Ueno Bank remains stable. AFD S&P said, "The positive rating outlook on AFD reflects our view that it could benefit from stronger banking fundamentals in Paraguay. As the only state-owned second-floor bank in Paraguay, with the goal to provide funding for Paraguayan financial institutions, it should benefit from better banking industry fundamentals and a potentially better anchor. Those better fundamentals for the overall Paraguayan banking system could result from more stable financial institutions, better asset quality metrics and credit risks, better competitive dynamics, more dynamic lending growth, and improving regulation. Our outlook also incorporates the expectation that AFD's capitalization will remain sound, with a RAC ratio consistently above 15% in the next 12-18 months." S&P could revise the outlook to stable if: -- S&P revises its view of Paraguay's industry risk trend to stable, which could happen if market distortions increase or if regulatory oversight and financial stability weaken; or -- AFD's capitalization declines to below 15% consistently, absent any other material change. S&P said, "We could upgrade AFD if we improve our BICRA score for Paraguay and, as a result, our anchor for Paraguayan banks. This could result from consistently declining market distortions while regulatory oversight keeps progressing. We could also upgrade AFD if it increases its relevance to the government of Paraguay, becoming very important in meeting the government's key national policy objectives." The upgrade scenario assumes all other credit factors for AFD do not worsen. Ueno Bank S&P said, "The stable rating outlook on Ueno Bank reflects our expectation that the rating will remain unchanged in the next 12 months. This outlook considers our view of Ueno's balance of strengths and risks. On the positive side are its innovative and disruptive business model, growing market share and improving branding, synergies with Grupo Vazquez, and financial flexibility in its capital position, along with a possible improvement in economic and banking conditions in Paraguay. Conversely, we see as risks Ueno Bank's material proportion of intangibles in its asset composition, its rapid growth, and the loan portfolio of Vision Banco, part of which is currently under special treatment." Downside scenario S&P could lower the rating on Ueno Bank if its projected RAC ratio remains consistently below 5%. This could result from slower-than-expected amortization of intangibles, an increase in investment in unconsolidated subsidiaries, or significantly higher-than-expected growth that is not compensated by capital buildup or injections. This downgrade scenario assumes that all other rating factors, including the BICRA and anchor, remain unchanged. Upside scenario S&P could upgrade Ueno Bank if the two conditions below are met: -- The bank's capital position significantly improves, with the RAC ratio consistently above 5%; and -- S&P improves its BICRA score for Paraguay and, as a result, its anchor for Paraguayan banks. This could result from consistently declining market distortions while regulatory oversight keeps progressing. ********* 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 * * *