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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
Thursday, March 12, 2026, Vol. 27, No. 51
Headlines
A R G E N T I N A
ARGENTINA: Milei’s Expanded Incentive Set to Draw Oil Investors
B R A Z I L
BRAZIL: China Soy Imports Fall 7.8% as Brazil's Harvest Lags
BRAZIL: Faces Fertilizer Crisis as War and China Choke It
BRAZIL: Ratifies EU-Mercosur Trade Deal
OI SA: Plans Next Steps After Auction Fails
J A M A I C A
JAMAICA: BPO Sector Raises Concern Over Hurricane Damage Claims
NCB FINANCIAL: Fitch Affirms 'BB-/B+' IDRs, Outlook Stable
P A R A G U A Y
UENO BANK: Fitch Assigns 'BB(EXP)' Rating on Senior Unsecured Notes
P U E R T O R I C O
ASOCIACION HOSPITAL: Gets Extension to Use BPPR's Cash Collateral
GOLDEN TRIANGLE: Taps William R Loubriel Velez as Special Engineer
X X X X X X X X
[] Fitch Affirms Ratings on 3 LatAm Oil & Gas Production Cos.
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A R G E N T I N A
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ARGENTINA: Milei’s Expanded Incentive Set to Draw Oil Investors
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Jonathan Gilbert at Bloomberg News reports that President Javier
Milei's marquee programme for luring investment into Argentina is
poised to attract a new round of applications from crude producers
after his administration broadened it to include shale oil wells.
YPF SA, Vista Energy SAB, and Pampa Energia SA said on recent
earnings calls that they were all eyeing the program, according to
Bloomberg News. Known by its Spanish acronym RIGI, the incentive
scheme provides 30-year tax breaks and freer customs and export
rules, Bloomberg News notes.
RIGI's scope was expanded on February 19 to spur development of
virgin oil fields in the Vaca Muerta shale patch, Bloomberg News
says. A dedicated pipeline and a port for crude exports are being
built quickly, and the US shale industry - which is running out of
prime acreage - is taking an interest in migrating to Argentina,
Bloomberg News relates.
"It will help for sure to develop the full Vaca Muerta," YPF Chief
Executive Officer Horacio Marin said on the state-run company’s
fourth-quarter earnings call, Bloomberg News notes. His comments
were echoed by executives at Vista and Pampa on their respective
calls, Bloomberg News says.
Bloomberg News discloses that for Matias Cattaruzi, an equities
analyst at Adcap in Buenos Aires, incorporating shale oil drilling
into RIGI "will help to accelerate investments in blocks that were
expected to be developed closer to 2029–30 and could now be
brought forward a few years." He said the tax breaks alone would
boost returns on those blocks by up to 12 percent, Bloomberg News
notes.
By some estimates, the RIGI programme has already drawn
applications from energy and mining projects that would require a
total investment of more than US$50 billion, Bloomberg News 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.
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B R A Z I L
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BRAZIL: China Soy Imports Fall 7.8% as Brazil's Harvest Lags
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Lachlan Williams at Rio Times Online reports that China's soybean
imports fell 7.8% in the combined January to February period to
12.55 million metric tons, customs data showed. China merges the
two months to smooth distortions from the Lunar New Year holiday,
which shifts between January and February each year, according to
Rio Times Online. The figure, while lower than last year, still
came in roughly one million tons above analyst expectations of 11.1
million, suggesting the world’s largest soybean buyer maintained
stronger demand than the headline decline implies, the report
notes.
Three factors converged to depress arrivals. Most U.S. shipments
purchased under the late-2025 trade deal did not reach Chinese
ports until the final days of February, limiting their impact on
the two-month count,, the report relays. Brazil’s harvest,
meanwhile, ran behind schedule: consultancy AgRural reported that
51% of the 2025/26 soybean crop had been harvested, compared with
61% at the same point a year earlier, the report discloses. And
extended customs clearance procedures at Chinese ports further
slowed the intake of cargoes that had already arrived, the report
says.
March Arrivals Set to Surge
Rio Times Online reports that analysts expect the shortfall to be
erased quickly. Rosa Wang of Shanghai-based consultancy JCI
estimated March arrivals at 6.4 million tons - nearly double the
3.5 million recorded in March 2025. The delayed U.S. cargoes and
the acceleration of Brazil’s record harvest, forecast by Conab at
177 million tons for the current crop year, will both hit Chinese
ports in the coming weeks, the report discloses. Liu Jinlu of
Guoyuan Futures said that with South American supplies abundant,
Chinese imports should improve markedly through the second quarter,
the report says.
The seasonal pattern is familiar, the report relays. China
typically buys U.S. soybeans from the Northern Hemisphere autumn
harvest through February, then switches almost exclusively to
Brazilian supply once the Southern Hemisphere crop comes on stream,
the report notes. This year, the transition was disrupted by
trade-war dynamics: retaliatory tariffs delayed Chinese purchases
of U.S. beans until late October, when leaders from both countries
met to ease tensions, the report relates. China has since imported
approximately 12 million tons of U.S. soybeans - a goodwill signal
ahead of the anticipated Trump-Xi summit in the coming weeks, the
report discloses.
Brazil's Structural Dominance
The broader context matters more than the two-month dip, the report
relays. Brazil exported 108 million tons of soybeans in calendar
year 2025, with 85.4 million tons - roughly 79% - going to China,
the report notes. The country now supplies about 74% of China’s
total soybean imports, a share that has risen steadily since the
first U.S.-China trade war in 2018, the report recalls. Chinese
state-owned conglomerate COFCO has invested hundreds of millions of
dollars in port infrastructure at Santos and other Brazilian
terminals, reinforcing logistics chains that make Brazilian beans
consistently cheaper for Chinese buyers even without tariff
differentials, the report notes.
For U.S. farmers, the stakes remain high, the report says. Trump
said last month that China was considering an additional purchase
of 8 million tons, though traders were skeptical given elevated
prices. USDA projects U.S. agricultural exports to China will fall
to $9 billion in 2026 — the lowest since the 2018 trade war —
unless the upcoming summit produces concrete commitments, the
report notes. The American Soybean Association has warned that
even with government assistance, soybean farmers face losses of $75
per acre this season, the report says. Meanwhile, Brazil’s
harvest delay is a temporary inconvenience for Chinese buyers, not
a structural shift, the report relates. Once the record crop
reaches export terminals, the seasonal switch will reassert itself
and Brazilian soybeans will dominate Chinese imports through at
least September, 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.
BRAZIL: Faces Fertilizer Crisis as War and China Choke It
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Iolanda Fonseca at Rio Times Online reports that the world's most
productive farmland cannot feed itself without imports from some of
the world's most unstable regions. That paradox is now acute,
according to Rio Times Online. Brazil's Agriculture Ministry has
classified the fertilizer supply outlook as an "extremely high
risk" to the 2026/27 harvest in two urgent internal assessments
obtained by the Gazeta do Povo, warning that the Iran war and
Chinese export curbs are converging to threaten food security in
the country that feeds a significant share of the planet, the
report notes.
The immediate trigger is the Strait of Hormuz, the report relays.
Roughly one-third of all globally traded urea — the most widely
used nitrogen fertilizer — transits the 21-mile waterway between
Iran and Oman, along with massive volumes of ammonia, sulphur, and
phosphate precursors from Qatar, Saudi Arabia, and the UAE. With
commercial shipping suspended and insurance premiums soaring, that
supply has been effectively cut off, the report notes. Global urea
prices surged 26% in a single week after the strait closed, with
granular urea climbing to between $500 and $550 per tonne - up from
around $480 in late February, the report discloses. Persian Gulf
nations supplied roughly 36% of Brazil's urea imports in 2025, the
report says.
China Closes Back Door
In past crises, China served as the emergency supplier, the report
relays. When the Ukraine war disrupted Russian fertilizer flows in
2022, Chinese phosphate exports to Brazil doubled, preventing what
industry executives described as a serious shortage, the report
discloses. This time, Beijing is moving in the opposite direction,
the report notes. China's fertilizer producers association has
requested export restrictions on MAP — the primary phosphate
product used in soybean and corn planting — through at least
August 2026, prioritizing domestic supply, the report relays. MAP
prices at Brazilian ports have surged to roughly $720 per tonne, up
13% since January, the report says. The ministry's technical
assessment estimates a potential deficit of 1 to 3 million tonnes
of phosphate fertilizers, sufficient to compromise productivity on
up to 20% of national demand, the report discloses.
Vulnerability That Never Got Fixed
Brazil imports approximately 85% of the fertilizers its agriculture
consumes - more than 43 million tonnes annually - while producing
only around 7 million tonnes domestically, the report notes. The
country is the world's fourth-largest fertilizer consumer and its
largest importer, the report relays. A National Fertilizer Plan
launched in 2022 under Bolsonaro aimed to reduce import dependency
to 45% by 2050, but progress has stalled, the report says.
Petrobras shuttered its ammonia and urea plants in Bahia, Sergipe,
and Parana between 2018 and 2022, and a planned mega-factory in
Tres Lagoas, Mato Grosso do Sul, never materialized, the report
discloses. The geological and economic logic is stubborn:
Brazil’s natural gas remains expensive by global standards, and
the cheapest fertilizer production sits atop the Persian Gulf’s
virtually free gas, the report relays.
The timing compounds the pain, the report discloses. Brazilian
farmers begin purchasing fertilizer for the 2026/27 soybean and
corn planting season — which starts in September - during the
coming months, the report notes. Rabobank analyst Bruno Fonseca
warned that the impact of the Hormuz closure may take time to
materialize, since many shipments are scheduled to arrive between
May and June. But if the strait remains closed through that window,
the squeeze will be severe, the report says. Fertilizer already
accounts for 30% to 40% of a Brazilian farmer's operating costs,
the report relates. At current exchange rates, a soybean grower
now needs nearly 29 sacks of grain just to buy one tonne of MAP —
a ratio that has deteriorated sharply since the start of the year
and erodes the margins that make Brazilian agriculture globally
competitive, 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.
BRAZIL: Ratifies EU-Mercosur Trade Deal
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Buenos Aires Times reports that Brazil's Senate ratified a deal
between the Mercosur bloc and the European Union that creates one
of the world's largest free trade areas.
The deal involves the four founding members of the South American
trade bloc, and has already been ratified by Argentina and Uruguay.
Paraguay's parliament still needs to approve it, according to
Buenos Aires Times.
The European Commission announced that it would provisionally
implement the mammoth deal, pending the EU top court's ruling on
its legality, the report notes.
The move angered France, which has led opposition to the deal and
unsuccessfully attempted to block it over worries for its farmers,
who fear being undercut by cheaper goods from Brazil and its
neighbours, the report relates.
The deal was signed in January after 25 years of tricky
negotiations, the report discloses.
It was given fresh impetus amid the sweeping use of tariffs and
trade threats by US President Donald Trump's administration, which
sent countries scrambling for new partnerships, the report says.
Together, the EU and Mercosur account for 30 percent of global GDP
and more than 700 million consumers, the report relays.
The treaty eliminates tariffs on more than 90 percent of bilateral
trade, the report notes.
The deal will favour European exports of cars, wine and cheese,
while making it easier for South American beef, poultry, sugar,
rice, honey and soybeans to enter Europe, the report discloses.
Brazil – the world's largest producer of coffee, meat and
soybeans, among other foodstuffs – was one of the strongest
backers of the deal, the report notes.
"The world today is more fragmented, more sceptical, and more
protectionist. This makes the agreement with our European partners
even more relevant and even more necessary," Senator Tereza
Cristina said during the debate in the Brazilian legislature, the
report relays.
On the European side, Spain and Germany are in favour of the pact,
which will benefit exports of machinery and spirits to the Mercosur
bloc, the report says.
But some European farmers reacted angrily, rolling tractors into
cities like Paris, Brussels and Warsaw to protest a feared influx
of cheaper goods produced with lower standards and banned
pesticides, 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.
OI SA: Plans Next Steps After Auction Fails
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Ben Zigterman at law360.com reports that the auction for
telecommunications company Oi's equity stake in a Latin American
fiber internet provider did not attract a qualified bid, an
attorney representing the debtor told a New York bankruptcy judge.
About Oi SA
Headquartered in Rio de Janeiro, and operating almost exclusively
within Brazil, the Oi Group provides services like fixed-line data
transmission and network usage for phones, internet, and cable,
Wi-Fi hot-spots in public areas, and mobile phone and data
services, and employs approximately 142,000 direct and indirect
employees.
On June 20, 2016, pursuant to Brazilian Law No. 11.101/05 (the
'Brazilian Bankruptcy Law'), Oi S.A. and certain of its
subsidiaries filed for recuperao judicial (judicial reorganization)
in Brazil.
On June 21, 2016, OI SA and its affiliates Telemar Norte Leste S.A.
and Oi Brasil Holdings Cooperatief U.A. commenced Chapter 15
proceedings (Bankr. S.D.N.Y. Lead Case No. 16-11791). Ojas N. Shah,
as foreign representative, signed the petitions.
Coop and PTIF are also subject to proceedings in the Netherlands.
The Chapter 15 cases are assigned to Judge Sean H. Lane.
In the Chapter 15 cases, the Debtors were represented by John K.
Cunningham, Esq., and Mark P. Franke, Esq., at White & Case LLP, in
New York; and Jason N. Zakia, Esq., Richard S. Kebrdle, Esq., and
Laura L. Femino, Esq., at White & Case LLP, in Miami, Florida.
On July 22, 2016, the New York Court recognized the Brazilian
Proceedings as foreign main proceedings with respect to the Chapter
15 Debtors, and granted certain additional related relief.
The company exited bankruptcy protection in December 2022.
In November 2025, Oi has again been declared bankrupt by a Rio de
Janeiro court. Judge Simone Gastesi Chevrand of the 7th Business
Court of Rio de Janeiro ordered the suspension of all lawsuits and
enforcement actions against the telecom carrier. Shares tumbled at
that time.
In February 2026, S&P Global Ratings lowered the issue rating on Oi
S.A.'s 2026 senior secured notes to 'D' from 'CC' and withdrew the
'3' recovery rating on the notes. At the same time, S&P lowered the
global scale issuer credit ratings on Oi to 'D' (default) from 'SD'
(selective default). The lowering of the rest of S&P's global scale
ratings on Oi to 'D' follows the most recent court decision
extending the suspension of the enforceability of the company's
postpetition claims. Oi S.A. missed the interest payment on its
2026 senior secured notes that was due on Jan. 30, 2026.
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J A M A I C A
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JAMAICA: BPO Sector Raises Concern Over Hurricane Damage Claims
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RJR News reports that Chairman of Itel BPO Solutions, Yoni Epstein
is calling for the Financial Services Commission to intervene in a
dispute between the business process outsourcing sector and the
general insurance companies.
Epstein said insurance providers are slowing the recovery of the
BPO industry following the devastation caused by Hurricane Melissa,
according to RJR News.
He explained that damage to equipment and other capital stock
within the sector amounted to about 90 per cent of their total
value, the report notes.
However, he said insurance companies are only willing to cover
about 65 per cent of those losses, the report says.
According to Epstein, insurers are still refusing to fully cover
the verified damage despite assessments from independent
evaluators. He argued that the situation is making it difficult for
BPO companies to fully recover, warning that Jamaica could lose
outsourcing business to countries such as India and the
Philippines, the report discloses.
The BPO sector currently employs more than 50,000 people in Jamaica
and generates close to US$1 billion in export earnings each 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.
NCB FINANCIAL: Fitch Affirms 'BB-/B+' IDRs, Outlook Stable
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Fitch Ratings has removed National Commercial Bank Jamaica
Limited's (NCBJ) Long- and Short-Term Foreign and Local Currency
Issuer Default Ratings (IDRs) from Rating Watch Negative (RWN) and
affirmed them at 'BB-' and 'B', respectively.
Fitch also affirmed NCBJ's Viability Rating (VR) and Government
Support Rating (GSR) at 'bb-'. Fitch removed NCB Financial Group
Limited's (NCBFG) Long- and Short-Term Foreign and Local Currency
IDRs from RWN and affirmed them at 'B+' and 'B', respectively.
Fitch also affirmed NCBFG's senior unsecured notes at 'B+' with a
Recovery Rating of 'RR4'.
The Rating Outlook for both issuers' Long-Term IDRs is Stable.
Fitch expects that Hurricane Melissa will result in material
economic damage and recovery costs for Jamaica, creating a
challenging operating environment for banks in 2026-2027 and
weakening financial metrics. However, the impact on NCBJ should be
manageable and less severe than Fitch initially anticipated. NCBJ
has sufficient rating headroom to absorb the short-term negative
effects.
Key Rating Drivers
NCBJ
VR Driven Ratings; Highly Influenced by Business Profile: NCBJ's VR
underpins its IDRs. The VR is largely shaped by NCBJ's good
business profile, reflecting its dominant position as Jamaica's
largest bank, with a consolidated market share of 35% of assets and
31% of deposits as of December 2025 (1Q FYE 2026).
Its scale supports meaningful pricing power, limited competitive
pressure, and strong, long-standing customer relationships,
complemented by a notably diversified business model. This
reinforces NCBJ's ability to generate business during periods of
stress, consistent with its moderate risk appetite. As of September
2025, the bank's total operating income (TOI) was USD604 million,
up 15.3% yoy.
Resilient Operating Environment: The VR is moderately influenced by
Jamaica's sovereign rating and broader operating environment
considerations. The Jamaican financial system has shown notable
resilience, with the economy slowing as the system continues to
expand at an appropriate, controlled pace, supported by stable
financial performance of banks.
Jamaica's OE resilience is evident in Fitch's core metrics, with an
Operational Risk Index (ORI) at the 36th percentile and GDP per
capita of USD7.4 million. Fitch believes the current score provides
sufficient headroom to absorb the hurricane's expected short-term
negative spillovers.
Stable Asset Quality: Fitch views NCBJ's asset quality as stable. A
steady operating environment, effective risk management and
diversification across loans and securities may partly mitigate
hurricane-related deterioration. In 1Q FYE 2026, the 90-day
non-performing loan (NPL) ratio improved to 3.9% from 4.2% at FYE
2025, despite Hurricane Melissa's severe impact during the quarter.
The improvement reflects strong risk execution, including portfolio
segmentation and repricing.
While some delayed, system wide deterioration remains possible,
Fitch expects NCBJ to keep delinquencies contained, with NPLs below
4.5% over the rating horizon. Fitch also expects charge-offs to
rise as part of balance-sheet management, but to remain contained.
Profitability to be Challenged: Fitch believes strong asset-quality
management, despite a tougher macro backdrop, and ongoing
cost-reduction efforts have supported earnings resilience. However,
at 1Q FYE 2026, operating profit/average assets fell to 0.8% from
the four-year average of 1.2%, signaling weaker operating
efficiency, largely due to elevated loan impairment charges that
were below expectations. The current score incorporates pressured
earnings, and Fitch expects only a slight further weakening by next
fiscal year-end as asset quality softens modestly and expected
inflation to raise expenses, while remaining consistent with the
current score.
Adequate Capitalization: As of 1Q FYE 2026, NCBJ reported adequate
capitalization metrics, reflecting a solid capital position
supported by disciplined dividend upstreaming and asset growth
aligned with its capacity. Additionally, the bank is required to
maintain a mandatory banking reserve fund in equity, which Fitch
views as a complementary safeguard against potential losses.
Tangible common equity/tangible assets were 10.8%, providing a
sound buffer for risk management. NCBJ also exceeded the minimum
capital adequacy requirement, with a ratio of 15.2%. Fitch expects
capitalization to remain in line with the current score over the
rating horizon.
Robust Funding and Liquidity Profile: Although Fitch anticipated
sizeable deposit outflows, the bank's liquidity position
strengthened, underpinned by its deposit mix and system-wide
dynamics. This reflects NCBJ's position as the country's largest
deposit taker, supported by a well-diversified, low-cost deposit
base covering 63% of funding needs and demonstrated debt market
access. In 1Q FYE 2026, its lower gross loans-to-customer deposits
ratio fell to 69.2% from 72.7% at FYE 2025, supporting a balanced
funding structure. As the lagged effects of Hurricane Melissa
unfold, Fitch expects NCBJ's liquidity to remain robust and
consistent with the current score.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
NCBJ- IDRs and VR
- Given NCBJ's government support assessment at the sovereign
rating level, its IDRs are sensitive to changes in the sovereign
rating actions;
- The VR could be downgraded if the bank's tangible equity ratio is
sustained below 10%, due to either accelerated growth, a relevant
deterioration in asset quality or profitability;
- The VR could also be negatively affected by negative action on OE
assessment.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
NCBJ- IDRs and VR
- Given NCBJ's government support assessment at the sovereign
rating level, its IDRs are sensitive to sovereign rating actions;
- An upgrade of NCBJ's VR would also be positive for the bank's
IDR. NCBJ's VR could be upgraded if the bank is able to maintain
its strong franchise, sound financial profile relative to its
rating level, and a capital ratio of tangible common equity to
tangible assets above 10%, in the context of an improvement of the
OE.
OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS
NCBJ's Government Support Rating (GSR) of 'bb-' aligns with the
sovereign rating, reflecting the bank's significant systemic
importance. However, this rating also considers a moderate
likelihood of support due to uncertainties regarding the
sovereign's ability or willingness to provide such assistance, as
indicated by its 'BB-' Long-Term IDRs.
OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- NCBJ's GSR would be affected if Fitch negatively changes its
assessment of the Jamaican government's propensity to provide
timely support to the bank;
- This could also arise in the event of a sovereign negative rating
action.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- NCBJ's GSR could be upgraded if Jamaica's rating is upgraded.
SUBSIDIARIES & AFFILIATES: KEY RATING DRIVERS
NCBFG
Creditworthiness of its Major Subsidiary: NCBFG ratings are based
on the creditworthiness of its main subsidiary NCBJ's, which is the
largest bank in the country by assets and represents 53% of the
group's consolidated assets. NCBFG's income is mainly derived from
dividend income from its subsidiaries, followed by management fees
and interest income.
Significant Double Leverage: NCBFG's significant double leverage,
consistently averaging above 120%, suggests a potentially
burdensome level of bank holding company debt service. This factor
is a primary reason for the one-notch differentiation from NCBJ.
This persistently elevated double leverage results from NCBFG's
growth strategy, which involves acquiring subsidiaries through
leveraged means. Through this approach, NCBFG seeks to expand its
operational footprint and strengthen its market presence. However,
Fitch considers the downward trend in double leverage that has been
observed in recent years, indicating a positive move towards
reducing financial burdens.
Convenient Contingency Plans in Place: NCBFG's liquidity is
robustly supported by multiple mitigants beyond dividend and fee
income from NCBJ and other key subsidiaries: in addition to
meaningful cash generation from subsidiary operations, the group
maintains adequate liquidity, can secure inter-company funding, and
has access to local capital markets while continuing to execute
other debt-reduction measures.
Furthermore, NCBFG retains flexibility to monetize unencumbered
assets. Relative to regional peers, NCBFG stands out for having
structured liquidity contingency plans—uncommon among Latin
American holding companies—which Fitch views positively for
liquidity management. While NCBFG lacks committed credit lines, it
has developed strong relationships with banks and regional
investors, further strengthening its ability to manage liquidity.
NCBFG Senior Secured Notes
NCBFG's USD225 million senior secured notes are rated at the same
level as its LT Issuer Default Rating (IDR; B+/Stable), as the
likelihood of default of the notes is the same as that of the
holding company. In accordance with Fitch's rating criteria,
recovery prospects for the notes are average and reflected in their
Recovery Rating of 'RR4'. Although these notes are senior secured,
Fitch believes the collateral mechanism would not significantly
enhance recovery rates.
The notes will constitute the NCBFG's direct, secured,
unsubordinated, and senior obligations, ranking pari passu with all
existing and future similarly secured and unsubordinated
obligations. They will rank senior to any subordinated indebtedness
and effectively senior to any unsecured indebtedness, limited to
the value of the collateral securing the notes. The notes will be
effectively junior to other obligations secured by liens on assets
not included as collateral for the notes, to the extent of such
collateral.
NCBFG
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- NCBFG's rating is sensitive to a change in NCBJ's ratings;
- In addition, the holding company's ratings would be negatively
impacted by changes in the group structure that would reduce the
materiality of NCBJ's role in the group or increase the complexity
of the group's structure;
- The relativity between NCBFG and NCBJ's ratings could be
negatively affected by a sustained increase in a double leverage
above 150%. Also, a deterioration in its standalone liquidity
profile could negatively impact NCBFG's ratings;
- NCBFG's senior secured debt ratings are directly linked to the
holding's Long-Term IDR. Any negative rating action on the IDR will
result in a similar rating action on these debt ratings.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- A double leverage consistently below 120% could positively
influence NCBFG's rating by potentially narrowing the relativity
between NCBFG and NCBJ's ratings;
- An upgrade in NCBJ's rating could lead to a positive action in
NCBFG's ratings;
- NCBFG's senior secured debt ratings are directly linked to the
holding's Long-Term IDR. Any positive rating action on the IDR will
result in a similar rating action on these debt ratings.
SUBSIDIARIES AND AFFILIATES: RATING SENSITIVITIES
VR ADJUSTMENTS
NCBJ
- NCBJ's VR of 'bb-' has been assigned above the 'b+' implied VR
due to the following adjustment reason: Business Profile
(Positive).
- The Business Profile score has been assigned above the implied
score due to the following adjustment reason: Market Position
(Positive) and Business Model (Positive).
- The Capitalization and Leverage score has been assigned below the
implied score due to the following adjustment reason: Leverage and
Risk Weight Calculation (Negative).
- The Funding & Liquidity score has been assigned above the implied
score due to the following adjustment reason: Deposit Structure
(Positive).
Public Ratings with Credit Linkage to other ratings
NCBFG ratings are based on the creditworthiness of NCBJ.
ESG Considerations
National Commercial Bank Jamaica Limited has an ESG Relevance Score
of '4' for Exposure to Environmental Impacts due to its exposure to
environmental risks, which recently has been highly sensitive to
catastrophic risks from Hurricane Melissa, has a negative impact on
the credit profile, and is highly relevant to the rating in
conjunction with other factors, resulting in an RWN across the full
set of ratings.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
NCB Financial
Group Limited
LT IDR B+ Affirmed B+
ST IDR B Affirmed B
LC LT IDR B+ Affirmed B+
LC ST IDR B Affirmed B
senior secured LT B+ Affirmed RR4 B+
National
Commercial Bank
Jamaica Limited
LT IDR BB- Affirmed BB-
ST IDR B Affirmed B
LC LT IDR BB- Affirmed BB-
LC ST IDR B Affirmed B
Viability bb- Affirmed bb-
Government Support bb- Affirmed bb-
===============
P A R A G U A Y
===============
UENO BANK: Fitch Assigns 'BB(EXP)' Rating on Senior Unsecured Notes
-------------------------------------------------------------------
Fitch Ratings has assigned an expected rating of 'BB(EXP)' to Ueno
Bank SA's senior unsecured notes. The terms and conditions of these
U.S. dollar denominated notes are yet to be determined. The notes
will have five-year tenor.
The final rating is contingent on the receipt of final documents
materially conforming to the information already received. The use
of proceeds will be for general corporate purposes, including
financing growth opportunities, and credit origination.
Key Rating Drivers
Ueno's senior unsecured notes are rated at the same level as Ueno's
Long-Term Issuer Default Rating (IDR) of 'BB', as the likelihood of
default of the notes is the same as that of the bank.
The proposed notes will rank pari passu in right of payment with
all of Ueno's existing and future senior obligations and will rank
senior in right of payment to all of Ueno's future subordinated
indebtedness and other obligations that expressly provide for their
subordination to the notes.
Ueno's 'bb' VR drives its IDRs. Paraguay's positive operating
environment and Ueno's strengthened market position in the local
market are relevant to the bank's ratings. In addition, the VR
considers the bank's strengthened franchise in Paraguay, sound
asset quality, solid profitability, adequate capitalization, and
its stable and moderately concentrated funding.
For more details on Ueno, see Fitch Takes Various Actions on
Paraguayan Banks After Revising Sovereign Outlook to Positive,
published on Oct. 24, 2026.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Ueno'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
- Ueno's senior unsecured debt rating will generally move in tandem
with the bank's Long-Term IDR.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating
----------- ------
Ueno Bank SA
senior unsecured LT BB(EXP) Expected Rating
=====================
P U E R T O R I C O
=====================
ASOCIACION HOSPITAL: Gets Extension to Use BPPR's Cash Collateral
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Puerto Rico granted
the sixth extension of the stipulation between Asociacion Hospital
Del Maestro, Inc. and Banco Popular de Puerto Rico to use the
secured creditor's cash collateral.
The order extended the stipulation from February 20 to March 20 and
authorized the Debtor to use $170,545 in cash collateral to pay the
expenses set forth in its operating budget, subject to a 10%
variance.
During this period, the Debtor will make a $50,000 payment to Banco
Popular de Puerto Rico as protection.
The order is available at https://is.gd/AX9GBP from
PacerMonitor.com.
About Asociacion Hospital Del Maestro
Asociacion Hospital Del Maestro Inc., also known as Hospital El
Maestro, is a nonprofit general medical and surgical hospital
located in San Juan, Puerto Rico, that was founded in 1955 to serve
the teaching community and has since expanded to provide services
to the broader population. The hospital operates about 126 staffed
beds and offers emergency care, intensive care, radiology, surgery,
hemodialysis, and a range of medical specialties for children and
adults. It is accredited by the Joint Commission and functions as a
501(c)(3) organization with a focus on healthcare, education, and
community service.
Asociacion Hospital Del Maestro Inc. sought relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 25-03780) on
August 25, 2025. In its petition, the Debtor reports total assets
of $13,396,955 and total liabilities of $39,669,466.
Judge Enrique S. Lamoutte Inclan handles the case.
The Debtor tapped Wigberto Lugo Mender, Esq., at Lugo Mender Group,
LLC as legal counsel; CPA Luis R. Carrasquillo & Co., P.S.C. as
financial consultant; and IEC Consulting, LLC as investment
consultant.
Banco Popular de Puerto Rico, as secured creditor, is represented
by Luis C. Marini-Biaggi, Esq. and Carolina Velaz-Rivero, Esq.
at Marini Pietrantoni Muniz, LLC.
GOLDEN TRIANGLE: Taps William R Loubriel Velez as Special Engineer
------------------------------------------------------------------
Golden Triangle Realty, SE seeks approval from the U.S. Bankruptcy
Court for the District of Puerto Rico to employ William R. Loubriel
Velez, a practicing licensed engineer in Puerto Rico, as special
engineer.
Mr. Loubriel will render engineering services related to the cost
to complete inspection to be performed of the Vistas de San Juan
and Golden Triangle Condominiums.
Mr. Loubriel will charge $50 per hour for his services.
Mr. Loubriel received a post-petition retainer in this case in the
amount of $500.
Mr. Loubriel assured the court that he is a "disinterested person",
as defined in 11 U.S.C. Sec. 101(14).
Mr. Loubriel can be reached at:
William R. Loubriel Velez
29W039 Barnes Ave West
Chicago, IL 60185
About Golden Triangle Realty
Golden Triangle Realty S.E. is engaged in activities related to
real estate.
Golden Triangle Realty, S.E. filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. D.P.R. Case No.
24-04514) on Oct. 21, 2024. In the petition signed by David
Santiago Martinez, president, the Debtor disclosed $19,811,659 in
assets and $47,255,382 in liabilities.
Judge Maria De Los Angeles Gonzalez oversees the case.
The Debtor tapped Alexis Fuentes-Hernandez, Esq., as counsel and
Albert Tamarez Vasquez, CPA, at Tamarez CPA, LLC as accountant.
===============
X X X X X X X X
===============
[] Fitch Affirms Ratings on 3 LatAm Oil & Gas Production Cos.
-------------------------------------------------------------
Fitch Ratings has affirmed the ratings for three Latin American oil
and gas production companies and one midstream company and their
related subsidiaries:
1. SierraCol Energy Limited (SierraCol)
2. Hunt Oil Company of Peru L.L.C.,
Sucursal del Peru (HOCP)
3. PERU LNG S.R.L. (PLNG)
4. PRIO S.A. (PRIO)
These actions follow the update of Fitch's "Corporate Rating
Criteria" and "Sector Navigators Addendum to the Corporate Rating
Criteria" on Jan. 9, 2026. The companies' ratings and Outlooks are
unaffected by the criteria changes.
Corporate Rating Tool Inputs and Scores
SierraCol Energy Limited (SierraCol)
Fitch scored the issuer as follows, using its Corporate Rating Tool
(CRT) to produce the Standalone Credit Profile (SCP):
- Business and financial profile factors (assessment, relative
importance): Management (bb, Moderate), Sector Characteristics (bb,
Moderate), Market and Competitive Positioning (b, Moderate),
Diversification and Asset Quality (bb, Moderate), Company
Operational Characteristics (b-, Higher), Profitability (b+,
Moderate), Financial Structure (bbb+, Lower), and Financial
Flexibility (bb+, Moderate).
- The quantitative financial subfactors are based on standard CRT
financial period parameters: 20% weight for the latest historical
year 2024, 40% for the forecast year 2025 and 40% for the forecast
year 2026.
- B+ to CC considerations apply in its analysis and result in no
adjustment.
- The Governance assessment of 'Good' results in no adjustment.
- The Operating Environment assessment of 'bb' results in no
adjustment.
- The SCP is 'b+'.
Fitch made no adjustments to the SCP, resulting in Foreign and
Local Currency IDRs of 'B+'.
Hunt Oil Company of Peru L.L.C., Sucursal del Peru (HOCP)
Fitch scored the issuer as follows, using its Corporate Rating Tool
(CRT) to produce the Standalone Credit Profile (SCP):
- Business and financial profile factors (assessment, relative
importance): Management (bbb, Moderate), Sector Characteristics
(bb, Moderate), Market and Competitive Positioning (bb-, Lower),
Diversification and Asset Quality (bbb-, Moderate), Company
Operational Characteristics (bbb, Higher), Profitability (a-,
Moderate), Financial Structure (bbb+, Moderate), and Financial
Flexibility (bbb-, Moderate).
- The quantitative financial subfactors are based on standard CRT
financial period parameters: 20% weight for the latest historical
year 2024, 40% for the forecast year 2025 and 40% for the forecast
year 2026.
- The Governance assessment of 'Good' results in no adjustment.
- The Operating Environment assessment of 'bbb-' results in no
adjustment.
- The SCP is 'bbb'.
Fitch made no adjustments to the SCP, resulting in a Foreign and
Local Currency IDR of 'BBB'.
PERU LNG S.R.L. (PLNG)
Fitch scored the issuer as follows, using its Corporate Rating Tool
(CRT) to produce the Standalone Credit Profile (SCP):
- Business and financial profile factors (assessment, relative
importance): Management (bb, Lower), Sector Characteristics (b,
Moderate), Market and Competitive Positioning (bb-, Moderate),
Diversification and Asset Quality (b+, Moderate), Company
Operational Characteristics (b+, Moderate), Profitability (b,
Moderate), Financial Structure (bb, Moderate), and Financial
Flexibility (b-, Higher).
- The quantitative financial subfactors are based on standard CRT
financial period parameters: 20% weight for the latest historical
year 2024, 40% for the forecast year 2025 and 40% for the forecast
year 2026.
- Assessments of the quantitative financial subfactors also include
bespoke calculations.
- The Governance assessment of 'Some Deficiencies' results in no
adjustment.
- The Operating Environment assessment of 'bbb-' results in no
adjustment.
- The SCP is 'b'.
Fitch made no adjustments to the SCP, resulting in a Foreign and
Local Currency IDR of 'B'.
PRIO S.A. (PRIO)
Fitch scored the issuer as follows, using its Corporate Rating Tool
(CRT) to produce the Standalone Credit Profile (SCP):
- Business and financial profile factors (assessment, relative
importance): Management (bbb, Moderate), Sector Characteristics (b,
Lower), Market and Competitive Positioning (bbb-, Moderate),
Diversification and Asset Quality (bb, Higher), Company Operational
Characteristics (bb, Moderate), Profitability (bbb, Moderate),
Financial Structure (bb+, Moderate), and Financial Flexibility
(bb+, Moderate).
- The quantitative financial subfactors are based on standard CRT
financial period parameters: 20% weight for the latest historical
year 2024, 40% for the forecast year 2025 and 40% for the forecast
year 2026.
- The Governance Impact assessment of 'Good' results in no
adjustment.
- The Operating Environment Impact assessment of 'bbb' results in
no adjustment.
- The SCP is 'bb+'
Fitch made no adjustments to the SCP, resulting in a Foreign and
Local Currency IDR of 'BB+'.
RATING ACTIONS
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
SierraCol Energy
Arauca, LLC
senior unsecured LT B+ Affirmed RR4 B+
Hunt Oil Company of
Peru L.L.C., Sucursal
del Peru
LT IDR BBB Affirmed BBB
LC LT IDR BBB Affirmed BBB
senior unsecured LT BBB Affirmed BBB
PERU LNG S.R.L.
LT IDR B Affirmed B
LC LT IDR B Affirmed B
senior unsecured LT B Affirmed RR4 B
PRIO Luxembourg
Holding S.A.R.L
LT IDR BB+ Affirmed BB+
senior unsecured LT BB+ Affirmed BB+
senior secured LT BB+ Affirmed BB+
Colombia Energy
Development Co.
senior unsecured LT B+ Affirmed RR4 B+
SierraCol Energy
Limited
LT IDR B+ Affirmed B+
LC LT IDR B+ Affirmed B+
PRIO S.A.
LT IDR BB+ Affirmed BB+
LC LT IDR BB+ Affirmed BB+
SierraCol Energy
Andina, LLC
senior unsecured LT B+ Affirmed RR4 B+
*********
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
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Information contained herein is obtained from sources believed to
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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.
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