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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
Monday, March 16, 2026, Vol. 27, No. 53
Headlines
A R G E N T I N A
ARGENTINA: Consumer Prices in Buenos Aires Up 2.6% in Feb.
PAMPA ENERGIA: Fitch Hikes Long-Term IDR to 'B', Outlook Positive
B R A Z I L
BANCO DO BRASIL: Moody's Affirms Ba1 Deposit Rating, Outlook Stable
BANCO VOTORANTIM: Moody's Affirms 'Ba2' Deposit Ratings
BRAZIL: High Interest Rates Drive Wave of Bankruptcy Filings
CENTRAIS ELETRICAS: Fitch Affirms 'BB-' Issuer Default Ratings
MINERVA S.A.: Fitch Affirms 'BB' Issuer Default Rating
RAIZEN: Secures $12.6 Billion Out-of-Court Debt Restructuring Deal
C A Y M A N I S L A N D S
AUB SUKUK: Fitch Lowers Rating on Sr. Unsecured Notes to 'BB'
ITTIHAD INT'L II: Fitch Affirms 'BB-' Rating on Sr. Unsecured Certs
C O L O M B I A
RUTA AL MAR: Moody's Cuts Rating on Sr. Secured Notes to B3
E C U A D O R
ECUADOR SOCIAL: Fitch Hikes Rating on Class B Notes to 'B-sf'
P E R U
PERU: IDB OKs $130MM-Loan to Improve River Access in the Amazon
P U E R T O R I C O
PHOENIX FUND: Hires Alexis Fuentes-Hernandez as Legal Counsel
PHOENIX FUND: Hires Luis R. Carrasquillo as Financial Consultant
X X X X X X X X
LATAM: CDB Signals Foray Into Regional Health Financing
[] Fitch Affirms Ratings on Three LatAm Airline & Aerospace Cos.
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A R G E N T I N A
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ARGENTINA: Consumer Prices in Buenos Aires Up 2.6% in Feb.
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Buenos Aires Times reports that consumer prices in Buenos Aires
City rose 2.6 percent last month, a deceleration from January,
according to City Hall data.
Residents in the capital have seen prices rise 5.7 percent so far
this year and by 32.4 percent over the last 12 months, according to
Buenos Aires Times.
Housing-related expenses recorded the biggest increase of 5.9
percent, followed by financial services, which rose five percent,
the report notes.
Food prices were up 2.9 percent last month, 0.3 points above
average, the report relays. The hikes were driven by meat and
meat-related products, which surged 7.3 percent, the report notes.
However, fruit and vegetables declined 2.1 percent and 1.1 percent
respectively, the report discloses.
Other notable increases were seen in household equipment (up 3.1
percent), health (three percent), information and communication
(2.4 percent) and personal care items (2.3 percent), the report
says.
Education rose 1.7 percent and restaurants and hotels 1.5 percent,
below the average, the report notes.
Seasonal prices fell 6.5 percent, while regulated prices (utility
and transport tariffs) rose 4.5 percent, 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.
PAMPA ENERGIA: Fitch Hikes Long-Term IDR to 'B', Outlook Positive
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Fitch Ratings has upgraded Pampa Energia S.A.'s (Pampa) Long-Term
Foreign and Local Currency Issuer Default Ratings (IDRs) to 'B'
from 'B-'. Fitch has also upgraded Pampa's senior unsecured notes
to 'B+' from 'B' with a Recovery Rating of 'RR3'. The Rating
Outlook is Positive following the upgrade.
The upgrade reflects Pampa's increasing business diversification
toward oil & gas (O&G) operations. This reduces its exposure to
Compania Administradora del Mercado Mayorista Electrico's (CAMMESA)
counterparty risk and strengthens its financial profile through
higher hard-currency cash flows from oil exports. Fitch forecasts
O&G EBITDA share at 60% by FY26 up from an average of 40% the last
four years and applied its Oil & Gas Production Companies
Navigator.
The Positive Outlook reflects Fitch's view that Pampa's business
profile will benefit from higher oil production and exports.
Pampa's 1P reserves could reach 400 million of barrels of oil
equivalent (mmboe) within 24 months.
Key Rating Drivers
Increasing Diversification: Fitch expects EBITDA contribution from
Pampa's O&G segment to rise to about 60% by end of FY26, driven by
higher shale oil production at the Rincon de Aranda field. Crude
output averaged 17,177 barrels of oil equivalent per day (boe/d) in
4Q25, up from 1,022 boe/d in 1Q25, positioning the company as the
ninth-largest crude producer in Argentina. Higher O&G EBITDA
reduces exposure to CAMMESA and supports Pampa's financial profile
through stronger hard-currency cash flow generation, as the company
now exports around 30% of its crude oil production.
Fitch projects consolidated EBITDA of about USD1.1 billion and
estimates total production will average around 112,600 boe/d by end
of FY26, with a mix of 24% oil and 76% gas. This production scale
is consistent with the low end of the 'BB' category, between 75,000
boe/d and 125,000 boe/d.
Operating Environment: Pampa's operations are concentrated in in
Argentina, which has experienced challenging economic conditions.
Fitch assesses Pampa's Operating Environment (OE) as 'b', resulting
in a -1 notch adjustment to the pre-OE Standalone Credit Profile
(SCP). Fitch expects Pampa to maintain a conservative financial
profile supported by low leverage ratios and strong liquidity
position, underpinned by higher exports cash flows, and these are
key credit considerations to help to mitigate the OE volatilities.
Negative FCF: Fitch expects FCF to be negative in 2026-2027 at
around USD237 million on average as Pampa deploys a capex plan of
about USD2.4 billion. Most capex will be directed to development of
the Rincon de Aranda shale oil project. The company plans to fund
capex with cash on hand and cash flows from its power generation
business, which benefits from strong contracts. Fitch projects cash
flow from operations (CFO) of approximately USD830 million in FY26
and USD1.1 billion in FY27
Strong Capital Structure: Fitch expects Pampa's gross leverage to
be around or below 2.0x over the rating horizon. EBITDA should
approach USD1.1 billion and USD1.4 billion, in FY26 and FY27,
respectively, with the power generation and E&P segments each
representing roughly 40% and 60% of EBITDA, respectively. Fitch
estimates FY25 gross leverage was 2.4x and net leverage was 1.0x,
while EBITDA was USD775 million. Fitch anticipates Pampa's EBITDA
interest coverage will remain around 5.0x on average in 2026-2028.
Notching on Senior Notes: Under Fitch's Country-Specific Treatment
of Recovery Ratings Criteria, Argentina's Group D treatment
constrains the achievable Recovery Rating at 'RR4'. However, Fitch
believes the recovery prospects for Pampa are higher than the
expected recovery of 31%-50% for the 'RR4' band. This is based on
Fitch's bespoke recovery analysis for each individual issuer as
well as precedents of debt exchange offerings were driven by
capital control restriction put in place by the Argentine Central
Bank. Fitch therefore has assigned an 'RR3', which supports a
one-notch uplift to the notes from Pampa's 'B' FC IDR.
Peer Analysis
Pampa's ratings reflect its improved business diversification and
increased O&G operating scale, with expected total production of
112,600 boe/d. This is in line with the low-end metric of the 'BB'
category, where close peers are Vista Energy Argentina S.A.U.'s
(BB-/Stable), Tecpetrol S.A. (TECPESA; BB-/Stable), Pan American
Energy, S.L. (PAE; BB-/Stable) and Pluspetrol S.A. (PPSA;
BB/Stable). Pampa's generation business compares with those of AES
Argentina Generacion S.A. (CCC+) and MSU Energy (CCC+). In
integrated energy, Pampa's closest peer is Capex S.A. (B-/Stable).
Pampa's total expected production in FY26 and 1P reserves of 296
mmboe as of FY25 are consistent with the high-end of the 'B'
category, below that of Vista Argentina's 145,000 boe/d and 588
mmboe; TECPESA's 190,000 boe/d and 633 mmboe and PPSA's 114,000
boe/d and 700 mmboe, respectively.
Pampa's operations are concentrated in Argentina, which is a
limiting factor for its rating as the operating environment of 'b'
poses higher risks compared to its peers. This is the same case for
Vista Argentina, PAE, TECPESA and PPSA, but whose business profiles
reflect a higher scale and larger export revenue than Pampa's.
Fitch expects Pampa's EBITDA leverage to remain below 2.0x
throughout the rating cycle, better positioned compared to its
peers, where Fitch expects the average leverage of these E&P
companies in Argentina to average 3.0x over the next three years.
On a boe basis, Fitch estimates Pampa's FY25 total debt to 1P at
$6.4/boe.
Fitch’s Key Rating-Case Assumptions
- Daily oil production average: 26,900 boe/d in FY26, 40,600 boe/d
in FY27 and 41,700 boe/d in FY28;
- Daily gas production average: 85,700 boe/d in FY26, 95,200 boe/d
in FY27 and 108,000 boe/d in FY28;
- Average realized natural gas price of USD3.40 per million Btu,
flat over the rated horizon under Plan Gas;
- Average Brent crude oil price of USD63 per barrel in FY26 and
FY27, $60 in FY28;
- Fitch average and end of period ARS/USD exchange rates;
- Accumulated capex of USD3.2 billion between FY26-FY28 period;
- No dividends.
Corporate Rating Tool Inputs and Scores
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, Lower), Sector Characteristics (bb-,
Moderate), Market and Competitive Positioning (bb-, Moderate),
Diversification and Asset Quality (b, Moderate), Company
Operational Characteristics (b+, Higher), Profitability (b+,
Moderate), Financial Structure (a+, Lower), and Financial
Flexibility (b+, Moderate).
- The quantitative financial subfactors are based on custom CRT
financial period parameters: 10% weight for the forecast year 2025,
30% for the forecast year 2026, 30% for the forecast year 2027 and
30% for the forecast year 2028.
- 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 'b' results in an
adjustment of -1 notch(es).
- The SCP is 'b'.
Fitch made no adjustments to the SCP, resulting in a Foreign and
Local Currency IDR of 'B'.
Recovery Analysis
KEY RECOVERY RATING ASSUMPTIONS
The recovery analysis assumes that Pampa would be a going concern
(GC) in bankruptcy and that it would be reorganized rather than
liquidated.
GC Approach:
- A 10% administrative claim.
- The GC EBITDA is estimated at USD900 million. The GC EBITDA
estimate reflects Fitch's view of a sustainable,
post-reorganization EBITDA level upon which Fitch bases the
valuation of Pampa.
- EV multiple of 5.0x.
Argentina is assigned to Group D, as per the Country Groups
specified in Fitch's "Country-Specific Treatment of Recovery
Ratings Criteria," where the assigned Recovery Ratings are capped
at 'RR4'.
Fitch believes the recovery prospects for Pampa are higher than the
expected recovery of 31%-50% for the 'RR4' band. This is based on
Fitch's bespoke recovery analysis for each individual issuer as
well as precedents of debt exchange offerings were driven by
capital control restriction put in place by the Argentine Central
Bank. In all cases, the calculated recovery was higher than the
expected recovery of 51%-70% for the 'RR3' band, but Fitch capped
the Recovery Ratings at 'RR3' to reflect a less predictable range
of outcomes.
A Recovery Rating of 'RR3' supports a one-notch uplift for the
instrument rating from the issuer's FC IDR.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- A deterioration of Argentina's Operating Environment;
- Total production below 45,000 boe/d;
- O&G segment EBITDA contributing less than 50% of total;
- 1P reserve life consistently below 7 years;
- Significant delays in payments that negatively affect working
capital, liquidity and leverage, or revision of existing contracts
with CAMMESA;
- Amendments to capital control rules that weaken the company's
ability to access capital and refinance debt;
- Significant deterioration of credit metrics, with total
debt/EBITDA of 4.5x or more.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- An improvement in Argentina's Operating Environment;
- 1P Reserves above consistently 400 mmboe while keeping reserve
life above 7 years;
- Sustained positive FCF over the rating horizon;
- Contracted exports with high quality off-takers, or PPAs with
non-regulated customers, with a long-term tenure with adequate
legal protections to avoid interference from the federal
government.
Liquidity and Debt Structure
Pampa has a track record of holding solid cash position. Fitch
expects it to proactively manage exposure to refinancing risks
while funding its negative FCF over the next two years.
The company reported consolidated cash and equivalents of USD725
million and marketable securities of USD366 million at 4Q25, which
contrasts with short term debt of USD31 million. Total debt was
USD2 billion as of FY25 and was mainly composed by senior notes and
bank loans.
Pampa's interest expense coverage should average 9.0x over the
rating horizon compared to 5.0x during the 2022-2025 period. The
company's debt and interest expense are predominately in U.S.
dollars, and Fitch's rating case assumes it will continue to access
the official exchange to service its debt.
Issuer Profile
Pampa is the largest independent energy integrated company in
Argentina. Pampa and its subsidiaries are engaged in generation and
transmission of electricity in Argentina, and oil and gas
exploration and production, refining, petrochemicals and
hydrocarbon commercialization and transportation in Argentina.
Criteria Variation
Fitch has applied a variation from its "Country-Specific Treatment
of Recovery Ratings Criteria," specifically the section titled:
"When an Instrument Enters a Distressed or Defaulted State." The
criteria allow a Recovery Rating to be assigned above the defined
cap for distressed issuers when Fitch has reason to believe that
recoveries in an individual case would be consistent with a higher
Recovery Rating.
As a result, Fitch has extended this analytical approach to select
Argentine-based corporates rated 'B' and 'B-' and assigned a 'RR3'
above the cap of 'RR4' of Group D countries (Argentina).
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Sector Forecasts Monitor
data file which aggregates key data points used in its credit
analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
Climate Vulnerability Signals
The results of its Climate.VS screener did not indicate an elevated
risk for Pampa Energia S.A.
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 Recovery Prior
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Pampa Energia S.A. LT IDR B Upgrade B-
LC LT IDR B Upgrade B-
senior unsecured LT B+ Upgrade RR3 B
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B R A Z I L
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BANCO DO BRASIL: Moody's Affirms Ba1 Deposit Rating, Outlook Stable
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Moody's Ratings has affirmed Banco do Brasil S.A.'s (BB) long- and
short-term local and foreign currency deposit ratings at Ba1 and
Not Prime, respectively, following the affirmation of the bank's
Baseline Credit Assessment (BCA) and Adjusted BCA at ba1. Moody's
also affirmed the bank's long- and short-term local and foreign
currency Counterparty Risk Ratings at Baa3 and Prime-3,
respectively, and long- and short-term Counterparty Risk
Assessments (CRA) at Baa3(cr) and Prime-3(cr), respectively. The
outlook on the long-term bank deposit ratings remains stable.
In addition, Moody's also affirmed Banco do Brasil S.A. (Cayman)'s
(Cayman Branch) foreign currency senior unsecured debt and MTN
program ratings at Ba1 and (P)Ba1, respectively, and foreign
currency preferred stock non-cumulative debt rating at B1 (hyb).
Moody's also affirmed the Cayman Branch's long- and short-term
local and foreign currency Counterparty Risk Ratings at Baa3 and
Prime-3, respectively, and long- and short-term Counterparty Risk
Assessments (CRA) at Baa3(cr) and Prime-3(cr), respectively. The
outlook on the senior unsecured rating remains stable.
RATINGS RATIONALE
The affirmation of BB's ba1 BCA reflects Moody's assessments that
its financial profile has continued to support the bank in
overcoming credit challenges that intensified in 2024-25, including
heightened loan delinquency and a reduction in profitability,
particularly compared to metrics reported in 2021-23. Among BB's
credit strengths are its resilient capital position, access to a
large volume of stable funding and ample holdings of liquid
assets.
BB's largely diversified product base and efforts to control
operating expenses have also contributed to the partial recovery of
net income the bank reported in Q4 2025. Despite that, bottom-line
results remained well below volumes posted between Q4 2022 and Q4
2024. As such, Moody's views that BB's profitability measured as
net income to total assets is still pressured by a large amount of
loan-loss provisions. In December 2025, the ratio was 0.87%, down
from 1.61% in the previous year. Looking ahead, Moody's expects
profitability to undergo a gradual recovery, reflecting a
conservative origination of new loans by the bank in 2026 and
provision expenses that will likely remain elevated for two to
three quarters, before asset quality metrics show consistent
improvement.
In December 2025, BB continued to report high volume of problem
loans, particularly associated with high delinquency in its
portfolio of rural loans. The bank's ratio of Stage 3 loas to gross
loans was 8.3%, just 10 basis points lower than in the previous
quarter and at the same level as in June 2025. BB's 90-day
nonperforming loan (NPL) ratio was 5.2% in December 2025, up from
3.2% in the previous year. To assist in mitigating credit risk, the
bank kept expected losses expenses at 96.5% of Stage 3 loans.
Going forward, BB's asset quality will improve slowly as the bank
renegotiates loans through its credit line BB Regulariza Agro,
which was launched based on Presidential Decree 1,314/2025. The
credit line includes a grace period of one year and extends the
terms of original loans up to nine years, and originates new loans
in the rural segment. In both cases, the bank is requesting
borrowers provides fiduciary liens as collateral. Even so, the now
longer period for loan write-offs under IFRS 9 as opposed to former
regime of incurred losses in Brazil means BB's stock of Stage 3
loans will decline more gradually over time. Moody's expects BB's
asset quality metrics will still be high by year-end 2026.
Capitalization remains a strength for the bank's financial profile.
In December 2025, Moody's ratio of tangible common equity to
risk-weighted assets for BB was 10.0%, while its regulatory common
equity tier 1 (CET1) ratio stood at 12.2%. The bank will likely
maintain dividend payouts at a 30% to sustain capital at a stable
level. The bank's funding and liquidity profiles will also remain
robust in the next 12 months, reflecting a high volume of demand
and savings that BB access a nationwide footprint and its status as
a government-owned institution.
BB's Ba1 long-term local and foreign currency deposit ratings, as
well as its foreign currency senior unsecured debt rating,
incorporate Moody's assessments of the highest degree of support
from the Government of Brazil (Brazil, Ba1 stable), its main
shareholder, and the bank's systemic importance. However, this
support does not result in any rating uplift, as BB's BCA is
already aligned with Brazil's Ba1 sovereign rating. The senior
unsecured ratings carry a stable outlook, consistent with the
outlook on the sovereign.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade of BB's long-term deposit and senior unsecured debt
ratings is unlikely, as they are currently aligned with Brazil's
sovereign rating. This reflects the strong credit linkages between
the sovereign and the bank. BB's BCA could be upgraded if Brazil's
sovereign rating is raised and, simultaneously, the bank
demonstrates a material improvement in asset quality and
profitability, thereby continuing to support its loss-absorbing
capital buffers.
Conversely, downward pressure on BB's BCA could result from
sustained deterioration in asset quality and profitability metrics,
which would weaken the bank's capacity to absorb credit losses.
Given its status as a government-backed entity, BB's deposit and
debt ratings would also face downward pressure in the event of a
downgrade of Brazil's sovereign rating.
The principal methodology used in these ratings was Banks published
in November 2025.
The net effect of any adjustments applied to rating factor scores
or scorecard outputs under the primary methodology(ies), if any,
was not material to the ratings addressed in this announcement.
BANCO VOTORANTIM: Moody's Affirms 'Ba2' Deposit Ratings
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Moody's Ratings has affirmed all ratings and assessments assigned
to Banco Votorantim S.A. (BV), including the bank's Ba2/Not Prime
long-term and short-term local and foreign currency deposit ratings
as well as its foreign currency senior unsecured MTN Program and
other short-term debt ratings (P)Ba2 and (P)Not Prime,
respectively. Moody's have also affirmed the bank's ba3 baseline
credit assessment (BCA), ba2 adjusted BCA, Ba1/Not Prime long-term
and short-term local and foreign currency counterparty risk
ratings, and Ba1(cr)/Not Prime(cr) long-term and short-term
counterparty risk assessments. The outlook on the long-term
deposits ratings remains stable.
As part of the rating action, Moody's have also affirmed all
ratings and assessments assigned to Banco Votorantim S.A.,
Luxembourg Branch, including its Ba2 and (P)Ba2 foreign currency
senior unsecured debt and MTN program ratings, Ba1/Not Prime
long-term and short-term local and foreign currency Counterparty
Risk Ratings, and Ba1(cr)/Not Prime(cr) long-term and short-term
Counterparty Risk Assessments. The outlook on the senior unsecured
rating assigned to the bank's Luxembourg branch also remains
stable.
RATINGS RATIONALE
BV's ba3 BCA reflects its solid track record in managing the credit
risks of a portfolio largely composed of higher-risk loans,
alongside increasing business diversification that is gradually
strengthening revenue over the past 5 years.. The BCA also
incorporates BV's adequate liquidity profile, a diversified funding
mix, and prudent asset-liability management that help mitigate
risks stemming from its reliance on less stable funding sources.
With a solid position in the pre-owned light vehicles financing
segment, which accounted for 48% of its loan book in 2025, the
bank's financial fundamentals are more exposed to cyclical
pressures. In 2025, non-performing auto loans over 90 days
increased by 70 bps to 5.3%, compared with a 5.8% banking system
average for the same product. BV has been pursuing diversification
by broadening its consumer finance offerings through digital
channels and new partnerships, a shift that has been supporting
earnings and credit risk diversification. The strategy prioritizes
growth in secured products, particularly light car-equity and
heavy-vehicle financing, but also entails expansion into unsecured
and higher-risk segments, including credit cards and motorcycle
loans. Loan-loss reserves remained strong at 121% of stage 3
exposures at the end of 2025, providing a buffer amid an operating
environment still characterized by elevated household
indebtedness.
BV's net income to tangible banking assets stood at 1.4% in 2025,
supported by double-digit growth in higher-yielding consumer loans,
contained credit and operating costs, and stronger fee income
activities. Earnings quality and recurrence are set to improve as
the bank gradually advances its strategy to leverage a broader
product offering and technology investments to expand both
cross-selling and its customer base.
BV's ba3 BCA is constrained by a low tangible common equity (TCE)
to risk weighted assets (RWAs) ratio that stood at 7% in December
2025, well below the average ratio for similarly rated banks. The
large stock of deferred tax assets (DTAs) held by BV, which Moody's
partly deduct from common equity, is the main factor limiting
capitalization. However, BV's regulatory common equity tier 1
(CET1) ratio of 12.8% in 2025 remained broadly in line with peers
and provides adequate capacity to absorb unexpected losses, as well
as the phased implementation of IFRS provisions and other
regulatory requirements through 2028.
The stable outlook reflects Moody's expectations that BV's
financial profile will remain consistent with a ba3 BCA over the
next 12–18 months, underpinned by adequate liquidity, steady
access to term funding, and resilient asset quality through
economic cycles.
BV's Ba2 ratings incorporate a one-notch uplift to incorporate
Moody's assessments of high probability of affiliate support from
its shareholder Banco do Brasil S.A. (BB, Ba1 stable, ba1).
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
BV's BCA could be upgraded if the bank reports a sustained
improvement in business diversification and capitalization.
Conversely, downward pressures to BV's BCA and ratings could arise
from sharp asset quality deterioration over the outlook horizon,
resulting in consistent weakening of its capital position, or a
significant decline in liquid profile and funding quality.
The principal methodology used in these ratings was Banks published
in November 2025.
The net effect of any adjustments applied to rating factor scores
or scorecard outputs under the primary methodology(ies), if any,
was not material to the ratings addressed in this announcement.
BRAZIL: High Interest Rates Drive Wave of Bankruptcy Filings
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BNAmericas.com reports that Brazil has seen an increase in the
volume of judicial restructurings, including those involving large
business groups.
The number of companies in Brazil under bankruptcy protection
reached 5.680 at the end of 2025, compared with a total of 4.233
companies, according to data from RGF Associados, a company
specialized in judicial recovery, according to the report.
Currently, the interest rate in Brazil is at 15%, the highest level
since mid-2006, amid the Central Bank's attempt to keep inflation
within the target set by the monetary authority, the report notes.
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.
CENTRAIS ELETRICAS: Fitch Affirms 'BB-' Issuer Default Ratings
--------------------------------------------------------------
Fitch Ratings has affirmed the ratings of nine groups in the
Brazilian electricity sector and their related subsidiaries. These
actions follow the update of Fitch's "Corporate Rating Criteria"
and the "Sector Navigators Addendum to the Corporate Rating
Criteria" on Jan. 9, 2026. The companies' ratings and Rating
Outlooks are unaffected by the criteria changes.
Key Rating Drivers
For full key ratings drivers for each issuer, see the RACs listed
below:
CPFL Energia S.A.
"Fitch Assigns CPFL Energia 'BBB' Long-Term IDR", dated Oct. 1,
2025
Energisa S.A.
"Fitch Affirms Energisa and Subsidiaries' Ratings", dated May 12,
2025
Companhia Energetica de Minas Gerais (CEMIG)
Cemig Distribuicao S.A.
Cemig Geracao e Transmissao S.A.
"Fitch Affirms Cemig's IDRs at 'BB'", dated Oct. 6, 2025
Centrais Eletricas Brasileiras S.A. (Axia Energia)
"Fitch Revises Axia Energia's Outlook to Positive, Affirms Ratings
at 'B-'", dated Nov. 17, 2025
Transmissora Alianca de Energia Eletrica S.A.
"Fitch Affirms Taesa's IDRs at 'BB+', Outlook Stable", dated Dec.
4, 2025
Alupar Investimento S.A
Alupar Chile Inversiones SpA
"Fitch Affirms Alupar's Ratings", dated Dec. 23, 2025
Light S.A.
Light Servicos de Eletricidade S.A. (Light Sesa)
Light Energia S.A. (Light Energia)
"Fitch Affirms Light's IDRs at 'D'/'D(bra)'", dated May 7, 2024
Auren Energia S.A.
"Fitch Affirms Auren's FC and LC IDRs at 'BB+' and 'BBB-'", dated
Dec. 30, 2025
Engie Brasil Energia S.A
"Fitch Affirms Engie Brasil's Ratings, Outlook Stable", dated Feb.
4, 2025
Peer Analysis
Refer to the RAC for each issuer.
Fitch’s Key Rating-Case Assumptions
Refer to the RAC for each issuer.
Corporate Rating Tool Inputs and Scores
CPFL Energia S.A.
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+, Lower), Sector Characteristics
(bbb-, Moderate), Market and Competitive Positioning (bb+,
Moderate), Diversification and Asset Quality (bbb+, Moderate),
Company Operational Characteristics (bbb-, Moderate), Profitability
(bb+, Moderate), Financial Structure (bbb+, Moderate), and
Financial Flexibility (bb, 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.
- The Governance assessment of 'Good' results in no adjustment.
- The Operating Environment assessment of 'bb' results in no
adjustment.
- The SCP is 'bb+'.
To derive the IDR:
- Application of Fitch's Parent Subsidiary Linkage Considerations
Rating Criteria results in 'BBB', reflecting a bottom-up + 2
approach.
Energisa S.A.
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, Lower), Sector Characteristics (bbb-,
Moderate), Market and Competitive Positioning (bb+, Moderate),
Diversification and Asset Quality (bbb+, Moderate), Company
Operational Characteristics (bbb-, Moderate), Profitability (bb+,
Moderate), Financial Structure (bbb, Moderate), and Financial
Flexibility (bb, 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.
- The Governance Impact assessment of 'Good' results in no
adjustment.
- The Operating Environment Impact assessment of 'bb' results in no
adjustment.
- The SCP is 'bb+'.
- Fitch made no adjustments to the SCP, resulting in an IDR of
'BB+'.
Companhia Energetica de Minas Gerais (CEMIG)
Cemig Distribuicao S.A.
Cemig Geracao e Transmissao S.A.
Fitch scored the issuers 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
(bbb-, Moderate), Market and Competitive Positioning (bb+, Lower),
Diversification and Asset Quality (bbb, Moderate), Company
Operational Characteristics (bb+, Moderate), Profitability (bb+,
Moderate), Financial Structure (bbb+, Moderate), and Financial
Flexibility (bb, Higher).
- The quantitative financial subfactors are based on custom CRT
financial period parameters: 10% weight for the historical year
2024, 10% for the forecast year 2025, 40% for the forecast year
2026 and 40% for the forecast year 2027.
- The Governance assessment of 'Some Deficiencies' results in an
adjustment of -1 notch.
- The Operating Environment assessment of 'bb' results in no
adjustment.
- The SCP is 'bb'.
- Fitch made no adjustments to the SCP, resulting in an IDR of
'BB'.
Centrais Eletricas Brasileiras S.A.'s (Axia Energia)
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, Lower), Sector Characteristics (bbb-,
Moderate), Market and Competitive Positioning (bb+, Moderate),
Diversification and Asset Quality (bbb+, Lower), Company
Operational Characteristics (b+, Higher), Profitability (bb-,
Moderate), Financial Structure (bb, Moderate), and Financial
Flexibility (bb-, 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.
- The Governance Impact assessment of 'Good' results in no
adjustment.
- The Operating Environment Impact assessment of 'bb' results in no
adjustment.
- The SCP is 'bb-'.
- Fitch made no adjustments to the SCP, resulting in an IDR of
'BB-'.
Transmissora Alianca de Energia Eletrica S.A.
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, Lower), Sector Characteristics (bbb,
Moderate), Market and Competitive Positioning (bbb, Lower),
Diversification and Asset Quality (bbb, Moderate), Company
Operational Characteristics (bbb-, Moderate), Profitability (bbb-,
Moderate), Financial Structure (bbb-, Moderate), and Financial
Flexibility (bb-, 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.
- The Governance assessment of 'Good' results in no adjustment.
- The Operating Environment assessment of 'bb' results in no
adjustment.
- The SCP is 'bb+'.
To derive the IDR:
- Country ceiling considerations apply and result in an adjustment
of -1 notch for the FC IDR.
Alupar Investimento S.A
Alupar Chile Inversiones SpA
Fitch scored the issuers 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, Lower), Sector Characteristics (bbb,
Moderate), Market and Competitive Positioning (bbb, Lower),
Diversification and Asset Quality (bbb, Moderate), Company
Operational Characteristics (bbb-, Moderate), Profitability (bbb-,
Moderate), Financial Structure (bbb-, Moderate), and Financial
Flexibility (bb+, 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.
- The Governance assessment of 'Good' results in no adjustment.
- The Operating Environment assessment of 'bb' results in no
adjustment.
- The SCP is 'bbb-'.
To derive the IDR:
- Country ceiling considerations apply and result in an adjustment
of -1 notch for the FC IDR.
Light S.A.
Light Servicos de Eletricidade S.A. (Light Sesa)
Light Energia S.A. (Light Energia)
Fitch scored the issuers as follows, using its Corporate Rating
Tool (CRT) to produce the Standalone Credit Profile (SCP):
- Business and financial profile factors (assessment, relative
importance): Management (ccc+, Higher), Sector Characteristics
(bbb-, Lower), 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 (ccc-, 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.
- Weakest link considerations adjustment is applied based on Access
to Capital factor and results in an adjustment of -3 notch(es).
- The Governance assessment of 'Some Deficiencies' results in an
adjustment of -1 notch.
- The Operating Environment assessment of 'bb' results in an
adjustment of -2 notch(es).
- The SCP is 'd or rd'.
- Fitch made no adjustments to the SCP, resulting in an IDR of
'D'.
Auren Energia S.A.
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-, Lower), Sector Characteristics
(bbb-, Moderate), Market and Competitive Positioning (bbb-,
Moderate), Diversification and Asset Quality (bbb-, Moderate),
Company Operational Characteristics (bbb-, Higher), Profitability
(bb, Moderate), Financial Structure (b, Higher), and Financial
Flexibility (bb-, Moderate).
- The quantitative financial subfactors are based on custom CRT
financial period parameters: 20% weight for the forecast year 2025,
30% for the forecast year 2026, 30% for the forecast year 2027 and
20% for the forecast year 2028.
- The Governance Impact assessment of 'Good' results in no
adjustment.
- The Operating Environment Impact assessment of 'bb' results in no
adjustment.
- The SCP is 'bb-'.
To derive the IDR:
- Application of Fitch's Parent Subsidiary Linkage Considerations
Rating Criteria results in 'BBB-', reflecting a top-down -1
approach.
- Country ceiling considerations apply and result in an adjustment
of -1 notch for the FC IDR.
Engie Brasil Energia S.A
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+, Lower), Sector Characteristics
(bbb-, Moderate), Market and Competitive Positioning (bb+,
Moderate), Diversification and Asset Quality (bbb, Moderate),
Company Operational Characteristics (bbb-, Higher), Profitability
(bb, Moderate), Financial Structure (bbb-, Higher), 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 'bb' results in no
adjustment.
- The SCP is 'bbb-'.
To derive the IDR:
- Country ceiling considerations apply and result in an adjustment
of -1 notch for the FC IDR.
Recovery Analysis
Refer to the RAC for each issuer.
RATING SENSITIVITIES
Refer to the RAC for each issuer.
Liquidity and Debt Structure
Refer to the RAC for each issuer.
Issuer Profile
Refer to the RAC for each issuer.
Summary of Financial Adjustments
Refer to the RAC for each issuer.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Sector Forecasts Monitor
data file which aggregates key data points used in its credit
analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
Climate Vulnerability Signals
The results of its Climate.VS screener did not indicate an elevated
risk for CPFL Energia S.A., Energisa S.A., Energisa Minas Rio -
Distribuidora de Energia S.A., Energisa Paraiba - Distribuidora de
Energia S/A or Energisa Paraiba - Distribuidora de Energia S/A.,
Companhia Energetica de Minas Gerais (CEMIG), Cemig Distribuicao
S.A., Cemig Geracao e Transmissao S.A., Alupar Investimento S.A.,
Alupar Chile Inversiones SpA., Centrais Eletricas Brasileiras S.A.
(Axia), Transmissora Alianca de Energia Eletrica S.A., Light S.A.,
Light Servicos de Eletricidade S.A., Light Energia S.A., Engie
Brasil Energia S.A. or Auren Energia S.A.
ESG Considerations
Refer to the RAC for each issuer.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Cemig Geracao e
Transmissao S.A. LT IDR BB Affirmed BB
LC LT IDR BB Affirmed BB
Energisa Sergipe –
Distribuidora de
Energia S/A LT IDR BB+ Affirmed BB+
LC LT IDR BB+ Affirmed BB+
Transmissora
Alianca de Energia
Eletrica S.A. LT IDR BB+ Affirmed BB+
LC LT IDR BB+ Affirmed BB+
Cemig Distribuicao
S.A. LT IDR BB Affirmed BB
LC LT IDR BB Affirmed BB
Light Servicos de
Eletricidade S.A. LT IDR D Affirmed D
LC LT IDR D Affirmed D
Light Energia S.A. LT IDR D Affirmed D
LC LT IDR D Affirmed D
senior
unsecured LT C Affirmed RR4 C
Centrais Eletricas
Brasileiras S.A.
(Eletrobras) LT IDR BB- Affirmed BB-
LC LT IDR BB- Affirmed BB-
Energisa Paraiba –
Distribuidora de
Energia S/A LT IDR BB+ Affirmed BB+
LC LT IDR BB+ Affirmed BB+
Light S.A. LT IDR D Affirmed D
LC LT IDR D Affirmed D
Engie Brasil
Energia S.A. LT IDR BB+ Affirmed BB+
LC LT IDR BBB- Affirmed BBB-
Alupar
Investimento S.A. LT IDR BB+ Affirmed BB+
LC LT IDR BBB- Affirmed BBB-
Energisa Minas Rio –
Distribuidora de
Energia S.A. LT IDR BB+ Affirmed BB+
LC LT IDR BB+ Affirmed BB+
Energisa S.A. LT IDR BB+ Affirmed BB+
LC LT IDR BB+ Affirmed BB+
Alupar Chile
Inversiones SpA LT IDR BB+ Affirmed BB+
LC LT IDR BBB- Affirmed BBB-
Auren Energia S.A. LT IDR BB+ Affirmed BB+
LC LT IDR BBB- Affirmed BBB-
Companhia
Energetica de Minas
Gerais (CEMIG) LT IDR BB Affirmed BB
LC LT IDR BB Affirmed BB
CPFL Energia S.A. LT IDR BBB Affirmed BBB
LC LT IDR BBB Affirmed BBB
MINERVA S.A.: Fitch Affirms 'BB' Issuer Default Rating
------------------------------------------------------
Fitch Ratings has affirmed five Latin and North American protein
companies' ratings and their related subsidiaries. These actions
follow the update of Fitch's "Corporate Rating Criteria" and the
"Sector Navigators Addendum to the Corporate Rating Criteria" on
Jan. 9, 2026. The companies' ratings and Ratings Outlooks are
unaffected by the criteria changes.
Key Rating Drivers
For full key ratings drivers for each issuer, see the RACs listed
below:
Agrosuper S.A.
"Fitch Affirms Agrosuper S.A.'s Ratings at 'BBB-'; Outlook Stable,"
dated Dec. 9, 2025
JBS N.V.
"Fitch Assigns 'BBB-' Rating to JBS N.V.'s IDRs; Outlook Stable,"
dated Nov. 19, 2025
Marfrig Global Foods S.A.
"Fitch Affirms Marfrig's IDR at 'BB+; Outlook Stable," dated April
11, 2025
Minerva S.A.
"Fitch Affirms Minerva's IDRs at 'BB' and Upgrades National Scale
Rating to 'AAA(bra)'," dated Aug. 20, 2025
Pilgrim's Pride Corporation
"Fitch Affirms Pilgrim's Pride Corp. at 'BBB-'; Outlook Stable,"
dated May 19, 2025
Refer to the RAC for each issuer.
Peer Analysis
Refer to the RAC for each issuer.
Fitch's Key Rating-Case Assumptions
Refer to the RAC for each issuer.
Corporate Rating Tool Inputs and Scores
Agrosuper S.A.
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, Lower), Sector Characteristics (bbb-,
Moderate), Market and Competitive Positioning (bb+, Moderate),
Diversification and Asset Quality (bb, Higher), Company Operational
Characteristics (bbb-, Moderate), Profitability (bbb, 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 2025, 40% for the forecast year 2026 and 40% for the forecast
year 2027.
- The Governance Impact assessment of 'Good' results in no
adjustment.
- The Operating Environment Impact assessment of 'a-' results in no
adjustment.
- The SCP is 'bbb-'.
Fitch made no adjustments to the SCP, resulting in a Local and
Foreign Currency IDR of 'BBB-'.
JBS N.V./JBS S.A./JBS USA Holding Lux S.a.r.l
Fitch scored the issuer as follows, using its CRT to produce the
SCP:
- Business and financial profile factors (assessment, relative
importance): Management (bbb, Lower), Sector Characteristics (bbb-,
Moderate), Market and Competitive Positioning (bbb+, Moderate),
Diversification and Asset Quality (bbb+, Higher), Company
Operational Characteristics (bbb, Moderate), Profitability (bbb-,
Moderate), Financial Structure (bb+, 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 Impact assessment of 'Some Deficiencies' results
in an adjustment of -1 notch.
- The Operating Environment Impact assessment of 'a' results in no
adjustment.
- The SCP is 'bbb-'.
Fitch made no adjustments to the SCP, resulting in an IDR of
'BBB-'.
Marfrig Global Foods S.A.
Fitch scored the issuer as follows, using its CRT to produce the
SCP:
- Business and financial profile factors (assessment, relative
importance): Management (bbb-, Lower), Sector Characteristics
(bbb-, Moderate), Market and Competitive Positioning (bbb,
Moderate), Diversification and Asset Quality (bbb, Moderate),
Company Operational Characteristics (bb+, Moderate), Profitability
(bbb, Moderate), Financial Structure (bb, Higher), 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 Impact assessment of 'Good' results in no
adjustment.
- The Operating Environment Impact assessment of 'a-' results in no
adjustment.
- The SCP is 'bb+'.
Fitch made no adjustments to the SCP, resulting in a Local and
Foreign Currency IDR of 'BB+'.
Minerva S.A.
Fitch scored the issuer as follows, using its CRT to produce the
SCP:
- Business and financial profile factors (assessment, relative
importance): Management (bbb, Lower), Sector Characteristics (bbb-,
Moderate), Market and Competitive Positioning (bb, Moderate),
Diversification and Asset Quality (bb-, Moderate), Company
Operational Characteristics (bb+, Moderate), Profitability (bbb+,
Moderate), Financial Structure (bb-, Higher), and Financial
Flexibility (bb+, Moderate).
- The quantitative financial subfactors are based on custom CRT
financial period parameters: 10% weight for the historical year
2024, 30% for the forecast year 2025, 30% for the forecast year
2026 and 30% for the forecast year 2027.
- 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 Local and
Foreign Currency IDR of 'BB'.
Pilgrim's Pride Corporation
Fitch scored the issuer as follows, using its CRT to produce the
SCP:
- Business and financial profile factors (assessment, relative
importance): Management (bbb, Lower), Sector Characteristics (bbb-,
Moderate), Market and Competitive Positioning (bbb, Moderate),
Diversification and Asset Quality (bbb-, Higher), Company
Operational Characteristics (bbb, Moderate), Profitability (bbb+,
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 2025, 40% for the forecast year 2026 and 40% for the forecast
year 2027.
- The Governance Impact assessment of 'Some Deficiencies' results
in an adjustment of -1 notch.
- The Operating Environment Impact assessment of 'a' results in no
adjustment.
- The SCP is 'bbb-'.
Fitch made no adjustments to the SCP, resulting in an IDR of
'BBB-'.
RATING SENSITIVITIES
Refer to the RAC for each issuer.
Liquidity and Debt Structure
Refer to the RAC for each issuer.
Issuer Profile
Refer to the RAC for each issuer.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Sector Forecasts Monitor
data file which aggregates key data points used in its credit
analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
Climate Vulnerability Signals
The results of its Climate.VS screener did not indicate an elevated
risk for Agrosuper S.A., JBS N.V., Marfrig Global Foods S.A.,
Minerva S.A. or Pilgrim's Pride Corporation.
ESG Considerations
Refer to the RAC for each issuer.
Entity/Debt Rating Prior
----------- ------ -----
JBS S.A. LT IDR BBB- Affirmed BBB-
LC LT IDR BBB- Affirmed BBB-
JBS USA Holding
Lux S.a.r.l. LT IDR BBB- Affirmed BBB-
ST IDR F3 Affirmed F3
senior
unsecured ST F3 Affirmed F3
JBS USA Foods
Group Holdings,
Inc.
senior
unsecured LT BBB- Affirmed BBB-
senior
unsecured ST F3 Affirmed F3
NBM US Holdings,
Inc.
senior
unsecured LT BB+ Affirmed BB+
Pilgrim's Pride
Corporation LT IDR BBB- Affirmed BBB-
senior
unsecured LT BBB- Affirmed BBB-
Minerva
Luxembourg S.A.
senior
unsecured LT BB Affirmed BB
Agrosuper S.A. LT IDR BBB- Affirmed BBB-
LC LT IDR BBB- Affirmed BBB-
senior
unsecured LT BBB- Affirmed BBB-
USD 500 mln
4.6% bond/note
20-Jan-2032
00857LAA5 LT BBB- Affirmed BBB-
MARB BondCo PLC
senior
unsecured LT BB+ Affirmed BB+
Marfrig Global
Foods S.A. LT IDR BB+ Affirmed BB+
LC LT IDR BB+ Affirmed BB+
JBS N.V. LT IDR BBB- Affirmed BBB-
ST IDR F3 Affirmed F3
senior
unsecured LT BBB- Affirmed BBB-
senior
unsecured ST F3 Affirmed F3
JBS USA Food
Company Holdings
senior
unsecured LT BBB- Affirmed BBB-
senior
unsecured ST F3 Affirmed F3
Minerva S.A. LT IDR BB Affirmed BB
LC LT IDR BB Affirmed BB
RAIZEN: Secures $12.6 Billion Out-of-Court Debt Restructuring Deal
------------------------------------------------------------------
Reuters reports that Brazilian sugar and ethanol producer Raizen
said that it had reached an out-of-court agreement with creditors
and bondholders to restructure approximately BRL65.1 billion
($12.61 billion) in debt obligations.
The joint venture between oil major Shell and Brazilian
conglomerate Cosan had been in months-long talks seeking ways to
strengthen its capital structure and tackle its significant debt
burden, according to the report.
Raizen said in a securities filing that creditors holding 47% of
its unsecured debt had already endorsed the plan, the report
notes.
As reported in the Troubled Company Reporter-Latin America on March
13, 2026, S&P Global Ratings lowered its rating on Raizen S.A. to
'SD' (selective default) from 'CCC-'. S&P also lowered the
issue-level ratings on Raizen Fuels Finance S.A.'s senior notes to
'D' from 'CCC-'. At the same time, S&P withdrew the recovery rating
on the senior notes.
===========================
C A Y M A N I S L A N D S
===========================
AUB SUKUK: Fitch Lowers Rating on Sr. Unsecured Notes to 'BB'
-------------------------------------------------------------
Fitch Ratings has downgraded Kuwait Finance House B.S.C. (c)'s (KFH
Bahrain) Long-Term Issuer Default Rating (IDR) to 'BB' from 'BB+',
Shareholder Support Rating (SSR) to 'bb' from 'bb+' and Viability
Rating (VR) to 'b+' from 'bb-'. The Outlook on the Long-Term IDR is
Stable.
The rating actions follow the downgrade of Bahrain's sovereign
rating to 'B' from 'B+' and revision of its Country Ceiling to 'BB'
from 'BB+' on 23 February 2026 (see "Fitch Downgrades Bahrain to
'B'; Outlook Stable".
KFH Bahrain's Long-Term IDR reflects potential support from its
shareholder, Kuwait Finance House (K.S.C.P) (KFH; A/Stable) but is
constrained by Bahrain's Country Ceiling. The revision of the
Country Ceiling therefore resulted in KFH Bahrain's downgrade.
Fitch maintains KFH Bahrain's VR at a maximum of one notch above
the sovereign rating, reflecting material domestic exposure. The VR
downgrade mirrors the sovereign downgrade.
Fitch has withdrawn KFH Bahrain's ex-government support (xgs)
ratings, including on senior unsecured debt and sukuk, issued via
AUB Sukuk Limited (AUBSL), as they are no longer relevant because
the bank's Long-Term IDR would now be unchanged if government
support for its parent was excluded.
Key Rating Drivers
KHF Bahrain's Long-Term IDR and SSR reflect a moderate probability
of support from its shareholder, KFH. In its view, KFH would have a
high propensity to provide support to KHF Bahrain, given the
latter's full ownership by KFH, its notable role in the group,
close operational parent-subsidiary integration and high
reputational risk for the parent from a subsidiary's default.
However, the likelihood of KFH Bahrain being able to receive and
utilise support from KFH and, consequently, the bank's Long-Term
IDR, are constrained by Bahrain's 'BB' Country Ceiling, due to KFH
Bahrain's exposure to the Bahraini sovereign and domestic economy
on both sides of the balance sheet. The Stable Outlook on KHF
Bahrain's Long-Term IDR reflects that on Bahrain's sovereign
rating.
KHF Bahrain's VR balances its high exposure to lower-rated
countries against resilient asset quality and strong profitability
and capitalisation. It is constrained at one notch above Bahrain's
sovereign rating due to material exposure to the domestic market
(end-2025: 25% of credit exposures or 139% of equity), although the
bank could remain solvent in a sovereign default.
KFH Bahrain's VR of 'b+' is below its 'bb-' implied VR due to a
negative adjustment for its business profile. For more details on
the VR drivers see the rating action commentary "Fitch Affirms
Bahraini Ahli United Bank at 'BB+'; Outlook Negative" published 28
May 2025.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
A downgrade of KHF Bahrain's Long-Term IDR and SSR could result
from a downgrade of Bahrain's sovereign rating or a downward
revision of Bahrain's Country Ceiling.
A downgrade of the Bahraini sovereign rating would result in a
downgrade of KHF Bahrain's VR. A downgrade of the VR could also
arise from a material deterioration of the bank's operating
environments, or from a sustained material deterioration in the
bank's asset quality and profitability.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
An upgrade of KHF Bahrain's Long-Term IDR and SSR would require an
upward revision of Bahrain's Country Ceiling.
A VR upgrade would require an upgrade of the Bahraini sovereign
rating and a strengthening of the bank's business profile,
underpinned by a higher exposure to low-risk operating environments
on a sustained basis, while maintaining a stable financial
profile.
OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS
KFH Bahrain's Short-Term IDR is mapped to its Long-Term IDR.
KFH Bahrain's senior unsecured debt ratings and sukuk, issued via
AUBSL, a wholly owned special-purpose vehicle, are rated in line
with the bank's IDRs. A default of these senior unsecured
obligations would equal a default by KFH Bahrain, in accordance
with its rating definitions.
OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES
KFH Bahrain's Short-Term IDR is sensitive to changes in its
Long-Term IDR.
The senior unsecured debt and sukuk ratings are sensitive to
changes in KFH Bahrain's IDRs.
VR ADJUSTMENTS
The operating environment score of 'bb-' is below the 'a' category
implied score due to the following adjustment reason(s):
geographical scope (positive), and sovereign rating (negative).
The business profile score of 'b+' is below the 'bb' category
implied score due to the following adjustment reason(s): business
model (negative).
The capitalisation & leverage score of 'bb' is below the 'bbb'
category implied score due to the following adjustment reason(s):
risk profile and business model (negative).
Public Ratings with Credit Linkage to other ratings
KFH Bahrain's IDRs are linked to KFH's.
ESG Considerations
As an Islamic bank, KFH Bahrain needs to ensure compliance of its
entire operations and activities with sharia principles and rules.
This entails additional costs, processes, disclosures, regulations,
reporting and sharia audit. This results in a ESG Governance
Structure Relevance Score of '4' for the bank, which has a negative
impact on the bank's credit profile and is relevant to the rating
in combination with other factors.
In addition, Islamic banks have an ESG Relevance Score of '3' for
exposure to social impacts, above sector guidance for an ESG
relevance score of '2' for comparable conventional banks, which
reflects certain sharia limitations being embedded in Islamic
banks' operations and obligations, although this only has a minimal
credit impact on the entities.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
----------- ------ -----
AUB Sukuk Limited
senior unsecured LT BB Downgrade BB+
senior unsecured LT (xgs) WD Withdrawn BB(xgs)
Kuwait Finance
House B.S.C. (c)
LT IDR BB Downgrade BB+
ST IDR B Affirmed B
Viability b+ Downgrade bb-
LT IDR (xgs) WD Withdrawn BB(xgs)
ST IDR (xgs) WD Withdrawn B(xgs)
Shareholder
Support bb Downgrade bb+
senior unsecured LT BB Downgrade BB+
senior unsecured ST B Affirmed B
senior unsecured ST (xgs) WD Withdrawn B(xgs)
senior unsecured LT (xgs) WD Withdrawn BB(xgs)
ITTIHAD INT'L II: Fitch Affirms 'BB-' Rating on Sr. Unsecured Certs
-------------------------------------------------------------------
Fitch Ratings has affirmed Ittihad International Investment LLC's
Long-Term Issuer Default Rating (IDR) and senior unsecured rating
at 'BB-'. The Outlook on the IDR is Stable. Fitch has also affirmed
the sukuk trust certificates issued by Ittihad International II Ltd
at 'BB-' with a Recovery Rating of 'RR4'.
These actions follow the update of Fitch's Corporate Rating
Criteria and the Sector Navigators - Addendum to the Corporate
Rating Criteria on January 9, 2026. The companies' ratings and
Outlook are unaffected by the criteria changes.
Corporate Rating Tool Inputs and Scores
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, Lower), Sector Characteristics (bb+,
Moderate), Market and Competitive Positioning (bb+, Moderate),
Diversification and Asset Quality (bb, Higher), Company Operational
Characteristics (bbb-, Moderate), Profitability (b-, Moderate),
Financial Structure (bb-, Higher), 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 assessment of 'Good' results in no adjustment.
- The Operating Environment assessment of 'bbb' results in no
adjustment.
- The SCP is 'bb-'.
To derive the IDR: no other consideration applied.
RATING ACTIONS
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Ittihad
International II Ltd
senior unsecured LT BB- Affirmed RR4 BB-
Ittihad International
Investment LLC
LT IDR BB- Affirmed BB-
senior unsecured LT BB- Affirmed RR4 BB-
===============
C O L O M B I A
===============
RUTA AL MAR: Moody's Cuts Rating on Sr. Secured Notes to B3
-----------------------------------------------------------
Moody's Ratings downgraded to B3 from B1 the rating assigned to the
senior secured UVR-indexed notes issued by Fideicomiso P.A.
Concesión Ruta al Mar, with Concesión Ruta al Mar S.A.S. (RaM) as
co obligor. At the same time, Moody's placed the rating under
review for further downgrade.
RATINGS RATIONALE
The rating's downgrade reflects the long-standing construction
delays that continue to hinder the project's ability to generate
and retain cash, weakening the overall financial profile and
limiting visibility around the issuer's capacity to complete the
remaining works or secure adjustments to the concession scope.
These delays have prevented RaM from fully capturing revenues
across all functional units and from executing the cash sweep
amortization path originally intended to reduce leverage, which is
now a central source of credit pressure.
The rating has also been placed under review for further downgrade,
reflecting heightened uncertainty surrounding the economic
viability of the concession, including the timing and quantum of
potential compensation, as well as the project's ability to
complete outstanding construction items as scheduled, restore
liquidity and demonstrate credible progress toward addressing the
August 2027 bullet maturity.
Construction delays are directly limiting RaM's ability to build
liquidity and reduce debt as initially expected. Under the current
structure, the COP 207 billion bullet maturity in August 2027 under
the COP Loan A was designed to be repaid gradually through a cash
sweep mechanism linked to construction progress and toll revenue
collections. However, RaM's construction delays have resulted in
insufficient cash generation, weakening the project's financial
flexibility. Based on Moody's updated base case, the project is
expected to record DSCR levels near or below 1.0x throughout
2025–2027, leaving little room to accumulate enough liquidity
ahead of scheduled principal payment on Loan A. Compliance with the
DSCR metric has been driven by recurring drawings on the debt
service reserve account (DSRA), which is drawn down and is expected
to be replenished prior to each reporting period. The project's
liquidity has also deteriorated following the near depletion of the
support account funded with 0.9% of revenues, which historically
provided compensation for construction delays, community opposition
events, and tariff lagging periods. Although RaM had previously
relied on these compensations to bridge timing gaps, this mechanism
is now effectively exhausted.
The rating action acknowledges that tariffs have been fully
adjusted for inflation since January 2025, and that the recent
tariff increase in January 2026 incorporated an incremental
adjustment to compensate for past delays. However,absent material
improvements in cash flow or changes to concession terms resulting
in extraordinary cash compensation, RaM could be unable to
internally generate the funds needed to meet the 2027 bullet
payment. The project still benefits from committed sponsor equity
in the amount of COP 44,500 million, backed by letters of credit,
which provides some short term mitigation against liquidity
pressures, though it does not resolve the structural challenge of
the concession economic imbalance and conditions for its
disbursement may be disputed.
Despite the supportive features embedded in Colombian toll road
concessions, including strong risk sharing mechanisms between the
public and private stakeholders, RaM and ANI have not yet agreed on
amendments to compensate for the project's construction
challenges— this could take the form of a reduced scope, an
extension of the concession term, or other economic remedies. As a
result, the project's liquidity risks remain elevated.
During the review period, Moody's will evaluate whether RaM can
stabilize its cash flow generation, reduce reliance on reserves,
and enhance the visibility of a timely and effective solution
negotiated with ANI or obtain equity support from its shareholder
to mitigate the default risk on upcoming debt maturities. Without
evidence of meaningful improvement in these areas, further negative
rating action is likely.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
Given the rating's placement under review for downgrade, an upgrade
is unlikely. The review could be resolved with a affirmation of the
rating if the issuer demonstrates sustained improvement in
liquidity, materially lowers reliance on the DSRA, and achieves
clear construction progress without further delays.
Moody's could downgrade Ruta al Mar's rating if liquidity pressures
persist, DSRA usage increases, construction delays continue, tariff
performance does not translate into stronger cash generation, or if
no credible plan emerges to address the 2027 bullet maturity.
Fideicomiso P.A. Concesion Ruta al Mar is a trust under the laws of
Colombia created for purposes of the operations of Concesion Ruta
al Mar S.A.S. Concesion Ruta al Mar S.A.S. is a toll road
concession encompassing 491 kilometers of roads in Colombia's
northwestern region. The concession was awarded by Agencia Nacional
de Infrastructura (ANI) as a private initiative 4G project, which
works as an unsolicited public-private partnership transaction.
Private initiative projects do not involve public funding for
either construction or revenue generation. Revenue is fully based
on tolled traffic, and the project takes on all of the traffic-risk
exposure. The concession is likely to last for 34 years based on
initial traffic projections. The term can be shortened or extended
depending on the present value of the accumulated cash flow. The
project sponsors are El Condor and its funds managed by InfraRed
Capital Partners Limited (InfraRed), each with a 50% share of the
project.
LIST OF AFFECTED RATING
Issuer: Fideicomiso P.A. Concesion Ruta al Mar
Downgrades:
Senior Secured, Downgraded to B3 from B1; Placed On Review for
further Downgrade
Outlook Actions:
Outlook, Changed To Rating Under Review From Negative
The principal methodology used in this rating was Privately Managed
Toll Roads published in December 2022.
The net effect of any adjustments applied to rating factor scores
or scorecard outputs under the primary methodology(ies), if any,
was not material to the ratings addressed in this announcement.
=============
E C U A D O R
=============
ECUADOR SOCIAL: Fitch Hikes Rating on Class B Notes to 'B-sf'
-------------------------------------------------------------
Fitch Ratings has upgraded the class B notes issued by Ecuador
Social Bond S.a.r.l. (ESB) to 'B-sf' from 'CCC+sf'. This rating
action follows Fitch's upgrade of Ecuador's ratings on Feb. 25,
2026, to 'B-' from 'CCC+'. The Rating Outlook is Stable.
Fitch has also affirmed the ratings of the class A notes at 'AAAsf'
with a Stable Outlook, reflecting the guarantee provided by the
Inter-American Development Bank (IDB; AAA/Stable). For additional
information on the rating actions taken on Ecuador's ratings,
please see "Fitch Upgrades Ecuador's Long-Term IDR to 'B-'; Outlook
Stable".
Entity/Debt Rating Prior
----------- ------ -----
Ecuador IDB Repack
Class A (secured)
XS2106052827 LT AAAsf Affirmed AAAsf
Class B (secured)
XS2106053635 LT B-sf Upgrade CCC+sf
Transaction Summary
The Social Bond, issued by the Republic of Ecuador and partially
guaranteed by the Inter-American Development Bank (IDB;
AAA/Stable), is the asset backing the repack notes.
The assigned ratings address timely payment of interest and
principal on a semi-annual basis.
KEY RATING DRIVERS
Social Bond Backed by Full Faith and Credit of Ecuador: The Social
Bond issued by the Republic of Ecuador is the asset backing the
repack notes issued by ESB. The Social Bond shares all
characteristics of other external indebtedness of the sovereign and
is backed by the full faith and credit of Ecuador. The only
difference is that its proceeds are for specific investment in
Ecuador's social housing program, and its debt service benefits
from a partial credit guarantee by the IDB.
IDB's Partial Credit Guarantee Comprehensive in Scope: The partial
credit guarantee between the IDB and ESB, as initial purchaser of
the Social Bond, partially covers Ecuador's failure to meet its
obligations on the Social Bond. After Ecuador's default on the
Social Bond, all draws from the IDB guarantee will be exclusively
applied by the trustee to cover 100% of class A's debt service,
covering a percentage of the underlying Social Bond.
The scope of the IDB guarantee is comprehensive and effectively
covers 100% of the class A notes to be issued by ESB within the
23-day cure period. IDB's obligations under the partial guarantee
constitute direct, unsecured obligations of IDB.
IDB's Credit Quality Remains Strong: The rating assigned to class A
notes is commensurate with the Issuer Default Rating (IDR) of the
guarantee provider. On Oct. 24, 2025, Fitch affirmed IDB's IDR at
'AAA'/Stable.
Class B Notes' Ratings Commensurate with Sovereign: Given that all
flows from the IDB guarantee will be applied to the class A notes
to meet debt service according to the guarantee's schedule, a
default by Ecuador under its obligations of the Social Bond would
lead to a default of ESB's obligations under the class B notes.
Hence, the credit quality of the class B notes is a pass-through of
Ecuador's rating. The rating of Ecuador was upgraded to 'B-' from
'CCC+' with a Stable Outlook on Feb. 25, 2026.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- The class A notes' ratings are linked to the IDB's LT FC IDR;
hence, a downgrade of the IDB's IDR would trigger a downgrade of
class A notes in the same proportion. In addition, changes in
Fitch's view regarding the strength of the IDB guarantee may affect
the class A notes' ratings;
- The class B notes' credit quality reflects Ecuador's rating and
therefore is sensitive to changes in Ecuador's LT IDR. Hence, a
downgrade to Ecuador's IDR would trigger a decrease in the class B
note ratings in the same proportion.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- The class A notes' ratings are linked to the IDB's LT FC IDR of
'AAA'/Stable, which is the highest rating assigned by Fitch;
- The class B notes' credit quality reflects Ecuador's rating and
therefore is sensitive to changes in Ecuador's LT IDR. Hence, an
upgrade to Ecuador's IDR would trigger an uplift in the class B
note ratings in the same proportion.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
The credit risk of the class A notes is linked to the credit
quality of the IDB ('AAA'/Stable) as the only beneficiary of the
IDB guarantee. The credit risk of the class B notes is directly
linked to Ecuador's Long-Term IDR ('B-'/Stable).
=======
P E R U
=======
PERU: IDB OKs $130MM-Loan to Improve River Access in the Amazon
---------------------------------------------------------------
The Board of Executive Directors of the Inter-American Development
Bank (IDB) has approved a $130 million loan to improve river access
for riverside communities in the Peruvian Amazon.
The operation will strengthen the quality of river transport and
access to basic services through improvements in resilient
infrastructure and associated services at embarkation points. It
will also increase the supply of sanitary and school river
transport services and reinforce capacities for their planning,
management, and operation.
The IDB is the first bank to finance a program aimed at improving
river transport and access for remote communities in the Peruvian
Amazon, a pioneering project that serves as a benchmark for other
Amazonian territories in the region.
"With a multisectoral approach, we link transport with access to
essential health and education services so that development reaches
those who need it most, enhancing benefits for each resident by
integrating them into the local economy," said Matilde Bordon, IDB
Representative in Peru.
This project is part of Amazonia Forever, the IDB Group’s
regional program aimed at protecting biodiversity and accelerating
sustainable development through three lines of action: expanding
innovative financing, promoting knowledge exchange, and
facilitating regional coordination among the eight Amazon
countries.
In the Peruvian Amazon -- which includes the Nanay, Napo, Huallaga,
Maranon, Ucayali, Santiago, and Amazon river basins -- there are
2,780 riverside communities with approximately 445,000 inhabitants
who lack access to land-based connectivity infrastructure and
depend exclusively on river transport.
Loan resources will finance the construction of approximately 81
river docks in the river basins mentioned, as well as the
acquisition of 22 new school vessels for the safe transport of
students and 12 new medical river vessels for emergency care.
The plan will also support the development of studies and plans for
waterway development in the area, along with the formulation of
strategies and guidelines for the development of river transport.
The program will benefit 176,000 inhabitants in the direct area of
influence of the embarkation infrastructure interventions and 1.4
million inhabitants in the indirect area of influence. Among them
are 940 students who will have access to safe and free school
transport.
The $130 million loan has a maturity of 23.5 years, a grace period
of 7 years, an interest rate based on SOFR, and a local counterpart
contribution of $34.3 million.
=====================
P U E R T O R I C O
=====================
PHOENIX FUND: Hires Alexis Fuentes-Hernandez as Legal Counsel
-------------------------------------------------------------
The Phoenix Fund LLC seeks approval from the U.S. Bankruptcy
Court for the District of Puerto Rico to employ Alexis
Fuentes-Hernandez, Esq., an attorney practicing in San Juan,
Puerto Rico, to handle its Chapter 11 case.
The attorney will be billed at an hourly rate of $450 plus
out-of-pocket expenses.
The attorney received a retainer of $150,000 from the Debtor.
Mr. Fuentes-Hernandez disclosed in a court filing that he is a
"disinterested person" as the term is defined in Section
101(14) of the Bankruptcy Code.
The attorney can be reached at:
Alexis Fuentes-Hernandez, Esq.
366 Calle Fortaleza, Fl. 2
San Juan, PR 00901
About The Phoenix Fund LLC
The Phoenix Fund LLC is a Puerto Rico based private equity firm
formed in 2018 and headquartered in Guaynabo, Puerto Rico. The
company focuses on making strategic equity and debt investments in
privately held businesses in Puerto Rico and international
markets.
Phoenix Fund LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.P.R. Case No. 26-00712) on February 23,
2026.
Honorable Bankruptcy Judge Enrique S. Lamoutte Inclan handles the
case. In its petition, the Debtor reports estimated assets between
$500 million and $1 billion and estimated liabilities between $100
million and $500 million.
The Debtor is represented by Alexis Fuentes Hernandez, Esq. of
Fuentes Law Offices, LLC.
PHOENIX FUND: Hires Luis R. Carrasquillo as Financial Consultant
----------------------------------------------------------------
The Phoenix Fund LLC seeks approval from the U.S. Bankruptcy Court
for the District of Puerto Rico to employ CPA Luis R. Carrasquillo
& Co., P.S.C. to serve as financial consultant in its Chapter 11
case.
The firm will provide these services:
(a) strategic counseling and advice;
(b) pro forma modeling preparation;
(c) financial and business assistance;
(d) preparation of documentation as requested for and during
Debtor's Chapter 11; and
(e) recommendations and financial/business assessments
regarding issues specifically related to the Debtor.
The Debtor has retained Carrasquillo on the basis of a $100,000
retainer, against which Carrasquillo bills and will bill according
to the hourly billing rates specified in the application, subject
to the Court's approval.
Carrasquillo and its members are "disinterested persons" as
defined
in Section 101(14) of the Bankruptcy Code. They are not creditors
or insiders of the Debtor, have no material adverse interest, and
have no connections with the Debtor, its creditors, or the U.S.
Trustee that would affect their independence.
The firm can be reached at:
CPA Luis R. Carrasquillo & Co., P.S.C.
28th Street, TI 26 Turabo Gardens
Caguas, PR 00725
Telephone: (787) 746-4555
(787) 746-4556
E-mail: luis@cpacarrasquillo.com
About The Phoenix Fund LLC
The Phoenix Fund LLC is a Puerto Rico based private equity firm
formed in 2018 and headquartered in Guaynabo, Puerto Rico. The
company focuses on making strategic equity and debt investments in
privately held businesses in Puerto Rico and international
markets.
Phoenix Fund LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.P.R. Case No. 26-00712) on February 23,
2026.
Honorable Bankruptcy Judge Enrique S. Lamoutte Inclan handles the
case. In its petition, the Debtor reports estimated assets between
$500 million and $1 billion and estimated liabilities between $100
million and $500 million.
The Debtor is represented by Alexis Fuentes Hernandez, Esq. of
Fuentes Law Offices, LLC.
===============
X X X X X X X X
===============
LATAM: CDB Signals Foray Into Regional Health Financing
-------------------------------------------------------
RJR News reports that the Caribbean Development Bank (CDB) said it
is preparing to finance the Caribbean health sector for the first
time in decades.
Speaking at its annual news conference in Barbados, CDB President
Daniel Best says this decision is due to the uncertainty
surrounding the Cuban medical missions, according to RJR News.
He also pointed out that the bank's 2026-35 strategic plan now
formally recognizes the health sector as an area to which it will
be providing funding, the report notes.
This is a big shift in emphasis for the institution, which normally
focused its lending programms on infrastructure development, on
climate resilience and economic development, the report adds.
[] Fitch Affirms Ratings on Three LatAm Airline & Aerospace Cos.
----------------------------------------------------------------
Fitch Ratings has affirmed three Latin American airline and
aerospace and defense (A&D) companies' ratings and the ratings of
their subsidiaries:
1. Avianca Group International Limited (Avianca)
2. Gol Linhas Aereas Inteligentes S.A. (Gol)
3. Embraer S.A. (Embraer)
These actions follow the update of Fitch's "Corporate Rating
Criteria" and the "Sector Navigators Addendum to the Corporate
Rating Criteria" on Jan. 9, 2026. The companies' ratings and
Ratings Outlooks were unaffected by the criteria changes.
Corporate Rating Tool Inputs and Scores
Fitch scored the issuers as follows, using its Corporate Rating
Tool (CRT) to produce the Standalone Credit Profile (SCP):
Avianca Group International Limited
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, Lower), Market and Competitive Positioning (bb-, Moderate),
Diversification and Asset Quality (bb, Moderate), Company
Operational Characteristics (bb-, Moderate), Profitability (bb+,
Moderate), Financial Structure (bb-, Higher), 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 assessment of 'Good' results in no adjustment.
- The Operating Environment assessment of 'bb+' results in no
adjustment.
- The calibration adjustment applies and results in an adjustment
of -1 notch(es).
- The SCP is 'b+'.
To derive the IDR:
- Fitch has made no adjustment to the SCP resulting in an FC and LC
IDR of 'B+'.
Gol Linhas Aereas Inteligentes S.A.
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 (b+, Moderate), Sector Characteristics (b+,
Lower), Market and Competitive Positioning (b+, Moderate),
Diversification and Asset Quality (bb, Moderate), Company
Operational Characteristics (bb-, Moderate), Profitability (bb,
Moderate), Financial Structure (ccc+, Higher), and Financial
Flexibility (b, 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.
- Assessments of the quantitative financial subfactors also include
bespoke calculations.
- The Governance assessment of 'Good' results in no adjustment.
- The Operating Environment assessment of 'bb' results in no
adjustment.
- The calibration adjustment applies and results in an adjustment
of -1 notch(es).
- The SCP is 'ccc+'.
To derive the IDR:
- Fitch has made no adjustment to the SCP resulting in an FC and LC
IDR of 'CCC+'.
Embraer S.A.
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, Lower), Sector Characteristics
(bbb,Moderate), Market and Competitive Positioning (bbb, Higher),
Diversification and Asset Quality (bbb-, Higher), Company
Operational Characteristics (bbb-, Moderate), Profitability (bb+,
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-'.
To derive the IDR:
- Fitch has made no adjustment to the SCP resulting in an FC and LC
IDR of 'BBB-'.
RATING ACTIONS
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
GOL Linhas Aereas
Inteligentes S.A.
LT IDR CCC+ Affirmed CCC+
LC LT IDR CCC+ Affirmed CCC+
Avianca Midco 2 PLC
senior secured LT B+ Affirmed RR4 B+
Embraer Netherlands
Finance BV
senior unsecured LT BBB- Affirmed BBB-
Gol Finance
senior secured LT CCC+ Affirmed RR4 CCC+
Avianca Group
International
Limited
LT IDR B+ Affirmed B+
LC LT IDR B+ Affirmed B+
Embraer S.A.
LT IDR BBB- Affirmed BBB-
LC LT IDR BBB- Affirmed BBB-
*********
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
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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 * * *