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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 19, 2026, Vol. 27, No. 56
Headlines
A R G E N T I N A
ARGENTINA: Buenos Aires Court Orders Nationwide Block on Polymarket
ARGENTINA: Utilities Surge Kept Inflation Rate at 2.9% in Feb.
B R A Z I L
BANCO C6: Moody's Assigns First Time 'Ba3' Deposit Ratings
BRAZIL: Middle East War Squeezes Farm Costs on All Fronts
E C U A D O R
BANCO PICHINCHA: Fitch Hikes LT IDR to 'B', Outlook Stable
J A M A I C A
JAMAICA: Robinson Takes Jab at 'Unconscionable' $18BB Tax Package
P A N A M A
BAC INTERNATIONAL: Fitch Affirms 'BB+' IDR, Alters Outlook to Pos.
PROMERICA FINANCIAL: Fitch Affirms B+ Long-Term IDR, Outlook Stable
P A R A G U A Y
UENO BANK: Fitch Puts 'BB' Final Rating to USD350M Sr. Unsec. Notes
X X X X X X X X
LATAM: IDB Closes Subscription Process to Accelerate Development
- - - - -
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A R G E N T I N A
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ARGENTINA: Buenos Aires Court Orders Nationwide Block on Polymarket
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Kathryn Evans, writing for iGB, reports that an Argentinian judge
has mandated a nationwide block on cryptocurrency-based prediction
market platform Polymarket for not holding a relevant gambling
licence.
The decision from a Buenos Aires court has also instructed Google
and Apple to remove the application from their respective app
stores within Argentina, states the report.
iGB says this development follows an inquiry initiated by a
specialised gambling prosecution office which labelled Polymarket
as a "covert online betting system" operating without proper
authorisation.
The newly established Buenos Aires Specialised Gambling
Prosecutor's Office was responding to a complaint filed by the
Buenos Aires City Lottery, which had detected Polymarket operating
in Argentina without a licence, the report notes.
The investigation revealed that Polymarket facilitated rapid
account creation without conducting any identity verification or
age checks, the report relays.
It was also found that the platform holds no licences registered
with the Association of State Lotteries of Argentina, says iGB.
These regulatory breaches prompted the court’s decisive
intervention, opening the door to potentially broader enforcement
actions within the country.
Polymarket has yet to issue a public response to requests for
comment on the matter, the report notes.
About Argentina
Argentina is a country located mostly in the southern half of
South America. Its capital is Buenos Aires. Javier Milei is the
current president of Argentina after winning the November 19,
2023 general election. He succeeded Alberto Angel Fernandez
in the position.
Argentina has the third largest economy in Latin America. The
country's economy is an upper middle-income economy for fiscal
year 2019, according to the World Bank. Historically, however,
its economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.
In March 2022, the International Monetary Fund (IMF) approved a
30-month arrangement under an Extended Fund Facility for Argentina
in the amount of SDR 31.914 billion (equivalent to US$44 billion,
or 1000 percent of quota) -- with an approved immediate
disbursement of an equivalent of US$9.65 billion. Argentina's
IMF-supported program sought to improve public finances and start
to reduce persistent high inflation through a multi-pronged
strategy.
On April 11, 2025, the IMF further approved a 48-month Extended
Fund Facility (EFF) arrangement for Argentina totaling US$20
billion (or 479 percent of quota), with an immediate disbursement
of US$12 billion, and a first review planned for June
2025 with an associated disbursement of about US$2 billion. The
program is expected to help catalyze additional official
multilateral and bilateral support, and a timely re-access to
international capital markets.
Moody's Ratings on July 17, 2025, upgraded Argentina's
long-term foreign currency and local currency issuer ratings to
Caa1 from Caa3 and changed the outlook to stable from positive.
The upgrade reflects Moody's views that the extensive
liberalization of exchange and (to a lesser extent) capital
controls, alongside a new International Monetary Fund (IMF)
program, support the availability of hard currency liquidity and
ease pressure on external finances. This reduces the likelihood of
a credit event. In January 2025, Moody's raised Argentina's local
currency ceiling to B3 from Caa1 and the foreign currency ceiling
to Caa1 from Caa3.
Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term
Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to
'CCC+' from 'CCC'. S&P Global Ratings, in February 2025 lowered
its local currency sovereign credit ratings on Argentina to
'SD/SD' from 'CCC/C' and its national scale rating to 'SD' from
'raB+'. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local
Currency Issuer Ratings to B (low) from CCC in November 2024.
ARGENTINA: Utilities Surge Kept Inflation Rate at 2.9% in Feb.
--------------------------------------------------------------
Buenos Aires Times reports that inflation failed to slow last
month, remaining consistent at 2.9 percent in February, the same
rate recorded in January.
The lack of a slowdown will be of concern to the government of
President Javier Milei, who made tackling price hikes the focus of
his initial two years in government, according to Buenos Aires
Times. He has regularly predicted that inflation will be below a
monthly one percent by August, the report notes.
According to official government data posted by the INDEC national
statistics bureau, prices have risen 5.9 percent since the turn of
the year and by 33.1 percent over the past 12 months, the report
relays. In the annual monthly comparison, inflation is now
running, the report notes.
Leading the increases in February were utilities, such as housing,
water, electricity, gas and other fuels, which soared a worrying
6.8 percent due to the ongoing modification of the schemes for
beneficiaries of subsidised and non-subsidised rates, the report
discloses.
The second largest increase was in food and non-alcoholic
beverages, which rose an above-average 3.3 percent and also
recorded the widest spread when it comes to regional variations,
the report says.
At the other end of the scale, the smallest increases in February
were seen in alcoholic beverages and tobacco, up 0.6 percent, and
clothing and footwear, which posted no variation.
At category level, regulated prices posted the largest increase of
4.3 percent, followed by core inflation at 3.1 percent, the report
discloses. Seasonal prices rose less at 1.3 percent, the report
relays.
A report by the Equilibra consultancy firm, released before INDEC's
data, foresaw that the largest increases in February were in
housing, utilities and fuels, followed by food and non-alcoholic
beverages, restaurants and hotels, and communications, Buenos Aires
Times discloses.
Equilibra's senior economist Gonzalo Carrera noted that while
clothing and durable goods are becoming cheaper, "public service
tariffs, meat, rent and restaurants are becoming more expensive and
increasing their share of household spending," the report relays.
The report relays that EcoGo Consultores, for its part, also
highlighted food and beverage inflation, noting that "during
February there was once again an acceleration in the price of meat,
oils and vegetables."
The national figure, which comes amid a surge in the price of oil
due to the Iran war, was higher than the inflation data posted by
the Buenos Aires City government, the report notes. Earlier, City
Hall's statistics institute said prices increased 2.6 percent in
February in the capital - down from the 3.1 percent posted in
January, the report notes.
INDEC became embroiled in controversy last month when the bureau's
chief, Marco Lavagna, resigned his post. Days earlier, the
government U-turned on a decision to introduce a new methodology
for measuring inflation, which had been in preparation since 2017,
the report recalls.
The bureau's new chief Pedro Lines, who worked under Lavagna, has
begun to analyse different alternatives to update the indicator and
move away from the current methodology, which is already 20 years
out of date and is opposed by the International Monetary Fund, the
report says.
While February's national rate is far from good news for the
government, private analysts had generally anticipated a figure of
around three percent or just under, in line with January’s
increase, the report notes.
Experts consulted by the Central Bank's most recent market
expectations survey (REM) had projected an increase of 2.7 percent,
the report relates.
Milei's administration successfully slowed triple-digit inflation
after taking office in December 2023, but since June last year,
price hikes have been on an upward trend, the report notes.
Increases have intensified slightly since last September, when the
monthly figure began surpassing two percent, the report discloses.
Inflation was running at 211 percent when Milei was inaugurated and
he swiftly devalued the peso by half. In 2025, after fierce
austerity and public spending cuts, price hikes dropped to an
annual 31.5 percent – the lowest level in eight years, the report
says.
"I feel that prices are not rising that much, but the problem is
that everything is still expensive and very little money is coming
in," said Christian Gimenez, a 32-year-old craftsman and concert
producer, on the streets of Buenos Aires, the report notes. In his
opinion, "transport has increased a lot," the report says.
Economist Christian Buteler said the government had made
"important" progress in tackling inflation but warned that it is "a
big mistake" to have utilitiy rates that are adjusted for inflation
"in transport, electricity, gas, and private health insurance," if
the aim is to cut the price hikes further, the report discloses.
"It's like when you start a diet, the last few pounds to reach your
ideal weight are always the hardest to lose," he added.
Milei said on Monday that "inflation could start at zero" from
August "unless the war process deepens and lasts longer than
expected" - another reference to the Middle East crisis, the report
says.
For Buteler, Milei's goal will be "difficult" to achieve, given the
international context and scheduled increases ahead for utilities,
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.
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B R A Z I L
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BANCO C6: Moody's Assigns First Time 'Ba3' Deposit Ratings
----------------------------------------------------------
Moody's Ratings has assigned initial ratings and assessments to
Banco C6 S.A. (C6). The bank received long-term local and foreign
currency deposit ratings of Ba3, with both its Baseline Credit
Assessment (BCA) and Adjusted BCA rated at ba3. Additionally,
Moody's assigned Not Prime to the bank's short-term local and
foreign currency deposit ratings. The long-term and short-term
Counterparty Risk Ratings for local and foreign currencies are Ba2
and Not Prime, respectively. Counterparty Risk Assessments were set
at Ba2(cr) for the long term and Not Prime(cr) for the short term.
The outlook for C6's long-term deposit ratings is stable.
RATINGS RATIONALE
The assigned ba3 baseline credit assessment (BCA) reflects C6's
positive progression over the past years, marked by business
diversification, robust profitability in 2024 and 2025 and a
strengthened deposit franchise. The bank has leveraged its digital
platform created in 2019 and an extensive network of correspondents
and third party credit originators to establish a lean cost
structure, enabling solid earnings generation after reaching the
necessary scale in 2024, following adjustments to origination
standards and asset risk profile. The ba3 BCA also takes into
account risks related to its accelerated growth strategy that leads
to a still unseasoned credit portfolio and concerns about the
sustained profitability levels as the operations matures.
Additionally, while capitalization remains low relative to
similarly rated institutions and local peers, C6's capacity to
replenish capital and its expected moderation in growth should
gradually address this concern.
As of December 2025, C6 reached BRL89.3 billion in total loans
after a compounded growth of 49% in the past three years,
particularly focused on secured lending products, including payroll
(45% of gross loans) and vehicle financing (28%), while the bank
also offers unsecured consumer loans (14%) and loans to corporate
and small and medium companies (12%). Problem loans remained below
the industry average in 2024 and 2025, with stage 3 assets at 3.6%
of gross loans, a metric that is still influenced by the rapid
growth rate. Loan loss reserves covered 136% of problem loans in
2025 (193% in 2024). Over the next 12 to 18 months, asset risk
metrics are expected to align with industry averages as growth
slows and the portfolio matures.
In 2025, C6's capitalization stood at 8.9% core regulatory capital
(CET 1) and 5.7% adjusted tangible common equity to risk weighted
assets (TCE/RWA), a negative driver to the bank's credit profile
compared to similar sized banks in Brazil, especially when
considered the continued high RWA expansion expected for 2026.
However, the strong internal earnings generation have supported its
growth plans in 2024 and 2025, as well as the regulatory demands.
Future earnings are expected to drive TCE growth and improve
capital metrics in the next two years.
The bank reported BRL2.5 billion in net income in 2025, up 8.4%
from 2024, driven by recurring revenue growth and lower credit
costs. Net revenue rose 8.9%, supported by a 5.9% increase in net
interest income and an 18.6% rise in fee income, reflecting broader
credit origination. Net income to tangible assets averaged 1.8% in
the past two years, was also supported by gains of scale, from its
low-cost digital platform. While profitability will continue to
benefit from growing earnings diversification as the bank continue
to expand its customer base, the highly competitive banking
dynamics in Brazil will likely pressure spreads and origination
volumes in the next 12 to 18 months, challenging current levels of
return on assets.
C6's expansion have been supported by its increasing presence in
retail banking that lead the bank to reach 33 million clients in
2025 that provides the bulk of the bank's funding mix (61%), one of
key strength of its credit profile. This is complemented by broker
deposits (27%) and institutional investors (11%), which provides
long-term resources supporting the longer tenor payroll products
and auto loans. The bank presented less stable funds ratio of 20.2%
in December 2025 while maintaining adequate levels of core banking
liquidity at 17.4% in the same period despite the strong growth.
Governance and risk management structure has been further
strengthen with the partnership with JPMorgan Chase & Co. (JP
Morgan, A1 stable), that has 46% of the bank's equity in 2025, and
which provides three seats in C6's board of directors, supporting
product structuring, compliance and legal departments, among
others.
The stable outlook on the long-term deposit ratings reflects
Moody's views that C6's fundamentals will remain largely unchanged
in the next 12 to 18 months despite challenges ahead that will
continue to pressure asset risks, given the bank's continued high
growth strategy in 2026.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade of C6's Ba3 ratings could occur if the bank continues to
present strong revenue generation able to improve its
capitalization metrics that could be more aligned to higher rated
peers, reports adequate asset quality metrics with more moderate
loan growth levels. Downward pressure on C6's ratings could occur
if there is a sudden fall in profitability fundamentals, which
would reduce the already low capital level or if there is a
material change in strategy that could result in a shar increase in
problem loans and credit costs. Downward pressure could also arise
its loan loss provisions increase materially because of adverse
selection.
ESG Considerations
With respect to governance, it is a key aspect of the rating
analysis because any weaknesses in this area can lead to
deterioration in an issuer's credit quality, while any governance
strengths can benefit an issuer's credit profile. Moody's also
views governance as largely internal rather than externally driven.
C6's governance considerations takes into account its high growth
strategy that pose additional risk to asset risk and profitability
for the next 12 to 18 months. This is reflected in the Credit
Impact Score of CIS-3 and G-3 governance issuer profile score that
indicates limited impact of ESG considerations on its ratings. The
bank has a controlling group led by experienced banker Marcelo
Kalim and minority strategic partner JP Morgan. Both the
shareholders and management team have a track record of consistent
financial strategies and effective risk controls for a bank that is
in its initial years. Risk management aligns with industry
standards. The board consists of seven members: four from the
controlling shareholder and three from JP Morgan, which also
appoints the compliance and legal heads.
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: Middle East War Squeezes Farm Costs on All Fronts
---------------------------------------------------------
Rio Times Online reports that Brazil agribusiness is facing its
most severe input cost shock since the Russia-Ukraine war, but this
time without the commodity price boom that cushioned the blow. The
escalation of the US-Israel conflict with Iran has disrupted the
Strait of Hormuz, sent oil toward $100 a barrel, and triggered a
scramble for fertilizers that the world's largest food exporter can
ill afford, according to Rio Times Online.
The Rio Times, a Latin American financial news outlet, examines how
the conflict is transmitting through energy, fertilizers, and
logistics to threaten the planning of Brazil's 2026/27 crop season
- a harvest that could determine whether the country extends or
breaks its run of record grain production.
Brazil Agribusiness: Diesel First, Fertilizers Next
The immediate pain is diesel, Rio Times relates. Farmers in Rio
Grande do Sul have suspended soy and rice harvests because fuel
simply ran out at the farm gate, the report notes. In Goias,
producers report diesel price increases of R$1 ($0.18) per liter,
the report relates. Sao Paulo pump prices for diesel jumped 8.4% in
a single week, with gasoline up 11%, according to the national
petroleum regulator ANP, the report says.
"Concern number one is diesel - prices and continuity of supply,"
said Bruno Lucchi, technical director of the CNA agricultural
confederation. The timing is brutal: Brazil is simultaneously
harvesting its summer crop and planting winter wheat and
second-crop corn, both of which depend on mechanized operations
running on diesel, the report discloses.
But the structural threat is fertilizers. Brazil imports 85% of its
supply, and the Middle East accounts for roughly 35% of global urea
trade, 25-35% of ammonia, and a significant share of phosphate
logistics through Hormuz, the report says. Qatar Energy suspended
production at Ras Laffan - the world's largest LNG and fertilizer
hub - after Iranian attacks, cutting off a key source of the
natural gas feedstock used to manufacture nitrogen-based
fertilizers, the report notes.
Prices Rising, Margins Collapsing
The numbers are already moving, the report discloses. Egyptian
benchmark urea surged 37% from $485 to $665 per tonne, the report
says. At Brazilian ports, urea has risen over 15% and ammonium
nitrate roughly 28%, according to consultancy StoneX, the report
relays. Imported nitrogenous fertilizer prices are up about 20% on
a regional basis in Mato Grosso, according to the Famato state
agricultural federation, the report notes.
The problem is that commodity prices are not following costs
upward. Corn prices on the B3 exchange have risen, but not enough
to offset the fertilizer surge, the report relays. Rabobank warns
that fertilizer cost inflation is becoming structural while grain
prices may not react proportionally - the classic margin
compression that devastates farm profitability, the report says.
"Not even during the pandemic did we see such a drastic impact with
price increases and diesel shortages," said Abramilho president
Paulo Bertolini. The corn producers’ association warned that a
"save yourself" mentality is setting in across the sector, the
report discloses.
The real risk lands in September, when planting for the 2026/27
summer crop begins, the report says. Only 30% of fertilizer needs
have been purchased so far, below the 40% historical average, the
report relays. If prices keep rising, the government's own
agriculture ministry has warned of a potential 1-3 million tonne
deficit in phosphate fertilizers and a possible 20% shortfall in
supply - enough to compromise productivity and food security, the
report discloses. Agriculture Minister Carlos Favaro urged calm,
saying it is "a moment to monitor" rather than panic, but the
sector is already pricing in pain, the report discloses. For
Brazil agribusiness, the equation is stark: costs are rising,
commodity prices are flat, credit is expensive, and the conflict
shows no sign of ending, 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.
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E C U A D O R
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BANCO PICHINCHA: Fitch Hikes LT IDR to 'B', Outlook Stable
----------------------------------------------------------
Fitch Ratings has upgraded the Viability Ratings (VRs) and Issuer
Default Ratings (IDRs) of six Ecuadorian banks with public
international ratings, and a Stable Rating Outlook was assigned to
Banco Pichincha C.A. y Subsidiarias (Pichincha), Banco Guayaquil,
S.A. (Guayaquil), Banco del Austro S.A. (Austro) and Banco
Bolivariano C.A. (Bolivariano). This rating action follows the
recent upgrade of Ecuador's Long-Term (LT) IDR to 'B-' from 'CCC+'
and the assignment of a Stable Outlook, as well as the upgrade of
the Country Ceiling (CC) to 'B+' from 'B'.
The upgrade translated into an improvement in Ecuadorian banks'
operating environment (OE) scores, as Fitch believes the higher
sovereign rating will enhance the banking system's OE by lowering
country risk. That, in turn, should reduce risk premiums and
funding costs, improve access to wholesale funding markets,
stabilize the macroeconomic and policy backdrop, revive investor
appetite, and potentially resume capital inflows.
Key Rating Drivers
Pichincha
Fitch has upgraded Pichincha's VR to 'b' from 'ccc+' and its LT IDR
to 'B' from 'CCC+', as well as assigned a Stable Outlook to the LT
IDR. Fitch has also upgraded the Short‑Term (ST) IDR to 'B' from
'C' and affirmed the Government Support Rating (GSR) at 'ns'.
Pichincha's ratings are driven by its standalone creditworthiness,
as captured in its VR. Pichincha's international diversification
translates into an OE score of 'b', above those of local peers and
the sovereign rating.
The bank's LT IDR is now one notch above the sovereign rating,
reflecting the improvements in the OE and a lower risk perception.
These factors should help the bank maintain its strong franchise
and business model as the largest bank in Ecuador's financial
system. Its geographical diversification — through operations in
higher‑rated jurisdictions — also compares favorably with local
peers.
In Fitch's opinion, Pichincha's profile is expected to be further
supported by the improvement of the OE. The ratings also reflect an
adequate financial profile that has remained resilient throughout
the economic cycle. Together, this positioning, leadership and
stable performance strengthens Pichincha's ability to absorb
potential macroeconomic risks relative to lower‑rated peers.
The ratings also reflect Fitch's expectation that Pichincha would
maintain its capacity to meet its obligations even in the event of
a sovereign default, without sovereign‑imposed restrictions.
However, the rating uplift is constrained to one notch given the
bank's moderate exposure to sovereign risk, primarily due to the
concentration of its operations in Ecuador.
The bank's GSR of 'ns' (no support) reflects that, despite
Pichincha's significant market share and local franchise, Fitch
believes there is no reasonable assumption of support forthcoming
from the sovereign due to Ecuador's limited financial flexibility
and the lack of a lender of last resort.
Guayaquil
Fitch has upgraded Guayaquil's VR to 'b-' from 'ccc+' and its LT
IDR to 'B-' from 'CCC+', as well as assigned a Stable Outlook to
the LT IDR. Fitch has also upgraded the ST IDR to 'B' from 'C' and
affirmed the GSR at 'ns'.
Guayaquil's ratings are driven by its standalone creditworthiness,
as captured in its VR. Guayaquil's OE score is aligned with the
sovereign rating at 'b-', reflecting that its operations are fully
concentrated in the domestic market. The bank's LT IDR remains
equalized with the sovereign rating. The ratings also reflect a
strong franchise and business model as the second-largest bank in
Ecuador, as well as strong asset quality, improved profitability,
robust capital ratios and solid liquidity that supports ample
funding.
The GSR of 'ns' reflects that, despite Guayaquil's important market
share and local franchise, Fitch believes there is no reasonable
assumption of support being forthcoming from the sovereign due to
Ecuador's limited financial flexibility and the lack of a lender of
last resort.
Austro
Fitch upgraded Austro's VR to 'b-' from 'ccc+' and its LT IDR to
'B-' from 'CCC+', as well as assigned a Stable Outlook to the LT
IDR. Fitch also upgraded the ST IDR to 'B' from 'C' and affirmed
the GSR at 'ns'.
Austro's ratings are driven by its standalone creditworthiness, as
captured in its VR. The bank's OE score is aligned with the
sovereign rating at 'b-', reflecting that its operations are fully
concentrated in the domestic market. The ratings also reflect a
moderate franchise and business model as a midsize bank, stable
asset quality but vulnerable to OE risks given the concentration of
its credit operations in Cuenca, stable margins that support
profitability growth, lower capitalization levels, and strong
liquidity that supports funding stability.
Austro's GSR of 'ns' reflects Fitch's view that, notwithstanding
the bank's market share and local franchise, there is no reasonable
assumption of support from the sovereign due to Ecuador's limited
financial flexibility and the lack of a lender of last resort.
Bolivariano
Fitch upgraded Bolivariano's VR to 'b-' from 'ccc+' and its LT IDR
to 'B-' from 'CCC+', as well as assigned a Stable Outlook to the LT
IDR. Fitch also upgraded the ST IDR to 'B' from 'C' and affirmed
the GSR at 'ns'.
Bolivariano's IDR is driven by its intrinsic credit profile as
reflected in its VR. The ratings continue to be capped by the
Ecuadoran banks' OE score of 'b-', which is aligned with the
sovereign rating and is expected to continue influencing the local
banks' performance. The bank's VR also mirrors its business model
consistently focused on lower risk segments, a sound local market
position and reasonable risk policies. This also supports good
credit quality in the loan portfolio, reasonable profitability
metrics, and stable —though moderate — capitalization,
alongside a solid, diversified funding and liquidity profile.
The GSR of 'ns' reflects that despite Bolivariano's moderate market
share and local franchise, Fitch believes that there is no
reasonable assumption of support forthcoming from the sovereign.
This is due to Ecuador's limited financial flexibility and the lack
of a lender of last resort.
Support-Driven Banks
Banco de la Producción S.A. Produbanco y Subsidiarias
(Produbanco)
Fitch has affirmed Produbanco's LT IDR at 'B-', reflecting the
bank's Shareholder Support Rating (SSR) and Fitch's view of parent
Promerica Financial Corporation's (PFC) ability and willingness to
provide support if needed. PFC's ability to support is evidenced by
its LT IDR of 'B+' and its Record of Support. In line with this,
Produbanco's SSR has been affirmed at 'b-', two notches below
PFC's, as Produbanco represents about 34% of PFC's consolidated
assets. This implies that any required support would likely be
sizable relative to the parent's capacity. The Outlook for the LT
IDR is Stable.
The rating also reflects Fitch's expectation of strong parent
support because Produbanco is a long-standing core subsidiary of
PFC, delivering essential products and services to the group. PFC's
propensity and commitment to support are further evidenced by the
high degree of operational and managerial integration and the
material reputational implications of a subsidiary default.
Produbanco's VR has also been upgraded to 'b-' from 'ccc+'. The VR
is driven by an OE score aligned with the sovereign rating of 'b-',
reflecting the bank's exclusive focus on the domestic market. The
ratings also factor in Produbanco's strong franchise and business
model as Ecuador's third-largest private bank and its solid
liquidity, while also reflecting structurally low capitalization
and pressured asset quality and profitability.
Banco ProCredit S.A. (ProCredit)
Fitch has upgraded ProCredit's LT IDRs and LT IDR ex-government
support (xgs) to 'B+' from 'B'. The Outlook for the LT IDR is
Stable. ProCredit's IDRs and SSR reflect limited synergies and
moderated expected support from its parent, ProCredit Holding AG
(BBB/Stable), if needed. However, the support assessment is highly
influenced by the country risk where the bank operates and is
therefore capped by Ecuador's CC of 'B+'. Consequently, Fitch has
upgraded ProCredit's SSR to 'b+' from 'b'. In addition, Fitch has
affirmed ProCredit's ST IDRs and ST IDR (xgs) at 'B'.
ProCredit's VR has been affirmed at 'ccc+'. The VR reflects its
limited business profile, its asset quality that remains challenged
and its persistent operating losses.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Pichincha
IDRs and VR:
- The IDRs are sensitive to negative changes in the sovereign
rating or further deterioration within the local OE. In a sovereign
downgrade scenario Pichincha's ratings could be downgraded,
resulting in an equalization with the sovereign rating;
- The IDRs and VR could be downgraded if there is material and
persistent deterioration of the bank's business and financial
profile, although this is unlikely at the current very low rating
levels;
- Ratings could be pressured if the bank reduces its operations in
higher‑rated international jurisdictions, or if those
jurisdictions experience deterioration.
GSR:
- Pichincha's GSR has no downgrade potential as it is at the lowest
possible level.
Guayaquil
IDRs and VR:
- The IDRs are sensitive to changes in the sovereign rating or to
further deterioration within the local OE;
- The IDRs and VR could be downgraded if there is significant
deterioration in the banks' intrinsic credit profile, although
downside potential due to intrinsic financial deterioration is
somewhat limited given the low VR level imposed by the sovereign
constraint.
GSR:
- The GSR has no downgrade potential as it is at the lowest
possible level.
Austro
- The IDRs are sensitive to changes in the sovereign rating or
further deterioration within the local OE;
- The IDRs and VR could be downgraded if there is significant
deterioration in the banks' intrinsic credit profile. However,
downside potential due to intrinsic financial deterioration is
somewhat limited given the low VR level imposed by the sovereign
constraint.
Bolivariano
IDRs and VR:
- The IDRs are sensitive to changes in the sovereign rating or to
further deterioration of the local OE;
- The IDRs and VR could be downgraded if there is significant
deterioration in the bank's business and financial profiles,
although downside potential is somewhat limited given the low VR
level imposed by the sovereign constraint.
GSR:
- The GSR has no downgrade potential as it is at the lowest
possible level.
Produbanco
IDR and SSR:
- Produbanco's IDRs and SSR could be downgraded if PFC's propensity
or ability to support materially weakens or if regulatory controls
undermine potential support.
VR:
- The VR would be downgraded if the Fitch Core
Capital/Risk-Weighted Assets ratio is sustained below 9% without a
credible plan to strengthen and restore capitalization metrics,
along with deterioration in its profitability performance.
ProCredit
IDR and VR:
- ProCredit's IDRs could be downgraded if the CC is downgraded or
if PCH's propensity or ability to support is materially weakened;
- The VR could be downgraded if asset quality deteriorates sharply,
leading to weaker profitability and a material decline in capital
metrics.
SSR:
- ProCredit's SSR could be downgraded if PCH's propensity or
ability to support materially weakens.
XGS
- ProCredit's LT IDR ex-government support (xgs) could be
downgraded if PCH's ability or propensity to provide support
weakens, as assessed by Fitch. The former could stem from an
increase in country risks as assessed by Fitch.
- ST IDR (xgs) are primarily sensitive to changes in LT IDR (xgs)
ratings and could be downgraded if the latter is downgraded and the
new LT ratings map to lower ST ratings, in accordance with Fitch's
criteria.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Pichincha
IDRs and VR:
- Pichincha's upside potential is limited. In the long term, a
rating upgrade would require improved prospects for the OE and a
meaningful and sustained improvement in the bank's core
profitability, along with sustained good asset quality and capital
metrics.
GSR:
- Ecuador's propensity or ability to provide timely support to
Pichincha is not likely to change given the sovereign's low
sub-investment-grade IDR. As such, the GSR has no upgrade
potential.
Guayaquil
IDRs and VR:
- Guayaquil's upside potential is limited. In the long term, a
rating upgrade would require improved prospects for the OE and a
meaningful and sustained improvement in the bank's earnings
generation which translates into a higher total operating income
and core profitability, along with adequate credit quality and
capitalization.
GSR:
- Ecuador's propensity or ability to provide timely support to
Guayaquil is not likely to change given the sovereign's low
sub-investment-grade IDR. As such, the GSR has no upgrade
potential.
Austro
IDRs and VR:
- Austro's upside potential is limited. In the long term, a rating
upgrade would require improved prospects for the OE, a meaningful
and sustained increase in the bank's core profitability, and
enhancements in the bank's credit quality and capitalization.
GSR:
- Ecuador's propensity or ability to provide timely support to
Austro is not likely to change given the sovereign's low
sub-investment-grade IDR. As such, the GSR has no upgrade
potential.
Bolivariano
IDRs and VR:
- Bolivariano's rating upside potential is limited. In the long
term, an upgrade would require improved prospects for the OE and a
meaningful and sustained improvement in the bank's core
profitability and capital ratios.
GSR:
- The government of Ecuador's propensity or ability to provide
timely support to Bolivariano is not likely to change given the
sovereign's low sub-investment-grade IDR. As such, the GSR has no
upgrade potential.
Produbanco
IDR and SSR:
- Produbanco's IDR could be upgraded in the event of an upgrade of
PFC's LT IDR.
VR:
- Upside potential is limited. However, in the long term, a VR
upgrade would require improved prospects for the OE and a
meaningful and sustained improvement of capital metrics and core
profitability, combined with improvements in the bank's asset
quality.
ProCredit
IDR:
- ProCredit's IDR could be upgraded in the event of an upgrade of
Ecuador's CC.
- The VR has limited upside potential considering the still
challenging OE.
VR:
- An upgrade of ProCredit's VR would also require sustainable
improvements of its profitability ratios.
SSR:
- ProCredit's SSR could be upgraded in the event of an upgrade of
Ecuador's CC.
XGS
- An upgrade of ProCredit's LT IDR (xgs), which is constrained by
Ecuador's transfer and convertibility risks, would require an
upgrade of Ecuador's CC, provided Fitch's view on the parent bank's
ability and propensity to provide support remains otherwise
unchanged.
- The ST IDR (xgs) rating is primarily sensitive to changes in the
LT IDR (xgs) It could be upgraded if the latter is upgraded and the
new LT rating maps to a higher ST rating, in accordance with
Fitch's criteria.
VR ADJUSTMENTS
Guayaquil's VR of 'b-' has been assigned below the 'b+' implied VR
due to the following adjustment reason: OE/Sovereign Constraint
(Negative).
Produbanco's VR of 'b-' has been assigned below the 'b' implied VR
due to the following adjustment reason: OE (Negative).
Bolivariano's VR of 'b-' has been assigned below the 'b' implied
VR. The following factor was identified as relevant: OE
(Negative).
Bolivariano's asset quality score of 'b+' is below the 'bb'
category implied score due to the following adjustment reason:
Concentrations (Negative).
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 Prior
----------- ------ -----
Banco Bolivariano
C.A. LT IDR B- Upgrade CCC+
ST IDR B Upgrade C
Viability b- Upgrade ccc+
Government Support ns Affirmed ns
Banco Pichincha
C.A. y
Subsidiarias LT IDR B Upgrade CCC+
ST IDR B Upgrade C
Viability b Upgrade ccc+
Government Support ns Affirmed ns
Banco del
Austro S.A. LT IDR B- Upgrade CCC+
ST IDR B Upgrade C
Viability b- Upgrade ccc+
Government Support ns Affirmed ns
Banco de la
Produccion S.A.
Produbanco y
Subsidiarias LT IDR B- Affirmed B-
ST IDR B Affirmed B
Viability b- Upgrade ccc+
Shareholder Support b- Affirmed b-
Banco Guayaquil,
S.A. LT IDR B- Upgrade CCC+
ST IDR B Upgrade C
Viability b- Upgrade ccc+
Government Support ns Affirmed ns
Banco ProCredit
S.A. LT IDR B+ Upgrade B
ST IDR B Affirmed B
Viability ccc+ Affirmed ccc+
LT IDR (xgs) B+(xgs)Upgrade B(xgs)
Shareholder Support b+ Upgrade b
ST IDR (xgs) B(xgs) Affirmed B(xgs)
=============
J A M A I C A
=============
JAMAICA: Robinson Takes Jab at 'Unconscionable' $18BB Tax Package
-----------------------------------------------------------------
RJR News reports that Opposition Spokesman on Finance Julian
Robinson says the imposition of $18 billion in new taxes in the
aftermath of Hurricane Melissa, which resulted in infrastructural
damage of $1.4 trillion and losses of $620 billion, is
unconscionable.
Mr. Robinson argued that the cost of living for all Jamaicans,
particularly the poorest, will be increased because of this tax
package, according to RJR News.
He pointed out that increasing the cost of living is not good
policy and, as a result, the opposition will not support it, the
report notes.
Mr. Robinson also argued that imposing new taxes on an economy
which is already declining will only accelerate the decline, the
report relays.
The Planning Institute of Jamaica recently projected a 7.5 per cent
decline in real GDP during the last quarter of 2025, and suggested
that the economy could fall back into a recession, the report
discloses.
Mr. Robinson suggested that a more appropriate response from the
government would be to provide a stimulus or growth strategy, which
would enable the country to drive more revenues in a sustainable
way, the report adds.
About Jamaica
Jamaica is an island country situated in the Caribbean Sea. Jamaica
is an upper-middle income country with an economy heavily dependent
on tourism. Other major sectors of the Jamaican economy include
agriculture, mining, manufacturing, petroleum refining, financial
and insurance services.
On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a
positive rating outlook. In October 2023, Moody's upgraded the
Government of Jamaica's long-term issuer and senior unsecured
ratings to B1 from B2, and senior unsecured shelf rating to (P)B1
from (P)B2. The outlook has been changed to positive from stable.
In September 2024, S&P affirmed 'BB-/B' longterm foreign and local
currency sovereign credit ratings on Jamaica and revised outlook to
positive.
===========
P A N A M A
===========
BAC INTERNATIONAL: Fitch Affirms 'BB+' IDR, Alters Outlook to Pos.
------------------------------------------------------------------
Fitch Ratings has revised the Rating Outlook for BAC International
Bank, Inc.'s (BIB) Long-Term (LT) Issuer Default Rating (IDR) to
Positive from Stable and affirmed it at 'BB+'. Fitch has also
affirmed BIB's Short-Term (ST) IDR at 'B', Viability Rating (VR) at
'bb+' and Government Support Rating at 'ns'. Additionally, Fitch
affirmed the LT and ST national ratings at 'AA+(pan)' and
'F1+(pan)', respectively, and local debt ratings and revised the
Outlook for the LT national rating to Positive from Stable.
The Outlook revision reflects BIB's increased share of earning
assets in Panama after it acquired Multi Financial Group, Inc,
including Multibank, Inc. The acquisition immediately improved
Fitch's blended analysis of the Operating Environment (OE) score,
resulting in an upgrade to 'bb+/Stable' from 'bb/Positive'. Fitch
expects the bank's profitability to benefit from it. Fitch believes
that if BIB is able to further strengthen its market position in
Panama; while maintain its good financial performance and franchise
in Central America, the bank's rating could be upgraded in the
medium term.
Key Rating Drivers
Multijurisdictional Operating Environment (OE): Fitch assesses
BIB's blended OE based on the weighted average of its gross earning
assets in each country where it operates. Panama's higher
participation due to Multibank's acquisition improved BIB's blended
OE assessment by adding more share in an OE with a 'bb+' score.
Geographic diversification enhances BIB's credit profile resilience
to adverse events in each jurisdiction, mitigating OE downside
risks.
Ratings Underpinned by Creditworthiness: BIB's IDRs and National
Ratings are driven by its 'bb+' VR, which reflects its consolidated
business profile, sound risk framework, and the good performance of
its six banking operations in Central America. The product mix will
not change materially with Multibank's acquisition. Fitch estimates
BIB will continue to consolidate its leadership in the region by
gaining market share. The bank's strategically focuses on
profitability and client needs through digital innovation and a
strong payment ecosystem. BIB's total operating income reached
USD3.5 billion at YE25, higher than the last four-year average
(2021-2024: USD2.6 billion).
Good Loan Quality: BIB's stage-3 loans to gross loans metric
improved to 2.3% at YE25, compared with 3.2% on average between
2024 and 2021. Fitch's view Multibank's loan portfolio will not add
material asset quality pressures. Fitch considers BIB's effective
risk controls, strict and prudent underwriting standards, and
collection policies will continue to contain asset quality
pressures. The bank's balanced orientation between retail,
residential mortgage and commercial loans has translated in a low
concentration by debtor. Fitch expects NPL ratios to remain below
2.5% over the rating horizon.
Consistent Profitability: Fitch has revised the outlook to positive
for the Earnings and Profitability score. BIB's profitability
remained good, boosted by loan expansion, a higher NIM mainly by
lower funding costs, controlled loan impairment charges,
operational efficiency, as well as the contribution of non-interest
income. This was reflected in an operating profit to risk weighed
assets (RWA) ratio of 3.0% at YE25 (2021-2024 average: 2.7%), which
Fitch projects will remain stable. Operating efficiency continued
in an improving trend as expenses absorbed 52.5% of gross revenues
in 2025 (2024: 54.2%;), mainly due to digitalization initiatives.
Stable Capitalization: BIB's capitalization is supported by
consistent earnings generation that offset dividend payments and
the RWA growth. The bank's CET1 to RWA ratio was 11.8%, and Fitch
expects this level to be sustainable supported by the bank's good
internal capital generation, along with moderate credit growth over
the rating horizon. Multibank's acquisition is neutral to BIB's
capitalization as total capital ratio stood at 12.2% after the
recent development of the transaction.
Good Regional Funding Franchise: BIB's strong and recognized
regional market position continue to benefit its funding structure
mostly relying in a stable and diversified customer deposit
structure (YE25: 86% of total funding). At YE25, the loan to
deposit ratio was 94.1% in comparison with the 89.5% average for
2021 to 2024. Fitch expects over the foreseeable future,
Multibank's to not affect BIB's funding costs and interest
margins.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- A weaker assessment of BIB's blended OE by Fitch, due to a
material deterioration in the OE of Central America's largest
markets, could pressure BIB's IDR, VR and national ratings;
- BIB's IDR, VR and national ratings could also be pressured if a
significant deterioration in loan quality and persistent strain on
profitability, together with Multibank merger execution risk,
result in an operating profit to RWA ratio that remains below 1.5%
consistently.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Fitch could upgrade BIB's IDRs, VR and long-term national rating
if the bank consolidates its business profile without material
execution risks from Multibank. An upgrade would also require BIB
to maintain its TOI close to or above USD 3.0 billion and sustain
good financial performance. This includes a CET1 ratio consistently
above 12% and an operating profit to RWA ratio consistently above
3.0%;
- BIB's Short-Term National Rating has no upside potential because
it is at the highest level of the rating scale.
OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS
Senior Debt: The senior unsecured debt programs' National Ratings
of 'AA+(pan)' and 'F1+(pan)' are aligned with BIB's National
Ratings because the likelihood of default and expected average
recoveries are the same as those of the bank.
Junior Debt: The subordinated bond National Rating of 'A(pan)' is
four notches below the anchor rating, BIB's Long-Term National
Rating, comprising a two-notch deduction for loss severity due to
deep subordination, and two additional notches for incremental
nonperformance risk, given their ability to omit noncumulative
coupons.
GSR: BIB's 'ns' (No Support) GSR indicates that external support,
while possible, cannot be relied upon. This is because of Fitch's
view of Panama's limited ability to support the banking system's
large size relative to the local economy and weak support stance
due to the country's lack of a lender of last resort.
OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- BIB's National debt Ratings would be downgraded if BIB's national
ratings are downgraded
- There is no downside potential for GSR because this is the lowest
level in the respective scale.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- BIB's LT National debt Ratings would be upgraded if BIB's LT
National Rating is upgraded.
- The senior unsecured bonds' ST national rating is at the top of
the scale and therefore has no upside potential.
- As Panama is a dollarized country with no lender of last resort,
an upgrade in GSR is unlikely.
VR ADJUSTMENTS
The operating environment score of 'bb+' is below the 'bbb'
category implied score due to the following adjustment reason:
geographical scope (negative).
The business profile score of 'bbb-' is above the 'bb' category
implied score due to the following adjustment reasons: historical
and future developments (positive).
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 Prior
----------- ------ -----
BAC International
Bank, Inc. LT IDR BB+ Affirmed BB+
ST IDR B Affirmed B
Natl LT AA+(pan) Affirmed AA+(pan)
Natl ST F1+(pan) Affirmed F1+(pan)
Viability bb+ Affirmed bb+
Government Support ns Affirmed ns
senior
unsecured Natl LT AA+(pan) Affirmed AA+(pan)
junior
subordinated Natl LT A(pan) Affirmed A(pan)
senior
unsecured Natl ST F1+(pan) Affirmed F1+(pan)
PROMERICA FINANCIAL: Fitch Affirms B+ Long-Term IDR, Outlook Stable
-------------------------------------------------------------------
Fitch Ratings has affirmed Promerica Financial Corporation's (PFC)
Long-Term Issuer Default Rating (IDR) at 'B+' and Short-Term IDR at
'B'. Fitch has also affirmed PFC's Viability Rating (VR) at 'b+',
Government Support Rating (GSR) at 'No Support' (ns) and its senior
secured debt rating at 'B+' with a Recovery Rating of 'RR4'. The
Rating Outlook for the Long-Term IDR is Stable.
Following Fitch's revision of the Ecuadorian banking system
Operating Environment (OE) score to 'b-'/Stable from 'ccc+', after
the upgrade of Ecuador's Long-Term IDR to 'B-'/Stable from 'CCC+',
PFC's ratings remain unchanged. The strengthening of Ecuador's OEs
has not been sufficient to improve the group's combined OE, which
Fitch assesses at 'b+'.
Key Rating Drivers
Ratings Driven by Intrinsic Creditworthiness: PFC's IDRs are driven
by its intrinsic credit profile, as reflected in its implicit VR of
'b+'. The VR reflects the group's consolidated business and risk
profiles and steady financial performance across nine countries.
The ratings also factor in PFC's exposure to low-rated economies in
Latin American markets, controlled consolidated asset quality
metrics, moderate profitability that supports adequate
capitalization, and a good funding and liquidity profile
underpinned by a stable deposit structure.
Improved Blended OE: OE is a key driver of PFC's creditworthiness
and is calculated as a weighted average of assets across the
group's operating jurisdictions. PFC's combined OE benefits from
geographical diversification that offsets the group's high exposure
to Ecuador through its main subsidiary, Banco de la Produccion S.A.
(Produbanco) y Subsidiarias, as well as other riskier OEs. Fitch
expects the enhanced OE to continue supporting the group's
creditworthiness over the foreseeable future as OEs consistently
strengthen further.
No Government Support: The 'ns' GSRs reflect that external support
is possible but cannot be relied upon. This is due to the banking
system's large size relative to Panama's economy and the country's
weak support stance, as it lacks a lender of last resort.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- The VR and IDR could be negatively affected by a sustained
decline in the CET1 ratio below 8%, and a reduction in subsidiary
dividends to PFC that pressures its debt service capacity;
- The ratings could also be pressured by a materially weaker
assessment of PFC's multijurisdictional OE, especially in its
largest markets, although this is not reflected in Fitch's baseline
scenario;
- Because the GSR is already at the lowest level of its scale,
there is no downside potential for the GSR.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- The ratings could be upgraded if the OE score improves materially
and consistently and PFC maintains a strong business profile;
- An upgrade of the GSR is unlikely because Panama is a dollarized
country with no lender of last resort.
OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS
Key Ratings Drivers
The rating for PFC's USD225 million senior notes is in line with
its Long-Term IDR, because the likelihood of default and the
expected average recovery rate are the same as for the group.
Although these notes are senior secured, Fitch believes the
collateral mechanism would not significantly enhance recovery
rates. In accordance with Fitch's rating criteria, recovery
prospects for the notes are average, as reflected in their Recovery
Rating of 'RR4'.
OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- PFC's senior debt rating would be downgraded if its Long-Term IDR
is downgraded.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- PFC's senior debt rating would be upgraded if its Long-Term IDR
is upgraded.
VR ADJUSTMENTS
The operating environment score of 'b+' is below the 'bbb' category
implied score due to the following adjustment reason: Geographical
scope (negative).
The Business Profile score of 'bb' is above the 'b' category
implied score due to the following adjustments: Business Model
(positive) and Market Position (positive).
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
----------- ------ -------- -----
Promerica Financial
Corporation LT IDR B+ Affirmed B+
ST IDR B Affirmed B
Viability b+ Affirmed b+
Government Support ns Affirmed ns
senior secured LT B+ Affirmed RR4 B+
===============
P A R A G U A Y
===============
UENO BANK: Fitch Puts 'BB' Final Rating to USD350M Sr. Unsec. Notes
-------------------------------------------------------------------
Fitch Ratings has assigned a final 'BB' rating to Ueno Bank SA's
(Ueno) USD350 million senior unsecured notes. The notes have a
five-year maturity and a coupon of 6.7%. Net proceeds will be used
for general corporate purposes, including financing growth
opportunities, and credit origination.
The final rating is in line with the expected rating that Fitch
assigned to the proposed debt on Feb. 26, 2026. Please see "Fitch
Expects to Rate Ueno Bank's Senior Unsecured Notes 'BB(EXP)'".
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 Bank'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".
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.
Date of Relevant Committee
26-Feb-2026
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 Prior
----------- ------ -----
Ueno Bank SA
senior unsecured LT BB New Rating BB(EXP)
===============
X X X X X X X X
===============
LATAM: IDB Closes Subscription Process to Accelerate Development
----------------------------------------------------------------
IDB Invest successfully closed the subscription process for its
$3.5 billion capital increase, approved by the Boards of Governors
in 2024 in Punta Cana. The milestone strengthens the institution's
capacity to finance companies and mobilize private investment
across Latin America and the Caribbean.
The closing of the subscription process shows strong support from
regional and non-regional shareholders for IDB Invest's business
model and its role in mobilizing private capital for development.
Through its "originate-to-share" model, IDB Invest develops
projects and catalyzes private investors to support infrastructure,
energy, industry, and other productive sectors across the region.
With the additional capital, IDB Invest expects to increase its
financing and mobilization capacity from about $13 billion today to
roughly $22 billion annually over the next decade, allowing the
institution to support more projects that create jobs, strengthen
productive sectors, and expand economic opportunity across Latin
America and the Caribbean.
"Strengthening IDB Invest is central to the IDB Group’s strategy
to advance private-sector-led development in Latin America and the
Caribbean," said IDB Group President Ilan Goldfajn. "This capital
increase expands our ability to mobilize private investment and
support projects that drive growth and create jobs."
"This capital increase underscores our shareholders' confidence in
IDB Invest’s originate‑to‑share business model, designed to
scale impact by crowding in private capital," said James P.
Scriven, CEO of IDB Invest. "With this additional capacity, we will
expand our financing and mobilization to deliver projects that
boost economic growth across Latin America and the Caribbean."
The capital increase builds on the decision by Governors in 2015 to
transform the Inter-American Investment Corporation - now IDB
Invest - into the IDB Group's private-sector arm, with a stronger
mandate to finance projects and catalyze private investment across
the region.
In 2025, IDB Invest reached a record $13.1 billion in total
activity (a five-fold increase from 2016), including $7.7 billion
in mobilization, the highest level in its history.
Since 2016, IDB Invest has channeled more than $75 billion to Latin
America and the Caribbean, supporting over 700 projects in sectors
including infrastructure, energy, trade financing, health, and
productive development.
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S U B S C R I P T I O N I N F O R M A T I O N
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