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260320.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, March 20, 2026, Vol. 27, No. 57 Headlines B R A Z I L BRAZIL: Cuts Interest Rate for First Time in Two Years COMPANHIA DE SANEAMENTO: Fitch Affirms 'BB+' IDR, Outlook Stable COMPANHIA SIDERURGICA: S&P Downgrades ICR to 'B', Outlook Negative C O S T A R I C A COSTA RICA: Growth Projected to Slow to 3.8% in 2026, IMF Says E C U A D O R CORPORACION QUIPORT: Fitch Hikes Rating on Sr. Secured Debt to 'B+' J A M A I C A JAMAICA: BOJ Outstanding Certificates of Deposit Valued at $136BB JAMAICA: Commuters Told to Brace For Possible Fare Hike M E X I C O DEL MONTE: Gets OK to Take Votes On Ch. 11 Plan P U E R T O R I C O DEL CAMPO AL: Commences Chapter 11 Bankruptcy in Puerto Rico PHOENIX FUND: Hires Sepulvado and Associates as Special Counsel PUERTO RICO: Rebollo Lopez's Claims Dismissed Without Prejudice - - - - - =========== B R A Z I L =========== BRAZIL: Cuts Interest Rate for First Time in Two Years ------------------------------------------------------ Richard Mann at Rio Times Online reports that the Brazil interest rate came down for the first time since May 2024 on March 18 night. The Copom - the central bank's monetary policy committee - voted unanimously to cut the benchmark Selic from 15% to 14.75%, beginning what it called a "calibration" of borrowing costs after holding rates at their highest level since 2006 for nine consecutive months, according to Rio Times Online. Why the Brazil Interest Rate Cut Was So Small Until early March, analysts had spent 23 consecutive weeks pricing a 0.50-point cut as the opening move of the easing cycle, the report relays. Then the US-Israel military campaign against Iran sent Brent crude above $100 a barrel and Iran’s Revolutionary Guard threatened to close the Strait of Hormuz - the chokepoint for 20% of the world's oil, the report notes. That changed everything, the report discloses. The Copom's statement was blunt: "The external environment has become more uncertain due to the intensification of geopolitical conflicts in the Middle East, with repercussions on global financial conditions," the report discloses. The committee raised its own 2026 inflation projection from 3.4% to 3.9%, and the weekly Focus survey of private economists jumped to 4.1%, the report says. Both numbers moved sharply in the wrong direction in just days, the report discloses. Goldman Sachs economist Alberto Ramos argued the cut only happened because the Copom had pre-committed to it in January, the report says. Rio Times Online discloses that without that forward guidance, he wrote, "the obvious choice was a hold." But a 0.25-point move was "more defensible" - easier to accelerate later if the war ends than to reverse if it escalates, the report relays. Brazil Cuts Interest Rate for First Time in Two Years Unlike the January meeting, where the Copom explicitly signaled it would begin cutting in March, March 18 statement left the path entirely open, the report says. The committee said adjustments to the pace of easing would depend on "new information" - particularly how the Middle East conflict affects commodity prices, supply chains, and inflation projections, the report notes. The next meeting is April 28-29. If oil retreats and inflation expectations stabilize, a 0.50-point cut becomes the base case, the report notes. If the Hormuz crisis deepens, the Copom could pause entirely, the report discloses. The committee's inflation projection for the third quarter of 2027 - its relevant policy horizon - rose from 3.2% to 3.3%, still above the 3% target, the report says. Every tick higher in that number narrows the space for further cuts, the report discloses. What It Means for the Economy The Selic rate was raised seven consecutive times between September 2024 and June 2025, then held at 15% through four straight meetings, the report says. GDP growth has already slowed to an annualized crawl - just 0.1% in Q4 2025 - and the Focus survey projects only 1.83% growth for 2026, well below the 3.2% average of the prior three years, the report relays. The cut will begin easing borrowing costs for mortgages, car loans, and corporate credit, though the effect is gradual at this pace, the report says. Markets still expect the Selic to reach 12.25% by year-end - roughly 275 basis points of total cuts - but that projection assumed a world without a Middle East war, the report notes. The 12-month trailing inflation rate fell to 3.81% in February, the first time below 4% since May 2024, giving the central bank some cover, the report says. The unanimous decision under Central Bank president Gabriel Galipolo - who raised rates by 275 basis points during his first year - preserves the institution’s credibility, the report discloses. The question now is whether the Iran war will let Brazil enjoy the peace dividend, or whether $100 oil will force the central bank to choose between growth and price stability all over again, 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. COMPANHIA DE SANEAMENTO: Fitch Affirms 'BB+' IDR, Outlook Stable ---------------------------------------------------------------- Fitch Ratings has affirmed Companhia de Saneamento Basico do Estado de Sao Paulo's (Sabesp) Long-Term Foreign Currency (FC) and Local Currency (LC) Issuer Default Ratings (IDRs) at 'BB+'. Fitch also affirmed Sabesp Lux S.a.r.l.'s senior unsecured notes at 'BB+', as well as Sabesp's Long-Term National Scale Rating and its senior unsecured debenture issuances at 'AAA(bra)'. The Rating Outlook is Stable. Sabesp's ratings reflect its solid business profile in Brazil's water/wastewater industry, which benefits from its large-scale operations and resilient demand. Sabesp's EBITDA margins are above the average of its Brazilian peers, and its ability to continue improving them is crucial for managing higher debt levels. Fitch expects the company to maintain moderate net leverage, despite significant projected negative FCF. Sabesp has strong flexibility to support capex and refinancing needs. Fitch evaluates Sabesp's standalone credit profile independently of its main shareholders. Key Rating Drivers Low Business Risk: Sabesp's credit profile benefits from its near monopoly on the provision of an essential service in its concession area. As the largest water/wastewater company in the Americas by customer base, its economies of scale that enhance profitability. Fitch's analysis considers the evolving regulatory environment and the hydrological risk inherent in Sabesp's business. The company's operations in the state of Sao Paulo are favorable, given the state has the largest GDP and population in the country. Above-Peer EBITDA Margin: Fitch believes Sabesp will continue to report high EBITDA margins, of around 61% in 2026 and 62% in 2027, compared to 59.2% in the latest 12-month period ended September 2025. This compares favorably with its Latin America peers. The company's increased profitability in recent quarters reflects operational efficiencies gained following its 2024 privatization and is crucial to mitigate pressure on its credit metrics. The average EBITDA margin was 46% in 2021-2024. The base case scenario forecasts EBITDA of around BRL15.7 billion in 2026 and BRL17.5 billion in 2027. Resilient Demand: Sabesp's credit profile benefits from resilient demand and a record of adequate tariff increases that support revenue predictability. Fitch assumes annual average tariff increases of around 7.2% from 2027 to 2029, supported by annual tariff revisions that incorporate higher capex levels. The total volume billed should grow by an average of 1.7% annually during this period, given the increasing number of connections and improved billing measures. The base case scenario assumes manageable levels of water losses and delinquency, with no water supply restrictions. Aggressive Capex Cycle: Sabesp has a capex plan of more than BRL70 billion for 2026-2029 to meet the post-privatization regulatory target of providing water distribution and sewage collection and treatment to 99% of the population in its operating region. The company focuses mainly on increasing its sewage collection and treatment ratio, which is currently around 95% and 85% respectively. It already complies with the water distribution target. Manageable Leverage Increase: Fitch expects Sabesp to sustain a strong financial profile through its capex cycle, despite estimates of higher indebtedness. The base-case scenario assumes the interest coverage ratio will decline to about 3.0x and net leverage will peak at 3.3x in the next three years. These ratios were 5.0x and 1.8x at the end of September 2025, respectively. Fitch also expects Sabesp's interest payments to remain high, despite expectations of lower interest rates in Brazil starting in 2026. Strong Negative FCF: Fitch estimates Sabesp's cash flow from operations (CFFO) at BRL7.5 billion in 2026, resulting in strong negative FCF of BRL13.1 billion after relevant investments of BRL19.6 billion and dividends of BRL1.0 billion. Annual FCF in 2027-2028 should average negative BRL10.8 billion, following an average CFFO of BRL9.0 billion and relevant average annual investments and dividends of BRL17.4 billion and BRL2.4 billion, respectively. The company is implementing a crucial operating efficiency strategy, including cost-cutting initiatives and commercial measures, which should improve cash flow generation and mitigate FCF pressure. Peer Analysis Aegea Saneamento e Participacoes S.A. (Aegea; LC and FC IDRs BB/Stable) is expected to report higher net leverage than Sabesp, at 3.0x-4.0x, reflecting its growth strategy, partly offset by stronger EBITDA margins. Sabesp's robust CFFO generation capacity also supports a one-notch difference in the IDR. Aegea's credit profile benefits from its diversified concessions within Brazil, while Sabesp operates exclusively in the state of Sao Paulo, which implies concentrated operational and regulatory risks. Sabesp compares favorably with Namibia Water Corporation Limited (NamWater; LC and FC IDRs BB-/Stable), a government-related entity in Namibia. NamWater's ratings are linked to the sovereign's rating because Fitch views its legal ringfencing and access and control as 'open'. NamWater's Standalone Credit Profile is also 'bb-', supported by the company's role as Namibia's water supplier, with a cost pass-through tariff framework and a strong financial profile. Fitch’s Key Rating-Case Assumptions - Total volume billed growth of 1.7% per year on average in 2026-2028, supported mainly by connection growth and stable consumption per connection; - Tariff increase of 10.65% in 2026 and 7.3% per year on average for 2027-2028; - Average annual capex of BRL18.1 billion in 2026-2028; - Average annual dividends of BRL1.9 billion in 2026-2028, equivalent to a payout ratio of 25% of net profit until 2026 and of 50% in 2027-2028. 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, Moderate), Sector Characteristics (bbb-, Moderate), Market and Competitive Positioning (bbb, Lower), Diversification and Asset Quality (bbb, Moderate), Company Operational Characteristics (bb+, Moderate), Profitability (bb+, Higher), 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+'. Fitch made no adjustments to the SCP, resulting in IDR`s of 'BB+'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Negative action on the Brazilian Country Ceiling, which will lead to negative action on the FC IDR; - EBITDA margins below 40%; - Net leverage sustained above 3.0x; - Increased regulatory risk; - Lower financial flexibility. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - A positive rating action on the LC IDR depends on FCF being neutral to slightly negative; - A positive rating action on the FC IDR depends on a positive rating action on the LC IDR and on the Brazilian Country Ceiling; - An upgrade of the National Scale Ratings is not possible because the rating is at the top of the national scale. Liquidity and Debt Structure Sabesp's strong access to financial market is a key rating factor, as it enables the company to finance its negative FCF and roll over existing debt. The company's strong cash position of BRL11.7 billion by the end of September 2025 is likely to decline as its capex plan is implemented. Sabesp has a lengthened debt maturity schedule, with BRL6.4 billion maturing in the short term. Fitch expects the company to sustain its cash balance-to-short term debt ratio above 1.0x through the cycle. By the end of September 2025, Sabesp's total debt of BRL35.3 billion consisted primarily of BRL17.1 billion in debenture issuances, funding of BRL12.2 billion from multilateral agencies, and BRL2.5 billion from Caixa Economica Federal (Caixa) and Banco Nacional de Desenvolvimento Economico e Social (BNDES). After September 2025, Sabesp raised significant funding, including BRL5.0 billion from its 37th debenture issuance and USD1.5 billion from the Inter-American Investment Corporation. Sabesp hedges all its FX debt exposure, which supports liquidity. Issuer Profile Sabesp is the largest basic sanitation company in Latin America, providing services to around 28 million people in 378 municipalities in the Brazilian state of São Paulo. Its main shareholders are Equatorial S.A. (15% ownership) and the São Paulo state (18%). 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 Sabesp. 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 ----------- ------ ----- Companhia de Saneamento Basico do Estado de Sao Paulo (SABESP) LT IDR BB+ Affirmed BB+ LC LT IDR BB+ Affirmed BB+ Natl LT AAA(bra)Affirmed AAA(bra) senior unsecured Natl LT AAA(bra)Affirmed AAA(bra) Sabesp Lux S.a r.l senior unsecured LT BB+ Affirmed BB+ COMPANHIA SIDERURGICA: S&P Downgrades ICR to 'B', Outlook Negative ------------------------------------------------------------------ On March 18, 2026, S&P Global Ratings lowered its ratings on Companhia Siderurgica Nacional (CSN) to 'B' from 'B+'. The negative outlook indicates that another downgrade is possible if asset sales stall or business conditions deteriorate, keeping leverage high, or if liquidity continues to deteriorate from higher-than-expected cash flow deficits and from difficulties in continuing to refinance short-term maturities. The downgrade reflects mounting short-term debt maturities, increasing risk aversion, and CSN's inability to reduce debt through internal cash generation. EBITDA at CSN will likely remain constrained in 2026 amid higher costs in mining, slower growth in the cement business, and ongoing challenges in steel. These factors, combined with a sizable interest burden and capital expenditure, will also continue to pressure its leverage. Management is attempting to improve the company's capital structure through divestments and new financing lines. But the complexity of these transactions, a volatile global economy, and increasing market risk aversion could weigh on its ability to reduce leverage in a timely manner. Rising macroeconomic uncertainty will likely weigh on CSN's performance in 2026 on the heels of weaker-than-expected 2025 results, which would leave the company further away from its leverage targets than S&P previously expected. S&P said, "We see limited upside for steel EBITDA coming from the recently implemented antitrust barriers. This is amid concerns about demand behavior, in a scenario of still high interest rates, which would weigh on consumption. In mining, potentially higher costs for freight will limit the upside coming from growing volumes (to close to 47 million tons in the year) and supportive prices year to date (at $103 per ton). And we now expect slower growth in cement, from more gradual price adjustments amid a highly competitive environment and limited demand upside. "Those factors combined contribute to our assumption of nominal EBITDA of R$10.5 billion in 2026, up from R$8.8 billion in 2025 but below our previous forecast of R$11.7 billion. This, coupled with about R$5.1 billion of interest payments and R$6.2 billion of capex in 2026, will result in a free operating cash flow (FOCF) deficit of R$410 million. It'll also keep leverage at the high end of the 5.0x-6.0x range, compared with 5.2x in our previous forecast, while funds from operations to debt barely reach 10%." S&P's metrics differ significantly from those reported by the company because of the following adjustments: -- S&P's debt metrics include the Transnordestina project's debt guaranteed by CSN, pension adjustments, iron ore prepayments, leasing obligations, asset retirement obligations, and tax installments. These added R$17.5 billion to CSN's debt as of Dec. 31, 2025. -- S&P's adjusted EBITDA does not include the contribution from MRS Logistica S.A. and excludes some nonrecurrent factors, such as gains or losses from asset sales and the recognition of the PIS/COFINS tax credits. Divestments are still CSN's main way of reducing leverage, but they depend on external factors and could lack in extent and timing to improve its capital structure materially. The company is focused on following through with announced sales of the cement business and a stake in NewCo CSN Infraestrutura, aiming to raise R$16 billion-R$18 billion from divestments. S&P said, "Cash inflows from sales are the most likely material way for CSN to reduce its nominal debt, in our view, and interest burden. But they could also reduce EBITDA. In our sensitivity analysis, if the cement business is sold for R$9 billion, pro forma adjusted debt to EBITDA would still stay above 5.0x in 2026." In addition, the complexity of these transactions adds uncertainty, with respect to their timing and execution. And given CSN's sizable nominal debt load of R$53 billion as of December 2025, as well as the expectation of continuous cash flow deficits, those potential alternatives could still fail to materially reduce leverage to levels commensurate with a higher rating. New refinancing could bring some relief to liquidity, but risks in improving cash flows remain a concern. CSN announced in its latest earnings call that it's working on a new collateral loan to address its short-term maturities. The loan could count with the shares of the cement subsidiary as collateral. Amounts and further details have not been announced; still, S&P believes that this would relieve some of the pressure on the company's liquidity position, especially at the holding company level. As of December 2025, CSN had a cash balance of R$15.1 billion (with R$3.5 billion at the holding company level) and short-term debt of R$10.4 billion (with R$6.2 billion at the holding company level). However, S&P believes the maintenance of CSN's liquidity cushion remains susceptible to its ability to improve cash flows. That would come mainly from a lower interest burden and improving business conditions, plus proving its access to the capital markets with ongoing refinancings since it has R$18 billion coming due in the next two years before its next bond maturity of $1.3 billion that matures in 2028. In this context, any failure to achieve those will continue to reflect on significant cash flow deficits, further straining its liquidity and adding pressure to the rating. The negative outlook indicates that another downgrade is possible if asset sales stall or business conditions deteriorate, keeping leverage high, or if there's liquidity pressure from higher-than-expected cash flow deficits and from difficulties in continuing to refinance short-term maturities. S&P said, "We could lower our rating on CSN in the next six months if asset-sale delays or higher cash flow deficits prevent CSN from reducing leverage, with debt to EBITDA staying close to 6.0x for a prolonged period and a still significant FOCF shortfall amid sizable capex and a sizable interest burden. "We could revise the outlook to stable if CSN is able to deleverage in coming quarters through asset sales or better-than-expected operating performance while also being able to refinance its upcoming debt maturities (thereby improving its capital structure). In this scenario, we would expect debt to EBITDA to be below 5.0x by the end of 2026 (and trend lower in following years) while FOCF improves. "For an upside scenario, we would also need to CSN be able to improve its liquidity cushion, through better cash generation and continuous refinancing of its short-term maturities, while debt to EBITDA approaches 4.0x." =================== C O S T A R I C A =================== COSTA RICA: Growth Projected to Slow to 3.8% in 2026, IMF Says -------------------------------------------------------------- An International Monetary Fund (IMF) staff team, led by Varapat Chensavasdijai, visited San Jose during February 25–March 9, 2026 for the 2026 Article IV consultation. At the conclusion of the mission, Mr. Chensavasdijai issued the following statement: Growth momentum continues to be strong. Real GDP growth was estimated at 4.6 percent in 2025, driven by robust goods exports, notably from the free trade zones. Growth is projected to slow to 3.8 percent in 2026, as the effects of tariffs and the closure of several key businesses operating in the free trade zones more-than-offset rising investment and strong export performance. The current account deficit narrowed to 0.7 percent of GDP in 2025, while strong FDI flows helped to bolster international reserves. Risks to the outlook are tilted to the downside and stem mainly from heightened global uncertainty. Rising geopolitical tensions, protectionism and trade disruptions, elevated policy uncertainty, and higher interest rates could fuel commodity price volatility, slow export growth and FDI flows, raise external borrowing costs, and ultimately dampen growth prospects. Domestically, worsening crime could weigh heavily on tourism, investment, and consumption demand. On the upside, new trade agreements could boost investment, exports and growth. Inflation remains persistently low and below the BCCR’s 3 percent target. Headline inflation fell to –2.7 percent (y/y) in February 2026, marking the tenth consecutive month of deflation and 34 months below the BCCR’s 2-4 percent tolerance range, mainly due to lower prices of food, fuel, and most services and the colón appreciation. Core inflation dropped to 0 percent (y/y) and one-year-ahead inflation expectations have declined to historical lows. There are also downside risks to inflation stemming from weakening demand although the potential for higher commodity prices (particularly for oil) could push inflation up. Further monetary easing is needed to support a return of inflation and inflation expectations to target. With the real policy rate now further above IMF staff estimates of the neutral level, additional rate cuts would support domestic demand and prevent inflation and inflation expectations getting stuck below the central bank’s target range. Continued efforts to reduce dollarization and market frictions and modernize central bank communications would strengthen monetary policy transmission. Given adequate international reserves, further reserve accumulation is unnecessary, and central bank foreign exchange intervention should be limited to episodes of disorderly market conditions. Preserving credibility of the inflation targeting (IT) framework is essential to maintaining well‑anchored inflation expectations and effective monetary policy transmission. The BCCR’s ongoing review of the IT framework should continue to be supported by robust analytical foundations with clear communication on the economic rationales for all decisions reached, and informed by international experience and public consultations with the central bank’s main stakeholders. In addition, passing legislation to strengthen the BCCR’s governance, transparency, and accountability, and to institutionalize its de facto autonomy, would be an important step toward reinforcing the credibility and effectiveness of monetary policy. Systemic financial stability risks are contained with comfortable capital and liquidity buffers. Risk‑based supervision (RBS) is largely in place, reflecting important progress in strengthening financial sector oversight and fostering a more risk‑focused supervisory culture. Further embedding RBS in supervisory practice—particularly in areas such as operational resilience and cybersecurity risks—alongside deeper, data‑driven engagement with financial institutions, would help preserve resilience amid evolving risks. Swift approval of the new bank resolution and deposit insurance framework would enhance crisis management and depositor protection. Reinforcing macroprudential tools would mitigate pockets of potential vulnerability (e.g., in FX lending). Adopting a clear regulatory framework for fintech firms and digital assets in line with international best practices would further capitalize recent gains in financial inclusion and innovation and increase competition, while enhancing consumer protection and reducing financial stability risks. Reforms to the defined-contribution pension funds would improve their rates of return. Gradually relaxing the current regulatory limits on pension funds’ foreign investments would help to diversify pension funds’ assets, supported by ongoing efforts to deepen the FX market. Legislative proposals that permit early withdrawals from the pension system should be avoided, given the potential adverse macroeconomic and financial effects. Fiscal policy is expected to be constrained by the parameters under the fiscal rule. The fiscal rule has been instrumental in ensuring fiscal discipline, while improvements in tax administration and technological enhancements have already started to bear fruit. Further, full implementation of the Public Employment Law is expected to contain growth in non-interest expenditure over time. Fiscal space has, though, been diminished by policy changes that have eroded the tax base. With central government debt above 60 percent of GDP in 2025, in part due to the accumulation of cash buffers to meet upcoming debt repayments in the first quarter of 2026, both current and capital expenditure growth are expected to be constrained in 2027. There is a need for revenue-enhancing tax policy changes and debt management reforms. A tax reform that reduces tax expenditures, introduces a single rate for corporate income, increases the progressivity of the personal income tax, and implements the feebate scheme based on vehicle emissions could raise revenue to support higher productive spending on capital investment, education, security, healthcare, and targeted social transfers. Passing the constitutional reform to permit external debt issuance by the executive branch within the overall borrowing limit approved by the Legislative Assembly during the budget process would improve debt management and help to reduce borrowing costs. Comprehensive reforms to the Caja Costarricense de Seguro Social (CCSS) are necessary to ensure the financial sustainability of the social security system and address fiscal risks. The reserves of the Régimen de Invalidez, Vejez y Muerte (IVM) pension system and the Seguro de Enfermedad y Maternidad, (SEM) health insurance scheme are insufficient to meet the long-term demands placed on the system by demographic pressures and high operational costs. Parametric reforms, which avoid significant increases in already-high social contribution and payroll tax rates, would address the actuarial imbalance in the pension system. Investments in primary care, improvements in preventive services, and measures to reduce healthcare costs would strengthen the SEM’s financial sustainability. Efforts are needed to resolve the CCSS’ claims on the central government. Clarifying the scope and nature of benefits and services financed by the central government and the legal framework governing these arrangements would improve transparency and help avoid such disputes in the future. Advances in implementation of International Public Sector Accounting Standards (IPSAS) within the CCSS represent an important step to make further progress on resolving the claims on the central government. Supply-side reforms to remove structural bottlenecks could unlock untapped potential and lift medium-term growth. Increasing female labor participation will require efforts to alleviate the child and elderly care burden. Better targeting the dual vocational education and training program to market needs will help reduce skills gaps. Investments in law enforcement, improvements in inter-agency cooperation, and the expansion of programs to divert young people from criminal activities could reduce the homicide rate and mitigate the impacts on tourism and private consumption and investment. Approval of the proposed public-private partnership law would allow for better prioritization, selection, structuring, and monitoring of infrastructure projects and support higher private investment to close infrastructure gaps, including in transportation and logistics capacity. This would also accelerate export growth and diversification beyond the free trade zones. Finding opportunities to create closer R&D linkages between domestic firms and multinational corporations and continuing to remove regulatory bottlenecks would raise productivity. Finally, there is scope to build on Costa Rica’s relative strength in artificial intelligence (AI) preparedness to expand AI use across the public and private sector and further improve competitiveness. The IMF team would like to thank the authorities and other counterparts in Costa Rica for their warm hospitality and the constructive discussions during the mission. ============= E C U A D O R ============= CORPORACION QUIPORT: Fitch Hikes Rating on Sr. Secured Debt to 'B+' ------------------------------------------------------------------- Fitch Ratings has upgraded Corporacion Quiport S.A.'s senior secured debt to 'B+' from 'B'. The Rating Outlook is Stable. The rating action follows the upgrade of Ecuador's Long-Term Foreign Currency Issuer Default Rating (IDR) to 'B-' from 'CCC+' with a Stable Outlook. The sovereign upgrade reflects reduced government financing needs and improved financing flexibility following a successful return to international capital markets. The sovereign's ability to tap external markets to refinance upcoming amortizations lowers rollover risks and supports market confidence. In addition, the authorities have implemented reforms that support fiscal consolidation. Social unrest and political risks remain contained to date, supporting policy implementation. For more information, please see "Fitch Upgrades Ecuador to 'B-'; Outlook Stable," dated Feb. 25, 2026. RATING RATIONALE The rating reflects Quiport's strategic but modest origin and destination, leisure-oriented traffic base. The airport has a history of moderate volatility and competition from Guayaquil's Jose Joaquin de Olmedo International Airport, the country's second-largest airport. The rating also incorporates a tariff-setting mechanism that indexes increase in U.S. and Ecuadorian consumer prices. Quiport's rated debt is 60% fixed-rate international notes and 40% unhedged floating-rate local loans, with offshore debt service reserve accounts and standby letters of credit covering 12 months of bond debt service and six months for the bank loan. The structure includes other features typical of project finance transactions. Under Fitch's rating case, minimum and average debt service coverage ratios (DSCRs) are 1.5x for 2029 and 1.9x for 2025-2037, respectively. Fitch believes Quiport's essential role as the main gateway for the country will underpin its economic viability even if the sovereign encounters a period of financial distress. This factor, coupled with its ability to service debt under severe traffic shocks, supports a rating two notches above Ecuador's 'CCC+' Long-Term Foreign Currency IDR. Metrics are strong for the rating according to Fitch's applicable criteria, but the rating is limited to two notches above the sovereign. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Annual traffic growth consistently below 2%; - Deterioration of the credit profile of Ecuador's sovereign IDR. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Positive rating action on the sovereign, as long as project fundamentals and metrics continue to support a higher rating; - Stable operating environment supporting annual traffic growth above 3% and stable operating cost. 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 ----------- ------ ----- Corporacion Quiport S.A. Corporacion Quiport S.A./Airport Revenues - Senior Secured Debt/1 LT LT USD 300 mln 9% bond/note 15-Dec-2037 22000FAA8 LT B+ Upgrade B ============= J A M A I C A ============= JAMAICA: BOJ Outstanding Certificates of Deposit Valued at $136BB ----------------------------------------------------------------- RJR News reports that the Bank of Jamaica is reporting that the value of outstanding certificates of deposit (CDs) is now $136 billion. This, after private pension funds; securities dealers; commercial banks; insurance companies and individuals as well as public sector agencies pumped $33.5 billion into its 5.75% per annum CD auction, when it wanted only $29 billion, the report notes. A total of 265 bids were submitted, but the bank accepted only 231 for the $29 billion it wanted to take out of circulation for 30 days at an average interest rate of 5.74% per annum, the report says. The lowest rate was 5.45% per annum for $10 million, while the highest rate was 7.9% per annum for $50 million, the report adds. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a positive rating outlook. In October 2023, Moody's upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to B1 from B2, and senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has been changed to positive from stable. In September 2024, S&P affirmed 'BB-/B' longterm foreign and local currency sovereign credit ratings on Jamaica and revised outlook to positive. JAMAICA: Commuters Told to Brace For Possible Fare Hike ------------------------------------------------------- RJR News reports that President of the Transport Operators Development Sustainable Services, Egeton Newman, is warning commuters to prepare for a possible fare increase within the next four months, as higher fuel prices linked to the conflict in the Middle East continue to push up operating costs. Speaking during an interview on Real Business, Mr. Newman said Transport Minister Daryl Vaz has indicated that the government intends to approve the long-awaited 16 per cent fare increase in about four weeks, according to RJR News. However, Mr. Newman said transport operators are hoping the adjustment can come sooner, noting that rising fuel costs are placing additional strain on taxi operators who are already struggling to remain viable, the report notes. His comments follow two consecutive weekly increases in gasoline and other petroleum products by Petrojam, driven by rising global crude oil prices, 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. =========== M E X I C O =========== DEL MONTE: Gets OK to Take Votes On Ch. 11 Plan ----------------------------------------------- Alex Wittenberg at law360.com reports that Del Monte secured a New Jersey bankruptcy judge's permission to take creditors' votes on a Chapter 11 plan that would wind down its remaining business, about a month after the canned food company won approval of deals to sell its assets. About Del Monte Foods Corporation II Inc. Del Monte Foods, Inc. produces, distributes, and markets branded plant-based packaged food products in the United States and Mexico. Del Monte Foods Corporation II Inc. and its affiliates filed their voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Lead Case No. 25-16984) on July 1, 2025, listing $1,000,000,001 to $10 billion in both assets and liabilities. Judge Michael B Kaplan presides over the case. Michael D. Sirota, Esq. at Cole Schotz P.C. represents the Debtor as counsel. The U.S. Trustee for Regions 3 and 9 appointed an official committee to represent unsecured creditors in the Chapter 11 cases of Del Monte Foods Corporation II, Inc. and its affiliates. The committee hires Morrison & Foerster LLP as counsel. Province, LLC as financial advisor. Kelley Drye & Warren LLP as co-counsel. Stifel, Nicolaus & Co., Inc. ("Miller Buckfire") as investment banker. About Fresh Del Monte Fresh Del Monte Produce Inc. is a globally recognized producer and distributor of high-quality fresh and fresh-cut fruits and vegetables, supported by a vertically integrated operating model and sales in more than 80 countries. The company is also a leading supplier of prepared foods in Europe, Africa, and the Middle East. Fresh Del Monte's global portfolio is marketed under the DEL MONTE(R) brand, a long-standing emblem of product quality, innovation, and dependability for more than 135 years. ===================== P U E R T O R I C O ===================== DEL CAMPO AL: Commences Chapter 11 Bankruptcy in Puerto Rico ------------------------------------------------------------ On March 9, 2026, Del Campo Al Norte Restaurant Corporation filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Puerto Rico. According to court filings, the debtor reports between $100,001 and $1,000,000 in debt owed to between 1 and 49 creditors. About Del Campo Al Norte Restaurant Corporation Del Campo Al Norte Restaurant Corporation operates in the restaurant and food service industry, providing dining and hospitality services. Del Campo Al Norte Restaurant Corporation sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. Case No. 26-01003) on March 9, 2026. In its petition, the debtor reported estimated assets between $0 and $100,000 and estimated liabilities between $100,001 and $1,000,000. Honorable Bankruptcy Judge for the District of Puerto Rico handles the case. The debtor is represented by Luis D. Flores Gonzalez, Esq., of Luis D. Flores Gonzalez Law Office. PHOENIX FUND: Hires Sepulvado and Associates as Special Counsel --------------------------------------------------------------- The Phoenix Fund LLC seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Sepulvado and Associates, P.S.C., d/b/a Sepulvado, Maldonado & Couret, as special counsel. The firm will represent and advise the Debtor in these matters: a) the defense against the Office of the Commissioner of Financial Institutions of the Commonwealth of Puerto Rico's ("OCIF," per its Spanish acronym) Amended Motion for Entry of Order to Continue OCIF's Enforcement Action, or in the Alternative, for Relief from the Automatic Stay; b) the defense against OCIF's Urgent Motion for Order Recognizing Authority of the Prepetition Receiver to Act on Behalf of the Debtor in Possession; c) the defense and prosecution of all matters arising from the Amended Complaint and Order of (I) Cease and Desist, (II) Liquidation of Private Equity Fund, and (III) Interim and Permanent Appointment of Receiver to Carry Out the Liquidation issued against the Debtor on February 18, 2026; d) all foreseeable adversary proceedings that may be commenced in or in connection with this Chapter 11 case; e) all foreseeable contested matters governed by Bankruptcy Rule 9014; and f) such additional disputes, or proceedings as may arise during the pendency of this Chapter 11 case that require the expertise, knowledge, and assistance of SMC. The firm's current rates are: Partners and Of Counsel Up to $350 per hour Senior Associates $230 to $260 per hour Associates $150 to $225 per hour Paralegals $130 per hour The firm received a retainer in the amount of $200,000. As disclosed in the court filings, Sepulvado and Associates does not hold or represent an interest adverse to the estate, and is a disinterested person as defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Lee R. Sepulvado-Ramos, Esq. Sepulvado and Associates, P.S.C. d/b/a Sepulvado, Maldonado & Couret AON Center, Suite 990 304 Ponce de Leon Avenue San Juan, Puerto Rico 00918 Tel: (787) 756-5656 Fax: (787) 294-0073 Email: lsepulvado@smclawpr.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. PUERTO RICO: Rebollo Lopez's Claims Dismissed Without Prejudice --------------------------------------------------------------- Judge Laura Taylor Swain of the U.S. District Court for the District of Puerto Rico dismissed without prejudice all claims asserted by or on behalf of deceased plaintiff Francisco Rebollo Lopez in the adversary proceeding captioned as ANTONIO NEGRON GARCIA; FRANCISCO REBOLLO LOPEZ; FEDERICO HERNANDEZ DENTON; LIANA FIOL MATTA; ANABELLE RODRIGUEZ RODRIGUEZ; Plaintiffs, -v- LUIS COLLAZO RODRIGUEZ, IN HIS CAPACITY AS EXECUTIVE DIRECTOR AND ADMINISTRATOR OF THE JUDICIARY RETIREMENT SYSTEM; AND THE RETIREMENT BOARD OF PUERTO RICO; Defendants, Adv. Proc. No. 24-00089-LTS (D.P.R.) pursuant to Fed. R. Civ. P. 41(a)(2). On December 17, 2024, Antonio Negron Garcia, Francisco Rebollo Lopez, Federico Hernandez Denton, Liana Fiol Matta and Anabelle Rodriguez Rodriguez, retired justices of the Supreme Court of Puerto Rico (the "Petitioners"), filed a writ of mandamus against the Retirement Board and Luis Collazo Rodriguez, in his capacity as Executive Director of the Retirement Board. The Petitioners argued that under Puerto Rico law, (specifically Act 12-1954), their pensions, which they earned during their terms of service, must be linked to the salaries of active judges. They asserted that a recently enacted statute, Act 101-2024, increased active judicial salaries retroactively from July 1, 2023, but the Petitioners' pensions have not been adjusted accordingly. As a result, the Petitioners argue that the Retirement Board's failure to adjust their pensions and pay retroactive increases violates Act 12-1954 and certain Puerto Rico constitutional protections regarding public contractual obligations, due process, and judicial independence. To enforce their alleged rights, the Petitioners filed the writ of mandamus ordering the Retirement Board and its Executive Director to: (i) adjust the pensions of retired judges to reflect current salary scales; and (ii) pay retroactive increases they believe are mandated by law. On January 18, 2022, the District Court entered an order (the "Confirmation Order") confirming the Modified Eighth Amended Title III Joint Plan of Adjustment for the Commonwealth of Puerto Rico, et al., United States District Court for the District of Puerto Rico (the "Plan") along with Findings of Fact and Conclusions of Law. The Plan went effective on March 15, 2022 (the "Effective Date"). The Plan addresses the treatment of retired JRS participants in Classes 51B and 51E. Under both sections, retired JRS participants, including Petitioners, are entitled to receive benefits accrued as of the date of the Effective Date, with any future cost of living adjustments eliminated. Thus, the Plan provides for the freezing of pension benefits as of the Effective Date. The benefit freeze applies to judges hired both before and after the Effective Date. Id. Moreover, the Plan preempts certain sections of Act 12-1954 (codified at 4 L.P.R.A Secs. 233, et seq.) -- specifically the sections of the JRS's enabling act pertaining to the calculation of pension benefits for pensioners benefiting from the JRS defined benefit program. Further, the Plan also preempts all "provisions of the Commonwealth Constitution, Commonwealth statues, executive orders, rules, regulations, and policies that create, require, or enforce employee pension and other benefits that are modified and/or preserved in whole or in part" by the Plan, as inconsistent with PROMESA. Additionally, subject to certain limited exceptions, the Confirmation Order prohibits the government of Puerto Rico, for ten years after the Effective Date, from enacting new legislation, implementing existing legislation, or taking any other action to create or increase defined benefit pension payments beyond what the Plan allows, prohibitions that are applicable to the Executive Director and the Retirement Board. Finally, the FFCL provides that the Plan and Confirmation Order would be enforceable against other interested parties and officials alongside the Commonwealth, and that ny contrary Commonwealth law provisions were also preempted. The Civil Action directly implicates and contravenes the Plan, Confirmation Order, and FFCL by demanding an increase to the level of pension benefits for retired JRS participants beyond that provided for, or allowed under, the Plan. A copy of the Court's Order dated March 4, 2026, is available at http://urlcurt.com/u?l=HEOinGfrom PacerMonitor.com. About Puerto Rico Puerto Rico is a self-governing commonwealth in association with the United States. The chief of state is the President of the United States of America. The head of government is an elected Governor. There are two legislative chambers: the House of Representatives, 51 seats, and the Senate, 27 seats. The governor-elect is Ricardo Antonio Rossello Nevares, the son of former governor Pedro Rossello. In 2016, the U.S. Congress passed PROMESA, which, among other things, created the Financial Oversight and Management Board and imposed an automatic stay on creditor lawsuits against the government, which expired May 1, 2017. The members of the oversight board are: (i) Andrew G. Biggs, (ii) Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J. Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii) David A. Skeel Jr. On May 3, 2017, the Commonwealth of Puerto Rico filed a petition for relief under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA). The case is pending in the United States District Court for the District of Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico PROMESA petition is available at http://bankrupt.com/misc/1701578-00001.pdf On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation (COFINA) commenced a case under Title III of PROMESA (D.P.R. Case No. 17-01599). Joint administration has been sought for the Title III cases. On May 21, 2017, two more agencies; Employees Retirement System of the Government of the Commonwealth of Puerto Rico and Puerto Rico Highways and Transportation Authority (Case Nos. 17-01685 and 17-01686) commenced Title III cases. U.S. Chief Justice John Roberts named U.S. District Judge Laura Taylor Swain to preside over the Title III cases. The Oversight Board has hired as advisors, Proskauer Rose LLP and Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq., at O'Neill & Borges LLC are onboard as attorneys. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains the case Web site https://cases.primeclerk.com/puertorico Jones Day is serving as counsel to certain ERS bondholders. Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General Obligation Bondholders. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2026. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. 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