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260401.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 Wednesday, April 1, 2026, Vol. 27, No. 65 Headlines A R G E N T I N A YPF SA: Milei Targets Kicillof After Argentina Secures Victory B R A Z I L BANCO MASTER: Leaves BRL52 Billion Hole in Deposit Fund BRAZIL: New Finance Minister Faces Banco Master Crisis RELIZ TECHNOLOGY: Seeks to Tap Verita as Claims and Noticing Agent J A M A I C A JAMAICA: Import Bill Rose as Exports Declined From Jan to Nov 2025 JAMAICA: Telecoms Sector Warns Red Tape Slowing Rebuilding Efforts M E X I C O GOLD RESOURCE: FY25 Net Loss Narrows; Sees Adequate Liquidity P A N A M A BAC INT'L: Moody's Affirms 'Ba1' Deposit Ratings, Outlook Stable BI-BANK SA: Fitch Affirms 'BB+' Long-Term IDR, Outlook Stable X X X X X X X X LATAM: IDB Opens Miami Office for Private-Sector-Led Development - - - - - ================= A R G E N T I N A ================= YPF SA: Milei Targets Kicillof After Argentina Secures Victory -------------------------------------------------------------- Buenos Aires Times reports that President Javier Milei's government hit out at the opposition on Friday, March 27, following a favourable US court ruling in the long-running YPF expropriation case, taking aim at Buenos Aires Province Governor Axel Kicillof and accusing him of "brazenly lying" and putting the country at financial risk. The ruling, issued by the United States Court of Appeals for the Second Circuit, overturned a massive damages award linked to the 2012 nationalisation of oil company YPF and also confirmed that the company itself was not liable in the expropriation process, according to Buenos Aires Times. In a strongly worded statement issued by the Presidential Office, Milei's administration described Kicillof -- economy minister at the time of the nationalisation -- as a "failed former minister" and argued that his management led to litigation that dragged on for more than a decade in New York courts, the report notes. "His irresponsibility and reckless statements plunged the country into a 12-year lawsuit in New York that cost more than US$50 million and exposed the assets of all Argentines to the risk of having to pay US$18 billion," the statement said, the report relays. Buenos Aires Times discloses that the government added that what Kicillof was now "brazenly celebrating as a personal victory was in fact a time bomb that this administration’s legal team had to defuse with absolute professionalism." "Had there not been serious and responsible legal management, Kicillof's absolute negligence would have caused an irreversible financial catastrophe for Argentina," the administration warned, the report notes. It argued that his "populist policies" created a climate of severe legal uncertainty that for more than a decade scared off investment and slowed economic development, the report says. "A large part of the decline and hardship Argentines have suffered over the last 10 years is directly due to his irresponsible and senseless actions: companies were not created, investment in Vaca Muerta advanced slowly and thousands of productive sectors were paralysed. The costs we paid for his negligence were monumental and we are still bearing them today," the statement said, the report relates. Buenos Aires Times discloses that Milei's government further accused Kicillof of "having the insolence to present himself as a hero and celebrate a decision that does not erase even a millimetre of the disaster he himself caused." "The priority of President Javier Milei is to defend the assets of Argentines, not to endanger them with ideological improvisation or use them as a tool for cheap propaganda," the statement concluded, the report notes. Kicillof is one of the opposition Peronist movement's main leaders and is widely seen as a possible presidential candidate in 2027, the report says. Kicillof: 'Sovereign Decision' Kicillof, who served as economy minister during the 2012 nationalisation and is now governor of Argentina's most populous province, also celebrated the ruling, the report relays. Buenos Aires Times notes that he hit back at Milei, warning that "this was not about attacking me, but about questioning a sovereign decision and defending foreign interests." Writing on social media after the US court decision in Argentina's favour, he welcomed the move to overturn the ruling against the country, the report discloses. "For years, lies were told. In the end, it was a narrative pushed by the vultures to question a sovereign decision and make themselves even richer," he added. In Kirchnerite political discourse, "vultures" refers to so-called vulture funds -- hedge funds and holdout creditors that buy defaulted debt at low prices and later sue for full repayment, the report relays. He added that while Milei spoke about a so-called "Kicillof tax," Argentina's own state lawyers had, since the beginning of the case, defended in court the same arguments his team had always maintained, the report notes. "That 'tax' was nothing more than an operation -- a chorus of voices that for years repeated the arguments of the vultures, claiming the nationalisation had been technically incorrect. Was it ignorance, naivety or a deliberate lie? Today it is clear," he wrote, the report says. "The right would never have nationalised YPF. They always worked for the vultures, yet paradoxically today their model does not collapse due to a lack of dollars thanks to YPF. Milei dresses up in YPF overalls, but he never defended the company – he acted as an employee of foreign interests," he added. The report discloses that Kicillof argued that nationalising YPF was "one of Argentina's most important strategic decisions of recent decades," saying the company is now a key development engine and crucial in mitigating the impact of the global energy crisis. Fernandez de Kirchner Speaks Former president Cristina Fernandez de Kirchner also defended YPF's nationalisation in a post on X, stating that "the provisions of a company's bylaws cannot prevail over a country’s Constitution and legal system," the report says. In a lengthy message, she thanked the law firm Sullivan & Cromwell LLP for representing the Argentine state in New York courts and said the legal arguments reaffirmed the primacy of the National Constitution over corporate statutes, the report notes. The former president argued that the 2012 expropriation was carried out legally and as an exercise of state sovereignty, the report discloses. Fernandez de Kirchner, who is serving a corruption sentence under house arrest, also said the decision to regain control of YPF and Argentina’s energy sovereignty had been strategic, the report relays. She noted that the development of Vaca Muerta since 2012 had allowed the country to achieve a multi-billion-dollar energy trade surplus, the report relays. However, the litigation -- which began in 2015 and saw an adverse lower-court ruling in 2023 by Judge Loretta Preska -- could still reach the United States Supreme Court, where the parties may file a final appeal, the report adds. About YPF SA As reported in the Troubled Company Reporter-Latin America in December 2025, Fitch Ratings affirmed YPF S.A.'s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'CCC+'. Fitch also affirmed YPF's outstanding senior unsecured notes at 'CCC+' with a Recovery Rating of 'RR4'. The company's Standalone Credit Profile (SCP) is 'b', and its ratings are aligned with Fitch's "Government Related Entities (GRE) Criteria," reflecting its government ownership and strategic importance. =========== B R A Z I L =========== BANCO MASTER: Leaves BRL52 Billion Hole in Deposit Fund ------------------------------------------------------- menafn.com reports that the Banco Master collapse has left a record BRL51.8 billion ($9.3 billion) hole in Brazil's deposit guarantee fund, according to data published by Poder360, making it by far the most expensive bank failure in the country's history. The Rio Times, the Latin American financial news outlet, reports that the combined exposure from Master, its digital subsidiary Will Bank, and affiliated Banco Pleno dwarfs any previous FGC payout -- despite the three institutions holding just 0.57 percent of the banking system's total assets, according to menafn.com. The FGC has already disbursed nearly BRL40 billion to depositors covered under Brazil's BRL250,000-per-account guarantee limit. Investment funds with exposure to Master group instruments reported an additional BRL2 billion in losses, affecting institutional and retail investors who held the bank's certificates of deposit and other fixed-income products, the report relays. How a Small Bank Created a Systemic Crisis Banco Master grew by offering certificates of deposit at rates reaching 140 percent of the CDI benchmark -- far above market averages -- distributed through digital investment platforms that gave the bank access to millions of retail depositors nationwide, the report relays. Investigators allege that founder Daniel Vorcaro, arrested at Guarulhos airport in November 2025, used fabricated loan portfolios and inflated balance sheets to sustain a BRL12.2 billion fraud scheme, the report says. The Central Bank liquidated Master on November 18, 2025, followed by Will Bank in January 2026 after it defaulted on Mastercard payment obligations, and Banco Pleno in February after it lost access to funding as market confidence in anything connected to the Vorcaro universe collapsed, the report notes. The BRL52 billion figure represents the total guaranteed deposits across all three institutions, the report discloses. The Regulatory Fallout The crisis has forced the Central Bank to announce a comprehensive overhaul of how banks raise deposits through digital platforms, the report says. The regulator is revising FGC rules and tightening oversight of high-yield products that allowed Master to attract billions from unsophisticated investors who believed their deposits were risk-free because of the guarantee, the report notes. The fund, financed by contributions from all Brazilian banks, had never faced a single-institution exposure remotely close to this scale, the report discloses. The scandal has also reached the Supreme Court, where leaked messages from Vorcaro's seized phones allegedly showed financial relationships with the families of Justices Alexandre de Moraes and Dias Toffoli, the report says. The court's decision to shut down the INSS congressional inquiry -- which had expanded into the Master affair -- was widely interpreted as an effort to limit further exposure of those connections, the report relays. For Brazil's financial system, the Master case is a stress test that the deposit guarantee structure barely survived, the report discloses. The BRL52 billion figure -- from a bank holding less than one percent of system assets -- demonstrates how digital distribution channels can transform a small institution into a systemic risk that traditional regulatory frameworks were not designed to detect or contain, the report relays. About Banco Master Banco Master, S.A., formerly known as Banco Maxima, is a financial institution that provides corporate credit, foreign exchange, and treasury services, and later expanded into real estate credit as well as fund and wealth management activities. The bank began operations in 1974 and broadened its business lines in the mid-1990s as part of its growth strategy within the financial service sector. Banco Master filed a Chapter 15 Petition with the U.S. Bankruptcy Court for the Southern District of Florida on December 10, 2025 (Case No. 25-24568), with the Hon. Scott M Grossman presiding. BRAZIL: New Finance Minister Faces Banco Master Crisis ------------------------------------------------------ Arkady Petrov at Rio Times Online reports that the new Brazil finance minister Durigan held his first formal meeting with President Lula, inheriting a portfolio shaped by $100 oil, rising household debt, and the deepening Banco Master scandal. Dario Durigan, 41, was officially named to the post on March 20 after Fernando Haddad departed to run for governor of Sao Paulo, according to Rio Times Online. Who Is Brazil Finance Minister Durigan The report notes that Durigan rose through the ministry as Haddad's executive secretary -- effectively the number two -- since mid-2023, when he replaced Gabriel Galípolo, who moved to the central bank. His background straddles government and Silicon Valley: he served as a legal adviser in the Casa Civil under President Dilma Rousseff from 2011 to 2015, then spent three years as WhatsApp's head of public policy for Latin America before returning to government, the report discloses. To fill the cascade of vacancies, Durigan promoted Treasury Secretary Rogério Ceron to executive secretary and named Daniel Leal, a career Treasury official, to run the national debt office, the report relays. The reshuffle replaces the entire top tier of Brazil's fiscal architecture in a single week, the report relays. Markets view Durigan as a continuity pick who will maintain Haddad’s tax reform agenda and the 0.25%-of-GDP surplus target for 2026, the report relays. Banco Master Reaches the Presidential Palace The Banco Master crisis has become the dominant political risk for Lula's re-election campaign, the report discloses. The central bank liquidated the institution in November after police investigations uncovered an alleged R$12 billion ($2.2 billion) fraud, triggering more than R$40 billion ($7.3 billion) in payouts from the deposit guarantee fund. Lula publicly called it "a scam of more than R$40 billion" and blamed Bolsonaro and former central bank president Roberto Campos Neto for failing to prevent the collapse, the report relays. But the scandal has boomeranged, the report says. Reporting revealed that Lula met Master's controlling shareholder Daniel Vorcaro in a private meeting in December 2024, with Galipolo present, raising questions about the government's prior knowledge, the report says. Former Lula-allied ministers including Ricardo Lewandowski and Guido Mantega sat on Master's paid advisory boards, deepening the political entanglement, the report notes. The Election Calendar Compresses Everything Durigan takes office at a uniquely compressed moment, the report relays. Oil above $100 per barrel has forced emergency fuel tax cuts, the Copom reduced rates to 14.75% but signaled caution about the Middle East war's inflationary impact, and household debt -- which Lula has flagged as an electoral vulnerability -- remains near record levels. The 2026 budget projects a possible deficit of R$23.3 billion ($4.3 billion) even under the fiscal framework’s formal targets, the report discloses. Haddad's departure also removes from government the politician who had the strongest personal rapport with Congress on economic legislation, the report says. Durigan's more technical profile may help in some negotiations but could prove a liability in the horse-trading that Brazilian budget politics demands, the report notes. The reform tributaria regulation, the selective tax implementation, and the Banco Master investigations all require political management that goes well beyond spreadsheets, the report relays. Lula praised Haddad's "near 80% win rate" in Congress, setting a high bar for his successor, the report relates. For markets, the key question is whether the Brazil finance minister can maintain fiscal credibility during an election campaign in which Lula will face intense pressure to spend, the report discloses. The 2026 budget projects a possible deficit of R$23.3 billion ($4.3 billion) even under the fiscal framework's formal targets, the report says. For Lula, the question is whether a less visible finance minister makes it easier or harder to keep the economy out of the campaign crossfire, the report says. The Master scandal, the oil crisis, and October's vote are all converging at once, 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. RELIZ TECHNOLOGY: Seeks to Tap Verita as Claims and Noticing Agent ------------------------------------------------------------------ Reliz Technology Group Holdings, Inc. and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Delaware to employ Kurtzman Carson Consultants, LLC, doing business as Verita Global, as claims and noticing agent. Verita will oversee the distribution of notices and will assist in the maintenance, processing, and docketing of proofs of claim filed in the Chapter 11 cases of the Debtors. Prior to the petition date, the Debtors provided Verita a retainer in the amount of $30,000. Evan Gershbein, executive vice president of Verita Global, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Evan Gershbein Verita Global 222 N. Pacific Coast Highway, 3rd Floor El Segundo, CA 90245 About Reliz Technology Group Holdings Inc. Reliz Technology Group Holdings Inc., together with its affiliates Reliz Ltd., Reliz Technologies LLC, and Reliz CI Ltd., operates the BlockFills digital-asset trading and liquidity platform, providing institutional clients with spot and derivatives trading, collateralized lending, and mining solutions. Founded in 2017 and headquartered in Chicago, Illinois, the company aggregates liquidity from a global network of exchanges and market makers, integrating smart order routing, trade reconciliation, and risk management through a multi-asset technology platform with FIX API connectivity and white-label software. In addition to its Chicago headquarters, the company maintains offices in London, Dubai, Sao Paulo, and the Cayman Islands. Reliz Technology Group Holdings Inc. and four affiliated entities sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 26-10371) on March 15, 2026. The affiliated debtors include Reliz Technologies LLC (Case No. 26-10373), Reliz CI Ltd. (Case No. 26-10374), and Reliz Ltd. (Case No. 26-10375). In its petition, the Lead Debtor reported estimated assets between $50 million and $100 million and estimated liabilities between $100 million and $500 million. Honorable Bankruptcy Judge Thomas M. Horan handles the cases. The Debtors are represented by David R. Hurst, Esq. and Andrew A. Mark, Esq. of McDermott Will & Schulte LLP, along with Darren Azman, Esq., Joseph B. Evans, Esq., R. Ethan Dover, Esq., and Gregg Steinman, Esq. The Debtors' co-counsel is Katten Muchin Rosenman LLP. The Debtors' financial advisor is Berkley Research Group, LLC, and the Debtors' claims, noticing, solicitation, and balloting agent is Verita Global, LLC. ============= J A M A I C A ============= JAMAICA: Import Bill Rose as Exports Declined From Jan to Nov 2025 ------------------------------------------------------------------ RJR News reports that Jamaica imported US$6.8 billion in merchandise goods during the first eleven months of last year, an increase of 2.2 per cent compared with the US$6.7 billion recorded in the corresponding period. The import bill included US$2.1 billion in raw materials and intermediate goods, US$1.9 billion in food and other consumer items, and US$1.6 billion in fuel, according to RJR News. Capital goods accounted for US$718 million, while transport equipment totaled US$566.4 million, the report notes. Meanwhile, exports declined by 11 per cent to US$1.5 billion, down from US$1.7 billion the previous year, the report relays. Manufacturing exports contributed US$739.8 million, followed by US$592.8 million from mining and quarrying, US$59.4 million from agriculture, and US$23.3 million from other sectors, the report says. As a result, the country recorded a trade deficit of US$5.3 billion, widening from US$4.97 billion in the previous year, the report adds. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a positive rating outlook. In October 2023, Moody's upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to B1 from B2, and senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has been changed to positive from stable. In September 2024, S&P affirmed 'BB-/B' longterm foreign and local currency sovereign credit ratings on Jamaica and revised outlook to positive. JAMAICA: Telecoms Sector Warns Red Tape Slowing Rebuilding Efforts ------------------------------------------------------------------ RJR News reports that leaders in the telecommunications sector are warning that bureaucracy and regulatory delays are hindering efforts to rebuild and expand infrastructure following the impact of Hurricane Melissa. They say challenges such as lengthy approval processes, rigid regulations, and difficulties in securing permits are slowing the rollout of critical network projects, notes RJR News. According to industry estimates, between US$9 million and US$14 billion will be required to develop a more resilient and advanced digital network across Jamaica and the wider Caribbean, the report notes. Charles Douglas, Senior Manager of Government and Regulatory Affairs at Flow Jamaica, said even when companies have capital plans in place, delays in approvals can stall or derail those investments, the report relays. He noted that securing permits for telecommunication towers and network infrastructure remains particularly challenging, the report notes. Douglas also highlighted broader issues facing the sector, including flat revenue growth and rising operational costs, which are limiting the ability of telecom providers to generate the cash flow needed to fund major capital projects, 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 =========== GOLD RESOURCE: FY25 Net Loss Narrows; Sees Adequate Liquidity ------------------------------------------------------------- Gold Resource Corporation filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K reporting a net loss of $6.5 million for the fiscal year ended December 31, 2025, compared to a net loss of $56.6 million for the fiscal year ended December 31, 2024. For the fiscal year ended December 31, 2025, the Company recorded a total net sales of $99.8 million, compared to $65.7 million for the fiscal year ended December 31, 2024. As of December 31, 2025, the Company had $184.1 million in total assets and $140 million in total liabilities, and total stockholders' equity of $44 million. Liquidity The Company evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within one year after the date on which these financial statements are issued. The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. Based on the Company's current business plan, expectations, and assumptions considering current macroeconomic conditions, as well as based on the Company's current forecasts, the Company believes that its existing cash and cash equivalents and cash flows from operations will be sufficient to meet its anticipated operating cash needs for at least the next 12 months from March 18, 2026, the issuance date of the financial statements. To improve its cash position, during the year ended December 31, 2025, the Company raised $2.5 million through a registered direct offering in January 2025. In February 2025, the Company sold its interest in Green Light Metals for $0.9 million in proceeds. On May 7, 2025, the Company received a tax refund of 79.6 million pesos (approximately $4.0 million) related to DDGM taxes paid in 2023. In September 2025, the Company closed on a second registered direct offering of $11.4 million for the sale of 25,315,954 shares of the Company's common stock at a price of $0.45 per share. The Company issued 14,204,846 of these shares, for the fair value of approximately $6.4 million, to fully pay off the term loan received in June 2025 as a non-cash equity settlement. During 2025, the Company raised approximately $8.6 million through its ATM Program, after deducting the agent's commissions and other expenses. In connection with the loan agreement, the Company has issued a common stock purchase warrant to an affiliate of one of the private investors for the purchase of up to 1,500,000 shares of the Company's common stock at an exercise price per share of $0.65, the aggregate exercise proceeds of which may provide additional funds for the Company. "We are pleased to report a successful operational turnaround during 2025 that culminated in a strong fourth quarter finish and over $25 million in cash and equivalents on the balance sheet," said Allen Palmiere, President and CEO. "Obviously, favorable metal prices were a meaningful contribution which realized an average of $55 per ounce for silver and $4,234 per ounce for gold metal sales. Production from our Three Sisters zone made a significant contribution, as expected, and as a result we anticipate that silver will represent approximately 40% of our output from this zone in 2026 and enhance our leverage to the silver market. Our operations team in Mexico has executed exceptionally well on our 2025 objectives, delivering solid year end results, positioning us for continued momentum in the year ahead." A full text copy of the Company's Annual Report is available at https://tinyurl.com/4hea5pje About Gold Resource Corporation Gold Resource Corporation -- http://www.goldresourcecorp.com-- is a mining company focused on the development of precious and base metal projects that have the potential for high returns and limited development capital requirements. DDGM is the Company's cornerstone operating asset, comprised of six contiguous land parcels. The Company's focus is unlocking the significant upside potential of DDGM through optimization of the current operations, growing the existing mineral resource by investing in exploration drilling, and identifying new opportunities near existing infrastructure. The primary mineral production comes from the Arista and Switchback underground mining areas, along with the recently added Three Sisters vein system. The mine and its processing facilities can produce gold and silver dore, as well as concentrates of copper, lead, and zinc. * * * This concludes the Troubled Company Reporter's coverage of Gold Resource Corporation until facts and circumstances, if any, emerge that demonstrate financial or operational strain or difficulty at a level sufficient to warrant renewed coverage. =========== P A N A M A =========== BAC INT'L: Moody's Affirms 'Ba1' Deposit Ratings, Outlook Stable ---------------------------------------------------------------- Moody's Ratings has affirmed all ratings and assessments assigned to BAC International Bank, Inc (BAC), including the Ba1/Not Prime long and short-term local and foreign currency deposit ratings, as well as the Baa3/Prime-3 long- and short-term foreign currency counterparty risk ratings. At the same time, BAC's baseline credit assessment (BCA) and adjusted BCA, both at ba1, as well as its Baa3(cr)/Prime-3(cr) long and short-term counterparty risk assessments were affirmed. The outlook on the long-term deposits ratings remains stable. Moody's also affirmed all ratings and assessments assigned to Multibank, Inc. (Multibank), including the Ba1 long-term foreign currency deposit rating, the Ba1 long-term foreign currency senior unsecured debt rating, as well as the Baa3(cr) and Baa3 long-term counterparty risk assessment and foreign currency counterparty risk rating, respectively. In addition, Moody's also affirmed Multibank's ba2 baseline credit assessment (BCA) and ba1 adjusted BCA, the Prime 3 short-term foreign currency counterparty risk rating, Not Prime short-term foreign currency deposit rating, and the Prime 3(cr) short-term counterparty risk assessment. The outlook on the long-term deposit and senior unsecured debt ratings also remains stable. RATINGS RATIONALE BAC INTERNATIONAL BANK, INC The affirmation of BAC's ratings reflects the bank's well diversified and strongly positioned franchise across Central America, its long track record of solid financial fundamentals, and disciplined risk management practices, which have supported robust earnings generation over the past five years. Challenges to BAC's ba1 BCA stem from the full merger with Multibank, which is subject to regulatory approvals and is expected to be completed in the third quarter of 2026. Moody's expects that the relatively smaller size of Multibank's operations—whose assets represented around 12% of BAC's balance sheet as of December 2025—partially mitigates downward pressure on BAC's standalone profile at this stage. Moreover, prior to the transaction, BAC had been providing back office services to Multibank for over a year, supported by close oversight and active involvement of BAC's financial team in Multibank's operations and planning, which Moody's expects will materially mitigate execution risks associated with the merger. The deal is expected to reduce BAC's capitalization by around 100 basis points in the first half of 2026 relative to its 2025 level, when tangible common equity stood at 11.6% of risk weighted assets. The bank's strong and stable profitability, with a return on assets of 2.0% as of December 2025, should continue to support solid internal capital generation over the coming years. The affirmation of BAC's ratings also takes into account the expected improvement in its macro profile, reflecting its expanded deposit and asset market share in Panama (Government of Panama, Baa3 negative) following the full consolidation of Multibank's balance sheet. This consolidation will position BAC between the second and third largest institution in the Panamanian banking system. BAC will further strengthen its franchise in Panama, benefiting from increased scale and greater funding diversification, while accelerating the realization of cost and revenue synergies stemming from the complementary nature of the two franchises. MULTIBANK The affirmation of Multibank's standalone and supported ratings follows the regulatory approval of the sale of Multi Financial Group, Inc., Multibank's holding company, to BAC International Corp., the holding company of BAC, and incorporates the expectation of final regulatory approval of the full merger between BAC and Multibank by the second quarter of 2026. As a result of the transaction, Multibank no longer incorporates the support from its former owner, Banco de Bogotá S.A. (Baa3, stable). During the interim period prior to the legal merger, Multibank is expected to benefit from support from BAC, if needed, and therefore incorporates support from BAC's ba1 BCA. Accordingly, Multibank's long-term deposit and debt ratings remain at Ba1. Multibank's ba2 BCA reflects its weak profitability, with net income amounting to just 0.4% of tangible banking assets in 2025, subdued business growth over the past two years, and only modest margin improvement amid a relatively high cost of funding. The BCA is also constrained by elevated asset risk, with Stage 3 loans accounting for 7.3% of gross loans in 2025, largely reflecting legacy non performing exposures in specific sectors, including construction. These exposures underscore a degree of sector concentration that is higher than that of similarly rated peers in Panama. However, the affirmation of Multibank's standalone BCA at ba2 also acknowledges Moody's expectations that, over the next two months and until the completion of the merger, the bank will continue to operate as a sister entity of BAC, with its assets and liabilities subject to BAC's control and risk management framework, until its full legal absorption. In that context, the stable outlook on Multibank's ratings mirrors the stable outlook on BAC. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Upward pressure on BAC's BCA and ratings could develop if the execution of the acquisition results in material and sustained improvements in profitability and/or asset quality metrics, supported by the realization of expected synergies. An improvement in operating conditions across the other Central American countries in which the bank operates would also be credit positive. Downward pressure on BAC's BCA could arise from a material weakening in recurring earnings capacity, for example as a result of unexpected losses, as well as a sudden deterioration in asset quality indicators that could arise from the merger. In addition, failure to realize expected cost and revenue synergies, which would constrain the bank's ability to rebuild capital levels over the next 12–18 months, would weigh negatively on the BCA. A deterioration in the operating conditions in any Central America country would also be credit negative. Upward and downward pressures on Multibank's BCA and ratings remain fully aligned with the pressures on BAC's BCA and ratings. 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. BI-BANK SA: Fitch Affirms 'BB+' Long-Term IDR, Outlook Stable ------------------------------------------------------------- Fitch Ratings has affirmed Bi-Bank, S.A.'s (Bi-Bank) Long- and Short-Term Foreign Currency Issuer Default Ratings (IDRs) at 'BB+' and 'B' respectively, its Shareholder Support Rating (SSR) at 'bb+' and its Viability Rating (VR) at 'bb-'. Fitch has also affirmed the bank's Long- and Short-Term National Scale ratings at 'AA+(pan)' and 'F1+(pan)', respectively. The Rating Outlook for the Long-Term Ratings is Stable. Key Rating Drivers Support Drives Ratings: Bi-Bank's IDR is driven by its 'bb+' SSR, reflecting Fitch's view of the support provider's ability and propensity to support, if needed. The assessment is based on sister company Banco Industrial S.A.'s (Industrial) 'BB+' IDR with a Stable Outlook and Fitch's view that support would be manageable given Bi-Bank's scale (around 10.1% of Industrial's consolidated assets at YE25). Core Role in Group: Fitch views propensity to support as high due to Bi-Bank's core strategic role in the group's geographic diversification and the reputational risk associated with an affiliate default. Bi-Bank is a subsidiary of Bicapital Corporation and supports the group's regional expansion and cross-border client base through a universal banking platform. While lending remains Panama-centric (58.8% of gross loans), the remainder is extended to non-Panamanian borrowers. Operating Environment (OE) with Moderate Influence: Panama's banking system shows adequate system-wide credit growth, asset quality, and profitability, despite lower GDP growth and high interest rates. Despite this, the operating environment (OE) score of 'bb+' is below the implied category of 'bbb'. Fitch expects GDP per capita and Operational Risk Index (ORI) to remain stable, preserving operating conditions for banks. Growing Franchise with Improving Revenues: Despite double-digit balance-sheet growth, the bank's short operating history limits franchise depth and earnings, reflected in a modest 1.5% share of system assets in Panama at YE25. Still, revenue momentum is improving, with total operating income up 19.5% YoY to USD55 million in 2025 (2022-2025 average: USD39 million). Fitch expects continued earnings strengthening, supported by its regional strategy and focus on corporate and premium banking segments. Consistent Loan Quality: Adequate underwriting and a well collateralized portfolio underpin good asset quality. Stage 3 loans ratio was 0.3% as of YE25, down from a 0.5% average in 2022-2025, outperforming local and regional peers. Although Bi-Bank's average core asset quality metric implies 'bbb,' the score has been adjusted to 'bb' to account for its high borrower concentrations. Fitch expects underwriting discipline that aligns with the group's prudent risk practices to continue supporting stable asset performance in 2026-2027. Stable Profitability: Higher non-interest income and controlled credit costs mitigated the annual contraction in net interest margin, driven by higher funding costs. At YE25, the operating profit to risk-weighted assets (RWA) ratio stood at 1.9%, similar to the 1.8% average between 2022 and 2025 and broadly in line with peers with similar earnings and profitability assessments. Fitch expects the bank's continued focus on operating efficiency and organic growth to support earnings, keeping the core metric around 2% over the medium term. Modest Capitalization; Ordinary Support: Fitch considers Bi-Bank's capitalization to be consistent with its consolidation phase. At YE25, the Common Equity Tier 1 (CET1) to RWA ratio was 9.8%, below regional peers with longer track records. Fitch expects the core metric to rise above 10% by 2026, driven by retained earnings and moderate capital injections. Including dynamic provisions, the total regulatory capital ratio was 11.2% at YE25. Fitch applies a positive adjustment to the 'bb-' score, which is above the implied 'b and below' category, because the bank benefits from ordinary shareholder support. Concentrated Funding, Adequate Liquidity: Bi-Bank's deposit franchise continues to show sustained growth and remains its main funding source, consistently covering its entire loan portfolio. As of YE25, the loan-to-deposit ratio was 85.7%, staying below 100% in recent years. Adequate liquidity and a high deposit renewal rate partially offset concentration risks from large depositors. Fitch expects Bi-Bank to continue funding operations primarily through customer deposits while maintaining efforts to reduce funding costs. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade IDRs, SSR and national ratings - Negative rating actions on Industrial' IDRs would lead to similar actions in Bi-Bank's IDRs, SSR and national-scale ratings; - Bi-Bank's IDRs, SSR and national-scale ratings could also change if Fitch's assessment of Industrial's ability or willingness to support the bank's changes; VR - A significant deterioration in asset quality metrics, pressuring operating profit to RWAs consistently below 1.25%, resulting in a sustained erosion of the CET1 and causing the total regulatory capital to RWA ratio (including the dynamic provision) to levels below 10.0%. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade IDRs, SSR and national ratings - Positive rating actions on Industrial' IDRs could lead to similar actions in Bi-Bank's IDRs, SSR and long-term national rating; - As the national short-term rating is at the top of the national scale, there is no room for an upgrade; VR - A substantial increase in total operating income and a reduction in credit concentrations, while consistently maintaining at least a 12% CET1 to RWA ratio, a 15% total regulatory capital ratio, and a 2% operating profit to RWA ratio. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS National-Scale Senior Unsecured Debt: Bi-Bank's national long- and short-term senior unsecured debt ratings are aligned with the bank's national long- and short-term ratings of 'AA+(pan)' and 'F1+(pan)', respectively. This reflects the instruments' senior unsecured status and an equal probability of default to the bank, with average expected recoveries. National-Scale Subordinated Debt: The subordinated series of Bi-Bank's revolving corporate bond program is rated 'AA-(pan)' on the national long-term scale, two notches below the bank's 'AA+(pan)' national long-term rating. The differential reflects higher loss severity, as Fitch expects poor recoveries for bank subordinated instruments in a liquidation scenario. The notes include interest payment suspension features; however, Fitch does not apply additional notching for non-performance risk, as potential extraordinary shareholder support and incentives for the related Guatemalan entity to take preventive remedial actions largely mitigate this risk. The instruments' characteristics are consistent with secondary capital instruments under local regulation. OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade: - Bi-Bank's Short-Term IDR is sensitive to a multi-notch downgrade in the Long-Term IDR; - The ratings of the LT national senior unsecured debt and subordinated debt would be downgraded if Bi-Bank's national LT rating is downgraded; - The ratings on the ST national senior unsecured debt would be downgraded if Bi-Bank's national ST rating is downgraded. Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Bi-Bank's Short-Term IDR is sensitive to an upgrade in the Long-Term IDR; - The ratings of the LT national senior unsecured debt and subordinated debt would be upgraded if Bi-Bank's national LT rating is upgraded; - As the national short-term rating on the unsecured debt is at the top of the national scale, there is no room for an upgrade. VR ADJUSTMENTS The operating environment score of 'bb+' is below the 'bbb' category implied score due to the following adjustment reason: sovereign rating (negative). The asset quality score of 'bb' is below the 'bbb' category implied score due to the following adjustment reason: concentrations (negative). The capitalization & leverage score of 'bb-' is above the 'b & below' category implied score due to the following adjustment reasons: capital flexibility and ordinary support (positive). Public Ratings with Credit Linkage to other ratings Bi-Bank's ratings are linked to those of its sister company, Banco Industrial. 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 ----------- ------ ----- Bi-Bank, S.A. 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- Shareholder Support bb+ Affirmed bb+ senior unsecured Natl LT AA+(pan) Affirmed AA+(pan) subordinated Natl LT AA-(pan) Affirmed AA-(pan) senior unsecured Natl ST F1+(pan) Affirmed F1+(pan) =============== X X X X X X X X =============== LATAM: IDB Opens Miami Office for Private-Sector-Led Development ---------------------------------------------------------------- The Inter-American Development Bank Group (IDB Group) opened a new office in Miami -- its first presence in the United States outside Washington, D.C., and the first of a multilateral development bank in the city -- to advance private-sector-led development and strengthen the IDB Group's role in connecting global investors with opportunities in Latin America and the Caribbean. The office brings the IDB Group closer to where investment decisions are made. Miami is a major financial and corporate hub, home to more than 1,600 multinational companies and over 60 international banks, with a growing venture capital and technology ecosystem. "Miami is where investors are, where decisions are made, and where deals are structured," said IDB Group President Ilan Goldfajn. "By being here, we can bring investment into Latin America and the Caribbean and also bring opportunities from the region to global investors — scaling private-sector-led development on both sides." The opening comes as the IDB Group scales up its role as a private-sector multilateral development bank. The institution successfully closed its $3.5 billion subscription process for the recapitalization of IDB Invest, supporting its new originate-to-share business model, and finalized the replenishment of IDB Lab with a more scalable and sustainable business model and new leadership. The Miami office will deepen engagement with investors and partners, strengthen co-financing and mobilization, and support the structuring of projects across key sectors. It will also support IDB Invest and IDB Lab in expanding business development and bringing investment into Latin America and the Caribbean. ********* 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. 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