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260402.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 Thursday, April 2, 2026, Vol. 27, No. 66 Headlines A R G E N T I N A ARGENTINA: USD150-Million Bond Sale Prices Risk After Milei's Term B R A Z I L BRAZIL: Adds 370K Jobs in 2Mo, But Pace Falls 38% From Last Year BRAZIL: Iran War Pushes Brazil's IPO and Equity Window to May-June D O M I N I C A N R E P U B L I C BANCO DE RESERVAS: Fitch Affirms BB- LongTerm IDR, Outlook Positive G U A T E M A L A BANCO AGROMERCANTIL: Fitch Affirms BB+ LongTerm IDR, Outlook Stable BANCO DE LOS TRABAJADORES: Fitch Affirms BB LT IDR, Outlook Stable BANCO INDUSTRIAL: Fitch Affirms 'BB+' Long-Term IDR, Outlook Stable J A M A I C A JAMAICA: Secures US$70M IDB Loan for Public Sector Transformation P U E R T O R I C O CONCEPTOS RESTAURANTS: Starts Chapter 7 Bankruptcy in Puerto Rico VARADERO SEA FOOD: Taps Homel Antonio as Counsel - - - - - ================= A R G E N T I N A ================= ARGENTINA: USD150-Million Bond Sale Prices Risk After Milei's Term ------------------------------------------------------------------ David Feliba at Bloomberg News reports that Argentina sold US$150 million of a bond denominated in dollars that gauged investors appetite to finance the government beyond President Javier Milei's first term. Officials placed the local-law bond maturing in October 2028 at a yield of 8.9 percent, according to an Economy Ministry statement, according to Bloomberg News. The bond has a maximum authorised size of US$2 billion, though it will be issued gradually in weekly tranches of up to US$250 million, Bloomberg News relays. Investors closely watched the transaction, albeit modest in size, as a barometer of political risk stretching beyond Milei's current administration, which ends in December 2027, Bloomberg News discloses. Another government security known as the Bonar 2027 -- a similar instrument with a shorter maturity -- trades closer to a 5.1 percent yield, Bloomberg News says. Economy Minister Luis Caputo took to social media to point out the difference between the two yields broadly reflecting the premium investors demand to hold debt that extends beyond the next electoral cycle, Bloomberg News notes. Caputo, who shelved a plan to return to international markets earlier this year, says Argentina’s sovereign risk, around 580 basis points, should be about half that level, Bloomberg News discloses. Although investors have broadly welcomed Milei's fiscal tightening -- reflected in sharply lower sovereign spreads since last year’s midterms -- uncertainty over the durability of those policies under a future administration continues to weigh on Argentina’s borrowing costs, Bloomberg News relays. "This placement effectively allows the market to price so-called reversal risk," Gustavo Araujo, head of Research at local broker Criteria, wrote in a note ahead of the sale, Bloomberg News relates. "For sovereign debt investors, the key question is how sustainable current policies are over time and the likelihood that a future administration could shift course in a way that alters asset valuations," Bloomberg News adds. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Javier Milei is the current president of Argentina after winning the November 19, 2023 general election. He succeeded Alberto Angel Fernandez in the position. Argentina has the third largest economy in Latin America. The country's economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. In March 2022, the International Monetary Fund (IMF) approved a 30-month arrangement under an Extended Fund Facility for Argentina in the amount of SDR 31.914 billion (equivalent to US$44 billion, or 1000 percent of quota) -- with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. Moody's Ratings on July 17, 2025, upgraded Argentina's long-term foreign currency and local currency issuer ratings to Caa1 from Caa3 and changed the outlook to stable from positive. The upgrade reflects Moody's views that the extensive liberalization of exchange and (to a lesser extent) capital controls, alongside a new International Monetary Fund (IMF) program, support the availability of hard currency liquidity and ease pressure on external finances. This reduces the likelihood of a credit event. In January 2025, Moody's raised Argentina's local currency ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1 from Caa3. Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. S&P Global Ratings, in February 2025 lowered its local currency sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and its national scale rating to 'SD' from 'raB+'. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. =========== B R A Z I L =========== BRAZIL: Adds 370K Jobs in 2Mo, But Pace Falls 38% From Last Year ---------------------------------------------------------------- Iolanda Fonseca at Rio Times Online reports that Brazil formal employment creation slowed sharply in the first two months of 2026, according to CAGED data published Tuesday, March 31, by the Ministry of Labor. The economy added 370,339 net formal positions in January and February combined -- a 37.8% drop from approximately 595,000 in the same period of 2025, according to Rio Times Online. February accounted for 255,321 of those jobs, a significant improvement over January's 115,018 but still 42% below February 2025's 440,432, the report relays. The deceleration reflects the cumulative drag of the Selic at 14.75% and GDP growth that slowed to just 0.1% quarter-over-quarter in Q4 2025, the report notes. Sector Breakdown All five major economic sectors posted positive net job creation in February, but the distribution was uneven, the report discloses. Services dominated with 177,953 new positions, driven primarily by public administration, education, and health -- sectors less sensitive to interest rate cycles, the report says. Industry added 32,027 positions and construction contributed 31,099. Commerce, which typically contracts after the year-end holiday season, managed a modest 6,127 net gain, the report relays. Agriculture posted 8,123 new positions, the report notes. The services sector's outsized share -- nearly 70% of February’s total -- signals that job creation is increasingly concentrated in government-adjacent activities rather than private sector expansion, the report notes. This aligns with Lula‘s 24,000 new public positions signed into law the same day, the report discloses. The Selic Shadow The year-over-year decline is the clearest labor market evidence yet that tight monetary policy is constraining the real economy, the report relays. With the Selic at 14.75% and consumer credit costs rising, businesses face elevated borrowing costs that directly suppress hiring and investment decisions, the report discloses. The Focus survey now expects only 150 basis points of Selic cuts in 2026 -- half the 300bp anticipated before the Iran crisis, the report notes. If the easing cycle remains slower than expected, the labor market deceleration will deepen in the months ahead, the report says. Brazil's total formal workforce stood at 48.83 million at the end of February, up 2.19% over the trailing twelve months, the report relays. The labor market is still growing -- but at a pace that is falling further behind the government’s fiscal and political ambitions in an election year, the report adds. About Brazil Brazil is the fifth largest country in the world and third largest in the Americas. Luiz Inacio Lula da Silva won the 2022 Brazilian general election. He was sworn in on January 1, 2023, as the 39th president of Brazil, succeeding Jair Bolsonaro. In October 2024, Moody's Ratings upgraded the Government of Brazil's long-term issuer and senior unsecured bond ratings to Ba1 from Ba2, the senior unsecured shelf rating to (P)Ba1 from (P)Ba2; and maintained the positive outlook. S&P Global Ratings raised on Dec. 19, 2023, its long-term global scale ratings on Brazil to 'BB' from 'BB-'. Fitch Ratings affirmed on Dec. 15, 2023, Brazil's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB' with a Stable Outlook. DBRS' credit rating for Brazil was last reported at BB with stable outlook at July 2023. BRAZIL: Iran War Pushes Brazil's IPO and Equity Window to May-June ------------------------------------------------------------------ Iolanda Fonseca at Rio Times Online reports that the Brazil IPO market has entered a holding pattern. The equity offering window that banks and issuers had targeted for late March and April has been pushed to May-June as the Iran conflict drives sustained volatility across global markets, according to Rio Times Online. The early signals were clear, the report notes. Banco Pine and pharmacy chain Pague Menos both launched offerings in the first days of the conflict and raised only half of what they intended, the report relays. Retailer Riachuelo suspended studies for a secondary offering that could have raised R$500 million ($88 million) on March 20 -- and sources indicate the deal will be revisited in the new May-June window, the report notes. The Pipeline: Copasa, Aegea, BRK, Compass The major offerings are stacking up behind a single catalyst: the privatization of Copasa, Minas Gerais' state water utility, via a follow-on offering, the report discloses. Market participants expect Copasa to open the cycle of large deals and set the pricing benchmark for subsequent transactions in the sanitation sector, the report says. Aegea, one of Brazil's largest private water companies, may enter the Copasa privatization as a strategic investor -- which would delay its own IPO, the report notes. BRK, another major sanitation player, is likely to wait for both Copasa and Aegea to price before launching, since comparable valuations are critical for IPO pricing, the report relays. Compass, the natural gas distribution subsidiary of Grupo Cosan, had been racing to become the deal that would reopen Brazil's IPO market, the report says. The company aims to raise R$5 billion ($877 million), but a shareholder dispute between Cosan, BTG Pactual, and Bradesco over the use of proceeds has delayed the timeline, the report relates. The IPO could slip to July, according to sources familiar with the matter, the report discloses. Education company Vitru announced on March 25 that it is evaluating a R$200 million ($35 million) follow-on and is currently testing investor appetite, the report says. Additional follow-on offerings, not yet public, are also monitoring the conflict and targeting launches before June, the report relates. The Interest Rate Calculus The conflict has materially changed the short-term rate outlook, the report relays. Expected Selic cuts in 2026 have been halved -- from 300 basis points to 150 -- as the Iran energy shock feeds through to inflation expectations, the report says. But the 2027 projection remains unchanged, and that is the horizon equity investors are watching, the report notes. The yield curve remains downward-sloping, and the Central Bank's focus on 18-month-ahead inflation means the structural case for equities has not broken, the report says. What has broken is the near-term confidence needed to price and execute offerings in volatile conditions, the report relays. A Global Problem Brazil is not alone, notes the report. The US IPO market -- the world's largest -- also stalled with zero deal closings, according to Renaissance Capital, the report says. The most anticipated global offering, SpaceX's potential $75 billion IPO, has reportedly filed confidentially and is waiting for market stability, the report notes. Consultancy TS Lombard warned that the duration of the Iran war is the essential variable for determining global economic impact, with a prolonged conflict raising US recession risk, the report relays. For Brazil's IPO pipeline, that translates to a simple equation: if the conflict resolves or stabilizes by May, the window reopens. If it doesn't, the R$6+ billion in planned offerings may face a longer wait, 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. =================================== D O M I N I C A N R E P U B L I C =================================== BANCO DE RESERVAS: Fitch Affirms BB- LongTerm IDR, Outlook Positive ------------------------------------------------------------------- Fitch Ratings has affirmed Banco de Reservas de la Republica Dominicana-Banco Multiple, S.A.'s (Banreservas) Local and Foreign Currency Long-Term Issuer Default Ratings (IDRs) at 'BB-'. The Rating Outlook is Positive. Fitch has also affirmed Banreservas' Viability Rating (VR) at 'bb-'. Key Rating Drivers IDR/GSR Support Driven: Banreservas' IDRs reflect Fitch's assessment of the Dominican Republic government's reasonable ability and propensity to support the bank due to its systemic importance, policy role and full ownership by the government. The IDR's Positive Outlook is aligned with that of the sovereign according to Fitch's support assessment. Government Support Rating: The 'bb-' Government Support Rating (GSR) reflects Banreservas' systemic importance, supported by its 31% share of banking system assets at YE 2025, policy role in collecting funds for the government's single treasury account used to meet debt obligations, function as a key provider of public-sector lending, and 100% state ownership. The GSR also incorporates Fitch's view of a moderate likelihood of sovereign support, constrained by uncertainty around the Dominican Republic's capacity and willingness to provide timely assistance given its speculative-grade IDR. VR Operating Environment High Influence: Banreservas' ratings reflect Fitch's view of the Dominican Republic's Operating Environment (OE) and its influence on the banks' performance. The 'bb-/Stable' OE assessment is supported by Fitch's core metrics, including an Operational Risk Index (ORI) at the 42.9th percentile and GDP per capita of about USD11,000, which compare adequately with peers. Fitch believes the current score appropriately captures the Dominican Republic's operating conditions and sees limited near-term upside given the financial system's current regulatory framework and lag in the implementation of Basel standards relative to similarly rated jurisdictions. In addition, Fitch expects continued strain on borrowers' repayment capacity to continue to strain system-wide asset-quality metrics amid persistently high interest rates. This is alongside more moderate demand for banking services and slower sector growth than the double-digit average recorded over the past four years. Dominant Market Position: Banreservas is the Dominican Republic's largest bank, holding 31% of system assets as of YE 2025, and is a leading universal bank in both commercial and consumer lending. Although fully owned by the Dominican government, it operates as an independent and autonomous legal entity with a diversified business profile. Its public-sector exposure has continued to decline. Public-sector loans represented 5% of gross loans and public-sector deposits 16% of total deposits at YE 2025. As of YE 2025, the bank's total operating income (TOI) was USD1,506 million. Resilient Asset Quality: Banreservas' asset quality weakened in 2025 as higher interest rates drove a system-wide rise in NPLs, This was reflected in an increase in the impaired loans/gross loans ratio to 1.3% at YE 2025 from 0.9% at YE 2024. The bank was among the least affected from the system-wide NPL increase because of its diversified retail book and pricing flexibility, which remain sufficient in its view. Reserve coverage fell to about 280% at YE 2025 as post-pandemic buffers were used. Fitch expects coverage to remain broadly stable in the near term and decline gradually as provisioning becomes more efficient, while staying adequate. Delinquencies could increase if high rates persist. Challenged Profitability but Adequate: Banreservas' profitability weakened in 2025, with operating profit/RWA falling to 3.4% at YE 2025 from 4.7% at YE 2024 (2022-2025 average: 4.4%). The decline was mainly driven by higher provisioning as post-pandemic excess buffers were exhausted and charges moved closer to regulatory levels. Results were also affected by lower securities gains than in 2024, reflecting fewer market opportunities. Higher funding costs were largely offset by stronger asset yields, keeping NIM broadly stable at 6.4% (YE 2024: 6.3%). Fitch views profitability as adequate but elevated credit costs could continue to weigh on earnings. Fitch expects profitability to remain commensurate with the current score. Adequate Capitalization: At YE 2025, Banreservas' capitalization remained stable, with an FCC-to-RWA ratio of 18.3%. Loss-absorbing capacity continues to benefit from ample reserve coverage, while internal capital generation and moderate growth should support capital levels. Fitch expects capitalization to remain adequate and commensurate with the current ratings, and does not rule out a modest uplift from the recent regulatory change that will allow AFS unrealized gains/losses to be included in regulatory capital, subject to resilient profitability. Stable Liquidity: At YE 2025, Banreservas maintained a stable funding and liquidity position. The gross loans-to-customer deposits ratio remained conservative at 69.6% (YE 2024: 68.7%; YE 2023: 63.9%), reflecting continued loan growth while funding remained primarily anchored on customer deposits, which limits reliance on wholesale funding and supports financial stability. Fitch expects liquidity to remain sound, benefiting from an ample and stable deposit base. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade IDRs and VR - Banreservas' IDRs and VR would mirror any downgrade in the Dominican Republic's sovereign ratings and Country Ceiling; - Banreservas' IDRs are sensitive to a change in Fitch's perception of the Dominican sovereign's propensity to support the bank; - Banreservas' VR could be downgraded if there is a significant deterioration in asset quality or profitability or if the FCC to RWA ratio sustains below 10%. GSR - Banreservas' GSR would be affected by a negative shift in Fitch's assessment of the Dominican government's propensity to provide timely support to the bank. This could also arise in the event of a sovereign negative rating action. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade IDRs and VR - Positive rating actions could follow a sovereign upgrade resulting from the materialization of its Positive Outlook, as the bank's implied viability supports a higher rating level. GSR - Banreservas' GSR could be upgraded if the sovereign rating is upgraded. VR ADJUSTMENTS Fitch has assigned a Viability Rating Score of 'bb-', which is below the 'bb' implied score, due to the following adjustment reason: Operating Environment/Sovereign Constraint (negative). Public Ratings with Credit Linkage to other ratings Banreservas' ratings are driven by the Dominican Republic's sovereign rating. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Banco de Reservas de la Republica Dominicana - Banco Multiple, S.A. LT IDR BB- Affirmed BB- ST IDR B Affirmed B LC LT IDR BB- Affirmed BB- LC ST IDR B Affirmed B Viability bb- Affirmed bb- Government Support bb- Affirmed bb- ================= G U A T E M A L A ================= BANCO AGROMERCANTIL: Fitch Affirms BB+ LongTerm IDR, Outlook Stable ------------------------------------------------------------------- Fitch Ratings has affirmed Banco Agromercantil de Guatemala, S.A.'s (BAM) Long-Term (LT) Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB+'. Fitch also affirmed BAM's Short-Term (ST) Foreign and Local currency IDRs at 'B', the Shareholder Support Rating (SSR) at 'bb+' and the Viability Rating (VR) at 'bb- '. The Rating Outlook on the LT IDRs is Stable. Key Rating Drivers Ratings Driven by Shareholder Support: BAM's IDRs are driven by its 'bb+' Shareholder Support Rating (SSR), reflecting Fitch's assessment of Grupo Cibest S.A.'s (Grupo Cibest) ability and propensity to provide extraordinary support to BAM, if necessary. BAM plays a core strategic role in the group by providing financial services throughout Central America. High Strategic Subsidiary: BAM, as the fifth-largest bank in Guatemala, enhances the group's presence in the region through coordinated operations with other subsidiaries of the group. Additionally, Grupo Cibest considers Guatemala a long-term investment due to the positive macroeconomic dynamics of the country. In its support assessment, Fitch considers that any support required by the subsidiary would not impose a significant financial burden on Grupo Cibest, as BAM's total assets represented approximately 6% of the group's consolidated total assets as of YE25. Stable Operating Environment: Fitch expects Guatemalan banks to sustain solid financial performance and stable credit expansion, consistent with the agency's 'bb'/Stable Operating Environment (OE) assessment, above the implied 'b' category. Fitch forecasts real GDP growth of 3.7% in 2026, which should sustain business activity, while remittances and reduced trade frictions with the U.S. support consumption despite political and social risks. Good Franchise Drives BAM's VR: BAM's 'bb-' Viability Rating (VR) reflects its consistent business model and good market position within the Guatemalan banking system. As of YE25, the bank ranked fifth in the country in terms of total loans and customer deposits. This positioning has led to a stable Total Operating Income (TOI), with a four-year average of USD285 million, which at YE25 grew 8.5% yoy. Reasonable Asset Quality: BAM's asset quality deterioration was contained by credit underwriting improvements and focused on less risky products. A strengthened credit collection process also helped with containment. At YE25, BAM's impaired loans to gross loan ratio was 2.2% (average of 2% for 2025 to 2022). Fitch's assessment considers BAM's above peers' borrower concentration, with the top 20 borrowers accounting for 2.9x of Fitch Core Capital (FCC) at YE25. However, these risks have been partially mitigated by loan loss allowances, covering 106% of impaired loans and with an increasing trend. Fitch expects BAM's asset quality metrics to continue improving, reflecting better underwriting standards. Limited Profitability: BAM's core profitability ratios continue to compare unfavorably with direct peers. Metrics remained on the negative side. This is due to past asset quality pressures and regulatory provisioning. At YE25, the operating profit to risk-weighted assets ratio (RWA) was -0.2% compared with the 0.5% average for 2022 to 2025. Fitch expects profitability to improve in the medium term due to the bank's better credit underwriting, improved collection practices, reduced financing costs and operating efficiency gains. Good Capitalization Metrics: BAM's capitalization metrics are consistent with its business model and are sufficient to support growth and potential operational losses. Metrics continue to be supported by steady earnings generation, moderate RWA growth and null dividend payments. As of YE25, the FCC to RWA ratio was 10.9%, slightly below its four-year average of 11.1%, while the total capital ratio was 12.1% aided by subordinated debt. Fitch expects capital metrics to remain commensurate with the bank's rating level, underpinned by continuing to earnings generation. Fitch considers, as BAM core subsidiary for the group, it would receive extraordinary support from Grupo Cibest if needed. Stable Funding and Good Liquidity: BAM's funding structure continues to be supported by its good deposit franchise. At YE25, the bank's loan-to-deposit ratio was 94.4%, better than its four-year average of 99.2%, reflecting the bank's efforts to collect demand deposits and moderate loan growth. At the same date deposit grew 7.4%, with a similar rate expected for 2026. Positively, BAM maintains ample local and international funding options, helping them reach business targets. The bank's liquidity is good, with liquid assets that covered around 18.6% of total deposits and a liquidity coverage ratio of 183% at YE25. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A downgrade of Grupo Cibest's IDR or lower propensity to support could result in a downgrade of BAM's SSR and LT IDR while the ST IDRs would be downgraded following a multi-notch downgrade of Grupo Cibest's IDR; - BAM's VR could be downgraded by material asset quality deterioration that erodes its profitability, specifically if the bank's operating profit to RWA ratio does not show a clear trend of improvement and the FCC to RWA ratio deteriorates consistently below 10%. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - BAM's FC and LC IDRs and SSR could be upgraded if Grupo Cibest's IDRs are also upgraded; - The VR could be upgraded if the bank improves its operating profit-to-RWA ratio consistently above 2.5% or its FCC to RWA ratio above 13.0%, maintaining a stable asset quality and funding and liquidity profile; - ST IDRs are sensitive to changes in the LT IDRs. VR ADJUSTMENTS The operating environment score of 'bb' is above the 'b' category implied score due to the following adjustment reason(s): sovereign rating (positive). The business profile score of 'bb-' is above the 'b & below' category implied score due to the following adjustment reason(s): market position (positive). Summary of Financial Adjustments Fitch's core capital calculation excluded prepaid expenses and other deferred assets from shareholders' equity. Public Ratings with Credit Linkage to other ratings BAM's ratings are linked to Grupo Cibest's ratings. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Banco Agromercantil de Guatemala S.A. LT IDR BB+ Affirmed BB+ ST IDR B Affirmed B LC LT IDR BB+ Affirmed BB+ LC ST IDR B Affirmed B Viability bb- Affirmed bb- Shareholder Support bb+ Affirmed bb+ BANCO DE LOS TRABAJADORES: Fitch Affirms BB LT IDR, Outlook Stable ------------------------------------------------------------------ Fitch Ratings has affirmed Banco de los Trabajadores' (Bantrab) Long- and Short-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB' and 'B', respectively. Fitch has also affirmed Bantrab's Viability Rating (VR) at 'bb' and Government Support Rating (GSR) at 'bb-'. The Rating Outlook for the Long-Term IDRs is Stable. Key Rating Drivers Ratings Driven by Intrinsic Creditworthiness: Bantrab's IDRs are driven by its VR, which is aligned with its implied level of 'bb'. Bantrab's VR is underpinned by its well-established market position in the retail segment, adequately managed risk profile, reasonable asset quality, and strong capitalization supported by consistent earnings retention. Stable Operating Environment: Fitch expects Guatemalan banks to sustain solid financial performance and stable credit expansion, consistent with its 'bb'/Stable Operating Environment (OE) assessment, above the implied 'b' category. Fitch forecasts real GDP growth of 3.7% in 2026, which should sustain business activity, while remittances and reduced trade frictions with the U.S. support consumption despite political and social risks. Consistent Business Profile: Bantrab's business profile assessment continues to benefit from its good domestic position, with a 20.6% market share of consumer loans at end-2025. The bank's solid franchise in retail lending, particularly payroll loans, has led to an increase in total operating income (TOI) that averaged USD419.3 million during 2022-2025, with an annual growth in local currency of 4.4% in 2025. Fitch also considers positively the bank's retail-oriented funding profile, supported by a stable base of customer deposits, which underpins earnings stability. Risks Controls Adequately Mitigate Credit Risk: Fitch upgraded the risk profile and asset quality scores to 'bb'/Stable from 'bb-'/Stable. Fitch believes the bank's underwriting standards, characterized mainly by payroll deduction lending, together with lower single-borrower concentrations than local peers support its risk profile assessment. While consumer lending tends to be riskier, Bantrab's business model and collection mechanism allow it to absorb potentially higher credit costs as evidenced over the past two years. Stabilized Loan Quality Deterioration: Fitch expects the 90+ days impaired loans ratio to remain around 3% over the rating horizon, supported by effective charge-off management and prudent loan growth. The core metric decreased to 2.5% at end-2025 from a peak of 3.9% at end-2024. Loan loss allowances coverage of 90+ days impaired loans remains adequate at around 100%. Stable Profitability: Despite higher credit costs partly related to the adoption of the expected credit loss methodology in Guatemala, Bantrab's profitability has remained above 2% over the past two years. At end-2025, the operating profit to risk weighted assets (RWA) ratio was 2.1%, and Fitch expects the metric to remain at similar levels, consistent with its current 'bb'/Stable score. This is supported by consistent net interest income generation and continued discipline in administrative expenses. The non-interest expense to gross revenues ratio was 51.3% at end-2025, aligned with the past three years. Capitalization as a Financial Strength: Fitch views Bantrab's capitalization as a strength of its financial profile. The Fitch Core Capital (FCC) to RWA ratio was 24.0%, supported by consistent earnings retention, moderate dividend distributions and prudent loan growth. Fitch believes the bank has sufficient capacity to absorb its growth strategy and does not expect significant changes in the metric over the rating horizon. Consistent Funding and Liquidity Profile: Fitch views as positive Bantrab's funding profile, which is largely dependent on low-cost customer deposits. While the bank has limited diversification in terms of alternative funding sources relative to local peers, and Fitch does not expect this to change, Bantrab's funding profile is consistent with its business model and footprint in Guatemala. Therefore, Fitch upgraded the bank's score to 'bb'/Stable from 'bb-'/Stable. The loans to deposits ratio was 85.1% at end-2025, in line with the rating, and liquidity buffers remain adequate. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - The bank's IDRs and VR would reflect any negative action on Guatemala's sovereign ratings or a downward revision of Fitch's assessment of the OE; - Bantrab's VR and IDRs could be downgraded due to a sustained deterioration of its overall financial profile, reflected by weaker asset quality and profitability with the operating profit to RWA ratio consistently below 2%, causing the FCC to RWA ratio to fall below 12%. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Bantrab's VR and IDRs have limited upside potential. In the medium to long term, the bank's ratings could be upgraded if its business profile improves materially — specifically if the bank's TOI increases significantly and closes the gap compared to higher-rated domestic peers — while maintaining a good financial profile. Government Support Rating: Bantrab's GSR of 'bb-' reflects Fitch's view of its relative systemic importance, which is lower than some local peers. At YE25, Bantrab's market share in customer deposits was 7.3%. The support assessment also considers the depositor class in its total base, where Guatemalan sovereign entities represent a significant proportion. However, Fitch also considers the uncertainty of the Guatemalan sovereign to provide support due to the lack of recent history of government support for systemically important banks. For the GSR: Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Bantrab's GSR is sensitive to a downgrade of the sovereign rating, as well as its propensity to provide support. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Bantrab's GSR could be upgraded if Guatemala's sovereign rating is upgraded. For the Short-Term IDR: Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Bantrab's Short-Term IDR could be downgraded by a multi-notch downgrade in the bank's Long-Term IDR. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Bantrab's Short Term IDR could be upgraded if the bank's Long-Term IDR is upgraded by two notches. VR ADJUSTMENTS - The OE score of 'bb' has been assigned above the category-implied 'b' score due to the following adjustment reason: Sovereign Rating (positive). - The Capitalization and Leverage score of 'bb+' has been assigned below the category-implied 'bbb' score due to the following adjustment reason: Size of Capital Base (negative). Summary of Financial Adjustments Fitch's Core Capital calculation excluded prepaid expenses, net asset value from an insurance subsidiary and other deferred assets from shareholders' equity. Public Ratings with Credit Linkage to other ratings Bantrab's GSR is linked to Guatemala's sovereign Foreign Currency IDR. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Banco de los Trabajadores LT IDR BB Affirmed BB ST IDR B Affirmed B LC LT IDR BB Affirmed BB LC ST IDR B Affirmed B Viability bb Affirmed bb Government Support bb- Affirmed bb- BANCO INDUSTRIAL: Fitch Affirms 'BB+' Long-Term IDR, Outlook Stable ------------------------------------------------------------------- Fitch Ratings has affirmed Banco Industrial, S.A.'s (Industrial) Long-Term Foreign and Local Currency Issuer Default Ratings (IDR) at 'BB+', Foreign and Local Currency Short-Term IDRs at 'B', Viability Rating (VR) at 'bb+' and Government Support Rating (GSR) at 'bb'. The Rating Outlook for the long-term ratings is Stable. Key Rating Drivers Consistent Credit Profile: Industrial's ratings reflect its consistent leading position as the largest bank in Guatemala, its solid business and risk profiles, as well as its resilient financial performance. The bank's 'bb+' VR is one notch above the 'bb' implied VR to reflect its strong business profile, which Fitch considers a key rating strength. Industrial's rating is at the same level as the sovereign, reflecting the bank's leadership and strength relative to local peers. Stable Operating Environment: Fitch expects Guatemalan banks to sustain solid financial performance and stable credit expansion, consistent with Fitch's 'bb'/Stable Operating Environment (OE) assessment, above the implied 'b' category. Fitch forecasts real GDP growth of 3.7% in 2026, which should sustain business activity, while remittances and reduced trade frictions with the U.S. support consumption despite political and social risks. Business Profile with Growing Revenues: Industrial represented 28.8%, 28.3% and 26.6% of Guatemala's banking system's total assets, gross loans and deposits, respectively, as of YE25. Over the last four years, the bank expanded in size and revenues at double-digits. As of YE25, based on consolidated non-audited financials, Industrial's total operating income (TOI) increased by 11.1% year on year in local currency, reaching USD1.093 billion, with an annual average of USD913 million from 2022 to 2025. Fitch believes Industrial's domestic dominant market position, sustained access to diverse funding sources, and its regional footprint in Central America will continue to support pricing power and resilient revenue generation. Risk Profile Upgraded: Fitch upgraded Industrial's risk profile score to 'bb+' from 'bb'. Fitch views Industrial's risk profile as broadly aligned with its business model and supported by effective risk controls, limited market and operational risk losses, and sound capital and liquidity management, which underpin a resilient financial profile through the cycle. Controlled Loan Impairments: Asset-quality pressures have stabilized, and Fitch expects them to ease in the near term, supported by declining domestic policy rates and a low inflation backdrop in 2026. As of YE25, Industrial's non-performing loan (NPL) ratio was 2.0%, above the four-year average (1.4%) but below the system average (2.4%). Fitch expects the NPL ratio to stabilize around 2.0% in 2026, underpinned by tightened underwriting standards and good reserve coverage. Earnings Softened by Higher Provisions: Higher loan-loss provisions driven by the phased-in adoption of expected credit loss (ECL) regulation have constrained earnings despite net interest margin expansion. As of YE25, the operating income to risk weighted assets (RWA) ratio was 2.0% (2022-2025 average: 2.2%), aligned with most Fitch-rated Guatemalan peers. Fitch expects profitability to remain broadly stable over the rating horizon as ECL reserve build continues, partly offset by the bank's operating efficiency objectives. Capital Buffers Support Growth Capacity: Industrial's capitalization, underpinned by recurring earnings, hybrid capital and dynamic provisions, should support projected asset growth despite dividend distributions. As of YE25, the Fitch Core Capital to RWA ratio was 10.7%. Fitch revised the 'bb-' capitalization & leverage trend to positive from stable as Fitch expects capital ratios to strengthen in 2026 as credit growth moderates and following Industrial's recent global Tier 2 transaction under a C/B Loan structure (a subordinated loan combined with the placement of subordinated notes in capital markets) totaling USD850 million, which lifted the total capital adequacy ratio to above 14% in January 2026. Funding & Liquidity as a Rating Strength: Industrial's funding and liquidity profile is underpinned by a large, low-cost deposit base and diversified access to international credit lines. As of YE25, the loan-to-deposit ratio was 83.8% (2022-2025 average: 82.3%), comparing favorably with some regional peers. Fitch expects this metric to remain sound, supported by the bank's leading domestic deposit franchise. Refinancing risk is low, reflecting well-managed debt maturities and a solid liquidity buffer. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Industrial's IDRs and VRs would reflect any negative action on Guatemala's sovereign ratings or a downward revision of Fitch's assessment of the OE; - Industrial's IDRs and VR could be downgraded if its business profile weakens, and sustained deterioration in financial performance results in a material pressure in loan quality, a decline in the bank's operating profit to RWA metric consistently below 2%, and its FCC to RWA ratio falls consistently below 10%. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Industrial's IDRs, VRs and GSRs could reflect any positive action in Guatemala's sovereign ratings, while maintaining a consistent financial profile. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS Subordinated Debt: Industrial's subordinated debt ratings are anchored to its VR, reflecting the instruments' reliance on the bank's creditworthiness. The bank's USD750 million Tier 2 subordinated notes due April 2036 are rated 'BB-'. The two-notch differential from the VR reflects higher loss severity than senior obligations due to subordination and Fitch's expectation of weaker recoveries in a default. Fitch does not apply additional notching for non-performance risk, as the notes lack going-concern loss-absorption features (for example, interest deferral). The bank's USD35 million Additional Tier 1 (AT1) hybrid capital notes due April 2068 are rated 'B'. The four-notch differential from the VR comprises two notches for higher loss severity than senior obligations, reflecting deep subordination and weaker expected recoveries in a default, and two notches for non-performance risk due to the discretionary coupon omission feature. GSR Reflects Systemic Importance: Industrial's 'bb' GSR reflects its high systemic importance, underpinned by its leading deposit franchise (26.6% of system deposits at YE25), ranking first in Guatemala. Fitch views the Guatemalan authorities' propensity to support the bank as high to mitigate potential contagion risks. However, Fitch also factors in uncertainty around the sovereign's capacity and willingness to provide support, given the limited recent precedent of government support for systemically important banks. OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES Short-Term IDR: Industrial's Short-Term IDR is sensitive to changes in the Long-Term IDR. Subordinated Debt: The ratings of the Tier 2 and AT1 notes would be downgraded or upgraded based on changes to Industrial's VR and would likely maintain the downward notching from the VR. GSR: Industrial's GSR is sensitive to a downgrade of the sovereign rating, as well as its propensity to provide support. In turn, Industrial's GSR could mirror any positive action in the Guatemala's sovereign rating. VR ADJUSTMENTS The operating environment score of 'bb' is above the 'b' category implied score due to the following adjustment reason(s): sovereign rating (positive). The Viability Rating of 'bb+' is above the 'bb' implied Viability Rating due to the following adjustment reason(s): business profile (positive). Summary of Financial Adjustments Fitch's core capital calculation excluded prepaid expenses and other deferred assets from shareholders' equity. Public Ratings with Credit Linkage to other ratings Industrial's GSR is linked to Guatemala's sovereign FC IDR. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Banco Industrial, S.A. LT IDR BB+ Affirmed BB+ ST IDR B Affirmed B LC LT IDR BB+ Affirmed BB+ LC ST IDR B Affirmed B Viability bb+ Affirmed bb+ Government Support bb Affirmed bb Subordinated LT B Affirmed B subordinated LT BB- Affirmed BB- ============= J A M A I C A ============= JAMAICA: Secures US$70M IDB Loan for Public Sector Transformation ----------------------------------------------------------------- RJR News reports that the Ministry of Finance and the Public Service has signed a US$70 million agreement with the Inter-American Development Bank (IDB) to support the continued transformation of Jamaica's public sector. The agreement, signed on February 13, 2026, was highlighted during a visibility ceremony held at the Minister, according to RJR News. The program will be implemented over approximately six years, the report notes. The initiative aims to improve the efficiency and effectiveness of government operations by modernising key areas such as human resources, payroll, procurement and financial management, the report relays. It will also continue the shift from manual systems to integrated technology-driven processes, the report notes. The project includes four main components, the report discloses. Among them, the introduction of shared corporate services across government, the rationalisation of public bodies, strengthening civil service management structures and modernising human resources systems, the report says. The total cost of the programme is $78.5 million, with a Government of Jamaica contributing $8.5 million, the report relays. The programme will be implemented by the Transformation Implementation Unit, and aligns with Jamaica's Vision 2030 National Development Plan, the report adds. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a positive rating outlook. In October 2023, Moody's upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to B1 from B2, and senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has been changed to positive from stable. In September 2024, S&P affirmed 'BB-/B' longterm foreign and local currency sovereign credit ratings on Jamaica and revised outlook to positive. ===================== P U E R T O R I C O ===================== CONCEPTOS RESTAURANTS: Starts Chapter 7 Bankruptcy in Puerto Rico ----------------------------------------------------------------- On March 17, 2026, Conceptos Restaurants LLC filed for Chapter 7 protection in the U.S. Bankruptcy Court for the District of Puerto Rico. According to court filings, the Debtor reports between $1 million and $10 million in debt owed to between 1 and 49 creditors. About Conceptos Restaurants LLC Conceptos Restaurants LLC is a food service company engaged in restaurant operations, offering dining services and prepared meals within its local market. The company operates as part of the hospitality sector, serving a regional customer base. Conceptos Restaurants LLC sought relief under Chapter 7 of the U.S. Bankruptcy Code (Bankr. Case No. 26-01143) on March 17, 2026. In its petition, the Debtor reports estimated assets between $100,001 and $1,000,000 and estimated liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Enrique S. Lamoutte handles the case. The Debtor is represented by Myrna L. Ruiz Olmo, Esq. of MRO Attorneys at Law, LLC. VARADERO SEA FOOD: Taps Homel Antonio as Counsel ------------------------------------------------ Varadero Sea Food & Cuban Cuisine LLC seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to hire Homel Antonio Mercado Justiniano, a professional practicing law in Puerto Rico, to serve as legal counsel. Mr. Mercado Justiniano will provide these services: (a) examine documents of the Debtor and other necessary information to submit Schedules and Statement of Financial Affairs; (b) prepare the Disclosure Statement, Plan of Reorganization, records and reports as required by the Bankruptcy Code and the Federal Rules of Bankruptcy Procedure; (c) prepare Applications and proposed orders to be submitted to the Court; (d) identify and prosecute claims and causes of action assertable by the Debtor-in-possession on behalf of the estate; (e) examine proof of claims filed and to be filed in the case and possible objections to certain of such claims; (f) advise the Debtor-in-possession and prepare documents in connection with the ongoing operation of Debtor's business; (g) advise the Debtor-in-possession and prepare documents in connection with the liquidation of the assets of the estate, if needed, including analysis and collection of outstanding receivables and possible Motion for Sale or for Post Petition Loans; and (h) assist and advise the Debtor-in-possession in the discharge of any and all the duties imposed by the applicable provisions of the Bankruptcy Code and the Federal Rules of Bankruptcy Procedure. Mr. Mercado Justiniano will receive an hourly rate of $300, $125 for associates, and $50 for paralegals. He also received a $15,000 retainer. Homel Antonio Mercado Justiniano is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code, according to court filings. The firm can be reached at: Homel A. Mercado Justiniano Calle Ramírez Silva #8 Ensanche Martínez Mayagüez, PR 00680 Telephone: (787) 831-2577 (787) 805-2945 Facsimile: (787) 805-2945 E-mail: hmjlaw2@gmail.com About VARADERO SEA Varadero Sea Food & Cuban Cuisine LLC sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Puerto Rico Case No. 26-1052-11) on March 12, 2026. At the time of the filing, Debtor had estimated assets of between $50,001 and $100,000 and liabilities of between $100,001 and $500,000. Homel Antonio Mercado Justiniano is Debtor's legal counsel. ********* 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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