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260403.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, April 3, 2026, Vol. 27, No. 67 Headlines A R G E N T I N A YPF SA: Milei Hails Court Win, Slams Opposition in Broadcast C A Y M A N I S L A N D S ARADA SUKUK 2: Fitch Puts 'BB-' Sr. Unsec. Rating on Watch Neg. D O M I N I C A N R E P U B L I C BANCO MULTIPLE: Fitch Affirms 'BB-' Long-Term IDR, Outlook Positive G U A T E M A L A BANCO DE DESARROLLO: Fitch Affirms 'BB+' LT IDR, Outlook Stable BANCO G&T: Fitch Affirms 'BB' Long-Term IDR, Outlook Stable H O N D U R A S INVERSIONES ATLANTIDA: S&P Affirms 'B-' ICR, Removes From Watch Neg J A M A I C A JAMAICA: Faces Crude Oil Price Challenge M E X I C O MEXICO: IDB OKS $8M Investment Grant for Weather Resilience ROYAL HASS: Gets Final OK to Use Cash Collateral P U E R T O R I C O SN TRANSPORT: Diana Torres-Cancel Named Subchapter V Trustee - - - - - ================= A R G E N T I N A ================= YPF SA: Milei Hails Court Win, Slams Opposition in Broadcast ------------------------------------------------------------ Buenos Aires Times reports that President Javier Milei used a national televised broadcast to hail a favourable court ruling for Argentina in a case related to the 2012 nationalisation of state energy firm YPF and to paint leaders of the opposition Peronist movement as irresponsible and reckless. In a surprise 'Cadena Nacional' speech broadcast across national television, Milei fiercely criticised former president Cristina Fernandez de Kirchner and Buenos Aires Province Governor Axel Kicillof -- the key political figures behind the decision to expropriate YPF 14 years ago -- while praising his government for securing a major legal victory, according to Buenos Aires Times. What began as a message to celebrate the decision by a US appeals court ultimately became a political address filled with reproaches aimed at Peronism and Kirchnerism, which Milei blamed for triggering what he described as the most costly legal battle Argentina has ever faced abroad, the report notes. The case stems from Argentina's 2012 decision to nationalise YPF, then controlled by Spain's Repsol, the report discloses. Minority shareholders later filed lawsuits in the United States arguing that Argentina failed to launch a proper tender offer for remaining shares as required under YPF's corporate statutes, the report says. In 2023, a New York court ordered Argentina to pay roughly US$16 billion in damages, one of the largest judgments ever issued against the country, the report recalls. The recent appeals court ruling eased Argentina's position in the case, which Milei presented as a major relief for the country's finances, the report notes. Milei adopted a confrontational tone from the outset, the report relays. He described the ruling as an "event of historic and unprecedented importance" and said Argentina had managed to avoid a potential US$18-billion payout, the report notes. That figure, he claimed, was equivalent to 70 million minimum pension payments, the report says. The La Libertad Avanza leader sought to exploit the case politically, repeatedly reinforcing the idea that responsibility for Argentina’s long-term economic problems should be placed on previous Peronist administrations, the report relays. Milei said the favourable ruling was possible thanks to the "legal, political and diplomatic expertise" of his government's team, though he stressed that Argentina had been taken to the brink of catastrophe by past decisions, the report notes. He described the expropriation of the oil company as a "suicidal adventure" and accused Kirchnerism of nearly costing the country YPF while leaving behind a "bankrupt state," the report notes. "Expropriation is wrong because stealing is wrong," the President declared, one of the most striking lines of the speech, the report says. Throughout the address, Milei insisted that while populism may generate applause in the short term, it leaves deep damage in the medium and long term, the report discloses. He spoke of "populist arrogance," "cheap, second-rate nationalism" and "false sovereignists" - a string of expressions aimed at undermining the Kirchnerite narrative that the nationalisation of YPF was an act of economic sovereignty, the report relays. The expropriation not only led to a multi-billion-dollar lawsuit, it also scared away investment for more than a decade, Milei argued, the report says. He said the cost should not be measured only in the court case, but also in lower economic growth, less employment and higher poverty rates, the report notes. "They gambled with our future; we did not gamble, we simply won," Milei said, the report relays. The La Libertad Avanza leader also announced that his government had already sent Congress a bill to modify legislation governing expropriations, in order to strengthen protections for private property and prevent a similar legal dispute in the future, 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. =========================== C A Y M A N I S L A N D S =========================== ARADA SUKUK 2: Fitch Puts 'BB-' Sr. Unsec. Rating on Watch Neg. --------------------------------------------------------------- Fitch Ratings has placed Arada Developments LLC's Long-Term Issuer Default Rating (IDR) of 'B+' and its senior unsecured debt of 'BB-' on Rating Watch Negative (RWN). The RWN also applies to the senior unsecured rating of Arada Sukuk Limited's and Arada Sukuk 2 Limited's sukuk. The debt has a Recovery Rating of 'RR3'. The RWN reflects heightened geopolitical risk affecting UAE and the Gulf region, which could hamper housing and investor demand. The regional conflict could increase unsold stock and cancellation risk, which would raise working capital needs and require cash preservation. Arada's trading performance in 1H25 was positive, driven by regional economic growth and sustained housing demand in UAE. Fitch may affirm or downgrade Arada's ratings depending on the conflict's duration and its impact on housing demand, Arada's liquidity, pre-sales cover and its ability to cut capex and preserve cash. Key Rating Drivers Geopolitical Risk Pressures Demand: Heightened geopolitical risk in the Middle East could weaken buyer confidence and reduce demand for homes as both primary residences and investment assets, pressuring sales volumes and potentially pricing. Weaker reservations and slower off-plan sales could delay purchases, curb new launches and strain developers' cash flow, particularly if completion schedules are extended or buyer payment plans weaken. A sustained downturn could increase inventory and cancellation risk, adding volatility to contracted cash inflows and weighing on EBITDA margins. Geopolitical disruption could also affect supply chains, raising raw material and logistics costs, extending build timelines and increasing working-capital needs. These pressures may lead developers to prioritise liquidity and defer expansion. Funding and Demand Stress Risk: Sector demand stress would most affect developers that rely on short-dated debt, repeated refinancing of project loans or sales receipts to fund construction, especially those with high land spend, large unbilled receivables or concentrated project pipelines. Risk of high inflation and higher interest rates would weigh on mortgage demand. The impact would likely be uneven, with larger, better-capitalised developers and those able to phase projects and preserve liquidity - such as Arada - more resilient than smaller or more highly leveraged peers. Construction on Track: Arada's construction activity across its projects continues as planned, and it remains in close coordination with contractors and consultants to monitor material availability, logistics and broader supply-chain conditions. The company has not experienced material supply-chain disruptions or construction delays that affect project timelines. Its solid backlog (end-2025: AED19.8 billion) provides good visibility for deliveries over the next two years, with most of the upcoming phases in Aljada and Masaar nearly sold out. Prudent Cash Management: Liquidity management remains prudent, supported by an unrestricted cash balance of AED2.5 billion at end-2025. Management monitors land payments, discretionary capex and launch phasing, and retains flexibility on the timing of new project launches to protect liquidity. The company is revisiting capex plans and expects to defer, over the next 18 months, investments in non-revenue-generating assets and projects that are not build-to-sell (BTS). Phased construction and structured customer payment plans align cash inflows with construction progress and reduce upfront construction funding needs. Government Support Beneficial: Arada is an integral part of Sharjah's development plans for real estate. It benefits from local government support in accessing premium land and deferred land payment, including for the Aljada site. A 16-year, government-backed AED1.6 billion facility funds part of the programme. Under its Government-Related Entities (GRE) Rating Criteria, government oversight and precedents of support are 'Strong', supporting a one-notch uplift to Arada's 'b' Standalone Credit Profile (SCP). Peer Analysis Arada operates primarily in the emirate of Sharjah, which is smaller and less developed than Dubai and Abu Dhabi, but less volatile. Most of Arada's customer base comprises local resident owner-occupiers. The company is the primary master plan developer in Sharjah, which has had limited community development. Its strong competitive advantage stems from support from the Sharjah government, including access to land, which is critical in the UAE. Arada is developing projects in Dubai, which reduces its high geographic concentration, although without Sharjah government support. It competes with established UAE developers, such as Omniyat Holdings Ltd, Binghatti Holding Ltd. (both rated BB-/RWN), both specialising in free-standing high-rise towers. This business model is generally more asset-light than master-plan community building because it avoids large infrastructure spend and allows faster capital rotation. Unlike Binghatti, Arada does not operate an in-house construction arm. In contrast to Arada, Majid Al Futtaim Holding LLC (BBB/Stable) is a conglomerate with large portfolios of investment properties generating stable, recurring revenue. Arada's community projects include supporting assets, such as retail businesses and schools, which are retained and generate recurring revenue. Along with several other businesses owned by Arada, these are increasing and diversifying recurring cash flow, but are expected to remain a small part of revenue. Consequently, the company will remain mainly exposed to volatile development cash flow. Fitch’s Key Rating-Case Assumptions - Muted revenue growth to 2027, focussed on delivery pre-sold projects (mostly Aljada and Masaar) - No new project launches in 2026 - EBITDA margin at 20%-25% for 2026-2027 - Dividend distribution of AED275 million for 2025 and similar amount for the following two years Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the SCP: - Business and financial profile factors (assessment, relative importance): Management (bb, Moderate), Sector Characteristics (b+, Higher), Market and Competitive Positioning (bb-, Lower), Diversification and Asset Quality (b, Higher), Company Operational Characteristics (bb, Moderate), Profitability (b+, Moderate), Financial Structure (b+, Moderate), and Financial Flexibility (b, Higher). - The quantitative financial subfactors are based on standard CRT financial period parameters: 20% weight for the historical year 2024, 40% for the forecast year 2025 and 40% for the forecast year 2026. - The Governance assessment of 'Some Deficiencies' results in no adjustment. - The Operating Environment assessment of 'bbb+' results in no adjustment. - The SCP is 'b'. To derive the IDR: - Application of Fitch's GRE Rating Criteria results in a bottom-up +1 approach Recovery Analysis Fitch uses a liquidation approach for homebuilders, as potential buyers' primary focus would be valuable assets, such as land and developments rather than keep the business as a going concern. Fitch's recovery analysis dated October 2025 had assumed prior-ranking bilateral banking facilities of AED1.3 billion, including development and asset-level financing debt of AED350 million (end-December 2025), which is typically secured against developments and land, and ranks above the company's sukuk notes. The outstanding sukuk notes include three issues totalling AED5.2 billion (USD1.4 billion) with maturities in 2027-2030. Arada's main assets are its inventories (end-2025E: AED3.7 billion), including sites, land, construction in progress, completed buildings, and accounts receivable (AED4.2 billion). Fitch used a 50% advance rate for inventory and accounts receivables and applied a 50% advance rate to investment properties and equipment (AED2.4 billion). After deducting 10% for administrative claims, its waterfall analysis generates recoveries consistent with a Recovery Rating of 'RR3' for the generic unsecured class of debt, resulting in a senior unsecured rating of 'BB-'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Downgrade - Further escalation of the regional conflict leading to a prolonged period of subdued housing demand - Lack of focus on cash preservation - Change in government support leading to weaker business and financial profiles - Gross debt/EBITDA above 4.5x - Liquidity score consistently below 1x - Negative FCF on a sustained basis Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Positive FCF generation on a sustained basis - Sustained improvement in financial metrics leading to gross debt/EBITDA below 3.5x - An improved corporate governance structure - Reduced execution risk - Improved liquidity Liquidity and Debt Structure Liquidity is satisfactory, with AED2.5 billion of unrestricted cash at end-2025. This amount excludes AED1.3 billion cash held in escrow accounts, the use of which is restricted until certain milestones are completed for relevant specific projects. Over the past two years, Arada has established a sukuk programme of up to USD1 billion, of which USD550 million (AED2.0 billion) was drawn in 2024. At end-1H25, gross debt primarily comprised AED3.8 billion of two senior unsecured sukuk, maturing in June 2027 and June 2029, in addition to AED1.1 billion of secured bank facilities. In August 2025, the company tapped its sukuk programme with an additional USD450 million (AED1.7 billion) at a 7.15% profit rate, maturing in 2030. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. Climate Vulnerability Signals The results of its Climate.VS screener did not indicate an elevated risk for Arada. ESG Considerations Arada has an ESG Relevance Score of '4' for Governance Structure due to the weak structure of the board of directors compared with most EMEA peers'. The board comprises five members, including its two shareholders, one independent director and the chief executive officer. The limited number of independent board members has a negative effect on the credit profile and is relevant to the rating in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Arada Sukuk Limited senior unsecured LT BB- Rating Watch On RR3 BB- Arada Developments LLC LT IDR B+ Rating Watch On B+ senior unsecured LT BB- Rating Watch On RR3 BB- Arada Sukuk 2 Limited senior unsecured LT BB- Rating Watch On RR3 BB- =================================== D O M I N I C A N R E P U B L I C =================================== BANCO MULTIPLE: Fitch Affirms 'BB-' Long-Term IDR, Outlook Positive ------------------------------------------------------------------- Fitch Ratings has affirmed Banco Multiple BHD S.A.'s (BHD) Long-Term Local- and Foreign-Currency Issuer Default Ratings (IDRs) at 'BB-'. The Rating Outlook on the Long-Term ratings is Positive. Fitch has also affirmed the bank's Short-Term Local- and Foreign-Currency IDRs at 'B', the Viability Rating (VR) at 'bb-', and the Government Support Rating (GSR) at 'b+'. Key Rating Drivers Positive Rating Outlook: BHD's VR drives its Long-Term IDRs. The Positive Rating Outlook on the IDRs is aligned with that of the sovereign, indicating that the improved operating environment (OE) will allow the banks to continue generating consistent business volumes and supporting the financial system's double-digit growth and healthy financial profile. Operating Environment High Influence: BHD' 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 is adequate compared with peers. Fitch believes the current score appropriately captures the Dominican Republic's operating conditions and sees limited near-term upside. This is due to the financial system's current regulatory framework and lag in the implementation of Basel standards relative to similarly rated jurisdictions. Fitch also expects some pressure on borrowers' repayment capacity to continue to strain banking system asset-quality metrics amid persistently high interest rates. This is along with more moderate demand for banking services and lower credit growth compared to the double-digit average recorded over the past four years. Asset Quality Deterioration: High and persistent systemic interest rates have resulted in moderate asset quality pressure. BHD's 90‑day NPL ratio was 2.0%, remaining above its four‑year average (2022-2025) of 1.8%. Deterioration was concentrated in the consumer and small and medium-size enterprise (SME) segments, which have been more sensitive to higher borrowing costs. Nevertheless, asset-quality metrics remain consistent with the bank's rating level and business model. As a result, management undertook a targeted portfolio cleanup in 2025, focused on tighter underwriting standards, enhanced risk controls, slower loan growth in 1H25, and strengthened collection efforts. Fitch expects these measures to support a gradual improvement in asset quality towards historical levels. Lower Profitability Metrics: In 2025, BHD's profitability came under pressure due to higher impairment charges, reflecting increased NPL levels. This was partly offset by an improved net interest margin (NIM), which benefited from higher loan yields and mitigated persistently elevated funding costs. As a result, the bank maintained adequate profitability. The operating profit‑to‑risk‑weighted assets (RWA) ratio declined to 2.93% at YE 2025 from 3.31% at YE 2024. Fitch expects profitability to improve gradually, supported by a broadly stable NIM and lower impairment charges, driven by the expected normalization of asset quality. Adequate Capitalization: BHD's capitalization ratios have remained stable, reflecting adequate internal capital generation. As of YE 2025, the Fitch Core Capital (FCC) ratio was 13.18%. Fitch views the bank's current capitalization metrics as commensurate with the bank's business model, risk profile, and current ratings. BHD's loss-absorption capacity benefits from an over-provisioning of impaired loans (YE 2025: 199.73%), which has proven to be effective during periods of crisis. Robust Funding and Liquidity Position: BHD's funding structure and liquidity position remain sound, with adequate ability to meet its short-term obligations and sustain its operations, which is reflected by a solid loans-to-deposit ratio of 82.43% at YE 2025 (2022-2025 average: 82.37%). In addition, BHD maintains access to local capital debt markets and wholesale funding. Liquidity remains commensurate with the bank's current ratings. Fitch does not anticipate any changes to the bank's funding liquidity structure. Government Support Rating: BHD's Government Support Rating (GSR) of 'b+' reflects Fitch's view that, despite BHD's solid franchise, which makes it a systemically important bank, there is a limited probability of support because of significant uncertainty regarding the Dominican Republic's ability or propensity to do so. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Negative changes to BHD's IDRs and VR could occur in the event of a downgrade on the Dominican Republic's sovereign ratings and Country Ceiling; - Downgrades to BHD's VR could result from significant pressure on the bank's financial profile, such as significant asset quality or profitability deterioration, combined with an FCC-to-RWA ratio consistently below 10%; - A downgrade to BHD's GSR could occur if the sovereign's ability to support the bank weakens, as reflected in a sovereign downgrade, or if the sovereign's propensity to support the bank becomes less likely. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - 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. - An upgrade to BHD's GSR is possible in the event of a sovereign upgrade if it coincides with strengthening of the sovereign's ability and propensity to support the bank. VR ADJUSTMENTS The VR has been assigned below the implied VR due to the following adjustment reason(s): Operating Environment/Sovereign Constraint (negative) ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Banco Multiple BHD, 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 b+ Affirmed b+ ================= G U A T E M A L A ================= BANCO DE DESARROLLO: Fitch Affirms 'BB+' LT IDR, Outlook Stable --------------------------------------------------------------- Fitch Ratings has affirmed Banco de Desarrollo Rural, S.A.'s (BanRural) Long-Term Local and Foreign Currency Issuer Default Ratings (IDRs) at 'BB+', Short-Term Local and Foreign Currency IDRs at 'B', Viability Rating (VR) at 'bb+', and Government Support Rating (GSR) at 'bb+'. The Rating Outlook on the Long-Term IDR is Stable. Key Rating Drivers IDRs aligned to both the VR and GSR: BanRural's creditworthiness drives the ratings, reflected in its 'bb+' VR, which is in line with its implied VR level, while the GSR is aligned with Guatemala's sovereign rating. The VR is underpinned by BanRural's sound market position, above-peer capitalization, robust earnings, a solid deposit base, and asset quality consistent with its higher-risk business model. 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. Sound Business Profile: BanRural's business profile benefits from a strong market position in Guatemala and a solid domestic franchise. It is also supported by the bank's broad geographic reach, a development focus on micro-, small, and medium-sized enterprises (MSMEs), microloans and rural areas, and leading participation in remittance payments. These strengths underpin consistent earnings and sector-leading total operating income (TOI) that reached USD1,353 million as of December 2025, up 20.2% YoY in local currency. BanRural is the second-largest bank in the system, with 22.3% of sector assets at YE 2025. Riskier Profile: BanRural's risk profile reflects its capacity to support loan expansion without straining capitalization and its exposure to inherently higher-risk segments than peers due to its focus on MSMEs, microlending and rural areas. This risk is mitigated by strong underwriting standards and risk management framework that supports effective risk controls while preserving business volumes and earnings. Commensurate Asset Quality: Fitch upgraded the score to 'bb' from 'bb-' reflecting the agency's expectation that the bank's impaired loan ratio will remain below 4% (four-year average of 3.1%), balancing robust loan growth and higher risk business model. BanRural's impaired loan ratio has been above the sector average (YE 2025: 2.4%) and peers. Fitch expects this trend to continue, but the bank's good reserve coverage, modest single-obligor concentration, and a low-risk investment portfolio concentrated in sovereign debt will positively weigh in its asset-quality assessment. Fitch expects the impaired loan ratio to remain broadly stable in the current levels, driven by favorable domestic economic prospect and continued loan growth. Improved Earnings to Remain: BanRural's operating profits is the strongest in its peer group, supported by steady business volume growth, favorable funding mix with a higher share of demand deposits, and manageable loan-impairment charges despite the implementation of the expected loss provisioning regulation. Operating profit to risk weighted assets (RWA) was 5.5% at YE 2025 (four-year average of 5.3%). While operating expenses are rising due to strategic IT investments, Fitch expects the bank's earnings generation to absorb these costs and remain strong, supporting the upgrade to 'bbb-' from 'bb+' on the earnings and profitability score. Strong Capital Position: BanRural maintains robust capitalization and strong loss-absorption capacity relative to most local peers. At YE 2025, the bank's Fitch Core Capital (FCC) ratio was 19.8%, which Fitch views as sufficient to absorb expected credit growth and dividend payments, while remaining consistent with the bank's rating. Fitch also positively considers the fact that the bank's capital is entirely comprised of core equity, further strengthening quality and resilience. Sound Funding Profile: BanRural's ample deposit base, underpinned by its position as the second-largest competitor and a high proportion of demand deposits (72.7% of total deposits at YE 2025) contributes to a manageable cost of funding and enhances its business and funding and liquidity profiles. The gross loan-to-customer deposits ratio of 58.2% at YE 2025 is one of the lowest in the sector. Fitch expects this ratio to be broadly stable at around 60%. Systemic Importance: BanRural's 'bb+' GSR reflects Fitch's perception that the government's propensity to support the bank is very high due to its systemic importance, ample interconnectivity within the financial system due to its significant role in financial inclusion, and its 30% ownership by the government. At YE 2025, BanRural's market share in customer deposits was 24.1%, ranking second in the Guatemalan banking system. Fitch also considers in its assessment the uncertainty about the Guatemalan sovereign's propensity to provide support due to the lack of recent history of government support for systemically important banks. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - BanRural's LT IDRs, GSR and VR would reflect any negative rating action on Guatemala's sovereign ratings or a downward revision of Fitch's OE assessment; - The VR could be downgraded by a weakened business profile that materially deteriorates BanRural's TOI generation and financial profile; - ST IDRs are sensitive to changes in the LT IDRs; - BanRural's GSR is sensitive to a reduced government's propensity to provide support. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - BanRural's IDRs, VR and GSR would reflect any positive rating action in Guatemala's sovereign ratings while maintaining a consistent financial 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). Summary of Financial Adjustments Fitch's core capital calculation excluded prepaid expenses, equity interest in insurance companies and other deferred assets from shareholders' equity. Public Ratings with Credit Linkage to other ratings BanRural's GSR is linked to the sovereign Foreign Currency IDR of Guatemala. 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 Desarrollo Rural, 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+ BANCO G&T: Fitch Affirms 'BB' Long-Term IDR, Outlook Stable ----------------------------------------------------------- Fitch Ratings has affirmed Banco G&T Continental S.A.'s (G&TC) Foreign and Local Currency Long- and Short-Term Issuer Default Ratings (IDRs) at 'BB' and 'B', respectively, Viability Rating (VR) at 'bb', and Government Support Rating (GSR) at 'bb-'. The Rating Outlooks on G&TC's Long-Term IDRs are Stable. Key Rating Drivers Standalone Credit Profile Drives Ratings: G&TC's Long-Term IDRs are driven by its standalone credit profile as captured in its VR at 'bb'. The VR reflects the bank's relative strength in Guatemalan banking industry featuring a sound business profile and prudent risk profile that has enabled it to maintain competitive advantages and high market share across several segments. This translates into a consistent stable financial profile with adequate headroom to absorb challenges and risks over short- to mid-term. 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. Sound Business Profile: G&TC's business profile captures its solid franchise as well as its diversified business model that has allowed it to generate and defend business volumes and earnings across the cycle. The bank's sound business profile is reflected in its consistently stable financial profile and its growing total operating income (TOI), averaging USD400 million over the last four years (2025-2022). The bank's TOI ranks below regional peers and shows a significant gap versus its two largest domestic competitors, but its position as Guatemala's third-largest bank supports its business profile and underpins its 'bb' score. Risk Profile Upgraded: Fitch upgraded G&TC's risk profile assessment to 'bb+' from 'bb' due to its consistent focus on lower-risk borrowers and segments with reasonable diversification across its portfolio. The bank's adequate risk framework has also allowed it to effectively manage risk, translating into stable financial metrics through the cycle. Fitch believes the bank's prudent risk profile enables it to defend its sound creditworthiness. Asset Quality Stabilizing: G&TC's NPL ratio stabilized after 2024's deterioration due to the merger of the credit card portfolio from a subsidiary, reaching 1.3% at end-December 2025. Fitch expects asset quality to remain stable in the short to medium term, ranging close to 1.5% and favorable compared to industry and local peers. While phased implementation of the new loan loss allowances (LLA) criteria is increasing credit costs above historical levels, the bank's execution has preserved adequate reserve coverage, which Fitch expects to remain until full implementation in early 2029. Expenses Weighing on Profitability: A stable net interest margin and growth in earning assets supported total operating income, but higher expenses, mainly credit costs, outpaced it. Fitch expects profitability to improve around 2.0% in 2026 as the phased implementation in LLAs criteria weighs in a lesser way, while non-interest expenses will continue increasing due to technological infrastructure investments. Operating profit to risk-weighted assets (RWA) was 1.7% at end-December 2025. This was the lowest level since 2022 but broadly in line with the system also affected by the regulatory changes related with LLAs. Sustainable Capitalization: The bank's capitalization has proven sustainable through the cycle, supporting sustained double-digit loan growth and recurrent, relatively high dividend payments. Fitch expects capitalization to remain stable, offsetting sustained credit growth through recurring profits while the bank maintains flexibility and tools to manage its capital metrics. The FCC-to-RWA ratio was 13.2% at year-end 2025, similar to last year's metric. Reliable Funding and Liquidity: The bank's funding remains supported by a diversified and growing deposit base that more than covers its loan book, complemented by access to wholesale funding for securities growth and liquidity needs. Fitch expects G&TC's funding and liquidity profile to remain stable over the rating horizon. Gross loans-to-customer deposits were 73.6% at end-December 2025, in line with 2024 and better than some local peers. Liquid assets represented 42.2% from the bank's balance sheet, and regulatory medium- and short-term liquidity ratios were 48.3% and 21.3%, respectively, both above the industry. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - G&TC's IDRs are sensitive to a multi-notch downgrade of the sovereign rating or a downward revision of Fitch's assessment of the OE; - G&TC's IDRs and VR could be downgraded due to a sustained deterioration of its overall financial profile with operating profit to RWA consistently below 2% and a FCC-to-RWA metric consistently below 12%. - G&TC'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 - G&TC's IDRs and VR have limited upside potential. In the medium to long term, an upgrade is possible if the bank's business profile improves materially, specifically, if the bank's TOI significantly increase and close the gap compared to higher rated domestic peers, while maintain a good financial profile. - G&TC's Short-Term IDR could be upgraded if the bank's Long-Term IDR is upgraded by two notches. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS Medium Systemic Importance: G&TC's 'bb-' GSR reflects its medium systemic importance compared with its largest local peers. As of YE 2025 G&TC's market share in customer deposits was 12.0%. Due to its market share, Fitch considers the authorities' propensity to support high to avoid contagion risks. However, Fitch also considers the Guatemalan sovereign's propensity to provide support uncertain due to the lack of recent history of government support for systemically important banks. OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - G&TC's GSR is sensitive to a downgrade of the sovereign rating and to its propensity to provide support. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - G&TC's GSR could be upgraded if Guatemala's sovereign rating is upgraded. VR ADJUSTMENTS The operating environment score of 'bb' is above the 'b' category implied score due to the following adjustment reason: sovereign rating (positive). Summary of Financial Adjustments Fitch's core capital calculation excluded prepaid expenses and other deferred assets from shareholder's equity. Public Ratings with Credit Linkage to other ratings G&TC's GSR is linked to the sovereign FC IDR of Guatemala. 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 G&T Continental 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- =============== H O N D U R A S =============== INVERSIONES ATLANTIDA: S&P Affirms 'B-' ICR, Removes From Watch Neg ------------------------------------------------------------------- S&P Global Ratings removed its 'B-' ratings on Inversiones Atlantida and 'B+' ratings on Banco Atlantida from CreditWatch, where they had been placed with negative implications on Nov. 14, 2025, and affirmed both ratings. The outlook for Honduran financial group Inversiones Atlantida (Invatlan) is positive and for Banco Atlantida is stable. The stable outlook on Banco Atlantida reflects S&P's view that the bank's solid presence in Honduras, diversified deposit base, and manageable asset quality metrics will enable it to maintain sufficient internal capital generation and support a consolidated risk-adjusted capital (RAC) ratio of about 4.9%. Invatlan has successfully prepaid its US$300 million notes maturing in May 2026, after securing resources through credit facilities and shareholder contributions. Recent and expected capital injections of about US$300 million have strengthened Invatlan's financial position and improved its double leverage ratio, which we now project at about 120%, from a four-year average of 150%. Invatlan's refinancing risk has eased. Over the past three months, Invatlan focused on securing resources to meet its US$300 million senior secured notes payment due on May 19, 2026, through new debt and shareholder contributions. The group successfully refinanced US$48 million and prepaid US$150 million in January 2026 via an early redemption, using proceeds from preferred shares, new senior debt, credit facilities, and cash. Finally, the group secured an interbank credit facility, which, together with cash and dividends from two subsidiaries, was used to redeem the outstanding amount of the notes of about US$102 million on March 30, 2026. S&P said, "We maintain our group credit profile (GCP) of 'b+' on Invatlan. We removed our negative comparable ratings analysis (CRA) adjustment, because we think the group's refinancing risks have eased after Invatlan secured the resources to face the maturity without compromising the performance of its main subsidiaries. Although this situation may still weigh on borrowing costs, due to higher interest rates on new funding, we anticipate that business growth will mitigate margin pressure, and we expect profitability will remain relatively stable over the next 12 months." Moreover, the group has successfully raised approximately US$280 million through capital injections over the past months, with an additional US$20 million anticipated to materialize in the coming weeks. The latter, demonstrating shareholders' commitment to strength its consolidated capital metrics and group's financial position. This, combined with strong internal capital generation of around US$62 million from its main subsidiary Banco Atlantida in 2025, led us to raise our projected RAC ratio for the next two years to around 4.9% from 3.2%. S&P said, "On the other hand, we revised the business position assessment to adequate from strong, because we believe that Invatlan's governance framework reflects a riskier management policy compared with regional peers. In our opinion, the group's strategy of pursuing inorganic growth has resulted in aggressive liquidity policies and capital metrics below those of regional peers. These changes are neutral to our overall GCP of 'b+'. "Our rating on Invatlan remains two notches below the GCP. We deduct one notch of subordination to reflect Invatlan's dependence on dividends from its subsidiaries to service its financial obligations. The second notch reflects Invatlan's double leverage ratio, which in recent years has remained above 120%--our threshold for an additional notch of subordination. However, recent and expected capital injections of approximately US$300 million have improved Invatlan's double leverage ratio, which we now forecast at around 120% over the next 12 months, a substantial improvement compared to the 150% average ratio of the last four years. "The improvement on the group's double leverage ratio level reflects reduced dependence on subsidiaries' dividend generation and provides greater financial flexibility to the group. The positive outlook indicates our view that if Invatlan sustains this ratio around 120% over the next 12 months, we could remove one notch of subordination, potentially leading us to upgrade the company to 'B' from 'B-'. "The rating on Banco Atlantida reflects its status as a core subsidiary. We removed the negative CRA adjustment to the bank's stand-alone credit profile, which we'd initially placed due to our concerns that the parent company's higher refinancing risks could hamper the bank's performance, limiting its capacity for business growth and weakening its capitalization and liquidity. We also revised the business position assessment to adequate from strong, reflecting the group's aggressive management strategies." As of year-end 2025, Banco Atlantida's performance showed business stability, with operating revenue growth of around 14%, driven by a 5.5% increase in lending relative to 2024 and resilient net interest margins at around 5%, in line with S&P's forecast. Moreover, the bank reported year-over-year net income growth of about 40%, supported by the decline in credit loss provisioning, which had risen significantly in 2024. S&P said, "We expect the bank's profitability to continue to gradually improve as the bank's competitive advantage in funding, primarily derived from its retail deposit base, will continue to support margin stability. We forecast return on assets at about 0.9% and return on equity at around 9.6% over the next 12 to 24 months, still below regional peers. Additionally, we expect the bank's asset quality metrics to remain manageable, with nonperforming assets at 2.5% and credit losses below 1%, reflecting its significant exposure to large corporations with strong payment capabilities. Finally, we expect the funding structure to remain solid, with more than 85% of total funding coming from a large and diversified retail deposit base." Inversiones Atlantida: The positive outlook reflects a likelihood of at least one-in-three that S&P could raise our ratings on Invatlan over the next 12 months if the group consistently maintains a double leverage ratio at around 120%, supported by sufficient internal capital generation from its subsidiaries to offset potential organic and inorganic growth. Banco Atlantida: The stable outlook on Banco Atlantida for the next 12 months incorporates our expectation that its sound presence in Honduras, diversified deposit base, and manageable asset quality metrics will enable it to maintain sufficient internal capital generation to support Invatlan. Inversiones Atlantida: S&P could revise its outlook to stable if Invatlan's double leverage ratio deviates from our base-case scenario, leading to a ratio consistently above 120%. This could occur if the expected business expansion is not compensated by a strengthened capital base, either through organic internal capital generation or additional capital injections. Banco Atlantida: S&P could lower the rating if Invatlan performs acquisitions or corporate actions that weaken the group's RAC ratio below 3%. Inversiones Atlantida: S&P could raise its rating on Invatlan by removing one notch of subordination if it maintains double leverage consistently around 120% over the next 12 months. This would depend on the group maintaining stable revenue generation from its main subsidiaries and keeping double leverage stable despite organic and inorganic business expansion opportunities. Banco Atlantida: An upgrade of Banco Atlantida would require an improved GCP. This could happen if at a consolidated level, the group demonstrates stronger internal capital generation than our current projections, effectively offsetting the anticipated growth in risk-weighted assets, while sustaining a conservative dividend payout policy that results in a consolidated RAC ratio consistently above 5%. ============= J A M A I C A ============= JAMAICA: Faces Crude Oil Price Challenge ---------------------------------------- RJR News reports that the Jamaican government faces the prospect of having to change its crude oil forecast in the budget because the price of crude continues to soar as a result of the war in the Middle East. The government projected annual average crude oil prices of US$62 per barrel during the next four years but the price of Brent crude rose to US$108.52 per barrel and the price of the West Texas Intermediate crude increased to US$98.23 per barrel when the spot market closed in New York and London, according to RJR News. Higher crude oil prices will lead to higher levels of cost, increased inflation, higher interest rates and slower global GDP growth, 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 =========== MEXICO: IDB OKS $8M Investment Grant for Weather Resilience ----------------------------------------------------------- Small farmers in nine Mexican states will receive new support to improve their resilience against extreme weather with an $8 million investment grant from the Inter-American Development Bank (IDB). The grant, approved by the IDB's Board of Executive Directors, will expand financing for nature-based agricultural investments that protect soils, water, and ecosystems and enhance resilience at the farm level, helping safeguard rural livelihoods and food security. The IDB grant will support partial credit guarantees through Mexico's Agricultural Trust Funds (FIRA), a public financing mechanism created by the Ministry of Finance and Public Credit and managed by the Central Bank of Mexico. These guarantees will work by sharing financial risks among participating financial institutions, making it easier for them to finance projects that might otherwise be seen as too risky. The project is expected to mobilize an estimated $30 million in guaranteed loans, benefiting approximately 3,000 small farmers in vulnerable regions with high poverty rates. By mitigating portfolio risk for financial intermediaries, the project is expected to incentivize sustained participation of the rural financial system in adaptation lending, leading to improved access, longer loan maturities, and better terms for smallholders. The IDB grant is financed by donor funds from Germany's Federal Ministry for Environment, Nature Conservation and Nuclear Safety (BMUKN) under their International Climate Initiative (IKI). ROYAL HASS: Gets Final OK to Use Cash Collateral ------------------------------------------------ Royal Hass, LLC received final approval from the U.S. Bankruptcy Court for the Northern District of Georgia, Atlanta Division, to use cash collateral to fund operations. Under the final order, the Debtor is authorized to use cash collateral in accordance with an agreed budget, subject to a 15% variance. This authorization continues until a Chapter 11 plan is confirmed, or the bankruptcy case is dismissed or converted. Creditors including the U.S. Small Business Administration, Silo Technologies, Inc., JPMorgan Chase Bank, N.A. and CT Corporation System may assert an interest in the cash collateral. As adequate protection for any diminution in the value of their collateral, the creditors will be granted replacement liens on the Debtor's assets similar to their pre-bankruptcy collateral, with the same validity, priority and extent as their pre-bankruptcy liens. The replacement liens exclude claims and causes of action under Bankruptcy Code sections 544 to 550 and 553(b). A copy of the court's order and the Debtor's budget is available at https://shorturl.at/Xv3I9 from PacerMonitor.com. About Royal Hass LLC Royal Hass, LLC engaged in importing and distributing fresh fruits and vegetables, particularly avocados from Mexico. It is headquartered in Forest Park, Georgia. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 26-51801) on February 10, 2026. In the petition signed by Antonio Moreno, chief executive officer, the Debtor disclosed up to $1 million in assets and up to $10 million in liabilities. Judge Lisa Ritchey Craig oversees the case. Leslie Pineyro, Esq., at Jones & Walden LLC, represents the Debtor as legal counsel. ===================== P U E R T O R I C O ===================== SN TRANSPORT: Diana Torres-Cancel Named Subchapter V Trustee ------------------------------------------------------------ The U.S. Trustee for Region 21 appointed Diana Torres-Cancel as Subchapter V trustee for SN Transport Inc. Ms. Torres-Cancel will be paid an hourly fee of $150 for her services as Subchapter V trustee and will be reimbursed for work related expenses incurred. A retainer of $2,000 is requested. Ms. Torres-Cancel declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. About SN Transport Inc. SN Transport, Inc., a privately held company founded in June 2014 and based in Cabo Rojo, Puerto Rico, provides commercial transportation and goods delivery services across the island. Incorporated under the laws of the Commonwealth of Puerto Rico, the firm qualifies as a small business debtor under the U.S. Bankruptcy Code. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 26-01095) on March 15, 2026, with $100,000 to $500,000 in assets and $1 million to $10 million in liabilities. Whesley Eliezer Sepulveda Rodriguez, owner, signed the petition. Jose Francisco Gierbolini, Esq. represents the Debtor as 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. 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