260420.mbx

260420.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 Monday, April 20, 2026, Vol. 27, No. 78 Headlines A R G E N T I N A ARGENTINA: Industry Slumps for 8Mo Running, Down 8.7% in February ARGENTINA: Iran War Sets Back Milei's Zero-Inflation Promise B R A Z I L AEGEA SANEAMENTO: Moody's Corrects April 13 Ratings Release ANDRE MAGGI: Fitch Lowers Long-Term IDR to 'BB-', Outlook Negative C O L O M B I A GRUPO NUTRESA: Fitch Rates USD1.25BB Notes 'BB+', Outlook Stable GRUPO NUTRESA: Moody's Rates USD1.25BB Notes Ba1, Outlook Now Neg. D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Hits Record USD1.4BB in March Exports J A M A I C A JAMAICA: JMEA Urges Gov't to Quickly Address Looming Energy Crisis P U E R T O R I C O IES ELEVATOR: Hires Batista Law Group PSC as Counsel PUERTO RICO: 1st Cir. Weighs Officials' Immunity in Restructuring - - - - - ================= A R G E N T I N A ================= ARGENTINA: Industry Slumps for 8Mo Running, Down 8.7% in February ----------------------------------------------------------------- Buenos Aires Times reports that Argentina's industrial sector remains in a fierce contraction, with output in the first two months of 2026 down 12 percent from the same period last year, according to government data. Economic indicators published by the INDEC national statistics bureau showed that manufacturing output fell 8.7 percent year-on-year in February, another blow following a 3.3 percent decline in January, according to Buenos Aires Times. The data extends a sustained downturn for the sector that has now lasted eight consecutive months, the report notes. There were no signs of recovery in monthly terms either -- output dropped four percent in February from January, marking one of the steepest month-on-month falls since early 2025, the report recalls. Industry has been among the sectors hardest hit by President Javier Milei's economic program, with declines recorded every month since last July, the report discloses. The cumulative contraction underscores the pressure on domestic demand and investment as the government pushes ahead with fiscal adjustment and deregulation, the report notes. According to INDEC, 14 of 16 manufacturing branches posted year-on-year declines in February, the report says. The steepest falls were seen in textiles, which plunged 33.2 percent, machinery and equipment, down 29.4 percent, vehicles and auto parts, down 24.6 percent, the report relates. Clothing garments, leather and footwear dropped 18.2 percent, while food and beverages fell 6.9 percent, the report notes. The sharpest contractions were concentrated in sectors tied to consumer demand and capital investment, both highly sensitive to credit conditions and economic activity, the report relays. Only a handful of sectors showed resilience. Oil refining and related products rose 19.7 percent, while chemical substances and products increased 3.7 percent, the report says. "Industrial contraction continues with a steep and generalised fall but with some initial indications of stabilisation. The key from here onwards will be the recovery of consumer markets and investment to confirm a change in trend," said a report from the Centro de Estudios Políticos y Económicos (CEPEC) think tank, the report notes. Economist Hernan Letcher, the director of the Centro de Economía Política Argentina (CEPA) think tank, said on social media that industrial activity remains roughly 10 points below its average level prior to Milei's inauguration in late 2023, and nearly six points below its most recent peak in May 2025, the report notes. "The level of industrial activity remains almost 10 points below the average between January and November 2023," Letcher wrote, adding that output is still well off its recent highs. "Industrial production is 5.8 points below its last peak in May 2025," he added. Additional data from the Federacion de Industrias Textiles Argentinas (FITA) trade group highlighted the depth of the downturn in one of the nation's worst-affected sectors, the report discloses. Textile production fell 23.9 percent year-on-year in January, marking its sharpest contraction since the sector’s records began in 2016, the report says. Capacity utilisation in the textile sector dropped to just 24 percent in January, down more than 10 percentage points both month-on-month and year-on-year, the report notes. Across industry as a whole, use of installed use stood at 53.6 percent, underscoring the severity of the textile slump, the report relays. The report notes that the CEPEC think tank said the contraction remains "steep and generalised," although it noted early signs of stabilisation. It added that any sustained recovery will depend on a recovery of "consumer markets and investment." About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Javier Milei is the current president of Argentina after winning the November 19, 2023 general election. He succeeded Alberto Angel Fernandez in the position. Argentina has the third largest economy in Latin America. The country's economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. In March 2022, the International Monetary Fund (IMF) approved a 30-month arrangement under an Extended Fund Facility for Argentina in the amount of SDR 31.914 billion (equivalent to US$44 billion, or 1000 percent of quota) -- with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. Moody's Ratings on July 17, 2025, upgraded Argentina's long-term foreign currency and local currency issuer ratings to Caa1 from Caa3 and changed the outlook to stable from positive. The upgrade reflects Moody's views that the extensive liberalization of exchange and (to a lesser extent) capital controls, alongside a new International Monetary Fund (IMF) program, support the availability of hard currency liquidity and ease pressure on external finances. This reduces the likelihood of a credit event. In January 2025, Moody's raised Argentina's local currency ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1 from Caa3. Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. S&P Global Ratings, in February 2025 lowered its local currency sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and its national scale rating to 'SD' from 'raB+'. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. ARGENTINA: Iran War Sets Back Milei's Zero-Inflation Promise ------------------------------------------------------------ Buenos Aires Times reports that the US war with Iran threatens to upend one of Javier Milei's most emphatic promises: monthly inflation below one percent by the middle of this year. Argentine consumer prices accelerated to 3.4 percent in March, the highest level in a year, according to data published April 14, 2026, according to Buenos Aires Times. The President conceded it was a bad result, and investors are now expecting a tougher slog to rein in prices, the report notes. The rise in energy costs triggered by the war is forcing a revision of inflation forecasts in coming months, the report relates. For "August this year, consumer inflation may start with zero," a more enthusiastic Milei had said in a speech in March, ticking off a series of conditions for it to happen, the report notes. In a separate appearance, he said, "by the middle of next year, Argentina's inflation problem will be over." The government is still holding onto that script, the report discloses. Economy Minister Luis Caputo said this week that April inflation should slow down, a common trend in Argentina as March has many seasonal factors, the report says. The administration is betting that inflation will cool off if the energy impact from Iran dissipates and the local economy stays on course, the report relays. For now, the market is moving the other way, the report notes. Inflation break-evens implied by Argentina's fixed-rate peso bills and inflation-linked debt have jumped to 31 percent in April from 25 percent in January, according to calculations by Banco de Valores, Argentina's main financial trustee, the report says. Investors are now demanding protection against a much higher inflation path than the one they were pricing only weeks ago, the report relays. "The price of oil is not going back to pre-conflict levels, and that will have an impact on energy, both directly and indirectly," said Fernando Marengo, partner at BlackToro, an Argentina-focused investment and advisory firm with operations in both Argentina and the United States, the report notes. Oil's impact could sting worse in Argentina than some countries – from petrol to logistics to fertiliser costs -- because agriculture still anchors exports and economic activity, especially during the peak harvest currently going on, the report discloses. Beyond the immediate impact, there's also second-round effects that are more difficult to assess, such as food and supply chain costs, the report says. Another factor that's harder to forecast is Milei's standing with voters, which has hinged largely on his battle against inflation over his first two-and-a-half years in office, the report notes. While he successfully brought price hikes down from triple-digit territory to more familiar levels by Argentine standards, monthly inflation has gradually ticked up over several months, the report relates. Milei's approval rating fell to 36 percent in March, the lowest level of his Presidency, the report says. Expected inflation for full-year 2026 rose to 29.1 percent in March from 22.4 percent in January, according to the Central Bank's monthly survey, the report says. They also forecast August monthly inflation to be around 1.8 percent, a notch higher than their previous forecast, the report relays. "The risks of revisions are skewed to the upside," said Rodrigo Park, chief economist at Santander in Argentina. The bank's annual inflation estimate has jumped to 26 percent by the end of this year from 16 percent previously, the report notes. "We had numbers above what was expected in the first quarter for domestic reasons, but now we also believe fuel-price increases will have an impact," the report adds. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Javier Milei is the current president of Argentina after winning the November 19, 2023 general election. He succeeded Alberto Angel Fernandez in the position. Argentina has the third largest economy in Latin America. The country's economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. In March 2022, the International Monetary Fund (IMF) approved a 30-month arrangement under an Extended Fund Facility for Argentina in the amount of SDR 31.914 billion (equivalent to US$44 billion, or 1000 percent of quota) -- with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. Moody's Ratings on July 17, 2025, upgraded Argentina's long-term foreign currency and local currency issuer ratings to Caa1 from Caa3 and changed the outlook to stable from positive. The upgrade reflects Moody's views that the extensive liberalization of exchange and (to a lesser extent) capital controls, alongside a new International Monetary Fund (IMF) program, support the availability of hard currency liquidity and ease pressure on external finances. This reduces the likelihood of a credit event. In January 2025, Moody's raised Argentina's local currency ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1 from Caa3. Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. S&P Global Ratings, in February 2025 lowered its local currency sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and its national scale rating to 'SD' from 'raB+'. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. =========== B R A Z I L =========== AEGEA SANEAMENTO: Moody's Corrects April 13 Ratings Release ----------------------------------------------------------- Moody's Ratings placed AEGEA Saneamento e Participacoes S.A. (Aegea Saneamento)'s Ba3 Corporate Family Rating and the B1 backed senior unsecured rating of Aegea Finance S.a r.l. (Aegea Finance) under review for downgrade. RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS This rating review was triggered by the repeated delays in the publication of the audited financial statements for fiscal year 2025, amid certain accounting restatements. Even though the financials were reported within the cure period of its reporting obligations and without a qualified auditor's opinion, several weaknesses identified in the design of internal controls led to accounting changes with reversals on reported revenues among other adjustments. The 2024 income statement and shareholders' equity deductions amounting to BRL593 million and BRL4.3 billion, respectively, represented about 25% and 12% of previously reported figures. While Moody's recognizes the benefit of these initiatives to increase transparency in the company's disclosures, these restatements evidenced accounting practices that recognized revenue and profits on an accelerated basis ahead of the effective cash conversion, favoring shareholders over creditors and contributing to a lower confidence in the company's revenue forecast. As such, governance considerations are a key driver of this rating action. During the review process, Moody's will focus on the impact of the restatements on Moody's cash flow projections. Moody's will also evaluate the extent to which the company can improve the timeliness of its financial reporting and reinstate credibility within its stakeholders, including lenders and shareholders, to support capital expenditures commitments. More specifically, the review will assess the current liquidity position and its ability to generate internal cash to sustain timely debt service payments, in particular at the holding company level. Moody's will also consider its overall refinancing capacity and effective access to capital markets under current conditions, as well as management's ability to revamp and stabilize disclosure practices and mitigate heightened governance risk. An upgrade is unlikely at this point, considering the current review process. The ratings could be affirmed at the current level if the company is able to demonstrate stronger governance standards and ability to sustain its consolidated debt capitalization ratio within 80%, while its cash flow interest coverage ratios remain at around 1.5 times and funds from operations over net debt remain above 7.5%. It would also require evidence of adequate liquidity to operate comfortably without external sources during a minimum period of twelve to eighteen months. The rating of Aegea Finance could be downgraded if Moody's perceives a sustained deterioration in internal cash flow generation to support debt service amid limited flexibility to upstream dividends from its operating companies. Downward pressure on Aegea Saneamento could also arise if, following the restatements, consolidated debt to capitalization rises above 85%, if Moody's forward-looking assessment indicates cash flow interest coverage is unlikely to be maintained above 1.5 times on a sustained basis, or if increased leverage does not follow a clearly decreasing trajectory. A downgrade could additionally result from weaker access to credit markets or a reduced willingness of shareholders to provide financial support. PROFILE AEGEA is one of the largest private water and sewage companies operating basic sanitation assets in Brazil under full or partial concession contracts and public-private partnerships (PPPs). The company is present in 893 municipalities located in 15 states. It serves a population of more than 39 million people. In the 12 months that ended December 2025, AEGEA reported net revenue of BRL12.3 billion, EBITDA of BRL7.9 billion. As of March 2026, AEGEA's shareholders are Equipav (52.1% stake), the Government of Singapore Investment Corporation - GIC (34.6% stake) and Itausa S.A. (13.3% stake). LIST OF AFFECTED RATINGS Issuer: AEGEA Saneamento e Participacoes S.A. Placed On Review for Downgrade: LT Corporate Family Rating, Placed on Review for Downgrade, currently Ba3 Outlook Actions: Outlook, Changed To Rating Under Review From Stable Issuer: Aegea Finance S.a r.l. Placed On Review for Downgrade: Backed Senior Unsecured, Placed on Review for Downgrade, currently B1 Outlook Actions: Outlook, Changed To Rating Under Review From Stable The principal methodology used in these ratings was Regulated Water Utilities published in August 2023. ANDRE MAGGI: Fitch Lowers Long-Term IDR to 'BB-', Outlook Negative ------------------------------------------------------------------ Fitch Ratings has downgraded Andre Maggi Participacoes S.A.'s (Amaggi) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) to 'BB-' from 'BB' and its Long-Term National Scale Rating to 'AA(bra)' from 'AA+(bra)'. Fitch has also downgraded Amaggi Luxembourg International S.a r.l.'s senior debt to 'BB-' from 'BB'. The Rating Outlook for the IDRs and the National Scale Rating is Negative. The downgrade reflects a delay in the company's expected deleveraging. Fitch expects RMI-EBITDA net leverage to remain above 3.5 x in 2026 and 2027. The Negative Outlook also reflects uncertainty around the 2027 crop season due to fertilizer and other input prices. These factors could directly affect margins in the farming business and trading volumes and delinquency rates. Amaggi maintains a strong position in the Brazilian agribusiness sector and an adequate liquidity position. Key Rating Drivers Weakened Financial Profile: Amaggi's financial profile has weakened and, over the rated horizon, is commensurate with the 'B' category, supported by higher net leverage and lower EBITDA-to-interest expense. Fitch expects RMI net-adjusted leverage to remain at elevated levels over the rated horizon, averaging around 3.8x in 2026 versus 3.6x in 2025. Leverage rose to about 5.7x in 2024 due to weaker profitability in the trading and farming divisions following the crop failure in Mato Grosso. Fitch also projects EBITDA-to-interest expense will average 2.5x, which is likewise consistent with the 'B' category. For credit purposes, Fitch uses RMI-adjusted leverage when assessing commodity processing and trading companies. Soybeans Perspectives in Mato Grosso: Fitch's base case assumes that soybean production in Mato Grosso in 2026 will be in line with 2025 at around 51 million tons. After a challenging 2024, the maintenance of this level of production still provides healthier competition for origination by improving margin spreads and diluting logistics expenses for traders, as well as improving margins for farmers in the region. For 2027, it would be reasonable to expect a decline in soybean production depending on the developments of the Iran conflict and its consequences in the fertilizer and transportation and freight markets. Commodities Prices: Fitch assumes the soybean prices of USD11.30 per bushel in 2026 and USD11.10 per bushel in 2027, and corn prices of USD4.47 per bushel in 2026 and 2027. These prices should not pressure the working capital needs of commodity trading companies. However, fertilizer prices in the second half of 2026 warrant monitoring because they will affect soybean crop costs for harvest in the first quarter of 2027. Competitive Structure in Mato Grosso: Amaggi's capacity to process large volumes, thanks to its logistics, enables the group to compete with large multinational grain companies such as Archer Daniels Midland Company (ADM; A/Negative), Cargill Incorporated, and Bunge Global S.A. (Bunge; BBB+/Stable) in the acquisition of grains in Mato Grosso, which is the largest soy and corn producing region in Brazil. Counterparty Risks: Financing provided to farmers is subject to strict criteria and is secured by rural credit notes. No single producer represents more than 1.4% of Amaggi's annual origination. As a large agricultural producer with farmlands in different locations, the company follows the development of the crop over different locations in the state. EBITDA Margins Around 5.3%: Fitch forecasts that EBITDA margins to be around 5.3% in 2026 versus 3.6% in 2024 and 6.1% in 2025. The crop failure in Mato Grosso in 2024 impacted the group's overall performance, but the strong performance of the 2025 crop season was important for margin recovery. Fitch projects cash flow from operations of USD234 million in 2026 and USD278 million in 2027. Peer Analysis Fitch views Amaggi's business risk profile as weak relative to its peers Bunge, Cargill and ADM. Amaggi has a smaller operational scale, lower diversification, and substantial concentration in one region. Although Amaggi's consolidated profitability is adequate, it remains exposed to intense industry competition from large international groups with strong credit profiles. Fitch’s Key Rating-Case Assumptions - Soybeans prices of USD11.30 per bushel in 2026 and USD11.10 per bushel in 2027; - Corn prices of USD4.47 per bushel in 2026 and in 2027; - Cotton prices of USD71 cents per pound in 2026 and USD74 cents per pound in 2027; - Total investments of USD202 million in 2026 and USD216 million in 2027. Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): - Business and financial profile factors (assessment, relative importance): Management (bbb-, Lower), Sector Characteristics (bb+, Moderate), Market and Competitive Positioning (bb-, Higher), Diversification and Asset Quality (bb, Moderate), Company Operational Characteristics (bbb-, Moderate), Profitability (bb-, Moderate), Financial Structure (b-, Moderate), and Financial Flexibility (bb, Moderate). - The quantitative financial subfactors are based on standard CRT financial period parameters: 20% weight for the latest historical year 2025, 40% for the forecast year 2026 and 40% for the forecast year 2027. - The Governance assessment of 'Good' results in no adjustment. - The Operating Environment assessment of 'bb+' results in no adjustment. - The SCP is 'bb-'. To derive the IDR: - Fitch made no adjustments to the SCP, resulting in a Local and Foreign Currency IDR of 'BB-'. RATING SENSITIVITIES Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Loss of business diversification; - RMI-adjusted net leverage (RMI adjusted total net debt to operating EBITDA) above 4.0x on a sustainable basis; - RMI-adjusted gross leverage (RMI adjusted total gross debt to operating EBITDA) above 4.5x on a sustainable basis; - Liquidity ratio (cash and marketable securities + RMI + account receivables/total short liabilities) below 0.8x at year-end; - RMI-adjusted EBITDA/interest paid below 2.3x; - Secured debt/EBITDA above 2.5x; - A multi-notch downgrade of Brazil's Country Ceiling and inability to cover hard currency interest expenses by offshore cash and exports. Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Improved scale and geographical diversification; - RMI-adjusted net leverage (RMI adjusted total net debt to operating EBITDA) below 3.0x on a sustained basis; - RMI-adjusted gross leverage (RMI adjusted total gross debt to operating EBITDA) below 3.5x on a sustainable basis; - Liquidity ratio (cash and marketable securities + RMI + account receivables/total short-term liability) above 1x on a sustainable basis; - Secured debt/EBITDA below 1x. Liquidity and Debt Structure Amaggi has adequate financial flexibility. The company has access to diversified sources of external liquidity for short-term working capital along with cash, short-term marketable securities, and high levels of liquid RMI. As of Dec. 31, 2025, Amaggi reported consolidated cash and marketable securities of USD870 million and USD890 million of short-term debt. The company also has access to several uncommitted bank lines and maintains a minimum cash policy of USD400 million. The company's liquidity ratio, based on cash, receivables, RMI and derivatives divided by total current liabilities, was 1.0x as of Dec. 31, 2025. Issuer Profile Amaggi is Brazil's fourth largest soft commodity trader, trading around 18 million tons of grains annually. It is the third largest agricultural producer with 359,000 hectares of farmland. Amaggi operates across the agribusiness chain including farming, trading, processing and logistics. 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 Andre Maggi Participacoes S.A. ESG Considerations Andre Maggi Participacoes S.A. has an ESG Relevance Score of '4' for Waste & Hazardous Materials Management; Ecological Impacts due to the ecological impact of its land use. A large amount of the grain in its commodity business comes from the Amazon and Cerrado biomes. This has a negative impact on the company's credit profile and is relevant to the ratings in conjunction with other factors. Andre Maggi Participacoes S.A. has an ESG Relevance Score of '4' for Group Structure due to lack of board independence as the company is privately controlled. This has a negative impact on the credit profile and is relevant to the ratings in conjunction with other factors. Andre Maggi Participacoes S.A. has an ESG Relevance Score of '4' for Governance Structure due to the existence of related-party transactions. This has a negative impact on the credit profile and is relevant to the ratings 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 Prior ----------- ------ ----- Amaggi Luxembourg International S.a r.l. senior unsecured LT BB- Downgrade BB Andre Maggi Participacoes S.A. LT IDR BB- Downgrade BB LC LT IDR BB- Downgrade BB Natl LT AA(bra) Downgrade AA+(bra) =============== C O L O M B I A =============== GRUPO NUTRESA: Fitch Rates USD1.25BB Notes 'BB+', Outlook Stable ---------------------------------------------------------------- Fitch Ratings has assigned a 'BB-' to Grupo Nutresa S.A.'s (Grupo Nutresa) proposed up to USD1.25 billion subordinated notes. Fitch has also affirmed the company's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) and Senior Unsecured notes at 'BB+'. The Rating Outlook is Stable. The proposed notes will be rated 'BB-', two notches below Grupo Nutresa's IDR, reflecting higher loss severity and non-performance risk than senior obligations. Fitch expects to assign the notes 50% equity credit under its methodology. This reflects their deep subordination, lack of fixed maturity, optional coupon deferral, and limited events of default, while deferred interest remains cumulative. The notes are non-call for at least 5.5 years. Grupo Nutresa's ratings reflect solid operating performance and margin expansion from operating efficiencies. The proposed hybrid notes issuance of up to USD1.25 billion will increase total debt and leverage metrics versus prior expectations but they will remain within the current rating sensitivities due to the 50% equity credit. Fitch expects net leverage to decline below 3.0x by 2028. Key Rating Drivers Proposed Hybrid Issuance: Grupo Nutresa's proposed issuance of up to USD1.25 billion of hybrid notes would increase leverage and reduce rating headroom. Fitch expects to assign the instrument 50% equity credit, reflecting its subordinated nature, absence of a stated maturity, and ability to defer and capitalize interest payments. Proceeds will be used for general corporate purposes, including funding a new shareholder loan. The notes would be structurally subordinated to all existing and future unsecured and unsubordinated debt, providing loss-absorption capacity for more senior obligations. Under Fitch's criteria, equity credit is not formally capped but may be reduced if hybrid instruments become a significant component of the capital structure. Fitch generally assigns 50% equity credit when hybrid instruments represent less than 25% of total debt, consistent with the issuer's expected ability to refinance or manage these instruments at call dates. At the proposed amount, hybrid debt would be close to this threshold, limiting headroom for weaker operating performance or slower deleveraging. Limited Headroom in Leverage: The proposed issuance would increase Grupo Nutresa's total debt by up to USD625 million, based on Fitch's 50% equity credit treatment, and could slow deleveraging relative to prior expectations. Fitch expects leverage to remain commensurate with the current rating, supported by EBITDAR growth, margin expansion and solid cash generation from ongoing efficiency initiatives. Fitch expects EBITDAR gross leverage of 4.4x and EBITDAR net leverage of about 3.5x in 2026, with net leverage declining to below 3.0x by 2028. As senior debt declines over time, the hybrid could represent a larger proportion of total debt and may no longer receive equity credit under Fitch's criteria, which could weaken the company's leverage metrics. Sound Operating Metrics: Grupo Nutresa's EBITDAR margins remain above peer medians, supporting its strong profitability. The company continues to implement initiatives aimed at improving operating efficiency and expanding margins. At YE 2025, EBITDAR margin estimated by Fitch increased close to 16.7%, excluding non-recurring expenses. Fitch projects margin expansion of about 1 pp in 2026, with broadly stable volumes and EBITDAR reaching approximately COP4.0 trillion. Strong Competitive Position: Grupo Nutresa has a strong competitive position in Colombia's food industry, which generated about 60% of revenues in 2025. The company holds an estimated 50% market share in its domestic market and maintains leading positions in key categories that contribute more than 65% of consolidated EBITDAR. Its business profile is supported by recognized brands, product innovation, and an extensive distribution network. Internationally, Grupo Nutresa holds leading market positions in countries such as Chile, Mexico, Central America, the Dominican Republic and Peru, including substantial market shares in instant cold beverages. ESG- Governance Structure: Fitch continues to view Grupo Nutresa's corporate governance as a credit concern, reflecting decisions taken by its controlling shareholder in recent years that have weakened the company's credit profile. In Fitch's view, the majority shareholder's willingness to increase leverage heightens governance-related risks, including key person risk. At the same time, the company is implementing measures to strengthen its corporate governance framework, which could mitigate some of these concerns over time. Fitch views the Gilinski Group as an experienced and successful business and banking conglomerate. Peer Analysis Grupo Nutresa compares favorably with Alicorp S.A.A. (Alicorp; BBB/Stable) in terms of geographic reach and product portfolio, but this is balanced by higher prospective leverage. Fitch forecasts Nutresa's net leverage at about 3.5x in 2026, compared with about 3.0x for Alicorp over the next two years. By contrast, Grupo Bimbo, S.A.B. de C.V. (Bimbo; BBB+/Stable) have stronger credit profile, supported by larger scale, broader brands and products, and wider geographic diversification. Fitch’s Key Rating-Case Assumptions - Average revenue growth of 10.3% over the projection horizon; - Volume remains stable in 2026 compared to 2025; from 2027 to 2029, volumes increase in average 2.2%; - Average EBITDA margin of 17,4%, after adjustment for IFRS 16 defined by Fitch, and EBITDAR margin of 18.7%; EBITDA and EBITDAR improve due to the execution of efficiency plans and optimization initiatives; - Capital investment intensity, defined as capex to revenue, averages 2.6%; - Dividend payment or share repurchase in line with management's projections; 30% of EBITDAR between 2026 and 2029; - Disbursement of a bridge loan for USD1 billion; - Bridge loan of USD1 billion is refinanced in 2026 with the subordinated hybrid bond offering; the hybrid bond is considering 50% debt - 50% equity - The preferred shares for USD500 million are classified as 100% equity and not as a hybrid instrument, due to the conditions of the Preferred Shares Issuance agreement. According to the agreement, this type of shares possesses similar conditions as common stock except for the voting rights and the existence of a minimum amount of dividends of COP1 annually; - Shareholder loan for USD1.5 billion; - Average exchange rate of COP3,896 per U.S. dollar; - Average YE rate of COP3,934 per U.S. dollar; Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): - Business and financial profile factors (assessment, relative importance): Management (bbb-, Moderate), Sector Characteristics (bbb, Moderate), Market and Competitive Positioning (bbb, Moderate), Diversification and Asset Quality (bbb, Lower), Company Operational Characteristics (bbb+, Moderate), Profitability (bbb+, Moderate), Financial Structure (bb+, Higher), and Financial Flexibility (bb+, Moderate). - Assessments of the quantitative financial subfactors include bespoke calculations. - The Governance assessment of 'Some Deficiencies' results in an adjustment of -1 notch(es). - The Operating Environment assessment of 'bb+' results in no adjustment. - The SCP is 'bb+'. Fitch made no adjustments to the SCP resulting in a Local and Foreign Currency IDR of 'BB+'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Dividend distribution or value extraction mechanisms from the company that pressure leverage and makes the FCF negative on a sustained basis; - Lower-than-anticipated operating performance, including a decline in the company's revenues and margins; - More aggressive growth policy that includes acquisitions financed mainly with debt; - EBITDAR net leverage above 4.0x and EBITDAR gross leverage above 4.5x on a sustained basis; - Higher proportion of the hybrid instrument in total debt above 25%, leading to the loss of the current 50% equity credit; - A downgrade of Grupo Nutresa could result in a downgrade of the company's outstanding hybrid notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - EBITDAR net leverage below 3.0x and EBITDAR gross leverage below 3.5x on a sustained basis; - Increased geographic diversification in investment-grade countries; - FCF margin over 3% on a sustained basis. Liquidity and Debt Structure At YE 2025, Grupo Nutresa had cash and equivalents of COP3,195,196 million and short-term debt maturities of COP744,272 million, resulting in a liquidity ratio of 4.3x. Fitch expects liquidity to remain adequate over the short to medium term, supported by the company's staggered debt maturity profile and broad access to local and international banks and capital markets. However, the proposed increase in debt could reduce financial flexibility and weaken EBITDAR fixed charge coverage. Fitch treats the USD2 billion bank deposit as restricted cash, as these funds are designated for the Nugil S.A.S. transaction. Issuer Profile Grupo Nutresa S.A., founded in 1920, is Colombia's leading processed food company with almost 47,000 employees, operating across various units. It holds a strong market position due to its dominant brands and wide distribution network in Latin America. Summary of Financial Adjustments Fitch uses the balance-sheet-reported lease liability as the capitalized lease value when computing lease equivalent debt. 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 Grupo Nutresa. ESG Considerations Grupo Nutresa S.A. has an ESG Relevance Score of '5' for Group Structure and Group Structure due to weak Board independence, ownership concentration and related parties' transactions, which has a negative impact on the credit profile, and is highly 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 Prior ----------- ------ ----- Grupo Nutresa S.A. LT IDR BB+ Affirmed BB+ LC LT IDR BB+ Affirmed BB+ senior unsecured LT BB+ Affirmed BB+ subordinated LT BB- New Rating GRUPO NUTRESA: Moody's Rates USD1.25BB Notes Ba1, Outlook Now Neg. ------------------------------------------------------------------ Moody's Ratings assigned a Ba1 rating to Grupo Nutresa S.A. (Nutresa) subordinated perpetual capital notes for up to $1.25 billion (Notes). At the same time, Moody's have affirmed the Baa3 LT Issuer Rating and Backed Senior Unsecured notes. The outlook was changed to negative from stable. The assigned rating is based on preliminary documentation. Moody's do not anticipate changes in the main conditions that the notes will carry. Should issuance conditions and/or final documentation deviate from the original ones submitted and reviewed by the rating agency, Moody's will assess the impact that these differences may have on the rating and act accordingly. RATINGS RATIONALE The Ba1 rating assigned to the subordinated perpetual capital notes for up to $1.25 billion is one notch below Grupo Nutresa S.A. Baa3 senior unsecured notes and issuer ratings, given that the Notes will be direct, unconditional, unsecured and subordinated obligations, and subordinated in right of payment to all present and future senior indebtedness. In Moody's views, the new notes have equity-like features that allow them to receive Basket 'M' treatment (please refer to Moody's Hybrid Equity Credit methodology published in February 2024), which translates into 50% equity credit and 50% debt for Moody's calculations of financial leverage, subject to a cap of 30% of the company's total adjusted equity. The features of the new notes include: (1) optional interest deferral; (2) no fixed final maturity date or mandatory redemption date; and (3) after 10.75 years, the first step up margin will be of 0.25% per annum and the second one of 0.75%. The proceeds of the notes will be used to repay a $1 billion 18-month Senior Unsecured Bridge Facility. The proceeds of the notes together with proceeds from a recent issuance of $500 million preferred shares, will be upstreamed to the holding structure via an intercompany loan to a Gilinski Group Owned entity. The remaining balance from the issuance, if any, will be used to refinance existing debt at Grupo Nutresa S.A. level and to fund working capital needs. The proposed notes will result in Grupo Nutresa S.A. maintaining elevated leverage metrics through 2026 close to current levels of 4.8 x instead of Debt/EBITDA ratio below 3.5x as originally expected for 2026-2027, while preserving limited balance sheet support from the assumed 50% equity credit on the hybrid instrument. Following the issuance of the notes, Moody's-adjusted debt to EBITDA is expected to increase and remain close to the downward rating trigger of 3.5x beyond 2026, before gradually improving thereafter, assuming successful execution of management's operational efficiency initiatives and margin enhancement plans. While the Issuer benefits from a strong market position in Colombia, a diversified portfolio of well-established brands, and resilient demand across core categories, these strengths are partly offset by high leverage, execution risks associated with management's turnaround initiatives, and exposure to commodity price volatility. There will be a deterioration in Debt/EBITDA ratio from 3.4x originally expected for 2026 when Moody's assigned the rating back in April 2025, to 3.7x in 2026 under the management case and 4.8x under the Moody's Base Case with an improvement afterwards. However, projections consider a material interest income coming a certificate of deposit at a related party bank (GNB Sudameris Panama) after the issuance of $2 billion last year to pay interest expense (around $175 million annually) and interest income from the shareholder loan. Liquidity remains adequate, supported by the assumed refinancing of the bridge facility and continued access to capital markets. However, the transaction represents a more aggressive financial policy, primarily due to proceeds being up-streamed to related parties rather than retained within the operating structure, which constrains financial flexibility. While the company is not currently constrained by the sovereign, its credit profile could be exposed to increased sovereign-related risk given that approximately 60% of its operations and cash flow generation are based in Colombia. Corporate issuers with significant domestic exposure are typically vulnerable to the same broad macroeconomic, financial market, and institutional stresses that affect the sovereign. That risk is partially mitigated by Nutresa's geographic diversification, with the remaining roughly 40% of operations and cash flows generated across the United States, Mexico, and other Latin American countries, which provides some insulation from country-specific stress. Governance considerations are material to the assessment, given the Issuer's concentrated ownership structure and related-party transactions, which increase financial policy risk. RATING OUTLOOK The negative outlook reflects the risk that leverage could remain above Moody's tolerance for the current rating if operational improvements or deleveraging measures do not materialize as expected, given more aggressive financial policies. The outlook could be stabilized if the company demonstrates sustained improvement in operating performance and a clear path to reducing leverage below 3.5x on a Moody's-adjusted basis. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS As the new Notes' rating is positioned relative to other ratings of Grupo Nutresa S.A., a change in either: (1) Moody's relative notching practice; or (2) the Baa3 senior unsecured rating Grupo Nutresa S.A., could affect the rating of the new Notes. Given the negative outlook, a rating upgrade is unlikely in the near future for Grupo Nutresa S.A.. The outlook could return to stable if the implementation of ongoing initiatives set by management to generate efficiencies and save costs, along with pricing actions, helps to improve leverage ratios after recent issuance. On the other hand, Grupo Nutresa S.A. Baa3 ratings could be downgraded if there is a deterioration in its operational performance and liquidity; financial policy becoming more aggressive, leading to leverage and interest coverage moving significantly away from current expectations. Quantitatively, Moody's-adjusted debt/EBITDA remaining above 3.5x beyond 2027. The principal methodology used in these ratings was Consumer Packaged Goods published in February 2026. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Hits Record USD1.4BB in March Exports --------------------------------------------------------- Dominican Today reports that the Dominican Republic reached a historic export milestone in March 2026, totaling USD 1,448.6 million, a 20.7% increase compared to the same month in 2025. This marks the highest export value on record for the period, driven largely by a sharp rise in raw gold exports, which surged 78.2% and added USD 110.8 million, according to Dominican Today. Other sectors supporting growth included circuit breakers, tobacco, and medical instruments, all posting notable increases, the report notes. The United States remained the country's top trading partner, receiving just over half of total exports (USD 731.3 million), followed by Canada, which saw a significant 150% jump fueled by gold shipments, and Haiti, with strong growth of 36.4%, the report relays. Puerto Rico and China rounded out the top five destinations, the report discloses. By product, raw gold led exports with a 17.1% share, followed by medical instruments and cigars, the report says. Free Zones continued to dominate export activity, contributing 58% of the total, while the National Regime showed strong expansion, the report relays. Export performance aligns with broader economic momentum, the report notes. In the first quarter of 2026, exports reached USD 3,736.9 million, up 18.3% year-on-year, the report says. This growth is supported by solid foreign direct investment, which totaled USD 5,032.8 million in 2025, led by tourism, energy, and real estate, with increasing diversification in mining and industry, the report notes. Backed by these trends, the Dominican Republic is projected by the World Bank to lead economic growth in Latin America and the Caribbean in 2026, the report adds. About Dominican Republic The Dominican Republic is a Caribbean nation that shares the island of Hispaniola with Haiti to the west. Capital city Santo Domingo has Spanish landmarks like the Gothic Catedral Primada de America dating back 5 centuries in its Zona Colonial district. Luis Rodolfo Abinader Corona is the current president of the nation. S&P Global Ratings affirmed its 'BB' long-term foreign and local currency sovereign credit ratings on the Dominican Republic on December 3, 2024. The outlook remains stable. S&P also affirmed its 'B' short-term sovereign credit ratings and kept the transfer and convertibility (T&C) assessment unchanged at 'BBB-'. Fitch, on November 26, 2024, affirmed the Dominican Republic's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-'. The Rating Outlook is Positive. Moody's credit rating for Dominican Republic was last set at Ba3 in August 2023 with the outlook changed to positive. ============= J A M A I C A ============= JAMAICA: JMEA Urges Gov't to Quickly Address Looming Energy Crisis ------------------------------------------------------------------ RJR News reports that Managing Director of FosRich and Vice President of the Jamaica Manufacturers and Exporters Association (JMEA), Cecil Foster, is urging the government to move swiftly to address a looming energy crisis stemming from the conflict involving the United States, Israel and Iran. Speaking in an interview on Radio Jamaica's Real Business, Mr. Foster warned that Jamaica's already high energy costs are among the highest globally, making the local manufacturing sector uncompetitive and contributing to significant trade deficits, according to RJR News. He revealed that members of the JMEA's Energy Committee have been engaging investors and technical experts in the Dominican Republic to examine strategies used there to lower electricity costs and boost industrial competitiveness, the report notes. Mr. Foster says microgrids and power wheeling are central to the sector's strategy going forward, the report relays. He noted that while the Jamaica Public Service Company has not objected to power wheeling, producers would be required to pay a fee to transmit electricity from where it is generated to where it is needed, the report says. He added that these issues should form part of ongoing discussions surrounding the JPS's new licensing regime, 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 c ===================== P U E R T O R I C O ===================== IES ELEVATOR: Hires Batista Law Group PSC as Counsel ---------------------------------------------------- IES Elevator Group Corp. seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ The Batista Law Group, PSC to handle its Chapter 11 case. The hourly rates of the firm's counsel and staff are: Jesus Batista Sanchez, Attorney $350 Associates $275 Paralegals $110 In addition, the firm will seek reimbursement for expenses incurred. The firm received a retainer in the amount of $9,000. Mr. Batista Sanchez, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Jesus E. Batista Sanchez, Esq. The Batista Law Group, PSC Capital Center I 239 Ave Arterial de Hostos Suite 206 San Juan PR 00918 Telephone: (787) 620-2856 Facsimile: (787) 777-1589 Email: jeb@batistasanchez.com About IES Elevator Group Corp. IES Elevator Group Corp. filed a Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 26-01519) on April 1, 2026. The Debtor hires The Batista Law Group, PSC as counsel. PUERTO RICO: 1st Cir. Weighs Officials' Immunity in Restructuring ----------------------------------------------------------------- Carolyn Muyskens of Law360 reports that on Wednesday, April 8, 2026, the First Circuit wrestled with whether Puerto Rico's debt restructuring shields officials from personal civil rights lawsuits. The judges probed arguments from both sides but offered no indication of a likely decision. Officials contended that the restructuring plan provides immunity in order to support the commonwealth's financial reorganization. In contrast, plaintiffs argued that individual civil rights claims should proceed regardless of the bankruptcy plan. The discussion underscored the delicate balance courts must strike between facilitating sovereign debt relief and preserving avenues for accountability. Observers said a ruling could have broader implications for how restructuring affects individual liability, according to Law360. About Puerto Rico Puerto Rico is a self-governing commonwealth in association with the United States. The chief of state is the President of the United States of America. The head of government is an elected Governor. There are two legislative chambers: the House of Representatives, 51 seats, and the Senate, 27 seats. The governor-elect is Ricardo Antonio Rossello Nevares, the son of former governor Pedro Rossello. In 2016, the U.S. Congress passed PROMESA, which, among other things, created the Financial Oversight and Management Board and imposed an automatic stay on creditor lawsuits against the government, which expired May 1, 2017. The members of the oversight board are: (i) Andrew G. Biggs, (ii) Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J. Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii) David A. Skeel Jr. On May 3, 2017, the Commonwealth of Puerto Rico filed a petition for relief under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA). The case is pending in the United States District Court for the District of Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico PROMESA petition is available at http://bankrupt.com/misc/1701578-00001.pdf On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation (COFINA) commenced a case under Title III of PROMESA (D.P.R. Case No. 17-01599). Joint administration has been sought for the Title III cases. On May 21, 2017, two more agencies; Employees Retirement System of the Government of the Commonwealth of Puerto Rico and Puerto Rico Highways and Transportation Authority (Case Nos. 17-01685 and 17-01686) commenced Title III cases. U.S. Chief Justice John Roberts named U.S. District Judge Laura Taylor Swain to preside over the Title III cases. The Oversight Board has hired as advisors, Proskauer Rose LLP and Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq., at O'Neill & Borges LLC are onboard as attorneys. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains the case Web site https://cases.primeclerk.com/puertorico Jones Day is serving as counsel to certain ERS bondholders. Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General Obligation Bondholders. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2026. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *