260429.mbx

260429.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, April 29, 2026, Vol. 27, No. 85 Headlines B E R M U D A CABLES & WIRELESS: Fitch Affirms 'BB-' IDR, Alters Outlook to Pos. B R A Z I L BANCO C6: Fitch Puts 'BB-(EXP)' Rating to New Sr. Unsecured Notes BANCO DE BRASILIA: Fitch Cuts LT IDR to 'CC' Then Withdraws Rating OI BRASIL: Noteholders' Bid to Block Brazil Sale Denied in Ch. 15 REDE D'OR SAO: Fitch Affirms 'BB+' Long-Term FC IDR, Outlook Stable D O M I N I C A N R E P U B L I C BANCO DE RESERVAS: Fitch Alters Outlook on 'BB-' LT IDR to Stable E L S A L V A D O R EL SALVADOR: Fitch Affirms 'B-' Long-Term IDR, Outlook Stable M E X I C O METROFINANCIERA: Fitch Downgrades MTROCB 07U Rating to 'Dsf' P U E R T O R I C O ESJ TOWERS: Court Narrows Claims in "Nalley" Lawsuit PROSTHODONTICS AND DENTAL: Case Summary & 20 Unsecured Creditors V E N E Z U E L A VENEZUELA: Melting 'Permafrost' Draws Debt Investors' Optimism - - - - - ============= B E R M U D A ============= CABLES & WIRELESS: Fitch Affirms 'BB-' IDR, Alters Outlook to Pos. ------------------------------------------------------------------ Fitch Ratings has affirmed Cable & Wireless Communications Limited's (C&W) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'BB-'. The Rating Outlook was revised to Positive from Stable. Fitch has also affirmed C&W Senior Finance Limited's unsecured notes, Coral-US Co-Borrower LLC's secured credit facilities, and Sable International Finance Limited's secured notes and revolving credit facility at 'BB-'/'RR4'. The Positive Outlook reflects Fitch's expectation that C&W will reduce gross and net leverage over the next 12 to 18 months to commensurate levels with a higher rating, supported by moderate margin expansion and a sound liquidity position. The ratings also reflect C&W's leading market positions across a diversified set of geographies and service offerings, underpinned by solid network competitiveness and balanced business-to-consumer and business-to-business operations. These strengths are constrained by moderate interest coverage. Key Rating Drivers Ongoing Deleveraging: Fitch forecasts C&W's gross leverage will decline to about 4.2x in 2027 from 4.6x, driven by an improved sales mix and moderate margin expansion. By contrast, CFO less capex-to-debt of 7.5% in 2026, improving to 8.5% in 2027, is in the BB rating level. C&W's parent, Liberty Latin America (LLA), targets net leverage of about 3.5x at the group level, which supports deleveraging across its main operating silos, including C&W. The pace of recovery from the impact of Hurricane Melissa on C&W's Jamaican operations will be an important factor in Fitch's reassessment of the company's credit profile. Moderately Improving Operating Prospects: Fitch expects C&W to report broadly flat EBITDA of USD1.1 billion in 2026, with margins stable at 43%, reflecting Hurricane Melissa's impact on the company's Jamaican operation. In 2027, Fitch expects EBITDA to increase to USD1.2 billion and EBITDA margins to expand to 46% as Jamaican operations normalize, supported by modest revenue growth, digitization initiatives, and cost-cutting efforts in Panama and the Caribbean. The subsea cable business should grow at a mid-single-digit pace as data demand increases. Fitch expects mobile ARPU to benefit from the migration of prepaid subscribers to postpaid plans, while residential fixed line revenue should grow modestly as broadband penetration opportunities offset declines in wireline and video. Strong Pre-Dividend FCF: Fitch expects C&W to continue generating strong pre-dividend FCF, while assuming excess cash will be upstreamed to LLA. Fitch forecasts pre-dividend FCF of USD360 million in 2026, broadly in line with 2025, increasing to USD420 million in 2027, after average annual capex of about 8%-9% of revenues. Diversified Operator: C&W's business diversification supports revenue resilience relative to other regional speculative-grade issuers, which often rely on one or two services and have less ability to offer stickier bundled packages. In 2025, mobile services accounted for 31% of revenue, fixed services, including residential broadband, for 24%, and B2B for 45%. Geographically, the Caribbean and Panama generated about 56% and 30% of revenue, respectively, through B2C and B2B services, while the subsea cable business and B2B operations contributed the remaining 14%. Strong Market Position: C&W's strong market positions in predominantly duopoly markets limit competitive entry risk and support relatively stable ARPUs. The company holds the No. 1 or No. 2 position in its main markets, typically competing with Digicel in the Caribbean and Millicom (Tigo) in Panama. The risk of new entrants is low given the small size of most of these markets. In Panama, C&W's largest mobile market, the industry consolidated to two players following Digicel's exit in 2022. While the entry of a third operator is under discussion, Fitch believes the economic viability of such an entrant is uncertain, which should keep the competitive environment broadly stable. Neutral LLA Linkage: Fitch rates C&W on a standalone basis, while monitoring Liberty Latin America's (LLA) credit profile. The group's credit silos are independent and ring-fenced capital structures, although LLA has a track record of upstreaming and reallocating cash across the group to fund investments and acquisitions. Instrument Ratings and Recovery Prospects: Most of C&W's debt is secured by pledges over shares and assets at various subsidiaries. Under Fitch's Corporates Recovery Ratings and Instrument Ratings Criteria, this Category 2 debt structure could support instrument ratings above the IDR. However, the instrument ratings are capped at 'RR4' under Fitch's Country-Specific Treatment of Recovery Ratings Criteria. As a result, the secured instruments and C&W Senior Finance Limited's unsecured notes are rated 'BB-'/'RR4', in line with the IDR. Peer Analysis C&W has a stronger credit profile when compared with its sister entity, Liberty Communications of Puerto Rico LLC (LCPR; CCC). C&W has larger scale and better geographical diversification, despite the presence in weaker economic environments. Moreover, LCPR faces higher refinance risks and may not count on the support from the shareholder, LLA. C&W ratings are weaker than Millicom International Cellular S.A.'s (BB+/Stable) subsidiaries CT Trust (Comcel; BB+/Stable) and Telefonica Celular del Paraguay S.A.E. (Telecel; BB+/Stable). Comcel and Telecel have more dominant market positions in their respective markets, carry substantially lower leverage, and benefit from the strong linkage with their parent. Millicom's subsidiary in Panama and key competitor to C&W, Telecomunicaciones Digitales, S.A. (BB+/Stable), has somewhat weaker scale and diversification relative to C&W, but also benefits from a strong linkages with Millicom. Fitch’s Key Rating-Case Assumptions - Mobile subscribers of 3.9 million in 2026 and 2027; - Post-paid representing 23.6% of the total base in 2026 and 24.9% in 2027; - Mobile service ARPUs of about USD14 in 2026 and USD15 in 2027; - Wireline clients of 998,000 in 2026 and 978,000 in 2027; - Fixed-line ARPUs of about USD49 in 2026 and USD50 in 2027. - B2B revenues growing in the low-single digits, driven by growth in in the subsea cable business; - Fitch-defined EBITDA margins of 43% in 2026 and 46% in 2027; - Capital intensity of around 9% over the medium term; - Excess cash flow returned to shareholders or kept for acquisitions or investments. 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, Lower, Market and Competitive Positioning (bbb, Moderate), Diversification and Asset Quality (bbb, Moderate), Company Operational Characteristics (bbb, Moderate), Profitability (bbb+, Moderate), Financial Structure (bb-, Higher), and Financial Flexibility (b+, 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 calibration adjustment applies and results in an adjustment of -1 notch. - The SCP is 'bb-'. To derive the IDR: Fitch made no adjustments to the SCP, resulting in a FC and LC IDR of 'BB-'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Total debt-to-EBITDA and net debt/EBITDA sustained above 5.25x and 5.0x, respectively. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Total debt/EBITDA and net debt/EBITDA sustained below 3.8x and 3.6x, respectively; - (CFO-capex)/debt ratio trending towards 7.5% or above. Liquidity and Debt Structure Fitch expects C&W to maintain a sound liquidity position over the next three years, aided by projected positive pre-dividend FCF and good access to the debt market. Liquidity is reinforced by the recently renewed and undrawn USD616 million revolver credit facility and the flexibility to reduce dividends when necessary. In December 2025, cash position of USD508 million covered 1.5x the short-term debt of USD328 million, which was composed mainly by vendor and tower transactions that have been historically refinanced. The next significant maturity, of USD425 million, is scheduled for 2028. As of Dec. 31, 2025, C&W had USD4.9 billion in debt, of which USD2.6 billion (54% of total) in credit facilities, USD1.8 billion (36%) in notes and USD505 million (10%) in vendor and tower transactions. Issuer Profile C&W is controlled by Bermuda-based Liberty Latin America. It offers telecommunication services to individuals and corporations in the Caribbean and Panama. It also operates a subsea and terrestrial fiber-optic cable network that connects over 30 markets in the region. 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 do not indicate an elevated risk for Cable & Wireless Communications Limited and its subsidiaries. ESG Considerations Cable & Wireless Communications Limited has an ESG Relevance Score of '4' for Exposure to Environmental Impacts due to its operations in a hurricane-prone region, which 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 Recovery Prior ----------- ------ -------- ----- Cable & Wireless Communications Limited LT IDR BB- Affirmed BB- LC LT IDR BB- Affirmed BB- Coral-US Co-Borrower LLC senior secured LT BB- Affirmed RR4 BB- Sable International Finance Limited senior secured LT BB- Affirmed RR4 BB- C&W Senior Finance Limited senior unsecured LT BB- Affirmed RR4 BB- =========== B R A Z I L =========== BANCO C6: Fitch Puts 'BB-(EXP)' Rating to New Sr. Unsecured Notes ----------------------------------------------------------------- Fitch Ratings has assigned an expected Long-Term rating of 'BB-(EXP)' to Banco C6 S.A.'s (C6) proposed senior unsecured notes. The amount, rate of interest and final maturity date will be determined at the time of the issuance. The net proceeds will be used for general corporate purposes. The final rating is contingent upon the receipt of final documents conforming to the information already received. Key Rating Drivers The notes' expected rating matches C6's Long-Term Foreign Currency Issuer Default Rating (IDR; BB-/Stable), as they are senior obligations. A default on these notes would be equivalent to a default by the bank, and expected recoveries would be average in a default scenario. C6's ratings are driven by its Viability Rating of 'bb-' and are underpinned by strong franchise expansion, solid profitability advances, retail funding above domestic peers and comfortable liquidity. For further information on C6's rating rationale and sensitivities please refer to the latest Rating Action Commentary, "Fitch Publishes Banco C6 First-Time 'BB-' IDR; Outlook Stable," dated Dec. 16, 2025. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The notes' rating could be downgraded if C6's IDR is downgraded. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade The notes' rating could be upgraded if C6's IDR is upgraded. ESG Considerations Fitch does not provide ESG relevance scores for Banco C6 S.A. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. Entity/Debt Rating ----------- ------ Banco C6 S.A. senior unsecured LT BB-(EXP) Expected Rating BANCO DE BRASILIA: Fitch Cuts LT IDR to 'CC' Then Withdraws Rating ------------------------------------------------------------------ Fitch Ratings has downgraded BRB - Banco de Brasilia S.A.'s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to 'CC' from 'CCC', Viability Rating (VR) to 'cc' from 'ccc', and National Long-Term Rating to 'CC(bra)' from 'CCC(bra)'. Fitch also has affirmed BRB's Short-Term Foreign- and Local-Currency IDRs at 'C', Government Support Rating (GSR) at "No Support" (ns), and National Short-Term Rating at 'C(bra)'. The ratings were formerly on Rating Watch Negative. All ratings have been simultaneously withdrawn. The downgrade reflects Fitch's view that failure or default of some kind appears probable, driven by significant uncertainties surrounding BRB's financial profile, and by material constraints on Fitch's assessment stemming from the absence of current financial statements and limited strategic visibility. The withdrawal of all of BRB's ratings reflects Fitch's assessment that Fitch will be unable to maintain adequate surveillance of these ratings without sufficient, reliable and verifiable financial information. Key Rating Drivers VR, IDRs, National Ratings VR Driven BRB's IDRs and National Long-Term Rating are driven by its VR and are downgraded to 'cc' from 'ccc'. The downgrade reflects Fitch's view that institutional failure is probable. Deep uncertainties surrounding BRB's financial profile, compounded by the absence of 3Q25 and 4Q25 financial statements, and unresolved matters under the current independent "Compliance Zero" investigation prevent any meaningful assessment of the bank's capital position and forward strategy. ESG - Exposure to Governance Impacts: Fitch revised BRB's ESG Relevance Score for Financial Transparency to '5' from '4', reflecting increased uncertainties in the bank's disclosure profile following the postponement of financial statements. The ESG Relevance Score for Governance Structure remains '5'. Both factors are highly relevant to the rating action and withdrawal. Franchise and Funding Profile Under Pressure: The persistence of uncertainties, the ongoing investigative environment and the absence of financial information have a direct negative impact on BRB's franchise and funding profile. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The ratings have been withdrawn; therefore, Fitch will no longer provide rating sensitivities or future rating actions for BRB. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade The ratings have been withdrawn; therefore, Fitch will no longer provide rating sensitivities or future rating actions for BRB. GSR The GSR of 'ns' indicates that there is no reasonable expectation of the government providing support. GSR The ratings have been withdrawn; therefore, Fitch will no longer provide rating sensitivities or future rating actions for BRB. ESG Considerations Fitch has revised BRB's ESG Relevance Score for Financial Transparency to '5' from '4'. The continued delay in the publication of the bank's financial statements for 3Q25 and 4Q25, as disclosed by BRB on March 31, 2026, indicates a further deterioration in transparency and materially constrains Fitch's ability to independently monitor the bank's credit profile. BRB's ESG Relevance Score for Governance Structure remains '5', reflecting governance weaknesses that are also highly relevant to the ratings. Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This 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 ----------- ------ ----- BRB - Banco de Brasilia S.A. LT IDR CC Downgrade CCC LT IDR WD Withdrawn ST IDR C Affirmed C ST IDR WD Withdrawn LC LT IDR CC Downgrade CCC LC LT IDR WD Withdrawn LC ST IDR C Affirmed C LC ST IDR WD Withdrawn Natl LT CC(bra) Downgrade CCC(bra) Natl LT WD(bra) Withdrawn Natl ST C(bra) Affirmed C(bra) Natl ST WD(bra) Withdrawn Viability cc Downgrade ccc Viability WD Withdrawn Government Support ns Affirmed ns Government Support WD Withdrawn OI BRASIL: Noteholders' Bid to Block Brazil Sale Denied in Ch. 15 ----------------------------------------------------------------- Ben Zigerman of Law360 Bankruptcy Authority reports that a federal bankruptcy judge in New York denied noteholders' attempt to stop Oi's sale of its equity interest in a Latin American fiber internet provider, concluding that such intervention falls outside the purpose of Chapter 15. The court found that the dispute should be resolved within the foreign proceeding. The judge stressed that Chapter 15 is intended to support, not override, foreign insolvency cases. He determined that interfering with the Brazilian court's approval of the sale would conflict with principles of comity and the statutory framework governing cross-border restructurings, Law360 reports. Following the ruling, Oi may proceed with the sale under Brazilian supervision. The decision leaves creditors to pursue any remaining objections in the foreign forum rather than U.S. bankruptcy court, the report states. About Oi SA Headquartered in Rio de Janeiro, and operating almost exclusively within Brazil, the Oi Group provides services like fixed-line data transmission and network usage for phones, internet, and cable, Wi-Fi hot-spots in public areas, and mobile phone and data services, and employs approximately 142,000 direct and indirect employees. On June 20, 2016, pursuant to Brazilian Law No. 11.101/05 (the 'Brazilian Bankruptcy Law'), Oi S.A. and certain of its subsidiaries filed for recuperao judicial (judicial reorganization) in Brazil. On June 21, 2016, OI SA and its affiliates Telemar Norte Leste S.A. and Oi Brasil Holdings Cooperatief U.A. commenced Chapter 15 proceedings (Bankr. S.D.N.Y. Lead Case No. 16-11791). Ojas N. Shah, as foreign representative, signed the petitions. Coop and PTIF are also subject to proceedings in the Netherlands. The Chapter 15 cases are assigned to Judge Sean H. Lane. In the Chapter 15 cases, the Debtors were represented by John K. Cunningham, Esq., and Mark P. Franke, Esq., at White & Case LLP, in New York; and Jason N. Zakia, Esq., Richard S. Kebrdle, Esq., and Laura L. Femino, Esq., at White & Case LLP, in Miami, Florida. On July 22, 2016, the New York Court recognized the Brazilian Proceedings as foreign main proceedings with respect to the Chapter 15 Debtors, and granted certain additional related relief. The company exited bankruptcy protection in December 2022. In November 2025, Oi has again been declared bankrupt by a Rio de Janeiro court. Judge Simone Gastesi Chevrand of the 7th Business Court of Rio de Janeiro ordered the suspension of all lawsuits and enforcement actions against the telecom carrier. Shares tumbled at that time. In March 2026, Fitch Ratings downgraded Oi S.A.'s Foreign and Local Currency Long-Term Issuer Default Rating (IDR) to 'RD' (Restricted Default) from 'C', and its National Long-Term rating to 'RD(bra)' from 'C(bra)' in March 2026. The downgrade reflects the uncured payment default on interest coupon due Jan. 30, 2026, on the senior secured notes due July 2026. A court order effective January 20 extending the suspension of post-petition claims for a period of additional 90 days, prohibits Oi from making non-essential payments, including debt service, which was scheduled to remain in place until April 20, 2026. While Fitch recognizes the company is legally restricted from making the payment, the non-payment constitutes a breach of the indenture from creditors' perspective. S&P Global Ratings also discontinued its ratings on Oi S.A. in March 2026. This follows its downgrade of the company to 'D' after it missed the interest payment on its 2026 senior secured notes that was due on Jan. 30, 2026, and amid the company's prolonged judicial reorganization process. REDE D'OR SAO: Fitch Affirms 'BB+' Long-Term FC IDR, Outlook Stable ------------------------------------------------------------------- Fitch Ratings has affirmed Rede D'Or Sao Luiz S.A.'s (Rede D'Or) Long-Term Foreign Currency Issuer Default Rating (LT FC IDR) at 'BB+' and National Scale and senior unsecured local debentures' ratings at 'AAA(bra)'. Fitch also downgraded Rede D'Or's Long-Term Local Currency Issuer Default Rating (LT LC IDR) to 'BB+' from 'BBB-'. Fitch has also affirmed the senior unsecured notes rating issued by Rede D'Or Finance S.a.r.l. (Rede D'Or Finance, incorporated in Luxembourg) at 'BB+', the National Long-Term Rating of Hospital Esperanca S.A. at 'AAA(bra)' and the senior unsecured local debentures' ratings for Sul America Companhia de Seguro Saude's and Hospital Esperanca at 'AAA(bra)'. These companies are wholly owned subsidiaries of Rede D'Or, and their debt is guaranteed by the parent. The Outlook on the IDRs and the corporate National Long-Term Ratings is Stable. Fitch has assigned a 'BB+' rating to the proposed benchmark-sized senior unsecured notes, due 2036, to be issued by Rede D'Or Finance, unconditionally and irrevocably guaranteed by Rede D'Or, ranking pari passu with existing unsecured debt. Net proceeds will be used for general corporate purposes including capex, liquidity and debt repayment. The affirmation of Rede D'Or's LT FC IDR and national scale rating reflects its solid regional competitive position in Brazil's fragmented hospital sector and adequate operational profile. The downgrade of the LC IDR reflects Fitch's view that the company's leverage metrics will remain elevated for longer than previously anticipated while FCF is expected to remain negative over the rating horizon. Key Rating Drivers Strong Competitive Position: Rede D'Or owns Brazil's largest private hospital network, with 79 units — 76 wholly owned and three under management — and 13,555 beds at the end of 2025, or about 5% of the country's private beds. Its health insurance business accounted for 55% of consolidated net revenue in 2025 and served 5.9 million members. This complements its hospital operations and reduces business volatility. The company's scale, high-quality assets and strong reputation within the medical community support cost dilution and greater bargaining power with payers and suppliers. The company also benefits from strong fundamentals in the healthcare sector, supported by an aging population and the limited supply of hospital beds in the country. Debt-Funded Liquidity: In Fitch's view, Rede D'Or's current financial profile is more consistent with a 'BB' category rating. Although the company has a solid operating profile with margins aligned with the industry average, its credit profile is pressured by a liquidity strategy funded primarily with debt. The company also shows strong consumption of operational cash flows from interest and working capital needs, which is partly mitigated by the financial income from investments. Fitch forecasts total debt/adjusted EBITDA — pre-International Financial Reporting Standards (IFRS-16 — at 4.1x in 2026 and 3.6x in 2027, down from 4.3x in 2025. Net leverage should remain below 2.5x over the period, compared to 2.1x in 2025. Expected net cash proceeds of BRL746 million in 2026 from the divestitures of Hospital Gloria D'Or and Maternidade Sao Luiz Star, in addition to the remaining balance from the D'Or Consultoria sale, should help maintain net leverage at healthy levels for current rating. Negative FCFs: Rede D'Or's FCF will remain pressured by interest payments, working capital needs and dividends over the rating horizon. The rating case assumes cash flow from operations of BRL3.9 billion in 2026 and BRL4.8 billion in 2027, average annual capex of BRL3.3 billion over the two-year period, dividends of BRL3.4 billion in 2026, including BRL2.1 billion of extraordinary dividends announced at the end of 2025, and a 50% payout of the previous year's net income from 2027 onward. These assumptions result in negative FCF of BRL2.7 billion and BRL1.0 billion in 2026 and 2027, respectively. Solid Operational Profile: Fitch forecasts adjusted EBITDA (pre-IFRS 16) of BRL11.4 billion in 2026 and BRL12.8 billion in 2027, with margins between 18.5% and 19.0%, versus BRL10.6 billion and 18.7% in 2025, respectively. Consolidated profitability is in line with the industry average, including global peers. The hospital segment should maintain margins of 24% to 25%, above peers, supported by price pass-through above inflation and cost dilution from strong scale. However, a greater mix of complex procedures could pressure margins. The insurance segment should post EBITDA margins closer to 11% in the period, versus 11.4% in 2025, with medical loss ratios around 78%. Peer Analysis Compared to Peruvian healthcare company Auna S.A. (IDR: B+/Stable) and major Brazilian hospital groups — including Sociedade Beneficente Israelita Brasileira Hospital Albert Einstein (National Long-Term Rating AAA(bra)/Stable), Hospital Mater Dei S.A. (AA+(bra)/Stable) and Ímpar Serviços Hospitalares S.A. (AA-(bra)/Stable) — Rede D'Or offers a more robust operational scale, a more diversified business profile, and greater financial flexibility, supported by high cash balances and recurring access to capital and debt markets. Rede D'Or's net financial leverage is closer to Mater Dei, lower than Auna and Ímpar but higher than Einstein, which maintains net cash position. Brazil's hospital sector dynamics and regulatory model differ from those in other countries. However, Rede D'Or's operating margins are adequate compared to other hospitals in Fitch's global portfolio. Fitch’s Key Rating-Case Assumptions - 11,000 operational beds in 2026 and 11,900 in 2027; - Average bed occupancy rate of 79.6% in 2026 and 2027; - Volume of daily patients of 3.2 million in 2026 and 3.5 million in 2027; - Average hospital ticket (excluding oncology) of BRL11,100 in 2026 and BRL11,600 in 2027; - Hospital segment EBITDA margins between 24% and 25% in 2025 and 2026; - Average number of insurance users of 5.8 million in 2026 and 5.9 million in 2027; - Average monthly insurance ticket between BRL485 and BRL500 in 2026 and 2027; - Average medical loss ratio around 78% in 2026 and 2027; - Average annual investments of BRL3.3 billion in 2026 and 2027; - Dividend payments of BRL3.4 billion in 2026 and equivalent to 50% of the previous year's net income in 2027; - Net proceeds from announced divestitures (Glória D'Or, Maternidade Sao Luiz Star and D'Or Consultoria) of BRL746 million in 2026; - The rating case assumes continued refinancing of debt maturities over the next few years so that available cash does not fall below BRL17 billion over the rating horizon. 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 (bb+, Moderate), Sector Characteristics (bb+, Moderate), Market and Competitive Positioning (bbb-, Higher), Diversification and Asset Quality (bbb-, Moderate), Company Operational Characteristics (bb+, Lower), Profitability (bb-, Moderate), Financial Structure (bb, 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. - Assessments of the quantitative financial subfactors also include bespoke calculations. - The Governance assessment of 'Good' results in no adjustment. - The Operating Environment assessment of 'bb' results in no adjustment. - The SCP is 'bb+'. Fitch has made no adjustments to the SCP, resulting in Local and Foreign Currency IDRs of 'BB+'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Deterioration of brand reputation and/or market position; - Hospital segment EBITDA margin falling below 22% and/or consolidated EBITDA margin below 14% on a recurring basis; - Gross leverage above 4.0x or net leverage above 3.0x on a recurring basis; - EBITDA gross interest expense coverage below 2.5x on a sustained basis; - FCF after dividends remaining consistently negative; - Deterioration of the strong liquidity position leading to refinancing risks; - Significant legal contingencies that interfere with company operations or materially impact its credit profile. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An upgrade of the Long-Term Local Currency IDR would be driven by the achievement of a more conservative capital structure, with EBITDA leverage below 3.5x and EBITDA net leverage below 2.5x, both on a recurring basis; - Maintaining positive FCF after dividends on a sustained basis; - Positive rating action on the Long-Term Foreign Currency IDR is limited by Brazil's 'BB+' Country Ceiling; - The company's National Long-Term Rating cannot be upgraded as it is already at the highest level on Fitch's national scale. Liquidity and Debt Structure Rede D'Or maintains a strong liquidity profile, with proven access to both local and international capital markets. The company has historically maintained high cash balances even while executing its aggressive growth strategy. As of Dec. 31, 2025, available cash — net of regulatory technical reserves of the insurance business — totaled BRL23.7 billion versus short-term debt of BRL3.2 billion. Total debt of BRL46 billion mainly comprised local debentures (59%), real estate receivables certificates (17%), and senior unsecured notes maturing from 2028 to 2035 (20%). About 20% of debt was in foreign currencies (USD and EUR), hedged against currency and interest rate mismatches. The company's cash position at the end of December was sufficient to cover debt amortizations through 2030. Rede D'Or does not have committed credit lines. Issuer Profile Rede D'Or is Brazil's largest healthcare conglomerate, with 79 hospitals and 13,555 thousand beds and serving 5.9 million insured members. The Moll family controls 47.6%, while the remaining shares are held by various market participants. Summary of Financial Adjustments - Fitch uses Rede D'Or's consolidated financial statements based on IFRS-4 for insurance contracts; - Fitch's adjusted EBITDA metric excludes right-of-use depreciation and financial lease expenses as a proxy for rental expenses in the light of IFRS-16. It also exempts non-recurring and/or non-cash items from the calculation; - Gross debt includes acquisition-related obligations and the net derivatives. 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 Rede D'Or. 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 ----------- ------ ----- Rede D'Or Finance S.a. r.l. senior unsecured LT BB+ New Rating senior unsecured LT BB+ Affirmed BB+ Hospital Esperanca S.A. Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) Rede D'Or Sao Luiz S.A. LT IDR BB+ Affirmed BB+ LC LT IDR BB+ Downgrade BBB- Natl LT AAA(bra) Affirmed AAA(bra) senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) Sul America Companhia de Seguro Saude senior unsecured Natl LT AAA(bra) Affirmed AAA(bra) =================================== D O M I N I C A N R E P U B L I C =================================== BANCO DE RESERVAS: Fitch Alters Outlook on 'BB-' LT IDR to Stable ----------------------------------------------------------------- Fitch Ratings has revised the Outlooks on two Dominican Republic banks to Stable from Positive: Banco de Reservas de la Republica Dominicana, Banco Multiple, SA (Banreservas), and Banco Multiple BHD, S.A. (BHD). Fitch has also affirmed the banks' Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB-'. These actions follow the revision of the Outlook on the sovereign's Long-Term IDR to Stable from Positive. The banks' ratings are highly sensitive to changes in the sovereign rating. For more information, see Fitch Revises Dominican Republic's Outlook to Stable; Affirms IDR at 'BB-'. Fitch's Operating Environment (OE) assessment of 'bb-/stable' for Dominican banks is unchanged. GDP per capita and the operating risk index (ORI) have room to deteriorate amid macroeconomic and global geopolitical challenges. The assessment reflects Fitch's view that the banks will retain the ability to generate business. Fitch expects some asset quality deterioration but that the system's financial performance will remain sound. Fitch also affirmed Banreservas and BHD's Short-Term Foreign and Local Currency Ratings at 'B' and Government Support Ratings (GSRs) at 'bb-' and 'b+', respectively. Fitch did not review Banreservas and BHD's Viability Ratings (VRs) because VRs do not carry explicit outlooks. However, the VRs are at the same 'bb-' level as the OE, so Fitch would likely lower them if a sovereign downgrade weakened the OE. Key Rating Drivers IDR/VR Banreservas Banreservas' IDR reflects Fitch's assessment of the Dominican Republic government's reasonable ability and propensity to provide support, based on the bank's systemic importance, policy role, and full state ownership. The revision of the Outlook on the IDR to Stable from Positive and affirmation of the rating at 'BB-' is aligned with the sovereign's Outlook revision, in accordance with Fitch's support assessment. Banreservas' ratings consider Dominican Republic's 'bb-/Stable' operating environment and the bank's strong franchise as the country's largest bank, with 31% of system assets and a diversified universal banking profile. Fitch views asset quality and profitability as manageable, supported by solid reserve coverage, pricing flexibility and stable margins. Capitalization and liquidity remain adequate, backed by sound internal capital generation, conservative funding and a large, stable deposit base. BHD BHD's VR drives its Long-Term IDR. The revision of the Outlook on the IDR to Stable from Positive and affirmation of the rating at 'BB-' is aligned with the sovereign's Outlook revision, in accordance with Fitch's support assessment. BHD' VR at 'bb-' reflects its strong franchise and diversified business model, being the third largest bank in Dominican Republic. It also reflects the bank's financial profile with adequate capitalization, robust funding and liquidity position and recent asset quality deterioration and lower profitability metrics than its historical levels. GSR Banreservas Banreservas' 'bb-' GSR reflects its systemic importance. Fitch bases this view on the bank's 31% share of banking system assets at YE 2025, its policy role in collecting funds for the government's single treasury account to meet debt obligations, its role as a key public-sector lender, and its 100% state ownership. The GSR also reflects Fitch's expectation of a moderate likelihood of sovereign support. However, the Dominican Republic's speculative-grade IDR constrains this assessment because it creates uncertainty about the sovereign's ability and willingness to provide timely support. BHD BHD's 'b+' GSR reflects Fitch's view that support is only moderately likely. Fitch considers BHD systemically important because of its solid franchise, but there is significant uncertainty about the Dominican Republic's ability and willingness to provide timely support. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Banreservas - Banreservas' ratings would mirror any downgrade in the Dominican Republic's sovereign ratings and Country Ceiling; - Banreservas' ratings are sensitive to a change in Fitch's perception of the Dominican sovereign's propensity to support the bank; - Banreservas' ratings could be downgraded if there is a significant deterioration in asset quality or profitability or if the FCC to RWA ratio sustains below 10%; BHD - Negative changes to BHD's ratings could occur in the event of a downgrade on the Dominican Republic's sovereign ratings and Country Ceiling; - Downgrades to BHD's ratings 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%. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Banreservas - Positive rating actions could follow a sovereign upgrade, as the bank's implied viability supports a higher rating level. - Banreservas' GSR could be upgraded if the sovereign rating is upgraded. BHD - Positive rating actions could follow a sovereign upgrade, 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. Public Ratings with Credit Linkage to other ratings Banreservas' ratings are driven by the Dominican Republic sovereign rating. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Banco de Reservas de la Republica Dominicana - Banco Multiple, S.A. LT IDR BB- Affirmed BB- ST IDR B Affirmed B LC LT IDR BB- Affirmed BB- LC ST IDR B Affirmed B Government Support bb- Affirmed bb- 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 Government Support b+ Affirmed b+ ===================== E L S A L V A D O R ===================== EL SALVADOR: Fitch Affirms 'B-' Long-Term IDR, Outlook Stable ------------------------------------------------------------- Fitch Ratings has affirmed El Salvador's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'B-' with a Stable Outlook. El Salvador's rating is supported by reduced financing needs and easing financing constraints anchored by an IMF program, macroeconomic stability anchored by dollarization, and higher GDP per capita than its peers'. It is constrained by high debt and interest burdens, a relatively weak external position, and a 2023 pension-related debt operation that Fitch considered a distressed debt exchange. The Stable Outlook reflects Fitch's expectation that El Salvador's stronger economic growth and fiscal consolidation process will continue. However, Fitch expects higher oil prices will create headwinds, and there is uncertainty regarding the fate of the IMF program (currently subject to a prolonged delay), and the government's plans to address resumption of interest payments on pension-related debt in 2027. Key Rating Drivers IMF Review Delayed: Performance under El Salvador's 40-month Extended Fund Facility (EFF) IMF was broadly solid through its first review, with most March 2025 quantitative targets met and continued progress on governance and transparency reforms. However, the second and third review scheduled for September 2025 and March 2026 are still pending. In Fitch's view, the delay mainly reflects slippage in milestones related to pension reform and Bitcoin issues, rather than macro underperformance. Fitch expects the review to be completed in the coming months, supporting policy credibility, market confidence and multilateral financing. Further delays, however, could pressure market spreads and financing flexibility. Pension Reform Pending: Pension reform appears to be the main source of the delayed IMF review and a key medium-term policy challenge. The actuarial study required under the EFF was published in December 2025, but a reform proposal by February 2026 has not yet been delivered. The study identifies a substantial long-term actuarial deficit that has widened due to pension increases in recent years. It also identifies pressure that could deplete the Solidarity Guarantee Account by 2029. In Fitch's view, approaching general elections could complicate prospects for a pension reform required by the IMF. Furthermore, Fitch expects additional pressures to the fiscal consolidation path as a result of the expiry in the grace period on interest payment of pension bonds in 2027. Bitcoin Uncertainties: Bitcoin-related developments have also complicated the IMF review, although Fitch does not currently view them as likely to derail the program. The authorities completed key commitments, including banning tax payments in bitcoin, disclosing public-sector wallet addresses and adopting a plan to end public participation in Chivo. The IMF has signaled that greater transparency around Bitcoin operations is also an area of focus. The authorities have yet to clarify the nature of Bitcoin accumulation announced late last year, and the EFF prohibits such accumulation with public funds. Political Continuity: El Salvador is scheduled to hold general elections in February 2027. President Bukele retains exceptionally high approval ratings, largely reflecting improved security, while his party, Nuevas Ideas, holds 54 of 60 legislative seats. The 2025 constitutional reform allows Bukele to seek a third consecutive term, extending future presidential terms to six years and aligning presidential, legislative and municipal elections. This materially increases the likelihood of policy continuity beyond 2027, given his strong base of support. In Fitch's view, the electoral cycle may complicate prospects for politically costly reforms, especially this year. Improved Growth Prospects: Real GDP growth accelerated to 3.9% in 2025 from 2.6% in 2024, driven by strong investment, especially in construction, and resilient private consumption supported by remittances and domestic savings. Fitch forecasts growth to moderate to 3.0% in 2026, in line with Fitch's trend forecast, as remittance growth normalizes due to changes in U.S. immigration policy, and El Salvador faces a negative terms-of-trade shock. Net energy imports were high, at 5.8% of GDP in 2025. However, investment momentum, tax incentives for large building projects and public infrastructure plans provide upside to growth. Inflation averaged 0.3% in 2025, but Fitch expects it to rise to 2.4% in 2026 as higher fuel prices feed through. Fiscal Consolidation Advances: Fiscal consolidation continued in 2025, supporting the sovereign's credit profile. The non-financial public sector (NFPS) posted a primary surplus of USD706 million, or 1.9% of GDP, in 2025. This was in line with the IMF target and up from a balanced position in 2024. The overall NFPS deficit narrowed to 2.9% of GDP in 2025 from 4.6% in 2024, below the current 'B' median of 3.1%. Fitch expects further consolidation in 2026, with the deficit falling to around 2.4% of GDP, supported by revenue growth and expenditure control. A sharper and more persistent oil price shock is the main near-term fiscal risk if it prompts efforts to manage domestic fuel prices at a fiscal cost, as occurred in 2022. High Debt Burden: Fiscal consolidation and liability management have eased short-term financing pressures, and Fitch does not expect new Eurobond issuance before 2027. Fitch expects 2026 financing will rely mainly on multilateral support to allow for paydown of domestic debt. Fitch forecasts non-financial public sector debt to decline to 87.4% of GDP in 2026 and 85.2% in 2027, from around 90% in 2024, and continue declining more gradually thereafter, although still well above the current 'B' median of 51%. Debt affordability is a key constraint, with interest payments absorbing 18.1% of revenue in 2025 versus the 'B' median of 13.7%. Interest costs will rise further in 2027 as the grace period on pension bonds expires. External Position Weak: The current account deficit (CAD) widened to 3.5% of GDP in 2025 from 2.8% in 2024, reflecting modest export growth and strong import demand, partly offset by robust remittances. The CAD is not fully funded by FDI inflows, which fell to 1.2% of GDP in 2025. Fitch expects the CAD to widen further to 4.1% of GDP in 2026, mainly due to higher oil prices, as El Salvador is a relatively large net energy importer. The reciprocal trade agreement signed with the U.S. in January 2026 could provide some support to exports. International reserves rose to USD4.6 billion at end-2025, above the IMF target, supported by multilateral financing. Banks have additional liquidity (USD2.7 billion in 2025) which supports macro-financial stability in the context of dollarization. ESG - Governance: El Salvador has an ESG Relevance Score (RS) of '5' for both Political Stability and Rights and for the Rule of Law, Institutional and Regulatory Quality and Control of Corruption. These scores reflect the high weight that the World Bank Governance Indicators (WBGI) have in its proprietary Sovereign Rating Model. El Salvador has a medium WBGI ranking at 38th percentile, reflecting a moderate level of regulatory quality, participation in the political process, institutional capacity, and control of corruption. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Public Finances: Emergence of financing strains that weaken willingness and/or capacity to service government debt, for example due to fiscal deterioration that increases financing needs or deterioration in financing sources. - External Finances: A significant decline in external liquidity that heightens risks to financial stability and debt repayment capacity. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Public Finances: Fiscal consolidation that supports a sustained reduction in government debt-to-GDP, interest-to-revenue, and financing needs; improvement in access to multilateral and market financing. - Macro: Sustained improvement in macroeconomic performance, supported by investment. - External Finances: Sustained improvement of foreign reserves that strengthens financial flexibility and debt repayment capacity. Sovereign Rating Model (SRM) and Qualitative Overlay (QO) Fitch's proprietary SRM assigns El Salvador a score equivalent to a rating of 'B-' on the Long-Term Foreign-Currency (LT FC) IDR scale. Fitch's sovereign rating committee did not adjust the output from the SRM to arrive at the final LT FC IDR. Fitch's SRM is the agency's proprietary multiple regression rating model which employs 18 variables based on three-year centered averages, including one year of forecasts, to produce a score equivalent to a LT FC IDR. Fitch's QO is a forward-looking qualitative framework designed to allow for adjustment to the SRM output to assign the final rating, reflecting factors within its criteria that are not fully quantifiable and/or not fully reflected in the SRM. Debt Instruments: Key Rating Drivers Senior Unsecured Debt Equalized: The senior unsecured long-term debt ratings are equalized with the applicable long-term IDR, reflecting Fitch's expectation of average recovery prospects in a default scenario. A Recovery Rating of 'RR4' has been assigned to these debt instruments. The senior unsecured short-term debt ratings are equalized with the applicable short-term IDR. (See the Rating Actions table below for the full set of instrument ratings and recovery ratings.) Country Ceiling The Country Ceiling for El Salvador is 'B+', two notches above the LT FC IDR. This reflects strong constraints and incentives, relative to the IDR, against imposing capital or exchange controls that would prevent or materially impede private-sector entities from converting local currency into foreign currency and transferring the proceeds to non-resident creditors for debt service. Fitch's Country Ceiling Model produced a starting point uplift of two notches above the IDR. Fitch's rating committee did not apply a qualitative adjustment to the model's result. Climate Vulnerability Signals The results of its Climate.VS screener did not indicate an elevated risk for El Salvador. ESG Considerations El Salvador has an ESG Relevance Score of '5' for Political Stability and Rights as World Bank Governance Indicators have the highest weight in Fitch's SRM and are therefore highly relevant to the rating and a key rating driver with a high weight. As El Salvador has a percentile rank below 50 for the respective Governance Indicator, this has a negative impact on the credit profile. El Salvador has an ESG Relevance Score of '5' for Rule of Law, Institutional & Regulatory Quality and Control of Corruption as World Bank Governance Indicators have the highest weight in Fitch's SRM and are therefore highly relevant to the rating and are a key rating driver with a high weight. As El Salvador has a percentile rank below 50 for the respective Governance Indicators, this has a negative impact on the credit profile. El Salvador has an ESG Relevance Score of '4' for Human Rights and Political Freedoms as the Voice and Accountability pillar of the World Bank Governance Indicators is relevant to the rating and a rating driver. As El Salvador has a percentile rank below 50 for the respective Governance Indicator, this has a negative impact on the credit profile. El Salvador has an ESG Relevance Score of '4' for Creditor Rights as willingness to service and repay debt is relevant to the rating and is a rating driver for El Salvador, as for all sovereigns. As El Salvador recently implemented a pension debt exchange in 2023 that Fitch deemed a default, this has a negative impact on the credit profile. 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 ----------- ------ -------- ----- El Salvador LT IDR B- Affirmed B- ST IDR B Affirmed B Country Ceiling B+ Affirmed B+ senior unsecured LT B- Affirmed RR4 B- =========== M E X I C O =========== METROFINANCIERA: Fitch Downgrades MTROCB 07U Rating to 'Dsf' ------------------------------------------------------------ Fitch Ratings has taken the following rating actions on Metrofinanciera, S.A.P.I. de C.V. SOFOM ER's residential mortgage-backed securities (RMBS): - METROCB 06U affirmed at 'CC(mex)vra'; - MTROCB 07U downgraded to 'D(mex)vra' from 'C(mex)vra' and 'Dsf' from 'Csf'; - MTROCB 08U affirmed at 'D(mex)vra' and 'Dsf'; - MTROFCB 08 affirmed at 'AAA(mex)vra'; Stable Outlook. The affirmation of METROCB 06U reflects stabilizing performance after the deterioration observed since the previous review, which has so far allowed the transaction to comply with its payment obligation and monthly notes amortization. The downgrade of MTROCB 07U reflects the transaction's missed interest payment, as shown in the April 2026 monthly Distribution Report, and its continued performance deterioration. The affirmation of MTROCB 08U reflects the accumulation of unpaid interest since May 2024, amounting to 3,588,428.67 million UDIS as of April 2026. Fitch expect that, despite potential asset monetization, the accrued interest owed will not be recoverable, because asset yields continue to deteriorate. The affirmation of MTROCB 08 reflects the sufficient balance available under the timely partial credit guarantee (PCG) to cover all payment obligations. Entity/Debt Rating Prior ----------- ------ ----- Metrofinanciera METROCB06U (F#529) 2006 METROCB06U Natl LT CC(mex)vra Affirmed CC(mex)vra Metrofinanciera MTROCB08U (F#339) MTROCB 08U MTROCB 08U MX97MT010017 LT Dsf Affirmed Dsf MTROCB 08U MX97MT010017 Natl LT D(mex)vra Affirmed D(mex)vra Metrofinanciera MTROCB07U (F#297) MTROCB 07U Senior Notes MX97MT010009 LT Dsf Downgrade Csf Senior Notes MX97MT010009 Natl LT D(mex)vra Downgrade C(mex)vra Metrofinanciera MTROFCB08 (F#381) 2008 MTROFCB 08 MX97MT020008 Natl LT AAA(mex)vra Affirmed AAA(mex)vra KEY RATING DRIVERS Highly Stressed Operational Risk: On March 30, 2026, Fitch affirmed Metrofinanciera's counterparty rating at 'D(mex)', reflecting Fitch's view of the company's inability to continue normal operations because of nonpayment of significant contractual obligations and other institutional commitments after its accounts were frozen. Additionally, on Feb. 23, 2026, Fitch downgraded Metrofinanciera's RMBS Primary Servicer rating to 'AAFC5(mex)' with a Outlook Stable from 'AAFC4(mex)' with Rating Watch Negative. The servicer rating downgrade reflects a significant increase in financial and operational risks due to a weaker financial situation and inability to originate new loans, which restricts normal business operations. Amidst the current operational situation, Metrofinanciera has adhered to its operational mandates and continued to fulfil its third-party reporting obligations without interruption. In addition, rated transactions are already at distressed levels, except for MTROFCB 08, which relies on GPO availability rather than the underlying portfolio. Fitch has closely monitored the entity's ongoing status as a portfolio servicer and any potential disruptions in collection, servicing and recovery activities. At this stage, no further analytic adjustments are required. Immaterial Counterparty Risks: All collections are deposited in accounts held under a trust account structure, which isolates the funds from the transaction account bank's insolvency risks and results in an immaterial counterparty risk exposure. In addition, because all received funds are allocated directly to the fiduciary accounts, commingling and payment interruption risks are considered immaterial. METROCB 06U Polarized Portfolio Remains: As of January 2026, the current portfolio was comprised 192 loans originated in Mexico, totaling 9.04 million UDIs. The portfolio had net defaults of 4.4% of initial balance (IB; +180 days past due), broadly in line with 4.6%12 months earlier. The transaction remains polarized, with 66.1% of the total portfolio more than 180 days due, compared with 60.6% at last review. As a result, the transaction would depend on recoveries to repay the debt in full. Decreasing OC: As of April 2026, the transaction had a balance of 9.41 million UDIs, equal to 7.03% of the initial notes balance. In the past 12 months, the notes' balance amortized by about 0.84% of the initial balance of 135.93 million UDIS. Moreover, overcollateralization (OC), based on performing loans ===================== P U E R T O R I C O ===================== ESJ TOWERS: Court Narrows Claims in "Nalley" Lawsuit ---------------------------------------------------- Judge Enrique S. Lamoutte of the U.S. Bankruptcy Court for the District of Puerto Rico denied, in part, and granted in part, the motion to dismiss filed by Black Briar Advisors, LLC and Stephen L. Nalley in the adversary proceeding captioned as COMMITTEE OF UNSECURED CREDITORS FOR ESJ TOWERS, INC., Plaintiffs vs. STEPHEN L. NALLEY; BLACK BRIAR ADVISORS LLC Defendants, ADVERSARY NO. 25-00027 (Bankr. D.P.R.). On December 18, 2022, the Debtor entered into a Management Agreement with Black Briar pursuant to which Black Briar would manage the Debtor's operations. Concurrently with the execution of the Management Agreement, Mr. Nalley assumed the role of the Debtor's Acting General Manager. On July 2, 2025, the Committee filed an Amended Complaint against Black Briar and Mr. Nalley, asserting three (3) causes of action: a. Count I: Avoidance and Disgorgement Against Black Briar. The Committee asserts that the Management Agreement, the services performed thereunder, and the fees received therefrom of approximately $600,000 did not receive court approval in violation of Sections 330 and 549 of the Bankruptcy Code, and seeks to avoid and disgorge said amount pursuant to Sections 329, 330 and 550 of the Bankruptcy Code, together with prejudgment interest. b. Count II: Breach of the Management Agreement Against Black Briar. The Committee seeks direct and consequential damages "of several hundred thousand dollars" on account of Black Briar's alleged breach of the Management Agreement. The Committee alleges that Black Briar breached the Management Agreement by terminating the Management Agreement without the required notice. The Committee alleges that Black Briar's breach of the Management Agreement caused Debtor to suffer damages including an inability to pay fees owed to the U.S. Trustee when the second quarter payment became due on July 31, 2024. c. Count III: Breach of Fiduciary Duties Against Mr. Nalley. The Committee seeks compensatory and punitive damages "in an amount to be determined at trial" on account of Mr. Nalley's alleged breach of fiduciary duties to the Debtor. The Committee alleges that Mr. Nalley breached his fiduciary duties to the Debtor by authorizing and/or making hundreds of thousands of dollars in payments to professionals (including Black Briar) and other parties that were outside the ordinary course of business and were not authorized by the Court. The Committee alleges that Mr. Nalley's breach of fiduciary duties caused substantial damage to the Debtor and its creditors, including (i) unpaid fees to the U.S. Trustee when the second quarter payment became due on July 31, 2024, (ii) professional fees that the Debtor and the Committee incurred in connection with the termination of timeshare contracts, and (iii) Debtor's loss of its share of insurance proceeds. With respect to Count I, Defendants argue that the Management Agreement was entered into in the ordinary course of the Debtor's business, that notice and hearing was not required pursuant to 11 U.S.C. Secs. 363(c)(1), 1107(a). In the alternative, Defendants argue that to the adversary proceeding was filed on May 21, 2025, any claim seeking disgorgement of fees paid before May 21, 2023 are time barred under 11 U.S.C. Sec. 549(d). With respect to Count II, Defendants argue that the action fails to satisfy the minimum pleading requirements of Fed. R. Civ. P. 8(a) and 9(b) by, inter alia, failing to describe with sufficient particularity which terms of the Management Agreement were allegedly breached, how Black Briar breached those terms, what false misrepresentations were made by Black Briar, who made them and when. They also argue that Count II fails to plead the elements applicable to a breach of contract claim under Puerto Rico law as there is no causal nexus between the purported termination of the Management Agreement and the damages asserted, and that damages in a contract action are limited to those which are "reasonably foreseeable". With respect to Count III, Defendants argue that: (i) the Committee does not have standing to pursue, on the Debtor's behalf, claims that accrued after the Confirmation Date (May 21, 2024) as per the terms of the confirmed plan; (ii) Mr. Nalley personally did not owe a fiduciary duty to the Debtor because the Management Agreement was entered by the Debtor and Black Briar; (iii) any claim that the Debtor may have had for injuries that it suffered prior to the Confirmation Date are time-barred by Puerto Rico's general tort statute, 31 L.P.R.A. Sec. 10801 (2020), which has a one-year statute of limitations; and (iv) Mr. Nalley is not liable to the Debtor under 31 L.P.R.A. Sec. 10801 (2020) because each theory underlying Count III fails to satisfy one or more elements. The court finds the Committee has adequately pleaded that the Management Agreement was not entered into in the ordinary course, and the record, at this stage in the proceedings, does not support Defendants' conclusory statements as the transaction's ordinariness. Dismissal as this juncture is thus not appropriate. Consequently, the court denies Defendants' request for dismissal of Count I with respect to fees received from May 21, 2023 onward. Partial dismissal of Count I is appropriate with respect to fees received prior to May 21, 2023. Under the Management Agreement, Black Briar had the authority to unilaterally terminate the agreement prior to expiration of the initial term. Whether Black Briar breached its duty to provide prior written notice of termination is a question of fact. Consequently, the court denies Defendants' request for dismissal of Count II solely with respect to claims arising from Black Briar's unilateral termination of the Management Agreement. All other alleged breaches for which "sufficient factual matter" is not alleged, and are unsupported by reference to any specific contractual provision, are dismissed. The question of whether, in a particular factual setting, a fiduciary relationship exists is a question of fact. Consequently, the court denies Defendants' request for dismissal of Count III. A copy of the Court's Opinion and Order dated April 6, 2026, is available at http://urlcurt.com/u?l=XslcPFfrom PacerMonitor.com. About ESJ Towers ESJ Towers, Inc. owns the ESJ Towers in Carolina, P.R. The luxury apartments and condo units at ESJ Towers have direct access to Isla Verde Beach, widely considered one of the best in Puerto Rico. ESJ sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 22-01676) on June 10, 2022, with as much as 50 million in both assets and liabilities. ESJ President Keith St. Clair signed the petition. Judge Enrique S. Lamoutte Inclan oversees the case. The Debtor tapped Charles A. Cuprill, Esq., at Charles A. Cuprill, PSC Law Offices as bankruptcy counsel; Ramon Luis Nieves, Esq., at RL Legal Consulting Services, LLC and Luis Daniel Muniz, Esq., as special counsels; Dage Consulting CPAS, PSC as financial advisor; CPA Luis R. Carrasquillo & Co., P.S.C. as financial consultant; and De Angel & Compania, PA, LLC as auditor. The U.S. Trustee for Region 21 appointed an official committee of unsecured creditors on Sept. 12, 2022. The committee tapped the Law Office of Jonathan A. Backman as lead bankruptcy counsel; Julio Cesar Alejandro Serrano, Esq., at JCAS Law as local counsel; and Dage Consulting CPAS, PSC as financial advisor. The court confirmed the Debtor's Chapter 11 plan of reorganization on May 21, 2024. PROSTHODONTICS AND DENTAL: Case Summary & 20 Unsecured Creditors ---------------------------------------------------------------- Debtor: Prosthodontics and Dental Implant Solutions PSC Ave. Santa Juanita BB-25 Bayamon, PR 00959 Business Description: Prosthodontics and Dental Implant Solutions PSC, a Bayamon, Puerto Rico-based provider of oral healthcare services, offers preventive, diagnostic and restorative treatments, including prosthodontic care and implant procedures, to patients requiring general and specialized dental care. Chapter 11 Petition Date: April 13, 2026 Court: United States Bankruptcy Court District of Puerto Rico Case No.: 26-01632 Debtor's Counsel: Maria Soledad Lozada Figueroa, Esq. LOZADA LAW 1641 Calle Loira El Cerezal San Juan PR 00926 Tel: 787-533-1400 E-mail: msl@lozadalaw.com Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by Kamyr Martinez Ramirez as president. A full-text copy of the petition, which includes a list of the Debtor's 20 largest unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/XDGN22Y/PROTHODONTICS_AND_DENTAL_IMPLANT__prbke-26-01632__0001.0.pdf?mcid=tGE4TAMA ================= V E N E Z U E L A ================= VENEZUELA: Melting 'Permafrost' Draws Debt Investors' Optimism -------------------------------------------------------------- Libby George at Reuters reports that Venezuela, a country subject to Western sanctions and saddled with billions in debt, was the biggest cause for optimism at the otherwise sombre IMF-World Bank meetings, investors and officials said. Expectations for an economic revival for the formerly Socialist republic, whose ousted President Nicolas Maduro was ‌placed in a New York prison in January, dominated conversations on the sidelines of the meetings, attendees told Reuters. "The permafrost is melting. And that is why investors are optimistic," said Rodrigo Olivares-Caminal, a professor at Queen Mary University, who advises governments on debt and attended the Spring Meetings, according to Reuters. Although Venezuela was not mentioned on any formal agenda in advance of the meetings, at least six banks and organisations held crowded investor briefings in Washington, including Bank of America, Barclays, JPMorgan and Morgan Stanley, according to three sources who attended them and agendas seen by Reuters. The IMF and the World Bank said they had resumed dealings with Caracas for the first time since 2019 -- a major step towards re-engagement with the international community that could allow access to ⁠roughly $5 billion worth of IMF special drawing rights, a reserve asset allocated by the Fund, the report notes. Middle Eastern Conflict Overshadowed The Talks Elsewhere during the Spring Meetings at the two institutions' headquarters just off Pennsylvania Avenue, falling economic forecasts dominated discussions, as global financial leaders reluctantly tallied the cost of the war in the Middle East on their economies, the report says. Much of the cost is a result of a surge in international oil, opens new tab prices that will drive inflation across the globe, the report relays. For Venezuela, home to the largest proven oil reserves in the world, high oil prices imply extra revenue, which could help repair infrastructure after decades of underinvestment, the report discloses. The greatest cause for excitement, however, was Venezuela's defaulted debt, the report says. Six attendees who spoke to Reuters, including bondholders and lawyers, said they hoped warmer ties with the United States would enable the restructuring of Venezuela's sovereign debt to give investors at least some of their money back, the report relays. If achieved, it would be one of the biggest restructurings in recent history, the report notes. Venezuela and its state oil firm PDVSA have roughly $60 billion of defaulted bonds outstanding, but total external debt expected to be in scope for restructuring stands at roughly $150-$170 billion once other obligations for the energy firm, bilateral loans and arbitration awards are included, the report discloses. The defaulted bonds have rallied since U.S. President ‌Donald Trump's ⁠return to office at the start of last year, the report relates. That had prompted bets on regime change even before the U.S. military operation in January in which Maduro was seized, the report notes. Since then, closer ties between Trump's White House and interim Venezuelan President Delcy Rodriguez have increased optimism on the market, lifting prices for some bonds to their highest in roughly a decade, the report says. "I gave three different talks. All three were packed," said Juan S. Gonzalez, resident fellow at the Georgetown Americas Institute who served as Deputy Assistant Secretary of State for the Western Hemisphere in 2016 and 2017, the report adds. About Venzuela Venezuela, officially the Bolivarian Republic of Venezuela, is a country on the northern coast of South America, consisting of a continental landmass and a large number of small islands and islets in the Caribbean sea, according to globalinsolvency.com. The capital is the city of Caracas, the report notes. Hugo Chavez was president to Venezuela from 1999 to 2013. The Chavez presidency was plagued with challenges, which included a 2002 coup d'etat, a 2002 national strike and a 2004 recall referendum. Nicolas Maduro was elected president in 2013 after the death of Chavez. Maduro won a second term at the May 2018 Venezuela elections, but this result has been challenged by countries including Argentina, Chile, Colombia, Brazil, Canada, Germany, France and the United States who deemed it fraudulent and moved to recognize Juan Guaido as president. The presidencies of Chavez and Maduro have challenged Venezuela with a socioeconomic and political crisis. It is marked by hyperinflation, climbing hunger, poverty, disease, crime and death rates, social unrest, corruption and emigration from the country. On January 3, 2026, the United States launched a military operation in Venezuela and Maduro and his wife were captured and were flown out of the country. As of January 4, 2026, the government formerly led by Maduro remains in control, with Vice President Delcy Rodríguez having been appointed acting president. Moody's has withdrawn its 'C' local currency and foreign currency ceilings for Venezuela in September 2022. Standard & Poors has also withdrawn its 'SD/D' foreign currency sovereign credit ratings and 'CCC-/C' local currency ratings on Venezuela in September 2021 due to lack of sufficient information. Fitch withdrew its own 'RD/C' Issuer Default Ratings on Venezuela in June 2019 due to the imposition of U.S. sanctions on the country's government. ********* 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 * * *