260430.mbx

260430.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Thursday, April 30, 2026, Vol. 27, No. 86 Headlines A R G E N T I N A ARGENTINA: Appeals Court Backs Milei's Labour Reform in Key Ruling B E R M U D A BERMUDAIR: Staying Nimble in Face of Jet Fuel Crisis B R A Z I L BANCO ABC: Moody's Affirms 'Ba1' LT Deposit Rating, Outlook Stable NEW FORTRESS: Advances UK Restructuring with 97% Creditor Support NEW FORTRESS: Ernst & Young Raises Going Concern Doubt C O L O M B I A ECOPETROL SA: Moody's Cuts CFR to Ba2, Alters Outlook to Negative OLEODUCTO CENTRAL: Moody's Cuts CFR to Ba2, Alters Outlook to Neg. M E X I C O BANAMEX: S&P Rates New Tier 2 Sub Notes for Up To $1.3BB 'BB' P A N A M A BANISTMO SA: Moody's Cuts Deposit & Unsecured Debt Ratings to Ba2 U R U G U A Y [] Moody's Takes Actions on 3 Uruguayan Banks - - - - - ================= A R G E N T I N A ================= ARGENTINA: Appeals Court Backs Milei's Labour Reform in Key Ruling ------------------------------------------------------------------ Buenos Aires Times reports that an appeals court in Argentina has given the green light to President Javier Milei's government to proceed with its controversial labour reform, overturning an injunction that had suspended it at the request of the CGT labour umbrella. Argentina's National Labour Appeals Court ruled that the reform is constitutional, a conclusion strongly disputed by the opposition and trade unions, according to Buenos Aires Times. President Milei welcomed the decision. "They cannot stop the growth which is coming this country's way. VIVA LA LIBERTAD CARAJO . . . !!!" the La Libertad Avanza leader wrote on his X social media account, the report notes. The so-called 'Labour Modernisation Law', approved in February, reduces severance pay, allows payments to be made in instalments, extends the working day to 12 hours without overtime, permits payment in kind (goods or services) and limits the right to strike, among other provisions, the report says. The government argues that the measures will help create jobs and reduce informal employment, which currently stands at 43 percent of the workforce, according to official data, the report relates. The report notes that the CGT has rejected those claims, branding the government’s arguments "false." "It is not by diminishing workers’ rights nor by rolling back the legal framework to times close to slavery that things will improve," the union said, the report discloses. Since Milei took office in December 2023, more than 22,000 companies have shut down in Argentina, with the loss of around 300,000 jobs, the report says. The downturn has been driven in part by falling consumer demand amid declining real wages, as well as by the opening of the economy to imports, the report relays. Industrial activity in February fell four percent compared with the previous month, while idle capacity reached 54.6 percent, according to official data, the report notes. Inflation, which Milei brought down to a third of the levels seen when he took office, has been creeping up over the past 11 months, the report relays. March's consumer price rise of 3.4 percent was the highest in a year, the report relates. In February, a general strike against the reform drew large street protests but failed to halt the law's approval, the report discloses. The CGT has announced a May Day march on April 30 to express its opposition and demand a change in the government's economic course, the report notes. The courts have yet to issue a final ruling on whether the law violates the Constitution by introducing reforms that critics consider regressive for workers' rights, the report relates. The government has asked the Supreme Court to fast-track the case through a "per saltum" procedure in an effort to settle the dispute, 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. S&P Global Ratings on Dec. 17, 2025, raised its local currency sovereign credit ratings on Argentina to 'CCC+/C' from 'SD/SD'. S&P also raised its long-term foreign currency sovereign credit rating to 'CCC+' from 'CCC' and affirmed its 'C' short-term foreign currency rating. The outlook on the long-term ratings is stable. In addition, S&P raised its issue ratings on local currency bonds to 'CCC+' from 'CCC'. S&P's 'B-' transfer and convertibility assessment is unchanged. 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. Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. ============= B E R M U D A ============= BERMUDAIR: Staying Nimble in Face of Jet Fuel Crisis ---------------------------------------------------- Jessie Moniz Hardy at the Royal Gazette reports that BermudAir is striving to stay nimble in the face of a jet fuel crisis that it sees bringing both challenges and opportunities. The boutique Bermudian airline told The Royal Gazette it is closely monitoring the volatility in fuel markets. The continued closure of the Strait of Hormuz in Iran -- through which about 20 per cent of global oil supplies are normally transported -- has resulted in a worldwide jet fuel shortage. In the last month the price of a barrel of jet fuel has gone from around $80 a barrel to about $200, according to Royal Gazette. "Fuel is one of the largest components of our cost base, so fluctuations do have an impact," a spokeswoman for BermudAir said, the report notes. The company has seen upward pressure on fuel pricing, just as other airlines have, the report relays. "While specific price points can vary by market and contract structure, there is no question that higher fuel costs create headwinds," the spokeswoman said, the report notes. "That said, we actively manage procurement and maintain flexibility in our network to mitigate those impacts as much as possible," he added. The airline is focused on maintaining a stable and reliable schedule for its customers, the report says. "We are not making reactive decisions based solely on short-term fluctuations," the spokeswoman said, the report relays. "Pricing is always reviewed carefully in the context of overall market conditions, but our priority is to continue offering consistent service and value rather than making abrupt changes," he added. BermudAir added that it takes a disciplined approach to capacity, routing and operations to manage through touch periods without compromising reliability for customers, the report discloses. "Our fuel supply is a combination of uplift in Bermuda and at our United States destinations," BermudAir stated, the report notes. "Like most airlines operating international routes, we optimise where we take on fuel based on operational efficiency, pricing and logistics." The firm also said in any period of disruption there can be opportunity for well-positioned airlines, the report relays. "BermudAir was created to provide consistent, direct connectivity to Bermuda and if others adjust capacity, we are ready to support demand where it makes sense," the company added, the report discloses. So far, the airline has not seen any material shift in booking behaviour tied to the fuel market uncertainty, the report says. "Travel demand to and from Bermuda remains resilient and customers continue to prioritise reliable service and convenient schedules," BermudAir stated, the report notes. Elsewhere, Lufthansa has cancelled 20,000 flights to protect itself from the soaring cost of oil and American Airlines has raised its checked-bag fees, the report says. Turkish economist Fatih Birol at the International Energy Agency in Paris, France, has warned that this could become the biggest energy crisis ever, the report relays. The report discloses that European Union energy commissioner Dan Jorgensen has said: "Even if we do everything we can do, if the jet fuel is not there, then it is not there." Advocacy group Airlines UK, which includes British Airways, has asked the British Government to draft an emergency jet fuel plan amid the continued closure of the Strait of Hormuz, the report adds. =========== B R A Z I L =========== BANCO ABC: Moody's Affirms 'Ba1' LT Deposit Rating, Outlook Stable ------------------------------------------------------------------ Moody's Ratings has affirmed all ratings and assessments assigned to Banco ABC Brasil S.A. (BAB), including the Ba1 and Not Prime local and foreign currency deposit ratings, long- and short-term, respectively, and BAB's Baa3 long-term local and foreign currency counterparty risk ratings. At the same time, Moody's affirmed BAB's Prime-3 local and foreign currency short-term counterparty risk ratings, as well as its counterparty risks assessments of Baa3(cr) and Prime-3(cr), long- and short-term, respectively. The bank's baseline credit assessment (BCA) and adjusted BCA of ba1 were also affirmed. The outlook on the long-term deposits remains stable. RATINGS RATIONALE The affirmation of BAB's ba1 BCA reflects Moody's expectations that the bank will sustain healthy asset quality and consistent internal capital generation, supported by improving earnings diversification. Since its strategic shift in 2019, BAB has expanded fee-based activities, including insurance, investment banking and derivatives, enhancing the stability of its earnings profile. Its growing focus on middle-market clients also helps offset margin pressure in its core wholesale franchise amid intense competition from larger banks and a rapidly growing local debt capital market. BAB has a track record of superior asset quality through cycles, reflecting disciplined underwriting standards, that will ensure that stage 3 loans, at 4% of gross loans in 2025, remain broadly stable in 2026. Conservative provisioning buffers provide protection in an operating environment characterized by high interest rates and slowing economic activity. Exposure to middle-market companies, at 9% of total credit exposure in 2025, will continue increasing, but with underwriting standards consistent with those that have supported its asset quality to date. In 2025, despite sluggish credit growth and higher provisioning, the bank's net income to tangible assets improved to 1.54%, from 1.35% a year earlier, supported by disciplined cost management and a rising share of higher-yielding loans. Higher business volumes will support profitability, although this remains contingent on a sustained decline in policy interest rates. The ba1 BCA also reflects BAB's reliance on wholesale funding, as evidenced by a ratio of less-stable funds to tangible assets of 39.7% as of December 2025. Refinancing risk is counterbalanced by the bank's good access to local and international investors, which supports a more diversified funding mix, as well as conservative liquidity management with well-matched assets and liabilities. BAB's Ba1 deposit rating does not incorporate any affiliate support from its majority shareholder, Arab Banking Corporation. Nevertheless, Moody's acknowledges the shareholder's strong commitment, as demonstrated by a conservative dividend reinvestment policy at the Brazilian subsidiary level. In 2025, Moody's preferred capital metric of tangible common equity to risk-weighted assets stood at 10.4%, while the bank reported a regulatory Common Equity Tier 1 (CET1) ratio of 11.9%, supporting its loss-absorption capacity. The stable outlook on BAB's deposit ratings is aligned with the stable outlook on the Government of Brazil's (Brazil, Ba1 stable) sovereign bond rating and reflects Moody's expectations that the bank will continue to maintain healthy asset quality and adequate loss-absorption buffers. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS There is currently no upward pressure on BAB's BCA and long-term deposit rating because they are at the same level as Brazil's sovereign bond rating. Downward pressure on BAB's BCA and ratings could arise from a sudden deterioration in asset quality that weakens the bank's loss-absorption buffers, including capital and reserves. In addition, a downgrade of Brazil's sovereign ratings would likely lead to a lower BCA and ratings for BAB. The principal methodology used in these ratings was Banks published in November 2025. NEW FORTRESS: Advances UK Restructuring with 97% Creditor Support ----------------------------------------------------------------- New Fortress Energy Inc. previously announced on March 17, 2026, that it entered into a Restructuring Support Agreement with its creditors as part of a consensual UK Restructuring Plan. NFE is pleased to announce that it has received commitments of support for the transaction, to be implemented through a UK RP, from approximately 97% in value of its holders and lenders in aggregate. Practice Statement Letter NFE is also pleased to announce that its subsidiaries, NFE Global Holdings Limited and NFE Brazil Newco Limited, have now executed and published a practice statement letter dated April 20, 2026, in connection with the implementation of the transactions contemplated by the RSA via the UK RP. The Practice Statement Letter is addressed to the Plan Creditors (as defined in the Practice Statement Letter). The Practice Statement Letter outlines each of the Plan Company's proposed UK RP, its proposed effects and the next steps for Plan Creditors. Creditors are encouraged to read the Practice Statement Letter which is available online through the website: https://deals.is.kroll.com/nfe, which has been set up by Kroll Issuer Services Limited as information agent in connection with the UK RP. Creditors that do not already have a password to access the Plan Website and require one should contact the information agent at the email address nfe@is.kroll.com. Creditors should contact the Information Agent at nfe@is.kroll.com with any questions on accessing the Practice Statement Letter -- including to request provision of a hard copy. Convening Hearing The Plan Companies intend to apply to the High Court of Justice of England and Wales, for permission to convene a meeting of Plan Creditors (as defined in the Practice Statement Letter) to consider and, if thought appropriate, approve the UK RP. The date of the Convening Hearing is expected to be May 14, 2026 and the details of the Convening Hearing will be confirmed to Plan Creditors by the Information Agent (and details will also be available on the Plan Website). Further Information For further details on the transaction and its terms, please refer to NFE's previous announcement on March 17, 2026, regarding its entry into the RSA. As previously announced, the Company expects the transaction to be completed by the third quarter of 2026, subject to court availability, customary conditions and regulatory approvals. About New Fortress Energy Inc. New Fortress Energy Inc., a Delaware corporation, is a global energy infrastructure company founded to help address energy poverty and accelerate the world's transition to reliable, affordable and clean energy. The Company owns and operates natural gas and liquefied natural gas infrastructure, ships and logistics assets to rapidly deliver turnkey energy solutions to global markets. The Company has liquefaction, regasification and power generation operations in the United States, Jamaica, Brazil and Mexico. The Company has marine operations with vessels operating under time charters and in the spot market globally. As of September 30, 2025, the Company had $11.9 billion in total assets, $10.8 billion in total liabilities, and a total stockholders' equity of $1.1 billion. * * * In November 2025, S&P Global Ratings lowered its Company credit rating on New Fortress Energy Inc. (NFE) to 'SD' (selective default) from 'CCC'. At the same time, S&P lowered its issue level rating on NFE's 12% senior secured notes due 2029 to 'D' from 'CCC-'. The downgrade reflects NFE's decision to enter into a forbearance agreement. S&P will reevaluate its ratings on NFE before the end of November as more information becomes available. The Company has initiated a process to evaluate its strategic alternatives to improve its capital structure. It has retained Houlihan Lokey Capital, Inc. as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP as legal advisor to assist it in this evaluation. The Company, along with its advisors, is considering all options available, including asset sales, capital raising, debt amendments and refinancing transactions, and other strategic transactions that seek to provide additional liquidity and relief from acceleration under its debt agreements. As part of this process, the Company is engaging in discussions with various existing stakeholders and potential investors. There are inherent uncertainties as the outcome of these negotiations and potential transactions are outside management's control, and therefore there are no assurances that management will be successful in these negotiations and that any of these potential transactions will occur. In addition, there can be no assurances that these transactions will sufficiently improve the Company's liquidity or that the Company will otherwise realize the anticipated benefits. Moreover, if the Company fails to obtain amendments and forbearance, the Company may be required or compelled to pursue additional restructuring initiatives to preserve value and optionality, including possible out-of-court restructurings, or in-court relief, which could have a material and adverse impact on the Company's stockholders. NEW FORTRESS: Ernst & Young Raises Going Concern Doubt ------------------------------------------------------ New Fortress Energy Inc. filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K reporting a net loss of $1.8 billion for the year ended December 31, 2025, compared to a net loss of $244.5 million for the year ended December 31, 2024. Total revenues for the year ended December 31, 2025, was $1.5 billion compared to $2.4 billion in the prior period. Philadelphia, Pennsylvania-based Ernst & Young LLP, the Company's auditor since 2016, issued a "going concern" qualification in its report dated April 13, 2026, attached to the Company's Annual Report on Form 10-K for the year ended December 31, 2025, citing that the Company has suffered losses from operations, has experienced events of default under its debt agreements, and has stated that substantial doubt exists about the Company's ability to continue as a going concern. Going Concern and Planned Debt Restructuring Due, in part, to the events of default under the Company's debt agreements detailed below, management has concluded that there is substantial doubt as to the Company's ability to continue as a going concern. -- On March 17, 2026, the Company entered into an RSA with certain noteholders and lenders, and upon completion of the transactions contemplated in this agreement, the Company will have a new capital structure and the current debt facilities in default will no longer be outstanding. Events of default on outstanding debt are summarized as follows: * NFE Financing LLC, a subsidiary of the Company, did not make the interest payment of $163,800 due to holders of the New 2029 Notes on November 17, 2025. An event of default under the indenture governing the New 2029 Notes arose on November 20, 2025, when the contractual grace period for interest payments on such notes expired. On November 18, 2025, the Company and certain of its subsidiaries, including NFE Financing, entered into a forbearance agreement with the beneficial holders of greater than 70% of the New 2029 Notes, pursuant to which such beneficial holders agreed to forbear from accelerating or exercising remedies in respect of such event of default. The New 2029 Notes Forbearance Agreement was initially in effect through December 15, 2025, and the Company continues to have forbearance for defaults covered by the New 2029 Notes Forbearance Agreement and other specified defaults in the RSA as long as the RSA remains in effect. * The Company did not make the interest payment of $30,644 due under the Term Loan B Credit Agreement on December 10, 2025. An event of default under the Term Loan B Credit Agreement arose on December 17, 2025, when the contractual grace period for interest payments on the loans expired. On December 17, 2025, the Company and certain of its subsidiaries entered into a forbearance agreement with certain lenders of the Term Loan B, pursuant to which such lenders agreed to forbear from accelerating or exercising remedies in respect of such events of default. The Company also did not make the principal payment of $3,181 due on December 31, 2025, and the event of default arising from the failure to make this principal payment was also covered by the Term Loan B Forbearance Agreement. The Term Loan B Forbearance Agreement was originally scheduled to terminate on January 9, 2026, and the Company continues to have forbearance for defaults covered by the Term Loan B Forbearance Agreement and other specified defaults in the RSA as long as the RSA remains in effect. * The Company did not make the interest payment of $1,647 due under the Term Loan A Credit Agreement on December 10, 2025. An event of default under the Term Loan A Credit Agreement arose on December 17, 2025, when the contractual grace period for interest payments on the loans expired. On December 17, 2025, the Company and certain of its subsidiaries entered into a forbearance agreement, with certain lenders of the Term Loan A, pursuant to which such lenders agreed to forbear from accelerating or exercising remedies in respect of such event of default. The Term Loan A Forbearance Agreement was initially in effect through January 9, 2026, and the Company continues to have forbearance for defaults covered by the Term Loan A Forbearance Agreement and other specified defaults in the RSA as long as the RSA remains in effect. * The Company did not make any interest payments, approximately $13,128 in the aggregate, due under the Revolving Facility, beginning with the payment due on November 28, 2025. An event of default under the Revolving Facility arose on January 13, 2026, when the contractual grace period for interest payments on the loans expired. The Company and certain of its subsidiaries subsequently entered into a forbearance agreement with certain lenders to the Revolving Facility, pursuant to which such lenders agreed to forbear from accelerating or exercising remedies in respect of such event of default. The RCF Forbearance Agreement was initially in effect through January 23, 2026, and the Company continues to have forbearance for defaults covered by the RCF Forbearance Agreement and other specified defaults in the RSA as long as the RSA remains in effect. Planned restructuring transactions On March 17, 2026, the Company entered into a restructuring support agreement with certain of its lenders and noteholders, including: * certain members of an ad hoc group of holders of the New 2029 Notes; * certain members of an ad hoc group of term lenders under the Term Loan B Credit Agreement; * certain holders of debt under the Revolving Credit Agreement, being lenders under a facility currently drawn at approximately $100 million and under a facility currently drawn at approximately $560 million; * certain members of an ad hoc group of term lenders under the Term Loan A Credit Agreement; and * a majority of the members of a group of creditors with recourse to the collateral assets in the Company's core business, but not to the Company's Fast LNG assets or Brazil business, including: (1) holders of the 2026 Notes and holders of the 2029 Notes and (2) creditors of the debt under that certain Credit Agreement, dated as of November 22, 2024, by and among the Company, as the borrower, the guarantors from time to time party thereto, NFE Brazil Investments LLC, as the lender, and Wilmington Savings Fund Society, FSB, as the administrative agent and as collateral agent and under that certain Credit Agreement, dated as of December 6, 2024, by and among the Company, as the borrower, the guarantors from time to time party thereto, NFE Financing, as the lender, and Wilmington Savings Fund Society, FSB, as the administrative agent and as collateral agent. Holders of or lenders under the debt instruments described above that are not already party to the RSA may become Additional Supporting Creditors (as defined in the RSA) by executing and delivering a joinder in accordance with the terms of the RSA. The RSA sets forth principal terms for a comprehensive restructuring of the Company's principal funded debt obligations. The RSA contemplates, among other things, the following material terms: * The Company will separate into two independent companies: one generally comprising the Company's businesses and assets in Brazil and land in Wyalusing, Pennsylvania, and the other generally comprising the Company's other businesses and assets, which will be retained by NFE ; * Obligations under the 2026 Notes, the 2029 Notes, the Term Loan A Credit Agreement, the Term Loan B Credit Agreement, the Revolving Credit Agreement, the New 2029 Notes, and certain intercompany credit agreements will be exchanged (in each case on a ratable basis) for one or a combination of the following debt obligations and equity securities: -- 100% of the common equity interests in BrazilCo; -- approximately $571,300 in senior secured term loans incurred by the Company, as borrower, and guaranteed by each subsidiary of the Company that will be part of CoreCo (subject to customary exclusions and other exclusions to be agreed); -- convertible preferred stock of NFE with an aggregate liquidation preference of approximately $2,460,000; -- shares representing 65% of the Company's Class A common stock as of the closing date of the Restructuring Transaction, before giving effect to shares authorized under an incentive plan for directors, officers and other employees of the Company or any conversion of the CoreCo Convertible Preferred Stock into NFE Class A common stock; -- $400,000 in non-recourse term loans incurred or issued by the subsidiary that owns the Company's Fast LNG 2 assets, payable in full on the third anniversary of the closing date of the Restructuring Transaction, guaranteed by certain subsidiaries of FLNG 2 Co and secured by substantially all assets of FLNG 2 Co and such subsidiaries; and / or -- $200,000 in non-convertible, preferred equity issued by FLNG 2 Co. * Corporate governance matters regarding CoreCo; * Letters of credit issued under the Company's existing Letter of Credit Facility or Revolving Facility will be backstopped or replaced by letters of credit issued under new fully committed letter of credit facilities for each of CoreCo and BrazilCo; * Certain other existing debt facilities and other liabilities will be refinanced, renegotiated, or compromised, or will remain outstanding in accordance with their existing terms; * All shares of the Company's Class A common stock outstanding immediately prior to the consummation of the Restructuring Transaction will remain outstanding and will represent 35% of the Company's Class A common stock issued and outstanding following the consummation of the Restructuring Transaction (but before giving effect to shares authorized under an incentive plan for directors, officers and other employees of the Company or any conversion of the CoreCo Convertible Preferred Stock into NFE Class A common stock); and * If required in order to meet a consolidated minimum liquidity threshold ($100,000) on the closing date of the Restructuring Transaction, the Company will offer to all eligible creditors the opportunity to participate in a capital raise, pursuant to which the Company would raise up to $35,000 in aggregate principal amount of additional New CoreCo Term Loans and, to the extent the consolidated minimum liquidity threshold would not be met after giving effect to the additional New CoreCo Term Loans, junior term loans secured by a second-priority lien in an amount so that the consolidated minimum liquidity threshold would be met. Provided certain conditions are met (as set out in the RSA), the Company will pay to holders of or lenders under the debt instruments described above that become Supporting Creditors on or before 5:00 p.m. New York City time on April 8, 2026, an early consent fee in an amount equal to 0.75% of the principal amount of such Supporting Creditors' pro rata claim in: a. the principal outstanding under the 2026 Notes for each supporting holder of 2026 Notes; b. the principal outstanding under the 2029 Notes for each supporting holder of 2029 Notes; c. the principal outstanding under the Term Loan B Credit Agreement for each supporting lender under the Term Loan B Credit Agreement; d. the principal outstanding under the R-1 Revolving Credit Facility for each supporting lender under the R-1 Revolving Credit Facility; e. for each supporting lender under the R-2 Revolving Credit Facility, (i) the principal outstanding under the R-2 Revolving Credit Facility, plus (ii) a share of principal outstanding under the Series I Credit Agreement and the Series II Credit Agreement in proportion to the share of recoveries for lenders under the R-2 Revolving Credit Facility in respect of certain assets of NFE Financing together with a guarantee from Bradford County Real Estate Partners LLC under an intercreditor agreement dated December 6, 2024; f. for each supporting lender under the Term Loan A Credit Agreement, (i) the principal outstanding under the Term Loan A Credit Agreement, plus (ii) a share of principal outstanding under the Series I Loan Debt and the Series II Loan Debt in proportion to the share of recoveries for lenders under the Term Loan A Credit Agreement in respect of the Brazil Collateral under the Brazil Parent ICA; and g. for each supporting holder of the New 2029 Notes, a share of principal outstanding under the Series I Loan Debt and the Series II Loan Debt in proportion to the share of recoveries for holders of the New 2029 Notes in respect of the Brazil Collateral under the Brazil Parent ICA The Company has received strong indications of support for the Restructuring Transaction from holders and lenders representing over 95% of its approximately $5.8 billion principal amount of aggregate indebtedness, including approximately 93% of holders of the 2026 Notes, 87% of holders of the 2029 Notes, 98% of holders of the New 2029 Notes, 100% of lenders under the Term Loan A Credit Agreement, 88% of lenders under the Term Loan B Credit Agreement, and 100% of lenders of the Revolving Credit Facility as of April 1, 2026. A Supporting Creditor's entitlement to the Early Consent Fee will be determined by reference to the aggregate principal amount of notes and loans held by that Supporting Creditor as of the record date specified to creditors for voting under the Restructuring Plans. Such early consent fee will be payable in kind in the form of the consideration to be afforded to such Supporting Creditors under the Restructuring Plans. Separately, the Company has agreed to pay each lender under the Revolving Credit Agreement that agrees to forbear from taking any enforcement action under the Revolving Credit Agreement a standstill fee in an amount equal to 2.00% of the outstanding loans made by such forbearing lender, provided that a simple majority of lenders under the Revolving Credit Agreement agree to forbear. Summary of the CoreCo Convertible Preferred Stock and FLNG 2 Preferred Equity Pursuant to the terms of the RSA, the CoreCo Convertible Preferred Stock will mandatorily convert on the third anniversary of the closing date of the Restructuring Transaction into shares of NFE Class A common stock representing 87% of the fully diluted Class A common stock of NFE as of the closing date of the Restructuring Transaction (after giving effect to the shares of NFE Class A common stock to be issued on the closing date of the Restructuring Transaction and the incentive plan for directors, officers and other employees of the Company). The conversion rate of the CoreCo Convertible Preferred Stock will be subject to customary adjustments for stock splits, distributions, reorganizations and reclassifications, as well as to certain price-based anti-dilution adjustments for subsequent issuances of NFE Class A common stock (or securities convertible into NFE Class A common stock) made by the Company while the CoreCo Convertible Preferred Stock remains outstanding (subject to certain exempt issuances). CoreCo will have the right to redeem or repurchase the CoreCo Convertible Preferred Stock from time to time with certain sources of proceeds enumerated in the RSA. Holders of the CoreCo Convertible Preferred Stock will be entitled, in arrears, to a cumulative quarterly compounding dividend, which will accrue automatically via an increase to liquidation preference, with a cumulative per annum preferred return of 3.0%, 5.0% and 7.0% in each of the three years, respectively, prior to conversion. The CoreCo Convertible Preferred Stock will participate on an as-converted basis in any dividends and distributions on, and vote together with holders of, NFE Class A common stock. The CoreCo Convertible Preferred Stock will be subordinated in right of payment to all existing and future indebtedness of CoreCo and senior in right of payment to all existing and future equity securities of CoreCo. The FLNG 2 Preferred Equity will be issued by FLNG 2 Co at the closing date of the Restructuring Transaction pursuant to the RSA and will reflect economic and structural features substantially similar to those of the CoreCo Convertible Preferred Stock, except as otherwise provided herein. CoreCo will have the right to redeem the FLNG 2 Preferred Equity from time to time with certain sources of proceeds enumerated in the RSA. The Company will not pay any dividends on the FLNG 2 Preferred Equity. The FLNG 2 Preferred Equity will be subordinated in right of payment to all existing and future indebtedness of FLNG 2 Co and senior in right of payment to all existing and future equity securities of FLNG 2 Co. Summary of the New CoreCo Term Loans The Company expects to use the proceeds of the New CoreCo Term Loans to refinance, on a cashless basis, certain of the loans and other obligations outstanding under the Revolving Credit Agreement and Term Loan B Credit Agreement. If necessary, the cash proceeds of up to $35,000 of additional New CoreCo Term Loans will be used to satisfy the consolidated minimum liquidity threshold required by the RSA. The New CoreCo Term Loans will mature five years after the closing date of the Restructuring Transaction and will amortize at a rate of 1% per annum, paid quarterly. The New CoreCo Term Loans will be guaranteed, jointly and severally, on a senior secured basis by each subsidiary that is a guarantor under the Letter of Credit Facility on the closing date of the Restructuring Transaction, and will be secured by substantially the same collateral as the collateral that currently secures the Letter of Credit Facility, subject to certain exceptions, including the Company's FLNG 2 assets. To the extent the minimum liquidity threshold is not satisfied after giving effect to the funding of the New CoreCo Term Loans, the Company is permitted to incur additional indebtedness that will be guaranteed by the same guarantors guaranteeing the New CoreCo Term Loans and secured by a second-priority lien on all of the collateral securing the New CoreCore Term Loans. The New CoreCo Term Loans may be voluntarily prepaid by the Company, in whole or in part, subject to prepayment premiums for optional prepayments equal to 102% of the aggregate principal amount of such term loan prepaid plus accrued and unpaid interest during the first year after the closing of the New CoreCo Credit Agreement, and at par plus accrued and unpaid interest thereafter. The Company will be required to prepay the New CoreCo Term Loans at par with the net proceeds of non-ordinary course asset sales, condemnations and certain other events enumerated in the RSA. Holder Elections Certain holders of debt under the Revolving Credit Agreement and the Term Loan A Credit Agreement may elect to receive their pro rata share of $45,000 in lieu of the BrazilCo Common Equity they would receive in exchange for their debt. Holders of debt under the Revolving Credit Agreement may elect to receive additional New CoreCo Term Loans in lieu of the CoreCo Convertible Preferred Stock they would receive in exchange for their claims, at a rate of 50% of the liquidation preference of the CoreCo Convertible Preferred Stock in aggregate principal amount of New CoreCo Term Loans. In addition, one or more directors and officers of the Company and, potentially, certain Supporting Creditors and/or third-party investors, as determined by such directors and officers, will offer to purchase from holders of debt under the Revolving Credit Agreement and Term Loan A Credit Agreement a limited number of shares of CoreCo Convertible Preferred Stock allocated to such holders (subject to certain terms and conditions, including that the relevant holder timely elects to participate in such arrangements) for a cash purchase price of 25% of the liquidation preference of such shares of CoreCo Convertible Preferred Stock. The Restructuring Plans The Company expects to complete the Restructuring Transaction through restructuring plans promoted by each of two indirect subsidiaries of the Company: (i) NFE Global Holdings Limited and (ii) NFE Brazil Newco Limited under Part 26A of the UK Companies Act 2006 and sanctioned by the High Court of Justice in England. NFE Global will propose a Restructuring Plan that will compromise the debt under the Series I Credit Agreement, Series II Credit Agreement, 2026 Notes, 2029 Notes, Revolving Credit Agreement, Term Loan A Credit Agreement and Term Loan B Credit Agreement and NFE Brazil Newco will propose a Restructuring Plan that will compromise the debt under the New 2029 Notes. The PlanCos will seek recognition of the Restructuring Plans in the United States pursuant to chapter 15 of the U.S. Bankruptcy Code. The Restructuring Plans will bind all relevant creditors, and release the obligations of the Company and all guarantors, under the debt instruments addressed in the Restructuring Plans; however, neither the Company nor any of its subsidiaries other than the PlanCos anticipate being parties to the Restructuring Plans proceedings in the UK High Court, the chapter 15 recognition proceedings or any other restructuring, bankruptcy or insolvency proceeding in connection with the Restructuring Transaction. The RSA sets forth the commitments of the Company and the Supporting Creditors to, among other things, cooperate in good faith to negotiate the definitive documents necessary or advisable to effect the Restructuring Transaction, use their commercially reasonable efforts to consummate the Restructuring Transaction in accordance with such definitive documents, and refrain from taking any actions that would impede or would otherwise be inconsistent with the Restructuring Transaction (including by supporting or consenting to any alternative transaction, subject, in the case of the Company, to a "fiduciary out"). In addition, the Supporting Creditors have agreed to forbear from exercising remedies (or directing or consenting to any such exercise of remedies) with respect to certain specified defaults and events of default under the applicable debt instruments while the RSA is in effect. The parties' obligations to consummate the Restructuring Transaction are subject to the satisfaction of certain conditions, including the UK High Court's entry of an order sanctioning the Restructuring Plans and the recognition of that order in the United States pursuant to chapter 15 of the U.S. Bankruptcy Code, completion of definitive documents acceptable to the parties in accordance with standards set forth in the RSA, approval of certain matters by the Company's stockholders, receipt of required regulatory and third-party consents and approvals, and satisfaction of certain process "milestones". The RSA may be terminated by the Company and/or the Supporting Creditors, as applicable, upon the occurrence of specified events defined in the RSA, including, without limitation, if: (1) a material, uncured breach of certain parties' representations, warranties, covenants, or obligations under the RSA occurs, (2) any of the conditions to the closing of the Restructuring Transaction (including the timely satisfaction of any of the process "milestones" prescribed in the RSA) is not timely satisfied or waived (3) certain issued letters of credit are drawn or (4) the Restructuring Transaction has not closed by September 15, 2026 (which date may be automatically extended by up to 90 calendar days in certain circumstances and further extended with the consent of certain parties in accordance with the terms of the RSA through December 31, 2026). In addition, the Company may terminate the RSA if the Company's board of directors determines, upon the advice of counsel, that the Company's continued performance under the RSA would be inconsistent with the fiduciary duties of the Company's directors. The Company intends to submit certain proposals in connection with the Restructuring Transaction to the Company's stockholders at its 2026 Annual Meeting of Stockholders, including, among other things, an amendment to the Company's Certificate of Incorporation to increase the number of authorized shares of NFE Class A common stock; approval for the potential issuance of common stock exceeding 20% of the current outstanding shares to comply with Nasdaq rules; an amendment to the Company's 2019 Omnibus Incentive Plan to increase the number of shares available for grants; and an amendment to the Certificate of Incorporation to authorize a reverse stock split at a ratio to be determined by the Company's board of directors. The Restructuring Transaction is conditioned upon approval of all of the Stockholder Proposals. Although the Company intends to pursue the Restructuring Transaction in accordance with the terms set forth in the RSA, there can be no assurance that the Company will satisfy all of the conditions under the RSA and complete the Restructuring Transaction as contemplated or at all. If the Company is unable to complete the Restructuring Transaction or any other alternative transactions, the Company will be required or compelled to pursue additional restructuring initiatives to preserve value and optionality, including possible out of court restructurings, or in-court relief, in the UK or the U.S., which could have a material and adverse impact on stockholders. As there are conditions under the RSA that are not in the Company's control, the execution of the RSA does not alleviate substantial doubt that the Company can continue as a going concern. A full text copy of the Company's Form 10-K is available at https://tinyurl.com/52hhstkn About New Fortress Energy Inc. New Fortress Energy Inc., a Delaware corporation, is a global energy infrastructure company founded to help address energy poverty and accelerate the world's transition to reliable, affordable and clean energy. The Company owns and operates natural gas and liquefied natural gas infrastructure, ships and logistics assets to rapidly deliver turnkey energy solutions to global markets. The Company has liquefaction, regasification and power generation operations in the United States, Jamaica, Brazil and Mexico. The Company has marine operations with vessels operating under time charters and in the spot market globally. As of December 31, 2025, the Company had $10.6 billion in total assets, $10.2 billion in total liabilities, and $309.6 million in total stockholders' equity. * * * In November 2025, S&P Global Ratings lowered its issuer credit rating on New Fortress Energy Inc. (NFE) to 'SD' (selective default) from 'CCC'. At the same time, S&P lowered its issue level rating on NFE's 12% senior secured notes due 2029 to 'D' from 'CCC-'. The downgrade reflects NFE's decision to enter into a forbearance agreement. S&P will reevaluate its ratings on NFE before the end of November as more information becomes available. The Company has initiated a process to evaluate its strategic alternatives to improve its capital structure. It has retained Houlihan Lokey Capital, Inc. as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP as legal advisor to assist it in this evaluation. The Company, along with its advisors, is considering all options available, including asset sales, capital raising, debt amendments and refinancing transactions, and other strategic transactions that seek to provide additional liquidity and relief from acceleration under its debt agreements. As part of this process, the Company is engaging in discussions with various existing stakeholders and potential investors. There are inherent uncertainties as the outcome of these negotiations and potential transactions are outside management's control, and therefore there are no assurances that management will be successful in these negotiations and that any of these potential transactions will occur. In addition, there can be no assurances that these transactions will sufficiently improve the Company's liquidity or that the Company will otherwise realize the anticipated benefits. Moreover, if the Company fails to obtain amendments and forbearance, the Company may be required or compelled to pursue additional restructuring initiatives to preserve value and optionality, including possible out-of-court restructurings, or in-court relief, which could have a material and adverse impact on the Company's stockholders. =============== C O L O M B I A =============== ECOPETROL SA: Moody's Cuts CFR to Ba2, Alters Outlook to Negative ----------------------------------------------------------------- Moody's Ratings downgraded Ecopetrol S.A.'s corporate family rating and senior unsecured ratings to Ba2 from Ba1. At the same time, Moody's have affirmed the company's b1 Baseline Credit Assessment (BCA), which reflects its standalone credit strength. The outlook was changed to negative from stable. RATINGS RATIONALE The downgrade to Ba2 and the change in outlook to negative reflect a weaker assessment of support from the Government of Colombia (Baa3 stable), driven by heightened government interference risk and reduced predictability and timeliness of support mechanisms, including payments under the Fuel Price Stabilization Fund (FEPC). As a result, Moody's revised the support assumptions to strong from high. The rating action also incorporates the potential for heightened refinancing risk should Ecopetrol proceed with a material M&A transaction fully funded with debt, particularly if such financing relies on short-term or bridge debt instruments. The Government was expected to settle outstanding FEPC balances related to 1Q25 amounting to approximately COP 1.6 trillion (around $439 million) in late March. Instead, it agreed to an alternative settlement structure consisting of a minimal cash payment representing around 0.2% of the amount due, with the remaining balance—approximately COP 1.56 trillion (around $428 million)—to be settled through Colombian Treasury securities (TES) delivered later in the year, effectively deferring most cash-equivalent value until December 2026. While this reduces uncertainty regarding the State's obligation, the deferral weakens near-term cash flow visibility. In a scenario of sustained high oil prices, FEPC-related obligations could increase if domestic price adjustments lag international parity, which may further elevate working capital needs and liquidity risk if reimbursements continue to be delayed or rely on late-year TES delivery rather than timely cash. Changes in Ecopetrol's senior management structure during the last 12-18 months, including turnover at the executive and board levels, underscore the company's exposure to state-related governance risk. While Moody's do not expect these changes to result in near-term disruption to strategy, operations or financial policy given management continuity, their timing reinforces the perception of heightened political influence, and is a key consideration in the assessment of government-related interference risk within the credit profile. Governance considerations are a key driver of this rating action because the support reassessment is directly linked to heightened perceived government interference and reduced predictability of sovereign-related actions. The affirmation of the b1 BCA reflects Ecopetrol's strong business profile as Colombia's leading integrated oil and gas company, including its scale and strategic role in domestic energy supply, and its growing and diversified contribution from the power transmission business through ISA. The b1 BCA also captures the company's standalone credit fundamentals, including leverage of around 2.5x as of December 2025, an ambitious capital investment program, and shareholder distributions guided by a 40%-60% payout policy, partially offset by rising hydrocarbon production. Ecopetrol's liquidity position is good, supported by a cash balance of approximately COP 12.5 trillion at year-end 2025 (around $2.7 billion) and available liquidity sources. The company has framework agreements and offers for treasury credit facilities totaling between $500 million and $700 million, as well as authorization to access up to COP 5 trillion in treasury credits if needed. Only one committed credit facility is currently in place, a COP 700 billion line with Banco Davivienda available through October 2026. While these sources provide liquidity support, negative free cash flow expected to continue in 2026, sustained capital spending, dividend distributions and potential delays in FEPC-related cash receipts could result in tighter liquidity during 2026 and 2027, despite the absence of significant debt maturities over that period. The negative outlook reflects increased uncertainty around sector policy direction and the consistency of government-related decisions affecting Ecopetrol, including the sustainability and timeliness of support mechanisms embedded in the fuel pricing framework. This uncertainty could weigh on the company's financial and liquidity profile during periods of elevated oil prices and contributes to weaker visibility on medium-term cash flow and funding needs. The negative outlook also captures that any large debt-funded acquisition could increase refinancing risk, particularly if the financing includes short-term debt, until permanent funding is secured. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade is unlikely in the near term given the negative outlook. The outlook could be stabilized if greater certainty emerges around the continuation and reliability of government support, including clear visibility on the timing and consistency of FEPC settlements, alongside sustained strong credit metrics and disciplined financial policy. Further downward pressure could occur if government support proves weaker than currently expected, including further deterioration in the timeliness, predictability, or effectiveness of support mechanisms such as FEPC payments, or if Ecopetrol's standalone profile weakens due to higher leverage, reduced liquidity, or a deterioration in operating performance. PROFILE Ecopetrol, 88.5% owned by the Government of Colombia, is the largest integrated oil and gas company in the country. The company has three business segments, namely hydrocarbons, energies for the transition and energy transmission and toll roads. Its net production averaged close to 672 mboed and total assets amounted to COP $283 trillion on December, 2025. ISA, headquartered in Medellin, Colombia, is an operating holding company with businesses in the electricity transmission, toll roads, telecommunications, and systems management sectors. The company holds direct and indirect ownership stakes in a portfolio of subsidiaries located in Colombia, Brazil, Peru, and Chile. The methodologies used in these ratings were Integrated Oil and Gas published in February 2026. The differential between Ecopetrol's assigned ratings and the scorecard outcome reflects the impact of the Government Policy Factor, which captures the financial risk associated with government taxation and the State's financial dependence on the company. This factor adds two notches to the b1 BCA, adjusting the scorecard-indicated outcome from Ba1 to one notch lower at Ba2. OLEODUCTO CENTRAL: Moody's Cuts CFR to Ba2, Alters Outlook to Neg. ------------------------------------------------------------------ Moody's Ratings downgraded Oleoducto Central S.A.'s (Ocensa) corporate family rating and senior unsecured rating to Ba2 from Ba1. The outlook on all ratings was changed to negative from stable. The rating action reflects the downgrade of Ecopetrol S.A.'s ratings to Ba2 with a negative outlook, as Ocensa's ratings remain constrained by Ecopetrol's credit profile due to ownership and revenue linkages. RATINGS RATIONALE The downgrade of Ocensa's ratings reflects the downgrade of Ecopetrol's ratings, given Ecopetrol's ownership of over 72% of Ocensa through its midstream subsidiary Cenit S.A.S. and its role as the company's main shareholder and primary off-taker, accounting for more than 70% of transported volumes. Ocensa's ratings remain constrained by Ecopetrol's credit profile due to the governance and revenue linkages. As such, governance considerations are incorporated into this rating action. Ocensa's Ba2 ratings reflect its very low financial leverage, leading position in Colombia's midstream sector, regulated tariff framework, and stable and predictable cash flow generation. These strengths are supported by favorable industry dynamics in Colombia, where pipeline transportation remains the preferred mode given the country's geography, and by Ocensa's strategic importance within the national oil transportation system. The ratings also incorporate adequate corporate governance practices, including independent board representation and minority shareholder veto rights over key decisions related to capital structure, dividends, capital spending and asset sales. These strengths are balanced by Ocensa's exposure to shareholder influence from Ecopetrol, its high dividend payout policy, single-asset nature, and small scale relative to global midstream peers. Consequently, its ratings remain subject to the same government-related risks affecting Ecopetrol. Ocensa has good liquidity, supported by available cash, including approximately $330 million in cash and short-term investments, and continued cash generation from operations. The company's capital spending over the next few years is expected to remain low and largely limited to maintenance and internal projects, supporting free cash flow generation. While these resources would be sufficient to address upcoming obligations, Moody's notes an emerging refinancing risk associated with the $400 million bond maturity due in July 2027. Moody's will closely monitor management's strategy to refinance or repay this maturity, as execution risk around the chosen approach represents a key credit consideration under the current rating level and outlook. Ocensa does not have committed bank facilities but has close relationships with Colombian banks. The negative outlook reflects the negative outlook on Ecopetrol's ratings and the strong link between the two companies. It also incorporates uncertainty around Ocensa's refinancing strategy for the $400 million bond maturing in July 2027, which could increase refinancing risk if market access or funding conditions deteriorate. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Given the negative outlook, an upgrade is unlikely over the next 12 to 18 months. However, if Ecopetrol's outlook is revised to stable, Ocensa's outlook would also be stabilized, reflecting the close linkages between both companies. Over the longer term, an upgrade of Ocensa's ratings would require an upgrade of Ecopetrol's ratings, the successful resolution of the refinancing risk associated with the $400 million bond maturing in July 2027, and the maintenance of strong credit metrics at Ocensa, including low leverage and solid liquidity, as well as shareholder distributions that are more aligned with bondholder protection. Further downward pressure on the ratings could result from a downgrade of Ecopetrol's ratings, a material increase in leverage, weaker liquidity, or heightened refinancing risk associated with the July 2027 bond maturity if the company fails to implement a clear and credible refinancing or repayment plan. Profile Ocensa is the largest crude oil pipeline and the only public-use pipeline in Colombia. Its pipeline is about 848 kilometers (km) long (836 km on land and 12 km offshore) with 745,000 barrels per day (bpd) of nominal capacity and 607,000 barrels per day of average volume. Ocensa connects the country's largest crude-producing fields in the Llanos Basin at the Cusiana offloading facility to export facilities at Covenas on the Caribbean coast. The company is 72.7% owned by Ecopetrol through its wholly owned midstream subsidiary, Cenit SAS, the remaining 27.3% belong to a joint venture between Romero Group and I Capital Square, a private equity firm. As of December 2025, the company's assets amounted to more than $1.84 billion. The principal methodology used in these ratings was Midstream Energy published in October 2025. The differential between Ocensa's assigned ratings and the scorecard outcome reflects the constraint imposed by Ecopetrol S.A.'s credit quality. Ocensa's ratings remain capped by the rating of Ecopetrol, its main shareholder and primary off-taker, which accounts for more than 70% of the company's volume capacity. =========== M E X I C O =========== BANAMEX: S&P Rates New Tier 2 Sub Notes for Up To $1.3BB 'BB' ------------------------------------------------------------- S&P Global Ratings assigned its 'BB' issue-level rating to Tier 2 subordinated notes for up to $1.3 billion proposed by Banco Nacional de Mexico S.A. (Banamex; BBB/Stable/A-2). The bank will use the proceeds from the offer to strengthen its regulatory capital ratios and for financing needs. The rating on the bank's notes is three notches below the long-term issuer credit rating reflecting the following factors: -- Contractual subordination to other senior debt -- A discretionary and mandatory nonpayment clause, which allows the instrument to defer coupon payments -- A mandatory contingent capital clause, which would lead to a principal write-down S&P said, "We're also assigning minimal equity content to the Banamex Tier 2 hybrid instrument and, therefore, it's ineligible for inclusion in our total adjusted capital calculation. In our view, this issuance wouldn't have characteristics of a going-concern contingent capital--it would have more loss-absorption characteristics at the point of nonviability--and the residual life would be shorter than the required residual life to be eligible for intermediate equity according to our methodology (above 15 years). "Our forecast for the bank's consolidated risk-adjusted capital ratio is 12% on average for the next 24 months, and our strong capital and earnings assessment remains unchanged. "Similarly, the proposed notes don't affect our view of Banamex's funding and liquidity assessments. The new issuance will represent less than 1% of the bank's total funding, so customer deposits will remain its main source of funding--representing around 83% of its total funding base as of year-end 2025. The remainder comes from money market instruments (11%), credit facilities (4%), and repurchase agreements (2%). "We expect the bank's stable funding ratio to progressively narrow but remain well above 100% as the bank gradually executes its growth strategy and business expansion plans in 2026 and 2027. The ratio reached 120.6% as of year-end 2025. "Our liquidity assessment remains supported by the bank's broad liquid assets to short-term wholesale funding of 6.2x as of year-end 2025, and a three-year average of about 5.2x. Also, we believe Banamex has a manageable debt maturity profile with limited refinancing risk. Finally, we believe the bank has sound access to debt capital markets as an additional funding source if needed." =========== P A N A M A =========== BANISTMO SA: Moody's Cuts Deposit & Unsecured Debt Ratings to Ba2 ----------------------------------------------------------------- Moody's Ratings downgraded Banistmo, S.A.'s (Banistmo) long-term foreign-currency deposit and senior unsecured debt ratings to Ba2 from Ba1. Moody's also downgraded the bank's long-term counterparty risk rating and counterparty risk assessment to Ba1 and Ba1(cr), from Baa3 and Baa3(cr), respectively. In addition, Banistmo's baseline credit assessment (BCA) and adjusted BCA were downgraded to ba2 from ba1, while the short-term counterparty risk rating and counterparty risk assessment were downgraded to Not Prime and Not Prime(cr) from P-3 and P-3(cr), respectively. The short-term deposit rating was affirmed at Not Prime. The outlook on the bank's long-term deposit and senior unsecured debt ratings remains negative. RATINGS RATIONALE The downgrade of Banistmo's deposit rating to Ba2 reflects the bank's persistently high asset risks, which have remained elevated since 2021 with no clear signs of improvement, reflecting the bank's high exposure to the troubled construction sector and its high single name concentrations. The Ba2 deposit rating remains supported by the bank's solid capitalization sustained over the past five years and its sizable core deposit base, with a market share of 8% of total local deposits in Panama as of December 2025. Banistmo's asset quality has shown only marginal improvement over the past four years. Problem loans—measured by Stage 3 exposures—eased slightly but remain elevated at 9.8% of gross loans as of December 2025, from a peak of 10% at year-end 2021. Banistmo's 90-days-past-due loan ratio also remains materially above the Panamanian banking system average, standing at 7.0% versus 2.4%, as of the same date. This reflects the bank's high single-name concentration and its sizable exposure to the construction sector, as well as the contraction in loan volumes since 2023. Moreover, Banistmo's loan-loss reserve coverage has trended downward since 2023 and remained low at about 50% of problem loans in 2025. This weakness is only partly mitigated by Banistmo's high level of collateralization, at around 60% of the loan portfolio. Low liquidity in case of financial stress and lengthy enforcement processes reduce the effectiveness of collateral. Profitability improved in 2025, largely driven by a sharp reduction in loan loss provisions, despite a further increase in 90 day past due loans and Stage 3 exposures. Provisions declined to 0.7% of gross loans and 29% of pre provision income during 2025, compared with 1.6% and 68%, respectively, a year earlier. As a result, net income to tangible banking assets rose to 1.0% in 2025, from 0.4% for full year 2024 and above the 0.8% average recorded between 2021 and 2023. Moody's do not expect a material improvement in profitability in the near term, given the continued contraction of the loan book, persistent margin pressures, and estimated higher provisioning needs. Capitalization remains a key credit strength supporting Banistmo's ba2 BCA, with tangible common equity to risk-weighted assets at 13.7% in December 2025, in line with historical levels and providing a buffer against elevated asset risk. Also, as Panama's third-largest bank by deposits, Banistmo benefits from a sizable core deposit base, at 80% of total liabilities as of year-end 2025. However, deposit growth has lagged system trends over the past five years, reflecting intense competition and contributing to a gradual loss of market share. Funding costs also remain elevated due to the bank's greater reliance on institutional clients, with term deposits accounting for 62% of total deposits at year-end 2025, well above the system average, constraining funding cost flexibility going forward. OUTLOOK REMAINS NEGATIVE The negative outlook reflects the bank's persistently elevated asset risks, characterized by high problem loan levels, modest reserve coverage, and difficulties in realizing collateral values amid financial stress. In addition, sustained contraction in business volumes, ongoing margin compression, and expected higher provisioning requirements are likely to continue weighing on the bank's overall financial strength. In this context, the announced sale of Banistmo by Colombian Grupo Cibest S.A. (Ba2 stable) to Inversiones Cuscatlán Centroamérica, S.A. on December 18, 2025 introduces execution and integration risks, particularly given Panama's highly competitive banking environment, characterized by elevated funding costs that continue to constrain loan growth capacity. Banistmo's Ba2 deposit rating currently incorporates Moody's assumptions of a moderate likelihood of support from Grupo Cibest while the transaction awaits regulatory approval. However, this expectation of affiliate support does not result in any ratings uplift for Banistmo. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The BCA could be further downgraded if execution risks from the change in ownership materialize and Banistmo's asset quality does not recover during the outlook horizon, or if the bank were to experience significant deterioration in capitalization, funding conditions or profitability levels as it awaits for regulatory approvals. Evidence of increased risk appetite, for example, above-peer average loan growth or a notable increase in lending concentrations, would also be negative for the BCA. While an upgrade of Banistmo's BCA and ratings is unlikely over the next 12 to 18 months given the negative outlook, the bank could return to a stable outlook if Moody's observes a faster-than-expected recovery in asset quality, alongside steady capitalization and profitability. The principal methodology used in these ratings was Banks published in November 2025. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. ============= U R U G U A Y ============= [] Moody's Takes Actions on 3 Uruguayan Banks --------------------------------------------- Moody's Ratings has taken rating actions on three Uruguayan banks as a result of recent improvements in the country's macroeconomic conditions that have offered a more supportive operating environment for banks included in this rating action, particularly reflected in the strengthening of their financial profiles. In line with this, Moody's raised to 'Moderate+', from 'Moderate', the Macro Profile for Uruguayan banks. RATINGS RATIONALE (1) CHANGE OF URUGUAYAN BANKS' MACRO PROFILE REFLECTS IMPROVING OPERATING CONDITIONS The operating conditions of Uruguayan banks are improving on consistently low levels of inflation, which have remained at low-single digits since the second-half of 2023, a resilient labor market and a growing minimum wage in real terms. In addition to these positive developments, the current easing monetary cycle supports borrowers' ability to pay loans in 2026. As a result, banks will likely maintain low levels of loan delinquencies, in line with those of the past five years, while loan-loss reserve buffers support banks' capacity to absorb potential credit losses. At the same time, efforts from the government to reduce dollarization, if successful, would improve the effect of monetary and fiscal policies in the country. Uruguayan banks also benefit from the country's high income levels and the Government of Uruguay's (Uruguay, Baa1 stable) strong institutions and effective governance. Low exposure to political and external event risk, supported by high foreign exchange reserve buffers, further strengthen banks' operating conditions. The Uruguayan banking system still shows large concentration of loans by the two government-owned banks, with a combined market share of 34% in December 2025. In addition, Uruguayan banks have ample access to more-stable low-cost core deposits, and while banks are also exposed to a large volume of dollar-denominated deposits, government efforts to reduce dollarization continue. The banks' large volume of liquid assets, mainly in foreign currency securities, helps to mitigate funding risks. The increase of Uruguayan banks' Macro Profile to 'Moderate+', from 'Moderate', reflects recent improvements to the operating environment of the banking system, which leads to upward pressure on the standalone credit profiles of the affected banks. (2) BANK-SPECIFIC CONSIDERATIONS BANCO DE LA REPUBLICA ORIENTAL DEL URUGUAY The upgrade of Banco de la Republica Oriental del Uruguay's (BROU) Baseline Credit Assessment (BCA) to baa1, from baa2, reflects the bank's improved creditworthiness in the context of stronger operating conditions for Uruguayan banks. BROU's BCA of baa1 reflects asset quality metrics that have declined in 2025 compared with previous years, driven by consistent growth in lending, while the bank has also maintained broadly steady levels of problem loans. The upgrade also reflects BROU's adequate capitalization, large access to steady low-cost retail deposits and ample volume of liquid assets. The affirmation of BROU's long-term deposit ratings at Baa1 reflects: (1) the bank's standalone BCA of baa1; and (2) Moody's unchanged assessment of the highest level of government support (government-backed) to BROU because the bank is wholly-owned by the Uruguayan government and its systemic importance. Despite government support considerations, BROU's deposit ratings receive no uplift from its BCA of baa1 because they are at the same level as Uruguay's sovereign rating. BANCO HIPOTECARIO DEL URUGUAY The upgrade of Banco Hipotecario del Uruguay's (BHU) BCA to baa2, from baa3, reflects the bank's improved creditworthiness in the context of stronger operating conditions for Uruguayan banks. In addition, BHU's BCA of baa2 incorporates the bank's consistent track record of strong asset quality, robust regulatory capital metrics and a stable access to granular, low-cost, peso-denominated core deposits. These strengths are counterbalanced by a small diversification of revenue stemming from its specialized operation as a mortgage lender. The affirmation of BHU's long-term deposit ratings at Baa1 reflects: (1) the bank's standalone BCA of baa2; and (2) Moody's unchanged assessment of the highest level of government support (government-backed) to BHU because the bank is wholly-owned by the Uruguayan government, which results in one notch of uplift to its deposit ratings from its BCA of baa2. BANCO ITAU URUGUAY S.A. The upgrade of Banco Itau Uruguay S.A.'s (Itau Uruguay) BCA to baa2, from baa3, reflects the bank's improved creditworthiness in the context of stronger operating conditions for Uruguayan banks. Itau Uruguay's BCA of baa2 also incorporates the bank's track record of consistent asset quality metrics through economic cycles, stemming from the prudent management of credit risk and a loan book with large participation of low-risk corporate clients. In addition, the bank's steady access to granular low-cost dollar-denominated deposits and good liquidity position provide support to its financial profile. The upgrade of Itau Uruguay's long-term deposit ratings to Baa2, from Baa3, reflects: (1) the bank's standalone BCA of baa2; (2) Moody's unchanged assumption of a high probability of support from its parent Itau Unibanco S.A. (Ba1 stable, ba1 BCA), which results in no uplift to the bank's Adjusted BCA of baa2; and (3) Moody's unchanged assessment of a low probability of government support, which results in no further uplift to the bank's deposit ratings. The stable outlooks on the long-term deposit ratings of BROU, BHU and Itau Uruguay reflect Moody's expectations that the banks' credit profiles will remain broadly unchanged over the next 12-18 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The long-term bank deposit ratings of BROU and BHU are unlikely to be upgraded unless the sovereign rating is upgraded. Positive pressure on BROU's standalone BCA is unlikely to materialize in a BCA upgrade because it is now capped by the sovereign rating. For BHU and Itau Uruguay, upward pressure to their BCAs could depend upon an improvement in the individual issuers' credit fundamentals and the sustainability of a positive trend. Conversely, downward pressure on the three banks' standalone BCAs and/or deposit ratings could derive from a downgrade of Uruguay's sovereign rating, although unlikely at this point considering the stable outlook on the rating. In the absence of a sovereign downgrade, downward pressure on these banks' BCAs could arise from sudden changes in financial strategy that could result in an unexpected drop of capital and profitability levels, or asset quality disruptions. LIST OF AFFECTED RATINGS Issuer: Banco de la Republica Oriental del Uruguay Upgrades: Adjusted Baseline Credit Assessment, Upgraded to baa1 from baa2 Baseline Credit Assessment, Upgraded to baa1 from baa2 Affirmations: LT Counterparty Risk Assessment, Affirmed A3(cr) ST Counterparty Risk Assessment, Affirmed P-2(cr) ST Bank Deposits (Foreign Currency), Affirmed P-2 ST Bank Deposits (Local Currency), Affirmed P-2 LT Bank Deposits (Foreign Currency), Affirmed Baa1 STA LT Bank Deposits (Local Currency), Affirmed Baa1 STA Outlook Actions: Outlook, Remains Stable Issuer: Banco Hipotecario del Uruguay Upgrades: Adjusted Baseline Credit Assessment, Upgraded to baa2 from baa3 Baseline Credit Assessment, Upgraded to baa2 from baa3 Affirmations: ST Counterparty Risk Assessment, Affirmed P-2(cr) LT Counterparty Risk Assessment, Affirmed Baa1(cr) ST Bank Deposits (Foreign Currency), Affirmed P-2 ST Bank Deposits (Local Currency), Affirmed P-2 LT Bank Deposits (Foreign Currency), Affirmed Baa1 STA LT Bank Deposits (Local Currency), Affirmed Baa1 STA Outlook Actions: Outlook, Remains Stable Issuer: Banco Itau Uruguay S.A. Upgrades: Adjusted Baseline Credit Assessment, Upgraded to baa2 from baa3 Baseline Credit Assessment, Upgraded to baa2 from baa3 LT Counterparty Risk Assessment, Upgraded to Baa1(cr) from Baa2(cr) ST Bank Deposits (Foreign Currency), Upgraded to P-2 from P-3 ST Bank Deposits (Local Currency), Upgraded to P-2 from P-3 LT Bank Deposits (Foreign Currency), Upgraded to Baa2 STA from Baa3 STA LT Bank Deposits (Local Currency), Upgraded to Baa2 STA from Baa3 STA Affirmations: ST Counterparty Risk Assessment, Affirmed P-2(cr) Outlook Actions: Outlook, Remains Stable PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Banks published in November 2025. For BROU and Itau Uruguay, the net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. BHU's "Assigned BCA" score of baa2 is set three notches below the "Financial Profile" initial score of a2 to account for the issuer's monoline operation in mortgage lending, as well as negative pressure on profitability resulting from earnings volatility stemming from its narrow business model. ********* 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 * * *