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260511.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, May 11, 2026, Vol. 27, No. 93 Headlines A R G E N T I N A ARGENTINA: Auto Parts Industry Feels Pain From Shock Therapy B R A Z I L AEGEA SANEAMENTO: Moody's Cuts CFR to B2, On Review for Downgrade BANCO MASTER: Vorcaro Submits Plea Deal Exhibits in Fraud Probe BANCO NACIONAL: Moody's Affirms Ba1 Deposit Rating, Outlook Stable PETROPERU: Refineries Risk Halt; Peru Confidence Drops SAO PAULO: Moody's Affirms Ba1 Issuer Ratings, Outlook Stable J A M A I C A CAC 2000: Seeks Debt Refinancing as Losses Widen FOSRICH COMPANY: Incurs Significant Decline in Fin'l. Performance JAMAICA: BoJ Provides J$3BB in Liquidity Support to Institutions M E X I C O BANCO NACIONAL: Moody's Rates Tier 2 Subordinated Notes 'Ba1 (hyb)' SAAVI ENERGIA: Fitch Puts BB-' Long-Term IDR on Watch Positive P E R U RUTAS DE LIMA: S&P Discontinues 'D' Debt Rating P U E R T O R I C O ASOCIACION HOSPITAL: Gets Extension to Use BPPR's Cash Collateral PEREZ MENENDEZ: Case Summary & 20 Largest Unsecured Creditors V E N E Z U E L A VENEZUELA: Inflation Rate Eases to 10.6% in April - - - - - ================= A R G E N T I N A ================= ARGENTINA: Auto Parts Industry Feels Pain From Shock Therapy ------------------------------------------------------------ Nicolas Misculin at Reuters reports that President Javier Milei's aggressive economic reforms -- including slashing import barriers and presiding over a stronger peso -- have helped stabilize the economy. But for many small and mid-sized manufacturers long shielded from foreign competition, the adjustment has been sudden and painful, the report says. Imports of auto parts rose 11.6% in 2025 from a year earlier to about $10.32 billion, according to industry group AFAC, notes Reuters. Exports, mostly to neighboring Brazil, rose just 1.2% to roughly $1.28 billion, the report discloses. Imports from China, meanwhile, jumped 80.9% on a year-over-year basis to $1.46 billion, though Brazil remained the top supplier, the report says. "It is worrying. We feel the impact of (duty-) free imports from so many brands," said Lucas Panarotti, a partner at Suspenmec, as he stood beside idle machinery at ⁠the factory, the report relays. Other auto parts makers, including Sweden's SKF and U.S.-based Dana, have shut some of their plants in Argentina, the report discloses. Local manufacturers' struggles are reflected in a decline in auto parts output, which fell 22.5% in the first two months of this year from the same period in 2025, according to government statistics agency INDEC, which did not specify volumes, the report relates. Vehicle production, which reached 490,000 units in 2025, fell 19% in the first quarter of 2026 from a year earlier, the report notes. "It is a turning point. We very quickly entered a new ecosystem, where the opening of the economy and international trade has put pressure on Argentine industrial companies," said Nicolas Ballestrero, the CEO of Grupo Corven, which has experienced a decline in output and exports this year, the report says. Experts say Argentina's auto industry must specialize and expand exports to adapt. Andres Civetta, an economist specializing in the industrial sector at consulting firm Abeceb, estimates the country could eventually export about 400,000 light commercial vehicles annually, up from the roughly 280,000 shipped last year, mainly to Brazil and other Latin American markets, the report notes. Argentina's government did not respond to a request for comment. Delicate Balance For Milei The situation in the auto ‌parts sector ⁠reflects a broader trend that is benefiting large commodity exporters while much of Argentina's domestically focused industry is struggling, the report relays. Although the South American country's trade surplus climbed to $2.5 billion in March, 24,180 companies, or about 5% of the total that were open for business, closed between November 2023, just before Milei took office on a right-wing libertarian agenda, and January of this year, according to consultancy Fundar, the report notes. While INDEC data show economic activity fell 2.1% in February from a year earlier, sectors including mining, agriculture and fishing experienced rises of between 8% and 15%, the report says. Manufacturing, however, saw a drop of 8.7% and retail commerce was down 7%, the report relays. "With a peso that ⁠has appreciated 10% versus last December, implying 10% dollar inflation, there will be many difficulties for companies that produce and compete with imports to do so successfully," said Ricardo Delgado, an economist who heads consulting firm Analytica, the report discloses. Delgado, who expects around 2% economic growth in Argentina in 2026, said the biggest issue is that sectors hurt by Milei's economic model generate more jobs and tax revenue than others, potentially undermining a fiscal surplus prized ⁠by the government, the report says. It is a delicate balance for Milei ahead of his re-election bid next year. A poll by consulting firm Giacobbe & Associates shows his approval rating at 36%, down nearly six percentage points from March, the report relates. The Torcuato Di Tella University government confidence index fell to 2.02 points in April, down 12% from the previous month's reading, the report discloses. The index is measured on a scale of zero ⁠to 5, the report says. Factories also are being squeezed by weakening demand after Milei's austerity drive to curb high inflation reduced Argentines' purchasing power, the report relays. The downturn has dented the labor market, the report notes. Unemployment rose to 7.5% in the fourth quarter of 2025, from 6.4% a year earlier. The auto parts sector alone lost about 5,000 jobs in 2025, or 10% of its workforce, AFAC data show, the report adds. Analysts said joblessness would be higher if not for laid-off workers moving into informal employment, such as ride-hailing driving, the report says. 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. Fitch Ratings on May 5, 2026, has upgraded Argentina's Long-Term Foreign Currency and Local Currency Issuer Default Rating (IDR) to 'B-' from 'CCC+'. The rating Outlook is Stable. Fitch said Argentina's rating reflects structurally improved fiscal and external balances, progress on economic reforms, improved prospects for FX reserve accumulation, and its expectation that the government will secure adequate financing to cover debt obligations. S&P Global Ratings on Dec. 17, 2025, raised its local currency sovereign credit ratings on Argentina to 'CCC+/C' from 'SD/SD', and its long-term foreign currency sovereign credit rating to 'CCC+' from 'CCC'. S&P affirmed its 'C' short-term foreign currency rating. The outlook on the long-term ratings is stable. 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. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. =========== B R A Z I L =========== AEGEA SANEAMENTO: Moody's Cuts CFR to B2, On Review for Downgrade ----------------------------------------------------------------- Moody's Ratings downgraded to B2 from Ba3 AEGEA Saneamento e Participacoes S.A.'s (AEGEA, or 'the company') long-term Corporate Family Rating. At the same time, Moody's downgraded to B3 from B1 Aegea Finance S.a r.l.'s (Aegea Finance) backed senior unsecured foreign-currency notes due in 2029 and 2031. The ratings remain on review for downgrade. The downgrade follows the repeated delays in publishing audited fiscal-year 2025 financial statements and material accounting restatements for prior periods, including fiscal 2024, which have increased the company's leverage, reduced financial covenants headroom, and heightened governance risk. RATINGS RATIONALE The two-notch downgrade of AEGEA's B2 CFR reflects a material decline in the group's financial flexibility, higher leverage, and a perceived weakening of corporate governance, translating into lower confidence in the reliability of historical financial information and the robustness of internal controls. This has materially increased the company's credit risk, particularly in the context of an intensive investment cycle that constrains near-term cash generation. These pressures are partly offset by the company's resilient operations, a geographically diversified portfolio of long-term concession contracts, and predictable underlying demand in Brazil's water and sanitation sector. Aegea Finance's ratings were downgraded to B3, a notch lower than the company's CFR due to higher liquidity risk at the holding company, limited access to dividends from subsidiaries, and a reduced ability to continue to service debt without outside funds over the next 12-to-18 months. AEGEA's ratings remain on review for further downgrade. As part of the review, Moody's will evaluate management's ability to execute an action plan aimed at strengthening the internal control environment mitigating elevated governance risk. In parallel, Moody's will closely monitor the holding company's liquidity profile and its capacity to generate internal cash flows sufficient to meet debt service obligations on a timely basis. The review will further consider the sustainability of the group's capital structure, the refinancing capacity and its access to capital markets under current conditions. Accounting restatements were mainly related to revenue recognition practices and customer-related estimates in certain concessions, including cases in which earnings recognition was more front-loaded than cash realization. Moody's considers these restatements to be a one-off event, but Moody's recognizes that strengthening the internal control environment will take time and that improvements will not be immediate. At the holding company level, December 2024 shareholders' equity declined to BRL558 million from BRL6.7 billion as previously reported, a reduction of approximately BRL6.1 billion. Reported shareholder's equity dropped further in December 2025 to BRL356 million, significantly eroding the equity cushion available to absorb losses and creating an inadequate capital structure to support future capital needs. On a consolidated basis, net income for 2024 decreased by BRL593 million to BRL1.8 billion, and it dropped to BRL1.3 billion in 2025. These adjustments have contributed to higher leverage, with the AEGEA net debt-to-EBITDA ratio, as calculated for covenant purposes, increasing to 3.0x from 2.8x on a restated basis for 2024, and further rising to 3.8x in 2025, narrowing the headroom under the company's 4.0x covenant threshold. Moody's adjusted projections for AEGEA reflect weaker distributable reserves and reduced capacity to deleverage internally during an intensive investment phase, increasing reliance on external funding. Moody's expects the company to report annual negative free cash flow around BRL7 billion through at least 2029. Absent equity injections, the debt-to-capitalization ratio would deteriorate further to 94.8% by year-end 2027, from 90.0% as of year-end 2025 (as opposed to 85.4% for 2027 in Moody's previous projection). The company remains in compliance with its financial covenants as of December 2025, but faces growing covenant pressure and reduced financial flexibility in upcoming quarters, heightening sensitivity to execution risk and refinancing conditions. Moody's liquidity analysis shows enough cash for debt service for the next four quarters, relying on internal cash generation and capex-committed debt proceeds. The holding company, however, will require external funding during the first half of 2027. This assessment takes into consideration the BRL1.2 billion equity injection in the first quarter of 2026, and the disbursements of BRL2.3 billion from debentures and syndicated loan. Moody's sees the current management team and shareholders committed to enhance transparency within the company's disclosures. According to them, ongoing efforts to reinforce governance practices to ensure timely reporting and covenant compliance are under way. In regard to financial policy, the company remains confident in its deleveraging trajectory and maintenance of compliance with financial covenants in debt agreements, signaling alternative measures such as cost reductions, capex deferrals and the possibility of dividend reductions to reduce near-term liquidity risks. Nonetheless, Moody's currently view significant execution risks related to the financing strategy, which depends on continued access to external sources to fund ongoing investments. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if the company receives a significant equity injection, while improving governance and demonstrating a clear deleveraging path. From a quantitative perspective, a rating stabilization would require debt-to-capitalization to decline to below 85%, while maintaining FFO interest coverage above 1.3x and FFO to debt above 5%. The ratings could be further downgraded if the company's liquidity position weakens to a level at which it can no longer adequately meet its short-term funding needs, or if Moody's perceived increasing probability of debt restructuring implying in a probability of higher losses for senior unsecured creditors. PROFILE AEGEA is one of the largest private water and sewage companies operating basic sanitation assets in Brazil under full or partial concession contracts and public-private partnerships (PPPs). The company is present in 893 municipalities located in 15 states. It serves a population of more than 39 million people. In the 12 months that ended December 2025, AEGEA reported net revenue of BRL18.8 billion. As of April 2026, AEGEA's shareholders are Equipav (52.1% stake), the Government of Singapore Investment Corporation - GIC (34.6% stake) and Itausa S.A. (13.3% stake). LIST OF AFFECTED RATINGS Issuer: AEGEA Saneamento e Participacoes S.A. Downgrades: LT Corporate Family Rating, Downgraded to B2 from Ba3; Placed On Review for further Downgrade Issuer: Aegea Finance S.a r.l. Downgrades: Backed Senior Unsecured, Downgraded to B3 from B1; Placed On Review for further Downgrade The principal methodology used in these ratings was Regulated Water Utilities published in August 2023. 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. BANCO MASTER: Vorcaro Submits Plea Deal Exhibits in Fraud Probe --------------------------------------------------------------- Giullia Colombo, writing for Valor International, reports that lawyers for Banco Master owner Daniel Vorcaro delivered the exhibits attached to his proposed plea bargain agreement to authorities late Tuesday, May 5, in the case investigating alleged fraud in the sale of credit portfolios. Brazil's Federal Police and the Office of the Prosecutor General will now review the material. Investigators may accept, reject, or request additional information. If prosecutors deem the cooperation agreement viable, it will then be submitted to Supreme Court Justice Andre Mendonça, who is overseeing the case. The report notes that in recent weeks, officials involved in the negotiations had expressed skepticism about the usefulness of the material to be presented, given that Federal Police investigations based on seized evidence were already well underway. There were also doubts about Vorcaro's genuine willingness to return resources allegedly obtained through the suspected fraud schemes. Investigators expect Justice Mendonça to approve the agreement only if it contains genuinely new information. Valor contacted Vorcaro's defense team but has received no response, notes the report. Valor recounts that the former banker's lawyers have been preparing the statements since March 19, when they signed a confidentiality agreement to begin discussions about a plea deal. At the time, Vorcaro was transferred from the Papuda prison complex in Brasilia to the Federal Police regional headquarters to negotiate directly with his lawyers. From this cell, Vorcaro and his lawyers composed the proposal, structured into chapters that detail the topics he plans to discuss with authorities in exchange for incentives like a lighter sentence or a more lenient prison regime. Vorcaro was arrested during the fourth phase of Operation Compliance Zero in early March, under orders from Justice Mendonça, amid investigations into alleged crimes, including threats, corruption, money laundering, and illegal access to electronic devices, recalls the report. The investigation focusing on the former banker involves suspicions that Banco Master engaged in fraud during the sale of credit portfolios to Banco de Brasilia (BRB), notes the report. Authorities are also examining claims that social media influencers were hired to attack institutions and officials connected to the bank’s liquidation. Additionally, suspicions have arisen that companies with very low registered capital transferred rights to large receivables to investment funds associated with Banco Master. During the inquiry, authorities found that Vorcaro allegedly led a group that threatened journalists and former staff. The material submitted by the defense is treated as an initial plea-bargain proposal, outlining Vorcaro's intended account for investigators and the benefits he seeks to negotiate, Valor says. Authorities will now assess whether the information has the potential to contribute meaningfully to the investigations. Valor relays that the Federal Police and the Prosecutor General’s Office, which are jointly handling the case, are expected to conduct the formal depositions themselves. The joint arrangement is intended to reduce the risk of future procedural challenges. At the same time, investigators will continue pursuing independent lines of inquiry. It is the authorities’ responsibility to verify the truthfulness of the information provided and to determine whether relevant facts were omitted. Since the start of the investigation, the Federal Police have maintained that a plea bargain would only be justified if it became evident that the former banker held valuable information implicating more influential individuals, Valor says. If such an agreement is formalized, it could imply that Vorcaro might reveal details about institutions and public officials. Messages discovered on his cellphones reportedly indicate connections with authorities in all three branches of government. During the review, the Federal Police and prosecutors are expected to negotiate sentencing terms and asset recovery. As previously reported by Valor, Vorcaro's lawyers stated he was willing to return a substantial amount of R$40 billion, but over a period of up to ten years—a timeline that investigators found too lengthy. Besides Vorcaro, his brother-in-law Fabiano Zettel is also anticipated to pursue a plea bargain, notes the report. Sources close to the case state that both defense teams have been coordinating their statements to strengthen their positions. Meanwhile, Paulo Henrique Costa, the former Banco de Brasília president, has also expressed to the Supreme Court his interest in negotiating a plea agreement, the report adds. About Banco Master Banco Master, S.A., formerly known as Banco Maxima, is a financial institution that provides corporate credit, foreign exchange, and treasury services, and later expanded into real estate credit as well as fund and wealth management activities. The bank began operations in 1974 and broadened its business lines in the mid-1990s as part of its growth strategy within the financial service sector. Banco Master filed a Chapter 15 Petition with the U.S. Bankruptcy Court for the Southern District of Florida on December 10, 2025 (Case No. 25-24568), with the Hon. Scott M Grossman presiding. BANCO NACIONAL: Moody's Affirms Ba1 Deposit Rating, Outlook Stable ------------------------------------------------------------------ Moody's Ratings has affirmed Banco Nacional de Desenvolvimento Economico e Social - BNDES' (BNDES) long- and short-term local and foreign currency deposit ratings at Ba1 and Not Prime, respectively, following the affirmation of the bank's baseline credit assessment (BCA) and adjusted BCA at ba1. Moody's also affirmed the bank's long- and short-term local and foreign currency counterparty risk ratings at Baa3 and Prime-3, respectively, and long- and short-term counterparty risk assessments (CRA) at Baa3(cr) and Prime-3(cr), respectively. The outlook on the long-term bank deposit ratings remains stable. As part of the rating action, Moody's are also affirming the Ba1 long-term local currency issuer rating assigned to the bank's subsidiary BNDES Participacoes S.A. – BNDESPAR (BNDESPAR). The outlook on BNDESPAR's long-term issuer rating was maintained stable. RATINGS RATIONALE The affirmation of BNDES' BCA of ba1 reflects the long-term consistency of its fundamental credit strength through economic cycles, supported by strong asset quality and capital base, as well as steady access to long-term funding. The ba1 BCA also incorporates BNDES' core operating strategy of providing long term financing for infrastructure and public concession projects, supported by a robust pipeline of government led initiatives that has driven four consecutive years of loan growth—bringing the expanded credit portfolio to BRL677 billion in December 2025, its highest level since 3Q16—and is aligned with the government's long term financing priorities, including the new industrial policy (Nova Indústria Brasil) and the growth acceleration program (PAC). In December 2025, BNDES reported good asset quality, with a ratio of 90-day past due loans to total loans of 0.06%, compared to 0.001% one year before. The bank's stage 3 loans under IFRS accounted for 2.33% of gross, slightly lower than 2.66% in March 2025. The bank's inherently low problem loan ratios are supported by strong collateralization, mostly comprised of real guarantees that BNDES requires for direct lending, and by a large share of indirect lending – about 42% of total loans in December 2025 – in which financial institutions hold credit risk. Nevertheless, loan renegotiations remained high during 2021-2025, averaging 5.4% of total loans. Asset risks stand to rise in the next 12 to 18 months, reflecting an increase in loan origination that will likely be broadly in line with the 10.9% average of the past two years. However, Moody's expects a potential rise in BNDES' problem loan ratios to be small. Credit risk in the bank's loan book is mitigated by loan loss reserves at 59.8% of stage 3 loans and 1.4% of total loans as of year-end 2025. The ba1 BCA also reflects fairly consistent profitability metrics in the last four years, backed by loan growth and by non-recurring events, including dividend income from equity investments and gains from the divestment of equity participation in local companies. In 2025, profitability measured as net income to tangible banking assets stood at 2.6%, down from 3.4% one year before, and comparing well relative to the five largest retail banks' combined 1.1%, despite the development bank's inherently lower net interest margins. Moody's expects BNDES' capital metrics to remain solid and supported by recurring profitability in 2026, even as sustained loan growth leads to a gradual decline. As of year-end 2025, BNDES' capitalization was strong, with a tangible common equity to risk weighted assets ratio of 19.96% and a CET1 ratio of 22.58%, providing a comfortable buffer above minimum regulatory requirements. BNDES' low exposure to less-stable funds, at 6.4% of tangible banking assets, is in line with the bank's steady access to long-term funding instruments, which is essential to its development mandate. In December 2025, BNDES' funding structure remained comprised mainly of constitutionally mandated resources from the FAT fund, at about 50% of total funding, providing stable and low-cost long-term financing. BNDES has also continued to diversify its funding mix through domestic market instruments (Letras de Crédito do Desenvolvimento and Letras de Crédito do Agronegócio), and by expanding external funding with multilateral institutions. BNDES' core banking liquidity is moderate, at 12.4% of tangible banking assets. The Ba1 long-term local and foreign currency deposit ratings incorporate Moody's assessments of the highest degree of support from the Government of Brazil (Brazil, Ba1 stable), given that it is BNDES' main shareholder and the bank's strategic importance to the federal government. However, this support does not result in any rating uplift, as the bank's BCA is already aligned with Brazil's Ba1 sovereign rating. The affirmation of BNDESPAR's issuer rating is aligned to the affirmation of the Ba1 long-term deposit ratings assigned to its parent company and sole shareholder BNDES. BNDESPAR's main role is to support the Brazilian capital markets through minority and temporary equity investments in the corporate sector, as well as investments in fixed income instruments. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS BNDES' BCA is aligned with Brazil's Ba1 sovereign rating, reflecting the close links between the bank's standalone creditworthiness and the sovereign's credit position and economic potential. An upgrade of Brazil's sovereign rating could trigger an upgrade of BNDES' ratings. Downward pressure on BNDES' BCA could arise if the bank's financial performance deteriorates significantly driven by sustained deterioration in asset quality and profitability metrics, which could drain its capital position. Downward pressure on BNDES' deposit ratings could derive from a downgrade of Brazil's sovereign ratings. The principal methodology used in these ratings was Banks published in November 2025. BNDES' "Assigned BCA" score of ba1 is set three notches below the "Financial Profile" initial score of baa1 to account for the issuer's modest generation of recurring earnings, reflecting its role as development bank, and the cap of its financial profile by sovereign. PETROPERU: Refineries Risk Halt; Peru Confidence Drops ------------------------------------------------------ Sofia Gabriela Martinez at Rio Times Online reports that Peru's energy and economic outlook deteriorated sharply as state oil firm Petroperu faces refinery shutdowns and the BCRP three-month business confidence index fell to 44.6 points in April, the first negative reading in 2 years. The Iquitos refinery has paralyzed for lack of crude, and Talara (95,000 barrels per day capacity) and Conchan face the same risk if the company cannot secure the $2 billion private loan with state guarantee that former CEO Roger Arevalo Ramirez requested before being replaced on May 2 by Edmundo Lizarzaburu Bolanos, according to Rio Times Online. Petroperu's accumulated losses of $2.5 billion over four years and total debt of $7.9 billion sit alongside a 12-month confidence reading of 51.2 points near neutral, with the crisis landing as Brent above $100 per barrel forces suppliers to demand cash payments, the report notes. A State Oil Company Running Out of Time The Rio Times reports that Petroperu's Iquitos refinery in the Loreto Amazon region paralyzed in late April for lack of crude, with the larger Talara facility in Piura now operating at 60,000 barrels per day against 95,000 nameplate capacity, and the Conchan refinery in Lima also under threat, the report notes. Suppliers have hardened terms to cash-on-delivery, citing global oil-market stress amid Middle East tensions and Strait of Hormuz risks, while accumulated debt to suppliers has reached $2.5 billion alongside total Petroperu obligations of $7.9 billion (with $3.578 billion of short-term debt), the report says. Roger Arevalo told Congress on April 28 that without an immediate $2 billion loan with state guarantee, the country would face fuel shortages within days, warning that "if we don’t take emergency measures, Peru is left without fuel," the report discloses. The report relays that Arevalo was replaced on May 2 by Edmundo Lizarzaburu Bolanos, the 14th CEO in five years and the 4th this year alone, marking continued political instability around the company. Petroperu’s market share collapsed from 51% of national fuel supply in 2013 to 19% in 2026, with sharper concentration in the Amazon (80%) and northern coast (88%), while losing 50% of the Lima market, the report notes. Q1 2026 showed revenue of $770.1 million (-21.43% YoY) and a $133 million quarterly profit, but liquidity remains the binding constraint as 80% of jungle and 88% of northern coast supply ride on Talara and Conchan continuity, the report says. BCRP Confidence: First Negative Reading Since 2024 The Banco Central de Reserva del Peru (BCRP) released its weekly note on May 7 showing three-month business confidence at 44.6 points in April, down 7.4 from March's 52 and the first sub-50 (negative) reading since May 2024. The 12-month confidence indicator also fell sharply to 51.2 points, dropping nearly 9 points in a single month and approaching neutral territory, the report notes. All 12 measured indicators across both 3-month and 12-month horizons showed deterioration, with product-demand expectations falling to 55.6 points (-6) and investment-in-firm to 60.5 points, capturing concerns about the April 12 first-round presidential results that opened a contested run-off path with Keiko Fujimori, the report says. The Political Bind Peru's Congress simultaneously moved to derogate the executive's Decreto de Urgencia 010-2025 that had enabled Petroperu's restructuring path, a 13-bill package agreed in early May that would block private-sector mechanisms and authorize a S/240 million government transfer instead, the report notes. The Energy Commission suspended debate on May 6, but if the package advances, it would require a complete redesign of the financing strategy, the report says. Analysts cited by Gestion attribute the April confidence collapse equally to first-round election noise and to the so-called March black macro shock from oil-price spikes and gas-supply restrictions, the report relays. As reported in the Troubled Company Reporter - Latin America on Feb. 4, 2026, Moody's Ratings has downgraded Petroleos del Peru - Petroperu S.A.'s ("Petroperu") ratings to Caa1 from B3, including its Corporate Family Rating and senior unsecured ratings. At the same time, Moody's affirmed the company's Baseline Credit Assessment (BCA) of ca. The outlook changed to negative from stable. SAO PAULO: Moody's Affirms Ba1 Issuer Ratings, Outlook Stable ------------------------------------------------------------- Moody's Ratings has upgraded the State of Sao Paulo's (Sao Paulo) baseline credit assessment (BCA) to ba1 from ba2 and affirmed its Ba1 long-term Issuer Ratings. The outlook is stable. RATINGS RATIONALE The upgrade of the BCA to ba1 follows the state's formal entry into the federal government's state debt repayment program (PROPAG), as defined in the Brazilian complementary Law 212 as of 2025, which allowed Sao Paulo to reprofile its obligations with the federal government (87% of the total direct debt). Under the PROPAG, the leverage profile will improve because it extends the debt repayment schedule by 30 years (to 2055). It also improves the debt burden given that the state will comply with an extraordinary amortization of 20% of the existing debt with the federal government, (equivalent to BRL 61.4 billion as of December 2025), by offering mainly receivables related to the National Fund for Regional Development (FNDR). Moreover, the state will now pay only inflation (IPCA index) as an interest rate on this debt, easing the cost pressures in the near-term and significantly improving Moody's views on debt affordability. The ba1 BCA further reflects Sao Paulo's large and diverse economy that supports a strong own-source revenue base, its long-term record of balanced fiscal performance, underpinned by the state's prudent fiscal management, and its adequate liquidity. The BCA also takes into consideration the challenges from Sao Paulo's relatively large pension obligations (BRL62.7 billion in 2025) and high indebtedness with a debt burden of 114.2% in 2025. The affirmation of Sao Paulo's Ba1 Issuer Rating considers the combination of its standalone credit profile, as reflected in the ba1 BCA, and Moody's assumptions of a high likelihood of extraordinary support from the Government of Brazil (Ba1 stable). The stable outlook on the State of Sao Paulo's rating is aligned with the stable outlook on the Government of Brazil's (Ba1 stable) rating. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The strengthening of Brazil's credit profile, as reflected by an upgrade of the sovereign rating, would have positive credit implications for the State of Sao Paulo in general via reduction in the systemic risk and exert upward pressure on the ratings. A deterioration of sovereign credit strength would exert downward pressure. Factors such as fiscal slippage, rapidly rising debt levels, or the emergence of significant liquidity risks could also exert downward pressure on the BCA. Additionally, failure to comply with the rules established under the PROPAG framework would exert significant downward rating pressure. The principal methodology used in these ratings was Regional and Local Governments published in May 2024. 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. ============= J A M A I C A ============= CAC 2000: Seeks Debt Refinancing as Losses Widen ------------------------------------------------ RJR News reports that CAC 2000 said it is pursuing a debt refinancing program as it seeks to stabilise its working capital position amid declining revenues and widening losses. The company recorded a net loss of $80 million for the three months ending March this year, compared with a loss of $58.6 million during the corresponding period last year, according to RJR News. Chief Executive Officer Gia Abrahams says the decline in the company's revenue and profitability was driven more by liquidity challenges than weak demand, the report notes. Revenue for the quarter fell sharply to $81.5 million, down from $190.4 million in the same period last year, the report says. Ms. Abrahams says the company currently has approximately $1.4 billion in projects in its pipeline, but insufficient cash flow prevented it from executing those projects during the quarter, resulting in reduced revenues, the report relays. She says the refinancing initiative is aimed at addressing the company's debt obligations, which amount to just under $500 million in loans, the report notes. It also owes suppliers $427.4 million, the report adds. CAC 2000 Ltd. is an air conditioning system supplier in Kingston, Jamaica. FOSRICH COMPANY: Incurs Significant Decline in Fin'l. Performance ----------------------------------------------------------------- RJR News reports that FosRich Company has reported a significant decline in financial performance for 2025, moving from profit to a substantial loss. The company posted a net loss of J$506 million, compared with a profit of $34.6 million in 2024, according to RJR News. Turnover also fell sharply to $2.86 billion, down from $3.68 billion the previous year, the report notes. Administrative and operating expenses remained high at more than $1.35 billion, the report relays. Finance costs also increased, further affecting the company's bottom line, the report says. Earnings per share reflected the downturn, moving to a loss of nine cents, compared with earnings of one cent per share last year, the report adds. FosRich Company Ltd is a distributor of lighting, electrical and solar energy products in Jamaica. JAMAICA: BoJ Provides J$3BB in Liquidity Support to Institutions ---------------------------------------------------------------- RJR News reports that the Bank of Jamaica said it injected J$3 billion in liquidity support to deposit-taking financial institutions. The central bank said it received three bids for the funds, at an average interest rate of 5.57 per cent per annum, according to RJR News. Its latest balance sheet also shows that a total of $4 billion in liquidity support was provided to the financial sector during April, the report adds. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a positive rating outlook. In October 2023, Moody's upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to B1 from B2, and senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has been changed to positive from stable. In September 2024, S&P affirmed 'BB-/B' longterm foreign and local currency sovereign credit ratings on Jamaica and revised outlook to positive. =========== M E X I C O =========== BANCO NACIONAL: Moody's Rates Tier 2 Subordinated Notes 'Ba1 (hyb)' ------------------------------------------------------------------- Moody's Ratings has assigned a Ba1 (hyb) long-term foreign currency subordinate debt rating to the subordinated notes to be issued by Banco Nacional de Comercio Exterior, SNC (CI), the Cayman Islands branch of Banco Nacional de Comercio Exterior, S.N.C. (Bancomext, Baa2 negative, ba2 BCA). The notes will be registered under 144A/Reg S and will be eligible for Tier 2 treatment under Mexico's regulatory framework. These ten-year notes will have a first call date in five years. RATINGS RATIONALE The Ba1 (hyb) rating for the subordinated capital notes, eligible for Tier 2 capital treatment, considers the incremental probability of default of the notes absent extraordinary support from the Mexican government, the bank's sole shareholder, that results from interest deferral provisions tied to capitalization thresholds and a higher loss given default reflecting the subordination of the notes to other claims on the bank. The rating also incorporates Moody's assessments of a high probability of support for the notes from the Government of Mexico (Baa2 negative) should the bank face financial stress. Bancomext has the right to defer but not cancel payment of interest or principal if capitalization ratios fall below 10.5% for the total capital ratio, 8.5% for the Tier 1 (Capital Nivel 1) ratio, and 7% for the Common Equity Tier 1 (Capital Común Nivel 1) ratio. As of December 2025, Bancomext's capitalization ratios were all well above minimum regulatory requirements, with a total capital ratio of 17.05%, and a Tier 1 and a Common Equity Tier 1 ratios both at 14.10%. The notes will constitute Subordinated Preferred Indebtedness (obligaciones subordinadas preferentes, no susceptibles de convertirse en títulos representativos de capital), will rank equally with all of Moody's other Subordinated Preferred Indebtedness, and will be unsecured and not guaranteed. The Ba1 (hyb) rating for these notes considers two notches of subordination from the bank's foreign currency senior unsecured debt rating of Baa2 and benefits from Moody's assessments of high support from the government because of Bancomext's status as an arm of the government, with a specific public policy role to promote the export sector and those industries that attract foreign currency to Mexico. Bancomext also complements commercial banks' products, mainly in initial-stage projects, by offering US dollar long-term financing for investments, rather than short-term working capital in Mexican pesos. Moody's assumptions of support for the subordinated capital notes also considers statutory support from the Mexican government. The support statute is not a blanket guarantee, and, as a result, does not qualify for credit substitution for the subordinated preferred notes when capital ratios fall below their minimum regulatory requirements. Moreover, the government's statutory responsibility (i) only benefits Mexican individuals and both Mexican and foreign institutions, and explicitly excludes non-Mexican individual, (ii) does not include an explicit commitment to ensure timely payment, and (iv) is subject to budgetary restrictions. BANCOMEXT'S ADJUSTED BASELINE CREDIT ASSESSMENT OF ba2 Bancomext's ba2 baseline credit assessment (BCA) captures high single borrower and industry concentrations, which have historically added volatility to asset quality indicators. These risks are mitigated by the ample collateral held on loans and the bank's concentration and provisioning policies. Profitability is modest because of the narrow net interest margin on its products and frequent transfers made to the Mexican federal government. Bancomext benefits from solid access to local capital markets, with the government providing statutory support for all liabilities. Capitalization is adequate and stable in line with the government's focus on maintaining good buffers against minimum capital requirements, even under stress scenarios. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING Upward pressure to the BCA will arise from continued and sustained improvements in Bancomext's profitability and asset quality, and the maintenance of lower provisioning costs as the bank continues to expand and diversify its business focus. An upgrade of Bancomext's Cayman Islands branch subordinated debt rating is unlikely, despite Moody's assessments of high government support, given the negative outlook on the ratings of the Government of Mexico. On the BCA and subordinated debt rating, the downward pressure would be related to consistent asset quality deterioration over the next 12 to 18 months or if capitalization were to fall. The principal methodology used in this rating was Banks published in November 2025. SAAVI ENERGIA: Fitch Puts BB-' Long-Term IDR on Watch Positive -------------------------------------------------------------- Fitch Ratings has placed Saavi Energia S.a.r.l.'s (Saavi) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) of 'BB-' and its USD1.1 billion senior unsecured notes, also rated 'BB-', on Rating Watch Positive (RWP) following the deal announcement with Grupo Mexico, S.A.B. de C.V. (BBB+/Stable). The RWP reflects the potential for an upgrade if Saavi completes its agreement with Grupo Mexico Infrastructure, which will own a 70% stake in Saavi and combine its power generation assets. The transaction would add 770 MW, increasing power generation capacity to 4.5 GW. Fitch expects the deal to materially strengthen Saavi's financial profile through added EBITDA, improving leverage metrics, and increasing cash flow distributions from operating assets for debt service. The resolution of the RWP could take longer than six months. As a holding company, Saavi relies on dividends from Cometa Energia and Tierra Mojada, though ratings remain constrained by high leverage and structural subordination. Key Rating Drivers Pending Transaction Supports Deleveraging: Saavi Energia's announced combination of its power generation assets with those of Grupo Mexico is expected to support deleveraging and improve cash flow available for holdco debt service. Under the agreement, Grupo Mexico will own a 70% stake in the combined entity, while Global Infrastructure Partners will retain 30%. The transaction is subject to customary approvals and is expected to close in 2H26. Fitch expects the transaction assets to generate about USD200 million of annual EBITDA in 2026-2027. In addition, one of Grupo Mexico's assets has USD300 million of amortizing debt due in 2032. On a pro forma basis, Saavi's consolidated leverage should continue to decline as debt at the transaction assets, Cometa and Tierra Mojada, amortizes. The amortizing structure of the opco debt reduces the group's exposure to refinancing risks. Fitch does not expect a material change in financial policy and views integration and execution risks as manageable. Dividend Stream Strengthens: Saavi's ratings are supported by the quality of dividends received from its operating subsidiaries. Following the transaction, the new assets are projected to provide additional upstream cash flow to Saavi of about USD100 million on average in 2026-2027. Fitch also forecasts average annual dividends and distributions from Cometa and Tierra Mojada of approximately USD180 million over the same period. The larger and more diversified dividend stream should strengthen Saavi's cash flow available for holdco debt service. Saavi also benefits from Cometa's and Tierra Mojada's strong market positions, diversified asset bases, and improving credit metrics. Current Ratings: Saavi's ratings are supported by the solid business position of its subsidiaries, Cometa Energía S.A. de C.V. (BBB/Stable) and Tierra Mojada Luxembourg II S.a.r.l. (notes: BBB-/Stable). Saavi relies exclusively on subsidiary dividends to service debts. The ratings are limited by high consolidated leverage and structural debt subordination. Peer Analysis Saavi's ratings compare well with those of other holdco utility companies in the region including A.I. Candelaria (Spain), S.A. (A.I. Candelaria; BB-/Stable). These holdcos depend on cash distributions from their respective main subsidiaries, Cometa and Tierra Mojada, and Oleoducto Central S.A. (OCENSA; BB/Stable) to service their financial obligations. A.I. Candelaria ratings are supported by the quality of the dividends received from its 27.35% stake in OCENSA and Ecopetrol S.A. (BB/Stable), which indirectly owns 72.65% of OCENSA. A.I. Candelaria's capital structure gross leverage, measured as the ratio of total debt to dividends received, to be around 4.0x at YE2025. Fitch’s Key Rating-Case Assumptions - Saavi's average annual EBITDA after associates at USD420 million during 2026-2027; - Plants remain contracted until their respective power purchase agreement end date. Excess capacity is assumed to be merchant and excess energy is sold into the wholesale market; - Average total capacity of GW3.7 (includes 100% of Bajío) and average heat rate of 7.48 Wh/MMBTU; - Saavi annual average capex of USD60 million during 2026-2027; - Average annual cash distribution of USD180 from Cometa and Tierra Mojada during 2026-2027, contingent on meeting the required debt service reserve account and 1.2x debt service coverage ratio. Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): - Business and financial profile factors (assessment, relative importance): Management (bbb, Lower), Sector Characteristics (bbb, Moderate), Market and Competitive Positioning (bb, Moderate), Diversification and Asset Quality (bbb, Moderate), Company Operational Characteristics (bbb, Moderate), Profitability (bbb, Moderate), Financial Structure (b, Higher), and Financial Flexibility (bb+, Moderate). - The quantitative financial subfactors are based on custom CRT financial period parameters: 33% weight for the forecast year 2026, 33% for the forecast year 2027 and 34% for the forecast year 2028. - The Governance assessment of 'Good' results in no adjustment. - The Operating Environment assessment of 'bb+' results in no adjustment. - The SCP is 'bb-'. To derive the IDR: - Fitch made no adjustment to the SCP, resulting in a Foreign and Local Currency rating of 'BB-'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Significant additional debt at Cometa or Tierra Mojada that increases the structural subordination and reduces dividends to Saavi; - Leverage measured as debt to cash distributions sustainable above 7.0x over the rating horizon while consolidated leverage measured as total debt to EBITDA above 5.5x on a sustained basis. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade To resolve the RWP: - The completion of the transaction with Grupo Mexico and a clear indication of a conservative financial policy. On a pre-transaction basis: - An upgrade of Cometa's or Tierra Mojada's credit ratings; - Leverage, measured as holdco debt to cash distributions, below 5.0x over the rating horizon while consolidated leverage, measured as total debt/EBITDA, is sustained below 5.0x. Liquidity and Debt Structure Saavi's liquidity is adequate and supported by the consistent cash distributions from its operating subsidiaries, Cometa and Tierra Mojada. Saavi's debt service is limited to interest payments through the medium term as the notes mature in 2035. The opco's liquidity is further enhanced by a committed revolving credit line facility of up to USD485 million with five banks. Of this amount, up to USD80 million can be used for working capital needs at the Cometa level and up to USD200 million at the Tierra Mojada level, with up to USD42.3 million allocated for working capital needs. As of Dec. 31, 2025, Cometa reported USD42 million in cash and cash equivalents while Tierra Mojada reported USD97 million. Issuer Profile Saavi owns 100% of Cometa and Tierra Mojada. Cometa has 2.8 GW in operation with five combined cycle gas plants, three mobile units, one solar plant and three compression plants. Tierra Mojada is a 970 MW combined-cycle gas plant. 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 Saavi Energia. 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 ----------- ------ ----- Saavi Energia S.a r.l. LT IDR BB- Rating Watch On BB- LC LT IDR BB- Rating Watch On BB- senior unsecured LT BB- Rating Watch On BB- ======= P E R U ======= RUTAS DE LIMA: S&P Discontinues 'D' Debt Rating ----------------------------------------------- S&P Global Ratings discontinued its 'D' issue rating on Rutas de Lima's outstanding debt. This follows full acceleration of the debt on March 4, 2026, which triggered full utilization of liquidity reserves. Currently, the toll road project is no longer operational by the concessionaire, and the concessionaire is in liquidation proceedings. Therefore, S&P foresees no viable restructuring process or a future upgrade. In this context, it discontinued the ratings. ===================== P U E R T O R I C O ===================== ASOCIACION HOSPITAL: Gets Extension to Use BPPR's Cash Collateral ----------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Puerto Rico granted the eighth extension of the stipulation between Asociacion Hospital Del Maestro, Inc. and Banco Popular de Puerto Rico to use the secured creditor's cash collateral. The stipulation is extended from April 24 through May 15. During this period, the Debtor is authorized to use up to $226,768 in cash collateral strictly for operating expenses outlined in the budget. The use of funds is tightly controlled; expenditures must fall within defined categories and amounts, and any variance exceeding 10% requires justification and potential budget modification. The agreement also includes a requirement that the Debtor make a $50,000 payment to Banco Popular de Puerto Rico during the period, helping to safeguard the creditor against any decline in the value of its collateral. The authorization to use cash collateral automatically terminates at the end of the extension period or upon any default, and Banco Popular de Puerto Rico is not obligated to permit use beyond the agreed limits. The original stipulation, first approved in September 2025, allowed the Debtor to use the bank's cash collateral to fund operations under agreed conditions, but it has required multiple short-term extensions due to the ongoing nature of the Chapter 11 proceedings. Prior extensions -- seven in total -- were successively approved by the court, each continuing the Debtor's authority to use cash collateral for limited periods while maintaining protections for the bank's secured interests. A copy of the stipulation is available at https://urlcurt.com/u?l=pOSJHK from PacerMonitor.com. About Asociacion Hospital Del Maestro Inc. Asociacion Hospital Del Maestro Inc., also known as Hospital El Maestro, is a nonprofit general medical and surgical hospital located in San Juan, Puerto Rico, that was founded in 1955 to serve the teaching community and has since expanded to provide services to the broader population. The hospital operates about 126 staffed beds and offers emergency care, intensive care, radiology, surgery, hemodialysis, and a range of medical specialties for children and adults. It is accredited by the Joint Commission and functions as a 501(c)(3) organization with a focus on healthcare, education, and community service. Asociacion Hospital Del Maestro Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 25-03780) on August 25, 2025. In its petition, the Debtor reports total assets of $13,396,955 and total liabilities of $39,669,466. Judge Enrique S. Lamoutte Inclan handles the case. The Debtor tapped Wigberto Lugo Mender, Esq., at Lugo Mender Group, LLC as legal counsel; CPA Luis R. Carrasquillo & Co., P.S.C. a financial consultant; and IEC Consulting, LLC as investment consultant. Banco Popular de Puerto Rico, as secured creditor, is represented by Luis C. Marini-Biaggi, Esq. and Carolina Velaz-Rivero, Esq. at Marini Pietrantoni Muniz, LLC. PEREZ MENENDEZ: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Perez Menendez HNOS, Inc. a/k/a Farmacia Garden Hills Plaza Garden Hills Plaza Local 1379 Guaynabo, PR 00966 Business Description: Perez Menendez HNOS, Inc., also known as Farmacia Garden Hills Plaza, operates a retail pharmacy in Guaynabo, Puerto Rico, providing pharmacy services to customers in the area. Chapter 11 Petition Date: April 30, 2026 Court: United States Bankruptcy Court District of Puerto Rico Case No.: 26-01990 Judge: Hon. Mildred Caban Flores Debtor's Counsel: Juan C Bigas, Esq. JUAN C. BIGAS LAW P.O. Box 7011 Ponce, PR 00732-7011 Tel: (787) 259-1000 Fax: (787) 842-4090 E-mail: cortequiebra@yahoo.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Mayra Menendez Rosado 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/GO3YF6A/PEREZ_MENENDEZ_HNOS_INC__prbke-26-01990__0001.0.pdf?mcid=tGE4TAMA ================= V E N E Z U E L A ================= VENEZUELA: Inflation Rate Eases to 10.6% in April ------------------------------------------------- Reuters reports that Venezuela's inflation rate ‌eased to 10.6% in April from 13.1% in March, the country's central bank said. The inflation rate so far in 2026 has reached 90%, the ⁠bank said on its website, while according to Reuters calculations based on central bank figures the annualized inflation rate is 611.86%, according to the report. "Our economy is healthy; it's doing well," the bank's acting president, Luis Perez, said in an interview on state TV, ‌in ⁠which he predicted single-digit inflation for May. Perez added that the bank did not alter figures to make them more positive, the report notes. About Venezuela   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. The capital is the city of Caracas.   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 '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 * * *