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260513.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, May 13, 2026, Vol. 27, No. 95 Headlines A N T I G U A A N D B A R B U D A ANTIGUA & BARBUDA: Economic Expansion Continues, IMF Says A R G E N T I N A ARGENTINA: Fights to Save Huge Soy Exports After Dutch Rejections ARGENTINA: Soyoil Trades at Decade Low to U.S. on Harvest, Biofuels B O L I V I A BOLIVIA: Fitch Assigns 'CCC+' Rating to USD1BB Notes C A Y M A N I S L A N D S GRIFFIN GLOBAL: Fitch Affirms 'BB' Long-Term IDR, Outlook Positive C O L O M B I A FRONTERA ENERGY: Fitch's 'B' Rating on Sr. Unsec Notes on Watch Pos J A M A I C A JAMAICA: Inflationary Shocks to Force Cuts to Standard of Living PORT ROYAL HOTEL: Court Ruling Clears Way For Sale M E X I C O METROFINANCIERA SAPI: Fitch Hikes MTROCB 07U Rating to 'Csf' P U E R T O R I C O INSTITUTO MEDICO: Court Directs U.S. Trustee to Appoint PCO VALLE DEL SUR: Case Summary & Two Unsecured Creditors X X X X X X X X LATAM: Tax Reforms Boosted Revenues in Region in 2024 - - - - - ===================================== A N T I G U A A N D B A R B U D A ===================================== ANTIGUA & BARBUDA: Economic Expansion Continues, IMF Says --------------------------------------------------------- The Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Antigua and Barbuda. The authorities have consented to the publication of the Staff Report prepared for this consultation. Antigua and Barbuda's economic expansion continues. Real GDP grew by an estimated 3 percent in 2025, supported by a pick-up in construction despite slowing tourism activity. Employment has gradually recovered to pre-pandemic levels. Inflation moderated from over 6 percent (year-average) in 2024 to 1.4 percent in 2025. Public debt as a share of GDP declined from 101 percent of GDP in 2020 to an estimated 68 percent in 2025, aided by an improved fiscal position. However, arrears to Paris Club creditors and domestic suppliers are significant and gross financing needs are elevated. The fiscal position strengthened in 2024–25, reflecting both improved tax collection and one-off factors. The 2025 primary balance is estimated at nearly 5 percent of GDP, underpinned by higher tax revenues, stronger inflows under the Citizenship-by-Investment Program (CIP), restraint in current spending, and a modest increase in capital spending. Following a sharp narrowing in 2024, the current account deficit in 2025 returned to trend and is estimated around 11½ percent of GDP. The deficit was predominantly financed by foreign direct investment (FDI), and partly by CIP-related inflows. The overall financial system remains stable and liquid. A steady economic expansion is projected to continue, but risks are tilted to the downside amid heightened global uncertainty. Downside risks stem externally from commodity price volatility and a slowdown in major trading partners and, domestically, from capacity constraints weighing on growth. Upside potential could materialize from stronger tourism demand, improved connectivity, and productivity-enhancing reforms. Executive Board Assessment Executive Directors welcomed Antigua and Barbuda's continued economic expansion, supported by construction activity and resilient tourism, alongside a welcome moderation of inflation. Noting the downside risks from the war in the Middle East and the country’s long-standing debt challenges, Directors called for additional reforms to restore debt sustainability and to strengthen potential growth and climate resilience. Tailored and well-sequenced capacity development by the Fund remains important given the country’s capacity constraints. Directors welcomed the decline in public debt as a share of GDP. Noting that persistent arrears and elevated gross financing needs are constraining access to longer‑term financing and undermining debt sustainability, Directors urged the authorities to develop and implement a credible and comprehensive strategy for addressing all arrears, broadening financing options, and making space for resilience-building investments. Directors also noted the need to continue strengthening cash and debt management to prevent future arrears. Directors underscored the need for further revenue mobilization to rebuild fiscal buffers and meet the authorities’ fiscal objectives. To build on recent gains, Directors recommended broadening the tax base, curtailing exemptions, restraining current expenditures, and strengthening the targeting of social assistance. Directors also encouraged the authorities to continue efforts to strengthen fiscal institutions and enhance fiscal oversight, transparency, and reporting of fiscal and public enterprise data. Directors recognized the regional and national efforts to strengthen financial sector oversight, resilience, and intermediation. For credit unions, they encouraged a shift to risk‑based supervision and efforts to bolster provisioning and capital positions. Continued efforts to strengthen financial deepening, and the AML/CFT and Citizenship by Investment (CIP) frameworks, remain important. Directors encouraged further efforts to enhance connectivity to support trade, tourism, and competitiveness. They also recommended streamlining port and customs procedures, carefully prioritizing and sequencing infrastructure projects, and addressing skills shortages. Directors also underscored the need for improved data to support evidence-based policymaking. ================= A R G E N T I N A ================= ARGENTINA: Fights to Save Huge Soy Exports After Dutch Rejections ----------------------------------------------------------------- Jonathan Gilbert at Bloomberg News reports that Argentina is scrambling to keep its soy cargoes flowing to Europe after an unapproved genetically modified strain was detected in shipments, raising the risk of widespread rejections of the country's most valuable export. Farmers and crushers are going to extra lengths to isolate the drought-resistant soy strain known as HB4 from the rest of the crop, Gustavo Idigoras, president of the CIARA-CEC oilseed processing and export group, said in an interview. While approved in places including Argentina and China, the strain, developed by Bioceres Crop Solutions, lacks authorisation in the European Union, according to Bloomberg News. The alarm follows recent rejections of Argentine soy meal cargoes by the Netherlands after testing detected the HB4 strain, Bloomberg News relates. While the country is the only member of the EU to reject the cargoes so far, it is a primary gateway to the trading bloc, Bloomberg News notes. "Many of the importers in Europe are paranoid right now," Idigoras said, notes the report. CIARA-CEC represents powerhouses of global agriculture trading in Argentina, including Cargill Inc, Bunge Global SA, and Cofco International Ltd, Bloomberg News discloses. Bioceres declined to comment. The stakes for President Javier Milei are significant: Soy exports are projected to have brought in more than US$18 billion last year, Bloomberg News relays. Milei desperately needs similar inflows from this year's harvest to rebuild Central Bank reserves and signal to international bondholders that the cash-strapped nation can meet its debt obligations, Bloomberg News says. The HB4 saga comes as the South American Mercosur bloc and the EU provisionally implement a free-trade deal starting this month while the EU’s top court reviews it. The deal was 25 years in the making and faced fierce opposition from European countries with big farming industries, Bloomberg News notes. To save the soy trade relationship, Argentina’s industry is effectively placing the HB4 harvest under quarantine, Bloomberg News discloses. "We are working with our food safety authority to give assurances that there is a direct trip from all the farms, all the trucks, to one port without crushing facilities to avoid any problem with contamination," Idigoras said, adding that the industry has now geo-located all HB4 soy acreage, Bloomberg News says. "We need to convince importers and the European Commission that we are doing a very good job of having zero HB4," he said. "So far, it is a challenge," he added. Only a few thousand acres of soy fields in Argentina are planted with HB4, which is still in a breeding phase rather than full commercial roll-out, Bloomberg News relays. There is also a breeding programme in Brazil, Bloomberg News discloses. But contamination represents a threat to Argentina’s full 42 million-acre crop given that the EU usually buys about one fourth of all its meal, and farmers are currently in harvest season, Bloomberg News relates. The plan is to send the isolated HB4 harvest unprocessed to China, where the strain is approved, Idigoras said, Bloomberg News notes. Parallel to the efforts to isolate HB4, Argentina's government and soy exporters are lobbying the EU to allow for a certain tolerance by detectors even if Bioceres' low-level-presence application hasn’t yet been approved by Brussels, Bloomberg News says. If Argentina can't convince the EU that its cargoes are compliant, it would seek to relocate them elsewhere, perhaps in Asia, "but at a good price," Idigoras said, Bloomberg News 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. 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. ARGENTINA: Soyoil Trades at Decade Low to U.S. on Harvest, Biofuels ------------------------------------------------------------------- Jonathan Gilbert & Anuradha Raghu at Bloomberg News reports that soybean oil from Argentina, the world's biggest exporter, is trading at the cheapest in at least a decade relative to rival supplies out of the United States, as the harvest on the Pampas crop belt hits full stride and after Washington increased biofuel blending mandates. The discount paid for Argentine soyoil fell to about 24 cents per pound below global benchmark futures on the Chicago Board of Trade, according to Commodity3 data, notes Bloomberg News. That's the lowest level in a series going back to 2016, Bloomberg News relates. The gap was slightly narrower at 23.6 cents. Argentine farmers are collecting a bumper soybean crop forecast to be 48.6 million metric tons, according to the Buenos Aires Grain Exchange, which said in a report that yields in the country's prime growing region are above historical averages, Bloomberg News notes. Processors who turn the beans into oil and feed meal to ship abroad usually snap up supplies and ramp up production at this time of year, Bloomberg News says. The big discount also comes as prices for US soyoil climb after the Trump administration in March implemented bigger biofuel blending requirements that'll boost demand for soyoil and corn ethanol, Bloomberg News relates. Soyoil futures have gained more than 50 percent this year, Bloomberg News 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. 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 O L I V I A ============= BOLIVIA: Fitch Assigns 'CCC+' Rating to USD1BB Notes ---------------------------------------------------- Fitch Ratings has assigned a 'CCC+' rating with a Recovery Rating of 'RR3' to Bolivia's USD1 billion notes maturing on May 14, 2031. The notes have a coupon rate of 9.45%. Proceeds from the sale of the notes will be used for general government financing purposes. Key Rating Drivers Bolivia's Long-Term Issuer Default Rating (IDR) is 'CCC.' The senior unsecured long-term debt ratings are one notch above the applicable long-term IDR, reflecting Fitch's expectation of good recovery prospects in a default scenario as reflected in the 'RR3' Recovery Rating. Fitch typically does not assign Rating Outlooks to sovereigns with a rating of 'CCC+' or below. Bolivia has an ESG Relevance Score (RS) of '5' for both Political Stability and Rights and for the Rule of Law, Institutional and Regulatory Quality and Control of Corruption. These scores reflect the high weight that the World Bank Governance Indicators (WBGI) have in its proprietary Sovereign Rating Model (SRM). Bolivia has a low WBGI ranking at the 22nd percentile, reflecting recent political instability, weak regulatory quality, weak rule of law, a high level of corruption, and moderate voice and accountability. However, the congressional composition following elections in October 2025 could support an easing of political gridlock. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Depletion of usable foreign currency reserves and/or the failure of external loan disbursements to materialize, which hampers debt repayment capacity; and/or evidence of reduced willingness to pay external debt as a means of alleviating current external liquidity pressures - Failure to implement a macroeconomic and fiscal policy adjustment consistent with rebuilding reserves and a sustainable path for public finances. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Rebuilding of international reserves that improves debt service capacity; - Fiscal consolidation and a macroeconomic adjustment program that supports stabilization of the government debt-to-GDP ratio and improves financing flexibility. Date of Relevant Committee 15 January 2026 ESG Considerations Bolivia has an ESG Relevance Score of '5' for Political Stability and Rights as WBGIs have the highest weight in Fitch's SRM and are therefore highly relevant to the rating and a key rating driver with a high weight. As Bolivia has a percentile rank below 50 for the respective Governance Indicator, this has a negative impact on the credit profile. Bolivia has an ESG Relevance Score of '5' for Rule of Law, Institutional & Regulatory Quality and Control of Corruption as WBGIs have the highest weight in Fitch's SRM and are therefore highly relevant to the rating and are a key rating driver with a high weight. As Bolivia has a percentile rank below 50 for the respective Governance Indicator, this has a negative impact on the credit profile. Bolivia has an ESG Relevance Score of '4' for Human Rights and Political Freedoms as the Voice and Accountability pillar of the WBGIs is relevant to the rating and a rating driver. As Bolivia has a percentile rank below 50 for the respective Governance Indicator, this has a negative impact on the credit profile. Bolivia has an ESG Relevance Score of '4' for Creditor Rights as willingness to service and repay debt is relevant to the rating and is a rating driver for Bolivia, as for all sovereigns. As Bolivia restructured public debt in 2006, this has a negative impact on the credit profile. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating ----------- ------ Bolivia senior unsecured LT CCC+ New Rating =========================== C A Y M A N I S L A N D S =========================== GRIFFIN GLOBAL: Fitch Affirms 'BB' Long-Term IDR, Outlook Positive ------------------------------------------------------------------ Fitch Ratings has affirmed Griffin Global Asset Management Holdings, Ltd.'s (Griffin) and its rated subsidiary, GGAM Finance Ltd.'s Long-Term Issuer Default Ratings (IDRs) at 'BB'. The Rating Outlook is Positive. Fitch has also affirmed GGAM Finance Ltd.'s senior unsecured note rating at 'BB'. These rating actions are being taken in conjunction with Fitch's global aircraft leasing sector review. For more information on the sector review, please see "Fitch Ratings Completes Aircraft Lessor Peer Review; Revises Sector Outlook to Deteriorating,". Key Rating Drivers Improved Earnings; Evolving Corporate Structure: The Positive Outlook reflects Griffin's fully unsecured funding profile and good capital discipline, with the leverage ratio continuing to trend in a narrow 2.75x band. Additionally, earnings generation and profitability improved in 2025, but were underpinned by gains on sale from the disposal of select aircraft to a newly established, affiliated but legally and structurally separate Master Trust vehicle (GGAM Master Trust). A one-notch upgrade of the rating could be supported by a sustained increase in net operating income above $150 million, pre-tax return on average assets sustained above 1% and improvement in core profitability, with net spreads approaching 2.5%. While Fitch views recent gains on aircraft sales positively, improving core leasing profitability remains key to sustained earnings strength. Fitch believes the planned refinancing of the firm's $700 million unsecured issuance in 2H26 at lower rates would help to support a higher spread. Additionally, an upgrade depends on stable-to-improving portfolio concentrations with high-quality lessees, given expected higher sales activity and sustaining other key financial performance indicators. These include leverage below 2.75x, a largely unsecured funding profile, and liquidity coverage above 1.2x. Management Experience; Partnership with Bain: Griffin's ratings remain supported by its young fleet, appropriate targeted leverage, its experienced management team, diverse asset sourcing channels, the lack of substantial near-term debt maturities, solid liquidity metrics, and ownership benefits from Bain Capital Credit, LP. Modest Scale: Rating constraints include the company's smaller scale and modest franchise relative to peers, execution risks associated with the company's ambitious growth targets, a more concentrated portfolio by customer and geography, weaker-than-peer profitability, and key person risk associated with founder and CEO Ryan McKenna. Fitch also notes potential governance and conflicts of interest associated with Griffin's externally managed business model, limited number of independent directors, and ownership by fixed-life funds. Sector Constraints: Rating constraints applicable to the aircraft lessor industry include its monoline nature, potential exposure to residual value risks, the reliance on wholesale funding sources, and vulnerability to exogenous shocks, including sensitivity to higher oil prices, inflation and unemployment, which could negatively impact travel demand. Fitch also notes the ongoing Iran conflict and risk of protracted jet fuel shortages. While airlines globally have responded by cutting capacity on less-profitable routes, lessors may still face increased requests for lease deferrals, which, if granted, could negatively impact liquidity and internal capital generation over time. Master Trust as a Disposal Channel: Fitch views GGAM Master Trust as a suitable disposal channel to unlock attractive asset valuations inherent in Griffin's midlife aircraft. However, uncertainty remains about its ability to replenish its portfolio with suitable new assets in the absence of an orderbook, leading to increased concentration risk. Fitch also notes that GGAM Master Trust is a novel structure and its longer-term viability and scalability as a trade sales counterparty is yet to be demonstrated. A more demonstrated track record of Griffin deriving significant franchise benefits from its affiliation with the wider Griffin asset management platform may lead Fitch to apply greater implicit uplift to the business profile assessment, which could be rating positive. Liquid Fleet; Low Impairment Risk: As of March 31, 2026, Griffin's contracted fleet consisted of 52 owned aircraft leased to 18 airlines, with a net book value of around $3.2 billion. Its weighed average (WA) age and WA remaining lease term was 3.1 years and 8.2 years, respectively. Since inception, Griffin has not reported any impairments, which reflects its young fleet and strong lessee quality. Improved Earnings Driven by Gain on Sales: Pre-tax income was $251 million for TTM ended 1Q26, up from negative $21 million a year ago and driven primarily by gains on the sale of 14 aircraft to GGAM Master Trust. Net spreads (lease yields minus funding costs) were 1.6% at 1Q26, up from 1.5% one year ago and above the historic average of 1.2% from 2022 to 2025. Although Fitch expects net spreads to remain lower than most peers, they are likely to improve as average funding costs decline with the refinancing of upcoming maturities at lower rates. Appropriate Leverage: Griffin's leverage (gross debt to tangible equity) was 2.80x as of 1Q26, or 2.65x on a net debt basis, little changed from fiscal YE 2025 and fiscal YE 2024. Management continues to pursue a leverage target (net debt to equity) of 2.75x or below, which Fitch considers appropriate in the context of the underlying portfolio mix, customer concentrations, and liquidity profile. Enhanced Funding Flexibility: Unsecured debt to total debt was 100% at 1Q26, up from 65% at YE 2023. Fitch expects Griffin to continue to opportunistically access the unsecured debt capital markets to fund its operations and manage debt maturities, maintaining greater than 70% unsecured debt on a sustained basis. Maintaining Solid Liquidity: Liquidity resources included $133 million of unrestricted cash and $1.2 billion of availability under the committed RCF as of March 31, 2026. This, coupled with expected operating cash flow over the next 12 months, provided liquidity coverage of 1.3x over contracted acquisitions and debt refinancing over the next 12 months. Fitch expects liquidity coverage to be maintained above 1.2x on a sustained basis. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The Outlook could be revised to Stable from Positive if there is a failure to execute on planned growth targets to further enhance scale and core profitability. In addition, a sustained increase in portfolio concentrations could also result in the Outlook being revised to Stable. Beyond that, a downgrade of the ratings could be driven by: - An inability to generate positive pre-tax income, absent asset sales, on a sustained basis; - Further increase in portfolio concentrations; - Macroeconomic and/or geopolitical-driven headwinds that pressure airlines and lead to additional lease restructurings, rejections, lessee defaults, and increased losses; - A sustained increase in leverage above 4.0x; - A sustained decline in the liquidity coverage ratio below 1.2x; - Griffin's ownership by fixed-life private funds if it leads to elevated capital extractions or if a forced sale of the company at fund maturity impairs Griffin's financial profile, franchise or long-term strategic direction; - An abrupt departure of Griffin's founder and CEO could if the departure impairs its franchise or long-term strategic direction. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - A demonstrated ability to sustain net operating income above $150 million, pre-tax return on average assets above 1.0% and net spreads approaching 2.5% could result in a one-notch upgrade. An upgrade would also be contingent upon: - Greater diversity of airline customers, maintenance of a largely tier 1 profile and low impairments; - Maintenance of a largely unsecured funding profile; - Demonstrated franchise benefits derived from the affiliation with Griffin's wider asset management may lead Fitch to consider greater implicit business profile uplift; - Any potential upward momentum would also be evaluated in the context of potential long-term strategic uncertainty, given Griffin's ownership by fixed-life private funds, and potential governance and conflicts of interest risks associated with Griffin's externally managed business model. DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS The senior unsecured debt rating is equalized with Griffin's Long-Term IDR and reflects Fitch's expectations for average recovery prospects in a stress scenario given the availability of unencumbered assets. DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES The senior unsecured debt rating is primarily sensitive to Griffin's IDR and, secondarily, to the relative recovery prospects of the instruments. A decline in unencumbered asset coverage, combined with a material increase in secured debt, could result in the notching of the unsecured debt ratings downward from the IDR. SUBSIDIARY AND AFFILIATE RATINGS: RATING SENSITIVITIES The rating assigned to GGAM Finance Ltd. is primarily sensitive to changes in Griffin's IDR and is expected to move in tandem. ADJUSTMENTS The Standalone Credit Profile (SCP) has been assigned below the implied SCP due to the following adjustment reason: Weakest Link - Earnings & Profitability. The Asset Quality score has been assigned below the implied score due to the following adjustment reasons: Concentrations; asset performance (negative), Growth (negative). The Capitalization & Leverage score has been assigned below the implied score due to the following adjustment reason: Historical and future metrics (negative). ESG Considerations Griffin has an ESG Relevance Score of '4' for Management Strategy due to the execution risk associated with the operational implementation of the company's outlined strategy. This has a negative impact on the credit profile and is relevant to the ratings in conjunction with other factors. Griffin has an ESG Relevance Score of '4' for Governance Structure due to the potential governance and conflict of interests associated with Griffin's externally managed business model, limited number of independent board members and ownership by a fixed-life private fund structure. This also reflects key person risk related to its founder and CEO, Ryan McKenna, who is leading the growth and strategic direction of the company. This has a negative impact on the credit profile and is relevant to the ratings in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Griffin Global Asset Management Holdings, Ltd. LT IDR BB Affirmed BB GGAM Finance Ltd. LT IDR BB Affirmed BB senior unsecured LT BB Affirmed BB =============== C O L O M B I A =============== FRONTERA ENERGY: Fitch's 'B' Rating on Sr. Unsec Notes on Watch Pos ------------------------------------------------------------------- Fitch Ratings has placed Frontera Energy Corporation's senior unsecured notes on Rating Watch Positive (RWP) at 'B' with a Recovery Rating of 'RR4'. Fitch currently rates Frontera's Long-Term Foreign Currency Issuer Default Rating (IDR) and Local Currency IDR at 'B'. The Rating Outlook is Stable. The RWP follows Parex Resources Inc.'s (B+/Stable) announcement of an agreement to acquire Frontera's upstream assets in Colombia. Under the proposed transaction, Parex would assume all obligations under Frontera's USD310 million in outstanding 2028 unsecured notes. Fitch views the acquisition as credit positive for Frontera's 2028 notes, as bondholders should benefit from a stronger ultimate risk profile. The notes will be upgraded following the completion of the transaction. Key Rating Drivers Notes Benefit from Parex's Stronger Credit Profile: Frontera's senior unsecured notes will be assumed by Parex upon closing of the acquisition and will become general unsecured obligations of an entity with a stronger consolidated credit profile. The notes' credit quality will be strengthened by Parex's greater scale, stronger operating profile and stronger financial profile than Frontera's on a standalone basis. Cross-acceleration provisions further link the notes to Parex's broader capital structure. On April 30, 2026, Frontera announced its shareholders had agreed to divest Frontera Petroleum International Holdings B.V. (its Colombian E&P business along with SAARA and Proagrollanos) to Parex for up to USD500 million, consisting of an upfront cash consideration of USD500 million payable at closing and USD25 million in contingent consideration. The transaction is still subject to regulatory approvals and customary closing conditions and is expected to occur during 2Q26. Parex will assume Frontera's USD310 million 2028 senior unsecured notes and the USD80 million Chevron prepayment facility. Peer Analysis Frontera's credit and business profile are comparable with other small independent oil producers in Colombia (BB/Stable). The ratings of GeoPark Limited (B+/Stable), SierraCol Energy Limited (B+/Stable) and Gran Tierra Energy Inc. (B+/Stable) are all constrained to the 'B' or below category, given the inherent operational risk associated with the small scale and low diversification of oil and gas production. Frontera's eventual focus on infrastructure should provide the company a more predictable and diversified cash flow profile compared to other midstream peers in the country, such as Oleoducto Central S.A. (OCENSA; BB/Stable), which has a stronger financial profile, with leverage of 0.3x over the rating horizon, and larger scale. Fitch’s Key Rating-Case Assumptions - Fitch's price deck for Brent oil prices of USD70 in 2026, USD63 in 2027, and USD60 in 2028 and 2029; - Gross production average of 42,000 boed; - Average USD5 per barrel (bbl) discount to Brent in 2024; average of USD3/bbl between 2025 and 2027; - COGS averaging USD46/boe in 2026; - Net divesture income proceeds of USD500 million; - Dividends payments of USD470 million in 2026; - Annual dividends received from Oleoducto de los Llanos Orientales S.A (ODL) of USD62 million in 2026. Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): - Business and financial profile factors (assessment, relative importance): Management (bb, Lower), Sector Characteristics (bb-, Moderate), Market and Competitive Positioning (b, Moderate), Diversification and Asset Quality (b+, Moderate), Company Operational Characteristics (b-, Higher), Profitability (b+, Moderate), Financial Structure (a+, Lower), and Financial Flexibility (bb, Moderate). - The quantitative financial subfactors are based on custom CRT financial period parameters: 10% weight for the historical year 2025, 30% for the forecast year 2025, 30% for the forecast year 2026 and 30% for the forecast year 2027. - B+ to CC considerations apply in its analysis and result in no adjustment. - The Governance assessment of 'Good' results in no adjustment. - The Operating Environment assessment of 'bbb' results in no adjustment. - The SCP is 'b'. - Fitch made no adjustments to the SCP, resulting in a Foreign and Local Currency IDR of 'B'. Recovery Analysis The recovery analysis assumes Frontera would be a going concern in bankruptcy and it would be reorganized rather than liquidated. Going Concern Approach - A 10% administrative claim; - The going concern EBITDA is estimated at USD290 million. The going concern EBITDA estimate reflects Fitch's view of a sustainable, post-reorganization EBITDA level upon which Fitch bases the valuation of Frontera; - Enterprise value multiple of 4.0x. With these assumptions, its waterfall generated recovery computation (WGRC) for the senior unsecured notes is in the 'RR2' band. However, according to Fitch's Country-Specific Treatment of Recovery Ratings Criteria, the Recovery Rating (RR) for corporate issuers in Colombia is capped at 'RR4'. The RR for the senior secured notes is therefore 'RR4' with a WGRC output percentage at 50%. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Sustainable production size declines below 30,000 boed; - 1P reserve life declines below seven years on a sustained basis; - A significant deterioration of credit metrics to total debt-to-EBITDA of 3.0x or higher; - A persistently weak oil and gas pricing environment that impairs the longer-term value of its reserve base; - Sustained deterioration in liquidity and operating profile, particularly in conjunction with more aggressive dividend distributions than previously anticipated; - A weakened contracted profile that results in greater exposure to commodity price volatility. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - A stronger contract portfolio in the infrastructure business; - Net production of 45,000 boed or more, with a 1P reserve life of at least seven and PDP reserve life of at least four years; - A conservative financial profile, with gross leverage of 2.5x or below. Liquidity and Debt Structure As of December 2025, Frontera's cash and cash equivalents balance was USD230 million, excluding USD11 million in restricted cash, which covers interest expenses for the next three years by 4.0x. Frontera debt amortization profile includes USD173 million in amortizing loans at the Infrastructure level maturing, of which USD85 million are due within the next 24 months, while USD310 million in unsecured notes are due in June 2028. The outstanding debt at the Infrastructure level is nonrecourse to Frontera. On a pro forma basis, Fitch's base case assumes Frontera's debt will hover around USD200 million between 2027 and 2028. Issuer Profile Frontera Energy Corporation is an oil and gas company incorporated in Canada. It has operations in Latin America, including upstream, pipeline and port facilities assets in Colombia and off-shore Guyana. 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 Climate.VS at 2035 for Frontera is 56. The results of its Climate.VS screener are elevated for Frontera. However, this does not affect the current ratings, given the long time horizon over which the transition is expected to occur. Any potential future rating impact may change over time, reflecting developments in Fitch's assessment of these risks. ESG Considerations Frontera Energy Corporation has an ESG Relevance Score of '4' for GHG Emissions & Air Quality due to the growing importance of the continued development and execution of the company's energy-transition strategy, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Frontera Energy Corporation senior unsecured LT B Rating Watch On RR4 B ============= J A M A I C A ============= JAMAICA: Inflationary Shocks to Force Cuts to Standard of Living ---------------------------------------------------------------- RJR News reports that Donovan Wignal, a former ranking member of the Economic Program Oversight Committee, says the Jamaican people will have to endure a cut in their standard of living because of the impact of Hurricane Melissa and the war in the Middle East on inflation. Inflation was running at 4.3 per cent during the 12-month period in March, and the Bank of Jamaica is projecting a rate of 7.5 per cent by the end of this year, according to RJR News. Mr. Wignal stressed that although the government collects more ad valorem taxes on fuel than it programmed for when the price increases, it will not use the money to subsidize basic food prices, the report notes. He suggested that the government will instead use these funds to reduce the amount of money it has borrowed in order to fund the budget, and as a result, consumers will have to cut back on their purchases of goods and services because of the higher prices, the report relays. 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. PORT ROYAL HOTEL: Court Ruling Clears Way For Sale -------------------------------------------------- RJR News reports that receiver for the Port Royal Hotel, Wilfred Baghaloo of PwC Jamaica, says the property should be vacated by next year following a recent ruling by the Court of Appeal. Mr. Baghaloo says the court rejected a third appeal by the existing tenant seeking to remain on the property, clearing the way for the long-delayed sale of the hotel, formerly known as the Morgan's Harbour Hotel, according to RJR News. The latest ruling brings to an end nearly a decade of legal wrangling surrounding the sale of the historic property, the report notes. The Court of Appeal upheld earlier decisions ordering that the premises now occupied must be vacated to facilitate the sale of the hotel to the Swan Property Group of Malta, the report relays. Mr. Baghaloo says the sale agreement cannot be finalised until the tenant leaves the property, the report adds. =========== M E X I C O =========== METROFINANCIERA SAPI: Fitch Hikes MTROCB 07U Rating to 'Csf' ------------------------------------------------------------ Fitch Ratings has upgraded Metrofinanciera S.A.P.I. de C.V. SOFOM ER's residential mortgage-backed security (RMBS) MTROCB 07U to 'Csf' and 'C(mex)vra' from 'Dsf' and 'D(mex)vra'. The upgrade reflects the resolution of the prior coupon interest shortfall and timely payment of the May 4, 2026 coupon. Entity/Debt Rating Prior ----------- ------ ----- Metrofinanciera MTROCB07U (F#297) MTROCB 07U Senior Notes MX97MT010009 LT Csf Upgrade Dsf Senior Notes MX97MT010009 Natl LT C(mex)vra Upgrade D(mex)vra KEY RATING DRIVERS The upgrade reflects the payment of accrued interest that remained past due for April 2026 and was cured in May 2026. The scheduled interest for May 2026 was also paid in full, with no shortfalls. Therefore, the default status was resolved. The 'C' rating reflects the high-level credit risk of the notes, as default appears imminent and inevitable. The transaction doesn't count with cash reserves to meet the timely payments of interest, it has a level of portfolio deterioration, and high reliance on the foreclosure proceeds for full debt repayment. As of May 4, 2026, accrued interest payable totaled 248,109.90 inflation-indexed units (UDIs), which were paid in full, as well as the past-due remainder of 13,992.71 UDIs from the prior coupon. An additional 33,116.11 UDIs of principal were also paid. Following these payments, the outstanding balance of the transaction is 62,766,268.32 UDIs. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The rating could be lowered if an interest payment is missed, or principal is not paid at maturity. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade An upgrade is unlikely given the level of portfolio deterioration, an absence of cash reserves that heightens liquidity risk, and reliance on the sale of foreclosed properties to fully repay the debt. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. 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. PHOENIX AVIATION: Fitch Hikes Long-Term IDR to 'B+', Outlook Stable ----------------------------------------------------------- Fitch Upgrades Phoenix Aviation Capital LLC to 'B+'; Outlook Stable Fri 08 May, 2026 - 1:46 PM ET Fitch Ratings - New York - 08 May 2026: FTCRLA – Cayman Islands Fitch Ratings has upgraded the Long-Term Issuer Default Ratings (IDRs) of Phoenix Aviation Capital LLC (PAC) and its rated subsidiary, Phoenix Aviation Capital Limited (PACL), to 'B+' from 'B'. The Rating Outlook is Stable. Fitch has also upgraded PACL's senior unsecured debt rating to 'B+' from 'B' with a Recovery Rating of 'RR4' and the senior secured rating on the Term Loan B (TLB) co-issued by PAC Aviation III Designated Activity Company (PACDIII) and PAC DAC LLC (PACD), collectively the co-issuers and ultimately wholly owned by Phoenix Aviation Capital, LLC (PAC), to 'BB' from 'BB-' with a Recovery Rating of 'RR2'. These rating actions are being taken in conjunction with Fitch's global aircraft leasing sector review. For more information on the sector review, please see "Fitch Ratings Completes Aircraft Lessor Peer Review; Revises Sector Outlook to Deteriorating,". Key Rating Drivers Upgrade on Strong Execution and Improved Diversification: The rating upgrade reflects PAC's improving scale and portfolio diversification from orderbook placements and secondary market trading, as well as strong execution against its business strategy. PAC's fleet of owned aircraft grew to 30 from 17 one year ago, with a net book value (NBV) of $1.6 billion at March 31, 2026, pro forma for its contracted pipeline. In addition, portfolio diversification improved notably with the single largest lessee representing 15% of NBV at 1Q26, down from 29% one year ago, while its geographic reach expanded to 13 airlines in 10 countries from seven airlines in six countries over the same period, pro forma for its contracted pipeline. PAC executed several capital markets transactions and further diversified its funding profile, most notably with its inaugural $592 million Term Loan B offering in October 2025, which was upsized by $42 million in March 2026. PAC also issued an inaugural $600 million unsecured note in June 2025 and a $150 million add-on in January 2026, resulting in an increase in unsecured funding to around 37% of total debt at Dec. 31, 2025, on a pro forma basis. Fitch expects scale and diversification will continue to improve as PAC adds aircraft from its orderbook. At the current rating level, PAC's ratings remain supported by its market standing as a full-service lessor focused on new technology, narrowbody aircraft, appropriate current and target leverage, the absence of any meaningful near-term debt maturities and clear growth visibility through its near-term orderbook. Ambitious Growth Targets: Rating constraints include the company's short operating track record as a standalone lessor, execution risk associated with its ambitious growth targets, reliance on wholesale secured funding, a smaller, concentrated portfolio by customer and geography compared to peers, and funding and placement risks associated with the firm's sizable orderbook. Fitch also notes potential governance and conflicts of interest associated with PAC's externally managed business model and ownership by fixed life funds. Sector Constraints: Rating constraints applicable to the aircraft lessor industry more broadly include the monoline nature of the business, potential exposure to residual value risks, the reliance on wholesale funding sources, and vulnerability to exogenous shocks including sensitivity to higher oil prices, inflation and unemployment, which could negatively impact travel demand. Fitch also notes the ongoing Iran conflict and risk of protracted jet fuel shortages. While airlines globally have responded by cutting capacity on less-profitable routes, lessors may still face increased requests for lease deferrals. If granted, these deferrals could negatively impact liquidity and internal capital generation over time. Nominal Franchise: As of March 31, 2026, PAC has a committed orderbook for 25 Boeing B737-8 aircraft, which are scheduled to deliver through 2028, and has optional purchase rights for an additional 30 B737-8 aircraft. The company expects to support additional portfolio growth through sale-leaseback and secondary market opportunities over the medium term. Attractive Portfolio: PAC's portfolio comprises highly liquid tier 1 (86% of NBV) and tier 2 aircraft (14%), as categorized by Fitch, with a weighted average age of the owned portfolio of 3.2 years, and an average remaining lease term of 8.4 years, as of Dec. 31, 2025. Compared to rated peers, PACs maintains a younger and more liquid aircraft portfolio while its remaining lease term is one of the longest in the market. In Fitch's view, this underpins asset performance as a relative rating strength for the business. Modest Earnings: Net spreads (lease yields less funding costs) were 1.7% for FY2025 down from 2.0% in FY2024, due to higher interest expense and the dilutive effect of new orderbook assets being introduced into the portfolio during the year. Fitch expects net spreads to improve over time as existing new technology aircraft become more seasoned and funding costs decline with anticipated refinancing. Over the medium term, Fitch expects net spreads to move into the 'bb' category benchmark range of 1%-5% for aircraft lessors with a sector risk operating environment (SROE) score in the 'bbb' category. Adequate Leverage: Fitch's calculated leverage (gross debt to tangible equity), which assigns 100% equity credit to PAC's $652 million preferred equity, was 3.7x at YE 2025, or 3.4x net of cash. This was aligned with the firm's business plan projections and was within management's stated leverage target of 3.0x-3.5x on a net debt-to-equity basis. PAC's leverage is appropriate given its fleet profile. Improved Funding Mix: Following unsecured debt issuances in 2025 and early 2026, unsecured debt comprised 37% of total debt at YE 2025, pro forma for the $150 million unsecured note add-on issued in January 2026, versus a fully secured funding mix at YE 2024. Current funding comprises unsecured notes, a Term Loan B and secured term loans and warehouse financings backed by aircraft. Fitch expects PAC's unsecured mix to decrease modestly in the near term, as deliveries are initially funded through its secured warehouse facility. Over time, PAC may term out some of this debt in the unsecured bond market. Fitch expects unsecured debt to remain within the 'bb' range of 10%-35% for aircraft lessors with an SROE score in the 'bbb' category. Appropriate Liquidity: PAC faces heightened funding and placement risks due to its substantial order book commitments, but all 2026 order book positions and 43% of 2027 deliveries are already placed. Liquidity resources for the next 12 months totaled $949 million at YE 2025, including $174 million of unrestricted cash, $604 million of availability under secured and unsecured credit facilities, and $170 million of operating cash flow. These resources provide adequate liquidity coverage of 1.6x relative to the next 12 months' order purchase commitments of $510 million and debt maturities of $98 million. On-balance-sheet liquidity will also be supported by an additional $325 million equity commitment from shareholders. Stable Outlook: The Stable Outlook reflects Fitch's expectation that PAC will manage its balance sheet growth to maintain sufficient headroom relative to its targeted leverage range and Fitch's negative rating sensitivities for liquidity coverage over the Outlook horizon, despite Fitch's expectation for increased macro challenges including geopolitical risks, increased fuel prices, higher inflation and uncertainty around the robustness of air travel demand. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Weakening in the company's projected long-term cash flow generation, unsecured debt below 20% of total debt, net spreads sustained below 1%, liquidity coverage dropping below 1.0x, and/or a sustained increase in Fitch-calculated gross leverage above 5x; - Macroeconomic and/or geopolitical headwinds that lead to lease restructurings rejections, lessee defaults, and increased losses, or a material deterioration in fleet quality, particularly concerning the proportion of tier 1 aircraft, average fleet age and average lease terms, could also negatively impact ratings; - PAC's ownership by private funds could lead to negative rating actions if it results in elevated capital extractions or if a forced sale of the company at fund maturity undermines PAC's financial profile, franchise, or long-term strategic direction; - Shortcomings in corporate governance or conflicts of interest that weaken PAC's franchise position, limiting its ability to pursue new business opportunities. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Sustained strong execution against planned growth targets and long-term strategic objectives, particularly if this leads to further fleet diversification, with single airline exposure approaching 10% of NBV while maintaining a liquid, young fleet portfolio; - Profitably improving franchise scale, as demonstrated by net operating income exceeding $25 million on a sustained basis; - Maintaining a sound financial profile, including gross leverage below 4.0x, low impairment ratios, a sustained increase in net spreads above 2% and liquidity coverage above 1.1x; - Continued ability to fund and proactively place order book assets; - Demonstrated capital market access while maintaining unsecured debt above 30% of total debt. DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS The senior secured debt rating (BB/RR2) is two notches above PAC's Long-Term IDR and reflects the aircraft collateral backing the obligations, which suggests strong recovery prospects. The senior unsecured debt rating (B+/RR4) is equalized with PAC's Long-Term IDR and reflects expectations for average recovery prospects in a stress scenario, given the availability of unencumbered assets. DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES The senior secured debt rating is primarily sensitive to changes in PAC's Long-Term IDR and secondarily to the relative recovery prospects of the instruments. In the event of a future upgrade in PAC's Long-Term IDR to 'BB-' or above, Fitch will assess recovery prospects using its generic notching approach, which could lead to a narrowing in the notching between the Long-Term IDR and secured debt rating. The senior unsecured debt rating is primarily sensitive to changes in PAC's Long-Term IDR and the relative recovery prospects of the instruments. A decline in unencumbered asset coverage, combined with a material increase in secured debt relative to PAC's business plan, could result in the notching of the unsecured debt down from the Long-Term IDR. ADJUSTMENTS The Standalone Credit Profile has been assigned in line with the implied Standalone Credit Profile. The Business Profile score has been assigned above the implied score due to the following adjustment reason(s): Historical and future developments (positive). The Asset Quality score has been assigned below the implied score due to the following adjustment reason(s): Concentrations; Asset performance (negative), risk profile and business model (negative). The Earnings & Profitability score has been assigned below the implied score due to the following adjustment reason(s): Historical and future metrics (negative). The Capitalization & Leverage score has been assigned below the implied score due to the following adjustment reason(s): Risk profile and business model (negative). ESG Considerations PAC has an ESG Relevance Score of '4' for Management Strategy due to execution risk associated with the operational implementation of the company's outlined business plan. This has a negative impact on the credit profile and is relevant to the ratings in conjunction with other factors. PAC has an ESG Relevance Score of '4' for Governance Structure due to potential governance and conflicts of interest risks associated with PAC's limited number of independent board members and ownership by a fixed-life fund structure and external management. Shortcomings in corporate governance or conflicts of interest could weaken PAC's franchise position and limit its ability to pursue new business opportunities. This has a negative impact on the credit profile and is relevant to the ratings in conjunction with other factors. Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Phoenix Aviation Capital Limited LT IDR B+ Upgrade B senior unsecured LT B+ Upgrade RR4 B PAC DAC LLC senior secured LT BB Upgrade RR2 BB- Phoenix Aviation Capital LLC LT IDR B+ Upgrade B PAC Aviation III Designated Activity Company senior secured LT BB Upgrade RR2 BB- ===================== P U E R T O R I C O ===================== INSTITUTO MEDICO: Court Directs U.S. Trustee to Appoint PCO ----------------------------------------------------------- Judge Mildred Caban Flores of the U.S. Bankruptcy Court for the District of Puerto Rico directed the U.S. Trustee to appoint a patient care ombudsman for Instituto Medico Del Norte Inc. The bankruptcy judge finds that the provisions of Section 333(a)(1) of the Bankruptcy Code for appointment of a PCO apply to Instituto Medico Del Norte after having filed its bankruptcy petition, indicating that it operates a health care business. On April 28, Instituto Medico Del Norte filed a Chapter 11 petition designating the company as a health care business. About Instituto Medico Del Norte Inc. Instituto Medico Del Norte Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 26-01886) on April 28, 2026, with $0 to $50,000 in assets and $1,000,001 to $10 million in liabilities. Judge Mildred Caban Flores presides over the case. Jesus Enrique Batista Sanchez, Esq. at The Batista Law Group, Psc represents the Debtor as legal counsel. VALLE DEL SUR: Case Summary & Two Unsecured Creditors ----------------------------------------------------- Debtor: Valle Del Sur Memorial Park Inc. Sector Pozo Hondo Carr. 7711 Km 0.5 Guayama, PR 00784 Business Description: Valle Del Sur Memorial Park Inc. operates a private cemetery and memorial park in Guayama, Puerto Rico. The company, whose facility is located in the Pozo Hondo sector along Puerto Rico Route 7711, provides cemetery and burial-related services to families in the Guayama area. Chapter 11 Petition Date: May 6, 2026 Court: United States Bankruptcy Court District of Puerto Rico Case No.: 26-02069 Debtor's Counsel: Alexandria Bigas Valedon, Esq. MODESTO BIGAS LAW OFFICE PO Box 7462 Ponce, PR 00732 Tel: (787) 844-1444 Fax: (787) 842-4090 Email: alexandra.bigas@gmail.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Alejandro Mayendia Blanco as president. A full-text copy of the petition, which includes a list of the Debtor's two unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/7G47I6Y/VALLE_DEL_SUR_MEMORIAL_PARK_INC__prbke-26-02069__0001.0.pdf?mcid=tGE4TAMA =============== X X X X X X X X =============== LATAM: Tax Reforms Boosted Revenues in Region in 2024 ----------------------------------------------------- Tax revenues rose in more than half of the countries in Latin America and the Caribbean (LAC) in 2024, with the largest gains occurring in those that implemented major tax reforms, according to a new report. Revenue Statistics in Latin America and the Caribbean 2026, released at the UN-ECLAC 38th Regional Fiscal Seminar in Santiago, Chile, shows that tax revenues rose as a share of GDP in 15 of the 28 countries in the LAC region included in the report and declined in 13. The largest increases were observed in Antigua and Barbuda (1.9 percentage points [p.p.]), Brazil (2.0 p.p.), Barbados (2.1 p.p.) and Cuba (5.0 p.p.). Each of these countries recently introduced major tax reforms, which increased revenues from taxes on goods and services (Brazil, Cuba, and Antigua and Barbuda) and from corporate income tax (Barbados and Brazil). The two largest declines in the tax-to-GDP ratio were mainly due to economic factors. In Trinidad and Tobago, lower energy prices and declining natural gas production contributed to a fall of 3.0 p.p., while in Guyana strong economic growth outpaced increases in tax revenues, resulting in a fall of 2.4 p.p. The report shows that tax-to-GDP ratios in the LAC region ranged from 9.2% in Guyana to 33.7% in Brazil in 2024 (Figure 1), with a regional average of 21.7%, an increase of 0.2 p.p. from the previous year. Excluding Cuba, the average was unchanged from the previous year as slow economic growth and volatile commodity prices weighed on revenues. Taxes on goods and services continue to represent the largest part of the tax mix in many LAC countries, with a lower contribution from income taxes and social security contributions than in OECD countries. In 2024, taxes on goods and services accounted for 49.2% of total tax revenues on average across the LAC region, driven largely by value-added tax (VAT, 28.9% of revenues). Taxes on income and profits generated 29.1% of total revenues (17.4% from corporate income tax and 9.6% from personal income taxes) and social security contributions accounted for 15.9%. Looking further back, the average tax-to-GDP ratio for the LAC region rose by 1.5 p.p. between 2014 and 2024, largely due to increases in revenues from VAT and from taxes on income and profits. Over this period, tax revenues rose as a share of GDP in 21 LAC countries and declined in 7. Tax revenues per capita increased in all countries, more than doubling in the Dominican Republic, Nicaragua and Guyana in PPP terms. The difference between the LAC average tax-to-GDP ratio and the average for OECD countries has narrowed only slightly over the past decade. The OECD average tax-to-GDP ratio rose by 1.2 p.p. between 2014 and 2024, reducing the gap with the LAC average to 12.3 p.p. in 2024. The report shows how fiscal revenues in some of the largest economies in the LAC region are significantly affected by fluctuations in commodity prices. Amid strong volatility in oil and gas markets, average hydrocarbon revenues among major producers fell to 3.1% of GDP in 2024 from 4.1% of GDP in 2023. Decreases in Colombia and Trinidad and Tobago drove the overall decline, which was partly offset by higher oil revenues in Guyana. Meanwhile, revenues from mining fell from 0.55% of GDP in 2023 to 0.47% of GDP in 2024, largely due to a sharp drop in tax revenues in Colombia. In 2025, oil and gas revenues are projected to have fallen to 3.0% of GDP due to a sharp decline in hydrocarbon prices, while mining revenues are estimated to have risen to 0.63% of GDP, supported by exceptional increases in the price of gold, silver and, to a lesser extent, copper. Revenue Statistics in Latin America and the Caribbean 2026 is a joint publication by the Inter-American Center of Tax Administrations (CIAT), the Inter-American Development Bank (IDB), the United Nations Economic Commission for Latin America and the Caribbean (UN-ECLAC), and the Organisation for Economic Co-operation and Development (OECD) Centre for Tax Policy and Administration and Development Centre. ********* 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 * * *